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45
Annual Report 2 012 ~ Hong Leong BA NK Berhad

Corporate Section
BOARD
RISK MANAGEMENT COMMITTEE REPORT
Constitution
The Board Risk Management Committee (BRMC) is established to oversee senior managements activities in managing
risk exposures and to ensure alignment with the risk strategy and policies approved by the Board.
Composition
Mr Lim Beng Choon
(Chairman, Independent Non-Executive Director)
Ms Lim Lean See
(Independent Non-Executive Director)
YBhg Dato Syed Faisal Albar bin Syed A.R. Albar
Secretary
The Secretary to the BRMC is the Chief Risk Officer of the Bank.
Terms of Reference
Risk Management

To oversee senior managements activities in managing credit, market, liquidity, operational, and IT risks and to
ensure that the risk management process is in place and functioning which will include risks from the Bank and
overseas branches, and subsidiaries of the Bank (the Group).
To review and approve all significant risk related policies and framework from all majority owned subsidiaries of the
Bank to ensure alignment to the Groups risk management appetite, framework and policies.
To review and report to the Board on measures taken to:
(a) Identify and examine principal risks faced by the Group; and
(b) Implement appropriate systems and internal controls to manage these risks.
To oversee and monitor implementation of the Integrated Risk Management framework and activities adopted by the
Group.
To review, recommend and/or endorse the Banks major risk management strategies, policies and risk tolerance for
Boards approval.
To review and assess adequacy of risk management policies and framework in identifying, measuring, monitoring and
controlling risk and the extent to which these are operating effectively.
To ensure infrastructure, resources and systems are in place for risk management i.e. ensuring that the staff responsible
for implementing risk management systems perform those duties independently of the Groups risk taking activities.
Reviewing periodic reports on, risk exposure, risk portfolio composition, and risk management activities.
Other risk management functions as may be agreed to by the BRMC and the Board.
Compliance

Oversight of the Groups compliance activities and ensuring the Group is in compliance to all established policies,
guidelines and external regulations.
To review and assess adequacy of compliance policies and framework and ensuring that they are operating
effectively.
To review all non-compliance incidences and recommend corrective actions where necessary.
To review and consider the impact of new laws, regulations, guidelines affecting the Groups operations and ensuring
adequate resources are committed and realistic action plans are carried out within the stipulated deadline set.
Other compliance functions as may be agreed to by the BRMC and the Board.
46
Hong Leong BANK Berhad ~ Annual Report 2 012
Corporate Section
BOARD
(continued)
Authority
The BRMC is authorised by the Board to review any activity of the Group within its terms of reference. It is authorised to
seek any information it requires from any Director or member of management and all employees are directed to co-operate
with any request made by the BRMC.
The BRMC is authorised by the Board to obtain risk management professional advice if it considers necessary.
Meetings
The BRMC meets at least six (6) times a year and additional meetings may be called at any time as and when necessary.
There shall be in attendance at the meeting of the Committee by invitation, the Group Managing Director and such other
persons as deemed necessary by the Committee, which may include:

Chief
Chief
Chief
Chief
Chief
Chief
Operating Officer
Financial Officer
Internal Auditor
Operating Officer
Operating Officer
Operating Officer
Group Strategic Support
Group
Group
Group
Group
Internal Audit
Wholesale Credit
Consumer Credit& Collection
Special Assets
A minimum of two (2) members of the BRMC, to be chaired by an independent and non-executive director, is required to
form a quorum. In the absence of the Chairman of the Committee, another independent and non-executive director shall
act as the Chairman of the meeting.
After each BRMC meeting, the BRMC shall make available the minutes of the meeting to the Board and further report and
update the Board on significant issues and concerns discussed during the BRMC meetings and where appropriate, make the
necessary recommendations to the Board.
Activities
BRMC carried out its duties in accordance with its Terms of Reference supported by Group Integrated Risk Management &
Compliance (GIRMC).
For the financial year ended 30 June 2012, seven (7) Committee meetings were held and the attendance of the Committee
members is recorded as follows:
Member
Mr Lim Beng Choon
Ms Lim Lean See
YBhg Dato Syed Faisal Albar bin Syed A.R. Albar
Attendance
7/7
7/7
5/7
The BRMC reviewed periodic reports on risk exposure, risk portfolio composition and risk management activities for key
areas of risks including regulatory risk weighted assets and capital requirements, preparation and key developments to
comply with BNMs Revised Capital Adequacy Framework (Basel II), Risk Management Dashboards covering Credit Risk
Management, Market Risk Management (including Liquidity Risk Management) and Operational Risk Management (including
IT Risk Management). In addition BRMC also reviewed major risk management strategies, policies and risk tolerance levels
for Boards approval. Where the significant risk policies and framework relate to the Groups majority owned subsidiaries,
BRMC ensures alignment to the Groups risk management appetite, framework and policies.
Bank-wide compliance matters are also deliberated in great length by the BRMC, including for the Banks overseas branches,
where the BRMC reviewed non-compliance incidences and recommendations for corrective actions. BRMC continuously
provides oversight of the Groups compliance activities and ensuring the Group is in compliance to all established policies,
guidelines and external regulations.
47
Corporate Section
BOARD
(continued)
Risk Management
Managing risks is an integral part of the Groups overall business strategy, as risks, if left unchecked against a backdrop of
rapidly changing financial landscape and increased uncertainty, can be detrimental to the Bank. Recognising the need to be
proactive in the management of risks, the Bank has implemented an Integrated Risk Management (IRM) framework where
the Banks risks are managed at various levels.
Set Risk Appetite

& Tolerance Level
Risk Policies and

Capital Allocation
Board of
Directors
Board Risk
Management Committee
Present single view of risks and
to ensure adequate policies
and control within the Group
Group Integrated Risk Management &
Compliance
Monitoring and
Reporting
Operational & Information

Regulatory
Credit Risk Market & Liquidity
Management Risk Management Technology Risk Management Compliance
Daily management of risk, limits, policies, procedures and reports
Consumer
Banking
Business
Banking
Islamic
Banking
Global
Markets
Business/
Human Information
Branches Consumer Payments
Resources Technology
Credit
Integrated Risk Management Framework

At the Business and Operating Units level, the units are risk owners and accountable for the risks inherent in their business.
They manage the day-to-day risks of their respective operations.
GIRMC monitors and reports the Groups Credit, Market, Liquidity, Operational and IT Risks and presents these risk in a
single, consolidated view to the BRMC regularly.
The BRMC deliberates and evaluates the reports prepared by GIRMC on the adequacy and effectiveness of the controls
to mitigate the Groups risks and thereafter reports and provide updates to the Board, and where appropriate, make the
necessary recommendations to the Board.
48
Corporate Section
BOARD
(continued)
Risk Management (continued)

At the apex of the IRM framework, the Board has the overall responsibility to ensure there is proper oversight of the
management of risks in the Group. The Board sets the risk appetite and tolerance level and allocates the Groups capital
that is consistent with the Groups overall business objectives and desired risk profile.
CREDIT RISK
OPERATIONAL RISK
Credit Risk is the risk of loss if a

borrower or counterparty in a
transaction fails to meet its
obligations.
Operational risk loss is the risk of

loss resulting from inadequate or
failed internal processes, people
and systems or from external events
which also includes IT and legal
risks.
MARKET RISK
LIQUIDITY RISK
Market Risk is the risk of loss in

financial instruments or the balance
sheet due to adverse movements in
market factors such as interest and
exchange rates, prices, spreads,
volatilities, and/or correlations.
Liquidity Risk is the risk of loss

resulting from the unavailability of
sufficient funds to fulfill financial
commitments, including customer
liquidity needs, as they fall due.
Liquidity Risk also includes the risk
of not being able to liquidate assets
in a timely manner.
Hong Leong Bank Groups Key Risks

Basel II and III
The Group places great importance to Basel II and III and views Basel II and III as a bank-wide initiative that will ensure
that the Bank continues to meet international best practices for the Banks credit, market, operational and liquidity risk
management practices. By adopting Basel II and III, the Group will be able to enhance and embed sound risk management
practices within the Group and be equipped with the right risk management discipline, practices, processes and systems.
For Basel II Pillar 1, the Bank is currently in compliance with the regulatory standards that took effect from 1 January 2008.
The Bank is progressively employing advance risk measurement in the respective businesses. For Basel II Pillar 2, the Bank
has established an Internal Capital Adequacy Assessment Process (ICAAP) framework that forms an integrated approach
to manage the Banks risk, capital and business strategy. For Basel II Pillar 3, which is related to market discipline and
disclosure requirements, the Bank has provided the disclosures under a separate Pillar 3 section.
For Basel III, the Bank has put in place plans to continuously strengthen its capital and liquidity positions well ahead of the
Basel Committees time schedule and in advanced anticipation of any local jurisdiction guidelines in all the countries that
the Bank operates in.
49
Corporate Section
CORPORATE
GOVERNANCE AND INTERNAL CONTROL
Corporate Governance is the process and structure used to direct

and manage the business and affairs of the Company towards
enhancing business prosperity and corporate accountability with the
ultimate objective of realising long term shareholder value, whilst
taking into account the interest of other stakeholders.
~ Finance Committee on Corporate Governance
The Board of Directors (Board) has reviewed the manner in which the Malaysian Code on Corporate Governance (the
Code) is applied in the Group as set out below. The Board is pleased to report compliance of the Group with the Best
Practices set out in Part 2 of the Code except where otherwise stated.
A. DIRECTORS
I The Board

The Board assumes responsibility for effective stewardship and control of the Bank and has established terms
of reference to assist in the discharge of this responsibility.
The role and responsibilities of the Board broadly cover formulation of corporate policies and strategies;
overseeing and evaluating the conduct of the Groups businesses; identifying principal risks and ensuring the
implementation of appropriate systems to manage these risks; and reviewing and approving key matters such
as financial results, investments and divestments, acquisitions and disposals and major capital expenditure and
such other responsibilities that are required of them by Bank Negara Malaysia (BNM) as specified in guidelines
and circulars issued by BNM from time to time.
The Board observes the Company Directors Code of Ethics established by the Companies Commission of
Malaysia and BNM/GP7 Code of Ethics: Guidelines on Code of Conduct for Directors, Officers and Employees in
the Banking industry.
II
Board Balance
The Board of Directors comprises eleven (11) directors, ten (10) of whom are non-executive. Of the nonexecutive directors, five (5) are independent. The profiles of the members of the Board are provided in the
Annual Report.
The Board is of the view that the current Board composition fairly reflects the investment of shareholders in the
Bank.
The Chairman ensures the smooth and effective functioning of the Board.
The Group Managing Director/Chief Executive (GMD) is responsible for implementing the policies and decisions
of the Board, overseeing the day-to-day operations, setting the plan and direction, benchmark and targets for
operating companies, tracking compliance and business progress, initiating innovative business ideas to create
competitive edge and development of business and corporate strategies with the aim of enhancing shareholders
wealth.
The Board has identified Ms Lim Lean See, the Chairman of the Board Audit Committee (BAC), as the
Independent Non-Executive Director of the Board to whom concerns may be conveyed, and who would bring
the same to the attention of the Board.
50
Corporate Section
CORPORATE
(continued)
A. DIRECTORS (continued)
III
Board Meetings
The Board met eight (8) times during the financial year ended 30 June 2012 (FYE 2012) with timely notices
of issues to be discussed. Details of attendance of each director are as follows:Director
Attendance
YBhg Tan Sri Quek Leng Chan
8/8
YBhg Datuk Yvonne Chia
8/8
Mr Kwek Leng Hai
8/8
YBhg Dato Mohamed Nazim bin Abdul Razak
7/8
Mr Choong Yee How
8/8
Mr Quek Kon Sean
8/8
YBhg Datuk Kwek Leng San
8/8
Ms Lim Lean See
8/8
YBhg Tan Sri A. Razak bin Ramli
8/8
Mr Lim Beng Choon
7/8
YBhg Dato Syed Faisal Albar bin Syed A.R Albar
8/8
At Board meetings, active deliberations of issues by Board members are encouraged and such deliberations,
decisions and conclusions are recorded by the Group Company Secretary accordingly. Any director who has an
interest in the subject matter to be deliberated shall abstain from deliberation and voting on the same during the
meetings.
IV Supply of Information

All Board members are supplied with information in a timely manner. Board reports are circulated prior to Board
meetings and the reports provide, amongst others, financial and corporate information, significant operational,
financial and corporate issues, performance of the Bank and of the Group and managements proposals which
require the approval of the Board.
All directors have access to the advice and services of the Group Company Secretary and Internal Auditors. All
directors also have access to independent professional advice at the Banks expense, in consultation with the
Chairman or the GMD of the Bank.
51
Corporate Section
CORPORATE
(continued)
V
Appointments to the Board
The Nominating Committee (NC) was established on 17 June 2003 and the members are as follows:-


(Non-Independent Non-Executive Director)
Mr Choong Yee How

Ms Lim Lean See


The NCs functions and responsibilities are set out in the terms of reference as follows:

Recommend to the Board the minimum requirements for appointments to the Board, Board committees and
for the position of Chief Executive Officer.
Review and recommend to the Board all Board appointments and re-appointments and removals including
of the Chief Executive Officer.
Review annually the overall composition of the Board in terms of the appropriate size and skills, the
balance between executive directors, non-executive and independent directors, and mix of skills and other
core competencies required.
Assess annually the effectiveness of the Board and key senior management officers as a whole and the
contribution by each individual director to the effectiveness of the Board and various Board committees
based on criteria approved by the Board.
Oversee the appointment, management succession planning and performance evaluation of key senior
management officers and recommend their removal if they are found ineffective, errant and negligent in
discharging their responsibilities.
Ensure that the Board receives an appropriate continuous training programme.
In connection with the appointment and re-appointment of Directors and Chief Executive Officer of the Bank,
the NC is guided by a Fit and Proper Policy.
The Fit and Proper Policy includes a policy in relation to the tenure for Independent Directors of the Bank
(Tenure Policy). Pursuant to the Tenure Policy, an independent director who had served on the board of
directors of any company in Hong Leong Financial Group Berhad and/or its subsidiaries for a period of 12 years
continuously or more shall submit a Letter of Intent to the NC informing of his intention to continue in office or
to retire from the Board as an independent director, upon:-
a)
expiry of his term of office approved by BNM; or
b)
the due date for his retirement either by rotation pursuant to the Articles of Association of the Bank or
pursuant to Section 129(2) of the Companies Act, 1965 as the case may be.
If the intention of the independent director is to continue in office, the NC shall consider the re-appointment
based on the assessment criteria and guidelines set out in the Fit & Proper Policy and make the appropriate
recommendation to the Board. If the intention is to retire from office, an application shall be submitted to BNM
to seek clearance, in accordance with the BNM Guidelines.
52
Corporate Section
CORPORATE
(continued)
V
Appointments to the Board (continued)
During the FYE 2012, four (4) NC meetings were held and the attendance of the Committee members was as
follows:
Member
Attendance
4/4
4/4
Mr Choong Yee How
4/4
Ms Lim Lean See
4/4
4/4
The NC reviewed the membership of the Board, the professional qualifications and experience of the directors
and was satisfied that the Board composition in terms of size, the balance between executive, non-executive
and independent directors and mix of skills was adequate. The NC also reviewed the performance of the Board
against its terms of reference and was satisfied that the Board was competent and effective in discharging its
functions.
VI Re-election

All directors are required to submit themselves for re-election every three years.
VII Training and Education

All directors of the Bank have completed the Mandatory Accreditation Programme.
The Bank is guided by a Directors Training Policy, which covers an Induction Programme for newly appointed
directors to assist them to familiarise and to get acquainted with the Banks business, governance process,
roles and responsibilities as director of the Bank and Continuing Professional Development which encompasses
areas related to the industry or business of the Bank, governance, risk management and regulations through a
combination of briefings, courses and conferences.
As part of the training programme for its directors, the Bank has prepared for the use of its directors, the Director
Manual and regularly organises in-house programmes, briefings and updates by its in-house professionals. The
directors are also encouraged to attend seminars and briefings in order to keep themselves abreast with the
latest developments in the business environment and to enhance their skills and knowledge.
The Director Manual which is given to every director for their reference, highlights, amongst others, the major
duties and responsibilities of a director vis--vis various laws, regulations and guidelines governing the same.
During the FYE 2012, the directors received regular briefings and updates on the Groups businesses, operations,
risk management, internal controls, corporate governance, finance and any new or changes to the companies
and other relevant legislation, rules and regulations from in-house professionals. The Bank also organised inhouse programmes for its directors and senior management.
The directors of the Bank have also attended various programmes and forums facilitated by external professionals
in accordance with their respective needs in discharging their duties as directors.
53
Corporate Section
CORPORATE
(continued)
VII Training and Education (continued)

During the FYE 2012, the directors of the Bank, collectively or on their own, attended the following training
programmes, seminars, briefings and/or workshops:

BNM Financial Institutions Directors Education Programme

Optimising IFRS/MFRS Convergence
An Overview of the Amendments to the Main Market Listing Requirements and Corporate Governance
Development
Corporate Governance updates
Financial Reporting
Bursa Malaysia Role of Audit Committee in Assuring Audit Quality
Bursa Malaysia Corporate Governance Blueprint and Malaysian Code of Corporate Governance 2012
Risk Management Conference of Institute of Bankers in Malaysia (IBBM): After the Perfect Storm - The
Future of Risk Management
Connected Leadership and Creating Sustainable Value
National Chamber of Commerce and Industry of Malaysia (NCCIM) Malaysian-Vietnam Business Forum
Wholesale Sales Convention
Bursa Malaysia Invest Malaysia-Hong Kong (Powering Global Excellence - change perspective)
National Transformation Summit: Business Roundtable Discussion Public-Private Partnership Transforming
Malaysian Economy
2nd Annual Women in Leadership Forum Asia 2012
109 Financial Sector Talent Enrichment Programme (FSTEP)
Young Corporate Malaysians CEO Series 39, Great Ladies at Work
Asian Bankers Dialogue Session with Dr Dick Kovacevich
IBBM The Asian-Pacific Association of Banking Institutes Conference on Global Challenges, Local
Opportunities
ICLIF Leadership Voices Creating Cross-Boarder Champions
Breakthrough Leadership Training Session
Gallup Executive Roundtable Luncheon on Understanding Cross Selling
Bursa Malaysia Invest Malaysia KL 2012
Introduction to Intellectual Property
Formation of Contracts: Nuts & Bolts
Transactional Perils under the Companies Act, 1965
How to read a Contract
Dispute Resolution
VIII Other Board Committees

Board Credit Supervisory Committee (BCSC)
YBhg Tan Sri Quek Leng Chan (Chairman)

Mr Choong Yee How
Mr Quek Kon Sean
Y.M. Raja Teh Maimunah Raja Abdul Aziz
The BCSC oversees the management of credit risk and other credit related activities of the Bank and all its
subsidiaries.
The members of the BCSC are as follows:-
54
Corporate Section
CORPORATE
(continued)
VIII Other Board Committees (continued)

During the FYE 2012, sixteen (16) BCSC meetings were held and the attendance of the Committee members
was as follows:
Member
Attendance
16/16
16/16
Mr Choong Yee How
16/16
*Mr Quek Kon Sean
13/13
Y.M. Raja Teh Maimunah Raja Abdul Aziz
^Encik Zulkiflee bin Hashim
8/11
2/3
Notes:
*
Appointed on 23 September 2011
#

Appointed on 28 October 2011
^
Retired as a member on 23 September 2011
Executive Committee (EXCO)
The members of the EXCO are YBhg Tan Sri Quek Leng Chan, YBhg Datuk Yvonne Chia and Mr Choong
Yee How and all matters were approved via circular resolutions. The duties and responsibilities of the EXCO
includes, amongst others, approving all financial markets transactions; opening, operating and closing of various
types of accounts with various financial institutions and to perform such other duties and functions as may be
determined by the Board from time to time.
B. DIRECTORS REMUNERATION
I
Level and Make-Up of Remuneration
The Remuneration Committee (RC) was established on 17 June 2003 and the members are as follows:-
YBhg Dato Mohamed Nazim Bin Abdul Razak


Mr Choong Yee How

The RCs functions and responsibilities are set out in the terms of reference as follows:
Recommend to the Board the framework governing the remuneration of the:

Directors;

Chief Executive Officer; and

Key senior management officers.
Review and recommend to the Board the specific remuneration packages of executive directors and the
Chief Executive Officer.
Review the remuneration package of key senior management officers.
55
Corporate Section
CORPORATE
(continued)
B. DIRECTORS REMUNERATION (continued)

I
Level and Make-Up of Remuneration (continued)
During the FYE 2012, one (1) RC meeting was held and the attendance of the Committee members was as
follows:
Member
Attendance
1/1
1/1
Mr Choong Yee How
1/1
The Groups remuneration scheme for executive directors is linked to performance, service seniority, experience
and scope of responsibility and is periodically benchmark to market/industry surveys conducted by human
resource consultants. Performance is measured against profits and targets set in the Groups annual plan and
budget.
The level of remuneration of non-executive directors reflects the level of responsibilities undertaken by them.
II Procedure

The RC, in assessing and reviewing the remuneration packages of executive directors, ensures that a strong link
is maintained between their rewards and individual performance, based on the provisions in the Groups Human
Resources Manual, which are reviewed from time to time to align with market/industry practices. The fees of
directors, including non-executive directors, are recommended and endorsed by the Board for approval by the
shareholders of the Bank at its AGM.
III Disclosure

The aggregate remuneration of directors (including a director who has retired during the financial year, and
remuneration earned as directors of subsidiaries) for the FYE 2012 is as follows:
Executive Directors
Non-Executive Directors
Fees
(RM)
Salaries
& Other
Emoluments
(RM)
Total
(RM)
70,000
5,009,340
5,079,340
1,170,000
362,000
1,532,000
56
Corporate Section
CORPORATE
(continued)
B. DIRECTORS REMUNERATION (continued)

III Disclosure (continued)

The number of directors whose remuneration (including a director who has retired during the FYE 2012) falls
into the following bands is as follows:
Executive
NonExecutive
50,001 100,000
100,001 150,000
Range Of Remuneration (RM)
150,001 200,000
200,001 250,000
4,850,001 4,900,000
C. SHAREHOLDERS
I Dialogue between Companies and Investors

The Board acknowledges the importance of regular communication with shareholders and investors via the
annual reports, circulars to shareholders, quarterly financial reports and the various announcements made during
the year, through which shareholders and investors can have an overview of the Groups performance and
operation.
The Bank has a website at http://www.hlb.com.my which the shareholders can access for information, including
corporate information, announcements/press releases/briefings, financial information, products information and
investor relations.
In addition, the Bank provides shareholders and investors with a channel of communication in which they can
provide feedback to the Group.
Queries may be conveyed to the following persons:
GENERAL MANAGER, GROUP CORPORATE AFFAIRS & PUBLIC COMMUNICATIONS

Tel No
: 03-2164 2828 ext 8565

Fax No
: 03-2164 8181

e-mail address : norlina.yunus@hlbb.hongleong.com.my

MANAGER, CORPORATE DEVELOPMENT & STRATEGIC

Tel No
: 03-2164 2828 ext 8493
Fax No
: 03-2164 1519
e-mail address : WinleyKokLS@hlbb.hongleong.com.my
II
AGM
The AGM provides an opportunity for the shareholders to seek and clarify any issues and to have a better
understanding of the Groups performance. Shareholders are encouraged to meet and communicate with the
Board at the AGM and to vote on all resolutions. Senior management and the external auditors are also available
to respond to shareholders queries during the AGM.
57
Corporate Section
CORPORATE
(continued)
D.
ACCOUNTABILITY AND AUDIT
The Board Audit Committee was established on 18 August 1994 and re-designated to Board Audit and Risk Management
Committee (BARMC) on 10 January 2002. The BARMC was re-grouped under two separate board committees
namely, Board Audit Committee (BAC) and Board Risk Management Committee (BRMC) on 2 October 2006. The
primary responsibilities of the BAC and BRMC are set out in the BAC Report and BRMC Report respectively.
During the FYE 2012, the BAC met nine (9) times and BRMC met seven (7) times. Details of attendance of the
committee members are set out in the BAC Report appearing on pages 42 to 44 and BRMC Report appearing on pages
45 to 48 of the Annual Report. The Chief Financial Officer, the Chief internal auditor, the Chief Risk Officer and the
CEO may attend the BAC and BRMC meetings, on the invitation of the respective committee, to provide information
and clarification required on items on the agenda. Representatives of the external auditors are also invited to attend
the BAC meetings to present their audit scope and plan, audit report and findings together with managements
response thereto, and to brief the BAC members on significant audit and accounting areas which they noted in the
course of their audit.
Issues raised, discussions, deliberations, decisions and conclusions made at the BAC and BRMC meetings are recorded
in the minutes of the meetings. Where the BAC or BRMC is considering a matter in which a committee member has
an interest, such member abstains from deliberating and voting on the subject matter.
The BAC which comprises 2 independent non executive directors and 1 non independent non executive director is
supported by the Group Internal Audit Division whose principal responsibility is to conduct periodic audits on internal
control matters to ensure compliance with systems and/or standard operating procedures of the Group. Investigation
will be made at the request of the BAC and senior management on specific areas of concern when necessary.
Significant breaches and deficiencies identified are discussed at the BAC meetings where appropriate actions will be
taken.
I
Financial Reporting
The Board is responsible for ensuring the proper maintenance of accounting records of the Group. The Board
receives the recommendation to adopt the financial statements from the BAC, which assesses the financial
statements with the assistance of the external auditors.
II Internal Control

The Board has overall responsibility for maintaining a system of internal controls which covers financial and
operational controls and risk management. This system provides reasonable but not absolute assurance against
material misstatements, losses and fraud.
Following the re-grouping of the BARMC mentioned above into two separate committees, the BRMC is entrusted
with the responsibility of identifying and communicating to the Board critical risks the Group faces, changes to
the Groups risk profile and managements action plans to manage the risks.
The Statement on Internal Control as detailed under Section E of this Statement provides an overview of the
state of internal controls within the Group.
III Relationship with Auditors

The appointment of external auditors is recommended by the BAC, which determines the remuneration of the
external auditors.

During the financial year under review, the external auditors met with the BAC to:

present the scope of the audit before the commencement of audit; and

review the results of the audit as well as the management letter after the conclusion of the audit.

The external auditors meet with the BAC members at least twice a year without the presence of executive
directors and management.
58
Corporate Section
CORPORATE
(continued)
E. STATEMENT ON INTERNAL CONTROL

I. Introduction

The Board recognizes the practice of good governance is an important continuous process and has established
the BAC and BRMC to ensure maintenance of a sound system of internal controls and good risk management
practices. The processes for risks and controls assessment and improvement are on-going and are regularly
reviewed in accordance with the guidelines on the Statement on Internal Control: Guidance for Directors of
Public Listed Companies.
II Responsibilities

The Board acknowledges its overall responsibility for the internal control environment and its effectiveness in
safeguarding shareholders interests and Bank Groups assets. The internal control framework is designed to
manage rather than eliminate the risk of failure in the achievement of goals and objectives of the Bank Group,
and therefore only provide reasonable assurance and not absolute assurance, against material misstatement or
loss.
The system of internal control that is instituted throughout the Bank Group is updated from time to time to align
with the dynamic changes in the business environment as well as process improvement initiatives undertaken.
The Board confirms that its Management team responsibly implements the Board policies, procedures and
guidelines on risks and controls.
III Key Internal Control Processes

The key internal control processes that are established in reviewing the adequacy and integrity of the system of
internal controls, are as follows:a.
Risk Management Framework
The organizational structure of the Bank Group clearly defines the lines of accountability and responsibility.
Risk assessment and evaluation is an integral part of the Bank Groups strategic planning cycle and in
response to business environment and opportunities. Management committees are appropriately set up to
ensure proper utilization and investment of the Group assets for effective risk return rewards or to limit
losses. The Banks Group Integrated Risk Management & Compliance (GIRMC) Division undertakes the
implementation of an enterprise and integrated risk framework in the business and support units to create
continuous risk awareness, understanding of procedures and controls and thus, improve the overall control
environment.
Operationally, the Bank operates multiple lines of defences to effect a robust control framework. At the
first level, the operating business and support units are responsible for the day-to-day management of
risks inherent in the various business activities. GIRMC, at the second level, is responsible for setting the
risk management framework and developing tools and methodologies for the identification, measurement,
monitoring, control and pricing of risks. Thirdly, the Internal Audit function complements GIRMC by its
activity of monitoring and evaluating significant exposures to risk and contributing to the improvement of
the risk management and control systems. It also provides from an independent perspective its assessment
on the adequacy and effectiveness of the risk management framework.
b.
Internal Audit
The Banks Group Internal Audit Division (GIAD) performs the internal auditing function for the various
entities in the financial services group. The GIAD regularly reviews the critical operations (as defined in
BNM Guideline on Internal Audit Function) and critical controls in the Information Technology environment
(as outlined in BNM GPIS) of the Bank Group to ensure the internal controls are in place and working
effectively. All audit findings, having been discussed at management level and affirmative actions agreed
in response to the audit recommendations, are duly documented in audit reports and tabled to the BAC.
Implementation of audit recommendations are followed up on a monthly basis and reported to the BAC
quarterly. Highlights of the BAC meetings are submitted to the Board for review and further deliberation.
59
Corporate Section
CORPORATE
(continued)
E. STATEMENT ON INTERNAL CONTROL (continued)

III Key Internal Control Processes (continued)
c.
Compliance
Regulatory and operational compliance units are set up in the various lines of businesses and support
departments. They oversee the day-to-day compliance to critical or major regulatory requirements, business
and process controls. In addition, overall oversight is provided by the Regulatory Compliance department,
which is a unit of GIRMC. The Board Risk Management Committee reviews the efforts of the Bank in
ensuring full regulatory compliance.
d.
Other Major Internal Controls

The Board receives and reviews regular reports from the Management on the key operating statistics,
business dynamics, legal matters and regulatory issues.
The BAC regularly reviews and holds discussions with management on the actions taken on
internal control issues identified in reports prepared by the GIAD, external auditors and regulatory
authorities.
Policies on delegation and authority limits are strictly imposed to ensure a culture that respects
integrity and honesty.
Policies and procedures are set out in operation manuals and disseminated in the intranet for easy
reference and in support of a learning environment.
The competencies and professionalism of the Groups human resources are developed and maintained
through rigorous recruitment process, training programs and a performance appraisal system. Proper
guidelines are in place for the recruitment, promotion and termination of staff.
F. DIRECTORS RESPONSIBILITY IN FINANCIAL REPORTING

The Main Market Listing Requirements of Bursa Malaysia Securities Berhad require the directors to prepare financial
statements for each financial year which give a true and fair view of the financial position of the Group and of the
Bank as at the end of the financial year and of its financial performance and cash flows of the Group and of the Bank
for the financial year.
The Directors are satisfied that in preparing the financial statements of the Group and of the Bank for the FYE
2012, the Group has used the appropriate accounting policies and applied them consistently. The directors are also
of the view that relevant approved accounting standards have been followed in the preparation of these financial
statements.
This Statement on Corporate Governance and Internal Control is made in accordance with the resolution of the Board of
Directors.
60
Financial Section
Directors
report
for the financial year ended 30 June 2012
The Directors have pleasure in presenting their report together with the audited financial statements of the Group and of
the Bank for the financial year ended 30 June 2012.
Principal activities
The Bank is principally engaged in all aspects of commercial banking business and in the provision of related services. The
principal activity of the significant subsidiary consist of Islamic Banking services. Other subsidiary companies are primarily
engaged in real property investment, investment holding and nominee services. The details of the subsidiary companies are
disclosed in Note 12 to the financial statements.
BUSINESS STRATEGY FOR THE CURRENT FINANCIAL YEAR
The Group seeks to assert the profitability and sustainability of its core businesses domestically by further scaling up its
full-fledged franchise in deposits and branch banking, personal financial services, business and corporate banking, trade
finance, treasury, wealth management and transaction banking. Digital banking offers opportunities for the Group to
further broaden its market embedment within the community and deepen relationships with customers through integrated
physical-virtual innovations that strengthen its reach into the customer base. The pace of building on the Groups regional
franchises in ASEAN and China will continue. In pursuit of prime value creation, this post-merger year is a platform for the
Group to deliver differentiating customer value propositions, improve the customer experience, extract scale and operating
efficiencies, enhance productivity and pursue new business areas for transformative growth.
Outlook and Business Plan for New Financial Year
The Group continues growing, strengthening and embedding our presence in the region. We will expand our network and
distribution footprint to deliver value added branch banking and online banking services to customers and businesses. With
the completion of the integration of systems, processes and policies into a single platform, we continue to realise merger
synergies and transform to meet the needs of our customers in pursuit of prime value creation, scale efficiencies and
product innovation.
PERFORMANCE REVIEW AND MANAGEMENT REPORTS
The Board receives and reviews regular reports from the Management on key financial and operating statistics as well as
legal and regulatory matters. The performance of each business unit is assessed against the approved budgets and business
objectives whilst explanation is provided for significant variances.
Credit information rating
On 29 May 2012, Rating Agency Malaysia Berhad has reaffirmed the Banks long-term rating at AA1 and its short-term
rating at P1, with stable outlook.
The ratings indicate that in the long-term, the Bank is adjudged to offer high safety for timely payment of financial
obligations while in the short-term, the Bank is adjudged to have superior capacities for timely payment of obligations.
Details of the rating of the Bank and its debt securities are as follows:
Rating Agency
Rating Agency Malaysia

Berhad
Date Accorded Rating Classification
29-May-12
Long-Term Rating: AA1

Short-Term Rating: P1
Subordinated Notes: AA2
Capital Securities: AA3
Definition
Demonstrates strong capacity in meeting both

long-term and short-term financial obligations.
The financial institution is also resilient against
adverse changes in circumstances, economic
conditions and/or operations environments.
61
Financial Section
Directors
report

(continued)
Credit information rating (continued)
Rating Agency
Moodys Investors
Services Ltd
Fitch Ratings Ltd
Date Accorded Rating Classification
12-Apr-12
Long-Term Rating: A3
Short-Term Rating: P1
13-Apr-12
Senior Unsecured: A3
27-Jan-12
Long-Term Rating: BBB+

Short-Term Rating: F2
18-Apr-12
Subordinated Debt: BBB+
Definition
Indicates a mixture of above-average and average

credit worthiness. However, elements may
be present which suggest a susceptibility to
impairment some time in the future.
Ratings generally indicates good credit quality.

There is currently a low expectation of credit risk
and satisfactory capacity to meet timely payment
of financial obligations. However, adverse changes
in circumstances and in economic conditions are
likely to impair the institutions capacity.
Financial results

Profit before taxation and zakat

Taxation and zakat
Net profit for the financial year

Dividends
The Group
The Bank
RM000
RM000
2,108,898
1,673,988
(460,742)
1,648,156
(426,708)
1,247,280
Since the last financial year ended 30 June 2011, a final dividend of 15.0 sen per share, less income tax of 25% amounting
to RM196,625,008 in respect of the financial year ended 30 June 2011, was paid on 16 November 2011.
An interim dividend for the financial year ended 30 June 2012 of 11.0 sen per share less income tax of 25% amounting to
RM144,197,666, was paid on 28 March 2012.
The Directors now propose a final dividend of 27.0 sen per share, less income tax of 25%, on the Banks adjusted issued
and paid-up share capital (excluding the 81,098,700 treasury shares held pursuant to Section 67A of the Companies Act,
1965) of RM1,798,810,400 comprising 1,798,810,400 shares, amounting to RM364,259,106, for the financial year
ended 30 June 2012.
Significant events during the financial year
Singnificant events during the financial year are disclosed in Note 50 to the financial statements.
Subsequent events after the financial year
(a)
On 26 July 2012, HLB proposed to establish a new executive share option scheme (ESOS) of up to 10% of the
issued and paid-up share capital of HLB (excluding treasury shares)(Proposed New ESOS).
The Proposed New ESOS is subject to the following:

(i)
approval-in-principle of Bursa Securities for the listing of and quotation for the new HLB shares to be issued
pursuant to the exercise of the Options under the Proposed New ESOS; and
(ii)
approval of the shareholders of HLB.
62
Financial Section
Directors
report

(continued)
Subsequent events after the financial year (continued)
(b)

Bursa Securities had, via its letter dated 18 September 2012, resolved to approve the listing of such number of
additional new ordinary shares of RM1.00 each, representing up to 10% of the issued and paid-up ordinary share
capital of HLB, to be issued pursuant to the exercise of options under the Proposed New ESOS.
Share capital
During the financial year ended 30 June 2012, the Bank increased its issued and paid-up capital from 1,580,107,034 to
1,879,909,100 via issuance of 299,802,066 new ordinary shares of RM1.00 each on the basis of 1 Rights Share for
every 5 existing shares held by HLBBs entitled shareholders on 21 September 2011 at an issue price of RM8.65 per rights
share.
Share buy-back
The shareholders of the Bank, via an ordinary resolution passed at the Annual General Meeting held on 25 October 2011,
had approved the Banks plan to purchase its own shares up to 10% of existing total issued and paid-up share capital. The
Directors of the Bank are committed to enhance the value of the Bank to its shareholders and believe that the share buyback
plan can be applied in the best interests of the Bank and its shareholders.
During the financial year, the Bank bought back 2,000 (2011: 2,000) ordinary shares of RM1.00 each, as stated in Note 29
(a) to the financial statements at an average price of RM10.59 per share (2011: RM9.37), from the open market. The share
buy-back transactions were financed by internally generated funds. As at 30 June 2012, the total number of shares bought
was 81,098,700 (2011: 81,096,700) and were held as treasury shares in accordance with the provisions of Section 67A
of the Companies Act, 1965. Accordingly, the adjusted issued and paid-up share capital of the Bank [excluding 81,098,700
(2011: 81,096,700) treasury shares] as at 30 June 2012 was RM1,798,810,400 (2011: RM1,499,010,334) comprising
1,798,810,400 (2011: 1,499,010,334) shares.
Reserves and provisions
There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in
the financial statements.
Directors
The Directors who have held office since the date of the last report and at the date of this report are as follows:
Mr Kwek Leng Hai
Mr Choong Yee How
Mr Quek Kon Sean
Ms Lim Lean See
Mr Lim Beng Choon
YBhg Dato Syed Faisal Albar bin Syed A.R Albar
Encik Zulkiflee bin Hashim

(Chairman, Non-Executive Non-Independent)

(Group Managing Director/Chief Executive, Non-Independent)



(Retired w.e.f. 1 November 2011)
(Executive Director, Non-Independent)
In accordance with Article 113 of the Banks Articles of Association, Mr Kwek Leng Hai, YBhg Datuk Yvonne Chia, YBhg
Datuk Kwek Leng San and Ms Lim Lean See retire by rotation at the forthcoming Annual General Meeting and being eligible,
offer themselves for re-election.
63
Financial Section
Directors
report

(continued)
Directors interests
According to the Register of Directors Shareholdings kept by the Bank under Section 134 of the Companies Act, 1965, the
Directors holding office at the end of the financial year who had beneficial interests in the ordinary shares and/or preference
shares and/or convertible bonds and/or options over ordinary shares of the Bank and/or its related corporations during the
financial year are as follows:
Shareholdings in which Directors have direct interests
Number of ordinary shares/preference shares/*shares issued or to be issued or acquired
arising from the exercise of options/convertible bonds
Nominal
value per
share
RM
As at
1.7.11
Acquired
Sold
As at
30.6.12
Hong Leong Company (Malaysia)

Berhad
1.00
390,000
390,000
Hong Leong Financial Group

Berhad
1.00
4,989,600
4,989,600
Interests of YBhg Tan Sri

Quek Leng Chan in:
Narra Industries Berhad

Guoco Group Limited
GuocoLand Limited
GuocoLand (Malaysia) Berhad
GuocoLeisure Limited
1.00
8,150,200
8,150,200
USD0.50
1,056,325
1,056,325
(1)
13,333,333
13,333,333
0.50
19,506,780
19,506,780
USD0.20
735,000
735,000
Interests of Mr Kwek Leng Hai in:

Berhad
1.00
420,500
420,500
USD0.50
3,800,775
3,800,775
(1)
35,290,914
35,290,914

Berhad
1.00
2,316,800
2,316,800
Hong Leong Industries Berhad
0.50
190,000
190,000
Hong Leong Capital Berhad
1.00
1,000,000
1,000,000
Hong Leong Bank Berhad
1.00
3,955,700
794,300
4,750,000
HKD1.00
2,300,000
2,300,000
0.50
226,800
226,800
Malaysian Pacific Industries

Berhad
0.50
71,250
71,250
1.00
772,000
992,000
(9)
352,800
(8)
219,240
(15)
Guoco Group Limited

GuocoLand Limited
Lam Soon (Hong Kong) Limited
(8)
Interests of YBhg Datuk

Yvonne Chia in:
5,408,000 *
(1,250,000)
(992,000) (9)
866,800
4,635,240 *
0.50
10,000
10,000
Hong Leong Financial Group Berhad
1.00
20,000
20,000
64
Financial Section
Directors
report

(continued)
Directors interests (continued)
Shareholdings in which Directors have direct interests
Nominal
value per
share
RM
As at
1.7.11
Acquired
1.00
960,000
2,032,000
Sold
As at
30.6.12
Interest of Mr Choong Yee How in:

Berhad
5,840,000 *
(9)
3,500,000 *
(2,032,000) (9)
2,992,000
6,188,000 *
(1,120,000) (10)
Interest of Mr Quek Kon Sean in:
Berhad
1.00
300,000
635,000
1,825,000 *
1,800,000 *
(9)
(635,000) (9)
935,000
2,640,000 *
(350,000) (10)
Interests of Datuk Kwek Leng
San in:
Hong Leong Company
(Malaysia) Berhad
1.00
117,500
117,500
0.50
2,520,000
2,520,000

Berhad
0.50
1,260,000
1,260,000
1.00
119,000
119,000

Guoco Group Limited
Berhad
1.00
385,000
77,000
462,000
USD0.50
209,120
209,120
1.00
600,000
600,000
1.00
14,000
14,000
(8)
Interest of Mr Lim Beng Choon in:

65
Financial Section
Directors
report

(continued)
Shareholdings in which Directors have indirect interests
Nominal
value per
share
RM
As at
1.7.11
Acquired
Sold
As at
30.6.12

Berhad
1.00
13,069,100
13,069,100

Berhad
1.00 824,437,300
824,437,300

Quek Leng Chan in:
1.00 195,263,227
1.00 968,216,100
195,767,885
Hong Leong MSIG Takaful

Berhad
1.00
65,000,000
195,263,227
1,163,983,985
65,000,000
140,000,000
246,136,603
17,352,872
6,941
(8)
Hong Leong Assurance Berhad
1.00 140,000,000
0.50 246,136,603
Hong Leong Yamaha Motor Sdn

Bhd
1.00
17,352,872
1.00
6,941
Guocera Tile Industries (Meru)

Sdn Bhd
1.00
19,600,000
19,600,000
Hong Leong Maruken Sdn Bhd

(In Members Voluntary
Liquidation)
1.00
1,750,000
1,750,000
Century Touch Sdn Bhd

(formerly known as Guocera
Tile Industries (Labuan) Sdn Bhd)
Liquidation)
1.00
6,545,001
6,545,001
Varinet Sdn Bhd

Liquidation)
1.00
10,560,627
10,560,627
RZA Logistics Sdn Bhd
1.00
7,934,247
7,934,247
(5)
5,286,500
5,286,500
110,245,457
Guocera Tile Industries

(Vietnam) Co., Ltd
(6)
(7)

Berhad
0.50 110,245,457
Carter Realty Sdn Bhd
1.00
Carsem (M) Sdn Bhd
1.00
84,000,000
84,000,000
100.00
22,400
22,400
1.00
38,314,000
38,314,000
USD0.50 235,798,529
150,000
235,948,529
Narra Industries Berhad

Guoco Group Limited
(6)
(7)
(6)
(7)
(6)
(7)
66
Financial Section
Directors
report

(continued)
Nominal
value per
share
RM
As at
1.7.11
(1)
819,244,363
Acquired
Sold
As at
30.6.12
819,244,363

Quek Leng Chan in:
(continued)
GuocoLand Limited
(6)
8,724,438 *
283,875 *
(9,008,313)
*(14)
301,541,202
Southern Steel Berhad
1.00 301,541,202
(11)
Southern Speciality Wire

Sdn Bhd
1.00
5,625,000
(11)
1,875,000
7,500,000
Southern Pipe Industry

(Malaysia) Sdn Bhd
1.00
54,383,093
(11)
54,383,093
(7)(11)
100,000
40,000,000
100,000
Belmeth Pte. Ltd.
(1)
40,000,000
Guston Pte. Ltd.
(1)
8,000,000
8,000,000
Perfect Eagle Pte. Ltd.
(1)
24,000,000
24,000,000
(1)
63,000,000
63,000,000
(1)
90,000
90,000
(2)
150,000,000
150,000,000
(2)
271,499,800
271,499,800
(3)
11,800,800
11,800,800
(3)
11,800,800
11,800,800
(2)
3,150,000,000
3,150,000,000
(3)
19,600,000
19,600,000
(2)
50,000,000
50,000,000
HKD1.00 140,008,659
140,008,659
First Garden Development

Pte Ltd
Sanctuary Land Pte Ltd
Beijing Minghua Property
Development Co., Ltd
Liquidation)
Nanjing Mahui Property
Development Co., Ltd
Nanjing Xinhaoning
Property Development
Co., Ltd
Nanjing Xinhaoxuan
Co., Ltd
Shanghai Xinhaojia
Co., Ltd
Shanghai Xinhaozhong
Co., Ltd
Beijing Cheng Jian
Dong Hua Real Estate
Development Company
Limited
Lam Soon (Hong Kong)
Limited
(6)
(12)
(7)
67
Financial Section
Directors
report

(continued)
Nominal
value per
share
RM
As at
1.7.11
Acquired
Sold
Kwok Wah Hong Flour Company

Limited
HKD100.00
9,800
M.C. Packaging Offshore Limited
HKD0.01
812,695
(812,695)
(4)
As at
30.6.12

Quek Leng Chan in: (continued)
Guangzhou Lam Soon Food

Products Limited
9,800
(13)
6,570,000
6,570,000
0.50 456,055,616
456,055,616
Guoman Hotel & Resort Holdings

Sdn Bhd
1.00 277,000,000
277,000,000
JB Parade Sdn Bhd
1.00
28,000,000
28,000,000
0.01
68,594,000
68,594,000
GuocoLeisure Limited
The Rank Group Plc
Park House Hotel Limited (In
Members Voluntary Liquidation)
(7)
USD0.20 918,501,425
3,339,000
921,840,425
GBP138/9p 266,044,391
25,002,149
291,046,540
2,883,440
10,000
GBP10p
2,883,440
1.00
10,000
0.50
750,000
750,000
Malaysian Pacific Industries Berhad
0.50
281,250
281,250
(7)
Interest of YBhg Datuk

Yvonne Chia in:
(16)
(16)
Interests of Mr Quek Kon Sean in:
Notes:
(1)

(4)

(5)

(6)

(7)

(8)

(9)

(2)
(3)

(12)

(13)

(14)

(15)

(16)

(10)
(11)
Concept of par value was abolished with effect from 30 January 2006 pursuant to the Singapore Companies (Amendment) Act,
2005
Capital contribution in RMB
Capital contribution in USD
Capital contribution in HKD
Capital contribution in VND
Inclusive of interest pursuant to Section 134(12)(c) of the Companies Act, 1965 in shares held by family member
Redeemable Preference Shares
Inclusive of shares acquired from rights issue
Exercise of share options
Share options lapsed
Shareholding as at 3 January 2012 when the corporation concerned became a related corporation
Became a wholly-owned subsidiary during the financial year
Struck off during the financial year
Inclusive of redemption of convertible bonds
Additional options - adjustment to the number of options arising from the rights issue pursuant to ESOS Bye-Laws
Interest pursuant to Section 134(12)(c) of the Companies Act, 1965 in shares held by family member
68
Financial Section
Directors
report

(continued)
Directors benefits
Since the end of the previous financial year, no Director of the Bank received or became entitled to receive any benefit
(other than a benefit included in the aggregate amount of emoluments received or due and receivable by the Directors as
shown in the financial statements or as fixed salary of a full-time employee of the Bank or of related corporations) by reason
of a contract made by the Bank or its related corporations with the Director or with a firm of which the Director is a member,
or with a company in which the Director has a substantial financial interest except for:
YBhg Tan Sri Quek Leng Chan, who may be deemed to derive a benefit by virtue of those transactions, contracts and
agreements for the acquisitions and/or disposal of stocks and shares, stocks-in-trade, products, parts, accessories,
plants, chattels, fixtures, buildings, land and other properties or any interest in any properties; and/or for the provision
of services including but not limited to project and sales management and any other management and consultancy
services; and/or for construction, development, leases, tenancy, licensing, dealership and distributorship; and/or
for the provision of treasury functions, advances in the conduct of normal trading, banking, insurance, investment,
stockbroking and/or other businesses between the Bank or its related corporations and corporations in which YBhg
Tan Sri Quek Leng Chan is deemed to have interests.
Neither at the end of the financial year, nor at any time during the financial year, did there subsist any other arrangements
to which the Bank is a party, with the object or objects of enabling the Directors of the Bank to acquire benefits by means
of the acquisition of shares in, or debentures of, the Bank or any other body corporate, other than the share options granted
pursuant to the Executive Share Option Scheme.
Responsibility statement by the Board of Directors
In the course of preparing the annual financial statements of the Group and of the Bank, the Directors are collectively
responsible in ensuring that these financial statements are drawn up in accordance with Malaysian Accounting Standards
Board Approved Accounting Standards in Malaysia for Entities Other than Private Entities, Bank Negara Malaysia Guidelines
and the provisions of the Companies Act, 1965.
It is the responsibility of the directors to ensure that the financial reporting of the Group and the Bank present a true and
fair view of the state of affairs of the Group and the Bank as at 30 June 2012 and of financial results and cash flows of
the Group and of the Bank for the financial year ended 30 June 2012.
The financial statements are prepared on the going concern basis and the directors have ensured that proper accounting records
are kept, applied the appropriate accounting policies on a consistent basis and made accounting estimates that are reasonable
and fair so as to enable the preparation of the financial statements of the Group and of the Bank with reasonable accuracy.
Executive Share Option Scheme (ESOS or Scheme)
The Executive Share Option Scheme (ESOS) of up to fifteen percent (15%) of the issued and paid-up ordinary share
capital of the Bank, which was approved by the shareholders of the Bank on 8 November 2005, was established on 23
January 2006 and would be in force for a period of ten (10) years.
On 18 January 2006, the Bank announced that Bursa Malaysia Securities Berhad had approved-in-principle the listing of
new ordinary shares of the Bank to be issued pursuant to the exercise of options under the ESOS at any time during the
existence of the ESOS.
The ESOS would provide an opportunity for eligible executives who had contributed to the growth and development of the
Group to participate in the equity of the Bank.
69
Financial Section
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report

(continued)
Executive Share Option Scheme (ESOS or Scheme) (continued)
The main features of the ESOS are, inter alia, as follows:
1.
Eligible executives are those executives of the Group who have been confirmed in service on the date of offer or
directors (executive or non-executive) of the Bank and its subsidiaries. The maximum allowable allotments for the full
time Executive Directors had been approved by the shareholders of the Bank in a general meeting. The Board may
from time to time at its discretion select and identify suitable eligible executives to be offered options.
2.
The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the issued and paid-up ordinary
share capital of the Bank for the time being (Aggregate Maximum Allocation).
3.
The Scheme shall be in force for a period of ten (10) years from 23 January 2006.
4.
The option price shall not be at a discount of more than ten percent (10%) (or such discount as the relevant authorities
shall permit) from the 5-day weighted average market price of the shares of the Bank preceding the date of offer and
shall in no event be less than the par value of the shares of the Bank.
5.
The options granted to an option holder under the ESOS is exercisable by the option holder only during his employment
with the HLB Group and within the option exercise period subject to any maximum limit as may be determined by the
Board under the Bye-Laws of the ESOS.
6.
The exercise of the options may, at the absolute discretion of the Board of Directors of the Bank, be satisfied by way
of issuance of new shares; transfer of existing shares purchased by a trust established for the ESOS; or a combination
of both new shares and existing shares.
The Bank granted the following conditional incentive share options to eligible executives of the Bank pursuant to the ESOS
of the Bank:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
4,500,000 share options at an exercise price of RM5.72;

250,000 share options at an exercise price of RM5.75 (granted and lapsed in financial year ended 2009);
200,000 share options at an exercise price of RM7.49;
1,000,000 share options at an exercise price of RM10.55; and
1,151,408 share options arising from adjustment for rights issue (per terms of approved ESOS Bye-Laws).
The said share options, if vested, will be satisfied by the transfer of existing shares purchased by a trust established for
the ESOS.
As at 30 June 2012, a total of 44,831,408 options have been granted under the ESOS, out of which 10,509,892 options
have been exercised, with 13,024,665 options remaining outstanding. The aggregate options granted to directors and
chief executives of the HLB Group under the ESOS amounted to 7,030,515, out of which 1,664,000 options have been
exercised, with 4,646,515 options outstanding.
Since the commencement of the existing ESOS, the maximum allocation applicable to directors and senior management of
the Bank is 50% of the Aggregate Maximum Allocation.
As at 30 June 2012, the actual percentage of options granted to directors and senior management of the HLB Group under
the ESOS was 1.20% of the issued and paid up ordinary share capital (excluding treasury shares) of the Bank, and the
actual percentage granted to the directors and senior management of the HLB Group during the financial year ended 30
June 2012 was 0.06% of the issued and paid up ordinary share capital (excluding treasury shares) of the Bank.
70
Financial Section
Directors
report

(continued)
Statutory information regarding the Group and the Bank

(I) As at the end of the financial year
(a)
(b)
(II)
Before the statements of income and statements of financial position of the Group and the Bank were made out,
the Directors took reasonable steps:
(i)
to ascertain that proper action had been taken in relation to the writing off of bad debts and financing and
the making of allowance for doubtful debts and financing and had satisfied themselves that all known bad
debts and financing had been written off and that adequate allowance had been made for doubtful debts
and financing; and
(ii)
to ensure that any current assets, other than debts and financing, which were unlikely to realise their book
values in the ordinary course of business had been written down to their estimated realisable values.
In the opinion of the Directors, the results of the operations of the Group and the Bank during the financial year
had not been substantially affected by any item, transaction or event of a material and unusual nature, other
than as disclosed in Notes 55 and 56 to the financial statements.
From the end of the financial year to the date of this report
(a)
The Directors are not aware of any circumstances:

(i)
which would render the amount written off for bad debts and financing or the amount of the allowance
for doubtful debts and financing in the financial statements of the Group and the Bank, inadequate to any
substantial extent;
(ii)
which would render the values attributed to current assets in the financial statements of the Group and
the Bank misleading; and
(iii) which had arisen which would render adherence to the existing method of valuation of assets or liabilities
of the Group and the Bank misleading or inappropriate.
(b)
In the opinion of the Directors:

(i)
the results of the operations of the Group and the Bank for the financial year ended 30 June 2011 are not
likely to be substantially affected by any item, transaction or event of a material and unusual nature which
had arisen in the interval between the end of the financial year and the date of this report; and
(ii)
no contingent or other liability has become enforceable, or is likely to become enforceable, within the
period of twelve months after the end of the financial year which will or may affect the ability of the Group
and the Bank to meet their obligations as and when they fall due.
(III) As at the date of this report

(a)
There are no charges on the assets of the Group and the Bank which had arisen since the end of the financial
year to secure the liabilities of any other person.
(b)
There are no contingent liabilities which had arisen since the end of the financial year.
(c)
The Directors are not aware of any circumstances not otherwise dealt with in the report or financial statements
of the Group and the Bank which would render any amount stated in the financial statements misleading.
71
Financial Section
Directors
report

(continued)
Disclosure of Shariah Advisory Committee
The Groups Islamic banking and takaful business activities are subject to the Shariah compliance and confirmation by the
Shariah Advisory Committee consisting of 5 scholars, at all times, appointed by the Board of Directors of Hong Leong
Islamic Bank Berhad for a 2 year term.
The primary role of the Shariah Advisor is mainly advising on matters relating to the business operations and products of
the Group and providing support by attending regular meetings with the Group to ensure that they are in conformity with
Shariah principles.
Holding and ultimate holding companies

The holding and ultimate holding companies are Hong Leong Financial Group Berhad and Hong Leong Company (Malaysia)
Berhad respectively, both companies are incorporated in Malaysia.
Auditors
The auditors, Messrs PricewaterhouseCoopers, have expressed their willingness to continue in office.
Signed on behalf of the Board of Directors in accordance with their resolution dated 26 July 2012.
Datuk Yvonne Chia
Choong Yee How

Kuala Lumpur
18 September 2012
72
Financial Section
Statements
of Financial Position
as at 30 June 2012
The Group
2012
RM000
2011
RM000
2012
RM000
2011
RM000
19,636,026
30,476,610
18,410,084
17,349,793
4,565,819
590,521
21,746,847
9,934,316
3,670,198
88,193,091
541,593
955,350
3,331,437
76,871
1,540,288
727,096
446,497
1,831,312
157,787,262
5,415,383
86
6,023,147
6,007,635
7,787,412
81,455,336
968,370
790,162
2,201,874
75,252
1,325,707
697,266
379,422
1,831,312
63,907
145,498,881
4,414,150
590,521
17,687,270
8,406,844
3,814,884
75,997,167
424,756
1,027,682
615,390
2,880,250
2,081,933
76,711
946,505
701,018
437,850
1,771,547
140,284,562
6,131,473
86
4,471,896
2,536,925
7,922,570
38,548,822
428,826
802,776
844,671
988,900
6,088,873
76,711
946,505
349,445
59,536
102,281
87,650,089
18
123,095,643
114,856,543
108,939,695
65,924,094
19
9,790,696
10,697,661
7,877,364
5,820,144
633,797
486,091
1,069,227
2,739,688
1,907,793
4,389,859
1,407,283
574,581
163,080
110,213
146,367,951
683,996
666,706
2,934,132
910,810
2,905,578
2,314,080
1,405,706
595,720
60,184
138,031,116
633,797
434,780
1,125,756
2,664,418
1,907,793
4,389,251
1,407,283
573,115
118,651
114,148
130,186,051
350,474
672,967
1,912,498
910,810
1,713,260
2,314,080
1,405,706
58,930
81,082,963
Note
Assets
Cash and short-term funds
Deposits and placements with banks and other
financial institutions
Securities purchased under resale agreements
Financial assets held-for-trading
Financial investments available-for-sale
Financial investments held-to-maturity
Loans, advances and financing
Other assets
Derivative financial instruments
Amount due from subsidiaries
Statutory deposits with Bank Negara Malaysia
Investment in subsidiary companies
Investment in jointly controlled entity
Investment in associated company
Property and equipment
Intangible assets
Goodwill
Deferred tax assets
Total assets
Liabilities
Deposits from customers
Deposits and placements of banks and other
Obligations on securities sold under repurchase
agreements
Bills and acceptances payable
Other liabilities
Senior bonds
Tier 2 subordinated bonds
Tier 2 capital cumulative subordinated loan
Non-innovative Tier 1 stapled securities
Innovative Tier 1 capital securities
Taxation
Deferred tax liabilities
Total liabilities
Equity
Share capital
Reserves
Less: Treasury shares
Total equity
5
6
7
8
9
20
10
11
12
13
14
15
16
57
17
20
21
22
23
24
25
26
17
27
28
29
Total equity and liabilities

Commitments and contingencies
The Bank
42
1,879,909
10,254,194
(714,792)
11,419,311
1,580,107
6,559,402
(671,744)
7,467,765
1,879,909
8,933,394
(714,792)
10,098,511
1,580,107
5,658,763
(671,744)
6,567,126
157,787,262
145,498,881
140,284,562
87,650,089
148,989,018
138,279,839
146,771,470
115,912,569
73
Financial Section
Statements
of Income
The Group
Note
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Interest income
30
5,441,052
3,254,984
5,493,832
2,952,529
Interest expense
31
(2,839,236)
(1,599,058)
(2,942,252)
(1,501,193)
2,601,816
1,655,926
2,551,580
1,451,336
Net interest income

Income from Islamic Banking business
Non-interest income
32
33
Net income
Overhead expenses
34
Operating profit before allowances

Allowance for impairment losses on loans,
advances and financing
35
Write back of impairment losses

Share of results of associated company
14
Share of results of jointly controlled entity
13

Taxation and zakat
447,598
227,090
3,049,414
1,883,016
2,551,580
1,451,336
844,279
668,695
882,199
689,468
3,893,693
2,551,711
3,433,779
2,140,804
(1,924,896)
(1,211,536)
(1,712,365)
1,968,797
1,340,175
1,721,414
(111,180)
38
(76,689)
(95,694)
32,702
2,094
29,263
1,890,319
1,204,995
1,673,988
1,078,566
216,960
210,992
1,619
2,108,898
(137,274)
(966,544)
1,174,260
(460,742)
(771)
1,415,216
(277,770)
1,673,988
1,078,566
(426,708)
(271,073)
1,648,156
1,137,446
1,247,280
807,493
1,648,156
1,137,446
1,247,280
807,493
Attributable to:
Owners of the parent
Earnings per share for profit attributable to
owners of the parent (sen):
- basic
39
99.2
78.3
75.1
55.6
- diluted
39
98.9
77.8
74.8
55.3
74
Financial Section
Statements
of Comprehensive Income
The Group
Note
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,648,156
1,137,446
1,247,280
807,493
Other comprehensive income/(loss):

Share of other comprehensive income of
associated company and jointly controlled
entity
(22)
Currency translation difference

Net fair value changes on financial
investments available-for-sale
Income tax relating to components of other
comprehensive loss
Other comprehensive income/(loss) for the
financial year, net of tax
Total comprehensive income for the financial
year, net of tax
6,068
41
109,079
41
(27,270)
87,855
1,736,011
(24)
(39,161)
8,113
(2,028)
(33,100)
1,104,346
(11,038)
623
106,144
14,660
(26,536)
(3,665)
68,570
11,618
1,315,850
819,111
75
Financial Section
Statements
of changes in equity
Attributable to owners of the parent
The Group
Note
Share
capital
RM000
Share
premium
RM000
Treasury
shares*
RM000
Statutory
reserve
RM000
Fair
value
reserve
RM000
Share
options
reserve
RM000
Regulatory
reserve**
RM000
1,580,107
539,664
(671,744) 1,936,654
102,211
21,121
726
Exchange
fluctuation
reserve
RM000
Retained
profits
RM000
Total
RM000
(26,848) 3,983,356
7,465,247
Balance as at 1 July
2011
- As previously
reported
- Prior year
adjustments
56
1,580,107
539,664
Net profit for the

financial year
Share of other
comprehensive
income of
associates
As restated
(671,744) 1,936,654
102,211
21,121
726
2,518
2,518
(26,848) 3,985,874
7,467,765
1,648,156
Comprehensive
income
Net fair value changes

in financial
investments
available-for-sale
41
(22)
1,648,156
(22)
81,809
81,809
Currency translation
difference
6,068
6,068
Total comprehensive
income
81,787
6,068
1,648,156
1,736,011
213,147
5,319
Transactions with
owners
Transfer to statutory
reserve/regulatory
reserve
(218,466)
Purchase of treasury
shares
29
(22)
Rights issue
27
299,802
2,292,719
(73,612)
- final dividend for

the financial year
ended 30 June
2011
40
(196,625)
(196,625)
- interim dividend for

the financial year
ended 30 June
2012
40
(144,198)
(144,198)
(22)
2,518,909
Dividends paid:
ESOS exercised
30,586
(4,054)
5,523
32,055
Option charge arising

from ESOS granted
5,416
5,416
299,802
2,292,719
213,147
1,362
5,319
(553,766)
2,215,535
1,879,909
2,832,383
(714,792) 2,149,801
183,998
22,483
6,045
(20,780)
5,080,264
11,419,311
Total transactions
with owners
Balance as at 30 June
2012
*
**
(43,048)
Treasury shares consist of two categories which are detailed in Note 29

The regulatory reserves are maintained by the Groups banking subsidiary company in Vietnam in line with the requirements of the
State Bank of Vietnam

76
Financial Section
Statements

(continued)
Attributable to owners of the parent
Share
capital
RM000
Share
premium
RM000
Treasury
shares*
RM000
Statutory
reserve
RM000
Fair value
reserve
RM000
Share
options
reserve
RM000
Regulatory
reserve**
RM000
Exchange
fluctuation
reserve
RM000
Retained
profits
RM000
Total
RM000
1,580,107
539,664
(687,908) 1,902,915
96,150
15,829
12,313
3,139,653
6,598,723
Net profit for the

financial year
1,137,446
1,137,446
Share of other
comprehensive
income of
associates
(24)
6,085
(39,161)
The Group
Note
2010
Comprehensive
income
Net fair value

changes in
financial
investments
available-for-sale
41
(24)
6,085
difference
(39,161)
Total comprehensive
income/(loss)
6,061
(39,161) 1,137,446
33,739
726
29

the financial year
ended 30 June
2010
40
(163,441)
(163,441)

the financial year
ended 30 June
2011
40
1,104,346
Transactions with
owners
Transfer to
statutory reserve/
regulatory reserve
shares
(19)
(33,742)
-
723
(19)
Dividends paid:
(98,077)
(98,077)
ESOS exercised
16,183
(2,314)
4,035
17,904
Option charge
arising from ESOS
granted
7,606
7,606
Total transactions
with owners
16,164
33,739
5,292
726
1,580,107
539,664
(671,744) 1,936,654
102,211
21,121
726
Balance as at 30
June 2011
*
**
(291,225)
(26,848) 3,985,874
(235,304)
7,467,765

The regulatory reserves are maintained by the Groups banking subsidiary company in Vietnam in line with the requirements of the

State Bank of Vietnam
77
Financial Section
Statements

(continued)
Non-distributable
The Bank
Note
2011
Distributable
Statutory
reserve
RM000
Fair value
reserve
RM000
Share
options
reserve
RM000
Exchange
fluctuation
reserve
RM000
Retained
profits
RM000
Total
equity
RM000
(671,744) 1,741,612
107,652
21,121
36,152
3,212,562
6,567,126
1,247,280
1,247,280
79,608
(11,038)
Share
capital
RM000
Share
premium
RM000
Treasury
shares*
RM000
1,580,107
539,664
Comprehensive
income
Net profit for the
financial year
Net fair value
changes in financial
investments
available-for-sale
41
79,608
difference
(11,038)
Total comprehensive
income/(loss)
79,608
(11,038)
1,247,280
1,315,850
2,477
138,297
Transactions with
owners
Effect of common
control accounting
28
Transfer to statutory
reserves
(2,477)
(138,297)
shares
29
(22)
Rights issue
27
299,802
2,292,719
(73,612)

the financial year
ended 30 June
2011
40
(196,625)
(196,625)

the financial year
ended 30 June
2012
40
(144,198)
(144,198)
ESOS exercised
30,586
(4,054)
5,523
32,055

from ESOS granted
5,416
5,416
299,802
2,292,719
1,362
1,879,909
2,832,383
22,483
25,114
(22)
2,518,909
Dividends paid:
Total transactions
with owners
2012
(43,048)
138,297
(714,792) 1,879,909
(2,477)
184,783
(471,120)
3,988,722
2,215,535
10,098,511
78
Financial Section
Statements

(continued)
Non-distributable
The Bank
Note
2010
Distributable
Statutory
reserve
RM000
Fair value
reserve
RM000
Share
options
reserve
RM000
Exchange
fluctuation
reserve
RM000
Retained
profits
RM000
Total
equity
RM000
(687,908) 1,741,612
96,657
15,829
35,529
2,662,552
5,984,042
807,493
807,493
Share
capital
RM000
Share
premium
RM000
Treasury
shares*
RM000
1,580,107
539,664
Comprehensive income
Net profit for the
financial year
Net fair value changes in
financial investments
available-for-sale
10,995
10,995
difference
41
623
623
Total comprehensive
income
10,995
623
807,493
819,111
29
- final dividend for the

financial year ended
30 June 2010
40
(163,441)
(163,441)
- interim dividend for the

financial year ended
30 June 2011
40
Transactions with
owners
shares
(19)
(19)
Dividends paid:
(98,077)
(98,077)
ESOS exercised
16,183
(2,314)
4,035
17,904

from ESOS granted
7,606
7,606
Total transactions with

owners
16,164
5,292
1,580,107
539,664
(671,744) 1,741,612
107,652
21,121
36,152
2011
(257,483)
3,212,562
(236,027)
6,567,126
79
Financial Section
Statements
of cash flows
The Group
Note
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
2,108,898
1,415,216
1,673,988
1,078,566
104,034
60,272
99,287
51,470
74,614
25,762
78,382
17,251
Cash flows from operating activities

Adjustment for:
Depreciation of property and equipment
Amortisation of intangible assets
Net gain on disposal of property and
equipment
Shares of associates results
Shares of joint ventures results
Property and equipment written off
Intangible assets written off
Gain from redemption of financial investments
held-to-maturity
Gain from disposal of financial investments
available-for-sale
Gain from disposal of financial assets held-fortrading and derivatives
157
(216,960)
(99)
154
(210,992)
(27)
-
771
26
125
26
14
969
(1,619)
(1,839)
(2,109)
(1,839)
(2,109)
(42,815)
(10,214)
(39,500)
(7,025)
(111,236)
(36,818)
(111,208)
(41,874)
Allowances for impairment on loans,

432,137
252,574
377,495
210,994
Net unrealised gain/(loss) on revaluation of

securities held at fair value through profit or
loss and derivatives
102,067
(78,902)
102,067
(77,478)
Net realised gain on fair value changes arising

from fair value hedges and amortisation of
fair value changes arising from terminated
fair value hedges
28,336
24,568
22,484
15,356
Writeback of allowance for impairment losses
(32,702)
(2,094)
(29,263)
Interest expense on subordinated obligations
275,251
94,620
282,018
77,880
Interest income from financial investments

available-for-sale
(227,118)
(100,670)
(236,865)
(90,728)
Interest income from financial investments

held-to-maturity
(181,232)
(444,834)
(216,442)
(465,405)
(22,942)
(23,766)
(22,942)
(23,473)
Dividend income from financial investments

available-for-sale
Dividend income from associated company
(2,379)
(57,436)
Dividend income from subsidiary companies
(46,000)
(32,000)
(8,774)
(22,666)
Net unrealised gain on fair value changes

arising from fair value hedges
Share option expenses
Operating profit before working capital changes
(8,774)
(22,666)
5,416
7,606
5,416
7,606
2,284,668
948,350
1,926,105
638,916
80
Financial Section
Statements
of cash flows

(continued)
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Deposits and placements with banks and other

849,564
2,789,618
2,411,965
873,191
(590,435)
(Increase)/Decrease in operating assets

Other assets
Statutory deposits with Bank Negara Malaysia
(15,599,727)
(7,177,575)
(291,871)
426,632
-
(86)
3,357,598
(6,800,188)
348,457
91,128
-
(590,435)
(12,794,867)
(5,803,332)
(86)
2,246,042
(5,125,129)
(256,681)
675,594
303,213
219,548
229,281
165,287
(1,129,563)
(1,118,207)
(1,031,403)
(641,900)
8,239,100
3,153,278
7,769,463
2,685,044
1,809,664
(2,919,582)
2,029,015
Increase/(Decrease) in operating liabilities

Deposits and placements of banks and other financial
institutions
(906,965)
(197,905)

Other liabilities
Securities sold under repurchase agreements
Cash (used in)/generated from operations
Taxation paid
Net cash flows (used in)/generated from
operating activities
(25,401)
(192,155)
65,108
402,521
(392,245)
452,789
(706,550)
(216,726)
(899,092)
(103,941)
(571,952)
633,797
(13,274,485)
(239,601)
(13,514,086)
3,262,874
(287,889)
2,974,985
633,797
(9,965,783)
(221,846)
(10,187,629)
2,552,128
(281,963)
2,270,165
81
Financial Section
Statements
of cash flows

(continued)
The Group
The Bank
2012
RM000
2011
RM000
Dividends from subsidiaries
Subscription of new shares in subsidiaries
4,729,494
4,411,206
2,387,355
(3,317,201)
Note
2012
RM000
2011
RM000
Cash flows from investing activities
Acquisition of assets and liabilities of Promino

Sdn Bhd (fka Eon Bank Berhad) (Promino)
net of cash acquired
55
Net (purchases)/proceeds of financial

investments available-for-sale
(3,558,410)
Net proceeds/(purchases) of financial

investments held-to-maturity
4,337,753
Proceeds from sale of subsidiary companies
Purchase of property and equipment
(151,082)
Proceeds from sale of property and equipment
17,466
Purchase of intangible assets
Dividend from associated company

Net cash flows generated from/(used in)
investing activities
(88,964)
1,870
4,480,604
3,955,943
(195,073)
13,530
32,000
(309,025)
(5,055,710)
1,567,526
(438,963)
(77,697)
1,717
(33,512)
(88,571)
(29,852)
22,942
23,766
22,942
23,473
2,379
57,436
2,379
16,411
528,454
6,467,766
9,131,759
(142,594)
Dividend received on financial investments

available-for-sale
(609,679)
46,000
(200,000)
(4,270,120)
Cash flows from financing activities

Dividend paid
(340,823)
Repayment of subdebt USD 200 million
Issuance of Rights Shares
2,518,909
Purchase of treasury shares
(22)
Cash received from ESOS exercised
32,055
Repayment of Tier 2 capital cumulative

subordinated loan
(2,300,000)
(261,518)
(650,454)
(19)
17,904
-
(340,823)
2,518,909
(22)
32,055
(2,300,000)
(261,518)
(650,454)
(19)
17,904
-
Proceeds from debt issuance

- Senior bonds
- Tier-2 subordinated bonds
910,959
910,738
910,959
910,738
1,453,587
1,695,176
1,448,324
1,695,176
- Tier-2 capital cumulative subordinated loan
2,300,000
2,300,000
- Non-innovative Tier-1 stapled securities
1,394,665
1,394,665
Interest paid on subordinated obligations
(205,085)
Net cash flows generated from financing

activities
2,069,580
Net (decrease)/increase in cash and cash

equivalents
(10,916,052)
Effects of exchange rate changes
75,468
Cash and cash equivalents at the beginning of

financial year
Cash and cash equivalents at the end of
financial year
(54,277)
(211,852)
(23,029)
5,352,215
2,057,550
5,383,463
14,794,966
1,001,680
3,383,508
(48,092)
58,611
(9,612)
30,476,610
15,729,736
17,349,793
13,975,897
19,636,026
30,476,610
18,410,084
17,349,793
82
Financial Section
Notes
to the financial statements
The following accounting policies have been used consistently in dealing with items that are considered material in relation
to the financial statements.
1
Basis of preparation of the financial statements
The financial statements of the Group and of the Bank have been prepared in accordance with the Malaysian
Accounting Standards Board (MASB) Approved Accounting Standards in Malaysia for Entities Other Than Private
Entities, Bank Negara Malaysia (BNM) Guidelines and comply with provisions of the Companies Act, 1965.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation
of financial investments available-for-sale securities and financial assets and financial liabilities (including derivative
instruments) at fair value through profit or loss.
The financial statements incorporate the activities relating to Islamic Banking which have been undertaken by Group
in compliance with Shariah principles. Islamic Banking business refers generally to the acceptance of deposits and
granting of financing under the Shariah principles.
The preparation of financial statements in conformity with Financial Reporting Standards requires the use of certain
critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reported period. It also requires Directors to exercise their judgement in the process of
applying the Groups and the Banks accounting policies. Although these estimates and judgement are based on
the management and Directors best knowledge of current events and actions, actual results may differ from those
estimates.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 53.
(a) Standards, amendments to published standards and interpretations to existing standards that are applicable to
the Group and the Bank and are effective

The new accounting standards, amendments and improvements to published standards and interpretations
that are applicable and effective for the Group and the Bank for the financial year ended 30 June 2012 are as
follows:
*
Revised FRS 1 First-time Adoption of Financial Reporting Standards

*
Revised FRS 127 Consolidated and separate financial statements

*
Amendment to FRS 2 Share-based payment - Group cash-settled share-based payment transactions

*
Amendment to FRS 7 Financial instruments: Disclosures - Improving disclosures about financial
instruments

*
Amendments to FRS 1 First-time adoption of financial reporting standards

*
Amendment to FRS 132 Financial instruments: Presentation - Classification of rights issues

*
IC Interpretation 4 Determining whether an arrangement contains a lease

*
IC Interpretation 12 Service concession arrangements

*
IC Interpretation 18 Transfers of assets from customers

The adoption of the above new standards, amendments and improvements to published standards did not give rise to
any material financial impact to the Group and the Bank.
83
Financial Section
Notes
(continued)
1
Basis of preparation of the financial statements (continued)

(b) Standards, amendments to published standards and interpretations to existing standards that are applicable to
the Group and the Bank but not yet effective

In the next financial year, the Group and the Bank will be adopting the new IFRS-compliant framework, Malaysian
Financial Reporting Standards (MFRS). In adopting the new framework, the Group and the Bank will be
applying MFRS 1 First-time adoption of MFRS.
The Group and the Bank will apply the new standards, amendments to standards and interpretations in the
following period:
(i)
Financial year beginning on/after 1 July 2012

*
MFRS 139 Financial instruments: Recognition and measurement (effective from 1 July 2012) - Bank
Negara Malaysia has removed the transitional provision for banking institutions on loan impairment
assessment and provisioning to comply with the MFRS 139 requirements.
The revised MFRS 124 Related party disclosures (effective from 1 July 2012) removes the
exemption to disclose transactions between government-related entities and the government, and all
other government-related entities. The following new disclosures are now required for government
related entities:
-
The name of the government and the nature of their relationship;
-
The nature and amount of each individually significant transactions; and
-
The extent of any collectively significant transactions, qualitatively or quantitatively.
Amendment to MFRS 112 Income taxes (effective from 1 July 2012) introduces an exception to
the existing principle for the measurement of deferred tax assets or liabilities arising on investment
property measured at fair value. MFRS 112 currently requires an entity to measure the deferred
tax relating to an asset depending on whether the entity expects to recover the carrying amount
of the asset through use or sale. It can be difficult and subjective to assess whether recovery will
be through use or through sale when the asset is measured using the fair value model in MFRS
140 Investment property. As a result of the amendments, IC Interpretation 121 Income taxes Recovery of revalued non-depreciable assets will no longer apply to investment properties carried
at fair value. The amendments also incorporate into MFRS 112 the remaining guidance previously
contained in IC Interpretation 121 which is withdrawn.
Amendment to MFRS 1 First time adoption on fixed dates and hyperinflation (effective from 1 July
2012) includes two changes to MFRS 1. The first replaces references to a fixed date of 1 January
2004 with the date of transition to MFRSs, thus eliminating the need for entities adopting MFRSs
for the first time to restate de-recognition transactions that occurred before the date of transition
to MFRSs. The second amendment provides guidance on how an entity should resume presenting
financial statements in accordance with MFRSs after a period when the entity was unable to comply
with MFRSs because its functional currency was subject to severe hyperinflation.
Amendment to MFRS 7 Financial instruments: Disclosures on transfers of financial assets (effective

from 1 July 2012) promotes transparency in the reporting of transfer transactions and improve users
understanding of the risk exposures relating to transfers of financial assets and the effect of those
risks on an entitys financial position, particularly those involving securitisation of financial assets.
Amendment to MFRS 101 Presentation of items of other comprehensive income (effective from 1
July 2012) requires entities to separate items presented in other comprehensive income (OCI) in the
statement of comprehensive income into two groups, based on whether or not they may be recycled
to profit or loss in the future. The amendments do not address which items are presented in OCI.
84
Financial Section
Notes
(continued)
1

the Group and the Bank but not yet effective (continued)
(ii)
Financial year beginning on/after 1 July 2013

*
MFRS 9 Financial instruments - Classification and measurement of financial assets and financial
liabilities (effective from 1 July 2015) replaces the multiple classification and measurement models
in MFRS 139 with a single model that has only two classification categories: amortised cost and fair
value. The basis of classification depends on the entitys business model for managing the financial
assets and the contractual cash flows characteristics of the financial asset.
The accounting and presentation for financial liabilities and for de-recognising financial instruments
has been relocated from MFRS 139, without change, except for financial liabilities that are designated
at fair value through profit or loss (FVTPL). Entities with financial liabilities designated at FVTPL
recognise changes in the fair value due to changes in the liabilitys credit risk directly in other
comprehensive income (OCI). There is no subsequent recycling of the amounts in OCI to profit or
loss, but accumulated gains or losses may be transferred within equity.
The guidance in MFRS 139 on impairment of financial assets and hedge accounting continues to
apply.
MFRS 7 requires disclosures on transition from MFRS 139 to MFRS 9.
MFRS 10 Consolidated financial statements (effective from 1 July 2013) changes the definition of
control. An investor controls an investee when it is exposed, or has rights, to variable returns from
its involvement with the investee and has the ability to affect those returns through its power over
the investee. It establishes control as the basis for determining which entities are consolidated in the
consolidated financial statements and sets out the accounting requirements for the preparation of
consolidated financial statements. It replaces all the guidance on control and consolidation in MFRS
127 Consolidated and separate financial statements and IC Interpretation 112 Consolidation Special purpose entities.
MFRS 11 Joint arrangements (effective from 1 July 2013) requires a party to a joint arrangement to
determine the type of joint arrangement in which it is involved by assessing its rights and obligations
arising from the arrangement, rather than its legal form. There are two types of joint arrangement:
joint operations and joint ventures. Joint operations arise where a joint operator has rights to the
assets and obligations relating to the arrangement and hence accounts for its interest in assets,
liabilities, revenue and expenses. Joint ventures arise where the joint operator has rights to the net
assets of the arrangement and hence equity accounts for its interest. Proportional consolidation of
joint ventures is no longer allowed.
MFRS 12 Disclosures of interests in other entities (effective from 1 July 2013) sets out the
required disclosures for entities reporting under the two new standards, MFRS 10 and MFRS 11, and
replaces the disclosure requirements currently found in MFRS 128 Investments in associates. It
requires entities to disclose information that helps financial statement readers to evaluate the nature,
risks and financial effects associated with the entitys interests in subsidiaries, associates, joint
arrangements and unconsolidated structured entities.
MFRS 13 Fair value measurement (effective from 1 July 2013) aims to improve consistency and
reduce complexity by providing a precise definition of fair value and a single source of fair value
measurement and disclosure requirements for use across MFRSs. The requirements do not extend
the use of fair value accounting but provide guidance on how it should be applied where its use is
already required or permitted by other standards. The enhanced disclosure requirements are similar to
those in MFRS 7 Financial instruments: Disclosures, but apply to all assets and liabilities measured
at fair value, not just financial ones.
85
Financial Section
Notes
(continued)
1

the Group and the Bank but not yet effective (continued)
(ii)
Financial year beginning on/after 1 July 2013 (continued)

*
The revised MFRS 127 Separate financial statements (effective from 1 July 2013) includes the
provisions on separate financial statements that are left after the control provisions of MFRS 127
have been included in the new MFRS 10.
The revised MFRS 128 Investments in associates and joint ventures(effective from 1 July 2013)
includes the requirements for joint ventures, as well as associates, to be equity accounted following
the issue of MFRS 11.
Amendment to MFRS 119 Employee benefits (effective from 1 July 2013) makes significant
changes to the recognition and measurement of defined benefit pension expense and termination
benefits, and to the disclosures for all employee benefits. Actuarial gains and losses will no longer
be deferred using the corridor approach. MFRS 119 shall be withdrawn on application of this
amendment.
Amendment to MFRS 132 Financial instruments: Presentation (effective from 1 July 2014) does
not change the current offsetting model in MFRS 132. It clarifies the meaning of currently has a
legally enforceable right of set-off that the right of set-off must be available today (not contingent
on a future event) and legally enforceable for all counterparties in the normal course of business. It
clarifies that some gross settlement mechanisms with features that are effectively equivalent to net
settlement will satisfy the MFRS 132 offsetting criteria.
Amendment to MFRS 7 Financial instruments: Disclosures (effective from 1 July 2013) requires
more extensive disclosures focusing on quantitative information about recognised financial instruments
that are offset in the statement of financial position and those that are subject to master netting or
similar arrangements irrespective of whether they are offset.
The Group has not finalised the financial impact of the change to MFRS and is expected to complete the process by
the first quarter of the financial year ending 30 June 2013.
2 Summary of Significant Accounting Policies

A Consolidation
(i)
Subsidiaries
The Bank treats as subsidiaries those corporations, partnerships or other entities (including special purpose
entities) in which the Bank has the power to exercise control over the financial and operating policies so
as to obtain benefits from their activities, generally accompanying a shareholding of more than half of the
voting rights.
Investment in subsidiaries is stated at cost less accumulated impairment losses. Where there is an indication
of impairment, the carrying amount of the investment is assessed. A write down is made if the carrying
amount exceeds its recoverable amount.
The consolidated financial statements include the financial statements of the Bank and all its subsidiaries
made up to the end of the financial year.
86
Financial Section
Notes
(continued)
2 Summary of Significant Accounting Policies (continued)

A Consolidation (continued)
(i)
Subsidiaries (continued)
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and deconsolidated from the date that control ceases. Subsidiaries are consolidated using the purchase method
of accounting, except for business combinations which were accounted for using predecessor basis of
accounting as follows:

subsidiaries that were consolidated prior to 1 April 2002 in accordance with Malaysian Accounting
Standard 2 Accounting for Acquisitions and Mergers, the generally accepted accounting principles
prevailing at that time
business combinations consolidated on/after 1 April 2002 but with agreement dates before 1 January
2006 that meet the conditions of a merger as set out in FRS 1222004 Business Combinations
internal group reorganisations, as defined in FRS 1222004, consolidated on/after 1 April 2002 but with
agreement dates before 1 January 2005 where:
-
-
the ultimate shareholders remain the same, and the rights of each such shareholder, relative to
the others, are unchanged; and
the minorities share of net assets of the Group is not altered by the transfer
business combinations involving entities or businesses under common control with agreement dates
on/after 1 January 2006
The Group has taken advantage of the transitional provision provided by FRS 1222004, FRS 3 and FRS 3
(revised) to apply these Standards prospectively. Accordingly, business combinations entered into prior to
the respective effective dates have not been restated to comply with these Standards.
The consideration transferred for acquisition of a subsidiary is the fair values of the assets transferred,
the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes
the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date.
In a business combination achieved in stages, the previously held equity interest in the acquiree is remeasured at its acquisition date fair value and the resulting gain or loss is recognised in profit or loss.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
Groups share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair
value of the net assets of the subsidiary acquired in the case of a bargain purchase, the gain is recognised
in profit or loss.
Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to a parent.
On an acquisition-by-acquisition basis, the Group measures any non-controlling interest in the acquiree
either at fair value or at the non-controlling interests proportionate share of the acquirees identifiable net
assets. At the end of reporting period, non-controlling interest consists of amount calculated on the date
of combinations and its share of changes in the subsidiarys equity since the date of combination.
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 financial years is not restated.
87
Financial Section
Notes
(continued)

(i)
Subsidiaries (continued)
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated. This may indicate an impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the
Groups share of its net assets as of the date of disposal including the cumulative amount of any exchange
differences that relate to the subsidiary is recognised in profit or loss attributable to the parent.
For business combinations involving entities or businesses under common control, the Group applies
predecessor (or common control) accounting, whereby no assets or liabilities are restated to their fair values.
Instead, the acquirer incorporates predecessor carrying values. No new goodwill arises in predecessor
accounting.
The acquirer only incorporates the acquired entitys results and balance sheet prospectively from the date
on which the business combination between entities under common control occurred. Consequently, the
acquirers financial statements do not reflect the results of the acquired entity for the period before the
transaction occurred. The corresponding amounts for the previous financial year are also not restated.
Predecessor accounting may lead to a difference between the cost of the transaction and the carrying
value of the net assets. The difference is recorded in retained profits.
(ii)
Transactions with non-controlling interests
The Group applies a policy of treating transactions with non-controlling interests as transactions with
equity owners of the Group. For purchases from non-controlling interests, the difference between any
consideration paid and the relevant share of the carrying value of net assets of the subsidiary acquired
is deducted from equity. For disposals to non-controlling interests, differences between any proceeds
received and the relevant share of non-controlling interests are also recognised in equity.
(iii) Investment in jointly controlled entity

Jointly controlled entities are corporations, partnerships or other entities over which there is contractually
agreed sharing of control by the Group with one or more parties where the strategic financial and operating
decisions relating to the entities require unanimous consent of the parties sharing control.
The Groups interest in jointly controlled entities is accounted for in the financial statements by the equity
method of accounting. Equity accounting involves recognising the Groups share of the post-acquisition
results of jointly controlled entities in profit or loss and its share of post-acquisition changes of the
investees reserves in other comprehensive income. The cumulative post-acquisition changes are adjusted
against the cost of the investment and include goodwill on acquisition (net of accumulated impairment
loss).
The Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture
that is attributable to the other venturers. The Group does not recognise its share of profits or losses from
the joint venture that result from the purchase of assets by the Group from the joint venture until it resells
the assets to an independent party. However, a loss on the transaction is recognised immediately if the
loss provides evidence of a reduction in the net realisable value of current assets or an impairment loss.
Where necessary, adjustments have been made to the financial statements of jointly controlled entities to
ensure consistency of accounting policies with those of the Group.
88
Financial Section
Notes
(continued)

(iv) Associated companies

Associated companies are those corporations, partnerships or other entities in which the Group exercises
significant influence, but which it does not control, generally accompanying a shareholding of between
20% and 50% of voting rights. Significant influence is power to participate in financial and operating
policy decisions of associated companies but not power to exercise control over those policies.
Investments in associated companies are accounted for using equity method of accounting and are initially
recognised at cost. The Groups investment in associated companies includes goodwill identified on
acquisition, net of any accumulated impairment loss.
The Groups share of associated companies post-acquisition profits or losses is recognised in profit or
loss, and its share of post-acquisition movements in reserves is recognised in other comprehensive income.
The cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
If the Groups share of losses of an associated company equals or exceeds its interest in the associated
company, the Group discontinues recognising its share of further losses. The interest in an associated
company is the carrying amount of the investment in the associated company under the equity method
together with any long-term interests that, in substance, form part of the Groups net investment in the
associated compny. After the Groups interest is reduced to zero, additional losses are provided for, and
a liability is recognised, only to the extent that the investor has incurred legal or constructive obligations
or made payments on behalf of the associated company. If the associated company subsequently reports
profits, the Group resumes recognising its share of those profits only after its share of the profits equals
the share of losses not recognised.
Unrealised gains on transactions between the Group and its associated companies are eliminated to the
extent of the Groups interest in the associated companies; unrealised losses are also eliminated unless
the transaction provides evidence on impairment of the asset transferred. Where necessary, in applying
the equity method, adjustments are made to the financial statements of associated companies to ensure
consistency of accounting policies with those of the Group.
(v)
Changes in ownership interests
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is re-measured to its fair value with the change in carrying amount recognised in profit or loss.
This fair value is its fair value on initial recognition as a financial asset in accordance with FRS 139. Any
amounts previously recognised in other comprehensive income in respect of that entity are accounted for
as if the Group had directly disposed of the related assets or liabilities.
B Recognition of interest/profit income and interest/profit expense

Interest income and expense for all interest-bearing financial instruments are recognised within interest income
and interest expense in the profit or loss using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial
liability and of allocating the interest income or interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of
the financial instruments or, when appropriate, a shorter period to the net carrying amount of the financial asset
or financial liability. When calculating the effective interest rate, the Group takes into account all contractual
terms of the financial instrument and includes any fees or incremental costs that are directly attributable to the
instrument and are an integral part of the effective interest rate, but not future credit losses.
Interest on impaired financial assets is recognised using the rate of interest used to discount the future cash
flows for the purpose of measuring the impairment loss. A financial asset or a group of financial assets is
deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events
that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event (or
events) has an impact on the estimated future cash flows of the financial asset or the group of financial assets
that can be reliably estimated.
89
Financial Section
Notes
(continued)

C Recognition of fees and other income

Loan arrangement fees and commissions are recognised as income when all conditions precedent are fulfilled.
Guarantee fees which are material are recognised as income based on time apportionment. Services charges and
other fee income are recognised as income when the services are rendered.
Commitment fees for loans, advances and financing that are likely to be drawn down and deferred (together
with direct costs) and income which forms an integral part of the effective interest rate of a financial instrument
is regarded as an adjustment to the effective interest rate of the financial instrument.
Dividends from securities held at fair value through profit or loss, financial investments available-for-sale
securities, held-to-maturity and subsidiary companies are recognised when the right to receive payment is
established.
Net profit from securities held at fair value through profit or loss and financial investment available-for-sale are
recognised upon disposal of the securities, as the difference between net disposal proceeds and the carrying
amount of the securities.
D
Financial assets

(i) Classification

The Group and the Bank classify their financial assets into the following categories: at fair value through
profit or loss, loans and receivables, financial investments held-to-maturity and financial investments
available-for-sale. Management determines the classifications of its securities up-front at the point when
transactions are entered into.
(a)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss comprise of financial assets held-for-trading and
other financial assets designated by the Group and the Bank as fair value through profit or loss upon
initial recognition.
A financial asset is classified as held-for-trading if it is acquired or incurred principally for the purpose
of selling or repurchasing it in the near term or if it is part of a portfolio of identified financial
instruments that are managed together and for which there is evidence of a recent actual pattern
of short-term profit-taking. Derivatives are also categorised as held-for-trading unless they are
designated and effective as hedging instruments.
(b)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market.
(c)
Financial investments held-to-maturity are non-derivative instruments with fixed or determinable

as the positive intent and ability to hold to maturity. If the Group or the Bank sell other than an
insignificant amount of financial investments held-to-maturity, the entire category will be tainted and
reclassified as financial investments available-for-sale.
(d)
Financial investments available-for-sale are those intended to be held for an indefinite period of time,
which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or
equity prices or that are not classified as financial assets at fair value through profit or loss, loans
and receivables and financial investments held-to-maturity.
90
Financial Section
Notes
(continued)

D
Financial assets (continued)

(ii)
Recognition and initial measurement
Financial assets are initially recognised at fair value plus transaction costs for all financial assets not carried
at fair value through profit or loss. Transaction costs for securities carried at fair value through profit or
loss are taken directly to the profit and loss.
(iii) Subsequent measurement

Financial assets at fair value through profit or loss and financial investments available-for-sale are
subsequently carried at fair value, except for investments in equity instruments that do not have a quoted
market price in an active market and whose fair value cannot be reliably measured in which case the
investments are stated at cost. Gains and losses arising from changes in the fair value of the financial
assets at fair value through profit or loss are included in the profit or loss in the financial period which they
arise. Gains and losses arising from changes in fair value of financial investments available-for-sale are
recognised directly in equity, until the securities are derecognised or impaired at which time the cumulative
gains or losses previously recognised in equity are recognised in the profit or loss. Foreign exchange gains
or losses of financial investments available-for-sale are recognised in the profit and loss in the financial
period it arises.
Financial investments held-to-maturity are subsequently measured at amortised cost using the effective
interest method. Gains or losses arising from the de-recognition or impairment of the securities are
recognised in the profit or loss.
Interest from financial assets held at fair value through profit or loss, financial investments available-forsale and financial investments held-to-maturity is calculated using the effective interest method and is
recognised in the profit or loss. Dividends from available-for-sale equity instruments are recognised in the
profit or loss when the entitys right to receive payment is established.
Loans and receivables are initially recognised at fair value which is the cash consideration to originate or
purchase the loan including the transaction costs, and measured subsequently at amortised cost using the
effective interest rate method. Interest on loans is included in the profit or loss. In the case of impairment,
the impairment loss is reported as a deduction from the carrying value of the loan and recognised in the
profit or loss.
(iv) Reclassification of financial assets

The Group and the Bank may choose to reclassify a non-derivative financial assets held-for-trading out of
the held for trading category if the financial asset is no longer held for the purposes of selling in the near
term. In addition, the Group and the Bank may choose to reclassify financial assets that would meet the
definition of loans and receivables out of the held-for-trading or available-for-sale categories if the Group
and the Bank have the intention and ability to hold these financial assets for the foreseeable future or until
maturity at the date of reclassification.
Reclassifications are made at the fair value at the date of the reclassification. The fair values of the
securities becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or
losses recorded before the reclassification date are subsequently made. The effective interest rates for
the securities reclassified to held-to-maturity category are determined at the reclassification date. Further
changes in estimates of future cash flows are recognised as an adjustment to the effective interest
rates.
91
Financial Section
Notes
(continued)

E
Financial liabilities
Financial liabilities are measured at amortised cost, except for trading liabilities and liabilities designated at fair
value, which are held at fair value through profit or loss. Financial liabilities are initially recognised at fair value
plus transaction costs for all financial liabilities not carried at fair value through profit or loss. Financial liabilities
at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in
profit or loss. Financial liabilities are derecognised when extinguished.
(i)
Financial liabilities at fair value through profit or loss
This category comprises two sub-categories: financial liabilities classified as held-for-trading and financial
liabilities designated at fair value through profit or loss upon initial recognition.
A financial liability is classified as held-for-trading if it is acquired or incurred principally for the purpose of
selling or repurchasing it in the near term or if it is part of a portfolio of identified financial instruments that
are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.
Derivatives are also categorised as held-for-trading unless they are designated and effective as hedging
instruments.
(ii)
Financial liabilities at amortised cost
Financial liabilities that are not classified as at fair value through profit or loss fall into this category and
are measured at amortised cost.
Property and equipment and depreciation
Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are
included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the Bank and the
cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other
repairs and maintenance are charged to the statements of income during the financial period in which they are
incurred.
Freehold land is not depreciated as it has an infinite life. Other property and equipment are depreciated on a
straight line basis to write off the cost of the assets to their residual values over their estimated useful lives,
summarised as follows:
Leasehold land
Buildings on freehold land
Buildings on leasehold land
Office furniture, fittings,
equipment and renovations
and computer equipment
Motor vehicles
Over the remaining period of the lease or 100 years (1%) whichever is shorter
2%
Over the remaining period of the lease or 50 years (2%) whichever is shorter
20% - 33%
20%
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
Depreciation on assets under construction commences when the assets are ready for their intended use.
Property and equipment are reviewed for impairment at each statement of financial position date and whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. Where the carrying
amount of an asset is greater than its estimated recoverable amount, it is written down to its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included
in non-interest income.
92
Financial Section
Notes
(continued)

G Intangible assets
(i)
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring
to use the specific software. These costs are amortised over their estimated useful lives of 5 years.
(ii)
Goodwill
Goodwill represents the excess of the cost of acquisition of subsidiaries, jointly controlled entities and
associated companies over the fair value of the Groups share of the identifiable net assets at the date of
acquisition. Goodwill on acquisition of associates is included in Investment in associated company and is
tested for impairment as part of the overall balance.
Separately recognised goodwill is tested annually for impairment and carried at cost less accumulated
impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units (CGUs) for the purpose of impairment testing. The
allocation is made to those cash-generating units or groups of cash-generating units that are expected to
benefit from the synergies of the business combination in which the goodwill arose. Impairment testing is
performed annually by comparing the present value of the CGUs projected cash flows against the carrying
amount of its net assets which include allocated goodwill.
(iii) Other intangible assets

Other intangible assets include core deposits and customer relationships. These intangible assets were
acquired in a business combination and are valued using income approach methodologies. These intangible
assets are stated at cost less accumulated amortisation and accumulated impairment losses.
The useful lives of the intangible assets are as follows:
Core deposit: 7 years

Customer relationships: 10 years
H Leases
(i)
Finance lease
Assets purchased under lease which in substance transfers the risks and benefits of ownership of the assets
to the Group or the Bank are capitalised under property and equipment. The assets and the corresponding
lease obligations are recorded at the lower of the present value of the minimum lease payments or the
fair value of the leased assets at the beginning of the lease term. Such leased assets are subject to
depreciation on the same basis as other property and equipment.
Leases which do not meet such criteria are classified as operating lease and the related rentals are charged
to profit or loss.
(ii)
Operating lease
Leases of assets under which all the risks and benefits of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the profit or loss on
a straight line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be
made to the lessor by way of penalty is recognised as an expense in the period in which termination takes
place.
93
Financial Section
Notes
(continued)

I Impairment of non-financial assets

When the Group ceases to have control, joint control or significant influence, any retained interest in the entity
is re-measured to its fair value with the change in carrying amount recognised in profit or loss. This fair value
is its fair value on initial recognition as a financial asset in accordance with FRS 139. Any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly
disposed of the related assets or liabilities.
J Income taxes

Current tax expense is determined according to the tax laws of each jurisdiction in which the Group operates
and includes all taxes based upon the taxable profits.
Deferred income tax is recognised in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred
income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction affects neither accounting nor taxable profit or
loss.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which the temporary differences can be utilised.
Deferred income tax is recognised on temporary differences arising on investments in subsidiaries, associates
and joint ventures except where the timing of the reversal of the temporary difference can be controlled by the
Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax related to fair value re-measurement of financial instruments available-for-sale, which
are charged or credited directly to equity, is also credited or charged directly to equity and is subsequently
recognised in the statements of income together with the deferred gain or loss.
Deferred income tax is determined using tax rates (and tax laws) that have been enacted or substantially
enacted by the statement of financial position date and are expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
K Derivative financial instruments and hedging

Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently remeasured at their fair value. Fair values are obtained from quoted market prices in active
markets, including recent market transactions, and valuation techniques, including discounted cash flow models
and option pricing models, as appropriate. All derivatives are carried as assets when fair value is positive and as
liabilities when fair value is negative. Changes in the fair value of any derivatives that do not qualify for hedge
accounting are recognised immediately in the statements of income.
The best evidence of fair value of a derivative at initial recognition is the transaction price (i.e. the fair value
of the consideration given or received) unless the fair value of the instrument is evidenced by comparison with
other observable current market transactions in the same instrument (i.e. without modification or repackaging)
or based on a valuation technique whose variables include only data from observable markets. When such
evidence exists, the Group and the Bank recognise profits immediately.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated
as a hedging instrument, and if so, the nature of the item being hedged. The Group and the Bank designated
certain derivatives as either: (1) hedges of the fair value of recognised assets or liabilities or firm commitments
(fair value hedge) or (2) hedges of highly probable future cash flows attributable to a recognised asset or liability,
or a forecasted transaction (cash flow hedge) or (3) hedges of a net investment in a foreign operation (net
investment hedge). Hedge accounting is used for derivatives designated in this way provided certain criteria are
met.
94
Financial Section
Notes
(continued)

K Derivative financial instruments and hedging (continued)

At the inception of the transaction, the Group and the Bank document the relationship between hedging
instruments and hedged items, as well as their risk management objective and strategy for undertaking various
hedge transactions. The Group and the Bank also document their assessment, both at hedge inception and on an
ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting
changes in fair values or cash flows of hedged items.
(i)
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded
in the statements of income, together with any changes in the fair value of the hedged assets or liabilities
that are attributable to the hedged risk.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of
a hedged item for which the effective interest method is used is amortised to profit or loss over the period
to maturity.
(ii)
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges are recognised in equity. The gain and loss relating to the ineffective portion is recognised
immediately in the statements of income. Amounts accumulated in equity are recycled to the statements
of income in the financial periods in which the hedged item will affect statements of income.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised
when the forecast transaction is ultimately recognised in the statements of income. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is
immediately transferred to the statements of income.
(iii) Net investment hedge

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain
or loss on the hedging instrument relating to the effective portion of the hedge is recognised in equity. The
gain or loss relating to the ineffective portion is recognised immediately in the statements of income.
Gains and losses accumulated in the equity are included in the statements of income when the foreign
operation is partially disposed or sold.
(iv) Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any
derivative instrument that does not qualify for hedge accounting are recognised immediately in the
statements of income.
L Currency translations
(i)
Functional and presentation currency
Items included in the financial statements of each of the Groups entities are measured using the currency
of the primary economic environment in which the entity operates (the functional currency). The
consolidated financial statements are presented in Ringgit Malaysia, which is the Banks functional and
presentation currency.
95
Financial Section
Notes
(continued)

L Currency translations (continued)
(ii)
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the statements of income, except when deferred in
equity as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as financial
instruments available-for-sale are analysed between translation differences resulting from changes in the
amortised cost of the security and other changes in the carrying amount of the security. Translation
differences related to changes in the amortised cost are recognised in income, and other changes in the
carrying amount are recognised in equity.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair value
gain or loss. Translation differences on non-monetary financial assets are recognised in income as part of
the financial instruments fair value gain or loss. Translation differences on non-monetary financial assets
such as equities classified as available-for-sale are included in the fair value reserve in equity.
(iii) Group companies

The results and financial position of all the group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:

assets and liabilities for each statements of financial position presented are translated at the closing
rate at the date of the statements of financial position;
income and expenses for each statements of income are translated at average exchange rates
(unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at the rate on the dates
of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign
operations, and of borrowings and other currency instruments designated as hedges of such investments,
are taken to shareholders equity. When a foreign operation is partially disposed of or sold, exchange
differences that were recorded in equity are recognised in the income statement as part of the gain or loss
on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the closing rate.
M Employee benefits
(i)
Short-term employee benefits
The Group and the Bank recognise a liability and an expense for bonuses. The Group and the Bank
recognise a provision where contractually obliged or where there is a past practice that has created a
constructive obligation.
Wages, salaries, paid annual leave and sick leave, bonuses, and non-monetary benefits are accrued in the
period in which the associated services are rendered by employees of the Group and the Bank.
96
Financial Section
Notes
(continued)

M Employee benefits (continued)
(ii)
Defined contribution plan
A defined contribution plan is a pension plan under which the Group and the Bank pay fixed contributions
into a fund and will have no legal or constructive obligations to pay further contributions if the fund does
not hold sufficient assets to pay all employees benefits relating to employee service in the current and prior
financial periods.
The Group and Bank contributes to a national defined contribution plan (the Employee Provident Fund) on
a mandatory basis and the amounts contributed to the plan are charged to the statement of income in the
financial period to which they relate. Once the contributions have been paid, the Group and the Bank have
no further payment obligations.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
future payments is available.
(iii) Share-based compensation

The Bank operates an equity-settled, share-based compensation plan for the employees of the Bank. The
fair value of the employee services received in exchange for the grant of the share options is recognised
as an expense in the statements of income over the vesting periods of the grant with a corresponding
increase in equity.
The total amount to be expensed over the vesting period is determined by reference to the fair value of
the share options granted, excluding the impact of any non-market vesting conditions. Non-market vesting
conditions are included in assumptions about the number of options that are expected to vest. At each
balance sheet date, the Bank revises its estimates of the number of share options that are expected to
vest. It recognises the impact of the revision of original estimates, if any, in the statements of income,
with a corresponding adjustment to equity.
A trust has been set up for the Executive Share Option Scheme (ESOS) and is administered by an
appointed trustee. The trustee will be entitled from time to time to accept financial assistance from the
Bank upon such terms and conditions as the Bank and the trustee may agree to purchase the Banks shares
from the open market for the purposes of this trust.
In accordance with FRS 132 Financial Instruments: Presentation, the shares purchased for the benefit
of the ESOS holders are recorded as Treasury Shares in equity on the statements of financial position.
The cost of operating the ESOS scheme would be charged to the statements of income when incurred in
accordance with accounting standards.
N Impairment of financial assets

(i)
Assets carried at amortised cost
A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective
evidence of impairment as a result of one or more events that has occurred after the initial recognition of
the asset (an incurred loss event) and that loss event (or events) has an impact on the estimated future
cash flows of the financial asset or the group of financial assets that can be reliably estimated.
The criteria the Group and the Bank use to determine that there is objective evidence of impairment loss
include indications that the borrower or a group of borrowers is experiencing significant financial difficulty,
the probability that they will enter bankruptcy or other financial reorganisation, default of delinquency in
interest or principal payments and where observable data indicates that there is a measurable decrease
in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with
defaults.
97
Financial Section
Notes
(continued)

N Impairment of financial assets (continued)
(i)
Assets carried at amortised cost (continued)
The Group and the Bank first assesses whether objective evidence of impairment exists individually for
financial assets that are individually significant, and individually or collectively for financial assets that are
not individually significant. If the Group determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a group of financial
assets with similar credit risk characteristics and collectively assesses them for impairment.
The amount of the loss is measured as the difference between the assets carrying amount and the present
value of estimated future cash flows discounted at the financial assets original effective interest rate. The
carrying amount of the asset is reduced through the use of an allowance account and the amount of the
loss is recognised in the profit or loss. If a loan or financial investments held-to-maturity have a variable
interest rate, the discount rate for measuring any impairment loss is the current effective interest rate
determined under the contract.
In accordance with the Amendments to FRS 139, MASB has included an additional transitional arrangement
for entities in the financial sector, whereby BNM may prescribe an alternative basis for collective assessment
of impairment by banking institutions. This transitional arrangement is prescribed in BNMs guidelines
on Classification and Impairment Provisions for Loans/Financing issued on 26 January 2010, whereby
banking institutions are required to maintain collective assessment impairment allowances of at least 1.5%
of total outstanding loans/financing, net of individual impairment allowance. The collective assessment
impairment allowance of the Group and the Bank as at the reporting date have been arrived at based on
this transitional arrangement issued by BNM.
When a loan is uncollectible, it is written off against the related allowance for loan impairment. Such
loans are written off after taking into consideration the realisable value of collateral, if any, when in the
judgement of the management, there is no prospect of recovery.
If in a subsequent period, the amount of impairment losses decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised (such as an improvement in the
debtors credit rating), the previously recognised impairment loss is reversed by adjusting the allowance
account. The amount of the reversal is recognised in the profit or loss.
(ii)
Assets classified as available-for-sale
The Group and the Bank assess at each date of the statement of financial position whether there is
objective evidence that the financial asset is impaired. For debt securities, the Group and the Bank use
criteria and measurement of impairment loss applicable for assets carried at amortised cost above. If in a
subsequent period, the fair value of a debt instrument classified as financial investments available-for-sale
increases and the increase can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss, the impairment loss is reversed through profit or loss.
In the case of equity instruments classified as financial investments available-for-sale, in addition to the
criteria for assets carried at amortised cost above, a significant or prolonged decline in the fair value of
the security below its cost is considered in determining whether the securities are impaired. If there is an
objective evidence that an impairment loss on financial investments available-for-sale has been incurred,
the cumulative loss that has been recognised directly in equity is removed from equity and recognised
in the profit or loss. The amount of cumulative loss that is reclassified to profit or loss is the difference
between the acquisition cost and the current fair value, less any impairment loss on that financial asset
previously recognised in profit or loss. Impairment losses recognised in profit or loss on equity instruments
are not reversed through the profit or loss.
98
Financial Section
Notes
(continued)

O Derecognition of financial assets and financial liabilities

Financial assets are derecognised when the contractual rights to receive the cash flows from these assets have
ceased to exist or the assets have been transferred and substantially all the risks and rewards of ownership of the
assets are also transferred (that is, if substantially all the risks and rewards have not been transferred, the Bank
tests control to ensure that continuing involvement on the basis of any retained powers of control does not prevent
derecognition). Financial liabilities are derecognised when they have been redeemed or otherwise extinguished.
Collateral furnished by the Bank under standard repurchase agreements transactions is not derecognised because
the Bank retains substantially all the risks and rewards on the basis of the predetermined repurchase price, and
the criteria for derecognition are therefore not met.
Financial guarantee contracts
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the
terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and other bodies
on behalf of customers to secure loans, overdrafts and other banking facilities.
Financial guarantees are initially recognised in the financial statements at fair value on the date the guarantee
was given. The fair value of a financial guarantee at the time of signature is zero because all guarantees are
agreed on arms length terms and the value of the premium agreed corresponds to the value of the guarantee
obligation. No receivable for the future premiums is recognised. Subsequent to initial recognition, the Banks
liabilities under such guarantees are measured at the higher of the initial amount, less amortisation of fees
recognised in accordance with FRS 137 Provision, Contingent Liabilities and Contingent Assets, and the best
estimate of the amount required to settle the guarantee. These estimates are determined based on experience of
similar transactions and history of past losses, supplemented by the judgement of management. The fee income
earned is recognised on a straight-line basis over the life of the guarantee. Any increase in the liability relating
to guarantees is reported in the profit or loss.
Foreclosed properties
Foreclosed properties are stated at the lower of carrying amount and fair value less cost to sell.
Bills and acceptances payable represent the Groups and the Banks own bills and acceptances rediscounted and
outstanding in the market.
Provisions
Provisions are recognised by the Group and the Bank when all of the following conditions have been met:
(i) the Group and the Bank have a present legal or constructive obligation as a result of past events;
(ii) it is probable that an outflow of resources to settle the obligation will be required; and
(iii) a reliable estimate of the amount of obligation can be made.
Where the Group and the Bank expect a provision to be reimbursed, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present values of the expenditures expected to be required to settle the obligation
using a pre-tax rate that reflects current market assessments of the time value of money and risks specific to
the obligation. The increase in the provision due to passage of time is recognised as interest expense.
99
Financial Section
Notes
(continued)

T Cash and cash equivalents

Cash and cash equivalents consist of cash and bank balances and short-term funds.
Zakat
Zakat provision is calculated based on 2.5% of net asset method.
V Treasury shares

The Bank has repurchased its shares and designated as treasury shares in accordance with FRS 132 Financial
Statements: Presentation. Treasury shares consist of those own shares purchased pursuant to Section 67A of
the Companies Act, 1965 and those purchased pursuant to ESOS scheme. Details of treasury shares are as
detailed in Note 29 of the financial statements.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value
is recognised in the statements of income over the period of the borrowings using the effective interest method.
X Segment reporting

Segment reporting is presented for enhanced assessment of the Banks risk and return. A business segment is
a group of assets and operations engaged in providing products or services that are subject to risks and returns
that are different from those of other business segments. A geographical segment is engaged in providing
products or services within a particular economic environment that are subject to risks and returns that are
different from those components.
Segment revenue, expense, assets and liabilities are those amount resulting from the operating activities of
a segment that are directly attributable to the segment and the relevant portion that can be allocated on a
reasonable basis to the segment. Segment revenue, expense, assets and liabilities are determined before intragroup balances and intra-group transactions are eliminated as part of the consolidation process, except to the
extent that such intra-group balances and transactions are between group enterprises within a single segment.
Y Non-current assets/disposal groups held-for-sale

Non-current assets/disposal groups are classified as assets held-for-sale and stated at the lower of carrying
amount and fair value less costs to sell if their carrying amount is recovered principally through a sale transaction
rather than through continuing use.
Z Share capital
(i)
Classification
Ordinary shares are classified as equity. Other shares are classified as equity and/or liability according to
the economic substance of the particular instrument. Distributions to holders of a financial instrument
classified as an equity instrument are charged directly to equity.
(ii)
Share issue costs
Incremental external costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
(iii) Dividends

Dividends on ordinary shares are recognised as a liability when the shareholders right to receive the
dividend is established.
100
Financial Section
Notes
(continued)

AA Contingent assets and contingent liabilities

The Group does not recognise contingent assets and liabilities, but discloses its existence in the financial
statements. A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of
the Group or a present obligation that is not recognised because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in the extremely rare case where there
is a liability that cannot be recognised because it cannot be measured reliably. However, contingent liabilities
do not include financial guarantee contracts. A contingent asset is a possible asset that arises from past events
whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events
beyond the control of the Group. The Group does not recognise contingent assets but discloses its existence
where inflows of economic benefits are probable, but not virtually certain.
3 Cash and short-term funds

The Group
Cash and balances with banks and other financial

institutions
Money at call and deposit placements maturing
within one month
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,234,187
1,841,163
1,203,248
1,488,556
18,401,839
28,635,447
17,206,836
15,861,237
19,636,026
30,476,610
18,410,084
17,349,793
6,804
Included in the cash and short-term funds are

clients monies placed in trust accounts
maintained by a subsidiary as follows:
Cash and balances with banks and other
Money at call and deposit placements maturing
within one month
37,657
44,461
4 Deposits and placements with banks and other financial institutions

The Group
Licensed banks
Licensed investment banks
Bank Negara Malaysia
Other financial institutions
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
2,419,097
3,758,592
2,267,428
4,701,523
25,004
60,204
25,004
60,204
954,422
954,422
1,167,296
1,596,587
1,167,296
1,369,746
4,565,819
5,415,383
4,414,150
6,131,473
101
Financial Section
Notes
(continued)
5

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
11,044,525
767,821
7,386,564
99,624
Money market instruments

Bank Negara Malaysia bills
Government treasury bills
253,388
49,185
253,388
49,185
Malaysian Government securities
236,879
116,718
236,879
116,718
Malaysian Government investment certificates
2,177,642
388,068
1,730,729
326,987
Bankers acceptances and Islamic accepted bills
4,204,306
3,732,445
3,927,300
3,140,894
Negotiable instruments of deposit
2,975,604
458,928
3,378,954
357,876
93,847
72,214
72,214
1,889
1,889
20,966,447
5,607,012
16,987,917
4,091,284
Commercial papers
Cagamas bonds
Quoted securities
Shares outside Malaysia
Unquoted securities
Private and Islamic debt securities
422,489
35,523
341,442
Foreign currency bonds
357,911
380,612
357,911
380,612
21,746,847
6,023,147
17,687,270
4,471,896
102
Financial Section
Notes
(continued)
6

The Group

Government treasury bills
Bank Negara Malaysia sukuk
Bank Negara Malaysia monetary notes
Bank Negara Malaysia bills
Islamic negotiable instrument debt securities
Bankers acceptances and Islamic accepted bills
Other Government securities
Cagamas bonds
Quoted securities
Shares quoted in Malaysia
Loan stocks quoted in Malaysia
Wholesale fund
Unquoted securities
Private debt securities in Malaysia
Shares in Malaysia
Foreign currency bonds in Malaysia
Foreign currency bonds outside Malaysia
Accumulated impairment losses
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
375,160
1,369,664
11,826
120,818
624,625
2,502,093
364,156
632,968
1,911,745
114,695
57,117
76,353
522,051
28,833
44,853
137,259
3,890,030
375,160
731,842
12,658
471,885
1,591,545
344,180
394,444
730,269
20,375
1,489,268
102,513
6,420
71,499
999,800
3,682,325
110,374
1,112
53,993
4,055,509
102,513
530
71,499
999,800
2,765,887
110,374
53,993
1,653,635
2,848,788
312,759
3,468
2,228,512
881,073
9,956,925
(22,609)
9,934,316
1,216,104
229,433
3,298
172,603
335,930
6,012,877
(5,242)
6,007,635
2,316,113
312,690
3,468
2,150,222
881,073
8,429,453
(22,609)
8,406,844
224,356
150,401
172,603
335,930
2,536,925
2,536,925
The table below shows the movements in allowance for impairment losses during the financial year for the Group and
the Bank:
As at 1 July 2011
Vesting of assets and liabilities of Promino
Allowance made during the financial year
As at 30 June 2012
As at 1 July 2010
Acquisition of assets and liabilities of EON Capital Berhad (ECB)
As at 30 June 2011
The Group
The Bank
RM000
RM000
5,242
17,367
22,609
5,242
17,367
22,609
5,242
5,242
103
Financial Section
Notes
(continued)
7

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,867,919
3,577,909
1,867,919
3,577,909
1,086,401
1,123,311
530,163
903,689
248,101
170,942
206,773
170,942
Cagamas bonds
Other Government securities
20,593
2,677,278
1,016,326
3,194,188
151,958
14,043
2,578
3,374,972
7,563,483
3,623,759
7,846,728
Unquoted securities in Malaysia

Loan stocks
11,781
2,953
11,781
2,953
Private and Islamic debt securities
195,694
424,732
91,593
75,574
Unquoted bonds
204,884
204,884
52,000
52,000
3,839,331
7,991,168
3,984,017
7,925,255
Investment in preference shares

Accumulated impairment losses
(169,133)
3,670,198
(203,756)
7,787,412
(169,133)
3,814,884
(2,685)
7,922,570
The table below shows the movements in allowance for impairment losses during the financial year for the Group and
the Bank:
The Group
The Bank
RM000
RM000
170,620
2,685
As at 1 July 2011
- as previously reported
- fair value adjustments on completion of business combination accounting
As restated
33,136
203,756
2,685
167,388
1,790
Amount written back in respect of recoveries
(36,413)
As at 30 June 2012
169,133
169,133
4,673
4,673
As at 1 July 2010
Acquisition of assets and liabilities of ECB
Fair value adjustments on completion of business combination accounting
As at 30 June 2011
168,000
(2,053)
(940)
(1,988)
33,136
203,756
2,685
104
Financial Section
Notes
(continued)
8 Loans, advances and financing
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
4,073,003
4,185,914
3,862,683
2,097,307
37,066,670
31,761,748
31,312,244
20,010,166
5,302,510
4,654,683
4,866,398
2,571,439
17,373,330
17,214,483
13,513,532
3,015,843
106,391
4,486
10,114,562
10,484,564
8,624,704
2,514,792
4,233,382
4,262,859
4,233,382
2,497,855
Bills receivable
651,240
354,250
640,523
344,927
Trust receipts
342,745
302,959
333,701
140,659
7,251,829
6,621,138
6,870,319
3,919,301
6,582
8,391
6,582
8,391
3,769,403
3,749,153
3,499,655
2,165,632
241,500
283,247
226,439
88,858
Overdrafts
Term loans/financing:
- Housing and shop loans/financing
- Syndicated term loans/financing
- Hire purchase receivables
- Lease receivables
- Other term loans/financing
Credit/charge card receivables
Claims on customers under acceptance credits

Block discounting
Revolving credit
Staff loans/financing
Other loans/financing
37,919
133,658
33,097
40,811
90,571,066
84,021,533
78,023,259
39,415,981
Fair value changes arising from fair value hedges
23,852
16,722
Unamortised fair value changes arising from

terminated fair value hedges
21,570
17,177
14,838
14,438
Gross loans, advances and financing
Allowance for impaired loans, advances and

financing:
- Collective assessment allowance
- Individual assessment allowance
Total net loans, advances and financing

(1,881,419)
(1,790,314)
(1,593,942)
(726,970)
(541,978)
(793,060)
(463,710)
(154,627)
(2,423,397)
(2,583,374)
(2,057,652)
(881,597)
88,193,091
81,455,336
75,997,167
38,548,822
The Group and the Bank have designation fair value hedges on certain receivables using interest rate swaps during
the current financial year. The total fair value loss of the said interest rate swaps related to these hedges at 30 June
2012 amounted to RM51,380,000 and RM36,395,000 at Group and Bank respectively.
105
Financial Section
Notes
(continued)
8 Loans, advances and financing (continued)
(i)
The maturity structure of loans, advances and financing is as follows:

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
25,774,287
23,002,022
24,202,531
13,219,190
7,140,438
5,753,032
5,904,892
2,420,188
Maturing within:
- one year
- one year to three years
- three years to five years
(ii)
9,388,281
8,732,468
7,814,974
2,688,947
- over five years
48,268,060
46,534,011
40,100,862
21,087,656
90,571,066
84,021,533
78,023,259
39,415,981
The loans, advances and financing are disbursed to the following types of customers:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
528,174
718,366
405,085
118,720
- small medium enterprises
12,049,541
12,199,764
11,024,021
3,717,642
- others
19,804,343
15,827,304
17,902,314
9,014,645
26,256
28,898
20,272
55,475,122
52,469,045
46,179,091
24,481,830
29,549
30,678
26,955
9,816
2,658,081
2,747,478
2,465,521
2,073,328
90,571,066
84,021,533
78,023,259
39,415,981
Domestic non-bank financial institutions

other than stockbroking companies
Domestic business enterprises:
Government and statutory bodies

Individuals
Other domestic entities
Foreign entities
106
Financial Section
Notes
(continued)
(iii) Loans, advances and financing analysed by interest rate/profit rate sensitivity are as follows:
The Group
2012
RM000
The Bank
2011
RM000
2012
RM000
2011
RM000
Fixed rate:
- Housing and shop loans/financing
2,997,728
3,467,141
1,688,490
756,353
16,843,527
17,158,926
12,998,512
2,963,250
- Credit card
4,233,382
4,262,859
4,233,382
2,497,855
- Other fixed rate loan/financing
3,555,141
3,475,892
2,419,364
1,461,055
- Base lending rate plus
51,203,453
43,544,696
45,611,954
26,569,853
- Cost plus
11,482,332
11,597,328
10,829,309
5,055,260
- Hire purchase receivables
Variable rate:
- Other variable rates

255,503
514,691
242,248
112,355
90,571,066
84,021,533
78,023,259
39,415,981
(iv) Loans, advances and financing analysed by their economic purposes are as follows:
The Group
Purchase of securities
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,030,125
1,150,988
1,029,928
543,518
Purchase of transport vehicles
17,251,679
17,270,583
13,400,268
3,098,694
Residential property (housing)
30,689,119
27,648,543
25,753,364
16,244,598
9,985,329
9,059,391
9,155,652
5,125,385
Non-residential property
Purchase of fixed assets (excluding landed
properties)
638,350
668,935
595,691
Personal use
3,576,501
3,567,683
2,664,505
1,929,546
Credit card
4,233,382
4,262,859
4,233,382
2,497,855
103
198
95
70
Construction
924,674
836,005
890,836
299,515
Mergers and acqusition
388,832
388,832
19,907,488
17,831,469
18,194,609
9,525,206
1,945,484
1,724,879
1,716,097
151,594
90,571,066
84,021,533
78,023,259
39,415,981
Purchase of consumer durables
Working capital
Other purpose
107
Financial Section
Notes
(continued)
(v)
Loans, advances and financing analysed by their geographical distribution are as follows:

The Group
In Malaysia
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
88,630,215
82,199,217
76,235,196
37,608,008
1,767,575
1,807,973
1,767,575
1,807,973
Outside Malaysia:
- Singapore operations
- Hong Kong operations
- Vietnam operations
20,488
20,488
152,788
14,343
90,571,066
84,021,533
78,023,259
39,415,981
(vi) Impaired loans, advances and financing analysed by their economic purposes are as follows:
The Group
2012
RM000
Purchase of securities
The Bank
2011
RM000
2012
RM000
2011
RM000
9,941
10,259
9,899
4,737
Purchase of transport vehicles
216,114
185,001
170,994
20,992
Residential property (housing)
342,581
458,242
276,010
181,876
Non-residential property
73,388
79,403
66,275
15,846
Purchase of fixed assets (excluding landed

properties)
21,667
21,067
21,148
Personal use
86,654
93,742
78,392
66,998
Credit card
66,949
58,100
66,949
24,770
Purchase of consumer durables

Construction
Working capital
Others
Gross impaired loans, advances and
financing
17
26,388
31,075
24,627
6,412
649,243
932,744
557,166
278,885
39,082
45,751
38,719
284
1,532,014
1,915,401
1,310,186
600,800
108
Financial Section
Notes
(continued)
(vii) Movements in the impaired loans, advances and financing are as follows:
The Group
Note
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,882,930
930,202
600,800
887,446
As at beginning of the financial year

- fair value adjustments on
completion of business
combination accounting
As restated
Acquisition of assets and liabilities
of ECB
Fair value adjustments on completion
of business combination
accounting
Vesting of assets and liabilities of
Promino
Impaired during the financial year
55
32,471
1,915,401
930,202
600,800
887,446
1,294,351
32,471
1,003,131
1,789,034
2,078,452
883,652
(1,081,218)
(493,248)
(893,761)
(321,635)
Amount written back in respect of

recoveries
(800,135)
(459,440)
(712,422)
(336,457)
Amount written off
(584,256)
(277,596)
(477,386)
(224,157)
Performing during the financial year
Exchange difference
As at end of the financial year
Gross impaired loans as a % of gross
loans, advances and financing
592,997
3,770
5,009
790
2,606
1,532,014
1,915,401
1,310,186
600,800
1.7%
2.3%
1.7%
1.5%
(viii) Impaired loans, advances and financing analysed by their geographical distribution are as follows:
The Group
In Malaysia
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,489,443
1,870,376
1,267,615
555,775
42,571
45,025
42,571
45,025
1,532,014
1,915,401
1,310,186
600,800
Outside Malaysia:
- Singapore operations
Gross impaired loans, advances and
financing
109
Financial Section
Notes
(continued)
(ix) Movements in the allowance for impaired loans, advances and financing are as follows:

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,575,097
769,545
726,970
684,670
215,217
Collective assessment allowance

- fair value adjustments on completion of
business combination accounting
As restated
1,790,314
769,545
726,970
684,670
742,983
Fair value adjustments on completion of

215,217
791,101
Allowances made during the financial year
794,400
390,985
679,925
292,817
Amount transferred from individual

assessment
55,688
45,291
Disposal of subsidiary
(1,168)
Amount written back in respect of

recoveries
(333,095)
(101,191)
(268,977)
(70,874)
Amount written off
(416,370)
(217,424)
(372,992)
(170,822)
(8,819)
(11,018)
(7,871)
(10,064)
Unwinding income
Exchange difference
469
1,217
495
1,243
1,881,419
1,790,314
1,593,942
726,970
666,314
228,018
154,627
226,724

126,746
As restated

Individual assessment allowance
793,060
228,018
154,627
226,724
505,525

126,746
492,209
Allowances made during the financial year
61,155
72,277
52,182
27,370
Amount transferred to collective

assessment
(55,688)
(45,291)
(135,754)
(83,129)
(123,518)
(48,159)
Amount written off
(116,873)
(44,200)
(57,582)
(37,891)
(9,716)
(14,974)
(9,407)
(14,836)
Unwinding income
Exchange difference
5,794
2,797
490
1,419
541,978
793,060
463,710
154,627
110
Financial Section
Notes
(continued)
9
Other assets
The Group
2012
RM000
Foreclosed properties
The Bank
2011
RM000
2012
RM000
2011
RM000
1,338
1,458
1,338
475
Sundry debtors and other prepayments
129,262
679,273
100,258
231,885
Treasury related receivables
220,591
62,352
220,591
62,352
Other receivables
190,402
225,287
102,569
134,114
541,593
968,370
424,756
428,826
10 Amount due from subsidiaries

The Group
Redeemable Preference Shares in Famehub

Capital Sdn Bhd
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
613,800
613,800
Intercompany settlement
1,590
230,635
Others
236
615,390
844,671
The amount due from Famehub Capital Sdn Bhd, a special purpose vehicle incorporated in Malaysia, bears an interest
rate of 7.5% per annum, payable semi-annually and will be fully repaid by 9 October 2013.
Inter-company settlement and others are unsecured, interest-free and generally short-term in nature.
11 Statutory deposits with Bank Negara Malaysia

The non-interest bearing statutory deposits are maintained with BNM in compliance with Section 26(2)(c) of the Central
Bank of Malaysia Act, 2009, the amount of which is determined at set percentages of total eligible liabilities.
12 Investment in subsidiary companies
The Bank
2012
RM000
2011
RM000
1,806,312
6,088,849
11
11
275,597
Unquoted shares, at cost:

- in Malaysia
- outside Malaysia
Subordinated financing facility
Arising from translation of a foreign subsidiary company
13
13
2,081,933
6,088,873
111
Financial Section
Notes
(continued)
12 Investment in subsidiary companies (continued)
The Bank
2012
RM000
2011
RM000
6,088,873
714,092
(i)
309,025
Add: Subscription of new shares in subsidiary companies
(ii)
200,000
Add: Acquisition of new subsidiary companies
(iii)
5,065,756
Less: Disposal of subsidiaries
(iv)
(3,936,329)
Less: Redemption of Redeemable Preference Shares by subsidiary company
(v)
(19,611)
Less: Effect of common control accounting
(vi)
Add: Subscription of new shares in subsidiary companies
(251,000)
2,081,933
6,088,873
(i)
The subscription of new shares in subsidiary companies is in relation to subscription of shares in Hong Leong
Bank Vietnam Berhad (HLBVN) in 2011.
(ii)
The subscription of new shares in subsidiary companies is in relation to a RM200 million rights issues by Hong
Leong Islamic Bank Berhad (HLISB).
(iii) Promino Sdn Bhd (Promino, formerly known as EON Bank Berhad), Promitol Sdn Bhd (formerly known as
EONCAP Islamic Bank Berhad), MIMB Investment Bank Berhad (MIMB) and related subsidiaries became
wholly-owned subsidiaries of the Bank with effect from 6 May 2011, pursuant to the acquisition of the assets
and liabilities of ECB. The acquisition was settled via cash consideration of RM5.06 billion.
(iv) Being disposal of Promino and MIMB during the financial year.
(v)
During the financial year, HLB Principal Investments (L) Limited had fully redeemed its Redeemable Preference
Shares.
(vi) Based on predessor/common control accounting, upon vesting of assets and liabilities of Promino to the Bank
on 1 July 2011, the Banks cost of investment in Promino is reclassified to goodwill.
112
Financial Section
Notes
(continued)

The subsidiary companies of the Bank are as follows:

Percentage (%)
of equity held
Name
2012
2011
100
100
(a)
HLB Nominees (Tempatan) Sdn Bhd
Agent and nominee for Malaysian clients
(b)
HLB Nominees (Asing) Sdn Bhd
100
100
Agent and nominee for foreign clients
(c)
HL Bank Nominees (Singapore) Pte Ltd+
100
100
Agent and nominee for clients
(d)
HLF Credit (Perak) Bhd and its subsidiary

companies:
100
100
Investment holding
(i)
Gensource Sdn Bhd and its subsidiary

company:
100
100
Investment holding
- Pelita Terang Sdn Bhd
100
100
Dormant
(ii)
WTB Corporation Sdn Bhd (WTB) and

its subsidiary companies:
100
100
Investment holding
- Wah Tat Nominees (Tempatan) Sdn Bhd
100
100
Agent and nominee for Malaysian clients
- Wah Tat Nominees (Asing) Sdn Bhd
100
100
Agent and nominee for foreign clients
(iii)
Chew Geok Lin Finance Sdn Bhd
100
100
Investment holding
(iv)
Hong Leong Leasing Sdn Bhd*
100
100
Investment holding
(v)
HL Leasing Sdn Bhd
100
100
Investment holding
(vi)
HLB Realty Sdn Bhd
100
100
Real property investment and

investment holding
(e)
HLB Trade Services (Hong Kong) Limited+
100
100
Ceased operations
(f)
Hong Leong Islamic Bank Berhad
100
100
Islamic Banking business and related

financial services
(g)
HLB Principal Investments (L) Limited and its

subsidiary company
100
100
Holding of or dealing in offshore

securities and investment holding
(i)
100
100
Ceased operations
Promino Sdn Bhd (formerly known as

EON Bank Berhad)
(h)
EFB Berhad
100
100
In members voluntary liquidation
(i)
EB Nominees (Tempatan) Sdn Bhd
100
100
Nominees services
(j)
EB Nominees (Asing) Sdn Bhd
100
100
Nominees services
(k)
EB Realty Sdn Bhd
100
100
Property investment
(l)
OBB Realty Sdn Bhd
100
100
Property investment
(m)
Oriental Nominee (Tempatan) Sdn Bhd
100
100
(n)
OFB Berhad
100
100
(o)
CFB Asa Berhad
100
100
(p)
CFB Nominees (Tempatan) Sdn Bhd
100
100
(q)
PFB Asa Berhad
100
100
(r)
Perkasa Nominees (Tempatan) Sdn Bhd
100
100
(s)
Prominic Berhad
100
100
To issue Subordinated Notes under a

Stapled Securities structure and to onlend the proceeds from the issuance
to Hong Leong Bank Berhad, the
issuer of the Capital Securities
113
Financial Section
Notes
(continued)

The subsidiary companies of the Bank are as follows: (continued)

Percentage (%)
of equity held
Name
2011
(t)
Hong Leong Bank Vietnam Limited+
100
100
Commercial banking business
(u)
Promitol Sdn Bhd (formerly known EONCap

Islamic Bank Berhad)
100
100
Ceased operations
(v)
Unincorporated trust for ESOS *
Special purpose vehicle for ESOS
(w)
Famehub Quest Sdn Bhd *
Special purpose vehicle
(x)
Famehub Capital Sdn Bhd *
(y)
Allegra Capital Investments Ltd
(z)
GoldPearl International Ltd
*
+

2012
Not audited by PricewaterhouseCoopers

Audited by member firms of PricewaterhouseCoopers International
Deemed subsidiary pursuant to IC 112 - Consolidation: Special Purpose Entities
Compartment subsidiary consolidated pursuant to IC 112 - Consolidation: Special Purpose Entities
All the subsidiary companies are incorporated in Malaysia with the exception of HL Bank Nominees (Singapore) Pte
Ltd, which is incorporated in Singapore, HLB Trade Services (Hong Kong) Limited which is incorporated in Hong Kong,
Allegra Capital Investments Ltd and GoldPearl International Ltd which are incorporated in the British Virgin Islands and
Hong Leong Bank Vietnam Limited which is incorporated in Vietnam.
13 Investment in jointly controlled entity

The Group
Unquoted shares outside Malaysia, at cost

Cumulative share of results
2012
RM000
2011
RM000
2012
RM000
2011
RM000
76,711
76,711
76,711
76,711
160
76,871
(a)
The Bank
(1,459)
75,252
76,711
76,711
The Groups share of income and expenses of the jointly controlled entity is as follows:
The Group
2012
RM000
2011
RM000
Revenue
6,749
2,188
Profit/(Loss) after taxation
1,619
(771)
114
Financial Section
Notes
(continued)
13 Investment in jointly controlled entity (continued)

(b)
The Groups share of assets and liabilities of the jointly controlled entity is as follows:

The Group
Total assets
Total liabilities
2012
RM000
2011
RM000
79,105
72,101
620
244

Details of the jointly controlled entity held by the Bank are as follows:

Name
Sichuan Jincheng Consumer Finance Limited Company
Percentage (%)
of equity held
2012
2011
49%
49%
Consumer finance
14 Investment in associated companies

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Unquoted shares outside Malaysia, at cost
946,505
946,505
946,505
946,505
Cumulative share of results, net of dividends

received
594,492
379,911
946,505
946,505
Cumulative share of changes in other

comprehensive income
(709)
1,540,288
(a)
(709)
1,325,707
The Groups share of income and expenses of the associate is as follows:

The Group
2012
RM000
2011
RM000
Revenue
853,975
444,164
Profit after taxation
216,960
210,992
115
Financial Section
Notes
(continued)
14 Investment in associated companies (continued)
(b)
The Groups share of assets and liabilities of the associate is as follows:

The Group
2012
RM000
2011
RM000
Total assets
20,033,349
15,021,769
Total liabilities
18,874,326
14,094,107
Details of the associates held by the Bank are as follows:
Name
Percentage (%)
of equity held
2012
2011
Bank of Chengdu Co., Ltd
20%
20%
Commercial banking
Community CSR Sdn Bhd
20%
Investment holding
116
Financial Section
Notes
(continued)
15
The Group
Note
Freehold
land
RM000
Buildings
on
freehold
land
RM000
Leasehold
land less
than 50
years
RM000
Leasehold
land
50 years
or more
RM000
Buildings
on
leasehold
land less
than 50
years
RM000
85,935
155,331
5,271
22,696
2,944
Buildings
on
leasehold
land
50 years
or more
RM000
Office
furniture,
fittings,
equipment
and
renovations
RM000
Computer
equipment
RM000
Motor
vehicles
RM000
Capital
work-inprogress
RM000
Total
RM000
110,101
379,074
566,484
13,349
33,159
1,374,344
2012
Cost
As at beginning
of the financial
year
- as previously
reported
- fair value
adjustments
on completion
of business
combination
accounting
55
As restated
12,030
38,257
106
45,042
29,604
799
125,838
97,965
193,588
5,271
22,696
2,944
110,207
424,116
596,088
14,148
33,159
1,500,182
50,120
81,811
27
19,124
151,082
Additions
Reclassification
4,150
Disposal of
subsidiary
Disposals/
Write off
Exchange
fluctuation
97,965
192,585
23,467
As at end of the
financial year
(5,153)
(3,856)
(2,349)
(1,689)
(347)
(4,085)
(5,105)
(4,547)
(8)
(9,660)
(14,437)
(14,463)
(2,895)
(36,948)
(285)
5,271
22,696
2,944
106,351
2,226
1,678
887
8,665
508
17
240
452,060
657,708
11,295
51,936
1,600,811
251,319
432,869
6,628
727,739
Accumulated
depreciation
As at beginning
of the financial
year
- fair value
adjustments
on completion
of business
combination
accounting
55
531
115
46,284
27,169
933
75,032
As restated
23,998
2,226
1,678
887
8,780
297,603
460,038
7,561
802,771
Charge for the

financial year
702
210
420
5,020
39,627
56,119
1,931
104,034
Reclassification
1,202
4,005
395
152
3,447
Disposal of
subsidiary
(4,074)
(2,894)
(8)
(6,976)
Disposals/
Write off
(13,150)
(14,218)
(1,673)
(29,515)
Exchange
fluctuation
(355)
(46)
As at end of the
financial year
21,919
2,436
2,098
892
15,002
Net book value

as at 30 June
2012
97,965
170,666
2,835
20,598
2,052
91,349
(2,307)
(474)
304
323,656
499,744
7,968
873,715
128,404
157,964
3,327
51,936
727,096
117
Financial Section
Notes
(continued)
15
Property and equipment (continued)
The Group
Note
Freehold
land
RM000
Buildings
on
freehold
land
RM000
Leasehold
land less
than 50
years
RM000
Leasehold
land
50 years
or more
RM000
Buildings
on
leasehold
land less
than 50
years
RM000
Buildings
on
leasehold
land
50 years
or more
RM000
Office
furniture,
fittings,
equipment
and
renovations
RM000
Computer
equipment
RM000
Motor
vehicles
RM000
Capital
work-inprogress
RM000
Total
RM000
45,327
31,354
5,271
12,335
2,683
95,374
212,924
350,595
8,503
26,046
790,412
915
261
9,027
138,023
192,899
4,302
510,306
125,838
2011
Cost
As at beginning
of the financial
year
Acquisition of
assets and
liabilites of ECB
55
40,608
124,271
Fair value
adjustments
on completion
of business
combination
accounting
55
12,030
38,257
106
45,042
29,604
799
Additions
9,500
5,700
38,963
26,171
1,517
7,113
Disposals/Write off
(10,499)
(2,949)
Exchange
fluctuation
(337)
(232)
97,965
193,588
5,271
22,696
2,944
110,207
424,116
6,288
2,181
1,286
775
4,809
As at end of the
financial year
(294)
(54)
(1,015)
88,964
(14,811)
42
(527)
596,088
14,148
33,159
1,500,182
160,550
262,910
4,629
443,428
Accumulated
depreciation
As at beginning
of the financial
year
Acquisition of
assets and
liabilites of ECB
55
16,621
202
75
1,841
78,769
138,589
1,159
237,256
Fair value
adjustments
on completion
of business
combination
accounting
55
933
75,032
1,817
60,272
(1,000)
(12,914)
23
(158)
531
115
46,284
27,169
Charge for the

financial year
743
45
190
37
2,015
20,977
34,448
Disposals/Write off
(40)
(8,992)
(2,882)
Exchange
fluctuation
15
As at end of the
financial year
24,143
2,226
1,678
887
8,780
297,603
460,038
7,561
802,916
Net book value

as at 30 June
2011
97,965
169,445
3,045
21,018
2,057
101,427
126,513
136,050
6,587
33,159
697,266
(196)
118
Financial Section
Notes
(continued)
15
Freehold
land
RM000
Buildings
on
freehold
land
RM000
Leasehold
land less
than 50
years
RM000
Leasehold
land
50 years
or more
RM000
Buildings
on
leasehold
land less
than 50
years
RM000
As at beginning of the
financial year
35,752
28,603
4,011
20,730
2,674
97,230
231,014
361,802
8,826
Vesting of assets and

liabilities of Promino
The Bank
Buildings
on
leasehold
land
50 years
or more
RM000
Office
furniture,
fittings,
equipment
and
renovations
RM000
Computer
equipment
RM000
Motor
vehicles
RM000
Capital
work-inprogress
RM000
Total
RM000
32,693
823,335
2012
Cost
52,638
162,203
915
9,133
174,408
218,838
3,734
621,869
Additions
48,242
80,596
27
18,790
147,655
Reclassification
4,150
(2,241)
(1,630)
(3,571)
Disposals/Write off
(5,153)
(13,761)
(14,326)
(35,557)
Exchange fluctuation
89
312
17
418
88,390
189,803
4,011
21,645
2,674
102,507
437,751
645,592
10,293
51,483
1,554,149
As at beginning of the
financial year
5,544
967
1,277
812
4,769
166,784
288,292
5,445
473,890

17,359
206
1,983
119,920
164,142
1,445
305,055
Charge for the

financial year
651
210
410
4,942
37,096
54,304
1,674
99,287
Reclassification
(2,307)
1,202
4,005
359
152
Disposals/Write-off
(474)
62
250
317
As at end of the
financial year
20,773
1,177
1,893
812
12,896
315,041
493,181
7,358
853,131
88,390
169,030
2,834
19,752
1,862
89,611
122,710
152,411
2,935
51,483
701,018
As at end of the
financial year
(3,856)
(2,317)
Accumulated
depreciation
Net book value as at

30 June 2012
(12,826)
(14,166)
(1,363)
3,411
(28,829)
119
Financial Section
Notes
(continued)
15
The Bank
Freehold
land
RM000
Buildings
on
freehold
land
RM000
Leasehold
land less
than 50
years
RM000
Leasehold
land
50 years
or more
RM000
Buildings
on
leasehold
land less
than 50
years
RM000
Buildings
on
leasehold
land
50 years
or more
RM000
Office
furniture,
fittings,
equipment
and
renovations
RM000
Computer
equipment
RM000
Motor
vehicles
RM000
Capital
work-inprogress
RM000
Total
RM000
757,636
2011
Cost
As at beginning of
the financial year
35,752
28,897
4,011
11,284
2,674
91,530
206,421
343,581
7,664
25,822
Additions
9,500
5,700
33,463
20,647
1,516
6,871
Disposals/Write off
(9,112)
(2,896)
242
470
42
754
35,752
28,603
4,011
20,730
2,674
97,230
231,014
361,802
8,826
32,693
823,335
As at beginning of
the financial year
5,403
922
1,099
776
2,859
156,739
261,123
4,278
433,199
Charge for the

financial year
181
45
178
36
1,910
17,659
29,936
1,525
51,470
Disposals/Write off
(40)
(7,763)
(2,864)
(11,048)
149
97
23
269
As at end of the
financial year
5,544
967
1,277
812
4,769
166,784
288,292
5,445
473,890
35,752
23,059
3,044
19,453
1,862
92,461
64,230
73,510
3,381
32,693
349,445
As at end of the
financial year
(294)
(54)
(396)
77,697
(12,752)
Accumulated depreciation
Net book value as at 30

June 2011
(381)
120
Financial Section
Notes
(continued)
16 Intangible assets
Core
deposits
RM000
Customer
relationships
RM000
Computer
software
RM000
Total
RM000
- As previously reported
278,387
278,387
- Prior year adjustments
152,434
127,426
2,241
282,101
152,434
127,426
280,628
560,488
Additions
142,594
142,594
(1,619)
(1,619)
The Group
2012
Cost or valuation
As at 1 July 2011
As restated
Written off
(119)
(119)
119
119
As at 30 June 2012
152,434
127,426
421,603
701,463
Amortisation and impairment

As at 1 July 2011
- As previously reported
172,021
172,021
- Prior year adjustments
3,629
2,124
3,292
9,045
3,629
2,124
175,313
181,066
21,777
12,742
40,095
74,614
As restated
Amortisation during the financial year
(650)
(650)
Written off
(119)
(119)
55
55
As at 30 June 2012
25,406
14,866
214,694
254,966
127,028
112,560
206,909
446,497
Net book value as at 30 June 2012
121
Financial Section
Notes
(continued)
16 Intangible assets (continued)
Core
deposits
RM000
Customer
relationships
RM000
Computer
software
RM000
Total
RM000
As at 1 July 2010
158,582
158,582
86,733
86,733
152,434
127,426
2,242
282,102
Additions
33,512
33,512
As at 30 June 2011
152,434
127,426
280,628
560,488
As at 1 July 2010
109,172
109,172
42,826
42,826
The Group
2011
Cost or valuation

of business combination accounting
(441)
(441)

3,292
3,292
3,629
2,124
20,009
25,762
14
14
As at 30 June 2011
3,629
2,124
175,313
181,066
148,805
125,302
105,315
379,422
The Bank
2012
Core
deposits
RM000
Customer
relationships
RM000
Computer
software
RM000
Total
RM000
Cost or valuation
As at 1 July 2011
185,705
185,705
152,434
127,426
88,265
368,125
Additions
135,988
135,988
Written off
152,434
127,426
409,839
689,699
126,169
126,169
47,417
47,417
25,406
14,866
38,110
78,382
As at 30 June 2012
(119)
(119)

As at 1 July 2011
Written off
As at 30 June 2012
25,406
14,866
211,577
(119)
251,849
(119)
127,028
112,560
198,262
437,850
122
Financial Section
Notes
(continued)
16 Intangible assets (continued)
The Bank
2011
Computer
software
RM000
Cost or valuation
As at 1 July 2010
Addition
As at 30 June 2011
155,853
29,852
185,705

As at 1 July 2010
As at 30 June 2011

108,918
17,251
126,169
59,536
The Group recognised RM322,717,000 (includes computer software) intangible assets in relation to the acquisition
of the banking business and related assets and liabilities of ECB. The intangible assets were in the form of business
banking customer relationships, core deposits and computer software.

Customer relationships acquired in a business combination have value when they represent an identifiable and
predictable source of future cash flows to the combined business.

The valuation of business banking customer relationships was determined using an income approach, specifically
the multi-period excess earnings method (MEEM). This was done by discounting forecasted incremental customer
revenues attributable solely to EON Banking Groups existing business banking customer.

Core deposits comprising savings and current accounts are low cost source of funds. The valuation of core deposits
was derived using an income approach, specifically the cost savings method under the incremental cash flow method.
This was done by discounting forecast net interest savings from core deposits.

The discount rate used in discounting incremental cashflows was based on the risk associated with the identified
intangible assets. The remaining amortisation period of core deposits and customer relationships are 6 to 9 years,
respectively.
123
Financial Section
Notes
(continued)
17 Deferred taxation

The movements in deferred tax assets and liabilities during the financial year are as follows:

Note
Loans,
advances
and
financing
RM000
Property
and
equipment
RM000
Financial
instruments
availablefor-sale
RM000
Intangible
assets
RM000
Other
temporary
differences
RM000
Total
RM000
74,054
325,935
(262,028)
Deferred tax assets/(liabilities)

The Group
2012
As at beginning of
the financial year
- prior year adjustments
56
As restated
Credited/(Charged) to
statement of income
38
Transferred to equity
341,704
(48,096)
(41,727)
(128,664)
(12,402)
(13,514)
(68,527)
(38,921)
213,040
(60,498)
(55,241)
(68,527)
35,133
(170,241)
(45,700)
As at end of the
financial year
(21,317)
63,907
8,630
54,508
(152,803)
(21,317)
89,641
(110,213)
42,799
(106,198)
(76,558)
(59,897)
144,259
(15,206)
(32,429)
16,953
113,577
81,402
210,836
(38,921)
(263,503)
2011
As at beginning of
the financial year
Acquisition of assets
and liabilities of ECB
55
167,619
(30,536)
(7,649)
Fair value adjustments on

completion of business
55
(128,664)
(12,439)
(13,514)
statement of income
38
As at end of the
financial year
29,826
213,040
(2,317)
(60,498)
(1,649)
(55,241)
(69,965)
1,438
(68,527)
(24,301)
35,133
4,646
(1,649)
63,907
124
Financial Section
Notes
(continued)
17 Deferred taxation (continued)

The movements in deferred tax assets and liabilities during the financial year are as follows (continued):

Note
Loans,
advances
and
financing
RM000
Property
and
equipment
RM000
Financial
instruments
availablefor-sale
RM000
Intangible
assets
RM000
Other
temporary
differences
RM000
Total
RM000
146,777
(16,837)
(35,875)
8,216
102,281
(18,015)
(69,965)
19,432
(87,226)
Deferred tax assets/(liabilities)

The Bank
2012
As at beginning of
the financial year
55
23,455
(42,133)
statement of income
38
(132,672)
(44,220)
10,068
59,662
(107,162)
(22,041)
(22,041)
37,560
(103,190)
(75,931)
(59,897)
87,310
(114,148)
127,675
(14,357)
(32,220)
14,728
95,826
19,102
(2,480)
(6,512)
10,110
(3,655)
(3,655)
146,777
(16,837)
(35,875)
8,216
102,281
As at end of the
financial year
2011
As at beginning of
the financial year
statement of income
38
As at end of the
financial year
18 Deposits from customers
The Group
Fixed deposits
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
74,738,523
68,489,506
64,442,292
38,749,415
5,828,928
5,584,465
6,437,718
4,535,391
80,567,451
74,073,971
70,880,010
43,284,806
Demand deposits
14,675,678
14,944,455
12,298,456
8,576,091
Savings deposits
14,815,602
12,515,496
12,733,750
7,665,531
Short-term corporate placements
12,641,446
12,916,173
12,641,446
5,991,218
Others
395,466
406,448
386,033
406,448
123,095,643
114,856,543
108,939,695
65,924,094
125
Financial Section
Notes
(continued)
18 Deposits from customers (continued)
(i)
The maturity structure of fixed deposits and negotiable instruments of deposit are as follows:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
- six months
60,720,326
56,884,400
52,158,890
32,498,154
- six months to one year
14,405,933
12,967,434
13,307,454
8,022,724
Due within:
- one year to five years
(ii)
5,441,192
4,222,137
5,413,666
2,763,928
80,567,451
74,073,971
70,880,010
43,284,806
The deposits are sourced from the following customers:

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
3,861,648
5,571,964
2,663,604
998,891
Business enterprises
57,508,742
49,165,910
48,251,587
28,760,256
Individuals
59,427,462
51,478,647
55,981,810
34,896,549
Government and statutory bodies
Others
2,297,791
8,640,022
2,042,694
1,268,398
123,095,643
114,856,543
108,939,695
65,924,094
19 Deposits and placements of banks and other financial institutions

The Group
Licensed banks
Licensed investment banks
Licensed Islamic banks
Bank Negara Malaysia
Other financial institutions
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
7,813,440
7,308,864
7,422,996
5,820,144
485,723
152,762
404,343
1,441,508
581,968
1,897,375
50,025
756,692
50,025
9,790,696
10,697,661
7,877,364
5,820,144
126
Financial Section
Notes
(continued)
20 Derivative financial instruments
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
621,646
345,011
621,646
331,024
Derivatives at fair value through profit or loss:

- interest rate swaps
- cross currency swaps
- foreign currency forwards
- foreign currency options
- futures
- equity options
- swaption
Total derivative financial instruments assets
94,910
274,024
167,331
306,080
171,919
152,165
171,830
146,710
26,366
12,972
26,366
12,972
142
232
142
232
796
1,434
796
1,434
39,571
4,324
39,571
4,324
955,350
790,162
1,027,682
802,776
(650,110)
(290,948)
(650,110)
(273,697)
Derivatives at fair value through profit or loss:

- cross currency swaps
- foreign currency forwards
- foreign currency options
- equity options
- futures
- swaption
(67,335)
(178,096)
(140,250)
(214,669)
(229,629)
(176,127)
(229,629)
(163,066)
(26,842)
(13,943)
(26,842)
(13,943)
(796)
(1,434)
(796)
(1,434)
(1,437)
(2,589)
(1,437)
(2,589)
(40,297)
(3,569)
(40,297)
(3,569)
Derivatives designated as fair value hedge:

Total derivative financial instruments liabilities
(52,781)
(1,069,227)
(666,706)
(36,395)
(1,125,756)
(672,967)
127
Financial Section
Notes
(continued)
21
Other liabilities
The Group
Zakat
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
200
66
Post employment benefits obligation

- defined contribution plan
Loan advance payment
Amount due to Cagamas Berhad
Amount due to subsidiary companies
Profit equalisation reserve
3,079
3,102
3,079
3,102
1,444,836
1,122,560
1,244,798
1,014,815
179,719
187,217
179,719
219,443
28,626
2,298
312
194,688
312
194,687
Cheque clearing
114,253
407,480
91,029
41,548
Treasury related payable
199,745
135,701
199,745
135,701
Sundry creditors & accruals
495,649
336,419
458,182
198,237
Provision for bonus and staff related expenses
124,500
56,384
119,508
54,719
Treasury clearing
Others
177,395
488,217
148,603
241,063
2,739,688
2,934,132
2,664,418
1,912,498
22 Senior bonds
The Group and The Bank
Note
2012
RM000
2011
RM000
USD 300 million senior bonds, at par
(a)
916,350
916,350
USD 300 million senior bonds, at par
(b)
919,200
Foreign exchange translations
69,750
1,905,300
Add: Interest payable

Less: Unamortised discounts
(9,750)
906,600
16,274
9,822
1,921,574
916,422
(13,781)
1,907,793
(5,612)
910,810
(a)
On 17 March 2011, the Bank issued USD300 million in aggregate principal amount of Senior Bonds (the
Bonds), which will mature in 2016. The Bonds bear interest at the rate of 3.75% which is payable semiannually. The Bonds were issued at a price of 99.761 per cent of the principal amount of the Bonds.
The Bonds will constitute direct, general, unsubordinated and unsecured obligations of the Bank which will at
all times rank parri passu among themselves and at least parri passu with all other present and future unsecured
obligations of the Bank.
128
Financial Section
Notes
(continued)
22 Senior bonds (continued)
(b)
On 20 April, 2012, HLB announced that it has completed its inaugural US dollar senior unsecured notes issuance
of USD300 million (the Senior Notes) under its Euro Medium Term Note Programme of up to USD1.5 billion (or
its equivalent in other currencies) in nominal value (the Programme) which was established on 9 April 2012.
The Senior Notes will have a tenor of five years, maturing on 19 April 2017. The Senior Notes will pay a coupon
of 3.125% per annum which is equivalent to a yield to investors of 3.269%.
23 Tier 2 subordinated bonds

The Group
RM700 million Tier 2 subordinated debt,

at par
Note
2012
RM000
2011
RM000
2012
RM000
2011
RM000
(a)
700,000
700,000
700,000
700,000

RM1.0 billion Tier 2 subordinated debt, at

par
(b)
(c)

Add: Fair value adjustments on completion

13,115
13,208
13,115
713,115
713,208
713,115
(d)
(2,792)
(1,603)
(2,792)
711,605
710,323
711,605
710,323
1,000,000
1,000,000
1,000,000
1,000,000
6,555
6,793
6,555
6,793
1,006,555
1,006,793
1,006,555
1,006,793
(2,436)
RM1.5 billion Tier 2 subordinated debt,

at par
13,208
713,208
(1,603)
Subordinated medium term notes, at par
The Bank
(3,856)
(2,436)
(3,856)
1,004,119
1,002,937
1,004,119
1,002,937
1,160,000
1,160,000
1,160,000
9,267
8,983
9,267
1,169,267
1,168,983
1,169,267
(14,214)
(23,750)
(14,822)
18,000
47,085
18,000
1,173,053
1,192,318
1,172,445
1,500,000
1,500,000
1,664
1,664
1,501,664
1,501,664
(582)
(582)
1,501,082
1,501,082
4,389,859
2,905,578
4,389,251
1,713,260
129
Financial Section
Notes
(continued)
23 Tier 2 subordinated bonds (continued)
(a)
On 10 August 2010, the Bank had completed the first issuance of RM700 million nominal value of Tier 2
Subordinated Debt (Sub Debt) out of its RM1.7 billion Tier 2 Subordinated Notes Programme. The RM700
million Sub Debt will mature in 2020 and is callable at the end of year 5 and on each subsequent coupon
payment dates thereafter subject to approval of BNM. The Sub Debt which bears interest of 4.85% per annum
is payable semi-annually in arrears.
The Sub Debt constitute unsecured liabilities of the Bank, and is subordinated in right of payment to the deposit
liabilities and all other liabilities of the Bank in accordance with the terms and conditions of the issue and qualify
as Tier 2 capital for the purpose of determining the capital adequacy ratio of the Group and the Bank.
(b)
On 5 May 2011, HLB issued the remaining RM1.0 billion nominal value of Sub Debt which will mature in 2021
and is callable at the end of year 5 and on each subsequent coupon payment dates thereafter subject to approval
of BNM. The second issuance of Sub Debt bears interest at the rate of 4.35% per annum and is payable semiannually in arrears.
The Sub Debt constitute unsecured liabilities of the Bank, and is subordinated in right of payment to the deposit
(c)
On 27 February 2009, Promino, a wholly owned subsidiary of the Bank, issued the first tranche of RM410.0 million
nominal value of the 10 non-callable 5 years Subordinated Medium Term Notes (MTN) callable on 27 February
2014 (and thereafter) and due on 27 February 2019 under the RM2.0 billion Subordinated MTN Programme. The
coupon rate of the Subordinated MTN is 5.75% per annum, which is payable semi-annually in arrears from the
date of the issue. Should Promino decide not to exercise its call option on the fifth (5) year from the issue date,
the coupon rate will be revised to be equivalent to 7.75% or the then prevailing 5 years RM swap rate plus 3.70%
per annum, whichever is higher, from the beginning of the sixth (6) year to the final maturity date.
Subsequently, on 2 December 2009, Promino issued a second tranche of RM250.0 million nominal value of
the 10 non-callable 5 years Subordinated MTN callable on 2 December 2014 (and thereafter) and due on 2
December 2019 under the RM2.0 billion Subordinated MTN Programme. The coupon rate of this second tranche
of the Subordinated MTN is 5.75% per annum, which is payable semi-annually in arrears from the date of the
issue. Should EBB decide not to exercise its call option on the fifth (5) year from the issue date, the coupon rate
of this second tranche will be revised to be equivalent to 7.75% or the then prevailing 5 years RM swap rate
plus 3.70% per annum, whichever is higher, from the beginning of the sixth (6) year to the final maturity date;
similar to the step-up rates in the first tranche.
Subsequently, on 30 December 2010, Promino issued a third tranche of RM500.0 million nominal value of
the 10 non-callable 5 years Subordinated MTN callable on 30 December 2015 (and at each anniversary date
thereafter) and due on 30 December 2020 under the RM2.0 billion Subordinated MTN Programme. The coupon
rate of this third tranche of the Subordinated MTN is 4.75% per annum, which is payable semi-annually in
arrears from the date of the issue. Should Promino decide not to exercise its call option on the fifth (5) year
from the issue date, or at each anniversary date thereafter, the coupon rate of this third tranche will be remain
at 4.75% per annum, from the beginning of the sixth (6) year to the final maturity date.
On 1 July 2011, the above Subordinated MTN was vested to HLB. The above tranches of Subordinated MTNs
constitute unsecured liabilities of HLB and are subordinated to all deposit liabilities and all other liabilities except those
liabilities, which by their terms, rank equally in rights of payment with the Subordinated MTNs. The Subordinated
MTNs qualify as Tier 2 capital for the purpose of determining the capital adequacy ratio of the Group and the Bank.
(d)
On 22 June 2012, the Bank had completed the issuance of RM1.5 billion nominal value of Tier 2 Subordinated
Notes (Sub Notes). The RM1.5 billion Sub Notes will mature in 2024 and are callable on any interest payment
date falling on or after the 7th anniversary of the issue date subject to approval of BNM. The Sub Notes which
bears interest of 4.50% per annum is payable semi-annually in arrears.
The Sub Notes constitute unsecured liabilities of the Bank, and is subordinated in right of payment to the deposit
130
Financial Section
Notes
(continued)
24 Tier 2 capital cumulative subordinated loan
2012
RM000
2011
RM000
RM2.3 billion Tier 2 capital cumulative subordinated loan
2,300,000
14,080
2,314,080
On 6 May 2011, Hong Leong Financial Group Berhad (HLFG), the holding company of HLB provided a Tier 2 Capital
Cumulative Subordinated Loan Facility for the amount of up to RM2.3 billion (the Facility) to HLB.
The Facility provided by HLFG, is a bridging loan to assist HLB with its Risk Weighted Capital Adequacy Ratio pending
the completion of a proposed rights issue exercise to be undertaken by HLB (Proposed HLB Rights Issue).
On 18 October 2011, HLB had fully repaid the RM2.3 billion Tier 2 capital cumulative subordinated loan extended by
HLFG following the completion of HLBs Rights Issue.
25 Non-innovative Tier 1 stapled securites

RM1.4 billion Non-Innovative Tier 1 stapled securities, at par

2012
RM000
2011
RM000
1,400,000
1,400,000
10,653
11,041
1,410,653
1,411,041
(3,370)
1,407,283
(5,335)
1,405,706
On 5 May 2011, the Bank had completed its issuance of Non-Innovative Tier 1 Stapled Securities (NIT-1 Stapled
Securities) of RM1.4 billion. The NIT-1 Stapled Securities which is perpetual in nature and callable at the end of year
5 and on each coupon payment date, pays a semi annual coupon of 5.05% per annum. The call option shall be subject
to the approval of BNM.
The NIT-1 Stapled Securities constitute unsecured liabilities of the Bank, and is subordinated in right of payment to
the deposit liabilities and all other liabilities of the Bank in accordance with the terms and conditions of the issue and
qualify as Tier 1 capital for the purpose of determining the capital adequacy ratio of the Group and the Bank.
131
Financial Section
Notes
(continued)
26 Innovative Tier 1 capital securities
The Group
RM500 million Innovative Tier 1 capital

securities, at par
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
500,000
500,000
500,000
12,545
12,658
12,545
512,545
512,658
512,545
(9,708)
(9,589)
(11,174)
Add: Fair value adjustments on completion of

71,744
92,651
71,744
574,581
595,720
573,115
On 10 September 2009, Promino issued the first tranche of Innovative Tier 1 Capital Securities (IT-1 Capital
Securities) amounting to RM500 million in nominal value, from its RM1.0 billion IT-1 Capital Securities Programme.
The IT-1 Capital Securities is structured in accordance with the Risk-Weighted Capital Adequacy Framework (General
Requirements and Capital Components) issued by BNM.
The RM500 million IT-1 Capital Securities has a tenor of 30 years and Promino has the option to redeem the RM500
million IT-1 Capital Securities at the 10th anniversary, subject to BNM approval. The RM500 million IT-1 Capital
Securities has a coupon rate of 8.25% per annum, payable semi-annually. In the event the IT-1 Capital Securities is
not redeemed at the 10th anniversary (the First Optional Redemption Date), the coupon rate will be revised to 9.25%
per annum from the 11th year to the final maturity.
On 1 July 2011, the above IT-Capital Securities was vested to HLB. The IT-1 Capital Securities constitute unsecured and
subordinated obligations of HLB and are subordinated to all deposit liabilities and all other liabilities except those liabilities
which rank equally in, and/or junior to, the rights of payment of the IT-1 Capital Securities. The IT-1 Capital Securities
qualify as Tier 1 capital for the purpose of computing the capital adequacy ratio of the Group and the Bank.
27 Share capital
Note
2012
RM000
2011
RM000
3,000,000
3,000,000
1,580,107
1,580,107
Authorised:
3,000,000,000 shares of RM1.00 each
Issued and fully paid:
Ordinary shares of RM1.00 each
Add: New ordinary shares issued during the financial year
(i)
(i)
299,802
1,879,909
1,580,107
During the financial year ended 30 June 2012, the Bank increased its issued and paid-up capital from
1,580,107,034 to 1,879,909,100 via issuance of 299,802,066 new ordinary shares of RM1.00 each on the
basis of 1 Rights Share for every 5 existing shares held by HLBBs entitled shareholders on 21 September 2011
at an issue price of RM8.65 per rights share.
132
Financial Section
Notes
(continued)
28 Reserves
The Group
2012
RM000
2011
RM000
2012
RM000
2011
RM000
(a)
5,080,264
3,985,874
3,988,722
3,212,562
2,832,383
539,664
2,832,383
539,664
(b)
2,149,801
1,936,654
1,879,909
1,741,612
Note
Retained profits
Share premium
Statutory reserve
The Bank
Share options reserve
(c)
22,483
21,121
22,483
21,121
Fair value reserve
(d)
183,998
102,211
184,783
107,652
Regulatory reserve (HLBVN)
(f)
Exchange fluctuation reserve
(e)
6,045
(20,780)
726
(26,848)
25,114
36,152
5,173,930
2,573,528
4,944,672
2,446,201
10,254,194
6,559,402
8,933,394
5,658,763
(a)
Under the single-tier tax system which came into effect from the year of assessment 2008, companies are not
required to have tax credits under Section 108 of the Income Tax Act 1967 for dividend payment purposes.
Dividends paid under this system are tax exempt in the hands of shareholders.
However, companies who have not utilised fully their Section 108 credits balances up to 31 December 2007
may continue to pay franked dividends until the Section 108 credits are exhausted or 31 December 2013
whichever is earlier unless they opt to disregard the Section 108 credits under the special transitional provisions
of the Finance Act 2007 and pay single-tier dividends. As at 30 June 2012 and 30 June 2011, subject to
agreement with the tax authorities, the Bank has sufficient Section 108 tax credits and tax exempt income to
pay in full all of the retained profits of the Bank as franked and exempt dividends.
(b)
The statutory reserve is maintained in compliance with Section 36 of the Banking and Financial Institutions Act,
1989 and is not distributable as cash dividend.
(c)
The share options reserve arose from share options granted to eligible executives of the Bank pursuant to the
ESOS. Terms of the ESOS are disclosed in Note 52 to the financial statements.
133
Financial Section
Notes
(continued)
28 Reserves (continued)
(d) Movement of the fair value reserve is as follows:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
102,211
96,150
107,652
96,657
Net gain from change in fair value
129,261
20,942
123,782
21,675
(2,477)
Adjustment for common control

Reclassification adjustment to net profit on
disposal and impairment
(25,448)
(12,523)
(22,133)
(7,025)
Deferred taxation
(21,317)
(1,649)
(22,041)
(3,655)
(709)
(709)
Share of fair value reserve of associated

company
Net change in fair value reserve
81,787
6,061
77,131
10,995
183,998
102,211
184,783
107,652
(e)
Currency translation differences arising from translation of the Banks foreign branches are shown under
exchange fluctuation reserve.
(f)
The regulatory reserve is maintained by the Groups banking subsidiary company in Vietnam in line with the
requirements of the State Bank of Vietnam.
29 Treasury shares
The Group
Note
2012
RM000
Purchase of own shares pursuant to

Section 67A, Companies Act 1965
(a)
Treasury shares for ESOS scheme
(b)
The Bank
2011
RM000
2012
RM000
2011
RM000
431,787
431,765
431,787
431,765
283,005
239,979
283,005
239,979
714,792
671,744
714,792
671,744
(a)
Purchase of own shares pursuant to Section 67A of the Companies Act, 1965
The shareholders of the Bank, via an ordinary resolution passed at the Extraordinary General Meeting held on
8 October 2008, had approved the Banks plan to purchase its own shares up to 10% of existing total issued
and paid-up share capital. The Directors of the Bank are committed to enhance the value of the Bank to its
shareholders and believe that the share buyback plan can be applied in the best interests of the Bank and its
shareholders.
During the financial year, the Bank bought back 2,000 (2011: 2,000) of its issued share capital, at an average
price of RM10.59 per share (2011: RM9.37), from the open market. The total consideration paid for the share
buyback of its own shares, including transaction costs, was RM21,178 (2011: RM18,736) and was financed
by internally generated funds. As at 30 June 2012, the total number of shares bought was 81,098,700 (2011:
81,096,700) and the shares held were accounted as treasury shares in accordance with the provisions of
Section 67A of the Companies Act, 1965.
134
Financial Section
Notes
(continued)
29 Treasury shares (continued)
(a)
Purchase of own shares pursuant to Section 67A of the Companies Act, 1965 (continued)
There was no resale or cancellation of treasury shares during the financial year. The adjusted number of issued
and fully paid-up shares with voting rights as at 30 June 2012 after deducting treasury shares purchased
is 1,798,810,400 shares (2011: 1,499,010,334). Treasury shares have no rights to vote, dividends and
participation in other distribution.
(b) Treasury shares for ESOS scheme

In 2006, the Bank entered into a Trust for ESOS purposes established via the signing of a Trust Deed on 23
January 2006 with an appointed Trustee in conjunction with the establishment of an Executive Share Option
Scheme (ESOS). The trustee will be entitled from time to time to accept financial assistance from the Bank
upon such terms and conditions as the Bank and the trustee may agree to purchase the Banks shares from the
open market for the purposes of this trust.
FRS 132 Financial Instruments: Presentation requires that if an entity reacquires its own equity instruments,
those instruments shall be deducted from equity and are not recognised as a financial asset regardless of the
reason for which they are reacquired.
In accordance with FRS 132, the shares purchased for the benefit of the ESOS holders are recorded as Treasury
Shares for ESOS in the equity on the statement of financial position. During the financial year, there were
no shares bought back by the appointed Trustee. As at 30 June 2012, the total number of shares held was
48,000,196 of which 8,510,088 is from Rights Issue during the financial year ended 30 June 2012 (2011:
44,892,200).
30 Interest income
The Group

Money at call and deposit placements with
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
3,933,598
2,122,425
3,917,669
1,823,502
578,584
527,889
554,477
469,291
10,433
2,011
10,433
2,011
508,373
291,669
509,923
289,609
227,118
102,096
236,865
92,154
181,232
207,618
216,442
228,189
Others
1,714
1,276
48,023
47,773
5,441,052
3,254,984
5,493,832
2,952,529
358,703
211,148
401,628
232,849
17,278
24,900
17,278
24,900
Of which:
Accretion of discount less
amortisation of premium
Interest income earned on impaired loans,
135
Financial Section
Notes
(continued)
31 Interest expense
The Group
2012
RM000

Deposits from other customers
2011
RM000
The Bank
2012
RM000
2011
RM000
100,234
76,746
115,861
66,414
2,452,541
1,434,833
2,534,118
1,356,087
Senior bonds
42,756
10,108
42,756
10,108
109,936
47,136
120,265
42,280
28,503
14,080
28,503
14,080
Non-innovative Tier 1 stapled securites
72,858
11,412
72,858
11,412
21,198
2,630
17,636
Others
11,210
2,113
10,255
812
2,839,236
1,599,058
2,942,252
1,501,193
32 Income from Islamic Banking business

The Group
Income derived from investment of depositors funds and others

Income derived from investment of shareholders funds
Profit equalisation reserve
Income attributable to depositors
2012
RM000
2011
RM000
861,386
441,012
74,119
44,488
2,298
2,938
(490,205)
(261,348)
447,598
227,090
1,092
1,092
Of which:
Financing income earned on impaired financing and advances
136
Financial Section
Notes
(continued)
33 Non-interest income
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
118,645
75,367
118,295
72,605
Service charges and fees
51,697
34,822
53,600
28,814
Guarantee fees
17,696
7,739
17,648
5,765
Credit card related fees
268,867
180,863
268,867
150,687
Corporate advisory fees
5,494
1,460
1,461
216
Commitment fees
33,148
16,322
33,178
13,498
Fee on loans, advances and financing
74,145
52,028
74,145
52,028
Fee income
Commissions
Brokerage
6,745
5,623
20,080
16,573
20,062
21,195
596,517
390,797
587,256
344,808
- Financial assets held-for-trading
28,085
27,490
28,057
26,762
- Derivatives financial instruments
83,151
15,112
83,151
15,112
- Financial investments available-for-sale
42,815
10,214
39,500
7,025
1,839
2,109
1,839
2,109
- Subsidiary companies
46,000
32,000
- Associated company
2,379
57,436
22,942
23,766
22,942
23,473
12,736
(15,763)
12,736
(12,048)
Other fee income

Net income from securities
Net realised gain from sale/redemption of
securities portfolio:
- Financial investments held-to-maturity

Dividend income from:

Net unrealised gain/(loss) on revaluation of:
- Derivatives financial instruments
Net realised loss on fair value changes arising
from fair value hedges and amortisation of
fair value changes arising from terminated fair
value hedges
Net unrealised gain on fair value changes arising
from fair value hedges
(114,803)
(28,336)
89,526
(30,352)
(114,803)
(22,484)
89,526
(15,356)
8,774
27,805
8,774
22,666
57,203
149,907
108,091
248,705
163,328
107,140
152,384
79,306
4,301
881
6,048
767
821
448
820
326
Other income
Foreign exchange gain
Rental income
Gain on disposal of property and equipment
Other non-operating income
22,109
19,522
27,600
15,556
190,559
127,991
186,852
95,955
844,279
668,695
882,199
689,468
137
Financial Section
Notes
(continued)
34
Overhead expenses
The Group
2012
RM000
Personnel costs
The Bank
2011
RM000
2012
RM000
2011
RM000
1,110,613
601,892
946,515
449,963
Establishment costs
431,372
264,127
394,345
211,321
Marketing expenses
116,984
88,881
112,401
80,437
Administration and general expenses
265,927
256,636
259,104
224,823
1,924,896
1,211,536
1,712,365
966,544
The overhead expenses of the Bank are net of shared services costs charged to HLISB.

(i) Personnel costs comprise the followings:
The Group
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Salaries, bonus and allowances
900,046
541,706
764,098
407,186
Voluntary Separation Scheme (VSS)
113,651
100,217
Medical expenses
28,930
14,736
23,710
10,103
Training and convention expenses
26,356
15,263
23,874
11,691
Staff welfare
22,491
13,446
15,120
7,940
Other employees benefits
(ii)
The Bank
19,139
16,741
19,496
13,043
1,110,613
601,892
946,515
449,963
Establishment costs comprise the followings:

The Group
Depreciation of property and equipment
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
104,034
60,272
99,287
51,470
74,614
25,762
78,382
17,251
Rental of premises
71,926
48,628
61,305
39,769
Information technology expenses
90,488
73,460
84,217
59,553
Security services
29,463
18,438
26,270
14,142
Electricity, water and sewerage
23,924
13,584
21,840
10,402
Hire of plant and machinery
13,511
8,750
12,992
8,751
Others
23,412
15,233
10,052
9,983
431,372
264,127
394,345
211,321
138
Financial Section
Notes
(continued)
34
Overhead expenses (continued)

(iii) Marketing expenses comprise the followings:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
37,405
33,644
34,834
22,858
Credit card related fees
65,051
50,809
65,051
50,809
Others
14,528
4,428
12,516
6,770
116,984
88,881
112,401
80,437
Advertisement and publicity
(iv) Administration and general expenses comprise the followings:

The Group
2012
RM000
The Bank
2011
RM000
2012
RM000
2011
RM000
Teletransmission expenses
15,005
7,206
14,287
7,590
Stationery and printing expenses
20,885
13,106
20,262
10,694
Professional fees
71,637
55,947
69,849
54,077
Insurance fees
20,431
12,515
18,392
11,245
Stamp, postage and courier
25,588
13,342
24,443
13,194
78,561
78,561
Corporate expenses
Credit card fees
64,813
30,129
64,813
30,129
Travelling and transport expenses
6,889
3,510
5,857
2,777
Registration and license fees
5,096
3,510
4,668
3,369
Brokerage and comission
4,780
4,233
4,445
3,977
Others
30,803
34,577
32,088
9,210
265,927
256,636
259,104
224,823
139
Financial Section
Notes
(continued)
34
Overhead expenses (continued)
The above expenditure includes the following statutory disclosures:

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
6,392
6,506
5,894
5,992
13,253
7,544
13,188
8,886
- statutory audit
1,734
968
1,317
640
- audit related fees
Directors remuneration (Note 37)

Hire of equipment
Auditors remuneration:
Malaysian firm
1,731
1,560
1,296
870
- other services
190
190
- tax compliance
315
75
90
60
90
415
90
415
251
220
213
184
- other tax services

PwC overseas affiliated firms
- statutory audit
- other fees
Loss on disposal of property and equipment
Property and equipment written off
62
102
62
99
978
165
974
299
26
125
26
14
35 Allowance for impairment losses on loans, advances and financing

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
- collective assessment allowance
461,305
289,794
410,948
221,943
- individual assessment allowance
(74,599)
(10,852)
(71,336)
(20,789)
45,431
10,576
37,883
Allowance for impairment losses

on loans, advances and financing:
- impaired loans and financing written off

- impaired loans and financing recovered
(320,957)
(152,244)
111,180
137,274
(300,806)
76,689
9,840
(115,300)
95,694
140
Financial Section
Notes
(continued)
36 Significant related party transactions and balances

(a) Related parties and relationships

The related parties of and their relationships with the Bank are as follows:
Related parties
Relationship
Hong Leong Company (Malaysia) Berhad
Ultimate holding company
Hong Leong Share Registration Services Sdn Bhd, HLCM

Capital Sdn Bhd, Hong Leong Fund Management Sdn
Bhd and HL Management Co Sdn Bhd
Subsidiary companies of ultimate holding

company
Holding company
Subsidiary companies of Hong Leong Financial Group

Berhad as disclosed in its financial statements
Subsidiary companies of holding company

Hong Leong Industries Berhad and its subsidiary and

associated companies as disclosed in its financial
statements
Subsidiary and associated companies of ultimate

holding company
HLMG Management Co Sdn Bhd (formerly known as HLIHume Management Co Sdn Bhd) (HLMG)
Hume Cement Sdn Bhd
Hume Construction Sdn Bhd
Hume Plastics (Malaysia) Sdn Berhad
Hume Quarry (Sarawak) Sdn Bhd
Hongvilla Development Sdn Bhd
HIMB Overseas Limited
HIMB Trading Limited and Delta Touch Limited
Subsidiary companies of ultimate holding

company
Guoco Group Limited and its subsidiary and associated

companies as disclosed in its financial statements

holding company
GuocoLand (Malaysia) Berhad and its subsidiary and

associated companies as disclosed in its financial
statements

holding company
Subsidiary companies of the Bank as disclosed in Note

12
Subsidiary companies of the Bank
Key management personnel
The key management personnel of the Bank

consists of:
- All Directors of The Bank and four members
of senior management of the Bank
Related parties of key management personnel

(deemed as related to the Bank)
(i)
Close family members and dependents of

key management personnel
(ii)
Entities that are controlled, jointly controlled

or significantly influenced by, or for which
significant voting power in such entity
resides with, directly or indirectly by key
management personnel or its close family
members
141
Financial Section
Notes
(continued)
36 Significant related party transactions and balances (continued)

(b) Related party transactions and balances
Group
2012
Parent
company
RM000
Other
related
companies
RM000
Key
management
personnel
RM000
Income
Interest:
- loans
67
Commitment fee and bank charges
Commission on Group products/services sold
16,983
Others
7,382
24,365
67
Rental and maintenance
14,387
Insurance
1,058
Interest on deposits
100
333
Expenditure
Interest on Tier 2 capital cumulative subordinated loan

Interest paid on short-term corporate placement
Management fees
Other miscellaneous expenses
228
15,377
997
5,416
24,537
201
3,358
5,845
58,817
1,330
1,802
Amounts due from

Loans
Credit card balances
Others
345
14
1,518
14
1,518
2,147
486
227,855
24,860
Amounts due to
Current account and fixed deposits
Short-term corporate placement
382,690
58,204
Others
486
610,554
83,064
142
Financial Section
Notes
(continued)

(b) Related party transactions and balances (continued)
Group
2011
Parent
company
RM000
Other
related
companies
RM000
Key
management
personnel
RM000
Income
Interest:
- loans
561
30
11,742
Others
6,817
18,559
591
14,002
Insurance
2,988
86
325
Expenditure
Interest on Tier 2 capital cumulative subordinated loan

Management fees
14,080
437
12,928
1,271
5,325
17,026
482
1,931
20,324
48,961
1,596
104,014
Amounts due from

Loans
Others
142
26
639
26
639
104,156
638
211,065
83,549
Amounts due to
2,314,080
475,679
10,933
2,314,718
686,744
94,482
143
Financial Section
Notes
(continued)

The Bank
2012
Income
Interest:
- loans
- interbank placement
- negotiable instruments of deposit
- redeemable preference shares
- medium term note
- available-for-sale securities
Rental Income
Reimbursement of shared service cost
Others
Expenditure
Insurance
Interest on current account and fixed deposits
Interest paid on stapled securities
Interest paid on negotiable instruments of
deposit
Management fees
Amounts due from

Interbank placement
Redeemable preference shares
Loans
Medium term note
Available-for-sale securities
Others
Amounts due to
Stapled securities
Others
Parent
company
RM000
Subsidiary
companies
RM000
Other
related
companies
RM000
Key
management
personnel
RM000
1,402
42,925
44,837
15,593
16,728
30
2,589
119,016
2,056
245,176
16,983
7,382
24,365
67
67
228
961
1,345
72,858
-
14,387
1,058
100
15,377
332
997
5,416
201
5,845
44,837
67
120,068
24,537
3,358
58,817
1,329
14
14
1,205,065
1,640,000
613,800
275,597
1,590
3,736,052
1,518
1,518
1,802
345
2,147
486
486
72,466
613,800
1,407,283
219,443
2,312,992
227,855
382,690
9
610,554
24,748
58,204
82,952
144
Financial Section
Notes
(continued)

The Bank
2011
Parent
company
RM000
Subsidiary
companies
RM000
Other
related
companies
RM000
Key
management
personnel
RM000
Income
Interest:
- loans
561
- interbank placement
18,139
30
30
11,742
Reimbursement of shared service cost
56,361
6,817
74,532
18,559
591
937
14,002
Insurance
2,988
308
86
251
14,080
437
12,928
1,271
5,325
17,026
482
1,931
20,324
1,245
48,961
1,522
Overdraft
312
Interbank placement
562,020
Loans
104,014
Expenditure
Interest on Tier 2 capital cumulative

subordinated loan
Interest paid on short-term corporate
placement
Management fees
Amounts due from

Others
142
26
844,671
639
26
1,407,003
639
104,156
638
44,703
211,065
76,972
Amounts due to
2,314,080
613,800
Stapled securities
1,405,706
475,679
10,933
Others
28,626
2,314,718
2,092,835
686,744
87,905
145
Financial Section
Notes
(continued)

The Group
The approved limit on loans, advances and financing for key management
personnel
2012
RM000
2011
RM000
2,179
104,511
(c) Key management personnel

Key management compensation

The Group
Salaries and other short-term employee

benefits
Share options balance of the Bank
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
15,192
12,234
15,192
12,234
8,325,139
12,584,000
8,325,139
12,584,000
Included in the above is the Directors compensation which is disclosed in Note 37 to the financial statements.
Loans made to key management personnel of the Group and the Bank will be on similar terms and conditions
generally available to other employees within the Group. No specific allowances were required in 2012 and
2011 for loans made to key management personnel.
(d) Credit transactions and exposures with connected parties

Credit exposures with connected parties as per BNMs revised Guidelines on Credit Transactions and Exposures
with Connected Parties which became effective on 1 January 2008 are as follows:
The Group
Outstanding credit exposures with

connected parties
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
5,798,998
3,729,523
5,777,241
3,587,417
Percentage of outstanding credit exposures

to connected parties as a proportion of
total credit exposures
5.42%
3.79%
6.22%
7.55%
Percentage of outstanding credit exposures

with connected parties which is nonperforming or in default
0.001%
0.023%
0.001%
0.000%
37
105
1,532
Mr Lim Beng Choon
YBhg Dato Syed Faisal Albar bin Syed A.R

Albar
1,602
165
80
22
22
6,396
1,532
105
150
204
165
80
80
218
178
154
198
4,864
Total
RM000
4,772
4,772
Salaries and
bonuses and
defined
contribution
retirement
plan
RM000
1,100
1,100
105
150
90
165
80*
80*
140*
100
80*
110*
Director
fees
RM000
22
22
Estimated
money value
for benefitsin-kind
RM000
The Bank
5,894
1,100
105
150
90
165
80
80
140
100
80
110
4,794
Total
RM000
The movement and details of the Directors of the Company in office and interests in shares and share options are reported in the Directors report.
These fees have been assigned in favour of the Company where the Director is employed.
4,772
150
Ms Lim Lean See
Total Directors' remuneration
204
80
218
178
Mr Choong Yee How
154
198
70
Director
fees
RM000
Estimated
money value
for benefitsin-kind
RM000
The Group
Mr Quek Kon Sean
4,772
Mr Kwek Leng Hai
Non-executive Directors
Executive Director
2012
Salaries and
bonuses and
defined
contribution
retirement
plan
RM000
Directors remuneration

Forms of remuneration in aggregate for all Directors for the financial year are as follows:
146
Financial Section
Notes

(continued)
37
1,312
64
6,506
1,242
54
141
136
70
90
202
178
40
143
184
5,264
1,121
4,143
Total
RM000
5,130
5,130
1,092
4,038
Salaries and
bonuses and
defined
contribution
retirement
plan
RM000
798
798
54
34
136
70*
90*
101*
101
40
70*
98*
Director
fees
RM000
64
64
29
35
Estimated
money value
for benefitsin-kind
RM000
The Bank
5,992
798
54
34
136
70
90
101
101
40
70
98
5,194
1,121
4,073
Total
RM000
The movement and details of the Directors of the Company in office and interests in shares and share options are reported in the Directors Report.
These fees have been assigned in favour of the company where the Director is employed.
5,130
Total Directors' Remuneration
4
1,242
YBhg Dato Syed Faisal Albar bin Syed A.R

Albar
54
141
136
70*
Ms Lim Lean See
90*
202*
178
40
Mr Lim Beng Choon
Mr Choong Yee How
Mr Quek Kon Sean
Mr Kwek Leng Hai
Mr Tan Keok Yin
64
29
143*
5,130
35
184*
1,092
Encik Zulkiflee bin Hashim
Non-executive Directors
70
4,038
70*
Director
fees
RM000
Estimated
money value
for benefitsin-kind
RM000
The Group
Executive Directors
2011
Salaries and
bonuses and
defined
contribution
retirement
plan
RM000
Directors remuneration (continued)

Forms of remuneration in aggregate for all Directors for the financial year are as follows: (continued)
147

Financial Section
Notes

(continued)
148
Financial Section
Notes
(continued)
38 Taxation and zakat
The Group
Note
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
455,856
274,281
430,532
272,582
Malaysian income tax

- Current year
- (Over)/Under accrual in prior years
Transfer to deferred taxation
(110,986)
8,601
- Current year
(25,016)
- Under accrual in prior years
177,819
134,515
460,520
277,699
426,708
271,073
222
71
460,742
277,770
426,708
271,073
Taxation
Zakat
8,064
(148,139)
17
(4,646)
(27,353)
(10,110)
The effective tax rate for the Group and Bank differed from the statutory rate of taxation due to:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
2,108,898
1,415,216
1,673,988
1,078,566
527,225
353,804
418,497
269,642
- Income not subject to tax
(47,800)
(56,155)
(19,867)
(29,167)
- Share of net income of foreign associate and

joint venture company
(54,645)
(52,555)

Tax calculated at a rate of 25% (2011: 25%)
Tax effects of:
- Expenses not deductible for tax purposes

Under accrual in prior years
Taxation
24,541
6,060
4,550
21,997
29,680
8,064
23,528
8,601
460,520
277,699
426,708
271,073
The Group
Unused tax losses for which no deferred tax is recognised in the financial
statements
Unutilised tax credit for which no deferred tax is recognised in the financial
statements
2012
RM000
2011
RM000
29,883
29,883
278,100
149
Financial Section
Notes
(continued)
39 Earnings per share

Basic earnings per share

Basic earnings per share from operations is calculated by dividing the net profit attributable to ordinary equity holders
of the Bank after taxation by the weighted average number of ordinary shares in issue during the financial year,
excluding the average number of ordinary shares purchased by the Bank and held as treasury shares.
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Profit after taxation and zakat
1,648,156
1,137,446
1,247,280
807,493
Weighted average number of ordinary shares in

issue ('000)
1,661,021
1,452,731
1,661,021
1,452,731
99.2
78.3
75.1
55.6
Basic earnings per share (sen)

Diluted earnings per share
The Bank has only one category of dilutive potential ordinary share, share options. For the share options, a calculation
is done to determine the number of shares that could have been acquired at fair value (determined as the average
annual market share price of the Banks shares) based on the monetary value of the subscription rights attached to
outstanding share options. The number of shares calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share options.
The Group
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Profit after taxation and zakat
1,648,156
1,137,446
1,247,280
807,493
Weighted average number of ordinary shares in

issue ('000)
1,661,021
1,452,731
1,661,021
1,452,731
5,994
8,593
5,994
8,593
1,667,015
1,461,324
1,667,015
1,461,324
98.9
77.8
74.8
55.3
- adjustment for ESOS
Diluted earnings per share (sen)

40
The Bank
Dividends

2012
Gross
Amount of
dividends
dividends
per share
net of tax
sen
RM000
2011
Gross
Amount of
dividends
dividends
per share
net of tax
sen
RM000
Final dividend
15.0
196,625
15.0
163,441
Interim dividend
11.0
144,198
9.0
98,077
26.0
340,823
24.0
261,518
150
Financial Section
Notes
(continued)
40
Dividends (continued)
A final dividend in respect of the financial year ended 30 June 2012 of 27.0 sen per share less tax at 25% (2011:
15.0 sen per share less tax at 25%) will be proposed for shareholders approval at the forthcoming Annual General
Meeting. Based on the Banks adjusted issued and paid-up share capital (excluding 81,098,700 treasury shares held
pursuant to Section 67A of the Companies Act, 1965) of RM1,798,810,400 comprising 1,798,810,400 shares as
at 30 June 2012, the dividend amount would approximately be RM364,259,106. The proposed dividend will be
reflected in the financial statements of the financial year ending 30 June 2013 when approved by shareholders.
41 Income tax relating to components of other comprehensive loss

2012
2011
Before
tax
RM000
Tax
benefits
RM000
Net of
tax
amount
RM000
Before
tax
RM000
109,079
(27,270)
81,809
8,113
(2,028)
6,085
106,144
(26,536)
79,608
14,660
(3,665)
10,995
Tax
expenses
RM000
Net of
tax
amount
RM000
The Group
Financial investments
available-for-sale
- net fair value gain/
(loss)
The Bank
available-for-sale
- net fair value gain/
(loss)
42 Commitments and contingencies

In the normal course of business, the Group and the Bank make various commitments and incurs certain contingent
liabilities with legal recourse to its customers. No material losses are anticipated as a result of these transactions.
These commitments and contingencies are also not secured over the assets of the Group.
151
Financial Section
Notes
(continued)
42 Commitments and contingencies (continued)

The notional amounts of the commitments and contingencies constitute the followings:
The Group
The Bank
2012
Principal
Amount
RM000
2011
Principal
Amount
RM000
2012
Principal
Amount
RM000
2011
Principal
Amount
RM000
444,051
559,290
435,503
195,694
Certain transaction related contingent items
1,410,727
1,394,682
1,336,034
268,190
Short term self liquidating trade related

contingencies
1,557,667
616,404
1,534,557
469,521
Direct credit substitutes
Forward asset purchases
71,513
71,513
Underwriting obligations
72,000
- maturity more than one year
12,720,869
12,488,631
9,341,832
5,109,037
- maturity less than one year
17,750,840
17,617,166
16,631,310
9,707,861
37,767,414
35,896,628
37,673,453
33,894,516
1,174,381
1,736,341
4,795,712
5,360,137
686,519
250,376
686,519
250,376
- less than one year
13,416,046
12,791,226
13,376,046
11,566,226
- one year to less than five years
41,967,670
35,757,281
41,367,670
32,737,281
- five years and above
10,741,653
9,632,500
10,241,653
9,582,500
69,293
163,946
69,293
163,946
9,748
6,600
9,748
6,600
Irrevocable commitments to extend credit:
Foreign exchange related contracts:

- five years and above
Interest rate related contracts:
Equity related contracts:

Unutilised credit card lines
9,200,627
9,296,768
9,200,627
6,600,684
148,989,018
138,279,839
146,771,470
115,912,569
43 Capital commitments

Capital expenditure approved by Directors but not provided for in the financial statements are as follows:
The Group
2012
RM000
2011
RM000
Authorised and contracted for
10,942
Authorised but not contracted for
92,322
103,264
The capital commitments are in respect of property and equipment.
The Bank
2012
RM000
2011
RM000
86,320
9,989
56,116
50,862
91,493
33,873
137,182
101,482
89,989
152
Financial Section
Notes
(continued)
44 Lease commitments

The Group and the Bank have lease commitments in respect of rented premises, all of which are classified as operating
leases. A summary of the future minimum lease payments, under non-cancellable operating lease commitment are as
follows:
Not later than one year
2012
2011
RM000
RM000
4,493
3,087
Later than one year and not later than five years
12,701
6,575
More than five years
11,764
25,723
28,958
35,385
45 Holding and ultimate holding companies

The holding and ultimate holding companies are HLFG and Hong Leong Company (Malaysia) Berhad respectively, both
companies incorporated in Malaysia.
46 Financial instruments
(a) Financial risk management objectives and policies

Overview and organisation

Integrated Risk Management (IRM)
The Banks risk management framework outlines the overall structure, aspirations, values and risk managements
strategies, and its structured approach in balancing risks and returns. The Banks aim is to achieve an optimum
balance between risk and returns and minimize potential adverse effects on the Banks financial performance.
Appropriate methodologies and measures have been developed in our risk management approaches to manage
uncertainties such that the deviation from intended strategic objectives are monitored and controlled within
manageable levels.
At the apex of the risk framework, the Board of Directors has the overall responsibility to ensure there is proper
oversight of the management of risks in the Bank. The Board of Directors set the risk appetite and tolerance level
that is consistent with the Banks overall business objectives and desired risk profile. A number of committees
and dedicated risk management functions have been established to manage specific areas of risk and
implement various risk management policies and procedures.
Giving due prominence to risk management, a Board Risk Management Committee (BRMC) comprising three
members of Board of Directors (where a minimum of two members are the Independent/Non-executive Directors)
has been set up to oversee and ensure that risk management at all levels is being managed effectively. They, in
turn, report all the risk management activities to the Board of Directors.
The BRMC is assisted bythe Group Integrated Risk Management and Compliance (GIRMC) function, which
has been established to provide independent oversight on the adequacy, effectiveness and integrity of risk
management practices at all levels within the Bank. The core functions of the Banks risk management are to
identify all key risks for the Bank, measure these risks, manage the risk positions and determine the optimum
capital allocations. The Bank regularly reviews its risk management framework to reflect changes in markets,
products, regulatory and emerging best market practice. The risk management framework that the Bank has
formulated is designed to administer the organizational structure, governance, risk strategies and appetite,
monitoring and reporting processes.
153
Financial Section
Notes
(continued)
46 Financial instruments (continued)
(a) Financial risk management objectives and policies (continued)

Credit Risk Management
Credit risk is risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its
payment obligations to the Bank, which leads to a loss of revenue and the principal sum. It arises principally
from lending, trade finance and treasury activities. Credit risk management forms a key component of the Banks
integrated risk management structure. The Banks integrated risk management structure is founded upon a
credit risk framework that is compliant with BNMs guidelines on Best Practices for the Management of Credit
Risk. The Banks Credit Risk Management Framework spells out the credit risk management objectives, credit
risk philosophy and guiding principles underpinning the Bank in its credit risk management.
The Bank places high emphasis on effective credit risk management. Credit evaluation is managed by experienced
personnel, with high level review undertaken by the Management Credit Committee, under the supervision of
the Board Credit Supervisory Committee. All significant credit policies are reviewed and approved by the BRMC
and Board of Directors respectively.
The key to credit risk management is to ensure that structures and processes are in place to maintain and
continuously enhance the Banks risk assessment capabilities in key areas of credit. These include sound
credit policies and procedures, quality credit approvals, appropriate risk measurement and risk methodology,
strong credit controls with independent reviews and effective recovery strategies. Management of credit risk is
principally guided by the lending directions and policies; and maximizing risk adjusted rate of returns to optimize
the overall portfolio risk/return within the defined risk limits, which are set based on the prevailing business
and economic conditions as well as the Banks risk appetite. The Banks credit risk management process is
documented in the Credit Manual. The Credit Manual sets out the Banks policies on lending guidelines, lending
authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and
timely rehabilitation and restructuring of problematic and delinquent accounts.
The management of credit risk commences at the application stage whereby there is a stringent evaluation
process, based on prudent lending policies. To enhance credit risk management, the Bank has implemented a
credit risk rating system for Business Banking borrowers. As for the retail segment, the Bank has implemented
a credit application and behavioural scoring system to improve the Banks ability to control credit losses within
predictive ranges and achieve a well-balanced portfolio. The Bank conducts stress tests regularly to ensure its
asset quality is within acceptable levels even under stress scenarios.
Internal Audit conducts independent post approval reviews on sampling basis to ensure that quality of credit
appraisals and approval standards are in accordance with the credit standards and the lending policies and
directives established and approved by the Banks management.
Market Risk Management

Market risk is the risk of financial loss arising from exposure to adverse changes in values of financial instruments
caused by changes in market prices or rates, which include changes to interest rates.
The Bank adopts a systematic approach in managing such risks by types of instruments and nature of exposure.
Market risk is primarily controlled via a series of cut-loss limits and potential loss limits, i.e. Value at Risk
(VaR), set in accordance with the size of positions and risk tolerance appetites.
Portfolios held under the Banks trading books are tracked using daily mark-to-market positions, which are
compared against preset limits. The daily tracking of positions is supplemented by sensitivity analysis and stress
tests, using VaR and other measurements.
Foreign exchange risks arising from adverse exchange rate movements, is managed by the setting of preset
limits, matching of open positions against these preset limits and imposition of cut-loss mechanisms.
Interest rate risk exposure is also identified, measured and controlled through limits and procedures, which
includes regularly reviewing the interest rate outlook and developing strategies to protect total net interest
income from changes in market interest rates.
In addition, the Bank also conducts periodic stress testing of its respective portfolios to ascertain market risk
under abnormal market conditions.
154
Financial Section
Notes
(continued)
(a) Financial risk management objectives and policies (continued)

Liquidity Risk Management
Liquidity risk is the risk of financial loss arising from the inability to fund increases in assets and/or meet
obligations as they fall due. Financial obligations arise from the withdrawal of deposits, funding of loans
committed and repayment of borrowed funds. It is the Banks policy to ensure there is adequate liquidity across
all business units to sustain ongoing operations, as well as sufficient liquidity to fund asset growth and strategic
opportunities.
As a safeguard against liquidity risk, the Bank takes a multi-pronged approach towards managing this risk,
beginning with a liquidity management system, adopting BNMs Liquidity Framework as the backbone. The
Liquidity Framework ascertains the liquidity condition based on contractual and behavioural cash-flow of assets,
liabilities and off-balance sheet commitments, taking into consideration the realisable cash value of liquefiable
assets. The Bank has been in compliance with the New Liquidity Framework throughout the financial year.
This is supplemented by the Banks own internal liquidity management policies, which includes cash flow
management, maintenance of high quality long-term and short-term marketable debt securities and diversification
of funding base. The Bank has in place liquidity contingency funding plans to minimise the liquidity risk that may
arise due to unforeseen adverse changes in the marketplace.
In addition, the Bank would be commencing the BASEL III observation period reporting of the 2 key liquidity ratios,
namely the Liquidity Coverage Ratio and the Net Stable Funding Ratio, to BNM, with effect from June 2012.
(b) Market risk

Market risk sensitivity assessment is based on the changes in key variables, such as interest rates and foreign
currency rates, while all other variables remain unchanged. The sensitivity factors used are assumptions based
on parallel shifts in the key variables to project the impact on the assets and liabilities position of the Group and
the Bank.

The scenarios used are simplified whereby it is assumed that all key variables for all maturities move at the same
time and by the same magnitude and do not incorporate actions that would be otherwise taken by the business
units and risk management to mitigate the effect of this movement in key variables. In reality, the Group and
the Bank proactively seek to ensure that the interest rate risk profile is managed to minimise losses and optimise
net revenues.
(i)

Interest/Profit rate risk sensitivity analysis

The interest/profit rate sensitivity results below shows the impact on profit after tax and equity of financial
assets and financial liabilities bearing floating interest/profit rates and fixed rate financial assets and
financial liabilities.
The Group
Impact
on profit
after tax
RM000
The Bank
Impact
on equity
RM000
Impact
on profit
after tax
RM000
Impact
on equity
RM000
8,428
(169,568)
33,181
(144,417)
(8,428)
169,568
(33,181)
144,417
2012
+100 basis points (bps)
- 100 bps

155
Financial Section
Notes
(continued)
(b) Market risk (continued)
(i)
Interest/Profit rate risk sensitivity analysis (continued)

The Group
Impact
on profit
after tax
RM000
Impact
on equity
RM000
The Bank
Impact
on profit
after tax
RM000
Impact
on equity
RM000
2011
+100 basis points (bps)
- 100 bps
64,465
(90,691)
61,140
(33,992)
(64,465)
90,691
(61,140)
33,992
(ii) Foreign currency risk sensitivity analysis

The Group and the Bank take on exposure to the effects of fluctuations in the prevailing foreign currency
exchange rates on their financial position and cash flows.

The table below sets out the principal structure of foreign exchange exposures of the Group and the Bank:
2012
2011
RM000
RM000
607,877
194,519
Group
United States Dollar ("USD")
Euro ("EUR")
11,559
(5,680)
Great Britain Pound ("GBP")
(11,989)
(11,028)
Singapore Dollar ("SGD")
(14,534)
(77,455)
Others
60,377
150,930
653,290
251,286
638,719
173,117
Bank
Euro ("EUR")
10,458
(12,472)
(15,003)
Others
(9,639)
(11,145)
(80,299)
58,112
139,569
679,814
211,603
156
Financial Section
Notes
(continued)
(ii)
Foreign currency risk sensitivity analysis (continued)
An analysis of the exposures to assess the impact of a one per cent change in the RM exchange rates to
the profit after tax are as follows:

2012
2011
RM000
RM000
Group
-1%
Euro ("EUR")
Others
(14,477)
(4,409)
(346)
187
446
401
273
1,429
(1,059)
783
(15,163)
(1,609)
14,477
4,409
+1%
Euro ("EUR")
Others
346
(187)
(446)
(401)
(273)
(1,429)
1,059
(783)
15,163
1,609
(15,212)
(3,924)
Bank
-1%
Euro ("EUR")
Others
(313)
316
464
405
282
1,481
(1,034)
(15,813)
906
(816)
+1%
Euro ("EUR")
Others
15,212
313
(316)
(464)
(405)
(282)
(1,481)
1,034
15,813
3,924
(906)
816
157
Financial Section
Notes
(continued)

Interest/Profit rate risk
The tables below summarise the Groups and the Banks exposure to interest/profit rate risks. Included in
the tables are the Groups and the Banks financial assets and financial liabilities at their carrying amounts,
categorised by the earlier of contractual repricing or maturity dates. The net interest sensitivity gap for items not
recognised in the statement of financial position represents the net notional amounts of all interest/profit rate
sensitive derivative financial instruments. As interest rates and yield curves change over time, the Group and the
Bank may be exposed to loss in earnings due to the effects of interest rates on the structure of the statement
of financial position. Sensitivity to interest/profit rates arises from mismatches in the repricing dates, cash flows
and other characteristics of the financial assets and their corresponding financial liabilities funding.

The Group
2012
Nontrading book
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Noninterest/
profit rate
sensitive
RM000
Trading
book
RM000
Total
RM000
Financial assets
Cash and short-term
funds
18,401,839
1,234,187
19,636,026
Deposits and placements

with banks and other
4,070,352
488,683
6,784
4,565,819
Securities purchased
under resale
agreements
590,521
590,521
Financial assets held-fortrading
- 21,746,847
21,746,847
available-for-sale
1,199,845
323,072
561,052
6,589,018
718,335
542,994
9,934,316
held-to-maturity
57,351
759,745
1,693,555
952,406
121,221
85,920
3,670,198
- performing
65,284,353
125,676
2,129,752 11,098,517
9,109,761
87,748,059
- impaired ^
77,771
2,734
38,181
76,927
249,419
445,032
Other assets
445,811
445,811
955,350
955,350
2,315,696 22,702,197
149,737,979
Loans, advances and

financing
Derivative financial
instruments
Total financial assets
85,021,159
5,872,100
4,911,223 18,716,868 10,198,736
This represents outstanding impaired loans after deducting individual assessment impairment allowance and collective
assessment impairment allowance.
158
Financial Section
Notes
(continued)

Interest/Profit rate risk (continued)

The Group
2012
Nontrading book
Noninterest/
profit rate
sensitive
RM000
Trading
book
RM000
Total
RM000
- 14,986,624
123,095,643
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
54,611,026
15,577,816
32,478,986
5,441,191
7,399,736
2,303,403
81,814
5,743
9,790,696
43,276
590,521
633,797
Deposits from
customers
Deposits and
placements of banks
and other financial
institutions
Obligations on
securities sold
under repurchase
agreements
Bills and acceptances
payable
5,939
17,934
18,724
443,494
486,091
Other liabilities
2,416,572
2,416,572
instruments
1,069,227
1,069,227
Senior bonds
1,907,793
1,907,793
Tier 2 subordinated
bonds
2,888,777
1,501,082
4,389,859
Non-innovative Tier 1
stapled securities
1,407,283
1,407,283
Innovative Tier 1
capital securities
574,581
574,581
62,059,977
18,489,674
2,075,663 17,852,433
1,069,227
145,771,542
Total financial
liabilities
32,579,524 11,645,044
Net interest sensitivity

gap for items
recognised in
the statement of
financial position
22,961,182 (12,617,574) (27,668,301)
7,071,824
8,123,073

gap for items
not recognised in
the statement of
financial position
Financial guarantees
Credit related
commitments and
contingencies
- 39,672,336
- 40,664,915
992,579
159
Financial Section
Notes
(continued)


The Group
2011
Nontrading book
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Noninterest/
profit rate
sensitive
RM000
28,632,529
1,844,081
30,476,610
Trading
book
RM000
Total
RM000
Financial assets
Cash and short-term
funds
Deposits and
placements with
banks and other
4,578,050
835,039
2,294
5,415,383
under resale
agreements
86
86
Financial assets heldfor-trading
6,023,147
6,023,147
available-for-sale
630,107
721,505
358,512
3,712,078
144,809
440,624
6,007,635
held-to-maturity
1,407,090
1,846,733
2,044,116
2,426,621
175
62,677
7,787,412
- performing
59,216,177
556,222
1,247,855
8,628,524 11,734,282
81,383,060
- impaired ^
23,380
512
783
4,594
43,007
72,276
Other assets
653,610
653,610
790,162
790,162
4,486,305 14,771,817 11,922,273
3,003,286
6,813,309
138,609,381
Loans, advances and

financing
instruments
89,909,369
7,703,022
160
Financial Section
Notes
(continued)


The Group
2011
Nontrading book
Noninterest/
profit rate
sensitive
RM000
Trading
book
RM000
Total
RM000
- 14,940,254
114,856,543
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
55,558,310
17,133,733
23,492,109
3,732,137
4,211,476
4,706,293
1,470,977
170,800
126,708
11,407
10,697,661
113,266
79,081
11,794
479,854
683,995
Other liabilities
187,217
2,091,119
2,278,336
instruments
666,706
666,706
Senior bonds
910,810
910,810
Tier 2 subordinated
bonds
2,905,578
2,905,578
Tier 2 capital
cumulative
subordinated loan
2,314,080
2,314,080
stapled securities
1,405,706
1,405,706
Innovative Tier 1
capital securities
595,720
595,720
59,883,052
21,919,107
27,288,960
9,125,031
909,645 17,522,634
666,706
137,315,135
Deposits from
customers
Deposits and
placements of banks
and other financial
institutions
Bills and acceptances
payable
Total financial
liabilities

gap for items
recognised in
the statement of
financial position
30,026,317 (14,216,085) (22,802,655)
5,646,786 11,012,628

gap for items
not recognised in
the statement of
financial position
Credit related
commitments and
contingencies
1,031,473
- 39,402,565
- 40,434,038
161
Financial Section
Notes
(continued)


The Bank
2012
Nontrading book
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Noninterest/
profit rate
sensitive
RM000
17,206,836
1,203,248
18,410,084
Deposits and placements

with banks and other
3,918,683
488,683
6,784
4,414,150
under resale
agreements
590,521
590,521
Financial assets held-fortrading
- 17,687,270
17,687,270
available-for-sale
1,199,846
298,047
441,066
5,226,961
718,335
522,589
8,406,844
held-to-maturity
699,682
1,336,438
1,592,543
101,269
84,952
3,814,884
- performing
58,572,938
117,973
1,807,152
8,936,430
6,158,648
75,593,141
- impaired ^
66,561
2,576
37,204
64,012
233,673
404,026
Other assets
331,782
331,782
1,027,682
1,027,682
4,110,543 15,819,946
7,211,925
2,149,355 18,714,952
130,680,384
Trading
book
RM000
Total
RM000
Financial assets
Cash and short-term
funds
Loans, advances and

financing
instruments
77,046,181
5,627,482
162
Financial Section
Notes
(continued)


The Bank
2012
Nontrading book
Noninterest/
profit rate
sensitive
RM000
Trading
book
RM000
Total
RM000
- 12,589,006
108,939,695
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
46,476,321
14,416,674
30,044,028
5,413,666
5,684,509
2,106,441
81,814
4,600
7,877,364
43,276
590,521
633,797
Deposits from
customers
Deposits and
placements of banks
and other financial
institutions
Obligations on
securities sold
under repurchase
agreements
Bills and acceptance
payable
5,771
16,886
17,845
394,278
434,780
Other liabilities
2,179,245
2,179,245
instruments
1,125,756
1,125,756
Senior bonds
1,907,793
1,907,793
Tier-2 subordinated
bonds
2,888,169
1,501,082
4,389,251
Non-innovative Tier-1
stapled securities
1,407,283
1,407,283
Innovative Tier-1
capital securities
573,115
573,115
52,209,877
17,130,522
2,074,197 15,167,129
1,125,756
129,468,079
Total financial
liabilities
30,143,687 11,616,911

gap for items
recognised in
the statement of
financial position
24,836,304 (11,503,040) (26,033,144)
4,203,035
5,137,728

gap for items
not recognised in
the statement of
financial position
Credit related
commitments and
contingencies
- 35,173,769
- 36,134,703
Total interest rate

sensitivity gap
960,934
163
Financial Section
Notes
(continued)


The Bank
2011
Nontrading book
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Noninterest/
profit rate
sensitive
RM000
15,861,237
1,488,556
17,349,793
Trading
book
RM000
Total
RM000
Financial assets
Cash and short-term
funds
Deposits and
placements with
banks and other
5,318,989
808,557
3,927
6,131,473
under resale
agreements
86
86
4,471,896
4,471,896
available-for-sale
44,085
554,409
91,453
1,514,992
331,986
2,536,925
held-to-maturity
1,375,002
1,816,370
2,053,964
2,620,581
56,653
7,922,570
- performing
34,642,527
23,233
749,793
1,903,753
927,801
38,247,107
- impaired ^
178,331
578
1,332
14,501
106,973
301,715
Other assets
1,074,888
1,074,888
Loans, advances and

financing
instruments
802,776
802,776
52,101,268
7,713,579
3,705,099
6,053,827
1,034,774
2,956,010
5,274,672
78,839,229
164
Financial Section
Notes
(continued)


The Bank
2011
Nontrading book
Up to 1
month
RM000
1 to 3
months
RM000
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Noninterest/
profit rate
sensitive
RM000
32,395,365
9,118,983
13,061,293
2,763,928
8,584,525
65,924,094
2,391,320
3,354,043
70,971
3,810
5,820,144
46,817
10,555
10,981
282,121
350,474
Other liabilities
1,809,911
1,809,911
instruments
672,967
672,967
Senior bonds
910,810
910,810
Tier 2 subordinated
bonds
1,713,260
1,713,260
Tier 2 capital
cumulative
subordinated loan
2,314,080
2,314,080
stapled securities
1,405,706
1,405,706
34,833,502
12,483,581
15,457,325
6,793,704
- 10,680,367
672,967
80,921,446
Trading
book
RM000
Total
RM000
Deposits from
customers
Deposits and
placements of banks
and other financial
institutions
Bills and acceptance
payable
Total financial
liabilities

gap for items
recognised in
the statement of
financial position
17,267,766
(4,770,002) (11,752,226)
(739,877)
1,034,774

gap for items
not recognised in
the statement of
financial position
Credit related
commitments and
contingencies
- 21,417,582
- 21,867,377
Total interest rate

sensitivity gap
449,795
165
Financial Section
Notes
(continued)
(c) Liquidity risk

Liquidity risk is defined as the current and prospective risk arising from the inability of the Group and the Bank
to meet its contractual or regulatory obligations when they become due without incurring substantial losses. The
liquidity risk is identified based on concentration, volatility of source of fund and funding maturity structure and
it is measured primarily using Bank Negara Malaysias New Liquidity Framework and depositors concentration
ratios. The Group and the Bank seek to project, monitor and manage its liquidity needs under normal as well as
adverse circumstances.

The table below analyses the carrying amount of assets and liabilites (include non-financial instruments) as at 30
June 2012 based on the remaining contractual maturity and is disclosed in accordance with the requirements
of BNM GP8:

The Group
2012
Up to
1 week
RM000
1 week to
1 month
RM000
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
Assets
Cash and short-term
funds
12,359,230
7,276,796
19,636,026
Deposits and
placements with
banks and other
4,077,136
478,679
10,004
4,565,819
under resale
agreements
590,521
590,521
1,272,896
3,737,054
9,169,271
4,251,895
201,193
3,112,649
1,889
21,746,847
available-for-sale
1,024,815
175,561
299,395
196,090
394,011
7,376,285
468,159
9,934,316
held-to-maturity
2,134
70,113
766,226
264,099
1,477,050
1,090,576
3,670,198
Loans, advances and

financing
7,060,936
7,919,906
5,084,242
1,673,876
88,193,091
541,593
541,593
instruments
71,304
53,995
59,976
49,227
37,401
683,447
955,350
Statutory deposits
with BNM
3,331,437
3,331,437
Investment in
associated company
76,871
76,871
Investment in jointly
controlled entity
1,540,288
1,540,288
Property and
equipment
727,096
727,096
Intangible assets
446,497
446,497
Goodwill
1,831,312
1,831,312
21,791,315 19,233,425 20,046,767
6,913,866
5,160,568 75,676,179
8,965,142
157,787,262
Other assets
Total assets
3,040,909 63,413,222
166
Financial Section
Notes
(continued)
(c) Liquidity risk (continued)

of BNM GP8: (continued)

The Group
2012
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
48,485,523 21,464,686 15,670,453
17,162,754
15,461,926
4,850,301
123,095,643
Up to
1 week
RM000
1 week to
1 month
RM000
Liabilities
Deposits from
customers
Deposits and
placements
of banks and
other financial
institutions
Obligations on
securities sold
under repurchase
agreements
4,857,211
2,545,733
2,303,386
81,813
2,553
9,790,696
633,797
633,797
Bills and
acceptances
payable
229
4,742
17,934
18,525
199
444,462
486,091
Other liabilities
1,704,622
1,035,066
2,739,688
instruments
44,958
53,541
103,007
50,960
37,919
778,842
1,069,227
Senior bonds
1,907,793
1,907,793
Tier 2
subordinated
bonds
4,389,859
4,389,859
Non-innovative
Tier 1 stapled
securities
1,407,283
1,407,283
Innovative Tier 1
capital securities
574,581
574,581
Provision for
taxation
163,080
163,080
Deferred tax
libilities
110,213
110,213
55,092,543 24,068,702 18,094,780
17,314,052
15,500,044 14,542,456
1,755,374
146,367,951
- 11,419,311
11,419,311
15,500,044 14,542,456 13,174,685
157,787,262
Total liabilities
Total equity
Total liabilities and
equity
Net liquidity gap
55,092,543 24,068,702 18,094,780
17,314,052
(33,301,228) (4,835,277)
1,951,987 (10,400,186) (10,339,476) 61,133,723
7,209,768
11,419,311
167
Financial Section
Notes
(continued)

of BNM GP8:

The Group
2011
1 week to
1 month
RM000
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
20,364,040 10,112,570
30,476,610
Up to
1 week
RM000
Assets
Cash and shortterm funds
Deposits and
placements
with banks and
other financial
institutions
Securities
purchased
under resale
agreements
Financial assets
held-for-trading
Financial
investments
available-for-sale
Financial
investments
held-to-maturity
Loans, advances
and financing
Other assets
4,579,581
613,624
222,178
5,415,383
86
86
327,947
1,721,832
3,055,433
58,212
133,263
726,460
6,023,147
70,453
607,528
525,431
89,430
294,859
4,026,967
392,967
6,007,635
350,847
1,061,887
1,842,032
390,801
1,650,856
2,456,923
34,066
7,787,412
24,355,886
6,142,357
3,153,986
1,190,096
1,440,578 45,172,433
81,455,336
383,034
26,998
558,338
968,370
instruments
79,922
21,684
56,445
16,928
160,244
454,939
790,162
Statutory deposits
with BNM
2,201,874
2,201,874
Investment in
associated
company
1,325,707
1,325,707
Investment in
jointly controlled
entity
75,252
75,252
Property and
equipment
697,266
697,266
Intangible assets
379,422
379,422
Goodwill
1,831,312
1,831,312
63,907
63,907
45,932,215 19,667,858 13,239,906
2,359,091
3,901,978 52,837,722
7,560,111
145,498,881
Deferred tax
assets
Total assets
168
Financial Section
Notes
(continued)


The Group
2011
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
43,249,824 26,295,684 17,690,171
10,660,988
13,218,496
3,741,380
114,856,543
265,740
2,621
10,697,661
Up to
1 week
RM000
1 week to
1 month
RM000
Liabilities
Deposits from
customers
Deposits and
placements
of banks and
other financial
institutions
2,289,852
2,658,663
4,006,745
70,653
1,403,387
Bills and
acceptances
payable
147,996
111,422
79,082
11,251
543
333,702
683,996
Other liabilities
1,887,430
26,998
187,217
832,487
2,934,132
instruments
40,450
32,526
82,958
28,824
139,209
342,739
666,706
Senior bonds
910,810
910,810
Tier 2
subordinated
bonds
2,905,578
2,905,578
Tier 2 capital
cumulative
subordinated
loan
2,314,080
2,314,080
Non-innovative
Tier 1 stapled
securities
1,405,706
1,405,706
Innovative Tier 1
capital securities
595,720
595,720
60,184
60,184
47,615,552 29,098,295 21,885,954
10,771,716
14,761,635 12,668,970
1,228,994
138,031,116
7,467,765
7,467,765
14,761,635 12,668,970
8,696,759
145,498,881
(8,412,625) (10,859,657) 40,168,752
6,331,117
7,467,765
Provision for
taxation
Total liabilities
Total equity
equity
Net liquidity gap
47,615,552 29,098,295 21,885,954
10,771,716
(1,683,337) (9,430,437) (8,646,048)
169
Financial Section
Notes
(continued)

of BNM GP8:
The Bank
2012
Up to
1 week
RM000
1 week to
1 month
RM000
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
11,509,646
6,900,438
18,410,084
Deposits and
placements
with banks and
other financial
institutions
3,925,467
478,679
10,004
4,414,150
Securities
purchased
under resale
agreements
Assets
590,521
590,521
Financial assets
held-for-trading
1,020,144
3,027,164
7,057,422
3,143,220
201,193
3,236,238
1,889
17,687,270
Financial
investments
available-for-sale
1,024,815
175,561
274,213
188,964
280,319
5,994,882
468,090
8,406,844
12
16,870
706,163
232,132
1,148,326
1,711,381
3,814,884
6,864,133
7,679,435
4,766,501
1,458,678
75,997,167
424,756
424,756
Financial
investments
held-to-maturity
Loans, advances
and financing
Other assets
instruments
2,627,572 52,600,848
71,135
53,713
59,841
49,227
37,401
756,365
1,027,682
Amount due from

subsidiaries
615,390
615,390
Statutory deposits
with BNM
2,880,250
2,880,250
Investment in
subsidiary
companies
2,081,933
2,081,933
Investment in
associated
company
946,505
946,505
Investment in
jointly controlled
entity
76,711
76,711
Property and
equipment
701,018
701,018
Intangible assets
437,850
437,850
Goodwill
1,771,547
1,771,547
20,489,885 17,853,181 17,380,128
5,550,900
4,304,815 64,299,714 10,405,939
140,284,562
Total assets
170
Financial Section
Notes
(continued)


The Bank
2012
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
40,774,057 18,073,874 14,495,214
15,817,610
14,342,672
5,436,268
108,939,695
Up to
1 week
RM000
1 week to
1 month
RM000
Liabilities
Deposits from
customers
Deposits and
placements
of banks and
other financial
institutions
Obligations on
securities
sold under
repurchase
agreements
3,334,323
2,352,251
2,106,424
81,813
2,553
7,877,364
633,797
633,797
Bills and
acceptances
payable
223
4,579
16,886
17,647
199
395,246
434,780
Other liabilities
1,675,762
988,656
2,664,418
Derivative
financial
instruments
44,958
53,538
103,007
50,960
37,725
835,568
1,125,756
Senior bonds
1,907,793
1,907,793
Tier 2
subordinated
bonds
4,389,251
4,389,251
Non-innovative
Tier 1 stapled
securities
1,407,283
1,407,283
Innovative Tier
1 capital
securities
573,115
573,115
Provision for
taxation
118,651
118,651
114,148
114,148
45,829,323 20,484,242 16,721,531
15,968,030
14,380,596 15,183,075
1,619,254
130,186,051
- 10,098,511
10,098,511
14,380,596 15,183,075 11,717,765
140,284,562
Deferred tax
liabilities
Total liabilities
Total equity
Total liabilities
and equity
Net liquidity gap
45,829,323 20,484,242 16,721,531
15,968,030
(25,339,438) (2,631,061)
658,597 (10,417,130) (10,075,781) 49,116,639
8,786,685
10,098,511
171
Financial Section
Notes
(continued)

of BNM GP8:

The Bank
2011
Up to
1 week
RM000
1 week to
1 month
RM000
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
10,276,156
7,073,637
17,349,793
5,322,154
613,624
195,695
6,131,473
86
86
293,083
998,350
2,403,032
18,649
113,693
645,089
4,471,896
13,337
67,674
344,181
44,189
49,403
1,703,373
314,768
2,536,925
350,847
1,029,049
1,827,989
390,801
1,674,747
2,648,383
754
7,922,570
3,300,990
5,392,858
2,688,115
895,634
948,808 25,322,417
38,548,822
428,826
428,826
78,874
20,903
55,846
14,217
159,086
473,850
802,776
Assets
Deposits and
placements
with banks and
other financial
institutions
Securities
purchased
under resale
agreements
Financial assets
held-for-trading
Financial
investments
available-for-sale
Financial
investments
held-to-maturity
Loans, advances
and financing
Other assets
instruments
Amount due from
subsidiaries
230,635
614,036
844,671
Statutory deposits
with BNM
988,900
988,900
Investment in
subsidiary
companies
6,088,873
6,088,873
Investment in
associated
company
946,505
946,505
Investment in
jointly controlled
entity
76,711
76,711
Property and
equipment
349,445
349,445
Intangible assets
59,536
59,536
Deferred tax
assets
102,281
102,281
14,544,008 14,582,471 12,641,317
1,977,114
3,141,432 30,793,112
9,970,635
87,650,089
Total assets
172
Financial Section
Notes
(continued)


The Bank
2011
1 week to
1 month
RM000
1 to 3
months
RM000
3 to 6
months
RM000
6 to 12
months
RM000
Over
1 year
RM000
No
specific
maturity
RM000
Total
RM000
25,339,617 14,617,935
9,662,520
5,282,406
8,255,557
2,766,059
65,924,094
5,820,144
Up to
1 week
RM000
Liabilities
Deposits from
customers
Deposits and
placements
of banks and
other financial
institutions
1,330,812
1,061,681
3,354,059
70,653
318
2,621
Bills and
acceptances
payable
73
35,286
10,555
10,438
543
293,579
350,474
Other liabilities
1,504,300
408,198
1,912,498
instruments
40,135
30,008
77,138
23,389
138,449
363,848
672,967
Senior bonds
910,810
910,810
Tier 2
subordinated
bonds
1,713,260
1,713,260
Tier 2 capital
cumulative
subordinated
loan
2,314,080
2,314,080
Non-innovative
Tier 1 stapled
securities
1,405,706
1,405,706
58,930
58,930
28,214,937 15,744,910 13,104,272
5,386,886
8,394,867
9,473,763
763,328
81,082,963
6,567,126
6,567,126
28,214,937 15,744,910 13,104,272
5,386,886
8,394,867
9,473,763
7,330,454
87,650,089
(5,253,435) 21,319,349
9,207,307
6,567,126
Provision for
taxation
Total liabilities
Total equity
equity
Net liquidity gap
(13,670,929) (1,162,439)
(462,955)
(3,409,772)
173
Financial Section
Notes
(continued)

The following table shows the contractual undiscounted cash flows payable for financial liabilities by remaining
contractual maturities. The balances in the table below will not agree to the balances reported in the statements of
financial position as the table incorporates all contractual cash flows, on an undiscounted basis, relating to both principal
and interest payments. The contractual maturity profile does not necessarily reflect the behavioural cash flows.

The Group
Up to
1 month
RM000
1 to 3
months
RM000
2012
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Total
RM000
69,705,474
15,850,183
33,318,089
7,361,382
95,674
126,330,802
9,023,780
2,283,233
87,920
11,394,933
712,356
Liabilities
Obligations on securities sold under
repurchase agreements
Other liabilities
712,356
446,307
318
671
447,296
2,416,572
2,416,572

- Gross settled derivatives
- Inflow
(9,616,738)
(5,888,132)
(2,052,710)
(125,081)
(5,115)
(17,687,776)
- Outflow
9,653,483
5,957,371
2,081,406
140,726
5,479
17,838,465
29,784
20,478
215,241
482,041
96,515
844,059
Senior bonds
18,009
47,404
2,131,734
2,197,147
28,683
147,232
3,320,977
1,563,173
5,060,065
70,700
1,753,694
1,824,394
20,568
20,568
165,000
603,295
809,431
81,658,662
18,290,711
33,936,521
15,942,829
2,359,021
152,187,744
- Net settled derivatives
Total financial liabilities

The Group
Up to
1 month
RM000
1 to 3
months
RM000
2011
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Total
RM000
75,611,241
22,165,664
15,315,167
2,446,641
115,538,713
6,945,981
3,583,424
220,207
10,749,612
591,703
59,332
9,087
660,122
2,278,336
2,278,336
Liabilities
Other liabilities
- Inflow
(7,536,348)
(5,296,584)
(5,886,222)
(1,506,353)
(20,225,507)
- Outflow
7,568,755
5,314,778
6,018,786
1,597,864
20,500,183
28,618
38,115
103,835
300,401
470,969
Senior bonds
17,181
17,182
1,053,803
1,088,166
28,763
110,388
3,319,038
3,458,189
9,617
2,317,155
2,326,772
35,350
1,718,150
1,753,500
41,250
20,625
165,000
644,375
871,250
85,488,286
25,961,540
18,281,560
9,094,544
644,375
139,470,305
174
Financial Section
Notes
(continued)

The following table shows the contractual undiscounted cash flows payable for financial liabilities by remaining
contractual maturities. The balances in the table below will not agree to the balances reported in the statements
of financial position as the table incorporates all contractual cash flows, on an undiscounted basis, relating to
both principal and interest payments. The contractual maturity profile does not necessarily reflect the behavioural
cash flows. (continued)
The Bank
Up to
1 month
RM000
1 to 3
months
RM000
2012
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Total
RM000
58,538,605
14,665,925
30,721,604
5,653,560
95,674
109,675,368
6,375,228
2,283,233
87,920
8,746,381
712,356
Liabilities
Obligations on securities sold under
repurchase agreements
Other liabilities
712,356
397,091
318
671
398,080
2,179,245
2,179,245

- Inflow
(9,616,738)
(5,888,132)
(2,052,710)
(125,081)
(5,115)
(17,687,776)
- Outflow
9,653,483
5,957,371
2,081,406
140,726
5,479
17,838,465
28,835
20,222
210,801
469,269
97,893
827,020
Senior bonds
18,009
47,404
2,131,734
2,197,147
28,683
147,232
3,320,977
1,563,173
5,060,065
70,700
1,753,694
1,824,394
20,568
20,568
165,000
603,295
809,431
67,555,749
17,106,197
31,335,596
14,222,235
2,360,399
132,580,176
The Bank
Up to
1 month
RM000
1 to 3
months
RM000
2011
3 to 12
months
RM000
1 to 5
years
RM000
Over 5
years
RM000
Total
RM000
39,616,548
9,778,952
13,780,736
3,070,681
66,246,917
2,816,489
2,979,637
65,842
5,861,968
327,534
327,534
1,809,911
1,809,911
Liabilities
Other liabilities
- Inflow
(6,963,395)
(5,089,993)
(6,715,741)
(2,777,027)
(21,546,156)
- Outflow
6,987,735
5,097,474
6,890,479
2,927,409
21,903,097
22,814
30,968
99,641
315,533
468,956
Senior bonds
17,181
17,182
1,053,803
1,088,166
16,975
60,475
1,992,825
2,070,275
9,617
2,317,155
2,326,772

35,350
1,718,150
1,753,500
44,617,636
12,840,811
16,551,119
8,301,374
82,310,940
175
Financial Section
Notes
(continued)

The following table presents the contractual expiry by maturity of the Groups and Banks commitments and
contingencies:
Less than
1 year
RM000
Over
1 year
RM000
Total
RM000
444,051
548,528
17,750,840
9,200,627
27,944,046
12,720,869
12,720,869
444,051
548,528
30,471,709
9,200,627
40,664,915
559,290
472,183
17,617,166
9,296,768
27,945,407
12,488,631
12,488,631
559,290
472,183
30,105,797
9,296,768
40,434,038
435,503
525,431
16,631,310
9,200,627
26,792,871
9,341,832
9,341,832
435,503
525,431
25,973,142
9,200,627
36,134,703
195,694
254,101
9,707,861
6,600,684
16,758,340
5,109,037
5,109,037
195,694
254,101
14,816,898
6,600,684
21,867,377
The Group
2012
Short-term self liquidating trade related contingencies
Irrevocable commitments to extend credit
Total commitments and contingencies
2011
The Bank
2012
2011
Undrawn loan commitments are recognised at activation stage and include commitments which are unconditionally
cancellable by the Group and the Bank. The Group and the Bank expect that not all of the contingent liabilities
and undrawn loan commitments will be drawn before expiry.

176
Financial Section
Notes
(continued)
(d) Credit risk

(i) Maximum exposure to credit risk

The maximum exposure to credit risk for financial assets recognised in the statements of financial position
is their carrying amounts. For contingent liabilities, the maximum exposure to credit risk is the maximum
amount that the Group and the Bank would have to pay if the obligations of the instruments issued are
called upon. For credit commitments, the maximum exposure to credit risk is the full amount of the
undrawn credit facilities granted to customers. The table below shows the maximum exposure to credit
risk for the Group and the Bank:
The Group
2012
RM000
2011
RM000
23,211,860
35,313,623
590,521
86
Credit risk exposure relating to on-statement of financial position assets:

Short-term funds and placements with banks and other financial
institutions (exclude cash in hand)
Financial assets and investments portfolios (exclude shares):
21,744,956
6,023,147
8,460,467
5,614,668
3,570,177
7,787,412
88,193,091
81,455,336
Other assets
445,811
653,124
Derivative assets
955,350
790,162
147,172,233
137,637,558
Total maximum credit risk exposure

Credit risk exposure relating to off-statement of financial position items:
40,664,915
40,434,038
187,837,148
178,071,596
177
Financial Section
Notes
(continued)
(d) Credit risk (continued)

(i) Maximum exposure to credit risk (continued)
The Bank
2012
RM000
2011
RM000
21,840,772
23,138,694
590,521
86
17,685,379
4,471,896
6,938,954
2,222,156
Credit risk exposure relating to on-statement of financial position assets:

Short-term funds and placements with banks and other financial
institutions (exclude cash in hand)
Financial assets and investments portfolios (exclude shares):
3,714,864
7,922,570
75,997,167
38,548,822
Other assets
331,782
230,217
615,390
844,671
Derivative assets
1,027,682
802,776
128,742,511
78,181,888
36,134,703
21,867,377
164,877,214
100,049,265
Credit risk exposure relating to off-statement of financial position items:

(ii) Collaterals

The main types of collateral obtained by the Group and the Bank are as follows:

(a) Fixed deposits, Mudharabah General Investment Account, negotiable instrument of deposits, foreign
currency deposits and cash deposits/margins
(b) Land and buildings
(c) Aircrafts, vessels and automobiles
(d) Quoted shares, unit trust, Malaysian Governments Bonds and securities and private debt securities
(e) Endowment life policies with cash surrender value
(f) Other tangible business assets, such as inventory and equipment

The Group and the Bank also accept non-tangible securities such as support, guarantees from individuals,
corporates and institutions, bank guarantees, debentures, assignment of contract payments, which are
subject to internal guidelines on eligibility.
The financial effect of collateral (quantification to the extent to which collateral and other credit
enhancements mitigate credit risk) held for loans, advances and financing for the Group and the Bank is
76.43% (2011: 72.30%) and 75.20% (2011: 66.03%) respectively. The financial effects of collateral
held for the remaining on-statement of financial position financial assets are insignificant.
178
Financial Section
Notes
(continued)
(iii) Credit quality

The Group and the Bank assess credit quality of loans and advances using internal rating techniques
tailored to the various categories of products and counterparties. These techniques have been developed
internally and combine statistical analysis with credit officers judgment.
The credit quality of financial assets other than loans, advances and financing are determined based on
the ratings of counterparties as defined by Moodys or equivalent ratings of other internationals rating
agencies as defined below:
-
AAA to AA3
A1 to A3
Baa1 to Baa3
P1 to P3
(a)


Loans, advances and financing are summarised as follows:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Neither past due nor impaired
78,831,489
72,916,074
68,368,939
36,006,000
Past due but not impaired
10,207,563
9,190,058
8,344,134
2,809,181
1,532,014
1,915,401
1,310,186
600,800
90,571,066
84,021,533
78,023,259
39,415,981
Fair value changes arising from

fair value hedges
23,852
16,722
Unamortised fair value changes

arising from terminated fair
value hedges
21,570
17,177
14,838
14,438
Individually impaired
Gross loans, advances and
financing
Less: Allowance for impaired

loans, advances and
financing
- Individual assessment
allowance
(541,978)
(793,060)
(463,710)
(154,627)
- Collective assessment
allowance
(1,881,419)
(1,790,314)
(1,593,942)
(726,970)
88,193,091
81,455,336
75,997,167
Net loans, advances and

financing
38,548,822
179
Financial Section
Notes
(continued)
(iii) Credit quality (continued)
(a)

(i)
Loans, advances and financing neither past due nor impaired
Analysis of loans, advances and financing that are neither past due nor impaired analysed
based on the Groups and the Banks credit grading system is as follows:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
52,253,016
29,608,985
43,827,687
25,746,820
Hong Leong Bank Group

Consumer loans/financing
Risk Grade
Good
Weakest
610,550
391,613
515,060
357,146
52,863,566
30,000,598
44,342,747
26,103,966
Corporates loans/financing
Risk Grade
Credit Quality
Exceptional
663,847
460,080
663,847
460,080
B+
Superior
2,926,146
2,359,916
2,736,543
2,231,360
Excellent
4,765,181
2,213,906
4,247,421
1,908,264
B-
Strong
3,865,527
1,718,236
3,502,932
1,579,696
C+
Good
4,023,771
1,191,087
3,729,729
1,118,613
Satisfactory
2,616,186
1,443,663
2,455,746
1,369,365
C-
Fair
3,429,425
660,143
3,225,433
628,200
D+
Adequate
1,707,464
484,629
1,582,002
482,947
Marginal
Un-graded
508,354
34,315
497,734
34,315
1,462,022
105,332
1,384,805
89,194
25,967,923
10,671,307
24,026,192
9,902,034
180
Financial Section
Notes
(continued)
(a)
Loans, advances and financing (continued)

(i)
Loans, advances and financing neither past due nor impaired (continued)
Attributable from subsidiaries: EON Bank Berhad Group

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Risk Grade
Credit Quality
1-3
Good
6,935,550
4-5
Average
805,311
Weakest
631,560
13,895,628
22,268,049
1,854,216
3-4
3,100,737
5-6
3,812,864
1,185,531
22,772
9,976,120
78,831,489
72,916,074
68,368,939
36,006,000
Un-graded
Risk Grade
Credit Quality
1-2
Good
7-8
9
Weakest
Total neither past due nor

impaired
181
Financial Section
Notes
(continued)
(a)

(ii)
Loans, advances and financing past due but not impaired
A financial asset is defined as past due when the counterparty has failed to make a principal
or interest payment when contractually due.
Loans, advances and financing less than 90 days past due are not considered impaired, unless
other information is available to indicate the contrary. Gross amount of loans, advances and
financing by class to customers that were past due but not impaired were as follows:
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
Past due less than 30 days
6,760,995
6,306,805
5,571,150
1,906,968
Past due 30 to less than 60

days
2,493,751
2,110,685
2,001,550
594,163
Past due 60 to less than 90

days
952,817
772,568
771,434
308,050
10,207,563
9,190,058
8,344,134
2,809,181
Past due but not impaired
(iii) Loans, advances and financing that are determined to be impaired as at 30 June 2012 and
2011 are as follows:
The Group
Gross amount of impaired

loans
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,532,014
1,915,401
1,310,186
600,800
Less: Individual assessment

impairment allowance
(541,978)
(793,060)
(463,710)
(154,627)
Less: Collective assessment

impairment allowance
(538,226)
(490,411)
(436,296)
(139,864)
451,810
631,930
410,180
306,309
Total net amount impaired

loans
182
Financial Section
Notes
(continued)
(b)
Other financial assets
Analysis of other financial assets by rating agency designation (where applicable) as at 30 June
2012, based on Moodys ratings or its equivalent are as follows:
2012
Short-term
funds and
deposits
and
placements
with banks
and other
financial
institutions
RM000
Securities
purchased
under
resale
agreements
RM000
Financial
assets
held-fortrading
RM000
Financial
investments
availablefor-sale
RM000
Financial
investments
held-tomaturity
RM000
Other
assets
RM000
Derivative
assets
RM000
588,405
420,822
3,652,678
443,309
91,937
7,321,722
328,318
1,577,121
655,294
946,285
24,246
943,824
71,517
32,548
9,903
14,355,448
590,521
20,939,022
2,272,670
3,110,782
445,811
136,602
23,211,860
590,521
21,744,956
8,456,196
3,554,091
445,811
955,350
The Group
Neither past due
nor impaired
AAA to AA3
A1 to A3
Baa1 to Baa3
P1 to P3
Non-rated
4,271
16,086
23,211,860
590,521
21,744,956
8,460,467
3,570,177
445,811
955,350
The amount of short-term funds and deposits and placements with banks and other financial
institutions, financial assets and investment portfolios, other assets and derivative assets that are
past due but not impaired is not material.
183
Financial Section
Notes
(continued)
(b)
Other financial assets (continued)
Short-term
funds and
deposits
and
placements
with banks
and other
financial
institutions
RM000
Securities
purchased
under
resale
agreements
RM000
Financial
assets
held-fortrading
RM000
Financial
investments
availablefor-sale
RM000
Financial
investments
held-tomaturity
RM000
Other
assets
RM000
Derivative
assets
RM000
996,570
190,637
1,142,989
273,933
334,883
A1 to A3
5,198,402
131,832
345,227
59,168
Baa1 to Baa3
1,542,605
3,630
147
3,367
27,575,899
86
5,700,678
4,107,048
7,497,393
653,124
389,114
35,313,623
86
6,023,147
5,595,264
7,771,326
653,124
790,162
2011
The Group
Neither past due
nor impaired
AAA to AA3
P1 to P3
Non-rated
19,404
16,086
35,313,623
86
6,023,147
5,614,668
7,787,412
653,124
790,162
184
Financial Section
Notes
(continued)
(b)
Short-term
funds and
deposits and
placements
with banks
and other
financial
institutions
RM000
Securities
purchased
under
resale
agreements
RM000
AAA to AA3
1,551,636
374,872
3,167,041
A1 to A3
7,305,128
328,318
1,516,761
945,035
24,246
32,548
12,038,973
590,521
21,840,772
590,521
2012
Financial
Financial
Financial
assets investments investments
held-foravailableheld-totrading
for-sale
maturity
RM000
RM000
RM000
Other
assets
RM000
Amount
due from
subsidiaries
RM000
297,880
91,595
655,290
925,894
71,277
9,903
16,925,395
1,315,084
3,400,898
331,782
615,390
209,520
17,685,379
6,934,683
3,698,778
331,782
615,390
1,027,682
Derivative
assets
RM000
The Bank
Neither past due

nor impaired
Baa1 to Baa3
P1 to P3
Non-rated
Individually
impaired
4,271
16,086
21,840,772
590,521
17,685,379
6,938,954
3,714,864
331,782
615,390
1,027,682
185
Financial Section
Notes
(continued)
(b)
Short-term
funds and
deposits and
placements
with banks
and other
financial
institutions
RM000
Securities
purchased
under
resale
agreements
RM000
AAA to AA3
1,279,636
71,446
194,653
A1 to A3
4,522,723
121,653
66,615
928,229
16,408,106
23,138,694
2011
Financial
Financial
Financial
assets investments investments
held-foravailableheld-totrading
for-sale
maturity
RM000
RM000
RM000
Other
assets
RM000
Amount
due from
subsidiaries
RM000
Derivative
assets
RM000
170,942
310,038
59,168
8,223
3,367
86
4,278,797
1,960,888
7,751,628
230,217
844,671
421,980
86
4,471,896
2,222,156
7,922,570
230,217
844,671
802,776
The Bank
Neither past due

nor impaired
Baa1 to Baa3
P1 to P3
Non-rated
Individually
impaired
23,138,694
86
4,471,896
2,222,156
7,922,570
230,217
844,671
802,776
(iv) Collateral and other credit enhancements obtained

The Group
Properties

The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
66,177,570
56,875,060
56,819,622
52,886,767
Repossessed properties are made available for sale in an orderly fashion, with the proceeds used to reduce
or repay the outstanding indebtedness. The Group and the Bank generally does not occupy the premises
repossessed for its business use.
9,340,341
13,871,519
Transport, storage and

communications
Finance, insurance, real

estate and business
services
Government and
government agencies
23,211,860
Wholesale and retail
Others
Construction
Electricity, gas and water
Manufacturing
Household
Mining and quarrying
Education, health and

others
Agriculture
20,805
15,196
81,274
1,031
2,758,166
590,521 21,744,956
590,521
8,460,467
195,759
2,309,326
4,583,571
144,682
213,620
778,068
131,418
12,501
91,522
1,012,858
8,727,418
1,247,590
7,319,557
1,943,207
371,634
8,412,312
186,198
1,770,703
Loans,
advances
and
financing
RM000
2012
1,282,446
3,570,177 88,193,091
20,120
- 55,919,168
3,184,843
365,214
Financial
Financial
Financial investments investments
assets heldavailableheld-tofor-sale
maturity
for-trading
RM000
RM000
RM000
- 18,868,484
Short-term
funds and
Securities
placements
with banks
purchased
under
and other
resale
financial
institutions agreements
RM000
RM000
The Group
445,811
445,811
955,350
955,350
Other Derivative
assets
assets
RM000
RM000
147,172,233
1,499,356
55,919,168
1,012,858
22,714,375
43,286,189
1,413,077
7,319,557
2,172,023
1,230,976
8,543,730
198,699
1,862,225
39,672,336
512,832
24,637,107
134,797
3,886,328
1,162,526
76
1,732,597
89,951
6,261,776
61,883
1,192,463
992,579
54,330
17,183
1,500
59,327
128,563
312,304
28,685
56,375
292,113
3,949
38,250
Total onstatement of
Undrawn
Guarantees,
financial
loan endorsements
position commitments
and other
credit risk
and other
contingent
exposures
facilities
items
RM000
RM000
RM000
Credit risk exposure analysed by industry in respect of the Groups and the Banks financial assets, including off-statement of financial position
financial instruments are set out below:
186
Financial Section
Notes

(continued)
86
24,652,646
Government and
government agencies
86
10,660,977

estate and business
services

communications
35,313,623
Others
Construction
Electricity, gas and water
Manufacturing
Household

others
Agriculture
Short-term
funds and
Securities
placements
with banks
purchased
under
and other
resale
financial
RM000
RM000
6,023,147
1,488,759
4,425,393
39,768
54,711
14,516
5,614,668
3,259,379
1,537,403
126,120
18,126
35,706
578,125
27,295
32,514
627,380
7,155,643
1,550,834
6,543,642
2,693,465
391,638
7,094,913
136,772
1,685,404
Loans,
advances
and
financing
RM000
1,010,890
7,787,412 81,455,336
- 52,564,755
4,820,059
2,891,805
19,040
20,147
35,900
461
Financial
Financial
Financial investments investments
assets heldavailableheld-tofor-sale
maturity
for-trading
RM000
RM000
RM000
2011
The Group
653,124
30,662
2,889
362,126
247,832
9,615
790,162
790,162
Other Derivative
assets
assets
RM000
RM000
137,637,558
1,041,552
52,567,644
627,380
34,583,055
27,709,215
1,695,994
6,621,683
2,729,171
1,069,989
7,122,669
136,772
1,732,434
39,402,565
744,861
22,157,927
369,703
3,246,211
866,959
1,632,044
3,572,196
164,880
5,301,252
90,758
1,255,774
1,031,473
24,126
10,840
22,234
89,775
148,026
309,204
86,852
28,478
284,741
6,188
21,009
Undrawn
Guarantees,
financial
loan endorsements
position commitments
and other
credit risk
and other
contingent
exposures
facilities
items
RM000
RM000
RM000
financial instruments are set out below: (continued)
187

Financial Section
Notes

(continued)
9,901,905
Manufacturing
Electricity, gas and

water
Construction

communications

estate and business
services
Household
Others
21,840,772

others
Government and
government agencies 11,938,867
Agriculture
10,433
15,196
45,696
Financial
assets heldfor-trading
RM000
1,031
2,276,157
590,521 17,685,379
590,521
- 15,336,866
Short-term
funds and
Securities
placements
with banks
purchased
under
and other
financial
resale
RM000
RM000
6,938,954
195,759
1,532,757
4,198,041
128,770
178,253
515,694
131,418
12,501
45,761
842,220
7,862,271
1,159,948
7,005,772
1,716,794
228,272
7,837,370
178,595
1,326,123
Loans,
advances
and
financing
RM000
1,163,522
3,714,864 75,997,167
20,120
- 46,676,280
2,400,659
1,294,085
Financial
Financial
investments investments
available
held-tomaturity
for-sale
RM000
RM000
331,782
331,782
615,390
615,390
Amount
Other
due from
assets subsidiaries
RM000
RM000
2012
The Bank
1,027,682
1,027,682
Derivative
assets
RM000
128,742,511
1,380,432
46,676,280
842,220
18,738,961
40,568,022
1,299,151
7,005,772
1,910,243
789,662
7,968,788
191,096
1,371,884
financial
position
credit risk
exposures
RM000
35,173,769
300,550
22,298,293
134,762
3,233,762
1,134,984
1,226,933
89,503
5,649,621
60,118
1,045,243
960,934
37,628
17,083
1,500
59,297
127,480
306,591
26,726
56,375
286,658
3,949
37,647
Undrawn
Guarantees,
loan endorsements
commitments
and other
and other
contingent
facilities
items
RM000
RM000
188
Financial Section
Notes

(continued)
86
9,713,645
Manufacturing

water
Construction

communications

estate and business
services
Government and
government agencies 13,425,049
86
23,138,694
Others
Household

others
Agriculture
Short-term
funds and
Securities
placements
with banks
purchased
under
and other
financial
resale
RM000
RM000
4,471,896
759,481
3,712,415
Financial
assets heldfor-trading
RM000
2,222,156
1,543,760
428,593
38,555
5,754
172,980
32,514
335,954
3,100,263
398,974
3,666,741
495,654
47,909
4,067,301
79,536
603,466
Loans,
advances
and
financing
RM000
672,080
7,922,570 38,548,822
- 25,080,944
4,483,462
3,363,753
19,040
20,147
35,900
268
Financial
Financial
investments investments
availableheld-tomaturity
for-sale
RM000
RM000
230,217
230,217
844,671
844,671
Amount
Other
due from
assets subsidiaries
RM000
RM000
2011
The Bank
802,776
802,776
Derivative
assets
RM000
78,181,888
672,080
25,080,944
335,954
20,211,838
22,196,333
456,569
3,686,888
501,408
256,789
4,067,569
79,536
635,980
financial
position
credit risk
exposures
RM000
21,417,582
326,987
15,384,623
7,323
1,223,773
334,955
356,384
85,647
3,206,463
27,587
463,840
449,795
10,210
7,424
432
876
115,692
125,919
7,534
166,648
426
14,634
Undrawn
Guarantees,
loan endorsements
commitments
and other
and other
contingent
facilities
items
RM000
RM000
189

Financial Section
Notes

(continued)
190
Financial Section
Notes
(continued)
47 Fair value of financial instruments

Financial instruments comprise financial assets, financial liabilities and off-statement of financial position financial
instruments. Fair value is the amount at which a financial asset could be exchanged or a financial liability settled,
between knowledgeable and willing parties in an arms length transaction. The information presented herein represents
the estimates of fair values as at the statement of financial position date.

Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted
and observable market prices are not available, fair values are estimated based on a range of methodologies and
assumptions regarding risk characteristics of various financial instruments, discount rates, estimates of future cash
flows and other factors. Changes in the uncertainties and assumptions could materially affect these estimates and the
resulting fair value estimates.

(a) Determination of fair value and fair value hierarchy

Amendments to FRS 7 Financial Instruments: Disclosures - improving disclosures about financial instruments
(effective from 1 July 2011) requires disclosure of fair value measurements by level of a fair value measurement
hierarchy. Comparatives disclosures is not required by the standard.

The Group and the Bank measure fair values using the following fair value hierarchy that reflects the significance
of the inputs used in making the measurements:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Quoted prices for identical or similar instruments in markets that are not active; and model-derived
valuations in which inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.

Level 3: Valuations derived from valuation techniques in which one or more significant inputs are not based on
observable market data.

Financial instruments are classified as Level 1 if their value is observable in an active market. Such instruments
are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the
quoted prices is readily available, and the price represents actual and regularly occurring market transactions.
An active market is one in which transactions occur with sufficient volume and frequency to provide pricing
information on an on-going basis. These would include actively traded listed equities and actively exchangetraded derivatives.

Where fair value is determined using unquoted market prices in less active markets or quoted prices for similar
assets and liabilities, such instruments are generally classified as Level 2.

In cases where quoted prices are generally not available, the Group then determines fair value based upon
valuation techniques that use as inputs, market parameters including but not limited to yield curves, volatilities
and foreign exchange rates. The majority of valuation techniques employ only observable market data and so
reliability of the fair value measurement is high.

Financial instruments are classified as Level 3 if their valuation incorporates significant inputs that are not based
on observable market data (unobservable inputs). Such inputs are generally determined based on observable
inputs of a similar nature, historical observations on the level of the input or other analytical techniques.

191
Financial Section
Notes
(continued)
47 Fair value of financial instruments (continued)
(a)
Determination of fair value and fair value hierarchy (continued)

The Group
Level 1
RM000
2012
Fair value
Level 2
Level 3
RM000
RM000
Total
RM000
Financial Assets
- Money market instrument
- Quoted Securities
- Unquoted Securities
20,964,558
20,964,558
1,889
1,889
780,400
780,400
2,502,093
2,502,093

- Quoted Securities
1,162,865
1,162,865
5,958,373
310,985
6,269,358
142
955,208
955,350
1,164,896
31,160,632
310,985
32,636,513
1,437
1,067,790
1,069,227
2012
Fair value
Level 2
Level 3
RM000
RM000
Total
RM000
Financial Liability
The Bank
Level 1
RM000
Financial Assets
- Quoted Securities
16,986,028
16,986,028
1,889
1,889
699,353
699,353
1,591,545
1,591,545

- Quoted Securities
1,156,975
1,156,975
5,347,408
310,916
5,658,324
142
1,027,540
1,027,682
1,159,006
25,651,874
310,916
27,121,796
1,437
1,124,319
1,125,756
Financial Liability
192
Financial Section
Notes
(continued)
(a)

Determination of fair value and fair value hierarchy (continued)

Reconciliation of fair value measurement in level 3 of the fair value hierachy, as below:
As at 1 July 2011
Effect arising from vesting of Prominos assets over to the Bank
Total gains/losses recognised in statement of income
The Group
The Bank
Financial
investments
available-forsale
RM000
Financial
investments
available-forsale
RM000
227,489
150,401
77,019
(92)
(92)
Net fair value changes recognised in other comprehensive income
83,888
Sales
83,888
(300)
(300)
As at 30 June 2012
Total gain/losses recognised in other comprehensive income relating to
assets held on 30 June 2012
310,985
310,916
83,796
83,796
(b) Financial Instruments not measured at fair value

The table below summarises the carrying amounts and fair values of those financial assets and liabilities not
presented on the Groups and Banks statements of financial position at their fair values:

The Group
The Bank
Carrying
amount
RM000
Fair
Value
RM000
Carrying
amount
RM000
Fair
Value
RM000
3,374,972
3,382,261
3,623,759
3,610,194
295,226
293,700
191,125
190,215
88,193,091
89,072,630
75,997,167
75,987,427
91,863,289
92,748,591
79,812,051
79,787,836
2012
Financial Assets
- Money market
- Unquoted securities
Financial Liabilities
123,095,643
123,585,591
108,939,695
109,361,845
Senior bonds
1,907,793
1,943,282
1,907,793
1,943,282
4,389,859
4,202,830
4,389,251
4,202,222
1,407,283
1,443,117
1,407,283
1,443,117
574,581
605,013
573,115
603,547
131,375,159
131,779,833
117,217,137
117,554,013
193
Financial Section
Notes
(continued)
(b) Financial Instruments not measured at fair value (continued)

The table below summarises the carrying amounts and fair values of those financial assets and liabilities not
presented on the Groups and Banks statements of financial position at their fair values: (continued)

The Group
The Bank
Carrying
amount
RM000
Fair
Value
RM000
Carrying
amount
RM000
Fair
Value
RM000
81,455,336
81,597,818
38,548,822
38,541,093
2011
Financial Assets
*
Full disclosure of comparative figures are not required as the impact are not significant to the overall financial
statements.
(c) Fair value methodologies and assumptions

Short-term funds and placements with financial institutions

For short-term funds and placements with financial institutions with maturities of less than six months, the
carrying value is a reasonable estimate of fair value. For short-term funds and placements with maturities six
months and above, estimated fair value is based on discounted cash flows using prevailing money market
interest rates at which similar deposits and placements would be made with financial institutions of similar credit
risk and remaining period to maturity.


The fair values of securities purchased under resale agreements with maturities of less than six months
approximate the carrying values. For securities purchased under resale agreements with maturities of six months
and above, the estimated fair values are based on discounted cash flows using market rates for the remaining
term to maturity.

Securities held at fair value through profit or loss, available-for-sale and held-to-maturity

The estimated fair value is generally based on quoted and observable market prices. Where there is no ready
market in certain securities, the Group and the Bank establish the fair value by using valuation techniques.


For floating rate loans, the carrying value is generally a reasonable estimate of fair value. For fixed rate loans,
the fair value is estimated by discounting the estimated future cash flows using the prevailing market rates of
loans with similar credit risks and maturities.


For deposits from customers with maturities of less than six months, the carrying amounts are reasonable
estimates of their fair values. For deposit with maturities of six months and above, fair values are estimated
using discounted cash flows based on prevailing market rates for similar deposits from customers.

194
Financial Section
Notes
(continued)
(c) Fair value methodologies and assumptions (continued)

Deposits and placements of banks and other financial institutions, bills and acceptances payable

The estimated fair values of deposits and placements of banks and other financial institutions, bills and
acceptances payable with maturities of less than six months approximate the carrying values. For the items with
maturities six months and above, the fair values are estimated based on discounted cash flows using prevailing
money market interest rates with similar remaining period to maturities.

Subordinated obligations, senior bonds, stapled securities and capital securities

The fair value of subordinated obligations, senior bonds, stapled securities and capital securities are based on
quoted market prices where available.

Other financial assets and liabilities

The carrying value less any estimated allowance for financial assets and liabilities included in other assets and
liabilities are assumed to approximate their fair values as these items are not materially sensitive to the shift in
market interest rates.

Credit related commitment and contingencies

The net fair value of these items was not calculated as estimated fair values are not readily ascertainable.
These financial instruments generally relate to credit risks and attract fees in line with market prices for similar
arrangements. They are not presently sold nor traded. The fair value may be represented by the present value
of fees expected to be received, less associated costs.

Foreign exchange and interest rate related contracts

The fair values of foreign exchange and interest rate related contracts are the estimated amounts the Group or
the Bank would receive or pay to terminate the contracts at the statement of financial position date.

Non-financial assets and liabilities

Fair value information for non-financial assets and liabilities are excluded as they do not fall within the scope of
FRS 132 which requires the fair value information to be disclosed.

48 Capital adequacy
(i)
The capital adequacy ratios of the Group and the Bank are as follows:
The Group
2012
RM000
The Bank
2011
RM000
2012
RM000
2011
RM000
Tier 1 capital
11,290,923
7,355,273
10,027,637
7,751,858
Tier 2 capital
5,684,358
6,422,026
5,498,203
4,580,458
16,975,281
13,777,299
15,525,840
12,332,316
(2,081,933)
(6,088,873)
Total capital
Less: Investment in subsidiary companies
Less: Investment in associated company
Less: Investment in jointly controlled company
Capital base
(1,540,288)
(1,325,707)
(946,505)
(946,505)
(76,871)
(75,252)
(76,711)
(76,711)
15,358,122
12,376,340
12,420,691
5,220,227
195
Financial Section
Notes
(continued)
48 Capital adequacy (continued)
(i)
The capital adequacy ratios of the Group and the Bank are as follows: (continued)
The Group
2012
RM000
The Bank
2011
RM000
2012
RM000
2011
RM000
Capital ratios
Core capital ratio
11.67%
8.47%
11.70%
11.56% *
Risk-weighted capital ratio
15.88%
14.26%
14.50%
11.56% *
Core capital ratio (net of proposed dividends)
11.30%
8.28%
11.28%
11.19% *
Risk-weighted capital ratio (net of proposed

dividends)
15.50%
14.06%
14.07%
11.19% *
(ii)
As stipulated under BNM Guidelines, the Groups and Banks core capital ratio equals to the risk-weighted capital ratio,
as the deductions of investments in subsidiary companies and associated company and jointly controlled entity from
total capital is in excess of Tier 2 capital.
Components of Tier 1 and Tier 2 capital are as follows:

The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,879,909
1,580,107
1,879,909
1,580,107
Tier 1 capital
Paid up share capital
Share premium
Other reserves
(1)

Deferred tax assets
2,832,383
539,664
2,832,383
539,664
7,237,813
5,917,527
5,916,228
5,011,447
1,396,630
1,394,665
1,396,630
1,394,665
490,292
490,273
488,826
(714,792)
(671,744)
(714,792)
Goodwill
(1,831,312)
Total Tier 1 capital
(63,907)
(1,831,312)
(1,771,547)
(671,744)
(102,281)
-
7,355,273
10,027,637
7,751,858
4,341,165
2,833,327
4,340,557
1,693,352
2,300,000
2,300,000
11,290,923
Tier 2 capital
Subordinated bonds
Capital cumulative subordinated loan
Collective assessment allowance
(2)
Total Tier 2 capital

Total capital
Less: Investment in subsidiary companies
Less: Investment in jointly controlled entity
Total capital base
1,343,193
1,288,699
1,157,646
587,106
5,684,358
6,422,026
5,498,203
4,580,458
16,975,281
13,777,299
15,525,840
12,332,316
(2,081,933)
(6,088,873)
(946,505)
(946,505)
(1,540,288)
(76,871)
15,358,122
(1,325,707)
(75,252)
12,376,340
(76,711)
12,420,691
(76,711)
5,220,227
196
Financial Section
Notes
(continued)
48 Capital adequacy (continued)
(ii)
Components of Tier 1 and Tier 2 capital are as follows: (continued)

Fair value reserve has been excluded from the Banks capital base.

(2)

Excludes collective assessment allowance attributable to loans, advances and financing classified as impaired but not
individually assessed for impairment pursuant to BNMs Guideline on Classification and Impairment Provisions for
Loans/Financing issued on 8 January 2010 and subsequently updated on 26 January 2010 and 17 December 2010.

The Group and the Bank implemented the Basel II - Risk Weighted Assets Computation under the Bank Negara Malaysias
Risk Weighted Capital Adequacy Framework with effect from 1 January 2008.

The Group and the Bank have adopted the Standardised Approach for Credit Risk and Market Risk and Basic Indicator
Approach for Operational Risk computation.

(1)
(iii) Breakdown of risk-weighted assets in the various risk weights:
The Group
Credit risk
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
88,002,494
79,639,163
77,876,878
39,331,761
Market risk
3,373,196
2,925,259
3,172,907
2,120,012
Operational risk
5,344,452
4,241,563
4,639,177
3,707,107
96,720,142
86,805,985
85,688,962
45,158,880
49 Segment reporting

(i) Business segment reporting

The business segment results are prepared based on the Groups internal management reporting reflective of the
organisations management reporting structure.
The various business segments are described below:
Personal Financial Services focuses mainly on servicing individual customers and small businesses. Products and
services that are extended to customers include mortgages, credit cards, hire purchase and others.
Business & Corporate Banking focuses mainly on corporate customers. Products offered include trade financing,
working capital facilities, other term financing and corporate advisory services.
Global Markets refers to the Groups treasury and capital market operations and includes foreign exchange,
money market operations as well as capital market securities trading and investments.
Investment Banking refers to MIMB Investment Bank. It is involved in investment banking, stockbroking business
and related financial services. The disposal of MIMB has been completed on 1 June 2012. With effect from 1
June 2012, MIMB had ceased to be a wholly-owned subsidiary of the Bank.
Overseas Associate refers to Bank of Chengdu Co., Ltd, which is a commercial bank in Chengdu, China that is
principally engaged in corporate, commercial and consumer banking businesses.
Overseas Joint Controlled Entity refers to Sichuan Jincheng Consumer Finance Limited Liability Company,
principally engaged in consumer financing business in Chengdu, China.
197
Financial Section
Notes
(continued)
49 Segment reporting (continued)

(i) Business segment reporting (continued)
The Group
2012
Revenue
- external
- inter-segment
Segment revenue
Overhead expenses
of which:
Depreciation of property
and equipment
Amortisation of
intangible assets
(Allowance for)/Writeback of allowance for
impairment losses on
loans, advances and
financing
Write-back of impairment
losses
Share of results of
associated company
Share of results in jointly
controlled entity
Segment results
Taxation and zakat
Net profit for the financial
year
Business &
Corporate
Banking
RM000
2,513,350
(10,498)
2,502,852
263,291
579,711
843,002
(1,315,737)
(369,954)
Global
Markets
RM000
1,095,286
(569,213)
526,073
(209,212)
Investment
Banking
Division
RM000
Total
RM000
21,766
21,766
3,893,693
3,893,693
(29,993)
(1,924,896)
68,299
10,393
25,342
104,034
41,579
10,741
22,294
74,614
(216,843)
105,105
558
(4,956)
33,975
3,221
462
32,702
216,960
216,960
1,619
1,619
965,316
612,128
320,082
(7,207)
218,579
(111,180)
2,108,898
(460,742)
1,648,156
Segment assets
Unallocated assets
Total assets
62,187,799 26,749,266 60,177,108
- 149,114,173
8,673,089
157,787,262
Segment liabilities
Unallocated liabilities
Total liabilities
66,518,780 35,741,113 33,917,370
- 136,177,263
10,190,688
146,367,951
Other significant segment

items
Capital expenditure

Personal
Financial
Services
RM000
Overseas
Associate
and Jointly
Controlled
Entity
RM000
190,400
37,763
62,449
290,612
Inter-segment transfer is based on internally computed cost of funds.

Note:
1.
Total segment revenue comprises of net interest income, income from Islamic Banking Business and non-interest
income.
2.
Unallocated assets and liabilities are not directly attributed to the business segments and cannot be allocated on a
reasonable basis.
198
Financial Section
Notes
(continued)

(i) Business segment reporting (continued)
The Group
2011
- external
- inter-segment
Segment revenue
Overhead expenses
of which:
Depreciation of property
and equipment
Amortisation of
intangible assets
(Allowance for)/Writeback of allowance for
impairment losses on
loans, advances and
financing
Write-back of impairment
losses
Share of results of
associated company
Share of results in jointly
controlled entity
Segment results
Taxation and zakat
Net profit for the financial
year
Total
RM000
Personal
Financial
Services
RM000
Business &
Corporate
Banking
RM000
1,577,668
138,317
1,715,985
94,977
320,752
415,729
875,694
(459,069)
416,625
3,372
3,372
2,551,711
2,551,711
(873,558)
(172,814)
(160,599)
(4,565)
(1,211,536)
(42,221)
(5,785)
(12,138)
(128)
(60,272)
(14,611)
(3,310)
(7,795)
(46)
(25,762)
(173)
(137,274)
(180,395)
Global
Markets
RM000
43,294
1,002
356
736
2,094
210,992
210,992
663,034
286,565
256,762
(1,366)
(771)
210,221
(771)
1,415,216
(277,770)
1,137,446
Segment assets
Unallocated assets
Total assets
55,135,740 24,139,668 55,153,914
490,654
- 134,919,976
10,578,905
145,498,881
Segment liabilities
Unallocated liabilities
Total liabilities
58,396,666 29,496,052 37,593,284
318,594
- 125,804,596
12,226,520
138,031,116
Other significant segment

items
Capital expenditure

Investment
Banking
Division
RM000
Overseas
Associate
and Jointly
Controlled
Entity
RM000
101,450
8,445
12,512
69
122,476
Inter-segment transfer is based on internally computed cost of funds.

Note:
1.
Total segment revenue comprises of net interest income, income from Islamic Banking Business and non-interest
income.
2.
Unallocated assets and liabilities are not directly attributed to the business segments and cannot be allocated on a
reasonable basis.
199
Financial Section
Notes
(continued)

(ii) Geographical segment reporting

The Group operates in two main geographical areas:

-
Malaysia, the home country of the Group, which includes all the areas of operations in the primary
business segments
Overseas operations, which includes branch, subsidiary, associate and joint venture operations in Singapore,
Hong Kong, China and Vietnam. The overseas operations are mainly in commercial banking and treasury
business.
The Group
Revenue
RM000
Non-current
assets
RM000
3,705,223
2,986,604
2012
Malaysia
Overseas operations
188,470
1,635,460
3,893,693
4,622,064
2,393,965
2,949,440
157,746
1,423,426
2,551,711
4,372,866
2011
Malaysia
Overseas operations
50 Significant events during the financial year

(a) On 1 July 2011, Hong Leong Bank Berhad (HLB) had announced that the whole of the business including all
assets and liabilities of EON Bank Berhad (EBB) have been vested to HLB effective 1 July 2011 (Vesting).

Following the Vesting, EBB has surrendered its banking licence to BNM on 1 July 2011 and has ceased
operations.
On 1 July 2011, all of the direct subsidiaries of EBB including EONCAP Islamic Bank Bhd (EIBB) and MIMB
became direct subsidiaries of HLB.
(b) Pursuant to an internal reorganisation exercise, HLB had, on 1 July 2011, entered into a share sale agreement
(SSA) with HLB Principal Investments (L) Limited (HLBPIL), a wholly-owned subsidiary of HLB, for the
transfer by HLB of its entire equity interest in EBB to HLBPIL (Transfer).

The SSA was completed on 1 July 2011 immediately following the vesting of business from EBB to HLB and
the surrender of EBBs banking licence to BNM.
Upon completion of the internal reorganisation exercise, EBB became a wholly owned subsidiary of HLBPIL,
which is in turn a wholly owned subsidiary of HLB.
(c) On 15 July 2011, EBB changed its name to Promino Berhad and subsequently was converted into a private
limited company on 18 July 2011 and is now known as Promino Sdn Bhd.
(d)
Pursuant to Section 168(3) of the Companies Act 1965,the Companies Commission of Malaysia had on 14
June 2012 granted its approval for HLBVN, a wholly-owned subsidiary of the Bank incorporated in Vietnam, to
have a different financial year end from its holding company. The financial year end of HLBVN is 31 December
2012 as required under the Law on Credit Institutions of Vietnam.
200
Financial Section
Notes
(continued)
50 Significant events during the financial year (continued)

(e)
On 18 October 2011, CIMB, on behalf of HLB, announced that the rights issue of new ordinary shares of
RM1.00 each in HLB to raise gross proceeds of up to RM2,600 million (Rights Shares) had been completed
following the listing of and quotation for 299,802,066 Rights Shares on the Main Market of Bursa Malaysia
Securities Berhad on 18 October 2011. HLB had also fully repaid the RM2.3 billion Tier 2 Capital Cumulative
Subordinated Loan extended by HLFG on the same date.
(f)
On 24 October 2011, HLB announced that the High Court of Malaya had granted:
(g)
(i)
its approval for the Scheme of Arrangement for the transfer of the entire business of EIBB to HLISB, both
wholly-owned subsidiaries of HLB; and
(ii)
a vesting order for the transfer of the entire assets, liabilities, activities, business and undertaking of the
Islamic banking business of EIBB to HLISB with effect from 1 November 2011.
On 6 March 2012, HLB announced that it had placed the following dormant wholly-owned subsidiaries under
members voluntary winding-up pursuant to Section 254(1)(b) of the Companies Act, 1965:
1)
2)
3)
4)
5)
6)
7)
EFB Berhad;
OFB Berhad;
CFB Nominees (Tempatan) Sdn Bhd;
Perkasa Nominees (Tempatan) Sdn Bhd;
CFB Asa Berhad;
Oriental Nominee (Tempatan) Sdn Bhd; and
PFB Asa Berhad
On 26 June 2012, HLB announced that the liquidator of CFB Nominees (Tempatan) Sdn Bhd and Oriental
Nominees (Tempatan) Sdn Bhd (Subsidiaries) had convened final meetings for the respective Subsidiaries to
conclude the members voluntary winding-up of the respective Subsidiaries.
The Return by Liquidator Relating To Final Meeting of the respective Subsidiaries was lodged on 26 June 2012
with the Companies Commission of Malaysia and the Official Receiver, and on the expiration of 3 months after
the said lodgement date, the Subsidiaries will be dissolved.
(h)
On 10 April 2012, HLB entered into the following:

(i)
a conditional sale and purchase agreement with Hong Leong Capital Berhad (HLCB) for the proposed
disposal of the entire equity interest in MIMB (MIMB SPA) for an indicative cash consideration of
RM157.90 million (Proposed Disposal of MIMB);
(ii)
a letter of indemnity from HLB to HLCB pursuant to the MIMB SPA; and
(iii) a conditional sale and purchase agreement with HLCB for the proposed acquisition of the entire equity
interest in Hong Leong Investment Bank Berhad (HLIB) (HLIB SPA) for a sum equal to the net tangible
assets of HLIB as at the date immediately preceding the completion date of the HLIB SPA.

The Proposed Disposal of MIMB was completed on 1 June 2012. With effect from 1 June 2012, MIMB had
ceased to be a wholly-owned subsidiary of HLB.
Following from the certification by the Auditors of the Completion Net Tangible Assets (NTA), the final
consideration in respect of the acquisition of MIMB has been determined at RM139.29 million. On 14 August
2012, HLB had paid the sum of RM18.61 million to HLCB, being the differential amount between the final
consideration and the indicative consideration of RM157.90 million.
(i)
On 20 April 2012, HLB completed its inaugural US dollar senior unsecured notes issuance of USD300 million
(the Senior Notes) under its Euro Medium Term Note Programme of up to USD1.5 billion (or its equivalent in
other currencies) in nominal value (the Programme) which was established on 9 April 2012.
The Senior Notes are rated A3 by Moodys Investors Service and BBB+ by Fitch Ratings. The Senior Notes will
have a tenor of five years, maturing on 19 April 2017. The Senior Notes will pay a coupon of 3.125% per annum
which is equivalent to a yield to investors of 3.269% (5-year US Treasury + 238bps).
201
Financial Section
Notes
(continued)
50 Significant events during the financial year (continued)

(j)
On 22 June 2012, HLB successfully completed its issuance of Tier-2 Subordinated Notes (Sub Notes) of
RM1.5 billion.
The Sub Notes are rated AA2 by RAM Rating Services Berhad. The Sub Notes has a maturity date of 12 years
from the issue date and are callable on any interest payment date falling on or after the 7th anniversary of the
issue date. A semi-annual coupon of 4.50% per annum is payable on the Sub Notes. The exercise of the call
option on the Sub Notes shall be subject to the approval of BNM.
51 Subsequent events after the financial year

(a) On 26 July 2012, HLB proposed to establish a new executive share option scheme (ESOS) of up to 10% of
the issued and paid-up share capital of HLB (excluding treasury shares)(Proposed New ESOS).

The Proposed New ESOS is subject to the following:
(i)
approval-in-principle of Bursa Malaysia Securities Berhad (Bursa Securities) for the listing of and quotation
for the new HLB shares to be issued pursuant to the exercise of the options under the Proposed New
ESOS; and

(ii) approval of the shareholders of HLB.
(b)
Bursa Securities had, via its letter dated 18 September 2012, resolved to approve the listing of such number
of additional new ordinary shares of RM1.00 each, representing up to 10% of the issued and paid-up ordinary
share capital of HLB, to be issued pursuant to the exercise of options under the Proposed New ESOS.

52 Equity compensation benefits

Executive Share Option Scheme (ESOS or Scheme)
The Executive Share Option Scheme (ESOS) of up to fifteen percent (15%) of the issued and paid-up ordinary share
capital of the Bank, which was approved by the shareholders of the Bank on 8 November 2005, was established on
23 January 2006 and would be in force for a period of ten (10) years.
On 18 January 2006, the Bank announced that Bursa Malaysia Securities Berhad had approved-in-principle the listing
of new ordinary shares of the Bank to be issued pursuant to the exercise of options under the ESOS at any time during
the existence of the ESOS.
The ESOS would provide an opportunity for eligible executives who had contributed to the growth and development
of the Group to participate in the equity of the Bank.
The main features of the ESOS are, inter alia, as follows:

1.
Eligible executives are those executives of the Group who have been confirmed in service on the date of offer or
directors (executive or non-executive) of the Bank and its subsidiaries. The maximum allowable allotments for the
full time Executive Directors had been approved by the shareholders of the Bank in a general meeting. The Board
may from time to time at its discretion select and identify suitable eligible executives to be offered options.
2.
The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the issued and paid-up
ordinary share capital of the Bank for the time being.
3.
The Scheme shall be in force for a period of ten (10) years from 23 January 2006.
4.
The option price shall not be at a discount of more than ten percent (10%) (or such discount as the relevant
authorities shall permit) from the 5-day weighted average market price of the shares of the Bank preceding the
date of offer and shall in no event be less than the par value of the shares of the Bank.
5.
The options granted to an option holder under the ESOS is exercisable by the option holder only during his
employment with the Bank Group and within the option exercise period subject to any maximum limit as may
be determined by the Board under the Bye-Laws of the ESOS.
6.
The exercise of the options may, at the absolute discretion of the Board of Directors of the Bank, be satisfied by
way of issuance of new shares; transfer of existing shares purchased by a trust established for the ESOS; or a
combination of both new shares and existing shares.
202
Financial Section
Notes
(continued)
52 Equity compensation benefits (continued)

The Bank granted the following conditional incentive share options to eligible executives of the Bank pursuant to the
ESOS of the Bank:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

250,000 share options at an exercise price of RM5.75 (granted and lapsed in financial year ended 2009);
200,000 share options at an exercise price of RM7.49;
1,000,000 share options at an exercise price of RM10.55; and
1,151,408 share options arising from adjustment for rights issue (per terms of approved ESOS Bye-Laws).
The said share options, if vested, will be satisfied by the transfer of existing shares purchased by a trust established
for the ESOS.
Pursuant to this, a trust has been set up for the ESOS and it is administered by an appointed trustee. The trustee
will be entitled from time to time to accept financial assistance from the Bank upon such terms and conditions as the
Bank and the trustee may agree to purchase the Banks shares from the open market for the purposes of this trust.
In accordance to FRS 132, the shares purchased for the benefit of the ESOS holdings are recorded as Treasury
Shares in the equity on the statement of financial position. The cost of operating the ESOS scheme is charged to the
statement of income.
The trustee will manage the trust in accordance with the trust deed. Upon termination of the trust, the trustee will
dispose all remaining trust shares, if any, and deal with any surplus or deficit of the trust in accordance with the
instructions of the Bank.
The number and market values of the ordinary shares held by the Trustee are as follows:
2012
Number of
trust shares
held
000
48,000
2011
Market
value
RM000
Number of
trust shares
held
000
Market
value
RM000
597,120
44,892
600,655
203
Financial Section
Notes
(continued)

The ordinary share options of the Bank granted under the ESOS are as follows:
(a)
4,500,000 share options at an exercise price of RM5.72 (exercise price adjusted to RM5.44 for rights issue):

30 June 2012

As at
1-Jul-11
Adjustment
for
Rights Issue
Lapse/
cessation
Expiry date
29 August 2007
August 2011*
350,000
(350,000)
29 August 2007
August 2012*
1,120,000
5,063
(1,409) (1,123,654)
1,470,000
5,063
(1,409) (1,473,654)
Exercised
As at
30-Jun-12
Grant date

30 June 2011

As at
1-Jul-10
Lapse/
cessation
August 2010*
60,000
(60,000)
29 August 2007
August
2011*
1,400,000
(1,050,000)
29 August 2007
August 2012*
1,400,000
(280,000)
2,860,000
(280,000) (1,110,000)
Grant date
Expiry date
29 August 2007
Exercised
As at
30-Jun-11
350,000
1,120,000
1,470,000
The exercise period is up to 12 months from the date of notification of entitlement (Vesting Date)
The estimated fair value of each share option granted is between RM0.87 to RM1.01 per option. This was
calculated using the Black-Scholes model. The model inputs were the share price at grant date of RM5.85,
exercise price of RM5.44, expected volatility of 24%, expected yield of 4% and a risk free interest rate of 4%.
(b)
30 June 2012
Adjustment
for
Rights Issue
Lapse/
cessation
(832,000)
Grant date
Expiry date
As at
1-Jul-11
30 April 2008
October 2011^
832,000
30 April 2008
October 2012#
612,000
31,946
(643,946)
30 April 2008
January 2012*
4,760,000
248,472
(1,060,618) (1,102,573)
2,845,281
30 April 2008
January 2013^
4,760,000
248,472
(1,060,618)
3,947,854
30 April 2008
January 2014#
2,380,000
124,236
(530,309)
1,973,927
13,344,000
653,126
Exercised
(2,651,545) (2,578,519)
As at
30-Jun-12
8,767,062
204
Financial Section
Notes
(continued)
(b)
21,800,000 share options at an exercise price of RM6.05 (exercise price adjusted to RM5.75 for rights issue)
(continued):
30 June 2011

As at
1-Jul-10
Lapse/
cessation
Expiry date
30 April 2008
October 2010*
862,000
30 April 2008
October 2011^
1,416,000
30 April 2008
October 2012#
708,000
(96,000)
612,000
30 April 2008
January 2012*
5,880,000
(1,120,000)
4,760,000
30 April 2008
January 2013^
5,880,000
(1,120,000)
4,760,000
30 April 2008
January 2014#
2,940,000
(560,000)
2,380,000
17,686,000
*
^
#

(192,000)
Exercised
As at
30-Jun-11
Grant date
(862,000)
(392,000)
832,000
(3,088,000) (1,254,000) 13,344,000
The exercise period is from 13th month to 18th month from the Vesting Date
(c)

30 June 2012

As at
1-Jul-11
Adjustment
for
Rights Issue
Lapse/
cessation
Exercised
As at
30-Jun-12
Grant date
Expiry date
10 June 2008
October 2011^
143,960
(7,200)
(136,760)
10 June 2008
October 2012#
284,040
11,898
(61,050)
(234,888)
10 June 2008
January 2012*
2,451,400
127,963
(1,466,754)
(666,821)
10 June 2008
January 2013^
2,451,400
127,963
(1,466,754)
10 June 2008
January 2014#
1,225,700
63,982
(733,377)
6,556,500
331,806
(3,735,135) (1,038,469)
445,788
1,112,609
556,305
2,114,702
205
Financial Section
Notes
(continued)
(c)
12,835,000 share options at an exercise price of RM5.99 (exercise price adjusted to RM5.69 for rights issue)
(continued):
30 June 2011
Grant date
Expiry date
As at
1-Jul-10
Lapse/
cessation
10 June 2008
October 2010*
205,880
(205,880)
10 June 2008
October 2011^
582,480
(438,520)
143,960
10 June 2008
October 2012#
291,240
(7,200)
284,040
10 June 2008
January 2012*
2,577,400
(126,000)
2,451,400
10 June 2008
January 2013^
2,577,400
(126,000)
2,451,400
10 June 2008
January 2014#
1,288,700
(63,000)
1,225,700
7,523,100
(322,200)
*
^
#

Exercised
(644,400)
As at
30-Jun-11
6,556,500
(d)
200,000 shares options at an exercise price of RM7.49 (exercise price adjusted to RM7.12 for rights issue):

30 June 2012

As at
1-Jul-11
Adjustment
for
Rights Issue
Lapse/
cessation
Expiry date
25 February 2010
October 2012#
7,200
376
25 February 2010
January 2012*
56,000
2,923
(11,785)
25 February 2010
January 2013^
56,000
2,923
(11,785)
47,138
25 February 2010
January 2014
28,000
1,462
(5,892)
23,570
147,200
7,684
(29,462)
Exercised
As at
30-Jun-12
Grant date
(7,576)
(47,138)
(54,714)
70,708
206
Financial Section
Notes
(continued)
(d)
200,000 shares options at an exercise price of RM7.49 (exercise price adjusted to RM7.12 for rights issue)
(continued):
30 June 2011
Grant date
25
25
25
25
25
*
^
#

February
February
February
February
February
Expiry date
2010
2010
2010
2010
2010
October
October
January
January
January
2011^
2012#
2012*
2013^
2014#
As at
1-Jul-10
Lapse/
cessation
14,400
7,200
56,000
56,000
28,000
161,600
Exercised
(14,400)
(14,400)
As at
30-Jun-11
7,200
56,000
56,000
28,000
147,200
calculated using the Black-Scholes model. The model inputs were the share price at grant date of RM7.49, exercise
price of RM7.12, expected volatility of 18.8%, expected yield of 4% and a risk free interest rate of 4%.
(e)
3,095,000 shares options at an exercise price of RM9.14 (exercise price adjusted to RM8.69 for rights issue):

30 June 2012

Grant date
Expiry date
23 September 2010 January 2012*

23 September 2010 January 2013^
#
23 September 2010 January 2014
Adjustment
for
Rights Issue
Lapse/
cessation
Exercised
(256,736)
1,178,000
61,492
(707,920)
1,178,000
61,492
(707,920)
589,000
2,945,000
30,745
153,729
(353,960)
(1,769,800)
As at
1-Jul-10
Granted
Lapse/
cessation
1,238,000
1,238,000
619,000
3,095,000
As at
30-Jun-12
274,836
531,572
(256,736)
265,785
1,072,193
Exercised
As at
30-Jun-11
1,178,000
1,178,000
589,000
2,945,000
30 June 2011
Grant date
Expiry date
23 September 2010
23 September 2010
23 September 2010
January 2012*
January 2013^
January 2014#
*
^
#

As at
1-Jul-11
(60,000)
(60,000)
(30,000)
(150,000)
The estimated fair value of each share option granted is between RM0.85 to RM1.19 per option. This was calculated
using the Black-Scholes model. The model inputs were the share price at grant date of RM9.00, exercise price of
RM8.69, expected volatility of 18.857%, expected yield of 3.341% and a risk free interest rate of 3.237%.
207
Financial Section
Notes
(continued)
(f)
1,000,000 shares options at an exercise price of RM10.55:
30 June 2012
As at
1-Jul-11
Granted
April 2014*
500,000
January 2015^
Grant date
Expiry date
27 October 2011
27 October 2011
Exercised
As at
30-Jun-12
500,000
500,000
500,000
1,000,000
1,000,000
Lapse/
cessation
* The exercise period is up to 6 months from the date of notification of entitlement (Vesting Date)
^ The exercise period is from 13th month to 18th month from the Vesting Date
The estimated fair value of each share option granted is between RM1.34 and RM1.60 per share. This was calculated
using the Black-Scholes model. The model inputs were the share price at grant date of RM10.58, exercise price of
RM10.55, expected volatility of 21%, expected yield of 4% and a risk free interest rate of 3%.
53 Critical accounting estimates and judgements in applying accounting policies

The Group and the Bank make estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, rarely equal the related actual results. To enhance the information content of the estimates, certain
key variables that are anticipated to have material impact to the Groups and the Banks results and financial position are
tested for sensitivity to changes in the underlying parameters. The estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are outlined
below:
(a) Allowance for impairment on loans, advances and financing

The Group and the Bank review their loan portfolios to assess impairment at least on a quarterly basis. It is
the policy of the Group and the Bank to establish, through charges against profit, individual and collective
assessment impairment allowances in respect of estimated and inherent credit losses in their portfolio.
In determining individual assessment impairment allowances for loans/financing above the set threshold,
management considers objective evidence of impairment and exercises judgement in estimating cash flows and
collateral value. Whilst, managements judgement is guided by the relevant BNM guidelines, judgement is made
in estimation of the amount and timing of future cash flows in assessing allowance for impairment of financial
assets. Among the factors considered are the net realisable value of the underlying collateral value, the viability of
the customers business model and the capacity to generate sufficient cash flow to service debt obligations.
(b) Impairment of goodwill

The Group perform an impairment review on an annual basis to ensure that the carrying value of the goodwill
does not exceed its recoverable amount from the CGU to which the goodwill is allocated. The recoverable
amount represents the present value of the estimated future cash flows expected to arise from continuing
operations. Therefore, in arriving at the recoverable amount, management exercises judgement in estimating the
future cash flows, growth rate and discount rate.
54
General information
The Bank is a public limited liability company that is incorporated and domiciled in Malaysia. The registered office is at Level
8, Wisma Hong Leong, 18, Jalan Perak, 50450 Kuala Lumpur, Malaysia.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
Directors on 26 July 2012.
208
Financial Section
Notes
(continued)
55
Business combinations
a) Acquisition of assets and liabilities of EON Capital Berhad (ECB)

As allowed by FRS 3 Business Combinations, the Group had previously accounted for the acquisition of the assets
and liabilities of ECB using the provisional fair values for the financial year ended 30 June 2011.
During the financial year, the Group has completed its allocation of cost of business combination to the assets
acquired and liabilities and contingent liabilities assumed. The fair value adjustments and intangible assets identified
on acquisition are based on finalised purchase price allocation and fair value exercise.
As required by FRS 3, the fair values of assets and liabilities arising from the acquisition of the assets and liabilities
of ECB on 6 May 2011 have been restated and are set out as follows:
Provisional
fair value
RM000
Fair value
adjustments
RM000
Adjusted
fair value
RM000
9,789,918
9,789,918
Deposits and placements with banks and

other financial institutions
734,442
734,442
522,937
522,937
53,496
3,712,779

3,659,283
149,985
(33,136)
116,849
37,592,224
(495,421)
37,096,803
Other assets
423,729
Deferred tax assets (Note 17)
210,836
Statutory deposits with BNM
689,667
Property and equipment (Note 15)

Intangible assets (Note 16)
Deposits and placements with banks and
other financial institutions
Bills and acceptance payable
16,441
(263,503)
440,170
(52,667)
689,667
273,050
50,806
323,856
43,907
278,810
322,717
(41,990,573)
(41,990,573)
(5,011,594)
(5,011,594)
(405,257)
(405,257)
Other liabilities
(1,017,985)
70,359
Subordinated bonds
(1,156,879)
(52,577)
(1,209,456)
Innovative Tier 1 Capital securities
(495,496)
(96,413)
(591,909)
Dividend payable
(311,944)
Total identifiable net assets

Goodwill (not deductible for income tax purposes)
3,700,250
(471,138)
(947,626)
(311,944)
3,229,112
1,831,312
1,831,312
RM000
Consideration
Cash
5,060,424
Total consideration
5,060,424
Cash inflow on acquisition
4,729,494
209
Financial Section
Notes
(continued)
55
Business combinations (continued)

b) Vesting of assets and liabilities of EON Bank Berhad (EBB)

The vesting of EBBs assets and liabilities to the Bank is a combination between businesses or entities under common
control. As there is no guidance in the Financial Reporting Standards (FRS) on the accounting treatment for
combinations among entities under common control, the Bank has applied predecessor accounting, whereby the
Bank has incorporated the predecessor carrying values of EBBs assets and liabilities as at 1 July 2011. No new
goodwill arises in predecessor accounting. The comparative financial statements for financial year ended 30 June
2011 are also not restated.
The assets and liabilities of EBB vested to the Bank as at 1 July 2011:
Acquirees
carrying
amount as at
vesting date
RM000

Deposits and placements with banks and other financial institutions
694,642
379,713

Other assets
2,185,386
117,169
32,036,096
415,492
Deferred tax assets
(87,226)
Statutory deposits with BNM
859,947
Investment in subsidiaries
1,046,786
269,396
Intangible assets
368,125
Goodwill
354,938

Deposits and placements with banks and other financial institutions
(35,246,138)
(4,976,802)
Bills and acceptance payable
(276,461)
Other liabilities
(757,480)
Subordinated bonds
Innovative Tier 1 Capital securities
Net assets vested to the Bank

8,213,335
(1,196,973)
(597,816)
3,802,129
The consideration was satisfied via cash settlement of RM3,802,129,000. The cash and short-term funds transferred
to the Bank were RM8,213,335,000.
210
Financial Section
Notes
(continued)
56 Prior year adjustments

During the financial year, the Group finalised the fair value exercise and purchase price allocation in respect of the acquisition
of the assets and liabilities of ECB as allowed by FRS 3.
Group
As Previously
reported
RM000
As at 30 June 2011
FRS 3
adjustment
RM000
As
restated
RM000
As at 30 June 2011
Statement of financial position
5,954,139
53,496
6,007,635
7,820,548
(33,136)
7,787,412
81,950,757
(495,421)
81,455,336

Other assets
951,929

Goodwill
16,441
968,370
646,605
50,661
697,266
1,360,174
471,138
1,831,312
Deferred tax assets
325,935
(262,028)
Intangible assets
106,365
273,057
379,422
Other liabilities
2,865,019
69,113
2,934,132
Tier 2 Subordinated bonds
2,858,493
47,085
2,905,578
92,651
595,720
503,069
Taxation
197,343
(137,159)
63,907
60,184
Total assets
145,424,673
74,208
145,498,881
Total liabilities
137,959,426
71,690
138,031,116
Total equity
Total equity and liabilities
7,465,247
2,518
7,467,765
145,424,673
74,208
145,498,881
3,983,356
2,518
3,985,874
(1,608,312)
9,254
(1,599,058)
(52,628)
5,492
(47,136)
(6,392)
3,762
(2,630)
Statement of changes in equity

Retained profits
Statement of income
Interest expense
of which: Tier 2 Subordinated bonds
Innovative Tier 1 capital
Overhead expenses
of which: Depreciation of property, plant and Equipment
Taxation and zakat
(1,205,638)
(5,898)
(1,211,536)
(60,127)
(145)
(60,272)
(20,009)
(5,753)
(25,762)
(276,932)
(838)
(277,770)
(271,968)
(2,313)
(274,281)
of which: Malaysia income tax

- Current year
Transfer to deferred tax
- Current year
3,171
1,475
4,646
211
Financial Section
Notes
(continued)
57
Goodwill
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,360,174
471,138
Cost
As at 1 July
1,831,312
1,360,174
Fair value adjustments on completion of business

471,138
1,771,547
1,831,312
1,831,312
1,771,547

As at 30 June
Allocation of goodwill to cash-generating units

Goodwill has been allocated to the following cash-generating-units (CGUs).

The Group
Personal Financial Services

Business & Corporate Banking
Global Markets
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
1,188,705
1,188,705
1,149,911
479,437
479,437
463,791
163,170
163,170
157,845
1,831,312
1,831,312
1,771,547
Impairment test for goodwill

The recoverable amount of CGUs is determined based on value-in-use calculations. These calculations use pre-tax
cash flow projections based on the budget for the financial year ending 2013, which is approved by the Board of
Directors. There is a further projection of 4 years based on the average to year historical Gross Domestic Product
(GDP) growth of the country covering a five year period, revised for current economic conditions. Cash flows
beyond the 5 year period are extrapolated using an estimated growth rate of 4% for all cash generating units. The
cash flow projections are derived based on a number of key factors including past performance and managements
expectation of market developments. The discount rates used in determining the recoverable amount of all the CGUs
range from 11.68% to 11.87%. The pre-tax discount rate reflects the specific risks relating to the CGUs.

Management believes that no reasonably possible change in any of the key assumptions would cause the carrying
value of any CGU to exceed its recoverable amount.

212
Financial Section
Notes
(continued)
58 Realised and unrealised profits

The determination of realised and unrealised profits is based on the Guidance of Special Matter No. 1, Determination
of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad
Listing Requirements, issued by the Malaysian Institute of Accountants on 20 December 2010 and the directive of
Bursa Malaysia Securities Berhad.
The Group
The Bank
2012
RM000
2011
RM000
2012
RM000
2011
RM000
- Realised
3,323,072
2,609,976
2,969,031
2,240,238
- Unrealised
1,031,292
993,792
1,019,691
972,324
4,354,364
3,603,768
3,988,722
3,212,562
670,989
454,029
Total retained profits of Hong Leong Bank Berhad

and subsidiaries
Total share of retained profits from associated

company
- Realised
Total share of retained profits/(accumulated
losses) from jointly controlled entity
- Realised
Less: Consolidation Adjustment

Total Group's Retained Profits

160
(1,459)
5,025,513
4,056,338
3,988,722
3,212,562
54,751
(70,464)
5,080,264
3,985,874
3,988,722
3,212,562
The Group views translation gains or losses on monetary items as realised as it is incurred in the ordinary course of
business.
The disclosure of realised and unrealised profits/(losses) above is solely for compliance with the directive issued by
the Bursa Malaysia Securities Berhad and should not be used for any other purpose.
213
Financial Section
Statement
by Directors
pursuant to Section 169(15) of the Companies Act, 1965
We, Datuk Yvonne Chia and Mr Choong Yee How, two of the Directors of Hong Leong Bank Berhad, do hereby
state that, in the opinion of the Directors, the financial statements set out on pages 72 to 212 are drawn up so
as to give a true and fair view of the state of affairs of the Group and the Bank as at 30 June 2012 and of the
results and cash flows of the Group and the Bank for the financial year then ended on that date, in accordance
with the provisions of the Companies Act, 1965, the MASB Approved Accounting Standards in Malaysia for
Entities Other Than Private Entities and Bank Negara Malaysia Guidelines.
On behalf of the Board,
Datuk Yvonne Chia Choong Yee How

Kuala Lumpur
18 September 2012
Statutory
declaration
pursuant to Section 169(16) of the Companies Act, 1965
I, Chew Seong Aun, the officer primarily responsible for the financial management of Hong Leong Bank Berhad,
do solemnly and sincerely declare that the financial statements set out on pages 72 to 212 are to the best of
my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be
true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by

)
the abovenamed Chew Seong Aun at
)
Kuala Lumpur in Wilayah Persekutuan on
)
18 September 2012
)
CHEW SEONG AUN

Before me,

TAN SEOK KETT
Commissioner of Oaths
214
Financial Section
Independent
Auditors Report
Report on the Financial Statements

We have audited the financial statements of Hong Leong Bank Berhad on pages 72 to 212 which comprise the statements
of financial position as at 30 June 2012 of the Group and of the Bank, and the statements of income, comprehensive
income, changes in equity and cash flows of the Group and of the Bank for the financial year then ended, and a summary
of significant accounting policies and other explanatory notes, as set out on Notes 1 to 57.
Directors Responsibility for the Financial Statements
The Directors of the Bank are responsible for the preparation of financial statements that give a true and fair view in
accordance with MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities, Companies
Act, 1965 and the Bank Negara Malaysia Guidelines and for such internal control as the Directors determine are necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the entitys preparation of financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with MASB Approved Accounting
Standards in Malaysia for Entities Other Than Private Entities, Companies Act, 1965 and Bank Negara Malaysia Guidelines
so as to give a true and fair view of the financial position of the Group and of the Bank as of 30 June 2012 and of their
financial performance and cash flows for the financial year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 1965, in Malaysia, we also report the following:
(a)
In our opinion, the accounting and other records and the registers required by the Act to be kept by the Bank and its
subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the
Act.
(b)
We have considered the financial statements and the auditors reports of all the subsidiaries of which we have not
acted as auditors, which are indicated in Note 12 to the financial statements.
(c)
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Banks financial
statements are in form and content appropriate and proper for the purposes of the preparation of the financial
statements of the Group and we have received satisfactory information and explanations required by us for those
purposes.
(d)
The audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse
comment made under Section 174(3) of the Act.
215
Financial Section
Independent
Auditors Report
(continued)
Other Reporting Responsibilities

The supplementary information set out in Note 58 on page 212 is disclosed to meet the requirement of Bursa Malaysia
Securities Berhad and is not part of the financial statements. The Directors are responsible for the preparation of the
supplementary information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised
Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued
by the Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our
opinion, the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance and the
directive of Bursa Malaysia Securities Berhad.
Other Matters
This report is made solely to the members of the Bank, as a body, in accordance with Section 174 of the Companies Act,
1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this
report.
PricewaterhouseCoopers
(No. AF: 1146)
Chartered Accountants
Kuala Lumpur
18 September 2012
ONG CHING CHUAN

(No.2907/11/13 (J))

Chartered Accountant
216
Financial Section
BASEL II
PILLAR 3 DISCLOSURES
1. INTRODUCTION

The capital adequacy ratios of Hong Leong Bank Berhad (HLBB or the Bank) and its banking subsidiaries (the
Group) are computed in accordance with the Bank Negara Malaysias (BNM) revised Risk-Weighted Capital
Adequacy Framework (RWCAF) - Basel II effective from 1 January 2008.

The following information concerning the Groups risk exposures, risk management practices and capital adequacy is
disclosed as accompanying information to the annual report and does not form part of the audited accounts.

2. SCOPE OF APPLICATION

The capital adequacy ratios of the Group consist of capital base and risk-weighted assets derived from consolidated
balances of the Bank and its banking subsidiary Hong Leong Islamic Bank Berhad (HLISB). Islamic Banking business
undertaken by the HLISB refers generally to the acceptance of deposits and granting of financing under the Shariah
principles.

The capital adequacy ratios of the Bank and the Group are computed in accordance with BNMs revised RWCAF
Basel II. The Bank and the Group have adopted the Standardised Approach for Credit Risk and Market Risk, and the
Basic Indicator Approach for Operational Risk.

The Groups capital requirements are generally based on the principles of consolidation adopted in the preparation of
its financial statements, as discussed in Note 2A to the Financial Statements, except where deductions from eligible
capital are required under BNMs RWCAF or where entities meet separation requirements set by BNM.

During the course of the year, the Bank and its banking subsidiaries did not experience any restrictions or other major
impediments on transfer of funds or regulatory capital within the Group.

3. CAPITAL STRUCTURE AND ADEQUACY

The Group monitors the capital adequacy position of the Bank and its banking subsidiaries to ensure compliance
with requirements of BNM and to take prompt actions to address projected capital deficiency. The capital position
is reviewed on a monthly basis by undertaking stress tests and taking into account the levels and trend of material
risks. The sufficiency of capital is assessed against the various risks in the balance sheet as well as future capital
requirements based on the Groups expansion plans.

The Group has also formalised an overall capital management framework, which seeks to ensure that there is an
adequate balance between Tier I and Tier II capital. The Group is also following very closely the global developments
on capital management including BASEL III standard.

The following table sets forth details on the capital resources, capital adequacy ratios and risk-weighted assets for
the Group and the Bank as at 30 June 2012. BNMs revised RWCAF-Basel II sets out the minimum capital adequacy
ratios for the banking institutions and the methodology for calculating these ratios. As at 30 June 2012, the Groups
and the Banks Tier I and the total capital adequacy ratios were higher than BNMs minimum requirements.

217
Financial Section
BASEL II

(continued)
3. CAPITAL STRUCTURE AND ADEQUACY (continued)

(a) The capital adequacy ratios of the Group and the Bank are analysed as follows:
Group
Bank
30 June
2012
30 June
2011
30 June
2012
30 June
2011
Before deducting proposed dividends:

Tier I capital ratio
11.67%
15.88%
8.47%
14.26%
11.70%
14.50%
11.56% *
11.56% *
After deducting proposed dividends:

11.30%
15.50%
8.28%
14.06%
11.28%
14.07%
11.19% *
11.19% *
The components of Tier I and Tier II Capital of the Group and the Bank are as follows:
Group
30 June
2012
RM000
Tier I Capital:
Paid-up share capital
Share premium
Retained profits
Other reserves
Non-Innovative Tier 1 stapled securities
Deferred tax assets
Goodwill
Total Tier I Capital
Tier II Capital:
Collective assessment allowance ^
Subordinated bonds
Capital cumulative subordinated loan
Total Tier II Capital
Total Capital
Less: Investment in subsidiaries companies
Less: Investment in jointly controlled entity
Capital Base
Bank
30 June
2011
RM000
30 June
2012
RM000
30 June
2011
RM000
1,879,909
2,832,383
5,080,264
2,157,549
1,396,630
490,292
13,837,027
(714,792)
(1,831,312)
11,290,923
1,580,107
539,664
3,985,874
1,931,653
1,394,665
490,273
9,922,236
(671,744)
(63,907)
(1,831,312)
7,355,273
1,879,909
2,832,383
3,988,722
1,927,506
1,396,630
488,826
12,513,976
(714,792)
(1,771,547)
10,027,637
1,580,107
539,664
3,212,562
1,798,885
1,394,665
8,525,883
(671,744)
(102,281)
7,751,858
1,343,193
4,341,165
5,684,358
1,288,699
2,833,327
2,300,000
6,422,026
1,157,646
4,340,557
5,498,203
587,106
1,693,352
2,300,000
4,580,458
16,975,281
(1,540,288)
(76,871)
15,358,122
13,777,299
(1,325,707)
(75,252)
12,376,340
15,525,840
(2,081,933)
(946,505)
(76,711)
12,420,691
12,332,316
(6,088,873)
(946,505)
(76,711)
5,220,227
Excludes collective assessment impairment allowance attributable to loans, advances and financing classified as impaired
but not individually assessed for impairment pursuant to BNMs Guideline on Classification and Impairment Provisions for
Loans/Financing issued on 8 January 2010 and subsequently updated on 26 January 2010 and 17 December 2010.
As stipulated under BNM Guidelines, the Groups and Banks core capital ratio equals to the risk-weighted capital ratio,
as the deductions of investments in subsidiary companies, associated company and jointly controlled entity from total
capital is in excess of Tier-2 capital.
218
Financial Section
BASEL II

(continued)

(a) The capital adequacy ratios of the Group and the Bank are analysed as follows: (continued)
On 22 June 2012, the Bank had completed the issuance of RM1.5 billion nominal value of Tier 2 Subordinated
Notes (Sub Notes). The RM1.5 billion Sub Notes will mature in 2024 and are callable on any interest payment
date falling on or after the 7th anniversary of the issue date subject to approval of BNM. The Sub Notes which
bears interest of 4.50% per annum is payable semi-annually in arrears.
The Sub Notes constitute unsecured liabilities of the Bank, and is subordinated in right of payment to the deposit
(b) The capital adequacy ratios of the banking subsidiary companies of the Group are as follows:
Hong Leong
Islamic
Bank
Berhad 1
30 June 2012
9.77%
13.52%

9.49%
13.24%
30 June 2011
16.06%
17.65%
15.41%
16.99%
The capital adequacy ratios of Hong Leong Islamic Bank Berhad (HLISB) are computed in accordance with
BNMs Capital Adequacy Framework for Islamic Banks (CAFIB), which is based on the Basel II capital
accord. HLISB has adopted the Standardised Approach for Credit Risk and Market Risk and the Basic
Indicator Approach for Operational Risk computation.
219
Financial Section
BASEL II

(continued)
(c)
The breakdown of risk-weighted assets (RWA) by exposure is as follows:
Group
30 June 2012
Gross
exposures
before CRM
RM000
Net
exposures
after CRM
RM000
Risk
weighted
assets
RM000
Minimum
Capital
requirements
at 8%
RM000
20,645,706
2,539
20,645,706
2,539
508
41
13,558,779
13,558,779
4,676,537
374,123
21,730
29,796,762
38,493,444
22,017,198
364,675
4,498,539
2,733,941
132,133,313
21,730
28,355,050
37,816,753
21,974,909
364,675
4,498,539
2,715,857
129,954,537
21,730
25,919,460
28,362,565
8,700,989
547,012
3,244,902
3,761,004
75,234,707
1,738
2,073,557
2,269,005
696,079
43,761
259,592
300,880
6,018,776
3,331,489
3,331,489
1,660,663
132,853
12,380,846
351,368
16,063,703
10,580,072
527,052
12,767,787
846,406
42,164
1,021,423
148,747,332
146,018,240
88,002,494
7,040,199
15,081,156
516,840
15,597,996
2,629,985
725,554
12,463
3,373,196
217,537
58,034
997
276,984
5,344,452
427,556
96,720,142
7,744,739
Exposure Class
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central Banks
Public Sector Entities
Banks, Development Financial Institutions
(DFIs) and Multilateral Development
Bank (MDBs)
Insurance Cos, Securities Firms (SF)
and Fund Managers (FM)
Corporates
Regulatory Retail
Residential Mortgages
Higher Risk Assets
Other Assets
Equity Exposures
Defaulted Exposures
Total On-Balance Sheet Exposures
Off-Balance Sheet Exposures
Over-the-counter (OTC) Derivatives
Off-Balance Sheet Exposures Other Than
OTC Derivatives or Credit Derivatives
Defaulted Exposures
Total Off-Balance Sheet Exposures
Total On and Off-Balance Sheet Exposures
Large Exposures Risk Requirements
Market Risk
Interest Rate Risk
Foreign Currency Risk
Option Risk
Total
12,927,798
354,732
16,614,019 ^
Long
Position
Short
Position
84,013,258
699,030
84,714,177
65,310,770
182,190
65,492,960
Operational Risk
Total RWA and Capital Requirements
Note:
CRM credit risk mitigation
^
The gross exposures before CRM of Off-Balance Sheet exposures refer to the credit equivalent of Off-Balance Sheet
items on page 258
220
Financial Section
BASEL II

(continued)
(c)
The breakdown of risk-weighted assets (RWA) by exposure is as follows: (continued)

Group
30 June 2011
Gross
exposures
before CRM
RM000
Net
exposures
after CRM
RM000
Risk
weighted
assets
RM000
Minimum
Capital
requirements
at 8%
RM000
34,859,464
39,577
34,859,464
39,577
7,916
633
15,438,838
15,438,838
4,449,445
355,956
27,800
24,639,472
41,909,593
16,221,335
191,250
2,656,087
24,536
1,784,459
137,792,411
27,800
23,724,179
41,237,314
16,201,739
191,109
2,656,087
24,536
1,779,772
136,180,415
27,800
22,578,809
30,956,557
6,474,402
286,664
1,543,562
14,872
2,385,438
68,725,465
2,224
1,806,305
2,476,525
517,952
22,933
123,485
1,190
190,835
5,498,038
3,160,945
3,160,945
1,611,483
128,919
10,463,307
42,434
13,666,686
9,238,564
63,651
10,913,698
739,085
5,092
873,096
151,835,245
149,847,101
79,639,163
6,371,134
8,505,222
332,219
8,837,441
2,405,542
511,004
8,713
2,925,259
168,847
40,870
697
210,414
4,241,563
339,325
86,805,985
6,920,873
Exposure Class
Credit Risk
Banks, Development Financial
Institutions (DFIs) and Multilateral
Development Bank (MDBs)
Insurance Cos, Securities Firms (SF)
and Fund Managers (FM)
Corporates
Regulatory Retail
Higher Risk Assets
Other Assets
Equity Exposures
Defaulted Exposures
OTC Derivatives
Defaulted Exposures
Market Risk
Interest Rate Risk
Option Risk
Total
10,839,451
42,438
14,042,834 ^
Long
Position
Short
Position
73,315,233
511,004
73,826,237
63,259,073
178,785
63,437,858
Operational Risk
Note:
^
The gross exposures before CRM of Off-Balance Sheet exposures refer to the credit equivalent of Off-Balance-Sheet
items on page 259.
221
Financial Section
BASEL II

(continued)
(c)
Gross
exposures
before CRM
RM000
Net
exposures
after CRM
RM000
Risk
weighted
assets
RM000
Minimum
Capital
requirements
at 8%
RM000
18,518,312
2,539
13,869,094
19,568
26,835,191
32,009,905
19,056,721
358,037
4,697,555
2,453,817
117,820,739
18,518,312
2,539
13,869,094
19,568
25,402,330
31,350,004
19,019,767
358,037
4,697,555
2,435,842
115,673,048
508
4,960,984
19,568
23,378,444
23,512,505
7,477,730
537,055
3,278,310
3,380,087
66,545,191
41
396,879
1,565
1,870,276
1,881,000
598,218
42,964
262,265
270,407
5,323,615
3,575,887
3,575,887
1,927,963
154,237
10,479,650
290,953
14,346,490
8,967,294
436,430
11,331,687
717,384
34,914
906,535
130,019,538
77,876,878
6,230,150

2,460,538
694,712
5,194
12,463
3,172,907
196,843
55,577
416
997
253,833
4,639,177
371,134
85,688,962
6,855,117
Bank
30 June 2012
Exposure Class
Credit Risk
Banks, DFIs and MDBs
Insurance Cos, SF and FM
Corporates
Regulatory Retail
Higher Risk Assets
Other Assets
Equity Exposures
Defaulted Exposures
OTC Derivatives
Defaulted Exposures
Market Risk
Interest Rate Risk
Equity Risk
Option Risk
Total
11,024,948
294,299
14,895,134 ^
132,715,873
Long
Position
Short
Position
82,423,461
694,712
1,889
83,120,062
68,432,101
151,348
68,583,449
Operational Risk
13,991,360
543,364
14,534,724
Note:
^
items on page 260.
222
Financial Section
BASEL II

(continued)
(c)
Bank
30 June 2011
Gross
exposures
before CRM
RM000
Net
exposures
after CRM
RM000
Risk
weighted
assets
RM000
Minimum
Capital
requirements
at 8%
RM000
20,394,829
39,453
13,011,316
25,590
12,108,158
15,232,354
11,686,912
178,147
2,466,958
595,975
75,739,692
20,394,829
39,453
13,011,316
25,590
11,505,426
14,784,338
11,681,646
178,147
2,466,958
595,077
74,682,780
7,891
4,062,179
25,590
11,180,744
11,088,252
4,629,886
267,220
1,588,103
797,248
33,647,113
631
324,974
2,047
894,460
887,060
370,391
21,378
127,048
63,780
2,691,769
3,336,431
3,336,431
1,951,318
156,105
4,688,617
18,594
8,043,642 ^
4,312,473
18,591
7,667,495
3,705,444
27,886
5,684,648
296,436
2,231
454,772
83,783,334
82,350,275
39,331,761
3,146,541
6,955,698
292,505
7,248,203
1,640,308
470,991
8,713
2,120,012
131,225
37,679
697
169,601
3,707,107
296,569
45,158,880
3,612,711
Exposure Class
Credit Risk
Corporates
Regulatory Retail
Higher Risk Assets
Other Assets
Defaulted Exposures
OTC Derivatives
Defaulted Exposures
Market Risk
Interest Rate Risk
Option Risk
Total
Long
Position
Short
Position
67,682,050
470,991
68,153,041
60,726,352
178,486
60,904,838
Operational Risk
Note:
^
items on page 261.
223
Financial Section
BASEL II

(continued)
4. RISK MANAGEMENT

The Group believes that an integrated risk management framework is key to ensuring the overall financial soundness
and stability of the Groups business operations. Key components of our enterprise wide risk management framework
include:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
A structured risk governance model, incorporating strong Board and senior management oversight.
Sound capital management processes.
Comprehensive assessment of material risks.
A rigorous system of check and balance reviews.
Regular monitoring and reporting.
Independent reviews by the internal and external auditors.
The Group has also formulated an overall capital management and ICAAP (Internal Capital Adequacy Assessment
Process) framework which seeks to ensure that the Group is in compliant to Basel III standards as adopted by BNM.
Risk governance structure

The Board has overall responsibility for providing leadership, overseeing risk appetite and ensuring that a robust risk
and compliance culture prevails. The Board is assisted by the following Board and Management Committees:
(i) Board Risk Management Committee (BRMC).
(ii) Group Asset and Liability Management Committee (Group ALCO).
(iii) Operational Risk Management and Compliance Committee (ORMCC).
The BRMC is responsible for the following:

(i)
(ii)
Reviewing and recommending risk management strategies, policies and risk tolerance for the Boards approval.
Reviewing and assessing adequacy of risk management policies and framework in identifying, measuring,
monitoring and controlling risk and the extent to which these are operating effectively.
(iii) Ensuring infrastructure, resources and systems are in place for risk management i.e. ensuring that the staff
responsible for implementing risk management systems perform those duties independently of Hong Leong Bank
Groups risk taking activities.
(iv) Reviewing managements periodic reports on risk exposure, risk portfolio composition and risk management
activities.

The Group Integrated Risk Management & Compliance (GIRMC) is responsible for assisting the BRMC and the Board
in ensuring that the risk management activities are carried out as per their directives. Amongst others, GIRMC is
responsible for setting the risk management framework and developing tools and methodologies for the identification,
measurement, monitoring, control and valuation of risks.
The GIRMC consists of five main departments namely Market and Liquidity Risk, Credit Portfolio Risk Management,
Technology and Operations Risk, Economic Capital / ICAAP, Regulatory Compliance and Islamic Banking Risk and
Compliance.
The Group Internal Audit function complements GIRMC in the management of risk by:
(i)
(ii)
(iii)
(iv)
Ensuring that the risk policies prepared by the GIRMC are enforced through its regular audit cycle.
Performing independent reviews to assess the risk control environment developed by the GIRMC.
Performing independent reviews to assess the risk grading system and the credit process.
Forming independent opinions on risk controls being formulated by GIRMC.
224
Financial Section
BASEL II

(continued)
4. RISK MANAGEMENT (continued)
Eight broad principles of risk management

(i) Align risk appetite and strategy

Risk appetite is the degree of risk that the Group is willing to accept in pursuit of its goals. Risk appetite is
set first in evaluating strategic alternatives, then in setting objectives aligned with the selected strategy and in
developing mechanisms to manage the related risks.
(ii)
Link growth, risk and return
The Group accepts risk as part of value creation and expects a return commensurate with the risk. The Framework
provides an enhanced ability to identify and assess risks and establish acceptable levels of risk relative to growth
and return objectives.
(iii) Enhance risk response decisions

The Group strives to identify and select among alternative risk responses risk avoidance, reduction, sharing
and acceptance based on generally accepted practices and methodologies.
(iv) Minimise operational surprises and losses

The Group continually enhances its capability to identify potential events, assess risk and establish responses,
thereby reducing the occurrence of surprises and related costs or losses.
(v)
Identify and manage cross-risks
Every product faces a myriad of risks. The Group not only manages the individual risks, but also manages
interrelated impacts.
(vi) Provide integrated responses to multiple risks

Business processes carry many inherent risks and the Group continually finds solutions for managing the risks.
(vii) Seize opportunities

The Group considers potential events, using risk management as offensive initiatives rather than just risks
(defensive), and by considering a full range of events, the Group gains an understanding of how certain events
represent opportunities.
(viii) Rationalise capital

More robust information on total risk allows the Group to more effectively assess overall capital needs and
improve capital allocation.
Risk management framework

The Groups risk management framework outlines the overall structure, aspirations, values and risk management
strategies, and is a structured approach in balancing risks and returns.
Appropriate methodologies and measures have been developed in our risk management approaches to manage
uncertainties such that the deviations from the intended strategic objectives are monitored and kept within tolerable
levels.
225
Financial Section
BASEL II

(continued)
Risk management culture

The risk management culture of the Group encompasses the following:

(i)
Developing strategies
Documentation that is approved by the Board which expresses the Groups risk management strategies and
appetite.
(ii)
Adopting skills
The capabilities and resources required for implementing the risk management function.
(iii) Cultivating shared values

The universal risk management culture that the Group expects and promotes throughout the business units.
Risk management approach
The risk management approach is summarised as follows:

(i)
Strategy
Risk management policies are integrated with business and strategies, in line with Board approved risk
appetite.
(ii)
Policy
Risks are addressed using specific risk policies.
(iii) Tools

Risks are measured and assessed using clearly defined models, methodologies and benchmarking.
(iv) Communication

Risks are adequately communicated across the Group in a timely manner.
(v)
Implementation
Risks and returns are identified and managed by respective accountable business, support and operating units.
(vi) Maintenance

Risk management policies are clearly and formally documented, with a review in place to respond to changes in
operating environment.
226
Financial Section
BASEL II

(continued)
Risk management process

The risk management approaches are based on four simple processes:

(i)
Identify what, why and how risks can arise:

(ii)
Nature of risk.

Circumstances.

Causes.

Potential contributing factors.
Analyse and evaluate risks:

Analyse and measure risk exposures using impact and probability analysis.

Establish priorities using risk matrix.

Compare risk exposures with Groups risk appetite.

(iii) Measures to control or mitigate the identified risks:

Measures to mitigate the identified risks or risk controls.

Action plans to either prevent or mitigate the risks.

(iv) Monitor and review the performance of the risk management process:

Review effectiveness of mitigating measures or controls.

Tracking of incidences and losses.

Review feedback from internal reports and take appropriate action.

Policies for hedging and mitigating risk, strategies and processes for monitoring the continuing effectiveness of hedge
and mitigants

(i) Financial instruments designated as fair value through profit and loss

The Group and the Bank uses derivative hedge instruments, such as interest rate swaps to economic hedge part
of their existing fixed rate loans to reduce the exposure on interest rate risk as part of their risk management
strategy.

(ii) Fair value hedges

The Group and the Bank uses interest rate swap as the hedge instruments to hedge the interest rate risk of fixed
rate loans exposure. The interest rate swap contracts used for the hedging are contracted with other financial
institutions.

Further information relating to the fair value hedges are disclosed in the Note 20 to the financial statements.

(iii) The accounting policies on derivative financial instruments and hedge accounting are disclosed in Note 2 (k) to
the financial statements.
(A) Credit risk

Credit risk arises as a result of customers or counterparties not being able to or willing to fulfill their financial
and contractual obligations as and when they fall due. These obligations arise from lending, trade finance and
other activities undertaken by the Group.
The primary objective of the credit risk management framework is to ensure that exposure to credit risk is
kept within the Groups financial capacity to withstand potential future losses. Lending activities are guided by
internal credit policies and guidelines that are approved by the Board. These policies were reviewed and further
enhanced during the year.
227
Financial Section
BASEL II

(continued)
(A) Credit risk (continued)

Credit portfolio management strategies and significant exposures are reviewed by the Board. These portfolio
management strategies are designed to achieve a desired ideal portfolio risk tolerance level and sector distribution.
This includes minimum credit rating targets for new credit facilities.

The Groups credit approving process encompasses pre-approval evaluation, approval and post-approval
evaluation. While the business units are responsible for credit origination, the credit approving function rests
mainly with the Management Credit Committee (MCC) and the Board Credit Supervisory Committee.
Selection and training of new lending personnel is considered a key process in the management of credit risk.
Newly appointed lending personnel are required to undergo comprehensive credit training programmes and are
encouraged to sit for the Certified Credit Professional examination conducted by the Institute of Bankers Malaysia.
Credit training programmes are also conducted to enhance the skills of the existing lending personnel.
Credit risk is also identified as part of the new product sign-off process to ensure that new products prior to
marketing are acceptable from a credit risk management perspective.
Approving and discretionary authority and its adherence is a crucial part of the Banks Credit Policy. The Board
of Directors (BoD) delegates approving and discretionary authority to the MCC and the various personnel of the
Bank based on job function and designation. The highest authority for credit approval is the MCC.
Credit Risk Management Process

(i)
Identification

Risk assessment on the potential impact of internal and external factors on transactions and
positions.
(ii) Assessment/Measurement

Internal credit rating systems to evaluate customers credit worthiness.

(iii) Control/Mitigation

Credit risk management policies and guidelines on credit rating, collateral and loan recovery.

Exposure limits based on credit worthiness level for corporate groups, and prudent thresholds by
economic sectors.

Monitoring the benchmark return to consider the risk taken.

(iv) Monitoring/Review

Analysis/review on loan exposures, asset quality evaluation, and movement of impaired loans,
advances, and financing.

Reporting on exposures against approved credit limits.

Management of credit risk
Corporate and SME credit risks are assessed by the Credit Management function, and each customer is assigned
a credit rating. The rating is based on the assessment of relevant factors including customers financial position,
industry outlook, types of facilities and securities offered.
Consumer credit risk is managed on a portfolio basis. Scoring models and lending templates are used and these
tools focus on lending to individual customers with similar characteristics and product needs. The Bank has
implemented a credit scoring system to improve the Banks ability to control credit losses within predictive
ranges and achieve a well-balanced portfolio.
228
Financial Section
BASEL II

(continued)

Management of credit risk (continued)
Corporate and SME credits are constantly being monitored to identify and detect signs of credit deterioration.
Reviews are conducted at least once a year with updated information on the customers financial position,
market position, industry and economic condition and account conduct. Corrective actions are taken should the
account show signs of credit deterioration. A post-approval evaluation of credit facilities is in place, with checks
to ensure that credit facilities are properly approved, and further, post-mortems are conducted on credit facilities
that turn impaired. The findings of these credit reviews are tabled to the MCC for remedial action, and credit
policies are further enhanced.
External credit assessments (or external ratings) on the customer (the issuer) or specific securities issued by
the issuer (the issue) form as a basis for the determination of risk weights under the Standardised Approach for
exposures to sovereigns, central banks, public sector entities, banking institutions, corporates as well as certain
other specific portfolios.
The approved External Credit Assessment Institutions (ECAI) ratings and the prescribed risk weights on the
above stated asset classes are used in the computation of regulatory capital. An exposure would be deemed to
have an external rating if the issuer or the issue has a rating provided by an ECAI. In cases where an exposure
does not have an issuer or issue rating, the exposure shall be deemed unrated and shall be accorded a risk
weight appropriate for unrated exposures in their respective exposure category.
The ECAI used by the Group are Fitch Ratings, Moodys Investors Service and Standard & Poors, Rating and
Investment Inc (R&I), Malaysia Rating Corporation Berhad (MARC) and Rating Agency Malaysia (RAM). ECAI
ratings are mapped to a common credit quality grade as prescribed by BNM.

Gross credit exposure

(i) The table below sets out the breakdown of gross credit exposures by geographical distribution as
follows:
Malaysia
RM000
Other
countries
RM000
Total
RM000
21,517,374
227,584
21,744,958
Financial investments available-for-sale *
8,070,559
1,389,708
9,460,267
3,418,220
151,958
3,570,178
86,298,166
1,894,925
88,193,091
894,086
61,264
955,350
120,198,405
3,725,439
123,923,844
3,203,864
127,625
3,331,489
13,153,847
128,683
13,282,530
16,357,711
256,308
16,614,019
136,556,116
3,981,747
140,537,863
Group
30 June 2012


Off-Balance Sheet Exposures ^
OTC Derivatives
Off-Balance Sheet Exposures Other Than OTC
Derivatives or Credit Derivatives
229
Financial Section
BASEL II

(continued)

Gross credit exposure (continued)

(i) The table below sets out the breakdown of gross credit exposures by geographical distribution as follows:
(continued)
Malaysia
RM000
Other
countries
RM000
Total
RM000
5,806,996
216,151
6,023,147
4,843,041
771,627
5,614,668
Group
30 June 2011

7,773,369
14,043
7,787,412
79,667,647
1,787,689
81,455,336
689,879
100,283
790,162
98,780,932
2,889,793
101,670,725
3,015,672
145,273
3,160,945
10,815,751
66,138
10,881,889
13,831,423
211,411
14,042,834
112,612,355
3,101,204
115,713,559

OTC Derivatives
Note:
(1)

For this table, the Group and the Bank have allocated the loans, advances and financing to geographical areas
based on the country where the loans, advances and financing were provided.
*
Excludes equity securities.
^
Off Balance Sheet exposures refer to the credit equivalent of Off-Balance Sheet items on page 258 and Page 259.
230
Financial Section
BASEL II

(continued)


(i) The table below sets out the breakdown of gross credit exposures by geographical distribution as follows:
(continued)
Bank
30 June 2012
Malaysia
RM000
Other
countries
RM000
Total
RM000

17,457,796
227,584
17,685,380
6,669,864
1,268,890
7,938,754
3,712,286
2,578
3,714,864
74,252,757
1,744,410
75,997,167
967,004
60,678
1,027,682
103,059,707
3,304,140
106,363,847
3,448,262
127,625
3,575,887
11,190,564
128,683
11,319,247
14,638,826
256,308
14,895,134
117,698,533
3,560,448
121,258,981
4,255,745
216,151
4,471,896
1,450,529
771,627
2,222,156

OTC Derivatives
30 June 2011
7,922,570
7,922,570
36,775,262
1,773,560
38,548,822
705,478
97,298
802,776
51,109,584
2,858,636
53,968,220
OTC Derivatives
3,191,158
145,273
3,336,431

4,641,073
66,138
4,707,211
7,832,231
211,411
8,043,642
58,941,815
3,070,047
62,011,862


Note:
(1)

For this table, the Group and the Bank have allocated the loans, advances and financing to geographical areas
based on the country where the loans, advances and financing were provided.
*
^
Manufacturing
20,805
18,904,013
Transport,
storage and
communications
Finance, insurance,
real estate and
business services
21,744,958
Excludes equity securities
Total On and OffBalance Sheet

Exposures
1,032
Household
Others

others
2,758,166
Government and
government
agencies
9,460,267
195,759
2,309,326
5,788,199
144,682
203,556
641,566
52,833
78,585
45,761
Financial
investments
availablefor-sale *
RM000
3,570,178
20,120
3,226,171
323,887
Financial
investments
held-tomaturity
RM000
88,193,091
1,265,920
55,935,694
1,012,858
8,727,418
1,247,590
7,319,557
1,943,207
371,634
8,412,312
186,198
1,770,703
Loans,
advances
and
financing
RM000
955,350
955,350
Derivative
financial
instruments
RM000
123,923,844
1,482,831
55,935,694
1,012,858
8,293,663
34,698,867
1,413,077
7,319,557
2,146,763
1,074,142
8,465,145
264,783
1,816,464
3,331,489
3,331,489
OTC
derivatives
RM000
13,282,530
256,870
7,300,370
40,179
1,275,571
520,391
459,430
603,129
108,204
2,281,593
23,472
413,321
Off-balance
sheet
exposures
other than
OTC
derivatives
or credit
derivatives
RM000
16,614,019
256,870
7,300,370
40,179
4,607,060
520,391
459,430
603,129
108,204
2,281,593
23,472
413,321
Total
off-balance
sheet
credit risk
exposures
RM000
140,537,863
1,739,701
63,236,064
1,053,037
8,293,663
39,305,927
1,933,468
7,778,987
2,749,892
1,182,346
10,746,738
288,255
2,229,785
Total
on and
off-balance
sheet
credit risk
exposures
RM000
BASEL II
Construction
60,942

water
Agriculture
Group
30 June 2012
Financial
assets
held-fortrading
RM000
Total
on-balance
sheet credit
risk
exposures
RM000


(ii) The table below sets out the breakdown of gross credit exposures by sector as follows:
231

Financial Section

(continued)
6,023,147

Exposures
Others
1,488,759
Government and
government
agencies
Household
4,425,393
Finance, insurance,
real estate and
business services
Transport,
storage and
communications

others
39,768
54,711
5,614,668
3,259,379
1,537,403
126,120
18,126
35,706
578,125
27,295
32,514
Financial
investments
availablefor-sale *
RM000
7,787,412
4,820,059
2,891,805
19,040
20,147
35,900
461
Financial
investments
held-tomaturity
RM000
81,455,336
1,010,890
52,564,755
627,380
7,155,643
1,550,834
6,543,642
2,693,465
391,638
7,094,913
136,772
1,685,404
Loans,
advances
and
financing
RM000
790,162
790,162
Derivative
financial
instruments
RM000
101,670,725
1,010,890
52,564,755
627,380
9,568,197
16,800,406
1,695,994
6,621,683
2,729,171
1,060,374
7,122,669
136,772
1,732,434
3,160,945
3,160,945
OTC
derivatives
RM000
10,881,889
157,235
5,768,748
39,707
877,557
457,481
1,112,614
1,030,405
50,575
998,251
21,749
367,567
Off-balance
sheet
exposures
other than
OTC
derivatives
or credit
derivatives
RM000
14,042,834
157,235
5,768,748
39,707
4,038,502
457,481
1,112,614
1,030,405
50,575
998,251
21,749
367,567
Total
off-balance
sheet
credit risk
exposures
RM000
115,713,559
1,168,125
58,333,503
667,087
9,568,197
20,838,908
2,153,475
7,734,297
3,759,576
1,110,949
8,120,920
158,521
2,100,001
Total
on and
off-balance
sheet
credit risk
exposures
RM000
BASEL II
Construction

water
Manufacturing
Agriculture
14,516
Group
30 June 2011
Financial
assets
held-fortrading
RM000
Total
on-balance
sheet credit
risk
exposures
RM000


(ii) The table below sets out the breakdown of gross credit exposures by sector as follows: (continued)
232
Financial Section

(continued)
Manufacturing
10,433
15,372,395
Transport,
storage and
communications
Finance, insurance,
real estate and
business services
17,685,380

Exposures
1,031
Household
Others

others
2,276,157
Government and
government
agencies
7,938,754
195,759
1,532,757
5,402,669
128,770
122,428
379,192
52,833
78,585
45,761
Financial
investments
availablefor-sale *
RM000
3,714,864
20,120
2,400,659
1,294,085
Financial
investments
held-tomaturity
RM000
75,997,167
1,146,996
46,692,806
842,220
7,862,271
1,159,948
7,005,772
1,716,794
228,272
7,837,370
178,595
1,326,123
Loans,
advances
and
financing
RM000
1,027,682
1,027,682
Derivative
financial
instruments
RM000
106,363,847
1,363,906
46,692,806
842,220
6,209,573
30,959,102
1,299,151
7,005,772
1,839,222
632,828
7,890,203
257,180
1,371,884
3,575,887
3,575,887
OTC
derivatives
RM000
11,319,247
139,927
6,306,146
40,163
997,990
506,944
450,310
384,861
108,013
2,012,437
22,734
349,722
Off-balance
sheet
exposures
other than
OTC
derivatives
or credit
derivatives
RM000
14,895,134
139,927
6,306,146
40,163
4,573,877
506,944
450,310
384,861
108,013
2,012,437
22,734
349,722
Total
off-balance
sheet
credit risk
exposures
RM000
121,258,981
1,503,833
52,998,952
882,383
6,209,573
35,532,979
1,806,095
7,456,082
2,224,083
740,841
9,902,640
279,914
1,721,606
Total
on and
off-balance
sheet
credit risk
exposures
RM000
BASEL II
Construction
25,364

water
Agriculture
Bank
30 June 2012
Financial
assets
held-fortrading
RM000
Total
on-balance
sheet credit
risk
exposures
RM000


233

Financial Section

(continued)
3,712,415
Manufacturing

water
Construction
Transport,
storage and
communications
Finance, insurance,
real estate and
business services
Others
4,471,896
Household

Exposures

others
759,481
2,222,156
1,543,760
428,593
38,555
5,754
172,980
32,514
Financial
investments
availablefor-sale *
RM000
7,922,570
4,483,462
3,363,753
19,040
20,147
35,900
268
Financial
investments
held-tomaturity
RM000
38,548,822
672,080
25,080,944
335,954
3,100,263
398,974
3,666,741
495,654
47,909
4,067,301
79,536
603,466
Loans,
advances
and
financing
RM000
802,776
802,776
Derivative
financial
instruments
RM000
53,968,220
672,080
25,080,944
335,954
6,786,703
11,407,800
456,569
3,686,888
501,408
256,789
4,067,569
79,536
635,980
3,336,431
3,336,431
OTC
derivatives
RM000
4,707,211
95,265
2,426,152
277
235,406
180,349
805,308
77,962
770,985
6,005
109,502
Off-balance
sheet
exposures
other than
OTC
derivatives
or credit
derivatives
RM000
8,043,642
95,265
2,426,152
277
3,571,837
180,349
805,308
77,962
770,985
6,005
109,502
Total
off-balance
sheet
credit risk
exposures
RM000
62,011,862
767,345
27,507,096
336,231
6,786,703
14,979,637
636,918
4,492,196
579,370
256,789
4,838,554
85,541
745,482
Total
on and
off-balance
sheet
credit risk
exposures
RM000
BASEL II
Government and
government
agencies
Agriculture
Bank
30 June 2011
Financial
assets
held-fortrading
RM000
Total
on-balance
sheet credit
risk
exposures
RM000


234
Financial Section

(continued)
235
Financial Section
BASEL II

(continued)


(iii) The table below sets out the breakdown of gross credit exposures by residual contractual maturity as
follows:
Less than
1 year
RM000
1-5
years
RM000
Over 5
years
RM000
Total
RM000
18,632,311
1,951,621
1,161,026
21,744,958
2,089,872
6,809,123
561,272
9,460,267
2,534,666
984,129
51,383
3,570,178
24,789,408
16,296,535
47,107,148
88,193,091
271,904
343,270
340,176
955,350
48,318,161
26,384,678
49,221,005
123,923,844
654,526
1,468,109
1,208,854
3,331,489
Group
30 June 2012


OTC Derivatives
6,922,253
6,360,277
13,282,530
7,576,779
7,828,386
1,208,854
16,614,019
55,894,940
34,213,064
50,429,859
140,537,863
30 June 2011
5,296,783
726,364
6,023,147
1,969,847
3,500,011
144,810
5,614,668

4,808,216
2,979,021
175
7,787,412
22,970,835
14,445,465
44,039,036
81,455,336
339,817
297,801
152,544
790,162
35,385,498
21,948,662
44,336,565
101,670,725
868,385
1,333,935
958,625
3,160,945
8,179,451
2,702,438
10,881,889
9,047,836
4,036,373
958,625
14,042,834
44,433,334
25,985,035
45,295,190
115,713,559

OTC Derivatives
Note:
*
^
236
Financial Section
BASEL II

(continued)


(iii) The table below sets out the breakdown of gross credit exposures by residual contractual maturity as
follows: (continued)
Bank
30 June 2012
Less than
1 year
RM000
1-5
years
RM000
Over 5
years
RM000
Total
RM000
14,449,143
2,442,259
793,978
17,685,380

1,943,872
5,433,610
561,272
7,938,754
2,058,548
1,604,933
51,383
3,714,864
23,407,532
13,519,691
39,069,944
75,997,167
271,318
416,188
340,176
1,027,682
42,130,413
23,416,681
654,426
1,741,607
6,648,331
4,670,916
11,319,247
7,302,757
6,412,523
1,179,854
14,895,134
49,433,170
29,829,204

40,816,753 106,363,847

OTC Derivatives
1,179,854
3,575,887
41,996,607 121,258,981
30 June 2011
3,826,807
645,089
4,471,896
755,588
1,466,568
2,222,156
5,274,187
2,648,383
7,922,570
13,280,045
5,109,135
20,159,642
38,548,822
328,971
321,261
152,544
802,776
23,465,598
10,190,436
20,312,186
53,968,220
837,611
1,543,195
955,625
3,336,431

OTC Derivatives
4,707,211
4,707,211
5,544,822
1,543,195
955,625
8,043,642
29,010,420
11,733,631
21,267,811
62,011,862
Note:
*
^
237
Financial Section
BASEL II

(continued)
(i)
The table below sets out the breakdown by sector the amount of past due loans, advances and financing,
impaired loans, advances and financing, individual assessment impairment allowance, collective assessment
impairment allowance, charges for individual assessment impairment allowance during the period and
write-offs during the period as follows:
Group
30 June 2012
Past due
loans,
advances
and
financing
RM000
Impaired
loans,
advances
and
financing
RM000
Individual
assessment
impairment
allowance
RM000
Collective
assessment
impairment
allowance
RM000
Agriculture
104,863
13,937
12,088
27,615
Mining and
quarrying
Charges for
individual
assessment
impairment
allowance
during the
year
RM000
(4,078)
Write offs
during the
year
RM000
17,684
9,101
3,661
3,362
2,997
(670)
Manufacturing
184,679
370,095
246,939
147,114
(5,552)
15,608
Electricity, gas
and water
3,179
830
6,128
Construction
176,519
65,123
41,822
38,865
(21,002)
457
Wholesale and
retail
218,491
138,879
52,307
136,663
(12,809)
21,064
Transport,
storage and
communications
136,753
64,655
54,867
23,549
(11,784)
Finance,
insurance,
real estate
and business
services
333,439
101,134
49,320
140,753
(16,438)
90
38,854
7,499
3,267
17,020
8,993,167
700,330
20,096
1,319,919
8,517
65,871
57,910
20,796
(944)
61,948
10,207,562
1,532,014
541,978
1,881,419
(74,599)
116,873
Government and
government
agencies
Education, health
and others
Household
Others
(4,609)
3,287
22
238
Financial Section
BASEL II

(continued)
(i)
write-offs during the period as follows: (continued)
Group
30 June 2011
Agriculture
Mining and
quarrying
Past due
loans,
advances
and
financing
RM000
Impaired
loans,
advances
and
financing
RM000
Individual
assessment
impairment
allowance
RM000
Collective
assessment
impairment
allowance
RM000
Charges for
individual
assessment
impairment
allowance
during the
year
RM000
42,832
41,455
34,210
13,952
2,737
Write offs
during the
year
RM000
8,467
5,646
4,102
2,366
(59)
Manufacturing
119,923
399,331
290,899
85,299
(7,768)
16,168
Electricity, gas
and water
5,896
1,286
67
8,164
Construction
227,736
106,909
70,348
54,564
(358)
6,097
Wholesale and
retail
147,792
178,844
79,408
84,560
(124)
12,048
Transport,
storage and
communications
121,932
75,295
68,600
25,566
4,916
Finance,
insurance,
real estate
and business
services
215,485
172,963
63,982
89,491
(21,060)
38,948
4,052
8,528
8,382
489
Government and
government
agencies
Education, health
and others
Household
Others
73
3,301
8,260,235
790,215
61,143
1,412,090
1,246
6,513
812
139,405
111,773
5,880
9,129
9,190,058
1,915,401
793,060
1,790,314
(10,852)
44,200
239
Financial Section
BASEL II

(continued)
(i)
Bank
30 June 2012
Past due
loans,
advances
and
financing
RM000
Impaired
loans,
advances
and
financing
RM000
Individual
assessment
impairment
allowance
RM000
Collective
assessment
impairment
allowance
RM000
Agriculture
101,051
12,486
12,088
20,712
Mining and
quarrying
Charges for
individual
assessment
impairment
allowance
during the
year
RM000
(4,305)
Write offs
during the
year
RM000
17,684
8,703
3,661
3,362
2,881
(670)
Manufacturing
173,568
362,027
241,194
137,502
(4,023)
15,608
Electricity, gas
and water
2,051
618
3,830
Construction
148,419
55,562
36,199
33,240
(20,780)
457
Wholesale and
retail
200,677
123,126
45,240
129,448
(12,964)
20,742
Transport,
storage and
communications
126,172
62,708
53,311
21,788
(11,340)
Finance,
insurance,
real estate
and business
services
297,417
97,223
48,202
126,922
(15,402)
90
30,597
7,234
3,267
14,290
7,247,446
583,288
20,096
1,084,356
8,033
2,253
751
18,973
8,344,134
1,310,186
463,710
1,593,942
Government and
government
agencies
Education, health
and others
Household
Others
(4,609)
3,287
(530)
(71,336)
22
2,979
57,582
240
Financial Section
BASEL II

(continued)
(i)
Bank
30 June 2011
Agriculture
Mining and
quarrying
Past due
loans,
advances
and
financing
RM000
Impaired
loans,
advances
and
financing
RM000
Individual
assessment
impairment
allowance
RM000
Collective
assessment
impairment
allowance
RM000
Charges for
individual
assessment
impairment
allowance
during the
year
RM000
5,387
1,399
2,139
Write offs
during the
year
RM000
3,002
1,448
530
919
(89)
Manufacturing
29,533
109,762
66,808
23,987
(6,930)
16,123
Electricity, gas
and water
3,718
881
1,988
Construction
31,052
16,816
9,097
11,583
(3,663)
6,037
Wholesale and
retail
46,921
42,551
25,876
15,941
(1,972)
11,915
Transport,
storage and
communications
10,747
5,266
3,932
2,034
Finance,
insurance,
real estate
and business
services
54,821
123,073
30,861
23,090
18,972
979
3,181
2,605,028
297,732
16,630
642,108
156
515
893
893
8,755
2,809,181
600,800
154,627
726,970
Government and
government
agencies
Education, health
and others
Household
Others
3,373
(20,419)
(20,789)
3,301
37,891
241
Financial Section
BASEL II

(continued)
(ii)
The table below sets out the breakdown by geographical areas the amount of past due loans, advances
and financing, impaired loans, advances and financing, individual assessment impairment allowance and
collective assessment impairment allowance as follows:
Past due
loans,
advances
and
financing
RM000
Impaired
loans,
advances
and
financing
RM000
Individual
assessment
impairment
allowance
RM000
Collective
assessment
impairment
allowance
RM000
10,207,355
1,489,443
524,858
1,881,419
207
42,571
17,120
10,207,562
1,532,014
541,978
1,881,419
9,190,058
1,870,376
763,912
1,790,314
45,025
29,148
9,190,058
1,915,401
793,060
1,790,314
8,344,134
1,267,615
446,590
1,593,942
42,571
17,120
8,344,134
1,310,186
463,710
1,593,942
2,809,181
555,775
125,479
726,970
45,025
29,148
2,809,181
600,800
154,627
726,970
Group
30 June 2012
Malaysia
Other countries
30 June 2011
Malaysia
Other countries
Bank
30 June 2012
Malaysia
Other countries
30 June 2011
Malaysia
Other countries
242
Financial Section
BASEL II

(continued)
(iii) The table below sets out the movements in individual assessment impairment allowance and collective
assessment impairment allowance during the financial period as follows:
Group
Collective Assessment Allowance

As restated
Amount transfer from individual assessment
Amount written off
Unwinding income
Exchange differences
Individual Assessment Allowance
As restated
Amount transfer to collective assessment
Amount written off
Unwinding income
Exchange difference
Bank
30 June
2012
30 June
2011
30 June
2012
30 June
2011
1,575,097
769,545
726,970
684,670
215,217
1,790,314
-
769,545
742,983
726,970
-
684,670
-
215,217
390,984
(101,190)
(217,424)
(11,018)
1,217
791,101
679,925
45,291
(268,977)
(372,992)
(7,871)
495
292,817
(70,874)
(170,822)
(10,064)
1,243
794,400
55,688
(1,168)
(333,095)
(416,370)
(8,819)
469
1,881,419
1,790,314
1,593,942
726,970
666,314
228,018
154,627
226,724
126,746
793,060
-
228,018
505,525
154,627
-
226,724
-
61,155
(55,688)
(135,754)
(116,873)
(9,716)
5,794
126,746
72,277
(83,129)
(44,200)
(14,974)
2,797
492,209
52,182
(45,291)
(123,518)
(57,582)
(9,407)
490
541,978
793,060
463,710
27,370
(48,159)
(37,891)
(14,836)
1,419
154,627
22
Deduction
from Capital
Base
Average Risk
Weight
Risk Weighted
Assets by
Exposure
0%
20,645,706
20.00%
508
2,539
2,539
Public
Sector
Entities
RM000
36.59%
6,081,181
16,618,328
9,191,717
7,426,611
Banks,
DFIs
& MDBs
RM000
100.00%
29,282
29,282
29,282
Insurance
Cos, SF
and FM
RM000
96.57%
35,363,003
36,618,693
2,416,711
30,748,254
996,456
2,457,272
Corporates
RM000
75.43%
33,961,213
45,024,444
216,359
163,293
44,603,943
40,849
Regulatory
Retail
RM000
39.71%
8,774,863
22,097,063
592,680
4,370,995
17,133,388
Residential
Mortgages
RM000
150.00%
547,544
365,029
365,029
Higher
Risk
Assets
RM000
70.28%
3,244,900
4,617,156
3,244,902
1,372,254
Other
Assets
RM000
0.00%
Equity
RM000
60.27%
88,002,494
146,018,240
2,998,099
34,778,411
44,603,943
14,600,017
17,133,388
9,886,422
22,017,960
Total
Exposures
after Netting
& Credit Risk
Mitigation
RM000
88,002,494
4,497,149
34,778,410
33,452,957
7,300,009
5,996,686
1,977,283
Total Risk
Weighted
Assets
RM000
BASEL II
Total
150%
16
18
75%
100%
14
15
35%
50%
20,645,706
11
13
0%
20%
Risk Weight
Sovereigns/
Central
Banks
RM000
Exposures after Netting and Credit Risk Mitigation
The breakdown of credit risk exposures by risk weight is as follows:
Group
30 June 2012
Credit risk exposures by risk weight
243

Financial Section

(continued)
Deduction
from Capital
Base
Average Risk
Weight
Risk Weighted
Assets by
Exposure
0%
34,859,464
20.00%
7,915
39,577
31.30%
5,707,074
18,234,142
6,867,478
11,366,661
Banks,
DFIs
& MDBs
RM000
100.00%
27,800
27,800
27,800
Insurance
Cos, SF
and FM
RM000
97.41%
29,778,810
30,570,867
795,808
28,079,539
554,849
1,140,671
Corporates
RM000
76.07%
35,624,098
46,830,633
610,753
228,800
45,934,514
56,566
Regulatory
Retail
RM000
40.57%
6,647,014
16,382,803
490,580
117,983
3,646,418
12,127,822
Residential
Mortgages
RM000
150.00%
287,837
191,891
191,891
Higher
Risk
Assets
RM000
57.49%
1,543,743
2,685,388
1,543,742
1,141,646
Other
Assets
RM000
0%
14,872
24,536
12,456
12,080
Equity
RM000
53.15%
79,639,163
149,847,101
1,598,452
30,382,920
46,052,497
11,125,311
12,127,822
12,558,989
36,001,110
Total
Exposures
after Netting
& Credit Risk
Mitigation
RM000
79,639,163
2,397,678
30,382,920
34,539,373
5,562,656
4,244,738
2,511,798
Total Risk
Weighted
Assets
RM000
BASEL II
Total
150%
75%
100%
35%
50%
39,577
34,859,464
20%
0%
Risk Weight
Public
Sector
Entities
RM000
Sovereigns/
Central
Banks
RM000
The breakdown of credit risk exposures by risk weight is as follows: (continued)
Group
30 June 2011
Credit risk exposures by risk weight (continued)
244
Financial Section

(continued)
Deduction
from Capital
Base
Average Risk
Weight
Risk Weighted
Assets by
Exposure
0%
18,518,311
20.00%
508
2,539
37.55%
6,330,128
16,857,644
9,861,996
6,995,648
Banks,
DFIs
& MDBs
RM000
100.00%
27,120
27,120
27,120
Insurance
Cos, SF
and FM
RM000
97.04%
31,946,918
32,921,009
2,156,105
27,848,839
935,696
1,980,369
Corporates
RM000
75.45%
28,213,466
37,392,622
194,075
129,201
37,033,919
35,427
Regulatory
Retail
RM000
39.44%
7,543,180
19,125,953
481,140
3,575,704
15,069,109
Residential
Mortgages
RM000
150.00%
537,246
358,164
358,164
Higher
Risk
Assets
RM000
68.07%
3,278,312
4,816,176
3,278,313
1,537,863
Other
Assets
RM000
0.00%
Equity
RM000
59.90%
77,876,878
130,019,538
2,708,344
31,764,613
37,033,919
14,408,823
15,069,109
8,978,556
20,056,174
Total
Exposures
after Netting
& Credit Risk
Mitigation
RM000
77,876,878
4,062,516
31,764,612
27,775,439
7,204,412
5,274,188
1,795,711
Total Risk
Weighted
Assets
RM000
BASEL II
Total
150%
75%
100%
35%
50%
2,539
18,518,311
Public
Sector
Entities
RM000
Sovereigns/
Central
Banks
RM000
20%
0%
Risk Weight
Bank
30 June 2012


245

Financial Section

(continued)
Deduction
from Capital
Base
Average Risk
Weight
Risk Weighted
Assets by
Exposure
0%
20,394,828
20.00%
7,891
39,453
33.82%
5,265,650
15,570,783
7,171,637
8,399,143
Banks,
DFIs
& MDBs
RM000
100.00%
25,590
25,590
25,590
Insurance
Cos, SF
and FM
RM000
99.01%
14,432,301
14,576,737
391,129
13,696,435
171,126
318,047
Corporates
RM000
75.35%
13,042,524
17,309,737
81,013
16,145
17,194,280
18,299
Regulatory
Retail
RM000
39.99%
4,701,770
11,758,385
329,833
99,011
2,215,596
9,113,945
Residential
Mortgages
RM000
150.00%
267,753
178,502
178,502
Higher
Risk
Assets
RM000
63.63%
1,588,282
2,496,260
1,588,282
907,978
Other
Assets
RM000
0%
Equity
RM000
47.76%
39,331,761
82,350,275
650,644
15,656,288
17,293,291
9,576,658
9,113,945
8,756,643
21,302,806
Total
Exposures
after Netting
& Credit Risk
Mitigation
RM000
39,331,761
975,966
15,656,288
12,969,968
4,788,329
3,189,881
1,751,329
Total Risk
Weighted
Assets
RM000
BASEL II
Total
150%
75%
100%
35%
50%
39,453
20,394,828
Public
Sector
Entities
RM000
Sovereigns/
Central
Banks
RM000
20%
0%
Risk Weight
Bank
30 June 2011


246
Financial Section

(continued)
247
Financial Section
BASEL II

(continued)

The following tables summarise the rated exposures according to ratings by External Credit Assessment
Institutions (ECAIs) as follows:
(i)
Ratings of Public Sector Entities, Insurance Cos, SF and FM and Corporates by approved ECAIs
Moodys
Aaa to Aa3
Baa1 to Ba3
B1 to C
Unrated
S&P
AAA to AA-
A+ to A- BBB+ to BB-
B+ to D
Unrated
Fitch
AAA to AA-
B+ to D
Unrated
RAM AAA to AA3
Exposure Class
A1 to A3
A1 to A3 BBB1 to BB3
B to D
Unrated
MARC
AAA to AA-
B+ to D
Unrated
Rating &
Investment
Inc
AAA to AA-
B+ to D
Unrated
RM000
RM000
RM000
RM000
RM000
Group
30 June 2012
On and OffBalance Sheet
Exposures
Public Sector
Entities
Corporates
2,539
2,457,272
532,250
458,533
210,349
1,022,146
2,457,272
532,250
458,533
210,349
1,024,685
124
30 June 2011
Exposures
Public Sector
Entities
Corporates
1,124,684
471,236
25,345
22,811
14,564,275
1,124,808
471,236
25,345
22,811
14,564,275
248
Financial Section
BASEL II

(continued)

Institutions (ECAIs) as follows: (continued)
(i)
Ratings of Public Sector Entities, Insurance Cos, SF and FM and Corporates by approved ECAIs
(continued)
Exposure Class
Moodys
Aaa to Aa3
Baa1 to Ba3
B1 to C
Unrated
S&P
AAA to AA-
A1 to A3
B+ to D
Unrated
Fitch
AAA to AA-
B+ to D
Unrated
RAM AAA to AA3
A1 to A3 BBB1 to BB3
B to D
Unrated
MARC
AAA to AA-
B+ to D
Unrated
Rating &
Investment
Inc
AAA to AA-
B+ to D
Unrated
RM000
RM000
RM000
RM000
RM000
2,539
Bank
30 June 2012
Exposures
Public Sector
Entities
Corporates
1,980,368
471,890
440,604
210,349
1,022,146
1,980,368
471,890
440,604
210,349
1,024,686
315,813
127,630
192,449
315,813
127,630
192,449
30 June 2011
Exposures
Corporates
249
Financial Section
BASEL II

(continued)

(ii)
Ratings of Sovereigns/Central Banks and Banking Institutions by approved ECAIs

Moodys
Aaa to Aa3
A1 to A3
Baa1 to Baa3 Ba1 to B3
Caa1 to C
Unrated
S & P AAA to AA-
A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D
Unrated
Fitch AAA to AA-
Unrated
RAM AAA to AA3
A1 to A3 BBB1 to BBB3 BB1 to B3
C1 to D
Unrated
MARC AAA to AA-
A+ to A- BBB+ to BBB- BB+ to B-
C+ to D
Unrated
Rating &
Investment
Exposure Class
Inc AAA to AA-
A+ to A- BBB+ to BBB- BB+ to B- CCC+ to C
Unrated
RM000
RM000
RM000
RM000
RM000
RM000
464,159
1,310,772
3,534,727
1,443,372
- 2,389,064
1,774,931
3,534,727
1,443,372
- 2,389,064
Sovereigns/
Central
Banks
1,742,749
8,323,844
Banks, MDBs
and FDIs
1,191,362
1,957,317
1,552,363
60,636
918,495
2,934,111 10,281,161
1,552,363
60,636
918,495
Group
30 June 2012
On and OffBalance
Sheet
Exposures
Sovereigns/
Central
Banks
Banks, MDBs
and FDIs
30 June 2011
On and OffBalance
Sheet
Exposures
250
Financial Section
BASEL II

(continued)

(ii)
Ratings of Sovereigns/Central Banks and Banking Institutions by approved ECAIs (continued)

Moodys
Aaa to Aa3
A1 to A3
Baa1 to Baa3 Ba1 to B3
Caa1 to C
Unrated
S & P AAA to AA-
Unrated
Fitch AAA to AA-
Unrated
RAM AAA to AA3
A1 to A3 BBB1 to BBB3 BB1 to B3
C1 to D
Unrated
MARC AAA to AA-
A+ to A- BBB+ to BBB- BB+ to B-
C+ to D
Unrated
Rating &
Investment
Exposure Class
Inc AAA to AA-
A+ to A- BBB+ to BBB- BB+ to B- CCC+ to C
Unrated
RM000
RM000
RM000
RM000
RM000
RM000
464,159
1,259,262
3,534,727
1,443,372
- 2,389,064
1,723,421
3,534,727
1,443,372
- 2,389,064
89,923
1,405,897
1,179,332
89,923
1,405,897
1,179,332
Bank
30 June 2012
On and OffBalance
Sheet
Exposures
Sovereigns/
Central
Banks
Banks, MDBs
and FDIs
30 June 2011
On and OffBalance
Sheet
Exposures
Banks, MDBs
and FDIs
251
Financial Section
BASEL II

(continued)

(iii) Short-term ratings of Banking Institutions and Corporates by approved ECAIs
Moodys
Exposure Class
P-1
P-2
P-3
Others
Unrated
S&P
A-1
A-2
A-3
Others
Unrated
Fitch
F1+, F1
F2
F3
B to D
Unrated
RAM
P-1
P-2
P-3
NP
Unrated
MARC
MARC-1
MARC-2
MARC-3
MARC-4
Unrated
Rating &
Investment
Inc
a-1+, a-1
a-2
a-3
b,c
Unrated
RM000
RM000
RM000
RM000
RM000
572,826
611,974
572,826
611,974
258,333
1,383,638
Group
30 June 2012
On and Off-Balance
Sheet Exposures
Banks, DFIs and
MDBs
30 June 2011
On and Off-Balance
Sheet Exposures
Banks, DFIs and
MDBs
Corporates
12,967
6,042
271,300
1,389,680
252
Financial Section
BASEL II

(continued)

(iii) Short-term ratings of Banking Institutions and Corporates by approved ECAIs (continued)
Moodys
Exposure Class
P-1
P-2
P-3
Others
Unrated
S&P
A-1
A-2
A-3
Others
Unrated
Fitch
F1+, F1
F2
F3
B to D
Unrated
RAM
P-1
P-2
P-3
NP
Unrated
MARC
MARC-1
MARC-2
MARC-3
MARC-4
Unrated
Rating &
Investment
Inc
a-1+, a-1
a-2
a-3
b,c
Unrated
RM000
RM000
RM000
RM000
RM000
447,176
467,722
447,176
467,722
57,284
1,214,634
57,284
1,214,634
Bank
30 June 2012
On and Off-Balance
Sheet Exposures
Banks, DFIs and
MDBs
30 June 2011
On and Off-Balance
Sheet Exposures
Banks, DFIs and
MDBs
253
Financial Section
BASEL II

(continued)

Credit risk mitigation

The following table summarises the breakdown of CRM by exposure as follows:
Group
30 June 2012
Exposures
before
CRM
RM000
Exposures
covered by
guarantees/
credit
derivatives
RM000
Exposures
covered by
eligible
financial
collateral
RM000
20,645,706
Exposure Class
2,539
13,558,779
21,730
Corporates
29,796,762
1,441,712
Regulatory Retail
38,493,444
676,691
22,017,198
42,289
364,675
4,498,539
Higher Risk Assets

Other Assets
Equity Exposures
Defaulted Exposures
2,733,941
18,084
132,133,313
2,178,776
3,331,489
12,927,798
546,952

OTC Derivatives
Defaulted Exposures
354,732
3,364
16,614,019
550,316
148,747,332
2,729,092
254
Financial Section
BASEL II

(continued)

Credit risk mitigation (continued)

The following table summarises the breakdown of CRM by exposure as follows: (continued)
Group
30 June 2011
Exposures
before
CRM
RM000
Exposures
covered by
guarantees/
credit
derivatives
RM000
Exposures
covered by
eligible
financial
collateral
RM000
34,859,464
39,577
15,438,838
Exposure Class
27,800
Corporates
24,639,472
1,147
915,293
Regulatory Retail
41,909,593
672,279
16,221,335
19,596
Higher Risk Assets

Other Assets
Equity Exposures
Defaulted Exposures
191,250
141
2,656,087
24,536
1,784,459
4,687
137,792,411
1,147
1,611,996
3,160,945
10,839,451
376,144

OTC Derivatives
Defaulted Exposures
42,438
14,042,834
376,148
151,835,245
1,147
1,988,144
255
Financial Section
BASEL II

(continued)


Bank
30 June 2012
Exposures
before
CRM
RM000
Exposures
covered by
guarantees/
credit
derivatives
RM000
Exposures
covered by
eligible
financial
collateral
RM000
18,518,312
Exposure Class
2,539
13,869,094
19,568
Corporates
26,835,191
1,432,861
Regulatory Retail
32,009,905
659,901
19,056,721
36,954
Higher Risk Assets

Other Assets
Defaulted Exposures
358,037
4,697,555
2,453,817
17,975
117,820,739
2,147,691
3,575,887
11,024,948
545,298
294,299
3,346
14,895,134
548,644
132,715,873
2,696,335

OTC Derivatives
Defaulted Exposures
256
Financial Section
BASEL II

(continued)


Bank
30 June 2011
Exposures
before
CRM
RM000
Exposures
covered by
guarantees/
credit
derivatives
RM000
Exposures
covered by
eligible
financial
collateral
RM000
20,394,829
Exposure Class
39,453
13,011,316
25,590
Corporates
12,108,158
602,732
Regulatory Retail
15,232,354
448,016
11,686,912
5,266
Higher Risk Assets

Other Assets
Defaulted Exposures
178,147
2,466,958
595,975
898
75,739,692
1,056,912
OTC Derivatives
3,336,431
Off-Balance Sheet Exposures Other Than OTC Derivatives

or Credit Derivatives
4,688,617
376,144
18,594
8,043,642
376,147
83,783,334
1,433,059

Defaulted Exposures
257
Financial Section
BASEL II

(continued)

Off-Balance Sheet exposures and counterparty credit risk

Credit limits are established to ensure that the Group and the Bank are not duly exposed to unnecessary credit
risk with parties who are unable to meet or honour their financial obligations with the Group and the Bank.
The counterparty limits for the Group and the Bank are established by taking into consideration the tenor of the
obligation, rating assignment of the country, rating assignment of the counterparty, counterpartys shareholders
funds, the Groups and the Banks shareholders funds.
The credit exposure limit for derivative transactions is calculated based on the standardised approach by applying
a specific percentage of risk factor i.e. the potential loss of the contract value to the counterparty limit for the
Group and the Bank, which in general is a fraction of the derivative contract or notional amount used to express
the volume of instruments.
To mitigate the counterparty risk for the derivative transactions, the Group and the Bank practice the cash
margin call exercise to cover mark-to-market exposures on outstanding derivative positions. The collateral
agreement typically includes a minimum threshold amount where additional collateral is required to be called by
the Group and the Bank if the mark-to market exposures exceed the agreed threshold amount.
In the normal course of business, the Group and the Bank make various commitments and incurs certain
contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of
these transactions.
Nature of commitments and contingencies
Direct credit substitutes comprise guarantees undertaken by the Group and the Bank to support the financial
obligations of their customers to third parties.
Certain transactions related contingent items represent financial products whose crystallisations are dependent
on specific events other than default payment by the customers. They include performance related contingencies
and standby letter of credit.
Short term self liquidating trade-related contingencies relate to bills of exchange which have been endorsed by
the Group and the Bank and represent liabilities in the event of default by the acceptors and the drawers of the
bills.
Assets sold with recourse and commitments with certain drawdown represents assets sold by the Group and
the Bank with recourse in the event of defects in the assets, and investment or purchase commitments entered
into by the Group and the Bank, where drawdown is certain to occur.
Obligations under underwriting agreements arise from underwriting agreements relating to the issuance of equity
and debts securities, where the Group and the Bank are obliged to subscribe for or purchase the securities in the
event the securities are not taken up when issued.
Irrevocable commitments to extend credit include all obligations on the part of the Group and the Bank to provide
funding facilities or the undrawn portion of an approved credit facilities to customers.
Forward foreign exchange contracts are agreements to buy or sell fixed amounts of currency at agreed rates of
exchange on a specified future date.
Interest rate swaps involve the exchange of interest obligations with a counterparty for a specified period
without the exchange of the underlying principal.
258
Financial Section
BASEL II

(continued)

Off-Balance Sheet exposures and counterparty credit risk (continued)

The Off-Balance Sheet exposures and their related counterparty credit risk of the Group and the Bank are as
follows:
Principal
Amount
RM000
Positive Fair
Value of
Derivative
Contracts
RM000
Credit
Equivalent
Amount *
RM000
Risk
Weighted
Assets *
RM000
444,051
444,051
403,746
Transaction related contingent items
1,410,727
705,363
667,229

contingencies
1,557,667
311,533
304,601
71,513
71,513
14,303
Over one year
12,720,869
6,360,277
5,377,784
Up to one year
17,750,840
3,549,668
2,991,929
Group
30 June 2012
Commitments and Contingent Liabilities

9,200,627
1,840,125
1,380,420
43,156,294
13,282,530
11,140,012
37,767,414
244,889
605,763
260,715
1,174,381
33,300
140,359
80,086
686,519
15,006
139,323
86,814
Derivative Financial Contracts

One year or less
Over one year to five years
Over five years
Interest/profit rate related contracts:
One year or less
13,416,046
26,219
43,810
20,081
41,967,670
309,970
1,326,970
635,849
Over five years
10,741,653
325,170
1,069,531
540,557
69,293
796
4,953
3,283
9,748
780
390
105,832,724
955,350
3,331,489
1,627,775
148,989,018
955,350
16,614,019
12,767,787

One year or less
The credit equivalent amount and risk-weighted assets are arrived at using the credit conversion factors and risk-weights
as defined in BNMs revised RWCAF and CAFIB.
259
Financial Section
BASEL II

(continued)


Principal
Amount
RM000
Positive Fair
Value of
Derivative
Contracts
RM000
Credit
Equivalent
Amount *
RM000
Risk
Weighted
Assets *
RM000
559,290
559,291
548,786
1,394,682
697,342
686,108
616,404
123,281
118,414
72,000
Over one year
12,488,631
2,702,438
2,410,023
Up to one year
17,617,166
4,940,184
4,143,111
9,296,768
1,859,353
1,395,772
42,044,941
10,881,889
9,302,214
35,896,628
319,335
820,583
506,072
1,736,341
96,343
207,815
115,775
250,376
23,482
61,039
30,519
One year or less
12,791,226
19,046
36,534
13,876
35,757,281
201,458
1,125,592
489,354
9,632,500
129,062
897,586
447,893
163,946
1,434
11,268
7,889
Group
30 June 2011
contingencies
Obligations under on-going underwriting
agreements

One year or less
Over five years
Over five years

One year or less
6,600
528
106
96,234,898
790,160
3,160,945
1,611,484
138,279,839
790,160
14,042,834
10,913,698
260
Financial Section
BASEL II

(continued)


Principal
Amount
RM000
Positive Fair
Value of
Derivative
Contracts
RM000
Credit
Equivalent
Amount *
RM000
Risk
Weighted
Assets *
RM000
435,503
435,503
395,198
1,336,034
668,017
629,882

contingencies
1,534,557
306,911
299,979
71,513
71,513
14,303
9,341,832
4,670,916
3,933,182
16,631,310
3,326,262
2,783,647
Bank
30 June 2012

Over one year
Up to one year
9,200,627
1,840,125
1,380,420
38,551,376
11,319,247
9,436,611
37,673,453
244,303
605,763
260,715
4,795,712
106,218
430,557
370,284
686,519
15,006
139,323
86,814
One year or less
13,376,046
26,219
43,710
20,031
41,367,670
309,970
1,310,270
627,502
Over five years
10,241,653
325,170
1,040,531
526,057
69,293
796
4,953
3,283
9,748
780
390
108,220,094
1,027,682
3,575,887
1,895,076
146,771,470
1,027,682
14,895,134
11,331,687

One year or less
Over five years

One year or less
261
Financial Section
BASEL II

(continued)


Principal
Amount
RM000
Positive Fair
Value of
Derivative
Contracts
RM000
Credit
Equivalent
Amount *
RM000
Risk
Weighted
Assets *
RM000
195,694
195,695
185,190
268,190
134,095
122,861

contingencies
469,521
93,904
89,038
Bank
30 June 2011

Over one year
5,109,037
Up to one year
9,707,861
2,963,380
2,344,882
6,600,684
1,320,137
991,360
22,350,987
4,707,211
3,733,331
33,894,516
310,895
792,569
497,029
5,360,137
131,384
569,576
479,296
250,376
23,482
61,039
30,519
Derivative financial contracts

One year or less
Over five years
One year or less
11,566,226
16,641
33,774
13,324
32,737,281
189,877
973,091
475,861
9,582,500
129,062
894,586
447,293
163,946
1,434
11,268
7,889
Over five years

One year or less
6,600
528
106
93,561,582
802,775
3,336,431
1,951,317
115,912,569
802,775
8,043,642
5,684,648
262
Financial Section
BASEL II

(continued)
5. EQUITY EXPOSURES IN BANKING BOOK

The following table summarises the Groups and the Banks equity exposures in the banking book:
Group
Exposures
subject to
riskweighting
RM000
Quoted equity Securities

Unquoted equity securities
Bank
Risk
weights
%
Exposures
subject to
riskweighting
RM000
Risk
weights
%
156,645
100%
156,645
100%
310,985
150%
310,916
150%
30 June 2012
30 June 2011
Quoted equity Securities
138,372
100%
138,372
100%
77,018
100%
100%
140,612
150%
140,543
150%
Realised gains arising from sales and liquidations of equity exposures are as follows:
Group and
Bank
RM000
30 June 2012
Net gains arising from sales of equity securities
5,593
30 June 2011
Net gains arising from sales of equity securities

5,492
There is no unrealised gains/(losses) for equity securities that have not been reflected in the income statements of the
Group and the Bank but have been recognised under other comprehensive income of the Group and the Bank for
the financial year ended 30 June 2012.
263
Financial Section
BASEL II

(continued)
6. INTEREST RATE RISK/RATE OF RETURN RISK (IRR/RORR) IN THE BANKING BOOK

The increase or decline in earnings and economic value for upward and downward rate shocks which are consistent
with shocks applied in the Groups and the Banks stress test for measuring IRR/RORR in the banking book are as
follows:
Impact on positions
100 basis points parallel shift
Increase/(Decline) in Increase/(Decline) in
Earnings
Economic Value
RM000
RM000
Group
30 June 2012
100 bsp upward
Ringgit Malaysia
428,485
75,957
(427,564)
(60,066)
100 bsp downward

Ringgit Malaysia
30 June 2011
100 bsp upward
Ringgit Malaysia
208,232
(450,812)
(207,481)
478,465
380,773
247,241
(379,947)
(251,678)
100 bsp downward

Ringgit Malaysia
Bank
30 June 2012
100 bsp upward
Ringgit Malaysia
100 bsp downward
Ringgit Malaysia
30 June 2011
100 bsp upward
Ringgit Malaysia
172,662
24,743
(172,291)
(31,577)
100 bsp downward

Ringgit Malaysia
264
Financial Section
Other
information
1. MATERIAL CONTRACTS

There were no material contracts (not being contracts entered into in the ordinary course of business) which had been
entered into by the Bank and its subsidiaries involving the interest of Directors and major shareholders, either still
subsisting at the end of the financial year or entered into since the end of the previous financial year pursuant to Item
21, Part A, Appendix 9C of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad.
2.
ANALYSIS OF SHAREHOLDINGS AS AT 3 SEPTEMBER 2012
Authorised share capital

Issued & paid-up capital
Adjusted issued & paid-up capital
(after deducting treasury shares
pursuant to Section 67A of the
Companies Act, 1965)
Class of shares
Voting rights
on show of hands
on a poll
Distribution Schedule Of Shareholders As At 3 September 2012
: RM3,000,000,000
: RM1,879,909,100
: RM1,798,809,400
: Ordinary shares of RM1.00 each

: 1 vote
: 1 vote for each share held
No. of
Shareholders
No. of Shares
352
3.29
7,438
0.00
100 1,000
1,781
16.68
1,279,551
0.07
1,001 10,000
6,942
65.00
23,020,062
1.28
10,001 100,000
1,251
11.71
35,589,657
1.98
351
3.29
380,714,415
21.16
0.03
1,358,198,277
75.51
10,680
100.00
1,798,809,400
100.00
Size of Holdings
Less than 100
100,001 less than 5% of issued shares

5% and above of issued shares

List Of Thirty Largest Shareholders As At 3 September 2012
Name of Shareholders
No. of Shares
1.
Assets Nominees (Tempatan) Sdn Bhd

- Hong Leong Financial Group Berhad
996,339,605
55.39
2.
Citigroup Nominees (Tempatan) Sdn Bhd

- Employees Provident Fund Board
214,267,272
11.91
3.
147,591,400
8.21
4.
AmTrustee Berhad
- Exempt AN for Hong Leong Bank Berhad (ESOS)
46,838,403
2.60
5.
Malaysia Nominees (Tempatan) Sendirian Berhad

- Great Eastern Life Assurance (Malaysia) Berhad
36,493,740
2.03
6.
Cartaban Nominees (Asing) Sdn Bhd

- Exempt AN for State Street Bank & Trust Company
14,221,040
0.79
7.
Low Poh Weng
12,100,000
0.67
8.
HLG Nominee (Tempatan) Sdn Bhd

- Hong Leong Equities Sdn Bhd
11,360,100
0.63
265
Financial Section
Other
information
(continued)
2.
ANALYSIS OF SHAREHOLDINGS AS AT 3 SEPTEMBER 2012 (continued)
List Of Thirty Largest Shareholders As At 3 September 2012 (continued)

Name of Shareholders
No. of Shares
11,336,600
0.63
10. HSBC Nominees (Asing) Sdn Bhd

- Vanguard Emerging Markets Stock Index Fund
11,049,105
0.61
11. Cimsec Nominees (Tempatan) Sdn Bhd

- Rakaman Anggun Sdn Bhd
10,684,200
0.59
12. Amanahraya Trustees Berhad

- AS 1Malaysia
10,004,920
0.56
13. Citigroup Nominees (Tempatan) Sdn Bhd

- Exempt AN for Eastspring Investment Berhad
8,847,200
0.49

- Kumpulan Wang Persaraan (Diperbadankan)
7,303,960
0.41

- Exempt AN for The Bank Of New York Mellon
7,287,052
0.41
16. HLG Nominee (Tempatan) Sdn Bhd

- Chew Brothers Development Corporation Sdn Bhd
5,591,262
0.31

- Exempt AN for JPMorgan Chase Bank, National Association (U.A.E.)
5,573,912
0.31

- The Bank Of Nova Scotia
5,370,600
0.30
19. Cartaban Nominees (Asing) Sdn Bhd

- Government Of Singapore
5,250,320
0.29
20. Amanahraya Trustees Berhad

- Amanah Saham Malaysia
5,000,000
0.28
21. HLB Nominees (Asing) Sdn Bhd

- Kwek Leng Hai
4,750,000
0.26

- Exempt AN for The Bank Of Nova Scotia Asia Limited
4,344,000
0.24
23. Maybank Nominees (Tempatan) Sdn Bhd

- Public Regular Savings Fund
3,759,300
0.21

- GMO Emerging Markets Fund
3,464,400
0.19

- Ishares Public Limited Company
3,101,200
0.17
26. Valuecap Sdn Bhd
3,034,900
0.17

- Exempt AN for JPMorgan Chase Bank, National Association (U.S.A.)
2,973,720
0.17

- Teacher Retirement System Of Texas
2,901,004
0.16
29. Pakar Indra Sdn Bhd
2,703,600
0.15

- ING Insurance Berhad
2,695,600
0.15
1,606,238,415
89.29
9.
Pertubuhan Keselamatan Sosial
266
Financial Section
Other
information
(continued)
2.
ANALYSIS OF SHAREHOLDINGS AS AT 3 SEPTEMBER 2012 (continued)
Substantial Shareholders
According to the Register of Substantial Shareholders, the substantial shareholders of the Bank as at 3 September
2012 are as follows:-
Direct
Shareholders
Indirect
No. of shares
No. of shares
1,143,931,005
63.59
14,851,580
0.83(a)
Hong Leong Company (Malaysia) Berhad
- 1,163,815,985
64.70(a)
HL Holdings Sdn Bhd
- 1,163,815,985
64.70(b)
Tan Sri Quek Leng Chan
- 1,163,983,985
64.71(c)
Hong Realty (Private) Limited
- 1,163,935,985
64.71(c)
Hong Leong Investment Holdings Pte Ltd
- 1,163,935,985
64.71(c)
Kwek Holdings Pte Ltd
- 1,163,935,985
64.71(c)
Kwek Leng Beng
- 1,163,935,985
64.71(c)
Davos Investment Holdings Private Limited
- 1,163,935,985
64.71(c)
243,400
0.01 1,163,935,985
64.71(c)
Quek Leng Chye
- 1,163,935,985
64.71(c)
Guoco Assets Sdn Bhd
- 1,158,782,585
64.42(d)
GuoLine Overseas Limited
- 1,161,422,585
64.57(e)
Guoco Group Limited
- 1,161,422,585
64.57(e)
GuoLine Capital Assets Limited
- 1,163,815,985
64.70(e)
Kwek Leng Kee
Employees Provident Fund Board

Notes:
(a)

Held
(b)

Held
(c)

Held
(d)

Held
(e)

Held
through
through
through
through
through
216,183,272
12.02
subsidiaries
Hong Leong Company (Malaysia) Berhad (HLCM)
HLCM and company(ies) in which the substantial shareholder has interest
Hong Leong Financial Group Berhad (HLFG)
subsidiary(ies) and HLFG
267
Financial Section
Other
information
(continued)
3.
DIRECTORS INTERESTS AS AT 3 SEPTEMBER 2012
Subsequent to the financial year end, there is no change, as at 3 September 2012, to the Directors interests in the
ordinary shares, preference shares and/or options over ordinary shares or convertible bonds of the Bank and/or its
related corporations (other than wholly-owned subsidiaries), appearing in the Directors Report on pages 63 to 67
as recorded in the Register of Directors Shareholdings kept by the Bank under Section 134 of the Companies Act,
1965.
4. SHARE BUY BACK SCHEDULE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Month
July 2011
August 2011
September 2011
No of shares Lowest price

bought back
paid
RM
Highest
price paid
RM
Total
consideration
(including
Average
transaction
price paid
cost)
RM
RM
1,000
9.71
9.71
9.71
9,762.92
October 2011
November 2011
December 2011
January 2012
1,000
11.36
11.360
11.360
11,415.41
February 2012
March 2012
April 2012
May 2012
June 2012
268
Financial Section
Other
information
(continued)
5.
List of properties HELD AS AT 30 JUNE 2012
Location
Tenure
Description of Gross Area

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
1, Light Street
Georgetown
10200 Pulau Pinang
Freehold
Branch
premises
20,594
78
7,476
30/12/1986
15-G-1, 15-1-1 & 15-2-1

Medan Kampung Relau
Bayan Point
11900 Pulau Pinang
Freehold
Branch
premises
9,968
13
2,527
26/06/1997
42, Jalan Pending

93450 Kuching
Sarawak
Leasehold
- 859 years
(31/12/2779)
Branch
premises
4,425
30
1,942
27/12/1983
133, 135 & 137

Jalan Kampong Nyabor
96000 Sibu
Sarawak
Freehold
Branch
premises
4,871
20
3,042
28/12/1992
Jungle land at
Sungai Lisut Rejang
Sarawak Occupation Ticket
612 of 1931
Leasehold
- 99 years
(31/12/2026)
Jungle land
1,217,938
n/a
31/12/1938
25 & 27, Jalan Tun Ismail

25000 Kuantan
Pahang Darul Makmur
Freehold
Branch
premises
1,600
21
1,487
29/06/1996
69, 70 & 71, Jalan Dato'

Bandar Tunggal
70000 Seremban
Negeri Sembilan Darul Khusus
Freehold
Branch
premises
6,000
Pre-war
1,306
27/12/1994
26, Lorong Rahim Kajai 14

Taman Tun Dr Ismail
60000 Kuala Lumpur
Freehold
Branch
premises
3,750
26
534
30/12/1986
120-122, Jalan Mersing

86000 Kluang
Johor Darul Takzim
Leasehold
- 99 years
(22/8/2063)
Branch
premises
3,355
46
647
31/05/1990
10
100, Jalan Gurney

72100 Bahau
Freehold
Branch
premises
5,107
26
2,373
25/06/1992
11
12, 14 & 16,

Jalan Wong Ah Fook
80000 Johor Bahru
Johor Darul Takzim
Freehold
Branch
premises
4,174
21
3,713
25/06/1992
12
6, Jalan Merdeka
96100 Sarikei
Sarawak
Leasehold
- 60 years
(31/12/2029)
Branch
premises
2,240
43
87
18/10/1969
13
63 & 65, Jalan SS 23/15

47400 Petaling Jaya
Selangor Darul Ehsan
Freehold
Branch
premises
4,760
17
3,824
28/04/1997
269
Financial Section
Other
information
(continued)
5.
List of properties HELD AS AT 30 JUNE 2012 (continued)
Location
Tenure

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
14
24, Medan Taming 2

Taman Taming Jaya
43300 Balakong
Freehold
Branch
premises
3,037
16
1,314
28/04/1997
15
1, Jalan Takal 15/21

Seksyen 15
40000 Shah Alam
Leasehold
- 99 years
(29/6/2086)
Branch
premises
2,625
25
1,141
26/06/1997
16
Lots 3594 & 3595

Jalan Baru Pak Sabah
23000 Dungun
Terengganu Darul Iman
Leasehold
- 99 years
(2/2/2079)
Branch
premises
3,199
18
205
26/06/1997
17
Lot 3073 & 3074,

Jalan Abang Galau,
97000 Bintulu, Sarawak
Leasehold
- 60 years
(12/2/2056)
Branch
premises
2,582
15
1,164
26/06/1997
18
Lot 34, Putra Industrial Park

47000 Sungai Buloh
Freehold
Warehouse
96,219
16
2,566
26/01/1995
19
1540, Jalan Sultan Badlishah

05000 Alor Setar
Kedah Darul Aman
Leasehold
- 55 years
(28/2/2028)
Vacant
10,619
37
43
30/06/1977
20
9A & 9B, Jalan Kampong Baru

08000 Sungai Petani
Kedah Darul Aman
Freehold
Branch
premises
9,320
19
870
01/01/1994
21
45, Jalan Burma

10500 Pulau Pinang
Freehold
Branch
premises
14,277
34
2,078
24/11/1978
22
33A-C, Lintang Angsana

Bandar Baru Air Hitam
11500 Pulau Pinang
Leasehold
- 99 years
(8/4/2082)
Branch
premises
4,394
17
498
26/12/1995
23
55-57, Jalan Yang Kalsom

30250 Ipoh
Perak Darul Ridzuan
Freehold
Branch
premises
11,720
33
1,094
01/10/1984
24
27, Jalan Dewangsa

31000 Batu Gajah
Perak Darul Ridzuan
Leasehold
- 99 years
(26/2/2078)
Branch
premises
4,694
17
272
24/11/1995
25
75, Jalan Sultan Idris Shah

30000 Ipoh
Perak Darul Ridzuan
Freehold
Branch
premises
1,900
15
602
15/06/1998
26
80 & 82, Jalan Othman 1/14

46000 Petaling Jaya
Leasehold
- 99 years
(15/6/2089)
Branch
premises
9,062
22
1,212
01/06/1994
27
36, Jalan Midah 1

Taman Midah, Cheras
56000 Kuala Lumpur
Freehold
Vacant
2,700
25
204
30/11/1984
270
Financial Section
Other
information
(continued)
5.
Location
Tenure
28
19, Jalan 54, Desa Jaya

52100 Kepong
29
55, Jalan Pasar

55100 Kuala Lumpur
30
Lot 111, Jalan Mega Mendung

Leasehold
Kompleks Bandar
- 99 years
Off Jalan Klang Lama
(11/10/2076)
58200 Kuala Lumpur
31
161, Jalan Imbi

55100 Kuala Lumpur
32

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
Leasehold
- 99 years
(8/3/2081)
Branch
premises
5,859
30
351
29/11/1985
Freehold
Branch
premises
4,313
32
318
01/04/1980
Branch
premises
4,978
32
470
31/07/1988
Freehold
Vacant
2,454
16
2,518
14/02/1996
8A-C, Jalan Station

80000 Johor Bahru
Johor Darul Takzim
Freehold
Branch
premises
12,854
19
433
22/10/1977
33
109, Main Road

83700 Yong Peng
Johor Darul Takzim
Freehold
Branch
premises
2,740
24
209
01/09/1988
34
31 & 32, Jalan Kundang

Taman Bukit Pasir
83000 Batu Pahat
Johor Darul Takzim
Freehold
Branch
premises
8,932
20
496
05/03/1996
35
26 & 28, Jalan Mersing

80050 Johor Bahru
Johor Darul Takzim
Freehold
Vacant
7,040
28
1,300
22/05/1995
36
21, Jalan Tun Razak

27600 Raub
Pahang Darul Makmur
Freehold
Vacant
4,480
26
417
26/06/1986
37
1, Bentong Heights
28700 Bentong
Pahang Darul Makmur
Freehold
Branch
premises
5,432
44
37
30/06/1977
38
36, Main Road Tanah Rata

39000 Cameron Highland
Pahang Darul Makmur
Leasehold
- 99 years
(24/11/2039)
Branch
premises
1,728
72
130
30/08/1982
39
W-1-0, W-2-0 & W-1-1

Subang Square Business Centre
Jalan SS15/4G
47500 Subang Jaya
Freehold
Branch
premises
4,545
13
1,908
18/12/1999
40
2828-G-02 & 2828-1-02

Jalan Bagan Luar
12000 Butterworth
Pulau Pinang
Freehold
Branch
premises
12,173
13
3,618
18/12/1999
271
Financial Section
Other
information
(continued)
5.
Location
Tenure

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
41
Lots 568-G-17 & 568-1-17

Kompleks Mutiara
3 1/2 Mile Jalan Ipoh
51200 Kuala Lumpur
Freehold
Self service
terminal
(ATM area)
4,945
13
3,330
23/11/1999
42
Plot No 20, Jalan Bidor Raya

35500 Bidor
Perak Darul Ridzuan
Freehold
Branch
premises
3,243
13
556
23/11/1999
43
1, Persiaran Greentown 2
Greentown Business Centre
30450 Ipoh
Perak Darul Ridzuan
Leasehold
- 99 years
(21/11/2094)
Branch
premises
7,870
12
1,820
23/11/1999
44
Lots 39 & 40
Kompleks Munshi Abdullah
75100 Melaka
Leasehold
- 99 years
(24/2/2084)
Branch
premises
5,988
13
1,434
31/05/1991
45
No. 1 & 2 Jalan Raya

09800 Serdang
Kedah Darul Aman
Freehold
Branch
premises
5,840
11
423
20/09/2000
46
133 & 135, Jalan Gopeng

31900 Kampar
Perak Darul Ridzuan
Freehold
Branch
premises
4,700
11
330
13/12/2000
47
65-67, Jalan Tun HS Lee

50000 Kuala Lumpur
Freehold
Vacant
2,223
16
4,974
14/10/1996
48
34, Jalan Yong Shook Lin

46200 Petaling Jaya
Leasehold
- 99 years
(09/09/2059)
Branch
premises
1,875
19
506
26/11/1993
49
64, Jalan Tun Mustapha

87007 Labuan
Leasehold
- 999 years
(28/12/2881)
Branch
premises
1,370
21
629
30/05/1991
50
159, Jalan Imbi

55100 Kuala Lumpur
Freehold
Vacant
1,688
2,590
25/11/2005
51
163, Jalan Imbi

55100 Kuala Lumpur
Freehold
Vacant
1,688
2,655
25/10/2005
52
114 & 116, Jalan Cerdas

Taman Connaught
56000 Kuala Lumpur
Leasehold
- 99 years
(16/10/2078)
Branch
premises
12,200
3,933
07/06/2006
53
Lot A08-A09
Jalan SS 6/5A Dataran
Glomac
Pusat Bandar Kelana Jaya
47301 Petaling Jaya
Freehold
Branch
premises
9,800
2,760
06/07/2006
54
No. 2 Jalan Puteri 2/4

Bandar Puteri, Puchong
47100 Selangor Darul Ehsan
Freehold
Branch
premises
11,850
5,277
26/06/2007
272
Financial Section
Other
information
(continued)
5.
Location
Tenure

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
55
Tower A
Leasehold
PJ City Development
- 99 years
46100 Petaling Jaya, Selangor (14/08/2094)
Branch
premises
194,489
82,888
21/07/2008
56
OUG
No.2, Lorong 2/137C
Off Jalan Kelang Lama
58200 Kuala Lumpur
Leasehold
-99 years
(year 2088)
Branch
Premises
17,300
5,558
01/04/2011
57
KEP
Lot No 77C & 77D
Lot No.58529 Jalan Kepong
52100 Kuala Lumpur
Leasehold
-99 years
(7/01/2101)
Branch
Premises
30,613
9,389
01/05/2011
58
No. 122, Kapit By-Pass

96807 Kapit, Sarawak
Leasehold
-60 years
29/4/2045
4 storey
building
1,200
19
180
30/04/1985
59
No. 12A, Block B

Level 2, Fraser's Hill
Condominium
49000 Bukit Fraser's
Pahang Darul Makmur
Leasehold
-99 years
23/05/2082
1 unit
apartment
1,792
25
154
24/05/1983
60
No. 288 Jalan Raja Laut

50350 Kuala Lumpur
Wilayah Persekutuan
Freehold
Ex EBB Head
Office
839,574
19
176,353
31/01/2005
61
No. 9, Jalan Cheng Lock

50000 Kuala Lumpur
Wilayah Persekutuan
Freehold
Branch
Premises
2,199
39
330
18/09/1972
62
No. 3, Jalan Bandar Satu

Pusat Bandar Puchong
47100 Puchong
Freehold
Branch
Premises
4,687
17
2,033
04/03/1997
63
No. 1, Jalan SS15/4E

City Centre
47500 Subang Jaya
Petaling Jaya
Freehold
Branch
Premises
3,261
30
428
12/02/1991
64
No. 32 & 34, Jalan 21/19

Sea Park
46300 Petaling Jaya
Freehold
Branch
Premises
3,080
49
2,238
19/08/1997
65
No. 1, Jalan Goh Hock Huat

41400 Klang
Freehold
Branch
Premises
2,776
29
1,821
07/09/1998
66
No. 26 & 27, Jalan Kenari 1

Bandar Puchong Jaya
47100 Puchong
Freehold
Branch
Premises
3,600
16
1,715
22/01/1999
273
Financial Section
Other
information
(continued)
5.
Location
Tenure

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
67
No. 2, Jalan PJU 5/8

Dataran Sunway
Kota Damansara
47810 Petaling Jaya
Leasehold
-99 years
23/11/2100
Branch
Premises
12,892
3,581
02/12/2005
68
No. J09-6 and J02-06

Paradise Lagoon Holiday
Apartment
Batu 3 1/2 Jalan Pantai
70100 Port Dickson
Leasehold
-99 years
06/07/2087
2 units
apartment
2,088
16
232
21/04/1994
69
No. S-3, Kompleks Negeri

Jalan Dr. Krishnan
70000 Seremban
Leasehold
-99 years
30/01/2078
Storage for
branches
1,680
28
301
29/06/1981
70
Lot 4 & 5, Jalan TMR 1

Taman Melaka Raya
75000 Melaka
Leasehold
-99 years
20/3/2094
Branch
Premises
3,132
16
597
17/04/1998
71
No. 67 & 69, Jalan Merdeka

75000 Taman Merdeka Raya
Melaka
Leasehold
-99 years
07/07/2093
Branch
Premises
3,080
17
734
15/08/1999
72
No. 21 & 23
Jalan Indah 15/1, Bukit Indah
81200 Johor Bahru
Johor Darul Takzim
Freehold
Branch
Premises
5,090
10
1,780
27/05/2002
73
No. 35, 37 & 39

Jalan Johor Satu
Taman Desa Cemerlang
81800 Ulu Tiram
Johor Darul Takzim
Freehold
Branch
Premises
13,965
2,307
02/12/2003
74
No. 21, Jalan Permas 10/1

Bandar Baru Permas Jaya
81750 Masai
Johor Darul Takzim
Freehold
Branch
Premises
2,624
15
1,295
04/05/1999
75
No. C05-07
Genting Permai Park & Resort
6th Mile
69000 Genting Highland
Pahang Darul Makmur
Freehold
1 unit
apartment
1,029
13
204
02/09/1996
76
No. B-278 & B-280

Jalan Beserah
25300 Kuantan
Pahang Darul Makmur
Freehold
Branch
Premises
3,208
11
1,594
08/04/1999
274
Financial Section
Other
information
(continued)
5.
Location
Tenure

property held
(Sq-ft)
Approx. Net book

Age
value
(Years) (RM000)
Date of
acquisition
77
No. 31, 33, 35 & 37

Jalan Usahaniaga 1
Taman Niagajaya
14000 Bukit Mertajam
Seberang Perai Tengah
Penang
Freehold
Branch
Premises
15,844
1,167
07/10/2003
78
No. 26 & 27
Jalan Permatang Gedong
Taman Sejati Indah
08000 Sungai Petani
Freehold
Branch
Premises
2,800
15
706
03/09/1999
79
Lot 171, Jalan Council

95000 Bandar Sri aman
Sarawak
Leasehold
60 years
20/06/2050
Branch
Premises
1,740
16
175
21/06/1990
80
Lot No. 2013

Jalan Pisang Barat
93150 Kuching
Sarawak
Leasehold
-99 years
31/12/2038
Branch
Premises
1,390
19
23/09/1992
81
No: 3/G14, 3/G15 & 3/G16

Block 3, Lorong Api-Api 2
Api-Api Centre
88000 Kota Kinabalu
Sabah
Leasehold
-99 years
31/12/2086
Branch
Premises
4,141
17
2,047
02/04/1997
82
No. 177, Limbok Hill

70000 Seremban
Freehold
Single-storey
detached
house
6,730
39
13
16/08/1972
275
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
FEDERAL TERRITORY KL

KL Main Branch
Level 1, Wisma Hong Leong
18 Jalan Perak
50450 Kuala Lumpur
Tel : 03-21642525
Fax : 03-21641511

1
No. 34, 36 & 38

Jalan Petaling

50000 Kuala Lumpur

Tel : 03-2072 3211

Fax : 03-2026 3048

2
No. 2-0, Lorong 2/137C


58200 Kuala Lumpur

Tel : 03-7782 0823

Fax : 03-7781 8130

3
26, Lorong Rahim Kajai 14

Taman Tun Dr. Ismail

60000 Kuala Lumpur

Tel : 03-7729 3716

Fax : 03-7728 6312

4
No. 77C & D, Lot 58529

Jalan Kepong

52100 Kuala Lumpur

Tel : 03-6257 1022

Fax : 03-6251 9717

5
No. 47 & 48, Jalan Chow Kit

50350 Kuala Lumpur

Tel : 03-4043 3458

fax : 03-4043 1914

6
No. 31 & 33, Jalan 1/116B

Kuchai Entrepreneurs Park

Off Jalan Kuchai Lama

58200 Kuala Lumpur

Tel : 03-7982 6033

Fax : 03-7980 9324

7
No. 37, Jalan Telawi 3

Bangsar Baru

59100 Kuala Lumpur

Tel : 03-2283 3710

Fax : 03-2284 3349

8
No. 8 & 10, Jalan 3/50C

Taman Setapak Indah Jaya

Off Jalan Genting Kelang

53300 Kuala Lumpur

Tel : 03-4023 9046

Fax : 03-4023 9041

9

10

11

12

13

14

15

16

17

18

No. 114 & 116, Jalan Cerdas

Taman Connaught, Cheras
56000 Kuala Lumpur
Tel : 03-9102 1499
Fax : 03-9102 1497
No. 468-B2 (A), Block B
Ground Floor Rivercity 3rd Mile
Jalan Ipoh
51200 Kuala Lumpur
Tel : 03-4044 4764
Fax : 03-4044 4606
147, Jalan Imbi
55100 Kuala Lumpur
Tel : 03-2141 1402
Fax : 03-2141 1429
180-0-7 & 180-0-8
Wisma Mahkota
Taman Maluri, Cheras
55100 Kuala Lumpur
Tel : 03-9282 1507
Fax : 03-9282 1549
No. 50 Jalan Merlimau
Off Jalan Kenanga
55200 Kuala Lumpur
Tel : 03-9222 1498
Fax : 03-9222 1507
A54 Jalan Tuanku Empat
Salak South Garden
Off Jln Sungai Besi
57100 Kuala Lumpur
Tel : 03-7982 9063
Fax : 03-7982 9210
36, Jalan Midah 1
Taman Midah, Cheras
56000 Kuala Lumpur
Tel : 03-9130 8912
Fax : 03-9131 0433
55-57, Jalan Pasar
55100 Kuala Lumpur
Tel : 03-9223 5249
Fax : 03-9223 0527
111, Jalan Mega Mendung
Kompleks Bandar
58200 Kuala Lumpur
Tel : 03-7981 4411
Fax : 03-7982 7811
26, Persiaran Ara Kiri
Lucky Garden, Bangsar
59100 Kuala Lumpur
Tel : 03-2094 3914
fax : 03-2094 3745
19

20

21

22

23

24

25

26

Ground & 1st Floor

Bangunan PLC
No. 279 & 281
Jalan Tuanku Abdul Rahman
50100 Kuala Lumpur
Tel : 03-2691 5588
Fax : 03-2691 3629
No. 2, Jalan Rampai Niaga 1
Rampai Business Park
Taman Sri Rampai
53300 Kuala Lumpur
Tel : 03-4143 2639
Fax : 03-4149 0148
No. 266 & 267
Jalan Bandar 12
Taman Melawati
53100 Kuala Lumpur
Tel : 03-4106 8951
Fax : 03-4107 0152
Lot G-06, Wisma Bukit Bintang
28, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel : 03-2144 2364
Fax : 03-2144 4802
No. 44 & 46, Block A
Plaza Sinar
Jalan 8/38D, Taman Sri Sinar
Segambut
51200 Kuala Lumpur
Tel : 03-6272 9637
Fax : 03-6272 9736
No. 71 & 73
Jalan Radin Tengah
Zone J 4
Bandar Baru Seri Petaling
57000 Kuala Lumpur
Tel : 03-9058 2349
Fax : 03-9057 8041
No. 110
Jalan Tun Sambanthan
50470 Kuala Lumpur
Tel : 03-2274 0634
Fax : 03-2273 6995
No. 50, Jalan Manis 1
Taman Segar, Cheras
56100 Kuala Lumpur
Tel : 03-9132 5026
Fax : 03-9312 1370
276
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
27

28

29

30

31

32

33

34

35

No. 7 & 9, Jalan 2/109F

Plaza Danau 2
Taman Danau Desa
Off Jalan Klang Lama
58100 Kuala Lumpur
Tel : 03-7987 3868
Fax : 03-7987 7868
A-G-10 & A-01-11
No. 21 Jalan 26/70A
Desa Sri Hartamas
50480 Kuala Lumpur
Tel : 03-6201 2635
Fax : 03-6201 4034
No. 23GM & 25GM
Jalan Pandan Indah 4/8
Pandan Indah
55100 Kuala Lumpur
Tel : 03-4297 2253
Fax : 03-4297 2258
Islamic Main Branch
Jalan Perak Main
18 Jalan Perak
50450 Kuala Lumpur
Tel : 03-2164 2525
Fax : 03-2164 1511
No 120 & 122
Jalan Mega Mendung
Kompleks Bandar Batu 5
58200 Kuala Lumpur
Tel : 03-7982 9400
Fax : 03-7982 7788
No 5 & 7, Jalan Radin Anum
Bandar Baru Seri Petaling
57000 Kuala Lumpur
Tel : 03-9058 8210
Fax : 03-9058 8310
No 134 & 136, Jalan Cerdas
Taman Connaught, Cheras
56000 Kuala Lumpur
Tel : 03-9100 1022
Fax : 03-9100 1568
No 38 & 40, Jalan Telawi
Bangsar Baru
59000 Kuala Lumpur
Tel : 03-2283 6288
Fax : 03-2283 1288
No 150, Jalan Tun Sambanthan
50470 Kuala Lumpur
Tel : 03-2274 7100
Fax : 03-2274 9568
36

37

38

39

40

41

42

43

44

No. 53 & 55
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03-2148 8077
Fax : 03-2148 3488
No. 9, Jalan Tun Tan Cheng Lock
50000 Kuala Lumpur
Tel : 03-2032 4700
Fax : 03-2031 9537
Ground & Mezzanine Floor
Wisma Sin Heap Lee
No. 346, Jalan Tun Razak
50400 Kuala Lumpur
Tel : 03-2163 1457
Fax : 03-2163 1469
No 1 & 3, Jalan Pandan Jaya 3/5
Pandan Jaya
55100 Kuala Lumpur
Tel : 03-9283 7988
Fax : 03-9282 9788
No 36-38 Jln Segambut Utara
51200 Kuala Lumpur
Tel : 03-6252 3598
Fax : 03-6252 3606
No 166 - 168 Jalan 2/3A
Off KM 12 Jalan Ipoh
68100 Batu Caves
Kuala Lumpur
Tel : 03-6138 8988
Fax : 03-6136 0388
No 2, Jalan Sri Hartamas 8
Taman Sri Hartamas
50480 Kuala Lumpur
Tel : 03-6201 2743
Fax : 03-6201 2751
Ground Floor
Wisma Dergahayu
No 26,Jalan Indah 23
Taman Cheras Indah
56100 Kuala Lumpur
Tel : 03-9282 7058
Fax : 03-9284 0043
No 38, Jalan 7/108C
Jalan Sungai Besi
Taman Sungai Besi
57100 Kuala Lumpur
Tel : 03-79800747
Fax : 03-79803652
45

46

47

48

49

50

51

52

Islamic Branch
Jalan Raja Laut
Ground Floor
Menara Raja Laut
288, Jalan Raja Laut
50350 Kuala Lumpur
Tel : 03-2694 7688
Fax : 03-2694 4588
Lot. 2.66 & 2.67
Aras 2, Pavilion Kuala Lumpur
168, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel : 03-2145 1066
Fax : 03-2143 0233
No.15,16 &17
Jalan Midah Satu
Taman Midah, Cheras
56000 Kuala Lumpur
Tel : 03-9131 9388
Fax : 03-9132 6388
No. 1-GM, Jalan Perdana 4/6
55300, Pandan Perdana
Kuala Lumpur
Tel : 03-9287 8735
Fax : 03-9287 7630
Ground Floor
Menara Raja Laut
No 288, Jalan Raja Laut
50350 Kuala Lumpur
Tel : 03-2694 2288
Fax : 03-2694 7588
No 10, Jalan 1/27B, Seksyen 1
Bandar Baru Wangsa Maju
53300 Kuala Lumpur
Tel : 03-4142 2989
Fax : 03-4143 7588
No 60 Jalan Dua
Kepong Baru
52100 Kuala Lumpur
Tel : 03-6257 6709
Fax : 03-6251 4855
NO. 2-21A & 2-21A1
Jalan Desa 1/1
Desa Aman Puri
52100 Kepong
Kuala Lumpur
Tel : 03-6273 5688
Fax : 03-6272 8588
277
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
53

54

55

56

19, Jalan 54, Desa Jaya

52100 Kepong
Kuala Lumpur
Tel : 03-6276 3701
Fax : 03-6272 2012
Ground & Mezzanine Floors
No 27G & 27 M
Jalan Pandan Indah 4/2
Pandan Indah
55100 Kuala Lumpur
Tel : 03-4292 2988
Fax : 03-4292 0988
No. 29 & 30
Platinum Walk No. 2
Jalan Langkawi, Setapak
53300 Kuala Lumpur
Tel : 03-4143 3222
Fax : 03-4142 6550
Unit E-1-2, Level Block E
Pusat Komersial Southgate
No. 2 Jalan Dua
Off Jalan Chan Sow Lin
55200 Kuala Lumpur
Tel : 03-9221 0813
Fax : 03-9221 0803
FEDERAL TERRITORY PUTRAJAYA

57 Tingkat Bawah

Lot T00-U01, No. 5

Jalan P16, Precinct 16

62150 Putrajaya

Tel : 03-8888 2188

Fax : 03-8888 7288
SELANGOR DARUL EHSAN

58 80 & 82, Jalan Othman (1/14)

46000 Petaling Jaya


Tel : 03-7781 4259

Fax : 03-7781 0133

59 No. 3, Jalan Takal 15/21
Seksyen 15

40000 Shah Alam


Tel : 03-5510 9021

Fax : 03-5510 5307

60 No. 59A, Jalan Welman

48000 Rawang


Tel : 03-6091 0459

Fax : 03-6093 4482

61

62

63

64

65

66

67

68

Wisma Amsteel Securities

No. 1, Lintang Pekan Baru
Off Jalan Meru, 41050 Klang
Tel : 03-3343 7635
Fax : 03-3343 7621
No. 119 & 121
Jalan Sultan Abdul Samad
42700 Banting
Tel : 03-3187 6757
Fax : 03-3187 6652
No. 64, Jalan Stesen
45000 Kuala Selangor
Tel : 03-3289 5957
Fax : 03-3289 5955
W-1-0, W-2-0 & W-1-1
Subang Square Business Centre
Jalan SS15/4G
47500 Subang Jaya
Tel : 03-5632 9034
Fax : 03-5632 8764
No. 91, Lorong Memanda 1
Ampang Point
68000 Ampang
Tel : 03-4253 2449
Fax : 03-4253 2505
No. 2, Jalan Kinrara
Taman Kinrara, Jalan Puchong
47100 Puchong
Tel : 03-8075 2994
Fax : 03-8070 1635
No. 24, Medan Taming 2
Taman Taming Jaya
43300 Balakong
Tel : 03-8961 5948
Fax : 03-8961 5951
63 & 65, SS23/15
Taman Sea
47400 Petaling Jaya
Tel : 03-7804 8024
Fax : 03-7804 4049
69

70

71

72

73

74

75

76

12 & 14, Jalan PJS 11/28A

Metro Bandar Sunway
Bandar Sunway
46150 Petaling Jaya
Tel : 03-5637 5395
Fax : 03-5637 5397
No. 1 & 3
Jalan Sri Sarawak 17
Taman Sri Andalas
41200 Klang
Tel : 03-3324 2545
Fax : 03-3324 2553
No. 11 & 13, Jalan M/J 1
Taman Majlis Jaya
Jalan Sungai Chua
43000 Kajang
Tel : 03-8737 6090
Fax : 03-8737 6517
No. 174 & 174A, Jalan Besar
42800 Tanjung Sepat
Kuala Langat
Tel : 03-3197 2059
Fax : 03-3197 2257
No. 23 & 24, Jalan KIP 1
Taman Perindustiran KIP
52200 Selangor Darul Ehsan
Tel : 03-6277 6310
Fax : 03-6272 2687
No. 18 & 20, Jalan 20/16A
Taman Paramount
46300 Petaling Jaya
Tel : 03-7876 5115
Fax : 03-7876 4836
No. 15 & 16
Jalan Menteri Besar 2
New Sekinchan Business Centre
45400 Sekinchan
Tel : 03-3241 6351
Fax : 03-3241 6303
No. 36
Jalan Dato Shahbuddin 30
Taman Sentosa
41200 Klang
Tel : 03-5161 1602
Fax : 03-5161 1919
278
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
77

78

79

80

81

82

83

84

85

No. 39 & 41, Jalan SJ 17

Taman Selayang Jaya
68100 Batu Caves
Tel : 03-6120 6803
Fax : 03-6120 6797
No. 39, Jalan SS2/67
47300 Petaling Jaya
Tel : 03-7876 9646
Fax : 03-7876 9846
169, Jalan Teluk Pulai
41100 Klang
Tel : 03-3372 1000
Fax : 03-3372 7111
1G-3G, Jalan Wawasan 2/10
Bandar Baru Ampang
68000 Ampang
Tel : 03-4291 0437
Fax : 03-4292 8006
Ground Floor, No. 22
Jalan USJ 10/1
47620 Subang Jaya
Tel : 03-5636 7225
Fax : 03-5636 7230
No. 14 & 15, Jalan Kenari 1
Bandar Puchong Jaya
47100 Puchong
Tel : 03-8076 6650
Fax : 03-8076 6610
30, Persiaran Tun Abdul Aziz
43000 Kajang
Tel : 03-8736 3277
Fax : 03-8736 8133
No. 26, Jalan Tengku Ampuan
Zabedah D9/D
Seksyen 9
40100 Shah Alam
Tel : 03-5880 8047
Fax : 03-5880 8726
No. 25-29G, Jalan SS21/60
47400 Damansara Utama
Petaling Jaya
Tel : 03-7726 9822
Fax : 03-7726 4037
86

87

88

89

90

91

92

93

29-1, Jalan SP 2/1

Taman Serdang Perdana
43300 Seri Kembangan
Tel : 03-8943 0795
Fax : 03-8943 0867
No. G-16 & G-17
Jalan Prima SG1
Taman Prima Sri Gombak
68100 Batu Caves
Tel : 03-6184 2492
Fax : 03-6185 2689
No. 68, Lorong Batu Nilam 4A
Bandar Bukit Tinggi
41200 Klang
Tel : 03-3324 9490
Fax : 03-3324 1339
1 & 3, Jalan Seri Tanming 1F
Taman Seri Tanming, Batu 9
43200 Cheras
Tel : 03-6100 3770
Fax : 03-9100 3760
No. 7 & 9
Jalan Bunga Tanjong 6A
Taman Putra
68000 Ampang
Tel : 03-4293 9988
Fax : 03-4293 9898
34 & 36, Jalan Yong Shook Lin
46200 Petaling Jaya,
Tel : 03-7958 1269
Fax : 03-7958 1032
18, Ground Floor, Jalan 14/14
46100 Petaling Jaya
Tel : 03-7956 8490
Fax : 03-7955 0425
Wisma Keringat 2
No. 17, Lorong Batu Caves
68100 Batu Caves
Tel : 03-6187 7402
Fax : 03-6187 8042
94

95

96

97

98

99

100

101

Ground Floor, Tower A

PJ City Development
15A, Jalan 219, Section 51A
Lebuhraya Persekutuan
46100 Petaling Jaya
Tel : 03-7877 1629
Fax : 03-7876 1384
20, Jalan Goh Hock Huat
41400 Klang
Tel : 03-3342 8036
Fax : 03-3344 8872
No. E-01-07 & E-01-08
Jalan Puchong Prima 5/3
Puchong Prima
47100 Puchong
Tel : 03-8068 3285
Fax : 03-8060 5427
No. 29
Jalan Anggerik Vanilla N 31/1
Kota Kemuning
40460 Shah Alam
Tel : 03-5123 1335
Fax : 03-5123 1635
No. 30, Jalan Public
Sungai Buloh New Village
47000 Sungai Buloh
Tel : 03-6156 9385
Fax : 03-6156 9796
Lot G-18 & G-19
Perdana The Place
Damansara Perdana
47820 Petaling Jaya
Tel : 03-7724 1357
Fax : 03-7724 2167
No. 64, Jalan BRP 1/2
Bukit Rahman Putra
47000 Sungai Buloh
Tel : 03-6157 4042
Fax : 03-6157 5610
No. 5 & 7, Jalan Besar Susur 1
Tel : 03-8948 3162
Fax : 03-8948 5031
279
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
102 No. 7 & 9, Jalan Pasar Baru 2

Seksyen 3, Bandar Semenyih

43500 Semenyih


Tel : 03-8724 8639

Fax : 03-8724 7743

103 No. 48, Jalan Bandar Tiga


47100 Puchong


Tel : 03-5882 2070

Fax : 03-5882 2869

104 No. 16, Jalan SS19/6

47500 Subang Jaya


Tel : 03-5636 8295

Fax : 03-5632 1313

105 A-G-08 & A-G-09, Glomac Square

Jalan SS6/5A, Dataran Glomac

Pusat Bandar Kelana Jaya

47301 Petaling Jaya


Tel : 03-7805 1178

Fax : 03-7804 2611

106 No. 2 Jalan Puteri 2/4

Bandar Puteri

47100 Puchong


Tel : 03-8063 6839

Fax : 03-8068 6378

107 No. 1 Jalan Temenggung 21/9

Bandar Mahkota Cheras

43200 Cheras


Tel : 03-9074 6682

Fax : 03-9074 7236

108 Lot 9, Blok C

GIZA Dataran Sunway

Kota Damansara

47810 Petaling Jaya


Tel : 03-6148 1613

Fax : 03-6148 1621

109 Lot 2 & 2A, Jalan Cheras Maju

Pusat Perniagaan Cheras Maju

43200 Balakong


Tel : 03-9074 4205

Fax : 03-9074 7194

110

111

112

113

114

115

116

117

No 2-G & 4-G, Jalan Wawasan

Ampang 2/4
Bandar Baru Ampang
68000 Ampang
Tel : 03-4296 3488
Fax : 03-4295 0988
No 5, Jalan SL 1/4
Bandar Sungai Long
43000 Kajang
Tel : 03-9074 9950
Fax : 03-9075 0902
No 36, Jalan Sulaiman
43000 Kajang
Tel : 03-8734 1093
Fax : 03-8734 2082
No 216 & 218, Persiaran Pegaga
Taman Bayu Perdana
41200 Klang
Tel : 03-3324 3303
Fax : 03-3324 3305
No 1, Jalan Batu Nilam 5
Bandar Bukit Tinggi
41200 Klang
Tel : 03-3323 3201
Fax : 03-3323 3901
No. 9 & 11, Jalan 52/2
Petaling Jaya New Town Centre
46200 Petaling Jaya
Tel : 03-7958 6488
Fax : 03-7957 1405
No 90
Persiaran Raja Muda Musa
42000 Pelabuhan Klang
Tel : 03-3166 1188
Fax : 03-3167 1488
No 3, Jalan Bandar Satu
47100 Puchong
Tel : 03-5882 4388
Fax : 03-8075 1433
118

119

120

121

122

123

124

125

126

No 26 & 27 Jalan Kenari 1

Bandar Puchong Jaya
47100 Puchong
Tel : 03-5882 7100
Fax : 03-5882 7116
No 17 & 19
Jalan Bandar Rawang 5
48000 Rawang
Tel : 03-6093 5288
Fax : 03-6093 5388
Ground, 1st & 2nd Floor
No 7 & 9, Jalan Perusahaan 1
Jalan College
Tel : 03-8943 6788
Fax : 03-8943 9088
No 34, Jalan Perbahan Satu
Seksyen 26/2A
40000 Shah Alam
Tel : 03-5191 8888
Fax : 03-5191 6298
No. 10, Jalan Tuanku Ampuan
Zabedah D9/D, Seksyen 9
40100 Shah Alam
Tel : 03-5512 9888
Fax : 03-5512 9889
No. 28 & 30, Jalan SS2/67
47300 Petaling Jaya
Tel : 03-7877 6800
Fax : 03-7877 6686
No 32 & 34, Jalan 21/19
SEA Park
46300 Petaling Jaya
Tel : 03-7874 5968
Fax : 03-7874 5488
Lot 43 & 45, Jalan USJ10/1G
47620 Petaling Jaya
Tel : 03-5637 1984
Fax : 03-5637 1989
No.1, Jalan SS15/4E
City Centre Subang Jaya
47500 Subang Jaya
Tel : 03-5633 2516
Fax : 03-5634 8161
280
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
127

128

129

130

131

132

133

134

No 51 & 53, Jalan TSB 10A

Taman Industri Sungai Buloh
47000 Sungai Buloh
Tel : 03-6157 5811
Fax : 03-6157 5812
No. 2, Jalan PJU 5/8
Dataran Sunway
Kota Damansara
47810 Petaling Jaya
Tel : 03-6141 3886
Fax : 03-6141 2316
No. 5 & 7, Jalan Cempaka 1
Taman Cempaka
48200 Serendah
Hulu Selangor
Tel : 03-6081 3182
Fax : 03-6081 3186
No.26-32, Jalan Kapar
41400 Klang
Tel : 03-3343 1188
Fax : 03-3343 2988
No. 49-G
Jalan Semenyih Sentral 1
Taman Semenyih Sentral
43500 Semenyih
Tel : 03-8724 9088
Fax : 03-8724 9488
Ground, Mezzanine & 1st Floor
No. 58 & 59, Jalan Mamanda 9
Ampang Point
68000 Ampang
Tel : 03-4253 3889
Fax : 03-4260 4788
No. 1, Jalan SG 1/3
Taman Sri Gombak
68100 Batu Caves
Tel : 03-6186 6788
Fax : 03-6186 3788
No. 30 & 32, Jalan PJS 8/2
Dataran Mentari
46150 Petaling Jaya
Tel : 03-5635 5088
Fax : 03-5636 9488
135

136

No. 19
Jalan Setia Prima R U13/R
Setia Alam, Section U13
40170 Shah Alam
Tel : 03-3344 6888
Fax : 03-3344 8488
No. 3-G, Jalan Anggerik
Vanilla N31/N, Kota Kemuning
40460 Shah Alam
Tel : 03-5122 5912
Fax : 03-5122 5917
MACH BRANCH

137 Lot EG001A Ground Floor

IOI Mall Batu 9 Jalan Puchong

Bandar Puchong Jaya

47170 Puchong

Tel : 03-8070 1487

Fax : 03-8070 2309

138 Suite 1.01, Level 1

Centrepoint South

Mid Valley City

Lingkaran Syed Putra

59200 Kuala Lumpur

Tel : 03-2282 0887

Fax : 03-2282 0923
PERLIS INDERA KAYANGAN

139 No. 40 & 42, Jalan Bukit Lagi

01000 Kangar

Perlis Indera Kayangan

Tel : 04-977 1888

Fax : 04-977 2888

140 No. 10E, Lot 17

Jalan Raja Syed Alwi

01000 Kangar

Perlis Indera Kayangan

Tel : 04-977 3392

Fax : 04-977 3396
KEDAH DARUL AMAN

141 Ground & 1st Floor

No. 212 Jalan Gangsa

Seberang Jalan Putra

05150 Alor Setar

Kedah Darul Aman

Tel : 04-731 5269

Fax : 04-731 4582

142

143

144

145

146

147

148

149

No. 64 & 65, Jalan Pengkalan

Taman Pekan Baru
08000 Sungai Petani
Kedah Darul Aman
Tel : 04-423 6117
Fax : 04-423 6121
No. 1 & 2, Jalan Raya
09800 Serdang
Kedah Darul Aman
Tel : 04-407 6919
Fax : 04-407 6921
62 & 63, Jalan Bayu Satu
09000 Kulim
Kedah Darul Aman
Tel : 04-491 3606
Fax : 04-491 3604
167 & 168, Susuran Sultan
Abdul Hamid 11
Kompleks Perniagaan Sultan
Abdul Hamid, Faza 2
05050 Alor Setar
Kedah Darul Aman
Tel : 04-771 2918
Fax : 04-771 2892
9A & 9B, Jalan Kampung Baru
08000 Sungai Petani
Kedah Darul Aman
Tel : 04-420 5225
Fax : 04-422 6012
No. 172
Susuran Sultan Abdul Hamid 10
Kompleks Perniagaan
Sultan Abdul Hamid
Fasa 2
Persiaran Sultan Abdul Hamid
05050 Alor Setar
Kedah Darul Aman
Tel : 04-771 3228
Fax : 04-771 6678
No 26 & 28, Jalan Putera
05100 Alor Setar
Kedah Darul Aman
Tel : 04-730 6461
Fax : 04-730 6458
No 18K & 18L, Jalan Raya
08300 Gurun
Kedah Darul Aman
Tel : 04-468 4785
Fax : 04-468 4766
281
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
150 Ground & First Floor

No. 255, Jalan Legenda 10

Legenda Heights

08000 Sungai Petani

Kedah Darul Aman

Tel : 04-422 4352

Fax : 04-422 4355

151 No. 93, Langkawi Mall

Jalan Kelibang, Kuah

07000 Langkawi

Kedah Darul Aman

Tel : 04-966 8118

Fax : 04-966 8228

152 No 26 & 27, Jalan Permatang

Gedong, Taman Sejati Indah

08000 Sungai Petani

Kedah Darul Aman

Tel : 04-431 2288

Fax : 04-431 1627

153 No. 5, Jalan KLC 1

Kulim Landmark Central

09000 Kulim

Kedah Darul Aman

Tel : 04-490 1188

Fax : 04-490 2688

PULAU PINANG

154 No. 1, Light Street

Georgetown

10200 Pulau Pinang

Tel : 04-261 5022

Fax : 04-262 6360

155 2828-G-02 & 2828-1-02

Jalan Bagan Luar

12000 Butterworth

Pulau Pinang

Tel : 04-331 5659

Fax : 04-331 2145

156 No. 9 & 10, Jalan Todak 2

Pusat Bandar Seberang Jaya

13700 Prai, Pulau Pinang

Tel : 04-397 2097

Fax : 04-397 2094

157 No. 441-G-1, 441-G-2, 441-G-3

Jalan Burmah, Pulau Tikus

10350 Pulau Pinang

Tel : 04-228 8475

Fax : 04-228 8472

158

159

160

161

162

163

164

165

166

167

No. 15-G-1, (Bayan Point)

Medan Kampung Relau
11900 Pulau Pinang
Tel : 04-642 8643
Fax : 04-642 8640
No. 4 & 6, Lorong Usahaniaga 1
Taman Usahaniaga
Pulau Pinang
Tel : 04-537 0452
Fax : 04-537 0454
294 & 296, Jalan Jelutong
11600 Pulau Pinang
Tel : 04-281 3188
Fax : 04-281 2148
1781, Jalan Nibong Tebal
Taman Panchor Indah
14300 Pulau Pinang
Tel : 04-594 2889
Fax : 04-594 2886
33A, B & C, Lintang Angsana
Bandar Baru Ayer Itam
11500 Pulau Pinang
Tel : 04-826 9836
Fax : 04-826 9843
98-G-158, Prima Tanjung
Jalan Fettes, Tanjung Tokong
10470 Pulau Pinang
Tel : 04-890 4188
Fax : 04-899 8644
No. 1, Lebuh Kurau 1
Taman Chai Leng
Tel : 04-397 2499
Fax : 04-397 7851
45, Jalan Burma
10050 Pulau Pinang
Tel : 04-213 0501
Fax : 04-226 2779
19, Jalan Bertam
13200 Kepala Batas
Seberang Prai
Pulau Pinang
Tel : 04-575 4900
Fax : 04-575 7688
No. 723-G-G, 723-H-G & 723-1-G
Jalan Sungai Dua
11700 Pulau Pinang
Tel : 04-658 6699
Fax : 04-658 6969
168

169

170

171

172

173

174

175

No. 6963 & 6964

Jalan Ong Yi How
Kawasan Perusahaan Raja Uda
13400 Butterworth
Pulau Pinang
Tel : 04-331 2277
Fax : 04-332 2277
No. 1-G-03, Tesco Penang
No. 1, Leboh Tengku Kudin 1
Bandar Jelutong
11700 Pulau Pinang
Tel : 04-656 4698
Fax : 04-656 1840
No 130 & 132, Jalan Raja Uda
Pusat Perniagaan Raja Uda
12300 Butterworth
Pulau Pinang
Tel : 04-324 3288
Fax : 04-324 8288
Ground Floor, Wisma Wang
No 251-A, Jalan Burma
10350 Pulau Pinang
Tel : 04-229 6288
Fax : 04-229 7288
No. G17 & G18
Penang Times Square
Jalan Dato Keramat
10150 Pulau Pinang
Tel : 04-226 4177
Fax : 04-226 3946
No. 421 & 423, Jalan Burmah
10350 Pulau Pinang
Tel : 04-228 3202
Fax : 04-228 1654
No. 1823-G1
Jalan Perusahaan
Highway Auto-City
North-South Highway Juru
Interchange
Tel : 04-502 1488
Fax : 04-507 9488
No 1435 & 1436, Jalan Besar
14200 Sungai Bakap
Seberang Prai Selatan
Pulau Pinang
Tel : 04-582 1134
Fax : 04-582 5826
282
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
176

177

178

179

180

181

182

No. 26, 28 & 30

Lorong Murni 1
Taman Desa Murni
Sungai Dua
13800 Butterworth
Pulau Pinang
Tel : 04-356 2688
Fax : 04-356 5288
No.300 Jalan Jelutong
11600 Pulau Pinang
Tel : 04-282 6688
Fax : 04-281 9650
No. 16A & 16B
Lebuhraya Thean Teik
Bandar Baru Ayer Itam
15000 Pulau Pinang
Tel : 04-827 1688
Fax : 04-827 1632
No. 52 & 54
Jalan Besar Air Lintas
Taman Merbah
14300 Nibong Tebal
Pulau Pinang
Tel : 04-593 8988
Fax : 04-593 7988
No. 7 & 9, Tingkat Kikik 7
Taman Inderawasih
13600 Prai
Pulau Pinang
Tel : 04-399 3134
Fax : 04-390 6913
No. 58 & 60, Jalan Tengah
Taman Sri Tunas
Bandar Bayan Baru
11950 Bayan Lepas
Pulau Pinang
Tel : 04-645 2881
Fax : 04-645 2995
No 31,33,35 & 37
Jalan Usaha Niaga 1
Taman Niaga Jaya
Pulau Pinang
Tel : 04-536 1549
Fax : 04-539 8466
PERAK DARUL RIDZUAN

183 Lot A-G-2 (Ground Floor)

No. 1 Persiaran Greentown 2


30450 Ipoh

Perak Darul Ridzuan

Tel : 05-253 0048

Fax : 05-255 5251

184 No. 20

Jalan Bidor Raya

Off Jalan Persatuan

35500 Bidor

Perak Darul Ridzuan

Tel : 05-434 1211

Fax : 05-434 4313

185 41, Jalan Taiping

34200 Parit Buntar

Perak Darul Ridzuan

Tel : 05-716 4688

Fax : 05-716 3648

186 No. 16 & 17

Taman Sitiawan Maju

Jalan Lumut, 32000 Sitiawan

Perak Darul Ridzuan

Tel : 05-692 2316

Fax : 05-692 2320

187 No. 17

Persiaran Kledang Timur 21

Bandar Baru Menglembu

31450 Ipoh

Perak Darul Ridzuan

Tel : 05-282 9367

Fax : 05-282 9372

188 No. 28, Medan Silibin

30100 Ipoh

Perak Darul Ridzuan

Tel : 05-526 6333

Fax : 05-526 4333

189 No. 53, 55 & 57, Jalan Stesyen

34000 Taiping

Perak Darul Ridzuan

Tel : 05-806 5229

Fax : 05-806 5631

190 133, 135 Jalan Gopeng

31900 Kampar

Perak Darul Ridzuan

Tel : 05-466 5050

Fax : 05-466 5191

191

192

193

194

195

196

197

198

27 Jalan Dewangsa
31000 Batu Gajah
Perak Darul Ridzuan
Tel : 05-365 3191
Fax : 05-365 3190
11 & 12
Kompleks Menara Condong
Jalan Ah Chong
36000 Teluk Intan
Perak Darul Ridzuan
Tel : 05-623 3637
Fax : 05-623 3642
Ground Floor, 55-57
Jalan Yang Kalsom
30250 Ipoh
Perak Darul Ridzuan
Tel : 05-249 1539
Fax : 05-254 2323
75, Jalan Sultan Idris Shah
30000 Ipoh
Perak Darul Ridzuan
Tel : 05-253 7528
Fax : 05-254 7335
579 & 579A
Jalan Pasir Puteh
31650 Ipoh
Perak Darul Ridzuan
Tel : 05-322 8989
Fax : 05-322 9641
No. 91 & 93
Jalan Dato Lau Pak Khuan
Ipoh Garden
31400 Ipoh
Perak Darul Ridzuan
Tel : 05-549 5160
Fax : 05-549 5158
32400 Ayer Tawar
Perak Darul Ridzuan
Tel : 05-672 7470
Fax : 05-672 7478
No. 48
Persiaran Greentown 1
30450 Ipoh
Perak Darul Ridzuan
Tel : 05-255 7688
Fax : 05-253 0990
283
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
199

200

201

202

203

204

205

206

No. 54, 56 & 58

Jalan Kamaruddin Isa
31400 Ipoh
Perak Darul Ridzuan
Tel : 05-547 4203
Fax : 05-547 2777
Lot 63, Jalan Chui Chak
36700 Langkap
Perak Darul Ridzuan
Tel : 05-659 2840
Fax : 05-659 2843
No 2 & 4
Persiaran Perwira
Pusat Bandar Baru
34200 Parit Buntar
Perak Darul Ridzuan
Tel : 05-716 8766
Fax : 05-716 8771
Ground & 1st Floor
No. 254 & 254A
Jalan Raja Dr. Nazrin Shah
Gunung Rapat
31350 Ipoh
Perak Darul Ridzuan
Tel : 05-313 3288
Fax : 05-311 3788
No. 25 & 27
Jalan Bunga Anggerik
Taman Bunga Raya
35900 Tanjung Malim
Perak Darul Ridzuan
Tel : 05-459 8272
Fax : 05-458 3178
No. 396 & 398
Taman Saujana
Kamunting, 34600 Taiping
Perak Darul Ridzuan
Tel : 05-807 8915
Fax : 05-807 8905
No. 1 & 2
Taman Sitiawan 1
Jalan Lumut
32000 Sitiawan
Perak Darul Ridzuan
Tel : 05-691 9988
Fax : 05-691 8988
No. 116 & 117, Jalan Besar
31450 Menglembu, Ipoh
Perak Darul Ridzuan
Tel : 05-281 2088
Fax : 05-282 4088
207

Ground & 1st Floor

No. 1B, Laman Intan
Bandar Baru Teluk Intan
36000 Teluk Intan
Perak Darul Ehsan
Tel : 05-621 3188
Fax : 05-621 9188
NEGERI SEMBILAN DARUL KHUSUS

208 100, Jalan Gurney

72100 Bahau


Tel : 06-454 1413

Fax : 06-454 5358

209 No. 69, 70 & 71

Jalan Dato Bandar Tunggal

70000 Seremban


Tel : 06-762 8699

Fax : 06-763 8288

210 112, Jalan Yam Tuan Raden

72000 Kuala Pilah


Tel : 06-481 6922

Fax : 06-481 3284

211 9267 Jalan TS 2/1H

Taman Semarak 2

71800 Nilai


Tel : 06-799 1752

Fax : 06-799 1755

212 1278, Jalan Rasah

70300 Seremban

Tel : 06-761 5789

Fax : 06-761 5801

213 Lot 3120 & 3121

Jalan Besar, Lukut

71010 Port Dickson


Tel : 06-651 1878

Fax : 06-651 1900

214 No. 120 & 121

Jalan Dato Bandar Tunggal

70000 Seremban


Tel : 06-761 7075

Fax : 06-761 7078

215

216

217

Lot PT 5729 & 5730

Jalan TS 2/1D, Taman Semarak
71800 Nilai
Tel : 06-799 5289
Fax : 06-799 5292
145-G, 145-1 & 146-G
Block M, Taipan Senawang
Jalan Taman Komersil Senawang 1
Senawang Commercial Park
70450 Senawang
Tel : 06-676 2788
Fax : 06-678 3788
Ground, First & Second Floor
No. 7 & 8, Jalan S2B15
Biz Avenue, Seremban 2
70300 Seremban
Tel : 06-601 7488
Fax : 06-601 6718
MELAKA

218 345, Jalan Ong Kim Wee

75300 Melaka

Tel : 06-2842309

Fax : 06-2830153

219 150 & 152

Kompleks Munshi Abdullah

Jalan Munshi Abdullah

75100 Melaka

Tel : 06-286 5988

Fax : 06-283 0399

220 No. 102 & 104, Jalan Suria 2

Taman Malim Jaya

75250 Melaka

Tel : 06-334 3137

Fax : 06-334 3067

221 Ground Floor

Bangunan Graha Maju

Lot 315, Jalan Graha Maju

75300 Melaka

Tel : 06-283 8229

Fax : 06-283 6795

222 Lot BB-371A & B

Taman Melaka Baru

Batu Berendam

75350 Melaka

Tel : 06-317 3235

Fax : 06-317 2660

284
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
223

224

225

Lot 215 & 310, Jalan Besar

Masjid Tanah
78300 Melaka
Tel : 06-384 7137
Fax : 06-384 7232
No. 1, 1-1 & 3
Jalan Malim Jaya 2/7A
Taman Malim Permai
75250 Melaka
Tel : 06-336 3188
Fax : 06-337 3188
No. 67 & 69
Jalan Merdeka
Taman Melaka Raya
75300 Melaka
Tel : 06-281 2688
Fax : 06-281 2588
JOHOR DARUL TAKZIM

226 12-16, Jalan Wong Ah Fook

80000 Johor Bharu

Johor Darul Takzim

Tel : 07-222 8311

Fax : 07-224 9317

227 No. 70, Jalan Segamat

85300 Labis

Johor Darul Takzim

Tel : 07-925 1200

Fax : 07-925 1336

228 No. 32 & 33

Jalan Genuang

85000 Segamat

Johor Darul Takzim

Tel : 07-931 2403

Fax : 07-931 0212

229 Lot. No. 24 & 25

Jalan Ahmad Ujan

Taman Kota Besar

81900 Kota Tinggi

Johor Darul Takzim

Tel : 07-883 2020

Fax : 07-883 5989

230 120-122, Jalan Mersing

80000 Kluang

Johor Darul Takzim

Tel : 07-773 2233

Fax : 07-772 4170

231 No. 49, Jalan Jenang

83000 Batu Pahat

Johor Darul Takzim

Tel : 07-431 4435

Fax : 07-431 0641

232

233

234

235

236

237

238

239

240

No. 17 & 18, Jalan Cempaka

81750 Masai
Johor Darul Takzim
Tel : 07-252 6599
Fax : 07-252 6378
No. 61-1, 61-2, 61-3
Jalan Arab
84000 Muar
Johor Darul Takzim
Tel : 06-951 5086
Fax : 06-951 5215
No. 173 & 175
Jalan Sri Pelangi
Taman Pelangi
80400 Johor Bahru
Johor Darul Takzim
Tel : 07-335 3614
Fax : 07-334 2598
37, Jalan Harimau Tarum
Taman Century
80250 Johor Bharu
Johor Darul Takzim
Tel : 07-333 2519
Fax : 07-331 5559
No. 685, Jalan Taib
82000 Pontian
Johor Darul Takzim
Tel : 07-687 6641
Fax : 07-687 6561
2 & 2-01, Jalan Permas 10/7
81750 Johor Bharu
Johor Darul Takzim
Tel : 07-386 7065
Fax : 07-388 0762
6 & 8, Jalan Nakhoda 12
Taman Ungku Tun Aminah
81300 Skudai
Johor Darul Takzim
Tel : 07-556 6681
Fax : 07-556 6682
No. 6 & 7
Jalan Anggerik 1
Taman Kulai Utama
81000 Kulai
Johor Darul Takzim
Tel : 07-663 5282
Fax : 07-663 2336
No. LC 531
Jalan Payamas
84900 Tangkak
Johor Darul Takzim
Tel : 06-978 1994
Fax : 06-978 4684
241

242

243

244

245

246

247

248

249

109 Main Road

83700 Yong Peng
Johor Darul Takzim
Tel : 07-467 2350
Fax : 07-467 4185
No. 39 & 41
Jalan Kebudayaan 1
Taman Universiti
81300 Skudai
Johor Darul Takzim
Tel : 07-521 7817
Fax : 07-521 7726
31 & 32, Jalan Kundang
Taman Bukit Pasir
83000 Batu Pahat
Johor Darul Takzim
Tel : 07-431 4515
Fax : 07-431 7071
No. 8, Jalan Station
80000 Johor Bharu
Johor Darul Takzim
Tel : 07-222 8462
Fax : 07-276 3085
80, Jalan Dedap 13
Taman Johor Jaya
81100 Johor Bharu
Johor Darul Takzim
Tel : 07-354 6320
Fax : 07-355 2311
No. 20, Jalan Jati
Taman Nusa Bestari Jaya
81300 Skudai
Johor Darul Takzim
Tel : 07-511 2596
Fax : 07-511 3492
Lot. No. S 122, KIP Mart
Taman Tampoi Indah
81200 Tampoi
Johor Darul Takzim
Tel : 07-241 9832
Fax : 07-241 8061
No 21 & 23
Jalan Indah 15/1
Bukit Indah
81200 Johor Bahru
Johor Darul Takzim
Tel : 07-239 1388
Fax : 07-232 5988
No 9 - 11, Jalan Kundang
Taman Bukit Pasir
83000 Batu Pahat
Johor Darul Takzim
Tel : 07-433 7488
Fax : 07-434 1488
285
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
250

251

252

253

254

255

256

257

No 35, 37 & 39, Jalan Johar 1

81800 Ulu Tiram
Johor Darul Takzim
Tel : 07-861 7488
Fax : 07-861 4588
No 14, Jalan Besar
81550 Gelang Patah
Johor Darul Takzim
Tel : 07-510 4188
Fax : 07-510 4088
G & M Floor, Asia Life Building
No 33, Jalan Segget
80000 Johor Bahru
Johor Darul Takzim
Tel : 07-223 5433
Fax : 07-224 3488
81750 Masai
Johor Darul Takzim
Tel : 07-252 2960
Fax : 07-252 2963
No 30 & 31, Jalan Mawar 1
Taman Mawar
81700 Pasir Gudang
Johor Darul Takzim
Tel : 07-252 2740
Fax : 07-252 2723
No 1-1A-1B & 1C
Jalan Belimbing
81400 Senai
Johor Darul Takzim
Tel : 07-599 4598
Fax : 07-599 4231
Ground Floor
Bgn. Persekutuan Tiong Hua
Johor Baru
No. 8, Jalan Keris
Taman Sri Tebrau
80400 Johor Bahru
Johor Darul Takzim
Tel : 07-332 1323
Fax : 07-332 5841
No 1 & 3, Jalan Persiaran
Tanjung Susur 1
Taman Bukit Alif Tampoi
81200 Johor Bahru
Johor Darul Takzim
Tel : 07-235 5930
Fax : 07-235 5927
258

259

260

261

262

263

264

265

No. 21, Jalan Permas 10/1

81750 Masai
Johor Darul Takzim
Tel : 07-252 2960
Fax : 07-252 2963
Ground & 1st Floor
No. 115
Jalan Sutera Tanjung 8/2
Taman Sutera Utama
81300 Skudai
Johor Darul Takzim
Tel : 07-554 8298
Fax : 07-554 8248
No 30 & 31, Jalan Delima
Pusat Perdagangan Pontian
82000 Pontian
Johor Darul Takzim
Tel : 07-687 5002
Fax : 07-687 4998
No. 43A & 45
Jalan Genuang
Kampung Abdullah
85000 Segamat
Johor Darul Takzim
Tel : 07-931 3650
Fax : 07-931 3560
No. 20-21
Jalan Harimau Tarum
Taman Abad
80250 Johor Bahru
Johor Darul Takzim
Tel : 07-331 1421
Fax : 07-331 1409
No. 29 & 31
Jalan Molek 2/4
Taman Molek
81100 Johor Bahru
Johor Darul Takzim
Tel : 07-353 7003
Fax : 07-353 6997
No. 242 & 244, Jalan Besar
Taman Sembrong Baru
83700 Yong Peng
Johor Darul Takzim
Tel : 07-467 4850
Fax : 07-467 3170
No. 2 & 3
Jalan Anggerik 1
Taman Kulai Utama
81000 Kulai
Johor Darul Takzim
Tel : 07-662 6388
Fax : 07-662 6366
266

267

268

No. 12 & 14
Jalan Haji Manan
86000 Kluang
Johor Darul Takzim
Tel : 07-776 9388
Fax : 07-776 2088
No. 3, Pusat Dagangan Bakri
Jalan Bakri
84000 Muar
Johor Darul Takzim
Tel : 06-954 2888
Fax : 06-954 8333
Ground & Mezzanine Floors
Wisma Eng Lam
No 9, Jalan Ismail
83000 Batu Pahat
Johor Darul Takzim
Tel : 07-432 6288
Fax : 07-432 5388
KELANTAN DARUL NAIM

269 PT226 & 227

Jalan Kebun Sultan

15350 Kota Bharu

Kelantan Darul Naim

Tel : 09-747 6996

Fax : 09-747 3799

270 Ground & Mezzanine Floor

No. 1121A & 1121B

Jalan Padang Garong

Seksyen 12

15000 Kota Bharu

Kelantan Darul Naim
Tel : 09-743 8188

Fax : 09-743 6188

271 PT 320 & 321, Seksyen 25

Jalan Sultan Yahya Petra

15200 Kota Bharu

Kelantan Darul Naim

Tel : 09-748 6888

Fax : 09-747 0833

TERENGGANU DARUL IMAN

272 Lot 3594 & 3595

Jalan Baru Pak Sabah

23000 Dungun


Tel : 09-848 2766

Fax : 09-848 4480

286
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
273

274

275

No. 31, Jalan Sultan Ismail

20200 Kuala Terengganu
Tel : 09-624 4458
Fax : 09-624 4261
Menara Yayasan Islam
Terengganu
Jalan Sultan Omar
Tel : 09-623 6288
Fax : 09-622 5688
No. 1107 R,S&T, Jalan Pejabat
Tel : 09-624 2505
Fax : 09-624 2372
PAHANG DARUL MAKMUR

276 59 & 60, Jalan Temerloh

Locked Bag No. 9

28409 Mentakab

Pahang Darul Makmur

Tel : 09-277 2953

Fax : 09-277 2995

277 No. 25, Jalan Tun Ismail

25000 Kuantan

Pahang Darul Makmur

Tel : 09-515 7288

Fax : 09-515 7130

278 A125 & A127

Jalan Air Putih

25300 Kuantan

Pahang Darul Makmur

Tel : 09-568 3277

Fax : 09-568 4359

279 21 , Jalan Tun Razak

27600 Raub

Pahang Darul Makmur

Tel : 09-355 4422

Fax : 09-355 4455

280 F107, Jalan Kuantan

28000 Temerloh

Pahang Darul Makmur

Tel : 09-296 7492

Fax : 09-296 7553

281 36, Main Road, Tanah Rata

39000 Cameron Highlands

Pahang Darul Makmur

Tel : 05-491 1941

Fax : 05-491 1158

282 1, Bentong Heights

28700 Bentong

Pahang Darul Makmur

Tel : 09-222 1080

Fax : 09-222 3592

283 Ground Floor

No. A-3, Jalan Tun Ismail 1

25000 Kuantan

Pahang Darul Makmur

Tel : 09-514 3377

Fax : 09-513 6733

284 No 119 & 121
Jalan Temerloh

28400 Mentakab

Pahang Darul Makmur

Tel : 09-277 0400

Fax : 09-277 9929

285 No B278 & B280

Jalan Beserah

25300 Kuantan

Pahang Darul Makmur

Tel : 09-566 4100

Fax : 09-566 4800

BUREAU DE CHANGE

286 Lot LCPC 05

Public Concourse Area

Passenger Level

Low Cost Airline Terminal

64000 KL International Aiport

Sepang


Tel : 03-8787 3290

Fax : 03-8787 3414

287 Lot G38 Ground Floor

Batu Pahat Mall

Jalan Kluang

83000 Batu Pahat

Johor

Tel : 07-432 4644

Fax : 07-432 4775

288 Lot L2.29a, Level 2

Plaza Angsana

Jalan Skudai

81200 Johor Bahru

Johor

Tel : 07-232 8670

Fax : 07-234 4946

289 Lot No. KG9A, Ground Floor

Mahkota Parade

1 Jalan Merdeka

75000 Melaka

Tel : 06-281 9231

Fax : 06-281 9114

290

291

292

(In-Branch Bureau DeChange)

No. 35, 37 & 39
Jalan Johar 1
81800 Ulu Tiram
Johor Darul Takzim
Tel : 07-861 5408
Fax : 07-861 5429
No. 9 Jalan Tun Tan Cheng Lock
50000 Kuala Lumpur
Tel : 03-2026 1826
Fax : 03-2026 1770
No. 53 & 55 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03-2141 1119
Fax : 03-2141 1094
FEDERAL TERRITORY LABUAN

293 No. 64, Jalan Tun Mustapha

87007 Labuan

Tel : 087-423 290

Fax : 087-423 289
SABAH

294 Lot. 119, Jalan Gaya

88000 Kota Kinabalu

Sabah

Tel : 088-250 811
Fax : 088-223 261

295 Ground & 1st Floor

Lot. No. 1, Block 35

Fajar Commercial Complex

Jalan Lembaga

91013 Tawau, Sabah

Tel : 089-770 393

Fax : 089-770 403

296 No. 5 & 6 (Ground Floor)

Lorong Lintas Plaza 1

Lintas Plaza

88300 Kota Kinabalu

Sabah

Tel : 088-318 806

Fax : 088-316 226

297 Lot 1,2 & 3, Block 18, Mile 4

North Road, Bandar Indah

90722 Sandakan

Sabah

Tel : 089-229 545

Fax : 089-212 731

287
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
298

299

300

301

302

303

304

Ground Floor
Wisma Sandaraya
Humprey Street
90000 Sandakan
Sabah
Tel : 089-226 911
Fax : 089-275 499
19, Jalan Haji Saman
P.O. Box 11989
88821 Kota Kinabalu
Sabah
Tel : 088-235 699
Fax : 088-218 386
Block B 7, 11.2 km
Jalan Tuaran
Hiong Tiong Industrial Centre
88815 Inanam
Sabah
Tel : 088-436 624
Fax : 088-437 302
No 8, Jalan Pantai
Locked Bag No.124
88999 Kota Kinabalu
Sabah
Tel : 088-214 733
Fax : 088-233 134
Ground, 1st & 2nd Floor
Lot No. 4, 5 & 6, Block C
Lorong KK Taipan 2
Inanam New Township
88450 Kota Kinabalu, Sabah
Tel : 088-437 601
Fax : 088-437 596
Lot 11 & 12,
Business Centre
Bandar Indah, Mile 4
Jalan Utara
90000 Sandakan
Sabah
Tel : 089-222 202
Fax : 089-222 209
Ground & 1st Floor
TB 319 Block 38
Fajar Complex
91000 Tawau
Sabah
Tel : 089-779 441
Fax : 089-763 899
305

306

Lot 3-0-14 to 3-0-16

Block 3, Lorong Api-Api 2
Api-Api Centre
88000 Kota Kinabalu
Sabah
Tel : 088-247 688
Fax : 088-246 327
MDLD 4712, Lot 4
Jalan Kastam Lama
91100 Lahad Datu
Sabah
Tel : 089-884 488
Fax : 089-884 848

SARAWAK

307 No. 35, Jalan Khoo Hun Yeang

93000 Kuching

Sarawak

Tel : 082-240 311
Fax : 082-415 466

308

309

310

311

312

(formerly known as Electra House)
42, Jalan Pending

93450 Kuching
Sarawak
Tel : 082-336 666
Fax : 082-336 912
Lot 3073 & 3074
Jalan Abang Galau
97000 Bintulu
Sarawak
Tel : 086-332 393
Fax : 086-332 433
No. 133, 135 & 137
Jalan Kampung Nyabor
96000 Sibu
Sarawak
Tel : 084-332 698
Fax : 084-312 081
6, Jalan Merdeka
96100 Sarikei
Sarawak
Tel : 084-651 461
Fax : 084-652 784
8-10, Lorong Maju
P.O. Box 279
96508 Bintangor
Sarawak
Tel : 084-693 049
Fax : 084-693 689
313

314

315

316

317

318

319

320

Lot 1090 & 1091

Jalan Merpati
98007 Miri
Sarawak
Tel : 085-412 132
Fax : 085-419 095
Lot 13 & 14, Olive Garden
7th Mile Bazaar
Jalan Pensrissen
93250 Kuching
Sarawak
Tel : 082-250 717
Fax : 082-613 422
No. 175
Serian Bazaar
94700 Serian
Sarawak
Tel : 082-874 877
Fax : 082-874 828
Lot, 124
Saratok Bazaar
P.O. Box 71
95407 Saratok
Sarawak
Tel : 083-436 011
Fax : 083-436 012
Sublot 6, Lot 538
Jalan Lee Kai Teng
P.O. Box 34
95700 Betong
Sarawak
Tel : 083-472 278
Fax : 083-472 326
296-297
Central Park Commercial Centre
3rd Mile, 93200 Rock Road
Kuching, Sarawak
Tel : 082-236 300
Fax : 082-230 120
18, Chew Geok Lin Street
(formerly OST)
P.O.Box 1461
96000 Sibu
Sarawak
Tel : 084-336 653
Fax : 084-316 833
5E, Sabu Road
P.O. Box 106
95007 Sri Aman
Sarawak
Tel : 083-320 459
Fax : 083-320 460
288
Financial Section
NETWORK
OF BRANCHES
as at 15 July 2012
(continued)
321

322

323

324

325

326

327

328

Ground Floor
43A Jalan Buangsiol
98700 Limbang
Sarawak
Tel : 085-214 451
Fax : 085-214 452
No. 722, Jalan Masjid
P.O. Box 19
96400 Mukah
Sarawak
Tel : 084-871 726
Fax : 084-871 737
No. 155C, Jalan Satok
93400 Kuching
Sarawak
Tel : 082-233 437
Fax : 082-253 529
Lots 561 & 562
Jalan Datuk Wee Kheng Chiang
Off Jalan Padungan
93100 Kuching
Tel : 082-235 660
Fax : 082-235 527
No 211, 212 & 213
Bintulu Parkcity Commerce Square
Jalan Tun Ahmad Zaidi
97000 Bintulu
Sarawak
Tel : 086-312 941
Fax : 086-313 617
No 122
Jalan Yong Moo Chai
P.O. Box 15
96807 Kapit
Sarawak
Tel : 084-796 413
Fax : 084-796 939
Ground & 1st Floor
Lot. 10901 & 10902
Jalan Tun Jugah
93350 Kuching
Sarawak
Tel : 082-575 075
Fax : 082-578 250
Lots 11600-11602, Block 16
No. 127-129, R.H. Plaza
JalanLapangan Terbang
93250 Kuching, Sarawak
Tel : 082-466 000
Fax : 082-466 009
329

330

331

332

333

334

335

336

Lot 122, 123 & 124

Jalan Song Thian Cheok
P.O. Box 1840
Tel : 082-416 679
Fax : 082-248 157
Lot 1078 & 1079
Buangsiol Road
P.O. Box 69
98700 Limbang
Sarawak
Tel : 085-212 097
Fax : 086-212 897
Ground & 1st Floor
Lot 715 Merbau Road
98008 Miri
Sarawak
Tel : 085-415 371
Fax : 085-411 176
No 22 & 23
Suria Permata Commercial Centre
Lanang Road
96000 Sibu
Sarawak
Tel : 084-218 568
Fax : 084-212 561
Lot 2499 & 2500
Ground & First Floor
Boulevard Commercial Centre
Jalan Miri-Pujut, Km 3
98000 Miri, Sarawak
Tel : 085-424 521
Fax : 085-424 520
No 18C & 20
Lorong Tun Razak 1
Jalan Masjid Lama
96100 Sarikei
Sarawak
Tel : 084-659 188
Fax : 084-659 488
No 10, 12, 14, 16 & 18
Mission Road
96007 Sibu
Sarawak
Tel : 084-322 188
Fax : 084-310 545
No 345-347
Central Park Commercial Centre
Jalan Tun Ahmad Zaidi Adruce
93200 Kuching
Sarawak
Tel : 082-254 224
Fax : 082-243 618
337

Lot 171, Jalan Council

95000 Bandar Sri Aman
Sarawak
Tel : 083-322 117
Fax : 083-320 601
SINGAPORE

338 20 Collyer Quay

Unit #01-02 & 02-02

Tung Centre

Singapore 049319

Tel : 02-6349 8338

Fax : 02-6533 9340

HONG KONG

339 12F, The Centre

99 Queens Road

Central, Hong Kong

Tel : 852-2283 8838

Fax : 852-2285 3138

VIETNAM

340 Hong Leong Bank Vietnam Limited

Ground Floor, Centec Tower

72-74 Nguyen Thi Minh Khai Street

District 3, Ho Chi Minh City

Tel : 848-6299 8100

Fax : 852-6299 8101

341 Hong Leong Bank Vietnam Limited

1F-2F Central Building

31 Hai Ba Trung Street

Hoan Kiem District

Hanoi, Vietnam

Tel : 844-6271 0300

Fax : 844-6271 0301
(97141-X)
FORM OF PROXY
I/We
NRIC/Passport/Company No.
of
being a member of HONG LEONG BANK BERHAD (the Bank), hereby appoint

NRIC/Passport No.
of

or failing him/her

NRIC/Passport No.
of

or failing him/her, the Chairman of the meeting as my/our proxy/proxies to vote for me/us on my/our behalf at the Seventy-First
Annual General Meeting of the Bank to be held at the Theatrette, Level 1, Wisma Hong Leong, 18 Jalan Perak, 50450 Kuala
Lumpur on Thursday, 25 October 2012 at 2.30 p.m. and at any adjournment thereof.
My/Our proxy/proxies is/are to vote either on a show of hands or on a poll as indicated below with an X:
RESOLUTIONS
FOR
1.
To declare a final dividend of 27 sen per share less tax
2.
To approve the payment of Directors fees
3.
To re-elect Mr Kwek Leng Hai as a Director
4.
To re-elect YBhg Datuk Yvonne Chia as a Director
5.
To re-elect YBhg Datuk Kwek Leng San as a Director
6.
To re-elect Ms Lim Lean See as a Director
7.
To re-appoint Messrs PricewaterhouseCoopers as Auditors of the Bank and authorise the

Directors to fix their remuneration
AGAINST
Special Business
8.
To approve the ordinary resolution on Authority To Directors To Issue Shares
9.
To approve the ordinary resolution on the Proposed Renewal of Shareholders Mandate

on Recurrent Related Party Transactions of a Revenue or Trading Nature with Hong Leong
Company (Malaysia) Berhad (HLCM) and Persons Connected with HLCM
10.
To approve the ordinary resolution on Proposed Establishment of a New Executive Share

Option Scheme of up to 10% of the Issued and Paid-Up Ordinary Share Capital (Excluding
Treasury Shares) of the Bank
11.
To approve the ordinary resolution on Proposed Grant of Options to YBhg Datuk Yvonne Chia
Dated this ............... day of .. 2012

Number of shares held

Signature(s) of Member
Notes:
1. For the purpose of determining members eligibility to attend this meeting, only members whose names appear in the Record of Depositors as at
18 October 2012 shall be entitled to attend this meeting or appoint proxy(ies) to attend and vote on their behalf.
2. If you wish to appoint other person(s) to be your proxy, insert the name(s) and address(es) of the person(s) desired in the space so provided.
3. If there is no indication as to how you wish your vote(s) to be cast, the proxy will vote or abstain from voting at his/her discretion.
4. A proxy may but need not be a member of the Bank and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Bank.
5. Save for a member who is an exempt authorised nominee, a member shall not be entitled to appoint more than two proxies to attend and vote at
the same meeting. Where two or more proxies are appointed, the proportions of shareholdings to be represented by each proxy must be specified
in order for the appointments to be valid (please see note 9 below). Where a member of the Bank is an authorised nominee as defined under the
Securities Industry (Central Depositories) Act, 1991, it may appoint not more than two (2) proxies in respect of each securities account it holds
with ordinary shares of the Bank standing to the credit of the said securities account.
6. A member who is an exempt authorised nominee for multiple beneficial owners in one securities account (Omnibus Account) may appoint any
number of proxies in respect of the Omnibus Account.
7. In the case where a member is a corporation, this Form of Proxy must be executed under its Common Seal or under the hand of its Attorney.
8. All Forms of Proxy must be duly executed and deposited at the Registered Office of the Bank at Level 8, Wisma Hong Leong, 18 Jalan Perak,
50450 Kuala Lumpur not less than 48 hours before the time and date of the meeting or adjourned meeting.
9. In the event two (2) or more proxies are appointed, please fill in the ensuing section:
Name of Proxies
% of shareholdings to be represented
Fold This Flap For Sealing
Then Fold Here
Affix
Stamp
The Group Company Secretary

(Company No. 97141-X)

18 Jalan Perak
50450 Kuala Lumpur
Malaysia
1st Fold Here

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45

Annual Report 2 012 ~ Hong Leong BA NK Berhad

Group Strategic Support

Set Risk Appetite

Risk Policies and

Operational & Information

Integrated Risk Management Framework

Risk Management (continued)

Credit Risk is the risk of loss if a

Operational risk loss is the risk of

Market Risk is the risk of loss in

Liquidity Risk is the risk of loss

Hong Leong Bank Groups Key Risks

Corporate Governance is the process and structure used to direct

YBhg Tan Sri Quek Leng Chan

YBhg Datuk Yvonne Chia

Mr Kwek Leng Hai

YBhg Dato Mohamed Nazim bin Abdul Razak

Mr Choong Yee How

Mr Quek Kon Sean

YBhg Datuk Kwek Leng San

Ms Lim Lean See

YBhg Tan Sri A. Razak bin Ramli

Mr Lim Beng Choon

YBhg Dato Syed Faisal Albar bin Syed A.R Albar

Appointments to the Board

YBhg Dato Mohamed Nazim bin Abdul Razak

YBhg Tan Sri Quek Leng Chan

Mr Choong Yee How

Ms Lim Lean See

YBhg Tan Sri A. Razak bin Ramli

expiry of his term of office approved by BNM; or

Appointments to the Board (continued)

YBhg Dato Mohamed Nazim bin Abdul Razak

YBhg Tan Sri Quek Leng Chan

Mr Choong Yee How

Ms Lim Lean See

YBhg Tan Sri A. Razak bin Ramli

VII Training and Education

BNM Financial Institutions Directors Education Programme

VIII Other Board Committees

Board Credit Supervisory Committee (BCSC)

YBhg Tan Sri Quek Leng Chan (Chairman)

The members of the BCSC are as follows:-

YBhg Tan Sri Quek Leng Chan

YBhg Datuk Yvonne Chia

Mr Choong Yee How

*Mr Quek Kon Sean

Y.M. Raja Teh Maimunah Raja Abdul Aziz

^Encik Zulkiflee bin Hashim

Executive Committee (EXCO)

Level and Make-Up of Remuneration

YBhg Dato Mohamed Nazim Bin Abdul Razak

YBhg Tan Sri Quek Leng Chan

Mr Choong Yee How

Recommend to the Board the framework governing the remuneration of the:

B. DIRECTORS REMUNERATION (continued)

Level and Make-Up of Remuneration (continued)

YBhg Dato Mohamed Nazim bin Abdul Razak