2012
Annual
Report
Citibank
Berhad
Our Principles
The four key principles - the values that guide us as we perform our mission are:
Common Purpose
One team, with one goal: serving our clients and stakeholders.
Responsible Finance
Conduct that is transparent, prudent and dependable.
Ingenuity
Enhancing our clients’ lives through innovation that harnesses the breadth and
depth of our information, global network, and world-class products.
Leadership
Talented people with the best training who thrive in a diverse meritocracy that
demands excellence, initiative and courage.
Contents
2
Corporate Information
3
Chairman’s Statement
4
CEO’s Statement
10
Board of Directors - Profile
14
Statement of Corporate Governance
18
Risk Management
19
Statement of Internal Audit and
Internal Control
20
Management Reports
21
Shariah Committee
23
Ratings Statement
24
Awards & Accolades
25
Corporate Citizenship at Citibank Berhad
28
Valuing Our People
Directors’ Report
30
Statement by Directors
33
Statutory Declaration
34
Shariah Committee‘s Report
35
Independent Auditors’ Report
36
Statements of Financial Position
37
Statements of Comprehensive Income
38
Statements of Changes in Equity
39
Statements of Cash Flows
40
Notes to the Financial Statements
42
Registered Office
45th Floor, Menara Citibank
165 Jalan Ampang
50450, Kuala Lumpur
Date of incorporation
22 April 1994
Auditors
002
Citibank berhad
Annual Report 2012
Corporate Information
KPMG
In Malaysia, our banking operations yielded positive results
due to the prevailing business and investment-conducive
economic environment. The government‘s expansionary
policies and incentives such as the Economic Transformation
Programme, higher wages, capital spending by public and
private sectors, and domestic consumption are expected to
support continued economic growth.
Mr. Terence Kent Cuddyre
Chairman’s Statement
For our parent company, Citigroup, revenues, net of
interest expense, stood at US$70.2 billion, down 10%
versus the prior year. Excluding CVA/DVA and the impact
of minority investments, revenues were $77.1 billion, up
1% from 201 1. While our earnings reflect a continually
challenging environment, Citi made progress on several
fronts including an increase in revenues from Transaction
Services and Global Consumer Banking from the prior
year period.
2012 was a year of challenges, changes and successes for
Citi. For two centuries, Citi‘s central mission has been to
enable economic progress, and to support our clients on
their journey from ambition to achievement. As we continue
on our journey, I know that great things lie ahead for the
franchise – both globally and here in Malaysia. I‘m proud to
have been appointed Chairman and I appreciate the
support and guidance of the other Board members during
my transition into this new role.
Annual Report 2012
20 1 2 was a momentous year for Citigroup (Citi) as we
celebrated our 200th year, a milestone few institutions ever
reach. It has been our privilege to support some of the
biggest ideas in modern history. We thank all our clients and
employees who, over the centuries, helped conceive and
make them happen.
Citibank Berhad‘s (Citibank) strategy is well aligned with three
dominant, long-secular trends: globalisation, urbanisation
and digitisation.
Citibank berhad
The Board would like to welcome Dato‘ Dr. Thillainathan
Ramasamy and Anil Wadhwani as Independent Non Executive Director and Non-Independent Non -Executive
Director respectively.
Bank Negara Malaysia has forecasted the industry to
remain resilient despite increasing competition locally and
on-going global uncertainties. The sector is underpinned by
strong capital base, high liquidity and sustained profits with
commendable core capital ratios of 1 3.1% and risk-weighted
capital ratios of 1 4.9%.
003
I am pleased to present the Bank's annual report for the
financial year ended 31 December 2012. On behalf of the
board, I would like to thank Jonathan Christian Larsen
for his leadership as Chairman from January 2010 to
December 201 2.
Overview
In 2012, the global economy continued to experience
modest growth. Governments and central banks in several
major and emerging economies in the US and Euro zone
intermittently announced policies and intervened to
stamp the downward slide.
This negative growth trajectory and corresponding weak
market demands generally slowed economic activity in Asia
but the region still recorded a reasonably strong growth.
Despite the global economic slowdown, the Malaysian
economy registered a respectable 5.6% annual growth,
underscored mainly by private and public sector investments
particularly in transportation, construction, oil and gas and
utilities subsectors.
The banking sector leveraged on the domestic economic
environment and registered a stable performance,
buttressed by strong capital ratios, good profits and
sufficient liquidity.
During the year, to further bolster the banking industry,
Bank Negara announced four improvements including
reducing complexity and increasing transparency;
stronger focus on more responsible and sustainable
financial business practice; and reinforcing buffers to
withstand future shocks.
For the financial year ended 31 December 2012, the Bank
registered a pre-tax profit of RM790 million, compared
with RM857 million achieved the previous year.
Total net income was RM 1 .85 billion in 20 1 2 , a marginal
decrease from 2011. The Bank‘s return on equity before
tax decreased to 19.0% for the financial period ended 31
December 20 1 2 compared with 22.5% in 2011. Our
liquidity continues to be exceptionally strong, with cash
and short term funds and placements with financial
institutions in excess of RM10.6 billion.
The bank‘s risk weighted capital adequacy ratio stood at
a comfortable 16.9% (before dividend), based on its
audited capital base as at 31 December 20 1 2 . The Bank‘s
net interest income was RM 1 .2 billion in 2012 while
non-interest income increased to RM650 million in 2012
from RM630 million in 20 1 1 .
Business Highlights in 2012
Citibank successfully cemented its position as a leading
financial institution with the launch of a range of enhanced
and innovative products and services in 20 1 2 .
Some of the key business highlights in 2012 included:
• The launch of securities lending services via our OpenLend
platform - aimed at enabling investors to take advantage
of the lucrative earning opportunities in Asian markets.
004
Citibank berhad
Annual Report 2012
Ceo’s Statement
2012 - The Year in Review
In 20 12 , the Bank continued to offer innovative products
and quality services to help our customers make informed
decisions to grow their savings and investment portfolio.
• Enhanced Citibank value proposition for the emerging
affluent segment with a 24-hour electronic chat or e-chat
service, a first by a financial institution in Malaysia, and a
Call Me service, which allowed travelling customers to
request a call back from Citibank anytime, anywhere.
• Increased number of countries for Citi Global Transfer
(CGT) to more than 30 to enable free and instant funds
transfers within Citibank accounts across the world.
• Value-added benefits for our Cards customers – benefits
ranging from free insurance protection, hospitalisation
benefits, compensation for losses suffered from snatch
thefts and exclusive, queue-free KLIA airport limo taxi
rides home.
• The launch of an online home loan approval tool that
helped customers establish their loan eligibility status
instantly. Also piloted a 10 minutes approval service
based on credit bureau requirements, which gave
customers a quicker and complete result of their loan
eligibility against the longer market practice of 3-5 days.
• Re-launched our new Learning and Development Centre
at Menara Citibank – a testament to our on-going
commitment and investment in employee development
and learning.
• Broadened our access to customers through our
ubiquitous virtual presence via Citibank‘s webpage,
Twitter, YouTube, Blog, Facebook and LinkedIn.
• Physical access at over 1 1 ,000 ATMs nationwide
through 20 Malaysian Electronic Payment System
(MEPS) member banks at 2,000 locations nationwide,
making Citibank the first foreign bank in Malaysia to
gain complete access to the MEPS Interbank GIRO.
Although the Malaysian economy grew at a healthy rate
amidst an overall sluggish global economy, our research
showed consumers had become increasingly discerning
about savings and in selecting credit cards that offered
the best value-for-money propositions. Hence, we
remained completely cognisant of consumer spending
trends and behaviour patterns, in particular, their banking
and lifestyle needs.
We practiced responsible finance and ensured our credit
cards offered tangible value and strong benefits by
incorporating enhanced benefits into our product offerings.
Citibank Platinum Cardholders were awarded free
insurance protection on purchases made with their Citibank
cards. Depending on the type of cards held, cardholders
enjoyed worry-free shopping as their purchases were fully
protected based on our three insurance benefit options,
namely extended warranty, purchase or refund at no extra
cost. We also introduced Cash Assure Plus 400, which
provided a daily income of RM400 as a hospitalisation
benefit to customers and Snatch Protect that offered
compensation for losses sustained from snatch thefts.
For Citibank PremierMiles cardholders, we offered
exclusive, queue-free KLIA airport limo taxi rides home
when they returned from their overseas trip. Cardholders
who swiped their card a minimum of three times while
travelling abroad could redeem their free ride home from
a Citibank Priority Booth at the Airport Limo (M) Sdn Bhd
counter, where a dedicated staff ushered them straight to
a waiting limo.
This benefit was in addition to discounts offered on duty
free shopping at KLIA, airport lounge access for both
local and global travellers and card miles that could be
redeemed to fly to over 150 destinations on more than
70 international airlines including Malaysian Airlines
(Enrich), Thai Airways (Royal Orchid Plus), Singapore
Airlines (KrisFlyer), Cathay Pacific (Asia Miles) and Delta
Airlines (SkyMiles).
Together with our co-brand partner, AirAsia, we launched
the AirAsia-Citibank Platinum Visa and AirAsia-Citibank
Gold Visa Credit cards, which gave our customers new
benefits such as upgrades to AirAsia‘s X Premium FlatBed
seats, free in-flight meals and free seat selection.
Citibank also made dreams come true for 18 Citibank VISA
Credit cardholders who each won two passes to catch the
London 2012 Olympic Games. The prizes offered included
round trip air fares to London for two, accommodation at
the Hilton London Metropole Hotel, and tickets to watch
the Olympic Games.
Citibank teamed up with renowned jeweller, Tiffany & Co
for its sparking bridal campaign and treated loyal
customers to special gifts for purchases made at Tiffany
stores in Pavilion KL and KLCC.
Meanwhile, for our tech-loving card members, we jointly
organised contests with Samsung and gave away 300
units of Samsung SIII and 500 units of items like 55inch
TV, Galaxy Note II and Table Cameras.
Our value proposition and exemplary service have helped us
remain the market leader in the credit card industry in terms
of credit card usage. Bearing testimony to this, Citibank was
awarded the Reader’s Digest Trusted Brand Award 2012 for
the third time running in the finance category.
Retail Banking
The volatility of the capital markets did not dampen
Citibank’s retail banking business in 2012. We strived to
address clients’ dynamic needs, foster stronger relationships
and provide stand-out products and services with better
return on investments.
As the emerging affluent segment is a top priority for Citi
across Asia, last February we re-launched our Rethink
Banking value proposition for this segment to include some
enhanced features such as 24-hour electronic chat or
e-chat service to customers, a first by a financial institution
in the country, and a “Call Me” service especially useful for
travelling customers who can request a call back from
Citibank 24x7, from anywhere in the world. We also made
available a dedicated personal banker as a single point of
contact as well as benefits on selected products and
services. The improved value proposition followed results
of a consumer research conducted by Citibank, which
focused on preferences, financial needs and lifestyle
changes of emerging affluent clients.
During the year, we expanded the number of countries for
Citi Global Transfer (CGT) to more than 30 to enable free
and instant funds transfers within Citibank accounts across
the world.
Ceo’s Statement
Credit Cards
Annual Report 2012
Consumer Banking
Other benefits card members enjoyed were exclusive
privileges including up to 50% off at over 800 hotels
worldwide, dining deals and other offers at over 4,000
dining outlets across the globe. Consumers could also
earn 3X AirAsia Points for every Ringgit spent, based on
a tiered spending system. The AirAsia Points could be
redeemed for AirAsia e-Gift vouchers, items from the
Citibank Rewards Catalogue or for Instant Rewards
redemption at selected merchants nationwide.
Citibank berhad
As at end 20 12 , we retained our leadership positions in
credit cards, FX Options, Government Bond Trading and
Custody and Cash Management. We are also amongst the
top three in the Wealth Management segment. Our brand
image was further heightened as we continued to reach
out and provide quality service and products to our
customers all over Malaysia.
The co-brand cards also gave consumers the opportunity
to effectively manage their monthly purchases by
consolidating their daily and business expenses on one
card. This enabled them to save more on their travel and
lifestyle needs as they could use the benefits and
evergreen AirAsia Points earned.
005
In recognition of our banking products and services, we
were awarded the Reader‘s Digest Trusted Brand Award
2012 for the third time running in the finance category
and we were awarded Best Foreign Cash Management
Bank in Malaysia by Asiamoney, Best International Trade
Bank in Malaysia by Trade Finance and Best Corporate /
Institutional Internet Bank in Malaysia by Global Finance.
We also launched the new i-Wealth Goal Planner that
allowed consumers to understand their financial goals
and how to achieve them.
our clients embraced data analytics tools based on cloud
computing technology that introduced them to new insights
into their operational flows and electronic statements.
We continued to expand our investment services by
capitalising on our exclusive partnership in Malaysia with
Franklin Templeton Investments with the launch of the
Templeton Global Total Return Fund last November. The
partnership offered a unique opportunity for our high net
worth investors to diversify their investment portfolio.
Via the Templeton Global Total Return Fund, Citibank
offered qualified Malaysian investors the opportunity to
tap into an award-winning and actively managed global
fixed income portfolio.
With our automated global cash management solutions,
clients were able to control their offshore operations
from Malaysia, supporting the development of the
treasury management industry locally.
Citibank berhad
Annual Report 2012
Ceo’s Statement
In line with our position as a leading bank in research and
advisory services, we held a market outlook presentation
by Citibank's Director and Senior Investment Strategist
and continued to organise our Leadership series,
throughout the year, in Kuala Lumpur, Penang and Johor
Bahru. Our existing investment customers were also
invited to attend product and market presentations by
Chief Executive Officers and Chief Information Officers of
Citibank’s strategic investment management partners.
The bank once again won accolades from three
international publications. Citibank was awarded Best
Foreign Cash Management Bank in Malaysia by
Asiamoney, Best International Trade Bank in Malaysia by
Trade Finance and Best Corporate / Institutional Internet
Bank in Malaysia by Global Finance in industry polls
conducted by these publications respectively.
Mortgages
Securities Services
In line with Bank Negara‘s responsible lending aimed at
containing increasing household debt, prudent lending
guidelines were slowly introduced into the market. The
new guidelines levelled the playing field to some extent
and ensured the mortgage industry stayed relatively
healthy, stable and fair.
Citibank‘s Securities and Fund Services registered
another good year as both Asset Under Custody (AUC)
and transaction volumes reached all-time highs on the
back of improved market conditions and additional
mandates from new and existing clients.
From 2012, we concentrated our mortgage business on
three key strategies, namely targeting the affluent and
emerging affluent segments, building the prime
developers channel (without bridging loans) and increasing
sales force productivity. These helped drive mortgage
growth 37% year-on-year and stabilised our portfolio of
End Net Receivables or net money owed.
We achieved Top-Rated status in the 2012 Global
Custodian Emerging Markets survey for both Leading and
Cross Border Clients, reflecting our ability to meet client
demands and to stay at the forefront of customer service.
We also used our knowledge, experience and expertise in
post-trade services to actively engage in various
initiatives to enhance market infrastructures.
Based on research findings on what our target consumers
wanted from their home loans, we created a new
Customer Value Proposition (CVP) that changed the
home loan service process. Last June, we launched the
first phase; an online self-service home loan indicative
approval tool that instantly informed customers of their
loan eligibility. In December, we piloted a 10 minute
indicative approval service based on credit bureau
requirements. This service offered customers a faster and
more conclusive indication of their loan eligibility in 10
minutes versus the market practice of 3-5 days. We
launched this first-to-market approach at all our branches
in January 2013 to good reviews. We will continue
enhancing our CVP in phases.
Securities and Banking
Institutional Client Group
OpenLend is part of Citibank‘s investment services in 72
markets globally, delivered through the OpenInvestor platform.
Global Transaction Services
Treasury and Trade Solutions
006
Trade finance experienced strong demand from the
expanding domestic economy. Import and supply chain
services registered high growth in various industry
segments. This enabled Citibank to be well positioned to
facilitate trade flows through our global network while
online trade services provided convenience and
accessibility to our clients‘ broader supply chain partners.
Our innovation in Cash Management enabled us to
facilitate the digitisation and globalisation of our
corporate and institutional clients.
For our corporate clients, we launched a new mobile
banking service called CitiDirect Mobile. A large majority of
Global Markets
Citibank launched its securities lending services via its
OpenLend platform to enable offshore and domestic
investors‘ access to revenue opportunities in the
Malaysian market as part of our commitment to expand
our product offering.
The new service leverages our on-the-ground expertise
and global product capabilities through our core
in-country infrastructure, as well as our product and
relationship management teams.
Islamic Banking Division
In 2012, Citibank successfully launched an innovative
Islamic investment strategy for institutional clients that
dynamically adjusted their asset allocation to various
Islamic assets globally according to market trends. Our
first major transaction was executed with an Islamic fund
manager using Citibank‘s new Islamic Negotiable
Instrument platform.
The Community We Work and Live In
At Citi, we aim to conduct business in a manner that creates
value for our clients, shareholders, people and communities.
We reinforce our commitment to Responsible Finance and
financial inclusion with innovative business endeavours,
with robust philanthropic investments and by recruiting
and supporting a diverse workforce — because being a
good corporate citizen starts with operating responsibly.
As a financial institution and a group, we embrace the
challenge to help reach the 2.5 billion people in the world
with no access to financial services.
In Malaysia, our corporate citizenship initiatives continued to
focus on supporting and helping people of all ages
understand and practice financial management so that
they can better manage their lives and livelihood. Last year,
Citi Foundation allocated US$210,000 to fund a number of
financial education initiatives with community partners.
Citibank and ERA Consumer Malaysia reached out to 800
kindergarten children between the ages of four and six in
urban and rural areas via My First Ringgit- our customised
financial education programme.
For our Stretching Your Ringgit financial education series,
we organised 20 financial education workshops for 800
young workers, from ages 18 to 35 years, in 10 states in
Peninsular Malaysia. We also partnered with Astro to air
radio infomercials on Hitz.fm, Era FM and My FM as part
of our continuing effort to increase awareness and
encourage the practice of financial management amongst
the low to middle income groups.
The inaugural CITI-UPM Financial Empowerment for Mature
Women programme was launched for low income women,
who earned less than US$1,000 and lived within the Klang
Valley. We collaborated with Habitat For Humanity (HFH) to
equip 50 low income families in the Klang Valley with
practical financial knowledge to improve their homes.
During the year, we facilitated approximately 110
internal employee moves under the 2+3 policy whilst
the Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career
development opportunities for 164 selected employees.
We also launched an Employee Assistance Program
(EAP) to provide support services such as counselling,
wellness talks and on-site consultations to all permanent
employees of Citibank.
Under Citi Live Well, more than 870 employees attended
14 talks on interesting work and health related topics.
Key Business Priorities for 2013
We aim to leverage on our global presence, digitised
banking technologies, innovative spirit, in-depth skill set,
knowledge and experience, to be first- to-market with
cutting-edge market relevant product and services that
will continue to differentiate us in the market with our
target clients.
Our key business priorities for 2013 include the following:
• Maintain robust risk management practices and a high
level of vigilance on asset quality.
• Invest strategically in innovation and focus in delivering
stronger value propositions to our clients.
Ceo’s Statement
For three consecutive years, in the finance category,
Citibank was awarded the Reader‘s Digest Trusted Brand
Award 2012. Three publications recognised Citibank with
accolades - Best Foreign Cash Management Bank in Malaysia
by Asiamoney, Best International Trade Bank in Malaysia by
Trade Finance and Best Corporate / Institutional Internet
Bank in Malaysia by Global Finance.
At Citi, people are our biggest asset. Our efforts would
not be possible without the strength of a diverse and
skilled global workforce.
• Continue operational improvement and cost efficiency.
• Build or reinforce market leadership in credit cards,
mortgage and the affluent segment.
• Strengthen relationship with customers and focus on
client satisfaction, loyalty and retention.
• Drive rigorous talent identification and development.
Outlook for 2013
The world economy is expected to recover, albeit
unevenly and moderately in 2013. Countries in the Asian
region, including Malaysia, are forecast to register robust
growth and remain largely resilient relative to the weaker
global environment.
The Malaysian banking sector is projected to remain
positive, buoyed by the government‘s economic
transformation initiatives, diverse natural resources,
supportive regulatory policies and Bank Negara‘s close
supervisory activities.
Annual Report 2012
Significant Events & Accolades
Our People
Citibank berhad
Our Citi Transaction Services continued to develop
cross-border Shariah compliant services with the
implementation of automated liquidity management
solutions, with funds over US$50 million under
management, for clients across Citi branches in Asia and
Europe. These services were aimed at supporting the
growth of Islamic investments offshore and multinational
treasury management centres in Malaysia.
Last year, Citi Global Community Day had an added
significance as it coincided with Citi‘s 200th anniversary.
Globally, more than 110,000 Citi volunteers participated in
1,300 service projects in 92 countries around the world
that benefitted local communities. In Malaysia, the Soup
Kitchen for the Homeless‘ theme prevailed for our Global
Community Day, which saw around 7,000 Citibank
volunteers take part in various community-based activities.
007
This strategy received positive reception from clients, and
was part of a larger effort by Citibank to promote Malaysia
as a centre of Islamic wealth management under the ambit
of the Malaysia International Finance Centre (MIFC).
At the bank level, Citi’s more than 200-year legacy of
innovation will continue to take centre stage.
We will continue to listen to our customers, innovate and
proactively deliver market-appropriate and differentiated
products and services to our target clients.
We will continue to exercise prudence and governance in
our operations, mitigate risks and further our presence
as a leading financial institution and contribute
constructively to the growth of the local banking industry.
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Citibank berhad
Annual Report 2012
Ceo’s Statement
Sanjeev Nanavati
Chief Executive Officer
003
Mr. Terence Cuddyre joined the Bank on 14 December
2010 as a Non Independent Non Executive Director. He
serves on the Audit Committee and Risk Management
Committee of the Bank.
He is currently Citigroup Country Officer for Brunei, a
position which he assumed on 1 July 2009 and cluster
head for Bangladesh, Sri Lanka and Brunei. Prior to that,
he spent four years as the Head of Training for the Asia
Pacific region (Citi Centre for Advanced Learning). He has
also served as Citigroup Country Officer for Thailand
(2002 – 2005) and was North Asia Regional Risk Officer
(2000 – 2001).
Before moving to Malaysia, he was Managing Director and
Global Head of Citigroup Depository Receipt Services based
in New York and Hong Kong, responsible for all aspects of
the ADR / GDR product offering globally. Mr. Nanavati joined
the Citigroup Depository Receipt Services Management team
in July 2001 and strategically repositioned the business,
creating a differentiated value proposition for clients.
Mr. Cuddyre joined Citigroup in 2000 after 23 years with
Bank of America. He held numerous international roles
including Country Head of Ireland, Korea, Hong Kong and
China. He also held several risk positions in North
America and Asia.
Prior to joining Citigroup, he was the Head of Corporate and
Investment Banking for 6 years at one of the largest
international banks in India and prior to that worked for 12
years with a major U.S. bank in M&A and Capital Markets,
working in the United States and Hong Kong.
He has also been active in the American Chamber of
Commerce, serving on the boards in Hong Kong, Korea
and China. In Thailand, he served as Chairman.
Mr. Nanavati holds an MBA Degree from Syracuse University
in the United States. At present, he is the President for the
American Malaysian Chamber of Commerce and also a
Council member of the Association of Banks in Malaysia.
Citibank berhad
Annual Report 2012
Board of Directors - Profile
Mr. Cuddyre holds a B.A. in Economics from University of
California, Santa Barbara and a MBA from the Wharton
Business School, University of Pennsylvania.
010
Mr. Sanjeev Nanavati was appointed the Bank‘s Chief
Executive Officer on 5 October 2007. He is responsible for
Citibank‘s retail banking, credit cards, corporate banking,
investment banking, global transaction services, equities,
fixed income and treasury activities in Malaysia.
Mr. Terence Kent Cuddyre
Mr. Sanjeev Nanavati
Tan Sri Dato' Hj Omar joined the Bank on 3 May 2000 as an
Independent Non Executive Director. He serves as the
Chairman of the Nominating Committee, and a member of
the Risk Management Committee and the Audit Committee
of the Bank.
Dato‘ Siow Kim Lun is currently a board member of
Kumpulan Wang Persaraan, UMW Holdings Berhad, W Z
Steel Berhad, Eita Resources Berhad, Hong Leong
Assurance Berhad and MainStreet Advisers Sdn Bhd. He is
also a member of the Land Public Transport Commission.
He is a Non-Executive Director of UEM Group Berhad and
UEM Builders Berhad and also serves as a Non-Executive
Director on the Board of KLCC (Holdings) Sdn Bhd,
Cyberview Sdn Bhd, PNB Commercial Sdn Bhd and Selia
Senggara Sdn Bhd.
From 1993 to 2006, Dato‘ Siow was with the Securities
Commission (SC), where he has served as the Director of
its Issues and Investment Division and the Director of its
Market Supervision Division. Prior to joining the SC, Dato‘
Siow has worked in the investment banking and financial
services industry in Malaysia for over 12 years.
He is a Fellow of the Institution of Engineers Malaysia and a
professional engineer registered with the Board of Engineers
Malaysia.
Tan Sri Dato' Hj Omar B. Ibrahim
Board of Directors - Profile
Tan Sri Dato' Hj Omar holds a Master of Science from the
University of Southampton and a Bachelor of Engineering
from the University of Malaya.
Dato’ Siow Kim Lun
Annual Report 2012
He has been the President of The Board of Engineers
Malaysia, The Malaysian Water Association and Malaysian
Structural Steel Association at various times between 1988
and 1999.
Dato‘ Siow has been a director of Citibank Berhad since
April 2007. He is presently the Chairman of the Bank‘s
Risk Management Committee, and a member of the
Nominating Committee and Audit Committee.
Citibank berhad
Tan Sri Dato' Hj Omar has particular expertise in structural
engineering and water supply engineering, his professional
work experience has been varied though, including design
assignments as well as project management to general
management.
Dato‘ Siow holds an MBA from the Catholic University of
Leuven, Belgium and a Bachelor of Economics (Hons)
from the National University of Malaysia. He has also
attended the Advanced Management Program at Harvard
Business School.
01 1
He has spent more than three decades serving the
government as a civil engineer in the Public Works
Department (PWD) of Malaysia and during this long tenure,
he held many positions in the department, culminating in the
position of PWD's Director-General from 1996 to 1999.
Ms. Agnes Liew Yun Chong was appointed a Non Independent
Non Executive Director of the bank on 1 November 2010. She
is also a member of the Risk Management Committee and
Nominating Committee of Citibank Berhad.
Dato‘ Dr. R. Thillainathan was appointed to the Board on 6
September 2012 as an Independent Non Executive Director.
He is the Chairman of the Audit Committee, and a member of
the Risk Management Committee, and Nominating Committee.
Ms. Agnes Liew is responsible for Citigroup’s Corporate Bank in
Asia Pacific. The Asia Pacific Corporate Bank is the coverage
organisation that delivers the full spectrum of product solutions
and Citi‘s extensive global network that spans over 100 countries,
to institutional clients across 16 markets in Asia, including large
public and private corporations. She is also a member of the
Global Corporate Banking Operating Committee (NY) and chairs
the Asia Pacific Corporate Banking Operating Committee.
He sits on the Boards of Bursa Malaysia Berhad, Petronas
Dagangan Berhad, Genting Berhad, Allianz General Insurance
Company (Malaysia) Berhad, Allianz Life Insurance Malaysia
Berhad, Allianz Malaysia Berhad and Asia Capital Reinsurance
Malaysia Sdn Bhd. He is also a board member of Private
Pension Administrator Malaysia and Wawasan Open University
Sdn Bhd.
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Citibank berhad
Annual Report 2012
Board of Directors - Profile
Ms. Agnes Liew joined Citi as a Management Associate in 1982
and during her career with Citi, has held a number of diverse
key management positions in Risk and Banking in Asia Pacific.
Between 2000 and 2003, Agnes was the Corporate Bank Head
of Singapore. In 2003, Agnes was appointed Country Risk
Manager of the Corporate and Investment Bank, Citi Taiwan.
She subsequently moved into the Regional Risk Management
Office in Asia Pacific and assumed the role of Head of Risk,
ASEAN, Corporate and Investment Bank in 2005.
Between 2007 and 2010, Ms. Agnes Liew led Global Subsidiaries
Group in Asia Pacific and was responsible for the relationship
coverage of global multinational subsidiaries across 16 markets.
Under her leadership, the Global Subsidiaries Group in Asia has
grown to be a significant pillar of the Global Banking franchise.
During that time, she was also the Global Banking Head of
ASEAN (ex Singapore), responsible for the relationship coverage
of large corporate clients, including financial institutions.
Ms. Agnes Liew was names by Finance Asia in 20 1 1 as one of
the Top 20 Women in Finance in Asia.
Ms. Agnes Liew holds an LL.B (Hons) from the University of
Singapore and is a member of the Supreme Court of Singapore.
Ms. Agnes Liew Yun Chong
He has been with the Genting Group since 1989. He was the
Chief Operating Officer of the company from 2002 to 2006
and retired as an Executive Director in 2007. Dato‘ Dr. R.
Thillainathan has extensive years of experience in finance
and banking and is actively involved in numerous professional
and national bodies. He is also a member of the Working
Group of the Economic Council of the Government of Malaysia
and Group of Experts of ASEAN Capital Markets Forum. He was
also the past president of the Malaysian Economic Association.
He holds a First Class Honours in Bachelor of Arts (Economics),
University of Malaya (1968) and obtained his Masters and
PhD in Economics from the London School of Economics. He
is also a Fellow of the Institute of Bankers, Malaysia.
Dato’ Dr. R. Thillainathan
Mr. Anil Wadhwani joined the Board as a Non Independent
Non Executive Director on 22 February 2013 and is a
member of the Audit Committee.
He is currently Citi Asia Pacific Regional Head of Cards
and Personal Loans. He is also the South East Asia Cluster
Head for International Personal Banking as well as the
Consumer Business for Indonesia, Malaysia, Philippines,
Singapore, Thailand and Vietnam.
Annual Report 2012
Mr. Anil Wadhwani
Citibank berhad
Mr. Wadhwani graduated with a Bachelor of Commerce and
Masters in Management Studies from Mumbai University.
013
Mr. Wadhwani is a long-term Citi employee. Having joined
the bank in 1992, he worked in various frontline
assignments in Cards and Retail Banking as well as
leading Customer Franchise in India. Among other
achievements, he established the Suvidha franchise in
multiple geographies in India, which is widely regarded as
a unique customer acquisition and delivery model and
serves as a template for many of Citi Bank-At-Work
initiatives around the world.
Board of Directors - Profile
Prior to his current roles, he was the Chief Executive
Officer of Citibank Singapore Ltd and the Consumer
Markets Head for Singapore. In May 2010 he took on
additional responsibility for the Rethink Banking segment
across the region. Citi Consumer business has changed
the competitive landscape in Singapore where Mr. Anil
Wadhwani has driven distribution and growth, built
perceptual scale and asserted Citi‘s leadership position in
the market place. In his regional role, he worked in
partnership with the countries to spearhead the Rethink
Banking segment.
The Bank aspires to achieve the highest standards in ethical
conduct by delivering our promise to clients, reporting
our financial results accurately and transparently and
maintaining full compliance with all laws, rules and
regulations governing the Bank's business operations.
The Bank has also taken the necessary steps to ensure
conformity with Bank Negara Malaysia's (BNM) Guidelines
on Corporate Governance for Licensed Institutions
(Revised BNM / GP1).
Board Composition
The Board comprises seven members.
The following is the board line-up:
014
Citibank berhad
Annual Report 2012
Statement of Corporate Governance
• Mr. Terence Kent Cuddyre
Non-Independent Non-Executive Director / Chairman
(appointed Chairman with effect from 12 March 2013)
• Mr. Sanjeev Nanavati
Non-Independent Executive Director /
Chief Executive Officer
• Tan Sri Dato' Hj Omar B. Ibrahim
Independent Non-Executive Director
• Dato' Siow Kim Lun
Independent Non-Executive Director
• Ms. Agnes Liew Yun Chong
Non-Independent Non-Executive Director
• Dato’ Dr. Thillainathan a/l Ramasamy
Independent Non-Executive Director
(appointed with effect from 6 September 2012)
• Mr. Anil Wadhwani
Non-Independent Non-Executive Director
(appointed with effect from 22 February 2013)
• Mr. Jonathan Christian Larsen
Non-Independent Non-Executive Director / Chairman
(resigned with effect from 11 December 2012)
The individual profiles of the above mentioned directors
are set out on pages 10 to 13 of this report.
The composition of the Bank's Board of Directors is in
compliance with the Revised BNM/GP1, which requires at
least one-third of the board members to be independent
directors.
The presence of three non-independent non-executive
directors and three independent non-executive directors
enables the Bank to view all relevant issues objectively
and in a balanced manner. This further enhances the
accountability of the decision making process within
Citibank Berhad.
The presence of the non-executive directors is also
beneficial as it provides room for new perspectives and
ideas that could help improve the effectiveness and
efficiency of the Board on the whole.
The revised BNM/GP1 guideline stipulates the need for a
maximum of one Executive Director in the Bank's Board
of Directors line-up.
Mr. Terence Kent Cuddyre, who joined the Bank on 14
December 2010, was appointed Chairman of the Bank on
12 March 2013 in place of Mr. Jonathan Larsen who
resigned from the same position on 11 December 2012.
Roles and Responsibilities
The primary responsibility of the Board of Directors is to
provide effective governance in terms of the Bank's affairs
for the benefit of all shareholders and also to balance the
interests of different constituencies such as customers,
employees, suppliers and the local community.
Among other things, the Board also reviews and approves
the Bank's strategic business plans annually, oversees the
management of the business and monitors the Bank's
actual performance against projections.
The Board also ensures that the infrastructure, internal
controls and risk management processes within the Bank
remains robust and are implemented in a consistent and
timely manner.
In addition, the Board carries out various other functions
and responsibilities as stipulated in the guidelines and
directives issued by BNM from time to time.
In relation to the requirements stated under the revised
BNM/GP1, the Bank has submitted an application to BNM for
deviation of Principle 10 (shareholders should be entirely
independent of the management and that the CEO should
derive authority only from the Board) and Principle 12
(regular communication to be held with shareholders).
On 3 May 2006, BNM approved the Bank’s official request
for the above-mentioned deviations.
As the Bank falls under the global structure of Citi, the
Board also ensures that the Bank adopts applicable Citi
policies in relation to credit approval processes and
operational manuals.
As a means to ensure the Bank has a beneficial influence on the
economy of the local community, the Directors have a
continuous responsibility to provide banking services and
facilities that are conducive to a well-balanced economic growth.
Frequency and Conduct of
Board Meetings and Attendance
The Board of Directors meet at least six times a year in
order to effectively discharge their duties as well as to
comply with the revised BNM/GP1 guideline requirements.
During Board meetings, the Directors are provided with an
agenda, papers on the Bank's most recent financial
performance, risk management reports, budgets, new
business initiatives or product launches, Board committees
meetings' minutes and updates on industry regulations or
policy changes. The Board also receives business
presentations on topical matters, subject to such requests.
The Board meeting agenda and papers are distributed to
all Directors prior to the scheduled meetings so as to
grant them sufficient time to review all materials/issues
that will be discussed during the actual meeting. This
procedure goes a long way in ensuring that all Board
meeting discussions as well as decisions made/taken, are
meaningful and based on accurate facts and figures.
Held
Attended
Mr. Terence Kent Cuddyre
7
7
Mr. Sanjeev Nanavati
7
7
Tan Sri Dato' Hj Omar B. Ibrahim
7
7
Dato‘ Siow Kim Lun
7
6
Ms. Agnes Liew Yun Chong
7
6
Dato’ Dr. Thillainathan a/l Ramasamy
2*
2
7
6
(appointed on 6 September 2012)
Mr. Jonathan Christian Larsen
(resigned on 11 December 2012)
* Reflects the number of meetings held during the time the Director held office.
Board Committees
The Board of Directors established several 'Board
Committees' to assist them in the overall management
and supervision of the Bank's business operations.
The committee members shall be appointed by the Board
upon recommendation of the Nominating Committee.
Each committee has its own written charter, clearly
outlining the mission and responsibilities of the respective
committee as well as well-defined terms of reference
approved by the Board.
Pursuant to the revised BNM / GP1 guideline, the Board is
also required to establish the following additional
committees besides the existing Audit Committee then:
• Nominating Committee
• Remuneration Committee
Dato’ Dr. Thillainathan a/l Ramasamy
1*
1
Tan Sri Dato' Hj Omar B. Ibrahim
4
4
Dato‘ Siow Kim Lun
4
4
Mr. Terence Kent Cuddyre
4
4
(Chairman)
(Appointed as Chairman/member of Audit
Committee on 6 September 2012)
* Reflects the number of meetings held during the time the Director held office.
All the Audit Committee members are non-executive
directors of the Bank.
Terms of Reference
The Board has approved the terms of reference for the
Audit Committee.
The main objective of the Audit Committee is to review
the financial position of Citibank Berhad, its internal
controls, performance and findings of the internal and
external auditors as well as to recommend appropriate
remedial action (if necessary).
The Audit Committee's main responsibilities are as follows:
a. Ensure that the financial accounts are prepared in a
timely and accurate manner with frequent reviews on
the adequacy of provisions for contingencies, and bad
and doubtful debts.
b. Review the balance sheet and profit and loss account
for submission to the Board of Directors and ensure
the prompt publication of annual accounts.
c. Review the annual financial statements before submission
to the Board, focusing on:
1. Compliance with accounting standards and other
legal requirements
2. Changes in accounting policies and practices
• Risk Management Committee
3. Significant issues and unusual events arising from
the audit
The Bank has since set up the Nominating Committee and
Risk Management Committee.
4. Going concern assumption
The Bank submitted an application to BNM for a waiver
from establishing the Remuneration Committee. On 3 May
2006, BNM granted the Bank approval on the above
application.
Audit Committee
Composition and Frequency of Meetings
The Audit Committee was established in 1994.
The attendance record for each Audit Committee member
for the financial year ended 31 December 2012 is as shown
follow:
Statement of Corporate Governance
Name of Director
Attended
5. Major judgemental areas
d. Conduct a complete review prior to publishing the
annual report to ensure compliance with regulatory
requirements.
e. Review the effectiveness of internal controls, including
the scope of the internal audit programme, its role,
resources of the internal audit functions and ensure it
has the necessary authority to carry out its work,
internal audit findings as well as recommend action to
be taken by management, whenever necessary. The
reports of internal auditors and the Audit Committee
should not be subject to the clearance of the Board of
Directors.
Annual Report 2012
Number of Board Meetings
Held
Citibank berhad
The attendance record for each Board member for the
financial year ended 31 December 2012 is as shown below:
Number of Meetings
Name of Audit Committee Member
015
The proceedings of all Board meetings are also taken
down as official minutes and such minutes are later
circulated for the Directors' perusal prior to confirmation
during the following meetings.
f. Evaluate appointment, performance and provide
appraisal and feedback on the remuneration package
offered to the chief internal auditor.
g. Leverage on the Bank‘s performance management and
talent inventory development process in overseeing
the performance evaluation of the internal auditors.
h. Review with the external auditors, the scope of their
audit plan, internal accounting controls, audit reports,
assistance given by the management and its staff to
the auditors as well as their findings and recommended
action(s) to be taken. Select and recommend external
auditors for appointment by the Board annually.
i. Discuss problems and reservations arising from the
interim and final external audits, including any matters
the external auditors may wish to deliberate (in the
absence of management, where necessary).
Statement of Corporate Governance
j. Review external auditor‘s letter to management and
the latter‘s response to the same.
k. Review related party transactions and identify any
potential conflict of interest situation(s) that may
arise within the Bank including any transactions,
procedure or course of conduct which questions the
integrity of the management.
l. Review resignation letters from the external auditors
of Citibank Berhad.
m. Select external auditors to be appointed by the Board,
unless otherwise advised (such as not suitable for
re-appointment supported by valid justifications / grounds).
n. Review any external expert‘s terms and scope of
engagement, working arrangement with the internal
auditors and reporting requirements to ensure these
are clearly established.
o. Leverage on the oversight provided by Regional
Compliance Control or engage any external party to
perform assessment on the continuing effectiveness
of the internal audit function.
Nominating Committee
016
Citibank berhad
Annual Report 2012
Composition and Frequency of Meetings
The Nominating Committee was established in 2006.
The attendance record for each Nominating Committee
member for the financial year ended 31 December 2012 is
as shown below:
Number of Meetings
Name of Nominating Committee Member
Tan Sri Dato‘Hj Omar B. Ibrahim
Held
Attended
3
3
(Chairman)
Mr. Sanjeev Nanavati
3
3
Dato‘ Siow Kim Lun
3
2
The constitution of the Nominating Committee comprises
four non-executive directors and one executive director.
Terms of Reference
The Board has approved the terms of reference for the
Nominating Committee.
The main objective of the Nominating Committee is to
provide a formal and transparent procedure for the
appointment of directors as well as assessing the
effectiveness of individual directors, the Board as a whole
and also the performance of the CEO along with other key
senior management staff.
The Nominating Committee‘s main responsibilities are as
follows:
a. Review and assess the adequacy of the Bank‘s Code of
Conduct and other internal policies and guidelines and
monitor that the principles described therein are
being incorporated into the Bank‘s culture and
business practices.
b. Establish minimum requirements for the Board, i.e.
required mix of skills, experience, qualification and
other core competencies required of a director. The
Committee is also responsible for establishing
minimum requirements for the CEO. The requirements
and criteria should be approved by the full Board.
c. Review the appropriateness of the size of the Board
relative to its various responsibilities. Review the
overall composition of the Board, taking into
consideration factors such as business experience and
specific areas of expertise of each Board member and
make recommendations to the Board as necessary.
d. Review and assess that the directors do not have any
directorship(s) which could potentially result in
conflict of interest(s).
e. Recommend to the Board the number of committees
required, identify their respective responsibilities,
propose a suitable Chairperson as well as suggest
ordinary members for the different committees. This
includes advising the Board on committee member
appointments and removal of such members from the
relevant committees or from the Board, rotation of the
committee members and Chairperson as well as
proposals on individual committee structures and
operations.
f. Assist the Board in developing criteria to identify and
select qualified individuals who may be nominated for
election to the Board, which shall reflect, at a minimum,
all applicable laws, rules and governing regulations. This
includes assessing directors for re-appointment before
an application for approval is submitted to BNM. The
actual decision as to who shall be nominated should be
the responsibility of the full Board.
Ms. Agnes Liew Yun Chong
3
3
Dato‘ Dr. Thillainathan a/l Ramasamy
2*
2
g. Recommend to the Board qualified individuals to
become members of the Board.
2*
1
h. Review and recommend periodically to the Board, the
compensation structure for non-executive directors.
(appointed as Nominating Committee member
on 6 September 2012)
Mr. Jonathan Christian Larsen
(resigned as Nominating Committee member
on 7 December 2012)
* Reflects the number of meetings held during the time the Director held office.
i. Recommend to the Board the removal of a director /
CEO from the Board / Management, if the director / CEO
is ineffective, errant and negligent in discharging his
responsibilities.
All the Risk Management Committee members are
non-executive directors of the Bank.
j. Assess annually the effectiveness of the Board as a
whole in meeting its responsibilities and the contribution
of each director to the effectiveness of the Board,
contribution of the Board‘s various committees and the
performance of the CEO.
The Board has approved the terms of reference for the
Risk Management Committee.
o. Conduct an annual review of the Committee‘s
performance and report the results to the Board
periodically, assess the adequacy of its charter and
recommend changes to the Board as needed.
p. Report regularly to the Board on the Committee‘s
activities.
q. Perform any other duties and responsibilities
expressly delegated to the Committee by the Board
from time to time.
Risk Management Committee
Composition and Frequency of Meetings
The Risk Management Committee was established in 2006.
The attendance record for each Risk Management
Committee member for the financial year ended 31
December 2012 is as shown below:
Number of Meetings
Name of Risk Management Committee Member
Held
Attended
4
4
Tan Sri Dato‘Hj Omar B. Ibrahim
4
4
Ms. Agnes Liew Yun Chong
4
3
Mr. Terence Kent Cuddyre
4
4
Dato‘ Dr. Thillainathan a/l Ramasamy
1*
1
Dato‘ Siow Kim Lun
(Chairman)
(appointed as Risk Management Committee
member on 6 September 2012)
* Reflects the number of meetings held during the time the Director held office
b. Discuss with Management the Bank‘s major credit,
market, liquidity and operational risk exposures and
steps that the Management has taken to monitor and
control such exposures, including the Bank‘s risk
assessment and risk management policies.
c. Assess the adequacy of risk management policies and
framework in identifying, measuring, monitoring and
controlling risks and the extent to which these are
operating effectively.
d. Ensure appropriate infrastructure, resources and
systems are in place for actual risk management
implementation, i.e. ensure staff responsible for
implementing the risk management system perform
their duties independently of the Bank‘s risk taking
activities.
e. Periodically review management reports on risk
exposure, risk portfolio, composition and other risk
management activities.
f. Review periodically with management, including
independent Risk Officer, Head of Compliance and
Legal Counsel, any correspondence(s) with or action
by, regulators or governmental agencies, any material
legal affairs of the Bank and the Bank‘s compliance
with applicable laws and regulations.
g. Report regularly to the Board on the Committee‘s
activities.
h. Review annually and report to the Board on its own
performance.
i. Review and assess the adequacy of its charter
annually and recommend any proposed changes to the
Board for approval.
Statement of Corporate Governance
n. Plan and ensure all directors receive appropriate and
continuous training program in order to keep abreast
with the latest developments in the industry.
a. Ratify the adoption of Citi risk management strategies,
policies, and risk tolerance; and recommend the same for
the Board‘s approval.
Annual Report 2012
m. Assess annually to ensure the directors and key senior
management staff are not disqualified under section 56
of the Banking and Financial Institution Act 1989 (BAFIA).
The Risk Management Committee‘s main responsibilities
are as follows:
Citibank berhad
l. Leveraging on the Bank‘s Performance Management
and Talent Inventory development process in
overseeing the appointment, management succession
planning and performance evaluation of key senior
management staff, except that (as recommended by
Bank Negara Malaysia) the Committee shall play an
active role in reviewing and recommending the
nominees for the position of Chief Executive Officer,
Chief Financial Officer and Chief Risk Officer.
The main objective of the Risk Management Committee is
to oversee the senior management‘s activities in
managing credit, market, liquidity, operational, legal and
other risk(s) while ensuring proper risk management
process is properly in place and functioning well.
017
k. Report annually to the Board with an assessment of the
Board‘s performance and such assessment is conducted
based on an objective performance criteria. Such
performance criteria to be approved by the full Board.
Terms of Reference
018
Citibank berhad
Annual Report 2012
Risk Management
Please refer to Pillar 3 disclosure
All internal control systems no matter how well designed
and implemented have inherent limitations.
The Bank has an internal policy prohibiting retaliatory
actions against any individual for raising legitimate
concerns or questions regarding ethical matters, or for
reporting suspected violations.
In view of the limitations, therefore, even the best of
systems determined to be effective can only provide a
reasonable assurance in relation to the preparation and
presentation of financial statements.
A comprehensive system of controls is maintained to ensure
that all transactions are executed in accordance with the
management's authorization, assets are safeguarded and
that the financial records are reliable.
The management also takes relevant steps to see that
information and communication flows are effective and
monitor the performance of internal control procedures.
Citibank Berhad's risk management policies, procedures
and practices set out the foundation to the risk architecture
governing its business activities.
The management conducts business monitoring initiatives
and periodic self-assessment in accordance with the
Manager‘s Control Assessment / Operational Risk policy for
all applicable businesses.
Control system weaknesses resulting in corrective actions
will be documented and escalated to the management for
tracking purposes.
Citibank Berhad's Internal Audit reports to the Audit
Committee. It performs regular reviews of the business
processes to assess the effectiveness of the control
environment and highlights significant risks affecting
the company.
The scope of the audit activities are reviewed and endorsed
by the Audit Committee while audits are carried out on a
risk -based approach, to provide an independent and
objective report on operational and management activities.
The Audit Committee regularly reviews and deliberates
with management on the actions taken on internal
control issues identified in reports prepared by Internal
Audit, the external auditors, regulatory authorities and
the management themselves.
The management of Citibank Berhad has also set up a
Country Coordinating Committee, Business Risk Compliance
and Control Committee, Legal Vehicle Committee, Asset
and Liability Committee, Country Legal and Compliance
Committee and Management Committee as part of its
monitoring function to ensure effective management
and supervision of the areas under the respective
Committee's purview.
Annual Report 2012
Ethics hotlines are made available to employees who wish
to voice concerns about suspected violations of law or
industry regulation as well as actions that may fail to live
up to the Bank's high standards of ethical conduct.
Citibank berhad
The Bank's internal control system is designed to provide
reasonable assurance to the company's management and
Board of Directors regarding the preparation and fair
presentation of published financial statements in
accordance with the provisions under the Companies Act
1965 and other applicable approved standards in Malaysia.
Statement of Internal Audit and Internal Control
Citibank Berhad has also adopted the Citi Code of
Conduct which expresses the values that each employee
is expected to appreciate and apply in their respective
working life.
019
Citibank Berhad's Board of Directors is responsible to
establish and maintain adequate internal control over
financial reporting standards and related issues.
The pre-set agenda, management reports and other
ad-hoc proposals or applications are circulated to the
Directors prior to the actual Board meetings.
This enables the Board of Directors to assess the overall
performance of the Bank and make sound management
decisions.
Management reports presented to the Board include,
among others, the following:
■ Economic Updates
■ Business Plans
■ Year to date Financial Performance Report
■ Financial performance by major business segments
■ Quarterly Performance Scorecard
■ Comparative analysis of banks
■ Semi-annual BNM Stress Tests Results
■ Credit Risk Management Report
■ Liquidity & Market Risk Management Reports
020
Citibank berhad
Annual Report 2012
Management Reports
■ Quarterly Derivative Outstanding Report
■ Minutes of Audit Committee meetings
■ Minutes of Risk Management Committee meetings
■ Minutes of Nominating Committee meetings
■ Minutes of Shariah Committee meetings
Citibank Berhad's Shariah Committee is responsible for
the provision of Shariah oversight in relation to Citibank
Berhad‘s Islamic Banking business operations. The duties
and responsibilities of the Shariah Committee are
governed by the Shariah Governance Framework for
Islamic Financial Institution as issued by the Bank Negara
Malaysia (BNM).
For the year 2012, the Shariah Committee met 10 times.
Additionally, individual Shariah Committee members
participated in various business discussions where
Shariah advice was required prior to submission to the
full Shariah Committee.
Citibank Berhad‘s Islamic Banking business operations
were subjected to a full Shariah audit conducted jointly
by Citibank Berhad‘s Internal Audit together with Citi‘s
Global Islamic Control unit. The Shariah Committee
reviewed the findings of the Shariah audit and was
satisfied with the report and its findings.
Citibank Berhad‘s Shariah Committee effective from 1
June 2012 included the following distinguished members:
■ Professor Dr. Norhashimah Mohd Yasin
Dr. Norhashimah Mohd Yasin is a Professor of
Comparative Banking Law at the Civil Law department,
Ahmad Ibrahim Kulliyah of Law, International Islamic
University of Malaysia. She regularly lectures, researches
and presents papers at local and international seminars
and conferences on the areas of Islamic banking, Islamic
insurance (Takaful), money laundering and terrorism
financing.
She has published articles in national and international
journals. Her articles on Islamic Banking have also
appeared in a book edited by Dato‘ Syed Idid called
Judicial Decisions Affecting Bankers and Financiers
(published by the Malayan Law Journal). She is the
author of two books, Legal Aspects of Money Laundering
from the Common Law Perspective (published in 2007 by
LexisNexis) and Islamisation / Malaynisation: The Role of
Islamic Law in the Economic Development of Malaysia
(published in 1996 by A.S. Noordeen). She is a
contributing editor of the Annotated Statute on
Anti-Money Laundering and Anti-Terrorism Financing Act
2001 and the Takaful Act 1984.
■ Professor Dr. Abdul Ghafar Ismail / Chairman
His papers have been presented in many international and
local conferences including the International Seminar on
Islamic Economics and Finance, IRTI International
Conference and Malaysia Finance Association Conference.
Professor Dr. Abdul Ghafar Ismail’s research interests
include the learning process and growth theory,
inter-temporal allocation of resources, learning economics
from Al-Quran and Al-Hadith, capital adequacy standard for
Islamic Banks, and the workings of monetary policy in a
dual banking system.
He holds a PhD from the University of Southampton, England.
Dr. Shofian bin Ahmad is currently an Associate Professor
with the Shariah Department at Universiti Kebangsaan
Malaysia (UKM) where he specialises in Islamic
transactions (Muamalat) and the Islamic economy. He is
the Head of the Department of Shariah at the Faculty of
Islamic Studies and has served in various administrative
positions at the faculty since 1 994.
He supervises Ph.D. and Masters candidates at UKM and
conducts doctoral and Masters level thesis assessments.
He is also actively involved in research and is a Research
Fellow at UKM‘s Institut Kajian Rantau Asia Barat. He is
also extensively involved in publications as an article
assessor for several academic journals.
Associate Professor Dr. Shofian holds a PhD in Shariah
and Law from the University of Malaya, Kuala Lumpur.
■ Mat Noor Mat Zain
Mat Noor Mat Zain is a member of the Citibank Berhad’s
Shariah Committee where he has contributed his
specialist knowledge of Fiqh Muamalah, Islamic contract
law and Islamic family law and extensive research
experience in the area of Islamic finance since May 20 1 1.
He is also a consultant for the Pakarunding initiative at
Shariah Committee
■ Associate Professor Dr. Shofian bin Ahmad
Annual Report 2012
His work has been extensively published in several
referred journals, among others, Review of Islamic
Economics, Journal of Islamic Economics, Banking and
Finance, Humanomics, International Journal of Islamic
and Middle Eastern Finance and Management, Journal of
Financial Services Marketing, International Research
Journal of Finance and Economics and Qualitative
Research in Financial Markets. His most recent book is
Money, Islamic Banks and Real Economy, published by
Cengage Learning.
Professor Dr. Norhashimah holds a PhD in Law from the
University of Warwick, England, and is a qualified
Advocate and Solicitor of the High Court of Malaysia. She
is also a certified legal translator.
Citibank berhad
A lecturer since 1987, he has vast experience in teaching
Islamic economics courses such as Islamic banking; risk
management in Islamic banking; financial economics;
advanced macroeconomics; money, Zakat and real
economy; money and capital market in Islam; Islamic
economic system; Islamic economic analysis; and
deposits and the financing operations of Islamic banking
institutions.
She is a member of the Advocates and Solicitors
Disciplinary Board and also sits on the Board of Trustees
for Yayasan Asnita, a Non Governmental Organisation.
She also conducts training for Bank Negara Malaysia,
Labuan Financial Services Authority, commercial banks,
developing financial institutions, insurance companies
and legal firms in Malaysia and Brunei Darussalam.
021
Dr. Abdul Ghafar Ismail has been a Professor in the
Banking and Finance faculty of Universiti Kebangsaan
Malaysia (UKM) since 2003. He is currently Head of the
Research Centre for Islamic Economics and Finance and
AmBank Group Resident Fellow for Perdana Leadership
Foundation.
Universiti Kebangsaan Malaysia (UKM) and an expert
consultant for the Malaysian Government’s JAWHAR
programmes related to the provision of Fidyah and
Kafarah manuals.
He has presented numerous papers related to Islamic
banking and finance at both domestic and international
levels and has been appointed consulting editor for The
Journal Of Muamalat And Islamic Finance Research
published by the Islamic Science University of Malaysia.
In addition to his consulting and editorial work, he is a
lecturer at the Department of Shariah at UKM’s Faculty of
Islamic Studies. He teaches several courses related to
Muamalah and Islamic jurisprudence including “Fiqh
Muamalat”, “Islamic Finance”, and “The Principles of
Islamic Jurisprudence”.
He has a Bachelor’s degree in Shariah Studies from the
Islamic University of Medina, Saudi Arabia as well as a
Masters in Islamic Studies (specializing in Muamalat) from
the Faculty of Islamic Studies at UKM. He is currently
pursuing his studies in the field of Islamic Contracts and
is researching topics including Instruments of Islamic
Hedging and Terms and Conditions in Standard Form
Contracts.
022
Citibank berhad
Annual Report 2012
Shariah Committee
■ Nik Abdul Rahim bin Nik Abdul Ghani
Nik Abdul Rahim Nik Abdul Ghani is a lecturer and former
tutor at Universiti Kebangsaan Malaysia (UKM)‘s
Department of Shariah at the Faculty of Islamic Studies.
He is an expert consultant and speaker for the UKM‘s
Centre for Islam and UKM‘s Islamic law-related training
programmes. He is also a member of the committee of
Klinik Hukum Syarak and Guaman Syarie, Department of
Shariah.
He is a member of the Research Center for Islamic
Economics and Finance and has written in-depth research
papers and articles on Shariah issues arising in Islamic
Banking and finance. He is a published author featured in
national and international journals, seminar proceedings
and books. His most recent article, Maslahah as a Source
of Islamic Transactions (Muamalat) has been recently
published in UKM‘s Journal of Islamiyyat. He has written
books on Islamic teaching and motivation and is a regular
columnist for the popular magazine SOLUSI by Telaga
Biru for which he writes the “Maqasid Syariah”
(Objectives of Islamic Law) column.
Apart from teaching, research and writing, he is actively
involved in religious and academic activities, especially
those related to economics and Islamic law. He
participates in seminars and discussions conducted by
Government
agencies
and
Non
Governmental
Organisations (NGOs), gives religious speeches in the
state of Selangor and appears on religious television
programmes on RTM, Media Prima and ASTRO. He is also
a regular speaker for “Renungan”, a religious programme
that airs on THR Gegar radio.
Fluent in Arabic, Nik Abdul Rahim bin Nik Abdul Ghani
holds a Masters Degree in Shariah from UKM and a B.A
(Hons) in Shariah from the Islamic University of Medina,
Saudi Arabia. He is currently a doctoral candidate in the
field of Islamic Finance at the International Centre for
Education in Islamic Finance (INCEIF).
RAM Rating Services Berhad (RAM) has, on 21 January
2013, reaffirmed Citibank Berhad‘s respective long and
short term financial institution ratings of AAA and P1 with
an outlook on the long term ratings remaining stable.
Citibank Berhad‘s ratings are premised on its entrenched
market position in the consumer banking arena, strong
funding and liquidity profile, sturdy profitability, and
healthy capitalization.
A financial institution rated P1 has a strong
capacity to meet its short-term financial
obligations. This is the highest short-term FIR
assigned by RAM Ratings.
Annual Report 2012
P1
Citibank berhad
A financial institution rated AAA has a superior
capacity to meet its financial obligations. This is
the highest long-term FIR assigned by RAM
Ratings.
023
AAA
Ratings Statement
Bank Rating Symbols and Definitions:
Contact Centre Association of Malaysia
Corporate Awards
Best People Contact Center - Gold Award
Best In-House Inbound Contact Center (above 100 seats) – Silver Award
Best Technology & Innovation Contact Center – Silver Award
Individual Award
Best Contact Center Professional (Aria Putera Kamal) – Gold Award
X-Factor Challenge Award
CitiPhone Dancing Group (Kejora Mustika) – Silver Award
Asiamoney Cash Management Poll
Citibank berhad
Annual Report 2012
Awards and Accolades 2012
1 Foreign Cash Management Bank for Large and Medium-size Corporates
1 Cross Border Cash Management Services for Large and Medium-size Corporates
1 Domestic Cash Management Services for Large and Medium-size Corporates
Global Finance Best Internet Bank
Best Corporate/Institutional Internet Bank
Trade Finance Awards for Excellence
Best International Trade Bank
CIMB Principal Top AUM Builder for Fixed Income
Visa Malaysia Bank Awards
Largest Payment Volume for the year – Visa Consumer Credit
Largest Payment Volume for the year – Visa Premium
Largest Payment Volume for the year – Visa Platinum
Highest Payment Volume Growth for the year – Visa Signature
Reader’s Digest Trusted Brand
024
Finance category (banking products and services)
The Community We Work and Live In
At Citi, the concept of corporate citizenship is a unifying
theme that is at the core of our operations and the way we
do business. In 2012, we continued our tradition of
responsible citizenship by leveraging our local presence in
virtually all corners of the world, along with the expertise
and commitment of our people.
The ‘Stretching Your Ringgit’ financial education series
targeted young workers through financial education
workshops and a major radio infomercial campaign.
We organised 20 financial education workshops aimed at
800 young workers, aged between 18 and 35, in 10 states
in Peninsular Malaysia, from October 2012 until January
We also partnered with Astro to air a total of 168 radio
infomercials on Hitz.fm, Era FM and My FM in October
2012. The three stations offered a reach of 1.5 million
listeners and costs US$121,500.00 The topics aired
included ‘Making Your Financial Plan’; ‘Keeping Credit in
Check’; ‘Managing Your Debt’; and ‘Spend Within Your
Means’. The radio infomercials were part of our
continuing effort to increase awareness and to further
encourage the practice of financial management amongst
the low to middle income groups.
Citibank also built richer content in the ERA Consumer‘s
microsite to increase knowledge and online accessibility
so readers can obtain financial related information as an
empowerment tool. We have collaborated with ERA
Consumer for four years to spread the message of
financial responsibility to Malaysians.
Annual Report 2012
In the ‘My First Ringgit’ workshops, children learnt to
manage personal finances, make calculated choices and
act responsibly through a fun and informative game kit
available in English and Bahasa Malaysia. The game kit
touched on the topics of various uses of money, the value
of each note and coin, understanding the differences
between needs and wants and the importance of saving
and sharing with those in need.
2013. The workshops were tailored to train and educate
young workers on efficient and prudent financial planning
and financial management. Based more on interactive
learning through exercises and activities, the training
covered areas such as Goal Setting, Analysing One‘s
Financial Self-Worth; Budgeting, Managing Debt and
Mindful Consumption.
Citibank berhad
Citibank and ERA Consumer Malaysia kicked off with the
second year of Citibank‘s customised financial education
programme ‘My First Ringgit’, aimed at educating and
instilling good financial habits among young children. A
component of Citibank‘s ‘Stretching Your Ringgit’, ‘My
First Ringgit’ reached out to 800 kindergarten children
between the ages of four and six in both urban and rural
areas in Malaysia.
025
Last year, Citibank and ERA Consumer Malaysia (Education
& Research Association for Consumers) collaborated to
implement four financial education programmes.
Corporate Citizenship at Citi
In Malaysia, Citibank‘s corporate citizenship initiatives
focuses largely on supporting programmes that help
people take control of their finances by improving their
financial behaviours and making informed decisions about
financial products and services.
Citibank also launched the inaugural CITI-UPM Financial Empowerment programme for mature women, who earned less
than US$1,000 and lived in towns, suburbs and surrounding areas within the Klang Valley. The programme was adapted
from the Citi-Tsao Financial Education Programme for Mature Women in Singapore to the Malaysian context.
In 2012, the Citi Foundation grant was initially used to conduct needs assessment for 800 women, organise focus group
discussions among 80 women, adapt the existing financial education curriculum for mature women; build UPM staff
capacity; raise public awareness on the importance of financial education for women aged 40 and above; plan and
develop a strategy, formulate a proposal to identify a pool of trainers and conduct training for trainers.
By 2013, UPM should be able to fully implement the curriculum for 800 women to help them become financially
independent and empowered in their old age. The programme should also be able to achieve a 100% increase in the
number of women who could develop a retirement plan and demonstrate positive financial behaviours to achieve their
financial goals.
026
Citibank berhad
Annual Report 2012
Corporate Citizenship at Citi
Another of our meaningful financial education initiatives was our collaboration with Habitat For Humanity (HFH) that
involved equipping 50 low income families in the Klang Valley with practical financial knowledge to improve their
shelter or homes. Citi Foundation granted funds to build HFH‘s capacity to develop and deliver a financial education
curriculum, using a dialogue based adult education methodology, to beneficiaries in partner communities. A two-day
programme was conducted for 30 indigenous families in Sg. Pelek, and 20 families from areas in Rawang and
Selayang. Three volunteers from the Citi Management Associates (MA) programme attended and assisted trainers
during the programme.
Last year, Citi Global Community Day had an added significance as it coincided with Citi‘s 200th anniversary. We marked
this milestone honouring two centuries of our history by contributing and working together to strengthen the
communities in which we live and work.
Corporate Citizenship at Citi
Global Community Day
In Malaysia, we chose the theme ‘Soup Kitchen for the Homeless‘ for our Global Community Day, which spanned over
two weeks from 4th June to 15th June. We recognised that while Citibank provided financial services and helped
companies build their businesses for over 50 years in Malaysia, there are those among us who still faced challenges with
life‘s essentials that we take for granted. The soup kitchen project was our way to make a meaningful difference in our
local community.
In JB and Penang, over 400 Employees worked with NGO partner KAWAN and Kechara Soup Kitchen to feed the
homeless while 30 employees from our Kuantan branch participated in cleaning up Sg Lembing‘s Panorama Hill.
Citibank berhad
Citibank volunteers also treated 100 children from Persatuan Kebajikan Berkat Johor Bahru, Amitabha Centre and Pusat
Kebajikan Kalvari Johor to a day of fun and laughter at the Johor Bahru Zoo. The children, aged five and above, enjoyed a
tour of the zoo which included a mini animal hunt as well as drawing and colouring activities. The children and volunteers
also talked about their experiences and what they had learnt throughout the day in an impromptu sharing session.
027
In the Klang Valley, our 3,800 strong employees participated in this effort with NGO partner Pertiwi Soup Kitchen and
Kechara Soup Kitchen. In total, our volunteers managed to feed over 7,000 homeless citizens, making it the largest
global community day in Malaysia. Citibank volunteers also helped distribute food and drinks and dispensed first aid to
the disadvantaged in Chow Kit, Kotaraya and Jalan Imbi.
Annual Report 2012
Nearly 100,000 Citi volunteers, the largest number of participants ever, gathered in the days leading up to and including
Global Community Day to participate in 1,300 service projects in 92 countries worldwide that benefitted local communities.
Citi Global Community Day once again offered an annual opportunity for Citibank employees, family and friends around
the world to gather as one to demonstrate a shared commitment to our respective communities.
Valuing Our People
Annual Report 2012
Citibank berhad
028
In Citi, we believe that talent grows talent. Our people
philosophy focuses on providing the best learning &
development platforms ranging from talent & development
programs, mentoring, on-the-job learning to career pathing
initiatives, supported by key processes and policies – all in a
conducive and nurturing work environment. With a flexible
work culture, the geographical reach and the richness of
diversity of our businesses, we have the ability to provide
each Citibanker with the opportunity to have a career of a
lifetime.
In 2012, we continue our efforts in the talent space. Our
Management Associate (MA) and Graduate Executive (GE)
Programmes attracted the best talent in the market - we
hired a total of 10 Management Associates and 19 Graduate
Executives in 2012, giving us a total of 29 MAs and 51 GEs
whom we have hired since 2010 as part of our strategy to
build future leadership. Our Leadership Enhancement &
Accelerated Development (L.E.A.D) programme, currently
in its fourth year, continues to be focused and relevant for
the top 2% of our best employees. For the 2012/2013
launch, there was great response to the two customised
programs especially for the L.E.A.D pool by renowned gurus
in their own field - Rajeev Peshwaria of the International
Centre for Leadership in Finance (ICLIF) and Dr. Fons
Trompenaars, author of ‘Riding the Waves of Culture’.
Leveraging our global presence in 160 countries and the
diversity of our businesses, Citi is second to none in our
ability to provide in-country, regional and global mobility
opportunities. This is evidenced by the 110 internal
transfers, including our export of talent to China, Japan
and London, and our import of talent from other Citi
companies including India, Philippines and Latin America.
From a learning & development viewpoint, our consistent
approach to training and development across the
company ensures that we have a unified culture and a set
of standards that transcend business, product and
regional lines. In 2012, Citibank rolled out 1 1 1 classroom
programmes totalling 34,792 training hours for 2,014
Citibankers. Separately under the e-learning platform, a
total of 1,407 Citibankers participated in virtual trainings /
webinars of various topics.
A key component to ensure that we are able to keep
Citibankers engaged and motivated is to provide a
conducive and nurturing work environment, with focus on
mental and physical health. Under the Citi Live Well
platform, the Employee Assistance Programme (EAP) was
launched in November aimed at providing support
services such as counselling, wellness talks and on-site
consultations to all Citibankers. The counselling sessions,
which are strictly confidential, can be conducted via
face-to-face, Skype and / or email or a 24-hours hotline. In
addition to that, Citi Live Well organised 14 talks with
topics covering key health tips, office ergonomics, types
of food and exercises throughout the year with employee
attendance totalling more than 870.
The Voice of Employee (VOE) platform continues to
enable us to have fun and develop team-building
activities to build camaderie and strengthen the
professional relationship that we have with each other.
VOE champions from each business unit developed and
implemented various initiatives, ranging from movie days
to team building outings. We were also able to garner
feedback from Citibankers on the improvements that we
can make as an organisation through 47 sessions of focus
group discussions that was conducted for various
business units.
There will always be continued focus on building the
talent pipeline, developing and implementing relevant
programs, initiatives, policies and processes to ensure we
provide the best that we can for our employees.
Financial
Statement
Contents
Directors’ Report
30
Statement by Directors
33
Statutory Declaration
34
Shariah Committee‘s Report
35
Independent Auditors’ Report
36
Statements of Financial Position
37
Statements of Comprehensive Income
38
Statements of Changes in Equity
39
Statements of Cash Flows
40
Notes to the Financial Statements
42
The Directors have pleasure in submitting their report and
the audited financial statements of the Group and the
Bank for the year ended 31 December 2012 .
Principal activities
The Bank is principally engaged in banking and related
financial services that also include Islamic Banking
business whilst the principal activities of the subsidiaries
are stated in Note 12 to the financial statements. There
has been no significant change in the nature of these
activities during the financial year.
Results
Group and Bank
Citibank berhad
Annual Report 2012
Directros’ Report for the year ended 31 December 20 12
RM’000
Profit before taxation
Taxation
Profit after taxation
789,577
(210,970)
At the date of this report, the Directors are not aware of
any circumstances which would render the values
attributed to the current assets in the financial statements
of the Group and the Bank misleading.
Valuation methods
At the date of this report, the Directors are not aware of
any circumstances which have arisen which would render
adherence to the existing methods of valuation of assets or
liabilities in the financial statements of the Group and the
Bank misleading or inappropriate.
Contingent and other liabilities
At the date of this report, there does not exist:
(a)
any charge on the assets of the Group or the Bank which
has arisen since the end of the financial year and which
secures the liabilities of any other person, or
(b)
any contingent liabilities in respect of the Group or of
the Bank that has arisen since the end of the financial
year other than in the ordinary course of business.
578,607
Reserves and provisions
There were no material transfers to or from reserves and
provisions during the year under review except as
disclosed in the financial statements.
Dividends
Since the end of the previous financial year, the Bank paid
a final ordinary dividend of 329 sen per ordinary share
less tax at 25% totaling RM300 million (247 sen net per
ordinary share) in respect of the year ended 31 December
2011 on 13 June 2012.
No contingent or other liability of the Group and the Bank
have become enforceable, or is likely to become enforceable
within the period of twelve months after the end of the
financial year which, in the opinion of the Directors, will or
may substantially affect the ability of the Group and the Bank
to meet their obligations as and when they fall due.
Change of circumstances
The final ordinary dividend recommended by the Directors
in respect of the year ended 31 December 2012 is 548 sen
per ordinary share less tax at 25% totaling RM500 million
(411 sen net per ordinary share).
At the date of this report, the Directors are not aware of
any circumstances, not otherwise dealt with in this report
or the financial statements of the Group and the Bank, that
would render any amount stated in the financial statements
misleading.
Bad and doubtful debts and financing
Items of an unusual nature
Before the financial statements of the Group and the Bank
were made out, the Directors took reasonable steps to
ascertain that actions had been taken in relation to the
writing off of bad debts and financing and the making of
provisions for impaired loans and financing, and satisfied
themselves that all known bad debts and financing had
been written off and adequate provisions made for
impaired loans, advances and financing.
At the date of this report, the Directors are not aware of
any circumstances, which would render the amount
written off for bad debts and financing, or the amount of
the provision for impaired loans, advances and financing,
in the financial statements of the Group and the Bank
inadequate to any substantial extent.
Current assets
030
records of the Group and the Bank, have been written down
to an amount which they might be expected to realise.
Before the financial statements of the Group and the Bank
were made out, the Directors took reasonable steps to
ascertain that the value of any current assets, other than
debts and financing, which were unlikely to be realised in
the ordinary course of business, as shown in the accounting
The results of the operations of the Group and the Bank for
the financial year were not, in the opinion of the Directors,
substantially affected by any item, transaction or event of a
material and unusual nature.
There has not arisen in the interval between the end of the
financial year and the date of this report any item,
transaction or event of a material and unusual nature likely,
in the opinion of the Directors, to affect substantially the
results of the operations of the Group and the Bank for the
current financial year in which this report is made.
Compliance with Bank Negara Malaysia’s
expectations on financial reporting
In the preparation of the financial statements, the Directors
have taken reasonable steps to ensure that Bank Negara
Malaysia’s expectations on financial reporting have been
complied with, including those as set out in the Guidelines
on Financial Reporting for Financial Institutions and the
Guidelines on Classification and Impairment Provisions for
Loans/Financing.
Directors of the Bank
Directors who served since the date of the last report are:
•
•
•
•
•
•
•
•
Sanjeev Nanavati
Tan Sri Dato’ Hj. Omar Bin Ibrahim
Dato’ Siow Kim Lun @ Siow Kim Lin
Agnes Liew Yun Chong
Terence Kent Cuddyre
Dato’ Dr Thillainathan A/L Ramasamy
(appointed on 6 September 2012)
Anil Wadhwani (appointed on 22 February 2013)
Jonathan Christian Larsen
(resigned on 11 December 2012)
Directors’ interests in shares
1,773
3,937
330
87
23,998
900
14,049
2,199
Number of ordinary shares of USD1 each
At
At
1.1.2012
Granted
Vested
31.12.2012
Capital Accumulation Program/
Supplementary CAP/SEA in Citigroup Inc.
Sanjeev Nanavati
Agnes Liew Yun Chong
Terence Kent Cuddyre
2,787
13,941
1,086
10,479
8,817
1,244
2,401
3,937
330
10,865
18,821
2,000
Number of options over ordinary shares
of USD1 each
At
1.1.2012
Granted
Forfeited
At
31.12.2012
6,727
3,879
2,281
-
429
279
1,465
6,298
3,600
816
Stock Option Plan in Citigroup Inc.
Sanjeev Nanavati
Agnes Liew Yun Chong
Terence Kent Cuddyre
003
None of the other Directors holding office at 31 December 2012 had any interest in the ordinary shares and options
over shares of the Bank and of its related corporations during the financial year.
Annual Report 2012
22,225
900
10,112
1,956
Citibank berhad
Shares in Citigroup Inc.
Direct interests
Sanjeev Nanavati
Dato’ Siow Kim Lun @ Siow Kim Lin
Agnes Liew Yun Chong
Terence Kent Cuddyre
031
Number of ordinary shares of USD1 each
At
At
1 .1 . 20 1 2
Bought
Sold
31 .1 2 . 20 12
Directros’ Report for the year ended 31 December 20 12
The interests in the ordinary shares and options over shares of the Bank and of its related corporations of those who were
Directors at year end as recorded in the Register of Directors’ Shareholdings are as follows:
Directors’ benefits
Since the end of the previous financial year, no Director of the Bank has received nor become entitled to receive any
benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by
Directors as shown in the financial statements or the fixed salary of a full time employee of the Bank) by reason of a
contract made by the Bank or a related company 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.
There were no arrangements during and at the end of the financial year which had the object of enabling 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
apart from the Directors above who were granted options to subscribe for shares in the ultimate holding company under
various stock incentive and purchase schemes where the price and terms are as determined by the said schemes.
Issue of shares and debentures
There were no changes in the issued and paid-up capital of the Bank during the financial year.
Directros’ Report for the year ended 31 December 20 12
There were no debentures issued during the financial year.
Options granted over unissued shares
No options were granted to any person to take up unissued shares of the Bank during the financial year.
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Sanjeev Nanavati
032
Citibank berhad
Annual Report 2012
Dato‘ Dr. Thillainathan A/L Ramasamy
Kuala Lumpur
Date: 4 March 2013
In the opinion of the Directors, the financial statements set out on pages 37 to 154 are drawn up in accordance with
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and the Bank as
of 31 December 2012 and of their financial performance and cash flows for the year then ended.
Annual Report 2012
Kuala Lumpur
Date: 4 March 2013
Citibank berhad
Dato‘ Dr. Thillainathan A/L Ramasamy
033
Sanjeev Nanavati
Statement By Directors pursuant to Section 169 ( 15 ) of the Companies Act, 1965
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
I, Tang Wan Chee, the officer primarily responsible for the financial management of Citibank Berhad, do solemnly and
sincerely declare that the financial statements set out on pages 37 to 154 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.
034
Citibank berhad
Annual Report 2012
Declaration Pursuant to Section 1 69 ( 1 6 ) of the Companies Act, 1965
Subscribed and solemnly declared by the above named in Kuala Lumpur on 4 March 2013.
Tang Wan Chee
Before me:
Commissioner for Oaths
We, Dr. Abdul Ghafar bin Ismail, Dr. Norhashimah Yasin, Dr. Shofian Ahmad, Mat Noor Mat Zain and Nik Abdul Rahim Nik
Abdul Ghani being the members of Citibank Berhad Shariah Committee hereby confirm that we have reviewed the
principles and the contracts relating to the transactions and applications introduced by Citibank Berhad’s Islamic Banking
Division during the financial year ended 31 December 2012.
In our opinion:
1.
the contracts, transactions and dealings entered into by the Citibank Berhad’s Islamic Banking Division during the year
ended 31 December 2012 that we have reviewed are in compliance with the Shariah principles; and
2.
the allocation of profit and charging of losses relating to investment accounts conform to the basis that had been
approved by us in accordance with Shariah principles.
We, the members of Citibank Berhad Shariah Committee, do hereby confirm that the operations of the Citibank Berhad’s
Islamic Banking Division for the year ended 31 December 2012 have been conducted in conformity with the Shariah
principles.
We beg Allah the Almighty to grant us success and lead us on the right path.
Wassalamu Alaikum Wa Rahmatullahi Wa Barakatuh.
Professor Dr. Abdul Ghafar Ismail
Chairman of the Shariah Committee
Professor Dr. Norhashimah Yasin
Member of the Shariah Committee
Assoc. Prof. Dr. Shofian Ahmad
Member of the Shariah Committee
Mat Noor Mat Zain
Member of the Shariah Committee
Nik Abdul Rahim Nik Abdul Ghani
Member of the Shariah Committee
Kuala Lumpur
Date: 4 March 2013
Annual Report 2012
We planned and performed our review so as to obtain all the information and explanations which we considered necessary
in order to provide us with sufficient evidence to give reasonable assurance that the Citibank Berhad’s Islamic Banking
Division has not violated the Shariah principles.
Citibank berhad
We have assessed the work carried out by Shariah review and Shariah audit which included examining, on a test basis, each
type of transaction, the relevant documentation and procedures adopted by the Citibank Berhad’s Islamic Banking Division.
035
The management of Citibank Berhad’s Islamic Banking Division is responsible for ensuring that the financial institution
conducts its business in accordance with Shariah principles. It is our responsibility to form an independent opinion, based
on our review of the operations of the Citibank Berhad’s Islamic Banking Division, and to report to you.
Shariah Committee’s Report In the name of Allah, the Beneficent, the Merciful
We have also conducted our review to form an opinion as to whether the Citibank Berhad’s Islamic Banking Division has
complied with the Shariah principles and with the Shariah rulings issued by the Shariah Advisory Council of Bank Negara
Malaysia, as well as Shariah decisions made by us.
Report on the Financial Statements
036
Citibank berhad
Annual Report 2012
Independent Auditors’ Report to the members of Citibank Berhad
We have audited the financial statements of Citibank
Berhad, which comprise the statements of financial
position as at 31 December 2012 of the Group and the
Bank, and the statements of comprehensive income,
changes in equity and cash flows of the Group and the
Bank for the year then ended, and a summary of
significant accounting policies and other explanatory
information, as set out on pages 37 to 154.
Directors’ Responsibility for the Financial Statements
The Directors of the Bank are responsible for the
preparation of financial statements so as to give a true and
fair view in accordance with Malaysian Financial Reporting
Standards, International Financial Reporting Standards and
the requirements of the Companies Act, 1965 in Malaysia.
The Directors are also responsible for such internal control
as the Directors determine is 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 about 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 judgment, 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
entity’s 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 entity’s 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 give a true and fair
view of the financial position of the Group and the Bank as
of 31 December 2012 and of their financial performance and
cash flows for the year then ended in accordance with
Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the
Companies Act, 1965 in Malaysia.
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 have been properly kept in
accordance with the provisions of the Act.
b)
We are satisfied that the accounts of the subsidiaries
that have been consolidated with the Bank’s 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.
c)
Our audit reports on the accounts of the subsidiaries
did not contain any qualification or any adverse
comment made under Section 1 74(3) of the Act.
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.
KPMG
Firm Number: AF 0758
Chartered Accountants
Petaling Jaya, Malaysia
Date: 4 March 2013
Ahmad Nasri bin Abdul Wahab
Approval Number: 2919/03/14(J)
Chartered Accountant
Group
Bank
31.12.2012 31.12.2011
1.1.2011
31.12.2012 31.12.2011
Note
RM’000
RM’000
RM’000
RM’000
Cash and short term funds
3
10,293,235
11,968,440
10,481,033
10,293,215
Deposits and placements with
banks and other financial institutions
4
RM’000
1.1.2011
RM’000
Assets
1,516,673
811,660
296,775
1,516,673
811,660
1,218,993
404,417
743,921
1,218,993
404,417
Financial assets held-for-trading
5
3,045,057
2,336,849
1,852,463
3,045,057
2,336,849
1,852,463
Financial investments available-for-sale
6
3,399,436
5,225,508
3,105,488
3,399,436
5,225,508
3,105,488
Loans, advances and financing
7
19,276,194
20,357,327
19,480,874
19,276,194
Other assets
20,357,327 19,480,874
9
832,926
1,305,988
1,317,716
832,926
1,305,988
1,317,716
Statutory deposits with Bank Negara Malaysia
10
438,840
398,080
-
438,840
398,080
-
Deferred tax assets
11
17,292
796
59,300
17,292
796
59,300
Investments in subsidiary companies
12
-
-
-
20
20
20
Plant and equipment
13
109,343
120,905
108,781
109,343
120,905
108,781
38,453,019
44,449,559
37,621,732
38,453,019
44,449,559 37,621,732
30,070,705 28,843,990
Total assets
Liabilities
Deposits from customers
14
28,932,489
30,070,705
28,843,990
28,932,489
Deposits and placements of banks
and other financial institutions
15
2,855,220
7,777,097
2,322,925
2,855,220
7,777,097
2,322,925
133,076
63,761
47,982
133,076
63,761
47,982
2,246,414
2,522,573
2,797,462
2,246,414
2,522,573
2,797,462
34,167,199
40,434,136
34,012,359
34,167,199
Bills and acceptances payable
Other liabilities
16
Total liabilities
40,434,136 34,012,359
Equity
Share capital
17
121,697
121,697
121,697
121,697
121,697
121,697
Reserves
18
4,164,123
3,893,726
3,487,676
4,164,123
3,893,726
3,487,676
4,285,820
4,015,423
3,609,373
4,285,820
4,015,423
3,609,373
38,453,019
44,449,559
37,621,732
38,453,019
44,449,559 37,621,732
79,345,922
79,632,078
81,239,637
79,345,922
79,632,078 81,239,637
Total equity attributable to
equity holder of the Bank
Total liabilities and equity
36
The notes on pages 42 to 154 are an integral part of these financial statements.
037
Citibank berhad
Off-balance sheet exposures
Statements Of Financial Position as at 31 December 2012
296,775
743,921
Annual Report 2012
Securities purchased under resale agreements
11,968,420 10,481,013
2011
Note
RM’000
RM’000
2(b)
2,358,094
2,379,755
Interest income
20
1,669,075
1,712,550
Interest expense
21
(511,581)
(489,805)
1,157,494
1,222,745
Revenue
Net interest income
Net income from Islamic banking operations
Other operating income
038
37(n)
39,445
37,080
22
649,574
630,125
1,846,513
1,889,950
23
(934,098)
(887,846)
912,415
1,002,104
24
(122,838)
(144,741)
789,577
857,363
25
(210,970)
(165,330)
578,607
692,033
(8,210)
14,017
(8,210)
14,017
570,397
706,050
578,607
692,033
570,397
706,050
475
569
Total net income
Other operating expenses
Operating profit
Allowance for loans, advances and financing
Profit before taxation
Tax expense
Profit for the year
Other comprehensive expense, net of income tax
Net profit/(loss) on revaluation of financial investments available-for-sale
Other comprehensive income/(expense) for the year, net of income tax
Total comprehensive income for the year
Profit for the year attributable to:
Owner of the Bank
Total comprehensive income attributable to:
Owner of the Bank
Earnings per share - basic (sen)
Citibank berhad
Annual Report 2012
Statements Of Comprehensive Income for the financial year ended 31 December 2012
Group and Bank
20 1 2
The notes on pages 42 to 154 are an integral part of these financial statements.
26
Attributable to owner of the Bank
Share
Share
Statutory
Fair Value
Retained
Total
Capital
Premium
Reserve
Reserve
Profits
Reserves
Total
Group and Bank
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
At 1 January 2011
Note
121,697
380,303
121,697
(6,630)
2,992,306
3,487,676
3,609,373
Net income on revaluation of financial
investments available-for-sale
-
-
-
14,017
-
14,017
14,017
Total other comprehensive
income for the year
-
-
-
14,017
-
14,017
14,017
Profit for the year
-
-
-
-
692,033
692,033
692,033
Total comprehensive
income for the year
-
-
-
14,017
692,033
706,050
706,050
Dividends to owner of the Bank
-
-
-
-
(300,000)
(300,000)
(300,000)
-
-
-
-
(300,000)
(300,000)
(300,000)
121,697
380,303
121,697
7,387
3,384,339
3,893,726
4,015,423
Total contribution to owner
27
At 31 December 2011
Note 17
At 1 January 2012
Note 18
121,697
380,303
121,697
7,387
3,384,339
3,893,726
4,015,423
Net loss on revaluation of financial
investments available-for-sale
-
-
-
(8,210)
-
(8,210)
(8,210)
Total other comprehensive
expense for the year
-
-
-
(8,210)
-
(8,210)
(8,210)
Profit for the year
-
-
-
-
578,607
578,607
578,607
Total comprehensive (expense)/
income for the year
-
-
-
(8,210)
578,607
570,397
570,397
Dividends to owner of the Bank
-
-
-
-
(300,000)
(300,000)
(300,000)
-
-
-
-
(300,000)
(300,000)
(300,000)
121,697
380,303
121,697
(823)
3,662,946
4,164,123
4,285,820
Total contribution to owner
At 31 December 2012
27
Note 18
The notes on pages 42 to 154 are an integral part of these financial statements.
039
Citibank berhad
Note 17
Statements Of Changes In Equity for the financial year ended 31 December 2012
Distributable
Annual Report 2012
Non-distributable
Group
Bank
20 1 2
20 1 1
20 1 2
2011
RM’000
RM’000
RM’000
RM’000
789,577
857,363
789,577
857,363
(27,739)
(3,047)
(27,739)
(3,047)
122,838
144,741
122,838
144,741
36,534
35,713
36,534
35,713
Dividends from unquoted investment securities
(28)
(28)
(28)
(28)
Unrealised gain from revaluation of
financial assets held-for-trading
(41)
(977)
(41)
(977)
(20,581)
(13,063)
(20,581)
(13,063)
392
1,023
392
1,023
900,952
1,021,725
900,952
1,021,725
1,219,898
(705,013)
1,219,898
(705,013)
Cash flows from operating activities
Profit before taxation
Statements Of Cash Flows for the financial year ended 31 December 2012
Adjustments for:
Amortisation of premium less accretion
of discount of financial investments
available-for-sale
Allowance for bad and doubtful debts
(net of write-back)
Depreciation
Gain from disposal of financial investments
available-for-sale
Loss on disposal of plant and equipment
Operating profit before working capital changes
Changes in working capital:
Deposits and placements with banks
and other financial institutions
Securities purchased under resale agreements
475,072
(814,576)
475,072
(814,576)
(708,167)
(483,409)
(708,167)
(483,409)
Loans, advances and financing
958,295
(1,021,194)
958,295
(1,021,194)
Other assets
456,566
70,232
456,566
70,232
Financial assets held-for-trading
Statutory deposits with Bank Negara Malaysia
(40,760)
(398,080)
(40,760)
(398,080)
Deposits from customers
(1,138,216)
1,226,715
(1,138,216)
1,226,715
Deposits and placements of banks and
other financial institutions
(4,921,877)
5,454,172
(4,921,877)
5,454,172
69,315
15,779
69,315
15,779
(248,004)
(277,598)
(248,004)
(277,598)
(2,976,926)
4,088,753
(2,976,926)
4,088,753
(239,125)
(162,621)
(239,125)
(162,621)
(3,216,051)
3,926,132
(3,216,051)
3,926,132
Bills and acceptances payable
Other liabilities
operating activities
Income taxes paid
Net cash (used in)/generated from
operating activities
040
Citibank berhad
Annual Report 2012
Cash (used in)/generated from
The notes on pages 42 to 154 are an integral part of these financial statements.
Group
Bank
20 1 2
20 1 1
20 1 2
2011
RM’000
RM’000
RM’000
RM’000
28
28
28
28
(26,034)
(49,183)
(26,034)
(49,183)
670
324
670
324
(6,174,833)
(7,311,535)
(6,174,833)
(7,311,535)
Redemption of financial investments
available-for-sale
1,626,774
499,387
1,626,774
499,387
Proceeds from disposal of financial
investments available-for-sale
6,414,241
4,722,254
6,414,241
4,722,254
Net cash generated from/(used in)
investing activities
1,840,846
(2,138,725)
1,840,846
(2,138,725)
Dividend paid to owner
(300,000)
(300,000)
(300,000)
(300,000)
Net cash used in financing activities
(300,000)
(300,000)
(300,000)
(300,000)
Net (decrease)/increase in cash and
cash equivalents
(1,675,205)
1,487,407
(1,675,205)
1,487,407
Cash and cash equivalents at 1 January
11,968,440
10,481,033
11,968,420
10,481,013
10,293,235
11,968,440
Dividend from investment securities
Purchase of plant and equipment
Proceeds from disposal of plant
and equipment
Purchase of financial investments
available-for-sale
Cash flows from financing activities
Cash and cash equivalents at
10,293,215
11,968,420
The notes on pages 42 to 154 are an integral part of these financial statements.
041
Citibank berhad
Annual Report 2012
31 December (Note 3)
Statements Of Cash Flows for the financial year ended 31 December 2012
Cash flows from investing activities
Citibank Berhad (“the Bank”) is a public limited liability
company, incorporated and domiciled in Malaysia. The
address of both its principal place of business and registered
office of the Bank is as follows:
The following are accounting standards, amendments
and interpretations that have been issued by the
Malaysian Accounting Standards Board (“MASB”) but
have not been adopted by the Group and the Bank:
45th Floor, Menara Citibank
165 Jalan Ampang
50450 Kuala Lumpur
MFRSs, Interpretations and amendments effective
for annual periods beginning on or after 1 July 2012
• Amendments to MFRS 101, Presentation of
Financial Statements – Presentation of Items of
Other Comprehensive Income
The consolidated financial statements of the Bank as at and
for the year ended 31 December 2012 comprise the Bank and
its subsidiaries (together referred to as the “Group”).
The Bank is principally engaged in banking and related
financial services that also include Islamic Banking business
whilst the principal activities of the subsidiaries are as
stated in Note 12 to the financial statements.
042
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
The immediate holding company is Citigroup Holdings
(Singapore) Pte. Ltd., a company incorporated in Singapore
and the ultimate holding company is Citigroup Inc., a
company incorporated in the United States of America.
The financial statements were authorised for issue by the
Board of Directors on 4 March 2013.
1. Basis of preparation
A.
Statement of compliance
The financial statements of the Group and the Bank
have been prepared in accordance with Malaysian
Financial
Reporting
Standards
(“MFRSs”),
International Financial Reporting Standards and
the Companies Act, 1965 in Malaysia. These are the
Group’s first financial statements prepared in
accordance with MFRSs and MFRS 1, First-time
Adoption of Malaysian Financial Reporting Standards
has been applied.
In the previous years, the financial statements of
the Group and the Bank were prepared in
accordance with Financial Reporting Standards
(“FRSs”) in Malaysia as modified by Bank Negara
Malaysia’s
Guidelines.
The
abovementioned
transition to MFRSs had led to the withdrawal of
Special Accounting Treatment for financial
liabilities as being stated in Bank Negara Malaysia’s
Guidelines on Financial Reporting for Banking
Institutions and consequentially, the Group and the
Bank had designated the entire structured
products as financial liabilities fair value through
profit or loss as oppose to the previous bifurcate
method. The financial impact arising from
aforementioned change in accounting policies is
disclosed in Note 38 to the financial statements.
The financial statements also incorporate those
activities relating to Islamic Banking which have
been undertaken by the Bank. Islamic Banking
refers generally to the acceptance of deposits and
granting of financing under the Shariah principles.
MFRSs, Interpretations and amendments effective for
annual periods beginning on or after 1 January 2013
• MFRS 10, Consolidated Financial Statements
• MFRS 11, Joint Arrangements
• MFRS 12, Disclosure of Interests in Other Entities
• MFRS 13, Fair Value Measurement
• MFRS 119, Employee Benefits (2011)
• MFRS 127, Separate Financial Statements (2011)
• MFRS 128, Investments in Associates and Joint
Ventures (2011)
• IC Interpretation 20, Stripping Costs in the
Production Phase of a Surface Mine
• Amendments to MFRS 7, Financial Instruments:
Disclosures – Offsetting Financial Assets and
Financial Liabilities
• Amendments to MFRS 1, First-time Adoption of
Malaysian Financial Reporting Standards –
Government Loans
• Amendments to MFRS 1, First-time Adoption of
Malaysian Financial Reporting Standards (Annual
Improvements 2009-2011 Cycle)
• Amendments to MFRS 101, Presentation of Financial
Statements (Annual Improvements 2009-2011 Cycle)
• Amendments to MFRS 116, Property, Plant and
Equipment (Annual Improvements 2009-2011 Cycle)
• Amendments to MFRS 132, Financial Instruments:
Presentation (Annual Improvements 2009-2011 Cycle)
• Amendments to MFRS 134, Interim Financial
Reporting (Annual Improvements 2009-2011 Cycle)
• Amendments to MFRS 10, Consolidated Financial
Statements: Transition Guidance
• Amendments to MFRS 11, Joint Arrangements:
Transition Guidance
• Amendments to MFRS 12, Disclosure of Interests in
Other Entities: Transition Guidance
MFRSs, Interpretations and amendments effective for
annual periods beginning on or after 1 January 2014
• Amendments to MFRS 10, Consolidated Financial
Statements: Investment Entities
• Amendments to MFRS 12, Disclosure of Interests in
Other Entities: Investment Entities
• Amendments to MFRS 127, Separate Financial
Statements (2011): Investment Entities
• Amendments to MFRS 132, Financial Instruments:
Presentation – Offsetting Financial Assets and
Financial Liabilities
MFRSs, Interpretations and amendments effective for
annual periods beginning on or after 1 January 2015
• MFRS 9, Financial Instruments (2009)
• MFRS 9, Financial Instruments (2010)
• Amendments to MFRS 7, Financial Instruments:
Disclosures – Mandatory Effective Date of MFRS 9
and Transition Disclosures
B.
Basis of measurement
The financial statements have been prepared on
the historical cost basis other than those disclosed
in Note 2.
C.
Functional and presentation of currency
The financial statements are presented in Ringgit
Malaysia (RM), which is the Group’s and the Bank’s
functional currency. All financial information is
presented in RM and has been rounded to the
nearest thousand, unless otherwise stated.
D.
Use of estimates and judgements
The preparation of financial statements in conformity
with MFRSs requires management to make
judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
The Group and the Bank plan to apply the above
mentioned standards, amendments and interpretations:
• from the annual period beginning on 1 January
2013 for those standards, amendments or
interpretations that are effective for annual
periods beginning on or after 1 July 2012 and 1
January 2013, except for MFRS 11, 127, 128, IC
Interpretation 20 and Amendments to MFRS 11
which are not applicable to the Group and the Bank.
• from the annual period beginning on 1 January
2014 for those standards, amendments or
interpretations that are effective for annual
periods beginning on or after 1 January 2014.
• from the annual period beginning on 1 January
2015 for those standards, amendments or
interpretations that are effective for annual
periods beginning on or after 1 January 2015.
Material financial impact of initial application of
MFRS 9, Financial Instruments is discussed below:
(i)
MFRS 9, Financial Instruments (2009 & 2010)
MFRS 9 replaces the guidance in MFRS 139, Financial
Instruments: Recognition and Measurement on the
classification and measurement of financial assets
and financial liabilities.
This standard requires all financial assets to be
classified based on an entity’s business model for
managing the financial assets and the contractual
cash flow characteristics of the financial asset.
Financial assets are to be initially measured at fair
value. Subsequent to initial recognition, depending
on the business model under which these assets
are acquired, these will be measured at either fair
value or amortised cost.
This standard also specifies the requirements for the
classification and measurement of financial liabilities,
which are generally similar to the requirements of the
original MFRS 139. However, this standard requires
that for financial liabilities designated at fair value
through profit or loss, changes in fair value
attributable to the credit risk of that liability are to be
presented in other comprehensive income, whereas
the remaining amount of the change in fair value will
be presented in the income statement.
The adoption of MFRS 9 may result in a change in
accounting policy. The Group is currently assessing
the financial impact that may arise from the
adoption of MFRS 9.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are
revised and in any future periods affected.
There are no significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have significant effect on the
amounts recognised in the financial statements other
than those disclosed in the following notes:
• Note 2(g) - Impairment losses on loans,
advances and financing
Collective impairment allowance for loan losses
represents management's estimate of probable
losses inherent in the portfolio. The allowance is
available to absorb probable loan losses inherent
in the overall portfolio.
The allowance attributed to these loans is
established via a process that estimates the
probable losses inherent in the portfolio based
upon various analysis. These include migration
analysis, in which historical delinquency and
credit loss experience is applied to the current
aging of the portfolio, together with analysis
that reflect current trends and conditions.
• Note 2(f) - Fair value estimation for financial
assets and liabilities
The determination of fair value for financial
assets and liabilities for which there is no
observable market price that requires the use of
valuation techniques as described in accounting
policy in Note 2(f)(vi).
Notes To The Financial Statements
Statement of compliance (continued)
Annual Report 2012
A.
The initial application of the other applicable standards,
amendments and interpretations are not expected to
have any material financial impact to the current and
prior periods of the financial statements of the Group
and the Bank upon their first adoption.
Citibank berhad
Basis of preparation (continued)
043
1.
1.
Basis of preparation (continued)
D.
effective interest rate is the rate that exactly
discounts the estimated future cash payments and
receipts through the expected life of the financial
asset or liability (or, where appropriate, a shorter
period) to the carrying amount of the financial asset
or liability. The effective interest rate is established on
initial recognition of the financial asset and liability
and is not revised subsequently.
Use of estimates and judgements (continued)
• Note 19 - Actuarial valuation for employee
benefits
The liability for the defined benefit plan is
recognised as the present value of the defined
benefit obligation less the fair value of the Plan’s
assets, plus unrecognised actuarial gain, less
unrecognised past service cost and unrecognised
actuarial losses as described in Note 2(o)(iii).
The calculation of the effective interest rate includes
all fees and points paid or received, transaction costs,
and discounts or premiums that are an integral part
of the effective interest rate. Transaction costs are
incremental costs that are directly attributable to the
acquisition, issue or disposal of a financial asset or
liability.
2. Significant accounting policies
A.
Citibank berhad
044
Interest income and expense presented in the
statements of comprehensive income include:
• Interest on financial assets and liabilities at
amortised cost on an effective interest rate basis;
and
• Interest on financial assets held-for-trading,
financial investments available-for-sale on an
effective interest rate basis.
Basis of consolidation
i. Subsidiaries
Subsidiaries are entities, including unincorporated
entities, controlled by the Bank. The financial
statements of subsidiaries are included in the
consolidated financial statements from the date
that control commences until the date that control
ceases. Control exists when the Bank has the ability
to exercise its power to govern the financial and
operating policies of an entity so as to obtain
benefits from its activities. In assessing control,
potential voting rights that presently are
exercisable are taken into account.
D.
Other fees and commission income, including
placement fees, account servicing fees, investment
management fees, sales commission, are recognised
as the related services are performed. When a loan
commitment is not expected to result in the
draw-down of a loan, loan commitment fees are
recognised on a straight-line basis over the
commitment period. When it is probable that a loan
commitment will result in a specific lending
arrangement, commitment fees are included in the
measurement of the effective interest rate.
The accounting policies of subsidiaries are
changed when necessary to align them with the
policies adopted by the Bank.
ii. Transactions eliminated on consolidation
Intra-group balances and transactions, and any
unrealised income and expenses arising from
intra-group transactions, are eliminated in
preparing the consolidated financial statements.
B.
C.
Other fees and commission expense relates mainly to
management and service fees, which are expensed as
the services are received.
E.
Interest and financing income and expense
Interest income and expense are recognised in the
profit or loss using the effective interest method. The
Net trading income
Net trading income comprises gains less losses
related to trading assets and liabilities, and includes
all realised and unrealised fair value changes,
interest, dividends and foreign exchange differences.
Revenue
Revenue comprises of gross interest income,
commission and other income derived from banking
operations and net income from Islamic Banking
operation.
Fee and commission income
Fee and commission income and expenses that are
integral to the effective interest rate on a financial
asset or liability are included in the measurement of
the effective interest rate.
Investments in subsidiaries are measured in the
Bank’s statement of financial position at cost less
any impairment losses, unless the investment is
held for sale or distribution. The cost of
investments includes transaction costs.
Annual Report 2012
Notes To The Financial Statements
The accounting policies set out below have been applied
consistently to the periods presented in these financial
statements and in preparing the opening MFRS
statements of financial position of the Group and the
Bank at 1 January 2011 (the transition date to MFRS
framework), unless otherwise stated.
F.
Financial assets and liabilities
i. Initial recognition and measurement
A financial asset or a financial liability is
recognised in the statement of financial position
when, and only when, the Group or the Bank
becomes a party to the contractual provisions of
the instrument.
2. Significant accounting policies (continued)
Financial assets and liabilities (continued)
Loans and receivables
Loans and receivables category comprises
debt instruments that are not quoted in an
active market.
i. Initial recognition and measurement (continued)
The Group and the Bank categorise financial
instruments as follows:
Financial assets
a.
Financial assets at fair value through profit
or loss
Fair value through profit or loss category
comprises financial assets that are held for
trading, including derivatives (except for a
derivative that is a financial guarantee
contract or a designated and effective
hedging instrument) or financial assets that
are specifically designated into this
category upon initial recognition.
Derivatives that are linked to and must be
settled by delivery of unquoted equity
instruments whose fair values cannot be
reliably measured are measured at cost.
Other financial assets categorised as fair
value through profit or loss are subsequently
measured at their fair values with the gain or
loss recognised in profit or loss.
b.
Held-to-maturity investments
Held-to-maturity investments category
comprises debt instruments that are quoted
in an active market and the Group or the
Bank has the positive intention and ability
to hold them to maturity.
Financial assets categorised as held-to-maturity
investments are subsequently measured at
amortised cost using the effective interest
method.
Financial investments available-for-sale
Available-for-sale category comprises
investment in equity and debt securities
instruments that are not held for trading.
Investments in equity instruments that do
not have a quoted market price in an active
market and whose fair value cannot be
reliably measured are measured at cost.
Other financial assets categorised as
available-for-sale are subsequently measured
at their fair values with the gain or loss
recognised in other comprehensive income,
except for impairment losses, foreign
exchange gains and losses arising from
monetary items and gains and losses of
hedged items attributable to hedge risks
of fair value hedges which are recognised
in profit or loss. On derecognition, the
cumulative gain or loss recognised in other
comprehensive income is reclassified from
equity into profit or loss. Interest calculated
for a debt instrument using the effective
interest method is recognised in profit or loss.
All financial assets, except for those measured
at fair value through profit or loss, are subject
to review for impairment (see Note 2(g)).
Financial liabilities
All financial liabilities are subsequently
measured at amortised cost other than those
categorised as fair value through profit or loss.
Fair value through profit or loss category
comprises financial liabilities that are
derivatives (except for a derivative that is a
financial guarantee contract or a designated
and effective hedging instrument) or financial
liabilities that are specifically designated into
this category upon initial recognition.
Notes To The Financial Statements
ii. Financial instrument categories and subsequent
measurement
d.
Annual Report 2012
An embedded derivative is recognised separately
from the host contract and accounted for as a
derivative if, and only if, it is not closely related to
the economic characteristics and risks of the host
contract and the host contract is not categorised at
fair value through profit or loss. The host contract,
in the event an embedded derivative is recognised
separately, is accounted for in accordance with
policy applicable to the nature of the host contract.
Financial assets categorised as loans and
receivables are subsequently measured
at amortised cost using the effective
interest method.
Derivatives that are linked to and must be
settled by delivery of unquoted equity
instruments whose fair values cannot be
reliably measured are measured at cost.
Citibank berhad
A financial instrument is recognised initially, at its
fair value plus, in the case of a financial instrument
not at fair value through profit or loss, transaction
costs that are directly attributable to the
acquisition or issue of the financial instrument.
Other financial liabilities categorised as fair
value through profit or loss are subsequently
measured at their fair value with the gain or
loss recognised in profit or loss.
045
F.
c.
2. Significant accounting policies (continued)
F.
Income and expenses are presented on a net
basis only when permitted by the accounting
standards, or for gains and losses arising from a
group of similar transactions such as in the
Group’s and the Bank’s trading activity.
Financial assets and liabilities (continued)
iii. Regular way purchase or sale of financial
assets
vi. Fair value measurement
A regular way purchase or sale is a purchase or
sale of a financial asset under a contract whose
terms require delivery of the asset within the
time frame established generally by regulation
or convention in the marketplace concerned.
Fair value is the amount for which an asset could
be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length
transaction on the measurement date.
The determination of fair values of financial
assets and financial liabilities are based on quoted
market prices or dealer price quotation, for
financial instruments traded in active markets
without any deduction for transaction cost. The
Group and the Bank also use widely recognised
valuation models for determining the fair value of
common and simpler financial instruments such
as options and interest rate and currency swaps.
For these financial instruments, inputs into
models are market observable.
046
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
A regular way purchase or sale of financial
assets is recognised and derecognised, as
applicable, using trade date accounting. Trade
date accounting refers to:
a.
the recognition of an asset to be received
and the liability to pay for it on the trade
date, and
b.
derecognition of an asset that is sold,
recognition of any gain or loss on disposal
and the recognition of a receivable from the
buyer for payment on the trade date.
The Group and the Bank use valuation techniques
to determine the fair value of financial assets and
liabilities where quoted prices in an active market
are not available. The valuation techniques used
for different financial instruments are selected to
reflect how the market would be expected to price
the instruments, using inputs that reasonably
reflect risk-return factors inherent in the
instruments. Depending upon the characteristics
of the financial instruments, observable market
factors are available for use in most valuations,
while other valuations may involve a greater
degree of judgement and estimation.
iv. Derecognition
A financial asset or part of it is derecognised
when, and only when the contractual rights to
the cash flows from the financial asset expire or
the financial asset is transferred to another party
without retaining control or substantially all
risks and rewards of the asset. On derecognition
of a financial asset, the difference between
the carrying amount and the sum of the
consideration received (including any new asset
obtained less any new liability assumed) and any
cumulative gain or loss that had been recognised
in equity is recognised in the profit or loss.
The value produced by a model or other valuation
techniques is adjusted to allow for a number of
factors as appropriate, because valuation
techniques cannot appropriately reflect all factors
market participants take into account when
entering into a transaction. Valuation adjustments
are recorded to allow for model risks, bid-ask
spreads, liquidity risks, as well as other factors.
Management believes that these valuation
adjustments are necessary and appropriate to
fairly state financial instruments carried at fair
value on the statements of financial position.
A financial liability or a part of it is derecognised
when, and only when, the obligation specified
in the contract is discharged or cancelled or
expires. On derecognition of a financial liability,
the difference between the carrying amount of
the financial liability extinguished or transferred
to another party and the consideration paid,
including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
v. Offsetting
Financial assets and liabilities are offset and
the net amount reported in the statements of
financial position when, and only when, the
Group and the Bank have a legal right to set off
the amounts and intend either to settle on a
net basis or to realise the asset and settle the
liability simultaneously.
G.
Impairment
i. Financial assets
At each reporting date, the Group and the Bank
assess whether there is objective evidence that
financial assets not carried at fair value through
profit or loss are impaired. Financial assets
categorised as held to maturity and receivable
are impaired when objective evidence demonstrates
that a loss event has occurred after the initial
recognition of the asset, and that the loss event
has an impact on the future cash flows on the
asset that can be estimated reliably. Impairment
losses are measured as the difference between the
carrying amount of the financial assets and the
present value of estimated cash flows discounted
at the assets’ original effective interest rate.
The Group and the Bank assess whether objective
evidence of impairment exists individually for
financial assets that are individually significant.
For financial assets that are not individually
significant, assessment of objective evidence
of impairment is done individually or/and
collectively.
In assessing the collective impairment, the Group
and the Bank use methods as listed below
depending on the loan portfolio:i)
Statistical modeling of historical trends of the
probability of default, timing of recoveries and
the amount of loss incurred, adjusted for
management’s judgement as to whether the
current economic and credit conditions are
such that the actual losses incurred are
likely to be greater or less than suggested
historical modeling. Default rates, loss rates
and expected timing of future recoveries are
regularly benchmarked against actual
outcomes to ensure they remain appropriate;
ii)
Based upon historical delinquency flow rates,
charge-off statistics and loss severity, adjusted
for management’s judgement as to whether
current economic and credit conditions are
such that actual losses are likely to be greater
or less than suggested by historical modeling.
Objective evidence that a loan or a loan portfolio
is impaired includes observable data that could
include the following loss events:
•
•
•
•
•
significant financial difficulty of the issuer
or obligor;
a breach of contract, such as a default or
delinquency in interest or principal payments;
it becomes probable that the borrower will
enter bankruptcy or other financial
reorganisation;
observable data relating to a portfolio of
financial assets such as:
i) adverse changes in the payment status
of borrowers in the portfolio; and
ii) national or local economic conditions
that correlate with defaults on the
assets in the portfolio.
the disappearance of an active market for a
security.
Above all, a loan is also classified as impaired if the
repayment conduct of the loan is past due for more
than 90 days of either principal, interest or both.
If the Group and the Bank determine 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. Assets that are individually assessed
for impairment and for which an impairment loss is
or continues to be recognised are not included in a
separate collective assessment of impairment.
Losses are recognised in the profit or loss and
reflected in an allowance account against loans
and advances.
An impairment loss in respect of financial
investments available-for-sale is recognised in
profit or loss and is measured as the difference
between the asset’s acquisition cost (net of any
principal repayment and amortisation) and the
asset’s current fair value, less any impairment
loss previously recognised. Where a decline in
the fair value of an financial investments
available-for-sale has been recognised in other
comprehensive income, the cumulative loss in
other comprehensive income is reclassified from
equity to profit or loss.
An impairment loss in respect of unquoted equity
instrument that is carried at cost is recognised in
profit or loss and is measured as the difference
between the asset’s carrying amount and the
present value of estimated future cash flows
discounted at the current market rate of return
for a similar financial asset.
Notes To The Financial Statements
i. Financial assets (continued)
Annual Report 2012
Impairment (continued)
Citibank berhad
G.
For the purposes of the collective evaluation of
impairment, financial assets are grouped on the
basis of similar credit risk characteristics by using a
grading process that considers obligor type,
industry, geographical location, collateral type,
past-due status and other relevant factors. These
characteristics are relevant to the estimation of
future cash flows for groups of such assets by
being indicative of the likelihood of receiving all
amounts due under a facility according to the
contractual terms of the assets being evaluated.
047
2. Significant accounting policies (continued)
2. Significant accounting policies (continued)
G.
amount since the last impairment loss was
recognised. An impairment loss is reversed only
to the extent that the asset’s carrying amount
does not exceed the carrying amount that would
have been determined, net of depreciation or
amortisation, if no impairment loss had been
recognised. Reversals of impairment losses are
credited to profit or loss in the financial year in
which the reversals are recognised.
Impairment (continued)
i. Financial assets (continued)
Impairment losses recognised in profit or loss
for an investment in an equity instrument is
not reversed through profit or loss.
If, in a subsequent period, the fair value of a
debt instrument 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, to the extent that the asset’s
carrying amount does not exceed what the
carrying amount would have been had the
impairment not been recognised at the date
the impairment is reversed. The amount of the
reversal is recognised in profit or loss.
H.
Securities purchased under resale agreements are
securities which the Group and the Bank had
purchased with a commitment to resell at future dates.
The commitment to resell the securities is reflected as
an asset on the statements of financial position.
Conversely, obligations on securities sold under
repurchase agreements are securities which the
Group and the Bank have sold from its portfolio,
with a commitment to repurchase at future dates.
Such financing transactions and the obligations
to repurchase the securities in its entirety are
reflected as a liability on the statements of
financial position. The securities sold under
repurchase agreements are treated as pledged
assets and continue to be recognised as assets in
the statements of financial position.
048
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
ii. Other assets
The carrying amounts of other assets (except
for deferred tax asset and assets arising from
employee benefits) are reviewed at the end of
each reporting period to determine whether
there is any indication of impairment. If any
such indication exists, then the asset’s
recoverable amount is estimated.
I.
An impairment loss is recognised if the carrying
amount of an asset or its related cash-generating
unit exceeds its recoverable amount.
Impairment losses are recognised in the profit
or loss. Impairment losses recognised in respect
of cash-generating units are allocated to reduce
the carrying amount of the other assets in the
unit (groups of units) on a prorata basis.
Impairment losses recognised in prior periods
are assessed at the end of each reporting period
for any indications that the loss has decreased
or no longer exists. An impairment loss is
reversed if there has been a change in the
estimates used to determine the recoverable
Cash and cash equivalents
Cash and cash equivalents consist of cash and bank
balances and short term funds that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of change in value,
with original maturity within one month.
For the purpose of impairment testing, assets
are grouped together into the smallest group
of assets that generates cash inflows from
continuing use that are largely independent
of the cash inflows of other assets or
cash-generating units.
The recoverable amount of an asset or
cash-generating unit is the greater of its value
in use and its fair value less costs to sell. In
assessing value in use, the estimated future
cash flows are discounted to their present
value using a pre-tax discount rate that
reflects current market assessments of the
time value of money and the risks specific to
the asset or cash-generating unit.
Repurchase and resale agreement
Cash and cash equivalents are categorised and
measured as loans and receivables in accordance
with policy Note 2(f) and carried at amortised cost in
the statements of financial position.
J.
Plant and equipment
i. Recognition and measurement
Items of plant and equipment are measured at
cost less any accumulated depreciation and any
accumulated impairment losses.
Cost includes expenditures that are directly
attributable to the acquisition of the asset and
any other costs directly attributable to bringing
the asset to working condition for its intended
use, and the costs of dismantling and removing
the assets and restoring the site on which they
are located. Purchased software that is integral to
the functionality of the related equipment is
capitalised as part of that equipment.
When significant parts of an item of plant and
equipment have different useful lives, they are
accounted for as separate items (major
components) of plant and equipment.
2. Significant accounting policies (continued)
Plant and equipment (continued)
i. Recognition and measurement (continued)
The gain or loss on disposal of an item of plant
and equipment is determined by comparing the
proceeds from disposal with the carrying amount
of plant and equipment and is recognised net
within “other income” or “other operating
expenses” respectively in profit or loss.
ii. Operating lease
ii. Subsequent costs
Depreciation is based on the cost of an asset
less its residual value. Significant components
of individual assets are assessed, and if a
component has a useful life that is different
from the remainder of the asset, then that
component is depreciated separately.
Depreciation is recognised in profit or loss on a
straight-line basis over the estimated useful
lives of each component of an item of plant and
equipment. Leased assets are depreciated over
the shorter of the lease term and their useful
lives unless it is reasonably certain that the
Group and the Bank will obtain ownership by the
end of the lease term.
The estimated useful lives for the current and
comparative periods are as follows:
• building and leasehold land 40 years - 50 years
• installations
8 years - 14 years
• furniture and equipment
2 years - 10 years
Depreciation methods, useful lives and residual
values are reviewed at end of the reporting
period, and adjusted as appropriate.
K.
Leased assets
i. Finance lease
Leases in terms of which the Group or the Bank
assumes substantially all the risks and rewards of
ownership are classified as finance leases. Upon
initial recognition, the leased asset is measured
at an amount equal to the lower of its fair value
and the present value of the minimum lease
payments. Subsequent to initial recognition, the
asset is accounted for in accordance with the
accounting policy applicable to that asset.
L.
Bills and acceptances payable
Bills and acceptances payable represent the
Group’s and the Bank's own bills and acceptances
rediscounted and outstanding in the market.
M. Foreign currency
Transactions in foreign currencies are translated
to the functional currency of the Group and the
Bank entities at exchange rates at the dates of
the transactions.
Monetary assets and liabilities denominated in
foreign currencies at the reporting period are
retranslated to the functional currency of the Group
and the Bank at the exchange rate at that date.
Non-monetary assets and liabilities denominated in
foreign currencies are not retranslated at the end
of the reporting date, except for those that are
measured at fair value are retranslated to the
functional currency at the exchange rate at the
date that the fair value was determined.
Foreign currency differences arising on
retranslation are recognised in profit or loss,
except for differences arising on the retranslation
of financial investments available-for-sale equity
instruments, which are recognised in other
comprehensive income.
Annual Report 2012
iii. Depreciation
Citibank berhad
Payments made under operating leases are
recognised in profit or loss on a straight-line
basis over the term of the lease. Lease
incentives received are recognised in profit or
loss as an integral part of the total lease
expense, over the term of the lease. Contingent
rentals are charged to profit or loss in the
reporting period in which they are incurred.
Notes To The Financial Statements
Leases, where the Group or the Bank does not
assume substantially all the risks and rewards
of ownership are classified as operating leases
and, the leased assets are not recognised on
the statement of financial position.
The cost of replacing a component of an item of
plant and equipment is recognised in the
carrying amount of the item if it is probable that
the future economic benefits embodied within
the component will flow to the Group and the
Bank, and its cost can be measured reliably. The
carrying amount of the replaced component is
derecognised to profit or loss. The costs of the
day-to-day servicing of plant and equipment are
recognised in profit or loss as incurred.
049
J.
Minimum lease payments made under finance
leases are apportioned between the finance
expense and the reduction of the outstanding
liability. The finance expense is allocated to
each period during the lease term so as to
produce a constant periodic rate of interest
on the remaining balance of the liability.
Contingent lease payments are accounted for
by revising the minimum lease payments over
the remaining term of the lease when the lease
adjustment is confirmed.
2. Significant accounting policies (continued)
N.
Income tax
Income tax expense comprises current and deferred
tax. Current tax and deferred tax are recognised in
profit or loss except to the extent that it relates to
items recognised directly in equity or other
comprehensive income.
Current tax is the expected tax payable or
receivable on the taxable income or loss for the
year, using tax rates enacted or substantively
enacted by the end of the reporting period, and any
adjustment to tax payable in respect of previous
financial years.
Notes To The Financial Statements
Deferred tax is recognised using the liability
method, providing for temporary differences
between the carrying amounts of assets and
liabilities in the statement of financial position and
their tax bases. Deferred tax is measured at the tax
rates that are expected to apply to the temporary
differences when they reverse, based on the laws
that have been enacted or substantively enacted
by the end of the reporting period.
Deferred tax assets and liabilities are offset if
there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised to the extent
that it is probable that future taxable profits will be
available against which temporary difference can
be utilised. Deferred tax assets are reviewed at the
end of each reporting period and are reduced to
the extent that it is no longer probable that the
related tax benefit will be realised.
050
Citibank berhad
Annual Report 2012
Unutilised reinvestment allowance and investment
tax allowance, being tax incentives that are not a
tax base of an asset, is recognised as a deferred tax
asset to the extent that it is probable that the
future taxable profits will be available against the
unutilised tax incentive can be utilised.
O.
Employee benefits
i. Short-term employee benefits
Short-term employee benefit obligations in
respect of salaries, annual bonuses, paid annual
leave and sick leave are measured on an
undiscounted basis and are expensed as the
related services are provided.
A liability is recognised for the amount expected
to be paid under short-term cash bonus or
profit-sharing plans if the Group and the Bank
have a present legal or constructive obligation
to pay this amount as a result of past service
provided by the employee and the obligation
can be estimated reliably.
The Group and the Bank contribute to the
Employees Provident Fund (“EPF”) for eligible
employees on a monthly basis. Obligations for
contributions to EPF are recognised as an
expense in the statements of comprehensive
income in the year to which they relate. Once
the contributions have been paid, the Group and
the Bank have no further payment obligations.
ii. Defined contribution plan
In addition to the contribution requirement by
law, the Group and the Bank are contributing
additional amounts for those employees eligible
under the defined contribution plan. The
contribution is made to Citibank Malaysia
Official Staff Retirement Plan ("the Plan") and is
recognised as an expense in the statements of
comprehensive income as incurred.
iii. Defined benefit plan
The Bank and certain related companies
contribute to the Citibank Malaysia Official Staff
Retirement Plan ("the Plan") for eligible
officers. Contributions are made based on an
external actuarial report to the Plan, which is
a defined benefit scheme and defined
contribution scheme (as explained in item (ii)
above), and is funded to the extent permitted by
tax allowable Bank contributions.
The amount recognised in the statements of
financial position represents the present value of
the defined benefit obligations adjusted for
unrecognised actuarial gains and losses and
unrecognised past service costs, and reduced by
the fair value of the Plan’s assets. The benefit is
calculated using the Projected Unit Credit Method
in order to determine its present value. Any asset
resulting from this calculation is limited to the net
total of any unrecognised actuarial losses and
past service costs, and the present value to any
economic benefits in the form of refunds or
reductions in future contributions to the fund.
Amortisation of unrecognised gains or losses are
included as a component of the annual expense
for a year if, as of the beginning of the year, that
cumulative net unrecognised gains or losses
exceeds 10% of the greater of the Plan’s liability
or value of the Plan’s assets. If amortisation is
required, the amortisation is that excess divided
by the expected average remaining working lives
of the employees participating in the Plan.
are expected to vest. At each reporting date,
the Group and the Bank revise its estimates of
the number of options that are expected to
vest. It recognises the impact of the revision of
original estimates, if any, in the profit or loss.
2. Significant accounting policies (continued)
Employee benefits (continued)
iii. Defined benefit plan (continued)
P.
Foreclosed properties are those acquired in full or
partial satisfaction of debts, are stated at cost
less accumulated impairment losses.
A provision is recognised if, as a result of a past
event, the Group and the Bank have a present legal
or constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. Provisions are determined by
discounting the expected future cash flows at a
pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. The unwinding of the
discount is recognised as finance cost.
The Group and the Bank participate in
equity-settled and cash-settled share based
compensation plan for the employees that is
offered by the ultimate holding company, Citigroup
Inc.. The fair value of the services received in
exchange for the grant of the options is recognised
as an expense in the profit or loss over the vesting
periods of the grant.
R.
Deposits from customers and deposits and
placements of banks and financial institutions
Deposits from customers are stated at placement
values and adjusted for accrued interest.
Deposits and placements of banks and financial
institutions are stated at placement values.
3. Cash and short term funds
Group
Cash and balances with banks
and other financial institutions
Money at call and deposit
placements maturing within one month
Bank
Cash and balances with banks
and other financial institutions
Money at call and deposit
placements maturing within one month
31 .1 2 . 20 1 2
31 .1 2 . 20 1 1
1 .1 . 2011
RM’000
RM’000
RM’000
88,995
61,830
61,683
10,204,240
11,906,610
10,419,350
10,293,235
11,968,440
10,481,033
88,975
61,810
61,663
10,204,240
11,906,610
10,419,350
10,293,215
11,968,420
10,481,013
Notes To The Financial Statements
Provisions
Annual Report 2012
Q.
iv. Share-based compensation
The total amount to be expensed over the
vesting period is determined by reference to the
fair value of the 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
Foreclosed properties
Citibank berhad
When the benefits of the Plan are improved, the
portion of the increased benefits relating to
past service by employees is recognised in profit
or loss on a straight-line basis over the average
period until the benefits become vested. To the
extent that the benefits vest immediately, the
expense is recognised in profit or loss.
051
O.
4. Deposits and placements with banks and other financial institutions
Group and Bank
Licensed banks
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
296,775
1,516,673
811,660
5. Financial assets held-for-trading
Group and Bank
At fair value
Malaysian Government Treasury Bills
Notes To The Financial Statements
Malaysian Government Securities
Malaysian Government Investment Issues
Bank Negara Malaysia Bills/Notes
Corporate Notes/Private debt securities
Annual Report 2012
Citibank berhad
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
103,053
101,468
101,520
642,680
1,004,580
130,739
267,104
13,572
136,604
2,032,220
1,217,229
1,468,506
-
-
15,094
3,045,057
2,336,849
1,852,463
6. Financial investments available-for-sale
Group and Bank
At fair value
Malaysian Government Treasury Bills/Securities*
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
1,698,966
3,368,908
2,202,157
Bank Negara Malaysia Bills
788,073
-
227,218
Malaysian Government Investment Issues
904,898
1,849,101
537,506
-
-
131,108
3,391,937
5,218,009
3,097,989
7,499
7,499
7,499
3,399,436
5,225,508
3,105,488
Yankee bonds/US bonds
052
31.12.2012
At cost
Unquoted securities
*
Malaysian Government Securities of the Group and the Bank amounting to RM 1 30 million at 1 January 2011 was
utilised to meet the Statutory Reserve Requirement as further explained in Note 10.
7. Loans, advances and financing
i.
By type
Overdrafts
Term loans/financing
- housing loans/financing
- hire purchase receivables
- lease receivables
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
408,205
298,496
243,261
8,956,129
9,192,709
9,827,111
808
1,592
3,175
570
698
3,678
1,350,200
1,474,378
1,266,750
Bills receivable
740,065
954,240
458,410
Trust receipts
13,100
15,671
14,147
922,132
1,125,751
1,111,455
91,719
94,091
101,585
- other term loans/financing
Claims on customers under acceptance credits
Staff loans
Share margin financing
180,455
182,814
189,523
Credit cards receivables
6,093,593
5,951,843
5,702,121
Revolving credit
1,099,443
1,676,499
1,197,172
6,578
3,491
-
19,862,997
20,972,273
20,118,388
(23,970)
(30,185)
(38,615)
19,839,027
20,942,088
20,079,773
- Collective assessment allowance
(357,064)
(365,325)
(369,357)
- Individual assessment allowance
(205,769)
(219,436)
(229,542)
19,276,194
20,357,327
19,480,874
502,069
649,573
299,856
Other loans
Unearned interest and income
Gross loans, advances and financing
Less:
Allowance for impaired loans, advances and financing
Net loans, advances and financing
Notes To The Financial Statements
Group and Bank
31.12.2012
- small and medium enterprises
423,326
454,944
408,191
- others
2,823,232
3,662,412
2,727,617
Individuals
15,869,348
15,958,134
16,365,585
221,052
217,025
278,524
19,839,027
20,942,088
20,079,773
Foreign entities
Citibank berhad
- others
Domestic business enterprises
053
Domestic non-bank financial institutions
Annual Report 2012
ii. By type of customer
7. Loans, advances and financing (continued)
iii. By interest/profit rate sensitivity
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
741,937
823,612
887,577
Fixed rate
Housing loans/financing
Hire purchase receivables
808
1,592
3,175
9,181,998
10,028,423
8,977,936
BLR plus
9,034,808
9,229,388
9,825,153
Cost plus
879,476
859,073
385,932
19,839,027
20,942,088
20,079,773
Primary agriculture
93,268
105,178
35,022
Mining and quarrying
32,050
18,991
7,7088
1,705,728
2,409,915
1,710,721
84,073
86,890
32,295
Other fixed rate loans/financing
Variable rate
054
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
iv. By sector
Manufacturing (including agriculture based)
Electricity, gas and water
Construction
43,163
45,704
46,104
Wholesale, retail trade, restaurants and hotels
758,725
921,932
841,024
Transport, storage and communication
307,544
301,573
137,600
Finance, insurance, real estate and business services
639,076
800,246
512,027
9,862
16,160
19,933
- consumption credit
6,689,390
6,501,532
6,246,231
- residential
8,751,212
9,001,842
9,623,221
- purchase of securities
180,455
182,814
189,523
- others
248,291
271,947
306,610
Other sectors
296,190
277,364
371,754
19,839,027
20,942,088
20,079,773
Education, health and others
Household
v.
By purpose
Purchase of securities
Purchase of landed property
Purchase of fixed assets excluding land and building
180,455
182,814
189,523
9,321,539
9,584,490
10,243,017
3,500
5,406
9,545
693,920
660,946
698,800
6,093,593
5,951,843
5,702,121
17,112
22,009
8,562
Working capital
3,478,277
4,446,136
3,214,915
Other purposes
50,631
88,444
13,290
19,839,027
20,942,088
20,079,773
Personal use
Credit card
Construction
7. Loans, advances and financing (continued)
vi. Residual contractual maturity
Group and Bank
Maturing within one year
One to five years
Over 5 years
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
9,691,474
10,620,083
6,711,563
739,269
714,320
3,099,068
9,408,284
9,607,685
10,269,142
19,839,027
20,942,088
20,079,773
19,839,027
20,942,088
20,079,773
Movements in impaired loans, advances and financing are as follows:
Group and Bank
2012
2011
2010
RM’000
RM’000
RM’000
At 1 January
518,800
540,814
491,317
Classified as impaired during the year
694,620
767,545
724,457
Reclassified as performing during the year
(361,861)
(393,385)
(325,418)
Amount recovered
(205,842)
(233,862)
(178,916)
Amount written off
(163,863)
(162,312)
(170,626)
481,854
518,800
540,814
(205,769)
(219,436)
(229,542)
276,085
299,364
311,272
1.41%
1.44%
1.57%
At 31 December
Individual assessment allowance
Net impaired loans, advances and financing
Ratio of net impaired loans and financing to gross loans
and financing less individual assessment allowance
Annual Report 2012
i.
Citibank berhad
8. Impaired loans, advances and financing
055
Within Malaysia
Notes To The Financial Statements
vii. By geographical distribution
8. Impaired loans, advances and financing (continued)
ii. Movements in impairment provisions for loans, advances and financing are as follows:
Group and Bank
2012
2011
2010
RM’000
RM’000
RM’000
365,325
369,357
360,407
(8,261)
(4,032)
8,950
357,064
365,325
369,357
1.82%
1.76%
1.86%
219,436
229,542
221,588
10,957
16,888
34,644
(19,777)
(19,418)
(12,984)
(4,847)
(7,576)
(13,706)
205,769
219,436
229,542
Collective assessment allowance
At 1 January
(Written back)/Allowance made during the year, net
At 31 December
As % of gross loans, advances and financing
less individual assessment allowance
Individual assessment allowance
Notes To The Financial Statements
At 1 January
Allowance made during the period
Written back during the year
Written off during the year
At 31 December
iii. Impaired loans, advances and financing by sector
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
7,689
7,328
8,937
373
373
-
Manufacturing (including agriculture based)
33,651
32,041
36,178
Construction
13,492
14,934
17,026
Wholesale, retail trade, restaurants and hotels
16,300
18,082
20,070
71
84
104
7,556
9,970
12,081
- consumption credit
117,880
114,802
116,112
- residential
264,529
299,025
307,265
19,831
20,475
20,795
482
1,686
2,246
481,854
518,800
540,814
518,800
540,814
Primary agriculture
Mining and quarrying
Citibank berhad
Annual Report 2012
Transport, storage and communication
Finance, insurance, real estate and business services
Household
- purchase of securities
Other purposes
056
iv. Impaired loans, advances and financing by geographical distribution
Within Malaysia
481,854
9. Other assets
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Interest/Income receivable
42,295
66,150
45,836
Other debtors, deposits and prepayments
293,651
414,094
264,640
Derivative assets (Note 30)
472,092
820,647
1,007,240
24,888
5,097
-
832,926
1,305,988
1,317,716
Tax recoverable
10. Statutory deposits with Bank Negara Malaysia
At 1 January 2011
Recognised in profit or loss
Recognised in other comprehensive income
At 31 December 2011/
At 1 January 2012
Recognised in profit or loss
Recognised in other comprehensive income
At 31 December 2012
Plant and
equipment Capital
allowances
Provisions
Reserves
- Available
-for-sale
securities
RM’000
Total
RM’000
RM’000
RM’000
(19,594)
76,416
2,478
59,300
(260)
(53,304)
-
(53,564)
-
-
(4,940)
(4,940)
(19,854)
23,112
(2,462)
796
5,038
8,721
-
13,759
-
-
2,737
2,737
(14,816)
31,833
275
17,292
Deferred tax assets and liabilities are offset above as there is a legally enforceable right to set off current tax
assets against current tax liabilities.
Annual Report 2012
Deferred tax assets and liabilities are attributable to the followings:
Citibank berhad
11. Deferred tax assets
057
In accordance with BNM’s circular titled “Regulatory Treatment related to the Statutory Reserve Requirement
Incentive for Principal Dealers and Islamic Principal Dealers” issued on 10 July 2009, the Bank being a principal
dealer appointed by BNM, is allowed to utilise Malaysia Government Securities (“MGS”) holdings to meet the SRR.
As at 1 January 2011, MGS of the Group and the Bank with nominal amount of RM130 million are utilised for SRR
determination purposes. These securities are classified under financial investments available-for-sale (Note 6).
Notes To The Financial Statements
The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia (“BNM”) in compliance
with Section 37(1)(c) of the Central Bank of Malaysia Act 1958 (revised - 1994) to satisfy the Statutory Reserve
Requirement (“SRR”), the amount of which is determined as a set percentage of total eligible liabilities.
11. Deferred tax assets (continued)
The recognised deferred tax assets and liabilities are as follows:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
(14,816)
(19,854)
(19,594)
31,833
23,112
76,416
275
(2,462)
2,478
17,292
796
59,300
Plant and equipment
- capital allowances
Provisions
Fair value of available-for-sale securities
12. Investments in subsidiary companies
058
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
20
20
20
Unquoted shares at cost – in Malaysia
Details of the wholly owned subsidiaries are as follows:
Name of subsidiary
Citigroup Nominee
(Malaysia) Sdn. Bhd.
Citigroup Nominees
(Tempatan) Sdn. Bhd.*
Citigroup Nominees
(Asing) Sdn. Bhd.*
Principal activity
31 .1 2 . 20 1 2
%
Effective
Ownership
Interest
31 .1 2 . 20 1 1
%
1 .1 . 2011
%
Country of
incorporation
Nominee company
Malaysia
100
100
100
Nominee company
Malaysia
100
100
100
Nominee company
Malaysia
100
100
100
* Wholly owned by Citigroup Nominee (Malaysia) Sdn. Bhd.
All income and expenditure arising from the activities of the subsidiaries have been recognised in the Bank’s
statement of comprehensive income.
13. Plant and equipment
Group and Bank
Cost
At 1 January 2011
Building on
leasehold
land
RM’000
Installations
Furniture
and
equipment
Total
RM’000
RM’000
RM’000
6,234
97,137
313,701
417,072
Additions
347
22,489
26,347
49,183
Disposals
-
(5,499)
(9,261)
(14,760)
Write offs
-
-
(843)
(843)
6,581
114,127
329,944
450,652
At 31 December 2011/1 January 2012
Additions
73
6,439
19,522
26,034
Disposals
(256)
(9,206)
(17,182)
(26,644)
At 31 December 2012
6,398
111,360
332,284
450,042
4,011
84,913
219,367
308,291
462
6,490
28,761
35,713
Disposals
-
(5,412)
(8,002)
(13,414)
Written offs
-
-
(843)
(843)
4,473
85,991
239,283
329,747
411
10,050
26,073
36,534
Disposals
(196)
(9,018)
(16,368)
(25,582)
At 31 December 2012
4,688
87,023
248,988
340,699
At 1 January 2011
2,223
12,224
94,334
108,781
At 31 December 2011/1 January 2012
2,108
28,136
90,661
120,905
At 31 December 2012
1,710
24,337
83,296
109,343
Charge for the year
Carrying amounts
Annual Report 2012
At 31 December 2011/1 January 2012
Citibank berhad
Charge for the year
059
At 1 January 2011
Notes To The Financial Statements
Depreciation
14. Deposits from customers
i.
By type of deposit
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
11,908,032
10,026,162
9,869,460
762,393
935,372
837,370
Fixed deposits
9,791,266
9,559,230
11,583,915
Other deposits
6,289,233
9,463,856
6,449,080
144,403
75,917
80,002
37,162
10,168
24,163
28,932,489
30,070,705
28,843,990
Demand deposits
Saving deposits
Negotiable instruments of deposit
Others - cash collateral
060
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
ii. Maturity structure of fixed deposits, other deposits and negotiable instruments of deposit are as follows:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Due within six months
12,652,604
15,085,465
13,035,307
Six months to one year
3,084,133
3,396,307
4,425,735
One year to three years
371,650
385,752
351,701
Three years to five years
116,515
231,479
100,254
-
-
200,000
16,224,902
19,099,003
18,112,997
Over five years
iii. By type of customer
Group and Bank
Government and statutory bodies
Business enterprises
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
281,570
177,672
27,390
15,755,296
17,418,215
15,065,326
Individuals
9,810,329
9,799,589
10,276,013
Others
3,085,294
2,675,229
3,475,261
28,932,489
30,070,705
28,843,990
15. Deposits and placements of banks and other financial institutions
Group and Bank
Licensed banks
Licensed finance companies
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
2,746,513
7,777,097
2,046,727
108,707
-
276,198
2,855,220
7,777,097
2,322,925
16. Other liabilities
RM’000
52,883
65,949
57,354
1,664,584
1,685,973
1,649,851
270
701
372
-
45,765
528,677
769,950
1,044,120
2,246,414
2,522,573
2,797,462
Taxation
-
Derivative liabilities (Note 30)
17. Share capital
Group and Bank
Number
Number
Number
Amount
of shares
Amount
of shares
Amount
of shares
31.12.2012
31.12.2012
31.12.2011
31.12.2011
1.1.2011
1.1.2011
RM’000
’000
RM’000
’000
RM’000
’000
Authorised
500,000
500,000
500,000
500,000
500,000
500,000
Issued and fully paid
121,697
121,697
121,697
121,697
121,697
121,697
Ordinary shares of RM1 each:
18. Reserves
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Share premium
380,303
380,303
380,303
Statutory reserve
121,697
121,697
121,697
Fair value reserve
(823)
7,387
(6,630)
3,662,946
3,384,339
2,992,306
4,164,123
3,893,726
3,487,676
Retained profits
Annual Report 2012
Provision for retirement benefits (Note 19(i))
1.1.2011
RM’000
Citibank berhad
Other creditors and accruals
31.12.2011
RM’000
061
Interest/Profit payable
31.12.2012
Notes To The Financial Statements
Group and Bank
18. Reserves (continued)
The share premium arose from the issuance of 121,696,972 ordinary shares of RM1 each at an issue price of RM4.125
per share.
The statutory reserve is maintained in compliance with Section 36 of the Banking and Financial Institutions Act 1989
and is not distributable as cash dividends. No transfers were made to the statutory reserve during the year as the Bank
has met the reserve requirements.
The fair value reserve is in respect of unrealised fair value gains and losses on financial investments available-for-sale.
Subject to agreement by the Inland Revenue Board, the Bank has Section 108 tax credit and tax exempt income to frank
approximately RM1.11 billion of its distributable reserves at 31 December 2012 if paid out as dividends.
The Finance Act 2007 introduced a single tier company income tax system with effect from year of assessment 2008.
As such, the Section 108 tax credit balance as at 31 December 2012 will be available to the Bank until such time the
credit is fully utilised or upon expiry of the six-year transitional period on 31 December 2013, whichever is earlier.
19. Employee benefits
062
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
i.
Retirement benefits
The amounts recognised in the statements of financial position are as follows:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Present value of the funded obligation
Fair value of plan assets
Unrecognised past service costs
Unrecognised actuarial gains
Liability recognised in statements of financial position
31,391
35,439
34,633
(38,934)
(37,343)
(37,488)
(7,543)
(1,904)
(2,855)
(4)
(12)
(20)
7,817
2,617
3,247
270
701
372
The Group and the Bank make contributions to a fully funded defined benefit scheme for its employees.
Contributions to the fund are made to a separately administered fund. Under the fund, eligible employees are
entitled to one and a half month of the final/last drawn salary multiplied by the Plan service not in excess of 40
upon attainment of the retirement age of 55. For employees who leave before the attainment of the retirement
age, the retirement benefit will be computed based on the scale rate stipulated in the rules of the Fund.
On 1 January 2007, majority of the Plan members’ benefits accrued under the Defined Benefit Plan were
converted to the new Defined Contribution Plan. Only those staff who satisfied the criteria below, will
continue to be maintained under the Defined Benefit Plan.
a.
Age as at 31 December 2006: at least 40 years
b.
Years of service as at 31 December 2006: at least 5 years
c.
Sum of age and years of service as at 31 December 2006: at least 55 years
19. Employee benefits (continued)
Retirement benefits (continued)
Plan assets comprise:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Equities
11,291
9,709
10,984
Property
15,807
15,796
15,782
Securities
11,018
9,971
9,597
818
1,867
1,125
38,934
37,343
37,488
Others
Movement in the present value of the defined benefit obligations:
RM’000
Defined benefit obligations at 1 January
35,439
34,633
Benefits paid by the plan
(3,248)
(2,315)
3,221
3,323
Actuarial gains
(4,021)
(202)
Defined benefit obligations at 31 December
31,391
35,439
Current service costs and interest
Movement in the fair value of plan assets:
Group and Bank
Fair value of plan assets at 1 January
Contributions paid into the plan
20 1 2
20 1 1
RM’000
RM’000
37,343
37,488
1,301
426
(3,248)
(2,315)
Expected return on plan assets
2,370
2,577
Actuarial (losses)/gains
1,168
(833)
38,934
37,343
Benefits paid by the plan
Fair value of plan assets at 31 December
Annual Report 2012
RM’000
Citibank berhad
20 1 1
Notes To The Financial Statements
Group and Bank
20 1 2
063
i.
19. Employee benefits (continued)
i.
Retirement benefits (continued)
The amounts recognised in the statements of comprehensive income are as follows:
Group and Bank
Current service costs
Interest cost
Notes To The Financial Statements
Expected return on plan assets
20 1 2
2011
RM’000
RM’000
1,515
1,706
1,559
1,764
(2,370)
(2,577)
Cost of settlement
202
-
Prior service costs
8
9
Amount included under “personnel costs”
1,061
755
Actual return on plan assets
3,538
1,745
Movement in the net liability recognised in the statements of financial position are as follows:
Group and Bank
Opening net liability as at 1 January
Recommended expenses as above
Contributions paid
Prior year contributions
20 1 2
2011
RM’000
RM’000
701
372
1,061
755
(1,301)
(426)
(191)
-
270
701
The latest valuation of the Defined Benefit Plan as at 31 December 2012 was conducted by Towers Watson
(Malaysia) Sdn. Bhd.. The unfunded portion of the total liability will continue to be borne by Citibank Berhad.
Projected unit credit method is used to calculate the actuarial present value of promised retirement benefits.
Principal actuarial assumptions used at the reporting date (expressed as weighted averages):
064
Citibank berhad
Annual Report 2012
Group and Bank
Discount rate
20 1 2
2011
4.25%
5.00%
Rate of increase in salary levels
6.00%
7.00%
Expected long-term rate of return on plan assets
6.50%
6.50%
Price inflation
3.50%
3.50%
Assumptions regarding future mortality are based on published statistics and mortality tables. The average
life expectancy of an individual retiring is at the age of 55 years.
The overall expected long-term rate of return on assets is 6.5% per annum. The expected long-term rate of
return is based on the portfolio as a whole and not on the sum of the returns on individual asset categories.
The return is based exclusively on historical returns, without adjustments.
19. Employee benefits (continued)
i.
Retirement benefits (continued)
20 1 0
20 0 9
2008
RM’000
RM’000
RM’000
RM’000
RM’000
31,391
35,439
34,633
34,093
26,926
(38,934)
(37,343)
(37,488)
(25,972)
(18,991)
(Surplus)/Deficit in the plan
(7,543)
(1,904)
(2,855)
8,121
7,935
Experience adjustments
arising on plan assets
- (gains)/losses
(1,168)
833
(9,602)
(2,127)
2,774
Experience adjustments
arising on plan liabilities
- (gains)/losses
(2,866)
(686)
(1,342)
4,850
36
Assumption adjustment on
plan liabilities – (gains)/losses
(1,155)
484
508
566
1,262
Present value of the defined
benefit obligation
Fair value of plan assets
The Group and the Bank’s expected contribution to be paid to the funded defined benefit plan in year 2013 is
approximately RM865,000.
ii. Share option plan
The Group and the Bank have a number of stock option programmes for its officers and employees as part of a
discretionary award package. Options are granted on Citigroup Inc.’s stock at the market value denominated in
US dollar at the time of grant. Option granted in October 2009 has a six years term and will vest 33% each year
over a three years period, provided the staff remains continuously employed in the Group and the Bank.
Group and Bank
Outstanding at 1 January
20 1 2
2011
661,935
677,773
Granted
-
-
Exercised
-
(393)
Transfer in
55,874
21,388
Lapsed/Cancelled
(33,979)
(36,833)
Outstanding at 31 December
683,830
661,935
Annual Report 2012
20 1 1
Citibank berhad
20 1 2
065
Group and Bank
Notes To The Financial Statements
Historical information
19. Employee benefits (continued)
ii.
Share option plan (continued)
Details of share options granted during the year:
Group and Bank
20 1 2
2011
Expiry dates
-
-
Average grant price per ordinary share (RM)
-
-
Aggregated proceeds if shares are issued (RM’000)
-
-
-
2014
Details of share options exercised during the year:
066
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Year of expiry
Average exercise price per ordinary share (RM)
-
12.97
Aggregated issue proceeds (RM’000)
-
5
Fair value at date of vesting (RM’000)
-
2,399
Terms of the options outstanding at 31 December:
Group and Bank
20 1 2
2011
Expiry dates
Jan 2012
Exercise price
RM 155.47
-
415
Feb 2012
RM 133.82
-
26,980
Feb 2012
RM 144.33
-
1,839
Aug 2012
RM 107.74
-
750
Jan
2013
RM 172.82
-
635
Jan
2013
RM 166.35
635
-
Jan
2014
RM
77.70
-
11,188
Jan
2014
RM
74.79
11,188
-
Oct 2015
RM
12.97
-
620,128
Oct 2015
RM
12.48
672,007
-
683,830
661,935
iii. Share capital accumulation plan (CAP)
The Group and the Bank have a number of capital accumulation programmes for its officers and employees. The
Core CAP is a discretionary award of restricted shares. The number of CAP shares in a Core CAP award is
calculated using a 25% discount from the market price of Citigroup common stock. Supplemental CAP is a
discretionary retention award programme composed of an award of CAP shares. The difference between
Supplemental CAP award and a Core CAP award is that generally, a Supplementary CAP is given in addition to the
discretionary award package and the number of shares awarded will not be based on a discount from the market
price of Citigroup common stock. CAP granted in 2012 typically vest 25% each year for four years, with the first
vesting date occurring 12 months after the grant date. Shares acquired upon exercise of a CAP option generally
may not be sold for two years following the exercise date.
19. Employee benefits (continued)
iii. Share capital accumulation plan (CAP) (continued)
Group and Bank
20 1 2
20 1 1
485,525
606,369
Granted
416,375
297,605
Vested
(24,950)
20,438
Outstanding at 1 January
Lapsed/cancelled
Net transferred out
Outstanding at 31 December
(269,016)
(220,324)
(354)
(218,563)
607,580
485,525
Details of CAP granted during the year:
9.34
15.95
3,889
4,748
8.93
25.02
Aggregated issue proceeds (RM’000)
4,355
6,171
Fair value at date of vesting (RM’000)
1,695
2,745
Aggregated proceeds if shares are issued (RM’000)
Details of CAP vested during the year:
Average exercise price per ordinary share (RM)
Terms of the CAP outstanding at 31 December:
Group and Bank
20 1 2
20 1 1
RM 62.76
-
19,602
RM 83.68
-
7,004
Year of expiry
Grant price
Jan 2012
Jan 2012
Oct 2012
RM 47.96
-
497
Jan 2013
RM 14.85
-
94,804
Jan 2013
RM 14.29
35,232
-
Jan 2014
RM 11.17
-
140,932
Jan 2014
RM 10.76
61,905
-
Jan 2015
RM 15.95
-
222,686
Jan 2015
RM 15.36
131,856
-
Jan 2015
RM
9.34
104,795
-
Jan 2016
RM
9.34
273,792
-
607,580
485,525
Annual Report 2012
Jan 17, 2015
Citibank berhad
Average grant price per ordinary share (RM)
Jan 16, 2016
067
Expiry dates
20 1 1
Notes To The Financial Statements
Group and Bank
20 1 2
20. Interest income
Group and Bank
20 1 2
2011
RM’000
RM’000
1,168,629
1,216,577
Loans and advances
- Interest income other than recoveries from impaired loans
- Recoveries from impaired loans
Money at call and deposit placements with financial institutions
068
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Financial assets held-for-trading
53,571
45,277
197,510
247,359
48,848
50,702
Financial investments available-for-sale
97,967
84,187
Securities purchased under resale agreements
29,357
28,367
1,595,882
1,672,469
Accretion of discount
73,193
40,081
Total interest income
1,669,075
1,712,550
21. Interest expense
Group and Bank
Deposits and placements of banks and other financial institutions
Deposits from customers
Others
20 1 2
2011
RM’000
RM’000
29,567
31,535
478,274
453,295
3,740
4,975
511,581
489,805
22. Other operating income
Group and Bank
20 1 2
20 1 1
RM’000
RM’000
145,628
138,542
15,568
15,202
6,775
6,698
Fee income:
Commission
Service charges and fees
Guarantee fees
Bankcard fees
221,601
167,817
Insurance premium and referral
28,105
19,578
Other fee income
46,753
36,995
464,430
384,832
41
977
7,052
27,571
19,447
7,332
28
28
26,568
35,908
112,462
161,915
Trading income:
Unrealised gain from revaluation of financial
assets held-for-trading
Foreign exchange profit
- unrealised gain
- realised gain
31,552
30,393
Gain from derivatives
14,954
18,099
(392)
(1,022)
158,576
209,385
649,574
630,125
Loss on disposal of plant and equipment
Annual Report 2012
Other income:
Citibank berhad
- Financial investments available-for-sale
Gross dividends from financial investments available-for-sale
069
- Financial assets held-for-trading
Notes To The Financial Statements
Net gain from sales of securities
23. Other operating expenses
Group and Bank
20 1 2
2011
RM’000
RM’000
334,821
323,600
42,291
37,592
- Staff benefits and other compensations
42,654
41,300
- Others
10,925
6,927
430,691
409,419
- Depreciation
36,534
35,713
- Rental of premises
24,171
21,526
- Hire of equipments
4,120
2,603
Personnel costs
- Salaries, allowances and bonuses
- Contributions to Employees Provident Fund
070
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Establishment costs
- Utilities
6,334
6,677
- Others
17,793
18,436
88,952
84,955
47,077
44,560
1,327
1,518
48,404
46,078
250,907
179,803
361
346
Marketing expenses
- Advertisement and promotional expenses
- Others
Administrative and general expenses
- Processing cost
- Auditors’ remuneration
- Statutory audit
- Other services
263
191
4,810
6,748
- Communication expenses
6,948
16,055
- Maintenance of office equipment
3,694
4,385
99,068
139,866
366,051
347,394
934,098
887,846
- Stationeries and supplies
- Others
Total other operating expenses
23. Other operating expenses (continued)
Group and Bank
20 1 2
20 1 1
RM’000
RM’000
2,011
2,314
1,032
971
i. CEO and Directors’ remuneration
Executive Directors (including CEO)
Salary and other remuneration, including meeting allowances
Bonuses
Benefits-in-kind
430
392
Share-based payment
(29)
830
232
300
3,676
4,807
2,902
3,144
Non-executive Directors Fees
Fees
RM’000
RM’000
Total
RM’000
RM’000
RM’000
2,011
-
1,032
430
3,473
Jonathan Christian Larsen
-
-
-
-
-
Tan Sri Dato’ Hj Omar Ibrahim
-
100
-
-
100
-
100
-
-
100
Agnes Liew Yun Chong
-
-
-
-
-
Terence Kent Cuddyre
-
-
-
-
-
-
32
-
-
32
2,011
232
1,032
430
3,705
Executive Directors and CEO
Sanjeev Nanavati
Non-executive Directors
Dato’ Siow Kim Lun @
Siow Kim Lin
Dato’ Dr. Thillainathan A/L
Ramasamy
Annual Report 2012
Bonuses
Benefitsinkind
Citibank berhad
Salary
and others
remunerations
071
- short-term employee benefits
Notes To The Financial Statements
ii. Other key management personnel:
24. Allowance for loans, advances and financing
Group and Bank
20 1 2
2011
RM’000
RM’000
10,957
16,888
(19,777)
(19,418)
(8,261)
(4,032)
- written back
(90,145)
(79,678)
- written off
230,064
230,981
122,838
144,741
Allowance for loans, advances and financing:
Individual assessment
- allowance made during the year
- written back
Collective assessment
- written back
Notes To The Financial Statements
Impaired loans, advances and financing
25. Tax expense
Group and Bank
20 1 2
2011
RM’000
RM’000
204,436
220,302
20,293
(108,536)
224,729
111,766
- Origination and reversal of temporary differences
(5,999)
(13,956)
- Prior year (over)/under provision
(7,760)
67,520
210,970
165,330
Malaysian income tax
- current year
- prior year under/(over) provision
Deferred tax expense
Citibank berhad
Annual Report 2012
A reconciliation of the income tax expense between the statutory tax expense and effective tax expense is as follows:Group and Bank
20 1 2
2011
RM’000
RM’000
Profit before taxation
789,577
857,363
Income tax using Malaysian tax rate of 25%
197,394
214,341
Non-deductible expenses
Others
072
Under/(Over) provision in prior year
1,043
431
-
(8,426)
198,437
206,346
12,533
(41,016)
210,970
165,330
26. Earnings per share
The earnings per ordinary share has been calculated based on the profit for the year of RM578,607,000
(20 11 - RM692,033,000) divided by 121,696,972 units of ordinary shares of RM 1 each issued as at the
financial years ended.
27. Dividends
Sen
per share
(net of tax)
Total
amount
RM’000
Date of
payment
20 1 2
Final 20 11 ordinary
247
300,000
13 June 2012
20 1 1
Final 20 10 ordinary
247
300,000
28 June 2011
After the reporting period, the following dividend was proposed by the Directors. This dividend will be
recognised in subsequent financial period upon approval by the equity holder of the Bank.
Final ordinary - 31 December 2012
Sen
per share
(net of tax)
Total
amount
RM’000
411
500,000
28. Significant related party transactions and balances
For the purpose of these financial statements, parties are considered to be related to the Group or the Bank
if the Group or the Bank has the ability, directly or indirectly, to control the party or exercise significant
influence over the party in making financial and operating decisions, or vice versa, or where the Group or
the Bank and the party are subject to common control or common significant influence. Related parties
may be individuals or other entities.
The related parties of the Group and the Bank are:
(ii)
Other related companies
Entities which are related by virtue of having Citigroup Holdings (Singapore) Pte. Ltd. or Citibank
Overseas Investment Corporation as the holding companies or having Citigroup Inc. as the ultimate
holding company.
(iii) Key management personnel
Key management personnel are defined as those persons having authority and responsibility for
planning, directing and controlling the activities of the Group or the Bank either directly or indirectly.
The key management personnel of the Group or the Bank includes all the Directors and certain
members of senior management of the Group or the Bank. Key management personnel compensation
is disclosed in Note 23.
Citibank berhad
Parent companies of the Group and the Bank are Citigroup Holdings (Singapore) Pte. Ltd. and
Citigroup Inc.
Annual Report 2012
Parent companies
073
(i)
Notes To The Financial Statements
Dividends recognised by the Bank are:
28. Significant related party transactions and balances (continued)
Transactions and balances with parent companies and other related companies
Group and Bank
Group and Bank
20 1 2
20 1 1
RM’000
RM’000
RM’000
RM’000
Parent
companies
Other related
companies
Parent
companies
Other related
companies
19,591
13,530
66,901
49,251
5,314
115,170
24,042
348,784
24,905
128,700
90,943
398,035
-
7,587
-
27,803
14,044
207,587
14,309
559,225
14,044
215,174
14,309
587,028
Interest bearing deposits
-
1,888,117
-
7,542,592
Current account balances
8,315
317,517
-
1,522,230
33,650
121,069
124,982
1,059,365
41,965
2,326,703
124,982
10,124,187
Interest bearing deposits
-
6,257
-
7,531,210
Current account balances
39,905
117,600
147,870
248,537
Other balances
31,965
931,205
134,169
250,231
71,870
1,055,062
282,039
8,029,978
Income
Interest on interest bearing deposits
Other income
Expenditure
Interest on interest bearing deposits
074
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Other expenses
Amount due from
Other balances
Amount due to
All related party transactions are conducted at arm’s length basis and on normal commercial terms which are not
more favourable than those generally available to public.
29. Credit transactions and exposures with connected parties
Group and Bank
20 1 2
20 1 1
RM’000
RM’000
1,643,454
2,438,114
-
-
65,626,933
68,594,284
2.50%
3.55%
36.65%
57.25%
0.00%
0.00%
Outstanding credit exposures with connected
parties of which:
Total credit exposure which is non-performing
or in default
Total credit exposures
Percentage of outstanding credit exposures to
The disclosure on Credit Transactions and Exposures with Connected Parties above are presented in accordance
with para 9.1 of Bank Negara Malaysia’s revised Guidelines on Credit Transactions and Exposures with
Connected Parties, which became effective on 1 January 2008.
Based on these guidelines, a connected party refers to the following:
i.
Directors of the Bank and their close relatives;
ii.
Controlling shareholder and his close relatives;
iii.
Executive Officer, being a member of management having authority and responsibility for planning,
directing and/or controlling the activities of the Bank, and his close relatives;
iv.
Officers who are responsible for or have the authority to appraise and/or approve credit transactions or
review the status of existing credit transactions, either as a member of a committee or individually, and
their close relatives;
v.
Firms, partnerships, companies or any legal entities which control, or are controlled by any person listed
in (i) to (iv) above, or in which they have an interest, as a director, partner, executive officer, agent or
guarantor, and their subsidiaries or entities controlled by them;
vi.
Any person for whom the persons listed in (i) to (iv) above is a guarantor; and
vii.
Subsidiary of or an entity controlled by the Bank and its connected parties.
Credit transactions and exposures to connected parties as disclosed above include the extension of credit facilities
and/or off-balance sheet credit exposures such as guarantees, trade-related facilities and loan commitments. They
also include holdings of equities and private debt securities issued by the connected parties.
The credit transactions with connected parties above are all transacted on an arm’s length basis and on terms and
conditions no more favourable than those entered into with other counterparties with similar circumstances and
creditworthiness. Due care has been taken to ensure that the creditworthiness of the connected party is not less
than that normally required of other persons.
Annual Report 2012
- which is non-performing or in default
Citibank berhad
- as a proportion of capital base
075
- as a proportion of total credit exposures
Notes To The Financial Statements
connected parties
30. Derivative financial instruments
2012
Positive Negative
2011
2010
Positive Negative
Positive Negative
Contract
fair
fair
Contract
fair
fair
Contract
fair
fair
amount
value
value
amount
value
value
amount
value
value
RM’000
RM’000
RM’000
RM’000
RM’000 RM’000
RM’000
RM’000
RM’000
43,496,302
68,211
98,562
44,501,232
202,448
96,410
44,990,550
264,681
310,204
- Cross currency
interest rate swaps
5,946,434
176,445
175,376
5,212,667
294,397
294,535
6,948,760
423,054
311,223
- Options
2,093,720
5,099
5,021
2,034,702
9,026
2,956
703,871
3,205
3,213
- Futures
1,445,000
-
-
3,915,000
-
-
7,384,086
-
-
- Swaps
Foreign exchange
related contracts:
- Forwards
076
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Interest rate contracts:
22,806,028
212,748
231,305
22,286,981
298,967
351,462
28,199,721
281,970
372,410
- Options
454,262
45
1,308
474,793
397
2,494
1,082,406
2,026
5,275
Equity related
contracts
212,919
5,604
5,604
178,235
7,893
7,893
1,321,876
14,927
14,956
Others
274,330
3,940
11,501
785,672
7,519
14,200
731,077
17,377
26,839
76,728,995
472,092
528,677
79,389,282
820,647
769,950
Note 9
Note 16
Note 9
Note 16
91,362,347 1,007,240 1,044,120
Note 9
Note 16
31. Financial risk management
The Group’s and the Bank’s risk management framework are designed to monitor, evaluate and manage the
principal risk they assume in conducting its activities. These risks include the following:
•
credit risk
•
market risk
•
operational risk
1.
Credit Risk
The Group and the Bank secure various forms of collateral to mitigate credit risk exposures.
The main types of collateral obtained by the Group and the Bank to mitigate credit risk are as follows:
o
for residential mortgages - charges over residential properties
o
for commercial property loans - charges over the properties being financed
o
for share margin financing - pledges over quoted securities
o
for other loans - charges over business assets such as premises, inventories, trade receivables or deposits
Annual Report 2012
Continuous monitoring of credit behaviour aided by sophisticated scoring modules, plus portfolio delinquency
performance allows independent credit risk management to constantly assess the health of the credit
portfolio.
Citibank berhad
Independent credit risk management is also responsible for implementing portfolio limits, including obligor
limits through risk rating, maturity and business segments limits to ensure diversification of portfolios,
monitoring business risk management performance, providing on-going assessment of portfolio credit risk
and approving new products.
077
The credit risk management process of the Group and the Bank relies on corporate-wide standards to ensure
consistency and integrity, with business-specific policies and practices to ensure applicability and ownership.
While business managers and independent risk management are jointly responsible for managing risk/return
trade offs as well as establishing limits and risk management practices, the origination and approval roles are
clearly defined and segregated. In addition to conforming to established corporate standards, independent
credit risk management is responsible for establishing policies that comply with local regulations and any
other relevant legal requirements.
Notes To The Financial Statements
Credit risk is the potential for financial loss resulting from the failure of a borrower or counterparty to honour
its financial or contractual obligations. Credit arises in lending, trading, and derivatives transactions,
securities transactions, settlement and when the Group or the Bank acts as an intermediary on behalf of its
clients and other third parties.
31. Financial risk management (continued)
A.
Credit risk exposures and credit risk concentration
The following tables present the Group’s maximum exposure to credit risk of its on and off balance sheet
financial instruments at each reporting dates, by industry and geographical anaylsis, before taking into
account collateral held or other credit enhancements.
i.
By Industry analysis
Group
2012
Financial
Services,
Wholesale
Government
Insurance,
Electricity,
& Retail
and
House- Real Estate
Gas &
Trade,
Transport,
Social &
Central
hold & Business Services, Mining &
Water
Restaurants Storage & Community Other
Banks
Loans Services Agriculture Quarrying Manufacturing Supply Construction & Hotels Communication Services Sectors
RM’000
RM’000
RM’000
RM’000
2,845,000
-
7,448,235
-
-
-
296,775
RM’000
Total
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000 RM’000 RM’000
-
-
-
-
-
-
-
- 10,293,235
-
-
-
-
-
-
-
-
-
296,775
On-Balance Sheet
Notes To The Financial Statements
Cash and short term funds
Deposits and placements
with bank and other
financial institutions
Securities purchased under
resale agreements
743,921
-
-
-
-
-
-
-
-
-
-
-
743,921
Financial assets heldfor-trading
3,045,057
-
-
-
-
-
-
-
-
-
-
-
3,045,057
Financial investments
available-for-sale
3,391,937
-
-
-
-
-
-
-
-
-
-
7,499
3,399,436
Loans, advances
and financing
- 15,869,348
639,076
93,268
32,050
1,705,728
84,073
43,163
758,725
307,544
9,862
Other assets
-
-
660,749
2,246
-
3,142
1,002
20
9,330
4,306
56
152,075
832,926
438,840
-
-
-
-
-
-
-
-
-
-
-
438,840
10,464,755 15,869,348
9,044,835
95,514
32,050
1,708,870
85,075
43,183
768,055
311,850
9,918
Statutory deposits with
Bank Negara Malaysia
Annual Report 2012
Citibank berhad
455,764 38,889,217
Contingent liabilities
-
-
2,691,936
-
-
-
-
-
-
-
-
-
Commitments
- 23,454,557
1,668,806
-
-
-
-
-
-
-
-
- 25,123,363
10,464,755 39,323,905 13,405,577
95,514
32,050
1,708,870
85,075
43,183
768,055
311,850
9,918
455,764 66,704,516
Total Credit Exposures
078
296,190 19,839,027
2,691,936
31. Financial risk management (continued)
Credit risk exposures and credit risk concentration (continued)
i.
By Industry analysis (continued)
Group
2011
Financial
Services,
Wholesale
Government
Insurance,
Electricity,
& Retail
and
House- Real Estate
Gas &
Trade,
Transport,
Social &
Central
hold & Business Services, Mining &
Water
Restaurants Storage & Community Other
Banks
Loans Services Agriculture Quarrying Manufacturing Supply Construction & Hotels Communication Services Sectors
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
2,141,000
-
9,827,440
-
-
-
-
-
1,516,673
-
-
Securities purchased under
resale agreements
1,218,993
-
-
-
Financial assets heldfor-trading
2,336,849
-
-
Financial investments
available-for-sale
5,218,009
-
Loans, advances
and financing
-
Other assets
RM’000
Total
RM’000
RM’000
RM’000
RM’000 RM’000 RM’000
-
-
-
-
-
-
11,968,440
-
-
-
-
-
-
-
1,516,673
-
-
-
-
-
-
-
-
1,218,993
-
-
-
-
-
-
-
-
-
2,336,849
-
-
-
-
-
-
-
-
-
7,499
5,225,508
15,958,135
800,246
105,178
18,991
2,409,915
86,890
45,704
921,932
301,573
16,160
277,364
20,942,088
-
-
947,626
10,816
747
67,562
835
20
14,143
5,997
-
258,242
1,305,988
398,080
-
-
-
-
-
-
-
-
-
-
-
398,080
11,312,931
15,958,135
13,091,985
115,994
19,738
2,477,477
87,725
45,724
936,075
307,570
16,160
543,105
44,912,619
Contingent liabilities
-
-
2,267,554
-
-
-
-
-
-
-
-
-
2,267,554
Commitments
-
21,974,557
2,822,702
-
-
-
-
-
-
-
-
-
24,797,259
11,312,931
37,932,692
18,182,241
115,994
19,738
2,477,477
87,725
45,724
936,075
307,570
16,160
543,105
71,977,432
Statutory deposits with
Bank Negara Malaysia
Total Credit Exposures
Annual Report 2012
Deposits and placements
with bank and other
financial institutions
Citibank berhad
Cash and short term funds
Notes To The Financial Statements
On-Balance Sheet
079
A.
31. Financial risk management (continued)
A.
Credit risk exposures and credit risk concentration (continued)
i.
By Industry analysis (continued)
Group
2010
Financial
Services,
Wholesale
Government
Insurance,
Electricity,
& Retail
and
House- Real Estate
Gas &
Trade,
Transport,
Social &
Central
hold & Business Services, Mining &
Water
Restaurants Storage & Community Other
Banks
Loans Services Agriculture Quarrying Manufacturing Supply Construction & Hotels Communication Services Sectors
RM’000
RM’000
RM’000
RM’000
4,576,600
-
5,904,433
-
-
-
811,660
404,417
-
Financial assets heldfor-trading
1,837,369
Financial investments
available-for-sale
RM’000
Total
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000 RM’000 RM’000
-
-
-
-
-
-
-
-
10,481,033
-
-
-
-
-
-
-
-
-
811,660
-
-
-
-
-
-
-
-
-
-
404,417
-
-
-
-
-
10,094
-
5,000
-
-
-
1,852,463
On-Balance Sheet
Cash and short term funds
Deposits and placements
with bank and other
financial institutions
080
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Securities purchased under
resale agreements
3,097,989
-
-
-
-
-
-
-
-
-
-
7,499
3,105,488
Loans, advances
and financing
-
16,365,585
512,027
35,022
7,708
1,710,721
32,295
46,104
841,024
137,600
19,933
371,754
20,079,773
Other assets
-
-
624,296
1,802
2,042
87,222
173
21
13,637
17,822
3
570,698
1,317,716
9,916,375
16,365,585
7,852,416
36,824
9,750
1,797,943
42,562
46,125
859,661
155,422
19,936
949,951
38,052,550
Contingent liabilities
Commitments
Total Credit Exposures
617
-
2,307,478
-
-
-
-
-
1,114
-
-
-
2,309,209
-
21,912,163
1,632,020
-
-
-
-
-
-
-
-
-
23,544,183
9,916,992
38,277,748
11,791,914
36,824
9,750
1,797,943
42,562
46,125
860,775
155,422
19,936
949,951
63,905,942
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents deposited by the
subsidiaries which were eliminated in the above tables.
31. Financial risk management (continued)
Credit risk exposures and credit risk concentration (continued)
By Geographical analysis
Group
Malaysia
Hong Kong &
Singapore China PRC Japan
Australasia
North
America
2012
RM’000
RM’000
RM’000
5,014,113
4,270,060
4,419
United
Other
Kingdom countries
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
72,291
36,979
40,832
410,781
422,321
25,858
10,293,235
139,406
-
152,950
-
-
-
-
296,775
743,921
-
-
-
-
-
-
-
743,921
Financial assets heldfor-trading
3,045,057
-
-
-
-
-
-
-
3,045,057
Financial investments
available-for-sale
3,399,436
-
-
-
-
-
-
-
3,399,436
Loans, advances and
financing
19,839,027
-
-
-
-
-
-
-
19,839,027
Other assets
462,705
775
19,010
4,735
-
243,740
101,961
-
832,926
Statutory deposits with
Bank Negara Malaysia
438,840
-
-
-
-
-
-
-
438,840
32,947,518
4,410,241
91,301
194,664
40,832
654,521
524,282
25,858
38,889,217
2,152,869
22,092
224,288
-
1,598
60,242
63,577
167,271
2,691,937
Commitments
25,123,363
-
-
-
-
-
-
-
25,123,363
Total Credit Exposures
60,223,750
4,432,333
315,589
194,664
42,430
714,763
587,859
193,129
66,704,517
Total
Deposits and placements
with banks and other
financial institutions
Securities purchased
under resale agreements
Contingent liabilities
Annual Report 2012
Cash and short term funds
Notes To The Financial Statements
On-Balance Sheet
Citibank berhad
ii.
081
A.
31. Financial risk management (continued)
A.
Credit risk exposures and credit risk concentration (continued)
ii.
By Geographical analysis (continued)
Group
Malaysia
Hong Kong &
Singapore China PRC Japan
Australasia
North
America
2011
RM’000
RM’000
RM’000
5,232,143
3,902,079
1,251,495
United
Other
Kingdom countries
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
144,827
6,436
12,527
702,090
444,941 1,523,397
11,968,440
106,278
-
158,900
-
-
-
-
1,516,673
1,218,993
-
-
-
-
-
-
-
1,218,993
2,336,849
-
-
-
-
-
-
-
2,336,849
5,225,508
-
-
-
-
-
-
-
5,225,508
20,942,088
-
-
-
-
-
-
-
20,942,088
758,559
14,533
681
4,904
1,520
126,964
240,823
158,004
1,305,988
398,080
-
-
-
-
-
-
-
398,080
37,363,715
4,022,890
145,508
170,240
14,047
829,054
685,764 1,681,401
44,912,619
1,627,769
19,180
469,849
-
1,624
63,232
36,688
49,212
2,267,554
Commitments
24,797,259
-
-
-
-
-
-
-
24,797,259
Total Credit Exposures
63,788,743
4,042,070
615,357
170,240
15,671
892,286
722,452 1,730,613
71,977,432
Total
On-Balance Sheet
Cash and short term funds
Deposits and placements
with banks and other
financial institutions
Securities purchased
082
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
under resale agreements
Financial assets heldfor-trading
Financial investments
available-for-sale
Loans, advances and
financing
Other assets
Statutory deposits with
Bank Negara Malaysia
Contingent liabilities
31. Financial risk management (continued)
Credit risk exposures and credit risk concentration (continued)
By Geographical analysis (continued)
Group
Malaysia
Hong Kong &
Singapore China PRC Japan
Australasia
North
America
United
Other
Kingdom countries
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
6,884,986
3,113,155
8,654
48,309
61,220
13,639
76,082
274,988
10,481,033
495,159
162,326
-
154,175
-
-
-
-
811,660
404,417
-
-
-
-
-
-
-
404,417
1,847,463
-
-
5,000
-
-
-
-
1,852,463
available-for-sale
2,974,380
-
-
-
-
131,108
-
-
3,105,488
Loans, advances and
financing
20,079,773
-
-
-
-
-
-
-
20,079,773
792,847
12,958
277
20,162
513
126,856
208,795
155,308
1,317,716
33,479,025
3,288,439
8,931
227,646
61,733
271,603
284,877
430,296
38,052,550
1,742,225
29,560
285,447
-
2,653
67,602
33,459
148,263
2,309,209
Commitments
23,544,183
-
-
-
-
-
-
-
23,544,183
Total Credit Exposures
58,765,433
3,317,999
294,378
227,646
64,386
339,205
318,336
578,559
63,905,942
Total
On-Balance Sheet
Cash and short term funds
Deposits and placements
with banks and other
financial institutions
under resale agreements
Financial assets heldfor-trading
Financial investments
Other assets
Contingent liabilities
Notes To The Financial Statements
Securities purchased
Annual Report 2012
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents being
deposited by the subsidiaries were eliminated in the above tables.
Citibank berhad
ii.
083
A.
31. Financial risk management (continued)
B.
Deposits and placements with banks and other financial institutions
i.
Deposits and placements with banks and other financial institutions analysis by credit rating
Group and Bank
AAA
084
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
AA to AA-
ii.
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
-
320,000
300,000
-
-
100,000
A+ to A-
296,775
1,196,673
316,501
Unrated
-
-
95,159
296,775
1,516,673
811,660
Deposits and placements with banks and other financial institutions analysis by geographical location
where the credit risk of issuers reside, regardless of where the assets are booked, is as follows:
Group and Bank
Malaysia
Other
C.
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
4,419
1,251,495
495,159
292,356
265,178
316,501
296,775
1,516,673
811,660
Other securities
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Financial assets held-for-trading
3,045,057
2,336,849
1,852,463
Financial investments available-for-sale
3,399,436
5,225,508
3,105,488
6,444,493
7,562,357
4,957,951
31. Financial risk management (continued)
Other securities (continued)
i.
Other securities analysis by credit rating
At the reporting date, the credit quality of investment in other securities by designation of an
external credit assessment institution is as follows:-
RM’000
RM’000
RM’000
6,500
6,500
11,500
A+ to A-
3,297,538
4,427,380
4,804,249
Unrated
3,140,455
3,128,477
142,202
6,444,493
7,562,357
4,957,951
AAA
ii.
Other securities analysis by geographical location where the credit risk of issuers reside,
regardless of where the assets are booked, is as follows:
Group and Bank
Malaysia
Other
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
6,444,493
7,562,357
4,821,844
-
-
136,107
6,444,493
7,562,357
4,957,951
Annual Report 2012
1.1.2011
Citibank berhad
31.12.2011
Notes To The Financial Statements
Group and Bank
31.12.2012
085
C.
31. Financial risk management (continued)
D.
Credit quality of Loans, advances and financing
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
17,429,100
18,703,942
17,498,596
1,928,073
1,719,346
2,040,363
481,854
518,800
540,814
Loans, advances and financing
- neither past due nor impaired
- past due but not impaired
- impaired
Gross amount
19,839,027
20,942,088
20,079,773
Individual assessment allowance
(205,769)
(219,436)
(229,542)
Collective assessment allowance
(357,064)
(365,325)
(369,357)
19,276,194
20,357,327
19,480,874
086
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Carrying amount
Neither past due nor impaired
Included in the total loans, advances and financing of neither past due nor impaired are renegotiated
loans. The analysis below represents the carrying amount of loans that would otherwise be past due or
impaired if their terms had not been renegotiated. These renegotiated loans are considered neither past
due nor impaired after they have been monitored as impaired loans until a minimum number of payments
have been received under the new terms.
Group and Bank
Renegotiated loans
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
790,739
876,855
846,099
Past due but not impaired
Analysis of loans, advances and financing to customers that are past due but not impaired analysed based
on aging are as follows:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
1,434,140
1,228,861
1,419,750
30 - 59 dpd
356,567
331,993
437,370
60 - 89 dpd
137,366
158,492
183,243
1 - 29 dpd
90 - 119 dpd
-
-
-
120 - 180 dpd
-
-
-
>180 dpd
-
-
-
1,928,073
1,719,346
2,040,363
31. Financial risk management (continued)
Credit quality of Loans, advances and financing (continued)
Impaired
Loans and advances are classified as impaired when they meet one of the following criteria:
i.
principal or interest or both are past due for three (3) months or more;
ii.
where there is an individual impairment provision on the loan;
iii.
impaired loans that have been rescheduled or restructured that have not met the continuous
repayment behavior based on the revised rescheduled and/or restructured terms over the
observation period.
Loans and advances to customers that are individually impaired analysed by age are as follows:
1.1.2011
RM’000
RM’000
Current
28,676
10,957
15,786
1 - 29 dpd
11,820
8,319
13,959
30 - 59 dpd
27,948
12,305
12,688
60 - 89 dpd
30,907
31,738
34,317
90 - 119 dpd
120 - 180 dpd
>180 dpd
64,577
74,426
57,572
104,157
104,047
118,518
213,769
277,008
287,974
481,854
518,800
540,814
Estimated value of collaterals against past due but not impaired and impaired loans are RM709,848,000
(2011 - RM766,045,000).
Annual Report 2012
31.12.2011
RM’000
Citibank berhad
31.12.2012
Notes To The Financial Statements
Group and Bank
087
D.
31. Financial risk management (continued)
2.
Market Risk
Market risk encompasses price risk and liquidity risk, both arising in the normal course of business operations
of the Group and the Bank. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters while optimising the return on risk.
Market risk in the Group and the Bank are managed through corporate-wide standards and business-specific
policies and procedures with the help of responsible personnel and committees delegated by the Board of
Directors such as the Risk Management Committee, Asset and Liability Committee and Market Risk
Management. The business is required to establish risk measures, limits and controls, clearly defining approved
risk profiles within the parameters of the Group’s and the Bank’s overall risk appetite and for operating within
the established market risk limit framework. Independent market risk management establishes policies and
procedures, approves limits and monitors exposures against limits.
088
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Price Risk
Price risk is the risk associated to earnings arising from changes in interest rate, foreign exchange rates, equity
and commodity prices and in their implied volatilities. Price risk arises in non-trading as well as trading
portfolios. Price risk in non-trading portfolio is measured predominantly through earnings-at-risk and factor
sensitivities supplemented with additional tools such as stress testing and cost-to-close analysis. Price risk in
trading portfolios is measured through tools such as factor sensitivities, value-at-risk and stress testing.
Interest rate risk primarily results from the timing differences in the repricing of interest bearing assets,
liabilities and commitments. It is also related to positions from non-interest bearing liabilities including
shareholders’ funds and current accounts, as well as from certain fixed rate loans and liabilities.
The Group and the Bank are exposed to such risks associated with the effects of the fluctuations in the
prevailing market interest rates on its financial positions and cash flows.
Factor sensitivities are expressed as the change in the value of a position for a defined change in a market risk
factor. For the sensitivity analysis provided in this section, the Group and the Bank have used a 100 basis points
movement for interest rates and a 6% movement in foreign exchange rates to measure the impact of these
market risk movements on the Group and the Bank.
Interest rate risk – Sensitivity analysis
At 31 December 2012, it is estimated that a general increase of 100 basis points in interest rate, with all other
variables held constant, would decrease the Group’s and the Bank’s profit before tax by approximately
RM64,554,000 whereas a general decrease of 100 basis points in interest rate, with all other variables held
constant, would have an equal but opposite effect.
The sensitivity analysis above has been determined assuming that the change in interest rates had occurred at the
reporting date and had been applied to the exposure to interest rate risk for both derivative and non-derivative
financial instruments in existence at that date and that all other variables, in particular foreign exchange rates,
remain constant. The above basis point increase or decrease represents management’s assessment of a
reasonably possible change in interest rates over the period until the next annual reporting date.
Foreign currency risk – Sensitivity analysis
As at 31 December 2012, it is estimated that a movement of 6% in Ringgit Malaysia (RM) against foreign
currencies, with all other variables held constant, would result in maximum loss of approximately
RM6,658,000.
The sensitivity analysis has been determined assuming that the change in foreign exchange rates had occurred
at the reporting date and had been applied to the Group’s and the Bank’s exposure to currency risk for both
derivative and non-derivative financial instruments in existence at that date, and that all other variables, in
particular interest rate, remains constant. The sensitivity analysis includes balances where the denomination
of the balances is in a currency other than the Ringgit Malaysia (RM).
The stated changes represent management’s assessment of reasonably possible changes in foreign exchange
rates over the period until the next annual reporting date. Results of the analysis represent an aggregation of the
effects on the Group’s and the Bank’s profit before tax measured in the respective functional currencies, translated
into Ringgit Malaysia (RM) at the exchange rate ruling at the balance sheet date for presentation purposes.
31. Financial risk management (continued)
2.
Market Risk (continued)
Liquidity Risk
Liquidity risk is the risk that the Group and the Bank will not be able to meet its financial commitments when due.
Under the Group’s and the Bank’s internal liquidity risk management policy, there is a set of standards for the
measurement of liquidity risk in order to ensure consistency, stability in methodologies and transparency of risk.
Management of liquidity is performed on a daily basis and is monitored by the Treasurer. The Asset and Liability
Committee and the Treasurer undertake the joint responsibility of overall liquidity risk management which
covers establishing and endorsing the annual funding and liquidity plan, liquidity limits, liquidity ratios, market
triggers and periodic stress tests.
The Group and the Bank include the net cash flow position for derivatives as part of their daily liquidity reports
under off-balance sheet items, which are consolidated together with the on-balance sheet items to monitor the
overall liquidity position of the Group and the Bank. The daily report prepared to monitor the daily liquidity
position is known as the Market Access Report (“MAR”). It is prepared by major currencies and it has maturity
analysis ranging from overnight to more than 2 years and limits are set for each tenor bucket. Maturity
mismatches are monitored through the daily MAR report for necessary treasury actions on funding and gapping.
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2012
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Assets
Cash and short term funds
9,042,370
-
-
-
-
1,250,865
-
10,293,235
1.56%
-
274,439
19,719
2,617
-
-
-
296,775
3.36%
743,921
-
-
-
-
-
-
743,921
2.78%
-
-
-
-
-
-
3,045,057
3,045,057
3.30%
107,414
281,064
771,654 1,601,846
637,458
-
-
3,399,436
3.29%
1,574,100
878,875
6,284,063
790,872
9,829,263
(357,064)
-
19,000,109
6.32%
- impaired
-
-
-
-
-
276,085
-
276,085
Other assets
-
-
-
-
-
360,834
472,092
832,926
Statutory deposits with
Bank Negara Malaysia
-
-
-
-
-
438,840
-
438,840
Deferred tax assets
-
-
-
-
-
17,292
-
17,292
Plant and equipment
-
-
-
-
-
109,343
-
109,343
11,467,805
1,434,378
7,075,436 2,395,335 10,466,721
2,096,195
3,517,149
38,453,019
Deposits and placements with
banks and other financials
institutions
Securities purchased under
resale agreements
Financial assets held-for-trading
Financial investments
available-for-sale
Loans, advances and financing
- performing
Total assets
Annual Report 2012
Interest/profit rate risk
Citibank berhad
i.
089
The following table indicates the effective interest rate at the reporting dates and periods in which the financial
instruments reprice or mature, whichever is earlier.
Notes To The Financial Statements
Limits are determined by the ultimate holding company and are reviewed as often as on a quarterly basis and is
done in conjunction with the liquidity stress testing.
31. Financial risk management (continued)
i.
Interest/profit rate risk (continued)
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2012
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
1,619,909 3,691,439
488,165
-
-
-
28,932,489
1.65%
1.04%
Liabilities and
Shareholders’ equity
23,132,976
Deposits from customers
090
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements of
banks and other financial
institutions
2,731,565
16,062
1,014
106,579
-
-
-
2,855,220
Bills and acceptances payable
-
-
-
-
-
133,076
-
133,076
Other liabilities
-
-
-
-
-
1,717,737
528,677
2,246,414
Total liabilities
25,864,541
1,635,971 3,692,453
594,744
-
1,850,813
528,677
34,167,199
-
-
-
4,285,820
-
4,285,820
1,635,971 3,692,453
594,744
-
6,136,633
528,677
38,453,019
Shareholders’ equity
Total liabilities and
shareholders' equity
-
25,864,541
On-balance sheet interest
sensitivity gap
(14,396,736)
Off-balance sheet interest
sensitivity gap
(138,000)
(14,534,736)
-
(201,593) 3,382,983 1,800,591 10,466,721 (4,040,438) 2,988,472
(296,000)
296,000 (154,000)
86,000
-
-
(497,593) 3,678,983 1,646,591 10,552,721 (4,040,438) 2,988,472
31. Financial risk management (continued)
Interest/profit rate risk (continued)
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2011
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
-
-
-
-
1,643,832
-
11,968,440
1.55%
-
733,854
619,328
163,491
-
-
-
1,516,673
2.67%
1,218,993
-
-
-
-
-
-
1,218,993
2.10%
-
-
-
-
2,336,849
2,336,849
3.04%
1,436,145 2,807,965
673,760
-
-
5,225,508
2.78%
6.60%
Deposits and placements with
banks and other financial
institutions
Securities purchased under
resale agreements
Financial assets held-for-trading
-
-
Financial investments
available-for-sale
-
307,638
1,696,851
1,422,520
6,993,639
632,761
9,677,517
(365,325)
-
20,057,963
- impaired
-
-
-
-
-
299,364
-
299,364
Other assets
-
-
-
-
-
485,341
820,647
1,305,988
Statutory deposits with
Bank Negara Malaysia
-
-
-
-
-
398,080
-
398,080
Deferred tax assets
-
-
-
-
-
796
-
796
Plant and equipment
-
-
-
-
-
120,905
-
120,905
13,240,452
2,464,012
9,049,112 3,604,217 10,351,277
2,582,993
3,157,496
44,449,559
Loans, advances and financing
- performing
Total assets
Annual Report 2012
10,324,608
Citibank berhad
Cash and short term funds
Notes To The Financial Statements
Assets
09 1
i.
31. Financial risk management (continued)
i.
Interest/profit rate risk (continued)
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2011
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Liabilities and
Shareholders’ equity
Deposits from customers
24,011,170
1,485,006
3,957,298
617,231
-
-
-
30,070,705
1.66%
3,365,590
3,485,651
802,972
122,884
-
-
-
7,777,097
0.40%
Bills and acceptances payable
-
-
-
-
-
63,761
-
63,761
Other liabilities
-
-
-
-
-
1,752,623
769,950
2,522,573
Total liabilities
27,376,760
4,970,657
4,760,270
740,115
-
1,816,384
769,950
40,434,136
-
-
-
-
-
4,015,423
-
4,015,423
27,376,760
4,970,657
4,760,270
740,115
-
5,831,807
769,950
44,449,559
4,288,842 2,864,102 10,351,277
(3,248,814)
2,387,546
95,340
-
-
5,100,352 2,956,691 10,446,617
(3,248,814)
2,387,546
092
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements of
banks and other financial
institutions
Shareholders’ equity
Total liabilities and
Shareholders' equity
On-balance sheet interest
sensitivity gap
Off-balance sheet interest
sensitivity gap
(14,136,308) (2,506,645)
(223,464)
(467,705)
(14,359,772) (2,974,350)
811,510
92,589
31. Financial risk management (continued)
Interest/profit rate risk (continued)
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
-
-
-
-
717,653
-
10,481,033
1.50%
-
578,355
51,793
181,512
-
-
-
811,660
4.29%
404,417
-
-
-
-
-
-
404,417
1.35%
Financial assets held-for-trading
-
-
-
-
-
-
1,852,463
1,852,463
2.69%
Financial investments
available-for-sale
-
-
277,443 2,719,300
108,745
-
-
3,105,488
3.39%
1,385,605
975,383
6,324,229
246,547 10,607,195
(369,357)
-
19,169,602
6.71%
- impaired
-
-
-
-
-
311,272
-
311,272
Other assets
-
-
-
-
-
310,476
1,007,240
1,317,716
Deferred tax assets
-
-
-
-
-
59,300
-
59,300
Plant and equipment
-
-
-
-
-
108,781
-
108,781
11,553,402
1,553,738
6,653,465 3,147,359 10,715,940
1,138,125
2,859,703
37,621,732
Deposits and placements with
banks and other financial
institutions
Securities purchased under
resale agreements
Loans, advances and financing
- performing
Total assets
Annual Report 2012
9,763,380
Citibank berhad
Cash and short term funds
Notes To The Financial Statements
Assets
093
i.
31. Financial risk management (continued)
i.
Interest/profit rate risk (continued)
Group
Up to 1
month
>1-3
months
> 3 - 12
months
>1-5
years
Over 5
years
Non-interest
sensitive
Trading
book
Total
Effective
interest
rate
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
2,476,715 6,391,713
651,954
-
-
-
28,843,990
1.27%
512,996
1,438,808
256,016
115,105
-
-
-
2,322,925
0.89%
Bills and acceptances payable
-
-
-
-
-
47,982
-
47,982
Other liabilities
-
-
-
-
-
1,753,342 1,044,120
2,797,462
Total liabilities
19,836,604
3,915,523 6,647,729
767,059
-
1,801,324 1,044,120
34,012,359
-
-
-
3,609,373
-
3,609,373
3,915,523 6,647,729
767,059
-
5,410,697 1,044,120
37,621,732
Liabilities and
Shareholders’ equity
Deposits from customers
094
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements of
banks and other financial
institutions
Shareholders’ equity
19,323,608
-
-
Total liabilities and
shareholders' equity
19,836,604
On-balance sheet interest
sensitivity gap
(8,283,202) (2,361,785)
Off-balance sheet interest
sensitivity gap
(21,735)
(666,608)
(8,304,937) (3,028,393)
5,736 2,380,300 10,715,940 (4,272,572) 1,815,583
4,069
844,350
(61,670)
-
-
9,805 3,224,650 10,654,270 (4,272,572) 1,815,583
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents being
deposited by the subsidiaries were eliminated in the above tables.
31. Financial risk management (continued)
Foreign currency risk
Foreign currency risk results in the Group's exposure to the effects of fluctuations in the prevailing foreign
currency exchange rates on its financial position and cash flows. The tables below summarise the RM
equivalent amount of the Group's and the Bank’s exposure to foreign currency exchange rate risk as at
reporting date:
Group
MYR
USD
JPY
Others
Total
RM’000
RM’000
RM’000
RM’000
RM’000
3,639,362
485,947
4,917,767
1,250,159
10,293,235
Deposits and placements
with banks and other
financial institutions
-
89,973
157,369
49,433
296,775
Securities purchased
under resale agreements
20 1 2
-
-
-
743,921
3,045,057
-
-
-
3,045,057
Financial investments
available-for-sale
3,399,436
-
-
-
3,399,436
17,978,104
1,122,670
130,747
44,673
19,276,194
5,273,902
(4,505,351)
264,222
(199,847)
832,926
438,840
-
-
-
438,840
17,292
-
-
-
17,292
109,343
-
-
-
109,343
34,645,257
(2,806,761)
5,470,105
1,144,418
38,453,019
22,162,490
5,608,506
45,365
1,116,128
28,932,489
247,027
2,136,044
310,700
161,449
2,855,220
Loans, advances and financing
Other assets
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
Total assets
Liabilities
Deposits from customers
Deposits and placements of
banks and other financial
institutions
Bills and acceptances payable
5,985
125,480
894
717
133,076
Other liabilities
8,120,452
(6,216,305)
284,924
57,343
2,246,414
Total liabilities
30,535,954
1,653,725
641,883
1,335,637
34,167,199
4,285,820
-
-
-
4,285,820
34,821,774
1,653,725
641,883
1,335,637
38,453,019
Shareholder’s equity
Total liabilities and
Shareholder’s equity
Annual Report 2012
743,921
Financial assets heldfor-trading
Citibank berhad
Cash and short term funds
Notes To The Financial Statements
Assets
095
ii.
31. Financial risk management (continued)
ii.
Foreign currency risk (continued)
Group
MYR
USD
JPY
Others
Total
RM’000
RM’000
RM’000
RM’000
RM’000
Cash and short term funds
2,980,351
6,930,088
170,487
1,887,514
11,968,440
Deposits and placements
with banks and other
financial institutions
505,000
742,652
167,942
101,079
1,516,673
Securities purchased
under resale agreements
1,218,993
-
-
-
1,218,993
Financial assets heldfor-trading
2,336,849
-
-
-
2,336,849
Financial investments
available-for-sale
5,225,508
-
-
-
5,225,508
Loans, advances and
financing
18,653,054
1,537,447
156,882
9,944
20,357,327
Other assets
(3,083,664)
4,901,670
868,509
(1,380,527)
1,305,988
398,080
-
-
-
398,080
20 11
Notes To The Financial Statements
Assets
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
Total assets
Deposits from customers
Deposits and placements of
banks and other financial
institutions
Annual Report 2012
Other liabilities
Citibank berhad
-
-
-
796
-
-
-
120,905
28,355,872
14,111,857
1,363,820
618,010
44,449,559
24,439,971
4,054,517
38,882
1,537,335
30,070,705
187,698
7,138,063
438,673
12,663
7,777,097
913
57,499
2,372
2,977
63,761
(545,278)
3,382,608
885,192
(1,199,949)
2,522,573
24,083,304
14,632,687
1,365,119
353,026
40,434,136
4,015,423
-
-
-
4,015,423
28,098,727
14,632,687
1,365,119
353,026
44,449,559
Liabilities
Bills and acceptances payable
096
796
120,905
Total liabilities
Shareholder’s equity
Total liabilities and
Shareholder’s equity
31. Financial risk management (continued)
Foreign currency risk (continued)
Group
MYR
USD
JPY
Others
Total
20 1 0
RM’000
RM’000
RM’000
RM’000
RM’000
5,175,951
4,275,961
165,662
863,459
10,481,033
Deposits and placements
with banks and other
financial institutions
400,000
214,965
56,762
139,933
811,660
Securities purchased
under resale agreements
-
-
-
404,417
1,852,463
-
-
-
1,852,463
Financial investments
available-for-sale
2,974,380
131,108
-
-
3,105,488
18,793,515
500,705
165,477
21,177
19,480,874
9,906,208
(9,071,471)
985,692
(502,713)
1,317,716
Loans, advances and financing
Other assets
Deferred tax assets
59,300
-
-
-
59,300
108,781
-
-
-
108,781
39,675,015
(3,948,732)
1,373,593
521,856
37,621,732
22,151,301
5,676,701
28,576
987,412
28,843,990
Deposits and placements of
banks and other financial
institutions
539,841
1,499,724
273,162
10,198
2,322,925
Bills and acceptances payable
911
31,405
2,706
12,960
47,982
Other liabilities
12,268,286
(10,018,370)
1,064,106
(516,560)
2,797,462
Total liabilities
34,960,339
(2,810,540)
1,368,550
494,010
34,012,359
3,609,373
-
-
-
3,609,373
38,569,712
(2,810,540)
1,368,550
494,010
37,621,732
Plant and equipment
Total assets
Liabilities
Deposits from customers
Shareholder’s equity
Total liabilities and
Shareholder’s equity
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents being
deposited by the subsidiaries were eliminated in the above tables.
Annual Report 2012
404,417
Financial assets heldfor-trading
Citibank berhad
Cash and short term funds
Notes To The Financial Statements
Assets
097
ii.
31. Financial risk management (continued)
iii.
Analysis of assets and liabilities by remaining maturity
The following maturity profile is based on the remaining period at the balance sheet date to the contractual
maturity.
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2012
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
8,580,461
461,909
-
-
-
-
-
- 1,250,865 10,293,235
-
-
274,439
11,946
7,773
2,617
-
-
-
296,775
Securities purchased
under resale
agreements
743,921
-
-
-
-
-
-
-
-
743,921
Financial assets
held-for-trading
196,739
79,120
847,024 1,097,814
116,764
392,288
179,792
135,516
-
3,045,057
Financial investments
available-for-sale
107,414
249,271
339,203
278,926
185,318 1,063,988
537,858
637,458
-
3,399,436
Loans, advances and
financing
900,546
673,554
878,875
116,095 6,167,968
Other assets
290,454
9,934
30,680
62,163
44,207
145,409
97,319
51,034
101,726
832,926
Statutory Deposits with
Bank Negara Malaysia
-
-
-
-
-
-
-
-
438,840
438,840
Deferred tax assets
-
-
-
-
-
-
-
-
17,292
17,292
Plant and equipment
-
-
-
-
-
-
-
-
109,343
109,343
Assets
Cash and short
term funds
098
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements
with banks and other
financial institutions
Total assets
10,819,535
278,854
1,473,788 2,370,221 1,566,944 6,522,030 1,883,156
512,018 9,829,263
(80,979) 19,276,194
1,326,987 10,653,271 1,837,087 38,453,019
31. Financial risk management (continued)
Analysis of assets and liabilities by remaining maturity (continued)
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2012
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
Deposits from customers
19,155,138
3,977,838
1,619,909
607,306
3,084,132
371,651
116,515
-
-
28,932,489
Deposits and placements
of banks and other
financial institutions
1,179,500
1,552,065
16,062
900
114
106,579
-
-
-
2,855,220
718,963
(167,158)
(323,072)
(95,657)
-
-
-
-
-
133,076
Other liabilities
1,787,198
13,987
39,193
68,710
53,603
169,608
73,139
40,698
278
2,246,414
Total liabilities
22,840,799
5,376,732
1,352,092
581,259
3,137,849
647,838
189,654
40,698
278
34,167,199
Share capital
-
-
-
-
-
-
-
-
121,697
121,697
Reserves
-
-
-
-
-
-
-
- 4,164,123
4,164,123
Total equity attributable to
equity holder of the bank
-
-
-
-
-
-
-
- 4,285,820
4,285,820
22,840,799
5,376,732
1,352,092
581,259
3,137,849
647,838
189,654
40,698 4,286,098
38,453,019
Annual Report 2012
Total liabilities and equity
Citibank berhad
Bills and acceptances
payable
Notes To The Financial Statements
Liabilities and
Shareholders’ funds
09 9
iii.
31. Financial risk management (continued)
(iii)
Analysis of assets and liabilities by remaining maturity (continued)
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2011
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
6,423,830
3,900,778
-
-
-
-
-
Deposits and placements
with banks and other
financial institutions
-
-
733,854
354,781
264,547
162,597
894
-
-
1,516,673
Securities purchased
under resale
agreements
-
1,218,993
-
-
-
-
-
-
-
1,218,993
Financial assets
held-for-trading
-
127,356 1,098,792
293,885
390,371
446,387
(97,677)
77,735
-
2,336,849
Financial investments
available-for-sale
-
811,937
624,208 1,759,444
1,048,521
673,760
-
5,225,508
Assets
1 00
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Cash and short
term funds
-
307,638
- 1,643,832 11,968,440
Loans, advances and
financing
372,170
Other assets
476,969
87,648
75,400
92,727
35,722
315,181
56,571
100,344
65,426
1,305,988
Statutory Deposits with
Bank Negara Malaysia
-
-
-
-
-
-
-
-
398,080
398,080
Deferred tax assets
-
-
-
-
-
-
-
-
796
796
Plant and equipment
-
-
-
-
-
-
-
-
120,905
120,905
Total assets
7,272,969
1,372,220 1,466,563 1,130,554 6,070,508
323,064
6,706,995 3,682,247 2,683,884 7,385,356 3,006,673
404,260 9,731,856 (513,868) 20,357,327
1,412,569 10,583,695 1,715,171 44,449,559
31. Financial risk management (continued)
Analysis of assets and liabilities by remaining maturity (continued)
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2011
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
Deposits from customers
14,856,097
9,155,073
1,485,006
560,991
3,396,307
386,132
231,099
-
-
30,070,705
Deposits and placements
of banks and other
financial institutions
1,432,250
1,933,340
3,485,651
638,927
164,045
122,884
-
-
-
7,777,097
Bills and acceptances
payable
1,016,844
(250,384)
(366,546)
(336,153)
-
-
-
-
-
63,761
Other liabilities
1,757,892
51,804
43,039
44,453
20,287
384,451
84,553
93,170
42,924
2,522,573
Total liabilities
19,063,083
10,889,833
4,647,150
908,218
3,580,639
893,467
315,652
93,170
42,924
40,434,136
Share capital
-
-
-
-
-
-
-
-
121,697
121,697
Reserves
-
-
-
-
-
-
-
- 3,893,726
3,893,726
Total equity attributable to
equity holder of the bank
-
-
-
-
-
-
-
- 4,015,423
4,015,423
19,063,083
10,889,833
4,647,150
908,218
3,580,639
893,467
315,652
93,170 4,058,347
44,449,559
Annual Report 2012
Citibank berhad
Total liabilities and equity
Notes To The Financial Statements
Liabilities and
Shareholders’ funds
10 1
(iii)
31. Financial risk management (continued)
(iii)
Analysis of assets and liabilities by remaining maturity (continued)
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2010
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
8,557,099
1,018,710
-
-
-
-
-
-
Deposits and placements
with banks and other
financial institutions
-
-
578,355
19,707
32,086
178,874
2,638
-
-
811,660
Securities purchased
under resale
agreements
-
404,417
-
-
-
-
-
-
-
404,417
Financial assets
held-for-trading
-
20,329
666,005
546,891
388,186
192,269
193,534
(154,751)
-
1,852,463
Financial investments
available-for-sale
-
-
-
49,986
227,458 2,009,960
709,339
108,745
-
3,105,488
Assets
1 02
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Cash and short
term funds
Loans, advances and
financing
205,605
Other assets
323,754
72,516
Deferred tax assets
-
Plant and equipment
-
Total assets
9,086,458
971,738 1,022,388
905,224 10,481,033
452,409 6,093,780
119,013
369,641 10,352,473 (106,173) 19,480,874
138,915
230,998
32,102
283,367
107,563
69,729
58,772
1,317,716
-
-
-
-
-
-
-
59,300
59,300
-
-
-
-
-
-
-
108,781
108,781
2,487,710 2,405,663 1,299,991 6,773,612 2,783,483
1,382,715 10,376,196 1,025,904 37,621,732
31. Financial risk management (continued)
Analysis of assets and liabilities by remaining maturity (continued)
Group
Less than
7 days
7 days to
1 month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 3
years
3 to 5
years
Over
5 years
No
specific
maturity
Total
2010
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
Deposits from customers
11,988,182
7,335,425
2,476,715
1,954,259
4,437,455
381,723
270,231
-
-
28,843,990
Deposits and placements
of banks and other
financial institutions
303,475
209,521
1,438,808
226,532
29,484
1,582
113,523
-
-
2,322,925
Bills and acceptances
payable
1,019,456
(289,259)
(497,553)
(184,662)
-
-
-
-
-
47,982
Other liabilities
1,786,816
75,224
154,836
94,731
84,948
275,760
197,010
60,481
67,656
2,797,462
Total liabilities
15,097,929
7,330,911
3,572,806
2,090,860
4,551,887
659,065
580,764
60,481
67,656
34,012,359
Share capital
-
-
-
-
-
-
-
-
121,697
121,697
Reserves
-
-
-
-
-
-
-
- 3,487,676
3,487,676
Total equity attributable to
equity holder of the bank
-
-
-
-
-
-
-
- 3,609,373
3,609,373
15,097,929
7,330,911
3,572,806
2,090,860
4,551,887
659,065
580,764
60,481 3,677,029
37,621,732
Annual Report 2012
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents being
deposited by the subsidiaries were eliminated in the above tables.
Citibank berhad
Total liabilities and equity
Notes To The Financial Statements
Liabilities and
Shareholders’ funds
1 03
iii.
31. Financial risk management (continued)
iv.
Analysis of financial liabilities by contractual undiscounted cash flows
The table below details the remaining contractual maturities at the balance sheet date of the Group’s financial
liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using
contractual rates or if floating, based on current rates at the balance sheet date) and the earliest date the Group
can be required to pay.
Group
Carrying
Amount
Total
contractual
undiscounted
cash flows
1 month
or less
Over 1
month to
3 months
Over 3
months to
1 year
Over
1 year to
5 years
Over
5 years
2012
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
104
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Financial liabilities
Deposits from customers
28,932,489
29,151,704
23,271,812
1,588,924
3,799,559
491,409
-
Deposits and placements
of banks and other
financial institutions
2,855,220
2,855,766
2,731,826
16,069
1,015
106,856
-
Bills and acceptances payable
Other liabilities
Total
133,076
133,076
604,725
(337,359)
(134,290)
-
-
2,246,414
2,246,415
680,523
2,843
3,238
663
1,559,148
34,167,199
34,386,961
27,288,886
1,270,477
3,669,522
598,928
1,559,148
Group
Carrying
Amount
Total
contractual
undiscounted
cash flows
1 month
or less
Over 1
month to
3 months
Over 3
months to
1 year
Over
1 year to
5 years
Over
5 years
2011
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
Financial liabilities
Deposits from customers
30,070,705
30,226,365
24,150,629
1,405,722
Deposits and placements
of banks and other
financial institutions
7,777,097
7,781,241
3,365,836
63,761
63,761
756,769
2,522,573
2,522,573
40,434,136
40,593,940
Bills and acceptances payable
Other liabilities
Total
4,060,241
609,773
-
3,487,778
804,141
123,486
-
(359,864)
(333,144)
-
-
1,832,099
50,237
72,927
472,592
94,718
30,105,333
4,583,873
4,604,165
1,205,851
94,718
31. Financial risk management (continued)
iv.
Analysis of financial liabilities by contractual undiscounted cash flows (continued)
Group
Carrying
Amount
Total
contractual
undiscounted
cash flows
1 month
or less
Over 1
month to
3 months
Over 3
months to
1 year
Over
1 year to
5 years
Over
5 years
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
Financial liabilities
Deposits and placements
of banks and other
financial institutions
2,322,925
2,323,975
2,164,426
47,982
47,982
730,196
2,797,462
2,797,462
1,929,697
34,012,359
34,157,096
26,121,766
Bills and acceptances payable
Other liabilities
Total
3.
1,512,703
5,523,671
623,834
30,022
605
42,985
115,959
-
(497,553)
(184,661)
-
-
154,835
179,679
472,770
60,481
1,170,590
5,561,674
1,212,563
90,503
Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems,
or from external events. It includes reputation and franchise risk associated with business practices or
market conduct that the Group and the Bank may undertake and includes the risk of failing to comply with
applicable laws, regulations and Citigroup policies.
Operational risk is inherent in the Group’s and the Bank’s business activities and is managed through an
overall framework with checks and balances that include recognised ownership of the risk by businesses and
independent risk management oversight. The Group and the Bank mitigate their operational risk by setting
up its key controls and assessments according to Citigroup’s and Regulators’ standards. They are also
evaluated, monitored, and managed by its sound governance structure.
The Group’s and the Bank’s Self-Assessments and Operational Risk Framework include the Risk and Control
Self-Assessment and the Operational Risk Policy, and define the Group’s and the Bank’s approach to
operational risk management. The objective of the policy is to establish a consistent approach to assessing
relevant risks and the overall control environment across the Group and the Bank, to facilitate adherence to
regulatory requirements and other corporate initiatives.
32. Financial assets and liabilities
32.1 Categories of financial instruments
The table below provides an analysis of financial instruments categorised as follows:
a.
b.
Loans and receivables (“L&R”);
Fair value through profit or loss (“FVTPL”):
- Held for trading (“HFT”);
c.
Financial investments available-for-sale (“AFS”);
d.
Other liabilities (“OL”).
Notes To The Financial Statements
21,297,447
Annual Report 2012
28,987,677
Citibank berhad
28,843,990
105
Deposits from customers
32. Financial assets and liabilities (continued)
32.1 Categories of financial instruments (continued)
Group
Carrying
L&R/
FVTPL
amount
(OL)
-HFT
AFS
RM’000
RM’000
RM’000
RM’000
10,293,235
10,293,235
-
-
296,775
296,775
-
-
743,921
743,921
-
-
3,045,057
-
3,045,057
-
2012
Financial 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
Notes To The Financial Statements
Financial investments available-for-sale
Loans, advances and financing
Bank Negara Malaysia
Annual Report 2012
-
3,399,436
10,288
-
438,840
438,840
-
-
Derivatives financial assets
472,092
-
472,092
-
Interest/Income receivable
42,295
42,295
-
-
38,007,845
31,080,972
3,527,437
3,399,436
28,932,489
28,919,114
13,375
-
financial institutions
2,855,220
2,855,220
-
-
Bills and acceptances payable
133,076
133,076
-
-
528,677
-
528,677
-
52,883
52,883
-
-
32,502,345
31,960,293
542,052
-
Total financial assets
Financial Liabilities
Deposits from customers
Deposits and placements
of banks and other
Derivatives financial
liabilities
Citibank berhad
19,265,906
Statutory deposits with
Interest/Profit payable
10 6
3,399,436
19,276,194
Total financial liabilities
32. Financial assets and liabilities (continued)
32.1 Categories of financial instruments (continued)
Carrying
L&R/
FVTPL
amount
(OL)
-HFT
AFS
RM’000
RM’000
RM’000
RM’000
11,968,440
11,968,440
-
-
1,516,673
1,516,673
-
-
1,218,993
1,218,993
-
-
Financial assets held-for-trading
2,336,849
-
2,336,849
-
Financial investments available-for-sale
5,225,508
-
-
5,225,508
20,357,327
20,336,374
20,953
-
Group
2011
Financial Assets
Cash and short-term funds
Deposits and placements
with banks and other
financial institutions
398,080
398,080
-
-
Derivatives financial assets
Bank Negara Malaysia
820,647
-
820,647
-
Interest/Income receivable
66,150
66,150
-
-
43,908,667
35,504,710
3,178,449
5,225,508
30,070,705
29,426,292
644,413
-
7,777,097
7,777,097
-
-
63,761
63,761
-
-
769,950
-
769,950
-
65,949
65,949
-
-
38,747,462
37,333,099
1,414,363
-
Total financial assets
Financial Liabilities
Deposits from customers
Deposits and placements
of banks and other
financial institutions
Bills and acceptances payable
Derivatives financial
liabilities
Interest/Profit payable
Total financial liabilities
Annual Report 2012
Statutory deposits with
Citibank berhad
Loans, advances and financing
1 07
resale agreements
Notes To The Financial Statements
Securities purchased under
32. Financial assets and liabilities (continued)
32.1 Categories of financial instruments (continued)
Group
Carrying
L&R/
FVTPL
amount
(OL)
-HFT
AFS
RM’000
RM’000
RM’000
RM’000
10,481,033
10,481,033
-
-
811,660
811,660
-
-
404,417
404,417
-
-
1,852,463
-
1,852,463
-
2010
Financial 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
Notes To The Financial Statements
Financial investments available-for-sale
Loans, advances and financing
Annual Report 2012
Citibank berhad
-
-
3,105,488
19,480,874
-
-
Derivatives financial assets
1,007,240
-
1,007,240
-
Interest/Income receivable
45,836
45,836
-
-
37,189,011
31,223,820
2,859,703
3,105,488
28,843,990
28,843,990
-
-
2,332,925
2,332,925
-
-
47,982
47,982
-
-
1,044,120
-
1,044,120
-
57,354
57,354
-
-
32,326,371
31,282,251
1,044,120
-
Total financial assets
Financial Liabilities
Deposits from customers
Deposits and placements
of banks and other
financial institutions
Bills and acceptances payable
Derivatives financial
liabilities
Interest/Profit payable
Total financial liabilities
10 8
3,105,488
19,480,874
The disclosures represented the Bank’s exposures except for RM20,000 cash and cash equivalents being
deposited by the subsidiaries were eliminated in the above tables.
32. Financial assets and liabilities (continued)
32.2 Fair value of financial instruments
The following table summarises the fair values of the financial assets and liabilities carried on the statements
of financial position as at 31 December of the Group.
Deposits and placements with
banks and other financial institutions
Securities purchased under resale
agreements
Financial assets held-for-trading
Financial investments available-for-sale
Loans, advances and financing
Other assets
Deposits from customers
Deposits and placements of
banks and other financial institutions
Bills and acceptances payable
Other liabilities
Fair
Carrying
Fair
value
value
value
value
value
value
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
10,293,235 10,293,235 11,968,440 11,968,440
296,775
296,772
1,516,673
1,516,534
10,481,033 10,481,033
811,660
822,904
743,921
743,921
1,218,993
1,218,993
404,417
404,417
3,045,057
3,045,057
2,336,849
2,336,849
1,852,463
1,852,463
3,399,436
3,399,436
5,225,508
5,225,508
3,105,488
3,105,488
19,276,194 19,227,290 20,357,327 20,234,356
832,926
832,926
1,305,988
1,305,988
28,932,489 28,932,441 30,070,705 30,051,422
2,855,220
2,855,220
7,777,097
7,777,097
19,480,874 19,018,880
1,317,716
1,317,716
28,843,990 28,790,690
2,322,925
2,322,930
133,076
133,076
63,761
63,761
47,982
47,982
2,246,414
2,246,414
2,522,573
2,522,573
2,797,462
2,797,462
The methods and assumptions used in estimating the fair values of financial instruments are as follows:
a.
Cash and Short Term Funds, and Securities Purchased under Resale Agreements
The carrying amounts are a reasonable estimate of the fair values because of their short-term nature.
b.
Deposits and Placements with Financial Institutions
The fair values of deposits and placements with remaining maturities less than one year are estimated to
approximate their carrying values. For deposits and placements with maturities of more than one year, the
fair values are estimated based on discounted cash flows using the prevailing market rates of similar
remaining maturities.
c.
Financial Assets Held-for-Trading and Financial Investments Available-for-Sale
The fair values are estimated based on quoted or observable market prices as at statements of financial
position date. Where such quoted or observable market prices are not available, the fair values are
estimated using pricing models or discounted cash flow techniques. Where discounted cash flow technique
is used, the expected future cash flows are discounted using prevailing market rates for similar
instruments as at statements of financial position date.
Notes To The Financial Statements
Cash and short term funds
Carrying
Annual Report 2012
Group
Fair
1.1.2011
Citibank berhad
Carrying
31.12.2011
109
31.12.2012
32. Financial assets and liabilities (continued)
32.2 Fair value of financial instruments (continued)
d.
Loans, Advances and Financing
The fair values of fixed rate loans with remaining maturity of less than one year and variable rate loans
are estimated to approximate their carrying values. For fixed rate loans and Islamic loans with maturities
of more than one year, the fair values are estimated based on expected future cash flows of contractual
instalment payments and discounted at prevailing rates at statements of financial position date offered
for similar loans to new borrowers with similar credit profiles, where applicable. In respect of impaired
loans, the fair values are deemed to approximate the carrying values, net of individual assessment
allowance for bad and doubtful debts and financing. Collective assessment allowance is excluded from the
carrying value.
110
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
e.
Deposits from Customers and Deposits and Placements of Banks and Other Financial Institutions
The fair values for deposit liabilities payable on demand (demand and savings deposits) or with remaining
maturities of less than one year are estimated to approximate their carrying values at statements of
financial position date. The fair values of fixed deposits with remaining maturities of more than one year
are estimated based on discounted cash flows using rates currently offered for deposits of similar
remaining maturities. The fair values of Islamic deposits are deemed to approximate their carrying values
as at statements of financial position date as the profit rates are determined at the end of their holding
periods based on the profit generated from the assets invested. For negotiable instrument of deposits, the
estimated fair values are based on quoted or observable market prices at the statements of financial
position date. Where such quoted or observable market prices are not available, the fair values of
negotiable instruments of deposits are estimated using discounted cash flow techniques.
f.
Bills and Acceptances Payable
The carrying amounts are a reasonable estimate of their fair values because of their short-term nature.
g.
Other Assets and Other Liabilities
The fair values of other assets and other liabilities are assumed to approximate their carrying values due
to the short term nature of these financial instruments or the fact that they are derived by using the
market rates at reporting date.
32. Financial assets and liabilities (continued)
32.3 Fair value hierarchy
The table below analyses financial instruments carried at fair value by valuation method. The different levels
have been defined as follows:
•
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
•
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1
Level 2
Level 3
Total
RM’000
RM’000
RM’000
RM’000
Financial investments available-for-sale
3,391,937
-
-
3,391,937
Financial assets held-for-trading
3,045,057
-
-
3,045,057
Group and Bank
31 December 2012
-
10,288
464,501
7,591
472,092
6,436,994
474,789
7,591
6,919,374
Financial liabilities
Deposits from customers
-
13,375
-
13,375
Derivative financial liabilities
-
521,237
7,440
528,677
-
534,612
7,440
542,052
Level 1
Level 2
Level 3
Total
RM’000
RM’000
RM’000
RM’000
Financial investments available-for-sale
5,218,009
-
-
5,218,009
Financial assets held-for-trading
Group and Bank
31 December 2011
Financial assets
2,336,849
-
-
2,336,849
Loans, advances and financing
-
20,953
-
20,953
Derivative financial assets
-
809,255
11,392
820,647
7,554,858
830,208
11,392
8,396,458
Deposits from customers
-
644,413
-
644,413
Derivative financial liabilities
-
759,944
10,006
769,950
-
1,404,357
10,006
1,414,363
Financial liabilities
Annual Report 2012
10,288
-
Citibank berhad
-
Derivative financial assets
111
Loans, advances and financing
Notes To The Financial Statements
Financial assets
32. Financial assets and liabilities (continued)
32.3 Fair value hierarchy (continued)
The following table shows a reconciliation from the beginning balances to the ending balances for fair
value measurements in Level 3 of the fair value hierarchy:
Group and Bank
20 1 2
2011
RM’000
RM’000
Balance at 1 January
11,392
14,148
Total lossed recognised in profit or loss:
Attributable to losses relating to assets or liabilities that:
- have not been realised
(3,801)
(2,756)
7,591
11,392
10,006
2,850
(2,566)
7,156
Financial assets
11 2
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Balance at 31 December
Financial liabilities
Balance at 1 January
Total gains recognised in profit or loss:
Attributable to gains relating to assets or liabilities that:
- have not been realised
Balance at 31 December
7,440
10,006
The unrealised gains/(losses) have been recognised in other operating income/ expenses in profit or loss.
Changing one or more of the inputs to reasonable alternative assumptions would not change the value
significantly for the financial assets in Level 3 of the fair value hierarchy.
33. Lease commitments
The Group and the Bank have lease commitments in respect of rented premises and equipment for hire, all of
which are classified as operating leases. A summary of the non-cancellable long term commitments, net of sub
leases are as follows:
Group and Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Within 1 year
27,213
25,953
24,355
Between 1 and 5 years
30,426
6,199
27,750
34. Capital commitments
RM’000
RM’000
RM’000
33,905
21,181
49,627
Capital expenditures:
Authorised and contracted for
Annual Report 2012
1.1.2011
Citibank berhad
31.12.2011
113
31.12.2012
Notes To The Financial Statements
Group and Bank
35. Capital adequacy
A.
The capital adequacy ratios are as follows:
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Computation of Total Risk Weighted Assets
(“RWA”)
Total credit RWA
20,634,205
22,272,830
19,954,371
Total market RWA
2,223,864
2,019,640
2,398,682
Total operational RWA
3,546,462
3,525,964
3,550,272
26,404,531
27,818,434
25,903,325
Tier 1 Capital
4,269,626
4,004,778
3,559,181
Capital Base*
4,484,017
4,258,544
3,795,134
Core capital ratio
16.17%
14.40%
13.74%
Risk weighted capital ratio
16.98%
15.31%
14.65%
Total Risk Weighted Asset
114
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Computation of Capital Ratios
Before deducting proposed dividends:
After deducting proposed dividends:
Core capital ratio
14.28%
13.32%
12.58%
Risk weighted capital ratio
15.09%
14.23%
13.49%
*
In arriving at the capital base used in the ratio calculations of the Bank, the proposed dividends were
not deducted.
Detailed information on the risk exposures above are disclosed in the Pillar 3 disclosures of the annual
report as prescribed under BNM’s Risk Weighted Capital Adequacy Framework (Basel II) – Disclosures
requirements (Pillar 3).
With effect from 1 January 2011, the capital adequacy ratios of the Bank are computed in accordance with
Bank Negara Malaysia’s revised Risk-Weighted Capital Adequacy Framework (RWCAF-Basel II). The Bank
have adopted the Standardised Approach for Credit Risk and Market Risk, and the Basic Indicator
Approach for Operational Risk. The minimum regulatory capital adequacy requirement is 8% for the
risk-weighted capital ratio.
35. Capital adequacy (continued)
The components of Tier I and Tier II Capital are as follows:
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Tier I Capital
Paid up ordinary share capital
121,697
121,697
121,697
Share premium
380,303
380,303
380,303
Retained profits
3,662,946
3,384,339
2,992,306
Other reserves
121,697
121,697
121,697
Less: Deferred tax assets
(17,017)
(3,258)
(56,822)
4,269,626
4,004,778
3,559,181
Collective assessment allowance*
214,411
253,786
235,973
Total Tier II Capital
214,411
253,786
235,973
Total Eligible Tier II
214,411
253,786
235,973
(20)
(20)
(20)
4,484,017
4,258,544
3,795,134
Total Tier I Capital (Core Capital)
*
Excludes collective assessment allowance on impaired loans restricted from Tier II Capital by BNM of
RM142.7 million (31.12.2011: RM111.5 million; 1.1.2011: RM133.4 million).
Annual Report 2012
Capital Base
Citibank berhad
Less: Investments in subsidiary companies
Notes To The Financial Statements
Tier II Capital
115
B.
36. Off-balance sheet exposures
The off-balance sheet exposures and their related counterparty credit risk of the Group and the Bank are as follows:
20 1 2
Group and Bank
Nature of item
Direct credit substitutes
Principal
amount
Credit
equivalent
amount
Risk
weighted
assets
RM’000
RM’000
RM’000
1,775,552
1,775,552
1,614,183
Transaction related contingent items
459,766
229,883
193,184
Short term self liquidating trade related
contingencies
223,238
44,648
34,165
Forward asset purchases
233,379
233,379
168,747
24,502,920
450,794
279,071
4,118,926
417,698
231,938
91,650
19,022
19,022
8,194,786
133,790
30,061
13,016,035
438,593
143,666
1,276,778
123,369
51,781
82,608
7,192
1,438
130,311
13,794
7,484
-
-
-
One year or less
56,113
7,466
5,479
Over one year to five years
60,497
9,299
4,712
-
-
-
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity up to one year
568,688
113,738
113,738
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity of over one year
1,074,639
537,320
399,334
Foreign exchange related contracts:
One year or less
Over one year to five years
Over five years
11 6
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Interest/Profit rate related contracts:
One year or less
Over one year to five years
Over five years
Equity related contracts:
One year or less
Over one year to five years
Over five years
Debt security contracts and other
commodity contracts:
Over five years
Any commitments that are unconditionally
cancelled at any time by the Bank without
prior notice or that effectively provide for
automatic cancellation due to deterioration
in a borrower’s creditworthiness
4,861,934
-
-
Unutilised credit card lines
18,618,102
3,723,620
2,795,626
Total
79,345,922
8,279,157
6,093,629
36. Off-balance sheet exposures (continued)
20 1 1
Group and Bank
Principal
amount
Credit
equivalent
amount
Risk
weighted
assets
RM’000
RM’000
RM’000
1,707,320
1,707,320
1,410,933
Transaction related contingent items
399,731
199,865
158,071
Short term self liquidating trade related
contingencies
148,283
29,657
22,854
12,220
12,220
6,110
24,279,480
568,900
387,454
4,180,829
532,616
322,054
91,650
18,855
18,855
Nature of item
Direct credit substitutes
Forward asset purchases
Foreign exchange related contracts:
One year or less
Over one year to five years
Over five years
18,265
7,496
474,983
158,715
2,342,535
248,393
110,993
Equity related contracts:
One year or less
Over one year to five years
Over five years
54,639
4,577
1,648
123,596
16,482
8,593
-
-
-
Debt security contracts and other
commodity contracts:
One year or less
Over one year to five years
Over five years
-
3,687
1,843
210,358
27,579
23,095
-
-
-
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity up to one year
990,462
198,092
198,092
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity of over one year
598,618
299,309
227,000
Any commitments that are unconditionally
cancelled at any time by the Bank without
prior notice or that effectively provide for
automatic cancellation due to deterioration
in a borrower’s creditworthiness
5,376,095
-
-
Unutilised credit card lines
17,832,083
3,566,418
2,677,910
Total
79,632,078
7,927,218
5,741,716
Annual Report 2012
Over five years
6,343,210
14,940,969
Citibank berhad
Over one year to five years
1 17
One year or less
Notes To The Financial Statements
Interest/Profit rate related contracts:
36. Off-balance sheet exposures (continued)
2010
Group and Bank
Principal
amount
Credit
equivalent
amount
Risk
weighted
assets
RM’000
RM’000
RM’000
1,489,992
1,489,992
1,288,190
Transaction related contingent items
395,970
197,985
180,418
Short term self liquidating trade related
contingencies
422,631
84,526
127,781
617
617
-
24,729,003
758,795
561,289
3,637,939
539,734
321,023
-
-
-
Nature of item
Direct credit substitutes
Forward asset purchases
Foreign exchange related contracts:
One year or less
Over one year to five years
Over five years
Interest/Profit rate related contracts:
One year or less
11 8
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Over one year to five years
Over five years
7,896,887
37,105
13,589
16,604,797
586,871
255,311
1,800,014
191,416
64,169
388,457
Equity related contracts:
One year or less
Over one year to five years
Over five years
25,785
12,867
153,686
24,797
12,399
-
-
-
Debt security contracts and other
commodity contracts:
One year or less
175,461
34,810
32,976
Over one year to five years
-
-
-
Over five years
-
-
-
421,905
210,952
158,455
5,014,737
-
-
Unutilised credit card lines
18,107,541
3,621,508
2,722,693
Total
81,239,637
7,804,893
5,751,160
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity of over one year
Any commitments that are unconditionally
cancelled at any time by the Bank without
prior notice or that effectively provide for
automatic cancellation due to deterioration
in a borrower’s creditworthiness
37. The operations of Islamic Banking
Statements of financial position as at 31 December 201 2
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Assets
Cash and short term funds
(a)
91,705
68,863
394,301
Financial assets held-for-trading
(b)
671,823
-
343,179
Financial investments available-for-sale
(c)
58,071
431,792
271,553
Financing, advances and other loans
(d)
397,083
444,160
500,800
1,411
239
1,142
9,249
15,593
164,651
1,229,342
960,647
1,675,626
Deferred tax assets
Other assets
(f)
Total assets
660,741
1,111,152
Other liabilities
(h)
66,523
76,325
370,345
974,075
737,066
1,481,497
255,267
223,581
194,129
1,229,342
960,647
1,675,626
1,207,205
658,992
1,534,730
Total liabilities
Islamic banking funds
(i)
Total liabilities and Islamic banking funds
Off-balance sheet exposures
(s)
The notes on pages 123 to 140 are an integral part of these financial statements.
Annual Report 2012
907,552
Citibank berhad
(g)
1 19
Deposits from customers
Notes To The Financial Statements
Liabilities
37. The operations of Islamic Banking (continued)
Statements of comprehensive income for financial year ended 31 December 201 2
Bank
(j)
31,994
38,528
Provision for financing, advances and other written back
(k)
6,179
822
38,173
39,350
(l)
(6,880)
(6,719)
31,293
32,631
(m)
14,331
5,271
45,624
37,902
(o)
(2,879)
(2,857)
42,745
35,045
(10,686)
(6,799)
32,059
28,246
Other comprehensive (loss)/income, net of tax
Net (loss)/gain on revaluation of financial investments
available-for-sale
(373)
1,206
Other comprehensive (loss)/income for the year,
net of tax
(373)
1,206)
31,686
29,452
32,059
28,246
31,686
29,452
Income attributable to depositors
Total attributable to the Bank
Annual Report 2012
Notes To The Financial Statements
Income derived from investment of Islamic
Banking Funds
Citibank berhad
2011
RM’000
Income derived from investment of depositors’
funds and others
Total attributable income
120
20 1 2
RM’000
Total net income
Other operating expenses
Profit before taxation
Tax expense
Profit for the year
Total comprehensive income for the year
(p)
Profit for the year attributable to:
Equity holder of the Bank
Total comprehensive income attributable to:
Equity holder of the Bank
The notes on pages 123 to 140 are an integral part of these financial statements.
37. The operations of Islamic Banking (continued)
Statements of changes in Islamic Banking Funds for the year ended 31 December 201 2
Bank
reserve
profits
Total
RM’000
RM’000
RM’000
20,000
(664)
174,793
194,129
Fair value of financial investments
available-for-sale
-
1,206
-
1,206
Total other comprehensive income
for the year
-
1,206
-
1,206
Profit for the year
-
-
28,246
28,246
Total comprehensive income
for the year
-
1,206
28,246
29,452
At 1 January 2011
20,000
542
203,039
223,581
Fair value of financial investments
available-for-sale
-
(373)
-
(373)
Total other comprehensive loss
for the year
-
(373)
-
(373)
Profit for the year
-
-
32,059
32,059
Total comprehensive income for the year
-
(373)
32,059
31,686
20,000
169
235,098
255,267
At 31 December 2011/ 1 January 2012
At 31 December 2012
Note 37(i)
The notes on pages 123 to 140 are an integral part of these financial statements.
Annual Report 2012
funds
RM’000
Notes To The Financial Statements
Retained
Citibank berhad
Fair value
1 21
Capital
37. The operations of Islamic Banking (continued)
Statements of cash flows for financial year ended 31 December 2012
Bank
20 1 2
2011
RM’000
RM’000
42,745
35,045
(5,594)
491
Cash flows from operating activities
Profit before taxation
Adjustments for:
Amortisation of premium less accretion of
discount of investment securities
Provision for financing, advances and
others written back
Gain from disposal of financial investments available-for-sale
Mark-to-market loss/(gain) on financial assets held-for-trading
Notes To The Financial Statements
Operating profit before working capital changes
Annual Report 2012
Citibank berhad
(822)
(945)
685
(88)
30,429
33,681
(672,508)
343,267
53,256
57,462
Changes in working capital:
Financial assets held-for-trading
Financing, advances and others
Other assets
6,344
149,058
Deposits from customers
246,811
(450,411)
Other liabilities
(10,897)
(292,716)
(346,565)
(159,659)
(10,686)
(8,994)
(357,251)
(168,653)
Purchase of financial investments available-for-sale
(736,011)
(424,780)
Proceeds from disposal of financial investments available-for-sale
1,116,104
267,995
380,093
(156,785)
Net increase/(decrease) in cash and cash equivalents
22,842
(325,438)
Cash and cash equivalents at 1 January
68,863
394,301
Cash and cash equivalents at 31 December (Note 37(a))
91,705
68,863
Cash used in operating activities
Income taxes paid
Net cash used in operating activities
Cash flows from investing activities
Net cash generated from/(used in) investing activities
122
(6,179)
(1,228)
The notes on pages 123 to 140 are an integral part of these financial statements.
37. The operations of Islamic Banking (continued)
a.
Cash and short term funds
Bank
Cash and balances with banks and other
financial institutions
Money at call and deposit placements
maturing within one month
b.
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
3,705
2,863
4,301
88,000
66,000
390,000
91,705
68,863
394,301
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
662,090
-
336,868
9,733
-
6,311
671,823
-
343,179
Financial assets held-for-trading
Bank
Financial investments available-for-sale
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
58,071
431,792
271,553
At fair value
Malaysian Government Investment Issues
Annual Report 2012
c.
Citibank berhad
Malaysian Government Treasury Bills
1 23
Bank Negara Malaysia Islamic Bills
Notes To The Financial Statements
At fair value
37. The operations of Islamic Banking (continued)
d.
Financing, advances and other loans
i.
By type
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
418,414
475,960
536,474
- Hire purchase receivables
808
1,592
3,175
- Lease receivables
570
631
2,878
-
-
42
419,792
478,183
542,569
Unearned income
(20,022)
(25,140)
(32,059)
Gross financing, advances and others
399,770
453,043
510,510
Term financing
- Housing financing
Notes To The Financial Statements
- Other term financing
Less:
Allowance for impaired financing,
advances and others
- Collective assessment allowance
(543)
(6,764)
(7,626)
- Individual assessment allowance
(2,144)
(2,119)
(2,084)
397,083
444,160
500,800
30,669
34,701
42,101
1,378
2,223
6,095
367,723
416,119
462,314
399,770
453,043
510,510
1,355
2,206
5,812
Total net financing, advances and others
ii.
By contract
Bai’Bithamin Ajil
Ijarah Muntahia Bittamilik
Diminishing Musharakah
1 24
Citibank berhad
Annual Report 2012
iii. By type of customer
Domestic business enterprises
- Small and medium enterprises
- Others
Individuals
3,227
2,419
2,829
395,188
448,418
501,869
399,770
453,043
510,510
37. The operations of Islamic Banking (continued)
Financing, advances and other loans (continued)
iv.
By profit rate sensitivity
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Fixed rate
- Housing financing
450,820
504,416
808
1,592
3,174
- Other fixed rate/financing
570
631
2,920
399,770
453,043
510,510
1,377
2,156
3,923
Wholesale, retail trade, restaurants and hotels
-
-
98
Transport, storage and communication
-
67
2,040
Finance, insurance, real estate and business services
Household - residential
Other sectors
vi.
-
-
33
395,188
448,418
501,869
3,205
2,402
2,547
399,770
453,043
510,510
398,393
450,820
504,416
1,377
2,223
6,094
399,770
453,043
510,510
By purpose
Purchase of landed property
Purchase of fixed assets excluding land and building
Annual Report 2012
Manufacturing (including agriculture based)
Notes To The Financial Statements
By sector
Citibank berhad
v.
398,392
- Hire purchase receivables
1 25
d.
37. The operations of Islamic Banking (continued)
e.
Impaired financing, advances and other loans
i.
Movements in impaired financing, advances and other loans are as follows:
Bank
2012
2011
2010
RM’000
RM’000
RM’000
At 1 January
9,629
13,257
10,215
Classified as impaired during the year
2,354
57
8,987
Amount recovered
(2,225)
(3,685)
(3,200)
Amount written off
-
-
(2,745)
9,758
9,629
13,257
(2,144)
(2,119)
(2,084)
Net impaired financing, advances and others
7,614
7,510
11,173
Ratio of net impaired financing, advances and
others to total gross financing,
advances and others less individual
assessment allowance
1.90%
1.66%
2.19%
At 31 December
Notes To The Financial Statements
Individual assessment allowance
ii.
Movements in impaired financing, advances and other loans are as follows:
Bank
Annual Report 2012
Citibank berhad
2011
2010
RM’000
RM’000
6,764
7,626
8,026
(6,221)
(862)
(400)
543
6,764
7,626
0.14%
1.49%
1.49%
Collective assessment allowance
At 1 January
Allowance written back during the year
At 31 December
126
2012
RM’000
As % of gross financing, advances and others
less individual assessment allowance
37. The operations of Islamic Banking (continued)
e.
Impaired financing, advances and other loans (continued)
ii.
Movements in impaired financing, advances and other loans are as follows (continued):
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
2,119
2,084
4,743
179
203
(91)
(138)
(117)
Amount written off
(17)
(6)
(2,745)
2,144
2,119
2,084
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Manufacturing (including agriculture based)
1,377
1,380
1,446
Household - residential
8,381
8,249
11,811
9,758
9,629
13,257
At 31 December
iii. Impaired financing, advances and other loans by sector
Bank
f.
Other assets
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
876
4,440
3,666
Other debtors, deposits and prepayments
6,352
8,529
14,760
Revaluation gain on profit rate
undertaking contracts (Note 37(s))
2,021
2,624
146,225
9,249
15,593
164,651
Profit receivables
Annual Report 2012
133
Allowance written back during the year
Citibank berhad
Allowance made during the year
1 27
At 1 January
Notes To The Financial Statements
Individual assessment allowance
37. The operations of Islamic Banking (continued)
g.
Deposits from customers
i.
By type of deposit
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Non-Mudharabah Fund
Demand deposits
685,700
495,235
878,181
Saving deposits
53,787
69,912
69,203
Other deposits
60,294
59,540
125,996
Negotiable Instruments of Deposits
85,581
-
-
22,190
36,054
37,772
907,552
660,741
1,111,152
Mudharabah Fund
128
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
General investment deposits
ii.
By type of customer
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Government and statutory bodies
145,853
8,339
24
Business enterprises
191,370
208,987
642,811
Individuals
498,605
333,959
302,084
71,724
109,456
166,233
907,552
660,741
1,111,152
Others
37. The operations of Islamic Banking (continued)
h.
Other liabilities
Bank
Profit payable
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
65
64
57
62,880
73,637
224,063
Taxation
1,557
-
-
Revaluation loss on profit rate undertaking
contracts (Note 37(s))
2,021
2,624
146,225
66,523
76,325
370,345
Other creditors and accruals
i.
31.12.2012
Islamic banking funds
RM’000
20,000
20,000
20,000
Fair value reserve
169
542
(664)
Retained earnings
235,098
203,039
174,793
255,267
223,581
194,129
Income derived from investment of depositors’ funds and others
Bank
20 1 2
20 1 1
RM’000
RM’000
27,937
36,193
4,057
2,335
31,994
38,528
Income derived from investment of:
(i)
General investment deposits
(ii) Other deposits
Annual Report 2012
1.1.2011
RM’000
Citibank berhad
j.
31.12.2011
RM’000
1 29
Fund allocated
31.12.2012
Notes To The Financial Statements
Bank
37. The operations of Islamic Banking (continued)
j.
Income derived from investment of depositors’ funds and others (continued)
i.
Income derived from investment of general deposits
Bank
20 1 2
2011
RM’000
RM’000
Finance income and hibah
Financing, advances and other loans
14,365
15,712
Money at call and placements with financial institutions
5,592
8,245
Income from financial investments available- for-sale
3,903
10,046
23,860
34,003
4,032
1,966
27,892
35,969
45
224
27,937
36,193
Accretion of discount less amortisation of premium
130
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Total finance income and hibah
Other operating income
Fee income
Income from general investment deposits
37. The operations of Islamic Banking (continued)
j.
Income derived from investment of depositors’ funds and others (continued)
ii.
Income derived from investment of other deposits
Bank
20 1 2
20 1 1
RM’000
RM’000
2,086
1,121
Money at call and placements with financial institutions
812
489
Income from financial investments available- for-sale
567
596
3,465
2,206
586
116
4,051
2,322
6
13
4,057
2,335
Accretion of discount less amortisation of premium
Total finance income and hibah
Other operating income
Fee income
Income from investment of other deposits
Provision for financing, advances and others written back
Bank
20 1 2
20 1 1
RM’000
RM’000
(133)
(179)
91
138
6,221
863
6,179
822
Individual assessment allowance
- made in the financial year
- written back
Citibank berhad
- reversal during the year
Annual Report 2012
Collective assessment allowance
1 31
k.
Notes To The Financial Statements
Finance income and hibah
Financing, advances and others
37. The operations of Islamic Banking (continued)
l.
Income attributable to depositors
Bank
20 1 2
2011
RM’000
RM’000
- Mudharabah Fund
3,845
3,751
- Non-Mudharabah Fund
2,974
2,887
-
24
61
57
Deposits from customers
Deposits and placements of banks and other
financial institutions
- Non-Mudharabah Fund
Others
Notes To The Financial Statements
6,880
m.
6,719
Income derived from investment of Islamic Banking Capital Funds
Bank
20 1 2
2011
RM’000
RM’000
Financing, advances and others
3,932
2,386
Money at call and placements with financial institutions
1,530
1,040
Income from financial investments available-for-sale
1,068
1,267
6,530
4,693
976
(235)
7,506
4,458
(Loss)/Gain from financial assets held-for-trading
(685)
88
Gain from financial investments available-for-sale
1,228
945
Accretion of discount less amortisation of premium
Total finance income and hibah
132
Citibank berhad
Annual Report 2012
Other operating income
Fee income
1,395
1,628
Income/(Loss) from trading activities
4,685
(1,848)
202
-
6,825
813
14,331
5,271
Insurance premium and referral
Income from Islamic Banking Capital Funds
37. The operations of Islamic Banking (continued)
n.
Income from Islamic banking operations
For consolidation with the conventional operations, income from Islamic banking operations comprises
the following:
Bank
Note
o.
20 1 2
20 1 1
RM’000
RM’000
Income derived from investment of depositors’
funds and others
(j)
31,994
38,528
Income attributable to depositors
(l)
(6,880)
(6,719)
Income derived from investment of Islamic
Banking Funds
(m)
14,331
5,271
39,445
37,080
Other operating expenses
20 1 1
RM’000
RM’000
97
222
7
23
31
14
-
1
4
-
2,740
2,597
2,879
2,857
Personnel costs
- Salaries, allowances and bonuses
- Contributions to Employees Provident Fund
- Staff benefits and other compensations
- Others
Establishment costs
- Utilities
Administrative and general expenses
- Others
Included in other operating expenses is the Syariah Committee’s remuneration of RM139,000 (20 1 1 RM108,000).
20 1 2
20 1 1
RM’000
RM’000
Current tax expense
11,780
9,884
Deferred tax expense
(1,094)
(3,085)
10,686
6,799
Citibank berhad
Bank
Annual Report 2012
Taxation
1 33
p.
Notes To The Financial Statements
Bank
20 1 2
37. The operations of Islamic Banking (continued)
q.
Capital adequacy
i.
The capital adequacy ratios are as follows:
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
Total credit RWA
189,349
199,050
436,946
Total market RWA
192,293
20,319
79,687
73,421
84,785
92,001
455,063
304,154
608,634
Tier 1 Capital
253,585
222,620
193,840
Capital Base
253,805
229,006
201,034
Core capital ratio
55.73%
73.19%
31.85%
Risk weighted capital ratio
55.77%
75.29%
33.03%
Computation of Total Risk Weighted
Assets (“RWA”)
Total operational RWA
Total Risk Weighted Assets
Notes To The Financial Statements
Computation of Capital Ratios
With effect from 1 January 2011, the capital adequacy ratios of the Bank are computed in accordance
with Bank Negara Malaysia’s revised Risk-Weighted Capital Adequacy Framework (RWCAF-Basel II).
The Bank has adopted the Standardised Approach for Credit Risk and Market Risk, and the Basic
Indicator Approach for Operational Risk. The minimum regulatory capital adequacy requirement is
8% for the risk-weighted capital ratio.
ii.
The components of Tier I and Tier II Capital are as follows:
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
134
Citibank berhad
Annual Report 2012
Tier I Capital
Fund allocated
Retained earnings
Less: Deferred tax assets
Total Tier I Capital (Core Capital)
20,000
20,000
20,000
235,098
203,039
174,793
(1,513)
(419)
(953)
253,585
222,620
193,840
37. The operations of Islamic Banking (continued)
q.
Capital adequacy (continued)
ii.
The components of Tier I and Tier II Capital are as follows (continued):
Bank
31.12.2012
31.12.2011
1.1.2011
RM’000
RM’000
RM’000
220
6,386
7,194
253,805
229,006
201,034
Tier II Capital
Collective assessment allowance*
Capital Base
*
Principal
amount
Credit
equivalent
amount
Risk
weighted
assets
RM’000
RM’000
RM’000
One year or less
100,000
100
104
Over one year to five years
500,000
19,854
12,971
-
-
-
Nature of item
Interest/Profit rate related contracts:
Over five years
Debt security contracts and other
commodity contracts:
One year or less
100,000
-
-
Over one year to five years
500,000
19,953
12,991
-
-
-
7,205
3,603
2,613
1,207,205
43,510
28,679
Over five years
Other commitments, such
as formal standby facilities
and credit lines, with an original
maturity of over one year
Total
Annual Report 2012
2012
Citibank berhad
The off-balance sheet exposures and their related counterparty credit risk of the Bank for each reporting
dates are as follows:
Notes To The Financial Statements
Off-balance sheet exposures
1 35
r.
Excludes collective assessment allowance on impaired financing restricted from Tier II Capital by
BNM of RM323,000 (2011 – RM378,000).
37. The operations of Islamic Banking (continued)
r.
Off-balance sheet exposures (continued)
2011
Nature of item
Credit
Principal
amount
Risk
equivalent
amount
weighted
assets
RM’000
RM’000
RM’000
Interest/Profit rate related contracts:
One year or less
-
-
-
Over one year to five years
350,000
9,000
4,200
Over five years
300,000
19,721
11,144
158
32
32
8,834
4,416
3,275
658,992
33,169
18,651
828,235
152,975
152,975
Over one year to five years
-
-
-
Over five years
-
-
-
One year or less
138,758
139
139
Over one year to five years
550,000
20,842
14,546
-
-
-
16,736
8,341
3,312
1,001
-
-
1,534,730
182,297
170,972
Other commitments, such
as formal standby facilities
and credit lines, with an original
maturity of up to one year
Notes To The Financial Statements
Other commitments, such
as formal standby facilities
and credit lines, with an original
maturity of over one year
Total
2010
Foreign exchange related contracts:
One year or less
Interest/Profit rate related contracts:
Over five years
Other commitments, such
1 36
Citibank berhad
Annual Report 2012
as formal standby facilities
and credit lines, with an original
maturity of over one year
Any commitments that are unconditionally
cancelled at any time by the Bank
without prior notice or that effectively
provide for automatic cancellation
due to deterioration in a borrower’s
creditworthiness
Total
37. The operations of Islamic Banking (continued)
s.
Derivative financial instruments
2012
Positive
Negative
2011
2010
Positive Negative
Positive Negative
Contract
fair
fair
Contract
fair
fair
Contract
fair
fair
amount
value
value
amount
value
value
amount
value
value
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
-
-
-
-
-
-
1,521,749
139,724
139,724
1,200,000
2,021
2,021
800,000
2,624
2,624
927,515
6,501
6,501
1,200,000
2,021
2,021
800,000
2,624
2,624
2,449,264
146,225
146,225
Foreign exchange
related contracts:
- Cross currency Islamic
profit rate undertaking
Others
Note 37(f) Note 37(h)
Profit rate risk
Effective
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Trading
Book
Total
Interest
Rate
2012
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
-
-
-
-
3,705
-
91,705
2.08%
-
-
-
-
-
671,823
671,823
2.27%
Assets
Cash and short term funds
88,000
Financial assets
held-for-trading
Financial investments
available-for-sale
Financing, advances and others
- performing
389
- impaired
Deferred tax assets
Others assets
-
1,781
6,005
50,285
-
-
-
58,071
4.47%
2,138
-
3,475
-
1,066
-
382,944
-
(543)
7,614
1,411
7,228
2,021
389,469
7,614
1,411
9,249
4.94%
88,389
3,919
9,480
51,351
382,944
19,415
673,844
1,229,342
Total assets
Annual Report 2012
t.
Note 37(f) Note 37(h)
Citibank berhad
Note 37(f) Note 37(h)
1 37
rate undertaking
Notes To The Financial Statements
- Islamic profit
37. The operations of Islamic Banking (continued)
138
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
t.
Profit rate risk (continued)
Effective
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Book
Total
Rate
2012
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Liabilities and
Islamic Banking funds
Deposits from customers
Other liabilities
754,388
-
5,152
-
60,020
-
87,992
-
-
64,502
2,021
907,552
66,523
Total liabilities
Islamic Banking funds
754,388
-
5,152
-
60,020
-
87,992
-
-
64,502
255,267
2,021
-
974,075
255,267
Total liabilities and Islamic
Banking funds
754,388
5,152
60,020
87,992
-
319,769
2,021 1,229,342
(665,999)
(1,233)
(50,540)
(36,641)
382,944
(300,354)
On-balance sheet profit
sensitivity gap
Trading
Interest
0.81%
671,823
Effective
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Book
Total
Rate
2011
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Assets
Cash and short term funds
Financial investments
available-for-sale
Financing, advances and
other loans
- performing
- impaired
Deferred tax assets
Others assets
Total assets
Trading
Interest
66,000
-
-
-
-
2,863
-
68,863
2.82%
-
-
80,000
351,792
-
-
-
431,792
2.81%
1,446
-
-
422
-
2,065
-
439,481
-
(6,764)
7,510
239
12,969
2,624
436,650
7,510
239
15,593
4.80%
67,446
-
80,422
353,857
439,481
16,817
2,624
960,647
37. The operations of Islamic Banking (continued)
Profit rate risk (continued)
Effective
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Book
Total
Rate
2011
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Liabilities and
Islamic Banking funds
Deposits from customers
Other liabilities
604,061
-
-
8,432
-
48,248
-
-
73,701
2,624
660,741
76,325
Total liabilities
Islamic Banking funds
604,061
-
-
8,432
-
48,248
-
-
73,701
223,581
2,624
-
737,066
223,581
Total liabilities and Islamic
Banking funds
604,061
-
8,432
48,248
-
297,282
2,624
960,647
(536,615)
-
71,990
305,609
439,981
(280,465)
-
Interest
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Book
Total
Rate
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Assets
Cash and short term funds
Financial assets
held-for-trading
Financial investments
available-for-sale
Financing, advances
and other loans
- performing
- impaired
Deferred tax assets
Others assets
Total assets
Trading
Interest
390,000
-
-
-
-
4,301
-
394,301
2.12%
-
-
-
-
-
-
343,179
343,179
13.98%
-
-
-
271,553
-
-
-
271,553
10.57%
214
-
210
-
1,598
-
1,215
-
494,016
-
(7,626)
11,173
1,142
18,426
146,225
489,627
11,173
1,142
164,651
4.36%
390,214
210
1,598
272,768
494,016
27,416
489,404 1,675,626
Annual Report 2012
Effective
Notes To The Financial Statements
1.53%
Citibank berhad
On-balance sheet profit
sensitivity gap
Trading
139
t.
37. The operations of Islamic Banking (continued)
t.
Profit rate risk (continued)
14 0
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Effective
Up To 1
>1-3
> 3 - 12
>1-5
Over 5 Non-interest
Bank
Month
Months
Months
Years
Years
Sensitive
Book
Total
Rate
2010
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
%
Liabilities and
Islamic Banking Funds
Deposits from customers
Other liabilities
995,179
-
5,567
-
49,057
-
61,349
-
-
224,120
- 1,111,152
146,225
370,345
Total liabilities
Islamic Banking Funds
995,179
-
5,567
-
49,057
-
61,349
-
-
224,120
194,129
146,225 1,481,497
194,129
Total liabilities and
Islamic Banking Funds
995,179
5,567
49,057
61,349
-
418,249
146,225 1,675,626
(604,965)
(5,357)
(47,459)
211,419
494,016
(390,833)
On-balance sheet profit
sensitivity gap
Trading
343,179
Interest
0.76%
38. Changes in accounting policies
38.1 Effect of adopting MFRS framework
As stated in Note 1(a), these are the first financial statements of the Group and the Bank prepared in
accordance with MFRSs. Accordingly, the Group and the Bank have applied MFRS First-time Adoption of
Malaysian Financial Reporting Standards upon their adoption of the MFRSs on 1 January 2012. The MFRSs
adoption did not result in any financial impact to the Group and the Bank other than the financial impact
arising from the change in accounting policy for structured products.
The adoption of the MFRSs has resulted in the following changes:
MFRS 139 Financial Instruments: Recognition and Measurement (“MFRS 139”) – accounting policy
on measurement of structured products
Reconciliation of financial position
Group
Note
31.12.2011
1.1.2011
Effect of
Effect of
FRSs
transition
to MFRSs
MFRSs
FRSs
transition
to MFRSs
MFRSs
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
Assets
Cash and short term fund
11,968,440
-
11,968,440
10,481,033
-
10,481,033
811,660
-
811,660
Deposits and placements with banks
and other financial institutions
1,516,673
-
1,516,673
Securities purchased under
resale agreements
1,218,993
-
1,218,993
404,417
-
404,417
Financial assets held-for-trading
2,336,849
-
2,336,849
1,852,463
-
1,852,463
Financial investments
available-for-sale
5,225,508
-
5,225,508
3,105,488
-
3,105,488
Loans, advances and financing
38.1.5(a)
20,357,257
70
20,357,327
19,480,745
129
19,480,874
Other assets
38.1.5(b)
1,306,012
(24)
1,305,988
1,317,760
(44)
1,317,716
398,080
-
398,080
-
-
-
796
-
796
59,300
-
59,300
120,905
-
120,905
108,781
-
108,781
44,449,513
46
44,449,559
37,621,647
85
37,621,732
Statutory deposits with Bank
Negara Malaysia
Deferred tax assets
Plant and equipment
Total assets
Annual Report 2012
38.1.1
Citibank berhad
This change in accounting policy has been accounted retrospectively. The financial impact on the Group’s
and the Bank’s financial position and financial performance are set out in the following tables and
accompanying notes.
141
Upon the transition to MFRS 139 on 1 January 2012, the abovementioned requirement under the
Guidelines had been withdrawn and banking institutions in Malaysia is given an option to designate the
host contract, together with the embedded derivative as fair value through profit or loss, as allowed under
MFRS 139. The Bank had opted to designate the entire structured products as financial liabilities fair value
through profit or loss.
Notes To The Financial Statements
Prior to the transition to MFRS 139, the Bank had adopted the bifurcate method, as required by Bank
Negara Malaysia’s Guidelines on Financial Reporting for Banking Institutions (“the Guidelines”), in
measuring its structure products whereby the host contract will be accounted for at amortised cost whilst
the embedded derivative within the host contract is designated as fair value through profit or loss.
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1 .1
Reconciliation of financial position (continued)
Group
31.12.2011
1.1.2011
Effect of
Effect of
FRSs
transition
to MFRSs
MFRSs
FRSs
transition
to MFRSs
MFRSs
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
30,051,586
19,119
30,070,705
28,788,863
55,127
28,843,990
other financial institutions
7,777,097
-
7,777,097
2,322,925
-
2,322,925
Bills and acceptances payable
Other liabilities
63,761
2,537,714
(15,141)
63,761
2,522,573
47,982
2,846,402
(48,940)
47,982
2,797,462
40,430,158
3,978
40,434,136
34,006,172
6,187
34,012,359
Note
Liabilities
Deposits from customers
38.1.5(c)
142
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements of banks and
Total liabilities
38.1.5(d)
Equity
Share capital
121,697
-
121,697
121,697
-
121,697
Reserves
3,897,658
(3,932)
3,893,726
3,493,778
(6,102)
3,487,676
Total equity attributable to
equity holder of the Bank
4,019,355
(3,932)
4,015,423
3,615,475
(6,102)
3,609,373
44,449,513
46
44,449,559
37,621,647
85
37,621,732
Total liabilities and equity
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Reconciliation of financial position (continued)
Bank
31.12.2011
Note
1.1.2011
Effect of
Effect of
FRSs
transition
to MFRSs
MFRSs
FRSs
transition
to MFRSs
MFRSs
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
11,968,420
-
11,968,420
10,481,013
-
10,481,013
Assets
Cash and short term fund
Deposits and placements with banks
and other financial institutions
1,516,673
-
1,516,673
811,660
-
811,660
Securities purchased under
resale agreements
1,218,993
-
1,218,993
404,417
-
404,417
Financial assets held-for-trading
2,336,849
-
2,336,849
1,852,463
-
1,852,463
-
5,225,508
3,105,488
-
3,105,488
20,357,257
70
20,357,327
19,480,745
129
19,480,874
Other assets
38.1.5(b)
1,306,012
(24)
1,305,988
1,317,760
(44)
1,317,716
398,080
-
398,080
-
-
-
796
-
796
59,300
-
59,300
20
-
20
20
-
20
120,905
-
120,905
108,781
-
108,781
44,449,513
46
44,449,559
37,621,647
85
37,621,732
Statutory deposits with Bank
Negara Malaysia
Deferred tax assets
Investments in subsidiary companies
Plant and equipment
Total assets
Annual Report 2012
5,225,508
38.1.5(a)
Citibank berhad
available-for-sale
Loans, advances and financing
Notes To The Financial Statements
Financial investments
143
38.1 .1
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1 .1
Reconciliation of financial position (continued)
Bank
Note
31.12.2011
1.1.2011
Effect of
Effect of
FRSs
transition
to MFRSs
MFRSs
FRSs
transition
to MFRSs
MFRSs
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
30,051,586
19,119
30,070,705
28,788,863
55,127
28,843,990
Liabilities
Deposits from customers
38.1.5(c)
14 4
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Deposits and placements of banks and
other financial institutions
7,777,097
-
7,777,097
2,322,925
-
2,322,925
Bills and acceptances payable
Other liabilities
63,761
2,537,714
(15,141)
63,761
2,522,573
47,982
2,846,402
(48,940)
47,982
2,797,462
40,430,158
3,978
40,434,136
34,006,172
6,187
34,012,359
Total liabilities
38.1.5(d)
Equity
Share capital
121,697
-
121,697
121,697
-
121,697
Reserves
3,897,658
(3,932)
3,893,726
3,493,778
(6,102)
3,487,676
Total equity attributable to
equity holder of the Bank
4,019,355
(3,932)
4,015,423
3,615,475
(6,102)
3,609,373
44,449,513
46
44,449,559
37,621,647
85
37,621,732
Total liabilities and equity
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Reconciliation of comprehensive income for the year ended 31 December 2011
Group and Bank
Effect of
transition
Note
Revenue
FRSs
to MFRSs
MFRSs
RM’000
RM’000
RM’000
2,402,424
(22,669)
2,379,755
Interest income
38.1.5(e)
1,713,571
(1,021)
1,712,550
Interest expense
38.1.5(f)
(514,644)
24,839
(489,805)
1,198,927
23,818
1,222,745
38.1.5(g)
29,670
7,410
37,080
38.1.5(h)
659,183
(29,058)
630,125
Total net income
1,887,780
2,170
1,889,950
Other operating expenses
(887,846)
-
(887,846)
999,934
2,170
1,002,104
(144,741)
-
(144,741)
855,193
2,170
857,363
(165,330)
-
(165,330)
689,863
2,170
692,033
14,017
-
14,017
14,017
-
14,017
703,880
-
706,050
689,863
-
692,033
703,880
-
706,050
Net interest income
operations
Other operating income
Operating profit
Allowance for loans, advances
and financing
Profit before taxation
Tax expense
Profit for the year
Other comprehensive income, net of tax
Notes To The Financial Statements
Net income from Islamic Banking
Total other comprehensive
income for the year
Total comprehensive income
for the year
Profit for the year attributable to:
Owner of the Bank
Citibank berhad
investments available-for-sale
Annual Report 2012
Net profit on revaluation of financial
Total comprehensive income
attributable to:
Owner of the Bank
1 45
38.1.2
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1.3
Reconciliation of statements of cash flows for 2011
There are no material differences between the statements of cash flows presented under
MFRSs and the statements of cash flows presented under FRSs.
38.1.4
Capital adequacy
31 December 2011
Effect of
transition
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
Paid up ordinary share capital
121,697
-
121,697
Share premium
380,303
-
380,303
3,388,271
(3,932)
3,384,339
121,697
-
121,697
(3,258)
-
(3,258)
4,008,710
(3,932)
4,004,778
253,786
-
253,786
253,786
-
253,786
253,786
-
253,786
(20)
-
(20)
4,262,476
(3,932)
4,258,544
14 6
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Tier I Capital
Retained profits
Other reserves
Less: Deferred tax assets
Total Tier I Capital (Core Capital)
Tier II Capital
Collective assessment allowance
Total Eligible Tier II
Less: Investments in subsidiary
companies
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Capital adequacy (continued)
1 January 2011
Effect of
transition
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
Paid up ordinary share capital
121,697
-
121,697
Share premium
380,303
-
380,303
(6,102)
2,992,306
121,697
-
121,697
Less: Deferred tax assets
(56,822)
-
(56,822)
3,565,283
(6,102)
3,559,181
235,973
-
235,973
235,973
-
235,973
235,973
-
235,973
(20)
-
(20)
3,801,236
(6,102)
3,795,134
Total Tier I Capital (Core Capital)
Tier II Capital
Collective assessment allowance
Total Eligible Tier II
Less: Investments in subsidiary
companies
Annual Report 2012
2,998,408
Other reserves
Citibank berhad
Retained profits
Notes To The Financial Statements
Tier I Capital
1 47
38.1.4
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1.5
Notes to reconciliations
(a) Loans, advances and financing
Group and Bank
31 December 2011
1 January 2011
Effect of
Effect of
transition
Gross loans, advances and financing
transition
FRS
to MFRS
MFRS
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
70 20,942,088
20,079,644
129
20,079,773
20,942,018
148
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Allowance for impaired loans, advances and financing
- Collective assessment allowance
(365,325)
-
(365,325)
(369,357)
-
(369,357)
- Individual assessment allowance
(219,436)
-
(219,436)
(229,542)
-
(229,542)
70 20,357,327
19,480,745
129
19,480,874
Net loans, advances and financing
20,357,257
(b) Other assets
Interest/Income receivable
66,174
(24)
66,150
45,880
(44)
45,836
Other debtors, deposits and prepayments
414,094
-
414,094
264,640
-
264,640
Derivative assets
820,647
-
820,647
1,007,240
-
1,007,240
5,097
-
5,097
-
-
-
1,306,012
(24)
1,305,988
1,317,760
(44)
1,317,716
Tax recoverable
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Notes to reconciliations (continued)
(c) Deposits from customers
(i) By type of deposit
Effect of
transition
FRS
to MFRS
MFRS
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
10,026,162
-
10,026,162
9,869,460
-
9,869,460
Saving deposits
935,372
-
935,372
837,370
-
837,370
Fixed deposits
9,559,230
-
9,559,230
11,583,915
-
11,583,915
Other deposits
Demand deposits
9,444,737
19,119
9,463,856
6,393,953
55,127
6,449,080
Negotiable instruments of deposit
75,917
-
75,917
80,002
-
80,002
Others – cash collateral
10,168
-
10,168
24,163
-
24,163
30,051,586
19,119
30,070,705
28,788,863
55,127
28,843,990
(ii) Maturity structure of fixed deposits, other deposits and negotiable instruments of deposits
Due within six months
15,085,525
Six months to one year
One year to three years
Three years to five years
Over five years
(60)
15,085,465
13,005,161
30,146
13,035,307
3,395,429
878
3,396,307
372,522
13,230
385,752
4,412,942
12,793
4,425,735
338,543
13,158
351,701
226,408
5,071
231,479
101,224
(970)
100,254
-
-
-
200,000
-
200,000
19,079,884
19,119
19,099,003
18,057,870
55,127
18,112,997
Annual Report 2012
1 January 2011
Effect of
transition
Citibank berhad
31 December 2011
Notes To The Financial Statements
Group and Bank
149
38.1.5
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1.5
Notes to reconciliations (continued)
(c) Deposits from customers (continued)
(iii) By type of customer
Group and Bank
Government and statutory bodies
15 0
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Business enterprises
31 December 2011
1 January 2011
Effect of
transition
Effect of
transition
FRS
to MFRS
MFRS
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
177,664
8
177,672
27,368
22
27,390
17,418,167
48
17,418,215
15,065,326
-
15,065,326
Individuals
9,795,376
4,213
9,799,589
10,241,578
34,435
10,276,013
Others
2,660,379
14,850
2,675,229
3,454,591
20,670
3,475,261
30,051,586
19,119
30,070,705
28,788,863
55,127
28,843,990
81,090
(15,141)
65,949
106,294
(48,940)
57,354
1,673,582
-
1,673,582
1,640,664
-
1,640,664
701
-
701
372
-
372
12,391
-
12,391
9,187
-
9,187
-
-
-
45,765
-
45,765
769,950
-
769,950
1,044,120
-
1,044,120
2,537,714
(15,141)
2,522,573
2,846,402
(48,940)
2,797,462
(d) Other liabilities
Interest/Profit payable
Other creditors and accruals
Provision for retirement benefits
Profit Equalisation Reserve
Taxation
Derivative liabilities
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Notes to reconciliations (continued)
(e) Interest income
Group and Bank
31 December 2011
Effect of
transition
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
1,217,598
(1,021)
1,216,577
45,277
-
45,277
Loans and advances
- Interest income other than recoveries
from impaired loans
- Recoveries from impaired loans
-
247,359
50,702
-
50,702
Financial investments available-for-sale
84,187
-
84,187
Securities purchased under resale agreements
28,367
-
28,367
1,673,490
(1,021)
1,672,469
Accretion of discount
40,081
-
40,081
Total interest income
1,713,571
(1,021)
1,712,550
(f) Interest expense
Deposits and placements of banks
and other financial institutions
Deposits from customers
Others
31,535
-
31,535
478,134
(24,839)
453,295
4,975
-
4,975
514,644
(24,839)
489,805
Annual Report 2012
247,359
Citibank berhad
with financial institutions
Financial assets held-for-trading
Notes To The Financial Statements
Money at call and deposit placements
151
38.1.5
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
38.1.5
Notes to reconciliations (continued)
(g) Income from Islamic Banking operations
Group and Bank
31 December 2011
Effect of
transition
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
41,732
-
41,732
Income derived from investment of
depositors’ funds and others
Profit Equalisation Reserve
152
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
Income attributable to depositors
(3,204)
-
(3,204)
(14,240)
7,521
(6,719)
5,382
(111)
5,271
29,670
7,410
37,080
Income derived from investment of
Islamic Banking funds
38. Changes in accounting policies (continued)
38.1 Effect of adopting MFRS framework (continued)
Notes to reconciliations (continued)
(h) Other operating income
Group and Bank
31 December 2011
Effect of
transition
FRS
to MFRS
MFRS
RM’000
RM’000
RM’000
138,542
-
138,542
15,202
-
15,202
6,698
-
6,698
167,817
-
167,817
Commission
Service charges and fees
Guarantee fees
Bankcard fees
Insurance premium and referral
19,578
-
19,578
Other fee income
36,995
-
36,995
384,832
-
384,832
977
-
977
27,571
-
27,571
7,332
-
7,332
28
-
28
35,908
-
35,908
161,915
-
161,915
Trading income:
Unrealised gain from revaluation of
financial assets held-for-trading
Net gain from sales of securities
- Financial assets held-for-trading
- Financial investments available-for-sale
Gross dividends from financial
investments available-for-sale
Notes To The Financial Statements
Fee income:
Other income:
- realised gain
30,393
-
30,393
Gain from derivatives
47,157
(29,058)
18,099
Loss on disposal of plant and equipment
(1,022)
-
(1,022)
238,443
(29,058)
209,385
659,183
(29,058)
630,125
Citibank berhad
- unrealised gain
Annual Report 2012
Foreign exchange profit
153
38.1.5
38. Changes in accounting policies (continued)
38. 2
Other change in accounting policies
On 19 May 2011, Bank Negara Malaysia issued its revised Guidelines on Profit Equalisation Reserve
(“revised PER Guidelines”), which was effective for annual periods beginning on or after 1 July 2011. The
Islamic Banking operation of the Bank has adopted these revised PER Guidelines with effect from 1
January 2012 and has discontinued its existing Profit Equalisation Reserve in its management of
displaced commercial risk.
15 4
Citibank berhad
Annual Report 2012
Notes To The Financial Statements
This change in accounting policy is accounted for prospectively, and hence had no effect on
comparative figures.
Citibank Berhad
(297089M)
45th Floor, Menara Citibank
165 Jalan Ampang
50450 Kuala Lumpur
Tel : 03-2383 8585
Fax : 03-2383 6000
www.citibank.com.my
2012
PILLAR 3
DISCLOSURE
Citibank
Berhad
Contents
3
Introduction
3
Capital Adequacy
9
Capital Structure
10
Risk Management
11
Credit Risk
38
Securitization
38
Market Risk
39
Operational Risk
39
Equities
39
Interest Rate Risk/Rate of Return Risk
in the Banking Book (IRR/RORBB)
40
Profit Sharing Investment Accounts
and Shariah Governance
Attestation by CEO regarding
Basel II – Pillar 3 Disclosure as at
31 December 2012
To the best of my knowledge I confirm that the
Basel II – Pillar 3 disclosure for the financial
period ending 31 December 2012 has been
prepared and submitted to Bank Negara Malaysia
in accordance with the Guideline on Risk Weighted
Capital Adequacy Framework (Basel II) –
Disclosure Requirement (Pillar 3).
002
Citibank berhad
Annual Report 2012
Sanjeev Nanavati
Chief Executive Officer
Citibank Berhad
Date: 29 March 2013
Pillar 3 Disclosure
Introduction
Citibank Berhad was incorporated in Malaysia on
22 April 1994 and has its registered office at 165
Jalan Ampang, 50450 Kuala Lumpur, Malaysia.
The Bank is licensed under the Banking and
Financial Institution Act 1989 (“BAFIA”). The Bank
also operates an Islamic window under the Islamic
Banking Scheme licensed under the BAFIA Act 1989.
The group organization structure of Citibank
Berhad is detailed below:-
100%
Citigroup Nominees
(Asing) Sdn. Bhd.*
* Principal activity is as a nominee company
The subsidiaries of Citibank Berhad are consolidated
using the purchase method of accounting. The basis
of consolidation for financial accounting purposes is
the same as that used for regulatory purposes.
The Capital Requirements Directive (CRD), often
referred to as Basel II, introduced the need for
banks operating under this new legislative
framework to publish certain information relating
to their risk management and capital adequacy.
The disclosure of this information is known as
Pillar 3 and is designed to complement the other
two pillars of the Basel II, namely the minimum
capital requirements (Pillar 1) and the supervisory
review process (Pillar 2). The disclosure has been
prepared in accordance with the Guidelines for
Risk Weighted Capital Adequacy Framework
(Basel II) – Disclosure Requirements (Pillar 3)
(BNM/RH/GL 001-32) and Capital Adequacy
Framework for Islamic Banks (CAFIB) – Disclosure
Requirements (Pillar 3) (BNM/RH/GL 007-18)
issued by Bank Negara Malaysia (“BNM”).
2. Capital Adequacy
The Bank’s capital management is designed to
ensure that it maintains sufficient capital consistent
with the Bank’s risk profile and all applicable
regulatory standards and guidelines. The Bank
adopts a balanced approach in risk taking, balancing
senior management and Board of Directors
oversight with well-defined independent risk
management functions. The Board engages senior
management regularly in key activities that may
impact capital assessment and adequacy.
Other than paid up capital of the Bank, the bank’s
capital is historically generated via retained earnings
from the business.
Annual Report 2012
Citigroup Nominee (Malaysia) Sdn. Bhd.
This Pillar 3 disclosure should be read in conjunction
with Citibank Berhad’s Financial Statements for the
corresponding financial year.
Citibank berhad
100%
Citigroup Nominees
(Tempatan) Sdn. Bhd.*
There are no significant restrictions or major
impediments on transfer of funds or regulatory
capital within the Group.
There were no capital deficiencies in any of
subsidiaries of the Group as at the financial year end.
Citibank Berhad
100%
Since 1 January 2008, the capital adequacy ratios
of the Group and the Bank are computed in
accordance with Bank Negara Malaysia’s revised
Risk-Weighted Capital Adequacy Framework
(RWCAF-Basel II). The Group and the Bank have
adopted Standardized Approach (SA) for Credit
Risk and Market Risk, and the Basic Indicator
Approach (BIA) for Operational Risk.
003
1.
Pillar 3 Disclosure
2. Capital Adequacy (continued)
The risk weighted assets and Capital Adequacy Ratios of Citibank Berhad are as follows:-
Dec 201 2
RM’000
Dec 201 1
RM’000
Computation of Total Risk Weighted Assets (RWA)
Total Credit RWA
Credit RWA Absorbed by PSIA
Total Market RWA
Market RWA Absorbed by PSIA
Total Operational RWA
Large Exposure Risk RWA for Equity Holdings
20,634,205
2,223,864
3,546,462
-
22,272,830
2,019,640
3,525,964
-
Total Risk Weighted Assets
26,404,531
27,818,434
4,269,625
4,484,017
4,004,777
4,258,543
Before deducting proposed dividends
Core Capital Ratio
Risk-Weighted Capital Ratio
16.17%
16.98%
14.40%
15.31%
After deducting proposed dividends / dividend payment
Core Capital Ratio
Risk-Weighted Capital Ratio
14.27%
15.08%
13.32%
14.23%
Computation of Capital Ratios
Tier 1 Capital
Capital Base
004
Citibank berhad
Annual Report 2012
The risk weighted assets and Capital Adequacy Ratios for the Islamic Banking Window are as follows:
Dec 201 2
RM’000
Dec 201 1
RM’000
Computation of Total Risk Weighted Assets (RWA)
Total Credit RWA
Credit RWA Absorbed by PSIA
Total Market RWA
Market RWA Absorbed by PSIA
Total Operational RWA
Large Exposure Risk RWA for Equity Holdings
189,349
192,293
73,421
-
199,050
20,319
84,785
-
Total Risk Weighted Assets
455,063
304,154
Computation of Capital Ratios
Tier 1 Capital
Capital Base
253,585
253,805
222,620
229,006
Core Capital Ratio
Risk-Weighted Capital Ratio
55.73%
55.77%
73.19%
75.29%
The above ratios are well above the regulatory requirements for Total Capital Adequacy Ratios of 8%.
Pillar 3 Disclosure
2. Capital Adequacy (continued)
The following tables details the classes of RWA and the types of exposure of the Bank as at 31 December 2012:
Total On and Off- Balance Sheet
Exposures
2.0
Large Exposures Risk Requirement
3.0
Market Risk
(Standardized Approach)
Interest Rate Risk
Foreign Currency Risk
Equity Risk
Commodity Risk
Options Risk
Inventory Risk
4.0
Operational Risk
(Basic Indicator Approach)
Total RWA
Minimum
Assets
Assets
Capital
Weighted
Absorbed
Gross
Net
Exposures
Exposures
Assets
by PSIA
of PSIA
at 8%
RM’000
RM’000
RM'000
RM'000
RM'000
RM'000
7,455,677
7,455,677
-
-
-
-
7,763,938
7,766,036
2,039,903
-
2,039,903
163,192
3,296,569
7,139,914
8,412,891
15,133
522,123
526,911
3,270,133
6,996,425
8,408,268
15,125
527,538
526,911
3,303,533
5,248,888
3,078,025
22,699
308,426
539,103
-
3,303,533
5,248,888
3,078,025
22,699
308,426
539,103
264,283
419,911
246,242
1,816
24,674
43,128
35,133,155
34,966,112
14,540,576
-
14,540,576
1,163,246
1,621,018
1,621,018
774,652
-
774,652
61,972
6,641,128
17,011
6,634,465
17,011
5,299,256
19,721
-
5,299,256
19,721
423,940
1,578
8,279,157
8,272,494
6,093,629
-
6,093,629
487,490
43,412,312
43,238,606
20,634,205
-
20,634,205
1,650,736
-
-
-
-
-
-
1,518,573
681,547
23,744
-
-
1,518,573
681,547
23,744
-
121,486
54,524
1,900
-
3,546,462
-
3,546,462
283,716
26,404,531
-
26,404,531
2,112,362
Long
Short
position
position
293,185 (202,257)
681,547 (563,210)
62,179 (107,176)
-
Net
position
90,928
118,337
(44,997)
-
after effects Requirement
Annual Report 2012
Credit Risk (Standardized Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates, Insurance Cos
and Securities Firms
Regulatory Retail
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet
Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or
credit cerivatives
Defaulted Exposures
Total for Off- Balance Sheet
Exposures
Weighted
Risk
Citibank berhad
1.0
Total Risk
005
Item Exposure Class
Risk
Weighted
Pillar 3 Disclosure
2. Capital Adequacy (continued)
The following tables details the classes of RWA and the types of exposure of the Islamic Banking Window as at 31 December 2012:
Item Exposure Class
1.0
Credit Risk (Standardized Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates
Residential Mortgages
Other Assets
Defaulted Exposures
Total for On- Balance Sheet
Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or
credit cerivatives
Total for Off- Balance Sheet
Exposures
Total On and Off- Balance Sheet
Exposures
Large Exposures Risk Requirement
3.0
Market Risk
(Standardized Approach)
Benchmark Rate Risk
Foreign Currency Risk
Equity Risk
Commodity Risk
Options Risk
Inventory Risk
006
Citibank berhad
Annual Report 2012
2.0
4.0
Operational Risk
(Basic Indicator Approach)
Total RWA
Risk
Total Risk
Weighted
Weighted
Minimum
Risk
Assets
Assets
Capital
Weighted
Absorbed
Gross
Net
Exposures
Exposures
Assets
by PSIA
of PSIA
at 8%
RM’000
RM’000
RM'000
RM'000
RM'000
RM'000
146,947
146,947
-
-
-
-
59,106
391,386
10,057
5,953
59,106
391,386
10,057
5,953
22,013
139,413
6,366
5,953
-
22,013
139,413
6,366
5,953
1,761
11,153
509
476
613,449
613,449
173,745
-
173,745
13,899
19,953
19,953
12,991
-
12,991
1,039
3,603
3,603
2,613
-
2,613
209
23,556
23,556
15,604
-
15,604
1,248
637,005
637,005
189,349
-
189,349
15,147
-
-
-
-
-
-
192,293
-
-
192,293
-
15,384
-
73,421
-
73,421
5,874
455,063
-
455,063
36,405
Long
position
15,383
-
Short
position
-
Net
position
15,383
-
after effects Requirement
Pillar 3 Disclosure
2. Capital Adequacy (continued)
The following table details the classes of RWA and the types of exposure of the Bank as at 31 December 2011:
Total On and Off- Balance Sheet
Exposures
2.0
Large Exposures Risk Requirement
3.0
Market Risk
(Standardized Approach)
Interest Rate Risk
Foreign Currency Risk
Equity Risk
Commodity Risk
Options Risk
Inventory Risk
4.0
Operational Risk
(Basic Indicator Approach)
Total RWA
Minimum
Assets
Assets
Capital
Weighted
Absorbed
Gross
Net
Exposures
Exposures
Assets
by PSIA
of PSIA
at 8%
RM’000
RM’000
RM'000
RM'000
RM'000
RM'000
9,030,212
9,030,212
-
-
-
-
11,391,310
11,391,310
2,970,273
-
2,970,273
237,622
4,393,905
6,988,379
8,590,218
21,719
537,019
589,414
4,371,348
6,829,936
8,590,218
21,719
537,019
589,414
4,330,295
5,126,118
3,164,308
32,578
304,500
603,041
-
4,330,295
5,126,118
3,164,308
32,578
304,500
603,041
346,424
410,089
253,145
2,606
24,360
48,243
41,542,176
41,361,176
16,531,114
-
16,531,114
1,322,489
1,914,337
1,914,337
1,040,746
-
1,040,746
83,260
5,994,435
18,445
5,988,951
18,445
4,679,442
21,528
-
4,679,442
21,528
374,355
1,722
7,927,218
7,921,734
5,741,716
-
5,741,716
459,337
49,469,393
49,282,910
22,272,830
-
22,272,830
1,781,826
-
-
-
-
-
-
1,590,904
405,320
23,416
-
1,590,904
405,320
23,416
127,272
32,426
1,873
3,525,964
-
3,525,964
282,077
27,818,434
-
27,818,434
2,225,474
Long
Short
position
position
317,676 (217,840)
170,564 (405,320)
23,630
(3,731)
Net
position
99,836
(234,756)
19,900
after effects Requirement
Annual Report 2012
Credit Risk (Standardized Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates, Insurance Cos
and Securities Firms
Regulatory Retail
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet
Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or
credit cerivatives
Defaulted Exposures
Total for Off- Balance Sheet
Exposures
Weighted
Risk
Citibank berhad
1.0
Total Risk
007
Item Exposure Class
Risk
Weighted
Pillar 3 Disclosure
2. Capital Adequacy (continued)
The following tables details the classes of RWA and the types of exposure of the Islamic Banking Window as at 31 December 2011:
Item Exposure Class
1.0
Credit Risk (Standardized Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks
Corporates
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet
Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or
credit cerivatives
Defaulted exposures
Total for Off- Balance Sheet
Exposures
Total On and Off- Balance Sheet
Exposures
Large Exposures Risk Requirement
3.0
Market Risk
(Standardized Approach)
Benchmark Rate Risk
Foreign Currency Risk
Equity Risk
Commodity Risk
Options Risk
Inventory Risk
008
Citibank berhad
Annual Report 2012
2.0
4.0
Operational Risk
(Basic Indicator Approach)
Total RWA
Risk
Total Risk
Weighted
Weighted
Minimum
Risk
Assets
Assets
Capital
Weighted
Absorbed
Gross
Net
Exposures
Exposures
Assets
by PSIA
of PSIA
at 8%
RM’000
RM’000
RM'000
RM'000
RM'000
RM'000
502,232
842
443,796
58
11,213
5,843
502,232
842
443,796
58
11,213
5,843
842
165,277
88
8,350
5,843
-
842
165,277
88
8,350
5,843
67
13,222
7
668
467
963,984
963,984
180,400
-
180,400
14,432
28,721
28,721
15,344
-
15,344
1,228
4,447
1
4,447
1
3,305
1
-
3,305
1
264
-
33,169
33,169
18,651
-
18,651
1,492
997,153
997,153
199,050
-
199,050
15,924
-
-
-
-
-
-
20,319
-
-
20,319
-
1,625
-
84,785
-
84,785
6,783
304,154
-
304,154
24,332
Long
position
1,625
-
Short
position
-
Net
position
1,625
-
after effects Requirement
Pillar 3 Disclosure
3. Capital Structure
The following details the capital structure for the Group and Bank:
Group and Bank
Dec 2012
Dec 201 1
RM’000
RM’000
Tier I Capital
Paid Up Share Capital
Share Premium
Retained earnings
Other Reserves
121,697
380,303
3,662,946
121,697
121,697
380,303
3,384,339
121,697
less: Deferred Tax Assets
4,286,643
(17,018)
4,008,036
(3,259)
Total Tier 1 Capital
4,269,625
4,004,777
Tier II Capital
Collective assessment allowance for impaired loans and financing
214,411
253,786
Total Tier II Capital
214,411
253,786
Total Eligible Tier 2 Capital
less: Investment in Subsidiaries
214,411
(20)
253,786
(20)
4,484,017
4,258,543
Capital Base
Total Tier 1 Capital
Tier II Capital
Collective assessment allowance for impaired financing, advances and other loans
Capital Base
20,000
235,098
-
20,000
203,039
-
(1,513)
(419)
253,585
222,620
220
6,386
253,805
229,006
The capital structure of the Group and the Bank as disclosed above does not have any specific terms and conditions
attached to them.
Citibank berhad
less: Deferred Tax Assets
Dec 201 1
RM’000
009
Tier I Capital
Fund allocated
Retained earnings
Other reserves
Dec 2012
RM’000
Annual Report 2012
The following details the capital structure for the Islamic Banking Window:
Pillar 3 Disclosure
4. Risk Management
A sound risk management process, strong
internal controls and well documented policies
and procedures are the foundation for ensuring
the safety and soundness of the Bank. The Board
and Senior Management ensure that capital
levels are adequate for the Bank’s risk profile.
They also ensure that the risk management and
control processes are appropriate in the light of
the Bank’s risk profile and business plans.
010
Citibank berhad
Annual Report 2012
The Bank has put in place a risk management
system, which leverages in part the risk management
framework developed by Citigroup, to oversee and
monitor material risks faced by the Bank, including
credit, market and operational risks. The Audit
Committee assists the Board in overseeing legal,
compliance and operational risks and is supported
by the Bank’s audit and compliance functions. The
Audit Committee will review the audit findings of
the compliance and internal audit functions at
its quarterly meetings, including management’s
response to the audit findings and progress of
the related corrective action plans. The Bank’s
management, Audit Committee and relevant bank
personnel will update the Board during its quarterly
meetings about pertinent operational, legal and
compliance risk management issues which have
arisen during the quarter such as reporting risk
positions and performance, capital requirements,
risk and control limits.
The Bank has a Risk Management Committee,
which together with the Audit Committee and
management team assists the Board in fulfilling
its oversight responsibility relating to the
establishment and operation of a risk management
system. The Risk Management Committee has
particular oversight of credit, market and liquidity
risk; reviews acquisition and disposal of large
securities positions of the Bank; and monitors the
progress of the Basel II implementation.
The compositions of the Audit Committee and
Risk Management Committee are disclosed in the
Statement of Corporate Governance in Citibank
Berhad’s Annual Report.
Strategies & Policies
The Bank's risk management framework recognizes
the diversity of the organization's activities by
balancing the Board's strong supervision with
well-defined independent risk management
functions within each business area.
The risk management framework is firmly based
on the following six principles, applicable across
the board for all businesses and risk types:
•
•
•
•
•
•
Risk management policies are integrated
with business plans and strategies;
All risks and returns resulting from this
are owned and managed by an
accountable business unit;
All risks are managed within a limited
framework while the risk limits are
endorsed by the business management
and approved by an independent risk
management organization;
All risk management policies are clearly
and formally documented;
All risks are measured using well defined
methodologies, including stress testing;
and
All risks are comprehensively reported
across the organization.
Risks are regularly reviewed by independent
risk managers, senior business managers and
whenever appropriate, by the Board of Directors
themselves.
The independent risk managers are responsible
for establishing and implementing risk
management policies and practices within their
business units while ensuring consistency with
Citi’s corporate standards.
The independent risk managers are ultimately
accountable to the Board and on a day-to-day
basis; they are also individually responsible for
meeting and responding to the needs of their
respective business units, apart from overseeing
their existing portfolio risks.
To assess adequacy of the Bank’s capital to
support its current and future activities, the
Bank has identified material risks applicable
to the Citibank Berhad’s lines of business, in
accordance with the Guidelines for Risk
Weighted Capital Adequacy Framework (Basel
II) – Internal Capital Adequacy Assessment
Process (Pillar 2) issued by BNM (BNM/RH/GL
001-33). Material risks are regularly reviewed
by senior management and presented to the
Board of Directors. For the purpose of Pillar 3,
the following material risks are discussed in
this document: Credit Risk, Market Risk
(comprising Price Risk, Liquidity Risk, Interest
Rate Risk in the Banking Book (“IRRBB”)) and
Operational Risk.
Pillar 3 Disclosure
5.1 Credit Risk management policy
While business managers and independent
risk management are jointly responsible for
managing the risk/return tradeoffs as well as
establishing limits and risk management
practices, the origination and approval roles
are clearly defined and segregated.
In addition to conforming to established
corporate standards, independent credit risk
management is responsible for establishing
local policies that comply with local regulations
and any other relevant legal requirements.
These standards will cover credit origination,
measurement and documentation as well
as problem recognition, classification and
remedial actions. In addition, specific write-off
criterion is set according to Citigroup’s
corporate requirements or the BNM guideline
BNM/RH/GC-007-17 on Classification and
Impairment Provisions for Loans/Financing,
whichever is more stringent.
Independent credit risk management is also
responsible for implementing portfolio limits,
including obligor limits through risk rating,
maturity and business segments to ensure
diversification of portfolio. The Risk management
team also evaluates the immediate to long
term risks for all products and segments thus
providing for profitability on a long term
sustainable basis.
Continuous monitoring of credit behavior
aided by sophisticated debt rating modules,
plus portfolio delinquency performance
allows independent credit risk management
to constantly assess the health of the credit
portfolio.
A loan is impaired when there is objective
evidence that demonstrates that a loss event
has occurred after the initial recognition of the
loan, and that the loss event has an impact on
the future cash flows of the loan.
Objective evidence that a loan or a loan portfolio
is impaired includes observable data that could
include the following loss events:
•
•
•
•
significant financial difficulty of the issuer
or obligor;
a breach of contract, such as a default or
delinquency in interest or principal
payments;
it becomes probable that the borrower will
enter bankruptcy or other financial
reorganisation;
observable data relating to a portfolio of
financial assets such as :
i)
adverse changes in the payment status
of borrowers in the portfolio; and
ii) national or local economic conditions
that correlate with defaults on the
assets in the portfolio.
Under the revised policy issued by BNM on
Classification and Impairment Provisions for
Loan Financing, if the repayment conduct of the
loan is past due for more than 90 days of either
principal, interest or both, the loan shall be
classified as impaired. The Bank applies this
policy in addition to the above when determining
if a loan is impaired.
5.3 Impairment Provision
The Bank complies with the Malaysian
Financial Reporting Standards (“MFRS”) 139,
Financial Instruments: Recognition and
Measurement for loan impairment.
5.3.1 Individual Impairment
The Bank assesses whether objective
evidence of impairment exists
individually for financial assets that
are individually significant. For financial
assets that are not individually
significant assessment for impairment is
done individually and/or collectively. If
the Group determines that no objective
Annual Report 2012
Credit risk arises in lending, trading and
derivatives transactions, securities transactions,
settlement and when the Bank acts as an
intermediary on behalf of its clients and other
third parties. For the retail bank, credit risk arises
by way of the borrower being unable to fulfill his
contractual commitments thereby resulting in
causing credit losses to the Bank.
Definition of past due loans are disclosed in Note
2(g) of the financial statements.
Citibank berhad
Credit risk is the potential for financial loss resulting
from the failure of a borrower or counter party to
honor its financial or contractual obligations.
5.2 Definition of past due and impaired loans
011
5. Credit Risk
Pillar 3 Disclosure
5. Credit Risk (continued)
5.3 Impairment Provision (continued)
5.3.1
Individual Impairment (continued)
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. Assets that are individually
assessed for impairment and for which
an impairment loss is or continues to
be recognised are not included in a
collective assessment of impairment.
Impairment losses are measured as
the difference between the carrying
amount of the financial assets and the
present value of estimated cash flows
discounted at the assets’ original
effective interest rate.
012
Citibank berhad
Annual Report 2012
5.3.2 Collective Impairment
For the purposes of the collective
evaluation of impairment, financial
assets are grouped on the basis of similar
credit risk characteristics by using a
grading process that considers obligor
type, industry, geographical location,
collateral type, past-due status and other
relevant factors. These characteristics
are relevant to the estimation of future
cash flows for groups of such assets by
being indicative of the likelihood of
receiving all amounts due under a facility
according to the contractual terms of the
assets being evaluated.
In assessing the collective impairment,
the Bank uses methods as listed below
depending on the loan portfolio:
i)
Statistical modeling of historical
trends of the probability of default,
timing of recoveries and the amount
of loss incurred, adjusted for
management’s judgement as to
whether the current economic and
credit conditions are such that the
actual losses incurred are likely to
be greater or less than suggested
historical modeling. Default rates, loss
rates and expected timing of future
recoveries are regularly benchmarked
against actual outcomes to ensure
they remain appropriate;
ii) Based upon historical delinquency
flow rates, charge-off statistics
and loss severity, adjusted for
management’s judgement as to
whether current economic and credit
conditions are such that actual losses
are likely to be greater or less than
suggested by historical modeling.
5.4 Distribution of loans, advances and financing
The following information on loans, advances
and financing are disclosed in Note 7 in the
financial statement as at 31 December 2012:1) Geographical distribution
2) Sector
3) Residual contractual maturity
5.5 Past due loans, individual impairment
provision, collective impairment provision,
charges for individual impairment provision
and write offs by sector
The following tables detail past due loans,
individual impairment provision, collective
impairment provision, charges for individual
impairment provision and write offs by sector
as at 31 December 2012:The information on impaired loans by
geographic area and reconciliation of changes
in loan impairment provisions are disclosed in
Note 8.
5.5.1 Past due loans
The following table details past due
loans by sector of the Group and the
Bank as at 31 December 2012:
Primary agriculture
Mining and quarrying
Manufacturing
Electricity, gas, water
Construction
Wholesale, retail trade, restaurant
and hotels
Transport, storage and communication
Finance, insurance, real estate, and
business services
Education, health, household & others
Community, social and personal
services
Total
RM'000
1,200
572
1,820
336
2,187
2,137
10,760
1,909,061
1,928,073
Pillar 3 Disclosure
5. Credit Risk (continued)
5.5 Past due loans, individual impairment provision,
collective impairment provision, charges for
individual impairment provision and write offs by
sector (continued)
5.5.1
Past due loans (continued)
The following table details past due
loans by sector of the Islamic Banking
Window as at 31 December 2012:
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
Education, health, household & others
Community, social and personal
services
Total
The following table details past due
loans by sector of the Islamic Banking
Window as at 31 December 2011:
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
Education, health, household & others
Total
60,454
60,454
5.5.2 Individual impairment provision
The following table details individual
impairment provision by sector of the
Group and the Bank as at 31 December
2012:
57,568
57,568
RM'000
RM'000
Mining and quarrying
Manufacturing
Electricity, gas, water
2,588
553
1,592
370
Manufacturing
Electricity, gas, water
12,863
Wholesale, retail trade, restaurant
and hotels
15,982
Transport, storage and communication
Finance, insurance, real estate, and
business services
2,549
Education, health, household & others
Wholesale, retail trade, restaurant
and hotels
8,757
Community, social and personal
services
Finance, insurance, real estate, and
business services
Education, health, household & others
Community, social and personal
services
Total
243
-
Construction
Construction
Transport, storage and communication
24
33,275
Total
649
7,393
128,653
140
205,769
7,129
1,695,565
1,719,346
013
Primary agriculture
Mining and quarrying
Annual Report 2012
The following table details past due
loans by sector of the Group and the
Bank as at 31 December 2011:
6,790
Citibank berhad
Primary agriculture
Pillar 3 Disclosure
5. Credit Risk (continued)
The following table details individual
impairment provision by sector of the
Islamic Banking Window as at 31
December 2011:
5.5 Past due loans, individual impairment provision,
collective impairment provision, charges for
individual impairment provision and write offs by
sector (continued)
RM'000
Primary agriculture
5.5.2
Individual impairment provision (continued)
The following table details individual
impairment provision by sector of the
Islamic Banking Window as at 31
December 2012:
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
1,377
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
Education, health, household & others
Community, social and personal
services
Total
-
Mining and quarrying
Manufacturing
1,380
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
Education, health, household & others
739
Community, social and personal
services
Total
2,119
5.5.3 Collective impairment provision
767
The following table details collective
impairment provision by sector of the
Group and the Bank as at 31 December
2012:
2,144
Citibank berhad
Annual Report 2012
RM'000
The following table details individual
impairment provision by sector of the
Group and the Bank as at 31 December
2011:
RM'000
Primary agriculture
Mining and quarrying
Manufacturing
Electricity, gas, water
24
31,645
-
Mining and quarrying
Manufacturing
Electricity, gas, water
Construction
Wholesale, retail trade, restaurant
and hotels
Transport, storage and communication
Finance, insurance, real estate, and
business services
Construction
13,426
Education, health, household & others
Wholesale, retail trade, restaurant
and hotels
16,301
Community, social and personal
services
Transport, storage and communication
Finance, insurance, real estate, and
business services
014
6,793
Primary agriculture
Education, health, household & others
Community, social and personal
services
Total
654
8,270
142,323
219,436
Total
1,111
317
9,862
288
51
2,917
4,230
1,781
336,507
357,064
Pillar 3 Disclosure
5. Credit Risk (continued)
The following table details collective
impairment provision by sector of the
Islamic Banking Window as at 31
December 2011:
5.5 Past due loans, individual impairment provision,
collective impairment provision, charges for
individual impairment provision and write offs by
sector (continued)
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
-
Transport, storage and communication
-
Mining and quarrying
-
Manufacturing
-
Finance, insurance, real estate, and
business services
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
RM'000
Primary agriculture
Education, health, household & others
Community, social and personal
services
Total
Education, health, household & others
Community, social and personal
services
Total
6,764
The following table details charges for
individual impairment provision by
sector of the Group and the Bank as at
31 December 2012:
543
RM'000
Primary agriculture
277
Mining and quarrying
423
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
17,412
Transport, storage and communication
Electricity, gas, water
2,244
Finance, insurance, real estate, and
business services
Wholesale, retail trade, restaurant
and hotels
Transport, storage and communication
Finance, insurance, real estate, and
business services
Education, health, household & others
Community, social and personal
services
Total
179
Education, health, household & others
4,021
336
5,034
Electricity, gas, water
Manufacturing
Construction
-
5.5.4 Charges for individual impairment
provision
543
The following table details collective
impairment provision by sector of the
Group and the Bank as at 31 December
2011:
6,764
Community, social and personal
services
Total
12
5,911
-
Annual Report 2012
The following table details collective
impairment provision by sector of the
Islamic Banking Window as at 31
December 2012:
Citibank berhad
Collective impairment provision (continued)
10,957
17,235
323,198
365,325
015
5.5.3
Pillar 3 Disclosure
5. Credit Risk (continued)
The following table details charges for
individual impairment provision by
sector of the Islamic Banking Window
as at 31 December 2011:
5.5 Past due loans, individual impairment provision,
collective impairment provision, charges for
individual impairment provision and write offs by
sector (continued)
5.5.4
RM'000
Primary agriculture
-
Charges for individual impairment provision
(continued)
Mining and quarrying
-
Manufacturing
-
The following table details charges for
individual impairment provision by
sector of the Islamic Banking Window
as at 31 December 2012:
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
RM'000
Finance, insurance, real estate, and
business services
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Community, social and personal
services
Construction
-
Total
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
Education, health, household & others
Community, social and personal
services
Total
Education, health, household & others
5.5.5 Write offs
-
The following table details write offs
by sector of the Group and the Bank
as at 31 December 2012:
41
-
RM'000
Primary agriculture
Citibank berhad
Annual Report 2012
Mining and quarrying
The following table details charges for
individual impairment provision by
sector of the Group and the Bank as at
31 December 2011:
RM'000
Mining and quarrying
Manufacturing
Electricity, gas, water
Construction
Wholesale, retail trade, restaurant
and hotels
016
Transport, storage and communication
Finance, insurance, real estate, and
business services
Education, health, household & others
Community, social and personal
services
Total
40
41
Primary agriculture
40
Manufacturing
Electricity, gas, water
Wholesale, retail trade, restaurant
and hotels
319
-
Finance, insurance, real estate, and
business services
602
15,457
16,888
563
Transport, storage and communication
-
1,748
Construction
829
-
Education, health, household & others
Community, social and personal
services
Total
5
889
1,322
4,847
Pillar 3 Disclosure
5. Credit Risk (continued)
5.5 Past due loans, individual impairment provision,
collective impairment provision, charges for
individual impairment provision and write offs by
sector (continued)
Write offs (continued)
The following table details write offs
by sector of the Islamic Banking
Window as at 31 December 2012:
RM'000
Primary agriculture
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
Education, health, household & others
Community, social and personal
services
-
Mining and quarrying
-
Manufacturing
-
Electricity, gas, water
-
Construction
-
Wholesale, retail trade, restaurant
and hotels
-
Transport, storage and communication
-
Finance, insurance, real estate, and
business services
-
Education, health, household & others
6
Community, social and personal
services
Total
6
15
-
RM'000
Primary agriculture
Mining and quarrying
Manufacturing
Electricity, gas, water
Construction
Wholesale, retail trade, restaurant
and hotels
Transport, storage and communication
261
1,578
3,764
518
8
Finance, insurance, real estate, and
business services
618
Education, health, household & others
829
Community, social and personal
services
7,577
Annual Report 2012
15
The following table details write offs
by sector of the Group and the Bank
as at 31 December 2011:
Total
Primary agriculture
Citibank berhad
Total
RM'000
017
5.5.5
The following table details write offs
by sector of the Islamic Banking
Window as at 31 December 2011:
Pillar 3 Disclosure
5. Credit Risk (continued)
5.6 External Credit Assessment Institutions (ECAIs)
In terms of assessing Counterparty Credit Risk, Citibank Berhad uses ratings by global agencies Fitch
Ratings, Moody’s Investor Services, and Standard & Poor’s. Citibank Berhad also uses ratings from local
agencies Rating Agency Malaysia (RAM) Berhad and Malaysian Rating Corporation (MARC) Berhad.
The Bank uses a regional system called Asia Pacific Reveleus to calculate its risk weighted assets and this system
receives its external ratings from a credit system that has a feed for external ratings from approved ECAIs. The
mapping of external ratings to the respective counterparties and exposures is automated in the system.
The Bank uses issue-specific ratings for securities. In general, where no issue-specific rating exists, the
credit rating assigned to the counterparty of a particular credit exposure is used. Where an exposure has
neither an issue-specific rating nor counterparty rating, it is deemed as unrated.
The alignment of the alphanumerical scale of each recognized ECAIs used by Citibank Berhad is detailed in
the table below:
CREDIT QUALITY GRADES AND ELIGIBLE ECAIs
Credit Quality Grade
1
2
3
4
5
6
Unrated
AAA
A+
BBB+
BB+
B+
CCC+
Unrated
Reveleus CQG (Basel Credit Ratings)
Rating Source
Central
018
Citibank berhad
Annual Report 2012
Central
Central
Rating Agencies
Fitch Ratings
Moody's Investor Services
Standard & Poor's
AAA
AA+
AA
AA-
Aaa
Aa1
Aa2
Aa3
A+
A
A-
A1
A2
A3
BBB+
BBB
BBB-
Baa1
Baa2
Baa3
BB+
BB
BB-
Ba1
Ba2
Ba3
B+
B
B-
CCC+
CCC
CCCCC
C
D
B1
B2
B3
Caa1
Caa2
Caa3
Ca
C
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
B+
B
B-
CCC+
CCC
CCCCC
C
D
Local
Rating Agency
Malaysia Berhad (RAM)
AAA
Aa1
Aa2
Aa3
A1
A2
A3
BBB1
BBB2
BBB3
BB1
BB2
BB3
B1
B2
B3
C1
C2
C3
D
Local
Malaysian Rating
Corporation Berhad (MARC)
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
B+
B
B-
C
D
Pillar 3 Disclosure
5. Credit Risk (continued)
The following tables show Citibank Berhad’s rated and unrated exposures according to ratings by ECAIs:
Ratings of Corporates by Approved ECAIs
December 2012
Group and Bank
Ratings of Corporates by Approved ECAIs (amounts in RM'000)
Moodys
Aaa to Aa3
A1 to A3
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-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
B1 to C
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
-
-
-
-
-
-
71
15,956
7,042
-
21,528
44,597
6,546
263,945
235
-
5,851,517
6,122,243
Exposure Class
Public Sector Entities
(applicable for entities risk
weighted based on their
external ratings as corporates)
Insurance Cos, Securities
Firms and Fund Managers
Corporates
Total
Islamic Banking Window
Aaa to Aa3
A1 to A3
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-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
B1 to C
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
-
-
-
-
-
-
Insurance Cos, Securities
Firms and Fund Managers
-
-
-
-
-
-
Corporates
-
-
-
-
-
-
Exposure Class
Entities
(applicable for entities risk
weighted based on their
external ratings as corporates)
Total
Citibank berhad
Moodys
Annual Report 2012
Ratings of Corporates by Approved ECAIs (amounts in RM'000)
019
5.6.1
Pillar 3 Disclosure
5. Credit Risk (continued)
The following tables show Citibank Berhad’s rated and unrated exposures according to ratings by ECAIs: (continued)
5.6.1
Ratings of Corporates by Approved ECAIs (continued)
December 2011
Group and Bank
Ratings of Corporates by Approved ECAIs (amounts in RM'000)
Moodys
Aaa to Aa3
A1 to A3
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-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
B1 to C
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ toBB-
B+ to D
Unrated
-
-
-
-
-
-
Insurance Cos, Securities
Firms and Fund Managers
4,262
12,369
-
-
26,370
43,001
Corporates
20,169
24,103
4,211
-
6,461,548
6,510,031
Exposure Class
Public Sector Entities
(applicable for entities risk
weighted based on their
external ratings as corporates)
Total
Islamic Banking Window
020
Citibank berhad
Annual Report 2012
Ratings of Corporates by Approved ECAIs (amounts in RM'000)
Moodys
Aaa to Aa3
A1 to A3
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-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
B1 to C
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
B+ to D
Unrated
-
-
-
-
-
-
Insurance Cos, Securities
Firms and Fund Managers
-
-
-
-
-
-
Corporates
-
-
-
-
874
874
Exposure Class
Public Sector Entities
(applicable for entities risk
weighted based on their
external ratings as corporates)
Total
Pillar 3 Disclosure
5. Credit Risk (continued)
5.6.2
Short Term Ratings of Banking Institutions and Corporates by Approved ECAIs
This disclosure does not apply to Citibank Berhad as it uses long term ratings for all exposures.
Ratings of Sovereigns and Central Banks by Approved ECAIs
December 2012
Group and Bank
Ratings of Sovereign/Central Banks by Approved ECAIs (amounts in RM'000)
Exposure Class
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Total
-
7,484,617
-
-
-
-
7,484,617
Sovereigns/
Central Banks
Islamic Banking Window
Sovereigns/
Central Banks
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Total
-
146,947
-
-
-
-
146,947
Citibank berhad
Exposure Class
Moodys
Annual Report 2012
Ratings of Sovereign/Central Banks by Approved ECAIs (amounts in RM'000)
021
5.6.3
Pillar 3 Disclosure
5. Credit Risk (continued)
5.6.3
Ratings of Sovereigns and Central Banks by Approved ECAIs (continued)
December 2011
Group and Bank
Ratings of Sovereign/Central Banks by Approved ECAIs (amounts in RM'000)
Exposure Class
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Total
-
9,050,336
-
-
-
-
9,050,336
Sovereigns/
Central Banks
Islamic Banking Window
Ratings of Sovereign/Central Banks by Approved ECAIs (amounts in RM'000)
Exposure Class
022
Citibank berhad
Annual Report 2012
Sovereigns/
Central Banks
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Total
-
502,232
-
-
-
-
502,232
Pillar 3 Disclosure
5. Credit Risk (continued)
Ratings of Banking Institutions by Approved ECAIs
December 2012
Group and Bank
Ratings of Banks, Development Financial Institutions and MDBs by Approved ECAIs (amounts in RM'000)
Exposure Class
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1+ to BB3
BB1 to B3
C1 to D
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
C+ to D
Unrated
1,327,558
6,902,723
49,512
501
38
Banks, Development
Financial Institutions
and MDBs
Total
9,228,616 17,508,948
Islamic Banking Window
Ratings of Banks, Development Financial Institutions and MDBs by Approved ECAIs (amounts in RM'000)
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1+ to BB3
BB1 to B3
C1 to D
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
C+ to D
Unrated
45,084
-
-
-
-
40,507
Total
85,591
Annual Report 2012
Banks, Development
Financial Institutions
and MDBs
Aaa to Aa3
Citibank berhad
Exposure Class
Moodys
023
5.6.4
Pillar 3 Disclosure
5. Credit Risk (continued)
5.6.4
Ratings of Banking Institutions by Approved ECAIs (continued)
December 2011
Group and Bank
Ratings of Banks, Development Financial Institutions and MDBs by Approved ECAIs (amounts in RM'000)
Exposure Class
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
BB1 to B3
C1 to D
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
C+ to D
Unrated
1,117,837
11,192,600
270,715
632
-
666,160
Banks, Development
Financial Institutions
and MDBs
Total
13,247,944
Islamic Banking Window
Ratings of Banks, Development Financial Institutions and MDBs by Approved ECAIs (amounts in RM'000)
024
Citibank berhad
Annual Report 2012
Exposure Class
Banks, Development
Financial Institutions
and MDBs
Moodys
Aaa to Aa3
A1 to A3
Baa1 to Ba3
Ba1 to B3
Caa1 to C
Unrated
S&P
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
Fitch
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
CCC+ to D
Unrated
RAM
AAA to AA3
A to A3
BBB1 to BB3
BB1 to B3
C1 to D
Unrated
MARC
AAA to AA-
A+ to A-
BBB+ to BB-
BB+ to B-
C+ to D
Unrated
-
16,721
12,000
-
-
-
Total
28,721
Pillar 3 Disclosure
Citibank Berhad uses eligible guarantees and
financial collaterals which are primarily cash
and equity for credit risk mitigation. At
present, the Bank does not make use of credit
derivatives and on and off-balance sheet
netting in its credit risk mitigation process.
For the purpose of calculating and assessing
Net Credit RWA, the Bank takes into account
eligible collaterals pledged by the customers
with the Bank, that are primarily cash
deposits and equities.
The Bank’s Credit Department is guided by its
Credit Policy and Procedures for collateral
valuation and management. It marks to market
the CRM eligible financial collateral value on a
daily/weekly/monthly (whichever is applicable)
basis. Collateral valuations and re-valuations
must be completed daily for SFTs, OTC and
Margin Lending by the various Operations
Units and Collateral/Margin Departments.
Collateral haircuts are applied in a number of
circumstances such as where there is a
material positive correlation between the
credit quality of the counterparty and the
value of the collateral, or where there are
currency or maturity mismatches. The Bank
has appropriately sound and well managed
systems and procedures for requesting and
promptly receiving additional collateral for
transactions whose terms require
maintenance of collateral values at specified
thresholds as documented in the respective
legal agreements.
As the end of December 2012, the Bank’s
gross credit exposure is RM 43,412 mil, of
which RM 287 mil was offset by CRM. After
applying required risk weights, the Bank’s
Credit RWA is RM 20,634 mil. Given the
immateriality of CRM, which is 1% of total
credit exposure, asset class breakdowns
are not provided and for the same reason,
there is no CRM risk concentration
exposure to the Bank.
Annual Report 2012
Citibank Berhad uses credit risk mitigation
for the following exposure classes:
1) Corporates
2) Regulatory Retail
Citibank berhad
5.7 Credit Risk Mitigation
The Bank has procedures to ensure that
appropriate information is available to
support the collateral process and to make
timely and accurate margin calls feed
correctly into the Margin applications from
upstream systems. These also provide a daily
credit exposure report. There are also
reports identifying counterparties that have
not met their requirement for additional
collateral to satisfy specified initial margin
amount and variation margin thresholds.
In addition, there is risk reporting of
counterparty exposures at an individual and
an aggregated level.
025
5. Credit Risk (continued)
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table shows the total exposure amounts after credit risk mitigation, for the financial year
ended 31 December 2012:
December 2012
Group and Bank
026
Citibank berhad
Annual Report 2012
Risk
Weights
0%
10%
20%
35%
50%
75%
90%
100%
110%
125%
135%
150%
270%
350%
400%
625%
937.5%
1250%
Exposures after Netting and Credit RIsk Mitigation
Insurance
Sovereigns
Banks,
Cos,
Higher
Specialised
& Central PSEs
MDBs
Securities Corporates Regulatory Residental Risk
Other
Financing/ Securitization Equity
Banks
and FDIs Firms &
Retail
Mortgages Assets Assets
Investment
Fund
Managers
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
7,484,617
-
- 7,067,898
- 2,161,590
97,675
968
-
Total
Exposures 7,484,617
- 9,328,131
Risk-Weighted
Assets by
- 2,593,502
Exposures
Average Risk
Weight
0% 0%
28%
Deduction from
Capital Base
-
Total
Exposures
Total Risk
after Netting
Weighted
and Credit
Assets
Risk Mitigation
RM’000
RM’000
71
6,546
15,956
52,478
484
- 10,704,611
12,405 5,616,620
103,731
3,042
16,887
-
7,834,557
469,458
598,805
427,704
3,578
-
30,886
-
213,696
52,576
308,861
-
-
-
-
7,698,313
7,127,091
7,834,557
2,699,966
11,303,416
6,566,996
55,361
-
1,425,418
2,742,095
1,349,983
8,477,562
6,566,996
83,042
-
28,432 5,678,686 10,825,713
9,334,102
30,886 575,133
-
-
-
43,285,700
20,645,096
20,397 5,648,731
8,157,762
3,858,999
46,329 319,376
-
-
-
20,645,096
-
72%
99%
75%
41%
150%
56%
0%
0%
0%
48%
0%
-
-
-
-
-
-
-
-
-
-
-
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table details the total exposure amounts of the Islamic Banking Window after credit risk
mitigation as at 31 December 2012:
December 2012
Islamic Banking Window
-
Total
146,947 Exposures
Risk-Weighted
Assets by
Exposures
- Average Risk
Weight
0% 0%
Deduction from
Capital Base
- -
45,084
15,975
18,000
-
-
-
-
375,864
15,482
3,642
5,953
-
-
3,691
6,366
-
79,059
-
-
0
400,941
-
10,057
35,004
-
-
0
147,978
-
44%
0%
0%
0%
37%
-
-
-
-
-
-
RM’000
-
-
150,638
45,084
375,864
31,457
3,642
30,319
-
9,017
131,552
15,728
2,731
30,319
-
-
-
-
637,004
189,348
6,366
-
-
-
189,348
0%
63%
0%
0%
0%
30%
-
-
-
-
-
-
-
Annual Report 2012
146,947
-
RM’000
Citibank berhad
0%
10%
20%
35%
50%
75%
90%
100%
110%
125%
135%
150%
270%
350%
400%
625%
937.5%
1250%
Total
Exposures
Total Risk
after Netting
Weighted
and Credit
Assets
Risk Mitigation
027
Risk
Weights
Exposures after Netting and Credit RIsk Mitigation
Insurance
Sovereigns
Banks,
Cos,
Higher
Specialised
& Central PSEs
MDBs
Securities Corporates Regulatory Residental Risk
Other
Financing/ Securitization Equity
Banks
and FDIs Firms &
Retail
Mortgages Assets Assets
Investment
Fund
Managers
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
RM’000
RM’000 RM’000 RM’000
RM’000
RM’000
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table details the total exposure amounts of the Group and the Bank after credit risk mitigation
as at 31 December 2011:
December 2011
Group and Bank
028
Citibank berhad
Annual Report 2012
Risk
Weights
0%
10%
20%
35%
50%
75%
90%
100%
110%
125%
135%
150%
270%
350%
400%
625%
937.5%
1250%
Exposures after Netting and Credit RIsk Mitigation
Insurance
Sovereigns
Banks,
Cos,
Higher
Specialised
& Central PSEs
MDBs
Securities Corporates Regulatory Residental Risk
Other
Financing/ Securitization Equity
Banks
and FDIs Firms &
Retail
Mortgages Assets Assets
Investment
Fund
Managers
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
9,050,336
-
- 9,834,138
- 3,335,705
78,101
-
Total
Exposures 9,050,336
- 13,247,944
Risk-Weighted
Assets by
- 3,712,781
Exposures
Average Risk
Weight
0% 0%
28%
Deduction from
Capital Base
-
Total
Exposures
Total Risk
after Netting
Weighted
and Credit
Assets
Risk Mitigation
RM’000
RM’000
4,262
26,790
12,369 189,956
- 10,383,747
26,370 6,291,093
106,273
2,193
18,361
-
7,720,334
811,519
322,184
483,914
5,819
-
42,428
-
231,446
1,340
304,232
-
-
-
-
9,281,782
9,866,530
7,720,334
4,349,548
10,705,931
7,289,982
68,801
-
1,973,306
2,702,117
2,174,774
8,029,448
7,289,982
103,202
-
43,001 6,510,031 10,508,381
9,343,770
42,428 537,019
-
-
-
49,282,910
22,272,830
33,407 6,394,718
7,921,625
3,842,157
63,641 304,500
-
-
-
78%
98%
75%
41%
150%
57%
0%
0%
0%
-
-
-
-
-
-
-
-
-
22,272,830
45%
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table details the total exposure amounts of the Islamic Banking Window after credit risk
mitigation as at 31 December 2011:
December 2011
Islamic Banking Window
-
Total
Exposures
502,232 Risk-Weighted
Assets by
Exposures
- Average Risk
Weight
0% 0%
Deduction from
Capital Base
- -
16,721
12,000
-
-
874
-
-
377,760
66,014
4,437
5,844
-
58
-
2,863
8,350
-
28,721
-
874
-
454,056
58
11,213
15,344
-
874
-
174,395
88
53%
0%
100%
0%
38%
-
-
-
-
-
-
RM’000
-
-
505,095
16,721
377,760
66,014
4,437
27,068
58
-
3,344
132,216
33,007
3,328
27,068
88
-
-
-
-
997,153
199,050
8,350
-
-
-
150%
74%
0%
0%
0%
-
-
-
-
-
199,050
20%
Annual Report 2012
502,232
-
RM’000
Citibank berhad
0%
10%
20%
35%
50%
75%
90%
100%
110%
125%
135%
150%
270%
350%
400%
625%
937.5%
1250%
Total
Exposures
Total Risk
after Netting
Weighted
and Credit
Assets
Risk Mitigation
029
Risk
Weights
Exposures after Netting and Credit RIsk Mitigation
Insurance
Sovereigns
Banks,
Cos,
Higher
Specialised
& Central PSEs
MDBs
Securities Corporates Regulatory Residental Risk
Other
Financing/ Securitization Equity
Banks
and FDIs Firms &
Retail
Mortgages Assets Assets
Investment
Fund
Managers
RM’000 RM’000 RM’000 RM’000 RM’000
RM’000
RM’000
RM’000 RM’000 RM’000
RM’000
RM’000
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table shows the total exposure which is covered by eligible guarantees and financial
collaterals as at 31 December 2012:
December 2012
Group and Bank
Exposure Class
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates, Insurance Cos
and Securities Firms
Regulatory Retail
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or credit derivatives
Defaulted Exposures
Total for Off- Balance Sheet Exposures
030
Citibank berhad
Annual Report 2012
Total On and Off- Balance Sheet Exposures
Exposures
Exposures
Exposures
Exposures
Covered by
Covered by
Covered by
before CRM
Guarantees/Credit
Eligible Financial
Other Eligible
Derivatives
Collateral
Collateral
RM’000
RM’000
RM'000
RM'000
7,455,677
-
-
-
7,763,938
-
-
-
3,296,569
7,139,914
8,412,891
15,133
522,123
526,911
12,859
-
26,436
184,828
-
-
35,133,155
12,859
211,264
-
1,621,018
6,698
-
-
6,641,128
17,011
49,705
-
6,663
-
-
8,279,157
56,403
6,663
-
43,412,312
69,262
217,927
-
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table details the total exposure which is covered by eligible guarantees and financial
collaterals of the Islamic Banking Window as at 31 December 2012:
Total for On- Balance Sheet Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or credit derivatives
Total for Off- Balance Sheet Exposures
Total On and Off- Balance Sheet Exposures
Exposures
Covered by
Covered by
before CRM
Guarantees/Credit
Eligible Financial
Other Eligible
Derivatives
Collateral
Collateral
RM’000
RM’000
RM'000
RM'000
146,947
-
-
-
59,106
-
-
-
391,386
10,057
5,953
-
-
-
613,449
-
-
-
19,953
-
-
-
3,603
-
-
-
23,556
-
-
-
637,005
-
-
-
Citibank berhad
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates, Insurance Cos
and Securities Firms
Residential Mortgages
Other Assets
Defaulted Exposures
Exposures
Covered by
031
Exposure Class
Exposures
Exposures
Annual Report 2012
December 2012
Islamic Banking Window
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table shows the total exposure which is covered by eligible guarantees and financial
collaterals as at 31 December 2011:
December 2011
Group and Bank
Exposure Class
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central Banks
Banks, Development Financial
Institutions and MDBs
Corporates, Insurance Cos
and Securities Firms
Regulatory Retail
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or credit derivatives
Defaulted Exposures
Total for Off- Balance Sheet Exposures
032
Citibank berhad
Annual Report 2012
Total On and Off- Balance Sheet Exposures
Exposures
Exposures
Exposures
Exposures
Covered by
Covered by
Covered by
before CRM
Guarantees/Credit
Eligible Financial
Other Eligible
Derivatives
Collateral
Collateral
RM’000
RM’000
RM'000
RM'000
9,030,212
-
-
-
11,391,310
-
-
-
4,393,905
6,988,379
8,590,218
21,719
537,019
589,414
52,608
-
22,557
199,007
-
-
41,542,176
52,608
221,565
-
1,914,337
23,812
-
-
5,994,435
18,445
96,322
-
5,484
-
-
7,927,218
120,134
5,484
-
49,469,393
172,742
227,049
-
Pillar 3 Disclosure
5. Credit Risk (continued)
5.7 Credit Risk Mitigation (continued)
The following table details the total exposure which is covered by eligible guarantees and financial
collaterals for the Islamic Banking Window as at 31 December 2011:
December 2011
Islamic Banking Window
Exposure Class
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central Banks
Corporates
Residential Mortgages
Higher Risk Assets
Other Assets
Defaulted Exposures
Total for On- Balance Sheet Exposures
Off-Balance Sheet Exposures
OTC Derivatives
Off balance sheet exposures other
than OTC derivatives or credit derivatives
Defaulted Exposures
Total for Off- Balance Sheet Exposures
Total On and Off- Balance Sheet Exposures
Exposures
Exposures
Exposures
Exposures
Covered by
Covered by
Covered by
before CRM
Guarantees/Credit
Eligible Financial
Other Eligible
Derivatives
Collateral
Collateral
RM’000
RM’000
RM'000
RM'000
502,232
842
443,796
58
11,213
5,843
-
-
-
963,984
-
-
-
28,721
-
-
-
4,447
1
-
-
-
33,169
-
-
-
997,153
-
-
-
The total facility amount, including direct, contingent and pre-settlement exposure, is aggregated and the
credit officer reviews the approved tables within policy that appoints the appropriate level of authority that
needs to review and approve.
The utilization of collateral is of critical importance in the mitigation of risk. In house legal counsel in
consultation with approved external legal counsel will determine whether collateral documentation is
enforceable and gives the Bank the right to liquidate or take possession in a timely manner in the event of
the default, insolvency, bankruptcy or other defined credit event of the obligor.
As mentioned in Section 5.7, majority of the collateral received is in the form of cash deposit and equities
while the rest relate to guarantees, so the impact of a credit grading downgrade will have minimal impact
on the collateral valuation.
Citibank berhad
Credit Risk Principles, Policies and Procedures mandate a comprehensive analysis of the proposed credit
exposure or transaction, review of external agency ratings, financial and corporate due diligence including
support, management profile and qualitative factors.
033
The risk that a counterparty will not fulfill its financial obligations is fundamental in the bank’s management of
counterparty credit risk. The process for approving a counterparty’s risk exposure limits is two-fold: guided
by the core credit policies, procedures and standards, and the experience and judgment of credit risk
professionals. All corporate exposures are subject to these credit policies.
Annual Report 2012
5.8 Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR)
Pillar 3 Disclosure
5. Credit Risk (continued)
5.8 Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR) (continued)
The following table shows the Group and Bank’s off-balance sheet exposures and risk weighted assets for the financial year 2012:
Item
Description
Principal
Amount
RM’000
1
2
3
4
5
6
7
8
9
10
Citibank berhad
Annual Report 2012
11
12
13
14
15
16
034
17
18
19
20
Direct credit substitutes
1,775,552
Transaction related contingent Items
459,766
Short term self liquidating trade related contingencies
223,238
Assets sold with recourse
Forward asset purchases
233,379
Obligations under an on-going underwriting agreement
Lending of banks’ securities or the posting of securities
as collateral by banks, including instances where
these arise out of repo-style transactions.
(i.e. repurchase / reverse repurchase and securities
lending / borrowing transactions.)
Foreign exchange related contracts
One year or less
24,502,920
Over one year to five years
4,118,926
Over five years
91,650
Interest / Profit rate related contracts
One year or less
7,394,786
Over one year to five years
13,016,035
Over five years
1,276,778
Equity related contracts
One year or less
82,608
Over one year to five years
130,311
Over five years
Gold and other precious metal contracts
One year or less
Over one year to five years
Over five years
Other commodity contracts
One year or less
56,113
Over one year to five years
60,497
Over five years
Credit derivative contracts
One year or less
Over one year to five years
Over five years
OTC derivative transactions and credit
derivative contracts subject to valid
bilateral netting agreements
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of over one year 1,074,639
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of up to one year 568,688
Any commitments that are unconditionally cancelled at
any time by the bank without prior notice or that
effectively provide for automatic cancellation due
to deterioration in a borrower’s creditworthiness 4,861,934
Unutilised credit card lines
18,618,102
Off-balance sheet items for securitisation exposures
Off-balance sheet exposures due to early
amortisation provisions
Total
78,545,922
Positive Fair Value
Credit
of Derivative
Equivalent
Contracts
Amount
RM’000
Risk
Weighted
Assets
RM'000
RM'000
1,775,552
229,883
44,648
233,379
-
1,614,183
193,184
34,165
168,747
-
-
-
163,765
78,616
5,275
450,794
417,698
19,022
279,071
231,938
19,022
15,941
150,080
44,630
133,790
438,593
123,369
30,061
143,666
51,781
5,604
-
7,192
13,794
-
1,438
7,484
-
-
-
-
1,855
2,064
-
7,466
9,299
-
5,479
4,712
-
-
-
-
-
-
-
537,319
399,334
113,738
113,738
3,723,620
-
2,795,626
-
-
-
8,279,156
6,093,629
467,831
Pillar 3 Disclosure
5. Credit Risk (continued)
5.8 Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR) (continued)
The following table shows the Group and Bank’s off-balance sheet exposures and risk weighted assets for the
Bank’s Islamic Window for the financial year 2012:
Direct credit substitutes
Transaction related contingent Items
Short term self liquidating trade related contingencies
Assets sold with recourse
Forward asset purchases
Obligations under an on-going underwriting agreement
Commitment to buy back Islamic
securities under sales and buy back
agreement transactions
Foreign exchange related contracts
One year or less
Over one year to five years
Over five years
Benchmark rate related contracts
One year or less
Over one year to five years
Over five years
Equity related contracts
One year or less
Over one year to five years
Over five years
Gold and other precious metal contracts
One year or less
Over one year to five years
Over five years
Other commodity contracts
One year or less
Over one year to five years
Over five years
OTC derivative transactions and credit
derivative contracts subject to valid
bilateral netting agreements
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of over one year
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of up to one year
Any commitments that are unconditionally cancelled at
any time by the bank without prior notice or that
effectively provide for automatic cancellation due
to deterioration in a borrower’s creditworthiness
Unutilised credit card lines
Off-balance sheet items for securitisation exposures
8
9
10
11
12
13
14
15
16
17
18
Total
RM’000
-
Positive Fair Value
of Derivative
Contracts
RM’000
-
Credit
Equivalent
Amount
RM'000
-
Risk
Weighted
Amount
RM'000
-
-
-
-
-
-
-
100,000
500,000
-
1,953
-
19,953
-
12,991
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,205
3,603
2,613
-
-
-
-
-
-
23,556
15,604
607,205
1,953
Annual Report 2012
1
2
3
4
5
6
7
Principal
Amount
Citibank berhad
Description
035
Item
Pillar 3 Disclosure
5. Credit Risk (continued)
5.8 Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR) (continued)
The following table shows the Group and Bank’s off-balance sheet exposures and risk weighted assets for the financial year 2011:
Item
1
2
3
4
5
6
7
8
9
10
11
036
Citibank berhad
Annual Report 2012
12
13
14
15
16
17
18
19
20
Description
Principal
Amount
RM’000
Direct credit substitutes
1,707,320
Transaction related contingent Items
399,731
Short term self liquidating trade related contingencies
148,283
Assets sold with recourse
Forward asset purchases
12,220
Obligations under an on-going underwriting agreement
Lending of banks’ securities or the posting of securities
as collateral by banks, including instances where
these arise out of repo-style transactions.
(i.e. repurchase / reverse repurchase and securities
lending / borrowing transactions.)
Foreign exchange related contracts
One year or less
24,279,480
Over one year to five years
4,180,829
Over five years
91,650
Interest / Profit rate related contracts
One year or less
6,343,210
Over one year to five years
14,940,969
Over five years
2,342,535
Equity related contracts
One year or less
54,639
Over one year to five years
123,596
Over five years
Gold and other precious metal contracts
One year or less
Over one year to five years
Over five years
Other commodity contracts
One year or less
Over one year to five years
210,358
Over five years
Credit derivative contracts
One year or less
Over one year to five years
Over five years
OTC derivative transactions and credit
derivative contracts subject to valid
bilateral netting agreements
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of over one year
598,618
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of up to one year 990,462
Any commitments that are unconditionally cancelled at
any time by the bank without prior notice or that
effectively provide for automatic cancellation due
to deterioration in a borrower’s creditworthiness
5,376,095
Unutilised credit card lines
17,832,083
Off-balance sheet items for securitisation exposures
Off-balance sheet exposures due to early
amortisation provisions
Total
78,632,078
Positive Fair Value Credit
of Derivative
Equivalent
Contracts
Amount
RM’000
RM'000
1,707,320
199,865
29,657
12,220
-
Risk
Weighted
Assets
RM'000
1,410,933
158,071
22,854
6,110
-
-
-
297,746
202,986
3,275
568,900
532,616
18,855
387,454
322,054
18,855
10,712
183,777
103,713
18,265
474,983
248,393
7,496
158,715
110,993
1,299
6,594
-
4,577
16,482
-
1,648
8,593
-
-
-
-
3,687
2,336
-
3,687
27,579
-
1,843
23,095
-
-
-
-
-
-
-
299,309
227,000
198,092
198,092
3,566,418
-
2,677,910
-
816,124
-
-
7,927,218
5,741,716
Pillar 3 Disclosure
5. Credit Risk (continued)
5.8 Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR) (continued)
The following table shows the Islamic Banking Window’s off-balance sheet exposures and risk weighted assets for
the financial year 2011:
Direct credit substitutes
Transaction related contingent Items
Short term self liquidating trade related contingencies
Assets sold with recourse
Forward asset purchases
Obligations under an on-going underwriting agreement
Commitment to buy back Islamic
securities under sales and buy back
agreement transactions
Foreign exchange related contracts
One year or less
Over one year to five years
Over five years
Benchmark rate related contracts
One year or less
Over one year to five years
Over five years
Equity related contracts
One year or less
Over one year to five years
Over five years
Gold and other precious metal contracts
One year or less
Over one year to five years
Over five years
Other commodity contracts
One year or less
Over one year to five years
Over five years
OTC derivative transactions and credit
derivative contracts subject to valid
bilateral netting agreements
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of over one year
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of up to one year
Any commitments that are unconditionally cancelled at
any time by the bank without prior notice or that
effectively provide for automatic cancellation due
to deterioration in a borrower’s creditworthiness
Unutilised credit card lines
Off-balance sheet items for securitisation exposures
8
9
10
11
12
13
14
15
16
17
18
Total
RM’000
-
Positive Fair Value
Credit
of Derivative
Equivalent
Contracts
Amount
RM’000
RM'000
-
-
Risk
Weighted
Amount
RM'000
-
-
-
-
-
-
-
350,000
300,000
1,721
9,000
19,721
4,200
11,144
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,834
4,417
3,275
158
32
32
-
-
-
33,169
18,651
658,992
1,721
Annual Report 2012
1
2
3
4
5
6
7
Principal
Amount
Citibank berhad
Description
037
Item
Pillar 3 Disclosure
6. Securitization
At present, Citibank Berhad does not have any
exposures to securitization transactions. Hence,
this disclosure is not applicable.
7. Market Risk
Market risk encompasses price risk and liquidity
risk, both arising in the normal course of business
operations in a global financial intermediary. At
Citibank Berhad, market risk is managed through
corporate-wide standards, business policies and
procedures with the help of responsible personnel
and committees delegated by the Board of
Directors (for example, the Asset and Liability
Committee and Market Risk Management).
The business is required to establish risk
measures, limits and controls, clearly defining
approved risk profiles within the parameters of
the Bank's overall risk appetite.
The result of every risk assessment and review
exercise is then presented to the Board of
Directors for feedback and recommended action
(if necessary).
7.1 Price Risk
038
Citibank berhad
Annual Report 2012
Price risk is the risk associated to earnings
arising from changes in interest rates, foreign
exchange rates, equity and commodity prices
(wherever relevant) and in their implied
volatilities. Price risk arises in both
non-trading portfolios and trading portfolios.
Interest rate risk in non-trading portfolios is
inherent in many client-related activities,
primarily lending and deposit taking from
both individuals and corporations.
The risk arises due to factors including the
timing of rate resetting and maturity period
between assets and liabilities, change in the
profile of assets and liabilities whereby the
maturity period differs in response to
alterations in market interest rates, changes
in the form of the yield curve and
modifications in the spread between various
market rate indices.
Interest Rate Exposure (IRE) is used as a tool
to monitor such interest rate risk and is
calculated as the pre-tax earning impact of an
instantaneous parallel increase or decrease in
the yield curve.
IRE is supplemented with additional
measurements including stress testing the
impact on earnings and equity for non-linear
interest rate movements and analysis of
portfolio duration, basis risk, spread risk,
volatility risk and cost-to-close.
Price risk in trading portfolios is measured
through a complementary set of tools such as
factor sensitivities, value-at-risk and stress
testing.
It is the responsibility of the independent
market risk management to ensure that
factor sensitivities are calculated, monitored
and in most cases limited, for all relevant risks
taken in a trading portfolio. In addition, stress
testing is performed on trading portfolios on
a regular basis to estimate the impact of
extreme market movements.
7.2 Liquidity Risk
Liquidity risk can best be defined as risks that
the Bank may not be able to meet in terms
of a financial commitment to customers,
creditors or investors, when due.
Under the Bank's internal Liquidity Risk
Management policy, there are set standards
for the measurement of liquidity risk in
order to ensure consistency, stability in
methodologies and transparency of risk.
This is in addition to the requirements of
BNM's New Liquidity Framework, which
requires that a certain surplus liquidity
position be maintained to meet pre-defined
withdrawal amounts.
Management of liquidity is performed on a daily
basis and is monitored by the Country
Treasurer. Along with the Country Treasurer
and the Corporate Treasurer, the Asset and
Liability Committee (ALCO) undertakes the
joint responsibility of overall liquidity risk
management which covers establishing and
endorsing the annual funding and liquidity plan,
liquidity limits, liquidity ratios, market triggers
and assumptions for periodic stress tests.
The Bank's liquidity management process
includes:
•
Establishing liquidity limit based on the
size of the balance sheet, depth of the
market, experience level of management,
stability of the liabilities and liquidity of
the assets under both business as usual
scenario and stress scenarios;
7.2 Liquidity Risk (continued)
•
Daily maturity profiling of the Bank's
assets and liabilities including behavioral
analysis of major third party sources and
uses of funds versus liquidity limits;
•
Perform simulated liquidity stress testing
periodically relative to significant
changes in key funding sources, credit
ratings, contingent uses of funding and
market disruptions;
•
Preparing annual funding and liquidity
plan which includes analysis of the annual
balance sheet as well as the economic and
business conditions impacting the liquidity
of the Bank;
•
Use liquidity ratios to monitor the structural
elements of the Bank's liquidity position;
•
Review potential concentrations of funding;
and
•
Monitor market triggers which are internal
and/or external market or economic
factors that may cause a change to market
liquidity.
8. Operational Risk
Operational risk is the risk of loss resulting from
inadequate or failed internal processes, people,
and systems as well as from external events.
It includes reputation and franchise risks
associated with the Bank's business practices or
market conduct. It also includes the risk of failing
to comply with applicable laws, regulations, and
Citi policies.
The Citi Self Assessment and Operational Risk
Framework includes the Citi Risk & Control
Self-Assessment/Operational Risk Policy and
Standards (“The Policy”), which clearly defines
the Bank's approach to operational risk
management.
The Operational Risk policy codifies the core
governing principles for operational risk
management and provides a consistent, value
added framework for assessing, communicating
operational risk and the overall effectiveness of
the internal control environment across Citi.
The policy covers the following:
•
The Policy focuses on Important Risks and
Key Controls and not all risks and controls;
•
The senior management is responsible for the
oversight of the operational risk management
framework, including fostering an
organizational culture that places high priority
on effective operational risk management and
adherence to sound internal controls, including
all applicable policies;
•
The identification of key operational risks &
controls to be done on a collaborative effort,
with the input from business and functional
areas;
•
Key operational risks identified will be
assessed on a regular basis through key risk
indicators to monitor potential significant
risk inherent in the business; and
•
Operational losses are collected and reported
to senior management.
The Bank’s management places a very high value
on maintaining an effective control environment to
mitigate operational risk. Therefore, a number of
tools have been put in place to mitigate this risk.
These tools range from conducting Risk & Control
Self-Assessments (“RCSA”), operational loss
reporting and several escalations mechanisms
related to operational risk. It is the Business Risk,
Compliance & Control Committee (“BRCC”) that
governs operational risk within the Bank. The
Committee meets on a quarterly basis and
discusses operational risk related items according
to a standard agenda. The Audit Committee is
the independent governing body monitoring
operational risk within the Bank.
The Bank uses Basic Indicator approach for
calculating Operational Risk Capital.
9. Equities
This disclosure is not applicable as Citibank
Berhad does not have any exposures to equities.
10. Interest Rate Risk/Rate of Return
Risk in the Banking Book (IRR/
RORBB)
Interest rate risk in banking book arises from
both interest bearing and non-interest bearing
assets and liabilities. Interest rate risk is
monitored on a daily basis within the approved
limits framework set by the Regional Market Risk
Management and considers changes of economic
value per 1% interest rate increase for each
currency as an index for internal control.
Citibank berhad
Market Risk (continued)
039
7.
Annual Report 2012
Pillar 3 Disclosure
Pillar 3 Disclosure
10. Interest Rate Risk/Rate of Return Risk in the Banking Book (IRR/RORBB) (continued)
Assets and liabilities, which are contractual in nature, are monitored up to the re-pricing tenors. Consumer loans
having long term re-pricing exposures are subjected to prepayment assumptions based on historical studies on
customer early payout behavior. Non-interest bearing and perpetual products, e.g. current/saving accounts, credit
cards, ready credit, are monitored for interest rate risk on core balances. The core balances are computed based on
statistical regression analysis.
Potential interest rate risk in banking book is monitored through interest rate exposure at 100 bps parallel
move in interest rates. Interest rate exposure at each major currency level for the banking book as below:
Impact on Positions as at 31 Dec 2012
+100bps Up Move (RM’000)
Increase/(Decline)
Increase/(Decline)
in Earnings
in Economic Value
Currency
MYR
SGD
USD
GBP
JPY
AUD
EUR
(32,448)
(45)
(224)
+181
(17)
(5)
(5)
(32,448)
(45)
(224)
+181
(17)
(5)
(5)
Impact on Positions as at 31 Dec 2011
+100bps Up Move (RM’000)
Increase/(Decline)
Increase/(Decline)
in Earnings
in Economic Value
(73,681)
(11)
+6,210
(13)
(33)
+56
(16)
(73,681)
(11)
+6,210
(13)
(33)
+56
(16)
11. Profit Sharing Investment Accounts and Shariah Governance
11.1 Profit Sharing Investment Accounts
This disclosure is not applicable as Citibank Berhad’s Islamic Banking Window does not have any Profit
Sharing Investment Accounts.
040
Citibank berhad
Annual Report 2012
11.2 Shariah Governance
This is disclosed in Citibank Berhad’s Annual Report, under the section “Shariah Committee”.
Citibank Berhad
(297089M)
45th Floor, Menara Citibank
165 Jalan Ampang
50450 Kuala Lumpur
Tel : 03-2383 8585
Fax : 03-2383 6000
www.citibank.com.my