Citibank Berhad ANNUAL REPORT 2013
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Citibank Berhad ANNUAL REPORT 2013

I am pleased to present to you Citibank Malaysia’s annual report for the financial year 2013. It has been a year of strong performance despite the market challenges, regulatory changes and competition.
On behalf of the Board of Directors, I would like to express our appreciation to Mr. Anil Wadhwani, our non-independent, non-executive director, for his contribution during his tenure with our Board. He resigned on 11 October, 2013.
Malaysia is a significant market for Citigroup. We have been operating in the country for over 55 years and have grown with the nation through all economic cycles. As the country makes progressive strides in its national transformation efforts to become a high income nation by 2020, we are confident that we can contribute in a larger way to the evolution of the financial services sector.
We move into 2014, mindful of the challenges ahead.
Industry expectations point to moderate growth due to rising prices, global uncertainties and inflation, amongst other factors. As a Bank, we will continue to leverage our global strengths and network to provide a distinctive and remarkable client experience for all of our customers.
I thank my fellow Board colleagues, senior management and all employees of Citibank Malaysia, for their unwavering commitment and support during the financial year. We have a shared mission, one with a common purpose to bring world class financial services, built on good ethics and responsible financing, to the markets that we serve. The future is one of tremendous opportunity for growth. We look ahead, confident that we can make a difference.
Terence Kent Cuddyre
Chairman
03
Citibank Berhad ANNUAL REPORT 2013

OVERVIEW
The year 2013 ended on a positive note for the
Malaysian economy, amid global volatility and concerns on stimulus taper effects by the US Federal Reserve’s easing and its impact on emerging market economies.
Moving into 2014, the sluggish global economy showed signs of recovery and growth after a three-year slowdown. Malaysia’s national transformation agenda to create a high income and developed nation by 2020 charted significant progress. The country’s resilience in weathering the uncertainties abroad underscored its robust domestic demand and strong economic fundamentals. GDP growth in 2013 stood at 4.7%.
In the World Bank Doing Business Report 2013,
Malaysia moved six rankings up from 8th to 12th position. Malaysia was also top for five years from
2009 to 2013 for access to credit. In terms of global competitiveness, the World Economic Forum Global
Competitiveness Report 2013-2014 revealed Malaysia as the second most competitive nation in ASEAN and
7th among 25 Asia Pacific countries.
Malaysia’s financial services sector continued to be strong and well capitalised with a high risk-weighted capital adequacy ratio of 14.3% and low net impaired loans ratio of 1.4%. Nevertheless, the industry expects moderate earnings growth in 2014 given rising risks and margin compression.
On the regulatory front, the Financial Services Act 2013
(FSA) and Islamic Financial Services Act 2013 (IFSA) came into force in June 2013, further strengthening the financial sector regulatory and supervisory framework under a single legislative charter for conventional and Islamic financial services.
Consequently, the Banking and Financial Institutions
Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance
Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 were repealed on the same date.
PERFORMANCE HIGHLIGHTS
Citibank recorded pre-tax profit of RM717 million for the financial year ended December 31, 2013. The steady performance although marginally lower than the
RM790 million recorded the previous year, was boosted by the Bank’s high levels of capital, liquidity and operating cash flows.
Total net income was RM533 million in 2013. Net interest income totalled RM1.09 billion in 2013 while non-interest income stood at RM617 million.
During the same period, the Bank’s return on equity before tax was a solid 16.6%. Liquidity continues to be exceptionally strong, with cash and short-term funds and placements with financial institutions in excess of
RM11.69 billion. The Bank’s Risk Weighted Capital
Adequacy Ratio stood at 16.5%.
OPERATIONS REVIEW 2013
Citibank has been at the forefront of technology innovation for the financial services sector since 1959 when we first opened our doors for business in
Malaysia. The Bank has been a prime mover, leveraging on our extensive global network.
We continued in 2013 to drive major innovative campaigns across our different product lines, reinforcing our position as one of the leading global banks in the country.
Citibank has been a pillar of support to local companies and multinational companies growing their business in
Malaysia and in the region. Despite increased competition following the introduction of more liberalisation measures in the financial industry, we remained the Bank of choice
04
Citibank Berhad ANNUAL REPORT 2013 for cross border transactions and for clients with regional and international business operations.
We were also the sole international financial advisor to
KLCC Property Holdings Berhad on the creation of the
KLCC Stapled Securities. Citibank acted as the sole international structuring bank in this highly innovative transaction – the first stapled REIT in Malaysia and first Islamic Stapled REIT globally. This award-winning transaction created the largest REIT in Malaysia and the fourth largest in Asia Pacific.
In Islamic banking, Citibank launched an innovative
Islamic investment strategy to enable institutional clients to dynamically adjust their asset allocation to various global Islamic assets according to market trends.
In the Consumer Banking space, we premiered our next-generation automated teller machines (ATM), known as Citibank Express which offers the facilities and convenience for customers to conduct most of their banking transactions including the opening of accounts.
Citibank was also the first bank to introduce a 10-minute home loan approval tool, cutting short the average waiting period of 5-7 days.
In terms of market leadership, Citibank has a leading position in credit cards, FX options, Government bond trading, securities clearing and settlement, and cash management.
The year 2013 also set a new milestone for us in technology innovation when Malaysia became the first country in Asia Pacific to successfully implement Go To
Common within Citi to deliver world-class operating efficiency by driving common processes and technology across Citi’s Consumer Banking businesses globally. Our customers are the key beneficiaries of the investments we make in pursuit of best technology and innovation to enrich their banking experience with us.
CONSUMER BANKING
Credit Cards
Consumers are increasingly discerning especially when choosing credit card options. Matching consumer spending trends and behaviour patterns with their lifestyle needs, we introduced a series of product innovations to the Malaysian market, with various product offerings tailored to suit different customer needs.
Responding to the increasing number of affluent
Malaysian travellers, we launched the Citi Prestige Card
– the first World Elite MasterCard in Asia Pacific. The card is Citi’s first global credit card that leverages on the bank’s unique global footprint and relationships.
Customers are offered unparalleled benefits including a dedicated Citi Prestige Global Concierge. Customers also get complimentary night stays at 800 hotels globally, complimentary airport limo rides home from the Kuala Lumpur International Airport (KLIA) and unlimited access to over 600 airport lounges worldwide.
For frequent travellers, we launched the Citi Premier
Miles American Express® Card, the first market in Asia
Pacific to do so. The card is the best-in-class travel credit card designed where members earn more miles from their everyday spend and enjoy wider choices of redemption from most airlines, complimentary airport limo rides home from KLIA and access to airport lounges in Asia Pacific.
More Malaysians are going digital and preferring to do their banking in this space. Our Citibank Rewards Platinum
Card launched also last year made us the first global bank in Malaysia to pioneer a suite of customisable card services incorporating internet and smartphone technology. With this card, our customers are empowered to control their spending patterns and have the flexibility to select their choice rewards and benefits. Rewards redemption can be done online via smart phones.
In the B2B card payments market, we launched two new commercial cards – the Citibank Business
Signature Card and Citibank Visa Travel Account to secure corporate spends in the Procure-to-Pay and
Travel and Entertainment categories. The card is targeted at mostly larger tier Small-to-Medium
Enterprises and Middle Market Enterprises.
Cardholders enjoy privileges at over 2,000 outlets in the country apart from the more than 3,000 Citibank credit card deals across the globe.
Our market leadership in credit card usage underscores our ability to deliver best value propositions and distinctive services to cardholders.
Retail Banking
In 2013, the capital markets produced their share of uncertainty, first of liquidity and uncertainty and the second, of taper fears. Our constant focus during these times was to address the dynamic needs of our clients, to deepen our relationships and to improve return on investments.
Customer experience is top priority at Citibank. In
January 2013, we launched the Citibank Express automated teller machine. The concept for Citibank
Express grew out of the award-winning Smart Banking project launched in 2008. It is a sophisticated machine equipped with an online banking connection, cheque deposit function and placement of time deposits, amongst other features. Customers can also communicate with a customer service representative anytime through its video-conferencing capability. We believe that Citibank Express will simplify the lives of our customers and revolutionise the retail banking experience in country.
We also enhanced our Wealth Management proposition in 2013 through the introduction of a new online Wealth
Portfolio tool for our CitiGold customers.
Through our partnership in Malaysia with Manulife
Asset Management Services, Citi launched the Asia
Target Maturity Bond Fund. This was a unique opportunity for our high net worth investors to diversify their investment portfolio. We were also the first foreign bank to launch the Private Retirement
Scheme (PRS) in Malaysia.
On the awards front, Citi won the Principal Financial
Group’s Best IUTA for Bond Fund Award in 2013 for the fifth consecutive year. This award honours Citi for its outstanding performance in terms of Unit Trust sales for CIMB-Principal in Malaysia.
The year also saw us leveraging our strong research and advisory services to organise our Leadership
Series of market outlook presentations for CitiGold and investment customers. Three seminars were held in
Kuala Lumpur, Penang and Johor Bahru.
Mortgages
Bank Negara Malaysia enhanced its Responsible
Financing guidelines in 2013 and introduced more measures to contain increasing household debt and to encourage prudent lending.
Citi leveraged the more level playing field in the market and drove mortgage acquisition targeting affluent and emerging affluent customer segments while strengthening our relationship with top tier developers and real estate agents. Our 10-minute home loan approval proposition resulted in a 3% rise in end net receivables compared to the previous year. Mortgage booking for the year increased by 50% and loan drawdown by 92%.
INSTITUTIONAL CLIENT GROUP
Treasury and Trade Solutions
Citibank Malaysia has a clear market leadership in the digital space especially in global transactions for our corporate and institutional clients.
We launched in 2013 CitiDirect BE, our web-based banking platform with all corporate banking functions in a single security-protected place, giving customers centralised access to their account information in real time, globally from either their personal computers or mobile devices.
Client response has been positive especially on the data analytics tools available using cloud computing technology which gives them better insights into their operational flows and electronic statements.
The automated global cash management solutions enable clients to control their offshore operations from
Malaysia and support development of the treasury management industry locally.
Trade finance experienced strong demand from the expanding domestic economy. Import and supply chain services registered high growth in various industry segments. Citibank was 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.
Securities Services
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.
We expect to retain our Top-Rated status in the 2013
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.
SECURITIES AND BANKING
Corporate Banking
Citibank Malaysia had a fair share of prominent deals in 2013. A significant win for us was the opportunity we had to conceptualise and implement the KLCC
Stapled Securities for KLCC Property Holdings Berhad as sole international financial advisor. This highly innovative transaction was well received by the market and underscored Citi’s global financial leadership and network.
Other notable deals for us included:
■ The US$1.5 billion IPO for Astro where Citi acted as joint bookrunner. The IPO was the third largest IPO in
Malaysia. The transaction offered investors a unique blend of yield and growth of a business that has dominant market share in the cable TV business.
■ The IGB Property US$210 million REIT IPO where
Citi acted as joint bookrunner for this REIT involving one of the most successful shopping malls in Malaysia. The transaction is notable as it set new benchmarks for yields on retail property assets.
■ Malaysia Airlines US$302 million ECA-backed bonds where Citi acted as joint bookrunner and joint structuring agent for the bonds, taking out the
ECA-backed bank financing for four A330s. This transaction is the first ECA-backed bond issued out of Asia Pacific and allowed MAS the opportunity of a lowered cost of long term financing.
■ Sime Darby US$1.5 billion multi-currency Sukuk programme where Citi acted as joint ratings advisor and lead manager for the setting up of this Sukuk programme and joint book-runner for the US$800 million Sukuk issued under this programme. Citi assisted Sime to achieve the highest ratings thus far for a Malaysian issuer; 2 of the 3 rating agencies ascribed A flat ratings for the issue.
■ Employees Provident Fund GBP350 million
Structured Financing where Citi acted as lead arranger in this transaction to part-finance property purchase in UK. This is a repeat transaction following a highly successful first financing transaction led by Citi in 2012.
Global Markets
Citi was voted best foreign exchange (FX) service provider by corporates in Asia in the Asiamoney industry poll for the second consecutive year. The poll surveyed 3,504 senior treasury, financial and management officials based in Asia, representing
3,044 different institutions. Apart from the regional win, Citibank Malaysia was featured in the Best for
Overall FX Services category. Citibank Malaysia also won the top spot in overall results for the 2013
Euromoney FX survey. Our pole position in secondary trading of government bonds was again reaffirmed in the Bank Negara Malaysia 2013 league table.
Islamic Banking Division
2013 has been a year of transition and adjustment largely due to the implementation of the Islamic
Financial Services Act 2013 (IFSA) in 2013.
We were an active participant in the various transitional programmes organised by Bank Negara to keep industry players updated on the progress relating to the implementation of IFSA.
Our Citi Transaction Services continued to develop cross-border Shariah compliant services through the implementation of automated liquidity management solutions. Funds under management total over US$311 million 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.
Industry Awards
Citibank Malaysia was recognised during the year with several award wins in consumer and corporate banking.
We list our awards and accolades on page 32 in this annual report.
A record of appreciation to all Citibankers for their unwavering commitment to the Bank, making these wins possible each year. Also, a note of gratitude to our customers for their continued trust and support extended to us during the year.
Working For And In Community
Financial education has been the focus of our
Citizenship initiatives in country. We have in the last 10 years adopted a singular focus to support financial literacy and inclusion. Annual grants from the Citi
Foundation of over US$210,000 to our local partners
Era Consumer Malaysia and Universiti Putra Malaysia were used to support activities under our Citizenship projects in Malaysia.
The programmes to improve financial behaviours amongst pre-school children and mature women have gained good traction in community. For example, the pre-school financial education programme has been extended to cover a train the trainer programme for kindergarten teachers. Our plans in the coming year will be to include youths in similar financial education programmes and increase our network of local partners.
For 2013, Citi organised 40 “My First Ringgit” classes in suburban and rural locations in Peninsular Malaysia as well as the fourth season of TV programme “Stretching
Your Ringgit.”
The programme included workshops on basic financial education for over 800 kindergarten children. Five
“Training of Trainers” programme for over 200 kindergarten teachers and three focus groups for parents were also organised during the year.
Citi also launched a pilot training initiative for mature women from the low income group working with
Universiti Putra Malaysia and the Tsao Foundation based in Singapore. The CITI-UPM Financial
Empowerment for Mature Women Programme brought together 800 women aged between 40 and 60 years with income levels of below RM3,000 a month.
Workshops have also been planned for members of women groups such as the UPM Woman’s Association
(PERMATA) and National Council of Women’s
Organisation (NCWO). The curriculum includes saving, investment and financial retirement planning.
In the area of Volunteerism, over 700 Citibank employees participated in “Restore Hope for Children”, a project with the United Nations High Commissioner for Refugees (UNHCR). Activities included a feeding programme for 500 refugee children in Kuala Lumpur and visits to 200 orphans in Penang and Johor Bahru.
Our People
Every Citibanker is a valued individual in our organisation. Emphasis is given to professional growth and talent development besides continued support for diversity and work-life balance. Citibank has also been an incubator of local banking talent. Opportunities abound in-country and through our global network for local talent to excel and achieve their career ambitions.
Throughout the year, we made good progress on delivering “The Citibanker Difference” for our employees.
The Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career development opportunities for the top 2% of our best employees across the board. We hired 18 management associates and graduate executives from leading local and foreign universities as part of our ongoing talent recruitment drive.
In addition to the Voice of the Employee platform for employees to engage in improving their work environment and to raise people related or career concerns, the Employee Assistance Programme launched in 2012 is an added support service providing counselling to permanent employees of the Bank.
Sanjeev Nanavati
Chief Executive Officer
Another initiative Citi Live Well to encourage healthy living has been well supported by employees.
KEY BUSINESS PRIORITIES FOR 2014
Customer centricity lies at the heart of our business priorities and will frame all our business interactions and inspire product and service offerings, leveraging on our extensive global network. As the industry in
Malaysia evolves to a more digitised environment,
Citibank has the edge over competition in terms of bringing to market innovative technology for our
Malaysian consumer and corporate clients.
OUTLOOK FOR 2014
Global growth prospects are expected to improve in
2014. The Malaysian economy is expected to register a steady growth of around 5% in 2014.
Malaysia’s financial services sector is likely to see moderate loans growth largely due to the tougher economic environment regionally, pressure on margins and stricter retail lending although underlying fundamentals of the industry remain solid. On the corporate front, prospects are expected to be better especially with the continued progress and positive impact from national transformation initiatives and as local companies expand operations abroad.
At Citibank Malaysia, we anticipate this year to be one of creating greater value and enriching the banking experience of our customers with unparalleled standards of service excellence. We have much to accomplish and the journey ahead while challenging, will present us opportunities to grow.

OVERVIEW
The year 2013 ended on a positive note for the
Malaysian economy, amid global volatility and concerns on stimulus taper effects by the US Federal Reserve’s easing and its impact on emerging market economies.
Moving into 2014, the sluggish global economy showed signs of recovery and growth after a three-year slowdown. Malaysia’s national transformation agenda to create a high income and developed nation by 2020 charted significant progress. The country’s resilience in weathering the uncertainties abroad underscored its robust domestic demand and strong economic fundamentals. GDP growth in 2013 stood at 4.7%.
In the World Bank Doing Business Report 2013,
Malaysia moved six rankings up from 8th to 12th position. Malaysia was also top for five years from
2009 to 2013 for access to credit. In terms of global competitiveness, the World Economic Forum Global
Competitiveness Report 2013-2014 revealed Malaysia as the second most competitive nation in ASEAN and
7th among 25 Asia Pacific countries.
Malaysia’s financial services sector continued to be strong and well capitalised with a high risk-weighted capital adequacy ratio of 14.3% and low net impaired loans ratio of 1.4%. Nevertheless, the industry expects moderate earnings growth in 2014 given rising risks and margin compression.
On the regulatory front, the Financial Services Act 2013
(FSA) and Islamic Financial Services Act 2013 (IFSA) came into force in June 2013, further strengthening the financial sector regulatory and supervisory framework under a single legislative charter for conventional and Islamic financial services.
Consequently, the Banking and Financial Institutions
Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance
Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 were repealed on the same date.
PERFORMANCE HIGHLIGHTS
Citibank recorded pre-tax profit of RM717 million for the financial year ended December 31, 2013. The steady performance although marginally lower than the
RM790 million recorded the previous year, was boosted by the Bank’s high levels of capital, liquidity and operating cash flows.
Total net income was RM533 million in 2013. Net interest income totalled RM1.09 billion in 2013 while non-interest income stood at RM617 million.
During the same period, the Bank’s return on equity before tax was a solid 16.6%. Liquidity continues to be exceptionally strong, with cash and short-term funds and placements with financial institutions in excess of
RM11.69 billion. The Bank’s Risk Weighted Capital
Adequacy Ratio stood at 16.5%.
OPERATIONS REVIEW 2013
Citibank has been at the forefront of technology innovation for the financial services sector since 1959 when we first opened our doors for business in
Malaysia. The Bank has been a prime mover, leveraging on our extensive global network.
We continued in 2013 to drive major innovative campaigns across our different product lines, reinforcing our position as one of the leading global banks in the country.
Citibank has been a pillar of support to local companies and multinational companies growing their business in
Malaysia and in the region. Despite increased competition following the introduction of more liberalisation measures in the financial industry, we remained the Bank of choice
CEO’S STATEMENT
for cross border transactions and for clients with regional and international business operations.
We were also the sole international financial advisor to
KLCC Property Holdings Berhad on the creation of the
KLCC Stapled Securities. Citibank acted as the sole international structuring bank in this highly innovative transaction – the first stapled REIT in Malaysia and first Islamic Stapled REIT globally. This award-winning transaction created the largest REIT in Malaysia and the fourth largest in Asia Pacific.
In Islamic banking, Citibank launched an innovative
Islamic investment strategy to enable institutional clients to dynamically adjust their asset allocation to various global Islamic assets according to market trends.
In the Consumer Banking space, we premiered our next-generation automated teller machines (ATM), known as Citibank Express which offers the facilities and convenience for customers to conduct most of their banking transactions including the opening of accounts.
Citibank was also the first bank to introduce a 10-minute home loan approval tool, cutting short the average waiting period of 5-7 days.
In terms of market leadership, Citibank has a leading position in credit cards, FX options, Government
bond trading, securities clearing and settlement, and cash management.
The year 2013 also set a new milestone for us in technology innovation when Malaysia became the first country in Asia Pacific to successfully implement Go To
Common within Citi to deliver world-class operating efficiency by driving common processes and technology across Citi’s Consumer Banking businesses globally. Our customers are the key beneficiaries of the investments we make in pursuit of best technology and innovation to enrich their banking experience with us.
CONSUMER BANKING
Credit Cards
Consumers are increasingly discerning especially when choosing credit card options. Matching consumer spending trends and behaviour patterns with their lifestyle needs, we introduced a series of product innovations to the Malaysian market, with various product offerings tailored to suit different customer needs.
Responding to the increasing number of affluent
Malaysian travellers, we launched the Citi Prestige Card
– the first World Elite MasterCard in Asia Pacific. The card is Citi’s first global credit card that leverages on the bank’s unique global footprint and relationships.
Customers are offered unparalleled benefits including a dedicated Citi Prestige Global Concierge. Customers also get complimentary night stays at 800 hotels globally, complimentary airport limo rides home from the Kuala Lumpur International Airport (KLIA) and unlimited access to over 600 airport lounges worldwide.
For frequent travellers, we launched the Citi Premier
Miles American Express® Card, the first market in Asia
Pacific to do so. The card is the best-in-class travel credit card designed where members earn more miles from their everyday spend and enjoy wider choices of redemption from most airlines, complimentary airport limo rides home from KLIA and access to airport lounges in Asia Pacific.
More Malaysians are going digital and preferring to do their banking in this space. Our Citibank Rewards Platinum
Card launched also last year made us the first global bank in Malaysia to pioneer a suite of customisable card services incorporating internet and smartphone technology. With this card, our customers are empowered to control their spending patterns and have the flexibility to select their choice rewards and benefits. Rewards redemption can be done online via smart phones.
In the B2B card payments market, we launched two new commercial cards – the Citibank Business
Signature Card and Citibank Visa Travel Account to secure corporate spends in the Procure-to-Pay and
Travel and Entertainment categories. The card is targeted at mostly larger tier Small-to-Medium
Enterprises and Middle Market Enterprises.
05
Citibank Berhad ANNUAL REPORT 2013
Cardholders enjoy privileges at over 2,000 outlets in the country apart from the more than 3,000 Citibank credit card deals across the globe.
Our market leadership in credit card usage underscores our ability to deliver best value propositions and distinctive services to cardholders.
Retail Banking
In 2013, the capital markets produced their share of uncertainty, first of liquidity and uncertainty and the second, of taper fears. Our constant focus during these times was to address the dynamic needs of our clients, to deepen our relationships and to improve return on investments.
Customer experience is top priority at Citibank. In
January 2013, we launched the Citibank Express automated teller machine. The concept for Citibank
Express grew out of the award-winning Smart Banking project launched in 2008. It is a sophisticated machine equipped with an online banking connection, cheque deposit function and placement of time deposits, amongst other features. Customers can also communicate with a customer service representative anytime through its video-conferencing capability. We believe that Citibank Express will simplify the lives of our customers and revolutionise the retail banking experience in country.
We also enhanced our Wealth Management proposition in 2013 through the introduction of a new online Wealth
Portfolio tool for our CitiGold customers.
Through our partnership in Malaysia with Manulife
Asset Management Services, Citi launched the Asia
Target Maturity Bond Fund. This was a unique opportunity for our high net worth investors to diversify their investment portfolio. We were also the first foreign bank to launch the Private Retirement
Scheme (PRS) in Malaysia.
On the awards front, Citi won the Principal Financial
Group’s Best IUTA for Bond Fund Award in 2013 for the fifth consecutive year. This award honours Citi for its outstanding performance in terms of Unit Trust sales for CIMB-Principal in Malaysia.
The year also saw us leveraging our strong research and advisory services to organise our Leadership
Series of market outlook presentations for CitiGold and investment customers. Three seminars were held in
Kuala Lumpur, Penang and Johor Bahru.
Mortgages
Bank Negara Malaysia enhanced its Responsible
Financing guidelines in 2013 and introduced more measures to contain increasing household debt and to encourage prudent lending.
Citi leveraged the more level playing field in the market and drove mortgage acquisition targeting affluent and emerging affluent customer segments while strengthening our relationship with top tier developers and real estate agents. Our 10-minute home loan approval proposition resulted in a 3% rise in end net receivables compared to the previous year. Mortgage booking for the year increased by 50% and loan drawdown by 92%.
INSTITUTIONAL CLIENT GROUP
Treasury and Trade Solutions
Citibank Malaysia has a clear market leadership in the digital space especially in global transactions for our corporate and institutional clients.
We launched in 2013 CitiDirect BE, our web-based banking platform with all corporate banking functions in a single security-protected place, giving customers centralised access to their account information in real time, globally from either their personal computers or mobile devices.
Client response has been positive especially on the data analytics tools available using cloud computing technology which gives them better insights into their operational flows and electronic statements.
The automated global cash management solutions enable clients to control their offshore operations from
Malaysia and support development of the treasury management industry locally.
Trade finance experienced strong demand from the expanding domestic economy. Import and supply chain services registered high growth in various industry segments. Citibank was 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.
Securities Services
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.
We expect to retain our Top-Rated status in the 2013
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.
SECURITIES AND BANKING
Corporate Banking
Citibank Malaysia had a fair share of prominent deals in 2013. A significant win for us was the opportunity we had to conceptualise and implement the KLCC
Stapled Securities for KLCC Property Holdings Berhad as sole international financial advisor. This highly innovative transaction was well received by the market and underscored Citi’s global financial leadership and network.
Other notable deals for us included:
■ The US$1.5 billion IPO for Astro where Citi acted as joint bookrunner. The IPO was the third largest IPO in
Malaysia. The transaction offered investors a unique blend of yield and growth of a business that has dominant market share in the cable TV business.
■ The IGB Property US$210 million REIT IPO where
Citi acted as joint bookrunner for this REIT involving one of the most successful shopping malls in Malaysia. The transaction is notable as it set new benchmarks for yields on retail property assets.
■ Malaysia Airlines US$302 million ECA-backed bonds where Citi acted as joint bookrunner and joint structuring agent for the bonds, taking out the
ECA-backed bank financing for four A330s. This transaction is the first ECA-backed bond issued out of Asia Pacific and allowed MAS the opportunity of a lowered cost of long term financing.
■ Sime Darby US$1.5 billion multi-currency Sukuk programme where Citi acted as joint ratings advisor and lead manager for the setting up of this Sukuk programme and joint book-runner for the US$800 million Sukuk issued under this programme. Citi assisted Sime to achieve the highest ratings thus far for a Malaysian issuer; 2 of the 3 rating agencies ascribed A flat ratings for the issue.
■ Employees Provident Fund GBP350 million
Structured Financing where Citi acted as lead arranger in this transaction to part-finance property purchase in UK. This is a repeat transaction following a highly successful first financing transaction led by Citi in 2012.
Global Markets
Citi was voted best foreign exchange (FX) service provider by corporates in Asia in the Asiamoney industry poll for the second consecutive year. The poll surveyed 3,504 senior treasury, financial and management officials based in Asia, representing
3,044 different institutions. Apart from the regional win, Citibank Malaysia was featured in the Best for
Overall FX Services category. Citibank Malaysia also won the top spot in overall results for the 2013
Euromoney FX survey. Our pole position in secondary trading of government bonds was again reaffirmed in the Bank Negara Malaysia 2013 league table.
Islamic Banking Division
2013 has been a year of transition and adjustment largely due to the implementation of the Islamic
Financial Services Act 2013 (IFSA) in 2013.
We were an active participant in the various transitional programmes organised by Bank Negara to keep industry players updated on the progress relating to the implementation of IFSA.
Our Citi Transaction Services continued to develop cross-border Shariah compliant services through the implementation of automated liquidity management solutions. Funds under management total over US$311 million 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.
Industry Awards
Citibank Malaysia was recognised during the year with several award wins in consumer and corporate banking.
We list our awards and accolades on page 32 in this annual report.
A record of appreciation to all Citibankers for their unwavering commitment to the Bank, making these wins possible each year. Also, a note of gratitude to our customers for their continued trust and support extended to us during the year.
Working For And In Community
Financial education has been the focus of our
Citizenship initiatives in country. We have in the last 10 years adopted a singular focus to support financial literacy and inclusion. Annual grants from the Citi
Foundation of over US$210,000 to our local partners
Era Consumer Malaysia and Universiti Putra Malaysia were used to support activities under our Citizenship projects in Malaysia.
The programmes to improve financial behaviours amongst pre-school children and mature women have gained good traction in community. For example, the pre-school financial education programme has been extended to cover a train the trainer programme for kindergarten teachers. Our plans in the coming year will be to include youths in similar financial education programmes and increase our network of local partners.
For 2013, Citi organised 40 “My First Ringgit” classes in suburban and rural locations in Peninsular Malaysia as well as the fourth season of TV programme “Stretching
Your Ringgit.”
The programme included workshops on basic financial education for over 800 kindergarten children. Five
“Training of Trainers” programme for over 200 kindergarten teachers and three focus groups for parents were also organised during the year.
Citi also launched a pilot training initiative for mature women from the low income group working with
Universiti Putra Malaysia and the Tsao Foundation based in Singapore. The CITI-UPM Financial
Empowerment for Mature Women Programme brought together 800 women aged between 40 and 60 years with income levels of below RM3,000 a month.
Workshops have also been planned for members of women groups such as the UPM Woman’s Association
(PERMATA) and National Council of Women’s
Organisation (NCWO). The curriculum includes saving, investment and financial retirement planning.
In the area of Volunteerism, over 700 Citibank employees participated in “Restore Hope for Children”, a project with the United Nations High Commissioner for Refugees (UNHCR). Activities included a feeding programme for 500 refugee children in Kuala Lumpur and visits to 200 orphans in Penang and Johor Bahru.
Our People
Every Citibanker is a valued individual in our organisation. Emphasis is given to professional growth and talent development besides continued support for diversity and work-life balance. Citibank has also been an incubator of local banking talent. Opportunities abound in-country and through our global network for local talent to excel and achieve their career ambitions.
Throughout the year, we made good progress on delivering “The Citibanker Difference” for our employees.
The Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career development opportunities for the top 2% of our best employees across the board. We hired 18 management associates and graduate executives from leading local and foreign universities as part of our ongoing talent recruitment drive.
In addition to the Voice of the Employee platform for employees to engage in improving their work environment and to raise people related or career concerns, the Employee Assistance Programme launched in 2012 is an added support service providing counselling to permanent employees of the Bank.
Sanjeev Nanavati
Chief Executive Officer
Another initiative Citi Live Well to encourage healthy living has been well supported by employees.
KEY BUSINESS PRIORITIES FOR 2014
Customer centricity lies at the heart of our business priorities and will frame all our business interactions and inspire product and service offerings, leveraging on our extensive global network. As the industry in
Malaysia evolves to a more digitised environment,
Citibank has the edge over competition in terms of bringing to market innovative technology for our
Malaysian consumer and corporate clients.
OUTLOOK FOR 2014
Global growth prospects are expected to improve in
2014. The Malaysian economy is expected to register a steady growth of around 5% in 2014.
Malaysia’s financial services sector is likely to see moderate loans growth largely due to the tougher economic environment regionally, pressure on margins and stricter retail lending although underlying fundamentals of the industry remain solid. On the corporate front, prospects are expected to be better especially with the continued progress and positive impact from national transformation initiatives and as local companies expand operations abroad.
At Citibank Malaysia, we anticipate this year to be one of creating greater value and enriching the banking experience of our customers with unparalleled standards of service excellence. We have much to accomplish and the journey ahead while challenging, will present us opportunities to grow.

OVERVIEW
The year 2013 ended on a positive note for the
Malaysian economy, amid global volatility and concerns on stimulus taper effects by the US Federal Reserve’s easing and its impact on emerging market economies.
Moving into 2014, the sluggish global economy showed signs of recovery and growth after a three-year slowdown. Malaysia’s national transformation agenda to create a high income and developed nation by 2020 charted significant progress. The country’s resilience in weathering the uncertainties abroad underscored its robust domestic demand and strong economic fundamentals. GDP growth in 2013 stood at 4.7%.
In the World Bank Doing Business Report 2013,
Malaysia moved six rankings up from 8th to 12th position. Malaysia was also top for five years from
2009 to 2013 for access to credit. In terms of global competitiveness, the World Economic Forum Global
Competitiveness Report 2013-2014 revealed Malaysia as the second most competitive nation in ASEAN and
7th among 25 Asia Pacific countries.
Malaysia’s financial services sector continued to be strong and well capitalised with a high risk-weighted capital adequacy ratio of 14.3% and low net impaired loans ratio of 1.4%. Nevertheless, the industry expects moderate earnings growth in 2014 given rising risks and margin compression.
On the regulatory front, the Financial Services Act 2013
(FSA) and Islamic Financial Services Act 2013 (IFSA) came into force in June 2013, further strengthening the financial sector regulatory and supervisory framework under a single legislative charter for conventional and Islamic financial services.
Consequently, the Banking and Financial Institutions
Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance
Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 were repealed on the same date.
PERFORMANCE HIGHLIGHTS
Citibank recorded pre-tax profit of RM717 million for the financial year ended December 31, 2013. The steady performance although marginally lower than the
RM790 million recorded the previous year, was boosted by the Bank’s high levels of capital, liquidity and operating cash flows.
Total net income was RM533 million in 2013. Net interest income totalled RM1.09 billion in 2013 while non-interest income stood at RM617 million.
During the same period, the Bank’s return on equity before tax was a solid 16.6%. Liquidity continues to be exceptionally strong, with cash and short-term funds and placements with financial institutions in excess of
RM11.69 billion. The Bank’s Risk Weighted Capital
Adequacy Ratio stood at 16.5%.
OPERATIONS REVIEW 2013
Citibank has been at the forefront of technology innovation for the financial services sector since 1959 when we first opened our doors for business in
Malaysia. The Bank has been a prime mover, leveraging on our extensive global network.
We continued in 2013 to drive major innovative campaigns across our different product lines, reinforcing our position as one of the leading global banks in the country.
Citibank has been a pillar of support to local companies and multinational companies growing their business in
Malaysia and in the region. Despite increased competition following the introduction of more liberalisation measures in the financial industry, we remained the Bank of choice for cross border transactions and for clients with regional and international business operations.
We were also the sole international financial advisor to
KLCC Property Holdings Berhad on the creation of the
KLCC Stapled Securities. Citibank acted as the sole international structuring bank in this highly innovative transaction – the first stapled REIT in Malaysia and first Islamic Stapled REIT globally. This award-winning transaction created the largest REIT in Malaysia and the fourth largest in Asia Pacific.
In Islamic banking, Citibank launched an innovative
Islamic investment strategy to enable institutional clients to dynamically adjust their asset allocation to various global Islamic assets according to market trends.
In the Consumer Banking space, we premiered our next-generation automated teller machines (ATM), known as Citibank Express which offers the facilities and convenience for customers to conduct most of their banking transactions including the opening of accounts.
Citibank was also the first bank to introduce a 10-minute home loan approval tool, cutting short the average waiting period of 5-7 days.
In terms of market leadership, Citibank has a leading position in credit cards, FX options, Government bond trading, securities clearing and settlement, and cash management.
The year 2013 also set a new milestone for us in technology innovation when Malaysia became the first country in Asia Pacific to successfully implement Go To
Common within Citi to deliver world-class operating efficiency by driving common processes and technology across Citi’s Consumer Banking businesses globally. Our customers are the key beneficiaries of the investments we make in pursuit of best technology and innovation to enrich their banking experience with us.
CONSUMER BANKING
Credit Cards
Consumers are increasingly discerning especially when choosing credit card options. Matching consumer spending trends and behaviour patterns with their lifestyle needs, we introduced a series of product innovations to the Malaysian market, with various product offerings tailored to suit different customer needs.
Responding to the increasing number of affluent
Malaysian travellers, we launched the Citi Prestige Card
– the first World Elite MasterCard in Asia Pacific. The card is Citi’s first global credit card that leverages on the bank’s unique global footprint and relationships.
Customers are offered unparalleled benefits including a dedicated Citi Prestige Global Concierge. Customers also get complimentary night stays at 800 hotels globally, complimentary airport limo rides home from the Kuala Lumpur International Airport (KLIA) and unlimited access to over 600 airport lounges worldwide.
For frequent travellers, we launched the Citi Premier
Miles American Express® Card, the first market in Asia
Pacific to do so. The card is the best-in-class travel credit card designed where members earn more miles from their everyday spend and enjoy wider choices of redemption from most airlines, complimentary airport limo rides home from KLIA and access to airport lounges in Asia Pacific.
More Malaysians are going digital and preferring to do their banking in this space. Our Citibank Rewards Platinum
Card launched also last year made us the first global bank in Malaysia to pioneer a suite of customisable card services incorporating internet and smartphone technology. With this card, our customers are empowered to control their spending patterns and have the flexibility to select their choice rewards and benefits. Rewards redemption can be done online via smart phones.
In the B2B card payments market, we launched two new commercial cards – the Citibank Business
Signature Card and Citibank Visa Travel Account to secure corporate spends in the Procure-to-Pay and
Travel and Entertainment categories. The card is targeted at mostly larger tier Small-to-Medium
Enterprises and Middle Market Enterprises.
CEO’S STATEMENT
Cardholders enjoy privileges at over 2,000 outlets in the country apart from the more than 3,000 Citibank credit card deals across the globe.
Our market leadership in credit card usage underscores our ability to deliver best value propositions and distinctive services to cardholders.
Retail Banking
In 2013, the capital markets produced their share of uncertainty, first of liquidity and uncertainty and the second, of taper fears. Our constant focus during these times was to address the dynamic needs of our clients, to deepen our relationships and to improve return on investments.
Customer experience is top priority at Citibank. In
January 2013, we launched the Citibank Express automated teller machine. The concept for Citibank
Express grew out of the award-winning Smart Banking project launched in 2008. It is a sophisticated machine equipped with an online banking connection, cheque deposit function and placement of time deposits, amongst other features. Customers can also communicate with a customer service representative anytime through its video-conferencing capability. We believe that Citibank Express will simplify the lives of our customers and revolutionise the retail banking experience in country.
We also enhanced our Wealth Management proposition in 2013 through the introduction of a new online Wealth
Portfolio tool for our CitiGold customers.
Through our partnership in Malaysia with Manulife
Asset Management Services, Citi launched the Asia
Target Maturity Bond Fund. This was a unique opportunity for our high net worth investors to diversify their investment portfolio. We were also the first foreign bank to launch the Private Retirement
Scheme (PRS) in Malaysia.
On the awards front, Citi won the Principal Financial
Group’s Best IUTA for Bond Fund Award in 2013 for the fifth consecutive year. This award honours Citi for its outstanding performance in terms of Unit Trust sales for CIMB-Principal in Malaysia.
The year also saw us leveraging our strong research and advisory services to organise our Leadership
Series of market outlook presentations for CitiGold and investment customers. Three seminars were held in
Kuala Lumpur, Penang and Johor Bahru.
Mortgages
Bank Negara Malaysia enhanced its Responsible
Financing guidelines in 2013 and introduced more measures to contain increasing household debt and to encourage prudent lending.
Citi leveraged the more level playing field in the market and drove mortgage acquisition targeting affluent and emerging affluent customer segments while strengthening our relationship with top tier developers and real estate agents. Our 10-minute home loan approval proposition resulted in a 3% rise in end net receivables compared to the previous year. Mortgage booking for the year increased by 50% and loan drawdown by 92%.
INSTITUTIONAL CLIENT GROUP
Treasury and Trade Solutions
Citibank Malaysia has a clear market leadership in the digital space especially in global transactions for our corporate and institutional clients.
We launched in 2013 CitiDirect BE, our web-based banking platform with all corporate banking functions in a single security-protected place, giving customers centralised access to their account information in real time, globally from either their personal computers or mobile devices.
Client response has been positive especially on the data analytics tools available using cloud computing technology which gives them better insights into their operational flows and electronic statements.
The automated global cash management solutions enable clients to control their offshore operations from
Malaysia and support development of the treasury management industry locally.
Trade finance experienced strong demand from the expanding domestic economy. Import and supply chain services registered high growth in various industry segments. Citibank was 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.
Securities Services
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.
We expect to retain our Top-Rated status in the 2013
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.
06
Citibank Berhad ANNUAL REPORT 2013
SECURITIES AND BANKING
Corporate Banking
Citibank Malaysia had a fair share of prominent deals in 2013. A significant win for us was the opportunity we had to conceptualise and implement the KLCC
Stapled Securities for KLCC Property Holdings Berhad as sole international financial advisor. This highly innovative transaction was well received by the market and underscored Citi’s global financial leadership and network.
Other notable deals for us included:
■ The US$1.5 billion IPO for Astro where Citi acted as joint bookrunner. The IPO was the third largest IPO in
Malaysia. The transaction offered investors a unique blend of yield and growth of a business that has dominant market share in the cable TV business.
■ The IGB Property US$210 million REIT IPO where
Citi acted as joint bookrunner for this REIT involving one of the most successful shopping malls in Malaysia. The transaction is notable as it set new benchmarks for yields on retail property assets.
■ Malaysia Airlines US$302 million ECA-backed bonds where Citi acted as joint bookrunner and joint structuring agent for the bonds, taking out the
ECA-backed bank financing for four A330s. This transaction is the first ECA-backed bond issued out of Asia Pacific and allowed MAS the opportunity of a lowered cost of long term financing.
■ Sime Darby US$1.5 billion multi-currency Sukuk programme where Citi acted as joint ratings advisor and lead manager for the setting up of this Sukuk programme and joint book-runner for the US$800 million Sukuk issued under this programme. Citi assisted Sime to achieve the highest ratings thus far for a Malaysian issuer; 2 of the 3 rating agencies ascribed A flat ratings for the issue.
■ Employees Provident Fund GBP350 million
Structured Financing where Citi acted as lead arranger in this transaction to part-finance property purchase in UK. This is a repeat transaction following a highly successful first financing transaction led by Citi in 2012.
Global Markets
Citi was voted best foreign exchange (FX) service provider by corporates in Asia in the Asiamoney industry poll for the second consecutive year. The poll surveyed 3,504 senior treasury, financial and management officials based in Asia, representing
3,044 different institutions. Apart from the regional win, Citibank Malaysia was featured in the Best for
Overall FX Services category. Citibank Malaysia also won the top spot in overall results for the 2013
Euromoney FX survey. Our pole position in secondary trading of government bonds was again reaffirmed in the Bank Negara Malaysia 2013 league table.
Islamic Banking Division
2013 has been a year of transition and adjustment largely due to the implementation of the Islamic
Financial Services Act 2013 (IFSA) in 2013.
We were an active participant in the various transitional programmes organised by Bank Negara to keep industry players updated on the progress relating to the implementation of IFSA.
Our Citi Transaction Services continued to develop cross-border Shariah compliant services through the implementation of automated liquidity management solutions. Funds under management total over US$311 million 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.
Industry Awards
Citibank Malaysia was recognised during the year with several award wins in consumer and corporate banking.
We list our awards and accolades on page 32 in this annual report.
A record of appreciation to all Citibankers for their unwavering commitment to the Bank, making these wins possible each year. Also, a note of gratitude to our customers for their continued trust and support extended to us during the year.
Working For And In Community
Financial education has been the focus of our
Citizenship initiatives in country. We have in the last 10 years adopted a singular focus to support financial literacy and inclusion. Annual grants from the Citi
Foundation of over US$210,000 to our local partners
Era Consumer Malaysia and Universiti Putra Malaysia were used to support activities under our Citizenship projects in Malaysia.
The programmes to improve financial behaviours amongst pre-school children and mature women have gained good traction in community. For example, the pre-school financial education programme has been extended to cover a train the trainer programme for kindergarten teachers. Our plans in the coming year will be to include youths in similar financial education programmes and increase our network of local partners.
For 2013, Citi organised 40 “My First Ringgit” classes in suburban and rural locations in Peninsular Malaysia as well as the fourth season of TV programme “Stretching
Your Ringgit.”
The programme included workshops on basic financial education for over 800 kindergarten children. Five
“Training of Trainers” programme for over 200 kindergarten teachers and three focus groups for parents were also organised during the year.
Citi also launched a pilot training initiative for mature women from the low income group working with
Universiti Putra Malaysia and the Tsao Foundation based in Singapore. The CITI-UPM Financial
Empowerment for Mature Women Programme brought together 800 women aged between 40 and 60 years with income levels of below RM3,000 a month.
Workshops have also been planned for members of women groups such as the UPM Woman’s Association
(PERMATA) and National Council of Women’s
Organisation (NCWO). The curriculum includes saving, investment and financial retirement planning.
In the area of Volunteerism, over 700 Citibank employees participated in “Restore Hope for Children”, a project with the United Nations High Commissioner for Refugees (UNHCR). Activities included a feeding programme for 500 refugee children in Kuala Lumpur and visits to 200 orphans in Penang and Johor Bahru.
Our People
Every Citibanker is a valued individual in our organisation. Emphasis is given to professional growth and talent development besides continued support for diversity and work-life balance. Citibank has also been an incubator of local banking talent. Opportunities abound in-country and through our global network for local talent to excel and achieve their career ambitions.
Throughout the year, we made good progress on delivering “The Citibanker Difference” for our employees.
The Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career development opportunities for the top 2% of our best employees across the board. We hired 18 management associates and graduate executives from leading local and foreign universities as part of our ongoing talent recruitment drive.
In addition to the Voice of the Employee platform for employees to engage in improving their work environment and to raise people related or career concerns, the Employee Assistance Programme launched in 2012 is an added support service providing counselling to permanent employees of the Bank.
Sanjeev Nanavati
Chief Executive Officer
Another initiative Citi Live Well to encourage healthy living has been well supported by employees.
KEY BUSINESS PRIORITIES FOR 2014
Customer centricity lies at the heart of our business priorities and will frame all our business interactions and inspire product and service offerings, leveraging on our extensive global network. As the industry in
Malaysia evolves to a more digitised environment,
Citibank has the edge over competition in terms of bringing to market innovative technology for our
Malaysian consumer and corporate clients.
OUTLOOK FOR 2014
Global growth prospects are expected to improve in
2014. The Malaysian economy is expected to register a steady growth of around 5% in 2014.
Malaysia’s financial services sector is likely to see moderate loans growth largely due to the tougher economic environment regionally, pressure on margins and stricter retail lending although underlying fundamentals of the industry remain solid. On the corporate front, prospects are expected to be better especially with the continued progress and positive impact from national transformation initiatives and as local companies expand operations abroad.
At Citibank Malaysia, we anticipate this year to be one of creating greater value and enriching the banking experience of our customers with unparalleled standards of service excellence. We have much to accomplish and the journey ahead while challenging, will present us opportunities to grow.

OVERVIEW
The year 2013 ended on a positive note for the
Malaysian economy, amid global volatility and concerns on stimulus taper effects by the US Federal Reserve’s easing and its impact on emerging market economies.
Moving into 2014, the sluggish global economy showed signs of recovery and growth after a three-year slowdown. Malaysia’s national transformation agenda to create a high income and developed nation by 2020 charted significant progress. The country’s resilience in weathering the uncertainties abroad underscored its robust domestic demand and strong economic fundamentals. GDP growth in 2013 stood at 4.7%.
In the World Bank Doing Business Report 2013,
Malaysia moved six rankings up from 8th to 12th position. Malaysia was also top for five years from
2009 to 2013 for access to credit. In terms of global competitiveness, the World Economic Forum Global
Competitiveness Report 2013-2014 revealed Malaysia as the second most competitive nation in ASEAN and
7th among 25 Asia Pacific countries.
Malaysia’s financial services sector continued to be strong and well capitalised with a high risk-weighted capital adequacy ratio of 14.3% and low net impaired loans ratio of 1.4%. Nevertheless, the industry expects moderate earnings growth in 2014 given rising risks and margin compression.
On the regulatory front, the Financial Services Act 2013
(FSA) and Islamic Financial Services Act 2013 (IFSA) came into force in June 2013, further strengthening the financial sector regulatory and supervisory framework under a single legislative charter for conventional and Islamic financial services.
Consequently, the Banking and Financial Institutions
Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance
Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 were repealed on the same date.
PERFORMANCE HIGHLIGHTS
Citibank recorded pre-tax profit of RM717 million for the financial year ended December 31, 2013. The steady performance although marginally lower than the
RM790 million recorded the previous year, was boosted by the Bank’s high levels of capital, liquidity and operating cash flows.
Total net income was RM533 million in 2013. Net interest income totalled RM1.09 billion in 2013 while non-interest income stood at RM617 million.
During the same period, the Bank’s return on equity before tax was a solid 16.6%. Liquidity continues to be exceptionally strong, with cash and short-term funds and placements with financial institutions in excess of
RM11.69 billion. The Bank’s Risk Weighted Capital
Adequacy Ratio stood at 16.5%.
OPERATIONS REVIEW 2013
Citibank has been at the forefront of technology innovation for the financial services sector since 1959 when we first opened our doors for business in
Malaysia. The Bank has been a prime mover, leveraging on our extensive global network.
We continued in 2013 to drive major innovative campaigns across our different product lines, reinforcing our position as one of the leading global banks in the country.
Citibank has been a pillar of support to local companies and multinational companies growing their business in
Malaysia and in the region. Despite increased competition following the introduction of more liberalisation measures in the financial industry, we remained the Bank of choice for cross border transactions and for clients with regional and international business operations.
We were also the sole international financial advisor to
KLCC Property Holdings Berhad on the creation of the
KLCC Stapled Securities. Citibank acted as the sole international structuring bank in this highly innovative transaction – the first stapled REIT in Malaysia and first Islamic Stapled REIT globally. This award-winning transaction created the largest REIT in Malaysia and the fourth largest in Asia Pacific.
In Islamic banking, Citibank launched an innovative
Islamic investment strategy to enable institutional clients to dynamically adjust their asset allocation to various global Islamic assets according to market trends.
In the Consumer Banking space, we premiered our next-generation automated teller machines (ATM), known as Citibank Express which offers the facilities and convenience for customers to conduct most of their banking transactions including the opening of accounts.
Citibank was also the first bank to introduce a 10-minute home loan approval tool, cutting short the average waiting period of 5-7 days.
In terms of market leadership, Citibank has a leading position in credit cards, FX options, Government bond trading, securities clearing and settlement, and cash management.
The year 2013 also set a new milestone for us in technology innovation when Malaysia became the first country in Asia Pacific to successfully implement Go To
Common within Citi to deliver world-class operating efficiency by driving common processes and technology across Citi’s Consumer Banking businesses globally. Our customers are the key beneficiaries of the investments we make in pursuit of best technology and innovation to enrich their banking experience with us.
CONSUMER BANKING
Credit Cards
Consumers are increasingly discerning especially when choosing credit card options. Matching consumer spending trends and behaviour patterns with their lifestyle needs, we introduced a series of product innovations to the Malaysian market, with various product offerings tailored to suit different customer needs.
Responding to the increasing number of affluent
Malaysian travellers, we launched the Citi Prestige Card
– the first World Elite MasterCard in Asia Pacific. The card is Citi’s first global credit card that leverages on the bank’s unique global footprint and relationships.
Customers are offered unparalleled benefits including a dedicated Citi Prestige Global Concierge. Customers also get complimentary night stays at 800 hotels globally, complimentary airport limo rides home from the Kuala Lumpur International Airport (KLIA) and unlimited access to over 600 airport lounges worldwide.
For frequent travellers, we launched the Citi Premier
Miles American Express® Card, the first market in Asia
Pacific to do so. The card is the best-in-class travel credit card designed where members earn more miles from their everyday spend and enjoy wider choices of redemption from most airlines, complimentary airport limo rides home from KLIA and access to airport lounges in Asia Pacific.
More Malaysians are going digital and preferring to do their banking in this space. Our Citibank Rewards Platinum
Card launched also last year made us the first global bank in Malaysia to pioneer a suite of customisable card services incorporating internet and smartphone technology. With this card, our customers are empowered to control their spending patterns and have the flexibility to select their choice rewards and benefits. Rewards redemption can be done online via smart phones.
In the B2B card payments market, we launched two new commercial cards – the Citibank Business
Signature Card and Citibank Visa Travel Account to secure corporate spends in the Procure-to-Pay and
Travel and Entertainment categories. The card is targeted at mostly larger tier Small-to-Medium
Enterprises and Middle Market Enterprises.
Cardholders enjoy privileges at over 2,000 outlets in the country apart from the more than 3,000 Citibank credit card deals across the globe.
Our market leadership in credit card usage underscores our ability to deliver best value propositions and distinctive services to cardholders.
Retail Banking
In 2013, the capital markets produced their share of uncertainty, first of liquidity and uncertainty and the second, of taper fears. Our constant focus during these times was to address the dynamic needs of our clients, to deepen our relationships and to improve return on investments.
Customer experience is top priority at Citibank. In
January 2013, we launched the Citibank Express automated teller machine. The concept for Citibank
Express grew out of the award-winning Smart Banking project launched in 2008. It is a sophisticated machine equipped with an online banking connection, cheque deposit function and placement of time deposits, amongst other features. Customers can also communicate with a customer service representative anytime through its video-conferencing capability. We believe that Citibank Express will simplify the lives of our customers and revolutionise the retail banking experience in country.
We also enhanced our Wealth Management proposition in 2013 through the introduction of a new online Wealth
Portfolio tool for our CitiGold customers.
Through our partnership in Malaysia with Manulife
Asset Management Services, Citi launched the Asia
Target Maturity Bond Fund. This was a unique opportunity for our high net worth investors to diversify their investment portfolio. We were also the first foreign bank to launch the Private Retirement
Scheme (PRS) in Malaysia.
On the awards front, Citi won the Principal Financial
Group’s Best IUTA for Bond Fund Award in 2013 for the fifth consecutive year. This award honours Citi for its outstanding performance in terms of Unit Trust sales for CIMB-Principal in Malaysia.
The year also saw us leveraging our strong research and advisory services to organise our Leadership
Series of market outlook presentations for CitiGold and investment customers. Three seminars were held in
Kuala Lumpur, Penang and Johor Bahru.
Mortgages
Bank Negara Malaysia enhanced its Responsible
Financing guidelines in 2013 and introduced more measures to contain increasing household debt and to encourage prudent lending.
Citi leveraged the more level playing field in the market and drove mortgage acquisition targeting affluent and emerging affluent customer segments while strengthening our relationship with top tier developers and real estate agents. Our 10-minute home loan approval proposition resulted in a 3% rise in end net receivables compared to the previous year. Mortgage booking for the year increased by 50% and loan drawdown by 92%.
INSTITUTIONAL CLIENT GROUP
Treasury and Trade Solutions
Citibank Malaysia has a clear market leadership in the digital space especially in global transactions for our corporate and institutional clients.
We launched in 2013 CitiDirect BE, our web-based banking platform with all corporate banking functions in a single security-protected place, giving customers centralised access to their account information in real time, globally from either their personal computers or mobile devices.
Client response has been positive especially on the data analytics tools available using cloud computing technology which gives them better insights into their operational flows and electronic statements.
The automated global cash management solutions enable clients to control their offshore operations from
Malaysia and support development of the treasury management industry locally.
Trade finance experienced strong demand from the expanding domestic economy. Import and supply chain services registered high growth in various industry segments. Citibank was 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.
Securities Services
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.
We expect to retain our Top-Rated status in the 2013
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.
CEO’S STATEMENT
SECURITIES AND BANKING
Corporate Banking
Citibank Malaysia had a fair share of prominent deals in 2013. A significant win for us was the opportunity we had to conceptualise and implement the KLCC
Stapled Securities for KLCC Property Holdings Berhad as sole international financial advisor. This highly innovative transaction was well received by the market and underscored Citi’s global financial leadership and network.
Other notable deals for us included:
■ The US$1.5 billion IPO for Astro where Citi acted as joint bookrunner. The IPO was the third largest IPO in
Malaysia. The transaction offered investors a unique blend of yield and growth of a business that has dominant market share in the cable TV business.
■ The IGB Property US$210 million REIT IPO where
Citi acted as joint bookrunner for this REIT involving one of the most successful shopping malls in Malaysia. The transaction is notable as it set new benchmarks for yields on retail property assets.
■ Malaysia Airlines US$302 million ECA-backed bonds where Citi acted as joint bookrunner and joint structuring agent for the bonds, taking out the
ECA-backed bank financing for four A330s. This transaction is the first ECA-backed bond issued out of Asia Pacific and allowed MAS the opportunity of a lowered cost of long term financing.
■ Sime Darby US$1.5 billion multi-currency Sukuk programme where Citi acted as joint ratings advisor and lead manager for the setting up of this Sukuk programme and joint book-runner for the US$800 million Sukuk issued under this programme. Citi assisted Sime to achieve the highest ratings thus far for a Malaysian issuer; 2 of the 3 rating agencies ascribed A flat ratings for the issue.
■ Employees Provident Fund GBP350 million
Structured Financing where Citi acted as lead arranger in this transaction to part-finance property purchase in UK. This is a repeat transaction following a highly successful first financing transaction led by Citi in 2012.
Global Markets
Citi was voted best foreign exchange (FX) service provider by corporates in Asia in the Asiamoney industry poll for the second consecutive year. The poll surveyed 3,504 senior treasury, financial and management officials based in Asia, representing
3,044 different institutions. Apart from the regional win, Citibank Malaysia was featured in the Best for
Overall FX Services category. Citibank Malaysia also won the top spot in overall results for the 2013
Euromoney FX survey. Our pole position in secondary trading of government bonds was again reaffirmed in the Bank Negara Malaysia 2013 league table.
Islamic Banking Division
2013 has been a year of transition and adjustment largely due to the implementation of the Islamic
Financial Services Act 2013 (IFSA) in 2013.
We were an active participant in the various transitional programmes organised by Bank Negara to keep industry players updated on the progress relating to the implementation of IFSA.
Our Citi Transaction Services continued to develop cross-border Shariah compliant services through the implementation of automated liquidity management solutions. Funds under management total over US$311 million 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.
Industry Awards
Citibank Malaysia was recognised during the year with several award wins in consumer and corporate banking.
We list our awards and accolades on page 32 in this annual report.
A record of appreciation to all Citibankers for their unwavering commitment to the Bank, making these wins possible each year. Also, a note of gratitude to our customers for their continued trust and support extended to us during the year.
Working For And In Community
Financial education has been the focus of our
Citizenship initiatives in country. We have in the last 10 years adopted a singular focus to support financial literacy and inclusion. Annual grants from the Citi
Foundation of over US$210,000 to our local partners
Era Consumer Malaysia and Universiti Putra Malaysia were used to support activities under our Citizenship projects in Malaysia.
The programmes to improve financial behaviours amongst pre-school children and mature women have gained good traction in community. For example, the pre-school financial education programme has been extended to cover a train the trainer programme for kindergarten teachers. Our plans in the coming year will be to include youths in similar financial education programmes and increase our network of local partners.
07
Citibank Berhad ANNUAL REPORT 2013
For 2013, Citi organised 40 “My First Ringgit” classes in suburban and rural locations in Peninsular Malaysia as well as the fourth season of TV programme “Stretching
Your Ringgit.”
The programme included workshops on basic financial education for over 800 kindergarten children. Five
“Training of Trainers” programme for over 200 kindergarten teachers and three focus groups for parents were also organised during the year.
Citi also launched a pilot training initiative for mature women from the low income group working with
Universiti Putra Malaysia and the Tsao Foundation based in Singapore. The CITI-UPM Financial
Empowerment for Mature Women Programme brought together 800 women aged between 40 and 60 years with income levels of below RM3,000 a month.
Workshops have also been planned for members of women groups such as the UPM Woman’s Association
(PERMATA) and National Council of Women’s
Organisation (NCWO). The curriculum includes saving, investment and financial retirement planning.
In the area of Volunteerism, over 700 Citibank employees participated in “Restore Hope for Children”, a project with the United Nations High Commissioner for Refugees (UNHCR). Activities included a feeding programme for 500 refugee children in Kuala Lumpur and visits to 200 orphans in Penang and Johor Bahru.
Our People
Every Citibanker is a valued individual in our organisation. Emphasis is given to professional growth and talent development besides continued support for diversity and work-life balance. Citibank has also been an incubator of local banking talent. Opportunities abound in-country and through our global network for local talent to excel and achieve their career ambitions.
Throughout the year, we made good progress on delivering “The Citibanker Difference” for our employees.
The Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career development opportunities for the top 2% of our best employees across the board. We hired 18 management associates and graduate executives from leading local and foreign universities as part of our ongoing talent recruitment drive.
In addition to the Voice of the Employee platform for employees to engage in improving their work environment and to raise people related or career concerns, the Employee Assistance Programme launched in 2012 is an added support service providing counselling to permanent employees of the Bank.
Sanjeev Nanavati
Chief Executive Officer
Another initiative Citi Live Well to encourage healthy living has been well supported by employees.
KEY BUSINESS PRIORITIES FOR 2014
Customer centricity lies at the heart of our business priorities and will frame all our business interactions and inspire product and service offerings, leveraging on our extensive global network. As the industry in
Malaysia evolves to a more digitised environment,
Citibank has the edge over competition in terms of bringing to market innovative technology for our
Malaysian consumer and corporate clients.
OUTLOOK FOR 2014
Global growth prospects are expected to improve in
2014. The Malaysian economy is expected to register a steady growth of around 5% in 2014.
Malaysia’s financial services sector is likely to see moderate loans growth largely due to the tougher economic environment regionally, pressure on margins and stricter retail lending although underlying fundamentals of the industry remain solid. On the corporate front, prospects are expected to be better especially with the continued progress and positive impact from national transformation initiatives and as local companies expand operations abroad.
At Citibank Malaysia, we anticipate this year to be one of creating greater value and enriching the banking experience of our customers with unparalleled standards of service excellence. We have much to accomplish and the journey ahead while challenging, will present us opportunities to grow.

OVERVIEW
The year 2013 ended on a positive note for the
Malaysian economy, amid global volatility and concerns on stimulus taper effects by the US Federal Reserve’s easing and its impact on emerging market economies.
Moving into 2014, the sluggish global economy showed signs of recovery and growth after a three-year slowdown. Malaysia’s national transformation agenda to create a high income and developed nation by 2020 charted significant progress. The country’s resilience in weathering the uncertainties abroad underscored its robust domestic demand and strong economic fundamentals. GDP growth in 2013 stood at 4.7%.
In the World Bank Doing Business Report 2013,
Malaysia moved six rankings up from 8th to 12th position. Malaysia was also top for five years from
2009 to 2013 for access to credit. In terms of global competitiveness, the World Economic Forum Global
Competitiveness Report 2013-2014 revealed Malaysia as the second most competitive nation in ASEAN and
7th among 25 Asia Pacific countries.
Malaysia’s financial services sector continued to be strong and well capitalised with a high risk-weighted capital adequacy ratio of 14.3% and low net impaired loans ratio of 1.4%. Nevertheless, the industry expects moderate earnings growth in 2014 given rising risks and margin compression.
On the regulatory front, the Financial Services Act 2013
(FSA) and Islamic Financial Services Act 2013 (IFSA) came into force in June 2013, further strengthening the financial sector regulatory and supervisory framework under a single legislative charter for conventional and Islamic financial services.
Consequently, the Banking and Financial Institutions
Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance
Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 were repealed on the same date.
PERFORMANCE HIGHLIGHTS
Citibank recorded pre-tax profit of RM717 million for the financial year ended December 31, 2013. The steady performance although marginally lower than the
RM790 million recorded the previous year, was boosted by the Bank’s high levels of capital, liquidity and operating cash flows.
Total net income was RM533 million in 2013. Net interest income totalled RM1.09 billion in 2013 while non-interest income stood at RM617 million.
During the same period, the Bank’s return on equity before tax was a solid 16.6%. Liquidity continues to be exceptionally strong, with cash and short-term funds and placements with financial institutions in excess of
RM11.69 billion. The Bank’s Risk Weighted Capital
Adequacy Ratio stood at 16.5%.
OPERATIONS REVIEW 2013
Citibank has been at the forefront of technology innovation for the financial services sector since 1959 when we first opened our doors for business in
Malaysia. The Bank has been a prime mover, leveraging on our extensive global network.
We continued in 2013 to drive major innovative campaigns across our different product lines, reinforcing our position as one of the leading global banks in the country.
Citibank has been a pillar of support to local companies and multinational companies growing their business in
Malaysia and in the region. Despite increased competition following the introduction of more liberalisation measures in the financial industry, we remained the Bank of choice for cross border transactions and for clients with regional and international business operations.
We were also the sole international financial advisor to
KLCC Property Holdings Berhad on the creation of the
KLCC Stapled Securities. Citibank acted as the sole international structuring bank in this highly innovative transaction – the first stapled REIT in Malaysia and first Islamic Stapled REIT globally. This award-winning transaction created the largest REIT in Malaysia and the fourth largest in Asia Pacific.
In Islamic banking, Citibank launched an innovative
Islamic investment strategy to enable institutional clients to dynamically adjust their asset allocation to various global Islamic assets according to market trends.
In the Consumer Banking space, we premiered our next-generation automated teller machines (ATM), known as Citibank Express which offers the facilities and convenience for customers to conduct most of their banking transactions including the opening of accounts.
Citibank was also the first bank to introduce a 10-minute home loan approval tool, cutting short the average waiting period of 5-7 days.
In terms of market leadership, Citibank has a leading position in credit cards, FX options, Government bond trading, securities clearing and settlement, and cash management.
The year 2013 also set a new milestone for us in technology innovation when Malaysia became the first country in Asia Pacific to successfully implement Go To
Common within Citi to deliver world-class operating efficiency by driving common processes and technology across Citi’s Consumer Banking businesses globally. Our customers are the key beneficiaries of the investments we make in pursuit of best technology and innovation to enrich their banking experience with us.
CONSUMER BANKING
Credit Cards
Consumers are increasingly discerning especially when choosing credit card options. Matching consumer spending trends and behaviour patterns with their lifestyle needs, we introduced a series of product innovations to the Malaysian market, with various product offerings tailored to suit different customer needs.
Responding to the increasing number of affluent
Malaysian travellers, we launched the Citi Prestige Card
– the first World Elite MasterCard in Asia Pacific. The card is Citi’s first global credit card that leverages on the bank’s unique global footprint and relationships.
Customers are offered unparalleled benefits including a dedicated Citi Prestige Global Concierge. Customers also get complimentary night stays at 800 hotels globally, complimentary airport limo rides home from the Kuala Lumpur International Airport (KLIA) and unlimited access to over 600 airport lounges worldwide.
For frequent travellers, we launched the Citi Premier
Miles American Express® Card, the first market in Asia
Pacific to do so. The card is the best-in-class travel credit card designed where members earn more miles from their everyday spend and enjoy wider choices of redemption from most airlines, complimentary airport limo rides home from KLIA and access to airport lounges in Asia Pacific.
More Malaysians are going digital and preferring to do their banking in this space. Our Citibank Rewards Platinum
Card launched also last year made us the first global bank in Malaysia to pioneer a suite of customisable card services incorporating internet and smartphone technology. With this card, our customers are empowered to control their spending patterns and have the flexibility to select their choice rewards and benefits. Rewards redemption can be done online via smart phones.
In the B2B card payments market, we launched two new commercial cards – the Citibank Business
Signature Card and Citibank Visa Travel Account to secure corporate spends in the Procure-to-Pay and
Travel and Entertainment categories. The card is targeted at mostly larger tier Small-to-Medium
Enterprises and Middle Market Enterprises.
Cardholders enjoy privileges at over 2,000 outlets in the country apart from the more than 3,000 Citibank credit card deals across the globe.
Our market leadership in credit card usage underscores our ability to deliver best value propositions and distinctive services to cardholders.
Retail Banking
In 2013, the capital markets produced their share of uncertainty, first of liquidity and uncertainty and the second, of taper fears. Our constant focus during these times was to address the dynamic needs of our clients, to deepen our relationships and to improve return on investments.
Customer experience is top priority at Citibank. In
January 2013, we launched the Citibank Express automated teller machine. The concept for Citibank
Express grew out of the award-winning Smart Banking project launched in 2008. It is a sophisticated machine equipped with an online banking connection, cheque deposit function and placement of time deposits, amongst other features. Customers can also communicate with a customer service representative anytime through its video-conferencing capability. We believe that Citibank Express will simplify the lives of our customers and revolutionise the retail banking experience in country.
We also enhanced our Wealth Management proposition in 2013 through the introduction of a new online Wealth
Portfolio tool for our CitiGold customers.
Through our partnership in Malaysia with Manulife
Asset Management Services, Citi launched the Asia
Target Maturity Bond Fund. This was a unique opportunity for our high net worth investors to diversify their investment portfolio. We were also the first foreign bank to launch the Private Retirement
Scheme (PRS) in Malaysia.
On the awards front, Citi won the Principal Financial
Group’s Best IUTA for Bond Fund Award in 2013 for the fifth consecutive year. This award honours Citi for its outstanding performance in terms of Unit Trust sales for CIMB-Principal in Malaysia.
The year also saw us leveraging our strong research and advisory services to organise our Leadership
Series of market outlook presentations for CitiGold and investment customers. Three seminars were held in
Kuala Lumpur, Penang and Johor Bahru.
Mortgages
Bank Negara Malaysia enhanced its Responsible
Financing guidelines in 2013 and introduced more measures to contain increasing household debt and to encourage prudent lending.
Citi leveraged the more level playing field in the market and drove mortgage acquisition targeting affluent and emerging affluent customer segments while strengthening our relationship with top tier developers and real estate agents. Our 10-minute home loan approval proposition resulted in a 3% rise in end net receivables compared to the previous year. Mortgage booking for the year increased by 50% and loan drawdown by 92%.
INSTITUTIONAL CLIENT GROUP
Treasury and Trade Solutions
Citibank Malaysia has a clear market leadership in the digital space especially in global transactions for our corporate and institutional clients.
We launched in 2013 CitiDirect BE, our web-based banking platform with all corporate banking functions in a single security-protected place, giving customers centralised access to their account information in real time, globally from either their personal computers or mobile devices.
Client response has been positive especially on the data analytics tools available using cloud computing technology which gives them better insights into their operational flows and electronic statements.
The automated global cash management solutions enable clients to control their offshore operations from
Malaysia and support development of the treasury management industry locally.
Trade finance experienced strong demand from the expanding domestic economy. Import and supply chain services registered high growth in various industry segments. Citibank was 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.
Securities Services
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.
We expect to retain our Top-Rated status in the 2013
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.
SECURITIES AND BANKING
Corporate Banking
Citibank Malaysia had a fair share of prominent deals in 2013. A significant win for us was the opportunity we had to conceptualise and implement the KLCC
Stapled Securities for KLCC Property Holdings Berhad as sole international financial advisor. This highly innovative transaction was well received by the market and underscored Citi’s global financial leadership and network.
Other notable deals for us included:
■ The US$1.5 billion IPO for Astro where Citi acted as joint bookrunner. The IPO was the third largest IPO in
Malaysia. The transaction offered investors a unique blend of yield and growth of a business that has dominant market share in the cable TV business.
■ The IGB Property US$210 million REIT IPO where
Citi acted as joint bookrunner for this REIT involving one of the most successful shopping malls in Malaysia. The transaction is notable as it set new benchmarks for yields on retail property assets.
■ Malaysia Airlines US$302 million ECA-backed bonds where Citi acted as joint bookrunner and joint structuring agent for the bonds, taking out the
ECA-backed bank financing for four A330s. This transaction is the first ECA-backed bond issued out of Asia Pacific and allowed MAS the opportunity of a lowered cost of long term financing.
■ Sime Darby US$1.5 billion multi-currency Sukuk programme where Citi acted as joint ratings advisor and lead manager for the setting up of this Sukuk programme and joint book-runner for the US$800 million Sukuk issued under this programme. Citi assisted Sime to achieve the highest ratings thus far for a Malaysian issuer; 2 of the 3 rating agencies ascribed A flat ratings for the issue.
■ Employees Provident Fund GBP350 million
Structured Financing where Citi acted as lead arranger in this transaction to part-finance property purchase in UK. This is a repeat transaction following a highly successful first financing transaction led by Citi in 2012.
Global Markets
Citi was voted best foreign exchange (FX) service provider by corporates in Asia in the Asiamoney industry poll for the second consecutive year. The poll surveyed 3,504 senior treasury, financial and management officials based in Asia, representing
3,044 different institutions. Apart from the regional win, Citibank Malaysia was featured in the Best for
Overall FX Services category. Citibank Malaysia also won the top spot in overall results for the 2013
Euromoney FX survey. Our pole position in secondary trading of government bonds was again reaffirmed in the Bank Negara Malaysia 2013 league table.
Islamic Banking Division
2013 has been a year of transition and adjustment largely due to the implementation of the Islamic
Financial Services Act 2013 (IFSA) in 2013.
We were an active participant in the various transitional programmes organised by Bank Negara to keep industry players updated on the progress relating to the implementation of IFSA.
Our Citi Transaction Services continued to develop cross-border Shariah compliant services through the implementation of automated liquidity management solutions. Funds under management total over US$311 million 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.
Industry Awards
Citibank Malaysia was recognised during the year with several award wins in consumer and corporate banking.
We list our awards and accolades on page 32 in this annual report.
A record of appreciation to all Citibankers for their unwavering commitment to the Bank, making these wins possible each year. Also, a note of gratitude to our customers for their continued trust and support extended to us during the year.
Working For And In Community
Financial education has been the focus of our
Citizenship initiatives in country. We have in the last 10 years adopted a singular focus to support financial literacy and inclusion. Annual grants from the Citi
Foundation of over US$210,000 to our local partners
Era Consumer Malaysia and Universiti Putra Malaysia were used to support activities under our Citizenship projects in Malaysia.
The programmes to improve financial behaviours amongst pre-school children and mature women have gained good traction in community. For example, the pre-school financial education programme has been extended to cover a train the trainer programme for kindergarten teachers. Our plans in the coming year will be to include youths in similar financial education programmes and increase our network of local partners.
CEO’S STATEMENT
For 2013, Citi organised 40 “My First Ringgit” classes in suburban and rural locations in Peninsular Malaysia as well as the fourth season of TV programme “Stretching
Your Ringgit.”
The programme included workshops on basic financial education for over 800 kindergarten children. Five
“Training of Trainers” programme for over 200 kindergarten teachers and three focus groups for parents were also organised during the year.
Citi also launched a pilot training initiative for mature women from the low income group working with
Universiti Putra Malaysia and the Tsao Foundation based in Singapore. The CITI-UPM Financial
Empowerment for Mature Women Programme brought together 800 women aged between 40 and 60 years with income levels of below RM3,000 a month.
Workshops have also been planned for members of women groups such as the UPM Woman’s Association
(PERMATA) and National Council of Women’s
Organisation (NCWO). The curriculum includes saving, investment and financial retirement planning.
In the area of Volunteerism, over 700 Citibank employees participated in “Restore Hope for Children”, a project with the United Nations High Commissioner for Refugees (UNHCR). Activities included a feeding programme for 500 refugee children in Kuala Lumpur and visits to 200 orphans in Penang and Johor Bahru.
Our People
Every Citibanker is a valued individual in our organisation. Emphasis is given to professional growth and talent development besides continued support for diversity and work-life balance. Citibank has also been an incubator of local banking talent. Opportunities abound in-country and through our global network for local talent to excel and achieve their career ambitions.
Throughout the year, we made good progress on delivering “The Citibanker Difference” for our employees.
The Leadership Enhancement & Accelerated Development
(L.E.A.D) programme provided accelerated career development opportunities for the top 2% of our best employees across the board. We hired 18 management associates and graduate executives from leading local and foreign universities as part of our ongoing talent recruitment drive.
In addition to the Voice of the Employee platform for employees to engage in improving their work environment and to raise people related or career concerns, the Employee Assistance Programme launched in 2012 is an added support service providing counselling to permanent employees of the Bank.
Sanjeev Nanavati
Chief Executive Officer
Another initiative Citi Live Well to encourage healthy living has been well supported by employees.
KEY BUSINESS PRIORITIES FOR 2014
Customer centricity lies at the heart of our business priorities and will frame all our business interactions and inspire product and service offerings, leveraging on our extensive global network. As the industry in
Malaysia evolves to a more digitised environment,
Citibank has the edge over competition in terms of bringing to market innovative technology for our
Malaysian consumer and corporate clients.
OUTLOOK FOR 2014
Global growth prospects are expected to improve in
2014. The Malaysian economy is expected to register a steady growth of around 5% in 2014.
Malaysia’s financial services sector is likely to see moderate loans growth largely due to the tougher economic environment regionally, pressure on margins and stricter retail lending although underlying fundamentals of the industry remain solid. On the corporate front, prospects are expected to be better especially with the continued progress and positive impact from national transformation initiatives and as local companies expand operations abroad.
At Citibank Malaysia, we anticipate this year to be one of creating greater value and enriching the banking experience of our customers with unparalleled standards of service excellence. We have much to accomplish and the journey ahead while challenging, will present us opportunities to grow.
08
Citibank Berhad ANNUAL REPORT 2013

Corporate Awards
Best Technology Innovation Contact Centre – 2nd placing
Best Process Excellence Contact Centre – 2nd placing
Individual Award
Best Contact Centre Professional (Operations) (Goh Chi Xiang) – 1st placing
Best Contact Centre Professional (Non-Operations) (Irene Tok) – 2nd placing
X-Factor Challenge Award
CitiPhone Group Performance (Battalion C) – 1st placing
Silver for Best Outsourced Contact Centre for CTSM Johor Bahru (above 100 seats)
Gold for Best Employee Recruitment and Retention for CTSM Johor Bahru (HR)
Excellence in Launch Marketing – AirAsia – Citibank Visa Credit Cards Re-launch – Silver award
Excellence in Advertising – 30% Cash Back “Everyday Spend” Campaign – Bronze award
Fixed Income Category – for highest net sales for fixed income unit trust funds in 2012
Credit Card Issuing Bank – Gold Award
Best deal, Malaysia for the Sime Darby US$800 million two-tranche sukuk, in which Citi has acted as one of the joint bookrunners
Best Foreign Currency Bond Deal Of The Year In Southeast Asia
09
Citibank Berhad ANNUAL REPORT 2013

(Company Secretary)
(Company Secretary)
10
Citibank Berhad ANNUAL REPORT 2013

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 was Citigroup Country Officer for 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).
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.
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. Cuddyre holds a B.A. in Economics from the University of California,
Santa Barbara and an MBA from the Wharton Business School, University of Pennsylvania.
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.
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.
Prior to joining Citigroup, he was the Head of Corporate and Investment
Banking for six years at one of the largest international banks in India. He also worked for 12 years with a major U.S. bank in M&A and Capital
Markets, in the United States and Hong Kong.
Mr. Nanavati holds an MBA Degree from Syracuse University in the
United States. At present, he is the President of the American Malaysian
Chamber of Commerce and a Council member of the Association of
Banks in Malaysia.
1 1
Citibank Berhad ANNUAL REPORT 2013

DIRECTORS’ PROFILE
Tan Sri Dato’ Hj Omar joined the Bank on 3 May, 2000 as an Independent,
Non-Executive Director. He served as the Chairman of the Nominating
Committee, and a member of the Risk Management Committee and Audit
Committee of the Bank.
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 several private limited companies including KLCC Projeks Sdn Bhd, KLCC
Projects Services Sdn Bhd, PNB Commercial Sdn Bhd, EKVE Sdn Bhd,
Capital Development Sdn Bhd, I & P Permodalan Harta Sdn Bhd and
Peninsular Medical Sdn Bhd.
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 Director-General from 1996 to 1999.
Tan Sri Dato’ Hj Omar has particular expertise in structural engineering and water supply engineering. His professional work experience has been varied and included design assignments as well as project management to general management.
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.
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.
He is a Fellow of the Institution of Engineers Malaysia and a professional engineer registered with the Board of Engineers Malaysia.
He retired from the Board on 1 May, 2014.
Dato’ Siow Kim Lun is currently a board member of Kumpulan Wang
Persaraan, UMW Holdings Berhad, W Z Satu Berhad (formerly known as
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.
From 1993 to 2006, Dato’ Siow was with the Securities Commission (SC), where he served as the Director of the Issues and Investment Division and Director of the Market Supervision Division. Prior to joining the SC,
Dato’ Siow worked in the investment banking and financial services industry in Malaysia for over 12 years.
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.
Dato’ Siow has been a director of Citibank Berhad since April 2007. He is currently Chairman of the Bank’s Risk Management Committee, and a member of the Nominating Committee and Audit Committee.
12
Citibank Berhad ANNUAL REPORT 2013

DIRECTORS’ PROFILE
Ms. Agnes Liew Yun Chong was appointed as 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.
Ms. Liew also sits on the board of Citibank (China) Co. Ltd.
She 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 which 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.
Ms. 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, she was the
Corporate Bank Head of Singapore. In 2003, she 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. 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 grew 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. Liew was named by Finance Asia in 2011 as one of the Top 20 Women in Finance in Asia.
She holds an LL.B (Hons) from the University of Singapore and is a member of the Supreme Court of Singapore.
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.
He sits on the Boards of 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, Wawasan Open University Sdn Bhd, UM
Holdings Sdn Bhd and UM Plantations Sdn Bhd.
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 has been actively involved in numerous professional and national bodies. He was also the past president of the Malaysian Economic Association.
He graduated from University of Malaya in 1968 and holds a Bachelor of
Arts Degree with First Class in Economics. He obtained his Masters and
PhD in Economics from the London School of Economics. He is also a
Fellow of the Institute of Bankers, Malaysia.
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Citibank Berhad ANNUAL REPORT 2013

Citibank Berhad ANNUAL REPORT 2013

In 2009, Citi launched our flagship financial education programme, “Stretching Your Ringgit” in collaboration with ERA Consumer Malaysia. ERA Consumer has reached out to more than 1,200 students since the inception of “My First Ringgit” (MFR). The MFR, a customised financial education programme aimed at educating and instilling good financial habits among young children, is a component of Citi’s “Stretching
Your Ringgit” (SYR) financial education series. ERA
Consumer has built a good relationship with kindergarten groups and teachers to get their support for organising the programmes as well as follow up of the programmes.
In 2013, we received a US$90,000 grant from Citi
Foundation which was utilised for:
■ 40 “My First Ringgit” classes for 800 kindergarten students located in both suburban and rural locations in Peninsular Malaysia.
■ Five Training of Trainers programme for over 200 kindergarten teachers throughout Malaysia.
■ Three focus groups sessions for parents.
■ Build richer content in ERA microsite to increase knowledge and online accessibility for target segment to obtain financial related information as an empowerment tool.
The MFR programme, targeted at kindergarten children, is aimed at educating and instilling good financial habits among young children. A fun and informative Game Kit has been developed to be used in classroom workshops. The activities and lessons are contained in the Game Kit, which also contains a teacher’s resource manual. The workshop sessions are expected to last two hours and facilitators will be from
ERA Consumer.
Within the two hours, the children will be taught about money management through interactive games. Areas covered in the programme include the need to save from young and the benefits derived from saving as well as difference between needs and wants. The kindergarten teachers or principals will be encouraged to be involved to ensure continuity of the programme – post workshop and expose more
15
Citibank Berhad ANNUAL REPORT 2013

CORPORATE CITIZENSHIP AT CITI students in the subsequent years. Parents are invited to join the workshop for them to observe their children’s understanding about money and to learn skills that help them in teaching their children about money management. The involvement of kindergarten teachers or principals is key as it ensures sustainability of this programme which Citi has funded in Malaysia over the last 10 years.
The “Training of Trainers” (ToT) was conducted in order to demonstrate to teachers the importance of financial education for children. Focus groups were conducted with parents to address the issues that are faced by parents in teaching their children about money management. Parents were also able to provide feedback on their children’s behavioural change after the workshop.
The population served under the “Stretching Your
Ringgit 2013” were pre-school children between the ages of 4 to 6 years. In addition, we also engaged with teachers from kindergartens to organise a training session which assisted them financial education to children. Parents were also involved in programme as
Citibank Berhad ANNUAL REPORT 2013
Pre-school children at one of the “My First Ringgit” sessions.

CORPORATE CITIZENSHIP AT CITI they will be invited to join the programme. There were focus group discussions to discuss the issues on their children’s financial management.
At the end of the programme, 25% of the children who participated in the workshop increased their ability to demonstrate basic financial knowledge, and 30% of parents reported an improvement in their child’s financial behaviour. In addition to that, 80% of the teachers who participated in the ToT carried out financial education workshop in their kindergartens.
Pre-school children at the various activities of the “My First Ringgit” programme.
17
Citibank Berhad ANNUAL REPORT 2013

At the launch of the Citi-UPM Financial Empowerment Programme.
18
Citibank Berhad ANNUAL REPORT 2013

CORPORATE CITIZENSHIP AT CITI
Citi Foundation provided US$120,000 of funds for the Citi-UPM Financial Empowerment for Mature Women
Programme in 2012/2013. The programme is aimed to adapt the Citi-Tsao Financial Education Programme for
Mature Women [in Singapore] to the Malaysian context and build the capacity of UPM and the National Council of Women Organisations (NCWO) leaders to deliver this programme effectively to low income mature women.
To date, we have visited and observed the implementation of the Tsao Foundation Programme in Singapore and met with the trainers to discuss their experiences and challenges in implementing the project. The research team gained wide knowledge from the experiences through sharing sessions with trainers, class observation and graduation ceremony. Briefing sessions with the project partners were carried out to impart information in implementing the programme and advice were provided on their role and expected contribution to this programme.
Additionally, a total of 20 members from PERMATA and 60 from NCWO were involved in a qualitative need assessment through a Focus Group Discussion (FGD) in developing an evidence based financial education module. Quantitative Training Need Assessments (TNAs) were also conducted. Feedback from the FGD and
TNA were incorporated in the production of a module.
The programme has imparted knowledge and increase financial management skills which eventually improved the participants’ financial behaviours. Upon completion of the financial education programme, at least 80% of the participants will start saving regularly and about 75% of these women will increase their savings by up to
20%. Citi Foundation funds will be used to implement the Training of Trainers (ToT); training of participants; support staff for project management; project monitoring as well as pre-and post-assessment for the ToT and participant training. Both qualitative and quantitative assessments will be adopted.
By 2014, we anticipate that UPM will have fully implemented the curriculum for 800 women to ensure they are financially independent and empowered in their old age. We should see a 100% increase in the number of women who are able to develop a retirement plan and demonstrate positive financial behaviours to achieve the financial goals.
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Citibank Berhad ANNUAL REPORT 2013

CORPORATE CITIZENSHIP AT CITI
Last year’s Global Community Day was held on 22
June, with the theme “Restore Hope for Children”.
Citi Volunteers were deployed to eight refugee learning centres in Klang Valley, where they played educational games, distributed food and care packages and had lunch with the children. Over 700 strong employees from the Klang Valley, Penang and
Johor Bahru participated in this effort with the
United Nations High Commissioner for Refugees
(UNHCR). With the theme “Restore Hope for
Children”, our Volunteers managed to feed over 500 refugee children in Kuala Lumpur, visited over 200 orphans in both Penang and Johor Bahru.
Citibankers touched lives through the Global Community Day activities.
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Citibank Berhad ANNUAL REPORT 2013

Citibankers in action during Global Community Day.
Citibank Berhad ANNUAL REPORT 2013

In Citi, we believe that talent grows talent. Our people philosophy focuses on providing the best learning and development platforms ranging from talent and development programmes; mentoring; on-the-job learning to career pathing initiatives; all of which are supported by key processes and policies – and conducted 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 2013, we continue our efforts in the talent space. Our
Graduate Programmes attracted the best talent in the market – we hired a total of 18 graduates in 2013, giving us a total of 98 future leaders whom we have hired since 2010 as part of our strategy to build future leadership. Our Leadership Enhancement & Accelerated
Development (LEAD) programme, launched in 2010, continues to be focused and relevant for the top 2% of our best employees. As part of our customised training for LEAD in 2013, we invited Professor Lim How, an associate professor with Yale to conduct workshops on
Critical Thinking, and Strategic Thinking. We also had
Ms. Kate Sweetman from ICLIF and a former editor at the
Harvard Business Review and co-author of The Leadership
Code: Five Rules to Lead By to conduct a series of
“Working Across Organizational Boundaries” workshops.
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 86 internal transfers, including our export of talent to
Singapore, Brazil and Hong Kong, and our import of talent from other Citi companies including the United
Kingdom, India, Philippines and Latin America.
From a learning and 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 2013, Citibank rolled out 160 classrooms/virtual programmes totalling
34,000 training hours, together with 25 leadership programmes across the franchise covering 390
Citibankers. One highlight includes our leadership trainer being recognised as Citi’s 2013 Top 3 Highest
Delivering Facilitator in APAC.
And as part of Citibank’s continuous show of support and commitment to the advancement of women as leaders and economic drivers, we also celebrated
International Women’s Day (IWD) by organising franchise wide programmes that connect Citi women in ways that inspire change to foster progress, both personally, professionally and within the community.
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. Our Citi “Live Well” platform and Employee Assistance Programme (EAP) continues to provide support services such as counselling, wellness talks and on-site consultations to all Citibankers, with talks covering key health tips, office ergonomics, and suitable food and exercises.
The Voice of Employee (VOE) platform continues to enable us to have fun and develop team-building activities to build camaraderie 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.
There will always be continued focus on building the talent pipeline, developing and implementing relevant programmes, initiatives, policies and processes to ensure we provide the best that we can for our employees.
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Citibank Berhad ANNUAL REPORT 2013

Citibankers at the Citi “Live Well” programmes.
Citibank Berhad ANNUAL REPORT 2013

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).
The Board comprises seven members.
The following is the board line-up:
Non-Independent Non-Executive Director/Chairman
Non-Independent Executive Director/
Chief Executive Officer
Independent Non-Executive Director
Independent Non-Executive Director
Non-Independent Non-Executive Director
Independent Non-Executive Director
Non-Independent Non-Executive Director
(appointed on 22 February 2013 and resigned with effect from 11 October 2013)
The individual profiles of the above mentioned directors are set out on pages 4 to 6 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 two 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 was appointed to the Board on 14 December 2010, and has been the Chairman of
Citibank since 12 March 2013.
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
24
Citibank Berhad ANNUAL REPORT 2013

STATEMENT OF CORPORATE GOVERNANCE 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.
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.
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.
The attendance record for each Board member for the financial year ended 31 December 2013 is as shown below:
Mr. Terence Kent Cuddyre (Chairman)
Mr. Sanjeev Nanavati
8
8
8
8
Tan Sri Dato’ Hj Omar B. Ibrahim
Dato’ Siow Kim Lun
Ms. Agnes Liew Yun Chong
Dato’ Dr Thillainathan a/l Ramasamy
Mr. Anil Wadhwani
8
8
8
8
5*
7
8
7
8
5
* Reflects the number of meetings held during the time the
Director held office.
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
■ Risk Management Committee
The Bank has since set up the Nominating Committee and Risk Management Committee.
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.
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 2013 is as shown below:
Dato’ Dr Thillainathan a/l Ramasamy
(Chairman)
4 4
Tan Sri Dato’ Hj Omar B. Ibrahim
Dato’ Siow Kim Lun
Mr. Terence Kent Cuddyre
Mr. Anil Wadhwani
4
4
4
2*
3
4
4
2
* 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.
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Citibank Berhad ANNUAL REPORT 2013

STATEMENT OF CORPORATE GOVERNANCE
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
3. Significant issues and unusual events arising from the audit
4. Going concern assumption
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. 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).
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.
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 2013 is as shown below:
Tan Sri Dato’Hj Omar B. Ibrahim
(Chairman)
2 2
Mr. Sanjeev Nanavati
Dato’ Siow Kim Lun
Ms. Agnes Liew Yun Chong
Dato’ Dr Thillainathan a/l Ramasamy
2
2
2
2
2
2
2
2
The constitution of the Nominating Committee comprises four non-executive directors and one executive director.
26
Citibank Berhad ANNUAL REPORT 2013

STATEMENT OF CORPORATE GOVERNANCE
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.
g. Recommend to the Board qualified individuals to become members of the Board. h. Review and recommend periodically to the Board, the compensation structure for non-executive directors. 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.
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. 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.
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.
m. Assess annually to ensure the directors and key senior management staff are not disqualified under the Financial Services Act 2013.
n. Plan and ensure all directors receive appropriate and continuous training program in order to keep abreast with the latest developments in the industry.
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.
Composition and Frequency of Meetings
The Risk Management Committee was established in
2006.
27
Citibank Berhad ANNUAL REPORT 2013

STATEMENT OF CORPORATE GOVERNANCE
The attendance record for each Risk Management
Committee member for the financial year ended 31
December 2013 is as shown below:
Dato’ Siow Kim Lun
(Chairman)
4 4
Tan Sri Dato’Hj Omar B. Ibrahim
Ms. Agnes Liew Yun Chong
Mr. Terence Kent Cuddyre
Dato’ Dr Thillainathan a/l Ramasamy
4
4
4
4
3
4
4
4
All the Risk Management Committee members are non-executive directors of the Bank.
The Board has approved the terms of reference for the
Risk Management Committee.
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.
The Risk Management Committee’s main responsibilities are as follows: a. Ratify the adoption of Citi risk management strategies, policies, and risk tolerance; and recommend the same for the Board’s approval.
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.
j. Present the risk strategy and the risk appetite to the Board of Directors and seek approval on an annual basis.
k. Share the Bank’s risk appetite indicators with the
Board on a regular basis to ensure that the risk appetite remains consistent with the Bank’s risk taking ability, its inherent risk profile and its external market and macroeconomic conditions.
28
Citibank Berhad ANNUAL REPORT 2013

Please refer to the Pillar 3 disclosure at the back pocket of the Annual Report.
29
Citibank Berhad ANNUAL REPORT 2013

Citibank Berhad’s Board of Directors is responsible to establish and maintain adequate internal control over financial reporting standards and related issues.
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.
All internal control systems no matter how well designed and implemented have inherent limitations.
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 authorisation, 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 continuously assesses their significant processes and controls in accordance with the
Manager’s Control Assessment Procedures /
Operational Risk policy for all applicable businesses.
Control system weaknesses resulting in corrective actions will be documented, escalated to the management and track to closure.
Citibank Berhad’s Internal Audit reports to the Audit
Committee. The role of Internal Audit is to provide independent, objective, reliable, valued and timely assurance to the Boards of Directors of Citigroup and
Citibank Berhad, the Audit Committees, senior management and regulators over the effectiveness of governance, risk management, and controls that mitigate current and evolving risks and enhance the control culture within Citigroup and Citibank Berhad.
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.
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.
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.
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.
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Citibank Berhad ANNUAL REPORT 2013

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
■ Semi-annual BNM Stress Tests Results
■ Credit Risk Management Report
■ Liquidity & Market Risk 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
3 1
Citibank Berhad ANNUAL REPORT 2013

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 2013, the Shariah Committee met 11 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 2013 included the following distinguished members:
Abdul Ghafar Ismail has been a Professor in Banking and Financial Economics, School of Economics,
Universiti Kebangsaan Malaysia (UKM) since 2003. He is currently the Head of Islamic Economics and Finance
Research Division, Islamic Research and Training
Institute (IRTI), Islamic Development Bank (IDB), Saudi
Arabia.
He has published extensively in several refereed journals among others Journal of Business Ethics;
Review of Islamic Economics; Journal of Islamic
Economics, Banking and Finance; Humanomics;
International Journal of Social Economics; Savings and
Development; Global Journal of Finance and
Economics; Review of Financial Economics; Journal of
Financial Services Marketing; International Journal of
Islamic and Middle Eastern Finance and Management;
Australian Journal of Basics and Applied Sciences;
Research in Financial Qualitative Markets; and
Investment Management and Financial Innovations. His papers have also been presented in many international and local conferences, such as International Seminar on Islamic Economics and Finance, IRTI International
Conference and Malaysia Finance Association
Conference.
He has also published several textbooks among others,
Ar-Rahnu: Islamic Pawnbroking; and Money, Islamic
Banks and Real Economy. His research interests include learning process and growth theory, inter-temporal allocation of resources, earning management, capital adequacy standard for Islamic banks, and risk management. He has been a lecturer since 1987 and has been teaching several economics courses such as money and banking, financial economics, advanced macroeconomics, money and capital market in Islam,
Islamic economics system, Islamic economics analysis, and international finance; risk management in Islamic banking; issues in Islamic banking; Islamic banking; and money, zakat and real economy.
He holds a PhD from the University of Southampton,
England.
Mohd Bahroddin is a researcher at the International
Shariah Research Academy (ISRA). Prior to that, he was attached to International Islamic University
Malaysia (IIUM) as a lecturer in the Department of
Islamic Revealed Knowledge and Human Resources.
He is actively involved in Islamic finance and Shariah related seminars, workshops and trainings organised by ISRA and Bank Negara Malaysia (BNM) to name few.
He has also published outstanding research papers such as Critical Appraisal of the Rahn-based Islamic
Microcredit Facility, Shariah Analysis on Gold
Investment Products in Malaysia, Shariah Analysis on
Zakat in Gold Investment, Kafalah bil Ujrah in Islamic
Banking Guarantee Product: A Shariah Analysis, Fiqh of
Risk Sharing in Islamic Finance and Shariah Rules and
Interpretations Across Jurisdictions: Towards Greater
Global Connectivity in Islamic Finance.
He holds Bachelor of Islamic Revealed Knowledge (Fiqh
& Usul Fiqh) from IIUM and Master Degree in Shariah from University of Malaya.
Nik Abdul Rahim is a lecturer of Fiqh Muamalat at
Department of Shariah, Faculty of Islamic Studies,
UKM.
He regularly conducts lectures, researches and presents papers at seminars and conferences, both
32
Citibank Berhad ANNUAL REPORT 2013 locally and internationally on the areas of Fiqh
Muamalat and Usul Fiqh particularly those related to
Islamic banking, Islamic insurance (Takaful) and current issues of Islamic transaction laws.
He is currently a member of the Research Centre for
Islamic Economics and Finance (EKONIS) or formerly known as Islamic Economics and Finance Research
Group. He is also a member of the committee of Klinik
Hukum Syarak and Guaman Syarie, Department of
Shariah, and an expert consultant and speaker for
Pusat Islam UKM and Unit Latihan UKM programmes related to Islamic Law.
He holds a Master Degree in Shariah from UKM and currently is a PhD candidate at International Centre for
Education in Islamic Finance (INCEIF).
Mat Noor Mat Zain is a lecturer at the Department of
Shariah, Faculty of Islamic Studies, UKM.
His specialisation areas are in Fiqh Muamalah, Islamic
Contract and Islamic Family Law. He has extensive research experience in the area of Fiqh Muamalah and
Islamic Finance such as Instruments of Islamic Hedging,
Term and Condition in Standard Form Contract. He teaches several courses related to Muamalah and
Islamic Jurisprudence such as Fiqh Muamalat, Islamic
Finance, and Principles of Islamic Jurisprudence.
He has presented many papers related to Islamic banking and finance at domestic and international level. He is a consultant for UKM Pakarunding, an expert speaker for ILIM/JAKIM programmes related to
Fiqh Muamalah and consulting article assessors in several journals such as The Journal of Muamalat and
Islamic Finance Research (JMIFR) published by Islamic
Science University of Malaysia (USIM).
He holds a Bachelor of Shariah from Islamic University of Medina, Saudi Arabia, Master Degree in Islamic
Studies (Muamalah) from UKM and currently a PhD candidate in the field of Islamic Contract.
Mohammad Firdaus is a senior lecturer at the
Department of Islamic Banking, Faculty of Business
Management, Mara University of Technology (UITM).
He has also published outstanding research papers such as The Impact of Islamic Financial System on Malaysian
Economy, Islam in Malaysia and Its Political Dimensions:
Past, Present and Future, The IMF and World Bank: The
Growth - or Crisis Promoters? Concept and the application of Kafalah in Bank’s Letter of Guarantee and
Effect of Sub-Prime Crisis on the Global Economy and
How Such Crisis should have been Averted in an Islamic
Finance Environment among others.
He holds Bachelor of Shariah from Islamic University of
Medina, Saudi Arabia, Master Degree in Fiqh & Usul
Fiqh from IIUM, Diploma in Islamic Finance, Markfield
Institute of Higher Education and Phd in Islamic
Banking from the University of Wales, United Kingdom.
Hakimah Yaacob is a researcher at ISRA. She is also a certified arbitrator and mediator by the Malaysian Bar
Council and Malaysian Chartered of Arbitration
Association (CIArb).She has written many books such as Alternative Dispute Resolution (ADR): Expanding
Options in Islamic Finance Dispute.
She is a certified negotiator and drafter in the
International Contract from International Chamber of
Commerce (ICC). She is a professional trainer in Islamic
Finance. She has conducted local and international trainings in Islamic Finance for government sectors, government linked companies, statutory bodies and private entities. She has received the best paper award and has presented many papers at international level such as the World Bank Conference in Bahrain,
Accounting and Auditing Organisation of Islamic
Finance (AAOIFI) on International Convention for
Islamic Finance.
She holds Bachelor and Master Degree in Law and PhD in Victimology and Takaful Justice.
Ruzian Markom is a senior lecturer at the Department of Law, UKM.
Her specialisation areas are in Islamic Banking, Takaful,
Islamic Capital Market, Consumer Protection and Law.
She has extensive research experience such as
Renewable Energy Act 2011 and the Feed Tariff System:
An Islamic Legal Analysis; Steps to Eradicate Loan
Shark Activities in Malaysia According To Islamic And
Civil Law; Regulations of Consumer Credit Laws in
Malaysia; Sovereignty and Transformational Challenges
Facing Islamic Financial System at the Central Bank
Level: Towards A New Model, Litigation as Dispute
Resolution Mechanism in Islamic Finance: Malaysian
Experience. European Journal of Law and Economics and The Current Practices of Islamic Build Operate
Transfer (BOT) Financing Contracts: A Legal Analysis.
She holds Bachelor Degree in Law, Master in Business
Law and PhD in Law from IIUM.

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 2013, the Shariah Committee met 11 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 2013 included the following distinguished members:
Abdul Ghafar Ismail has been a Professor in Banking and Financial Economics, School of Economics,
Universiti Kebangsaan Malaysia (UKM) since 2003. He is currently the Head of Islamic Economics and Finance
Research Division, Islamic Research and Training
Institute (IRTI), Islamic Development Bank (IDB), Saudi
Arabia.
He has published extensively in several refereed journals among others Journal of Business Ethics;
Review of Islamic Economics; Journal of Islamic
Economics, Banking and Finance; Humanomics;
International Journal of Social Economics; Savings and
Development; Global Journal of Finance and
Economics; Review of Financial Economics; Journal of
Financial Services Marketing; International Journal of
Islamic and Middle Eastern Finance and Management;
Australian Journal of Basics and Applied Sciences;
Research in Financial Qualitative Markets; and
Investment Management and Financial Innovations. His papers have also been presented in many international and local conferences, such as International Seminar on Islamic Economics and Finance, IRTI International
Conference and Malaysia Finance Association
Conference.
He has also published several textbooks among others,
Ar-Rahnu: Islamic Pawnbroking; and Money, Islamic
Banks and Real Economy. His research interests include learning process and growth theory, inter-temporal allocation of resources, earning management, capital adequacy standard for Islamic banks, and risk management. He has been a lecturer since 1987 and has been teaching several economics courses such as money and banking, financial economics, advanced macroeconomics, money and capital market in Islam,
Islamic economics system, Islamic economics analysis, and international finance; risk management in Islamic banking; issues in Islamic banking; Islamic banking; and money, zakat and real economy.
He holds a PhD from the University of Southampton,
England.
Mohd Bahroddin is a researcher at the International
Shariah Research Academy (ISRA). Prior to that, he was attached to International Islamic University
Malaysia (IIUM) as a lecturer in the Department of
Islamic Revealed Knowledge and Human Resources.
He is actively involved in Islamic finance and Shariah related seminars, workshops and trainings organised by ISRA and Bank Negara Malaysia (BNM) to name few.
He has also published outstanding research papers such as Critical Appraisal of the Rahn-based Islamic
Microcredit Facility, Shariah Analysis on Gold
Investment Products in Malaysia, Shariah Analysis on
Zakat in Gold Investment, Kafalah bil Ujrah in Islamic
Banking Guarantee Product: A Shariah Analysis, Fiqh of
Risk Sharing in Islamic Finance and Shariah Rules and
Interpretations Across Jurisdictions: Towards Greater
Global Connectivity in Islamic Finance.
He holds Bachelor of Islamic Revealed Knowledge (Fiqh
& Usul Fiqh) from IIUM and Master Degree in Shariah from University of Malaya.
Nik Abdul Rahim is a lecturer of Fiqh Muamalat at
Department of Shariah, Faculty of Islamic Studies,
UKM.
He regularly conducts lectures, researches and presents papers at seminars and conferences, both
SHARIAH COMMITTEE locally and internationally on the areas of Fiqh
Muamalat and Usul Fiqh particularly those related to
Islamic banking, Islamic insurance (Takaful) and current issues of Islamic transaction laws.
He is currently a member of the Research Centre for
Islamic Economics and Finance (EKONIS) or formerly known as Islamic Economics and Finance Research
Group. He is also a member of the committee of Klinik
Hukum Syarak and Guaman Syarie, Department of
Shariah, and an expert consultant and speaker for
Pusat Islam UKM and Unit Latihan UKM programmes related to Islamic Law.
He holds a Master Degree in Shariah from UKM and currently is a PhD candidate at International Centre for
Education in Islamic Finance (INCEIF).
Mat Noor Mat Zain is a lecturer at the Department of
Shariah, Faculty of Islamic Studies, UKM.
His specialisation areas are in Fiqh Muamalah, Islamic
Contract and Islamic Family Law. He has extensive research experience in the area of Fiqh Muamalah and
Islamic Finance such as Instruments of Islamic Hedging,
Term and Condition in Standard Form Contract. He teaches several courses related to Muamalah and
Islamic Jurisprudence such as Fiqh Muamalat, Islamic
Finance, and Principles of Islamic Jurisprudence.
He has presented many papers related to Islamic banking and finance at domestic and international level. He is a consultant for UKM Pakarunding, an expert speaker for ILIM/JAKIM programmes related to
Fiqh Muamalah and consulting article assessors in several journals such as The Journal of Muamalat and
Islamic Finance Research (JMIFR) published by Islamic
Science University of Malaysia (USIM).
He holds a Bachelor of Shariah from Islamic University of Medina, Saudi Arabia, Master Degree in Islamic
Studies (Muamalah) from UKM and currently a PhD candidate in the field of Islamic Contract.
Mohammad Firdaus is a senior lecturer at the
Department of Islamic Banking, Faculty of Business
Management, Mara University of Technology (UITM).
He has also published outstanding research papers such as The Impact of Islamic Financial System on Malaysian
Economy, Islam in Malaysia and Its Political Dimensions:
Past, Present and Future, The IMF and World Bank: The
Growth - or Crisis Promoters? Concept and the application of Kafalah in Bank’s Letter of Guarantee and
Effect of Sub-Prime Crisis on the Global Economy and
How Such Crisis should have been Averted in an Islamic
Finance Environment among others.
He holds Bachelor of Shariah from Islamic University of
Medina, Saudi Arabia, Master Degree in Fiqh & Usul
Fiqh from IIUM, Diploma in Islamic Finance, Markfield
Institute of Higher Education and Phd in Islamic
Banking from the University of Wales, United Kingdom.
Hakimah Yaacob is a researcher at ISRA. She is also a certified arbitrator and mediator by the Malaysian Bar
Council and Malaysian Chartered of Arbitration
Association (CIArb).She has written many books such as Alternative Dispute Resolution (ADR): Expanding
Options in Islamic Finance Dispute.
She is a certified negotiator and drafter in the
International Contract from International Chamber of
Commerce (ICC). She is a professional trainer in Islamic
Finance. She has conducted local and international trainings in Islamic Finance for government sectors, government linked companies, statutory bodies and private entities. She has received the best paper award and has presented many papers at international level such as the World Bank Conference in Bahrain,
Accounting and Auditing Organisation of Islamic
Finance (AAOIFI) on International Convention for
Islamic Finance.
She holds Bachelor and Master Degree in Law and PhD in Victimology and Takaful Justice.
Ruzian Markom is a senior lecturer at the Department of Law, UKM.
Her specialisation areas are in Islamic Banking, Takaful,
Islamic Capital Market, Consumer Protection and Law.
She has extensive research experience such as
Renewable Energy Act 2011 and the Feed Tariff System:
An Islamic Legal Analysis; Steps to Eradicate Loan
Shark Activities in Malaysia According To Islamic And
Civil Law; Regulations of Consumer Credit Laws in
Malaysia; Sovereignty and Transformational Challenges
Facing Islamic Financial System at the Central Bank
Level: Towards A New Model, Litigation as Dispute
Resolution Mechanism in Islamic Finance: Malaysian
Experience. European Journal of Law and Economics and The Current Practices of Islamic Build Operate
Transfer (BOT) Financing Contracts: A Legal Analysis.
She holds Bachelor Degree in Law, Master in Business
Law and PhD in Law from IIUM.
33
Citibank Berhad ANNUAL REPORT 2013

RAM Rating Services Berhad (RAM) has, on 09
January 2014, reaffirmed the AAA/Stable/P1 financial institution ratings (FIR) of Citibank Berhad.
Citibank Berhad’s ratings are premised on its entrenched market position in the consumer banking arena, strong funding and liquidity profile, robust capitalisation as well as satisfactory asset quality.
AAA 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.
P1 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.
34
Citibank Berhad ANNUAL REPORT 2013

36
39
40
41
42
43
44
45
46
48
Citibank Berhad ANNUAL REPORT 2013

FOR THE YEAR ENDED 31 DECEMBER 2013
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 2013.
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 have been no significant changes in the nature of these activities during the financial year.
Profit before taxation
Tax expense
Profit for the year
Group and Bank
RM’000
716,869
(183,982)
532,887
There were no material transfers to or from reserves and provisions during the year under review except as disclosed in the financial statements.
Since the end of the previous financial year, the Bank paid a final ordinary dividend of 548 sen per ordinary share less tax at 25% totalling RM500 million (411 sen net per ordinary share) in respect of the year ended 31 December
2012 on 28 June 2013.
The final ordinary dividend recommended by the Directors in respect of the year ended 31 December 2013 is 411 sen per ordinary share totalling RM500 million.
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, advances 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.
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 records of the Group and the Bank, have been written down to an amount which they might be expected to realise.
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.
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.
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 the Bank that has arisen since the end of the financial year other than those incurred in the ordinary course of business.
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.
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.
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, in the opinion of the Directors, likely 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.
Citibank Berhad ANNUAL REPORT 2013

FOR THE YEAR ENDED 31 DECEMBER 2013
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 and the Guidelines on Classification and Impairment Provisions for Loans/Financing.
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
■ Anil Wadhwani (resigned on 11 October 2013)
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:
Shares in Citigroup Inc.
Direct interests
Sanjeev Nanavati
Dato’ Siow Kim Lun @ Siow Kim Lin
Agnes Liew Yun Chong
Terence Kent Cuddyre
Capital Accumulation Program/
Supplementary CAP/SEA in Citigroup Inc.
Sanjeev Nanavati
Agnes Liew Yun Chong
Terence Kent Cuddyre
Stock Option Plan in Citigroup Inc.
Sanjeev Nanavati
Agnes Liew Yun Chong
Terence Kent Cuddyre
Number of ordinary shares of USD1 each
At
1.1.2013 Bought
At
Sold 31.12.2013
23,998 8,036
900 -
14,049 5,977
2,199 563
- 26,902
- 900
- 20,026
1,719 1,043
Number of ordinary shares of USD1 each
At
1.1.2013 Granted
At
Vested 31.12.2013
10,865
18,821
2,000
8,012
6,532
865
10,865
5,977
563
8,012
19,376
2,302
At
Number of options over ordinary shares of USD1 each
1.1.2013
At
Granted Forfeited 31.12.2013
6,298
3,600
816
-
-
-
-
-
-
6,298
3,600
816
None of the other Directors holding office at 31 December 2013 had any interest in the ordinary shares and options over ordinary shares of the Bank and of its related corporations during the financial year.
Citibank Berhad ANNUAL REPORT 2013

FOR THE YEAR ENDED 31 DECEMBER 2013
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 or of related corporations) 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.
There were no changes in the issued and paid-up capital of the Bank during the financial year.
There were no debentures issued during the financial year.
No options were granted to any person to take up unissued shares of the Bank during the financial year.
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
Dato’ Dr. Thillainathan A/L Ramasamy
Kuala Lumpur
Date: 5 June 2014
Citibank Berhad ANNUAL REPORT 2013

PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
In the opinion of the Directors, the financial statements set out on pages 43 to 140 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 2013 and of their financial performance and cash flows for the year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Sanjeev Nanavati
Dato’ Dr. Thillainathan A/L Ramasamy
Kuala Lumpur
Date: 5 June 2014
Citibank Berhad ANNUAL REPORT 2013

TO SECTION 169(16) OF THE COMPANIES ACT, 1965
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 43 to 140 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the above named in Kuala Lumpur on 5 June 2014.
Tang Wan Chee
Before me:
Commissioner for Oaths
Citibank Berhad ANNUAL REPORT 2013

IN THE NAME OF ALLAH, THE BENEFICENT, THE MERCIFUL
We, Dr. Abdul Ghafar bin Ismail, Mohd Bahroddin Badri, Nik Abdul Rahim Nik Abdul Ghani, Mat Noor Mat Zain, Dr. Mohammad
Firdaus Mohammad Hatta, Dr. Hakimah Hj Yaacob and Dr. Ruzian Hj Markom 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 2013.
We have also conducted our review to form an opinion as to whether 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.
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.
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.
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.
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 2013 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 2013 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
Mohd Bahroddin Badri
Deputy Chairman of the Shariah Committee
Nik Abdul Rahim Nik Abdul Ghani
Member of the Shariah Committee
Dr. Mohammad Firdaus Mohammad Hatta
Member of the Shariah Committee
Kuala Lumpur
Date: 5 June 2014
Mat Noor Mat Zain
Member of the Shariah Committee
Dr. Hakimah Hj Yaacob
Member of the Shariah Committee
Citibank Berhad ANNUAL REPORT 2013

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 2013 of the Group and the
Bank, and the statements of profit or loss and other 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 43 to 140.
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
Bank’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
Bank’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 2013 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 174(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: 5 June 2014
Ahmad Nasri bin Abdul Wahab
Approval Number: 2919/03/16(J)
Chartered Accountant
Citibank Berhad ANNUAL REPORT 2013

AS AT 31 DECEMBER 2013
Assets
Cash and short term funds
Deposits and placements with banks and other financial institutions
Securities purchased under resale agreements
Financial assets held-for-trading
Financial investments available-for-sale
Loans, advances and financing
Other assets
Statutory deposits with Bank Negara Malaysia
Deferred tax assets
Investments in subsidiary companies
Plant and equipment
Total assets
Liabilities
Note
2013
RM’000
Group
2012
RM’000
2013
RM’000
Bank
2012
RM’000
3 10,847,348 10,293,235 10,847,328 10,293,215
4 843,609 296,775 843,609 296,775
484,631 743,921 484,631 743,921
5 2,543,577 3,045,057 2,543,577 3,045,057
6 1,792,120 3,399,436 1,792,120 3,399,436
7 20,498,282 19,276,194 20,498,282 19,276,194
9 901,806 832,926 901,806 832,926
10 359,000 438,840 359,000 438,840
11 19,105 17,292 19,105 17,292
12 - - 20 20
13 82,733 109,343 82,733 109,343
38,372,211 38,453,019 38,372,211 38,453,019
Deposits from customers
Deposits and placements of banks and other financial institutions
Bills and acceptances payable
Other liabilities
Total liabilities
Equity
Share capital
Reserves
Total equity attributable to equity holder of the Bank
Total liabilities and equity
Commitments and contingencies
14 25,783,529 26,330,142 25,783,529 26,330,142
15 5,856,257 5,514,077 5,856,257 5,514,077
52,688 133,076 52,688 133,076
16 2,352,153 2,189,904 2,352,153 2,189,904
34,044,627 34,167,199 34,044,627 34,167,199
17 121,697 121,697 121,697 121,697
18 4,205,887 4,164,123 4,205,887 4,164,123
4,327,584 4,285,820 4,327,584 4,285,820
38,372,211 38,453,019 38,372,211 38,453,019
36 77,626,306 79,345,922 77,626,306 79,345,922
The notes on pages 48 to 140 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013
Note
Group and Bank
2013 2012
RM’000 RM’000
Revenue
Interest income
Interest expense
Net interest income
2(b) 2,206,698 2,358,094
20 1,540,762 1,669,075
21 (448,500) (511,581)
1,092,262 1,157,494
Net income from Islamic banking operations
Other operating income
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 income/(expenses), net of tax
Items that will not be reclassified subsequently to profit or loss
- Net loss on revaluation of financial investments available-for-sale
Items that are or may be reclassified subsequently to profit or loss
- Net gain on remeasurement of defined benefit plans
Total other comprehensive income/(expense) for the year
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)
37(n) 48,909 39,445
22 617,027 649,574
1,758,198 1,846,513
23 (908,044) (934,098)
850,154 912,415
24 (133,285) (122,838)
716,869 789,577
25 (183,982) (210,970)
532,887 578,607
(3,460) (8,210)
12,337
8,877 (8,210)
541,764 570,397
532,887 578,607
541,764 570,397
-
26 438 475
The notes on pages 48 to 140 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013
Group and Bank
Note
Attributable to owner of the Bank
Non-distributable Distributable
Share Statutory Other Retained Share
Capital Premium
RM’000 RM’000
Reserve
RM’000
Reserve
RM’000
Profits
RM’000
Total
Reserves
RM’000
Total
RM’000
At 1 January 2012
Net loss on revaluation of financial investments available-for-sale
Total other comprehensive expense for the year
Profit for the year
Total comprehensive (expense)/ income for the year
121,697 380,303 121,697
-
-
-
-
-
-
-
-
-
7,387 3,384,339 3,893,726 4,015,423
(8,210)
- (8,210)
-
- (8,210) (8,210)
- (8,210) (8,210)
- 578,607 578,607 578,607
- (8,210) 578,607 570,397 570,397
Dividends to owner of the Bank 27
Total contribution to owner
-
-
-
-
-
-
- (300,000) (300,000) (300,000)
- (300,000) (300,000) (300,000)
At 31 December 2012 121,697 380,303 121,697
Note 17
(823) 3,662,946 4,164,123 4,285,820
Note 18
At 1 January 2013
Net loss on revaluation of financial investments available-for-sale
Net gain on remeasurement of defined benefit plans
Total other comprehensive income for the year
Profit for the year
Total comprehensive income for the year
121,697 380,303 121,697
-
-
-
-
-
-
-
-
-
-
-
(823) 3,662,946 4,164,123 4,285,820
(3,460)
- 12,337
- 8,877
-
-
- (3,460) (3,460)
- 12,337 12,337
- 8,877 8,877
- 532,887 532,887 532,887
8,877 532,887 541,764 541,764
Dividends to owner of the Bank
Total contribution to owner
At 31 December 2013
27 -
-
-
-
-
-
- (500,000) (500,000) (500,000)
- (500,000) (500,000) (500,000)
121,697 380,303 121,697 8,054 3,695,833 4,205,887 4,327,584
Note 17 Note 18
The notes on pages 48 to 140 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013
Cash flows from operating activities
Profit before taxation
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
Dividends from unquoted investment securities
Unrealised loss/(gain) from revaluation of financial assets held-for-trading
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
Financial assets held-for-trading
Loans, advances and financing
Other assets
Statutory deposits with Bank Negara Malaysia
Deposits from customers
Deposits and placements of banks and other financial institutions
Bills and acceptances payable
Other liabilities
Cash used in operating activities
Income taxes paid
Net cash used in operating activities
2013
RM’000
Group
2012
RM’000
2013
RM’000
Bank
2012
RM’000
716,869 789,577 716,869 789,577
81,253 (27,739) 81,253 (27,739)
133,285 122,838 133,285 122,838
35,575 36,534 35,575 36,534
(245) (28) (245) (28)
4,445 (41) 4,445 (41)
(12,237) (20,581) (12,237) (20,581)
32 392 32 392
958,977 900,952 958,977 900,952
(546,834) 1,219,898 (546,834) 1,219,898
259,290 475,072 259,290 475,072
497,035 (708,167) 497,035 (708,167)
(1,355,373) 958,295 (1,355,373) 958,295
(79,267) 456,566 (79,267) 456,566
79,840 (40,760) 79,840 (40,760)
(546,613) (3,740,563) (546,613) (3,740,563)
342,180 (2,263,020) 342,180 (2,263,020)
(80,388) 69,315 (80,388) 69,315
162,894 (304,514) 162,894 (304,514)
(308,259) (2,976,926) (308,259) (2,976,926)
(176,053) (239,125) (176,053) (239,125)
(484,312) (3,216,051) (484,312) (3,216,051)
The notes on pages 48 to 140 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

Cash flows from investing activities
Dividend from investment securities
Purchase of plant and equipment
Proceeds from disposal of plant and equipment
Purchase of financial investments available-for-sale
Redemption of financial investments available-for-sale
Proceeds from disposal of financial investments available-for-sale
Net cash generated from investing
activities
Cash flows from financing activities
Dividend paid to owner
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at
31 December (Note 3)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013
2013
RM’000
Group
2012
RM’000
2013
RM’000
Bank
2012
RM’000
245 28 245 28
(9,206) (26,034) (9,206) (26,034)
209 670 209 670
(3,839,635) (6,174,833) (3,839,635) (6,174,833)
1,205,202 1,626,774 1,205,202 1,626,774
4,181,610 6,414,241 4,181,610 6,414,241
1,538,425 1,840,846 1,538,425 1,840,846
(500,000) (300,000) (500,000) (300,000)
(500,000) (300,000) (500,000) (300,000)
554,113 (1,675,205) 554,113 (1,675,205)
10,293,235 11,968,440 10,293,215 11,968,420
10,847,348 10,293,235 10,847,328 10,293,215
The notes on pages 48 to 140 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

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 is as follows:
45th Floor, Menara Citibank
165 Jalan Ampang
50450 Kuala Lumpur
• Amendments to MFRS 136, Impairment of Assets –
Recoverable Amount Disclosures for Non-Financial
Assets
• Amendments to MFRS 139, Financial Instruments:
Recognition and Measurement – Novation of
Derivatives and Continuation of Hedge Accounting
• IC Interpretation 21, Levies
The consolidated financial statements of the Bank as at and for the year ended 31 December 2013 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.
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 5 June 2014.
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.
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2014
• Amendments to MFRS 1, First-time Adoption of
Malaysian Financial Reporting Standards (Annual
Improvements 2011-2013 Cycle)
• Amendments to MFRS 2, Share-based Payment
(Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 3, Business Combinations
(Annual Improvements 2010-2012 Cycle and
2011-2013 Cycle)
• Amendments to MFRS 8, Operating Segments
(Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 13, Fair Value Measurement
(Annual Improvements 2010-2012 Cycle and
2011-2013 Cycle)
• Amendments to MFRS 116, Property, Plant and
Equipment (Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 119, Employee Benefits –
Defined Benefit Plans: Employee Contributions
• Amendments to MFRS 124, Related Party Disclosures
(Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 138, Intangible Assets
(Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 140, Investment Property
(Annual Improvements 2011-2013 Cycle)
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.
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:
MFRSs, Interpretations and amendments effective for a date yet to be confirmed
• MFRS 9, Financial Instruments (2009)
• MFRS 9, Financial Instruments (2010)
• MFRS 9, Financial Instruments – Hedge Accounting and Amendments to MFRS 9, MFRS 7 and MFRS 139
• Amendments to MFRS 7, Financial Instruments:
Disclosures – Mandatory Effective Date of MFRS 9 and Transition Disclosures
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
The Group and the Bank plan to apply the abovementioned accounting standards, amendments and interpretations:
• from the annual period beginning on 1 January 2014 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2014, except for amendments to MFRS 10, MFRS 12 and MFRS 127 which are not applicable to the Group and the Bank.
Citibank Berhad ANNUAL REPORT 2013

1. Basis of preparation (continued)
A. Statement of compliance (continued)
• from the annual period beginning on 1 January
2015 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 July 2014, except for amendments to MFRS 1, MFRS 3, MFRS 8, MFRS
138 and MFRS 140 which are not applicable to the
Group and the Bank.
Material financial impact of initial application of
MFRS 9, Financial Instruments is discussed below:
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.
(i) MFRS 9, Financial Instruments
MFRS 9 replaces the guidance in MFRS 139, Financial
Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities, and on hedge accounting.
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.
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)(i) - 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.
This standard also specifies the requirements for the classification and measurement of financial liabilities, which are generally similar to the requirements of 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 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.
The adoption of MFRS 9 may result in a change in accounting policy. The Group and the Bank is currently assessing the financial impact that may arise from the adoption of MFRS 9.
The initial application of the other applicable accounting standards, amendments and interpretations are not expected to have any material financial impact to the current period and prior period financial statements of the Group and the Bank.
B. Basis of measurement
The financial statements have been prepared on the historical cost basis other than those disclosed in Note 2.
■ Note 2(f)(vi) - 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 requires the use of valuation techniques as described in accounting policy in Note 2(f)(vi).
■ Note 2(o)(iii) - 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.
Citibank Berhad ANNUAL REPORT 2013

The accounting policies set out below have been applied consistently to the periods presented in these financial statements and have been applied consistently by the
Group and the Bank, unless otherwise stated.
A. Basis of consolidation
intra-group transactions, are eliminated in preparing the consolidated financial statements.
B. Revenue
Revenue comprises of gross interest income, other income derived from banking operations and net income from Islamic Banking operation.
i. Subsidiaries
Subsidiaries are investees, including unincorporated entities, controlled by the Bank. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when control ceases.
The Bank adopted MFRS 10,
Statements
Consolidated Financial
in the current financial year. This resulted in changes to the following policies:
C. Interest and financing income and expense
Interest income and expense are recognised in the profit or loss using the effective interest method.
The ‘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 financial liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the
Group and the Bank estimates future cash flows considering all contractual terms of the financial instrument, but not future credit losses.
• Control exists when the Bank is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
In the previous financial years, 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.
The calculation of the effective interest rate includes transaction costs and fees and points paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial liability.
• Potential voting rights are considered when assessing control only when such rights are substantive. In the previous financial years, potential voting rights are considered when assessing control when such rights are presently exercisable.
Interest income and expense presented in the statements of profit or loss and other comprehensive income include:
• The Bank considers it has de facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect the investee’s return. In the previous financial years, the Bank did not consider de facto power in its assessment of control.
The change in the accounting policy has been made retrospectively and in accordance with the transitional provision of MFRS 10. The adoption of
MFRS 10 has no impact to the financial statements of the Bank.
• Interest on financial assets and financial liabilities measured at amortised cost calculated 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.
D. Fees and commission
Fees and commission income and expense that are integral to the effective interest rate on a financial asset or financial liability are included in the measurement of the effective interest rate (see (c)).
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.
The accounting policies of subsidiaries are changed when necessary to align them with the policies adopted by the Bank.
Other fees and commission income, including account servicing fees, investment management fees, sales commission, placement fees and syndication fees – are recognised as the related services are performed.
If a loan commitment is not expected to result in the draw-down of a loan, then the related 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.
ii. Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from
Other fees and commission expense relate mainly to transaction and service fees, which are expensed as the services are received.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
E. 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.
F. Financial assets and financial 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.
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.
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.
ii. Financial instrument categories and subsequent measurement
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.
Financial assets categorised as fair value through profit or loss are subsequently measured at 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.
c. Loans and receivables
Loans and receivables category comprises debt instruments that are not quoted in an active market.
Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the effective interest method.
d. 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.
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 ANNUAL REPORT 2013

2. Significant accounting policies (continued)
F. Financial assets and financial liabilities (continued) ii. Financial instrument categories and subsequent measurement (continued)
Financial liabilities (continued)
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.
iii. Regular way purchase or sale of financial assets
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.
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.
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.
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.
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.
vi. Fair value measurement
From 1 January 2013, the Group and the Bank adopted MFRS 13, Fair Value Measurement which prescribed that fair value of an asset or a liability, except for share-based payment and lease transactions, is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market.
In accordance with the transitional provision of
MFRS 13, the Group and the Bank applied the new fair value measurement guidance prospectively, and has not provided any comparative fair value information for new disclosures. The adoption of MFRS 13 has not significantly affected the measurements of the Group’s and the Bank’s assets or liabilities other than the additional disclosures.
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.
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.
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.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
F. Financial assets and financial liabilities (continued) vi. Fair value measurement (continued)
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.
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 loans and receivables 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.
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.
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 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; or
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.
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.
Impairment losses recognised in profit or loss for an investment in an equity instrument is not reversed through profit or loss.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
G. Impairment (continued) i. Financial assets (continued)
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.
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.
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.
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 pro rata 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 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.
H. Repurchase and resale agreement
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.
I. 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.
Cash and cash equivalents are categorised as loans and receivables and carried at amortised cost in the statements of financial position in accordance to the accounting policy stated in Note 2(f)(ii)(c).
J. Plant and equipment i. Recognition and measurement
Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any.
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.
If significant parts of an item of plant and equipment have different useful lives, then they are accounted for as separate items (major components) of plant and equipment.
Any gain or loss on disposal of an item of plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised net within other income or other expenses in profit or loss.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
J. Plant and equipment (continued) ii. Subsequent costs
Subsequent expenditure is capitalised only when it is probable that the future economic benefits of the expenditure will flow to the
Group and the Bank. Ongoing repairs and maintenance are expensed as incurred.
iii. Depreciation
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.
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.
ii. Operating lease
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.
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.
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 into the functional currency of the Group and the
Bank at the spot exchange rates at the date of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the spot 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.
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.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
N. Income tax (continued)
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.
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.
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 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 profit or loss 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 profit or loss 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.
As a result of the adoption of MFRS 119 (2011),
Employee Benefits, the Group and the Bank has changed its accounting policy in respect of the basis for determining the income or expense relating to its post employment defined benefit plan.
The Group’s and the Bank’s net obligation in respect of the defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group and the Bank, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.
To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income. The Group and the Bank determine the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability (asset), taking into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in personnel expenses in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group and the Bank recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Citibank Berhad ANNUAL REPORT 2013

2. Significant accounting policies (continued)
O. Employee benefits (continued) iii. Defined benefit plan (continued)
The adoption of MFRS 119 (2011) has no significant impact to the financial statements of the Group and the Bank and hence, the comparatives have not been restated.
iv. Share-based compensation
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.
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 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.
P. Foreclosed properties
Foreclosed properties are those acquired in full or partial satisfaction of debts, are stated at cost less accumulated impairment losses.
Q. Provisions
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.
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.
Cash and balances with banks
and other financial institutions
Money at call and deposit
placements maturing within one month
2013
RM’000
Group
2012
RM’000
2013
RM’000
Bank
2012
RM’000
84,618 88,995 84,598 88,975
10,762,730 10,204,240 10,762,730 10,204,240
10,847,348 10,293,235 10,847,328 10,293,215
Group and Bank
2013 2012
RM’000 RM’000
Bank Negara Malaysia
Licensed banks
100,000
743,609
843,609
-
296,775
296,775
Citibank Berhad ANNUAL REPORT 2013

At fair value
Malaysian Government Treasury Bills
Malaysian Government Securities
Malaysian Government Investment Issues
Bank Negara Malaysia Bills/Notes
At fair value
Malaysian Government Treasury Bills/Securities
Bank Negara Malaysia Bills
Malaysian Government Investment Issues
At cost
Unquoted securities
Group and Bank
2013 2012
RM’000 RM’000
161,551
100,312
113,221
2,168,493
2,543,577
103,053
642,680
267,104
2,032,220
3,045,057
Group and Bank
2013 2012
RM’000 RM’000
599,952
545,552
639,117
1,698,966
788,073
904,898
1,784,621 3,391,937
7,499
1,792,120
7,499
3,399,436
Citibank Berhad ANNUAL REPORT 2013

i. By type
Overdrafts
Term loans/financing
- housing loans/financing
- hire purchase receivables
- lease receivables
- other term loans/financing
Bills receivable
Trust receipts
Claims on customers under acceptance credits
Staff loans
Share margin financing
Credit cards receivables
Revolving credit
Other loans
Unearned interest and income
Gross loans, advances and financing
Less:
Allowance for impaired loans, advances and financing
- Collective assessment allowance
- Individual assessment allowance
Net loans, advances and financing
ii. By type of customer
Domestic non-bank financial institutions
- others
Domestic business enterprises
- small and medium enterprises
- others
Individuals
Foreign entities
Group and Bank
2013 2012
RM’000 RM’000
474,258 408,205
9,218,551 8,956,129
- 808
- 570
1,650,245 1,350,200
1,023,755 740,065
1,223 13,100
761,376 922,132
82,866 91,719
209,105 180,455
6,364,477 6,093,593
1,128,461 1,099,443
162,563 6,578
21,076,880 19,862,997
(20,686) (23,970)
21,056,194 19,839,027
(368,381) (357,064)
(189,531) (205,769)
20,498,282 19,276,194
810,099 502,069
474,295 423,326
2,735,094 2,823,232
16,753,454 15,869,348
283,252 221,052
21,056,194 19,839,027
Citibank Berhad ANNUAL REPORT 2013

7. Loans, advances and financing (continued) iii. By interest/profit rate sensitivity
Fixed rate
Housing loans/financing
Hire purchase receivables
Other fixed rate loans/financing
Variable rate
BLR plus
Cost plus iv. By sector
Primary agriculture
Mining and quarrying
Manufacturing (including agriculture based)
Electricity, gas and water
Construction
Wholesale, retail trade, restaurants and hotels
Transport, storage and communication
Finance, insurance, real estate and business services
Social & community services
Household
- consumption credit
- residential
- purchase of securities
- others
Other sectors v. By purpose
Purchase of securities
Purchase of landed property
Purchase of fixed assets excluding land and building
Personal use
Credit card
Construction
Working capital
Other purposes
Group and Bank
2013 2012
RM’000 RM’000
697,459 741,937
- 808
9,873,938 9,181,998
9,727,043 9,034,808
757,754 879,476
21,056,194 19,839,027
24,337 93,268
41,557 32,050
1,614,026 1,705,728
11,112 84,073
38,516 43,163
711,917 758,725
320,181 307,544
968,580 639,076
20,453 9,862
6,993,296 6,689,390
9,321,700 8,751,212
209,105 180,455
229,353 248,291
552,061 296,190
21,056,194 19,839,027
209,105 180,455
9,934,658 9,321,539
1,532 3,500
725,123 693,920
6,364,477 6,093,593
14,381 17,112
3,779,344 3,478,277
27,574 50,631
21,056,194 19,839,027
Citibank Berhad ANNUAL REPORT 2013

7. Loans, advances and financing (continued) vi. Residual contractual maturity
Maturing within one year
One to five years
Over 5 years vii. By geographical distribution
Within Malaysia
Group and Bank
2013 2012
RM’000 RM’000
10,443,716 9,691,474
658,579 739,269
9,953,899 9,408,284
21,056,194 19,839,027
21,056,194 19,839,027
i. Movements in impaired loans, advances and financing are as follows:
At 1 January
Classified as impaired during the year
Reclassified as performing during the year
Amount recovered
Amount written off
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
Group and Bank
2013
RM’000
2012
RM’000
481,854 518,800
657,235 694,620
(369,473) (361,861)
(154,339) (205,842)
(162,922) (163,863)
452,355 481,854
(189,531) (205,769)
262,824 276,085
1.26% 1.41%
Citibank Berhad ANNUAL REPORT 2013

8. Impaired loans, advances and financing (continued) ii. Movements in impairment provisions for loans, advances and financing are as follows:
Group and Bank
2013 2012
RM’000 RM’000
Collective assessment allowance
At 1 January
Allowance/(Written back) made during the year, net
357,064 365,325
11,317 (8,261)
At 31 December 368,381 357,064
As % of gross loans, advances and financing less individual assessment allowance 1.77% 1.82%
Individual assessment allowance
At 1 January
Allowance made during the period
Written back during the year
Written off during the year
At 31 December
205,769 219,436
12,976 10,957
(12,658) (19,777)
(16,556) (4,847)
189,531 205,769 iii. Impaired loans, advances and financing by sector
Primary agriculture
Mining and quarrying
Manufacturing (including agriculture based)
Construction
Wholesale, retail trade, restaurants and hotels
Transport, storage and communication
Finance, insurance, real estate and business services
Household
- consumption credit
- residential
- purchase of securities
Other purposes
Group and Bank
2013 2012
RM’000 RM’000
7,388 7,689
748 373
28,280 33,651
12,423 13,492
12,245 16,300
61 71
7,762 7,556
104,762 117,880
258,538 264,529
19,490 19,831
658 482
452,355 481,854
iv. Impaired loans, advances and financing by geographical distribution
Within Malaysia 452,355 481,854
Citibank Berhad ANNUAL REPORT 2013

Interest/Income receivable
Other debtors, deposits and prepayments
Retirement benefits plan (Note 19(i))
Derivative assets (Note 30)
Tax recoverable
Group and Bank
2013
RM’000
2012
RM’000
28,315 42,295
246,439 293,651
10,228 -
600,510 472,092
16,314 24,888
901,806 832,926
The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia (“BNM”) in compliance with Section 26(2)(c) of the Central Bank of Malaysia Act, 2009 to satisfy the Statutory Reserve Requirement
(“SRR”), the amount of which is determined as a set percentage of total eligible liabilities.
Recognised deferred tax assets/(liabilities) are attributable to the followings:
Group and Bank
At 1 January 2012
Recognised in profit or loss
Recognised in other comprehensive income
Plant and equipment -
Capital allowances
RM’000
Provisions
RM’000
Reserves
- Financial investments availablefor-sale
RM’000
Total
RM’000
(19,854) 23,112 (2,462) 796
5,038 8,721 - 13,759
- - 2,737 2,737
At 31 December 2012/
At 1 January 2013
Recognised in profit or loss
Recognised in other comprehensive income
(14,816) 31,833
4,415 (3,755)
-
275 17,292
- 660
- 1,153 1,153
(10,401) 28,078 1,428 19,105 At 31 December 2013
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.
Citibank Berhad ANNUAL REPORT 2013

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
Nominee company
Nominee company
Nominee company
Group and Bank
2013 2012
RM’000 RM’000
Country of incorporation
Malaysia
Malaysia
20 20
Effective
Ownership
Interest
2013 2012
100% 100%
Malaysia
100% 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 profit or loss and other comprehensive income.
Citibank Berhad ANNUAL REPORT 2013

Group and Bank
Cost
At 1 January 2012
Additions
Disposals
At 31 December 2012/1 January 2013
Additions
Disposals
Write-off
Reclassification
At 31 December 2013
Depreciation
At 1 January 2012
Charge for the year
Disposals
At 31 December 2012/1 January 2013
Charge for the year
Disposals
Write-off
Reclassification
At 31 December 2013
Carrying amounts
At 1 January 2012
At 31 December 2012/1 January 2013
At 31 December 2013
Building on leasehold land
RM’000
Installations
RM’000
Furniture and equipment
RM’000
Total
RM’000
6,581
73
(256)
114,127 329,944 450,652
6,439 19,522 26,034
(9,206) (17,182) (26,644)
6,398
-
-
(73)
111,360 332,284 450,042
184 9,022 9,206
(6,874) (11,343) (18,217)
- - (73)
104,661 (104,661) - -
110,986 9 329,963 440,958
4,473
411
(196)
85,991 239,283 329,747
10,050 26,073 36,534
(9,018) (16,368) (25,582)
4,688
6,628
-
(73)
87,023
3,468
(6,863)
248,988 340,699
25,479 35,575
(11,113) (17,976)
-
83,624 (83,624)
- (73)
- -
94,867 4 263,354 358,225
2,108 28,136 90,661 120,905
1,710
16,119
24,337 83,296 109,343
5 66,609 82,733
Citibank Berhad ANNUAL REPORT 2013

i. By type of deposit
Demand deposits
Saving deposits
Fixed deposits
Other deposits
Negotiable instruments of deposit
Others - cash collateral
Group and Bank
2013
RM’000
2012
RM’000
11,068,690 10,562,576
1,117,806 852,220
9,231,986 9,683,793
4,352,378 5,200,906
10,000 17,900
2,669 12,747
25,783,529 26,330,142 ii. Maturity structure of fixed deposits, other deposits and negotiable instruments of deposit are as follows:
Due within six months
Six months to one year
One year to three years
Group and Bank
2013 2012
RM’000 RM’000
12,326,286 11,746,885
1,260,122 3,046,788
7,956 108,926
13,594,364 14,902,599 iii. By type of customer
Government and statutory bodies
Business enterprises
Individuals
Others
Group and Bank
2013
RM’000
2012
RM’000
7,343 281,570
13,043,042 13,209,461
11,886,623 9,753,818
846,521 3,085,293
25,783,529 26,330,142
Citibank Berhad ANNUAL REPORT 2013

Bank Negara Malaysia
Licensed banks
Licensed finance companies
Group and Bank
2013 2012
RM’000 RM’000
131,422 83,731
3,163,145 3,017,901
2,561,690 2,412,445
5,856,257 5,514,077
Interest/Profit payable
Other creditors and accruals
Provision for retirement benefits (Note 19(i))
Derivative liabilities (Note 30)
Group and Bank
2013 2012
RM’000 RM’000
48,902 52,883
1,778,633 1,608,074
- 270
524,618 528,677
2,352,153 2,189,904
Ordinary shares of RM1 each:
Authorised
Issued and fully paid
Amount
2013
RM’000
Group and Bank
Number of shares
2013
’000
Amount
2012
RM’000
Number of shares
2012
’000
500,000 500,000 500,000 500,000
121,697 121,697 121,697 121,697
Share premium
Statutory reserve
Retained profits
Other reserve
- Fair value reserve
- Defined benefit reserve
Total reserves
Group and Bank
2013
RM’000
2012
RM’000
380,303 380,303
121,697 121,697
3,695,833 3,662,946
8,054 (823)
(4,283) (823)
12,337 -
4,205,887 4,164,123
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.
Citibank Berhad ANNUAL REPORT 2013

18. Reserves (continued)
The statutory reserve is maintained in compliance with Section 47(2)(f) of the Financial Services Act 2013 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.
The defined benefit reserve is in respect of remeasurement of the defined benefit plan assets/liabilities.
Subject to agreement by the Inland Revenue Board, the Bank has tax exempt income to frank approximately
RM20,479,000 of its distributable reserves at 31 December 2013 if paid out as dividends.
i. Retirement benefits
The amounts recognised in the statements of financial position are as follows:
Group and Bank
2013
RM’000
2012
RM’000
Present value of the funded obligation
Fair value of plan assets
Unrecognised past service costs
Unrecognised actuarial gains
26,661 31,391
(36,889) (38,934)
(10,228) (7,543)
- (4)
- 7,817
(Assets)/Liabilities recognised in statements of financial position (10,228) 270
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
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) i. Retirement benefits (continued)
Plan assets comprise:
Equities
Property
Securities
Others
Group and Bank
2013 2012
RM’000 RM’000
11,159 11,291
- 15,807
9,617 11,018
16,113 818
36,889 38,934
Funding Arrangement and Policies
Contribution to the Plan take into account the funding valuation results, subject to the local tax effective contribution limit up to 19% of the Plan members’ total remuneration (including the Bank’s contributions to the EPF for the members).
Results from the last funding valuation recommend a contribution holiday for the 2014 year. The surplus under the Plan (Defined Benefit section) will also be used to fund the contribution requirements of the
Defined Contribution section. The funding position is reviewed annually by the Trustees and the Bank.
Movement in the present value of the defined benefit obligations:
Defined benefit obligations at 1 January
Settlements
Benefits paid from plan assets
Current service costs and interest
Plan changes/amendments
Remeasurement/Actuarial gains
Defined benefit obligations at 31 December
Group and Bank
2013
RM’000
2012
RM’000
31,391 35,439
(2,177) (3,248)
(598) -
2,456 3,221
42 -
(4,453) (4,021)
26,661 31,391
Movement in the fair value of plan assets:
Fair value of plan assets at 1 January
Contributions paid into the plan*
Settlements
Benefits paid from plan assets
Expected return on plan assets
Remeasurement/Actuarial gains
Interest Income
Group and Bank
2013
RM’000
2012
RM’000
38,934 37,343
(2,918) 1,301
(2,177) (3,248)
(598) -
- 2,370
2,120 1,168
1,528 -
Fair value of plan assets at 31 December 36,889 38,934
* Negative employer contributions in 2013 reflect transfer of funds from Defined Benefit Section to the Defined
Contribution Section of the Plan.
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) i. Retirement benefits (continued)
The amounts recognised in the statements of profit or loss and other comprehensive income are as follows:
Current service costs
Interest cost
Expected return on plan assets
Cost of settlement
Past services cost
Plan administration cost
Group and Bank
2013
RM’000
2012
RM’000
1,205 1,515
(295) 1,706
- (2,370)
- 202
42 8
44 -
Amount included under “personnel costs” 996 1,061
Actual return on plan assets - 3,538
Movement in the net benefit asset/ (liability) recognised in the statements of financial position are as follows:
Group and Bank
2013 2012
RM’000 RM’000
270 701 Balance as at 1 January
Included in Profit or Loss
- Current service cost
- Past service cost
Interest (income)/cost
- Others
1,205 1,515
(2,049) (2,370)
(235) 1,706
- 210
(1,079) 1,061
Included in Other Comprehensive Income
Remeasurement gain
- Prior year
- Current year
(5,140) -
(7,197) -
(12,337) -
Other
Contributions paid by employer
Balance as at 31 December
2,918 (1,492)
(10,228) 270
The latest valuation of the Defined Benefit Plan as at 31 December 2013 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.
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) i. Retirement benefits (continued)
Principal actuarial assumptions used at the reporting date (expressed as weighted averages):
Discount rate
Group and Bank
2013
RM’000
2012
RM’000
4.75% 4.25%
Rate of increase in salary levels
Price inflation
5.00% 6.00%
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.
Historical information
Group and Bank
Present value of the defined benefit obligation
Fair value of plan assets
(Surplus)/Deficit in the plan
Experience adjustments arising on plan assets
- (gains)/losses
Experience adjustments arising on plan liabilities
- (gains)/losses
Assumption adjustment on plan liabilities – (gains)/losses
2013
RM’000
2012
RM’000
2011
RM’000
2010
RM’000
2009
RM’000
26,661 31,391 35,439 34,633 34,093
(36,889) (38,934) (37,343) (37,488) (25,972)
(10,228) (7,543) (1,904) (2,855) 8,121
(2,120) (1,168) 833 (9,602) (2,127)
(1,775) (2,866) (686) (1,342) 4,850
(2,678) (1,155) 484 508 566
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
Increase
RM’000
2013
Decrease
RM’000
Defined benefit obligation
Discount rate (1% movement)
Future salary growth (1% movement)
(1,564) 1,708
2,601 (2,423)
Other assumptions are held constant when quantifying the sensitivity results to a particular assumption.
The sensitivity results above determine their individual impact on the Plan’s end of year defined benefit obligation.
In reality, the Plan is subject to multiple external experience items which may move the defined benefit obligation in similar or opposite directions, while the Plan’s sensitivity to such changes can vary over time.
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) ii. Share option plan
The Group and the Bank have a number of stock option programmes for their officers and employees as part of a discretionary award package. Certain stock awards with performance conditions or certain claw back provisions are subject to variable accounting, pursuant to which the associated compensation expense fluctuates with changes in Citigroup’s stock price. Options are granted on Citigroup stock at the market value denominated in US dollar at the time of grant. Compensation cost related to awards granted to employees who meet certain age plus years of service requirements (retirement eligible employees) is accrued in the year prior to the grant date.
Outstanding at 1 January
Granted
Exercised
Transfer in
Lapsed/Cancelled
Group and Bank
2013 2012
683,830 661,935
- -
(8,931)
69,040 55,874
-
(635) (33,979)
Outstanding at 31 December 743,304 683,830
Details of share options granted during the year:
Expiry dates
Average grant price per ordinary share (RM)
Aggregated proceeds if shares are issued (RM’000)
Details of share options exercised during the year:
Year of expiry
Average exercise price per ordinary share (RM)
Aggregated issue proceeds (RM’000)
Fair value at date of vesting (RM’000)
Terms of the options outstanding at 31 December:
Expiry dates
Jan 2013
Jan 2014
Oct 2015
Exercise price
RM 166.35
RM 74.79
RM 12.48
Group and Bank
2013 2012
- -
- -
- -
2015 -
13.38 -
120 -
120 -
Group and Bank
2013 2012
- 635
11,182 11,188
732,122 672,007
743,304 683,830
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) iii. Share capital accumulation plan (CAP)
The Group and the Bank have a number of capital accumulation programmes for the 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 2013 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.
Group and Bank
2013 2012
Outstanding at 1 January
Granted
Vested
Lapsed/cancelled
Net transferred out
Outstanding at 31 December
607,580 485,525
240,739 416,375
(335,637) (269,016)
(56,898) (354)
(25,993) (24,950)
429,791 607,580
Details of CAP granted during the year:
Expiry dates
Average grant price per ordinary share (RM)
Aggregated proceeds if shares are issued (RM’000)
Details of CAP vested during the year:
Average exercise price per ordinary share (RM)
Aggregated issue proceeds (RM’000)
Fair value at date of vesting (RM’000)
Group and Bank
2013 2012
Feb 18, 2017 Jan 16, 2016
14.41 9.34
3,468 3,889
13.07 8.93
3,732 4,355
3,871 1,695
Citibank Berhad ANNUAL REPORT 2013

19. Employee benefits (continued) iii. Share capital accumulation plan (CAP) (continued)
Terms of the CAP outstanding at 31 December:
Year of expiry
Jan 2013
Jan 2014
Jan 2014
Jan 2015
Jan 2015
Jan 2016
Jan 2016
Feb 2017
Grant price
RM 14.29
RM 11.53
RM 10.76
RM 15.36
RM 9.34
RM 10.01
RM 9.34
RM 14.41
Loans and advances
- Interest income other than recoveries from impaired loans
- Recoveries from impaired loans
Money at call and deposit placements with financial institutions
Financial assets held-for-trading
Financial investments available-for-sale
Securities purchased under resale agreements
Accretion of discount
Total interest income
Deposits and placements of banks and other financial institutions
Deposits from customers
Others
Citibank Berhad ANNUAL REPORT 2013
Group and Bank
2013 2012
- 35,232
22,765 -
- 61,905
- 131,856
60,127 104,795
133,190 -
- 273,792
213,709 -
429,791 607,580
Group and Bank
2013
RM’000
2012
RM’000
1,147,135 1,168,629
46,016 53,571
165,395 198,850
38,160 47,508
61,778 97,967
24,585 29,357
1,483,069 1,595,882
57,693 73,193
1,540,762 1,669,075
Group and Bank
2013 2012
RM’000 RM’000
44,176 62,646
400,177 445,195
4,147 3,740
448,500 511,581

Fee income:
Commission
Service charges and fees
Guarantee fees
Bankcard fees
Insurance premium and referral
Other fee income
Trading income:
Unrealised (loss)/gain from revaluation of financial assets held-for-trading
Net (loss)/gain from sales of securities
- Financial assets held-for-trading
- Financial investments available-for-sale
Gross dividends from financial investments available-for-sale
Other income:
Foreign exchange profit
- unrealised gain
- realised gain
(Loss)/Gain from derivatives
Loss on disposal of plant and equipment
Group and Bank
2013
RM’000
2012
RM’000
154,139 145,628
13,128 15,568
6,677 6,775
214,916 221,601
30,399 28,105
64,443 46,753
483,702 464,430
(4,445) 41
(3,277) 7,052
12,237 19,447
245 28
4,760 26,568
165,955 112,462
31,144 31,552
(68,502) 14,954
(32) (392)
128,565 158,576
617,027 649,574
Citibank Berhad ANNUAL REPORT 2013

Personnel costs
- Salaries, allowances and bonuses
- Contributions to Employees Provident Fund
- Staff benefits and other compensations
- Others
Establishment costs
- Depreciation
- Rental of premises
- Hire of equipments
- Utilities
- Others
Marketing expenses
- Advertisement and promotional expenses
- Others
Administrative and general expenses
- Processing cost
- Auditors’ remuneration
- Statutory audit
- Other services
- Stationeries and supplies
- Communication expenses
- Maintenance of office equipment
- Others
Total other operating expenses
Group and Bank
2013 2012
RM’000 RM’000
328,587 334,821
42,406 42,291
35,143 42,654
9,696 10,925
415,832 430,691
35,575 36,534
23,625 24,171
2,045 4,120
5,252 6,334
17,667 17,793
84,164 88,952
43,602 47,077
664 1,327
44,266 48,404
261,732 250,907
371 361
305 263
4,165 4,810
10,256 6,948
1,218 3,694
85,735 99,068
363,782 366,051
908,044 934,098
Citibank Berhad ANNUAL REPORT 2013

23. Other operating expenses (continued) i. CEO and Directors’ remuneration
Executive Directors (including CEO)
Salary and other remuneration, including meeting allowances
Bonuses
Benefits-in-kind
Share-based payment
Non-executive Directors
Fees
ii. Other key management personnel:
- short-term employee benefits
Group and Bank
2013 2012
RM’000 RM’000
2,676 2,011
766 1,032
460 430
1,667 (29)
300 232
5,869 3,676
5,505 2,902
Executive Director and CEO
Sanjeev Nanavati
Non-executive Directors
Terence Kent Cuddyre
Tan Sri Dato’ Hj Omar Ibrahim
Dato’ Siow Kim Lun @
Siow Kim Lin
Agnes Liew Yun Chong
Dato’ Dr. Thillainathan A/L
Ramasamy
Salary and others remunerations
RM’000
Fees
RM’000
2,676
-
-
-
-
-
2,676
-
100
100
-
100
300
Bonuses
RM’000
- 766
-
-
-
-
-
766
Benefitsinkind
RM’000
-
-
-
-
-
Total
RM’000
460 3,902
460 4,202
100
-
100
-
100
Citibank Berhad ANNUAL REPORT 2013

Allowance for loans, advances and financing:
Individual assessment
- allowance made during the year
- written back
Collective assessment
- allowance/(written back)
Impaired loans, advances and financing
- written back
- written off
Malaysian income tax
- current year
- prior year (over)/under provision
Deferred tax expense
- Origination and reversal of temporary differences
- prior year under/(over) provision
Group and Bank
2013 2012
RM’000 RM’000
12,976 10,957
(12,658) (19,777)
11,317 (8,261)
(87,493) (90,145)
209,143 230,064
133,285 122,838
Group and Bank
2013 2012
RM’000 RM’000
186,425 204,436
(1,783) 20,293
184,642 224,729
(6,391) (5,999)
5,731 (7,760)
183,982 210,970
A reconciliation of the income tax expense between the statutory tax expense and effective tax expense is as follows:-
Profit before taxation
Income tax using Malaysian tax rate of 25%
Non-deductible expenses
Group and Bank
2013 2012
RM’000 RM’000
716,869 789,577
179,217 197,394
817 1,043
Under provision in prior year
180,034 198,437
3,948 12,533
183,982 210,970
Citibank Berhad ANNUAL REPORT 2013

The earnings per ordinary share has been calculated based on the profit for the year of RM532,887,000
(2012 – RM578,607,000) divided by 121,696,972 units of ordinary shares of RM 1 each issued as at the financial years ended.
Dividends recognised by the Bank are:
2013
Final 2012 ordinary
2012
Final 2011 ordinary
Sen per share
(net of tax)
411
247
Total amount
RM’000
500,000
300,000
Date of payment
28 June 2013
13 June 2012
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.
Sen per share
Total amount
RM’000
Final ordinary - 2013 411 500,000
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:
(i) Parent companies
Parent companies of the Group and the Bank are Citigroup Holdings (Singapore) Pte. Ltd. and Citigroup Inc.
(ii) Other related companies
Entities which are related by virtue of having Citigroup Holdings (Singapore) Pte. Ltd. as the holding company 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
(i) and (ii).
Citibank Berhad ANNUAL REPORT 2013

28. Significant related party transactions and balances (continued)
Transactions and balances with parent companies and other related companies
Income
Interest on interest bearing deposits
Other income
Group and Bank
2013
RM’000 RM’000
Parent companies
Other related companies
Group and Bank
2012
RM’000 RM’000
Parent companies
Other related companies
- 20,667 60,343 41,678
9,805 40,883 22,802 98,575
9,805 61,550 83,145 140,253
Expenditure
Interest on interest bearing deposits
Other expenses
- 8,709 - 23,372
26,173 410,061 49,693 380,066
26,173 418,770 49,693 403,438
Amount due from
Interest bearing deposits
Current account balances
Other balances
- 2,933,357 - 5,775,748
22,507 543,447 25,436 971,284
69,206 88,419 102,942 270,376
91,713 3,565,223 128,378 7,017,408
Amount due to
Interest bearing deposits
Current account balances
Other balances
- 1,691,532 - 2,563,330
301,761 1,165,247 122,069 359,737
50,909 240,863 97,787 203,071
352,670 3,097,642 219,856 3,126,138
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.
Citibank Berhad ANNUAL REPORT 2013

Outstanding credit exposures with connected parties of which:
Group and Bank
2013 2012
RM’000 RM’000
1,252,786 1,643,454
Total credit exposure which is non-performing or in default
Total credit exposures
- -
61,380,539 65,626,933
Percentage of outstanding credit exposures to connected parties
- as a proportion of total credit exposures 2.04% 2.50%
- as a proportion of capital base
- which is non-performing or in default
27.58% 36.65%
0.00% 0.00%
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.
Citibank Berhad ANNUAL REPORT 2013

Foreign exchange
related contracts:
- Forwards
- Cross currency
interest rate swaps
- Options
Interest rate contracts:
- Futures
- Swaps
- Options
Equity related
contracts
Others
Contract amount
RM’000
2013
Positive Negative fair fair value
RM’000 value
RM’000
Contract
2012
Positive Negative fair fair amount value value
RM’000 RM’000 RM’000
38,338,105 252,550 147,650 43,496,302 68,211 98,562
4,346,640 112,908 154,316 5,946,434 176,445 175,376
2,264,685 25,948 19,241 2,093,720 5,099 5,021
13,132,100 - - 1,445,000 - -
20,170,970 199,432 181,449 22,806,028 212,748 231,305
446,307 121 843 454,262 45 1,308
222,224 4,104 4,104 212,919 5,604 5,604
461,870 5,447 17,015 274,330 3,940 11,501
79,382,901 600,510 524,618 76,728,995 472,092 528,677
Note 9 Note 16 Note 9 Note 16
Citibank Berhad ANNUAL REPORT 2013

The Group’s and the Bank’s risk management framework are designed to monitor, evaluate and manage the principal risk they assume in conducting their activities. These risks include the following:
■ credit risk
■ market risk
■ operational risk
1. Credit Risk
Credit risk is the risk of financial loss to the Group and the Bank if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s and the Bank’s loans and advances to customers and other banks, and investment in debt securities and when the Group or the Bank acts as an intermediary on behalf of its clients and other third parties.
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.
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.
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.
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:
■ for residential mortgages - charges over residential properties
■ for commercial property loans - charges over the properties being financed
■ for share margin financing - pledges over quoted securities
■ for other loans - charges over business assets such as premises, inventories, trade receivables or deposits
Citibank Berhad ANNUAL REPORT 2013

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
2013
On-Balance Sheet
Government and
Central
Insurance,
House- Real Estate hold & Business Services, Mining &
Banks Loans Services Agriculture Quarrying Manufacturing Supply Construction & Hotels Communication Services Sectors Total
RM’000 RM’000 RM’000
Financial
Services,
RM’000 RM’000
Electricity,
Gas &
Water
Wholesale
& Retail
Trade,
Restaurants Storage & Community Other
RM’000 RM’000 RM’000 RM’000
Transport,
RM’000
Social &
RM’000 RM’000 RM’000
Cash and short term funds 6,369,000 - 10,847,348
Deposits and placements
with bank and other
financial institutions 100,000 - 743,609 - - - - - - - - - 843,609
Securities purchased under
resale agreements 484,631 - - - - - - - - - - -
Financial assets held-
for-trading
Financial investments
available-for-sale
2,543,577 - - - -
1,784,621 - - - -
- - - - - - -
- - - - - - 1,792,120
Loans, advances
and financing
Other assets
Statutory deposits with
Bank Negara Malaysia
-
359,000
- 525,648 7,521 16,783 106,961 2,248
- - - - - -
19 13,435
- -
282 12 228,897 901,806
- - - 359,000
Contingent liabilities
Commitments
Total Credit Exposures
- - 516,417 17,515 400,710 561,167 203,280 6,562 643,462 878,234 2,119 9,584 3,239,050
27,454,308 30,357,871
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
A. Credit risk exposures and credit risk concentration (continued) i. By Industry analysis (continued)
Group
2012
On-Balance Sheet
Government and
Central
Insurance,
House- Real Estate hold & Business Services, Mining &
Banks Loans Services Agriculture Quarrying Manufacturing Supply Construction & Hotels Communication Services Sectors Total
RM’000 RM’000 RM’000
Financial
Services,
RM’000 RM’000
Electricity,
Gas &
Water
Wholesale
& Retail
Trade,
Restaurants Storage & Community Other
RM’000 RM’000 RM’000 RM’000
Transport,
RM’000
Social &
RM’000 RM’000 RM’000
Cash and short term funds 2,845,000 - 10,293,235
Deposits and placements
with bank and other
financial institutions - - 296,775
Securities purchased under
resale agreements 743,921 - 743,921
Financial assets held-
for-trading
Financial investments
available-for-sale
3,045,057 - -
3,391,937 - - - - - - - - - -
3,045,057
Loans, advances
and financing
Other assets
Statutory deposits with
Bank Negara Malaysia 438,840
- 15,869,348 639,076 93,268 32,050 1,705,728
- - 660,749 2,246
- - -
-
- -
84,073
3,142 1,002
-
43,163 758,725 307,544 9,862 296,190 19,839,027
20 9,330 4,306 56 152,075 832,926
- - - - - 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 9,918 455,764 38,889,217
Contingent liabilities - -
Commitments -
2,691,936
Total Credit Exposures 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
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.
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
A. Credit risk exposures and credit risk concentration (continued) ii. By Geographical analysis
Group
2013
On-Balance Sheet
Malaysia
Hong Kong &
Singapore China PRC Japan
North United Other
Australasia America Kingdom countries Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash and short term funds 8,011,251 1,824,416 41,290 16,583 7,417 610,069 302,013 34,309 10,847,348
Deposits and placements
with banks and other
financial institutions 702,805 843,609
Securities purchased
under resale agreements
Financial assets held-
for-trading
Financial investments
available-for-sale
Loans, advances and
financing
Other assets
Statutory deposits with
Bank Negara Malaysia
770,367 2,237
359,000 -
19
-
- 1,768 100,745 26,670
- - - -
- 901,806
- 359,000
Contingent liabilities
35,719,945 1,967,457 41,309 16,583
2,931,038 14,948 170,534 -
9,185 710,814 328,683 34,309 38,828,285
3,226 68,284 2,595 48,425 3,239,050
Commitments 30,357,871 - - - - - - -
Total Credit Exposures 69,008,854 1,982,405 211,843 16,583 12,411 779,098 331,278 82,734
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
A. Credit risk exposures and credit risk concentration (continued) ii. By Geographical analysis (continued)
Group
2012
On-Balance Sheet
Malaysia
Hong Kong &
Singapore China PRC Japan
North United Other
Australasia America Kingdom countries Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash and short term funds 5,014,113 4,270,060 72,291 36,979 40,832 410,781 422,321 25,858 10,293,235
Deposits and placements
with banks and other
financial institutions 4,419
Securities purchased
under resale agreements
Financial assets held-
for-trading
Financial investments
available-for-sale
Loans, advances and
financing
Other assets
Statutory deposits with
Bank Negara Malaysia
462,705 775 19,010 4,735
438,840 - - -
- 243,740 101,961
- - -
- 832,926
- 438,840
Contingent liabilities
Commitments
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 63,577 167,270 2,691,936
25,123,363 - - - - - - - 25,123,363
Total Credit Exposures 60,223,750 4,432,333 315,589 194,664 42,430 714,763 587,859 193,128
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.
Citibank Berhad ANNUAL REPORT 2013

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
AAA
AA to AA-
A+ to A-
Unrated
Group and Bank
2013 2012
RM’000 RM’000
600,000 -
- -
143,609 296,775
100,000 -
843,609 296,775 ii. 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:
Malaysia
Other
Group and Bank
2013 2012
RM’000 RM’000
702,805 4,419
140,804 292,356
843,609 296,775
C. Other securities
Financial assets held-for-trading
Financial investments available-for-sale
Group and Bank
2013
RM’000
2012
RM’000
2,543,577 3,045,057
1,792,120 3,399,436
4,335,697 6,444,493
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
C. 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:-
Group and Bank
2013 2012
RM’000 RM’000
AAA
A+ to A-
Unrated
6,500
1,575,196
2,754,001
6,500
3,297,538
3,140,455
4,335,697 6,444,493 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
2013 2012
RM’000 RM’000
Malaysia 4,335,697 6,444,493
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
D. Credit quality of loans, advances and financing
Loans, advances and financing
- neither past due nor impaired
- past due but not impaired
- impaired
Gross amount
Individual assessment allowance
Collective assessment allowance
Carrying amount
Group and Bank
2013 2012
RM’000 RM’000
19,046,142 17,429,100
1,557,697 1,928,073
452,355 481,854
21,056,194 19,839,027
(189,531) (205,769)
(368,381) (357,064)
20,498,282 19,276,194
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
2013 2012
RM’000 RM’000
Renegotiated loans 738,811 790,739
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
1 - 29 dpd
30 - 59 dpd
2013
RM’000
2012
RM’000
60 - 89 dpd
90 - 119 dpd
120 - 180 dpd
>180 dpd
1,096,247 1,434,140
335,775 356,567
125,675 137,366
- -
-
- -
-
1,557,697 1,928,073
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
D. Credit quality of loans, advances and financing (continued)
Impaired
Loans, advances and financing 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, advances and financing to customers that are individually impaired analysed by age are as follows:
Current
1 - 29 dpd
30 - 59 dpd
60 - 89 dpd
90 - 119 dpd
120 - 180 dpd
>180 dpd
Group and Bank
2013 2012
RM’000 RM’000
24,882 28,676
25,771 11,820
30,115 27,948
26,557 30,907
56,356 64,577
98,463 104,157
190,211 213,769
452,355 481,854
Estimated value of collaterals against past due but not impaired and impaired loans are RM705,890,000
(2012 - RM709,848,000).
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued)
2. Market Risk
Market risk encompasses price risk and liquidity risk, both arising from 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.
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 90 basis points movement for interest rates and a 4% 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 2013, it is estimated that a general increase of 90 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
RM75,575,000 whereas a general decrease of 90 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 2013, it is estimated that a movement of 4% in Ringgit Malaysia (RM) against foreign currencies, with all other variables held constant, would result in maximum loss of approximately RM4,542,000.
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 reporting date for presentation purposes.
Citibank Berhad ANNUAL REPORT 2013

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.
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.
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. i. Interest/profit rate risk
Group
2013
Up to 1 month
RM’000
> 1 - 3 > 3 - 12 > 1 - 5 months months years years
RM’000 RM’000 RM’000 RM’000 sensitive
Over 5 Non-interest Trading book Total
RM’000 RM’000 RM’000
Effective interest rate
%
Assets
Cash and short term funds 9,607,138 - - - - 10,847,348
Deposits and placements with
banks and other financials
institutions - 827,682 15,004 923
Securities purchased under
resale agreements
Financial assets held-for-trading
484,631
-
Financial investments
available-for-sale -
-
-
298,216
-
-
-
-
257,413 1,180,568
-
-
-
55,923
-
-
843,609 2.94%
- 2,543,577 2,543,577 3.27%
-
Loans, advances and financing
- performing 1,779,590 1,309,503 7,067,920 492,927 9,953,899 (368,381)
-
- 484,631 2.88%
- 1,792,120 3.70%
- 20,235,458 6.14%
- impaired
Other assets
Statutory deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
-
-
-
-
-
-
-
-
- 301,296 600,510 901,806
- 359,000 - 359,000
Total assets 11,871,359 2,435,401 7,340,337 1,674,418 10,009,822 1,896,787 3,144,087 38,372,211
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) i. Interest/profit rate risk (continued)
Group
2013
Up to 1 month
RM’000
> 1 - 3 > 3 - 12 > 1 - 5 months months years
Over 5 Non-interest Trading years sensitive book
RM’000 RM’000 RM’000 RM’000
Total
RM’000 RM’000 RM’000
Effective interest rate
%
Liabilities and
Shareholders’ Equity
Deposits from customers 22,167,030 1,415,748 2,192,795 7,956
Deposits and placements of
banks and other financial
institutions 5,324,233 29,583 182,746 319,695
- - - 25,783,529 1.56%
Other liabilities
- - - 5,856,257 0.68%
Bills and acceptances payable - - - - - 52,688
- - - - - 1,827,535 524,618 2,352,153
Total liabilities
Shareholders’ equity
27,491,263 1,445,331 2,375,541 327,651 - 1,880,223 524,618 34,044,627
Total liabilities and
shareholders' equity 27,491,263 1,445,331 2,375,541 327,651 - 6,207,807 524,618 38,372,211
On-balance sheet interest
sensitivity gap
Off-balance sheet interest
sensitivity gap
(15,619,904) 990,070 4,964,796 1,346,767 10,009,821 (4,311,020) 2,619,469
(114,000) 12,000 (40,000) 55,000 (33,000) - -
(15,733,904) 1,002,070 4,924,796 1,401,767 9,976,821 (4,311,020) 2,619,469
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) i. Interest/profit rate risk (continued)
Group
2012
Up to 1 month
RM’000
> 1 - 3 > 3 - 12 > 1 - 5 months months years
Over 5 Non-interest Trading years sensitive book
RM’000 RM’000 RM’000 RM’000
Total
RM’000 RM’000 RM’000
Effective interest rate
%
Assets
Cash and short term funds 9,042,370 - - - -
Deposits and placements with
banks and other financials
institutions - 274,439 19,719 2,617
Securities purchased under
resale agreements
Financial assets held-for-trading
743,921
-
-
-
-
-
-
-
-
-
-
-
-
-
-
296,775 3.36%
743,921 2.78%
- 3,045,057 3,045,057 3.30%
Financial investments
available-for-sale
Loans, advances and financing
- performing
- impaired
107,414 281,064 771,654 1,601,846 637,458 -
1,574,100 878,875 6,284,063 790,872 9,829,263 (357,064)
- - - -
- 3,399,436 3.29%
- 19,000,109 6.32%
- 360,834 472,092 832,926 Other assets
Statutory deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
- - - - - 438,840 - 438,840
Total assets 11,467,805 1,434,378 7,075,436 2,395,335 10,466,721 2,096,195 3,517,149 38,453,019
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) i. Interest/profit rate risk (continued)
Group
2012
Up to 1 month
RM’000
> 1 - 3 > 3 - 12 > 1 - 5 months months years
Over 5 Non-interest Trading years sensitive book
RM’000 RM’000 RM’000 RM’000
Total
RM’000 RM’000 RM’000
Effective interest rate
%
Liabilities and
Shareholders’ Equity
Deposits from customers 21,044,601 1,602,244 3,574,372 108,925 - - - 26,330,142 1.65%
Deposits and placements of
banks and other financial
institutions
Other liabilities
4,876,449 33,729 118,081 485,818 - - - 5,514,077 1.04%
Bills and acceptances payable - - - - - 133,076
- - - - - 1,661,227 528,677 2,189,904
Total liabilities
Shareholders’ equity
25,921,050 1,635,973 3,692,453 594,743 - 1,794,303 528,677 34,167,199
Total liabilities and
shareholders' equity 25,921,050 1,635,973 3,692,453 594,743 - 6,080,123 528,677 38,453,019
On-balance sheet interest
sensitivity gap
Off-balance sheet interest
sensitivity gap
(14,453,245) (201,595) 3,382,983 1,800,592 10,466,721 (3,983,928) 2,988,472
(138,000) (296,000) 296,000 (154,000) 86,000 - -
(14,591,245) (497,595) 3,678,983 1,646,592 10,552,721 (3,983,928) 2,988,472
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.
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) ii. 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
2013
Assets
Cash and short term funds
Deposits and placements with banks and other financial institutions
Securities purchased under resale agreements
Financial assets held- for-trading
Financial investments available-for-sale
MYR
RM’000
USD
RM’000
7,125,786 2,572,071
700,000 32,056
JPY
RM’000
Others
RM’000
Total
RM’000
17,507 1,131,984 10,847,348
- 111,553 843,609
Loans, advances and financing 18,994,052 1,319,455 138,415 46,360 20,498,282
Other assets (6,853,372) 6,844,450 (331,061) 1,241,789 901,806
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
Total assets 25,247,632 10,768,032 (175,139) 2,531,686 38,372,211
Liabilities
Deposits from customers 19,723,007 4,962,954 72,767 1,024,801 25,783,529
Deposits and placements of banks and other financial institutions
Bills and acceptances payable
Other liabilities
3,876,690 1,687,712 100,026 191,829 5,856,257
12,091 37,781 2,112 704 52,688
(2,490,458) 3,761,338 (317,402) 1,398,675 2,352,153
21,121,330 10,449,785 (142,497) 2,616,009 34,044,627 Total liabilities
Shareholder’s equity
Total liabilities and shareholder’s equity 25,448,914 10,449,785 (142,497) 2,616,009 38,372,211
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) ii. Foreign currency risk (continued)
Group
2012
MYR
RM’000
USD
RM’000
JPY
RM’000
Others
RM’000
Total
RM’000
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
3,639,362
-
485,947 4,917,767 1,250,159 10,293,235
89,973 157,369 49,433 296,775
Financial investments available-for-sale
Loans, advances and financing 17,978,104 1,122,670 130,747 44,673 19,276,194
Other assets 5,273,902 (4,505,351) 264,222 (199,847) 832,926
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
Total assets 34,645,257 (2,806,761) 5,470,105 1,144,418 38,453,019
Liabilities
Deposits from customers 19,792,912 5,513,580 47,550 976,100 26,330,142
Deposits and placements of banks and other financial institutions
Bills and acceptances payable
Other liabilities
Total liabilities
Shareholder’s equity
2,777,286 2,299,943 310,776 126,072 5,514,077
8,153,768 (6,273,043) 282,662 26,517 2,189,904
30,729,951 1,665,960 641,882 1,129,406 34,167,199
Total liabilities and shareholder’s equity 35,015,771 1,665,960 641,882 1,129,406 38,453,019
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 ANNUAL REPORT 2013

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 reporting date to the contractual maturity.
Group
2013
Assets
Less than 7 days to 1 to 3
7 days
3 to 6 6 to 12 1 to 3
1 month months months months years
3 to 5 years
Over
No specific
5 years maturity Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Cash and short
term funds
Deposits and placements
with banks and other
financial institutions
Securities purchased
under resale
agreements
Financial assets
held-for-trading
Financial investments
available-for-sale
Loans, advances and
financing
Other assets
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
7,270,324 2,336,813
-
484,631
4,999
-
795,543 859,230 1,366,175 408,158 6,839,140 459,877 198,702 9,953,899 (382,442) 20,498,282
171,522 53,542 108,828 85,181 59,843 69,242 179,917 17,266 156,465 901,806
-
- 827,682
-
41,676 592,747 1,034,621 731,728 116,439
-
-
-
-
-
8,489
-
-
-
6,515
-
-
-
923
-
-
-
-
-
65,990 (44,623)
-
- 1,240,211 10,847,348
-
-
-
-
843,609
484,631
- 2,543,577
- 1,792,120
- 359,000 359,000
Total assets 8,727,019 3,291,261 3,193,648 1,783,785 7,647,303 1,745,633 526,025 9,982,465 1,475,072 38,372,211
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) iii. Analysis of assets and liabilities by remaining maturity (continued)
Group
2013
Liabilities and shareholders’ funds
Deposits from customers
Deposits and placements
of banks and other
financial institutions
Bills and acceptances
payable
Other liabilities
Less than 7 days to 1 to 3
7 days
3 to 6
1 month months months months
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
15,892,470 6,274,561 1,415,748 932,672 1,260,122 7,956 - - - 25,783,529
4,427,590 896,643 29,583 55,990 126,756 319,695
654,402 (162,376) (324,490) (114,848)
6 to 12
-
1 to 3 years
-
3 to 5 years
-
-
Over
5 years maturity Total
-
-
No specific
-
- 52,688
Total liabilities 22,395,386 7,069,055 1,192,569 952,369 1,406,389 417,239 132,837 22,525 456,258 34,044,627
Share capital
Reserves
- - - - - - - - 121,697 121,697
- - - - - - - - 4,205,887 4,205,887
Total equity attributable to
equity holder of the bank
Total liabilities and equity 22,395,386 7,069,055 1,192,569 952,369 1,406,389 417,239 132,837 22,525 4,783,842 38,372,211
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) iii. Analysis of assets and liabilities by remaining maturity (continued)
Group
2012
Assets
Less than 7 days to 1 to 3
7 days
3 to 6 6 to 12 1 to 3
1 month months months months years
3 to 5 years
Over
No specific
5 years maturity Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Cash and short
term funds
Deposits and placements
with banks and other
financial institutions
Securities purchased
under resale
agreements
Financial assets
held-for-trading
Financial investments
available-for-sale
Loans, advances and
financing
-
196,739
- 274,439 11,946 7,773 2,617 - -
79,120 847,024 1,097,814 116,764 392,288 179,792 135,516
- 296,775
- 3,045,057
- 3,399,436
Other assets
Statutory Deposits with
Bank Negara Malaysia
Deferred tax assets
Plant and equipment
290,454 9,934 30,680 62,163 44,207 145,409 97,319 51,034 101,726 832,926
- - - - - - - - 438,840 438,840
Total assets 10,819,535 1,473,788 2,370,221 1,566,944 6,522,030 1,883,156 1,326,987 10,653,271 1,837,087 38,453,019
Citibank Berhad ANNUAL REPORT 2013

31. Financial risk management (continued) iii. Analysis of assets and liabilities by remaining maturity (continued)
Group
2012
Liabilities and shareholders’ funds
Deposits from customers
Deposits and placements
of banks and other
financial institutions
Bills and acceptances
payable
Other liabilities
Less than 7 days to 1 to 3
7 days
3 to 6
718,963 (167,158) (323,072) (95,657)
6 to 12
1 month months months months
-
1 to 3 years
-
3 to 5 years
-
Over
5 years maturity Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
17,097,661 3,946,939 1,602,244 527,584 3,046,788 108,926 - - - 26,330,142
-
-
No specific
-
- 133,076
Total liabilities 22,975,083 5,242,446 1,352,094 581,259 3,137,850 647,838 189,653 40,698 278 34,167,199
Share capital
Reserves
- - - - - - - - 121,697 121,697
- - - - - - - - 4,164,123 4,164,123
Total equity attributable to
equity holder of the bank
Total liabilities and equity 22,975,083 5,242,446 1,352,094 581,259 3,137,850 647,838 189,653 40,698 4,286,098 38,453,019
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 ANNUAL REPORT 2013

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 reporting date) and the earliest date the Group can be required to pay.
Group
2013
Total contractual
Carrying undiscounted 1 month
Amount cash flows or less
RM’000 RM’000 RM’000
Over 1 Over 3 month to months to
3 months 1 year
RM’000 RM’000
Over
1 year to Over
5 years 5 years
RM’000 RM’000
Financial liabilities
Deposits from customers 25,783,529 26,059,866 20,824,359 1,638,097 3,565,084 32,326
Deposits and placements
of banks and other
financial institutions 5,856,257 5,857,530 5,324,524 29,695 183,616 319,695
Bills and acceptances payable
Other liabilities
52,688 52,688 492,027 (324,490) (114,849) -
2,352,153 2,352,153 1,937,409 71,728 98,066 222,425 22,525
-
-
-
Total 34,044,627 34,322,237 28,578,320 1,415,030 3,731,917 574,446 22,525
Group
2012
Total contractual
Carrying undiscounted 1 month
Amount cash flows or less
RM’000 RM’000 RM’000
Over 1 Over 3 month to months to
3 months 1 year
RM’000 RM’000
Over
1 year to Over
5 years 5 years
RM’000 RM’000
Financial liabilities
Deposits from customers 26,330,142 29,151,704 23,271,812 1,588,924 3,799,559 491,409
Deposits and placements
of banks and other
financial institutions 5,514,077 2,855,766 2,731,826 16,069 1,015 106,856
Bills and acceptances payable
Other liabilities
133,076 133,076 604,725 (337,359) (134,290)
2,189,904 2,189,904 624,011 2,843 3,238
-
664 1,559,148
-
-
-
Total 34,167,199 34,330,450 27,232,374 1,270,477 3,669,522 598,929 1,559,148
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 ANNUAL REPORT 2013

31. Financial risk management (continued)
3. 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.
32.1 Categories of financial instruments
The table below provides an analysis of financial instruments categorised as follows: a. Loans and receivables (“L&R”); b. Fair value through profit or loss (“FVTPL”):
- Held for trading (“HFT”); c. Financial investments available-for-sale (“AFS”); d. Other liabilities (“OL”).
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.1 Categories of financial instruments (continued)
Carrying amount
RM’000
L&R/
OL
RM’000
FVTPL
- HFT
RM’000
AFS
RM’000 Group
2013
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
Financial investments available-for-sale
Loans, advances and financing
Statutory deposits with
Bank Negara Malaysia
Derivatives financial assets
Interest/Income receivable
Total financial assets
10,847,348 10,847,348 - -
843,609 843,609 - -
484,631 484,631
2,543,577 - 2,543,577
-
1,792,120 -
20,498,282 20,490,828
- 1,792,120
7,454 -
-
-
359,000 359,000 -
600,510 - 600,510
28,315 28,315 - -
-
-
37,997,392 33,053,731 3,151,541 1,792,120
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
25,783,529 25,694,455 89,074
5,856,256 5,496,483 359,773
52,688 52,688 -
524,618 - 524,618
48,902 48,902 -
32,265,993 31,292,528 973,465
-
-
-
-
-
-
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.1 Categories of financial instruments (continued)
Group
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
Financial investments available-for-sale
Loans, advances and financing
Statutory deposits with
Bank Negara Malaysia
Derivatives financial assets
Interest/Income receivable
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
Carrying amount
RM’000
L&R/
OL
RM’000
10,293,235 10,293,235
FVTPL
- HFT
RM’000
-
26,330,142 26,245,274 84,868
AFS
RM’000
5,514,077 5,097,974 416,103
133,076 133,076 -
528,677 - 528,677
52,883 52,883 -
32,558,855 31,529,207 1,029,648
-
296,775 296,775 - -
743,921 743,921
3,045,057 - 3,045,057
-
3,399,436 - - 3,399,436
19,276,194 19,265,906 10,288 -
-
-
438,840 438,840 -
472,092 - 472,092
42,295 42,295 -
38,007,845 31,080,972 3,527,437 3,399,436
-
-
-
-
-
-
-
-
-
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.2 Determination of fair value and fair value hierarchy
MFRS 13 Fair Value Measurement requires each class of assets and liabilities measured at fair value in the statements of financial position after initial recognition to be categorised according to hierarchy that reflects the significance of inputs used in making the measurements, in particular, whether the inputs used are observable or unobservable. The following levels of hierarchy are used for determining and disclosing the fair value of those financial instruments:
■ Level 1: Quoted market prices: quoted prices (unadjusted) in active markets for identical instruments;
■ Level 2: Fair values based on observable inputs: inputs other than quoted prices included within Level 1 that are observable for the instrument, whether directly (i.e. as prices) or indirectly (i.e. derived from prices), are used; and
■ Level 3: Fair values derived using unobservable inputs: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
32.2.1 Financial instruments carried at fair value
Group and Bank
2013
Financial assets
Financial assets held-for-trading
Financial investments available-for-sale
Loans, advances and financing
Derivative financial assets
Financial liabilities
Deposits from customers
Deposits and placements of banks and other financial institutions
Derivative financial liabilities
Level 1
RM’000
Level 2
RM’000
Level 3
RM’000
Total
RM’000
2,543,577
1,784,621
-
-
- 2,543,577
- 1,784,621
- - 7,454 7,454
- 597,048 3,462 600,510
4,328,198 597,048 10,916 4,936,162
- - 89,074 89,074
- - 359,773 359,773
- 509,697 14,921 524,618
- 509,697 463,768 973,465
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.2 Determination of fair value and fair value hierarchy (continued)
32.2.1 Financial instruments carried at fair value (continued)
Level 1
RM’000 Group and Bank
2012
Financial assets
Financial assets held-for-trading
Financial investments available-for-sale
Loans, advances and financing
Derivative financial assets
Financial liabilities
Deposits from customers
Deposits and placements of banks
and other financial institutions
Derivative financial liabilities
Level 2
RM’000
Level 3
RM’000
Total
RM’000
3,045,057
3,391,937
-
-
- 10,288
- 464,501
- 3,045,057
- 3,391,937
- 10,288
7,591 472,092
6,436,994 474,789 7,591 6,919,374
- 84,869 - 84,869
- 416,103
- 521,237
- 416,103
7,440 528,677
- 1,022,209 7,440 1,029,649
Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer.
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and 2 fair values during the financial year (2012: no transfer in either directions).
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.2 Determination of fair value and fair value hierarchy (continued)
32.2.1 Financial instruments carried at fair value (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
2013 2012
RM’000 RM’000
Financial assets
Balance at 1 January
Transfer into Level 3
Total losses recognised in profit or loss:
Attributable to losses relating to assets or liabilities that:
- have not been realised
7,591 11,392
10,288 -
(6,963) (3,801)
Balance at 31 December 10,916 7,591
Financial liabilities
Balance at 1 January
Transfer into Level 3
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
500,972
(44,644)
463,768
10,006
-
(2,566)
7,440
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.2 Determination of fair value and fair value hierarchy (continued)
32.2.1 Financial instruments carried at fair value (continued)
The following shows the valuation techniques used in the determination of fair values within Level 3.
a. Loans, advances and financing
Loans, advances and financing carried at fair value are those structured products (hybrid financial instruments) offered by the Group and the Bank. The fair values are estimated based on expected future cash flows of contractual installment payments and discounted at prevailing rates at the reporting date offered for similar products to new borrowers with similar credit profiles, where applicable. For impaired loans, if any, 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.
b. Deposits from customers and deposits and placements of banks and other financial institutions
Deposits from customers and deposits and placements of banks and other financial institutions carried at fair value are those structured products (hybrid financial instruments) offered by the Group and the Bank. The fair values are estimated based on discounted contracted cash flows using rates currently offered for deposits of similar features and remaining maturities. The fair values of Islamic deposits are deemed to approximate their carrying values as at the reporting date as the profit rates are determined at the end of their holding periods based on the profit generated from the assets invested.
c. Derivative financial assets and liabilities
Fair values of financial instrument classified at Level 3 are determined using appropriate valuation technique which, includes the use of mathematical models, such as discounted cash flow models and option pricing models, comparison to similar instruments for which market observable prices exist and other valuation techniques. Valuation techniques used incorporate assumptions regarding discount rates, interest/profit rate yield curves, estimates of future cash flows and other factors, as applicable.
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.2 Determination of fair value and fair value hierarchy (continued)
32.2.2 Financial instruments not carried at fair value
In respect of cash and short term funds, deposits and placements with banks and financial institutions, securities purchased under resale agreements, other assets (excluding derivatives), deposits from customers, deposits and placements of banks and other financial institutions, bills and acceptances payable, and other liabilities (excluding derivatives), the carrying amounts in the statements of financial position approximate their fair values due to the relatively short term/ on demand nature of these financial instruments.
The fair values of other financial assets, together with the carrying amounts shown in the statements of financial position, are as follows:
Level 1
RM’000
Level 2
RM’000
Level 3
RM’000
Total
RM’000
Carrying
Amount
RM’000 Group and Bank
2013
Financial assets
Loans, advances and financing - - 20,522,081 20,522,081 20,490,828
Comparative figures have not been analysed by levels by virtue of transitional provision given in Appendix C2 of MFRS 13.
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 at statements of financial position date. The fair value for loans, advances and financing is estimated with similar methodology as discussed in 32.2.1(a).
32.3 Offsetting of financial assets and liabilities
The Group and the Bank enters into derivative transactions under International Swaps and Derivatives
Association (“ISDA”) master netting agreements. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions are aggregated into a single net amount that is payable by one party to the other. In certain circumstances – e.g. when a credit event such as a default occurs, all outstanding agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all transactions.
The ISDA agreements do not meet the criteria for offsetting in the statements of financial position. This is because the Group and the Bank currently do not have any legally enforceable right to offset recognised amounts, because the right to offset is enforceable only on the occurrence of future events such as a by the counterparty.
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.3 Offsetting of financial assets and liabilities (continued)
The following table sets out the carrying amounts of recognised financial instruments that are subject to the above agreements.
Group and Bank
2013
Derivative financial assets
Foreign exchange related contracts
Interest rate contracts
Equity related contracts
Other contracts
Derivative financial liabilities
Foreign exchange related contracts
Interest rate contracts
Equity related contracts
Other contracts
Gross amount recognized/
Amount presented in the statements of financial position
RM’000
Related financial instrument that are not offset but subject to
netting agreement
RM’000
Net amount
RM’000
391,406 (23,142) 368,264
199,553 (88,224) 111,329
4,104 (3,665) 439
5,447 (1,896) 3,551
600,510 (116,927) 483,583
321,207 (39,559) 281,648
182,292 (66,045) 116,247
4,104 (1,354) 2,750
17,015 (9,969) 7,046
524,618 (116,927) 407,691
Citibank Berhad ANNUAL REPORT 2013

32. Financial assets and liabilities (continued)
32.3 Offsetting of financial assets and liabilities (continued)
The following table sets out the carrying amounts of recognised financial instruments that are subject to the above agreements.
Group and Bank
2012
Derivative financial assets
Foreign exchange related contracts
Interest rate contracts
Equity related contracts
Other contracts
Derivative financial liabilities
Foreign exchange related contracts
Interest rate contracts
Equity related contracts
Other contracts
Gross amount recognized/
Amount presented in the statements of financial position
RM’000
Related financial instrument that are not offset but subject to
netting agreement
RM’000
Net amount
RM’000
249,755 (24,158) 225,597
212,793 (100,974) 111,819
5,604 (5,604)
3,940 (842) 3,098
-
472,092 (131,578) 340,514
278,959 (36,353) 242,606
232,613 (90,270) 142,343
5,604 (744) 4,860
11,501 (4,211) 7,290
528,677 (131,578) 397,099
Citibank Berhad ANNUAL REPORT 2013

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
2013 2012
RM’000 RM’000
Within 1 year
Between 1 and 5 years
25,674 27,213
5,415 30,426
Capital expenditures:
Authorised and contracted for
Group and Bank
2013
RM’000
2012
RM’000
3,803 33,905
Citibank Berhad ANNUAL REPORT 2013

A. The capital adequacy ratios are as follows:
Computation of Total Risk Weighted Assets
(“RWA”)
Total credit RWA
Total market RWA
Total operational RWA
Total Risk Weighted Asset
Computation of Capital Ratios
Common Equity Tier (I) (“CET I”) Capital
Tier 1 Capital
Total Capital
Before deducting proposed dividends:
CET I Capital ratio
Total Tier I Capital ratio
Total capital ratio
After deducting proposed dividends:
CET I Capital ratio
Total Tier I Capital ratio
Total Capital ratio
Group and Bank
2013 2012
RM’000 RM’000
22,178,804 20,634,205
2,004,327 2,223,864
3,427,065 3,546,462
27,610,196 26,404,531
4,298,251 N/A
4,298,251 4,269,626
4,542,195 4,484,017
15.568% N/A
15.568% 16.170%
16.451% 16.982%
13.757% N/A
13.757% 14.276%
14.640% 15.088%
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 2013, the total capital and capital adequacy ratios of the Group and the Bank are computed in accordance with Bank Negara Malaysia’s Capital Adequacy Framework (Capital
Components and Basel II – Risk-weighted Assets) dated 28 November 2012 and 27 June 2013 respectively.
The Group and the Bank have adopted the Standardised Approach for Credit Risk and Market Risk, and the
Basic Indicator Approach for Operational Risk. In line with the transitional arrangements under the Bank
Negara Malaysia’s Capital Adequacy Framework (Capital Components), the minimum capital adequacy requirement for common equity Tier I capital ratio and Tier I capital ratio are 3.5% and 4.5% respectively for year 2013. The minimum regulatory capital adequacy requirement remains at 8.0% (2012 – 8.0%) for total capital ratio.
Citibank Berhad ANNUAL REPORT 2013

35. Capital adequacy (continued)
B. The components of CET I, Tier I and Tier II Capital are as follows:
Paid up ordinary share capital
Share premium
Retained profits
Other reserves
Less: Deferred tax assets
Defined benefit pension fund assets
Total CET I Capital/Tier I Capital
Tier II Capital
Collective impairment provisions*
Total Tier II Capital
Total Eligible Tier II Capital
Less: Investments in subsidiary companies
Total Capital
Group and Bank
2013 2012
RM’000 RM’000
121,697 121,697
380,303 380,303
3,695,833 3,662,946
129,751 121,697
(19,105) (17,017)
(10,228) -
4,298,251 4,269,626
243,944 214,411
243,944 214,411
243,944 214,411
- (20)
4,542,195 4,484,017
* Excludes collective assessment allowance on impaired loans restricted from Tier II Capital by BNM of
RM124.4million (2012: RM142.7 million).
Citibank Berhad ANNUAL REPORT 2013

The off-balance sheet exposures and their related counterparty credit risk of the Group and the Bank are as follows:
2013 Credit Risk
Group and Bank Principal amount equivalent amount weighted assets
Nature of item RM’000 RM’000 RM’000
Direct credit substitutes
Transaction related contingent items
Short term self liquidating trade related
contingencies
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
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:
One year or less
Over one year to five years
Over five years
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity up to one year
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
Unutilised credit card lines
Total
2,516,407 2,516,407 2,348,766
527,562 263,781 229,143
151,656 30,331 28,147
43,428 43,428 2,140
21,335,774 580,044 432,001
3,348,423 358,975 207,951
- - -
6,193,843 27,530 9,979
11,327,859 433,160 136,363
1,379,978 114,475 61,343
25,587 2,303 1,102
167,012 16,698 9,216
- - -
248,611 30,325 12,745
2,295 705 629
- - -
364,271 72,854 72,854
1,855,219 927,610 696,522
6,216,423 - -
21,921,958 4,384,392 3,291,028
77,626,306 9,803,018 7,539,929
Citibank Berhad ANNUAL REPORT 2013

36. Commitments and contingencies (continued)
2012
Group and Bank
Nature of item
Direct credit substitutes
Transaction related contingent items
Short term self liquidating trade related
contingencies
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
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:
One year or less
Over one year to five years
Over five years
Other commitments, such as formal standby
facilities and credit lines, with an
original maturity up to one year
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
Unutilised credit card lines
Total
Principal amount
RM’000
Credit equivalent amount
RM’000
Risk weighted assets
RM’000
1,775,552 1,775,552 1,614,183
459,766 229,883 193,184
223,238 44,648 34,165
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
- - -
56,113 7,466 5,479
60,497 9,299 4,712
- - -
568,688 113,738 113,738
1,074,639 537,320 399,334
4,861,934 - -
18,618,102 3,723,620 2,795,626
79,345,922 8,279,157 6,093,629
Citibank Berhad ANNUAL REPORT 2013

Statements of financial position as at 31 December 2013
Assets
Cash and short term funds
Financial assets held-for-trading
Financial investments available-for-sale
Financing, advances and other loans
Deferred tax assets
Other assets
Total assets
Liabilities
Deposits from customers
Other liabilities
Total liabilities
Islamic banking funds
Total liabilities and Islamic banking funds
Commitments and contingencies
(g)
(h)
(i)
(r)
Note
(a)
(b)
(c)
(d)
(f)
2013
RM’000
Bank
2012
RM’000
725,216 91,705
9,751 671,823
249,018 58,071
345,725 397,083
1,732 1,411
28,663 9,249
1,360,105 1,229,342
994,630 907,552
73,110 66,523
1,067,740 974,075
292,365 255,267
1,360,105 1,229,342
581,621 607,205
The notes on pages 123 to 139 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued)
Statement of profit or loss and other comprehensive income for the financial year ended 31 December 2013
Note
2013
RM’000
Bank
2012
RM’000
Income derived from investment of depositors’
funds and others
Provision for financing, advances and others
(made)/written back
(j)
(k)
32,764 31,994
(126) 6,179
Total attributable income
Income attributable to depositors (l)
Total attributable to the Bank
Income derived from investment of Islamic
Banking Funds
Total net income
Other operating expenses
Profit before taxation
(m)
(o)
32,638 38,173
(6,224) (6,880)
26,414 31,293
22,369 14,331
48,783 45,624
(4,614) (2,879)
44,169 42,745
(p) (7,002) (10,686)
37,167 32,059
Tax expense
Profit for the year
Other comprehensive loss, net of tax
Net loss on revaluation of financial investments
available-for-sale
Total comprehensive income for the year
Profit for the year attributable to:
Owner of the Bank
(69) (373)
37,098 31,686
37,167 32,059
Total comprehensive income attributable to:
Owner of the Bank 37,098 31,686
The notes on pages 123 to 139 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued)
Statement of changes in Islamic Banking funds for the financial year ended 31 December 2013
At 1 January 2012
Fair value changes on financial
investments available-for-sale
Total other comprehensive income
for the year
Profit for the year
Total comprehensive income
for the year
At 31 December 2012/ 1 January 2013
Fair value changes on financial
investments available-for-sale
Total other comprehensive loss
for the year
Profit for the year
Total comprehensive income
for the year
At 31 December 2013
Capital funds
RM’000
Fair value
Bank reserve
RM’000
Retained profits
RM’000
Total
RM’000
20,000 542 203,039 223,581
- (373) - (373)
- (373)
-
- (373)
- 32,059 32,059
- (373) 32,059 31,686
20,000 169 235,098 255,267
- - - -
- (69) - (69)
- - 37,167 37,167
- (69) 37,167 37,098
20,000 100 272,265 292,365
Note 37(i)
The notes on pages 123 to 139 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued)
Statements of cash flows for the financial year ended 31 December 2013
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 (gain)/loss on financial assets held-for-trading
Operating profit before working capital changes
Changes in working capital:
Financial assets held-for-trading
Financing, advances and others
Other assets
Deposits from customers
Other liabilities
Cash generated from/(used) in operating activities
Income taxes paid
Net cash generated from/(used) in operating activities
Cash flows from investing activities
Purchase of financial investments available-for-sale
Proceeds from disposal of financial investments available-for-sale
Net cash (used in)/generated from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December (Note 37(a))
2013
RM’000
Bank
2012
RM’000
44,169 42,745
(7,658) (5,594)
126 (6,179)
- (1,228)
(95) 685
36,542 30,429
662,167 (672,508)
51,232 53,256
(19,413) 6,344
87,078 246,811
8,142 (10,897)
825,748 (346,565)
(8,879) (10,686)
816,869 (357,251)
(249,088) (736,011)
65,729 1,116,104
(183,359) 380,093
633,511 22,842
91,705 68,863
725,216 91,705
The notes on pages 123 to 139 are an integral part of these financial statements.
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) a. Cash and short term funds
Cash and balances with banks and other financial institutions
Money at call and deposit placements maturing within one month b. Financial assets held-for-trading
At fair value
Bank Negara Malaysia Islamic Bills
Malaysian Government Treasury Bills c. Financial investments available-for-sale
At fair value
Malaysian Government Investment Issues
2013
RM’000
Bank
2012
RM’000
4,216 3,705
721,000 88,000
725,216 91,705
2013
RM’000
Bank
2012
RM’000
- 662,090
9,751 9,733
9,751 671,823
2013
RM’000
Bank
2012
RM’000
249,018 58,071
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) d. Financing, advances and others i. By type
Term financing
- Housing financing
- Hire purchase receivables
- Lease receivables
Unearned income
Gross financing, advances and others
Less:
Allowance for impaired financing, advances and others
- Collective assessment allowance
- Individual assessment allowance
Total net financing, advances and others ii. By contract
Bai’Bithamin Ajil
Ijarah Muntahia Bittamilik
Diminishing Musharakah iii. By type of customer
Domestic business enterprises
- Small and medium enterprises
- Others
Individuals
2013
RM’000
Bank
2012
RM’000
363,374 418,414
- 808
- 570
363,374 419,792
(16,226) (20,022)
347,148 399,770
(615) (543)
(808) (2,144)
345,725 397,083
24,534 30,669
- 1,378
322,614 367,723
347,148 399,770
- 1,355
3,408 3,227
343,740 395,188
347,148 399,770
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) d. Financing, advances and others (continued) iv. By profit rate sensitivity
Fixed rate
- Housing financing
- Hire purchase receivables
- Other fixed rate/financing v. By sector
Manufacturing (including agriculture based)
Transport, storage and communication
Household - residential
Other sectors vi. By purpose
Purchase of landed property
Purchase of fixed assets excluding land and building
2013
RM’000
Bank
2012
RM’000
347,148 398,392
- 808
- 570
347,148 399,770
- 1,377
- -
343,740 395,188
3,408 3,205
347,148 399,770
347,148 398,393
- 1,377
347,148 399,770
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) e. Impaired financing, advances and others i. Movements in impaired financing, advances and others are as follows:
At 1 January
Classified as impaired during the year
Amount recovered
Amount written off
2013
RM’000
Bank
2012
RM’000
9,758 9,629
6,101 2,354
(3,642) (2,225)
(1,377) -
At 31 December
Individual assessment allowance
Net impaired financing, advances and others
10,840 9,758
(808) (2,144)
10,032 7,614
Ratio of net impaired financing, advances and others to total gross financing, advances and others less individual assessment allowance 2.90% 1.91% ii. Movements in impaired financing, advances and others are as follows:
Collective assessment allowance
At 1 January
Allowance made/(written back) during the year
2013
RM’000
Bank
2012
RM’000
543 6,764
72 (6,221)
At 31 December 615 543
As % of gross financing, advances and others less individual assessment allowance 0.18% 0.14%
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) e. Impaired financing, advances and others (continued) ii. Movements in impaired financing, advances and others are as follows (continued):
Individual assessment allowance
At 1 January
Allowance made during the year
Allowance written back during the year
Amount written off
2013
RM’000
Bank
2012
RM’000
2,144 2,119
176 133
(122)
(1,390)
(91)
(17)
808 2,144 At 31 December iii. Impaired financing, advances and others by sector
Manufacturing (including agriculture based)
Household - residential
2013
RM’000
Bank
2012
RM’000
- 1,377
10,840 8,381
10,840 9,758 f. Other assets
2013
RM’000
Bank
2012
RM’000
Profit receivables
Other debtors, deposits and prepayments
Revaluation gain on profit rate
undertaking contracts (Note 37(s))
891 876
5,136 6,352
22,636 2,021
28,663 9,249
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued)
g. Deposits from customers i. By type of deposit
Non-Mudharabah Fund
Demand deposits
Saving deposits
Other deposits
Negotiable Instruments of Deposits
Mudharabah Fund
General investment deposits ii. By type of customer
Government and statutory bodies
Business enterprises
Individuals
Others
2013
RM’000
Bank
2012
RM’000
834,654 685,700
63,511 53,787
4,371 60,294
85,580 85,581
6,514 22,190
994,630 907,552
2013
RM’000
Bank
2012
RM’000
141,657 145,853
760,135 191,370
72,562 498,605
20,276 71,724
994,630 907,552
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) h. Other liabilities
Profit payable
Other creditors and accruals
Taxation
Revaluation loss on profit rate undertaking contracts (Note 37(s)) i. Islamic banking funds
Fund allocated
Fair value reserve
Retained earnings j. Income derived from investment of depositors’ funds and others
Income derived from investment of:
(i) General investment deposits
(ii) Other deposits
2013
RM’000
Bank
2012
RM’000
36 65
50,437 62,880
1 1,557
22,636 2,021
73,110 66,523
2013
RM’000
Bank
2012
RM’000
20,000 20,000
100 169
272,265 235,098
292,365 255,267
2013
RM’000
Bank
2012
RM’000
29,403 27,937
3,361 4,057
32,764 31,994
Citibank Berhad ANNUAL REPORT 2013

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
Finance income and hibah
Financing, advances and others
Money at call and placements with financial institutions
Income from financial investments available- for-sale
Accretion of discount less amortisation of premium
Total finance income and hibah
2013
RM’000
Bank
2012
RM’000
13,224 14,365
9,084 5,592
1,521 3,903
23,829 23,860
5,518 4,032
29,347 27,892
Other operating income
Fee income
Income from general investment deposits
56 45
29,403 27,937
Citibank Berhad ANNUAL REPORT 2013

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
Finance income and hibah
Financing, advances and others
Money at call and placements with financial institutions
Income from financial investments available- for-sale
Accretion of discount less amortisation of premium
Total finance income and hibah
Other operating income
Fee income
Income from investment of other deposits k. Provision for financing, advances and others written back
Individual assessment allowance
- made during the year
- written back
Collective assessment allowance
- (made)/reversal during the year
2013
RM’000
Bank
2012
RM’000
1,512 2,086
1,038 812
174 567
2,724 3,465
631 586
3,355 4,051
6 6
3,361 4,057
2013
RM’000
Bank
2012
RM’000
(176) (133)
122 91
(72) 6,221
(126) 6,179
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) l. Income attributable to depositors
Deposits from customers
- Mudharabah Fund
- Non-Mudharabah Fund
Others
2013
RM’000
Bank
2012
RM’000
3,330
2,829
65
6,224
3,845
2,974
61
6,880 m. Income derived from investment of Islamic Banking Capital Funds
Financing, advances and others
Money at call and placements with financial institutions
Income from financial investments available-for-sale
Income from securities held-for-trading
Accretion of discount less amortisation of premium
Total finance income and hibah
Other operating income
Gain/(Loss) from financial assets held-for-trading
Gain from financial investments available-for-sale
Fee income
Gain from trading activities
Insurance premium and referral
Income from Islamic Banking Capital Funds
2013
RM’000
Bank
2012
RM’000
2,906 3,932
1,996 1,530
311 1,068
23 -
5,236 6,530
1,509 976
6,745 7,506
95 (685)
- 1,228
1,011 1,395
14,394 4,685
124 202
15,624 6,825
22,369 14,331
Citibank Berhad ANNUAL REPORT 2013

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:
Income derived from investment of depositors’ funds and others
Income attributable to depositors
Income derived from investment of Islamic
Banking Funds o. Other operating expenses
Personnel costs
- Salaries, allowances and bonuses
- Contributions to Employees Provident Fund
- Staff benefits and other compensations
Establishment costs
- Utilities
- Rental
Marketing expenses
- Advertisement
Administrative and general expenses
- Others
Note
(j)
(l)
(m)
2013
RM’000
32,764 31,994
(6,224) (6,880)
22,369 14,331
48,909
2013
RM’000
Bank
Bank
2012
RM’000
2012
RM’000
91 97
- 7
27 31
1
39,445
4
21 -
76 -
4,398 2,740
4,614 2,879
Included in other operating expenses is the Syariah Committee’s remuneration of RM228,000 (2012 -
RM139,000).
p. Taxation
Current tax expense
Deferred tax expense
2013
RM’000
Bank
2012
RM’000
7,294 11,780
(292) (1,094)
7,002 10,686
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) q. Capital adequacy i. The capital adequacy ratios are as follows:
Assets (“RWA”)
Computation of Total Risk Weighted
Total credit RWA
Total market RWA
Total operational RWA
Total Risk Weighted Assets
Computation of Capital Ratios
Common Equity Tier (I) (“CET I”) Capital
Tier 1 Capital
Total Capital
CET I Capital Ratio
Total Tier I Capital Ratio
Total Capital Ratio
2013
RM’000
Bank
2012
RM’000
143,700 189,349
99,584 192,293
68,023 73,421
311,307 455,063
290,579 N/A
290,579 253,585
290,749 253,805
93.342% N/A
93.342% 55.725%
93.396% 55.774%
With effect from 1 January 2013, the total capital and capital adequacy ratios of the Group and the
Bank are computed in accordance with Bank Negara Malaysia’s Capital Adequacy Framework (Capital
Components and Basel II – Risk-weighted Assets) dated 28 November 2012 and 27 June 2013 respectively. The Group and the Bank have adopted the Standardised Approach for Credit Risk and
Market Risk, and the Basic Indicator Approach for Operational Risk. In line with the transitional arrangements under the Bank Negara Malaysia’s Capital Adequacy Framework (Capital Components), the minimum capital adequacy requirement for common equity Tier I capital ratio and Tier I capital ratio are 3.5% and 4.5% respectively for year 2013. The minimum regulatory capital adequacy requirement remains at 8.0% (2012 – 8.0%) for total capital ratio.
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) q. Capital adequacy (continued) ii. The components of CET I, Tier I and Tier II Capital are as follows:
Fund allocated
Retained earnings
Other reserves
Less: Deferred tax assets
55% of cumulative gains of AFS financial instruments (other than financing and receivables)
2013
RM’000
Bank
2012
RM’000
20,000 20,000
272,265 235,098
100 -
(1,731) (1,513)
(55) -
Total CET I Capital/Tier I Capital
Tier II Capital
Collective impairment provisions*
Total Tier II Capital
Total Capital
290,579 253,585
170 220
170 220
290,749 253,805
* Excludes collective assessment allowance on impaired financing restricted from Tier II Capital by BNM of RM445,000 (2012 – RM323,000).
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) r. Commitments and contingencies
The off-balance sheet exposures and their related counterparty credit risk of the Bank for each reporting dates are as follows:
2013
Nature of item
Profit rate related contracts:
One year or less
Over one year to five years
Over five years
Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year
Principal amount
RM’000
Credit equivalent amount
RM’000
Risk weighted assets
RM’000
- - -
500,000 32,793 6,559
75,000 10,343 2,069
6,621 3,310 2,466
Total 581,621 46,446 11,094
2012
Profit rate related contracts:
One year or less
Over one year to five years
Over five years
Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year
Total
100,000 - -
500,000 19,953 12,991
- - -
7,205 3,603 2,613
607,205 23,556 15,604
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) s. Derivative financial instruments
Foreign exchange
related contracts:
- Cross currency Islamic
profit rate undertaking
Others
- Islamic profit
rate undertaking
Contract
2013
Positive fair
Negative fair Contract amount value
RM’000 RM’000 value
RM’000 amount
RM’000
2012
Positive Negative fair value fair value
RM’000 RM’000
- - - - -
1,250,000 22,636 22,636 1,200,000 2,021 2,021
1,250,000 22,636 22,636 1,200,000 2,021 2,021
-
Note 37(f) Note 37(h) Note 37(f) Note 37(h)
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) t. Profit rate risk
Bank
2013
Up to 1 > 1 - 3 > 3 - 12 month months months
RM’000 RM’000 RM’000
> 1 - 5 Over 5 Non-interest Trading years years sensitive book Total
RM’000 RM’000 RM’000 RM’000 RM’000
Effective profit rate
%
Assets
Cash and short term funds
Financial assets
held-for-trading
Financial investments
available-for-sale
Financing, advances and others
- performing
- impaired
Deferred tax assets
Others assets
Total assets
48 44 194 4,059 331,963 (615) - 335,693 4.82%
721,048 198,892 194 54,229 331,963 21,392 32,387 1,360,105
Bank
2013
Liabilities and
Islamic Banking funds
Deposits from customers
Other liabilities
Up to 1 > 1 - 3 month months
902,760 416
> 3 - 12 months
> 1 - 5 years
1,503 89,951 - -
Over 5 Non-interest Trading years sensitive book Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
- 994,630
Total liabilities
Islamic Banking funds
On-balance sheet profit
sensitivity gap
902,760
Total liabilities and Islamic
Banking funds 902,760
416
416
1,503
1,503
89,951
89,951
- 50,474
- 342,839
(181,712) 198,476 (1,309) (35,722) 331,963
22,636 1,067,740
22,636 1,360,105
9,751
Effective profit rate
%
0.66%
Citibank Berhad ANNUAL REPORT 2013

37. The operations of Islamic Banking (continued) t. Profit rate risk (continued)
Bank
2012
Assets
Cash and short term funds
Financial assets
held-for-trading
Financial investments
available-for-sale
Financing, advances and others
- performing
- impaired
Deferred tax assets
Others assets
Total assets
Up to 1 > 1 - 3 > 3 - 12 month months months
RM’000 RM’000 RM’000
> 1 - 5 years
Over 5 Non-interest Trading years
RM’000 RM’000
- 1,781 6,005 50,285 sensitive
RM’000
-
RM’000
- book Total
RM’000
Effective profit rate
%
- 58,071 4.47%
Bank
2012
Liabilities and
Islamic Banking funds
Deposits from customers
Other liabilities
Up to 1 > 1 - 3 month months
> 3 - 12 months
> 1 - 5 years
754,388 5,152 60,020 87,992 - -
Over 5 Non-interest Trading years sensitive book Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
- 907,552
Total liabilities
Islamic Banking funds
On-balance sheet profit
sensitivity gap
754,388 5,152 60,020 87,992
Total liabilities and Islamic
Banking funds 754,388 5,152 60,020 87,992
- 64,502
- 319,769
2,021 974,075
2,021 1,229,342
(665,999) (1,233) (50,540) (36,641) 382,944 (300,354) 671,823
Effective profit rate
%
0.81%
Citibank Berhad ANNUAL REPORT 2013

38.1 Effect of adopting MFRS 119 Employee Benefits (as amended by MASB in June 2011)
The adoption of the revised MFRS 119 affected the accounting treatment of certain items such as the timing of the recognition of certain gains and losses arising from defined benefit plans and the presentation of changes in defined benefit liability or asset. The key changes to the accounting policy and financial impact to the Group and the Bank are as follows:-
■ Actuarial gains and losses (renamed as ‘remeasurements’) are recognised immediately in other comprehensive income, and are not subsequently recycled to the statement of profit or loss. The corridor approach of accounting for unrecognised actuarial gains in prior years is discontinued.
■ Past service costs, whether unvested or already vested, are recognised immediately in the statement of profit or loss as incurred. Pension costs for a funded benefit plan will include net interest expense or income, calculated by applying the discount rate to the net defined benefit asset or liability. This will replace the interest cost and expected return on plan assets.
The revised MFRS 119 does not have any significant financial impact to the financial statements of the
Group and the Bank.
Citibank Berhad ANNUAL REPORT 2013

(297089M)