Risk Weighted Capital Adequacy Framework (Basel II)

40 Pages·2017·0.63 MB·English

HSBC BANK MALAYSIA BERHAD
(Company No.127776-V)
(Incorporated in Malaysia)
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures
at 30 June 2017
CHIEF EXECUTIVE OFFICER'S ATTESTATION
I, Mukhtar Malik Hussain, being the Chief Executive Officer of HSBC Bank Malaysia Berhad, do
hereby state that, in my opinion, the Pillar 3 Disclosures set out on pages 2 to 40 have been prepared
according to the Risk Weighted Capital Adequacy Framework (Basel II), and are accurate and complete.
………………………………………..
MUKHTAR MALIK HUSSAIN
CHIEF EXECUTIVE OFFICER
21 July 2017
R(Tf)ihseCkaAICppiAptaeAltiPstterduecmtuornestrates the extent to which capital management is embedded in the Group. In
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures
The RiskWeighted Capital AdequacyFramework (Basel II) Pillar 3 InterimDisclosures at 30 June 2017 donot include all of
the information required for full (Basel II) Pillar 3 Disclosures, and should be read in conjunction with the audited financial
statements ofHSBCBankMalaysia Berhad (the Bank) and itssubsidiaries (collectivelyknown asthe Group)forthe financial
year ended 31 December 2016 and the Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Disclosures at 31
December 2016.
The tables attached in the Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures provide an
understanding of the quantitative changes relating to Pillar 3 Disclosures of the Group since the financial year ended 31
December 2016. There are no material changes relating to qualitative disclosures during the interim reporting period.
Stress Testing
StresstestingisakeyriskmanagementtoolusedtoassessavarietyofriskstowhichtheGroupisexposed,includingcreditrisk,
market risk, operational risk, etc. Stress testing is integrated into our market risk management tool to evaluate the potential
impactontheentityofmoreextreme,althoughplausible,eventsormovementsinasetoffinancialvariables.Insuchabnormal
scenarios, losses can be much greater than those predicted by Value at Risk (VaR) modelling.
Stress testing and scenario analysis form an integral part of Internal Capital Adequacy Assessment Process (ICAAP) to
demonstrate that the Group can maintain risk capital sufficient enough to sustain operations during an economic downturn.
AkeyobjectiveofstresstestingistomakeriskmoretransparentbyestimatingthepotentiallossesontheGroup’sexposureand
impacts on its capital adequacy ratio, capital requirements and profit and loss under abnormal conditions. It will also assess
specificallytheextent bywhich risk-weightedassetsandcapital requirementswill increase,and howprofit andlossaswell as
liquidity levels will change. It plays a particularly important role in:
• Providing forward-looking assessments of risk.
• Overcoming limitations of models and historical data.
• Supporting internal and external communication.
• Feeding into capital and liquidity planning process.
• Informing the setting of a banks’ risk tolerance.
• Facilitating the development of risk mitigation or contingency plans across a range of stressed conditions.
• Building upon business and strategic planning to the Risk Appetite of the institution.
• Strengthening the Group’s corporate governance and the resilience of the financial system.
• Usingtheexperiencesofthepastheldinlocaloperationsinadditiontothewiderexperiencesthatcanbeobtainedfromthe
diversified operation and management.
Stresstestingisconsideredasthecollectivequantitativeandqualitativetechniquesusedtoassessallfacetstotherisksfacedby
the Group. Stress testing is done in collaboration across all customer groups and functions such as Risks and Finance. The results
of the analysis will facilitate informed financial and capital management whilst supporting business lines to manage their
business through various measures such as establishing triggers and devising mitigation actions which can be readily
implemented should the adverse scenarios materialise.
In line with Bank Negara Malaysia (BNM)'s Guideline on Stress Testing and the Group's Policy Paper for Stress Testing, a
Stress Test Working Group (STWG) has been established.
Stress testingisconductedonentitylevel andonabank-wide basis.Stresstestingwill becarried outsubject toregulatoryand
internal management demands as and when needed. At a minimum, a complete stress testing for the entire Group should be
completed on a semi-annual basis. Stress testing results are reviewed bySTWG, Risk Management Meeting (RMM)and Risk
Committee (RC) or Board of Directors' (BOD) prior to submission to BNM.
Governance
TheSTWGwillactivelymanageanddrivecohesionandconsistencyacrossallstresstestingactivities, includingthe execution
of enterprise wide stress tests and enhancements to stress testing and data capability. Stress test results and the propose
mitigating actions will be recommended by RMM and RC of the Board for approval.
Refer to Note 33 of the unaudited condensed interim financial statements at 30 June 2017 for the total risk weighted capital
ratio, Common EquityTier 1and Tier 1capital ratio, and risk weighted assets and capital requirements for credit risk, market
risk and operational risk.
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
1) RWA and Capital Requirement
Thetablesbelowdisclosethegrossand net exposures, riskweightedassets (RWA)and capitalrequirements forcredit risk,market risk
and operational risk of the Group and the Bank at balance sheet date.
At30June2017,theRWAriskabsorbentforSyndicatedInvestmentAccountforFinancing(SIAF)/InvestmentAgencyAccount(IAA)in
theBankamountedtoRM1,535.6m(31December2016:RM931.5m).BoththeprincipalamountandRWAarethesame.Thisamountis
reported as asset under management in the books of the Bank's Islamic Subsidiary. At the group level, the effect of the RWA risk
absorbent profit sharing investment is eliminated.
30 Jun 2017 Group
(RM'000)
Risk
Gross Capital
Exposure Class Net Exposures Weighted
Exposures Requirement
Assets (RWA)
Credit Risk (Standardised Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks 2 2,077,652 22,077,652 8 8,408 7,073
PSEs 2 ,180,585 2,180,585 2 ,180,585 174,447
Banks, DFIs & MDBs 2 ,484,766 2,289,152 5 15,342 41,228
Corporates 2 0,574,008 19,428,132 1 8,124,398 1,449,952
Regulatory Retail 6 ,141,532 5,991,291 4 ,570,822 365,666
Residential Mortgages 2 0,047,278 20,029,072 7 ,510,434 600,834
Higher Risk Assets 2 1,095 21,095 3 1,643 2,531
Other Assets 9 65,265 965,265 6 16,090 49,288
Equity Exposure 1 76,679 176,679 1 76,679 14,134
Defaulted Exposures 6 42,956 624,221 7 25,035 58,003
Total for On-Balance Sheet Exposures 7 5,311,816 73,783,144 3 4,539,436 2,763,156
Off-Balance Sheet Exposures
OTC Derivatives 5 ,265,929 2,873,057 1 ,425,315 114,025
Off balance sheet exposures other than OTC
derivatives or credit derivatives 1 9,606,415 19,232,016 1 4,721,232 1,177,699
Defaulted Exposures 6 ,942 6,942 9 ,647 772
Total for Off-Balance Sheet Exposures 2 4,879,286 22,112,015 1 6,156,194 1,292,496
Total On and Off-Balance Sheet Exposures [1] 1 00,191,102 95,895,159 5 0,695,630 4,055,652
Market Risk (Standardised Approach) Long Position Short Position
Interest/Profit Rate Risk 18,755,443 1 7,741,990 1,013,453 1,325,858 106,069
Foreign Currency Risk 35,028 (125,070) 131,220 131,220 10,497
Options Risk - - - 47,956 3,836
18,790,471 1 7,616,920 1,144,673 1,505,034 120,402
Operational Risk (Standardised Approach) - - - 5,808,740 464,699
Total RWA and Capital Requirement - - - 5 8,009,404 4,640,753
[1] The variance between Gross Exposures and Net Exposures, represents the 'Total On and Off-Balance Sheet Exposures covered by
Eligible Collateral'. Refer to Note (3) (ii) Credit risk mitigation (CRM) within this disclosure document.
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
1) RWA and Capital Requirement (Cont'd)
31 Dec 2016 Group
(RM'000)
Risk Weighted Capital
Exposure Class Gross Exposures Net Exposures
Assets (RWA) Requirement
Credit Risk (Standardised Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks 2 9,277,255 29,277,255 2 26,331 18,106
PSEs 1 ,299,977 1,299,977 1 ,299,977 103,999
Banks, DFIs & MDBs 2 ,149,204 2,149,204 5 25,091 42,007
Corporates 1 8,884,047 17,812,922 1 6,705,288 1,336,423
Regulatory Retail 6 ,135,979 5,978,373 4 ,543,252 363,460
Residential Mortgages 2 0,182,262 20,163,523 7 ,588,073 607,046
Higher Risk Assets 2 ,944 2,944 4 ,416 353
Other Assets 8 66,774 866,774 5 51,629 44,130
Equity Exposure 1 66,887 166,887 1 66,887 13,351
Defaulted Exposures 8 32,841 812,350 9 23,292 73,864
Total for On-Balance Sheet Exposures 7 9,798,170 78,530,209 3 2,534,236 2,602,739
Off-Balance Sheet Exposures
OTC Derivatives 6 ,127,481 3,514,350 1 ,955,241 156,419
Off balance sheet exposures other than OTC
derivatives or credit derivatives 1 9,220,941 18,814,699 1 4,355,843 1,148,468
Defaulted Exposures 8 ,810 8,810 1 2,238 979
Total for Off-Balance Sheet Exposures 2 5,357,232 22,337,859 1 6,323,322 1,305,866
Total On and Off-Balance Sheet Exposures [1] 1 05,155,402 100,868,068 4 8,857,558 3,908,605
Market Risk (Standardised Approach) Long Position Short Position
Interest/Profit Rate Risk 34,969,774 3 5,645,102 (675,328) 8 98,671 71,894
Foreign Currency Risk 73,193 3 5,594 73,193 7 3,193 5,855
Options Risk - - - 3 2,217 2,577
35,042,967 3 5,680,696 (602,135) 1 ,004,081 80,326
Operational Risk (Standardised Approach) - - - 5 ,793,257 463,461
Total RWA and Capital Requirement - - - 5 5,654,896 4,452,392
Note:
MDBs - Multilateral Development Banks
DFIs - Development Financial Institutions
PSEs - Public Sector Entities
OTC - Over the counter
[1] The variance between Gross Exposures and Net Exposures, represents the 'Total On and Off-Balance Sheet Exposures covered by
Eligible Collateral'. Refer to Note (3) (ii) CRM within this disclosure document.
Refer to Note 34 of the unaudited condensed interim financial statements at 30 June 2017 for disclosure of off-balance sheet.
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
1) RWA and Capital Requirement ( Cont'd)
30 Jun 2017 Bank
(RM'000)
Gross Risk Weighted Capital
Exposure Class Net Exposures
Exposures Assets (RWA) Requirement
Credit Risk (Standardised Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks 18,561,697 1 8,561,697 88,408 7,073
PSEs 1,109,011 1,109,011 1,109,011 88,721
Banks, DFIs & MDBs 5,735,343 5,539,729 1,165,088 93,207
Corporates 15,325,198 1 4,291,525 13,290,621 1,063,250
Regulatory Retail 3,626,230 3,502,761 2,636,672 210,934
Residential Mortgages 15,690,075 1 5,674,899 5,901,153 472,092
Higher Risk Assets 2 1,095 21,095 31,643 2,531
Other Assets 8 28,838 828,838 581,796 46,544
Equity Exposure 1 76,679 176,679 176,679 14,134
Defaulted Exposures 4 82,874 469,799 552,749 44,220
Total for On-Balance Sheet Exposures 61,557,040 6 0,176,033 25,533,820 2,042,706
Off-Balance Sheet Exposures
OTC Derivatives 5,336,342 2,943,470 1,258,974 100,718
Off balance sheet exposures other than OTC
derivatives or credit derivatives 16,154,422 1 5,856,294 12,354,036 988,323
Defaulted Exposures 5 ,385 5,385 7,385 591
Total for Off-Balance Sheet Exposures 21,496,149 1 8,805,149 13,620,395 1,089,632
Total On and Off-Balance Sheet Exposures [1] 83,053,189 7 8,981,182 39,154,215 3,132,338
Market Risk (Standardised Approach) Long Position Short Position
Interest/Profit Rate Risk 18,599,492 17,667,838 931,654 1,315,761 105,261
Foreign Currency Risk 30,023 (126,215) 126,215 126,215 10,097
Options Risk - - - 47,956 3,836
18,629,515 17,541,623 1,057,869 1,489,932 119,194
Operational Risk (Standardised Approach) - - - 5,246,031 419,682
Total RWA and Capital Requirement - - - 45,890,178 3,671,214
[1] ThevariancebetweenGrossExposuresandNetExposures,representsthe'TotalOnandOff-BalanceSheetExposurescoveredbyEligible
Collateral'. Refer to Note (3) (ii) CRM within this disclosure document.
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
1) RWA and Capital Requirement ( Cont'd)
31 Dec 2016 Bank
(RM'000)
Risk Weighted Capital
Exposure Class Gross Exposures Net Exposures
Assets (RWA) Requirement
Credit Risk (Standardised Approach)
On-Balance Sheet Exposures
Sovereigns/Central Banks 25,390,983 2 5,390,983 226,331 18,106
PSEs 9 84,657 984,657 984,657 78,773
Banks, DFIs & MDBs 4,640,949 4,640,949 1,023,393 81,871
Corporates 14,334,289 1 3,379,891 12,496,556 999,724
Regulatory Retail 3,667,359 3,540,556 2,663,606 213,088
Residential Mortgages 15,839,394 1 5,823,529 5,975,314 478,025
Higher Risk Assets 2 ,944 2,944 4,416 353
Other Assets 7 24,879 724,879 516,228 41,298
Equity Exposure 1 66,887 166,887 166,887 13,351
Defaulted Exposures 6 50,350 631,829 729,644 58,372
Total for On-Balance Sheet Exposures 66,402,691 6 5,287,104 24,787,032 1,982,961
Off-Balance Sheet Exposures
OTC Derivatives 6,310,800 3,697,669 1,728,243 138,259
Off balance sheet exposures other than OTC
derivatives or credit derivatives 15,899,528 1 5,591,164 12,172,737 973,819
Defaulted Exposures 7 ,692 7,692 10,585 847
Total for Off-Balance Sheet Exposures 22,218,020 1 9,296,525 13,911,565 1,112,925
Total On and Off-Balance Sheet Exposures [1] 88,620,711 8 4,583,629 38,698,597 3,095,886
Market Risk (Standardised Approach) Long Position Short Position
Interest/Profit Rate Risk 34,925,282 35,128,197 (202,915) 891,702 71,336
Foreign Currency Risk 68,766 3 4,027 68,766 68,766 5,501
Options Risk - - - 32,217 2,577
34,994,048 35,162,224 (134,149) 992,685 79,414
Operational Risk (Standardised Approach) - - - 5,227,510 418,201
Total RWA and Capital Requirement - - - 44,918,792 3,593,501
Note:
MDBs - Multilateral Development Banks
DFIs - Development Financial Institutions
PSEs - Public Sector Entities
OTC - Over the counter
[1] ThevariancebetweenGrossExposuresandNetExposures,representsthe'TotalOnandOff-BalanceSheetExposurescoveredbyEligible
Collateral'. Refer to Note (3) (ii) CRM within this disclosure document.
Refer to Note 34 of the unaudited condensed interim financial statements at 30 June 2017 for disclosure of off-balance sheet.
6
HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
2) Risk Weight Profile and RWA
The tables below are disclosures on risk weights profile and RWA of the Group and the Bank at balance sheet date.
30 Jun 2017 Group
(RM'000)
Exposures after Netting and Credit Risk Mitigation
Total
Exposures Total Risk
WReiigskhts SovCeerneitgrnals & PSEs Ba&n kMs,D DBFsIs Corporates RegRueltaatiolry RMeosirdtgenagtaels HRigishke r OAtshseetrs Equity afCterre Ndiett tRinisgk & WAeisgshettesd
Banks Assets Mitigation
0% 21,642,048 - - 5,647 14,990 - - 342,180 - 22,004,865 -
20% 523,317 162,739 3,369,338 2,350,127 26,976 - - 13,956 - 6,446,453 1,289,291
35% - - - - - 21,051,235 - - - 21,051,235 7,367,933
50% - 329,657 1,328,602 1,617,615 9,542 955,999 - - - 4,241,415 2,120,707
75% - - - 2,901 8,176,038 1,294,848 - - - 9,473,787 7,105,340
100% - 2,946,840 55,300 27,823,769 392,122 412,009 - 608,764 176,679 32,415,483 32,415,483
150% - - 150 118,215 11,265 105,133 26,795 - - 261,558 392,338
1250% - - - - - - - 363 - 363 4,538
Total 95,895,159 50,695,630
Average
Risk Weight 0% 91% 29% 92% 76% 39% 150% 64% 100% 53%
31 Dec 2016 Group
(RM'000)
Exposures after Netting and Credit Risk Mitigation
Total Exposures
Total Risk
WReiigskhts SCoevnetrraeli gBnasn &ks PSEs Ba&n kMs,D DBFsIs Corporates RegRueltaatiolry RMeosirdtgeangtaels HARisgissheket sr AOsthseetrs Equity aftCeMrre iNdtiigett aRttiiniosgnk & WAeisgshettesd
0% 28,146,580 - - 4,608 17,648 - - 314,156 - 28,482,992 -
20% 1,310,300 150,000 3,306,332 1,794,359 21,197 - - 989 - 6,583,177 1,316,636
35% - - - - - 21,155,815 - - - 21,155,815 7,404,535
50% - 228,858 1,731,350 1,596,369 5,967 899,083 - 392 - 4,462,019 2,231,010
75% - - - - 8,031,183 1,572,131 - - - 9,603,314 7,202,486
100% - 2,187,387 54,600 26,511,076 494,590 370,697 - 551,236 166,887 30,336,473 30,336,473
150% - - - 106,474 33,143 101,326 3,335 - - 244,278 366,418
Total 100,868,068 48,857,558
Average
Risk Weight 1% 91% 31% 93% 76% 40% 150% 64% 100% 48%
Note:
MDBs - Multilateral Development Banks
DFIs - Development Financial Institutions
PSEs - Public Sector Entities
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HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
2) Risk Weight Profile and RWA (Cont'd)
30 Jun 2017 Bank
(RM'000)
Exposures after Netting and Credit Risk Mitigation
Total
Exposures Total Risk
WReiigskhts SovCeerneitgrnals & PSEs Ba&n kMs,D DBFsIs Corporates RegRueltaatiolry RMeosirdtgenagtaels HRigishke r OAtshseetrs Equity afCterre Ndiett tRinisgk & WAeisgshettesd
Banks Assets Mitigation
0% 18,126,093 - - 4,917 7,233 - - 240,048 - 18,378,291 -
20% 523,317 12,739 7,086,834 1,856,809 13,466 - - 13,956 - 9,507,121 1,901,424
35% - - - - - 16,595,119 - - - 16,595,119 5,808,292
50% - 329,657 867,439 1,138,695 7,096 738,961 - - - 3,081,848 1,540,924
75% - - - - 5,390,414 1,110,933 - - - 6,501,347 4,876,010
100% - 1,769,117 55,300 21,745,964 74,306 309,390 - 574,470 176,679 24,705,226 24,705,226
150% - - 150 104,626 3,355 76,941 26,795 - - 211,867 317,801
1250% - - - - - - - 363 - 363 4,538
Total 78,981,182 39,154,215
Average
Risk Weight 1% 92% 24% 92% 75% 39% 150% 70% 100% 50%
31 Dec 2016 Bank
(RM'000)
Exposures after Netting and Credit Risk Mitigation
Total Exposures
Total Risk
WReiigskhts SCoevnetrraeli gBnasn &ks PSEs Ba&n kMs,D DBFsIs Corporates RegRueltaatiolry RMeosirdtgeangtaels HARisgissheket sr AOsthseetrs Equity aftCeMrre iNdtiigett aRttiiniosgnk & WAeisgshettesd
0% 24,260,308 - - 1,165 12,747 - - 207,664 - 24,481,884 -
20% 1,310,300 - 6,453,424 1,288,892 8,983 - - 989 - 9,062,588 1,812,518
35% - - - - - 16,746,254 - - - 16,746,254 5,861,189
50% - 228,858 1,219,876 1,301,711 5,391 679,819 - 392 - 3,436,047 1,718,024
75% - - - - 5,288,109 1,337,445 - - - 6,625,554 4,969,166
100% - 1,669,200 48,919 21,128,436 212,762 276,469 - 515,834 166,887 24,018,507 24,018,507
150% - - - 102,584 29,414 77,462 3,335 - - 212,795 319,193
Total 84,583,629 38,698,597
Average
Risk Weight 1% 94% 25% 93% 76% 40% 150% 71% 100% 46%
Note:
MDBs - Multilateral Development Banks
DFIs - Development Financial Institutions
PSEs - Public Sector Entities
8
HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
3) Credit Risk
Table 1: Geographical distribution of loans/financing breakdown by type
30 Jun 2017
Group (RM'000) Northern Southern Central Eastern Total
Overdrafts/Cash line-i 1 37,949 1 00,560 6 24,545 1 26,861 9 89,915
Term loans/financing
Housing loans/financing 3 ,432,343 3 ,020,743 1 1,931,742 1 ,085,178 1 9,470,006
Syndicated term loan/financing - 1 12,009 3 ,515,873 1 1,755 3 ,639,637
Factoring receivables 1 5,073 3 4,475 1 45,277 4 8,713 2 43,538
Hire purchase receivables 4 5,757 6 1,010 6 3,194 1 9,974 1 89,935
Lease receivables - - 2 ,014 - 2 ,014
Other term loans/financing 1 ,173,938 1 ,382,778 6 ,090,016 7 91,870 9 ,438,602
Bills receivables 6 1,223 1 32,130 2 ,396,046 3 4,530 2 ,623,929
Trust receipts 2 92,195 4 62,664 1 ,609,909 6 4,758 2 ,429,526
Claims on customers under acceptance credits 6 38,077 4 88,550 6 85,972 6 8,447 1 ,881,046
Staff loans/financing 1 6,351 8 ,649 9 1,496 5 ,841 1 22,337
Credit/charge cards 5 82,183 4 36,516 1 ,829,224 2 89,031 3 ,136,954
Revolving credit 1 85,261 1 94,140 5 ,703,908 1 19,564 6 ,202,873
Other loans/financing 2 ,310 9 50 5 ,304 9 88 9 ,552
6 ,582,660 6 ,435,174 3 4,694,520 2 ,667,510 5 0,379,864
31 Dec 2016
Group (RM'000) Northern Southern Central Eastern Total
Overdrafts/Cash line-i 1 80,827 1 15,432 8 00,340 1 27,615 1 ,224,214
Term loans/financing
Housing loans/financing 3 ,444,997 3 ,022,819 1 1,917,084 1 ,111,654 1 9,496,554
Syndicated term loan/financing - 1 12,305 2 ,279,342 1 7,510 2 ,409,157
Factoring receivables 1 6,903 6 1,744 8 1,170 6 4,940 2 24,757
Hire purchase receivables 5 0,658 6 2,391 8 0,610 1 5,262 2 08,921
Lease receivables - - 2 ,738 - 2 ,738
Other term loans/financing 1 ,272,647 1 ,491,685 6 ,820,461 9 18,132 1 0,502,925
Bills receivables 1 14,822 8 8,356 8 61,561 3 5,545 1 ,100,284
Trust receipts 2 49,977 7 16,884 1 ,094,491 4 2,834 2 ,104,186
Claims on customers under acceptance credits 549,770 3 87,361 836,473 95,508 1 ,869,112
Staff loans/financing 17,820 8 ,944 101,707 6 ,630 135,101
Credit/charge cards 590,111 4 33,463 1,834,124 297,152 3 ,154,850
Revolving credit 160,289 1 90,154 4,726,297 75,882 5 ,152,622
Other loans/financing 2,617 8 52 4,996 5 53 9,018
6 ,651,438 6,692,390 3 1,441,394 2 ,809,217 4 7,594,439
Concentration by location for loans, advances and financing is based on the location of the borrower.
The Northern region consists of the states of Perlis, Kedah, Penang, Perak, Pahang, Kelantan and Terengganu.
The Southern region consists of the states of Johor, Malacca and Negeri Sembilan.
The Central region consists of the state of Selangor and the Federal Territory of Kuala Lumpur.
The Eastern region consists of the states of Sabah, Sarawak and the Federal Territory of Labuan.
9
HSBC Bank Malaysia Berhad
127776-V
Risk Weighted Capital Adequacy Framework (Basel II) Pillar 3 Interim Disclosures (Cont’d)
3) Credit Risk (Cont'd)
Table 1: Geographical distribution of loans/financing breakdown by type (Cont'd)
30 Jun 2017
Bank (RM'000) Northern Southern Central Eastern Total
Overdrafts 1 28,372 7 9,395 5 69,851 1 25,421 9 03,039
Term loans/financing
Housing loans/financing 2 ,830,287 2 ,430,510 8 ,915,736 9 05,215 1 5,081,748
Syndicated term loan/financing - 1 12,009 1 ,932,499 1 1,755 2 ,056,263
Factoring receivables 1 5,073 3 4,475 1 45,277 4 8,713 2 43,538
Other term loans/financing 7 99,139 8 06,509 3 ,330,875 5 77,127 5 ,513,650
Bills receivables 5 1,385 1 21,088 2 ,297,091 3 4,530 2 ,504,094
Trust receipts 1 78,576 4 37,234 7 65,128 6 2,956 1 ,443,894
Claims on customers under acceptance credits 5 45,628 3 83,125 4 71,646 6 6,041 1 ,466,440
Staff loans/financing 1 5,665 7 ,547 8 7,705 5 ,549 1 16,466
Credit/charge cards 4 22,861 3 04,455 1 ,337,875 2 48,604 2 ,313,795
Revolving credit 1 83,061 1 91,500 4 ,718,305 1 19,564 5 ,212,430
Other loans/financing 1 ,948 7 99 4 ,596 9 41 8 ,284
5 ,171,995 4 ,908,646 2 4,576,584 2 ,206,416 3 6,863,641
31 Dec 2016
Bank (RM'000) Northern Southern Central Eastern Total
Overdrafts 1 70,134 9 0,495 7 39,806 1 25,939 1 ,126,374
Term loans/financing
Housing loans/financing 2 ,833,888 2 ,428,581 8 ,947,712 9 29,739 1 5,139,920
Syndicated term loan/financing - 1 12,305 1 ,629,076 1 7,510 1 ,758,891
Factoring receivables 1 6,903 6 1,744 8 1,170 6 4,940 2 24,757
Other term loans/financing 8 89,890 8 54,138 4 ,194,280 6 97,114 6 ,635,422
Bills receivables 1 08,548 8 2,397 7 64,192 3 4,875 9 90,012
Trust receipts 1 68,004 7 02,826 7 31,816 3 9,305 1 ,641,951
Claims on customers under acceptance credits 446,491 2 86,239 538,517 93,490 1 ,364,737
Staff loans/financing 17,214 7 ,915 97,505 6 ,274 128,908
Credit/charge cards 434,891 3 10,317 1,363,794 258,138 2 ,367,140
Revolving credit 158,089 1 85,322 3,783,168 75,882 4 ,202,461
Other loans/financing 2,146 6 99 4,455 5 31 7,831
5 ,246,198 5,122,978 2 2,875,491 2 ,343,737 3 5,588,404
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