CIMB-Financial Statement 2014 PDF

58
th
Annual General Meeting of CIMB Group Holdings Berhad
Grand Ballroom, Level 3A, Connexion @ Nexus,
No.7, Jalan Kerinchi, Bangsar South City,
59200 Kuala Lumpur,
on Tuesday, 28 April 2015 at 9.30 a.m.
CIMB
&
YOU
CIMB & You captures the relationship that we have with our customers across all walks
of life to support you in building a better future. We go the extra mile to delight our
customers. It embodies the relationship between our bank and its employees,
anchored in a harmonious and nurturing environment in which we work
together in mutual respect.
CIMB & You is the shared experience that says, Together we are better.
Our cover is a celebration of the CIMB family.

table of
CONTENTS
Five Year Group Financial Highlights ........... 001 FINANCIAL STATEMENTS
Simplified Group Statement of Directors Responsibilities ........... 012
Statements of Financial Position ........... 002 Directors Report ........... 013
Key Interest Bearing Assets and Liabilities ........... 003 Statement by Directors ........... 021
Value Added Statements ........... 004 Statutory Declaration ........... 021
Quarterly Financial Performance ........... 005 Board Shariah Committees Report ........... 022
Analysis of Financial Statements ........... 006 Independent Auditors Report to
Capital Management ........... 009 the members ........... 024
Financial Calendar 2014 ........... 010 Consolidated Statements of
Financial Position ........... 026
Consolidated Statements of Income ........... 028
Consolidated Statements of
Comprehensive Income ........... 029
Company Statements of Financial Position ........... 030
Company Statements of Income ........... 031
Company Statements of
Comprehensive Income ........... 031
Consolidated Statements of
Changes in Equity ........... 032
Company Statements of Changes in Equity ........... 034
Consolidated Statements of Cash Flows ........... 035
Company Statements of Cash Flows ........... 038
Summary of Significant Group
Accounting Policies ........... 039
Notes to the Financial Statements ........... 059
Basel Ii Pillar 3 Disclosures ........... 310
CIMB & YOU
FIVE YEAR GROUP FINANCIAL HIGHLIGHTS
Financial Year Ended 31 December

MFRS Framework FRS Framework
2014 2013 2012* 2011** 2010**
Key Highlights RM000 RM000 RM000 RM000 RM000
Consolidated Statement of Income
Operating income 14,145,924 14,671,835 13,494,825 12,122,029 11,878,203
Overheads 8,291,963 8,457,870 7,612,099 6,629,912 6,613,304
Prot before allowances 5,853,961 6,213,965 5,882,726 5,492,117 5,264,899
Allowance for impairment losses on loans, advances and
nancing 1,522,068 660,607 329,098 487,343 607,176
Prot before taxation 4,276,423 5,849,229 5,677,893^ 5,203,142 4,626,717
Net prot for the nancial year 3,106,808 4,540,403 4,344,776 4,030,798 3,500,803
Consolidated Statement of Financial Position
Gross loans, advances and nancing 264,644,089 234,557,542 208,343,039 191,393,201 167,479,371
Total assets 414,156,356 370,912,797 336,461,160 299,737,840 269,018,947
Deposits from customers^^ 284,714,019 265,408,979 247,295,039 221,933,142 199,845,664
Total liabilities 375,765,233 339,684,237 307,194,841 272,874,680 244,715,748
Shareholders funds 37,360,436 30,271,098 28,292,994 25,936,470 23,229,966
Commitments and contingencies 702,740,799 526,572,598 460,550,153 414,197,407 349,069,257
Financial Ratios (%)
Common equity tier 1 ratio (CIMB Bank)# 11.2 9.6 n/a n/a n/a
Tier 1 ratio (CIMB Bank)# 12.6 11.6 n/a n/a n/a
Total capital ratio (CIMB Bank)# 14.7 12.9 n/a n/a n/a
Core capital ratio (CIMB Bank)# n/a n/a 12.4 14.5 13.9
Risk-weighted capital ratio (CIMB Bank)# n/a n/a 15.5 16.8 14.8
Return on average equity 9.2 15.5 16.0 16.4 16.2
Return on average total assets 0.79 1.28 1.37 1.42 1.38
Net interest margin 2.80 2.85 3.07 3.12 3.34
Cost to income ratio 58.6 57.6 56.4 54.7 55.7
Gross impaired to gross loans 3.1 3.2 3.8 5.1 6.1
Allowance coverage ratio 82.7 84.8 82.8 81.1 81.1
Loan loss charge 0.58 0.28 0.16 0.25 0.36
Loan deposit ratio 93.0 88.4 84.2 86.2 83.8
Net tangible assets per share (RM) 3.28 2.67 2.47 2.15 1.81
Book value per share (RM) 4.44 3.92 3.81 3.49 3.13
CASA ratio 34.7 34.3 34.7 34.2 32.7
Other Information
Earnings per share (sen)
basic 37.5 60.0 58.5 54.2 48.7
Gross dividend per share (sen) 15.00 23.15^^^ 23.38 22.00 26.08
Dividend payout ratio (%) 40 40 40 41 55
Number of shares in issue (000) 8,423,751 7,729,346 7,432,775 7,432,775 7,432,775
Weighted average number of shares in issue (000) 8,288,256 7,570,924 7,432,772 7,432,772 7,186,034
Non Financial Highlights
Share price at year-end (RM) 5.56 7.62 7.63 7.44 8.50
Number of employees 41,669 40,804 41,993 40,244 36,984
* The comparatives have been restated to reect the adoption of MFRS10, MFRS 11 and MFRS 119
** The comparatives are before adoption of MFRS 1
^ Prot before taxation is inclusive of discontinuing operations
^^ Include structured investments classied as Financial liabilities designated as fair value
^^^ Based on the enlarged 8,229,341,531 ordinary shares, arising from the issuance of 500 million new ordinary shares pursuant to the private placement exercise completed in January 2014
# The capital ratio has not taken into account the effect of reinvestment of excess cash into CIMB Bank, pursuant to DRS implementation by CIMBGH on the proposed second interim dividend for
nancial years 2012 to 2014
For nancial years 2013 and 2014, the capital ratios are based on revised guideline on capital adequacy framework issued by BNM on 28 November 2012, which took effect beginning 1 January
2013. The revised guideline is in compliance with BASEL III. The comparative capital adequacy ratios were based on capital adequacy framework which was in compliance with Basel II
001
ANNUAL REPORT 2014
CIMB GROUP HOLDINGS BERHAD
FINANCIAL STATEMENTS
SIMPLIFIED GROUP STATEMENTS OF

FINANCIAL POSITION
Assets
2014 2013
10.2% 12.3% Cash and balances

with banks and reverse
repurchase agreements
18.0% 17.4% Portfolio of nancial

investments
62.3% 61.6% Loans, advances and

nancing
1.7% 1.7% Statutory deposits

with central banks
7.8% 7.0% Other assets

(including intangible
2014 2013
assets)
Liabilities & Equity
2014 2013
68.1% 70.9% Deposits from
customers
7.8% 5.6% Deposits from banks
7.7% 7.7% Bills and acceptances

payable and other
liabilities
7.1% 7.3% Debt securities issued

and other borrowed
funds
2.0% 2.1% Share capital
2014 2013 7.0% 6.1% Reserves
0.1% 0.1% Preference shares
0.2% 0.2% Non-controlling

interests
002
CIMB & YOU
KEY INTEREST BEARING

ASSETS AND LIABILITIES
FY14
Interest
Effective income/
As at 31 Dec interest rate expense
RM million % RM million
Interest earning assets:
Cash and short-term funds & deposits and placements with banks and other nancial institutions 37,702 1.89 734
Financial assets held for trading 23,804 2.78 704
Financial investments available-for-sale 32,287 4.02 1,231
Financial investments held-to-maturity 18,262 4.58 679
Loans, advances and nancing 258,015 6.39 15,037
Interest bearing liabilities:
Deposits from customers and nancial liabilities designated at fair value 285,759 2.55 6,934
Deposits and placements of banks and other nancial institutions 32,150 1.27 318
Bonds, debentures and other borrowings 16,957 3.67 567
Subordinated obligations 12,582 5.26 652
FY13
Interest
Effective income/
As at 31 Dec interest rate expense
RM million % RM million
Interest earning assets:
Cash and short-term funds & deposits and placements with banks and other nancial institutions 37,468 2.08 875
Financial assets held for trading 23,403 2.58 635
Financial investments available-for-sale 30,334 3.92 1,203
Financial investments held-to-maturity 10,821 4.32 388
Loans, advances and nancing 228,432 6.42 13,721
Interest bearing liabilities:
Deposits from customers and nancial liabilities designated at fair value 265,136 2.30 6,127
Deposits and placements of banks and other nancial institutions 20,728 1.77 251
Bonds, debentures and other borrowings 15,263 3.79 507
Subordinated obligations 12,067 4.98 625
003
ANNUAL REPORT 2014
VALUE ADDED STATEMENTS
2014 2013
RM000 RM000
Value added
Net interest income 8,655,548 7,954,146
Income from Islamic banking operations 1,461,278 1,592,863
Net non-interest income 4,029,098 5,124,826
Overheads excluding personnel costs and depreciation (3,360,284) (3,238,946)
Allowance for impairment losses on loans, advances
and nancing (1,522,068) (660,607)
Other allowances made (178,823) (65,567)
Share of results of joint ventures (1,942) 55,170
2014 Share of results of associates 125,295 306,268

Value added available for distribution 9,208,102 11,068,153
Distribution of Value Added

To employees:
Personnel costs 4,609,571 4,875,564
To the Government:
Taxation 1,101,866 1,240,407
To providers of capital:
Cash dividends paid to shareholders 390,327 405,999
Non-controlling interests 67,749 68,419
To reinvest to the Group:
2013
Dividend reinvestment plan 1,293,416 1,936,496
Depreciation 322,108 343,360
Retained earnings 1,423,065 2,197,908
Value added available for distribution 9,208,102 11,068,153
2014 2013
50.0% 44.0% To Employees:
Personnel costs
12.0% 11.2% To the Government:

Taxation
5.0% 4.3% To Providers of Capital:

Dividends paid to shareholders
Non-controlling interests
33.0% 40.5% To Reinvest to the Group:

Dividend reinvestment plan
Depreciation
Retained earnings
004
CIMB & YOU
QUARTERLY FINANCIAL PERFORMANCE
2014
RM000 Q1 Q2 Q3 Q4
Operating revenue 3,538,053 3,407,174 3,528,596 3,672,101
Net interest income 2,066,765 2,175,463 2,171,051 2,242,269
Net non-interest income and income from Islamic banking operations 1,471,288 1,231,711 1,357,545 1,429,832
Overheads (2,010,943) (2,007,882) (2,033,896) (2,239,242)
Prot before taxation 1,431,069 1,281,153 1,179,263 384,938
Net prot attributable to equity holders of the Company 1,066,282 949,938 890,270 200,318
Earning per share (sen) 13.15 11.36 10.68 2.38
Dividend per share (sen) 10.00 5.00
2013
RM000 Q1 Q2 Q3 Q4
Operating revenue 3,945,320 3,444,227 3,485,070 3,797,218
Net interest income 1,896,624 1,975,551 2,033,643 2,048,328
Net non-interest income and income from Islamic banking operations 2,048,696 1,468,676 1,451,427 1,748,890
Overheads (2,219,589) (2,042,431) (2,059,290) (2,136,560)
Prot before taxation 1,718,494 1,386,423 1,386,257 1,358,055
Net prot attributable to equity holders of the Company 1,386,178 1,054,267 1,061,691 1,038,267
Earning per share (sen) 18.65 13.98 13.94 13.50
Dividend per share (sen) 12.82 10.33
005
ANNUAL REPORT 2014
ANALYSIS OF FINANCIAL STATEMENTS

ANALYSIS OF STATEMENTS OF INCOME
2014 2013 YOY

RM million RM million
Net interest income ^ 9,962 9,391 6.1%

Net non-interest income ^ 4,184 5,281 (20.8%)
Operating income 14,146 14,672 (3.6%)

Overheads (8,292) (8,458) (2.0%)
PPOP 5,854 6,214 (5.8%)

Allowance for impairment losses on loans, advances and nancing (1,522) (660) 130.6%
Other allowances made (179) (66) 171.2%
Share of results of joint ventures/associates 123 361 (65.9%)
PBT 4,276 5,849 (26.9%)
Net prot 3,107 4,540 (31.6%)
EPS (sen) 37.5 60.0 (37.5%)
^ inclusive of income from Islamic banking operations
A) Net interest income

The Groups net interest income (NII) expanded by 6.1% Y-o-Y to RM10.0 billion in FY14 from RM9.4 billion in FY13. This improvement was attributed to
the 13.2% growth in gross loans which was partially offset by a 4bps decline in NIMs. While all operating jurisdictions posted positive loans growth, with
the highest growth coming in from Singapore at 14.5%. From a regional perspective, loans growth was the strongest in the commercial banking segment
loans which grew 17.6%.
B) Net non-interest income

The RM1.097 billion decrease (-20.8% Y-o-Y) in total net non-interest income in 2014 was due to a combination weaker capital markets, which affected
treasury ows, advisory businesses and equity-related revenues, and lower bancassurance fees in Indonesia following implementation of new regulations
during the year. Total non-interest income for the year included gains from the sale of a building in Indonesia and sale of CIMB Insurance Brokers in 2014.
C) Overheads
The Groups total overhead expenses declined 2.0% Y-o-Y to RM8.292 billion, from RM8.458 billion in FY13. The decline was attributed to the additional
personnel restructuring charges incurred in the previous year. Excluding this exceptional expense, overhead expenses would have risen by 0.6% Y-o-Y.
The BAU personnel costs (excluding the restructuring charges in FY13) declined by 1.1% due to better cost controls. Similarly, the other segments
beneted from increased cost awareness with establishment (+5.0%), marketing (-5.5%) and admin & general (+2.2%). The Groups cost to income ratio
rose to 58.6% compared to 57.6% in FY13 on the back of lower income.
D) Allowance for impairment losses

Total net impairment allowances for losses on loans, advances and nancing of RM1.701 billion in FY14 was a 134.3% increase from the RM726 million in
FY13. The increase was due to a sharp increase in corporate loan provisions in Indonesia and Malaysia, goodwill impairment of the Groups Investment
Banking operations as well as lower loan recoveries from the bad bank during the year. As a consequence, the Groups total credit charge stood at 0.58%
with a gross impairment ratio of 3.1% in FY14.
E) Net prot
For the 12-months period in 2014, the Group posted a net prot of RM3.107 billion, representing a 31.6% Y-o-Y decline. The lower net prot was attributed
to the 3.6% contraction in operating income and the sharp increase in provisions and impairments, partially offset by lower overheads. As a result, the
Groups net EPS came in at 37.5 sen compared to 60.0 sen in FY13.
006
CIMB & YOU
SIGNIFICANT MOVEMENT IN STATEMENTS OF FINANCIAL POSITION
2014 2013 Growth

RM million RM million
Assets
Cash and short-term funds 33,463 33,679 (0.6%)
Deposits and placements with banks and other nancial institutions 4,239 3,789 11.9%
Financial investments portfolio 74,352 64,559 15.2%
Loans, advances and nancing 258,015 228,432 13.0%
Other assets (including intangible assets) 44,087 40,454 9.0%
Total assets 414,156 370,913 11.7%
Liabilities
Deposits from customers 282,069 263,004 7.2%
Deposits and placements of banks and other nancial institutions 32,150 20,728 55.1%
Bonds and debentures 7,666 7,490 2.3%
Other borrowings 9,291 7,773 19.5%
Subordinated obligations 12,582 12,067 4.3%
Other liabilities 32,007 28,622 11.8%
Total liabilities 375,765 339,684 10.6%
007
ANNUAL REPORT 2014
SIGNIFICANT MOVEMENT IN STATEMENTS OF FINANCIAL POSITION (CONTINUED)
A) Total assets
CIMB Groups total assets increased by RM43.2 billion or 11.7% higher at RM414.2 billion as at 31 December 2014. The increase was attributed to a
13.0% growth or RM29.6 billion in loans, advances and nancing as well as a 15.2% or RM9.8 billion expansion in nancial investments portfolio. This was
partially offset by a 10.7% growth in cash and short term deposits.
B) Total loans, advances and nancing

The Groups loans, advances and nancing stood at RM258.0 billion as at end 31 December 2014, representing a 13.0% Y-o-Y growth. This was
supported by a 7.1% expansion in Malaysian loans and 12.4% growth in loans originated from Indonesia. Loans from Singapore and Thailand expanded
by 14.5% and 11.0% respectively. The Group's gross impaired loans ratio improved to 3.1% as at end-2014 compared to 3.2% as at a year previously.
Retail loans increased 14.1% while commercial banking and corporate loans grew 17.6% and 9.5% respectively.
C) Financial investments portfolio

The Financial Investments Portfolio which grew by RM9.8 billion or 15.2% mainly consists of nancial assets held for trading, nancial investments
available-for-sale and nancial investments held-to-maturity. The main increases arose from an increase in our holdings in money market instruments and
private debt securities.
D) Total liabilities
The Groups total liabilities were 10.6% higher at RM375.8 billion, representing a RM36.1 billion expansion with the increase mainly due to higher deposits
from customers and deposits and placements of banks and other nancial institutions.
E) Total deposits from customers

Total Group deposits grew by 7.2% Y-o-Y driven by a 7.6% expansion in retail deposits and a 15.3% growth in commercial banking deposits. Wholesale
deposits were 3.4% higher Y-o-Y. Geographically, deposit growth was strongest in Singapore at 36.5%, while Thailand deposits expanded at 20.9%.
Indonesia and Malaysia deposits grew 6.7% and 2.7% respectively Y-o-Y. The Groups CASA ratio increased to 34.7% from 34.3% last year while overall
net interest margin was marginally lower at 2.81% from 2.85% in FY13.
F) Deposits and placements of banks and other nancial institutions

The increase of RM11.4 billion or 55.1% Y-o-Y in deposits and placements of banks and other nancial institutions is part of the normal business of the
Group in accessing the money market and interbank market.
008
CIMB & YOU
CAPITAL MANAGEMENT
OVERVIEW
Capital management at CIMB Group (Group) remains focused on maintaining To sustain adequate levels of capital that is allocated efciently across the
a healthy capital position through building an efcient capital structure. The business units and subsidiaries to (1) support the organic growth of the
capital position and structure of the Group are designed to meet the Groups business units and subsidiaries; (2) take advantage of opportunities
requirements of the Groups shareholders, customers, regulators and external of strategic acquisitions and new businesses; and (3) optimise the return
rating agencies. Guided by CIMB Groups Capital Management Framework, on capital for the Group.
the objectives of capital management are as follows:
To maintain capital at optimal levels to meet requirements of other
To maintain a strong capital base for the Group and its entities to (1) meet stakeholders of the Group, including rating agencies and customers.
regulatory capital requirements at all times; (2) realise returns to
shareholders through sustainable return on equity and stable dividend
payout; and (3) be able to withstand stressed economic and market
conditions.
The Groups regulated banking entities have always maintained a set of internal capital targets which provide a strong buffer above the minimum regulatory
requirements. The table below shows the relevant capital ratios of each of the regulated banking entities of the Group in comparison to the minimum level
required by the respective central banks under the Basel III framework.
Common Equity Tier 1 Tier 1 Total Capital

As at Minimum As at Minimum As at Minimum
Capital Ratios 31 December Regulatory 31 December Regulatory 31 December Regulatory
(After Proposed Dividend) 2014 Ratio 2014 Ratio 2014 Ratio
CIMB Bank 11.19% 4.00% 12.64% 5.50% 14.66% 8.00%
CIMB Islamic 11.45% 4.00% 12.34% 5.50% 15.49% 8.00%
CIMB Investment Bank 29.45% 4.00% 29.45% 5.50% 29.45% 8.00%
CIMB Niaga * N/A N/A 13.33% 6.00% 15.58% 8.00%
CIMB Thai (consolidated) 10.10% 4.50% 10.10% 6.00% 15.17% 8.50%
* CIMB Niagas capital ratios are computed based on Basel II as per Bank Indonesias requirements.
KEY INITIATIVES
Our goal is to continuously build capital towards full implementation of Basel (iii) CIMB Thais THB2.5 billion Basel II subordinated debt was called in
III requirements, whilst optimising the use of capital. Tools that are employed March 2014 and replaced with Basel III subordinated debt of RM400
to achieve this include (1) active liability management to address debt that million (THB4 billion) in July 2014 under the RM2 billion Tier 2 Subordinated
requires replacement with the enforced Basel III guidelines; (2) issuance of Debt Programme, marking one of the many cross-border collaborative
Basel III instruments; (3) dividend reinvestment scheme; (4) risk-weighted efforts in capital management across the Group.
assets (RWA) optimisation; and (5) analysis of Group-wide impact of stress
scenarios with different levels of severity. The Group achieved signicant savings in credit and market risk-weighted
assets (RWA) through optimisation initiatives during the year largely through
Key capital management initiatives that were undertaken during the nancial internal model recalibration and system enhancements. In 2014, the Group
year include: made further advancements in implementing the Internal Ratings Based
Approach by product to account for its RWA, which better reects the risk
(i) New equity capital of RM3.55 billion was raised in January 2014, further
prole of the Group.
strengthening the Groups capital position.
(ii) The Dividend Reinvestment Scheme (DRS) was continued in 2014 with a
reinvestment rate averaging 76.8%, reecting investor condence in the
Group and generating an additional RM1.3 billion of capital.
009
ANNUAL REPORT 2014
23 January 25 February
THURSDAY TUESDAY
Additional listing of 500,000,000 Announcement of the unaudited
new ordinary shares of RM1.00 consolidated nancial results for
each, via private placement the fourth quarter and nancial
year ended 31 December 2013
ALENDA
20
Financial
010
CIMB & YOU
14 March 21 March 26 March 28 March

FRIDAY FRIDAY WEDNESDAY FRIDAY
Notice of book closure Notice of 57th Annual Date of entitlement for Notice of election in
for single tier second General Meeting and the single tier second relation to the Dividend
interim dividend of 10.33 issuance of Annual interim dividend of 10.33 Reinvestment Scheme.
sen per share for the Report for the nancial sen per share for the Scheme provides the
shareholders with the
nancial year ended year ended nancial year ended
14
option to elect to
31December 2013 31December 2013 31December 2013
reinvest their cash
dividend in new ordinary
shares of RM1.00 each
15 April 23 April 24 April 22 May

TUESDAY WEDNESDAY THURSDAY THURSDAY
57th Annual General Payment of the single Additional listing of Announcement of the
Meeting tier second interim 107,176,094 new unaudited consolidated
dividend of 10.33 sen ordinary shares of nancial results for the
per share for the RM1.00 each, via the rst quarter ended
nancial year ended Dividend Reinvestment 31March 2014
31December 2013 Scheme
R
29 August 23 September 30 September
FRIDAY TUESDAY TUESDAY
Announcement of the Notice of book closure Date of entitlement for
unaudited consolidated for the single tier rst the single tier rst interim
nancial results for the interim dividend of 10.00 dividend of 10.00 sen
second quarter and half sen per share for the per share for the
year ended 30 June nancial year ended nancial year ended
2014 31December 2014 31December 2014
29 October 30 October 18 November

WEDNESDAY THURSDAY TUESDAY
Payment of the single Additional listing of Announcement of the
tier rst interim dividend 87,228,960 new unaudited consolidated
of 10.00 sen per share ordinary shares of nancial results for the
for the nancial year RM1.00 each, via the third quarter ended
ended 31December Dividend Reinvestment 30September 2014
2014 Scheme
011
ANNUAL REPORT 2014
STATEMENT OF DIRECTORS RESPONSIBILITIES

In Relation to Financial Statements
Pursuant to paragraph 15.26 (a) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, and as required by Companies Act, 1965 (the
Act), the Directors are responsible to ensure that the nancial statements prepared for each nancial year, give a true and fair view of the state of affairs of the
Group and the Company as at the end of the nancial year and of the results and cashows for the year then ended. As required by the Act and the Main Market
Listing Requirements of Bursa Malaysia Securities Berhad, the nancial statements have been prepared in accordance with the applicable approved accounting
standards in Malaysia and the provisions of the Act.
The Directors consider that, in preparing the nancial statements for the nancial year ended 31 December 2014, the Group and the Company have used
appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates, and ensured that all applicable
approved accounting standards have been followed and conrm that the nancial statements have been prepared on a going concern basis.
The Directors are responsible for ensuring the Group and the Company maintains adequate accounting records which disclose with reasonable accuracy the
nancial position of the Group and the Company to enable them to ensure that the nancial statements comply with the requirements of the Act.
The Directors have a general duty to take such steps as are reasonably available to them to safeguard the assets of the Group and the Company to prevent and
detect fraud and other irregularities.
012
CIMB & YOU
DIRECTORS REPORT for the nancial year ended 31 December 2014
The Directors have pleasure in submitting their Report and the Audited Financial Statements of the Group and the Company for the nancial year ended
31December 2014.
PRINCIPAL ACTIVITIES
The principal activity of the Company during the nancial year is investment holding. The principal activities of the signicant subsidiaries as set out in Note 12
to the Financial Statements, consist of commercial banking, investment banking, Islamic banking, offshore banking, debt factoring, trustee and nominee
services, property ownership and management, management of unit trust funds and fund management business, stock and sharebroking and the provision of
other related nancial services. There was no signicant change in the nature of these activities during the nancial year.
FINANCIAL RESULTS
The The
Group Company
RM000 RM000
Net profit after taxation attributable to:

Owners of the Parent 3,106,808 1,619,544
Non-controlling interests 67,749
3,174,557 1,619,544
DIVIDENDS
The dividends on ordinary shares paid or declared by the Company since 31 December 2013 were as follows:
RM000
In respect of the nancial year ended 31 December 2013:

Dividend on 8,229,341,531 ordinary shares, paid on 23 April 2014
single tier second interim dividend of 10.33 sen per ordinary share, consists of cash portion of 1.80 sen per ordinary shares
and an electable portion of 8.53 sen per ordinary shares which was reinvested in new ordinary shares 850,091
In respect of the nancial year ended 31 December 2014:

Dividend on 8,336,517,525 ordinary shares, paid on 29 October 2014
single tier rst interim dividend of 10.00 sen per ordinary shares, consists of cash portion of 2.91 sen per ordinary shares
and an electable portion of 8.53 sen per ordinary shares which was reinvested in new ordinary shares 833,652
The Directors have proposed a single tier second interim dividend of 5.00 sen per ordinary share under the Dividend Reinvestment Scheme (DRS) as disclosed
in Note 28(b), on 8,423,746,385 ordinary shares amounting to RM421 million in respect of the nancial year ended 31 December 2014. The single tier second
interim dividend was approved by the Board of Directors on 30 January 2015.
The Financial Statements for the current nancial year do not reect this proposed dividend. Such dividend will be accounted for in equity as an appropriation
of retained earnings in the next nancial year.
The Directors do not recommend the payment of any nal dividend for the nancial year ended 31 December 2014.
013
ANNUAL REPORT 2014
RESERVES, PROVISIONS AND ALLOWANCES
There were no material transfers to or from reserves or provisions or allowances during the nancial year other than those disclosed in the Financial Statements
and Notes to the Financial Statements.
ISSUANCE OF SHARES
During the nancial year, the Company increased its issued and paid-up capital by RM694,405,054 via:
(a) Issuance of 500 million new ordinary shares of RM1.00 each arising from private placement pursuant to the shareholders mandate under Section 132D
of the Companies Act, 1965 obtained at the Companys Annual General Meeting on 17 April 2013. The private placement was completed on 23 January
2014;
(b) Issuance of 107,176,094 new ordinary shares of RM1.00 each arising from the DRS relating to electable portion of the second interim dividend of 10.33
sen in respect of nancial year ended 31 December 2013, as disclosed in Note 41(a) to the Financial Statements;
(c) Issuance of 87,228,960 new ordinary shares of RM1.00 each arising from the DRS relating to electable portion of the rst interim dividend of 10.00 sen in
respect of nancial year ended 31 December 2014, as disclosed in Note 41(b) to the Financial Statements.
SHARE BUY-BACK AND CANCELLATION
The shareholders of the Company, had via an ordinary resolution passed at the Annual General Meeting held on 15 April 2014, approved the Companys plan
and mandate to authorise the Directors of the Company to buy back up to 10% of its existing paid-up share capital. The Directors of the Company are
committed to enhance the value of the Company to its shareholders and believe that the share buyback can be applied in the best interest of the Company and
its shareholders.
During the nancial year, the Company bought back 200 shares, as stated in Note 31(b) to the Financial Statements, at an average price (including transaction
costs) of RM7.16 per share from the open market using internally generated funds. As at 31 December 2014, there were 4,608 ordinary shares held as treasury
shares. Accordingly, the adjusted issued and paid-up share capital of the Company with voting rights as at 31 December 2014 was 8,423,746,385 shares.
The shares purchased are held as treasury shares in accordance with the provisions of Section 67A of the Companies Act, 1965.
SHARE-BASED EMPLOYEE BENEFIT PLAN
The Groups employee benet schemes are explained in Note 43 to the Financial Statements.
BAD AND DOUBTFUL DEBTS, AND FINANCING
Before the Financial Statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that proper action had been
taken in relation to the writing off of bad debts and nancing and the making of allowance for doubtful debts and nancing, and satised themselves that all
known bad debts and nancing had been written off and that adequate allowance had been made for doubtful debts and nancing.
At the date of this Report, the Directors are not aware of any circumstances which would render the amounts written off for bad debts and nancing, or the
amount of the allowance for doubtful debts and nancing in the Financial Statements of the Group and of the Company, inadequate to any substantial extent.
CURRENT ASSETS
Before the Financial Statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that any current assets,
other than debts and nancing, which were unlikely to realise in the ordinary course of business, their values as shown in the accounting records of the Group
and of the Company had been written down to an amount which they might be expected so to realise.
At the date of this Report, the Directors are not aware of any circumstances which would render the values attributed to current assets in the Financial
Statements of the Group and of the Company misleading.
014
CIMB & YOU
VALUATION METHODS
At the date of this Report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing method of valuation of
assets or liabilities of the Group and of the Company misleading or inappropriate.
CONTINGENT AND OTHER LIABILITIES
At the date of this Report, there does not exist:
(a) any charge on the assets of the Group or the Company which has arisen since the end of the nancial year which secures the liability of any other person;
or
(b) any contingent liability of the Group or the Company which has arisen since the end of the nancial year other than in the ordinary course of business.
No contingent or other liability in the Group or the Company has become enforceable or is likely to become enforceable within the period of twelve months after
the end of the nancial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and the Company to meet their
obligations when they fall due.
CHANGE OF CIRCUMSTANCES
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
of the Company, that would render any amount stated in the Financial Statements misleading.
ITEMS OF AN UNUSUAL NATURE
In the opinion of the Directors:
(a) the results of the Groups and the Companys operations for the nancial year have not been substantially affected by any item, transaction or event of a
material and unusual nature other than those disclosed in Note 48 to the Financial Statements; and
(b) there has not arisen in the interval between the end of the nancial year and the date of this Report any item, transaction or event of a material and unusual
nature likely to affect substantially the results of the operations of the Group or the Company for the nancial year in which this Report is made other than
those disclosed in Note 49 to Financial Statements.
DIRECTORS
The Directors of the Company who have held ofce since the date of the last report and at the date of this report are as follows:
Dato Sri Mohamed Nazir bin Abdul Razak (redesignated on 1 September 2014)
Tengku Dato Zafrul bin Tengku Abdul Aziz (appointed on 27 February 2015)
Dato Zainal Abidin bin Putih
Glenn Muhammad Surya Yusuf
Watanan Petersik
Kenji Kobayashi (appointed on 16 April 2014)
Robert Neil Coombe (appointed on 16 April 2014)
Joseph Dominic Silva (appointed on 30 June 2014)
Teoh Su Yin (appointed on 8 October 2014)
Dato Robert Cheim Dau Meng (resigned on 27 February 2015)
Tan Sri Dato Md Nor bin Md Yusof (resigned on 31 August 2014)
Datuk Dr. Syed Muhamad bin Syed Abdul Kadir (retired on 30 June 2014)
Dato Hamzah bin Bakar (retired on 15 April 2014)
015
ANNUAL REPORT 2014
DIRECTORS (CONTINUED)
In accordance with Article 76 of the Articles of Association, Dato Zainal Abidin bin Putih will retire from the Board at the forthcoming Annual General Meeting
(AGM) and being eligible, offer himself for re-election:
In accordance with Article 83 of the Articles of Association, the following Directors retire from the Board at the forthcoming Annual General Meeting (AGM) and
being eligible, offer themselves for re-election:
Tengku Dato Zafrul bin Tengku Abdul Aziz

Mr. Kenji Kobayashi
Mr. Robert Neil Coombe
Mr. Joseph Dominic Silva
Ms.Teoh Su Yin
DIRECTORS INTERESTS IN SHARES, SHARE OPTIONS AND DEBENTURES
According to the Register of Directors Shareholdings, the benecial interests of Directors who held ofce at the end of the nancial year in the shares, share
options and debentures of the Company and its related corporations during the nancial year are as follows:
No. of ordinary shares of RM1 each

As at
1 January/
Date of Acquired/ As at
appointment Granted Disposed 31 December
CIMB Group Holdings Berhad

Direct interest
* Dato Sri Mohamed Nazir bin Abdul Razak 52,175,981 883,513(a) (318,470) 52,741,024
^ Dato Zainal Abidin bin Putih 111,857 3,288(b) 115,145
# Dato Robert Cheim Dau Meng 226,021 50,786(a) (31,169) 245,638
** Teoh Su Yin 106,154 1,565(b) 107,719
Note: Includes shareholding of spouse/child, details of which are as follows:
No. of ordinary shares of RM1 each

As at
1 January/
Date of Acquired/ As at
appointment Granted Disposed 31 December
* Dato Azlina binti Abdul Aziz 4,000,000 123,010(b) 4,123,010

^ Datin Jasmine binti Abdullah Heng 20,371 626(b) 20,997
^ Mohamad Ari Zulkarnain bin Zainal Abidin 10,000 157(b) 10,157
# Cheim Tat Seng 76,379 27,513(b) (18,894) 84,998
** Stephen John Watson Hagger 106,154 1,565(b) 107,719
(a) Shares granted under Equity Ownership Plan (EOP) and acquired by way of the exercise of Dividend Reinvestment Scheme (DRS).
(b) Shares acquired by way of the exercise of DRS.
016
CIMB & YOU
DIRECTORS INTERESTS IN SHARES, SHARE OPTIONS AND DEBENTURES (CONTINUED)
According to the Register of Directors Shareholdings, the benecial interests of Directors who held ofce at the end of the nancial year in the shares, share
options and debentures of the Company and its related corporations during the nancial year are as follows (Continued):
Debentures held
As at As at
1 January Acquired Disposed 31 December
CIMB Group Holdings Berhad

Subordinated Fixed Rate Notes
Dato Robert Cheim Dau Meng RM1,000,000 RM1,000,000
PT Bank CIMB Niaga Tbk

Subordinated Notes
Dato Sri Mohamed Nazir bin Abdul Razak IDR4,500,000,000 IDR4,500,000,000
Dato Robert Cheim Dau Meng IDR1,000,000,000 IDR1,000,000,000
CIMB Thai Bank Public Company Limited Group

Subordinated Notes
Dato Robert Cheim Dau Meng RM1,000,000 RM1,000,000
Other than as disclosed above, according to the Register of Directors Shareholdings, the Directors in ofce at the end of the nancial year did not hold any
interest in shares, options over shares and debentures in the Company, or shares, options over shares and debentures of its related corporations during the
nancial year.
DIRECTORS BENEFITS
Since the end of the previous nancial year, no Director of the Company has received or become entitled to receive any benet (other than Directors remuneration
disclosed in Note 38 to the Financial Statements) by reason of a contract made by the Company or a related corporation with the Director or with a rm of which
the Director is a member, or with a company in which the Director has a substantial nancial interest.
Neither at the end of the nancial year, nor at any time during the nancial year, did there subsist any other arrangements to which the Company is a party, with
the object or objects of enabling Directors of the Company to acquire benets by means of the acquisition of shares in, or debentures of, the Company or any
other body corporate, other than the Management Equity Scheme and Equity Ownership Plan (see Note 43 to the Financial Statements) as disclosed in this
Report.
2014 BUSINESS PLAN AND STRATEGY

2014 proved to be another turbulent year for the nancial services industry given the evolution of the global economies, the various monetary policies by central
banks, currency volatility especially the strengthening of the US dollar as well as the plunge in global oil prices. The external headwinds translated to weaker
capital markets and slower investment ows into emerging markets. Within ASEAN alone, there were political disruptions in Indonesia and Thailand, currency
weaknesses and the economic impact of softer commodity prices to contend with. As such, the timing of the Groups theme for the year, Differentiating CIMB,
was pertinent to spearhead product and service differentiation by placing greater emphasis on technology innovation, product quality and changing both staff
and customer mindsets to entrench the Groups position as the industry develops. The Group remains committed to its ASEAN positioning and will continue
with the previous years Network CIMB initiatives to facilitate increased cross-border deals and activities.
With a tightened liquidity backdrop, the Group placed heightened focus on risk management and maintained a conservative and cautious approach to asset
growth and deposit accumulation across all jurisdictions. Asset quality management was also a priority following the uplift in provisions from legacy loans in both
Indonesia and Malaysia in 2014. Capital management has been amongst the top of the list of priorities and brought about strengthened capital ratios following
with the completion of the share placement, release of the regulatory reserves, continuation of the Dividend Reinvestment Scheme (DRS) and disposals of
several non-core assets.
017
ANNUAL REPORT 2014
2014 BUSINESS PLAN AND STRATEGY (CONTINUED)
The Group posted a revenue and prot before tax (PBT) of RM14.1 billion and RM4.3 billion, a decrease of 3.6% and 26.9% respectively year on year (Y-o-Y)
attributed to a weaker non-interest income and increased corporate banking provisions and goodwill impairment. This translated to a net return on equity (ROE)
of 9.2%. Net interest income (inclusive of net nance income and hibah from Islamic Banking operations) grew 6.1% Y-o-Y to RM10.0 billion on the back of a
steady loans and credit growth partially offset by lower net interest margins (NIM). Non-interest income declined by 20.8% largely due to weaker capital market
revenues at Treasury & Markets and Investment Banking as well as lower bancassurance fees in Indonesia following the implementation of new regulations.
The regional consumer PBT was 0.5% lower Y-o-Y at RM2.3 billion as the expansion of consumer banking operations in Malaysia, Singapore and Thailand were
offset by lower prot from Indonesia. PBT for Investment Banking and Corporate Banking, Treasury and Markets declined by 45.6% Y-o-Y to RM1.5 billion as,
1) Corporate Banking was affected by loan provisions in Indonesia and Malaysia; 2) Treasury & Markets PBT declined on slower credit markets and treasury
ows; and 3) Investment Banking turned a loss due to the weaker capital market activity. CIMB Niagas PBT declined 45.1% Y-o-Y to IDR3,200 billion as the
loans growth and steady NIMs were more than offset by weaker non-interest income and a rise in corporate loan provisions. CIMB Thais PBT declined 12.2%
to THB1.2 billion due to the absence of extra-ordinary gains accounted in 2013. Investments declined by 41.6% mainly due to the gains on disposal from the
sale of Tune Insurance recognised in 2013.
The Groups total gross loans expanded 12.8% Y-o-Y. However, excluding the bad bank, gross loans grew by 13.2% Y-o-Y. Small medium enterprises loans
increase by 40.8% Y-o-Y while individual loans grew by 12.5%. Total Group deposits grew by 7.2% Y-o-Y with CASA and xed deposits growing at 8.5% and
8.9% respectively.
The Group's allowances for impairment losses were 130.3% higher at RM1,522 billion in FY14 compared to RM661 million in FY13. The Groups total credit
charge was 0.58%. The Groups gross impairment ratio stood at 3.1% for FY14 from 3.2% as at FY13, with an allowance coverage of 82.7%. The Groups cost
to income ratio was higher at 58.6% compared to 57.6% in FY13 due to increased operating costs and a decline in operating income.
The Group kept to its 40% dividend payout policy by declaring total FY14 dividends amounting to RM1.3 billion or 15.00 sen per share. This was paid in two
interim dividend payouts of 10.00 sen (paid in October 2014) and 5.00 sen, to be paid by May 2015 via the option of either cash or via a DRS.
OUTLOOK FOR 2015
CIMBs corporate theme for 2015 is Recalibrate where we relook at the strengths and weaknesses of the Groups strategies, structure, processes and
culture. This will allow for a reassessment and rethink of our priorities, recognise areas where we are not doing well enough and to identify what needs to be
changed. The refocus and recalibration of the Groups organisational structure and strategies will position the Group on rm ground towards achieving our Target
2018 (T18) objectives. This does not detract from the Differentiating CIMB theme from last year, as we continue to ensure that the Groups proposition remains
relevant and evolves in an ever changing operating environment.
2015 will be another testing year globally with the recovery of the US economy counteracted by the struggles in Eurozone, a China slowdown, continued
currency volatility and likelihood of commodity prices remaining weak. Given this backdrop, the Group is maintaining a cautious stance with a moderate ROE
target of 11% on the back of a 10% loan growth for 2015. This will be underpinned by a challenging economic and banking environment in Malaysia and
Indonesia, while Thailand and Singapore should continue to perform well. In anticipation of these macro headwinds, the Group has formulated a T18 plan to
focus on managing costs, improving current processes and operations, strengthen our banking platform, build our regional SME and transaction banking
franchise, invest in technology to drive efciency and to address the internal culture to improve on our customer rst mindset.
018
CIMB & YOU
RATINGS BY EXTERNAL RATING AGENCY
Details of the rating of the Company and its debt securities are as follows:
Rating
Rating Agency Rating Date Rating Classification Accorded Outlook
RAM Rating Services Berhad October 2014 1. Long-term Financial Institution Rating AA1 Stable
(RAM) 2. Short-term Financial Institution Rating P1
3. RM3.0 billion Subordinated Notes Programme AA3
4. RM6.0 billion Conventional and Islamic Commercial AA1/P1
Papers/Medium-term Notes Programme
Moodys Investors Service July 2014 1. Long-term Issuer Rating A3 Stable

(Moodys) 2. Short-term Issuer Rating P-2
BOARD SHARIAH COMMITTEE
Pursuant to the enterprise wide Shariah governance framework as provided by Bank Negara Malaysia in its Guideline on Shariah Governance for Islamic
Financial Institutions and now as enshrined in the recently effective Islamic Financial Services Act 2013, the Board of Directors (the Board) is ultimately
responsible and accountable for the oversight and management of Shariah matters in the operation of the Groups Islamic banking and nance activities. In
undertaking its duties and responsibilities relating to Shariah, the Board relies on the advice of the Board Shariah Committee of CIMB Group Holdings Berhad
that it established under its core Islamic operating entity, CIMB Islamic Bank Berhad (CIMB Islamic).
The main responsibility of the Board Shariah Committee is to assist the Board in the oversight and management of all Shariah matters relating to the Islamic
banking and nance business of the CIMB Group Holdings Berhad. The Board Shariah Committee operates on the authority as delegated and empowered to
it by the Board and as attributed to it under relevant nancial regulations and legislations.
All decisions by the Board on Shariah matters relating to the Islamic banking business of CIMB Group Holding Berhad shall be made based on the decisions,
views and opinions of the Board Shariah Committee. If the Board disagrees with any decisions, views, and opinions of the Board Shariah Committee on any
Shariah matter, the former shall refer back the matter to the latter for a second or third review before nal decision is made. All and any nal decision of the Board
on Shariah matter shall be made based on the nal decisions, views and opinions of the Board Shariah Committee. All decisions of the Board and the Board
Shariah Committee on Shariah matters shall at all times be subordinated to the decision of the Shariah Advisory Council of the relevant Malaysian nancial
regulators and shall take into consideration the relevant authority on Shariah matters in the relevant jurisdiction it is doing business.
The Board Shariah Committee shall at all times assist the Board to ensure that the Groups Islamic banking and nance business does not have elements/
activities which are not permissible under Shariah.
The members of the Board Shariah Committee are as follows:
1. Sheikh Associate Professor Dr. Mohamed Azam Mohamed Adil

2. Sheikh Professor Dr. Mohammad Hashim Kamali
3. Sheikh Dr. Nedham Mohamed Saleh Yaqoobi
4. Sheikh Dr. Haji Mohd Naim bin Haji Mokhtar
5. Sheikh Associate Professor Dr. Shafaai bin Musa
6. Sheikh Dr. Yousef Abdullah Al Shubaily
7. Sheikha Professor Dr. Noor Inayah Yaakub
8. Sheikh Muhamad Tauk Ridlo
9. Sheikh Professor Dato' Dr. Sudin Haron
The Board hereby afrms based on advice of the Board Shariah Committee that the Groups Islamic banking and nance operations has been done in a manner
that does not contradict with Shariah save and except for those that have been specically disclosed in this nancial report (if any). This afrmation by the Board
is independently veried and conrmed by the Board Shariah Committee in a separate Board Shariah Committee Report made herein.
019
ANNUAL REPORT 2014
ZAKAT OBLIGATIONS
The obligation and responsibility for payment of Zakat lies with the Muslim shareholders of the Group. For the Groups banking and asset management
subsidiaries, the obligation and responsibility for payment of Zakat on deposits and investments received from their customers lies with their respective Muslim
customers only. The aforesaid is subject to the jurisdictional requirements on Zakat payment as may be applicable from time to time on the Bank and its
subsidiaries arising from changes to local legislation, regulation, law or market convention as the case may be. Accrual of Zakat expenses (if any) in the Financial
Statements of the Group is reective of this.
SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
Signicant events during the nancial year are disclosed in Note 48 to the Financial Statements.
SUBSEQUENT EVENTS AFTER THE FINANCIAL YEAR END
Subsequent events after the nancial year end are disclosed in Note 49 to the Financial Statements.
AUDITORS
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in ofce.
Signed on behalf of the Board of Directors in accordance with their resolution.
Dato Sri Mohamed Nazir bin Abdul Razak

Chairman

Director
Kuala Lumpur
9 March 2015
020
CIMB & YOU
STATEMENT BY DIRECTORS Pursuant to Section 169(15) of the Companies Act, 1965
We, Dato Sri Mohamed Nazir bin Abdul Razak and Tengku Dato Zafrul bin Tengku Abdul Aziz, being two of the Directors of CIMB Group Holdings Berhad,
hereby state that, in the opinion of the Directors, the Financial Statements set out on pages 026 to 308 are drawn up so as to give a true and fair view of the
state of affairs of the Group and of the Company as at 31 December 2014 and of the results and cash ows of the Group and of the Company for the nancial
year ended on that date, in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act, 1965 in Malaysia.
Signed on behalf of the Board of Directors in accordance with their resolution.
Dato Sri Mohamed Nazir bin Abdul Razak

Chairman

Director
Kuala Lumpur
9 March 2015
STATUTORY DECLARATION Pursuant to Section 169(16) of the Companies Act, 1965
I, Kim Kenny, being the ofcer primarily responsible for the nancial management of CIMB Group Holdings Berhad, do solemnly and sincerely declare that the
Financial Statements set out on pages 026 to 308 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.
Kim Kenny
Subscribed and solemnly declared by the abovenamed

Kim Kenny at Kuala Lumpur before me, on 9 March 2015.
Commissioner for Oaths
021
ANNUAL REPORT 2014
BOARD SHARIAH COMMITTEES REPORT

In the name of Allah, the Most Benecent, the Most Merciful.
We, the members of the CIMB Group Board Shariah Committee as established under CIMB Islamic Bank Berhad (CIMB Islamic), is responsible to assist the
Board in the oversight and management of Shariah matters in the operation of the Groups Islamic banking and nance activities. Although the Board is ultimately
responsible and accountable for all Shariah matters under the Group, the Board relies on our independent advice on the same.
Our main responsibility and accountability is to assist the Board in ensuring that the Groups Islamic banking and nance businesses does not have elements/
activities which are not permissible under Shariah. In undertaking our duties we shall follow and adhere to the decisions, views and opinions of the Shariah
Advisory Council of the relevant Malaysian nancial regulators for businesses undertaken in Malaysia and for businesses outside Malaysia we shall take into
consideration the decisions, views and opinions of the relevant authority on Shariah matters (if any, sanctioned by law/regulation to be followed by the Bank) in
the relevant jurisdiction that the Group is doing business.
As members of the Board Shariah Committee, we are responsible to provide an independent assessment and conrmation in this nancial report that the
operations of the Islamic banking and nance business of CIMB Group have been done in conformity with Shariah as has been decided and opined by us and
with those Notices, Rules, Standards, Guidelines and Frameworks on Shariah matters as announced and implemented by relevant nancial regulators in the
relevant jurisdictions that the Groups Islamic banking and nance businesses were undertaken during the period being reported.
Our independent assessment and conrmation has been used as the basis for the Boards afrmation of the same in the Directors Report herein before.
In making our independent assessment and conrmation, we have always recognised the importance of CIMB Group maintaining and reinforcing the highest
possible standards of conduct in all of its actions, including the preparation and dissemination of statements presenting fairly the Shariah compliant status of its
Islamic banking and nance businesses. In this regard we have developed and maintained a system of monitoring and reporting which provides the necessary
internal controls to ensure that any new Islamic nancial transactions are properly authorised and transacted in accordance to the requirements of Shariah; the
groups assets and liabilities under its statements of nancial position of Islamic banking and nance are safeguarded against possible Shariah non-compliance;
and, that the day to day conduct of its Islamic banking and nance operations does not contradict Shariah principles.
The system is augmented by written policies and procedures, the careful selection and training of Shariah qualied staff, the establishment of an organisational
structure that provides an appropriate and well-dened division of responsibility by Management and the communication of Shariah policies and guidelines of
business conduct to all staff of the Group.
Firstly, the system of internal control for effective Shariah governance is supported by a professional staff of Shariah researchers that supports us in our decision
and deliberations, providing check and balance for all Shariah matters as presented to us by the Management. Secondly, the Management has a Shariah review
framework that operates on a front to back basis comprising of self-assessment/self-reporting mechanism and periodic independent review undertaken by
Group Compliance Department under the General Counsel Division. Thirdly, the system is also augmented by a Shariah risk management framework covering
the rst; second and; third line of defenses. Lastly, there is also a strong team of internal auditors who conduct periodic Shariah audits of all the Groups Islamic
banking and nance operations on a scheduled and periodic basis.
All in all, the Management of the Group is responsible and accountable to the Board to ensure that the Islamic banking and nance businesses of CIMB Group
are done in accordance with the requirement of Shariah. It is our responsibility to form an independent opinion of the state of Shariah compliancy of the business
and its operations and advise the Board accordingly. Based on the internal and external controls that have been put in place by the Management, in our opinion,
to the best of our knowledge, the Group has complied with the Shariah rulings issued by the Shariah Advisory Council of Bank Negara Malaysia and by all other
nancial regulators (where relevant), as well as Shariah decisions made by us except for 4 incidences of Shariah non-compliance within CIMB Group as follows:
1. Within CIMB Bank, Labuan Offshore Branch due non-existence of assets in executing Bai Inah contracts which failed to comply with Shariah requirements
set by the Board Shariah Committee. All earnings that were realised from sources or by means prohibited by Shariah amounting USD145,524.78 or
RM508,827.39 over the course of the year have been considered for disposal to charitable causes.
2. Within CIMB Islamic Bank Berhad due to web banner advertisement which failed to comply with Shariah requirement set by the Board Shariah Committee.
There were no earnings that were derived from this incident.
3. Within CIMB Principal Asset Management Sdn Bhd due to internal product advertisement which failed to comply with Shariah requirement set by the Board
Shariah Committee. There were no earnings that were derived from this incident.
4. Within CIMB Investment Bank due to conventional agreement is used instead of Islamic agreement in relation to Islamic broking service which failed to
comply with Shariah requirement set by the Board Shariah Committee. There were no earnings that were derived from this incident.
RM1,061.70 reected in the nancial statement represents Shariah Non Compliance Income (SNCI) occurred in 2013.
022
CIMB & YOU
Various rectication and control measures were instituted to ensure the non-recurrence of such Shariah non-compliance activities including but not limited to
the following:
1. Updating CIMB Islamic, CIMB Bank, CIMB Investment Bank, CIMB Principal and where relevant the Groups procedures and processes in the affected
activities to reect the Shariah requirements.
2. Removed any elements that does not comply with Shariah requirements in CIMB Islamic, and CIMB Principals business communication immediately.
3. Removed any elements that does not comply with Shariah requirements in CIMB Investment Banks treasury legal documentation immediately.
Over and above these specic measures, we have also directed the Management to undertake more training sessions, courses and briengs aimed at building
stronger and deeper understanding amongst the Groups employee on Shariah application in the nancial activities undertaken by the Group and its subsidiaries
as well as to infuse the right culture for Shariah compliance amongst them.
In our opinion:
1. The contracts, transactions and dealings entered into by the Group during the nancial year ended 31 December 2014 that were presented to us were
done in compliance with Shariah;
2. The allocation of prot and charging of losses relating to investment accounts conformed to the basis that were approved by us in accordance with Shariah;
and
3. All earnings that were realised from sources or by means prohibited by Shariah have been considered for disposal to charitable causes.
We have assessed the independent work carried out for Shariah review and Shariah audit functions by the relevant functionaries under the established system
of internal control, which included the examination, on a test basis, of each type of transaction, of relevant documentation and procedures adopted by the
Group. We are satised that the Management has planned and performed the necessary review and audit so as to obtain all the information and explanations
which are considered necessary to provide us with sufcient evidence to give reasonable assurance that the Bank has not violated Shariah.
We, the members of the Board Shariah Committee, are of the opinion that the operations of the Group for the year ended 31 December 2014 were conducted
in conformity with Shariah except for what has been disclosed.
On behalf of the Board Shariah Committee
Sheikh Associate Professor Dr. Mohamed Azam Mohamed Adil

Chairman
Sheikh Professor Dr. Mohammad Hashim Kamali

Member
Kuala Lumpur
9 March 2015
023
ANNUAL REPORT 2014
INDEPENDENT AUDITORS REPORT

to the Members of CIMB Group Holdings Berhad
Company No: 50841-W
(Incorporated in Malaysia)
REPORT ON THE FINANCIAL STATEMENTS
We have audited the Financial Statements of CIMB Group Holdings Berhad on pages 026 to 307, which comprise the statements of nancial position as at
31December 2014 of the Group and of the Company, and the statements of income, statements of comprehensive income, statements of changes in equity
and statements of cash ows of the Group and of the Company for the year then ended, and a summary of signicant accounting policies and other explanatory
Notes, as set out on Note 1 to 57.
Directors Responsibility for the Financial Statements

The Directors of the Company 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
whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected
depend on our judgement, including the assessment of risks of material misstatement of the Financial Statements, whether due to fraud or error. In making those
risk assessments, we consider internal control relevant to the entitys preparation of Financial Statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Directors, as well as
evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufcient 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 nancial position of the Group and of the Company as of 31 December 2014 and of their
nancial performance and cash ows 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 Company and its subsidiaries of which we have
acted as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the Financial Statements and the auditors reports of all the subsidiaries of which we have not acted as auditors, which are indicated
in Note 12 to the Financial Statements.
(c) We are satised that the Financial Statements of the subsidiaries that have been consolidated with the Companys Financial Statements are in form and
content appropriate and proper for the purposes of the preparation of the Financial Statements of the Group and we have received satisfactory information
and explanations required by us for those purposes.
(d) The audit reports on the Financial Statements of the subsidiaries did not contain any qualication or any adverse comment made under Section 174(3) of
the Act.
024
CIMB & YOU
OTHER REPORTING RESPONSIBILITIES
The supplementary information set out in Note 58 on page 308 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad and is not part of the
Financial Statements. The Directors are responsible for the preparation of the supplementary information in accordance with Guidance on Special Matter No. 1,
Determination of Realised and Unrealised Prots or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as
issued by the Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary
information is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other
purpose. We do not assume responsibility to any other person for the content of this report.
PricewaterhouseCoopers
(No. AF: 1146)
Chartered Accountants
Dato Mohammad Faiz bin Mohammad Azmi

(2025/03/16(J))
Chartered Accountant
Kuala Lumpur
9 March 2015
025
ANNUAL REPORT 2014
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
as at 31 December 2014
2014 2013
Note RM000 RM000
Assets
Cash and short-term funds 2 33,462,817 33,678,882
Reverse repurchase agreements 4,758,286 8,260,504
Deposits and placements with banks and other financial institutions 3 4,238,988 3,789,019
Financial assets held for trading 4 23,803,771 23,403,280
Derivative financial instruments 7 7,182,759 5,020,453
Financial investments available-for-sale 5 32,286,522 30,334,058
Financial investments held-to-maturity 6 18,261,561 10,821,493
Loans, advances and financing 8 258,014,859 228,431,705
Other assets 9 12,511,211 7,990,355
Tax recoverable 45,483 64,578
Deferred tax assets 10 272,587 357,250
Statutory deposits with central banks 11 6,841,165 6,361,648
Investment in associates 13 844,709 703,947
Investment in joint ventures 14 241,680 309,535
Property, plant and equipment 15 1,466,634 1,546,783
Investment properties 16 4,000 4,000
Prepaid lease payments 17 136,419 147,901
Goodwill 18 7,911,160 7,877,463
Intangible assets 19 1,850,419 1,760,225
414,135,030 370,863,079
Non-current assets held for sale 53 21,326 49,718
Total assets 414,156,356 370,912,797
Liabilities
Deposits from customers 20 282,068,787 263,004,302
Deposits and placements of banks and other financial institutions 21 32,149,798 20,727,845
Repurchase agreements 5,735,839 5,922,788
Financial liabilities designated at fair value 22 3,690,701 2,132,170
Derivative financial instruments 7 7,712,794 6,009,608
Bills and acceptances payable 2,998,134 4,713,219
Other liabilities 23 10,816,798 8,562,039
Current tax liabilities 231,276 384,800
Deferred tax liabilities 10 51,569 50,327
Bonds and debentures 25 7,666,048 7,490,265
Other borrowings 26 9,290,807 7,772,727
Subordinated obligations 27 12,582,494 12,066,700
Non-cumulative guaranteed and redeemable preference shares 29(a), 29(b) 770,188 847,447
Total liabilities 375,765,233 339,684,237
026
CIMB & YOU
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
as at 31 December 2014 (Continued)
2014 2013
Note RM000 RM000
Equity
Capital and reserves attributable to owners of the Parent
Share capital 28 8,423,751 7,729,346

Reserves 30 28,937,290 22,542,356
Less: Shares held under trust 31(a) (563) (563)
Treasury shares, at cost 31(b) (42) (41)
37,360,436 30,271,098
Perpetual preference shares 29(c) 200,000 200,000
Total equity 38,391,123 31,228,560
Total equity and liabilities 414,156,356 370,912,797
Commitments and contingencies 46 702,740,799 526,572,598
Net assets per share attributable to owners of the Parent (RM) 4.44 3.92
027
ANNUAL REPORT 2014
CONSOLIDATED STATEMENTS OF INCOME

for the nancial year ended 31 December 2014
2014 2013
Note RM000 RM000
Interest income 32 16,059,003 14,677,300

Interest expense 33 (7,403,455) (6,723,154)
Net interest income 8,655,548 7,954,146

Income from Islamic banking operations 56 1,461,278 1,592,863
Net non-interest income 34 4,029,098 5,124,826
14,145,924 14,671,835
Overheads 35 (8,291,963) (8,457,870)
Profit before allowances 5,853,961 6,213,965

Allowance made for impairment losses on loans, advances and financing 36 (1,522,068) (660,607)
Allowance made for impairment losses on other receivables (26,072) (38,918)
Allowance written back for commitments and contingencies 23 8,942 1,334
Recoveries from investment management and securities services 804 11,932
Allowance made for other impairment losses 37 (162,497) (39,915)
4,153,070 5,487,791
Share of results of joint ventures 14 (1,942) 55,170
Share of results of associates 13 125,295 306,268
Profit before taxation 4,276,423 5,849,229

Taxation
Company and subsidiaries 39 (1,101,866) (1,240,407)
Profit for the year 3,174,557 4,608,822
Profit attributable to:

3,174,557 4,608,822
Earnings per share attributable to ordinary equity holders of the Parent (sen)
Basic 40 37.5 60.0
028
CIMB & YOU
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME for the nancial year ended 31 December 2014
2014 2013
RM000 RM000
Prot for the nancial year 3,174,557 4,608,822
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss

Remeasurement of post employment benefits obligation
Actuarial (loss)/gain (16,368) 74,413
Income tax effects 2,607
Currency translation difference (645) 2,011
(14,406) 76,424
Items that may be reclassified subsequently to profit or loss

Revaluation reserve-financial investments available-for-sale 188,535 (852,747)
Net gain/(loss) from change in fair value 340,368 (778,348)

Realised gain transferred to statement of income on disposal and impairment (92,912) (291,730)
Income tax effects (55,870) 194,369
Currency translation difference (3,051) 22,962
Net investment hedge (248,380) (130,221)

Hedging reserve cash flow hedge 4,041 (10,885)

Income tax effects 189 2,953
Exchange fluctuation reserve 941,601 (1,258,753)

Share of other comprehensive income/(expense) of
Associates 2,199 (725)
Joint ventures 4,965 (5,742)
892,961 (2,259,073)
Other comprehensive income/(expense) during the financial year, net of tax 878,555 (2,182,649)
Total comprehensive income for the financial year 4,053,112 2,426,173
Total comprehensive income attributable to:

4,053,112 2,426,173
029
ANNUAL REPORT 2014
COMPANY STATEMENTS OF FINANCIAL POSITION

as at 31 December 2014
2014 2013
Note RM000 RM000
ASSETS
Cash and short-term funds 2 1,864,074 69,573
Derivative financial instruments 7 478 3,940
Loans, advances and financing 8 40 71
Other assets 9 13,764 45,272
Tax recoverable 35,757 37,636
Amount owing by subsidiaries net of allowance for doubtful debts of RM775,424 (2013: RM2,225,852) 42 788
Investment in subsidiaries 12 24,214,072 20,719,439
Investment in associates 13 3,834 3,834
Property, plant and equipment 15 2,126 7,464
Investment properties 16 471 490
26,134,616 20,888,507
Non-current assets held for sale 53 10,925 7,862
Total assets 26,145,541 20,896,369
LIABILITIES
Other liabilities 23 4,061 5,027
Amount owing to subsidiaries 42 222
Deferred tax liabilities 10 448 1,998
Other borrowings 26 4,305,015 3,823,855
Subordinated obligations 27 2,141,402 2,141,402
EQUITY
Share capital 28 8,423,751 7,729,346
Reserves 30 11,270,906 7,194,560
Less: Treasury shares, at cost 31(b) (42) (41)
Total equity 19,694,615 14,923,865
Commitments and contingencies 46 500,000 500,000
030
CIMB & YOU
COMPANY STATEMENTS OF INCOME for the nancial year ended 31 December 2014
2014 2013
Note RM000 RM000
Interest income 32 52,504 20,039

Interest expense 33 (268,624) (268,586)
Net interest expense (216,120) (248,547)

Net non-interest income 34 1,859,076 2,397,196
1,642,956 2,148,649
Overheads 35 (11,681) (16,310)

Taxation 39 (11,731) (5,396)
Net profit after taxation/Profit for the financial year 1,619,544 2,126,943
COMPANY
STATEMENTS OF COMPREHENSIVE INCOME for the nancial year ended 31 December 2014
2014 2013
RM000 RM000
Prot for the nancial year/Total comprehensive income for the nancial year 1,619,544 2,126,943
031
ANNUAL REPORT 2014
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
Attributable to owners of the Parent

Revaluation
reserve
Share financial Share-
premium- Exchange Shares investments based Perpetual Non-
Share ordinary Statutory Capital fluctuation held under Treasury available- Other payment Regulatory Retained preference controlling
capital shares reserve reserve reserve trust shares for-sale reserves reserve reserve earnings Total shares interests Total
The Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 2014 7,729,346 5,832,520 4,933,045 137,104 (2,106,977) (563) (41) (42,709) (271,510) 101,642 1,743,883 12,215,358 30,271,098 200,000 757,462 31,228,560
Profit for the financial year 3,106,808 3,106,808 67,749 3,174,557

Other comprehensive income
(net of tax) 422 923,361 192,556 (258,795) 1,015 858,559 19,996 878,555
Financial investments available-for-

sale 185,392 185,392 3,143 188,535
Net investment hedge (248,380) (248,380) (248,380)
Hedging reserve cash flow hedge 3,991 3,991 50 4,041
Remeasurement of post
employment benefits obligations (14,406) (14,406) (14,406)
Currency translation difference 422 923,361 1,015 924,798 16,803 941,601
Share of other comprehensive
income of
Associate 2,199 2,199 2,199
Joint venture 4,965 4,965 4,965
Total comprehensive income for the
financial year 422 923,361 192,556 (258,795) 1,015 3,106,808 3,965,367 87,745 4,053,112
Second interim dividend for the

financial year ended 31
December 2013 41 (850,091) (850,091) (850,091)
First interim dividend for the
December 2014 41 (833,652) (833,652) (833,652)
Non-controlling interest share of
dividend (3,333) (3,333)
Transfer to statutory reserve 717,246 (717,246)
Transfer from regulatory reserve (1,150,088) 1,150,088
Issuance of shares arising from:
dividend reinvestment scheme 28 194,405 1,099,011 1,293,416 1,293,416
private placement 28 500,000 3,041,534 3,541,534 3,541,534
Purchase of treasury shares 31(b) (1) (1) (1)
Share-based payment expense 43 114,494 114,494 114,494
Purchase of shares in relation to
Equity Ownership Plan (EOP) (127,615) (127,615) (127,615)
Shares released under EOP 93,830 (97,412) (3,582) (3,582)
Contributions by non-controlling
interests 10,116 10,116
Arising from dilution/disposal of
equity interests in subsidiaries 5,045 5,045
Arising from acquisition of additional
interest of subsidiary (10,069) (10,069) (26,348) (36,417)
EOP for staff resigned (463) (463) (463)
Total transactions with owners/other

equity movements, recognised
directly in equity 694,405 4,140,545 717,246 (1) (33,785) 17,082 (1,150,088) (1,261,433) 3,123,971 (14,520) 3,109,451
At 31 December 2014 8,423,751 9,973,065 5,650,713 137,104 (1,183,616) (563) (42) 149,847 (564,090) 119,739 593,795 14,060,733 37,360,436 200,000 830,687 38,391,123
032
CIMB & YOU
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
for the nancial year ended 31 December 2014 (Continued)
Attributable to owners of the Parent

Revaluation
reserve
Share financial Share-
premium- Exchange Shares investments based Perpetual Non-
Share ordinary Statutory Capital fluctuation held under Treasury available- Other payment Regulatory Retained preference controlling
capital shares reserve reserve reserve trust shares for-sale reserves reserve reserve earnings Total shares interests Total
The Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 2013 7,432,775 4,192,596 4,306,464 137,104 (876,172) (563) (32) 800,965 (149,444) 59,459 1,173,577 11,216,265 28,292,994 200,000 773,325 29,266,319
Profit for the financial year 4,540,403 4,540,403 68,419 4,608,822

(net of tax) (297) (1,230,805) (843,674) (65,193) 653 (2,139,316) (43,333) (2,182,649)
Financial investments available-for-
sale (837,207) (837,207) (15,540) (852,747)
Net investment hedge (130,221) (130,221) (130,221)
Hedging reserve cash flow hedge (11,396) (11,396) 511 (10,885)
Remeasurement of post
employment benefits obligations 76,424 76,424 76,424
Currency translation difference (297) (1,230,805) 653 (1,230,449) (28,304) (1,258,753)
Share of other comprehensive
expense of
Associate (725) (725) (725)
Joint venture (5,742) (5,742) (5,742)
financial year (297) (1,230,805) (843,674) (65,193) 653 4,540,403 2,401,087 25,086 2,426,173
Second interim dividends for the

December 2012 41 (1,366,143) (1,366,143) (1,366,143)
December 2013 41 (976,352) (976,352) (976,352)
Non-controlling interest share of
dividend (10,144) (10,144)
Transfer to regulatory reserve 570,306 (570,306)
Issuance of shares pursuant to
Dividend Reinvestment Plan 28 296,571 1,639,924 1,936,495 1,936,495
Purchase of treasury shares 31(b) (9) (9) (9)
Share-based payment expense 43 97,493 97,493 97,493
Purchase of shares in relation to
Equity Ownership Plan (EOP) (118,333) (118,333) (118,333)
Shares released under EOP 61,460 (55,963) 5,497 5,497
Arising from increase in capital of
subsidiaries 8,564 8,564
Arising from disposal of subsidiaries (39,369) (39,369)
EOP for staff resigned (1,631) (1,631) (1,631)
Total transactions with owners/other

equity movements, recognised
directly in equity 296,571 1,639,924 626,878 (9) (56,873) 41,530 570,306 (3,541,310) (422,983) (40,949) (463,932)
At 31 December 2013 7,729,346 5,832,520 4,933,045 137,104 (2,106,977) (563) (41) (42,709) (271,510) 101,642 1,743,883 12,215,358 30,271,098 200,000 757,462 31,228,560
033
ANNUAL REPORT 2014
COMPANY STATEMENTS OF CHANGES IN EQUITY

Non-distributable
Distributable
Share Share Capital Treasury Retained
capital premium reserve shares earnings Total
The Company Note RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 2014 7,729,346 5,832,520 55,982 (41) 1,306,058 14,923,865
Profit for the financial year 1,619,544 1,619,544

financial year 1,619,544 1,619,544
financial year ended 31 December
2013 41 (850,091) (850,091)
2014 41 (833,652) (833,652)
Issue of share capital arising from:
Private placement 28 500,000 3,041,534 3,541,534
Dividend Reinvestment Plan 28 194,405 1,099,011 1,293,416
Purchase of treasury shares 31(b) (1) (1)
At 31 December 2014 8,423,751 9,973,065 55,982 (42) 1,241,859 19,694,615
At 1 January 2013 7,432,775 4,192,596 55,982 (32) 1,521,610 13,202,931
Profit for the financial year 2,126,943 2,126,943

financial year 2,126,943 2,126,943
2012 41 (1,366,143) (1,366,143)
2013 41 (976,352) (976,352)
Issuance of shares pursuant to
Dividend Reinvestment Plan 28 296,571 1,639,924 1,936,495
At 31 December 2013 7,729,346 5,832,520 55,982 (41) 1,306,058 14,923,865
034
CIMB & YOU
CONSOLIDATED STATEMENTS OF CASH FLOWS for the nancial year ended 31 December 2014
2014 2013
RM000 RM000
Note Restated
OPERATING ACTIVITIES
Adjustments for:
Accretion of discounts less amortisation of premiums 32 (11,095) (31,208)
Amortisation of prepaid lease payments 35 11,364 11,802
Allowance made for impairment losses on other receivables 26,072 38,918
Allowance made for other impairment losses 37 162,497 39,915
Allowance made for impairment losses on loans, advances and financing 1,864,492 1,064,446
Allowance written back for commitments and contingencies (8,942) (1,334)
Amortisation of intangible assets 35 323,477 277,305
Depreciation of property, plant and equipment 35 322,108 343,360
Dividends from financial investments available-for-sale 34 (23,665) (29,906)
Dividends from financial assets held-for-trading 34 (60,769) (32,502)
Gain from fair value hedge of Redeemable Preference Shares (30,933) (31,457)
Gain on disposal of associates and joint ventures 34 (17,430) (515,063)
Gain on deemed disposal/disposal of interest in subsidiaries 34 (49,553) (10,139)
Gain on disposal of property, plant and equipment/assets held for sale 34 (68,875) (38,300)
Gain on disposal of leased assets 34 (42) (38)
Gain on remeasurement of equity interest retained as an associate 34 (30,987)
Gain on sale of financial investments available-for-sale 34 (119,822) (280,508)
Gain on revaluation of investment properties 34 (1,021)
Gain on sale of financial assets held for trading and derivative financial instruments 34 (694,533) (692,793)
Loss on disposal of foreclosed properties 34 61,557 40,827
Net gain from redemption/maturity of financial investments held-to-maturity 34 (2,640) (126,917)
Net (gain)/loss arising from hedging activities 34 (16,344) 36,839
Property, plant and equipment written off 35 7,148 3,949
Recoveries from investment management and securities services (804) (11,932)
Share-based payment expense 43 114,494 97,493
Share of results of associates (125,295) (306,268)
Share of results of joint ventures 1,942 (55,170)
Unrealised loss/(gain) on financial liabilities designated at fair value 34 34,478 (256,899)
Unrealised loss/(gain) on foreign exchange 34 167,486 (281,009)
Unrealised (gain)/loss on revaluation of derivative financial instruments 34 (231,374) 262,947
Unrealised loss/(gain) on revaluation of financial assets held for trading 34 124,405 205,092
1,728,417 (279,571)
6,004,840 5,569,658
035
ANNUAL REPORT 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS

2014 2013
RM000 RM000
Note Restated
Decrease/(increase) in operating assets

Reverse repurchase agreements 3,502,218 (2,666,226)
Deposits and placements with banks and other financial institutions (449,969) 1,201,312
Financial assets held for trading (433,420) 1,750,349
Loans, advances and financing (31,842,492) (27,198,419)
Other assets (5,140,939) (1,063,547)
Derivative financial instruments 571,492 1,511,760
Statutory deposits with central banks (479,517) (1,096,728)
(34,272,627) (27,561,499)
Increase/(decrease) in operating liabilities
Deposits from customers 19,064,485 15,709,263
Deposits and placements of banks and other financial institutions 11,421,953 5,205,254
Financial liabilities designated at fair value 1,524,053 2,396,145
Repurchase agreements (186,949) 2,854,749
Bills and acceptances payable (1,715,085) 455,962
Other liabilities 2,977,520 1,471,326
33,085,977 28,092,699
Cash flows generated from operations 4,818,190 6,100,858

Taxation paid (1,150,390) (1,497,912)
Net cash flows generated from operating activities 3,667,800 4,602,946
INVESTING ACTIVITIES
Acquisition of RBS business, net of cash acquired 51(a) (26,435)
Capital repayment from a joint venture 14 3,306 47,336
Dividend from an associate 13 20,037
Dividends received from financial investments available-for-sale 23,665 29,906
Dividends received from financial assets held for trading 60,769 32,502
Investment in associates 13 (2,016) (23,274)
Investment in joint ventures 14 (1,661) (1,623)
Net purchase of financial investments available-for-sale (1,706,899) (1,588,860)
Net purchase of financial investments held-to-maturity (7,458,966) (1,720,098)
Net cash inflow from disposal of interest in subsidiaries 54(b) 150,432 37,509
Proceeds from disposal of CIMB Aviva 1,066,438
Proceeds from disposal of certain interest in associates 20,073 4,047
Proceeds from disposal of interest in joint ventures 84,100
Proceeds from disposal of prepaid lease payment 257 7
Proceeds from disposal of property, plant and equipment/asset held for sale 262,799 99,177
Purchase of prepaid lease payment 17 (92)
Purchase of property, plant and equipment 15 (405,944) (508,754)
Proceeds from disposal of intangible assets 19,990 11,195
Purchase of intangible assets 19 (348,239) (367,866)
Net cash ows used in investing activities (9,278,297) (2,908,885)
036
CIMB & YOU
CONSOLIDATED STATEMENTS OF CASH FLOWS

2014 2013
Note RM000 RM000
FINANCING ACTIVITIES
Acquisition of additional interest in subsidiary from non-controlling interests (36,417) 8,564
Contribution from non-controlling interests 10,116
Dividends paid to non-controlling interests (3,333) (10,144)
Dividends paid to shareholders 41(a),(b) (390,327) (405,999)
Interest paid on bonds and debentures (318,512) (219,005)
Interest paid on subordinated obligations (562,939) (562,967)
Issuance of ordinary share capital private placement 3,541,534
Net drawdown/(repayment) from term loan facility and other borrowings 992,285 (378,508)
Net proceeds from revolving credit and overdraft 87,622 231,806
Proceeds from issuance of bonds and debentures 8,136,874 8,479,747
Proceeds from issuance of subordinated obligations 400,000 1,119,299
Proceeds of commercial papers and medium term notes 1,229,063 926,841
Redemption of bonds and debentures (8,324,436) (4,747,834)
Repayment of commercial papers and medium term notes (791,711) (646,844)
Repayment of redeemable preference shares (91,529)
Repayment of subordinated obligations (6,284) (1,500,000)
Net cash flows generated from financing activities 3,872,005 2,294,947
Net (decrease)/increase in cash and short-term funds during the financial year (1,738,492) 3,989,008
Effects of exchange rate changes 1,522,427 (1,070,025)
Cash and short-term funds at beginning of the financial year 33,678,882 30,759,899
Cash and short-term funds at end of the financial year 2 33,462,817 33,678,882
Statutory deposits with Bank Indonesia* (4,127,783) (3,741,377)
Monies held in trust (32,376) (30,429)
Cash and cash equivalents at end of the financial year 29,302,658 29,907,076
* This represents non-interest bearing statutory deposits of a foreign subsidiary maintained with Bank Indonesia in compliance with their applicable legislation
of RM4,127,783,000 (2013: RM3,741,377,000), which is not readily available for use by the Group.
037
ANNUAL REPORT 2014
COMPANY STATEMENTS OF CASH FLOWS

2014 2013
Note RM000 RM000
OPERATING ACTIVITIES
Adjustments for:
Depreciation of property, plant and equipment 15 546 1,792
Depreciation of investment properties 16 19 18
Dividends from subsidiaries 34 (1,846,982) (2,427,649)
Gain on disposal of property, plant and equipment 34 (23,556)
Interest expense on term loan 91,308 90,083
Interest expense on commercial papers 7,351 4,316
Net loss arising from hedging derivatives 34 3,532
Unrealised (gain)/loss on foreign exchange 34 (12,024) 42,572
Unrealised loss on revaluation of derivative financial instruments 34 3,462 5,458
(1,756,320) (2,303,434)
(125,045) (171,095)
Decrease/(increase) in operating assets
Loans, advances and financing 31 24
Other assets 31,516 (53,924)
31,547 (53,900)
(Decrease)/increase in operating liabilities
Other liabilities (3,934) 5,888
(3,934) 5,888
Cash flows used in operations (97,432) (219,107)

Net taxation (payment)/refund (11,411) 280
Net cash flows used in operating activities (108,843) (218,827)
INVESTING ACTIVITIES
Acquisition of additional interest in subsidiaries (3,440,768) (1,789,217)
Dividends from subsidiaries 1,846,982 2,427,649
Proceeds from disposal of property, plant and equipment 1,838 35,948
Purchase of property, plant and equipment 15 (110) (793)
Repayment from subsidiaries 566 3,672
Net cash flows (used in)/generated from investing activities (1,591,492) 677,259
FINANCING ACTIVITIES
Dividends paid to shareholders 41(a),(b) (390,327) (405,999)
Interest paid on commercial papers (7,352)
Interest paid on term loan (86,371) (86,051)
Proceeds from term loan facility 86,305
Proceeds from issuance of shares from private placement 3,541,534
Proceeds from commercial papers and medium term notes 1,229,063 834,828
Repayment of commercial papers and medium term notes (791,710) (646,844)
Repayment of term loan (306,164)
Net cash flows generated from/(used in) financing activities 3,494,836 (523,934)
Net increase/(decrease) in cash and cash equivalents during the financial year 1,794,501 (65,502)
Cash and cash equivalents at beginning of the financial year 69,573 135,075
Cash and cash equivalents at end of the financial year 2 1,864,074 69,573
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CIMB & YOU
SUMMARY OF SIGNIFICANT
GROUP ACCOUNTING POLICIES for the nancial year ended 31 December 2014
The following accounting policies have been used consistently in dealing with items that are considered material in relation to the Financial Statements.
A BASIS OF PREPARATION
The Financial Statements of the Group and the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (MFRS),
International Financial Reporting Standards, and the requirements of the Companies Act, 1965 in Malaysia.
The Financial Statements have been prepared under historical cost convention, as modied by the revaluation of nancial investments available-for-sale,
nancial assets and nancial liabilities (including derivatives nancial instruments) at fair value through prot or loss, investment properties and non-
current assets/disposal groups held for sale.
The Financial Statements incorporate those activities relating to Islamic banking which have been undertaken by the Group. Islamic banking refers
generally to the acceptance of deposits, granting of nancing and dealing in Islamic Securities under the Shariah principles.
The preparation of Financial Statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements, and the reported
amounts of income and expenses during the reported period. It also requires the Directors to exercise their judgement in the process of applying the
Groups and the Companys accounting policies. Although these estimates and judgement are based on the Directors best knowledge of current events
and actions, actual results may differ from those estimates.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signicant to the Financial Statements,
are disclosed in Note 52.
(a) Standards and amendments to published standards that are effective and applicable to the Group and the Company
The new accounting standards and amendments to published standards that are effective and applicable to the Group and the Company for the
nancial year beginning 1 January 2014 are as follows:
Amendments to MFRS 10, MFRS 12 and MFRS 127 Investment entities
Amendment to MFRS 132 Financial instruments: Presentation Offsetting nancial assets and nancial liabilities
Amendment to MFRS 139 Financial instruments: recognition and measurement Novation of derivatives and continuation of hedge accounting
IC Interpretation 21 Levies
The adoption of the new accounting standards, amendments and improvements to published standards did not have a material impact on the
Financial Statements of the Group and the Company.
(b) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and
the Company but not yet effective
The Group and the Company will apply these standards, amendments to published standards from:
(i) Financial year beginning on/after 1 January 2015
Annual Improvements to MFRSs 2010-2012 Cycle (effective from 1 January 2015)
Amendments to MFRS 2 Share-based Payment

The amendment claries the denition of a vesting condition and separately denes performance condition and service condition.
MFRS 3 Business Combinations

The amendment to MFRS 3 claries that an obligation to pay contingent consideration which meets the denition of a nancial
instrument is classied as a nancial liability or equity, on the basis of the denitions in MFRS 132 Financial instruments: Presentation.
It also claries that all non-equity contingent consideration is measured at fair value at each reporting date, with changes in value
recognised in prot and loss.
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ANNUAL REPORT 2014
A BASIS OF PREPARATION (CONTINUED)
the Company but not yet effective (Continued)
The Group and the Company will apply these standards, amendments to published standards from (Continued):
(i) Financial year beginning on/after 1 January 2015 (Continued)
Annual Improvements to MFRSs 2010-2012 Cycle (effective from 1 January 2015) (Continued)
MFRS 8 Operating Segments

The amendment to MFRS 8 requires disclosure of the judgement made by management in aggregating operating segments. It is also
amended to require a reconciliation of segment assets to the entitys assets when segment assets are reported.
MFRS 13 Fair Value Measurement

The basis of conclusions of MFRS 13 is amended to clarify that it did not intend to remove the ability to measure short term receivables
and payables at invoice amount where the effect of discounting is immaterial.
MFRS 116 Property, Plant and Equipment and MFRS 138 Intangible Assets
The amendments to MFRS 116 and MFRS 138 clarify how the gross carrying amount and the accumulated depreciation are treated
where an entity uses the revaluation model.
MFRS 124 Related Party Disclosures

MFRS 124 is amended to include, as a related party, an entity that provides key management personnel services to the reporting entity
or the parent of the reporting entity (the management entity). Disclosure of the amounts charged to the reporting entity is required.
Annual Improvements to MFRSs 2011-2013 Cycle (effective from 1 January 2015)
Amendments to MFRS 1 First-time Adoption of Financial Reporting Standards

The basis of conclusions is amended to clarify that where a new standard is not mandatory but is available for early adoption, a rst-
time adopter can use either the old or the new version, provided there same standard is applied in all periods presented.
MFRS 3 Business Combinations

The amendment to MFRS 3 claries that the standard does not apply to the accounting for the formation of any joint venture under
MFRS 11.
MFRS 13 Fair Value Measurement

The amendment to MFRS 13 claries that the portfolio exception in the standard applies to all contracts (including non-nancial
contracts) within the scope of MFRS 139 or MFRS 9.
MFRS 140 Investment Property

The amendment to MFRS 140 claries that MFRS 140 and MFRS 3 are not mutually exclusive. MFRS 140 assists users to distinguish
between investment property and owner-occupied property. Preparers also need to consider the guidance in MFRS 3 to determine
whether the acquisition of an investment property is a business combination.
Amendments to MFRS 119 Dened Benets Plans: Employee Contributions (effective from 1 January 2015)
The amendment applies to contributions from employees or third parties to dened benets plans and claries the treatment of such
contributions that are linked to service only in the period in which they arise and those linked to service in more than one period. The
objective of the amendment is to simplify the accounting for contributions that are independent of the number of users of employee service,
for example employee contributions that are calculated according to a xed percentage of salary. Entities with plans that require contributions
that vary with service will be required to recognise the benet of those contributions over employees working lives.
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CIMB & YOU
A BASIS OF PREPARATION (CONTINUED)
the Company but not yet effective (Continued)
The Group and the Company will apply these standards, amendments to published standards from (Continued):
(ii) Financial year beginning on/after 1 January 2016
Amendment to MFRS 11 Joint arrangements (effective from 1 January 2016) requires an investor to apply the principles of MFRS 3
Business Combination when it acquires an interest in a joint operation that constitutes a business. The amendments are applicable to
both the acquisition of the initial interest in a joint operation and the acquisition of additional interest in the same joint operation. However,
a previously held interest is not re-measured when the acquisition of an additional interest in the same joint operation results in retaining
joint control.
Amendments to MFRS 10 and MFRS 128 regarding sale or contribution of assets between an investor and its associate or joint venture
(effective from 1 January 2016) resolve a current inconsistency between MFRS 10 and MFRS 128. The accounting treatment depends on
whether the non-monetary assets sold or contributed to an associate or joint venture constitute a business. Full gain or loss shall be
recognised by the investor where the non-monetary assets constitute a business. If the assets do not meet the denition of a business,
the gain or loss is recognised by the investor to the extent of the other investors interests. The amendments will only apply when an
investor sells or contributes assets to its associate or joint venture. They are not intended to address accounting for the sale or contribution
of assets by an investor in a joint operation.
(iii) Financial year beginning on/after 1 January 2017
MFRS 15 Revenue from contracts with customers (effective from 1 January 2017) deals with revenue recognition and establishes
principles for reporting useful information to users of nancial statements about the nature, amount, timing and uncertainty of revenue and
cash ows arising from an entitys contracts with customers. Revenue is recognised when a customer obtains control of a good or service
and thus has the ability to direct the use and obtain the benets from the good or service. The standard replaces MFRS 118 Revenue
and MFRS 111 Construction contracts and related interpretations.
(iv) Financial year beginning on/after 1 January 2018
MFRS 9 Financial Instruments (effective from 1 January 2018) will replace MFRS 139 Financial Instruments: Recognition and
Measurement. The complete version of MFRS 9 was issued in November 2014.
MFRS 9 retains but simplies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for
nancial assets: amortised cost, fair value through prot or loss and fair value through other comprehensive income (OCI). The basis of
classication depends on the entitys business model and the contractual cash ow characteristics of the nancial asset. Investments in
equity instruments are always measured at fair value through prot or loss with a irrevocable option at inception to present changes in fair
value in OCI (provided the instrument is not held for trading). A debt instrument is measured at amortised cost only if the entity is holding
it to collect contractual cash ows and the cash ows represent principal and interest.
For liabilities, the standard retains most of the MFRS 139 requirements. These include amortised cost accounting for most nancial
liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for nancial
liabilities, the part of a fair value change due to an entitys own credit risk is recorded in other comprehensive income rather than the income
statement, unless this creates an accounting mismatch.
There is now a new expected credit losses model on impairment for all nancial assets that replaces the incurred loss impairment model
used in MFRS 139. The expected credit losses model is forward-looking and eliminates the need for a trigger event to have occurred
before credit losses are recognised.
The adoption of the above new accounting standards will not have any signicant impact on the nancial results of the Group and the Company
except for MFRS 9. The Group has initiated the assessment of the potential effect of this Standard. Due to the complexity of this standard, the
nancial impact of its adoption is still being assessed by the Group. This standard is expected to have pervasive impact on the Groups nancial
statements.
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ANNUAL REPORT 2014
B ECONOMIC ENTITIES IN THE GROUP
(a) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed
to, 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.
The consolidated Financial Statements include the Financial Statements of the Company and all its subsidiaries made up to the end of the nancial
year.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and de-consolidated from the date that control ceases.
The group applies the acquisition method to account for business combinations.
Under the acquisition method of accounting, the consideration transferred for an acquisition is measured as the acquisition date fair value of the
assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identiable assets
acquired, and liabilities and contingent liabilities assumed in the business combination are measured initially at their fair value on the date of
acquisition.
The Group applies predecessor accounting to account for business combinations under common control. Under the predecessor basis of
accounting, the results of subsidiaries are presented as if the business combination had been effected from the current years. The assets and
liabilities combined are accounted for based on the carrying amounts from the perspective of the common control shareholder at the date of
transfer. On consolidation, the cost of the business combination is cancelled with the values of the shares received. Any resulting credit difference
is classied as equity. Any resulting debit difference is adjusted against merger reserves. Any share premium, capital redemption reserve and any
other reserves which are attributable to share capital of the combined entities, to the extent that they have not been capitalised by a debit difference,
are reclassied and presented as movement in other capital reserves.
In business combination achieved in stages, previously held equity interest in acquire are re-measured to fair value at the acquisition date and any
corresponding gain or loss is recognised in statement of income.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of non-controlling interest in
acquiree (if any), and the fair value of the Groups previously held equity interest in acquiree (if any), over the fair value of the acquirees identiable
net assets acquired is recorded as goodwill. The accounting policy for goodwill is set out in Note M. In instances where the latter amount exceeds
the former, the excess is recognised as gain on bargain purchase in statement of income on the acquisition date.
Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to a parent. On an acquisition-by-acquisition basis, the
Group measures any non-controlling interest in the acquiree either at fair value or at the non-controlling interests proportionate share of the
acquirees net assets. At the end of reporting period, non-controlling interest consists of amount calculated on the date of combinations and its
share of changes in the subsidiarys equity since the date of combination.
All earnings and losses of the subsidiary are attributed to the parent and the non-controlling interest, even if the attribution of losses to the non-
controlling interest results in a debit balance in the shareholders equity. Prot or loss attribution to non-controlling interests for prior years is not
restated.
Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date. Subsequent changes to the fair value
of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with MFRS 139 either in prot or loss or as a
change to other comprehensive income. Contingent consideration that is classied as equity is not remeasured, and its subsequent settlement is
accounted for within equity.
All material transactions and balances between group companies are eliminated and the consolidated Financial Statements reect external
transactions only. Where necessary, the accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by
the Group.
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CIMB & YOU
B ECONOMIC ENTITIES IN THE GROUP (CONTINUED)
(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss in control are accounted as equity transactions that is, as transactions with
the owners in their capacity as owners. For purchases from non-controlling interests, the difference between any consideration paid and the relevant
share of the carrying value of net assets of the subsidiary acquired is deducted from equity. For disposals to non-controlling interests, differences
between any proceeds received and the relevant share of non-controlling interest are also recognised in equity.
(c) Disposal of subsidiaries

When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the
change in carrying amount recognised in statement of income. The fair value is the initial carrying amount for the purposes of subsequently
accounting for the retained interest as an associate, joint venture or nancial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive income are reclassied to statement of income.
(d) Joint arrangements

Investments in joint arrangements are classied as either joint operations or joint ventures depending on the contractual rights and obligations each
investor has rather than the legal structure of the joint arrangement.
The Groups interests in joint ventures are accounted for in the consolidated Financial Statements by the equity method of accounting.
Equity accounting involves recognising the Groups share of the post acquisition results of the joint ventures in the statements of comprehensive
income and its share of post acquisition movements within reserves in reserves. The cumulative post acquisition movements are adjusted against
the cost of the investment and include goodwill on acquisition, net of accumulated impairment loss (if any). When the Groups share of losses in a
joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Groups
net investment in the joint ventures), the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of
the joint ventures.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Groups interest in the joint ventures.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
(e) Associates
The Group treats as associates, corporations, partnerships or other entities in which the Group exercises signicant inuence, but which it does not
control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Signicant inuence is the power to participate in
the nancial and operating policy decisions of the associates but not the power to exercise control over those policies. The Groups investment in
associates includes goodwill identied on acquisition, net of any accumulated impairment loss.
Investments in associates are accounted for in the consolidated Financial Statements by the equity method of accounting.
The Groups share of its associates post-acquisition prots or losses is recognised in the statement of incomes, and its share of post-acquisition
movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the
investment. When the Groups share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured
receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
The interest in an associate is the carrying amount of the investment in the associate under the equity method together with any long-term interests
that, in substance, form part of the Groups net investment in the associate. After the Groups interest is reduced to zero, additional losses are
provided for, and a liability is recognised, only to the extent that the investor has incurred legal or constructive obligations or made payments on
behalf of the associate. If the associate subsequently reports prots, the Group resumes recognising its share of those prots only after its share of
the prots equals the share of losses not recognised.
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ANNUAL REPORT 2014
B ECONOMIC ENTITIES IN THE GROUP (CONTINUED)
(e) Associates (Continued)

For any of the associates net assets changes, other than prot or loss or other comprehensive income and distributions received, the Groups policy
is to account for such changes to the statement of income.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Groups interest in the associates;
unrealised losses are also eliminated unless the transaction provides evidence on impairment of the asset transferred.
The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the
case, the group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and
recognises the amount adjacent to share of prot/(loss) of an associate in the statement of income.
If the ownership interest in an associate is reduced but signicant inuence is retained, only a proportionate share of the amount previously
recognised in the other comprehensive income is reclassied to statement of income where appropriate.
Dilution gains and losses arising in investment in associate are recognised in the statement of income.
(f) Interests in subsidiaries, joint arrangements and associates

In the Companys separate nancial statements, investments in subsidiaries, joint arrangements and associates are carried at cost less accumulated
impairment losses. On disposal of investments in subsidiaries, joint arrangements and associates, the difference between disposal proceeds and
the carrying amounts of the investments are recognised in statement of income.
C RECOGNITION OF INTEREST/PROFIT INCOME AND INTEREST/PROFIT EXPENSE
Interest income and expense for all interest-bearing nancial instruments are recognised within interest income and interest expense in the statement
of income using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a nancial asset or a nancial liability and of allocating the interest income
or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
throughout the expected life of the nancial instruments or, when appropriate, a shorter period to the net carrying amount of the nancial asset or nancial
liability. When calculating the effective interest rate, the Group takes into account all contractual terms of the nancial instrument and includes any fees
or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses.
Interest on impaired nancial assets is recognised using the rate of interest used to discount the future cash ows for the purpose of measuring the
impairment loss. A nancial asset or a group of nancial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a
result of one or more events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event (or events) has an
impact on the estimated future cash ows of the nancial asset or the group of nancial assets that can be reliably estimated.
Income from Islamic banking business is recognised on an accrual basis in accordance with the principles of Shariah.
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CIMB & YOU
D RECOGNITION OF FEES AND OTHER INCOME
Fees and commissions are recognised as income when all conditions precedent are fullled. Commitment fees for loans, advances and nancing that
are likely to be drawn down are deferred (together with related direct costs) and income which forms an integral part of the effective interest rate of a
nancial instrument is recognised as an adjustment to the effective interest rate on the nancial instrument.
Guarantee fees, portfolio management fees and income from asset management and securities services which are material are recognised as income
based on a time apportionment method.
Brokerage fees are recognised as income based on inception of such transactions.
Fees from advisory and corporate nance activities are recognised as income on completion of each stage of the engagement.
Dividends are recognised when the right to receive payment is established.
E FINANCIAL ASSETS
(a) Classification
The Group and the Company allocate their nancial assets into the following categories: nancial assets at fair value through prot or loss, loans
and receivables, nancial investments held-to-maturity and nancial investments available-for-sale. Management determines the classication of its
nancial instruments at initial recognition.
(i) Financial assets at fair value through prot or loss

Financial assets at fair value through prot or loss comprise of nancial assets held for trading and other nancial assets designated by the
Group and the Company as fair value through prot or loss upon initial recognition.
A nancial asset is classied as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near
term or if it is part of a portfolio of identied nancial instruments that are managed together and for which there is evidence of a recent actual
pattern of short-term prot-taking. Derivatives are also categorised as held for trading unless they are designated and effective as hedging
instruments.
(ii) Loans and receivables

Loans and receivables are non-derivative nancial assets with xed or determinable payments that are not quoted in an active market.
(iii) Financial investments held-to-maturity

Financial investments held-to-maturity are non-derivative instruments with xed or determinable payments and xed maturities that the Groups
and the Companys management have the positive intent and ability to hold to maturity. If the Group or the Company sells other than an
insignicant amount of nancial investments held-to-maturity, the entire category will be tainted and reclassied as nancial investments
available-for-sale.
(iv) Financial investments available-for-sale

Financial investments available-for-sale are those intended to be held for an indenite period of time, which may be sold in response to needs
for liquidity or changes in interest rates, exchange rates or equity prices or that are not classied as nancial assets at fair value through prot
or loss, loans and receivables and nancial investments held-to-maturity.
(b) Recognition and initial measurement

Regular purchases and sales of nancial assets are recognised on the trade date, the date on which the Group and the Company commence to
purchase or sell the asset. Interbank placements are recognised on settlement date. Financial assets are initially recognised at fair value plus
transaction costs for all nancial assets not carried at fair value through prot or loss. Transaction costs for securities carried at fair value through
prot or loss are taken directly to the statement of income.
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ANNUAL REPORT 2014
E FINANCIAL ASSETS (CONTINUED)
(c) Subsequent measurement

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

The Group and the Company may choose to reclassify a non-derivative nancial assets held for trading out of the held for trading category if the
nancial asset is no longer held for the purposes of selling in the near term. In addition, the Group and the Company may choose to reclassify
nancial assets that would meet the denition of loans and receivables out of the held for trading or available-for-sale categories if the Group and
the Company have the intention and ability to hold these nancial assets for the foreseeable future or until maturity at the date of reclassication.
Reclassications are made at the fair value at the date of the reclassication. The fair values of the securities become the new cost or amortised
cost as applicable, and no reversals of fair value gains or losses recorded before the reclassication date are subsequently made. The effective
interest rates for the securities reclassied to held-to-maturity category are determined at the reclassication date. Further changes in estimates of
future cash ows are recognised as an adjustment to the effective interest rates.
Any previous gain or loss on that asset that has been recognised in other comprehensive income shall be accounted for as follows:
(i) In the case of a nancial asset with a xed maturity, the gain or loss shall be amortised to statement of income over the remaining life of the
held-to-maturity investment using the effective interest method. Any difference between the new amortised cost and maturity amount shall
also be amortised over the remaining life of the nancial asset using the effective interest method, similar to the amortisation of a premium and
a discount. If the nancial asset is subsequently impaired, any gain or loss that has been recognised in other comprehensive income is
reclassied from equity to statement of income in accordance with E(c).
(ii) In the case of a nancial asset that does not have a xed maturity, the gain or loss shall be recognised in statement of income when the
nancial asset is sold or otherwise disposed of. If the nancial asset is subsequently impaired any previous gain or loss that has been
recognised in other comprehensive income is reclassied from equity to statement of income in accordance with E(c).
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CIMB & YOU
F FINANCIAL LIABILITIES
Financial liabilities are measured at amortised cost, except for trading liabilities and liabilities designated at fair value, which are held at fair value through
prot or loss. Financial liabilities are initially recognised at fair value less transaction costs for all nancial liabilities not carried at fair value through prot or
loss. Financial liabilities at fair value through prot or loss are initially recognised at fair value, and transaction costs are expensed in statement of income.
Financial liabilities are derecognised when extinguished.
(a) Financial liabilities at fair value through profit or loss

This category comprises two sub-categories: nancial liabilities classied as held for trading, and nancial liabilities designated at fair value through
prot or loss upon initial recognition.
A nancial liability is classied as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term
or if it is part of a portfolio of identied nancial instruments that are managed together and for which there is evidence of a recent actual pattern of
short-term prot-taking. Derivatives are also categorised as held for trading unless they are designated and effective as hedging instruments. The
specic Group and Company accounting policy on derivatives is detailed in Note Q.
The nancial liabilities measured at fair value through prot and loss upon initial recognition are trading derivatives and nancial liabilities designated
at fair value.
Financial instruments, other than those held for trading, are classied as nancial liabilities designated at fair value if they meet one or more of the
criteria set out below, and are so designated by management. The Group and the Company may designate nancial instruments at fair value when
the designation:
eliminates or signicantly reduces measurement or recognition inconsistencies that would otherwise arise from measuring nancial assets or
nancial liabilities, or recognising gains and losses on them, on different bases. Certain structured investments with embedded callable range
accrual swaps are designated by the Group under this criterion. The interest payable on these structured investments has been hedged with
trading derivatives. An accounting mismatch would arise if the structured investments were accounted for at amortised cost, because the
related derivatives are measured at fair value with changes in the fair value recognised in the statements of income. By designating the
structured investments at fair value, the movement in the fair value of the structured investments will also be recognised in the statement of
income.
applies to groups of nancial assets, nancial liabilities or combinations thereof that are managed, and their performance evaluated, on a fair
value basis in accordance with a documented risk management or investment strategy; and
relates to nancial instruments containing one or more embedded derivatives that signicantly modify the cash ows resulting from those
nancial instruments.
The fair value designation, once made, is irrevocable. Designated nancial liabilities are recognised when the Group and the Company enter into
the contractual provisions of the arrangements with counterparties, which is generally on trade date, and are normally derecognised when either
sold (assets) or extinguished (liabilities). Measurement is initially at fair value, with transaction costs taken to the statements of income. Subsequently,
the fair values are remeasured, and gains and losses from changes therein are recognised in the statements of income.
(b) Financial liabilities at amortised cost

Financial liabilities that are not classied as fair value through prot or loss fall into this category and are measured at amortised cost. The nancial
liabilities measured at amortised cost are deposits from customers, deposits and placements of banks and other nancial institutions, repurchase
agreements, bills and acceptances payable, sundry creditors, bonds and debentures, other borrowings, subordinated notes and redeemable
preference shares.
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ANNUAL REPORT 2014
G DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Financial assets are derecognised when the contractual rights to receive the cash ows from these assets have ceased to exist or the assets have been
transferred and substantially all the risks and rewards of ownership of the assets are also transferred (that is, if substantially all the risks and rewards have
not been transferred, the Group tests control to ensure that continuing involvement on the basis of any retained powers of control does not prevent
derecognition). Financial liabilities are derecognised when they have been redeemed or otherwise extinguished.
Collateral furnished by the Group under standard repurchase agreements transactions is not derecognised because the Group retains substantially all
the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
H OFFSETTING FINANCIAL INSTRUMENTS

Financial assets and liabilities are offset and the net amount reported in the statement of nancial position when there is legally enforceable right to offset
the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
I IMPAIRMENT OF FINANCIAL ASSETS
(a) Assets carried at amortised cost

A nancial asset or a group of nancial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one
or more events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event (or events) has an impact on
the estimated future cash ows of the nancial asset or the group of nancial assets that can be reliably estimated.
The criteria that the Group and the Company use to determine whether there is objective evidence of impairment loss include indications that the
borrower or a group of borrowers is experiencing signicant nancial difculty, the probability that they will enter bankruptcy or other nancial
reorganisation, default of delinquency in interest or principal payments and where observable data indicates that there is a measurable decrease in
the estimated future cash ows, such as changes in arrears or economic conditions that correlate with defaults.
The Group and the Company rst assess whether objective evidence of impairment exists individually for nancial assets that are individually
signicant, and individually or collectively for nancial assets that are not individually signicant. If the Group and the Company determine that no
objective evidence of impairment exists for an individually assessed nancial asset, whether signicant or not, it includes the asset in a group of
nancial assets with similar credit risk characteristics and collectively assesses them for impairment.
The amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash ows
discounted at the nancial assets original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance
account and the amount of the loss is recognised in the statement of income. If a loan or nancial investments held-to-maturity have a variable
interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Financial assets that have not been individually assessed are grouped together for portfolio impairment assessment. These nancial assets are
grouped according to their credit risk characteristics for the purposes of calculating an estimated collective loss. These characteristics are relevant
to the estimation of future cash ows for groups of such assets by being indicative of the debtors ability to pay all amounts due according to the
contractual terms of the assets being assessed. Future cash ows on a group of nancial assets that are collectively assessed for impairment are
estimated on the basis of historical loss experience for assets with credit risk characteristics similar to those in the group.
The methodology and assumptions used for estimating future cash ows are reviewed regularly by the Group and the Company to reduce any
differences between loss estimates and actual loss experience.
When a loan is uncollectible, it is written off against the related allowance for loan impairment. Such loans are written off after taking into consideration
the realisable value of collateral, if any, when in the judgement of the management, there is no prospect of recovery.
If, in a subsequent period, the amount of impairment losses decreases and the decrease can be related objectively to an event occurring after the
impairment was recognised (such as an improvement in the debtors credit rating), the previously recognised impairment loss is reversed by
adjusting the allowance account. The amount of the reversal is recognised in the statement of income.
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I IMPAIRMENT OF FINANCIAL ASSETS (CONTINUED)
(b) Assets classified as available-for-sale

The Group and the Company assess at each date of the statements of nancial position whether there is objective evidence that the nancial asset
is impaired.
For debt securities, the Group and the Company use criteria and measurement of impairment loss applicable for assets carried at amortised cost
above. If in a subsequent period, the fair value of a debt instrument classied as nancial investments available-for-sale increases and the increase
can be objectively related to an event occurring after the impairment loss was recognised in statement of income, the impairment loss is reversed
through statement of income.
In the case of equity instruments classied as nancial investments available-for-sale, in addition to the criteria for assets carried at amortised cost
above, a signicant or prolonged decline in the fair value of the security below its cost is considered in determining whether the securities are
impaired. If there is objective evidence that an impairment loss on nancial investments available-for-sale has incurred, the cumulative loss that has
been recognised directly in equity is removed from other comprehensive income and recognised in the statement of income. The amount of
cumulative loss that is reclassied to the statement of income is the difference between the acquisition cost and the current fair value, less any
impairment loss on that nancial asset previously recognised in statement of income. Impairment losses recognised in statement of income on
equity instruments are not reversed through the statement of income.
J SALE AND REPURCHASE AGREEMENTS
Securities purchased under resale agreements (reverse repurchase agreements) are securities which the Group had purchased with a commitment to
re-sell at future dates. The commitment to re-sell the securities is reected as an asset on the statements of nancial position.
Conversely, obligations on securities sold under repurchase agreements (repurchase agreements) are securities which the Group had sold from its
portfolio, with a commitment to repurchase at future dates. Such nancing transactions and the obligation to repurchase the securities are reected as
a liability on the statements of nancial position.
The difference between sale and repurchase price as well as purchase and resale price is treated as interest and accrued over the life of the resale/
repurchase agreement using the effective yield method.
K PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is
directly attributable to the acquisition of the items. Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benets associated with the item will ow to the Group and the Company and the cost of the
item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance costs are charged to the
statement of income during the nancial period in which they are incurred.
Freehold land and capital work-in-progress are not depreciated. Other property, plant and equipment are depreciated on a straight line basis to write off
the cost of the assets to their residual values over their estimated useful lives, summarised as follows:
Buildings on freehold land 40 years

Buildings on leasehold land 50 years or more 40 years or over the remaining period of the lease, whichever is shorter
Leasehold land 40-50 years or over the remaining period of the lease, whichever is shorter
Buildings on leasehold land less than 50 years 40-50 years or over the remaining period of the lease, whichever is shorter
Ofce equipment, furniture and xtures
ofce equipment 3-5 years
furniture and xtures 5-10 years
Renovations to rented premises 5 years or over the period of the tenancy, whichever is shorter
Computer equipment and software
servers and hardware 3-5 years
ATM machine 5-10 years
Computer equipment and software under lease 3 -5 years or over the period of the lease, whichever is shorter
Motor vehicles 5 years
General plant and machinery 5-8 years
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ANNUAL REPORT 2014
K PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Depreciation on capital work-in-progress commences when the assets are ready for their intended use.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Property, plant and equipment are reviewed for impairment at the end of each reporting period and whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is
written down to its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amounts and are included in non-interest income.
L INVESTMENT PROPERTIES
Investment properties, comprising principally land and ofce buildings, are held for long term rental yields or for capital appreciation or both, and are not
occupied by the Group and the Company.
Investment properties of the Company are stated at cost less accumulated depreciation and accumulated impairment loss. The freehold land is not
depreciated. The buildings on freehold land are depreciated on a straight line bases over their estimated useful lives of 33.3 years.
At the Group level, investment properties of the Company are classied as property, plant and equipment as the properties are rented out to an entity
within the Group.
Investment properties of the Group are stated at fair value, representing the open-market value determined annually by external valuers. Fair value is
based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specic asset. If this information is not
available, the Group uses alternative valuation methods such as recent prices on less active markets or discounted cash ow projections. Changes in
fair values are recorded in the statements of income as part of other income.
On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benets are expected from its disposal, it
shall be derecognised (eliminated from the statements of nancial position). The difference between the net disposal proceeds and the carrying amount
is recognised in statement of income in the period of the retirement or disposal.
M INTANGIBLE ASSETS
(a) Goodwill
Goodwill arising from business combination represents the excess of the cost of acquisition and the fair value of the Groups share of the net of
identiable assets of the acquired subsidiary. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the
entity sold.
Goodwill is allocated to cash-generating units (CGU) for the purpose of impairment testing. The allocation is made to those cash-generating units
or groups of cash-generating units that are expected to benet from the business combination in which goodwill arose, identied according to
operating segment.
Goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. The carrying
value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is
recognised immediately as an expense and is not subsequently reversed.
Goodwill on acquisitions of associates and joint arrangements respectively are included in investments in associates and joint arrangements. Such
goodwill is tested for impairment as part of the overall balance.
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M INTANGIBLE ASSETS (CONTINUED)
(b) Other intangible assets

Other intangible assets are measured at fair value. Other intangible assets include customer relationships, core deposits, computer software and
license and club debentures. Other intangible assets are initially recognised when they are separable or arise from contractual or other legal rights,
the cost can be measured reliably and, in the case of intangible assets not acquired in a business combination, where it is probable that future
economic benets attributable to the assets will ow from their use. The value of intangible assets which are acquired in a business combination is
generally determined using fair value at acquisition. Acquired computer software licences are capitalised on the basis of the costs incurred to
acquire and bring to use the specic software.
Intangible assets that have an indenite useful life, or are not yet ready for use, are tested for impairment annually. This impairment test may be
performed at any time during the year, provided it is performed at the same time every year. An intangible asset recognised during the current period
is tested before the end of the current year.
Intangible assets that have a nite useful life are stated at cost less accumulated amortisation and accumulated impairment losses, and are
amortised over their estimated useful lives.
Intangible assets are amortised over their nite useful lives as follows:
Customer relationships:
Credit card 12 years
Revolving credit 4 5 years
Overdraft 6 7 years
Trade nance 5 years
Core deposits 8 20 years
Computer software 3 15 years
Club debentures 10 years
N ASSETS PURCHASED UNDER LEASE
(a) Finance lease

Assets purchased under lease which in substance transfers the risks and benets of ownership of the assets to the Group or the Company are
capitalised under property, plant and equipment. The assets and the corresponding lease obligations are recorded at the lower of the present value
of the minimum lease payments or the fair value of the leased assets at the beginning of the lease term. Such leased assets are subject to
depreciation on the same basis as other property, plant and equipment.
Leases which do not meet such criteria are classied as operating lease and the related rentals are charged to statement of income.
(b) Operating lease

Leasehold land
Leasehold land that normally has an indenite economic life and title is not expected to pass to the lessee by the end of the lease term is treated
as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted as prepaid lease payments that are amortised
over the lease term in accordance with the pattern of benets provided.
Others
Leases of assets under which all the risks and benets of ownership are retained by the lessor are classied as operating leases. Payments made
under operating leases are charged to the statements of income on a straight line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is
recognised as an expense in the period in which termination takes place.
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ANNUAL REPORT 2014
O ASSETS SOLD UNDER LEASE
(a) Finance lease

When assets are sold under a nance lease, the present value of the lease payments is recognised as a debtor. The difference between the gross
debtor and the present value of the debtor is recognised as unearned nance income. Lease income is recognised over the term of the lease using
the net investment method, which reects a constant periodic rate of return.
(b) Operating lease

Assets leased out under operating leases are included in property, plant and equipment in the statements of nancial position. They are depreciated
over their expected useful lives on a basis consistent with similar property, plant and equipment. Rental income is recognised on a straight line basis
over the lease term.
P BILLS AND ACCEPTANCES PAYABLE
Bills and acceptances payable represent the Groups own bills and acceptances rediscounted and outstanding in the market.
Q DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair
value. Fair values are obtained from quoted market prices in active markets, including recent market transactions, and valuation techniques, including
discounted cash ow models and option pricing models, as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities
when fair value is negative. Changes in the fair value of any derivatives that do not qualify for hedge accounting are recognised immediately in the
statement of income.
The best evidence of fair value of a derivative at initial recognition is the transaction price (i.e. the fair value of the consideration given or received) unless
the fair value of the instrument is evidenced by comparison with other observable current market transactions in the same instrument (i.e. without
modication or repackaging) or based on a valuation technique whose variables include only data from observable markets. When such evidence exists,
the Group and the Company recognise the fair value of derivatives in statement of income immediately.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the
nature of the item being hedged. The Group and the Company designate certain derivatives as either: (1) hedges of the fair value of recognised assets
or liabilities or rm commitments (fair value hedge) or (2) hedges of future cash ows attributable to a recognised asset or liability, or a highly probable
forecasted transaction (cash ow hedge) or (3) hedges of a net investment in a foreign operation (net investment hedge). Hedge accounting is used for
derivatives designated in this way provided certain criteria are met.
At the inception of the transaction, the Group and the Company document the relationship between hedging instruments and hedged items, as well as
their risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values
or cash ows of hedged items.
(a) Fair value hedge

Changes in the fair value of derivatives that are designated and qualied as fair value hedges are recorded in the statement of income, together with
any changes in the fair value of the hedged assets or liabilities that are attributable to the hedged risk.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item is amortised to the
statement of income based on recalculated effective interest rate method over the period to maturity. The adjustment to the carrying amount of a
hedged equity security remains as part of the carrying amount until the disposal of the equity security.
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Q DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING (CONTINUED)
(b) Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualied as cash ow hedges are recognised in equity. The
gain and loss relating to the ineffective portion is recognised immediately in the statement of income. Amounts accumulated in equity are recycled
to the statement of income in the periods in which the hedged item will affect the statement of income.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss
existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the statement of income.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the
(c) Net investment hedge

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

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for
hedge accounting are recognised immediately in the statement of income.
R CURRENCY TRANSLATIONS
(a) Functional and presentation currency

Items included in the Financial Statements of each of the Groups entities are measured using the currency of the primary economic environment in
which the entity operates (the functional currency). The consolidated Financial Statements are presented in Ringgit Malaysia, which is the
Companys functional and presentation currency.
(b) Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the statement of income, except when deferred in equity as qualifying cash
ow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classied as nancial investments available-for-sale are analysed
between translation differences resulting from changes in the amortised cost of the security and other changes in the carrying amount of the
security. Translation differences related to changes in the amortised cost are recognised in statement of income, and other changes in the carrying
amount are recognised in equity.
Translation differences on non-monetary nancial assets and liabilities, such as equity instruments held at fair value through prot or loss, are
reported as part of the fair value gain or loss. Translation differences on non-monetary nancial assets such as equities classied as available-for-
sale are included in the revaluation reserve-nancial investments available-for-sale in equity.
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ANNUAL REPORT 2014
R CURRENCY TRANSLATIONS (CONTINUED)
(c) Group companies

The results and nancial position of all the Group entities (none of which has the currency of a hyperinationary economy) that have a functional
currency different from the presentation currency are translated into the presentation currency as follows:
assets and liabilities for each statements of nancial position presented are translated at the closing rate at the date of the statements of nancial
position;
income and expenses for each statement of income are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the
rate on the dates of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other
currency instruments designated as hedges of such investments, are taken to shareholders equity. When a foreign operation is partially disposed
of or sold, exchange differences that were recorded in equity are recognised in the statement of income as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisitions of a foreign entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate. Exchange differences arising are recognised in other comprehensive income.
S INCOME AND DEFERRED TAXES
The tax expense for the period comprises current and deferred tax. Tax is recognised in statement of income, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity,
respectively.
Current tax expense is determined according to the tax laws of each jurisdiction in which the Group operates and includes all taxes based upon the
taxable prots.
Deferred income tax is recognised in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the Financial Statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable prot or loss.
Deferred tax assets are recognised to the extent that it is probable that future taxable prots will be available against which the temporary differences and
unused tax losses can be utilised.
Deferred income tax is recognised on temporary differences arising on investments in subsidiaries, associates and joint ventures except where the timing
of the reversal of the temporary difference can be controlled by the Group and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred income tax related to the fair value re-measurement of nancial investments available-for-sale, which is charged or credited directly to equity, is
also credited or charged directly to equity and is subsequently recognised in the statement of income together with deferred gain or loss.
Deferred income tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the statements of nancial position
date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred and income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities
and when the deferred income tax assets and liabilities relate to taxes levied by the same taxation authority on either the taxable entity or different taxable
entities where there is an intention to settle the balances on a net basis.
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T SHARE CAPITAL
(a) Classification
Ordinary shares and non-redeemable preference shares with discretionary dividends are classied as equity. Other shares are classied as equity
and/or liability according to the economic substance of the particular instrument. Distributions to holders of a nancial instrument classied as an
equity instrument are charged directly to equity.
(b) Share issue costs

Incremental external costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds.
(c) Dividends
Dividends on ordinary shares and non-redeemable preference share with discretionary dividends are recognised as a liability when the shareholders
right to receive the dividend is established.
(d) Repurchase, disposal and reissue of share capital (treasury shares)

Where any group company purchases the Companys equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental costs (net of income taxes) is deducted from equity attributable to the Companys equity holders until the shares are cancelled or
reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction
costs and the related income tax effects, is included in equity attributable to the companys equity holders.
U EMPLOYEE BENEFITS
(a) Short-term employee benefits

The Group and the Company recognise a liability and an expense for bonuses. The Group and the Company recognise a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.
Wages, salaries, paid annual leave and sick leave, bonuses, and non-monetary benets are accrued in the period in which the associated services
are rendered by employees of the Group and the Company.
(b) Post employment benefits

The Group and the Company have various post employment benet schemes. These benets plans are either dened contribution or dened
benet plans.
Dened contribution plans

A dened contribution plan is a pension plan under which the Group and the Company pay xed contributions into a separate entity (a fund) and
will have no legal or constructive obligations to pay further contributions if the fund does not hold sufcient assets to pay all employee benets
relating to employee service in the current and prior periods.
The Groups and the Companys contributions to dened contribution plans are charged to the statement of income. Once the contributions have
been paid, the Group and the Company have no further payment obligations. Prepaid contributions are recognised as an asset to the extent that
a cash refund or a reduction in the future payments is available.
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U EMPLOYEE BENEFITS (CONTINUED)
(b) Post employment benefits (continued)

Dened benet plans
Dened benet plan is a pension plan that is not a dened contribution plan. Dened benet plans dene an amount of pension benet that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The dened benet liability recognised in the statement of nancial position is the present value of the dened benet obligation at the end of the
reporting period less the fair value of plan assets, together with adjustments for actuarial gains/losses and unrecognised past service cost.
The Group determines the present value of the dened benet obligation and the fair value of any plan assets with sufcient regularity such that the
amounts recognised in the nancial statements do not differ materially from the amounts that would be determined at the end of the reporting
period.
The dened benet obligation, calculated using the projected credit unit method, is determined by independent actuaries, by discounting estimated
future cash outows using market rates on government bonds that are denominated in the currency in which the benets will be paid, and that have
terms to maturity approximating to the terms of the related pension obligation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in prot or loss.
(c) Other long term employee benefits

The cost of long term employee benets (for example, long term service leave) is accrued to match the rendering of the services by the employees
concerned using a basis similar to that for dened benet plans for the liability which is not expected to be settled within 12 months, except that
remeasurements are recognised immediately in prot or loss.
(d) Termination benefits

Termination benets are payable whenever an employees employment is terminated before the normal retirement date or whenever an employee
accepts voluntary redundancy in exchange for these benets. The Group and the Company recognise termination benets at the earlier of the
following dates: (a) when the Group can no longer withdraw the offer of those benets; and (b) when the entity recognises costs for are structuring
that is within the scope of MFRS 137 and involves the payment of termination benets. In the case of an offer made to encourage voluntary
redundancy, the termination benets are measured based on the number of employees expected to accept the offer. Benets falling due more than
12 months after the end of the reporting period are discounted to their present value.
(e) Bonus plans

The Group recognises a liability and an expense for bonuses, based on a formula that takes into consideration the prot attributable to the
Companys shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice
that has created a constructive obligation.
(f) Share-based compensation benefits

Employee Ownership Plan (EOP)
The Group operates an equity-settled, share-based compensation plan, where ordinary shares of the Company are purchased from the market at
market value and awarded to the eligible executive employees.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance
and/or service conditions are fullled, ending on the date on which the award is fully released to relevant employees (the nal release date). The
fair value of the employee services received in exchange for the grant of the shares is recognised as an expense in statement of income over the
period of release, based on the best available estimate of the number of shares expected to be released at each of the relevant release date. On
the nal release date, the estimate will be revised to equal the actual number of shares that are ultimately released to the employees.
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V IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets that have an indenite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation
are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of
an assets fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identiable cash ows (cash-generating units). Non nancial assets other than goodwill that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.
The impairment loss is charged to the statement of income unless it reverses a previous revaluation in which case it is charged to the revaluation surplus.
Impairment losses on goodwill are not reversed. In respect of other assets, any subsequent increase in recoverable amount is recognised in the
statements of comprehensive income unless it reverses an impairment loss on a revalued asset in which case it is taken to revaluation surplus.
W FORECLOSED PROPERTIES
Foreclosed properties are stated at the lower of carrying amount and fair value less costs to sell and reported within Other Assets.
X PROVISIONS
Provisions are recognised by the Group and the Company when all of the following conditions have been met:
(i) the Group and the Company have a present legal or constructive obligation as a result of past events;
(ii) it is probable that an outow of resources to settle the obligation will be required; and
(iii) a reliable estimate of the amount of obligation can be made.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outow will be required in settlement is determined by considering the class of
obligations as a whole. A provision is recognised even if the likelihood of an outow with respect to any one item included in the same class of obligations
may be small.
Provisions are measured at the present values of the expenditures expected to be required to settle the obligation using a pre-tax rate that reects current
market assessments of the time value of money and risks specic to the obligation. The increase in the provision due to passage of time is recognised
as interest expense.
Y FINANCIAL GUARANTEE CONTRACTS

Financial guarantee contracts are contracts that require the issuer to make specied payments to reimburse the holder for a loss it incurs because a
specied debtor fails to make payments when due, in accordance with the terms of a debt instrument. Such nancial guarantees are given to banks,
nancial institutions and other bodies on behalf of customers to secure loans, overdrafts and other banking facilities.
Financial guarantees are initially recognised in the Financial Statements at fair value on the date the guarantee was given. The guarantees are agreed on
arms length terms and the value of the premium agreed corresponds to the value of the guarantee obligation. No receivable for the future premiums is
recognised. Subsequent to initial recognition, the Groups liabilities under such guarantees are measured at the higher of the amount determined in
accordance with MFRS 137 Provision, Contingent Liabilities and Contingent Assets, and the amount initially recognised less, when appropriate,
accumulative amortisation recognised in accordance with MFRS 118 Revenue. These estimates are determined based on experience of similar
transactions and history of past losses, supplemented by the judgment of management. The fee income earned is recognised on a straight-line basis
over the life of the guarantee.
Any increase in the liability relating to guarantees is reported in the statement of income within overheads.
057
ANNUAL REPORT 2014
Z CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash in hand, bank balances and deposit placements maturing less than one month.
AA SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating
decision-maker is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Group has
determined the Group Management Committee as its chief operating decision-maker.
Intra-segment revenue and costs are eliminated at head ofce. Income and expenses directly associated with each segment are included in determining
business segment performance.
AB CONTINGENT ASSETS AND CONTINGENT LIABILITIES
Contingent assets arise from unplanned or other unexpected events that give rise to the possibility of an inow of economic benets to the Group. As
this may result in the recognition of income that may never be realised, contingent assets are not recognised in the Groups nancial statements.
Contingent liabilities, which include certain guarantees and letters of credit pledged as collateral security, are possible obligations that arise from past
events whose existence will be conrmed only by the occurrence, or non-occurrence, of one or more uncertain future events not wholly within the control
of the Group; or are present obligations that have arisen from past events but are not recognised because it is not probable that settlement will require
the outow of economic benets, or because the amount of the obligations cannot be reliably measured.
Contingent liabilities are not recognised in the Financial Statements but are disclosed unless the probability of settlement is remote.
AC NON-CURRENT ASSETS/DISPOSAL GROUPS HELD FOR SALE
Non-current assets/disposal groups are classied as assets held for sale and stated at the lower of carrying amount and fair value less cost to sell if their
carrying amount is recovered principally through a sale transaction rather than through continuing use.
AD TRUST ACTIVITIES
The Group acts as trustees and in other duciary capabilities that result in holding or placing of assets on behalf of individuals, trust and other institutions.
These assets and income arising thereon are excluded from the Financial Statements, as they are not assets of the Group.
058
CIMB & YOU
NOTES TO THE FINANCIAL STATEMENTS for the nancial year ended 31 December 2014
1 GENERAL INFORMATION
The principal activity of the Company is investment holding. The principal activities of the signicant subsidiaries as set out in Note 12 to the Financial
Statements, consist of commercial banking, investment banking, Islamic banking, offshore banking, debt factoring, trustee and nominee services, property
ownership and management, management of unit trust funds and fund management business, stock and sharebroking and the provision of other related
nancial services. There was no signicant change in the nature of these activities during the nancial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main Board of the Bursa Malaysia Securities
Berhad.
The address of the registered ofce and principal place of business of the Company is Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur
Sentral, 50470 Kuala Lumpur, Malaysia.
2 CASH AND SHORT-TERM FUNDS
The Group The Company

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Cash and balances with banks and other nancial institutions 12,972,421 10,732,954 1,215 5,032
Money at call and deposit placements maturing within one month 20,490,396 22,945,928 1,862,859 64,541
33,462,817 33,678,882 1,864,074 69,573
(i) Included in the Groups cash and short-term funds is non-interest bearing statutory deposits of a foreign subsidiary of RM4,127,783,000 (2013:
RM3,741,377,000) maintained with Bank Indonesia in compliance with their applicable legislation.
(ii) Monies held in trust in relation to the Groups stockbroking business:
The Group
2014 2013
RM000 RM000
Remisiers trust balances 32,376 30,429
3 DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS
The Group
2014 2013
RM000 RM000
Licensed banks 3,642,570 3,143,364

Licensed investment banks 119,220 17,010
Bank Negara Malaysia and other central banks 419,241 543,990
Other nancial institutions 57,957 84,655
4,238,988 3,789,019
059
ANNUAL REPORT 2014
4 FINANCIAL ASSETS HELD FOR TRADING
The Group
2014 2013
RM000 RM000
Money market instruments:

Unquoted:
Malaysian Government securities 676,023 422,188

Cagamas bonds 9,970 14,891
Malaysian Government treasury bills 138,038 75,075
Bank Negara Malaysia monetary notes 3,662,375 3,638,918
Negotiable instruments of deposit 2,745,907 1,874,343
Bankers acceptances and Islamic accepted bills 121,197 345,728
Credit-linked notes 49,347
Commercial papers 151,700 362,189
Other Government's securities 5,081,737 4,197,517
Government investment issues 151,724 106,451
12,738,671 11,086,647
Quoted securities:
In Malaysia
Shares 1,581,737 1,533,392
Outside Malaysia
Shares 1,566,627 114,456

Private and Islamic debt securities 478,355 325,660
Other Government bonds 760,313 1,100,785
Bank Indonesia certicates 546,404
Investment linked funds 547,669 497,482
4,934,701 4,118,179
Unquoted securities:
In Malaysia
Private and Islamic debt securities 2,540,888 5,324,359

Shares 6,716 6,716
Outside Malaysia

Private equity funds 125,965 66,332
Unit trust 9,466 9,393
6,130,399 8,198,454
Total nancial assets held for trading 23,803,771 23,403,280
060
CIMB & YOU
5 FINANCIAL INVESTMENTS AVAILABLE-FOR-SALE
The Group
2014 2013
RM000 RM000

Unquoted:
Malaysian Government Securities 527,247 621,477

Khazanah bonds 553,937 322,874
Other Government securities 261,407 254,035
Other Government treasury bills 72,335 27,052
Government investment issues 2,519,145 2,518,856
Malaysian Government Sukuk 19,750 34,793
Commercial papers 74,805
4,176,787 4,018,822
Quoted securities:
In Malaysia
Shares 135,882 221,771

Unit trusts 1,534 163,834
Outside Malaysia
Shares 83,154 27
Other Government bonds 5,116,797 4,611,523
Unit trusts 89,695 86,798
7,198,692 6,670,441
In Malaysia

Shares 1,083,030 1,080,282
Loan stocks 10,433 10,433
Property funds 183 189
Outside Malaysia
Shares 50,722 51,720

Private equity and unit trust funds 615,448 384,807
21,174,292 19,912,609
32,549,771 30,601,872
061
ANNUAL REPORT 2014
5 FINANCIAL INVESTMENTS AVAILABLE-FOR-SALE (CONTINUED)
The Group
2014 2013
RM000 RM000
Allowance for impairment losses:
Private debt securities (64,924) (70,743)

Private equity funds (68,420) (29,493)
Quoted shares (15,988) (15,988)
Quoted bonds (5,565) (5,650)
Unquoted shares (97,528) (135,121)
Unit trusts (391) (386)
Loan stocks (10,433) (10,433)
(263,249) (267,814)
32,286,522 30,334,058
Included in nancial investments available-for-sale of the Group are money market instruments and securities in the form of unit trusts managed by CIMB
Principal Asset Management Berhad on behalf of the Group amounting to RM4,536 million (2013: RM4,083 million).
The table below shows the movements in allowance for impairment losses during the nancial year for the Group:
The Group
2014 2013
RM000 RM000
At 1 January 267,814 288,034

Net allowance made during the nancial year 34,715 41,568
Disposal of securities (40,321) (58,976)
Exchange uctuation 1,041 (2,812)
At 31 December 263,249 267,814
062
CIMB & YOU
6 FINANCIAL INVESTMENTS HELD-TO-MATURITY
The Group
2014 2013
RM000 RM000

Unquoted:
Malaysian Government Securities 1,116,365 802,446

Other government securities 796,713 780,810
Other government treasury bills 17,170 16,830
Malaysian Government investment 3,091,812 808,104
Bank Negara Malaysia monetary notes 9,732 9,845
Khazanah bonds 245,369 66,736
5,478,237 2,645,768
Quoted securities:
Outside Malaysia
Private debt securities 2,742,483 1,930,753

Islamic bonds 122,495 6,789
Other Government bonds 1,059,133 501,824
Bank Indonesia certicates 158,898 155,219
4,083,009 2,594,585
In Malaysia

7,652,932 4,506,493
Outside Malaysia
18,289,474 10,862,881
Accretion of discount net of amortisation of premium 4,876 (8,516)

Less: Allowance for impairment losses (32,789) (32,872)
18,261,561 10,821,493
In 2014, included in nancial investments held-to-maturity of the Group are money market instruments and securities in the form of unit trusts managed by
CIMB Principal Asset Management Berhad on behalf of the Group amounting to RM932 million.
The Group reclassied previously held nancial investments available-to-sale to nancial investments held-to-maturity. Given the long term nature of the
holdings, the bonds were reclassied from nancial investments available-to-sale to nancial investments held-to-maturity as part of the Group's Asset
Liability Management. It reects the Groups positive intent and ability to hold them until maturity. The bonds were transferred at the prevailing mark-to-
market prices.
The fair value and the carrying amount of the nancial investments and the revaluation reserve nancial investments available-for-sale at the date of
reclassication is RM659,540,000 (2013: RM774,913,000) and RM659,667,000 (2013: RM776,148,000) and RM127,000 (2013: RM1,235,000)
respectively.
063
ANNUAL REPORT 2014
6 FINANCIAL INVESTMENTS HELD-TO-MATURITY (CONTINUED)
The fair value and carrying value as at 31 December 2014 are RM1,339,000,000 (2013: RM764, 000,000) and RM1,344,000,000 (2013: RM767,000,000)
respectively. As at 31 December 2014, the remaining unamortised revaluation reserve-nancial investments available-for-sale amounting to RM1,209,000
(2013: RM1,182,000).
The fair values losses that would have been recognised in other comprehensive income if the nancial investments has not been reclassied is RM7,124,000
(2013: RM2,618,000).
Included in the nancial investments held-to-maturity of the Group as at 31 December 2014 are 10-year promissory notes of THB9 million (2013: THB9
million) maturing between 2014 to 2015. The promissory notes were received from Thai Asset Management Corporation (TAMC) for settlement of
impaired loans transferred by CIMB Thai to TAMC. Such promissory notes are non-transferable, bear interest at the average deposit rate of 5 major banks
in Thailand and availed by the Financial Institutions Development Fund. As part of the agreement to transfer the impaired loans to TAMC, CIMB Thai has a
gain and loss sharing arrangement with TAMC arising from the recovery of the impaired loans. During the previous nancial year, CIMB Bank Thai has
recognised a gain of approximately RM113 million arising from the sharing arrangement.
The table below shows the movements in allowance for impairment losses during the nancial year for the Group:
The Group
2014 2013
RM000 RM000
At 1 January 32,872 41,329

Allowance written back during the nancial year (338) (2,056)
Disposal of securities (5,408)
Exchange uctuation 255 (993)
At 31 December 32,789 32,872
7 DERIVATIVE FINANCIAL INSTRUMENTS
The following tables summarise the contractual or underlying principal amounts of trading derivatives and nancial instruments held for hedging purposes.
The principal or contractual amounts of these instruments reect the volume of transactions outstanding as at statements of nancial position date, and
do not represent amounts at risk.
Trading derivative nancial instruments are revalued on a gross position basis and the unrealised gains or losses are reected in Derivative Financial
Instruments Assets and Liabilities respectively.
064
CIMB & YOU
7 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Principal Fair values Principal Fair values
amount Assets Liabilities amount Assets Liabilities
RM000 RM000 RM000 RM000 RM000 RM000
2014
Trading derivatives
Foreign exchange derivative

Currency forwards 20,681,855 356,939 (357,014)
Up to 1 year 17,560,152 306,288 (153,902)

More than 1 year to 3 years 1,916,948 49,694 (71,808)
More than 3 years 1,204,755 957 (131,304)
Currency swaps 142,878,690 1,304,368 (1,301,463)
Up to 1 year 141,722,647 1,229,142 (1,292,228)

More than 1 year to 3 years 846,165 46,244 (6,942)
More than 3 years 309,878 28,982 (2,293)
Currency spots 6,177,249 2,995 (9,857)
Up to 1 year 6,177,249 2,995 (9,857)
Currency options 5,317,174 47,724 (42,272)
Up to 1 year 4,645,415 34,516 (29,679)

More than 3 years 183,206 5,133 (4,520)
Cross currency interest rate swaps 46,562,720 1,649,042 (1,663,874)
Up to 1 year 10,055,874 151,249 (347,397)

More than 3 years 19,964,479 857,485 (683,818)
221,617,688 3,361,068 (3,374,480)
Interest rate derivatives

Interest rate swaps 336,177,615 2,134,460 (1,734,357) 500,000 478
Up to 1 year 119,108,017 108,215 (123,630)

More than 1 year to 3 years 108,492,608 510,567 (488,832) 500,000 478
More than 3 years 108,576,990 1,515,678 (1,121,895)
Interest rate futures 1,640,898 2,096 (180)
Up to 1 year 1,450,968 1,885 (180)

More than 1 year to 3 years 189,930 211
Interest rate options 456,065 1,222 (7,665)
Up to 1 year 351,298 964 (6,396)

More than 1 year to 3 years 104,767 258 (1,269)
338,274,578 2,137,778 (1,742,202) 500,000 478
065
ANNUAL REPORT 2014

RM000 RM000 RM000 RM000 RM000 RM000
2014
Equity related derivatives

Equity futures 1,367,538 8,795 (14,647)
Up to 1 year 1,367,538 8,795 (14,647)
Equity options 7,114,019 233,718 (955,892)
Up to 1 year 4,234,877 55,788 (395,595)

More than 3 years 1,024,216 164,194 (30,974)
Equity swaps 1,070,726 105,169 (28,543)
Up to 1 year 64,466 12,631

More than 3 years 589,668 27,221 (9,115)
9,552,283 347,682 (999,082)

Commodity related derivatives
Commodity options 491,457 111,059 (22,839)
Up to 1 year 315,601 9,499 (9,499)

Commodity swaps 2,557,153 1,020,245 (1,014,696)
Up to 1 year 2,198,926 569,074 (567,433)

Commodity futures 10,656 34 (219)
Less than 1 year 10,656 34 (219)
3,059,266 1,131,338 (1,037,754)
Credit related contract

Credit default swaps 5,336,170 58,510 (76,765)
Up to 1 year 1,164,049 2,658 (3,431)

More than 3 years 1,245,953 7,841 (13,441)
066
CIMB & YOU

RM000 RM000 RM000 RM000 RM000 RM000
2014
Hedging derivatives
Interest rate swaps 21,394,899 90,151 (261,556)
Up to 1 year 1,459,768 33,704 (9,288)

More than 3 years 13,099,934 47,593 (224,464)
Currency forward 18,055 (53)
Up to 1 year 18,055 (53)
Currency swaps 5,054,260 36,426 (141,369)
Up to 1 year 5,054,260 36,426 (141,369)
Cross currency interest rate swaps 3,483,815 19,806 (79,533)
Up to 1 year 162,380 1,436 (4,403)

More than 3 years 1,217,581 2,509 (35,259)
29,951,029 146,383 (482,511)
Total derivative assets/(liabilities) 607,791,014 7,182,759 (7,712,794) 500,000 478
067
ANNUAL REPORT 2014

RM000 RM000 RM000 RM000 RM000 RM000
Restated Restated Restated
2013
Trading derivatives
Foreign exchange derivatives

Up to 1 year 12,363,170 200,649 (132,059)

More than 3 years 2,087,297 18,334 (82,273)
Currency swaps 71,742,204 877,249 (942,586)
Up to 1 year 70,957,502 834,915 (936,132)

More than 3 years 273,260 20,523 (2,526)
Currency spots 7,288,436 6,317 (12,801)
Up to 1 year 7,288,436 6,317 (12,801)
Currency options 4,339,443 97,774 (88,128)
Up to 1 year 3,363,279 31,849 (24,965)

More than 3 years 455,543 53,496 (50,739)
Cross currency interest rate swaps 33,750,246 1,098,021 (1,043,097)
Up to 1 year 3,956,556 100,069 (144,281)

More than 3 years 18,416,591 797,215 (518,728)
132,697,880 2,317,693 (2,331,726)
Interest rate derivatives

Interest rate swaps 266,135,599 2,062,009 (1,541,162) 500,000 3,940
Up to 1 year 71,340,826 96,482 (109,312)

More than 1 year to 3 years 86,434,963 411,848 (364,595) 500,000 3,940
More than 3 years 108,359,810 1,553,679 (1,067,255)
Interest rate futures 4,652,882 12,418 (199)
Up to 1 year 3,734,506 10,901 (162)

More than 1 year to 3 years 918,376 1,517 (37)
Interest rate options 751,272 1,701 (7,776)
Up to 1 year 510,866 108 (6,565)

271,539,753 2,076,128 (1,549,137) 500,000 3,940
068
CIMB & YOU

RM000 RM000 RM000 RM000 RM000 RM000
Restated Restated Restated
2013
Equity related derivatives

Index futures 43,473 (755)
Up to 1 year 43,473 (755)
Equity options 7,293,279 103,031 (1,401,945)
Up to 1 year 2,647,550 59,227 (823,089)

More than 3 years 2,662,462 28,492 (37,393)
Equity swaps 811,641 17,152 (172,288)
up to 1 year 115,944 8,935 (140,632)

More than 3 years 633,835 3,626 (3,636)
8,148,393 120,183 (1,574,988)

Commodity related derivatives
Commodity options 238,781 158,512 (48,376)
Up to 1 year 73,965 1,086 (944)

More than 3 years 87,512 47,657 (13,936)
Commodity swaps 1,961,518 106,882 (105,681)
Up to 1 year 1,850,789 79,803 (79,308)

More than 3 years 7,071 6,119 (6,119)
2,200,299 265,394 (154,057)
Credit related contract

Credit default swaps 7,705,463 38,265 (89,176)
Up to 1 year 3,144,871 1,493 (63,846)

More than 3 years 2,381,302 21,041 (14,789)
069
ANNUAL REPORT 2014

RM000 RM000 RM000 RM000 RM000 RM000
2013
Hedging derivatives
Interest rate swaps 19,358,750 183,197 (219,736)
Up to 1 year 21,358 41 (55)

More than 3 years 15,394,662 106,059 (194,671)
Currency forward 190,863 (4,646)
Up to 1 year 190,863 (4,646)
Currency swaps 3,404,360 14,589 (42,302)
Up to 1 year 3,404,360 14,589 (42,302)
Cross currency interest rate swaps 2,224,201 5,004 (43,840)
up to 1 year 326,652 (19,187)

More than 1 year to 3 years 1,380,496 414 (4,918)
More than 3 years 517,053 4,590 (19,735)
25,178,174 202,790 (310,524)
Total derivative assets/(liabilities) 447,469,962 5,020,453 (6,009,608) 500,000 3,940
(i) Fair value hedges
Fair value hedges are used by the Group and the Company to protect it against the changes in fair value of nancial assets and nancial liabilities due
to movements in market interest rates and foreign exchanges rates. The Group and the Company use non-derivatives nancial liability, interest rate
swaps and cross-currency interest rate swaps to hedge against interest rate risk and foreign exchange risk of loans, subordinated obligations,
negotiable instruments of deposits issued, bonds and investment in subsidiary. For designated and qualifying fair value hedges, the changes in fair
value of hedging instrument and hedged item in relation to the hedged risk are recognised in the statement of income. If the hedge relationship is
terminated, the cumulative adjustment to the carrying amount of the hedged item is amortised in the statement of income based on recalculated
effective interest rate over the residual period to maturity, unless the hedged item has been derecognised, in which case, it is released to the statement
of income immediately.
Included in the net non-interest income is the net gains and losses arising from fair value hedges during the nancial year as follows:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
(Loss)/Gain on hedging instruments* (42,362) 75,671 (53,865) (869)

Gain/(Loss) on the hedged items attributable to the hedged risk 38,124 (121,507) 53,865 (2,663)
* Hedging instrument includes non-derivative nancial liabilities used to hedge foreign exchange risk from investment in subsidiary.
070
CIMB & YOU
(ii) Net investment hedge
Currency swaps and non-derivative nancial liabilities are used to hedge the Groups exposure to foreign exchange risk on net investments in foreign
operations. Gains or losses on retranslation of the currency swaps and non-derivatives nancial instruments are transferred to equity to offset against
any gains or losses on translation of the net investment in foreign operations. The fair value changes of the hedging instruments attributable to the risk
not designated as hedged in the hedging relationship was recognised in the statement of income during the year for the Group of RM49,831,495
(2013: RM33,607,842). No amounts were withdrawn from equity during the nancial year as there was no disposal of foreign operations.
(iii) Cash flows hedge
Cash ow hedges are used by the Group to protect against exposure to variability in future cash ows attributable to movements in foreign exchange
rates of nancial assets and nancial liabilities. The Group hedges cash ows from held-to-maturity debt securities against foreign exchange risk using
currency swaps. During the nancial year ended 31 December 2012, the Group has ceased cash ow hedge accounting. The cumulative gain
remaining in equity as at 31 December 2014 is RM84,204 (2013: RM134,657).
The Group also hedge nancial investment available-for-sale, senior bond issued and interbranch lending against foreign exchange and interest rate
risks by using cross currency interest rate swaps. The notional amount of the outstanding cross currency interest rate swaps as at 31 December 2014
was RM2,134,332,810 (2013: RM1,436,275,900). Gains and losses of cross currency interest rate swaps recognised in the hedging reserve will be
reclassied from equity to statement of income when the hedged cash ows affect prot or loss. Total loss of RM116,689 (2013: gain of RM1,855,500)
was recognised in the statement of income for the nancial year ended 31 December 2014 due to hedge ineffectiveness from cash ow hedges.
Table below shows the periods when the hedged cash ows are expected to occur and when they are expected to affect prot or loss as at 31
December 2014:
The Group
Up to 1 > 1-3 > 3-6 > 6-12 > 1-5
month months months months years
RM000 RM000 RM000 RM000 RM000
As at 31 December 2014
Cash inows (assets) 1,152 8,202 6,819 75,067 2,255,427

Cash outows (liabilities) (813) (1,037) (1,886) (353,931)
Net cash inows 1,152 7,389 5,782 73,181 1,901,496
As at 31 December 2013
Cash inows (assets) 657 5,768 3,272 10,249 1,373,029

Cash outows (liabilities) (841) (1,156) (2,211) (10,102) (1,160,707)
Net cash (outows)/inows (184) 4,612 1,061 147 212,322
071
ANNUAL REPORT 2014
8 LOANS, ADVANCES AND FINANCING
(i) By type

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Overdrafts 5,596,931 5,659,427

Term loans/nancing
Housing loans/nancing 64,424,328 57,246,140
Syndicated term loans 14,610,622 13,911,828
Hire purchase receivables 19,220,193 17,747,485
Lease receivables 111,666 142,147
Factoring receivables 25,529 22,312
Other term loans/nancing 96,324,632 86,032,550
Bills receivable 10,778,037 9,239,224
Trust receipts 1,395,282 2,077,961
Claims on customers under acceptance credits 4,573,768 4,942,558
Staff loans [of which RM11,660,165
(2013: RM8,409,959) are to Directors] 896,023 756,729 40 71
Credit card receivables 7,575,611 6,440,933
Revolving credits 37,354,876 28,830,969
Share margin nancing 1,752,933 1,505,614
Other loans 3,658 1,665
Gross loans, advances and nancing 264,644,089 234,557,542 40 71

Fair value changes arising from fair value hedge 136,079 140,453
264,780,168 234,697,995 40 71
Less: Allowance for impairment losses
Individual impairment allowance (3,591,249) (3,005,066)

Portfolio impairment allowance (3,174,060) (3,261,224)
(6,765,309) (6,266,290)
Total net loans, advances and nancing 258,014,859 228,431,705 40 71
(a) Included in the Groups loans, advances and nancing balances are RM49,684,000 (2013: RM56,586,000) of reinstated loans which were
previously impaired and written off prior to 2005. The reinstatement of these loans has been approved by BNM on 5 February 2010 and was
done selectively on the basis of either full settlement of arrears or upon regularised payments of rescheduled loan repayments.
072
CIMB & YOU
8 LOANS, ADVANCES AND FINANCING (CONTINUED)
(i) By type (Continued)
(b) The Group has undertaken a fair value hedge on the interest rate risk of RM8,119,997,000 (2013: RM8,181,776,000) loans, advances and
nancing using interest rate swaps.
The Group
2014 2013
RM000 RM000
Gross loans hedged 8,119,997 8,181,776

Fair value changes arising from fair value hedges 136,079 140,453
8,256,076 8,322,229
The fair value loss of interest rate swaps in the hedge transaction as at 31 December 2014 was RM111,559,549 (2013: RM100,531,414).
(ii) By type of customer:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Domestic banking nancial institutions 1,691,259 1,078,983

Domestic non-bank nancial institutions
Stockbroking companies 13,224 10,210
Others 3,189,524 2,572,679
Domestic business enterprises
Small medium enterprises 44,009,610 31,258,050
Others 45,871,410 48,095,116
Government and statutory bodies 8,854,267 11,885,181
Individuals 125,997,751 111,963,768 40 71
Other domestic entities 2,589,715 2,020,750
Foreign entities 32,427,329 25,672,805
073
ANNUAL REPORT 2014
(iii) By interest/profit rate sensitivity:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Fixed rate
Housing loans 1,803,982 1,786,148
Hire-purchase receivables 11,761,686 13,206,463
Other xed rate loans 39,630,807 41,358,703 40 71
Variable rate
BLR plus 135,903,034 115,338,808
Cost plus 33,272,234 26,730,436
Other variable rates 42,272,346 36,136,984
(iv) By economic purposes:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Personal use 8,748,136 8,441,137 2 4

Credit card 7,575,611 6,440,933
Purchase of consumer durables 594,930 170,550
Construction 8,199,486 8,023,104
Residential property (Housing) 66,248,029 57,390,465 38 66
Non-residential property 20,636,518 17,866,777
Purchase of xed assets other than land and building 15,761,176 14,251,738
Mergers and acquisitions 5,288,961 5,410,650
Purchase of securities 19,708,117 15,139,766
Purchase of transport vehicles 21,338,114 19,742,044 1
Working capital 74,273,300 65,766,696
Other purpose 16,271,711 15,913,682
074
CIMB & YOU
(v) By geographical distribution:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Malaysia 152,318,680 140,865,041 40 71

Indonesia 53,830,114 44,738,818
Thailand 22,799,411 18,534,877
Singapore 22,785,545 19,599,409
China 6,039,313 5,730,857
United Kingdom 931,230 1,195,767
Hong Kong 586,862 693,400
Other countries 5,352,934 3,199,373
(vi) By residual contractual maturity:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Within one year 69,042,090 61,219,942 1

One year to less than three years 23,881,021 23,303,174 2 4
Three years to less than ve years 33,216,713 31,614,934 20
Five years and more 138,504,265 118,419,492 38 46
(vii) Impaired loans, advances and financing by economic purpose:
The Group
2014 2013
RM000 RM000
Personal use 312,471 252,938

Credit card 114,462 94,765
Purchase of consumer durables 5,657 289
Construction 1,222,102 1,180,289
Residential property (Housing) 1,479,522 1,540,293
Non-residential property 214,681 258,780
Purchase of xed assets other than land and building 876,447 438,895
Purchase of securities 175,342 186,441
Purchase of transport vehicles 422,123 314,470
Working capital 2,565,699 2,373,246
Other purpose 794,183 752,863
Gross impaired loans 8,182,689 7,393,269
075
ANNUAL REPORT 2014
(viii) Impaired loans, advances and financing by geographical distribution:
The Group
2014 2013
RM000 RM000
Malaysia 4,016,830 4,452,536

Indonesia 2,491,905 1,458,612
Thailand 1,437,752 1,219,287
Singapore 44,657 58,585
China 95,775 111,869
United Kingdom 2,518 3,636
Other countries 93,252 88,744
Gross impaired loans 8,182,689 7,393,269
(ix) Movements in the impaired loans, advances and financing are as follows:
The Group
2014 2013
RM000 RM000
At 1 January 7,393,269 7,927,817

Classied as impaired during the nancial year 4,672,395 3,451,780
Reclassied as not impaired during the nancial year (1,782,815) (1,591,922)
Amount written back in respect of recoveries (873,740) (1,223,557)
Amount written off (1,461,339) (1,239,233)
Reclassied from unwinding income 50,870
Exchange uctuation 234,919 17,514
At 31 December 8,182,689 7,393,269
Ratio of gross impaired loans to gross loans, advances and nancing 3.09% 3.15%
076
CIMB & YOU
(x) Movements in the allowance for impaired loans, advances and financing are as follows:
The Group
2014 2013
RM000 RM000
Individual impairment allowance
At 1 January 3,005,066 3,270,343

Amount written off (458,740) (440,126)
Allowance written back and charged to deferred assets (2,735) (959)
Amount transferred from portfolio impairment allowance 3,160 1,043
Unwinding income (2,626) 46,595
At 31 December 3,591,249 3,005,066
Portfolio impairment allowance
At 1 January 3,261,224 3,295,857

Amount transferred from individual impairment allowance (3,160) (1,043)
Allowance made and charged to deferred assets 381 258
Unwinding income (33,195) (31,518)
At 31 December 3,174,060 3,261,224
Portfolio impairment allowance (inclusive of regulatory reserve) as % of gross loans,

advances and nancing (excluding RPSIA nancing) less individual impairment allowance 1.49% 2.28%
077
ANNUAL REPORT 2014
9 OTHER ASSETS

Note 2014 2013 2014 2013
RM000 RM000 RM000 RM000
Due from brokers and clients net of allowance for impairment

losses of RM18,819,223 (2013: RM21,650,373) (a) 4,090,027 2,044,742
Other debtors, deposits and prepayments net of allowance for
doubtful debts of RM102,233,125 (2013: RM94,204,197) (b) 3,872,575 3,163,529 13,764 35,006
Due from insurers, brokers and reinsurers 3,768 26,026
Option premium receivable 202,040 193,721
Deferred assets (c) 83,018
Foreclosed properties net of allowance for impairment losses of
RM65,922,223 (2013: RM51,683,569) (d) 356,826 187,787
Collateral pledged for derivative transactions 2,796,901 1,232,059 10,266
Due from joint venture (e) 1,189,074 1,059,473
12,511,211 7,990,355 13,764 45,272
(a) Movements of allowance for impairment losses on amount due from brokers and clients are as follows:
The Group
2014 2013
Individual Portfolio Individual Portfolio
impairment impairment impairment impairment
allowance allowance Total allowance allowance Total
RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 14,766 6,884 21,650 14,494 9,103 23,597

Net allowance made/(write back) during the nancial year 3,146 1,121 4,267 481 (1,599) (1,118)
Disposal of subsidiary (7,102) (7,102)
Write off (128) (128)
Transfer to other debtors (325) (325)
Exchange uctuation 515 (58) 457 (209) (620) (829)
At 31 December 10,872 7,947 18,819 14,766 6,884 21,650
078
CIMB & YOU
9 OTHER ASSETS (CONTINUED)
(b) Movements of allowance for doubtful debts on other debtors, deposits and prepayments are as follows:
The Group
2014 2013
Individual Individual
impairment impairment
allowance allowance
RM000 RM000
At 1 January 94,204 70,881

Allowance made during the nancial year 8,369 25,310
Recoveries (42) (348)
Write off (184) (284)
Transfer from amount due from brokers 325
Disposal of subsidiaries (600)
Exchange uctuation 161 (1,355)
At 31 December 102,233 94,204
(c) Deferred assets comprise mainly the carrying value of the excess of liabilities over assets of Common Forge Berhad (now known as Southeast Asia
Special Asset Management Berhad) taken over by SBB Berhad in 2000 and will be reduced progressively by a scheme of arrangement which has
been agreed by Bank Negara Malaysia. The scheme has been fully settled by BNM during the year. Movements in deferred assets during the nancial
year are as follows:
The Group
2014 2013
RM000 RM000
At 1 January 83,018 103,524

Impairment allowance made (2,353) (700)
Recovered during the nancial year (80,665) (19,806)
At 31 December 83,018
(d) Foreclosed properties are stated at lower of carrying amount and fair value less cost to sale. Independent valuation of the foreclosed properties was
performed by valuers to determine the fair value of the foreclosed properties as at 31 December 2014. The fair values are within level 2 of the fair value
hierarchy. The fair values have been derived using the sales comparison approach. Sales prices of comparable land and buildings in close proximity
are adjusted for differences in key attributes such as property size.
(e) These comprises hire-purchase receivables belonging to Proton Commerce Sdn. Bhd. (PCSB) that were de-recognised from the Groups loans,
advances and nancing as the risks and rewards relating to the cash ows of these hire-purchase receivables have been substantially transferred to
PCSB. The derecognised hire-purchase receivables are regarded as amount due from joint venture.
079
ANNUAL REPORT 2014
10 DEFERRED TAXATION
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the
deferred taxes relate to the same tax authority. The following amounts are shown in the statements of nancial position, after offsetting:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Deferred tax assets 272,587 357,250

Deferred tax liabilities (51,569) (50,327) (448) (1,998)
221,018 306,923 (448) (1,998)
The gross movements on the deferred taxation account are as follows:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
At 1 January 306,923 (22,338) (1,998) (2,127)

(Charged)/Credited to prot or loss (Note 39)
Loans, advances and nancing 6,483 41,520

Unutilised tax losses (47,862) 8,430
Excess of capital allowance over depreciation 2,134 (46,201) (17)
Intangible assets 27,366 35,314
Provision for accrued expenses (44,125) 25,707
Post employment benets obligations 35,459 23,894
Other temporary differences (18,935) 70,507 876 129
(39,480) 159,171 859 129

(Over)/Under accrual in prior years 7,439 (29,961) 691
(32,041) 129,210 1,550 129

Disposal of subsidiaries (790) 2,729
Transferred to equity
Revaluation reserve nancial investments available-for-sale (55,870) 194,369
Hedging reserve cash ow hedge 189 2,953
Post employment benets obligations 2,607
At 31 December 221,018 306,923 (448) (1,998)
080
CIMB & YOU
10 DEFERRED TAXATION (CONTINUED)
The components of deferred tax assets and liabilities during the nancial year prior to offsetting of balances within the same tax jurisdiction are as follows:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Deferred tax assets (before offsetting)

Financial investments available-for-sale 54,130 81,782
Unutilised tax losses 8,490 56,352
Post employment benets obligations 87,173 49,107
Provision for accrued expenses 300,248 344,373 9 3
Cash ow hedge 3,142 2,953
Other temporary differences 61,738 81,445
628,418 723,026 9 3
Offsetting (355,831) (365,776) (9) (3)
Deferred tax assets (after offsetting) 272,587 357,250
Deferred tax liabilities (before offsetting)

Property, plant and equipment (130,446) (132,580) (338) (321)
Financial investments available-for-sale (99,806) (73,258)
Intangible assets (171,233) (198,599)
Other temporary differences (5,915) (11,666) (119) (1,680)
(407,400) (416,103) (457) (2,001)

Offsetting 355,831 365,776 9 3
Deferred tax liabilities (after offsetting) (51,569) (50,327) (448) (1,998)
11 STATUTORY DEPOSITS WITH CENTRAL BANKS
The non-interest bearing statutory deposits are maintained by certain subsidiaries with Bank Negara Malaysia in compliance with Section 26(2)(c) of the
Central Bank of Malaysia Act, 2009, the amounts of which are determined at set percentages of total eligible liabilities. The non-interest bearing statutory
deposits of a foreign subsidiary and foreign branches of the bank subsidiary are maintained with respective central banks in compliance with the applicable
legislation.
081
ANNUAL REPORT 2014
12 INVESTMENT IN SUBSIDIARIES
The Company
2014 2013
RM000 RM000
Ordinary shares 7,336,383 7,336,383

Redeemable preference shares * 16,825,099 13,384,331
24,161,482 20,720,714
Fair value changes arising from fair value hedge 53,865
24,215,347 20,720,714
Less: Allowance for impairment loss of a subsidiary (1,275) (1,275)
24,214,072 20,719,439
* Classied as cost of investment in subsidiaries due to the terms of the instruments
Capital injection in subsidiaries

During the year, the Company has completed capital injection of:
RM3,261 million into 3,261,000 units new redeemable preference shares of RM1,000 each of CIMB Group Sdn. Bhd. The capital injection is to enable
CIMB Group Sdn. Bhd. to subscribe for right issue of CIMB Bank Berhad of RM3,218 million and for working capital of a subsidiary.
RM179.8 million into 55,000 units new redeemable preference shares of USD1,000 each of CIMB Securities International Pte. Ltd.
(a) Information about principal subsidiaries:
The direct subsidiaries of the Company are:
Percentage of equity held

Name of Subsidiary Principal activities 2014 2013
% %
CIMB Berhad Investment holding 100 100

CIMB Group Sdn. Bhd. Investment holding 99.9 99.9
Commerce MGI Sdn. Bhd. Dormant 51 51
Commerce Asset Realty Sdn. Bhd. Holding of properties for letting to a related company 100 100
iCIMB (MSC) Sdn. Bhd. Provision of management and outsourcing services 100 100
SBB Berhad Dormant 100 100
CIMB Foundation Charitable foundation
Premier Fidelity Sdn Bhd Promoting, arranging and managing all kinds of 100 100
sports and entertainment events of the Group
SP Charitable Trust Fund # Special purpose vehicle
SP Charitable Trust Fund 2 # Special purpose vehicle

Consolidated in the Group as the substance of the relationship between the entities and the Company indicates that the entities are controlled by
the Company
#
Audited by a rm other than member rms of PricewaterhouseCoopers International Limited.
082
CIMB & YOU
12 INVESTMENT IN SUBSIDIARIES (CONTINUED)
(a) Information about principal subsidiaries (Continued):
The subsidiaries held through CIMB Berhad are:

Directly by CIMB Berhad Indirectly by the company
Name of Subsidiary Principal activities 2014 2013 2014 2013
% % % %
CIMB Islamic Trustee Berhad Trustee services 20 20 100 100

CIMB Commerce Trustee Berhad Trustee services 20 20 100 100
The subsidiaries held through CIMB Group (CIMBG) are:

Through CIMBGs
Directly by CIMBG subsidiary company
% % % %
CIMB Bank Berhad (CIMB Bank) Commercial banking 99.9 99.9

and related nancial
services
CIMB Investment Bank Berhad (CIMB Investment banking and 100 100
Investment Bank) the provision of related
nancial services
PT Bank CIMB Niaga Tbk + Commercial banking 96.9 96.9 1.0 1.0
(Incorporated in the Republic of Indonesia) and related nancial
services
PT Commerce Kapital # Investment holding 99.0 99.0 1.0 1.0
(Incorporated in the Republic of Indonesia)
CIMB SI Sdn. Bhd. Trading in securities and 100 100
direct principal
investments
CIMB SI I Sdn. Bhd. Investment holding 100 100
CIMB SI II Sdn. Bhd. Investment holding 100 100
CIMB Private Equity Sdn. Bhd. Investment holding 100 100
CIMB Private Equity 1 Sdn. Bhd.& Investment holding 28.2 28.2
Ekuiti Erasama Sdn. Bhd.& Investment holding 19.7 19.7
Bigbite Ventures Sdn. Bhd.& Investment holding 20.1 20.1
Big Ship Sdn. Bhd.& Investment holding 20.1 20.1
Eagle Eye Capital Sdn. Bhd.& ^ Investment holding 14.1
Silverbell Investment Pte. Ltd.& Investment holding 28.2
(Incorporated in the Republic of
Singapore)
Top Sigma Sdn. Bhd.& Investment holding 20.1 20.1
Maju Uni Concept Sdn. Bhd. Investment holding 100 100
Mutiara Makmur Ventures Sdn. Bhd. Investment holding 100 100
083
ANNUAL REPORT 2014
The subsidiaries held through CIMBG are (Continued):

Through CIMBGs
% % % %
CIMB Asia Security (General Partner) Limited Investment holding 100 100
(formerly known as Semantan Investment
Holdings Ltd.) (Incorporated in the Federal
Territory of Labuan)
Armada Investment Holdings Ltd. Investment holding 84.8 84.8
(Incorporated in the Federal Territory of
Labuan)
CIMB General Partner Limited Investment holding 100 100
Labuan)
CIMB Securities International Pte. Ltd. + Investment holding 100 100
(Incorporated in the Republic of Singapore)
CIMB Securities (Singapore) Pte. Ltd. + Stock and share broking 100 100
CIMB Research Pte. Ltd. + Investment research 100 100
CIMB Securities (UK) Ltd. + Securities related 100 100
(Incorporated in the United Kingdom) business
CIMB Securities (USA) Inc # Dormant 100 100
(Incoporated in the United States of
America)
CIMB Securities Ltd. + Securities broking, 100 100
(Incorporated in Hong Kong) dealing and trading
CIMB Securities (HK) Nominees Ltd. + Nominee services 100 100
(Incorporated in Hong Kong)
PT CIMB Securities Indonesia + (Incorporated Stockbroking 100 100
in the Republic of Indonesia)
CIMB Real Estate Sdn. Bhd. Real estate investment 100 100
CIMB-Mapletree Management Sdn. Bhd. Real estate fund 60 60
management
CIMB-Principal Asset Management Berhad Establishment and 60 60
management of unit
trust fund and fund
management business
CIMB-Principal Asset Management Company Investment and fund 60 60
Limited + management and other
(Incorporated in the Kingdom of Thailand) related services
Sathorn Asset Management Company Asset Management 99.9 99.9
Limited +
(Incorporated in the Kingdom of Thailand)
084
CIMB & YOU

Through CIMBGs
% % % %
CIMB Principal Asset Management (S) Pte. Provision of 60 60

Ltd.+ management and
(Incorporated in the Republic of Singapore) investment analysis
services
PT CIMB-Principal Asset Management + Establishment and 60.4 60.4
(Incorporated in the Republic of Indonesia) management of unit
trust fund and fund
management business
CIMB Wealth Advisors Berhad Distribution of unit trust 60 60
funds
i-Wealth Advisors Sdn. Bhd. Provision of 60 60
management services
and distribution of
products and services
CIMB Strategic Assets Sdn. Bhd. Investment holding 100 100
CIMB Private Equity Advisors Sdn. Bhd. Investment advisory 100 100
AIGF Advisors Pte. Ltd. @ + Investment holding 100
(formerly known as CIMB Capital Pte. Ltd.)
CIG Berhad Insurance holding 100 100
company
CIMB Insurance Brokers Sdn. Bhd. ^^ Insurance broking 100
PT CIMB Sun Life + (Incorporated in the Life assurance business 51 51
Republic of Indonesia)
Commerce Asset Ventures Sdn. Bhd. (CAV) Investment holding 100 100
company
Southeast Asia Special Asset Management To invest in, purchase or 100 100
Berhad otherwise acquire and
deal with non-
performing loans,
credit and nancing
facilities or debts
CAV Private Equity Management Sdn. Bhd. Providing management, 100 100
nancial,corporate and
advisory services
Commerce Technology Ventures Sdn. Bhd. Investment holding 100 100
company
VC Prestige Sdn. Bhd. ^ Investment trading 33.3 33.3
Commerce Agro Ventures Sdn. Bhd. Investment holding 33.3 33.3
company
085
ANNUAL REPORT 2014

Through CIMBGs
% % % %
CAV BAT Sdn. Bhd. Investment holding 100 100

company
Commerce Growth Sdn. Bhd. Investment holding 100 100
company
Edufuture Sdn. Bhd. Investment holding 30 30
company
Metro Bumimas Sdn. Bhd. Investment holding 33.3 33.3
company
Sedia Fajar Sdn. Bhd. Investment holding 33.3 33.3
company
Peranan Dinamik Sdn. Bhd. Investment holding 33.3 33.3
company
Trace Tracker Malaysia Sdn. Bhd. & Provider of traceability 9.67 9.67
services
Pesat Dinamik Sdn. Bhd. Investment holding 33.3 33.3
company
Prima Mahawangsa Sdn. Bhd. Investment holding 33.3 33.3
company
Tetap Fajar Sdn. Bhd. Investment holding 33.3 33.3
company
Titan Setup Sdn. Bhd. # ^ Investment holding 100
company
Commerce-KPF Ventures Sdn. Bhd. Investment holding 30 30
company
Touch 'n Go Sdn. Bhd. Establishment, operation 32.2 32.2
and management of an
electronic collection
system for toll and
transport operators
Commerce KNB Agro Teroka Sdn. Bhd.& Investment holding 33.3 33.33
company
Kota Bumimas Sdn. Bhd.& Investment holding 33.3 33.33
company
Jernih Hartamas Sdn. Bhd.& Investment holding 33.3 33.33
company
Limpahan Suria Sdn. Bhd.& Investment holding 33.3 33.33
company
086
CIMB & YOU

Through CIMBGs
% % % %
Goodmaid Chemical Corporation Sdn. Bhd. # ^ Manufacturing of 99.60

household care
products
Goodmaid Marketing Sdn. Bhd. # ^
Trading and marketing of 100
household care
products
Goodmaid Industrial Supplies Sdn. Bhd. # ^
Trading of industrial 100
chemical products
EQ Industry Supplies Sdn. Bhd. # ^
Trading and marketing of 100
industrial chemicals
CIMB Middle East BSC + Islamic investment 99 99 1 1
(Incorporated in the Kingdom of Bahrain)
CIMB-Trustcapital Advisors Singapore Pte. Real estate management 63 63
Ltd. # and advisory
CIMB-TCA Australia Pty. Ltd. +
(Incorporated in Australia) Investment management 63 63
company for
investment holding
Trusts
CIMBTCA Pty. Ltd. + Investment holding 63 63
(Incorporated in Australia) company
CIMBTCA3 Pty. Ltd. + Investment holding 63 63
(Incorporated in Australia) company
CIMBTCA Bravo Pty. Ltd. + Real estate ownership 63 63
(Incorporated in Australia)
CIMBTCA Lima Pty. Ltd. + Real estate ownership 63 63
CIMB-Trustcapital AOF1 GP Pte. Ltd. # Property fund 100 100
(Incorporated in the Republic of Singapore) management (including
REIT manager)
CIMB Southeast Asia Research Sdn. Bhd. Public advocacy through 100 100
(CARI) research, publication
and events
PT CIMB ASEAN Research # Public advocacy through 100 100
(Incorporated in the Republic of Indonesia) research, publication
and events
087
ANNUAL REPORT 2014

Through CIMBGs
% % % %
CIMB Securities (Thailand) Co., Ltd. + Stock and share broking 99.99 99.99
CIMB Securities International (Thailand) Public Stock and share broking 99.6
Company Ltd. + ^
CIMB Advisory (Thailand) Company Limited+^ Dormant 99.6
CIMB Securities International (Australia) Pty. Investment holding 100 100
Ltd. + (Incorporated in Australia) company and providing
services to related
entities
CIMB Securities (Australia) Limited + Stock and share broking 100 100
CIMB Corporate Finance (Australia) Limited + Corporate nance and 100 100
(Incorporated in Australia) advisory services
CIMB Capital Markets (Australia) Limited + Equity capital markets 100 100
(Incorporated in Australia) business
Fleet Nominees Pty. Ltd. + Nominee services 100 100
Quinambo Nominees Pty. Ltd. + Nominee services 100 100
Wanford Nominees Pty. Ltd. + Nominee services 100 100
CIMB Corporate Finance (India) Private Corporate nance and 100 99.99
Limited + (Incorporated in India) advisory services
CIMB Securities (India) Private Limited + Stock and share broking 75 75
(Incorporated in India)
CSI Investment Limited + Investment holding 100 100
(Incorporated in the Republic of Singapore) company
MinorCap Pte. Ltd. + Dormant 100 100
&
Deemed a subsidiary by virtue of board control over the companys nancial and operating policies
@
Transferred to CIMB-MC Capital Ltd., a joint venture set up in 2014, during the nancial year.
#
Audited by a rm other than member rms of PricewaterhouseCoopers International Limited
+
Audited by a member rm of PricewaterhouseCoopers International Limited which is a separate and independent legal entity from
PricewaterhouseCoopers, Malaysia
^^
Ceased to be a subsidiary as at 30 December 2014. (Refer Note13)
^
Disposed/strike off during the nancial year
All the above subsidiaries, unless otherwise stated, are incorporated in Malaysia.
088
CIMB & YOU
The subsidiaries held through CIMBGs direct subsidiary, CIMB Investment Bank are:

Directly by CIMB Investment Through CIMB Investment
Berhad Banks subsidiary company
% % % %
CIMB Holdings Sdn. Bhd. Investment holding 100 100

CIMSEC Nominees (Tempatan) Sdn. Bhd. Nominee services 100 100
CIMSEC Nominees (Asing) Sdn. Bhd. Nominee services 100 100
CIMB EOP Management Sdn. Bhd. Nominee services 100 100
CIMB Futures Sdn. Bhd. Futures broking 100 100
CIMB Nominees (Tempatan) Sdn. Bhd. Nominee services 100 100
CIMB Nominees (Asing) Sdn. Bhd. Nominee services 100 100
CIMB Commerce Trustee Berhad Trustee services 20 20
CIMB Islamic Trustee Berhad Trustee services 20 20
The subsidiaries held through CIMBGs direct subsidiary, CIMB Bank are:

Through CIMB Banks
Directly by CIMB Bank subsidiary company
% % % %
CIMB FactorLease Bhd Leasing, hire purchase 100 100

nancing, debt
factoring, loan
management and
property management
CIMB Islamic Trustee Berhad Trustee services 20 20 40 40
CIMB Bank (L) Limited (Incorporated in the Offshore banking 100 100
Federal Territory of Labuan)
Mutiara Aset Berhad Dormant 100 100
iCIMB (Malaysia) Sdn. Bhd. Provision of 100 100
management and
outsourcing services
CIMB Group Nominees Sdn. Bhd. Nominee services 100 100
CIMB Group Nominees (Tempatan) Sdn.Bhd. Nominee services 100 100
CIMB Group Nominees (Asing) Sdn. Bhd. Nominee services 100 100
Semerak Services Sdn. Bhd. Provision of security, 100 100
maintenance and other
related services
089
ANNUAL REPORT 2014
The subsidiaries held through CIMBGs direct subsidiary, CIMB Bank are (Continued):

Through CIMB Banks
% % % %
CIMB Islamic Bank Berhad Islamic banking and 100 100

related nancial
services
CIMB Trust Ltd. Trustee services 100 100
Labuan)
Bumiputra-Commerce Corporate Services Nominee services 100 100
Limited
Labuan)
BC Management Services Limited Nominee services 100 100
Labuan)
CIMB Private Equity General Partner Limited Fund management 100 100
Labuan)
CIMB Mezzanine General Partner Limited Fund management 100 100
Labuan)
Mezzanine Capital Ltd Investment holding 100 100
Labuan)
CIMB Islamic Nominees (Tempatan) Nominee services 100 100
Sdn.Bhd.
CIMB Islamic Nominees (Asing) Sdn. Bhd. Nominee services 100 100
S.B. Venture Capital Corporation Sdn. Bhd. Investment holding and 100 100
provision of
management services
BHLB Properties Sdn. Bhd. Property ownership and 100 100
management
SBB Nominees (Tempatan) Sdn. Bhd. Nominee services 100 100
SBB Nominees (Asing) Sdn. Bhd. Nominee services 100 100
CIMB Nominees (S) Pte. Ltd. + Nominee services 100 100
SBB Capital Corporation Special purpose vehicle 100 100
SFB Auto Berhad Dormant 100 100
CIMB Bank PLC + Commercial banking 100 100
(Incorporated in Cambodia) and related nancial
services
090
CIMB & YOU
The subsidiaries held through CIMBGs direct subsidiary, CIMB Bank are (Continued):

Through CIMB Banks
% % % %
Perdana Visi Hartanah Sdn. Bhd.^ Property investment 100

SBB Capital Markets Sdn. Bhd.^ Investment holding 100
CIMB Commerce Trustee Berhad Trustee services 20 20 40 40
S.B. Properties Sdn. Bhd. Property ownership and 100 100
management
SFB Development Sdn. Bhd. Property investment 100 100
SIBB Berhad Investment dealings 80 80
Perdana Nominees (Tempatan) Sdn. Bhd. Nominee services 80 80
Commerce Returns Berhad Special purpose vehicle 100 100
CIMB Thai Bank Public Company Limited + Banking 93.7 93.7
Merdeka Kapital Berhad ** Engaged in the purchase
from multi originators
of receivables and the
raising of funds and
related activities
** Consolidation of the silo of Merdeka Kapital Berhad

In 2011, CIMB Bank obtained funding through securitisation of its hire purchase receivables to Merdeka Kapital Berhad (MKB), a special purpose
vehicle set up to undertake multi securitisation transactions. Arising from the adoption of MFRS 10 Consolidated Financial Statements in 2013,
CIMB Bank has consolidated the silo of MKB in relation to CIMB Banks hire purchase receivables, as this silo has been legally ring-fenced for this
transaction.
+
PricewaterhouseCoopers, Malaysia

Consolidated in the Group as the substance of the relationship between the entities and the Company indicates that the entities are controlled by
the Company
^
Company has been voluntarily liquidated during the nancial year.
091
ANNUAL REPORT 2014
The subsidiaries held through PT Bank CIMB Niaga Tbk are:

% %
PT CIMB Niaga Auto Finance + Financing services 99.9 99.9

PT Kencana Internusa Artha Finance + Financing services 99.9 51
The subsidiaries held through CIMB Thai Bank Public Company Limited are:

% %
CT Coll Co., Ltd. + (Incorporated in the Kingdom of Thailand) Debt Collection Service 99.99 99.99
Center Auto Lease Co.,Ltd. + (Incorporated in the Kingdom of Thailand) Leasing/hire purchase 99.99 99.99
Worldlease Co., Ltd. + (Incorporated in the Kingdom of Thailand) Hire purchase of 99.99 99.99
motorcycles
Krungthai Thanakit Finance PCL # (Incorporated in the Kingdom of Thailand) Dormant 99.10 99.10
PT Pattanasup Company Limited # (Incorporated in the Kingdom of Thailand) Dormant 99.93 99.93
+
PricewaterhouseCoopers Malaysia
#
In the process of liquidation
All the subsidiaries, unless otherwise stated, are incorporated in Malaysia.
092
CIMB & YOU
(b) Details of subsidiaries that have material non-controlling interests:
Set out below are the Groups subsidiaries that have material non-controlling interests:
Proportion of ownership
interests and voting rights held Prot allocated to non- Accumulated non-controlling
Name of subsidiaries by non-controlling interests controlling interests interests
2014 2013 2014 2013 2014 2013
% % RM000 RM000 RM000 RM000
CIMB Thai Bank Public Company 6.3 6.3 7,178 17,904 336,893 320,466
Limited Group (incorporated in the
Kingdom of Thailand)
CIMB-Principal Asset Management 40.0 40.0 26,483 18,806 277,335 250,777
Berhad Group
PT Bank CIMB Niaga Tbk Group 2.1 2.1 26,334 22,565 172,052 177,535
(Incorporated in the Republic of
Indonesia)
Touch n Go Shd. Bhd. 47.8 47.8 8,126 7,725 50,007 42,182
Individually immaterial subsidiaries with (5,600) (33,498)
non-controlling interests
830,687 757,462
093
ANNUAL REPORT 2014
(b) Details of subsidiaries that have material non-controlling interests (Continued):
Summarised nancial information for each subsidiary that has non-controlling interests that are material to the Group is set out below. The summarised
nancial information below represents amounts before inter-company eliminations.
CIMB Thai Bank Public CIMB-Principal Asset PT Bank CIMB Niaga Tbk
Company Limited Group Management Berhad Group Group Touch n Go Sdn. Bhd.
(RM000) 2014 2013 2014 2013 2014 2013 2014 2013
Total assets 29,180,235 27,966,946 1,005,283 930,131 65,677,958 58,687,619 505,209 432,326
Total liabilities (26,713,246) (25,743,790) (311,300) (302,544) (57,680,966) (51,739,264) (396,594) (340,803)
Net assets 2,466,989 2,223,156 693,983 627,587 7,996,992 6,948,355 108,615 91,523
Equity attributable to owners of the Company (2,466,989) (2,223,156) (552,724) (512,811) (7,996,785) (6,922,887) (108,615) (91,523)
Non-controlling interests (NCI) (141,259) (114,776) (207) (25,468)
Revenue 1,087,457 1,101,145 229,843 185,793 3,714,969 4,090,726 92,151 86,421
Prot before taxation 140,214 277,458 80,401 64,638 882,772 1,765,760 22,761 21,244
Taxation (25,392) 8,473 (14,194) (17,623) (236,220) (465,014) (5,754) (5,077)
Other comprehensive income/(expenses) 149,864 (29,678) 186 (456) 440,491 (1,453,511)
Total comprehensive income/(expense) 264,686 256,253 66,393 46,559 1,087,043 (152,765) 17,007 16,167
Net cash generated/(used in) from operating 576,546 (1,028,680) 133,439 50,479 (324,188) 867,131 38,720 8,682
activities
Net cash (used in)/generated from investing (407,848) (475,964) (21,335) 42,457 (868,135) (1,920,014) 555 (21,055)
activities
Net cash generated (used in)/from nancing (312,933) 1,800,091 (796) (53,296) (441,774) 1,081,602 3,000
activities
Net (decrease)/increase in cash and cash (144,235) 295,447 111,308 39,640 (1,634,097) 28,719 39,275 (9,373)
equivalents
Prot allocated to NCI of the Group 7,178 17,904 26,483 18,806 26,334 22,565 8,126 7,725
Dividends paid to NCI of the Group 1,312 666 4,800
094
CIMB & YOU
(c) Effects of changes in ownership interests in subsidiaries that do not result in loss of control
On 28 February 2014, PT Bank CIMB Niaga Tbk acquired additional 48.9% equity interest in PT Kencana Internusa Artha Finance (KITA Finance)
for a cash consideration of IDR131,236 million (equivalent to RM36.4 million). As a result of this acquisition, the Groups equity interest in KITA Finance
was increased to 99.9%. The carrying value of the net assets of KITA Finance as at 28 February 2014 was IDR195,325 million (equivalent to RM55.1
million).
The effect of the change in the Groups ownership interest in KITA Finance on the equity attributable to owners of the Group is as follows:
28-Feb-14
RM000
Carrying amount of non-controlling interests acquired 26,348

Consideration paid for acquisition of non-controlling interests (36,417)
Excess of consideration paid recognised in equity attributable to owners of the Group (10,069)
(d) Unconsolidated structured entities
(i) Nature, purpose and extent of the Groups interest in unconsolidated structure entities
Investment Purposes
1) Investment Vehicle 1
The Groups involvement in unconsolidated structured entities (USE) for investment purposes are typically in the capacity of an investor
with limited liability and no management control, with a view to invest in the USEs business model which may include trading strategies on
various asset classes such as interest rate futures on major liquid currencies. The Group earns a share of prots which are typically
distributed in proportion to each capital providers share in the USE, while additional capital support may be required if the USE is loss-
making.
2) Investment Vehicle 2
CIMB Banks involvement in USE is for investment purposes with a view to invest in the USEs prot participation scheme (PPS) as
principal and on-sell to other investors. The PPS will be used to fund USEs purchase of the rights to all the present and future cash ows
of dividends and other shareholders distribution (the Dividends) of the underlying assets. CIMB Bank earns a xed payout amount per
annum against its invested amount and the cash ows from the Dividends in accordance with a pre-agreed order of priority as set out in
the terms of the PPS and will expire upon the nal payment of the cash ows.
3) Third Party Funding
The Group provides funding to USE, whereby such funding may be secured against a variety of assets/collateral. The Group may also enter
into a derivative transaction with USE in its normal course of business.
The Group does not consolidate these USEs as the Group does not have control over these entities in accordance with MFRS10.
095
ANNUAL REPORT 2014
(d) Unconsolidated structured entities (Continued)
(ii) Carrying amount, size and maximum exposure to loss
The following table shows the carrying amount of the Groups interest recognised in the consolidated statement of nancial position as well as
the maximum exposure to loss resulting from these interests. It also provides an indication of the size of the structured entities.
Carrying amount as at 31 December 2014

Investment Investment Third Party
Vehicle 1 Vehicle 2 Funding Entity
RM000 RM000 RM000
Cash and short-term funds 4,093 57,559

Reverse repurchase agreements 712,730
Financial investments available-for-sale 692 269,694
Other assets 349,650
Total assets 354,435 269,694 770,289
Derivative nancial liabilities ** 25,842
Total liabilities 25,842
Commitments 349,650
Investment Investment Third Party

Vehicle 1 Vehicle 2 Funding Entity
RM000 RM000 RM000
Assets size of structured entity * 10,052,438 3,966,000 769,230
* Where the Group does not have control over the USE, the assets size of the USE are based on the Groups best estimates.
** Derivative liabilities are based of a notional amount of USD200 million
Cash and short-term funds
Represents the Groups cash received from realised gains from derivatives, interest income and dividend income.
Financial investments available-for-sale
Represents the Groups equity/economic interests in unconsolidated structured entities.
096
CIMB & YOU
(d) Unconsolidated structured entities (Continued)
(ii) Carrying amount, size and maximum exposure to loss (Continued)
Reverse repurchase agreements and other assets
Reverse repurchase agreements or loans to Third Party Funding Vehicle which may be collateralised by underlying securities. This also includes
collateral placements to Investment Vehicle for collateralisation purposes against potential future losses incurred by the vehicle.
Derivative nancial liabilities
Derivative transactions entered into with the structured entities are in the normal course of business. Carrying amounts of the derivative nancial
liabilities do not reect the true variability of returns to the Group because they do not take into account the effects of collateral or hedges.
Commitments
Represents nancial commitments (such as capital support) which the Group is contractually obligated to make to the Investment Vehicles in a
given year due to losses/underperformance of the underlying business of the vehicle. The maximum liability is capped at the collateral amounts
pledged (see Other Assets).
(iii) Income/losses from structured entities
Gains/(losses) recognised in the consolidated

statements of income for the nancial year
ended 31 December 2014
Unrealised
losses on Realised gains
derivatives on derivatives Total
Structured Entity RM000 RM000 RM000
Third Party Funding Entity (25,842) 57,559 31,717
Income recognised in the consolidated

statements of income for the nancial year
ended 31 December 2014
Dividend
Interest Income Income Total
Structured Entity RM000 RM000 RM000
Investment Vehicle 1 2,415 1,678 4,093

Investment Vehicle 2 ^
Third Party Funding Entity 13,430 13,430
15,845 1,678 17,523
^
The Investment Vehicle 2 was set up on 22 December 2014, therefore no income has been recognised for the nancial year ended
31December 2014.
Unrealised losses on derivatives do not reect the true variability of returns to the Group because they do not take into account the effects of
collateral or hedges.
097
ANNUAL REPORT 2014
13 INVESTMENT IN ASSOCIATES
The Group
Note 2014 2013
RM000 RM000
At 1 January 703,947 589,907

Share of prots for the nancial year 125,295 306,268
Additional investment in associates 2,016 23,274
Share of other comprehensive income/(expense) for the nancial year 2,199 (725)
Disposal of associates (3,217) (4,047)
Partial disposal of subsidiary * 54 34,681
Allowance made for impairment losses 37 (175) (403)
Dividend payment ^^ (20,037) (210,327)
At 31 December 844,709 703,947
^^
Dividend payment in specie received from an associate for the nancial year ended 31 December 2013.
* With effect from 30 December 2014, due to the change of the Board of Directors following the disposal of 49% stake to a third party, the Group has
lost control over CIMB Insurance Broker (CIB). Therefore, CIB has ceased to be a subsidiary and is classied as an associate of the Group as at 31
December 2014. Refer to Note 48(k). The amount is inclusive of the gain on remeasurement of equity interest retained as associate of RM30,987,000.
The Company
2014 2013
RM000 RM000
Unquoted shares, at cost 3,834 3,834
(a) Information about associates:
The principal place of business and country of incorporation of the associates is Malaysia unless stated otherwise. All associates are measured using
the equity method. There are no available quoted market prices of the associates.
The direct associate of the Company is:

Name of Associate Principal activities 2014 2013
% %
Touch 'n Go Sdn. Bhd.* Establishment, operation and 20 20

management of an electronic collection
system for toll and transport operators
* Consolidated in the Group as the associate is a subsidiary to the Group.
098
CIMB & YOU
13 INVESTMENT IN ASSOCIATES (CONTINUED)
(a) Information about associates (Continued):
The associates held through CAVs subsidiary, Commerce-KPF are:

% %
Delphax Sdn. Bhd. Manufacturer of reconstructive & spinal 7.0 7.0

implants, trauma & related orthopaedic
surgical products
The associate held through CAVs subsidiary, Commerce Agro Ventures Sdn. Bhd. is:

% %
Landas Bina Aquaventures Sdn. Bhd. Aquaculture 13.3 13.3
The associates held through CAVs subsidiary, Commerce Technology Ventures Sdn. Bhd. are:

% %
Sesama Equilab Sdn. Bhd. Dormant 29 29

Consolidated Liquid Eggs Sdn. Bhd. Dormant 30 30
099
ANNUAL REPORT 2014
The associates held through CAVs subsidiary, Commerce KNB Agro Teroka Sdn. Bhd. are:

% %
Manjung Aquatic Sdn. Bhd. Dealer in business of merchant and 16.3 16.3
dealer in marine products and its by
products
Dragon Power Plantations Sdn. Bhd. Growing and selling vegetables of all 13.3 13.3
kinds and descriptions
PS Fresh Sdn. Bhd. Distribution of farm products 10.0 10.0
The associates held through CIMB Bank are:

% %
Bank of Yingkou Co. Ltd. (Incorporated in the Peoples Republic Banking 19.36 19.99
of China)
In 2014, Bank of Yingkou completed a capital increase of 64,200,000 new shares of RMB1.00 each raising a proceeds of RMB205,440,000. CIMB
Bank did not exercise its proportional pre-emptive rights and accordingly its percentage holding in Bank of Yingkou is reduced from 19.99% to
19.36%.
The associate held through CIMBGs subsidiary, CIMB SI II Sdn. Bhd. is:

% %
Tune Money Sdn. Bhd. ^ Online nancial services 27
100
CIMB & YOU
The associate held through CIMB Groups subsidiary, CIG Berhad is:

% %
CIMB Insurance Brokers Sdn. Bhd. Insurance broking 51
The associates held through CIMBGs subsidiary, CIMB Private Equity Sdn. Bhd. is:

% %
Mezzanine Holdings Sdn. Bhd. Investment holding 18.5 18.5
The associates held through CIMBG's subsidiary, CIMB Real Estate Sdn. Bhd. are:

% %
CMREF 1 Sdn. Bhd. Investment holding 24.9 24.9

Eleven Section Sixteen Sdn. Bhd. Property investment and management 24.9 24.9
Dynamic Concept One Sdn. Bhd. Property investment 24.9 24.9
Jaya Section Fourteen Sdn. Bhd. Property investment and management 24.9 24.9
Project Asia City Sdn. Bhd. Property investment and management 24.9 24.9
Forward Wealth Advisors Sdn. Bhd. Property management services 24.9 24.9
Sentral Parc City Sdn. Bhd. Property investment 24.9 24.9
Lot A Sentral Sdn. Bhd. Property investment 14.1 14.1
CMREF2 Shariah Sdn. Bhd. Real estate fund management 14.29 14.29
Green Transformation Sdn. Bhd. Dormant 14.29 14.29
101
ANNUAL REPORT 2014
The associates held through CIMBG's subsidiary, CIMB Strategic Assets Sdn Bhd are:

% %
Capital Advisors Partners Asia Sdn. Bhd. Investment advisory services 40 40

Capital Advisors Partners Asia Pte. Ltd. Investment advisory services 40 40
Capasia Islamic Infrastructure Fund (General Partner) Limited Managing private fund 40 40
(Incorporated in the Federal Territory of Labuan)
Capasia Asean Infrastructure Fund III (General Partner) Limited General Partner of The CapAsia Asean 40 40
(Incorporated in the Federal Territory of Labuan) Infrastructure Fund III L.P
PT Cap Asia Indonesia (Incorporated in the Republic of Business management consultancy 40 40
Indonesia) services
^
Disposed during the nancial year
(b) The summarised financial information below represents amounts shown in the material associates financial statements prepared
in accordance with MFRSs (adjusted by the Group for equity accounting purposes).
Bank of Yingkou
2014 2013
RM000 RM000
Total assets 45,813,219 38,559,039

Total liabilities (42,130,944) (35,466,900)
Net assets 3,682,275 3,092,139
Revenue 1,566,901 1,203,911
Prot for the nancial year/Total comprehensive income for the nancial year 572,492 479,719
Dividends paid by the associate during the year 98,222
102
CIMB & YOU
(c) Reconciliation of the summarised financial information to the carrying amount of the interest in the associate recognised in the
consolidated financial statements:
Bank of Yingkou
2014 2013
RM000 RM000
Opening net assets as at 1 January 3,092,139 2,612,420

Prot for the nancial year 572,492 479,719
Dividend paid (98,222)
Increase in share capital 115,866
Closing net assets as at 31 December 3,682,275 3,092,139
Interest in associate (%) 19.36% 20%

Interest in associate 712,888 618,428
Goodwill 7,797 7,797
Carrying value 720,685 626,225
(d) Aggregate information of associates that are not individually material:
2014 2013
RM000 RM000
The Groups share of prot for the nancial year 10,797 210,324
The Groups share of other comprehensive expense for the nancial year 2,199 (725)
The Groups share of total comprehensive income for the nancial year 12,996 209,599
Aggregate carrying amount of the Groups interest in these associates 124,024 77,722
14 INVESTMENT IN JOINT VENTURES
The Group
2014 2013
RM000 RM000
At 1 January 309,535 305,843

Share of (loss)/prot for the nancial year (1,942) 55,170
Share of other comprehensive income/(expense) for the nancial year 4,965 (5,742)
Additional investment in joint ventures 1,661 1,623
Capital repayment (3,306) (47,336)
Disposal of joint ventures (69,233)
Exchange uctuation (23)
At 31 December 241,680 309,535
103
ANNUAL REPORT 2014
14 INVESTMENT IN JOINT VENTURES (CONTINUED)
(a) Details of joint ventures:
The principal place of business and country of incorporation of the joint ventures is Malaysia unless stated otherwise. All joint ventures are measured
using the equity method. There are no available quoted market prices of the joint ventures.

through subsidiary company
Name Principal activities 2014 2013
% %
Proton Commerce Sdn. Bhd. Financing of vehicles 50 50

Alam-PE Holdings (L) Inc ^ Owning and chartering offshore supply 51
(Incorporated in the Federal Territory of Labuan) vessels
CIMB-Principal Islamic Asset Management Sdn. Bhd. Establishment and management of unit 50 50
trust fund and fund management
business in accordance with shariah
principles
The South East Asian Strategic Assets Fund LP Invest in equity and equity related 25.1 25.1
(Incorporated in the Cayman Islands) securities of entities operating in
infrastructure, energy and natural
resources and their associated
industries
SEASAF Power Sdn. Bhd. Investment holding 25.1 25.1
SEASAF Highway Sdn. Bhd. Investment holding 25.1 25.1
SEASAF Education Sdn. Bhd. Investment holding 25.1 25.1
SEASAF 1 Resources Pte. Ltd. Investment holding 25.1 25.1
Bangsar Capital Holdings (L) Limited Investment holding 50 50
(Incorporated in the Federal Territory of Labuan)
Tanjung Pinang Villas Sdn. Bhd. Investment holding 50 50
Capasia South East Asian Strategic Asset Fund (General Partner) Investment advisory services 60 60
Ltd. (Incorporated in the Cayman Islands)
Bangsar Capital Pte. Ltd. Investment advisory services 50
CIMBMC Capital Ltd. Investment holding 50
(Incorporated in the Cayman Islands)
AIGF Advisors Pte Ltd. (formerly known as CIMB Capital Pte. Investment advisory services 50
Ltd.) (Incorporated in the Republic of Singapore)
AIGF Management Company Ltd. General Partner 50
(Incorporated in the Cayman Islands)
^
104
CIMB & YOU
(b) Details of material joint venture:
Proton Commerce Sdn. Bhd.
On 22 October 2003, Bumiputra-Commerce Finance Berhad (BCF) (now known as Mutiara Aset Berhad) entered into a joint venture agreement with
Proton Edar Sdn. Bhd. (PESB) for the purposes of building and operating a competitive vehicle nancing business in Malaysia for vehicles distributed
by PESB. Subsequently, a joint ventures was incorporated under the name of Proton Commerce Sdn. Bhd. (PCSB) which is 50%:50% owned by
BCF and PESB respectively. PCSB is primarily responsible for developing, managing and marketing hire purchase loans for vehicles sold to the
customers of PESB. Pursuant to the joint venture, BCF issued RM200 million Perpetual Preference Shares (PPS) which were fully subscribed by
PCSB. Pursuant to the vesting of the nance company business and the related assets and liabilities of BCF to CIMB Bank and the subsequent capital
reduction exercise undertaken by BCF, the BCF PPS were cancelled, and CIMB Bank issued RM200 million PPS to PCSB.
(c) The summarised financial information below represents amounts shown in the material joint venture Financial Statements
prepared in accordance with MFRSs (adjusted by the Group for equity accounting purposes).
PCSB
2014 2013
RM000 RM000
Non-current assets 1,627,977 1,616,285

Current assets 274,984 136,964
Current liabilities (non-trade) (1,300,586) (1,151,620)
Non-current liabilities (non-trade) (280,000) (285,015)
Net assets 322,375 316,614
The above amounts of assets and liabilities include the following:

Cash and cash equivalents 159,090 42,213
Revenue 91,790 91,134
Prot for the nancial year/Total comprehensive income for the nancial year 5,761 9,500
The above prot for the nancial year include the following:
Interest income 86,435 88,671
Interest expense (43,513) (37,293)
Taxation (3,221) (3,610)
105
ANNUAL REPORT 2014
(d) Reconciliation of the summarised financial information to the carrying amount of the interest in the material joint venture
recognised in the consolidated financial statements:
PCSB
2014 2013
RM000 RM000
Opening net assets 1 January 316,614 307,114

Prot for the nancial year 5,761 9,500
Closing net assets as at 31 December 322,375 316,614
Interest in joint venture 50% 50%

Interest in joint venture 161,188 158,307
(e) Aggregate information of joint ventures that are not individually material:
2014 2013
RM000 RM000
The Groups share of prot for the nancial year (4,823) 50,420
The Groups share of other comprehensive income/(expense) for the year 4,965 (5,742)
The Groups share of total comprehensive income for the nancial year 142 44,678
Aggregate carrying amount of the Groups interest in these joint ventures 80,492 151,228
106
CIMB & YOU
15 PROPERTY, PLANT AND EQUIPMENT
Buildings Buildings Renovations, Computer

on on ofce equipment
Leasehold Leasehold Buildings leasehold leasehold equipment, Computer and
land land less on land land less furniture equipment software
Freehold 50 years than freehold 50 years than and and under Motor
The Group land or more 50 years land or more 50 years xtures hardware lease vehicles Total
2014 Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Cost
At 1 January 44,342 27,363 1,804 336,749 57,558 342,844 1,892,135 1,082,699 45,960 183,566 4,015,020
Additions 91 2,705 16,806 245,721 121,104 2,341 17,176 405,944
Disposals/written off (15,846) (5) (16,001) (1,653) (50,522) (113,825) (119,708) (1,825) (21,298) (340,683)
Transfer/reclassications (9,855) 9,855
Reclassied from/(to) intangible
assets 19 1,168 (197,859) 710 53 (195,928)
Reclassied to non-current assets
held for sale 53 (1,273) (3,028) (1,307) (12,497) (7,695) (25,800)
Exchange uctuation 8,916 11,380 191 15,533 67,052 15,630 71 2,662 121,435
At 31 December 36,230 24,330 1,804 333,526 43,599 318,134 1,883,369 1,110,290 46,547 182,159 3,979,988
Accumulated depreciation and

impairment loss
At 1 January 8,758 7,405 1,004 116,112 27,911 214,476 1,210,273 773,408 39,444 69,446 2,468,237
Charge for the nancial year 579 4,210 916 21,637 161,641 105,822 2,242 25,061 322,108
Disposals/written off (207) (8,337) (887) (44,224) (95,377) (70,050) (412) (13,711) (233,205)
Transfer/reclassications (680) 680
Reclassied to intangible assets 19 (108,416) (25) (108,441)
Impairment charged for the
nancial year 451 (35) 416
held for sale 53 (1,230) (430) (3,495) (4,632) (9,787)
Exchange uctuation 560 5,961 83 9,916 43,410 12,612 44 1,440 74,026
At 31 December 9,111 6,754 1,004 117,516 24,528 197,173 1,211,302 822,437 41,318 82,211 2,513,354
Net book value at

31December 2014 27,119 17,576 800 216,010 19,071 120,961 672,067 287,853 5,229 99,948 1,466,634
The above property, plant and equipment include renovations, computer equipment and hardware under construction at cost of RM25,902,762 for the
Group.
107
ANNUAL REPORT 2014
15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Buildings Buildings Renovations, Computer

on on ofce equipment
Leasehold Leasehold Buildings leasehold leasehold equipment, Computer and
land land less on land land less furniture equipment software
Freehold 50 years than freehold 50 years than and and under Motor
The Group land or more 50 years land or more 50 years xtures hardware lease vehicles Total
2013 Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Cost
At 1 January 69,789 33,933 1,804 368,216 93,085 349,143 1,889,631 986,113 46,259 182,287 4,020,260
Additions 117 50,857 293,629 133,803 756 29,592 508,754
Disposals/written off (3,136) (5,700) (29,585) (11,368) (7,594) (175,639) (44,690) (1,481) (27,494) (306,687)
Transfer/reclassications (4,813) 4,813
Reclassied to intangible asset 19 53 (445) (392)
held for sale 53 (456) (870) (1,686) (25,760) (28,772)
Exchange uctuation (21,972) (196) 1,601 (49,615) (110,228) 2,660 426 (819) (178,143)
At 31 December 44,342 27,363 1,804 336,749 57,558 342,844 1,892,135 1,082,699 45,960 183,566 4,015,020
Accumulated depreciation and

impairment loss
At 1 January 8,767 9,716 1,004 120,354 45,454 228,091 1,257,139 703,467 36,761 75,166 2,485,919
Charge for the nancial year 783 4,809 2,148 23,921 182,043 108,878 3,998 16,783 343,363
Disposals/written off (2,808) (8,063) (8,379) (5,249) (153,919) (40,598) (1,538) (21,855) (242,409)
held for sale 53 (286) (816) (11,639) (12,741)
Exchange uctuation (9) (172) 327 (32,287) (74,990) 1,661 223 (648) (105,895)
At 31 December 8,758 7,405 1,004 116,112 27,911 214,476 1,210,273 773,408 39,444 69,446 2,468,237
Net book value at

31December 2013 35,584 19,958 800 220,637 29,647 128,368 681,862 309,291 6,516 114,120 1,546,783
The above property, plant and equipment include renovations, computer equipment and hardware under construction at cost of RM66,559,681 for the
Group.
108
CIMB & YOU
15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Renovations,
ofce
Leasehold Buildings Buildings equipment, Computer
land on on furniture equipment
50 years freehold leasehold and and Motor
The Company or more land land xtures hardware vehicles Total
2014 Note RM000 RM000 RM000 RM000 RM000 RM000 RM000
Cost
At 1 January 653 31 8,559 5,377 161 2,287 17,068
Additions 110 110
Disposals (5) (31) (4,392) (155) (4,583)
Reclassied to non-current assets held for sale 53 (7,695) (7,695)
At 31 December 648 864 1,095 6 2,287 4,900
Accumulated depreciation
At 1 January 79 31 5,064 3,120 161 1,149 9,604
Charge for the nancial year 6 221 91 228 546
Disposals (31) (2,558) (155) (2,744)
Reclassied to non-current assets held for sale 53 (4,632) (4,632)
At 31 December 85 653 653 6 1,377 2,774
Net book value at 31 December 2014 563 211 442 910 2,126
2013
Cost
At 1 January 6,792 31 45,687 5,377 161 1,644 59,692
Additions 793 793
Disposals (5,700) (22,421) (150) (28,271)
Reclassied to non-current assets held for sale 53 (439) (14,707) (15,146)
At 31 December 653 31 8,559 5,377 161 2,287 17,068
At 1 January 2,930 31 23,756 2,676 158 1,424 30,975
Charge for the nancial year 144 1,326 444 3 (125) 1,792
Disposals (2,808) (12,921) (150) (15,879)
Reclassied to non-current assets held for sale 53 (187) (7,097) (7,284)
At 31 December 79 31 5,064 3,120 161 1,149 9,604
Net book value at 31 December 2013 574 3,495 2,257 1,138 7,464
109
ANNUAL REPORT 2014
16 INVESTMENT PROPERTIES
Buildings on Buildings on
leasehold land leasehold land
Buildings on less than 50 years
Freehold land freehold land 50 years or more Total
Note RM000 RM000 RM000 RM000 RM000
The Group
2014
At 1 January/31 December 4,000 4,000
2013
At 1 January 27 6,423 5 10,996 17,451
Reclassied to non-current assets held for sale 53 (27) (6,375) (4) (7,556) (13,962)
Disposals (510) (510)
Fair value adjustments 462 (1) 560 1,021
At 31 December 4,000 4,000
Buildings on
Freehold land freehold land Total
RM000 RM000 RM000
The Company
2014
Cost
At 1 January/31 December 235 561 796
At 1 January 306 306
Charge for the nancial year 19 19
At 31 December 325 325
Net book value at 31 December 2014 235 236 471
Fair value as at 31 December 2014 840 780 1,620
110
CIMB & YOU
16 INVESTMENT PROPERTIES (CONTINUED)
Buildings on
Freehold land freehold land Total
RM000 RM000 RM000
The Company
2013
Cost
At 1 January/31 December 235 561 796
At 1 January 288 288
Charge for the nancial year 18 18
At 31 December 306 306
Net book value at 31 December 2013 235 255 490
Fair value as at 31 December 2013 675 835 1,510
The investment properties are valued annually at fair value based on market values determined by independent qualied valuers. The fair values are within
level 2 of the fair value hierarchy. The fair values have been derived using the sales comparison approach. Sales prices of comparable land and buildings
in close proximity are adjusted for differences in key attributes such as property size.
The following amounts have been reected in the consolidated statement of income:
The Group
2014 2013
RM000 RM000
Rental income 81 197

Operating expenses arising from investment properties that generated the rental income (14) (104)
111
ANNUAL REPORT 2014
17 PREPAID LEASE PAYMENTS
Leasehold
land less
than 50
years Total
RM000 RM000
The Group
2014
Cost
At 1 January 290,913 290,913
Disposals/write-off (1,639) (1,639)
Exchange uctuation 439 439
At 31 December 289,713 289,713
Amortisation and impairment loss

At 1 January 143,012 143,012
Amortisation during the nancial year 11,364 11,364
Disposals/write-off (1,382) (1,382)
Exchange uctuation 300 300
At 31 December 153,294 153,294
Net book value at 31 December 2014 136,419 136,419
2013
Cost
At 1 January 290,853 290,853
Additions 92 92
Disposals/write-off (20) (20)
Exchange uctuation (12) (12)
At 31 December 290,913 290,913
Amortisation and impairment loss

At 1 January 131,240 131,240
Amortisation during the nancial year 11,802 11,802
Disposals/write-off (13) (13)
Exchange uctuation (17) (17)
At 31 December 143,012 143,012
Net book value at 31 December 2013 147,901 147,901
112
CIMB & YOU
17 PREPAID LEASE PAYMENTS (CONTINUED)
Future amortisation of prepaid land lease is as follows:
31 December 31 December
2014 2013
Leasehold Leasehold
land less land less
than 50 than 50
years years
RM000 RM000
The Group
Not later than one year 11,364 11,802
Later than one year and not later than ve years 45,456 47,208
More than ve years 79,599 88,891
136,419 147,901
18 GOODWILL
The Group
2014 2013
Note RM000 RM000
Cost
At 1 January 7,923,928 8,227,051
Goodwill arising from business combinations: 26,435
Arising from initial accounting for the acquisition of selected

RBS businesses in Taiwan 51(a)(i) 26,435
Disposal of subsidiaries 54 (37,226)

At 31 December 8,049,844 7,923,928
Impairment
At 1 January (46,465) (46,465)
Impairment charge during the nancial year (127,945)
Disposal of a subsidiary 54 35,726
At 31 December (138,684) (46,465)
Net book value at 31 December 7,911,160 7,877,463
113
ANNUAL REPORT 2014
18 GOODWILL (CONTINUED)
Allocation of goodwill to cash-generating-units
Goodwill has been allocated to the following cash-generating-units (CGUs). These CGUs do not carry any intangible assets with indenite useful lives:
2014 2013
CGU RM000 RM000
Investment Banking
Retail and Institutional Equity 200,500 328,445
Financial Advisories, Underwriting and Other Fees 56,281 56,281
Asset Management 281,772 281,772
Consumer Banking
Retail Finance Services 1,262,272 1,101,075
Commercial Banking 911,000 911,000
Corporate Banking 419,000 419,000
Islamic Banking 136,000 136,000
Group Cards 425,803
Direct Banking Group * 587,000
Treasury 537,000 537,000
Foreign Banking Operations
Indonesia 2,578,349 2,578,349
Thailand 1,199,277 1,199,277
Others
Insurance ^^ 1,500
Touch n Go 51,082 51,082
Exchange uctuation (147,176) (310,318)
7,911,160 7,877,463
^^
* Direct Banking consists of Direct Access and Credit Cards. Goodwill has been allocated accordingly to Retail Finance Services and Group Cards in
2014.
Impairment test for goodwill
Value-in-use
The recoverable amount of CGU is determined based on the value-in-use calculations. These calculations use pre-tax cash ow projections based on the
2015 nancial budgets approved by the Board of Directors, projected for ve years based on the average historical Gross Domestic Product (GDP)
growth of the country covering a ve year period, revised for current economic conditions. Cash ows beyond the ve year period are extrapolated using
the estimated terminal growth rates and discounted using pre-tax discount rates which reect the specic risks relating to the CGU. The cash ow
projections are derived based on a number of key factors including the past performance and managements expectation of market developments.
114
CIMB & YOU
18 GOODWILL (CONTINUED)
Impairment test for goodwill (Continued)
The estimated terminal growth rates and discount rates used for value-in-use calculations are as follows:
2014 2013
Terminal Terminal
Growth rate Discount rate Growth rate Discount rate
Retail and Institutional Equity 2.00% 10.20% 2.00% 11.64%

Financial Advisories, Underwriting and Other Fees 2.00% 10.20% 2.00% 11.64%
Asset Management 5.00% 7.04% 5.00% 6.55%
Consumer Banking 5.00% 7.04% 5.00% 6.55%
Treasury 5.00% 7.04% 5.00% 6.55%
Foreign banking operations 2.00% 7.06%-10.88% 2.00% 9.78%-10.63%
Others 2.00-5.00% 7.04% 2.00-5.00% 6.55%
Management believes that no reasonably possible change in any of the key assumptions would cause the carrying value of any CGU to exceed its
recoverable amount, except for the Retail and Institutional Equity CGU as disclosed below.
Impairment charge
During nancial year ended 31 December 2014, the impairment charge of RM128 million arises from the Retail and Institutional Equity CGU. The impairment
charge arose as the recoverable amount of the CGU of RM1,370 million was less than the carrying value of the CGU, due to lower than expected
performance of the Equities market.
If the growth in budgeted gross margin used in the value-in-use calculation for the Retail and Institutional Equity CGU had been 1% lower than management's
estimates as at 31 December 2014 (i.e. 11.6% instead of 12.6%), the Group would have recognised a further impairment of goodwill by RM163 million.
If the estimated discount rate used in determining the pre-tax discount rate had been 1% higher than management's estimates (i.e. 11.20% instead of
10.20%), the Group would have recognised a further impairment against goodwill of RM72 million.
115
ANNUAL REPORT 2014
19 INTANGIBLE ASSETS
Securities License Insurance

Customer Core stockbroking Computer and club broker
relationship deposits license software debentures license* Total
The Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000
2014
Cost
At 1 January 211,771 1,348,558 32,507 1,809,473 16,381 899 3,419,589
Additions during the nancial year 348,239 348,239
Disposals during the nancial year (21,251) (21,251)
Reclassied from property, plant and equipment 15 195,928 195,928
Exchange uctuation 55 659 327 922 1,963
At 31 December 211,826 1,348,558 33,166 2,332,716 17,303 899 3,944,468
Accumulated amortisation and impairment

At 1 January 149,745 649,321 32,507 827,399 392 1,659,364
Amortisation during the nancial year 16,580 94,297 212,439 161 323,477
Reclassied from property, plant and equipment 15 108,441 108,441
Exchange uctuation 60 659 3,360 (50) 4,029
At 31 December 166,385 743,618 33,166 1,150,377 503 2,094,049
Net book value at 31 December 2014 45,441 604,940 1,182,339 16,800 899 1,850,419
* Insurance broker license are not amortised as they have an innite life. They are assessed for impairment on an annual basis.
116
CIMB & YOU
19 INTANGIBLE ASSETS (CONTINUED)
Securities License Insurance

Customer Core stockbroking Computer and club broker
relationship deposits license software debentures license* Total
The Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000
2013
Cost
At 1 January 211,772 1,348,558 31,418 1,475,305 11,513 899 3,079,465
Additions during the nancial year 363,426 4,440 367,866
Reclassied from property, plant and equipment 15 392 392
Exchange uctuation (1) 1,089 3,647 428 5,163
At 31 December 211,771 1,348,558 32,507 1,809,473 16,381 899 3,419,589
Accumulated amortisation and impairment

At 1 January 126,381 538,418 31,418 705,238 490 1,401,945
Amortisation during the nancial year 23,365 110,903 142,884 153 277,305
Exchange uctuation (1) 1,089 1,379 (251) 2,216
At 31 December 149,745 649,321 32,507 827,399 392 1,659,364
Net book value at 31 December 2013 62,026 699,237 982,074 15,989 899 1,760,225
* Insurance broker license are not amortised as they have an innite life. They are assessed for impairment on an annual basis.
The above intangible assets include software under construction at cost of RM205,281,166 (2013: RM502,114,781).
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ANNUAL REPORT 2014
19 INTANGIBLE ASSETS (CONTINUED)
The valuation of customer relationship was determined through the sum of the discounted future excess earnings attributable to existing customers over
the remaining life span of the customer relationships. Income from existing credit card, revolving credit, overdraft and trade nance loan base was
projected, adjusted for expected attrition and taking into account applicable costs to determine future excess earnings. The discount rate used in the
valuation of customer relationships was 9.9%-10%, which is arrived at using the weighted average cost of capital adjusted for the risk premium after taking
into consideration the average market cost of equity.
The valuation of core deposits acquired in a business combination was derived by discounting the anticipated future benets in the form of net interest
savings from core deposits. The discount rate used was 8.0%-8.4%, which was derived from the average of the weighted average cost of capital and the
cost of equity, reecting the lower risk premium for core deposit intangibles compared with equity returns.
The remaining amortisation period of the intangible assets with nite life is as follows:
Customer relationships:
Credit card 3.5 years
Overdraft 1 year
Core deposits 2 14 years
Computer software 1 15 years
Club debentures 6 8 years
20 DEPOSITS FROM CUSTOMERS
(i) By type of deposit
The Group
2014 2013
RM000 RM000
Demand deposits 64,732,253 60,469,052

Savings deposits 34,143,233 30,692,933
Fixed deposits 120,592,282 110,777,319
Negotiable instruments of deposit 3,486,878 6,419,989
Others 59,114,141 54,645,009
282,068,787 263,004,302
118
CIMB & YOU
20 DEPOSITS FROM CUSTOMERS (CONTINUED)
(i) By type of deposit (Continued)
The maturity structure of xed deposits and negotiable instruments of deposit is as follows:
The Group
2014 2013
RM000 RM000
Due within six months 100,246,378 97,933,973

Six months to one year 18,498,227 15,849,808
One year to three years 3,107,205 1,850,649
Three years to ve years 1,580,796 1,234,394
More than ve years 646,554 328,484
124,079,160 117,197,308
(ii) By type of customer
The Group
2014 2013
RM000 RM000

Business enterprises 109,294,880 109,298,049
Individuals 111,598,994 92,638,301
Others 51,533,185 51,378,594
282,068,787 263,004,302
21 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS
The Group
2014 2013
RM000 RM000
Licensed banks 28,034,956 16,745,660

Licensed nance companies 796,797 223,121
Licensed investment banks 469,185 755,900
Bank Negara Malaysia 491,349 795,996
Other nancial institutions 2,357,511 2,207,168
32,149,798 20,727,845
119
ANNUAL REPORT 2014
21 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS (CONTINUED)
The maturity structure of deposits and placements of banks and other nancial institutions is as follows:
The Group
2014 2013
RM000 RM000

Six months to one year 1,979,195 6,788,703
One year to three years 392,932 2,404,567
Three years to ve years 306,247 1,414,464
More than ve years 222,288 1,020,634
32,149,798 20,727,845
The Group has undertaken a fair value hedge on the interest rate risk of the negotiable instruments of deposit amounting to RM128,697,000 (2013:
RM126,971,000) using interest rate swaps.
The Group
2014 2013
RM000 RM000
Negotiable instruments of deposit 128,697 126,971

Fair value changes arising from fair value hedges (1,624) (3,267)
127,073 123,704
The fair value loss of the interest rate swaps in this hedge transaction as at 31 December 2014 was RM466,000 (2013: RM2,384,000).
22 FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE
The Group
2014 2013
RM000 RM000
Deposits from customers structured investments 2,876,227 2,132,170

Bills payable 402,839
Debentures 411,635
3,690,701 2,132,170
The Group has issued structured investments, bills payables and debentures, and have designated them at fair value in accordance with MFRS139. The
Group has the ability to do this when designating these instruments at fair value reduces an accounting mismatch, is managed by the Group on the basis
of its fair value, or includes terms that have substantive derivative characteristics.
The carrying amount of the Group at 31 December 2014 of nancial liabilities designated at fair value were RM403,475,000 (2013: RM272,507,000) lower
than the contractual amount at maturity for the structured investments, RM3,610,000 higher than the contractual amount at maturity for the bills payables
and RM78,436,000 higher than the contractual amount at maturity for the debentures. The fair value changes of the nancial liabilities that are attributable
to the changes in own credit risk are not signicant.
120
CIMB & YOU
23 OTHER LIABILITIES

2014 2013 2014 2013
Note RM000 RM000 RM000 RM000
Due to brokers and clients 3,864,299 1,904,117

Expenditure payable 1,974,624 2,000,789 3,361 5,015
Provision for legal claims 90,974 82,783
Sundry creditors 1,349,922 1,367,197 1 4
Insurance fund life and takaful insurance business 68,069 54,894
Allowance for commitments and contingencies (a) 9,182 16,823
Post employment benet obligations 24 352,216 279,160
Credit card expenditure payable 180,824 162,088
Call deposit borrowing 1,042,645 926,272
Unit link contract liabilities 547,669 492,485
Others 1,336,374 1,275,431 699 8
10,816,798 8,562,039 4,061 5,027
(a) The movements in the allowance for commitments and contingencies are as follows:
The Group
2014 2013
RM000 RM000
At 1 January 16,823 17,711

Net allowance written back during the nancial year (8,942) (1,334)
Exchange uctuation 1,301 446
At 31 December 9,182 16,823
24 POST EMPLOYMENT BENEFIT OBLIGATIONS
The Group
2014 2013
Note RM000 RM000
Dened contribution plan EPF (a) 26,952 26,034

Dened benet plans (b) 325,264 253,126
352,216 279,160
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ANNUAL REPORT 2014
24 POST EMPLOYMENT BENEFIT OBLIGATIONS (CONTINUED)
(a) Defined contribution plan
Group companies incorporated in Malaysia contribute to the Employees Provident Fund (EPF), the national dened contribution plan. Once the
contributions have been paid, the Group and the Company have no further payment obligations.
(b) Defined benefit plans
The Group operates nal salary dened benet plans for its employees in Indonesia, Thailand, Korea and Taiwan under Labor Law of respectively
countries, the assets of which are held in separate trustee-administered funds that are governed by local authorities and practice in each country. The
plan calls for benets to be paid to eligible employee at retirement or when the employees resign. The level of benets provided depends on members
length of service and their salary in the nal years leading up to retirement. The majority of benets payments are from trustee-administrated funds;
however, there are also a number of unfunded plans where the company meets the benet payment obligation as it falls due.
The latest actuarial valuations of the plans in Indonesia, Thailand, Korea and Taiwan were carried out in 2014.
The amount recognised in the statements of nancial position in respect of dened benet plans is as follows:
The Group
2014 2013
RM000 RM000
Present value of funded obligations 448,594 399,979

Fair value of plan assets (292,275) (269,439)
Status of funded plan 156,319 130,540

Present value of unfunded obligations 154,761 115,485
Status of dened benet pension plans 311,080 246,025

Impact of minimum funding requirement/asset ceiling 14,184 7,101
Liability in statement of nancial position 325,264 253,126
122
CIMB & YOU
(b) Defined benefit plans (Continued)
The movements in the dened benet obligation over the nancial year are as follows:
Impact of
minimum
funding
Present value Fair value requirement/
The Group of obligation of plan assets Total asset ceiling Total
RM000 RM000 RM000 RM000 RM000
At 1 January 2014 515,464 (269,439) 246,025 7,101 253,126

Current service costs 40,954 40,954 40,954
Overprovision in prior year (2,138) (2,138) (2,138)
Interest expense/(income) 39,591 (24,513) 15,078 673 15,751
Others 11 11 11
Components of dened benets costs recognise in

statement of income 78,407 (24,502) 53,905 673 54,578
Remeasurement:
Return on plan assets, excluding amounts included in
interest expense (11,642) (11,642) (11,642)
Loss from changes in nancial assumptions 23,631 23,631 23,631
Experience gains (1,549) (1,549) (1,549)
Change in asset ceiling, excluding amounts included in
interest expense 5,928 5,928
Components of dened benets costs recognised in

statement of comprehensive income 22,082 (11,642) 10,440 5,928 16,368
Exchange uctuation 28,596 (13,011) 15,585 482 16,067

Contributions:
Employer contributions (4,000) (4,000) (4,000)
Receivables (1,489) (1,489) (1,489)
Payments from plans benets paid (39,705) 30,319 (9,386) (9,386)
At 31 December 2014 603,355 (292,275) 311,080 14,184 325,264
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ANNUAL REPORT 2014
The movements in the dened benet obligation over the nancial year are as follows (Continued):
Impact of
minimum
funding
Present value Fair value requirement/
The Group of obligation of plan assets Total asset ceiling Total
RM000 RM000 RM000 RM000 RM000
At 1 January 2013 638,919 (331,268) 307,651 307,651

Current service costs 53,231 53,231 53,231
Overprovision in prior year (10,527) (10,527) (10,527)
Interest expense/(income) 35,324 (24,955) 10,369 10,369
Components of dened benets costs recognise in

statement of income 78,028 (24,955) 53,073 53,073
Remeasurement:
Return on plan assets, excluding amounts included in
interest income 18,783 18,783 18,783
Loss from changes in demographic assumptions 5,752 5,752 5,752
Gain from changes in nancial assumptions (108,824) (108,824) (108,824)
Experience losses 1,885 1,885 1,885
Change in asset ceiling, excluding amounts included in
interest expense 7,991 7,991
Components of dened benets costs recognised in

statement of comprehensive income (101,187) 18,783 (82,404) 7,991 (74,413)
Exchange uctuation (69,007) 48,724 (20,283) (890) (21,173)

Contributions:
Plan participant 540 540 540
Payments from plans benets paid (31,289) 18,737 (12,552) (12,552)
At 31 December 2013 515,464 (269,439) 246,025 7,101 253,126
124
CIMB & YOU
To develop the expected long-term rate of return on assets assumption, the Group considered the current level of expected returns on risk free
investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is
invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target
asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio.
The signicant principal actuarial assumptions used in respect of the Groups dened benet plans are as follows:
2014 2013
The Group Thailand Indonesia Thailand Indonesia
% % % %
Discount rates 3.50 5.00 8.50 9.00 4.00 9.25

Expected return on plan assets N/A 8.50 N/A 9.25
Future salary increases 2.50 7.00 6.00 8.00 5.00 8.00
Rate of price ination other xed allowance 2.50 N/A 2.50 N/A
The sensitivity of dened benet obligation to changes in the weighted principal assumption is:
Impact on dened benet obligation

Change in assumption Increase in assumption Decrease in assumption
Discount rates 0.5% 1% Decreased by 8.3% Increased by 9.4%

Expected return on plan assets 1.0% Decreased by 0.6% Increased by 0.6%
Future salary increases 1.0% Increased by 10.9% Decreased by 9.7%
Projected unit credit method is used in calculating the sensitivity of the dened benet obligation to signicant actuarial assumptions.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions may be correlated.
125
ANNUAL REPORT 2014
The Groups plan assets are comprised as follows:
The Group
2014 2013
Quoted Unquoted Total Quoted Unquoted Total
RM000 RM000 RM000 RM000 RM000 RM000
Equity instruments (by geography)

Indonesia 70,036 70,036 58,650 58,650
Debt instruments (by type)
Government bonds 37,330 37,330 37,117 37,117
Corporate bonds (investment grade) 44,183 44,183 42,132 42,132
Cash and cash equivalent 54,747 54,747 82,130 82,130
Mutual funds 43,889 43,889 34,722 34,722
Others 42,090 42,090 14,688 14,688
195,438 96,837 292,275 172,621 96,818 269,439
The expected contribution to post employment benets plan for the nancial year ending 31 December 2015 is RM7,895,000 to the Group.
The weighted average duration of the dened benet obligation is 10.8 years (2013: 9.7 years).
Expected maturity analysis of undiscounted dened benets plans:
Less than Between Between Over

a year 1-2 years 2-5 years 5 years Total
2014 RM000 RM000 RM000 RM000 RM000
Dened benets plan 24,741 30,395 119,935 2,502,290 2,677,361
126
CIMB & YOU
25 BONDS AND DEBENTURES
The Group
2014 2013
RM000 RM000
IDR1,500,000 million bonds (Series A: 2011/2014; Series B: 2011/2016) (a) 371,948 403,125
HKD462 million notes (2012/2017) (b) 211,405 198,266
USD350 million notes (2012/2017) (c) 1,225,402 1,141,492
IDR2,000,000 million bonds (Series A: 2012/2015; Series B: 2012/2017) (d) 569,522 543,047
THB Structured debentures (e) 33,234 514,082
THB Short term debenture (f) 1,559,371 2,116,464
IDR600,000 million bonds (Series 1: 2012/2013; Series 2: 2012/2015) (g) 127,243 121,334
HKD171 million notes (2013/2018) (h) 74,944 72,495
HKD430 million notes (2013/2016) (i) 191,921 182,157
USD45 million notes (2013/2015) (j) 157,603 147,711
IDR600,000 million notes (2013/2016) (k) 171,597 163,700
HKD350 million notes (2013/2016) (l) 155,499 147,993
SGD20 million notes (2013/2018) (m) 52,231 51,121
USD20 million notes (2013/2016) (n) 70,099 65,704
IDR1,450,000 million bonds (Series A: 2013/2015; Series B: 2013/2016; Series C: 2013/2018) (o) 411,266 391,979
HKD775 million notes (2013/2016) (p) 349,706 327,820
HKD950 million notes (2013/2016) (q) 419,438 401,694
RM500 million bonds (2011/2016) (r) 500,121 500,081
HKD300 million notes (2014/2019) (s) 139,755
HKD150 million notes (2014/2019) (t) 68,031
AUD100 million notes (2014/2019) (u) 301,530
HKD1,130 million notes (2014/2019) (v) 504,182
7,666,048 7,490,265
(a) IDR1,500,000 million bonds

In 2011, PT CIMB Bank Niaga Tbk (CIMB Niaga), an indirect subsidiary of the Company, issued unsecured IDR1,500,000 million bonds with xed
interest rates. The bonds are divided into two series:
(i) Series A Bond

The nominal value of the bonds amounted to IDR180,000 million with a tenor of 3 years which will mature on 23 December 2014. It bears xed
interest rate of 7.375% per annum. It has been fully redeemed upon its maturity on 23 December 2014.
(ii) Series B Bond

The nominal value of the bonds amounted to IDR1,320,000 million with a tenor of 5 years which will mature on 23 December 2016. It bears xed
interest rate of 8.30% per annum.
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ANNUAL REPORT 2014
25 BONDS AND DEBENTURES (CONTINUED)
(b) HKD462 million notes
On 8 May 2012, CIMB Bank Berhad (CIMB Bank), an indirect subsidiary of the Company, acting through its Labuan Offshore Branch, issued a
HKD462 million 5-year senior unsecured notes under its USD1 billion Euro Medium Term Note Programme established on 27 January 2011. The
notes will mature on 8 May 2017. It bears a coupon rate of 2.55% per annum payable annually in arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign exchange risk of the HKD462 million notes using cross currency
interest rate swaps.
The Group
2014 2013
RM000 RM000
HKD462 million notes, at cost 180,462 180,462

Interest payables 3,464 3,247
211,405 198,266
The fair value gain of cross currency interest rate swaps in this hedge transaction as at 31 December 2014 were RM2,781,058 (2013: RM2,345,539).
(c) USD350 million notes
On 26 July 2012, CIMB Bank issued a USD350 million 5-year senior unsecured notes under its USD1 billion Euro Medium Term Note Programme
established on 27 January 2011. The notes will mature on 26 July 2017. It bears a coupon rate of 2.375% per annum payable semi-annually in
arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk of the USD350 million notes using interest rate swaps.
The Group
2014 2013
RM000 RM000
USD350 million notes, at cost 1,103,725 1,103,725

Foreign exchange translations, interest payables and accretion of discount 128,540 49,306
1,225,402 1,141,492
The fair value loss of interest rate swaps in this hedge transaction as at 31 December 2014 were RM1,386,852 (2013: RM5,047,779).
128
CIMB & YOU
(d) IDR2,000,000 million bonds
On 30 October 2012, CIMB Niaga issued unsecured IDR2,000,000 million bonds with xed interest rates. The bonds are divided into two series:
(i) Series A Bond

The nominal value of the bonds amounted to IDR600,000 million with a tenor of 3 years which will mature on 30 October 2015. It bears xed
(ii) Series B Bond

The nominal value of the bonds amounted to IDR1,400,000 million with a tenor of 5 years which will mature on 30 October 2017. It bears xed
(e) THB Structured debentures
During the nancial year, CIMB Thai Bank issued various unsecured structured debentures amounted to THB340 million with embedded foreign
exchange derivatives and early redemption option. The debentures will mature in 6 months to 1 year from respective issuance dates. The debentures
bear interest rates ranges from 0% 7.0%, depending on the underlying foreign exchange rates movements. CIMB Thai Bank has early redeemed
structured debentures amounted to THB30 million during the nancial year.
(f) THB Short term debentures
The THB Short term debentures carry xed interest rates of 2.2% 2.57% (2013: 2.44% 2.99%) payable at respective maturity dates. The maturity
dates of the short term debentures ranging from 1 months to 6 months (2013: 14 days to 9 months).
(g) IDR600,000 million bonds
On 22 November 2012, PT CIMB Niaga Auto Finance, a wholly-owned subsidiary of CIMB Niaga, has issued an unsecured IDR600,000 million bond
with xed interest rates. The bonds are divided in 2 series:
(i) Series 1
The nominal value of the bonds amounted to IDR152,000 million with a tenor of 1 year which had matured on 22 November 2013 and was
redeemed on its maturity date. It bears xed interest rate of 7.00% per annum.
(ii) Series 2
The nominal value of the bonds amounted to IDR448,000 million with a tenor of 3 year which will mature on 22 November 2015. It bears xed
129
ANNUAL REPORT 2014
(h) HKD171 million notes
On 22 January 2013, CIMB Bank issued a HKD171 million 5-year senior unsecured Fixed Rate Notes under its USD1 billion Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on 22 January 2018. It bears a coupon rate of 1.60% per annum payable quarterly
in arrears.
In 2014, CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign exchange risk of the HKD171 million notes using cross
currency interest rate swaps.
The Group
2014
RM000
HKD171 million notes, at cost 66,549

Fair value changes arising from fair value hedges 8,159
Interest payables 236
74,944
The fair value gain of cross currency interest rate swaps in this hedge transaction as at 31 December 2014 was RM9,216,690.
(i) HKD430 million notes
On 22 January 2013, CIMB Bank issued a HKD430 million 3-year senior unsecured Fixed Rate Notes under its USD1 billion Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on 22 January 2016. It bears a coupon rate of 1.20% per annum payable quarterly
in arrears.
In 2014, CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign currency risk of the HKD430 million notes using cross
The Group
2014
RM000

Foreign exchange translations and interest payables 446
191,921
130
CIMB & YOU
(j) USD45 million notes
On 29 January 2013, CIMB Bank issued 2-year USD45 million senior unsecured oating rate notes under its USD 1 billion Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on the interest payment date falling in or nearest to January 2015. The coupon
rate is calculated based on the 3 month U.S.$ LIBOR plus a margin of 0.70% per annum and coupon is payable quarterly in arrears.
(k) IDR600,000 million notes
PT CIMB Niaga Auto Finance has issued a 3-year IDR200,000 million and IDR400,000 million Monetary Term Notes on 15 February 2013 and 16 April
2013 respectively. The notes are unsecured and will mature on 15 February 2016 and 16 April 2016 respectively. It bears xed interest rate of 8.50%
per annum and 8.20% per annum.
(l) HKD350 million notes
CIMB Bank issued HKD350 million 3-year senior unsecured notes under its USD1 billion nominal value Euro Medium Term Note Programme
established on 27 January 2011. The notes were issued on 14 March 2013 and will mature on 14 March 2016 (subject to adjustment in accordance
with the modied following business day convention). The notes bear a coupon rate of 1.09% per annum payable quarterly in arrears.
The Group
2014
RM000

155,499
The fair value loss of cross currency interest rate swaps in this hedge transaction as at 31 December 2014 was RM17,192,400.
131
ANNUAL REPORT 2014
(m) SGD20 million notes
On 22 March 2013, CIMB Bank, acting through its Singapore Branch, issued SGD20 million 5-year senior unsecured notes under its USD1 billion
nominal value Euro Medium Term Note Programme established on 27 January 2011. The notes will mature on 22 March 2018 (subject to adjustment
in accordance with the modied following business day convention). The notes bear a coupon rate of 1.67% per annum payable semi-annually in
arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk of the SGD20 million notes using interest rate swaps.
The Group
2014 2013
RM000 RM000
SGD20 million notes, at cost 49,826 49,826

Fair value changes arising from fair value hedges (843) (910)
Foreign exchange translations and interest payables 3,248 2,205
52,231 51,121
The fair value loss of interest rate swaps in this hedge transaction as at 31 December 2014 were RM779,888 (2013: RM893,430).
(n) USD20 million notes
On 8 April 2013, CIMB Bank, acting through its Labuan Offshore Branch, issued USD20 million 3-year senior unsecured notes under its USD1 billion
nominal value Euro Medium Term Note Programme established on 27 January 2011. The notes will mature on 8 April 2016. The notes bear a oating
coupon rate of 3 month U.S.$ LIBOR plus 79 basis points per annum payable quarterly in arrears.
(o) IDR1,450,000 million bonds
CIMB Niaga, has issued 2-year Series A, 3-year Series B and 5-year Series C Senior Bond of IDR285 billion, IDR315 billion and IDR850 billion
respectively, totalling IDR1.450 trillion on 20 November 2013. The bonds will mature on 20 November 2015, 20 November 2016 and 20 November
2018 for Series A, Series B and Series C respectively. The bonds bear xed coupon rate of 8.75% per annum, 9.15% per annum and 9.75% per
annum for Series A, Series B and Series C respectively payable quarterly in arrears from the date of issuance.
(p) HKD775 million notes
On 29 August 2013, CIMB Bank issued HKD775 million 3-year senior unsecured notes under its USD1 billion nominal value Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on 29 August 2016 (subject to adjustment in accordance with the modied
following business convention). The notes bear a oating coupon rate of 3 month HIBOR plus 56 basis points per annum payable quarterly in arrears.
CIMB Bank has undertaken cash ow hedge on the HKD775 million notes against foreign exchange risk.
132
CIMB & YOU
(q) HKD950 million notes
On 20 December 2013, CIMB Bank issued HKD950 million 3-year senior unsecured notes under its USD1 billion nominal value Euro Medium Term
Note Programme established on 27 January 2011. The notes will mature on 20 December 2016. It bears a xed coupon rate of 1.45% per annum
payable annually in arrears.
The Group
2014
RM000

419,438
(r) RM500 million bonds
In 2011, CIMB Bank obtained funding through securitisation of its hire purchase receivables to Merdeka Kapital Berhad (MKB), a special purpose
vehicle set up to undertake multi securitisation transactions. Arising from the adoption of MFRS 10 Consolidated Financial Statements in 2013, the
Group has consolidated the silo of MKB in relation to CIMB Banks hire purchase receivables, as this silo has been legally ring-fenced for this
transaction. As a result, the RM500 million funding received by CIMB Bank from MKB is recognised as bonds by the Group.
1st tranche of RM180 million is raised for an effective interest rate of 2.80% per annum, payable on monthly basis with coupon payment due on every
28th of the month, and will mature on 28 October 2016.
2nd tranche of RM320 million is raised for an effective interest rate of 3.00% per annum, payable on monthly basis with coupon payment due on every
28th of the month, and will mature on 28 October 2016.
133
ANNUAL REPORT 2014
(s) HKD300 million notes
On 14 May 2014, CIMB Bank issued HKD300 million 5-year senior unsecured notes under its USD1 billion nominal value Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on 14 May 2019 (subject to adjustment in accordance with the modied following
business day convention). It bears a xed coupon rate of 2.70% per annum payable annually in arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign currency risk of the HK300 million notes using cross currency interest
rate swaps.
The Group
2014
RM000

Interest payables 2,320
139,755
(t) HKD150 million notes
On 21 August 2014, CIMB Bank issued HKD150 million 5-year senior unsecured notes under its USD1 billion nominal value Euro Medium Term Note
Programme established on 27 January 2011. The notes will mature on 21 August 2019 (subject to adjustment in accordance with the modied
following business day convention). It bears a xed coupon rate of 2.47% per annum payable annually in arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk of the HKD150 million notes using interest rate swaps.
The Group
2014
RM000

Fair value changes arising from fair value hedges 199
Foreign exchange translations and interest payables 6,013
68,031
The fair value gain of interest rate swaps in this hedge transaction as at 31 December 2014 was RM319,611.
134
CIMB & YOU
(u) AUD100 million notes
On 25 September 2014, CIMB Bank Berhad issued AUD100 million 5-year senior xed rate notes (the Notes) under its USD5.0 billion nominal value
Euro Medium Term Note Programme established on 15 August 2014. The Notes will mature on 25 September 2019. It bears a coupon rate of 4.375%
per annum payable annually in arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign currency risk of the AUD100 million notes using cross currency
The Group
2014
RM000
AUD100 million notes, at cost 289,403

Interest payables and accretion of discount 3,370
301,530
(v) HKD1,130 million notes
On 20 November 2014, CIMB Bank Berhad issued HKD1,130 million 5-year senior xed rate notes (the Notes) under its USD5.0 billion nominal
value Euro Medium Term Note Programme established on 15 August 2014. The Notes will mature on 12 November 2019 (subject to adjustment in
accordance with the modied following business day convention). The Notes bear a coupon rate of 2.46% per annum payable quarterly in arrears.
CIMB Bank has undertaken fair value hedge on the interest rate risk and foreign currency risk of the HKD500 million notes using interest rate swaps.
The Group
2014
RM000

Fair value changes arising from fair value hedges (1,384)
Foreign exchange translations and interest payables 10,731
224,609
The fair value loss of interest rate swaps in this hedge transaction as at 31 December 2014 was RM923,022.
135
ANNUAL REPORT 2014
(v) HKD1,130 million notes (Continued)
CIMB Bank has also undertaken fair value hedge on the interest rate risk and foreign currency risk of the HKD630 million notes using cross currency
The Group
2014
RM000

279,573
26 OTHER BORROWINGS

2014 2013 2014 2013
Commercial Papers/Medium Term Notes (a) 1,635,743 1,197,193 1,635,743 1,197,193

Term loan (b) 4,735,914 3,978,904 2,669,272 2,626,662
Others (c) 2,919,150 2,596,630
9,290,807 7,772,727 4,305,015 3,823,855
136
CIMB & YOU
26 OTHER BORROWINGS (CONTINUED)
(a) The Conventional Commercial Papers (CPs), Conventional Medium Term Notes (MTNs) and Islamic Medium Term Notes (iMTNs) were issued by
the Company.
The CPs, MTNs and iMTNs are unsecured. The aggregate outstanding nominal value of the CPs, MTN, and iMTN at any point in time shall not exceed
RM6 billion.
The main features of the CPs are as follows:
(i) In 2013, the Company issued the following CPs:

RM150 million issued on 28 February 2013 and had matured on 28 May 2013. The CPs carry an interest rate of 3.4%.
3 months CPs and 6 months CPs of RM300 million and RM400 million respectively issued on 28 November 2013 and had matured on 28
February 2014 and 28 May 2014 respectively. The CPs carry an interest of 3.4% and 3.55% respectively.
The main features of the MTNs and iMTNs are as follows:
(i) The MTNs and iMTNs were issued at par. The MTNs carry a xed interest rate of 4.20% per annum and the iMTNs carry a xed dividend rate of
5.05% per annum;
(ii) On 30 May 2008, the Company issued RM350 million of iMTNs which had matured on 30 May 2013.
(iii) In 2011, the Company issued RM500 million MTNs which will mature on 14 April 2016. The MTNs carry an interest rate of 4.20% per annum.
(iv) In 2014, the Company issued RM1,130 million MTNs which will mature on 28 December 2015. The MTNs carry an interest rate of 4.30% per
annum.
(b) In 2009, the Company secured an unsecured term loan amounting to RM1.0 billion to renance its existing borrowings. The term loan is repayable in
full at the end of three years on 26 June 2015 and bears a oating interest rate of 3.81% (2013: 3.69%) per annum.
In 2011, the Company secured another unsecured term loan amounting to RM1.0 billion. The term loan is repayable in full at the end of three years
on 27 October 2014. During the nancial year, the facility has been renewed by 3 years from 27 October 2014 to 27 October 2017. It bears a oating
interest rate of 3.53% (2013: 3.36%) per annum.
In 2012, the Company secured a term loan amounting to USD190 million from its subsidiary which bears a oating rate of 1.2% plus USD Cost of
fund per annum. The term loan is secured by shares of its subsidiaries. The term loan is partially drawdown up to USD160.5 million as of 31 December
2013. The term loan will mature on 30 October 2017.
Include in term loans are term loans of RM2,730,742,000 (2013: RM1,968,211,000) undertaken by CIMB Bank from various nancial institutions for
working capital purposes. The loans have maturities ranging between 31 December 2015 (2013: 25 March 2014) being the earliest to mature and 29
March 2019 (2013: 29 March 2019) being the longest to mature. Interest rates charged are between 0.74% to 1.27% per annum (2013: 0.64% to
1.26% per annum).
(c) Included in other are short term and long term borrowing of RM1,759,884 (2013: RM1,592,603,000) undertaken by CIMB Niaga and its subsidiaries.
The maturity dates ranges from 1 to 5 years (2013: 1 to 5 years), with interest rates charged ranging from 0.93% to 13.00% per annum (2013: 0.95%
to 12.75% per annum).
137
ANNUAL REPORT 2014
27 SUBORDINATED OBLIGATIONS

2014 2013 2014 2013
Subordinated Notes 2010/2017 IDR1,380,000 million (a) 397,957 377,946

Subordinated Notes 2010/2020 IDR1,600,000 million (b) 450,495 429,837
Subordinated Bonds 2008/2038 RM1.0 billion, callable with step-up
in 2018 (c) 1,015,786 1,015,786
Subordinated Bonds 2008/2058 RM1.0 billion, optional redemption
in 2018 (d) 985,510 980,009
Subordinated Notes THB544 million (e) 57,873 54,392
Subordinated Sukuk RM850 million (1st tranche due in 2024, optional
redemption in 2019; 2nd tranche due in 2021, optional redemption in
2016; 3rd tranche due in 2022, optional redemption in 2017) (f) 669,744 660,370
Subordinated Debt 2010/2020 RM1 billion, callable in 2015 (g) 1,005,912 1,010,663
Subordinated Debt 2010/2025 RM1 billion, callable in 2020 (g) 1,022,606 1,027,377
Subordinated Notes 2009/2059 RM1.38 billion, optional redemption
in 2019 (h) 1,380,552 1,380,552 1,380,552 1,380,552
Subordinated Notes 2010/2060 RM150 million, callable with step-up
in 2015 (i) 151,619 151,873 151,873 151,873
Subordinated Notes 2010/2060 RM600 million, callable with step-up
in 2020 (i) 495,552 485,870 608,977 608,977
Subordinated Debt RM1.5 billion (1st tranche due in 2021, callable in
2016; 2nd tranche due in 2026, callable in 2021) (j) 1,419,086 1,407,973
Subordinated Notes 2011/2021 THB3 billion, optional redemption in
2016 (k) 326,848 307,191
Subordinated Notes 2012/2022 THB3 billion, optional redemption in
2017 (l) 321,079 301,769
Subordinated Debt 2012/2022 RM1.5 billion, callable in 2017 (m) 1,412,633 1,404,940
Subordinated Debts 2013/2023 RM1.05 billion (n) 1,057,601 1,063,868
Hybrid 2009/2019 THB2.5 billion, callable with step-up in 2014 (o) 6,284
Subordinated Notes 2014/2024 RM400 million (p) 411,641
12,582,494 12,066,700 2,141,402 2,141,402
(a) Subordinated Notes 2010/2017 IDR1,380,000 million
The unsecured Subordinated Notes 2010/2017 IDR1,380,000 million (the Notes) were issued by CIMB Niaga on 8 July 2010. The Notes were
issued at scriptless, with term of 7 years from the emission date and with xed interest rate of 11.30% per annum. The Notes were listed on the
Indonesia Stock Exchange on 9 July 2010.
(b) Subordinated Notes 2010/2020 IDR1,600,000 million
The unsecured Subordinated Notes 2010/2020 IDR1,600,000 million (the Notes) were issued by CIMB Niaga on 23 December 2010. The Notes
were issued at scriptless, with term of 10 years from the emission date and with xed interest rate of 10.85% per annum. The Notes were listed on
the Indonesia Stock Exchange on 27 December 2010.
138
CIMB & YOU
27 SUBORDINATED OBLIGATIONS (CONTINUED)
(c) Subordinated Bonds 2008/2038 RM1.0 billion
The RM1.0 billion unsecured subordinated bonds (the RM1.0 billion Bonds) were issued by CIMB Bank at par on 7 October 2008 under the
Innovative Tier-1 Capital Securities Programme (T-1 Issue) which was approved by the Securities Commission on 24 September 2008. The RM1.0
billion Bonds are due on 7 October 2038 and callable with step-up interest on 7 October 2018. The RM1.0 billion Bonds bear an interest rate of 6.7%
per annum payable semi-annually in arrears for the rst ten years, after which the interest rate will be reset at a rate per annum equal to the 3-month
KLIBOR plus 2.98%.
CIMB Bank may at its option, subject to the prior approval of BNM, redeem the RM1.0 billion Bonds in whole but not in part, on 7 October 2018 or
any interest payment date thereafter, at their principal amount plus accrued interest.
The RM1.0 billion Bonds qualify as Tier-1 Capital for the purpose of the RWCR computation (subject to the gradual phase-out treatment under
Basel3).
(d) Subordinated Bonds 2008/2058 RM1.0 billion
The RM1.0 billion unsecured subordinated bonds (the Bonds) is part of the Non-Innovative Tier-1 Stapled Securities Issuance Programme (the
programme) which was approved by the Securities Commission on 17 December 2008. Under the programme, CIMB Bank is allowed to raise Non-
Innovative Tier 1 Capital of up to RM4.0 billion in nominal value outstanding at any one time comprising:
(i) Non-Cumulative Perpetual Capital Securities issued by CIMB Bank; and

(ii) Subordinated Notes issued by Commerce Returns Berhad, a wholly-owned subsidiary of CIMB Bank.
The Bonds under the rst issuance were issued at par on 26 December 2008 and are due on 26 December 2058, with optional redemption on 26
December 2018 or any distribution payment date thereafter. The Bonds bear an interest rate of 7.2% per annum payable semi-annually in arrears.
Subject to the prior approval of BNM, CIMB Bank shall redeem the RM1.0 billion subordinated bonds in whole but not in part, on 26 December 2018
or any distribution payment date thereafter, at their principal amount plus accrued interest.
The Bonds qualify as Tier I Capital for the purpose of the total capital ratio computation (subject to the gradual phase-out treatment under Basel 3).
CIMB Bank has undertaken fair value hedge on the interest rate risk amounting to RM800 million of the RM1.0 billion Bonds using interest rate swaps.
The Group
2014 2013
RM000 RM000
Subordinated bonds, at cost 800,000 800,000

Interest payables 947 947
785,273 779,772
The fair value loss of interest rate swaps in these hedge transactions as at 31 December 2014 was RM18,423,933 (2013: RM23,889,116).
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ANNUAL REPORT 2014
(e) Subordinated Notes THB544 million
The THB544 million subordinated notes (the THB544 million Notes) represent the promissory notes previously issued by few nancial institutions
which had been transferred to CIMB Thai after the series of merger.
(f) Subordinated Sukuk RM850 million
The RM850 million unsecured subordinated Sukuk (the Sukuk) is part of the Tier-2 Junior Sukuk programme by the Companys indirect subsidiary,
CIMB Islamic Bank Berhad (CIMB Islamic), which was approved by the Securities Commission on 22 May 2009. Under the programme, CIMB
Islamic is allowed to raise Tier-2 capital of up to RM2.0 billion in nominal value outstanding at any one time.
The rst tranche of the Sukuk of RM300 million was issued at par on 25 September 2009 and are due on 25 September 2024, with optional
redemption on 25 September 2019 or any or any periodic payment date thereafter. The Sukuk bears a prot rate of 5.85% per annum payable semi-
annually in arrears. Included in the RM300 million subordinated Sukuk was RM162.20 million (31 December 2012: RM170.15 million: 1 January 2012:
RM182.15 million) subordinated Sukuk which was held by subsidiaries of the Company, hence the amount was eliminated at consolidated level.
On 21 April 2011, the second tranche of the Sukuk of RM250 million was issued at par and is due on 21 April 2021, with optional redemption on 21
April 2016 or any periodic payment date thereafter. The Sukuk bears a prot rate of 4.20% per annum, payable semi-annually in arrears.
CIMB Islamic has undertaken fair value hedge on the prot rate risk of the RM250 million subordinated Sukuk using Islamic prot rate swaps.
The Group
2014 2013
RM000 RM000
Subordinated Sukuk, at cost 250,000 250,000

Fair value changes arising from fair value hedges 644 2,436
252,721 254,513
The fair value gain of Islamic prot rate swaps in these hedge transactions as at 31 December 2014 was RM808,493 (2013: RM2,881,581).
On 18 September 2012, the third tranche of the Sukuk of RM300 million was issued at par and is due on 15 September 2022, with optional
redemption on 18 September 2017 or any periodic payment date thereafter. The Sukuk bears a prot rate of 4.00% per annum, payable semi-annually
in arrears.
CIMB Islamic has undertaken fair value hedge on the prot rate risk of the RM300 million subordinated Sukuk using Islamic prot rate swaps.
The Group
2014 2013
RM000 RM000
Subordinated Sukuk, at cost 270,530 270,000

269,084 267,016
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CIMB & YOU
(f) Subordinated Sukuk RM850 million (Continued)
Included in the RM300 million subordinated Sukuk was RM29,470,000 (2013: RM30 million) subordinated Sukuk which was held by subsidiaries of
the Company, hence the amount was eliminated at consolidated level.
The fair value loss of Islamic prot rate swaps in this hedge transaction as at 31 December 2014 was RM5,233,159 (2013: RM5,864,579).
The RM850 million Sukuk qualify as Tier II Capital for the purpose of the total capital ratio computation of CIMB Islamic (subject to the gradual phase-
out treatment under Basel 3).
(g) Subordinated Debts RM2 billion
CIMB Bank has on 23 December 2010 completed the issuance of RM2.0 billion unsecured Subordinated Debt.
The RM2.0 billion Subordinated Debt issuance was issued under the RM5.0 billion Subordinated Debt Programme which was approved by the
Securities Commission on 2 March 2009 and 24 September 2010 (for certain variation of terms).
The Subordinated Debt was issued in 2 separate tranches, a RM1.0 billion tranche with a maturity of 10 years callable at the end of year 5 and on
each subsequent coupon payment dates thereafter (10 years tranche), and another RM1.0 billion tranche with a maturity of 15 years callable at the
end of year 10 and on each subsequent coupon payment dates thereafter (15 years tranche). Redemption of the Subordinated Debt on the call
dates shall be subject to Bank Negara Malaysias approval.
The coupon rate for the Subordinated Debt is 4.3% and 4.8% for the 10 years tranche and the 15 years tranche respectively. There is no step up
coupon after call dates. Proceeds from the issuance will be used for CIMB Banks working capital purposes.
The RM2.0 billion subordinated debts qualify as Tier II Capital for the purpose of the total capital ratio computation (subject to the gradual phase-out
treatment under Basel 3).
In 2013, the Bank has terminated fair value hedge accounting with cumulative adjustment to the carrying amount of the hedged item, to be amortised
in the statement of income based on recalculated effective interest rate over the residual period to maturity.
Subordinated debts with maturity of 10 years
The Group
2014 2013
RM000 RM000
Subordinated debts, at cost 1,000,000 1,000,000

Unamortised fair value adjustments 4,852 9,603
1,005,912 1,010,663
141
ANNUAL REPORT 2014
(g) Subordinated Debts RM2 billion (Continued)
Subordinated debts with maturity of 15 years
The Group
2014 2013
RM000 RM000

Unamortised fair value adjustments 21,422 26,193
1,022,606 1,027,377
(h) Subordinated Notes 2009/2059 RM1.38 billion
The RM1.38 billion unsecured subordinated xed rate notes (the RM1.38 billion Notes) is part of the Subordinated Notes Programme which was
approved by the Securities Commission on 12 June 2009. Under the programme, the Company is allowed to issue subordinated xed rate notes of
up to RM3.0 billion in nominal value.
The RM1.38 billion Notes under the rst issuance were issued at par on 30 June 2009 and are due on 30 June 2059, with optional redemption on 30
June 2019 or any periodic payment date thereafter. It bears an interest rate of 7.30% per annum payable semi-annually in arrears for the rst ten years,
after which the interest rate will be reset at a rate per annum equal to the 6 months KLIBOR + 1% plus original credit spread. The original credit spread
is calculated as 7.3% less the 10 year swap rate as per the 11 am BNM xing rate on 23 June 2009.
(i) Subordinated Notes 2010/2060 RM150 million and RM600 million
The RM750 million unsecured Cumulative Subordinated Fixed Rate Notes (the RM750 million Notes) issued by the Company on 5 April 2010,
comprising a callable 5 year tranche and 10 year tranche, amounting to RM150 million and RM600 million respectively, was part of the Subordinated
Notes Programme which was approved by the Securities Commission on 12 June 2009. Under the programme, the Company is allowed to issue
subordinated xed rate notes of up to RM3.0 billion in nominal value.
Included in the RM600 million subordinated notes was RM111,950,000 (2013: RM119,575,000) subordinated notes which was held by subsidiaries
of the Company, hence the amount was eliminated at consolidated level.
Both tranches have a maturity of 50 years, with call option for the Issuer to redeem at year 5 and on each subsequent coupon payment date, and
year 10 and on each subsequent coupon payment date respectively. The 5 year Tranche pays a semi annual coupon rate of 5.3% per annum whilst
the 10 year Tranche pays a coupon of 6.35% per annum. The coupon will be stepped up by 2.0% in the event the Company does not redeem the
RM750 million Notes on the respective rst call date.
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CIMB & YOU
(j) Subordinated Debt 2011/2021 RM1.5 billion
CIMB Bank has on 8 August 2011 completed the issuance of RM1.5 billion unsecured Subordinated Debt.
The RM1.5 billion Subordinated Debt issuance was the second issuance under the RM5.0 billion Subordinated Debt Programme which was approved
by the Securities Commission on 2 March 2009 and 24 September 2010 (for certain variation of terms).
The Subordinated Debt was issued in 2 separate tranches, a RM1.35 billion tranche with a maturity of 10 years callable at the end of year 5 and on
each subsequent coupon payment dates thereafter ("Tranche 1"), and another RM150 million tranche with a maturity of 15 years callable at the end
of year 10 and on each subsequent coupon payment dates thereafter ("Tranche 2"). Redemption of the Subordinated Debt on the call dates shall be
subject to Bank Negara Malaysias approval.
The coupon rate for the Subordinated Debt is 4.15% and 4.70% for Tranche 1 and Tranche 2 respectively. There is no step up coupon after call dates.
Proceeds from the issuance will be used for CIMB Bank's working capital purposes.
The RM1.5 billion Subordinated Debt qualies as Tier II Capital for the purpose of the total capital ratio computation (subject to the gradual phase-out
CIMB Bank has undertaken fair value hedge on the interest rate risk of the RM1.35 billion and RM150 million subordinated debts using interest rate
swaps.
RM1.35 billion Subordinated debt
The Group
2014 2013
RM000 RM000

1,264,682 1,255,557
Included in the RM1.35 billion subordinated debt was RM109,170,000 (2013: RM123,100,000) subordinated debt which was held by subsidiaries of
the Company, hence the amount was eliminated at consolidated level.
The fair value gain of interest rate swaps in these hedge transactions as at 31 December 2014 was RM2,900,680 (2013: RM12,339,335).
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ANNUAL REPORT 2014
(j) Subordinated Debt 2011/2021 RM1.5 billion (Continued)
RM150 million Subordinated debt
The Group
2014 2013
RM000 RM000
Subordinated debts, at cost 150,000 150,000

Fair value changes arising from fair value hedges 1,584 (327)
154,404 152,416
The fair value gain of interest rate swaps in these hedge transactions as at 31 December 2014 was RM1,995,613 (2013: fair value loss of RM320,673).
(k) Subordinated Notes 2011/2021 THB3 billion
On 14 July 2011, CIMB Thai issued 3,000,000 units unsecured 10-year subordinated notes (the THB3 billion Notes). The THB3 billion Notes were
issued at a price of THB1,000 per unit. The THB3 billion Notes carry constant interest rate of 5.35% per annum payable every 6 months on 14 July
and 14 January.
The THB3 billion Notes will mature on 14 July 2021. CIMB Thai may exercise its right to early redeem the subordinated notes after 5 years subject to
approval by the Bank of Thailand.
(l) Subordinated Notes 2012/2022 THB3 billion
On 9 November 2012, CIMB Thai issued 3,000,000 units unsecured 10-year subordinated notes (the THB3 billion Notes). The THB3 billion Notes
were issued at a price of THB1,000 per unit. The THB3 billion Notes carry xed interest rate of 4.80% per annum payable semi annually on 9
November and 9 May.
The THB3 billion Notes will mature on 9 November 2022. CIMB Thai may exercise its right to early redeem the subordinated notes after 5 years
subject to approval by the Bank of Thailand.
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CIMB & YOU
(m) Subordinated Debt 2012/2022 RM1.5 billion
CIMB Bank has on 30 November 2012 completed the issuance of RM1.5 billion unsecured subordinated debt.
The RM1.5 billion subordinated debt issuance was the third issuance under the RM5.0 billion Subordinated Debt Programme which was approved
by the Securities Commission on 2 March 2009 and 24 September 2010 (for certain variation of terms).
The subordinated debt was issued as a single tranche of RM1.5 billion tranche with a maturity of 10 years callable at the end of year 5 and on each
subsequent coupon payment dates thereafter. Redemption of the subordinated debt on the call dates shall be subject to Bank Negara Malaysias
approval.
The coupon rate for the subordinated debt is 4.15% per annum. There is no step up coupon after call dates. Proceeds from the issuance will be used
for CIMB Bank's working capital purposes.
The RM1.5 billion Subordinated Debt qualies as Tier II Capital for the purpose of the total capital ratio computation (subject to the gradual phase-out
CIMB Bank has undertaken fair value hedge on the interest rate risk of the RM1.5 billion subordinated debt using interest rate swaps.
The Group
2014 2013
RM000 RM000

1,412,633 1,404,940
Included in the RM1.5 billion subordinated debt was RM71,450,000 (2013: RM72,950,000) subordinated debt which was held by subsidiaries of the
Company, hence the amount was eliminated at consolidated level.
The fair value loss of interest rate swaps in this hedge transaction as at 31 December 2014 was RM15,413,576 (2013: RM19,938,421).
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ANNUAL REPORT 2014
(n) Subordinated Debts 2013/2023 RM1.05 billion
On 1 August 2013 CIMB Bank has successfully set up a Basel 3 Compliant Tier 2 Subordinated Debt Issuance Programme of up to RM10.0 billion
in nominal value (Basel 3 Subordinated Debt Programme). The Basel 3 Subordinated Debt Programme was approved by Securities Commission on
10June 2013.
CIMB Bank has on 13 September 2013 completed the inaugural issuance of a RM750 million Subordinated Debt under the Basel 3 Subordinated
Debt Programme. The Subordinated Debt was issued as a single tranche of RM750 million tranche at 4.80% per annum with a maturity of 10 years
non-callable at the end of year 5.
CIMB Bank has on 16 October 2013 completed the second issuance of a RM300 million Subordinated Debt under the Basel 3 Subordinated Debt
Programme. The Subordinated Debt was issued as a single tranche of RM300 million at 4.77% per annum with a maturity of 10 years non-callable
at the end of year 5.
Redemption of the Subordinated Debts on the call dates shall be subject to Bank Negara Malaysia (BNM)'s approval. There is no step up coupon
after call dates. The proceeds of the Subordinated Debts shall be made available to CIMB Bank, without limitation for its working capital, general
banking and other corporate purposes and/or if required, the renancing of any existing subordinated debt previously issued by the Issuer under other
programmes established by CIMB Bank.
The RM1.05 billion Subordinated Debt qualies as Tier II capital under the BNMs Basel III Capital Adequacy Framework (Capital Components). The
subordinated debt may be written off, either fully or partially, at the discretion of BNM, at the point of non-viability as determined by BNM.
(o) Hybrid 2009/2019 THB2.5 billion
On 27 March 2009, CIMB Thai Bank issued 2,500,000 units cumulative hybrid instruments with a face value of THB1,000 each, or a total of THB2,500
million. The notes have a tenor of 10 years, maturing on 27 March 2019, with an early redemption call option 5 years after the issue date. They bear
interest at 5.25% per annum, for the rst 5 years, and 6.75% per annum for years 6-10. Interest is due every 27 March and 27 September (under the
specied conditions).
There is a call option in the following two cases:

i. If there are signicant changes in tax laws that increase the tax liabilities of the issuer
ii. If the notes cannot be counted as hybrid Tier II debts of CIMB Thai
In both cases, early redemption must be pre-approved by the Bank of Thailand.
On 27 March 2014, CIMB Thai Bank has exercised its option to early redeem all cumulative hybrid instruments amounting to THB2.5 billion, maturing
on 27 March 2019, with an early redemption call option 5 years after the issue date (under the specied conditions). This early redemption was
approved by BoT notication For Kor Kor (02) 53/2557 about the pre-redemption of cumulative hybrid instruments.
(p) Subordinated Notes 2014/2024 RM400 million
On 7 July 2014, CIMB Thai Bank issued RM400 million 10-years non callable 5 years Basel 3 compliant Tier 2 subordinated notes (RM400 million
Notes) to their overseas investors. The RM400 million Notes carry xed interest rate of 5.60% per annum payable every six months on 7 July and
7January.
The RM400 million Notes will mature on 5 July 2024. CIMB Thai Bank may exercise its right to early redeem the subordinated notes after 5 years
subject to approval by the Bank of Thailand.
CIMB Thai Bank has an approval from Bank of Thailand to classify the RM400 million Notes as Tier II capital according to the correspondence For
Kor Kor. (02) 453/2557.
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CIMB & YOU
28 SHARE CAPITAL
The Group and the Company

2014 2013
RM000 RM000
Ordinary shares of RM1.00 each:

Authorised:
At 1 January/31 December 10,000,000 10,000,000
Issued and fully paid shares of RM1.00 each:

At 1 January 7,729,346 7,432,775
Issued during the nancial year:
Private placement (i) 500,000
Dividend reinvestment scheme issued on:
24 April 2014 (ii) 107,176
30 October 2014 (iii) 87,229
8 May 2013 (iv) 183,076
30 October 2013 (v) 113,495
At 31 December 8,423,751 7,729,346
(a) Increase in issued and paid-up capital
During the nancial year, the Company increased its issued and paid-up capital from RM7,729,345,939 to RM8,423,750,993 via:
(i) Issuance of 500 million new ordinary shares of RM1.00 each arising from private placement pursuant to the shareholders mandate under
Section 132D of the Companies Act, 1965 obtained at the Companys Annual General Meeting on 17 April 2013. The private placement was
completed on 23 January 2014;
(ii) Issuance of 107,176,094 new ordinary shares of RM1.00 each arising from the Dividend Reinvestment Scheme relating to electable portion of
the second interim dividend of 10.33 sen in respect of nancial year ended 31 December 2013, as disclosed in Note 41(a);
(iii) Issuance of 87,228,960 new ordinary shares of RM1.00 each arising from the Dividend Reinvestment Scheme relating to electable portion of the
rst interim dividend of 10.00 sen in respect of nancial year ended 31 December 2014, as disclosed in Note 41(b).
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ANNUAL REPORT 2014
28 SHARE CAPITAL (CONTINUED)
(a) Increase in issued and paid-up capital (Continued)
In respect of nancial year 31 December 2013, the Company increased its issued and paid-up capital from RM7,432,774,646 to RM7,729,345,939
via:
(iv) Issuance of 183,075,800 new ordinary shares of RM1.00 each arising from the Dividend Reinvestment Scheme relating to electable portion of
the second interim dividend of 18.38 sen in respect of nancial year ended 31 December 2012, as disclosed in Note 41(c);
(v) Issuance of 113,495,493 new ordinary shares of RM1.00 each arising from the Dividend Reinvestment Scheme relating to electable portion of
the rst interim dividend of 12.82 sen in respect of nancial year ended 31 December 2013, as disclosed in Note 41(d).
(b) Dividend Reinvestment Scheme
On 18 January 2013 the Company announced the proposal to put in place a dividend reinvestment scheme that would allow the shareholders of the
Company (Shareholders) to have the option to elect to reinvest their cash dividends in new ordinary shares (New CIMB Shares)(Dividend
Reinvestment Scheme).
The Dividend Reinvestment Scheme has received the necessary approval from Bursa Securities on 5 February 2013, its shareholders via an
Extraordinary General Meeting held on 25 February 2013 and from Bank Negara Malaysia on 25 March 2013.
The scheme would allow the Board, at its absolute discretion, to offer either the Dividend Reinvestment Scheme or full cash for the Groups dividends
as and when it deems appropriate vis--vis the Groups capital strategy and plans.
The rationale of the Dividend Reinvestment Scheme are as follows:
(i) CIMBs capital management strategy
As part of the Companys capital management strategy, the Dividend Reinvestment Scheme would provide the Company additional exibility in
managing its capital position.
(ii) Enhancing shareholder value with reasonable dividend yield
The Dividend Reinvestment Scheme will provide an opportunity for shareholders to enjoy dividend yield while preserving capital for the Company.
Since the announcement of Basel III, many global banks have taken a cautious stance in capital management including that of reducing dividend
payments. Whilst this stance will improve a banks capital ratios, such actions may result in lower dividend yields and may eventually reduce
investors interest in the banking industry.
The Dividend Reinvestment Scheme provides an alternative for banks to balance the demand of its investors and its capital objective.
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CIMB & YOU
28 SHARE CAPITAL (CONTINUED)
(b) Dividend Reinvestment Scheme (Continued)
(iii) Alternative mode of payment of Dividends
The implementation of the Dividend Reinvestment Scheme will provide an avenue for shareholders to elect to exercise the option to reinvest all
or part of their dividends into New CIMB Shares in lieu of receiving cash dividend.
The shareholders shall have the following options in respect of an option to reinvest announced by the Board under the Dividend Reinvestment
Scheme:
(i) to elect to participate by reinvesting the whole or part of the Electable Portion at the issue price for New CIMB Shares.
In the event that only part of the Electable Portion is reinvested, the shareholders shall receive cash for the remaining portion of the Electable
Portion not reinvested; or
(ii) to elect not to participate in the option to reinvest and thereby receive the entire dividend entitlement wholly in cash.
29 PREFERENCE SHARES
The Group
2014 2013
Note RM000 RM000
Liability
Non-cumulative guaranteed preference shares 29(a) 733,522 719,251
Redeemable prefence shares 29(b) 36,666 128,196
770,188 847,447
Equity
Perpetual preference shares 29(c) 200,000 200,000
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ANNUAL REPORT 2014
29 PREFERENCE SHARES (CONTINUED)
(a) Non-cumulative guaranteed preference shares
The Group
2014 2013
RM000 RM000
Authorised
Non-cumulative guaranteed preference shares of USD0.01 each
At 1 January/31 December 8 8
Issued and fully paid

Non-cumulative guaranteed preference shares of USD0.01 each
Non-cumulative guaranteed preference shares 728,250 728,250
The Group has undertaken fair value hedge on the interest rate risk of the USD200 million non-cumulative guaranteed preference shares using interest
rate swaps.
The Group
2014 2013
RM000 RM000
Non-cumulative guaranteed preference shares, at cost 728,250 728,250

Foreign exchange translations and interest payables (23,598) (69,098)
733,522 719,251
The fair value gain of interest rate swaps in this hedge transaction as at 31 December 2014 was RM32,924,146 (2013: RM60,765,255).
The USD200 million 6.62% Non-cumulative Guaranteed Preference Shares of USD0.01 each at a premium of USD999.99 per share were issued on
2 November 2005 by SBB Capital Corporation (SCC), a wholly-owned subsidiary company of CIMB Bank incorporated in Labuan. The main
features of the SCC Preference Shares are as follows:
(i) The SCC Preference Shares are entitled to dividends which are payable in arrears on 2 May and 2 November up to and including 2 November
2015 at a xed rate of 6.62% per annum.
(ii) On 2 November 2015 (First Optional Redemption Date) and on each dividend date thereafter, SCC may at its option, subject to the prior approval
of BNM, redeem the SCC Preference Shares in whole but not in part, at their principal amount plus accrued but unpaid dividends. If the SCC
Preference Shares are not called on 2 November 2015, dividends will be reset at a oating rate per annum equal to three-month LIBOR plus
2.53%, payable quarterly on 2 February, 2 May, 2 August and 2 November.
(iii) The SCC Preference Shares will not be convertible into ordinary shares.
(iv) The SCC Preference Shares are guaranteed by CIMB Bank on a subordinated basis. If the SCC Preference Shares have not been redeemed in
full on or prior to 2 November 2055, CIMB Bank shall cause the substitution of the SCC Preference Shares with Preference Shares issued by
CIMB Bank (Substitute Preference Shares) and the SCC Preference Shares shall be mandatory exchanged for such Substitute Preference
Shares having economic terms which are in all material aspects equivalent to those of the SCC Preference Share.
The SCC Preference Shares were admitted to the Ofcial List of the Singapore Exchange Securities Trading Limited and Labuan International Financial
Exchange Inc on 4 November 2005 and 24 November 2005 respectively, and qualify as Tier-1 Capital for the purpose of the RWCR computation,
subject to the limit as prescribed in the Guidelines on Innovative Tier 1 Capital Instruments issued by Bank Negara Malaysia on 24 December 2004.
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CIMB & YOU
(b) Redeemable preference shares
The Group
2014 2013
Note RM000 RM000
Authorised
Redeemable preference shares of RM0.01 each
At 1 January/31 December (i) 1,000 1,000
Redeemable preference shares of RM0.01 each

At 1 January/31 December (ii) 350 350

Redeemable preference shares of RM0.01 each (i)
At 1 January 100,000 100,000
Redeemed during the nancial year (63,334)
At 31 December 36,666 100,000
Redeemable preference shares of RM0.01 each (ii)

At 1 January 28,196 28,196
Redeemed during the nancial year (28,196)
At 1 January/31 December 28,196
(i) On 2 October 2006, a subsidiary, Commerce Agro Ventures Sdn Bhd (CAgV), has allotted and issued redeemable preference shares (RPS)
to an external party amounting to RM100,000,000, comprising RM1,000,000 at nominal value and RM99,000,000 at premium.
The main features of the RPS are as follows:

The RPS does not carry any xed dividends.
The maturity date of the RPS is either the date corresponding to the 15th anniversary of the issue date or such other date as the Board may
resolve.
In the event of winding-up of CAgV or other repayment of capital, the RPS carries the rights to have the surplus assets applied rst in paying
off the RPS holders.
The RPS rank pari passu in all aspects among themselves.
Each RPS shall be liable to be redeemed at the option of the holders at any time after the issue date at the redemption price.
On 29 September 2014, a subsidiary, CAgV has distributed RM95,000,000, comprising RM950,000 at nominal value and RM94,050,000 at
premium via capital reduction. RM63,333,333 is distributed to an external party and RM31,666,667 is distributed to the Immediate Holding
Company, Commerce Asset Ventures Sdn Bhd (CAV).
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ANNUAL REPORT 2014
(b) Redeemable preference shares (Continued)
(ii) On 20 February 2006, a subsidiary, Commerce-KPF Ventures Sdn Bhd (CKPF), has allotted and issued redeemable preference shares (RPS)
to an external party amounting to RM35,000,000, comprising RM350,000 at nominal value and RM34,650,000 at premium.
The main features of the RPS are as follows:
The RPS carries a xed cumulative dividend of 5% per annum.
The maturity date of the RPS is either:-
(i) the date corresponding to the 5th anniversary of the issue date; or
(ii) the date corresponding to the 7th anniversary of the issue date; or
(iii) such other date as the Board may resolve.
Subsequently, CKPF has allotted and issued RPS to an external party amounting to RM17,500,000, comprising RM175,000 at nominal value
and RM17,325,000 at premium.
The main features of the RPS are as follows:-
The RPS carries a xed cumulative dividend of 5% per annum.
The maturity date of the RPS is either:-
(i) the date corresponding to the 5th anniversary of the issue date; or
(ii) the date corresponding to the 7th anniversary of the issue date; or
(iii) such other date as the Board may resolve.
During the year, CKPF has fully redeemed the RPS, of which RM16,839,697 is converted into ordinary shares.
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CIMB & YOU
(c) Perpetual preference shares
The Group
2014 2013
RM000 RM000
Authorised
Perpetual preference shares of RM1.00 each

Perpetual preference shares of RM1.00 each
The main features of the perpetual preference shares (PPS) are as follows:
(i) The PPS has no right to dividends.
(ii) In the event of liquidation, dissolution or winding-up of CIMB Bank, PCSB as holder of the PPS will be entitled to receive full repayment of the
capital paid up on the PPS in priority to any payments to be made to the ordinary shareholders of CIMB Bank.
(iii) The PPS rank pari passu in all aspects among themselves.
(iv) CIMB Bank must not redeem or buy back any portion of the PPS and the PPS will be perpetual except for any capital reduction exercise
permitted by the Companies Act, 1965 and as approved by Bank Negara Malaysia.
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ANNUAL REPORT 2014
30 RESERVES

2014 2013 2014 2013
Share premium ordinary shares 9,973,065 5,832,520 9,973,065 5,832,520

Statutory reserves (a) 5,650,713 4,933,045
Regulatory reserve (b) 593,795 1,743,883
Capital reserve (c) 137,104 137,104 55,982 55,982
Exchange uctuation reserves (d) (1,183,616) (2,106,977)
Revaluation reserve
Financial investments available-for-sale (e) 149,847 (42,709)
Retained earnings (f) 14,060,733 12,215,358 1,241,859 1,306,058
Sharebased payment reserve (g) 119,739 101,642
Other reserves
Hedging reserve net investment hedge (h) (342,574) (94,195)
Hedging reserve cash ow hedge (i) (7,323) (11,314)
EOP reserve shares purchased pending release (j) (202,468) (168,683)
Dened benets reserves (k) (11,725) 2,682
28,937,290 22,542,356 11,270,906 7,194,560
(a) The statutory reserves of the Group are maintained by the certain banking subsidiaries in Malaysia in compliance with the BNM guidelines and include
a reserve maintained by a subsidiary in compliance with the Bursa Malaysia Securities Berhad Rules and Regulations. The statutory reserves of the
foreign banking subsidiaries and foreign stockbroking subsidiaries of the Group in compliance with various rules and regulations of various authorities.
These reserves are not distributable by way of cash dividends.
(b) Regulatory reserve of the Group is maintained by the banking subsidiaries in Malaysia as an additional credit risk absorbent to ensure robustness on
the loan impairment assessment methodology with the adoption of MFRS 139 beginning 1 January 2010.
(c) The capital reserve of the Group arose from the dilution of equity interest in subsidiaries resulted from the shares option scheme undertaken by the
subsidiary in previous years.
(d) Exchange translation differences have arisen from translation of net assets of Labuan offshore subsidiaries, foreign branches and foreign subsidiaries.
These translation differences are shown under exchange uctuation reserves.
(e) Movement of the revaluation reserve of nancial investments available-for-sale is shown in the statements of comprehensive income.
154
CIMB & YOU
30 RESERVES (CONTINUED)
(f) As at 31 December 2014, the Company has sufcient tax exempt account balances to pay tax exempt dividends of up to RM477,522,037 (2013:
RM477,522,037) out of its retained earnings.
(g) The Share-based payment reserve arose from the Equity Ownership Plan (EOP), the Groups share-based compensation benet.
(h) Hedging reserve arises from net investment hedge activities undertaken by the Group on overseas operations and foreign subsidiaries. The reserve
is non-distributable and is reversed to the statement of income when the foreign operations and subsidiaries are partially or fully disposed.
(i) Hedging reserve arises from cash ow hedge activities undertaken by the Group to hedge held-to-maturity securities, nancial investment available-
for-sale, senior bonds issued and interbranch lending against foreign exchange risk. The reserve is non-distributable and is reversed to the statement
of income when the hedged items affect the statement of income or termination of the cash ow hedge.
(j) EOP reserve reects the Groups shares purchased for EOP under share-based compensation benets, pending release to its employees.
(k) Dened benet reserves relate to the cumulative actuarial gains and losses on dened benet plans.
31 SHARES HELD UNDER TRUST AND TREASURY SHARES
(a) Shares held under trust
The Group
2014 2013
RM000 RM000
At 1 January/31 December 563 563
As an integral part of the CIMBBs restructuring exercise in 2005, the then existing CIMBBs ESOS and Employee Equity Scheme (EES) ceased to
have any value pursuant to the delisting from Bursa Malaysia Securities Berhad. Accordingly, consistent with the fair treatment to all Executive
Employees and the spirit of continuity of the scheme in existence, the schemes were modied with terms and conditions remaining and subsequently
called the Modied EESOS. For the EES, the remaining options were accelerated and exercised prior to the completion of the CIMBBs restructuring.
The CIMBB restructuring exercise and the schemes were approved by the shareholders of the Company during the Extraordinary General Meeting
held on 8 September 2005. The modied schemes entailed the following:
(i) The setting up of a trust to subscribe for all the remaining CIMBB shares under the unexercisable tranches under the CIMBB ESOS (ESOS
Trust) prior to the implementation of the CIMBB restructuring. The subscription was facilitated through an accelerated vesting of the unexercisable
options. The funding for the subscription for the CIMBB shares by the trustee for both Trusts was provided by the Company by way of a loan.
155
ANNUAL REPORT 2014
31 SHARES HELD UNDER TRUST AND TREASURY SHARES (CONTINUED)
(a) Shares held under trust (Continued)
(ii) Under the CIMBB restructuring exercise, both trustees have opted for new shares of the Company at the ratio of approximately 1.146 of the
Companys shares for one CIMBB share. The Executive Employees or the CEO are entitled to instruct the trustee as to the sale, subject to a
minimum market price that is higher than a price to be determined by dividing the existing adjusted exercise price by the ratio of approximately
1.146, plus transaction costs and any income tax liability, if applicable, of such shares of the Company in the manner as previously provided
under the CIMBB ESOS.
(iii) The number of the Companys shares subject to such instruction per annum will be in the same proportion as per the adjusted total outstanding
number under the previous CIMBB ESOS multiplied by the ratio approximately 1.146.
(iv) If the Executive Employee or CEO opt to instruct the trustee to transfer or sell in the market, upon such instruction under the Modied EESOS
and Modied CEO Option, a proportion of the proceeds received by the Trustee, plus any income tax, if applicable, will be retained by the Trustee
and used to offset the Loan and the excess (net of transaction costs) will be payable to the Executive Employee or CEO.
As at 31 December 2014, there are 258,000 (2013: 258,000) units remain unexercised.
(b) Treasury shares, at cost

2014 2013
Units Units
000 RM000 000 RM000
At 1 January 5 41 4 32
Purchased during the year * 1 1 9
At 31 December 5 42 5 41
* denote 200 units
The shareholders of the Company, via an ordinary resolution passed at the Annual General Meeting held on 15 April 2014, approved the Companys
plan and mandate to authorise the Directors of the Company to buy back its own shares up to 10% of existing total paid-up share capital. The
Directors of the Company are committed to enhance the value of the Company to its shareholders and believe that the share buyback can be applied
in the best interests of the Company and its shareholders.
During the nancial year, the Company bought back 200 (2013: 1,199) of its issued share capital at an average price (including transaction costs) of
RM7.16 per share (2013: RM7.51 per share), from the open market. As at the reporting date, there were 4,608 ordinary shares held as treasury shares
(2013: 4,408). The total consideration paid for the share buyback during the nancial year, including transaction costs is RM1,432 (2013: RM9,000)
and was nanced by internally generated funds. Treasury shares have no rights to vote, dividends and participation in other distribution.
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CIMB & YOU
32 INTEREST INCOME

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Loans, advances and nancing:

Interest income other than recoveries 12,959,181 11,614,486 2 2
Unwinding income ^ 88,250 97,301
Money at call and deposits with nancial institutions 455,385 619,485 52,472 19,786
Reverse repurchase agreements 149,032 323,632
Financial assets held for trading 519,141 485,227
Financial investments available-for-sale 1,193,931 1,142,158
Financial investments held-to-maturity 645,622 350,604
Others 37,366 13,199 30 251
16,047,908 14,646,092 52,504 20,039

Accretion of discounts less amortisation of premiums 11,095 31,208
16,059,003 14,677,300 52,504 20,039
^
Unwinding income is interest income earned on impaired nancial assets
33 INTEREST EXPENSE

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Deposits and placements of banks and other nancial institutions 280,481 160,130
Deposits from other customers 5,574,600 5,040,837
Repurchase agreements 64,104 189,930
Bonds and debentures 246,483 200,468
Subordinated obligations 611,389 582,840 146,790 146,790
Financial liabilities designated at fair value 106,235 40,368
Negotiable certicates of deposits 118,187 127,430
Other borrowings 322,706 304,877 121,834 121,796
Others 79,270 76,274
7,403,455 6,723,154 268,624 268,586
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ANNUAL REPORT 2014
34 NET NON-INTEREST INCOME

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Net fee and commission income:
Commissions 689,754 591,745

Fee on loans, advances and nancing 523,127 463,767
Portfolio management fees 22,401 31,688
Service charges and fees 633,820 588,611
Corporate advisory fees 56,844 118,135
Guarantee fees 75,394 67,043
Other fee income 337,962 287,478
Placement fees 33,794 68,924
Underwriting commission 57,645 82,775
Fee and commission income 2,430,741 2,300,166

Fee and commission expense (527,774) (448,509)
Net fee and commission income 1,902,967 1,851,657
Gross dividend income from:

In Malaysia
Subsidiaries 1,846,982 2,427,649

Outside Malaysia
84,434 62,408 1,846,982 2,427,649
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CIMB & YOU
34 NET NON-INTEREST INCOME (CONTINUED)

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Net (loss)/gain arising from nancial assets held for trading:
Realised (77,858) (114,909)

Unrealised (124,405) (205,092)
(202,263) (320,001)
Net gain/(loss) arising from derivative nancial instruments:
Realised 772,391 807,702 2,849 10,181

Unrealised 231,374 (262,947) (3,462) (5,458)
1,003,765 544,755 (613) 4,723
Net (loss)/gain arising from nancial liabilities designated at fair value:
Realised (60,487) (36,089)

Unrealised (34,478) 256,899
(94,965) 220,810
Net gain/(loss) arising from hedging activities 16,344 (36,839) (3,532)
159
ANNUAL REPORT 2014
34 NET NON-INTEREST INCOME (CONTINUED)

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Net gain from sale of nancial investments available-for-sale 119,822 280,508
Net gain from redemption/maturity of nancial investments held-to-

maturity 2,640 126,917
Income from assets management and securities services 263,081 219,998
Brokerage income 511,572 534,010
Other non-interest income:

Foreign exchange gain/(loss):
Realised 152,576 213,096 37 (14,646)
Unrealised (167,486) 281,009 12,024 (42,572)
Share of gain from recovery of impaired loans 113,190
Gain on remeasurement of equity interests retained as an associate 30,987
Gain on deemed disposal/disposal of interests in subsidiaries 49,553 10,139
Rental income 16,882 14,951 284 2,018
Gain on disposal of property, plant and equipment/assets held for sale 68,875 38,300 23,556
Gain on disposal of leased assets 42 38
Gain on disposal of associates and joint ventures 17,430 515,063
Gain on revaluation of investment properties 1,021
Other non-operating income 295,592 472,065 362
Underwriting surplus before management expenses (Note (a)) 18,807 22,558
Loss on disposal of foreclosed properties (61,557) (40,827)
421,701 1,640,603 12,707 (31,644)
4,029,098 5,124,826 1,859,076 2,397,196
(a) Underwriting surplus before management expenses is as follows:
The Group
2014 2013
RM000 RM000
Insurance premium earned 240,400 219,440

Net claims incurred (205,755) (174,417)
Net commissions (15,838) (22,465)
18,807 22,558
160
CIMB & YOU
35 OVERHEADS

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Personnel costs
Salaries, allowances and bonus 3,674,600 3,674,963
Pension costs (dened contribution plan) 280,420 271,612
Pension costs (dened benet plans (Note 24(b))) 54,578 53,073
Overtime 34,133 31,812
Staff incentives and other staff payments 253,013 234,232 5 4
Medical expenses 107,358 95,878 6
Mutual separation scheme 217,164
Termination benets 3,909 12,107
Others 201,560 284,723 233 23
Establishment costs
Depreciation of property, plant and equipment 322,108 343,360 546 1,792
Depreciation of investment properties 19 18
Amortisation of prepaid lease payments 11,364 11,802
Rental 472,263 467,167
Repair and maintenance 450,730 423,296 152 269
Outsourced services 284,662 269,510
Security expenses 129,305 103,929
Others 250,239 209,950 (79) 2,400
Marketing expenses
Sales commission 8,483 9,718
Advertisement 260,151 282,607 4
Others 102,928 100,688 74 101
Administration and general expenses
Amortisation of intangible assets 323,477 277,305
Legal and professional fees 172,114 161,809 7,810 8,113
Stationery 63,519 68,155
Communication 145,165 150,038 10 41
Incidental expenses on banking operations 41,087 36,206
Insurance 223,032 208,494
Others 421,765 458,272 2,911 3,539
8,291,963 8,457,870 11,681 16,310
161
ANNUAL REPORT 2014
35 OVERHEADS (CONTINUED)
The above expenditure includes the following statutory disclosures:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Directors remuneration (Note 38) 7,115 13,454 1,710 1,511

Rental of premises 263,370 238,291
Hire of equipment 12,031 11,110
Lease rental 50,095 52,285
Auditors remuneration
Audit
Statutory audit (PricewaterhouseCoopers Malaysia*) 4,467 4,183 481 488
Statutory audit (other member rms of PricewaterhouseCoopers International
Limited*) 6,276 4,096
Limited review (PricewaterhouseCoopers Malaysia*) 888 758
Limited review (other member rms of PricewaterhouseCoopers International
Limited*) 837 702
Other audit related (PricewaterhouseCoopers Malaysia*) 958 403 23 73
Other audit related (other member rms of PricewaterhouseCoopers
International Limited*) 328 249
Non-audit
Non-audit services (PricewaterhouseCoopers Malaysia*) 363 1,709 5 844
Non-audit services (other member rms of PricewaterhouseCoopers
International Limited*) 2,902 1,112
Other auditors remuneration
Statutory audit
Non-audit services
Property, plant and equipment written off 7,148 3,949
* PricewaterhouseCoopers Malaysia and other member rms of PricewaterhouseCoopers International Limited are separate and independent legal
entities.
162
CIMB & YOU
36 ALLOWANCE MADE FOR IMPAIRMENT LOSSES ON LOANS, ADVANCES AND FINANCING
The Group
2014 2013
RM000 RM000
Net allowance made during the nancial year:

Individual impairment allowance 952,176 179,523
Portfolio impairment allowance 887,551 858,902
Impaired loans and nancing:

Recovered (342,424) (403,839)
Written off 24,765 26,021
1,522,068 660,607
37 ALLOWANCE MADE/(WRITTEN BACK) FOR IMPAIRMENT LOSSES
The Group
2014 2013
RM000 RM000
Financial investments available-for-sale:

Financial investments held-to-maturity:

Net allowance written back during the nancial year (338) (2,056)
Goodwill:
Impairment made during the nancial year 127,945
Associates:
Net allowance made during the nancial year 175 403
162,497 39,915
163
ANNUAL REPORT 2014
38 DIRECTORS REMUNERATION
The Directors of the Company in ofce during the nancial year are as follows:
Executive Directors
Dato Sri Mohamed Nazir bin Abdul Razak (resigned on 30 August 2014)
Non-Executive Directors
Dato Zainal Abidin bin Putih
Dato Robert Cheim Dau Meng
Glenn Muhammad Surya Yusuf
Watanan Petersik
Kenji Kobayashi (appointed on 16 April 2014)
Robert Neil Coombe (appointed on 16 April 2014)
Joseph Dominic Silva (appointed on 30 June 2014)
Dato Sri Mohamed Nazir bin Abdul Razak (redesignated on 1 September 2014)
Teoh Su Yin (appointed on 8 October 2014)
Tan Sri Dato Md Nor bin Md Yusof (resignated on 31 August 2014)
Datuk Dr Syed Muhamad bin Syed Abdul Kadir (retired on 30 June 2014)
Dato Hamzah bin Bakar (retired on 15 April 2014)
Katsumi Hatao (retired on 25 February 2014)

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Executive Directors
Salary and other remuneration 1,907^ 5,135^
Benets-in-kind 15 3,865
1,922 9,000
Fees 1,735 1,262 809 804
Other remuneration 3,150^ 2,922^ 873 685
Benets-in-kind 308 270 28 22
5,193 4,454 1,710 1,511
7,115 13,454 1,710 1,511
^
These salary and other remuneration include bonus accruals in relation to the directorship of certain Directors in certain subsidiaries. The Directors
bonus for the nancial year 2014 will be paid in tranches, spread over nancial year 2015, while for nancial year 2013, it was similarly paid in tranches,
spread over nancial year 2014. A similar condition is also imposed on the bonus for certain key personnel.
164
CIMB & YOU
38 DIRECTORS REMUNERATION (CONTINUED)
Salary and/ Salary and/

or other Benets- The Group or other Benets- The Company
Fees remuneration in-kind Total Fees remuneration in-kind Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
2014
Executive Directors
Dato Sri Mohamed Nazir bin Abdul Razak 1,907 15 1,922
1,907 15 1,922
Dato Sri Mohamed Nazir bin Abdul Razak 321 436 50 807 34 245 279
Tan Sri Dato Md Nor bin Md Yusof 84 280 28 392 68 276 28 372
Dato Zainal Abidin bin Putih 282 483 37 802 126 88 214
Dato Hamzah bin Bakar 78 177 41 296 37 25 62
Dato Robert Cheim Dau Meng 592 51 643
Datuk Dr Syed Muhamad bin Syed
Abdul Kadir 195 452 27 674 63 34 97
Glenn Muhammad Surya Yusuf 333 340 74 747 114 49 163
Watanan Petersik 138 219 357 126 55 181
Katsumi Hatao 18 9 27 16 7 23
Kenji Kobayashi 81 22 103 72 20 92
Joseph Dominic Silva 98 88 186 57 26 83
Robert Neil Coombe 81 28 109 72 25 97
Teoh Su Yin 26 24 50 24 23 47
1,735 3,150 308 5,193 809 873 28 1,710
1,735 5,057 323 7,115 809 873 28 1,710
165
ANNUAL REPORT 2014
38 DIRECTORS REMUNERATION (CONTINUED)
Salary and/ Salary and/

or other Benets- The Group or other Benets- The Company
Fees remuneration in-kind Total Fees remuneration in-kind Total
2013
Executive Directors
Dato Sri Mohamed Nazir bin Abdul Razak 5,135 3,865 9,000
5,135 3,865 9,000
Tan Sri Dato Md Nor bin Md Yusof 126 405 23 554 102 400 22 524
Dato Zainal Abidin bin Putih 300 547 37 884 126 72 198
Dato Hamzah bin Bakar 186 291 21 498 126 56 182
Dato Robert Cheim Dau Meng 766 121 887
Datuk Dr Syed Muhamad bin Syed
Abdul Kadir 270 549 26 845 126 59 185
Cezar Peralta Consing 7 7 6 6
Glenn Muhammad Surya Yusuf 145 126 42 313 114 36 150
Watanan Petersik 114 206 320 102 34 136
Katsumi Hatao 114 32 146 102 28 130
1,262 2,922 270 4,454 804 685 22 1,511
1,262 8,057 4,135 13,454 804 685 22 1,511
39 TAXATION

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Taxation based on the prot for the nancial year:
Malaysian income tax 778,695 893,225 13,281 5,525

Foreign tax 309,246 514,214
1,087,941 1,407,439 13,281 5,525

Deferred taxation (Note 10) 39,480 (159,171) (859) (129)
Over accrual in prior years (25,555) (7,861) (691)
1,101,866 1,240,407 11,731 5,396
166
CIMB & YOU
39 TAXATION (CONTINUED)
Reconciliation between tax charge and the Malaysian tax rate:

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Prot before taxation 4,276,423 5,849,229 1,631,275 2,132,339
Tax calculated at a rate of 25% 1,069,106 1,462,307 407,819 533,085

Income not subject to tax (109,261) (276,246) (466,665) (593,873)
Effects of different tax rates in other countries (156,608) (179,303)
Effects of change in tax rates (226)
Expenses not deductible for tax purposes 329,490 303,516 71,268 66,184
Utilisation of previously unrecognised tax losses (5,306) (61,780)
Over accrual in prior years (25,555) (7,861) (691)
Tax charge of current year 1,101,866 1,240,407 11,731 5,396
40 EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share of the Group are calculated by dividing the net prot attributable to equity holders of the parent by the weighted average
number of ordinary shares in issue during the nancial year.
2014 2013
RM000 RM000
Prot for the nancial year (RM000) 3,106,808 4,540,403

Weighted average number of ordinary shares in
issue (000) 8,288,256 7,570,924
Basic earnings per share (expressed in sen per share) 37.5 60.0
(b) Diluted earnings per share
The Group has no dilution in its earnings per ordinary share in the current and previous nancial year as there are no dilutive potential ordinary shares.
167
ANNUAL REPORT 2014
41 DIVIDENDS PER ORDINARY SHARE

2014 2013
Gross per Amount Gross per Amount
share of dividend share of dividend
net of tax net of tax
sen RM000 sen RM000
Interim dividend 10.33 850,091a 18.38 1,366,143c

Interim dividend 10.00 833,652b 12.82 976,352d
20.33 1,683,743 31.20 2,342,495
(a) The dividend consists of electable portion of 10.33 sen per ordinary shares, of which 8.53 sen per ordinary share was reinvested in new ordinary
shares in accordance with the DRS and a total of RM148,087,512 cash dividend was paid on 23 April 2014.
(b) The dividend consists of electable portion of 10.00 sen per ordinary shares, of which 7.09 sen per ordinary share was reinvested in new ordinary
shares in accordance with the DRS and a total of RM242,239,404 cash dividend was paid on 29 October 2014.
(c) The dividend consists of electable portion of 18.38 sen per ordinary shares, of which 15.52 sen per ordinary share was reinvested in new ordinary
shares in accordance with the DRS and a total of RM212,765,822 cash dividend was paid on 8 May 2013.
(d) The dividend consists of electable portion of 12.82 sen per ordinary shares, of which 10.28 sen per ordinary share was reinvested in new ordinary
shares in accordance with the DRS and a total of RM193,232,679 cash dividend was paid on 30 October 2013.
Dividends recognised as distributions to owners:
The single-tier second interim dividend for the previous nancial year were approved by the Board of Directors on 11 February 2014 and paid in the current
nancial year. This is shown as a deduction from the retained earnings in the statements of changes in equity in the current nancial year.
The Directors have declared a single-tier interim dividend of 10.00 sen per ordinary share on 8,336,517,525 ordinary shares amounting to RM833,651,753
for the nancial year ended 31 December 2014 under Dividend Reinvestment Scheme (DRS). The interim dividend of 10.00 sen per ordinary share was
approved by the Board of Directors on 11 August 2014 and paid on 29 October 2014.
The Directors have proposed a second interim single-tier dividend of 5.00 sen per ordinary share, on 8,423,746,385 ordinary shares amounting to RM421
million in respect of the nancial year ended 31 December 2014, to be paid in 2015. The single-tier second interim dividend was approved by the Board
of Directors on 30 January 2015. The proposed dividend consists of an electable portion of 5.00 sen which can be elected to be reinvested in new ordinary
shares in accordance with the DRS.
The Financial Statements for the current nancial year do not reect this proposed dividend. Such dividend will be accounted for in equity as an appropriation
of retained earnings in the next nancial year ending 31 December 2015.
The Directors do not recommend the payment of any nal dividend for the nancial year ended 2014.
168
CIMB & YOU
42 SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES
(a) The related parties of, and their relationship with the Company, are as follows:
Related parties Relationship
Subsidiaries of the Company as disclosed in Note 12 Subsidiaries

Associates of the Company as disclosed in Note 13 Associates
Joint ventures as disclosed in Note 14 Joint ventures
Key management personnel See below
Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Group
and the Company either directly or indirectly. The key management personnel of the Group and the Company include all the Directors of the Company
and employees of the Group who make certain critical decisions in relation to the strategic direction of the Group.
(b) Related party transactions
In addition to related party disclosures mentioned elsewhere in the Financial Statements, set out below are other signicant related party transactions.
Interest rates on xed and short-term deposits were at normal commercial rates.
Subsidiaries Associates and joint ventures Key management personnel

2014 2013 2014 2013 2014 2013
RM000 RM000 RM000 RM000 RM000 RM000
The Group
Income earned
Interest on deposits and placements with
nancial institutions 270 81
Interest on loans, advances and nancing 82 181
Brokerage income 72 86
Others 48,776 51,073
Expenditure incurred
Interest on deposits from customers and
securities sold under repurchase
agreements 427 321 1,365 874
Others
169
ANNUAL REPORT 2014
42 SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
(b) Related party transactions (Continued)

2014 2013 2014 2013 2014 2013
RM000 RM000 RM000 RM000 RM000 RM000
The Company
Income earned
Interest on xed deposits and money
market 52,472 19,786
Interest on collateral pledged for
derivative transactions 30 251
Dividend income 1,846,982 2,427,649
Rental income 284 2,018
Expenditure incurred
Interest on iMTN 12 1,878
Interest on term loan 17,893 16,780
Facility fees and commitment fees 74
(c) Related party balances

2014 2013 2014 2013 2014 2013
RM000 RM000 RM000 RM000 RM000 RM000
The Group
Amount due from

Current accounts, deposits and
placements with banks and other
nancial institutions 20,979 9,831
Others 1,059,473 1,059,473
Amount due to
Deposits from customers and securities
sold under repurchase agreements 7,732 5,450 84,996 68,859
Others 362,378 86,563
170
CIMB & YOU
(c) Related party balances (Continued)

2014 2013 2014 2013 2014 2013
RM000 RM000 RM000 RM000 RM000 RM000
The Company
Amount due from

Demand deposits, savings and xed
deposits 1,864,074 69,573
Derivatives nancial instruments 478 3,940
Others 11,054
Amount due to
Amount due to CIMB Bank Berhad 1,772 1,917
Term loans from CIMB Bank Berhad 668,100 625,970
Others 222
Other inter-company balances are unsecured, non-interest bearing and repayable on demand.
(d) Key management personnel
Key management compensation

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Salaries and other employee benets 87,387 110,962 4,273 11,400
Shares of the Company (units) 5,527,497 4,969,772 406,893 381,828
Included in the above table is the Executive Directors compensation which is disclosed in Note 38. The share options and shares granted are on the
same terms and conditions as those offered to other employees of the Group and the Company as disclosed in Note 43 to the Financial Statements.
Excluded in the above table are bonus accruals for nancial year 2014 and 2013, in relation to the key management personnel in CIMB Niaga, which
is subject to approval from the shareholders of CIMB Niaga at their Annual General Meeting.
Loans made to other key management personnel of the Group and the Company are on similar terms and conditions generally available to other
employees within the Group. No individual impairment allowance has been required in 2014 and 2013 for the loans, advances and nancing made to
the key management personnel.
171
ANNUAL REPORT 2014
(e) Credit transactions and exposures with connected parties
Credit exposures with connected parties as per Bank Negara Malaysias revised Guidelines on Credit Transactions and Exposures with Connected
Parties which became effective in 2008 are as follows:
The Group
2014 2013
RM000 RM000
Outstanding credit exposures with connected parties 12,171,744 9,815,718

Percentage of outstanding credit exposures to connected parties as a proportion of total credit exposures 3.66% 3.24%
Percentage of outstanding credit exposures to connected parties which is impaired or in default 0.00% 0.00%
(f) Transactions with shareholders and Government
Khazanah Nasional Berhad (KNB), the major shareholder of the Company, owns 29.3% of the issued share capital of the Company (2013: 30%).
KNB is an entity controlled by the Malaysian Government. The Group considers that, for the purpose of MFRS 124 Related Party Disclosures,
KNB and the Malaysian Government is in the position to exercise signicant inuence over it. As a result, the Malaysian Government and Malaysian
Government controlled bodies (collectively referred to as government-related entities) are related parties of the Group and the Company.
Apart from the individually signicant transactions as disclosed in Note 9(c), Note 43(a) and Note 48(b) to the Financial Statements, the Group and the
Company have collectively, but not individually, signicant transactions with other government-related entities which include but not limited to the
following:
Purchase of securities issued by government-related entities

Lending to government-related entities
Deposit placing with and deposit taking from government-related entities
These transactions are conducted in the ordinary course of the Groups business on commercial rates and consistently applied in accordance with
the Groups internal policies and processes. These rates do not depend on whether the counterparties are government-related entities or not.
172
CIMB & YOU
43 EMPLOYEE BENEFITS
Equity Ownership Plan (EOP)
The EOP was introduced on 1 April 2011 by the Group where the Group will grant ordinary shares of the Company to selected employees in the Group.
Under the EOP, earmarked portions of variable remuneration of the selected employees of the Group will be utilised to purchase ordinary shares of the
Company from the open market. The purchased shares will be released progressively to the eligible employees at various dates subsequent to the
purchase date, subject to continued employment. A subsidiary company will act on behalf of the Group to administer the EOP and to hold the shares in
trust up to the pre-determined transfer date. The eligibility of participation in the EOP shall be at the discretion of the Group Compensation Review
Committee of the Group.
Upon termination of employment other than retirement, disability or death, any unreleased shares will cease to be transferable to the employee and will be
disposed accordingly. In the event of retirement, disability or death of the eligible employee, the release of shares will be accelerated to the date of
termination of employment and the shares will be assigned to the designated beneciary.
The total share-based payment expenses recognised in statement of income during the nancial year amounted to RM114,494,000 (2013: RM97,493,000).
The weighted average fair value of shares awarded under EOP which were purchased over a period of 10 trading days was RM7.14 per ordinary share
(2013: RM7.73), based on observable market price.
Movements in the number of the Companys ordinary shares awarded are as follows:
2014 2013
Total Total
Shares Shares
(units 000) (units 000)
At 1 January 21,675 15,671

Awarded 17,988 15,022
Released (13,163) (9,018)
At 31 December 26,500 21,675
44 CAPITAL COMMITMENTS
Capital expenditure approved by Directors but not provided for in the Financial Statements are as follows:
The Group
2014 2013
RM000 RM000
Capital expenditure:
Authorised and contracted for 655,495 427,279
Authorised but not contracted for 480,958 779,549
1,136,453 1,206,828
173
ANNUAL REPORT 2014
44 CAPITAL COMMITMENTS (CONTINUED)
Analysed as follows:
The Group
2014 2013
RM000 RM000
Property, plant and equipment 843,570 778,748

Subscription for investments 56,550 56,840
Bank guarantee 82,888 77,306
Software development 4,066 24,104
Computer software 67,074 124,271
Others 82,305 145,559
1,136,453 1,206,828
45 LEASE COMMITMENTS
The lease commitments are in respect of rented premises and hired equipment, all of which are classied as operating leases. A summary of the non-
cancellable long-term commitments is as follows:
The Group
2014 2013
RM000 RM000
Within one year 237,460 205,262

One year to less than ve years 480,256 493,487
Five years and more 392,593 517,915
174
CIMB & YOU
46 COMMITMENTS AND CONTINGENCIES
In the normal course of business, the Group and the Company enter into various commitments and incur certain contingent liabilities with legal recourse
to their customers. No material losses are anticipated as a result of these transactions and hence, they are not provided for in the Financial Statements.
These commitments and contingencies are not secured over the assets of the Group and the Company, except for certain nancial assets held for trading
being pledged as credit support assets for certain over-the-counter derivative contracts.
Treasury related derivative nancial instruments are revalued on a gross position basis and the unrealised gains or losses are reected in Derivative
Financial Instruments Assets and Liabilities respectively. Refer to Note 7.
The notional or principal amount of the credit-related commitments and contingencies constitute the following:
2014 2013
Principal Principal
RM000 RM000
The Group
Credit-related
Direct credit substitutes 5,952,788 5,558,842
Certain transaction-related contingent items 5,746,700 5,673,446
Short-term self-liquidating trade-related contingencies 6,013,684 3,399,036
Obligations under underwriting agreement 140,000 163,500
Irrevocable commitments to extend credit:
Maturity not exceeding one year 49,895,290 53,478,618
Maturity exceeding one year 23,764,999 8,415,509
Miscellaneous commitments and contingencies 3,436,324 2,413,685
Total credit-related commitments and contingencies 94,949,785 79,102,636
Total treasury-related commitments and contingencies (Note 7) 607,791,014 447,469,962
702,740,799 526,572,598
The Company
Total treasury-related commitments and contingencies (Note 7) 500,000 500,000
500,000 500,000
CIMB Bank has given a continuing guarantee to Bank Negara Malaysia to meet the liabilities and nancial obligations and requirements of its subsidiary,
CIMB Bank (L) Limited, arising from its offshore banking business in the Federal Territory of Labuan.
The Group is providing a contingency funding line to its subsidiary, CIMB Thai Plc (CIMB Thai), in the event of liquidity crisis in CIMB Thai.
175
ANNUAL REPORT 2014
47 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating
decision-maker is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Group has
determined the Group Management Committee as its chief operating decision-maker.
Segment information is presented in respect of the Groups business segment and geographical segment.
The business segment results are prepared based on the Groups internal management reporting, which reect the organisations management reporting
structure.
(a) Business segment reporting
Denition of segments
The Group is organised into the following ve major operating divisions. The divisions form the basis on which the Group reports its segment
information.
(i) Consumer Banking
Consumer Banking provides full-edged nancial services to individuals and commercial customers. It encompasses the banking services
across the Groups main operating markets of Malaysia, Indonesia, Singapore, Thailand and Cambodia. The divisions which make up the
Consumer Banking are Consumer Sales & Distribution, Retail Financial Services, Commercial Banking, Group Cards & Personal Financing and
Group Insurance.
Consumer Sales & Distribution oversees the Groups sales network including branches and mobile sales teams.
Retail Financial Services is responsible for most of the products and services to individuals and micro enterprise customers. It offers products
covering lending, deposits, wealth management, remittance and other services.
Commercial Banking is responsible for the development of products and services for small and medium-scale enterprise (SMEs) and mid-
sized corporations.
Group Cards & Personal Financing is responsible for the Groups credit card business and personal loans portfolio.
Group Insurance is responsible of manufacturing and distribution of life and takaful insurance products.
(ii) Wholesale Banking
Wholesale Banking comprises Investment Banking and Corporate Banking, Treasury & Markets.
Investment Banking includes client coverage, advisory, equities and asset management businesses. Client coverage focuses on marketing
and delivering solutions to corporate and institutional clients.
Advisory offers nancial advisory services to corporations, advising issuance of equity-linked products, debts restructuring, mergers and
acquisitions, initial public offerings, secondary offerings and general corporate advisory. Equities, provides services including acting as underwriter,
global co-ordinator, book runner or lead manager for equity and equity-linked transactions, originating, structuring, pricing and executing equity
and equity-linked issues and executing programme trades, block trades and market making, as well as provides nominee services and stock
broking services to retail and corporate clients.
Asset management comprises wholesale fund management and unit trust.
Corporate Banking, Treasury and Markets (CBTM) is responsible for corporate lending and deposit taking, transaction banking, treasury and
markets activities. Treasury focuses on treasury activities and services which include foreign exchange, money market, derivatives and
trading of capital market instruments. It includes the Groups equity derivatives which develops and issues new equity derivatives instruments
such as structured warrants and over-the-counter options to provide investors with alternative instrument avenues.
176
CIMB & YOU
47 SEGMENT REPORTING (CONTINUED)
(a) Business segment reporting (Continued)

(iii) Investments
Investments focus on Group Strategy and Strategic Investments (GSSI) including funding operations for the Group. GSSI consists of Group
Strategy, Private Equity and Strategies Investment which focus in dening and formulating strategies at the corporate and business unit levels,
oversees the Groups strategic, private equity fund management and strategic investments. It also invests in the Groups proprietary capital.
(iv) Support and others

Support services comprise all middle and back-ofce processes, cost centres and non-prot generating divisions of companies in the Group.
Other business segments in the Group include investment holding, property management and other related services, whose results are not
material to the Group.
31 December 2014
Wholesale Banking
Corporate
Banking,
Consumer Investment Treasury and Support and
Banking Banking Markets Investments Others Total
Group RM000 RM000 RM000 RM000 RM000 RM000
Continuing operations
Net interest income
External income/(expense) 6,144,259 105,074 2,065,521 353,000 (12,306) 8,655,548
Inter-segment income (623,399) (18,914) 378,738 287,469 (23,894)
5,520,860 86,160 2,444,259 640,469 (36,200) 8,655,548

Non-interest income 1,777,696 1,001,800 867,808 318,448 63,346 4,029,098
Income from Islamic banking operations 895,814 12,646 449,533 94,127 9,158 1,461,278
8,194,370 1,100,606 3,761,600 1,053,044 36,304 14,145,924

Overheads of which: (5,164,256) (1,108,327) (1,383,271) (599,803) (36,306) (8,291,963)
Depreciation of property, plant and equipment (209,375) (57,281) (47,496) (7,118) (838) (322,108)
Amortisation of prepaid lease payments (325) (136) (10,902) (1) (11,364)
Amortisation of intangible assets (152,957) (11,799) (22,904) (114,472) (21,345) (323,477)
Prot/(Loss) before allowances 3,030,114 (7,721) 2,378,329 453,241 (2) 5,853,961

Allowance (made)/written back for impairment
losses on loans, advances and nancing (774,974) 97 (746,464) (1,160) 433 (1,522,068)
Allowance (made)/written back for losses on other
receivables (10,791) (13,197) (2,388) 3,728 (3,424) (26,072)
Allowance written back/(made) for commitments
and contingencies 10,983 (2,041) 8,942
Recoveries from investment management and
securities services 804 804
Allowance (made)/written back for other impairment
losses (127,881) 233 (34,809) (40) (162,497)
Segment results 2,255,332 (148,702) 1,627,669 421,804 (3,033) 4,153,070

Share of results of joint ventures 2,881 (174) (4,649) (1,942)
Share of results of associates (288) 125,583 125,295
Prot/(Loss) before taxation 2,258,213 (149,164) 1,627,669 542,738 (3,033) 4,276,423

Taxation (1,101,866)
Prot for the nancial year 3,174,557
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ANNUAL REPORT 2014
31 December 2014
Wholesale Banking
Corporate
Banking,
Segment assets 180,441,657 4,230,647 178,390,623 31,330,639 2,675,461 397,069,027

Investment in associates and joint
ventures 161,187 12,387 908,197 4,618 1,086,389
180,602,844 4,243,034 178,390,623 32,238,836 2,680,079 398,155,416

Unallocated assets 16,000,940
Total assets 180,602,844 4,243,034 178,390,623 32,238,836 2,680,079 414,156,356
Segment liabilities 172,293,531 1,703,145 170,285,979 15,835,949 7,503,364 367,621,968

Unallocated liabilities 8,143,265
Total liabilities 172,293,531 1,703,145 170,285,979 15,835,949 7,503,364 375,765,233
Other segment items

Incurred capital expenditure 370,257 57,196 31,481 15,529 279,720 754,183
Investment in joint ventures 161,187 7,424 73,069 241,680
Investment in associates 4,963 835,128 4,618 844,709
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CIMB & YOU
31 December 2013
Wholesale Banking
Corporate
Banking,
Continuing operations
Net interest income
External income/(expense) 5,298,996 86,781 2,209,494 362,455 (3,580) 7,954,146
Inter-segment income (182,480) (15,099) 56,431 155,391 (14,243)
5,116,516 71,682 2,265,925 517,846 (17,823) 7,954,146

Non-interest income 1,863,792 925,871 1,164,078 1,154,096 16,989 5,124,826
Income from Islamic banking operations 888,090 36,964 576,722 83,816 7,271 1,592,863
7,868,398 1,034,517 4,006,725 1,755,758 6,437 14,671,835

Overheads of which: (5,025,270) (823,326) (1,392,414) (1,145,763) (71,097) (8,457,870)
Depreciation of property, plant and
equipment (248,725) (42,762) (39,823) (9,747) (2,303) (343,360)
Amortisation of prepaid lease
payments (318) (147) (19) (11,315) (3) (11,802)
Amortisation of intangible assets (111,218) (10,555) (17,678) (136,494) (1,360) (277,305)
Prot/(Loss) before allowances 2,843,128 211,191 2,614,311 609,995 (64,660) 6,213,965

Allowance (made)/written back for
impairment losses on loans,
advances and nancing (557,748) (77) (105,096) 4,013 (1,699) (660,607)
Allowance made for losses on other
receivables (20,612) (7,448) (1,114) (7,295) (2,449) (38,918)
Allowance written back for commitments
and contingencies 1,334 1,334
Recoveries from investment
management and securities services 11,932 11,932
Allowance written back/(made) for other
impairment losses 22 4,328 (44,572) 307 (39,915)
Segment results 2,264,768 203,688 2,513,763 574,073 (68,501) 5,487,791

Share of results of join ventures 4,750 504 49,916 55,170
Share of results of associates 649 305,619 306,268
Prot/(Loss) before taxation 2,269,518 204,841 2,513,763 929,608 (68,501) 5,849,229

Taxation (1,240,407)
Prot for the nancial year 4,608,822
179
ANNUAL REPORT 2014
31 December 2013
Wholesale Banking
Corporate
Banking,
Segment assets 158,218,637 3,654,423 170,887,130 23,730,533 2,257,392 358,748,115

Investment in associates and joint
ventures 158,306 14,211 835,795 5,170 1,013,482
158,376,943 3,668,634 170,887,130 24,566,328 2,262,562 359,761,597

Unallocated assets 11,151,200
Total assets 158,376,943 3,668,634 170,887,130 24,566,328 2,262,562 370,912,797
Segment liabilities 152,840,823 1,740,987 154,910,322 11,780,227 12,551,777 333,824,136

Unallocated liabilities 5,860,101
Total liabilities 152,840,823 1,740,987 154,910,322 11,780,227 12,551,777 339,684,237
Other segment items

Incurred capital expenditure 467,804 132,866 70,479 32,016 173,547 876,712
Investment in joint ventures 158,306 4,149 147,080 309,535
Investment in associates 10,062 688,715 5,170 703,947
Basis of pricing for inter-segment transfers:

Intersegmental charges are computed principally based on the interest-bearing assets and liabilities of each business segment with appropriate rates
applied.
180
CIMB & YOU
(b) Geographical segment reporting
The Groups business segments are managed on a worldwide basis and they operate mainly in four main geographical areas:
Malaysia, the home country of the Group, which includes all the areas of operations in the business segments.
Indonesia, the areas of operation in this country include all the business segments of a subsidiary bank, PT Bank CIMB Niaga Tbk.
Thailand, the areas of operation in this country include all the business segments of a subsidiary bank, CIMB Thai.
Other countries include branch and subsidiary operations in Singapore, United Kingdom, United States of America, Australia, China, Cambodia,
and Hong Kong. The overseas operations involved mainly in corporate lending and borrowing, and stockbroking activities. With the exception of
Malaysia, Indonesia and Thailand, no other individual country contributed more than 10% of the consolidated net interest income or assets.
Net interest Total non- Total assets Total Capital

income current assets liabilities expenditure
The Group RM000 RM000 RM000 RM000 RM000
2014
Malaysia 4,322,249 16,015,818 264,737,989 239,753,833 497,788
Indonesia 2,837,913 623,086 66,342,555 58,200,292 172,830
Thailand 890,796 658,829 29,333,417 26,743,719 43,634
Other countries 604,590 2,292,366 53,742,395 51,067,389 39,931
8,655,548 19,590,099 414,156,356 375,765,233 754,183
2013
Malaysia 3,831,806 16,329,175 243,033,176 223,624,208 633,288
Indonesia 2,930,743 478,763 59,397,392 52,303,730 162,611
Thailand 760,385 572,165 28,145,463 25,822,209 27,591
Other countries 431,212 1,738,367 40,336,766 37,934,090 53,222
7,954,146 19,118,470 370,912,797 339,684,237 876,712
181
ANNUAL REPORT 2014
48 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a) Disposal of CIMB Securities International (Thailand) Public Company Limited (CSIT)
CIMB Securities International Pte. Ltd., a wholly-owned indirect subsidiary of CIMB Group, has disposed its 99.6% shareholding in CSIT (Disposal)
to a third party. The Disposal was completed on 22 January 2014. The Groups investment in CSIT has been presented as held for sale as at
31December 2013.
(b) Private placement of 500 million new shares of the Company (CIMBGH shares)
On 13 January 2014, the Group undertaken a private placement pursuant to the shareholders mandate for the issuance of CIMBGH Shares under
Section 132D of the Companies Act, 1965 obtained at the Groups Annual General Meeting held on 17 April 2013. Pursuant to the private placement,
500 million new CIMBGH shares were issued, representing 6.08% of the enlarged issued and paid-up share capital of the Group as at 31 December
2013, to domestic and foreign investors. The private placement was completed on 23 January 2014 and successfully raised gross proceeds of
RM3.55 billion.
(c) Capital injection of HKD189 million to CIMB Securities Limited
On 17 January 2014, CIMB Securities International Pte. Ltd., a wholly-owned indirect subsidiary of CIMB Group, has made a capital injection of
HKD189 million to CIMB Securities Limited.
(d) Subscription of 95% ordinary shares of PT CIMB Future Indonesia
On 17 January 2014, CIMB Securities International Pte. Ltd., a wholly-owned indirect subsidiary of CIMB Group, subscribed for 95% ordinary shares
of PT CIMB Future Indonesia for cash consideration of IDR4,750 million (the investment). Following the investment, PT CIMB Future Indonesia
becomes a subsidiary of the Group.
(e) Acquisition of additional interest in PT Kencana Internusa Artha Finance
On 28 February 2014, PT Bank CIMB Niaga Tbk acquired additional 48.9% equity interest in it existing subsidiary, PT Kencana Internusa Artha
Finance (KITA Finance) for a cash consideration of IDR131,236 million. As a result of this acquisition, the equity interest in KITA Finance was
increased to 99.9%. Refer to Note 12(c).
(f) Issuance of HKD450 million 5-year unsecured Fixed Rate Notes
CIMB Bank issued HKD300 million and HKD150 million senior unsecured Fixed Rate Notes (the Notes), under its USD1 billion Euro Medium Term
Note Programme established on 27 January 2011, on 14 May 2014 and 21 August 2014 respectively.
The Notes will mature on 14 May 2019 and 21 August 2019 respectively. It bears a coupon rate of 2.70% and 2.47% per annum respectively, payable
quarterly in arrears.
(g) Issuance and redemption of Commercial Papers (CP) and Conventional Medium Term Notes (MTNs)
The Company settled the RM300 million 3-month and RM400 million 6-month CPs which had matured on 28 February 2014 and 28 May 2014
respectively.
On 28 May 2014, the Company issued RM100 million 6-month Commercial Papers (CP). The CPs carry an interest rate of 3.6% per annum. It has
been fully redeemed on 28 November 2014.
On 23 December 2014, the Company issued RM1,130 million MTNs which will mature on 28 December 2015. The MTNs carry an interest rate of
4.30% per annum.
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CIMB & YOU
48 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED)
(h) Issuance of RM400 million 10-year unsecured subordinated notes
On 7 July 2014, CIMB Thai Bank issued RM400 million 10-year non callable 5 years Basel 3 Compliant Tier 2 subordinated notes (RM400 million
Notes) to their overseas investors. The RM400 million Notes were issued at a price of RM100 each. The RM400 million Notes carry xed interest rate
of 5.60% per annum payable every six months on 7 July and 7 January.
CIMB Thai Bank has an approval from Bank of Thailand to classify the RM400 million Notes as Tier II capital according to the correspondence For
Kor Kor. (02) 453/2557.
(i) Issuance of AUD100 million and HKD1,130 million 5-year unsecured Fixed Rate Notes
CIMB Bank issued the following Fixed Rate notes under its USD0.5 billion Euro Medium Term Note Programme established on 15 August 2014, as
follows:
AUD100 million senior unsecured Fixed Rate Notes on 25 September 2014. The Notes will mature on 25 September 2019 (subject to adjustment
in accordance with the modied following business day convention). It bears a coupon rate of 4.375% per annum, payable annually in arrears.
HKD1,130 million 5-year senior xed rate notes (the Notes) on 20 November 2014. The Notes will mature on 12 November 2019 (subject to
adjustment in accordance with the modied following business day convention). It bears a coupon rate of 2.46% per annum payable quarterly in
arrears.
(j) Issuance and redemption of THB structured debentures
During the nancial year, CIMB Thai issued various unsecured structured debentures (designated at fair value) amounted to THB9.1 billion with
embedded interest rates derivatives and early redemption option. The debentures will mature in ve years from respective issuance dates. The
debentures bear interest rates ranges from 0% 6.6% per annum variable to index of THBFIX 6 months, payable semi-annually. CIMB Thai has early
redeemed structured debentures amounted to THB10.4 billion in 2014.
During the nancial year, CIMB Thai Bank has also issued various unsecured structured debentures (not designated at fair value) amounted to
THB340 million with embedded foreign exchange derivatives and early redemption option. The debentures will mature in 6 months to 1 year from
respective issuance dates. The debentures bear interest rates ranges from 0% 7.0%, depending on the underlying foreign exchange rates
movements. CIMB Thai Bank has early redeemed structured debentures amounted to THB30 million during the nancial year.
(k) Disposal of CIMB Insurance Brokers Sdn. Bhd.
CIG Berhad, a wholly-owned indirect subsidiary of CIMB Group Holdings Berhad (CIMBGH), has completed the disposal of 490,000 ordinary shares
in its wholly-owned subsidiary CIMB Insurance Brokers Sdn. Bhd., representing forty-nine percent of its total issued and fully paid ordinary shares, to
a third party for cash consideration of RM33,320,000. Approval from Bank Negara Malaysia in relation to the Disposal was received on 30 December
2014. As part of the disposal, management control of CIB was assumed by the third party and CIB ceased to be an indirect subsidiary of CIMBGH
as at 31 December 2014. The nancial impact on the disposal is disclosed in Note 54.
183
ANNUAL REPORT 2014
49 SIGNIFICANT EVENTS SUBSEQUENT TO THE FINANCIAL YEAR END
(a) Acquisition of Finansa Asset Management Limited
On 23 July 2014, CIMB-Principal Asset Management Company Limited (CPAM Thailand), a 60%-owned indirect subsidiary of CIMB Group, has
entered into a conditional Share Purchase Agreement with Finansa Public Company Limited in relation to the proposed acquisition of entire issued
and outstanding shares of Finansa Asset Management Limited (FAM), for a cash consideration of THB178 million and THB47 million payable upon
the successful establishment of two property funds by 25 February 2015 and 20 March 2015. The proposed acquisition has been completed on 22
January 2015.
The following table summarises the consideration paid for FAM, identiable assets acquired and liabilities assumed as at the acquisition date:
RM'000
Cash and short-term funds 7,125

Other assets 3,324
Property, plant and equipments 270
Intangible assets 1,880
Other liabilities (1,630)
Net assets 10,969
Purchase consideration (THB178 million) 19,683
Goodwill * 8,714
* The goodwill arising from the acquisition is attributable to the expected synergies arising from combining the operations of FAM with CPAM
Thailand.
Acquisition-related costs
Acquisition-related costs amounting to RM726,000 have been incurred during the nancial year ended 31 December 2014 and are included in the
administration and general expenses in the consolidated statement of comprehensive income.
Acquired receivables
The gross contractual amount and fair value of receivables acquired amounted to RM1,500,000 which is expected to be fully collectable.
184
CIMB & YOU
49 SIGNIFICANT EVENTS SUBSEQUENT TO THE FINANCIAL YEAR END (CONTINUED)
(b) Issuance and redemption of THB structured debentures
Subsequent to nancial year, CIMB Thai issued various unsecured structured debentures (designated at fair value) amounting to THB680 million with
embedded interest rates derivatives and early redemption option. The debentures will mature in ve years from respective issuance dates. The
debentures bear interest rates ranges from 0% - 3.7% per annum variable to index of THBFIX 6 months, payable semi annually. CIMB Thai has early
redeemed structured debentures amounting to THB2,777 million.
(c) Full redemption of USD45 million notes
On 29 January 2015, CIMB Bank has redeemed the USD45 million notes as disclosed in Note 25 (j)
(d) Closure of ofces in Australia in 2015
On 9 February 2015, following from a strategic review of the Groups entire business, the Group decided to close its ofces in Sydney and Melbourne
in Australia.
185
ANNUAL REPORT 2014
50 CAPITAL ADEQUACY
The key driving principles of the Groups capital management policies are to diversify its sources of capital to allocate capital efciently, and achieve and
maintain an optimal and efcient capital structure of the Group, with the objective of balancing the need to meet the requirements of all key constituencies,
including regulators, shareholders and rating agencies.
This is supported by the Capital Management Plan which is centrally supervised by the Group EXCO who periodically assesses and reviews the capital
requirements and source of capital across the Group, taking into account all on-going and future activities that consume or create capital, and ensuring
that the minimum target for capital adequacy is met. Quarterly updates on capital position of the Group are also provided to the Board of Directors.
The capital adequacy ratios of the banking subsidiaries of the Group are computed as follows:
Bank Negara Malaysia (BNM) and Bank of Thailand (BOT) issued revised guidelines on the capital adequacy framework on 28 November 2012 and 8
November 2012 respectively, of which both took effect beginning 1 January 2013. The revised guidelines set out the regulatory capital requirements
concerning capital adequacy ratios and components of eligible regulatory capital in compliance with Basel III.
The risk-weighted assets of the CIMB Bank Group (other than CIMB Thai and CIMB Bank PLC), CIMB Bank and CIMB Islamic Bank are computed in
accordance with the Capital Adequacy Framework (Basel II - Risk-Weighted Assets). The IRB Approach is applied for the major credit exposures with retail
exposures on Advanced IRB approach and non-retail exposures on Foundation IRB approach. The remaining credit exposures and Market Risk are on the
Standardised Approach while Operational Risk is based on Basic Indicator Approach.
The risk-weighted assets of CIMB Investment Bank Group are computed in accordance with the Capital Adequacy Framework (Basel II Risk Weighted
Assets). The Standardised approach is applied for Credit Risk and Market Risk while Operational Risk is based on Basic Indicator Approach. The
components of eligible regulatory capital are based on the Capital Adequacy Framework (Capital Components).
The risk weighted assets of CIMB Thai is based on Bank of Thailand (BOT) requirements and are computed in accordance with the revised Notication of
The BOT. No. SoNoRSor. 87/2551 - The supervisory capital funds of commercial banks. Credit Risk and Market Risk are based on Standardised
Approach while Operational Risk is based on Basic Indicator Approach.
The capital adequacy ratios of Bank CIMB Niaga is based on Bank Indonesia requirements. The approach for Credit Risk and Market Risk is Standardised
Approach. Operational Risk is based on Basic Indicator Approach.
The regulatory compliance ratios of CIMB Bank PLC refers to Solvency Ratio. This ratio is computed in accordance with Prakas B7-00-46, B7-04-206 and
B7-07-135 issued by the National Bank of Cambodia. This ratio is derived at CIMB Bank PLCs net worth divided by its risk-weighted assets.
Capital Structure and Adequacy
The table below sets out the summary of the sources of capital and the capital adequacy ratios of the Group as at 31 December 2014. The banking
subsidiaries issue various capital instruments pursuant to the respective regulatory guidelines, that qualify as capital pursuant to the RWCAF and Capital
Adequacy Framework for Islamic Banks (CAFIB) issued by BNM.
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CIMB & YOU
50 CAPITAL ADEQUACY (CONTINUED)
a) The total capital base and capital adequacy ratios of CIMB Bank (including the operations of CIMB Bank (L) Limited), CIMB Bank Group, CIMB
Investment Bank, CIMB Islamic Bank, Bank CIMB Niaga, CIMB Thai and CIMB Bank PLC for the nancial year ended 31 December 2014 are as
follows. The individual entities within the Group and the Group complied with all externally imposed capital requirements to which they are subject to.
CIMB
CIMB CIMB CIMB Investment Bank CIMB
CIMB Bank Islamic Bank Thai Bank Bank Group Bank Group CIMB Niaga Bank PLC *
31 December 2014 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Before deducting proposed dividends

Common equity tier 1 ratio 11.688% ^ 11.448% 9.913% 10.493% ^ 28.765% N/A N/A
Tier 1 ratio 13.137% ^ 12.345% 9.913% 11.651% ^ 28.765% 13.395% N/A
Total capital ratio 15.158% ^ 15.493% 14.977% 14.888% ^ 28.765% 15.390% 15.377%
After deducting proposed dividends

Tier 1 ratio 12.642% ^ 12.345% 9.913% 11.272% ^ 28.765% 13.395% N/A
The breakdown of risk-weighted assets

(RWA) by each major risk category are as
follows:
Credit risk 125,820,234 20,439,165 18,773,991 166,270,354 1,164,171 47,897,974 889,948
Market risk 13,831,101 498,080 2,349,855 16,080,788 52,221 359,844
Operational risk 11,971,135 2,011,728 1,354,827 15,851,297 697,657 5,996,868
Large exposure risk 502,139 502,139
152,124,609 22,948,973 22,478,673 198,704,578 1,914,049 54,254,686 889,948
* The amount presented here is the Solvency Ratio of CIMB Bank Plc, which is the nearest equivalent regulatory compliance ratio. This ratio
is computed in accordance with Prakas B7-00-46, B7-04-206 and B7-07-135 issued by the National Bank of Cambodia. This ratio is
derived at CIMB Bank Plcs net worth divided by its risk-weighted assets.
^ On 30 October 2014, CIMBGH completed its fourth Dividend Reinvestment Scheme (DRS) of which RM591 million was reinvested into
new CIMBGH shares. Pursuant to the completion of the DRS, CIMBGH reinvested cash dividend surplus of RM515 million into CIMB Bank
via rights issue which was completed on 18 December 2014.
CIMBGH proposed to continue with DRS implementation for the second interim dividend in respect of the financial year ended 2014. Pursuant
to the completion of DRS, CIMBGH intend to reinvest the excess cash dividend surplus into CIMB Bank which would increase the capital
adequacy ratios of the Group and Bank above those stated ratios. The second interim dividend was approved by the Board and Bank Negara
Malaysia on 30 January 2015 and 18 February 2015 respectively.
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ANNUAL REPORT 2014
(b) Components of Tier I and Tier II capital for the financial year ended 31 December 2014 are as follows:
CIMB
CIMB Bank Islamic Bank Thai Bank Bank Group Bank Group CIMB Niaga Bank PLC
Tier I capital
Ordinary shares 4,787,023 1,000,000 1,120,508 4,787,023 100,000 454,434 157,343
Other reserves 19,193,658 1,991,444 1,192,964 23,197,847 507,156 6,924,126 (22,824)
Qualifying non-controlling interests 257,010
Common Equity Tier I capital after regulatory

adjustments 23,980,681 2,991,444 2,313,472 28,241,880 607,156 7,378,560 134,519
Less: Regulatory adjustments

Goodwill (3,555,075) (136,000) (4,965,324) (964)
Intangible assets (844,072) (89,744) (7,567) (949,186) (889)
Deferred tax assets (182,140) (22,855) (77,684) (314,145) (46,428)
Investment in capital instruments of

unconsolidated nancial and insurance/takaful
entities (765,837) (144,137) (1,460) (111,095)
Deduction in excess of Tier 2 capital (7,603)
Shortfall of eligible provisions to expected losses (125,800) (115,689) (280,596)
Others (728,079) (738,239) (118) (4,075)

adjustments 17,779,678 2,627,156 2,228,221 20,850,253 550,583 7,267,465 129,555
Additional Tier I capital

Perpetual preference shares 160,000 206,000 160,000
Non-innovative Tier I Capital 800,000 800,000
Innovative Tier I Capital 1,289,440 1,289,440
Qualifying capital instruments held by third parties 51,075
Additional Tier I capital before regulatory

adjustments 2,249,440 206,000 2,300,515
Investments in Additional Tier 1 capital
instruments of subsidiaries and other nancial
and insurance/takaful entities (44,349) (349)
Additional Tier I capital after regulatory

adjustments 2,205,091 206,000 2,300,166
Total Tier I Capital 19,984,769 2,833,156 2,228,221 23,150,419 550,583 7,267,465 129,555
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CIMB & YOU
(b) Components of Tier I and Tier II capital for the financial year ended 31 December 2014 are as follows (Continued):
CIMB
Tier II capital
Subordinated notes 6,050,000 680,000 1,070,316 6,050,000 649,229
Redeemable preference shares 29,740 29,740 8
Qualifying capital instruments held
by third parties 378,488
Portfolio impairment allowance & Regulatory
reserve 240,204 42,233 68,061 552,993 2,729 511,618 7,290
Others 32,358
Tier II capital before regulatory adjustments 6,319,944 722,233 1,138,377 7,011,221 2,737 1,193,205 7,290

entities (3,245,289) (577,946) (10,340) (111,095)
Total Tier II capital 3,074,655 722,233 1,138,377 6,433,275 1,082,110 7,290
Total capital base 23,059,424 3,555,389 3,366,598 29,583,694 550,583 8,349,575 136,845
Less:
Proposed dividends (753,000) (753,000)
Total capital base (net of proposed dividend) 22,306,424 3,555,389 3,366,598 28,830,694 550,583 8,349,575 136,845
The capital base of CIMB Bank Group, CIMB Bank and CIMB Islamic Bank as at 31 Decmber 2014 have excluded portfolio impairment
allowance on impaired loans restricted from Tier II capital of RM223 million, RM198 million and RM25 million respectively.
189
ANNUAL REPORT 2014
(c) The capital adequacy ratios of CIMB Bank (including the operations of CIMB Bank (L) Limited), CIMB Investment Bank, CIMB Islamic Bank,
Bank CIMB Niaga and CIMB Thai for the financial year ended 31 December 2013 are as follows:
CIMB
CIMB Bank Islamic Bank Thai Bank Bank Group Bank Group CIMB Niaga Bank PLC *
Before deducting proposed dividends

Tier 1 ratio 12.117% ^ 10.201% 9.907% 10.180% ^ 25.300% 12.993% N/A
After deducting proposed dividends

Tier 1 ratio 11.552% ^ 10.201% 9.907% 9.750% ^ 25.300% 12.993% N/A
The breakdown of risk-weighted assets

(RWA) by each major risk category are as
follows:
Credit risk 109,355,392 18,769,614 17,250,730 145,845,320 1,208,453 41,585,173 638,964

Market risk 12,107,705 620,945 1,363,788 13,826,815 58,618 410,116
Operational risk 11,115,336 1,866,592 1,168,022 14,615,092 758,001 5,028,579
Large exposure risk 423,320 423,320
133,001,753 21,257,151 19,782,540 174,710,547 2,025,072 47,023,868 638,964
* The amount presented here is the Solvency Ratio of CIMB Bank Plc, which is the nearest equivalent regulatory compliance ratio. This ratio
is computed in accordance with Prakas B7-00-46, B7-04-206 and B7-07-135 issued by the National Bank of Cambodia. This ratio is
derived at CIMB Bank Plcs net worth divided by its risk-weighted assets.
^ CIMBGH completed its fourth Dividend Reinvestment Scheme (DRS) of which RM783 million was reinvested into new CIMBGH shares.
Pursuant to the completion of the DRS, CIMBGH reinvested cash dividend surplus of RM735 million into CIMB Bank via rights issue which
was completed on 30 December 2013.
CIMBGH proposed to continue with DRS implementation for the second interim dividend in respect of the financial year ended 2013.
Pursuant to the completion of DRS, CIMBGH intend to reinvest the excess cash dividend into the Bank which would increase the capital
adequacy ratio of the Group and the Bank above those stated above. The second interim dividend was approved by the Board and Bank
Negara Malaysia on 11 February 2014 and 21 February 2014 respectively.
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CIMB & YOU
(d) Components of Tier I and Tier II capital for the financial year ended 31 December 2013 are as follows:
CIMB
Tier I capital
Ordinary shares 4,131,410 1,000,000 1,053,119 4,131,410 100,000 433,774 147,465
Other reserves 15,810,362 1,600,902 998,423 18,954,705 469,418 5,723,758 (21,440)
Qualifying non-controlling interests 243,991
Common Equity Tier I capital before regulatory

adjustments 19,941,772 2,600,902 2,051,542 23,330,106 569,418 6,157,532 126,025

Goodwill (3,555,075) (136,000) (4,890,179) (964)
Intangible assets (852,787) (11,080) (874,518) (1,613)
Deferred tax assets (212,431) (25,566) (91,698) (263,926) (48,914)
entities (47,931)
Deduction in excess of Tier 2 capital (6,921)
Shortfall of eligible provisions to expected losses (151,434) (282,726)
Others (1,584,536) (322,814) (1,811,720) (271) (710)

adjustments 13,585,509 2,105,442 1,959,844 15,207,037 512,348 6,109,601 123,702
Additional Tier I capital

Perpetual preference shares 180,000 63,000 180,000
Non-innovative Tier I Capital 900,000 900,000
Innovative Tier I Capital 1,450,620 1,450,620
Additional Tier I capital before and after

regulatory adjustments 2,530,620 63,000 2,578,800
Total Tier I Capital 16,116,129 2,168,442 1,959,844 17,785,837 512,348 6,109,601 123,702
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(d) Components of Tier I and Tier II capital for the financial year ended 31 December 2013 are as follows (Continued):
CIMB
Tier II capital
Subordinated notes 6,050,000 765,000 539,424 6,050,000 691,874
Redeemable preference shares 29,740 29,740 9
Portfolio impairment allowance & Regulatory
reserve 207,315 46,857 61,837 486,766 1,996 446,988 4,380
Others 224,760 30,887
Tier II capital before regulatory adjustments 6,287,055 811,857 826,021 6,596,977 2,005 1,169,749 4,380

unconsolidated
nancial and insurance/takaful entities (4,480,601) (800,439) (8,926) (47,931)
Total Tier II capital 1,806,454 811,857 826,021 5,796,538 1,121,818 4,380
Total capital base 17,922,583 2,980,299 2,785,865 23,582,375 512,348 7,231,419 128,082
Less:
Proposed dividends (752,000) (752,000)
Total capital base (net of proposed dividend) 17,170,583 2,980,299 2,785,865 22,830,375 512,348 7,231,419 128,082
The capital base of CIMB Bank Group, CIMB Bank and CIMB Islamic Bank as at 31 Decmber 2013 have excluded portfolio impairment
allowance on impaired loans restricted from Tier II capital of RM245 million, RM220 million and RM25 million respectively.
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51 BUSINESS COMBINATIONS
(a) Acquisition in prior year
(i) Acquisition of Royal Bank of Scotland Asia Pacific (RBS)
As allowed by MFRS 3 Business Combinations, the Group had previously accounted for the acquisition of the RBS businesses using
the provisional fair values for the financial year ended 31 December 2012.
During the financial year 2013, the Group completed the acquisition of selected cash equities, equity capital markets and M&A corporate
finance businesses in Taiwan. With this completion, the Group completed its allocation of cost of business combination for the whole
RBS acquisition to the assets acquired and liabilities and contingent liabilities assumed. The fair value adjustments on acquisition are
based on finalised purchase price allocation and fair value exercise. There is no fair value adjustment identified to the prior years
provisional fair value.
The fair values of assets and liabilities arising from the acquisition of RBS are set out as follows:
RBS Final fair

Fair value Taiwan value
RM000 RM000 RM000

Other assets 118,464 118,464
Other liabilities (130,356) (130,356)
Net assets 246,362 246,362

Goodwill 152,384 26,435 178,819
Purchase consideration satisfied via cash 398,746 26,435 425,181

Less: Cash and cash equivalents acquired (258,254) (258,254)
Cash outflow on acquisition 140,492 26,435 166,927
Acquisition-related costs
Acquisition-related costs for RBS Taiwan amounting to RM328,000 have been incurred during the financial year ended 31 December
2013 and are included in administration and general expenses in the consolidated statement of comprehensive income.
Goodwill
The goodwill of RM178,819,000 arising from the acquisition of the RBS business is attributable to the expected strengthening of the
Groups Investment Banking operations in the Asia Pacific region, and the expected synergies amongst the relevant entities of the Group.
Revenue and profit contribution

The acquisition of RBS Taiwan contributed revenue of RM1,187,000 and net loss of RM23,122,000 to the Group for the period from
1 April 2013 to 31 December 2013.
Had RBS Taiwan been consolidated from 1 January 2013, consolidated revenue and consolidated profit for the year ended 31 December
2013 would have been RM14,672,006,000 and RM4,596,675,000 respectively.
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52 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
The Group and the Company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely
equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have material
impact to the Groups and the Companys results and financial position are tested for sensitivity to changes in the underlying parameters. The
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the
next financial year are outlined below:
(a) Impairment of available-for-sale equity investments
The Group and the Company determine that available-for-sale equity investments are impaired when there has been a significant or prolonged
decline in the fair value below its costs. This determination of what is significant or prolonged requires judgement. The Group and the Company
evaluate, among other factors, the duration and extent to which the fair value of the investment is less than cost; and the financial health and
near-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational
and financial cash flow.
(b) Impairment losses on loans, advances and financing
The Group and the Company make allowance for losses on loans, advances and financing based on assessment of recoverability. Whilst
management is guided by the accounting standards, management makes judgement on the future and other key factors in respect of the
estimation of the amount and timing of the cash flows in assessing allowance for impairment of loans, advances and financing. Among the
factors considered are the Groups aggregate exposure to the borrowers, the net realisable value of the underlying collateral value, the viability
of the customers business model, the capacity to generate sufficient cash flow to service debt obligations and the aggregate amount and
ranking of all other creditor claims.
(c) Goodwill impairment
The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in Note M (a) of the
Summary of Significant Group Accounting Policies.
The first step of the impairment review process requires the identification of independent operating units, dividing the Groups business into
the various cash-generating-units (CGU). The goodwill is then allocated to these various CGU. The first element of this allocation is based
on the areas of the business expected to benefit from the synergies derived from the acquisition. The second element reflects the allocation
of the net assets acquired and the difference between the consideration paid for those net assets and their fair value. This allocation is
reviewed following business reorganisation.
The carrying value of the CGU, including the allocated goodwill, is compared to the higher of fair value less cost to sell and value in use to
determine whether any impairment exists. Detailed calculations may need to be carried out taking into consideration changes in the market in
which a business operates. In the absence of readily available market price data, this calculation is usually based upon discounting expected
pre-tax cash flows at the individual CGUs pre-tax discount rate, which reflect the specific risks relating to the CGU. This requires exercise of
judgement. Refer to Note 18 for details of these assumptions and the potential impact of changes to the assumptions. Changes to the
assumptions used by management, particularly the discount rate and the terminal growth rate, may significantly affect the results of the
impairment.
Value-in-use does not reflect future cash outflows or related cost savings (for example reductions in staff costs) or benefits that are expected
to arise from a future restructuring to which an entity is not yet committed.
(d) Fair value of financial instruments
The majority of the Groups financial instruments reported at fair value are based on quoted and observable market prices. Where the fair
values of financial assets and financial liabilities recorded on the statement of financial position cannot be derived from active markets, they
are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to these models are derived
from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values.
The judgments include considerations of liquidity and model inputs such as volatility for longer dated derivatives and discount rates, prepayment
rates and default rate assumptions for asset backed securities. The valuation of financial instruments is described in more detail in Note 55.4.
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CIMB & YOU
53 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUING OPERATIONS

2014 2013 2014 2013
Non-current assets held for sale:

property, plant and equipment (Note 15) (a) 21,326 16,031 10,925 7,862
investment properties (Note 16) (a) 13,962
Investment in subsidiaries (b) 19,725
Total non-current assets held for sale 21,326 49,718 10,925 7,862
(a) Property, plant and equipment and investment properties of the Group where deposits have been received from buyers of the properties and
where a definitive buyer has been identified have been classified as held for sale. The disposals are expected to be completed in 2015.
Fair value of property plant and equipment and investment properties held for sale
In accordance with MFRS5, the non-current assets held for sale were stated at the lower of carrying amount and fair value less cost to sell.
As at 31 December 2014, the property plant and equipment and investment properties held for sale that were stated at fair value less cost
to sell was RM9,858,000 (2013: RM21,598,000). This is a non-recurring fair value which has been measured using observable inputs under
sales comparison approach performed by independent valuers. Sales prices of comparable land and building in close proximity are adjusted
for differences in key attributes such as property size. Therefore, it is within level 2 of the fair value hierarchy.
(b) The Groups investment in Infusion Sdn Bhd had been presented as held for sale as at 31 December 2013 as the Group had committed to
a plan to dispose their entire equity interest in Infusion Sdn Bhd. The carrying value as at 31 December 2013 was RM11,849,000. The disposal
was completed on 16 January 2014.
The Groups investment in CIMB Securities International Pte. Ltd. (CSIT) had been presented as held for sale as at 31 December 2013 as
the Group had disposed its 99.6% shareholding in CSIT in 2013. The carrying value as at 31 December 2013 was RM7,876,000. The disposal
was completed on 22 January 2014. Refer to Note 48(a).
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ANNUAL REPORT 2014
54 SIGNIFICANT DISPOSAL OF SUBSIDIARIES WITH LOSS OF CONTROL
(a) Disposal of subsidiaries
The list of signicant interest in subsidiaries disposed during the year that resulted in loss of control is as follows:
Name of subsidiaries Note
CIMB Securities International (Thailand) Public Company Limited (CSIT) 48(a)

CIMB Insurance Brokers Sdn. Bhd. (CIB) 48(k)
(b) Effects of disposals
The cash ows and net assets of subsidiaries disposed are as follows:
The Group
2014
Note RM000
Cash and short-term fund 21,559

Other assets 139,154
Non-current assets held for sale 19,725
Goodwill, net of impairment 18 1,500
Other liabilities (60,792)
Non-controlling interests 4,986
Net assets 126,132

Gain on disposal of subsidiaries 49,553
Gain on remeasurement of equity interests retained as an associate 34 30,987
Sales considerations (inclusive of fair value adjustment) 206,672

Less:
Equity interest retained as an associate 13 (34,681)
Cash of subsidiaries disposed (21,559)
Cash inow on disposal of subsidiaries 150,432
Summarised below are the breakdown of sales considerations:
CSIT CIB Others Total

RM000 RM000 RM000 RM000
Cash considerations 104,521 33,320 34,150 171,991

Fair value of the equity interests retained as an associate 34,681 34,681
Sales considerations (inclusive of fair value adjustment) 104,521 68,001 34,150 206,672
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55 FINANCIAL RISK MANAGEMENT
(a) Financial risk management objectives and policies
The Group embraces risk management as an integral component of the Groups business, operations and decision-making process. In ensuring that
the Group achieves optimum returns whilst operating within a sound business environment, the risk management teams are involved at the early stage
of the risk taking process by providing independent inputs including relevant valuations, credit evaluations, new product assessments and quantication
of capital requirements. These inputs enable the business units to assess the risk-vs-reward value of their propositions and thus enable risk to be
priced appropriately in relation to the return.
The objectives of the Groups risk management activities are to:

Identify the various risk exposures and capital requirements;
Ensure risk taking activities are consistent with risk policies and the aggregated risk position are within the risk appetite as approved by the
Board; and
Create shareholders value through proper allocation of capital and facilitate development of new businesses.
(b) Enterprise Wide Risk Management Framework (EWRM)
The Group employs an EWRM framework as a standardised approach to manage its risk and opportunity effectively. The EWRM framework provides
the Board and management with a tool to anticipate and manage both the existing and potential risks, taking into consideration changing risk proles
as dictated by changes in business strategies, operating and regulatory environment and functional activities.
The key components of the Groups EWRM framework are represented in the diagram below:
RISK APPETITE STATEMENT
GOVERNANCE
COMPREHENSIVE RISK RISK MEASUREMENT MONITORING AND ANALYTICS

ASSESSMENT CONTROL AND REPORTING
SOUND CAPITAL MANAGEMENT
RISK BASED PERFORMANCE MEASUREMENT
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55 FINANCIAL RISK MANAGEMENT (CONTINUED)
(b) Enterprise Wide Risk Management Framework (EWRM) (Continued)
The design of the EWRM framework involves a complementary top-down strategic and bottom-up tactical risk management approach with formal
policies and procedures addressing all areas of signicant risks for the Group.
a) Risk Appetite Statement
Risk appetite denes the amount and type of risks that the Group is able and willing to accept in pursuit of its strategic and business objectives.
In CIMB Group, the risk appetite is linked to strategy development and business and capital management plans. It takes into account not only
growth, revenue and commercial aspirations, but also the capital and liquidity positions and risk management capabilities and strengths,
including risk systems, processes and people. Going forward, risk appetite statements will be formulated for key business units as well as
incorporate stress testing.
CIMB Group has a dedicated team that facilitates the risk appetite setting process including reviewing, monitoring and reporting. Board Risk
Committee (BRC) and Group Risk Committee (GRC) receive monthly reports on compliance with the risk appetite.
b) Governance
A strong risk governance structure is what binds the EWRM framework together. The Board of Directors is ultimately responsible for the Groups
risk management activities, and provides strategic direction through the Risk Appetite Statement and relevant risk management frameworks for
the Group.
The implementation and administration of the EWRM framework are effected through the three lines of defence model with oversight by the risk
governance structure which consists of various risk committees, as described below. Group Risk Division (GRD) is principally tasked to assist
the various risk committees and undertakes the performance of independent risk management, monitoring and reporting functions of the
EWRM. The implementation of the EWRM is also subjected to the independent assurance and assessment by Group Internal Audit Division.
c) Comprehensive Risk Assessment
Comprehensive Risk Assessment provides the process for the identication of the Groups material risks, from the perspectives of impact on the
Groups nancial standing and reputation. Apart from the annual comprehensive risk assessment exercise, the Groups material risks are identied
on an on-going basis as well as part of the consideration for any strategic projects, including new product development.
d) Risk Measurement
Consistent and common methodologies of Risk Measurement allow for the Group to aggregate and compare risks across business units,
geographies and risk types. Further, it provides a tool for the Board and Senior Management to assess the sufciency of its liquidity surplus and
reserves, and health of its capital position under various economic and nancial situations.
e) Monitoring and Control
Various risk management tools are employed to Monitoring and Control the risk taking activities within the Group, these include limit monitoring,
hedging strategies and clearly documented control processes. These controls are regularly monitored and reviewed in the face of changing
business needs, market conditions and regulatory changes.
f) Analytics and Reporting
Timely reporting and meaningful analysis of risk positions are critical to enable the Board and Senior Management to exercise control over
material exposures and make informed business decisions.
g) Sound Capital Management
The Groups capital resources are continuously assessed and managed to undertake its day-to-day business operations and risk-taking activities,
including considerations for its business expansion and growth. Each year internal capital targets will be set and capital will be allocated to each
business units based on the respective business plans, budgeted prot and targeted Risk Adjusted Return on Capital (RAROC).
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(b) Enterprise Wide Risk Management Framework (EWRM) (Continued)
h) Risk Based Performance Measurement
Business units economic protability will be measured having considered both its risks and capital consumption. The adoption of a risk-based
performance measurement allows for performance and protability of different business units to be compared on a common yardstick.
(c) Risk Governance
In the year under review, the Board approved a revision to the Groups risk governance structure, with the establishment of several risk committees,
thereby allowing for more thorough Group-wide deliberation at a specialised risk level.
At the apex of the governance structure are the respective Boards, which decides on the entitys Risk Appetite corresponding to its business
strategies. In accordance to the Groups risk management structure, the BRC reports directly into each Board and assumes responsibility on behalf
of the Board for the supervision of risk management and control activities. The BRC determines the Groups risk strategies, policies and methodologies,
keeping them aligned with the principles within the Risk Appetite Statement. The BRC also oversees the implementation of the EWRM framework and
provides strategic guidance and reviews the decisions of the GRC.
In order to facilitate the effective implementation of the EWRM framework, the BRC has established various risk committees within the Group with
distinct lines of responsibilities and functions, which are clearly dened in the terms of reference. The composition of the committees includes senior
management and individuals from business divisions as well as divisions which are independent from the business units.
The responsibility of the supervision of the risk management functions is delegated to the GRC, which reports directly to the BRC. The GRC performs
the oversight function on overall risks undertaken by the Group in delivering its business plan vis--vis the stated risk appetite of the Group. The GRC
is further supported by specialised risk committees, namely Group Credit Policy & Portfolio Risk Committee, Group Market Risk Committee, Group
Operational Risk Committee, Group Asset Liability Management Committee and Basel Steering Committee, with each committee providing oversight
and responsibility for specic risk areas namely, credit risk, market risk, operational risk, liquidity risk and capital risk.
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(c) Risk Governance (Continued)
The revised structure of the Groups Risk Committees and an overview of the respective committees roles and responsibilities are as follows:
Board of Directors
Board Risk Committee Board Shariah Committee

Determine the Groups risk strategies, policies and methodologies Oversee all Shariah matters of the Group
Oversee implementation of the EWRM framework, provide strategic guidance and review the
decisions of the GRC
Group Risk Committee

Ensure effectiveness of risk management across the Group
Ensure adherence to the Board approved risk appetite
Outline key risks and strategies to improve risk management across the Group
Group Operational Risk Committee

Review key operational risks impacting or potentially impacting the Group
Review the appropriateness of the framework to manage the risk
Review on-going or planned remediation for known risks
Review all events leading material non-compliance including Shariah non-compliance
Group Reputation Risk Committee

Ensure appropriateness of reputational risk policies
Review key reputational risks impacting CIMB Group and track feedback from management in response to these risks
Group Asset Liability Management Committee (GALCO)

Oversee management of the Groups overall balance sheet, net interest income/margin, liquidity risk and interest rate risk in the banking book (IRRBB)/rate of return
in the banking book (RORBB)
Ensure risk prole is kept within the established risk appetite/limits
Malaysia Asset Liability Management Committee (MALCO)

Oversee management of the overall balance sheet, net interest income/margin, liquidity risk and IRRBB/RORBB for CIMBs Malaysian entities
Ensure risk prole is kept within the established risk appetite/limits
Group Credit Policy & Portfolio Risk Committee

Ensure adherence to the Board approved credit risk appetite
Ensure effectiveness of credit risk management
Articulate key credit risk and its mitigating controls
Group Credit Committee

Review, recommend for Group EXCO and approve or concur credit applications from entities across CIMB Group
Establish regional specic standards as appropriate and ensure alignment with the broad credit policies, processes and risk appetite framework
within CIMB Group
Ensure Group overall loan portfolio/nancing meets regulatory guidelines and approved internal policies, procedures and risk appetite
Consumer Bank Credit Committee

Review and approve credit/nancing applications in relation to Malaysian and non-Malaysian centric customer groups exposures originating from
business units within Consumer Banking and CIMB Investment Bank
Regional Private Banking Credit Committee

Review and consider credit applications originating from the Group Private Banking, and approve or concur or recommend them to the next
appropriate credit committee, EXCO or Board for approval
Group Market Risk Committee

Ensure adherence to the Board approved market risk appetite
Articulate key market risks and the corresponding mitigating controls
Group Underwriting Committee

Review and approve or concur primary and secondary market deals for debt and equity instruments for the Group
Ensure adequate pricing to compensate for risk and sufcient measures are taken to mitigate against adverse market movements
Ensure proper governance around unsuccessful transactions
Basel Steering Committee

Oversee implementation of Basel regulations in the banking entities under the Group
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Similar risk committees are set-up in each of the Groups overseas subsidiaries in their respective jurisdictions.Whilst recognising the autonomy of the
local jurisdiction and compliance to local requirements, the Group also strives to ensure a consistent and standardised approach in its risk governance
process. As such, the relevant Group and Regional committees have consultative and advisory responsibilities on regional matters across the Group.
This structure increases the regional communication, sharing of technical knowledge and support towards managing and responding to risk
management issues, thus allowing the Board to have a comprehensive view of the activities in the Group.
Three-Lines of Defence
The Groups risk management approach is based on the three-lines of defence concept whereby risks are managed from the point of risk-taking
activities. This is to ensure clear accountability of risks across the Group and risk management as an enabler of the business units. As a rst line of
defence, the line management, including all business units and units which undertake client facing activities, are primarily responsible for risk
management on a day-to-day basis by taking appropriate actions to mitigate risks through effective controls. The second line of defence provides
oversight functions, performs independent monitoring of business activities and reports to management to ensure that the Group is conducting
business and operating within the approved appetite and in compliance to regulations. The third line of defence is Group Internal Audit Division which
provides independent assurance to the Boards that the internal controls and risk management activities are functioning effectively.
The Roles of Group Chief Risk Ofcer (CRO) and Group Risk Division (GRD)
Within the second line of defence is GRD, a function independent of business units that assists the Groups management and various risk committees
in the monitoring and controlling of the Groups risk exposures.
The organisational structure of GRD is made of two major components, namely the Chief Risk Ofcers and the Risk Centres of Excellence. GRD is
headed by the Group CRO who is appointed by the Board to spearhead risk management functions and implementation of the Enterprise-Wide Risk
Management. The CRO:
a) Actively engages the Board and senior management on risk management issues and initiatives.
b) Maintains an oversight on risk management functions across all entities within the Group. In each country of operations, there is a local Chief
Risk Ofcer or a Country Risk Lead Ofcer, whose main function is to assess and manage the enterprise risk and regulators in the respective
country.
The GRD teams are organised into several Risk Centres of Excellence in order to facilitate the implementation of the Groups EWRM framework. The
Risk Centres of Excellence consisting of Risk Analytics & Infrastructure, Market Risk, Operational Risk, Asset Liability Management, Credit Risk and
Shariah Risk Centres of Excellence are specialised teams of risk ofcers responsible for the active oversight of group-wide functional risk management.
a) Risk Analytics & Infrastructure Centre of Excellence
Risk AnaIytics & Infrastructure Centre of Excellence focuses on credit capital quantication and analytics including the implementation of group-
wide Basel II framework; corporate credit portfolio analytics and reporting; and credit concentration measurement and monitoring.
b) Market Risk Centre of Excellence
In propagating and ensuring compliance to the market risk framework, the Market Risk Centre of Excellence reviews treasury trading strategies,
analyses positions and activities vis--vis changes in the nancial market and performs mark-to-market valuation. It also coordinates capital
market product deployments.
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The Roles of Group Chief Risk Ofcer (CRO) and Group Risk Division (GRD) (Continued)
c) Operational Risk Centre of Excellence
The Operational Risk Centre of Excellence provides the methodology and process for the identication, assessment, reporting, mitigation and
control of operational risks by the respective risk owners across the Group. It provides challenge and oversight over the execution of this
framework by the rst line of defence.
d) Asset Liability Management Centre of Excellence
It is primarily responsible for the independent monitoring and assessment of the Groups asset and liability management process governing
liquidity risk and interest/benchmark rate risk as well as recommending policies and methodologies to manage the said risks.
e) Credit Risk Centre of Excellence
The Credit Risk Centre of Excellence is dedicated to the assessment, measurement, management and monitoring of credit risk of CIMB Group.
It ensures a homogenous and consistent approach to:
Credit Risk Policies and Procedures;
Credit Risk Models;
Credit Risk Methodologies; and
Portfolio Analytics,
as well as a holistic and integrated approach to identication, assessment, decision-making and reporting of credit risk of the Group.
f) Shariah Risk Management Centre of Excellence
The Shariah Risk Management Centre of Excellence (SRM CoE) formulates Shariah Risk Management Framework (SRMF) and provides guidance
and training on the SNC Risk Management (SRM) to enable the rst line of defence to identify, assess, monitor and control SNC risk in their
Islamic business operations and activities.
In addition to the above Risk Centres of Excellence, Regional Risk was established with the objective of overseeing the risk management functions of
the regional ofces as well as the Groups unit trust and securities businesses. Regional Risk also houses the validation team.
The regional ofces and the respective teams in risk management units within the unit trust business and securities businesses identify, analyse,
monitor, review and report the relevant material risk exposures of each individual country and/or businesses.
The Regional Risk Validation Team is independent from the risk taking units and model development team. The function of this unit is to perform
validation, as guided by regulatory guidelines and industry best practices on Basel related risk models and components comprising credit risk, traded
risk, non traded risk and other Basel related risk models. The unit provides recommendations to the modelling team and the business users and
reports to Regional Risk. The ndings and recommendations will be reported to GRC and BRC.
In ensuring a standardised approach to risk management across the Group, all risk management teams within the Group are required to conform to
the Groups EWRM framework, subject to necessary adjustments required for local regulations. For branches and subsidiaries without any risk
management department, all risk management activities will be centralised at relevant Risk Centres of Excellence. Otherwise, the risk management
activities will be performed by the local risk management team with matrix reporting line to respective Risk Centres of Excellence.
Strategies and Processes for Various Risk Management
Information on strategies and processes for Credit Risk, Market Risk, Operational Risk and Interest Rate Risk/Rate of Return Risk in the Banking Book are
available in the later sections.
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CIMB & YOU
55.1 Credit risk
Credit risk is dened as from the possibility of losses due to the obligor, market counterparty or issuer of securities or other instruments held, failing
to perform its contractual obligations to the Group. It arises primarily from traditional nancing activities through conventional loans, nancing facilities,
trade nance as well as commitments to support clients obligations to third parties, i.e. guarantees or kafalah contracts. In sales and trading activities,
credit risk arises from the possibility that the Groups counterparties will not be able or willing to full their obligation on transactions on or before
settlement date. In derivative activities, credit risk arises when counterparties to derivative contracts, such as interest/prot rate swaps, are not able
to or willing to full their obligation to pay the positive fair value or receivable resulting from the execution of contract terms. Credit risk may also arise
where the downgrading of an entitys rating causes the fair value of the Groups investment in that entitys nancial instruments to fall.
Credit Risk Management
The purpose of credit risk management is to keep credit risk exposure to an acceptable level vis--vis the capital, and to ensure the returns
commensurate with risks.
Consistent with the three-lines of defence model on risk management where risks are managed from the point of risk-taking activities, our Group
implemented the Risk-based Delegated Authority Framework. This Framework promotes clarity of risk accountability whereby the business unit, being
the rst line of defence, manages risk in a proactive manner with GRD as a function independent from the business units as the second line of
defence. This enhances the collaboration between GRD and the business units.
The Framework encompass the introduction of Joint Delegated Authority, enhanced credit approval process and a clear set of policies and procedures
that denes the limits and types of authority designated to the specic individuals. Our Group adopts a multi-tiered credit approving authority spanning
from the delegated authorities at business level, joint delegated authorities holders between business units and GRD, to the various credit committees.
The credit approving committees are set up to enhance the efciency and effectiveness of the credit oversight as well as the credit approval process
for all credit applications originating from the business units. Credit applications are independently evaluated by the Credit Risk Centre of Excellence
team prior to submission to the relevant committees for approval.
The GRC with the support of GCPRC, Group Credit Committee, Consumer Bank Credit Committee, Regional Private Banking Credit Committee and
GRD is responsible for ensuring adherence to the Board approved credit risk appetite as well as the effectiveness of credit risk management. This
amongst others includes the reviewing and analysing of portfolio trends, asset quality, watch-list reporting and policy review. It is also responsible for
articulating key credit risks and mitigating controls.
Approaches or mitigating controls adopted to address concentration risk to any large sector/industry, or to a particular counterparty group or
individual include adherence to and compliance with single customer, country and global counterparty limits as well as the assessment of the quality
of collateral.
Adherence to established credit limits is monitored daily by GRD, which combines all exposures for each counterparty or group, including off balance
sheet items and potential exposures. Limits are also monitored based on rating classication of the obligor and/or counterparty. For retail products,
portfolio limits are monitored monthly by GRD.
It is a policy of the Group that all exposures must be rated or scored based on the appropriate internal rating models, where available. Retail exposures
are managed on a portfolio basis and the risk rating models are designed to assess the credit worthiness and the likelihood of the obligors to repay
their debts, performed by way of statistical analysis from credit bureau and demographic information of the obligors. The risk rating models for non-
retail exposures are designed to assess the credit worthiness of the corporations or entities in paying their obligations, derived from risk factors such
as nancial history and demographics or company prole. These rating models are developed and implemented to standardise and enhance the
credit underwriting and decision-making process for the Groups retail and non-retail exposures.
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55.1 Credit risk (Continued)
Credit Risk Management (Continued)
Credit reviews and rating are conducted on the credit exposures on at least an annual basis and more frequently when material information on the
obligor or other external factors come to light.
The exposures are actively monitored, reviewed on a regular basis and reported regularly to Group Credit Policy & Portfolio Risk Committee, GRC and
BRC so that deteriorating exposures are identied, analysed and discussed with the relevant business units for appropriate remedial actions including
recovery actions, if required.
In addition to the above, the Group also employs VaR to measure credit concentration risk. The Group adopted the Monte Carlo simulation approach
in the generation of possible portfolio scenarios to obtain the standalone and portfolio VaR. This approach takes into account the credit concentration
risk and the correlation between obligors/counterparties and industries.
Credit Risk Mitigation
The employment of various credit risk mitigation techniques such as appropriate credit structuring, and posting of collateral and/or third party support
form an integral part of the credit risk management process. Credit risk mitigants are taken where possible and is considered secondary recourse to
the obligor for the credit risk underwritten.
i) Collaterals/Securities
All extension of secured credit facilities as deemed prudent, must be appropriately and adequately collateralised. A credit proposal is considered
secured only when the entire proposal is fully covered by approved collateral/securities within their approved margins as set out in the relevant
credit policy guides. GWBRC/RCC is empowered to approve any inclusion of new acceptable collaterals/securities.
Recognised collaterals include both nancial and physical assets. Financial collaterals consist of mainly cash deposits, shares, unit trusts and
debt securities, while physical collateral includes land and buildings and vehicles. Guarantors accepted are in line with BNMs CAF (Basel II -
Risk-Weighted Assets) and CAFIB (Risk-Weighted Assets) guidelines. Eligible credit protection is also used to mitigate credit losses in the event
that the obligor/counterparty defaults.
ii) Collateral Valuation and Management
The Group has in place policies which govern the determination of eligibility of various collaterals including credit protection, to be considered for
credit risk mitigation which includes the minimum operational requirements that are required for the specic collaterals to be considered as
effective risk mitigants.
The collateral is valued periodically ranging from daily to annually, depending on the type of collateral. Specically for real estate properties, a
framework for valuation of real estate properties is established to ensure adequate policies and procedures are in place for efcient and proper
conduct of valuation of real estate properties and other related activities in relation to the interpretation, monitoring and management of valuation
of real estate properties.
iii) Netting
In mitigating the credit risks in swaps and derivative transactions, the Group enters into master agreements that provide for closeout and
settlement netting arrangements with counterparties, whenever possible. A master agreement that governs all transactions between two parties,
creates the greatest legal certainty that credit exposure will be netted. In effect, it enables the netting of outstanding obligations upon termination
of outstanding transactions if an event of default occurs.
iv) Portfolio diversication for better clarity
CIMB Group avoids unwanted credit or market risk concentrations by diversifying its portfolios through a number of measures. Amongst others,
there are guidelines in place relating to maximum exposure to any counterparty, sectors and country.
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CIMB & YOU
Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR)
Off-Balance Sheet exposures are exposures such as derivatives, trade facilities and undrawn commitments. The Group adopts the Current Exposure
method to compute the capital requirement for CCR under BNMs guidelines on CAF (Basel II - Risk-Weighted Assets) and CAFIB (Risk-Weighted
Assets).
i) Credit Risk Mitigation
For credit derivatives and swaps transactions, the Group enters into master agreement with counterparties, whenever possible. Further, the
Group may also enter into CSA with counterparties. The net credit exposure with each counterparty is monitored based on the threshold agreed
in the master agreement and the Group may request for additional margin for any exposures above the agreed threshold, in accordance with the
terms specied in the relevant CSA or the master agreement. The eligibility of collaterals and frequency calls are negotiated with the counterparty
and endorsed by GCC.
ii) Treatment of Rating Downgrade
In the event of a one-notch downgrade of rating, based on the terms of the existing CSA, International Swaps and Derivatives Association
Agreement and exposure as at 31 December 2014, the additional collateral to be posted was RM13,989,200 while there was none as at 31
December 2013.
On the other hand, counterparty rating is being monitored and in the event of a rating downgrade, remedial actions such as revision of the
counterparty credit limit, suspension of the limit or the request for additional collateral may be taken.
55.1.1 Maximum exposure to credit risk (without taking into account any collateral held or other credit enhancements)
For nancial assets reected in the statement of nancial position, the exposure to credit risk equals their carrying amount. For nancial
guarantees and similar contract granted, it is the maximum amount that the Group and the Company would have to pay if the guarantees
were called upon. For credit related commitments and contingents that are irrevocable over the life of the respective facilities, it is generally
the full amount of the committed facilities.
The Group
Maximum exposure
2014 2013
RM000 RM000
Financial guarantees 7,591,973 6,104,901

Credit related commitments and contingencies 80,615,557 63,304,668
88,207,530 69,409,569
The nancial effect of collateral (quantication to the extent to which collateral and other credit enhancements mitigate credit risk) held for net
loans, advances and nancing for the Group is 80% (2013: 78%) while the nancial effect of collateral for derivatives for the Group is 60%
(2013: 80%). The nancial effect of collateral held for the remaining nancial assets are insignicant.
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ANNUAL REPORT 2014
55.1.2 Offsetting nancial assets and nancial liabilities
(a) Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements by type
Related amounts not set off in Related amounts not set off in
the statement of nancial the statement of nancial
position position
Gross Gross
Gross amounts of Gross amounts of
amounts of recognised amounts of recognised
recognised nancial recognised nancial
nancial liabilities nancial liabilities
assets in the in the assets in the in the
statement of statement of Net amounts Financial statement of statement of Net amounts Financial
nancial nancial of nancial Financial collateral nancial nancial of nancial Financial collateral
position position assets instruments received Net amount position position assets instruments received Net amount
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Financial assets
2014
Derivatives 7,182,759 7,182,759 (3,464,692) (765,202) 2,952,865 478 478 478
Reverse repurchase agreements 4,758,286 4,758,286 (1,207,558) (3,381,675) 169,053
Loans, advances and nancing
Share margin nancing 1,752,933 1,752,933 (1,696,636) 56,297
Total 13,693,978 13,693,978 (4,672,250) (5,843,513) 3,178,215 478 478 478
2013
Derivatives 5,020,453 5,020,453 (2,796,554) (666,903) 1,556,996 3,940 3,940 3,940
Reverse repurchase agreements 8,260,504 8,260,504 (1,526,380) (6,667,026) 67,098
Share margin nancing 2,354,659 2,354,659 (1,439,134) 915,525
Total 15,635,616 15,635,616 (4,322,934) (8,773,063) 2,539,619 3,940 3,940 3,940
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CIMB & YOU
55.1.2 Offsetting nancial assets and nancial liabilities (Continued)
(b) Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements by type
Related amounts not set off in Related amounts not set off in
the statement of nancial the statement of nancial
position position
Gross Gross Gross Gross
amounts of amounts of amounts of amounts of
recognised recognised recognised recognised
nancial nancial nancial nancial
liabilities in assets in liabilities in assets in
the statement the statement Net amounts Financial the statement the statement Net amounts Financial
of nancial of nancial of nancial Financial collateral of nancial of nancial of nancial Financial collateral
positions position liabilities instruments pledged Net amount positions position liabilities instruments pledged Net amount
Financial liabilities
2014
Derivatives 7,712,794 7,712,794 (3,305,289) (996,911) 3,410,594
Repurchase agreements 5,735,839 5,735,839 (4,960,352) (35,727) 739,760
Total 13,448,633 13,448,633 (8,265,641) (1,032,638) 4,150,354
2013
Derivatives 6,009,608 6,009,608 (2,613,900) (645,300) 2,750,408
Repurchase agreements 5,922,788 5,922,788 (5,891,608) (799) 30,381
Total 11,932,396 11,932,396 (8,505,508) (646,099) 2,780,789
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ANNUAL REPORT 2014
55.1.3 Concentration of risks of nancial assets with credit risk exposure
A concentration of credit risk exists when a number of counterparties are engaged in similar activities and have similar economic characteristics
that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.
(a) Geographical sectors
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) based on the
location of the counterparty as at 31 December 2014 and 31 December 2013 are as follows:
The Group
2014
Malaysia Indonesia Thailand Singapore United States United Kingdom Hong Kong China Others Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Cash and short-term funds 13,164,290 4,249,783 198,058 3,253,026 2,714,785 1,314,994 2,342,084 88,814 2,155,939 29,481,773
Reverse repurchase agreements 2,755,082 57,697 107,364 70,967 1,621,326 115,964 29,886 4,758,286
Deposits and placements with banks and other nancial institutions 2,456,975 353,196 79,196 510,708 223,394 82,159 33,346 500,014 4,238,988
Financial assets held for trading
Money market instruments 7,656,934 114,005 4,754,653 213,079 12,738,671
Quoted securities 3,780 499,830 721,037 14,021 1,238,668
Unquoted securities 2,540,888 115,385 376,662 617,940 208,148 850,356 276,269 1,002,604 5,988,252
Money market instruments 3,843,044 204,592 54,302 18,033 56,816 4,176,787
Quoted securities 361,426 3,835,130 2,506,633 173,920 5,753 6,882,862
Unquoted securities 14,176,007 442,345 396,338 1,798,182 30,589 158,669 1,075,232 372,007 898,399 19,347,768
Financial investments heldtomaturity
Money market instruments 4,691,226 487,878 275,964 5,455,068
Quoted securities 1,289,485 2,585,289 140,856 22,211 67,237 13,007 4,118,085
Unquoted securities 7,611,699 934 795,785 26,504 253,485 8,688,407
Derivative nancial instruments
Trading derivatives 3,224,209 405,109 1,052,430 820,291 258,526 588,525 73,175 614,111 7,036,376
Hedging derivatives 79,212 1,100 1,379 4,944 1,468 34,700 12,380 11,200 146,383
Overdrafts 4,105,443 112 809,292 96,114 53 768 294 2 199,555 5,211,633
Term loans/nancing 126,507,105 25,950,768 16,610,948 16,019,926 158,208 568,513 653,193 629,154 3,810,994 190,908,809
Bills receivable 1,227,485 57,426 3,381,372 768,281 2,864 5,132,092 88,986 10,658,506
Trust receipts 238,168 40,628 629,066 256,488 53,507 1,217,857
Claim on customers under acceptance credit 2,934,120 554,078 36,005 201,513 47,155 135,248 23,940 49,054 388,503 4,369,616
Credit card receivables 4,751,890 1,457,866 5,449 1,218,682 7,433,887
Revolving credit 8,616,968 24,138,181 101,099 2,480,929 204,946 18,016 918,096 36,478,235
Share margin nancing 801,116 24,870 128,971 778,980 1,582 1,735,519
Other loans 797 797
Other assets 4,102,131 498,264 659,322 2,303,299 108,514 724,825 1,356,193 1,617 752,867 10,507,032
Financial guarantees 2,369,822 798,899 18,054 4,080,438 11,978 81,151 231,631 7,591,973
Credit related commitments and contingencies 61,966,444 4,876,723 1,480,849 7,322,612 270 87,901 524,655 3,467,391 888,712 80,615,557
Total credit exposures 280,185,464 69,965,472 31,886,544 48,970,433 4,019,623 5,758,053 7,320,566 10,049,746 12,869,894 471,025,795
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CIMB & YOU
55.1.3 Concentration of risks of nancial assets with credit risk exposure (Continued)
(a) Geographical sectors (Continued)
location of the counterparty as at 31 December 2014 and 31 December 2013 are as follows (Continued):
The Group
2013
Malaysia Indonesia Thailand Singapore United States United Kingdom Hong Kong China Others Total
Cash and short-term funds 16,850,295 5,490,129 32,304 1,080,160 1,585,914 1,714,045 374,675 20,379 2,549,366 29,697,267
Reverse repurchase agreements 4,906,389 68,133 2,671,693 315,413 179,964 62,411 986 55,515 8,260,504
Deposits and placements with banks and
other nancial institutions 1,693,437 479,583 78,366 274,746 110,383 1,152,504 3,789,019
Money market instruments 6,889,126 35,353 4,032,527 129,638 11,086,644
Quoted securities 943,696 1,029,154 1,972,850
Unquoted securities 5,362,595 167,053 399,513 605,413 53,087 35,749 524,527 40,085 927,992 8,116,014
Money market instruments 3,737,735 195,893 27,052 58,142 4,018,822
Quoted securities 3,573,503 2,618,858 6,192,361
Unquoted securities 13,591,079 360,735 391,105 1,578,093 59,712 229,247 1,114,137 137,027 853,061 18,314,196
Financial investments held-to-maturity
Money market instruments 1,848,462 512,890 263,486 2,624,838
Quoted securities 903,343 1,628,612 62,668 8,077 2,602,700
Unquoted securities 4,473,244 881 839,165 6,235 25,978 248,450 5,593,953
Trading derivatives 2,021,134 323,727 854,526 301,818 220,291 553,154 20,454 41,918 480,641 4,817,663
Hedging derivatives 127,284 605 13,751 2,789 43,414 12,952 1,995 202,790
Overdrafts 4,039,263 4,052 757,747 83,700 52 951 298 154,384 5,040,447
Term loans/nancing 117,525,961 22,651,188 12,504,249 15,206,168 168,036 991,578 635,906 29,839 1,996,483 171,709,408
Bills receivable 547,590 448 2,807,424 479,684 24,340 28,830 5,232,004 12,221 9,132,541
Trust receipts 274,004 80,092 1,233,784 272,608 14,796 1,875,284
Claim on customers under acceptance credit 3,209,185 253,011 40,303 543,025 168,045 43,746 56,639 56,608 279,814 4,650,376
Credit card receivables 4,245,765 1,071,480 988,117 6,305,362
Revolving credit 6,490,169 19,486,761 87,273 1,520,365 253,223 396,389 28,234,180
Other loans 782 782
Other assets 3,869,092 367,317 778,233 639,111 23,681 104,890 431,235 421 244,605 6,458,585
Financial guarantees 1,839,595 945,032 290,312 1,912,513 147,465 65,959 76,074 827,951 6,104,901
Credit related commitments and contingencies 52,698,048 4,188,862 1,200,345 3,874,894 14,899 231,146 1,096,474 63,304,668
Total credit exposures 256,954,652 61,622,020 29,534,078 35,669,999 2,891,099 4,392,594 3,595,262 5,559,267 11,370,509 411,589,480
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ANNUAL REPORT 2014
(a) Geographical sectors (Continued)
location of the counterparty as at 31 December 2014 and 31 December 2013 are as follows (Continued):
The Company
2014
Malaysia Indonesia Total

RM000 RM000 RM000
Cash and short-term funds 1,864,071 3 1,864,074

Trading derivatives 478 478
Term loans/nancing 40 40
Other assets 13,764 13,764
Amount owing by subsidiaries
1,878,353 3 1,878,356
2013
Cash and short-term funds 69,570 3 69,573
Trading derivatives 3,940 3,940
Amount owing by subsidiaries 788 788
119,252 3 119,255
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CIMB & YOU
(b) Industry sectors
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) for items
recognised in the statements of nancial position as at 31 December 2014 and 31 December 2013 based on the industry sectors of the
counterparty are as follows:
The Group
2014
Deposits and Derivative nancial

placements Financial Financial instruments
Reverse with banks and Financial investments investments Loans, Other Total
Cash and short repurchase other nancial assets held available- held- Trading Hedging advances and nancial credit
term funds agreements institutions for trading (i) for-sale (i) to-maturity (i) derivatives derivatives nancing (ii) assets exposures
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Primary agriculture 44,458 300,874 23,538 8,856,338 9,225,208

Mining and quarrying 5,194 359,974 310,026 928 5,931,415 6,607,537
Manufacturing 1,423 231,058 807,628 397,318 116,121 18,567,871 7,145 20,128,564
Electricity, gas and water 202 426,842 2,743,734 730,317 135,215 2,497,968 8,437 6,542,715
Construction 238,709 1,722,010 493,525 70,885 6,231,030 3,536 8,759,695
Transport, storage and communications 283,704 1,924,399 1,484,486 783,704 9,163,671 33,888 13,673,852
Education and health 8,308 21,757 122 6,909,675 31,363 6,971,225
Wholesale and retail trade, and restaurant 6,116 83,739 136,112 372 19,653,700 3,914 19,883,953
Finance, insurance, real estate business:
Finance, insurance/takaful, real estate and
business activities 16,665,016 2,958,792 3,894,450 7,377,211 10,030,695 5,805,573 5,121,448 146,383 37,983,318 9,161,905 99,144,791
Others:
Government and government agencies 12,522,906 1,417,602 10,111,618 9,938,111 8,511,795 146,402 8,869,883 446,853 51,965,170
Household 11,201 282 113,436,048 415,175 113,862,706
Others 293,851 357,756 344,538 799,970 2,472,071 838,546 637,359 19,913,942 394,816 26,052,849
29,481,773 4,758,286 4,238,988 19,965,591 30,407,417 18,261,560 7,036,376 146,383 258,014,859 10,507,032 382,818,265
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ANNUAL REPORT 2014
(b) Industry sectors (Continued)
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) for items
recognised in the statements of nancial position as at 31 December 2014 and 31 December 2013 based on the industry sectors of the
counterparty are as follows (Continued):
The Group
2013
Deposits and Derivative nancial

placements Financial Financial instruments
Reverse with banks and Financial investments investments Loans, Other Total
Cash and short repurchase other nancial assets held available- held- Trading Hedging advances and nancial credit
term funds agreements institutions for trading (i) for-sale (i) to-maturity (i) derivatives derivatives nancing (ii) assets exposures
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Primary agriculture 79,087 156,915 3,466 6,756,497 81 6,996,046

Mining and quarrying 197,564 181,476 10,855 3,349,206 279 3,739,380
Manufacturing 7,406 339,525 665,429 434,212 75,148 15,607,568 391 17,129,679
Electricity, gas and water 2,923 926,768 2,030,747 407,686 14,370 1,100 1,954,708 16,956 5,355,258
Construction 459,646 1,288,875 403,022 15,428 5,746,194 3,763 7,916,928
Transport, storage and communications 361,511 2,373,292 892,358 105,571 8,260,702 4,499 11,997,933
Education, health and others 12,543 19,680 6,718,616 6,777 6,757,616
Wholesale and retail trade, and restaurant 4,328 12,134 60,383 19,028,234 9,887 19,114,966
business activities:
business activities 11,050,300 3,299,150 3,561,472 11,562,554 9,619,731 3,953,067 3,905,419 201,690 35,529,720 4,896,131 87,579,234
Others:
Government and government agencies 18,460,468 4,248,913 6,311,151 9,119,053 3,959,155 76,073 11,870,102 533,346 54,578,261
Household 456,186 4,418 99,816,330 527,712 100,804,646
Others 186,499 241,598 227,547 913,026 3,009,795 771,993 606,915 13,793,828 458,763 20,209,964
29,697,267 8,260,504 3,789,019 21,175,509 28,525,376 10,821,493 4,817,663 202,790 228,431,705 6,458,585 342,179,911
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CIMB & YOU
(i) Financial assets held for trading, nancial investments available-for-sale and nancial investments held-to-maturity are further
analysed by types of securities as follows:
The Group
2014
Financial assets held for trading Financial investments available-for-sale Financial investments held-to-maturity
Money Money Money Total
market Quoted Unquoted market Quoted Unquoted market Quoted Unquoted credit
instruments securities securities instruments securities securities instruments securities securities exposures
Primary agriculture 5,798 38,660 31,770 269,104 345,332

Mining and quarrying 3,520 356,454 70,253 239,773 670,000
Manufacturing 26,954 204,104 44,925 13,947 748,756 6,513 390,805 1,436,004
Electricity, gas and water 51,957 51,703 323,182 11,090 137,760 2,594,884 43,780 686,537 3,900,893
Construction 2,780 235,929 71,357 1,650,653 493,525 2,454,244
Transport, storage and communications 45,805 237,899 406,883 1,517,516 341,372 1,143,114 3,692,589
Education and health 8,308 21,757 30,065
Wholesale and retail trade, and restaurant 26,992 56,747 79,511 56,601 219,851
business activities 3,095,462 652,057 3,629,693 178,040 2,416,939 7,435,714 199,962 1,995,489 3,610,123 23,213,479
Others:
Government and government agencies 9,562,878 414,751 133,990 3,942,732 3,632,685 2,362,694 5,255,106 1,670,081 1,586,608 28,561,525
Others 28,374 771,594 2,472,073 60,850 777,695 4,110,586
12,738,671 1,238,668 5,988,252 4,176,787 6,882,862 19,347,768 5,455,068 4,118,085 8,688,407 68,634,568
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ANNUAL REPORT 2014
(i) Financial assets held for trading, nancial investments available-for-sale and nancial investments held-to-maturity are further
analysed by types of securities as follows (Continued):
The Group
2013
Financial assets held for trading Financial investments available-for-sale Financial investments held-to-maturity
Money Money Money Total
market Quoted Unquoted market Quoted Unquoted market Quoted Unquoted credit
instruments securities securities instruments securities securities instruments securities securities exposures
Primary agriculture 79,086 156,915 236,001

Mining and quarrying 7,249 190,315 68,499 112,977 379,040
Manufacturing 89,640 5,558 244,327 37,872 627,558 6,165 428,048 1,439,168
Electricity, gas and water 58,889 49,831 818,048 9,542 133,161 1,888,044 48,785 358,901 3,365,201
Construction 7,487 452,159 32,205 1,256,670 403,022 2,151,543
Transport, storage and communications 109,323 252,188 653,608 1,719,684 226,021 666,337 3,627,161
Education and health 12,543 19,680 32,223
Wholesale and retail trade, and restaurant 12,134 60,383 72,517
business activities 6,045,806 694,752 4,821,996 304,931 2,001,285 7,313,517 171,827 1,364,548 2,416,690 25,135,352
Others:
Government and government agencies 4,882,971 1,073,973 354,208 3,704,349 3,185,668 2,229,036 2,453,011 899,129 607,015 19,389,360
Others 9,338 903,687 3,009,795 58,052 713,940 4,694,812
11,086,644 1,972,850 8,116,014 4,018,822 6,192,361 18,314,196 2,624,838 2,602,700 5,593,953 60,522,378
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CIMB & YOU
(ii) Loans, advances and nancing are further analysed by product types as follows:
The Group
2014
Claim on
customers
under Credit Share Total
Term loans/ Bills Trust acceptance card Revolving margin Other credit
Overdrafts nancing receivable receipts credit receivables credit nancing loan exposures
Primary agriculture 252,093 4,737,209 101,859 37,845 170,241 109 3,556,982 8,856,338
Mining and quarrying 55,013 4,559,326 92,702 3,540 12,951 276 1,207,607 5,931,415
Manufacturing 624,710 5,895,620 2,321,354 509,766 1,263,303 1,144 7,951,974 18,567,871
Electricity, gas and water 9,370 2,229,644 6,629 1,207 678 64 250,376 2,497,968
Construction 537,778 4,041,299 93,171 35,241 136,179 1,020 1,384,181 2,161 6,231,030
Transport, storage and communications 153,072 6,817,602 695,268 407 10,056 591 1,486,675 9,163,671
Education and health 131,914 5,859,228 27,159 1,751 2,024 2,030 885,569 6,909,675
Trade and hospitality 1,065,052 8,532,768 1,106,883 342,706 1,307,691 3,155 7,294,743 702 19,653,700
business activities 525,005 23,566,675 3,045,057 10,493 1,466,493 27,165 9,216,930 125,500 37,983,318
Others:
Government and government agencies 8,869,086 797 8,869,883
Household 1,701,678 101,833,961 2,382 2,397 7,398,285 890,189 1,607,156 113,436,048
Others 155,948 13,966,391 3,166,042 272,504 48 2,353,009 19,913,942
5,211,633 190,908,809 10,658,506 1,217,857 4,369,616 7,433,887 36,478,235 1,735,519 797 258,014,859
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ANNUAL REPORT 2014
(ii) Loans, advances and nancing are further analysed by product types as follows (Continued):
The Group
2013
Claim on
customers
under Credit Share Total
Term loans/ Bills Trust acceptance card Revolving margin Other credit
Overdrafts nancing receivable receipts credit receivables credit nancing loan exposures
Primary agriculture 229,835 4,110,385 25,609 20,819 174,229 35 2,195,585 6,756,497

Mining and quarrying 42,000 2,695,144 2,013 7,022 149 602,878 3,349,206
Manufacturing 637,264 5,282,775 1,922,916 870,483 1,381,844 983 5,511,303 15,607,568
Electricity, gas and water 10,236 1,697,276 21,847 1,143 78 224,128 1,954,708
Construction 535,506 2,992,626 62,826 59,034 155,821 924 1,939,457 5,746,194
Transport, storage and communications 163,904 6,538,866 68,057 30,253 19,755 765 1,439,102 8,260,702
Education and health 120,692 5,916,323 34,771 1,353 3,372 2,301 639,804 6,718,616
Wholesale and retail trade, and restaurant 1,045,808 8,449,129 1,103,442 820,087 1,426,049 2,659 6,181,060 19,028,234
business activities 532,638 19,497,419 5,906,258 38,045 1,480,159 21,842 7,961,866 91,493 35,529,720
Others:
Government and government agencies 11,870,102 11,870,102
Household 1,642,785 90,152,768 3,085 6,275,580 363,449 1,377,881 782 99,816,330
Others 79,779 12,506,595 3,564 13,363 982 46 1,175,548 13,951 13,793,828
5,040,447 171,709,408 9,132,541 1,875,284 4,650,376 6,305,362 28,234,180 1,483,325 782 228,431,705
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CIMB & YOU
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) for the following
nancial assets based on the industry sectors of the counterparty are as follows:
The Company
2014
Loans,
Cash and Derivative advances Other Total
short term nancial and nancial credit
funds instruments nancing* assets** exposures
RM000 RM000 RM000 RM000 RM000

business activities 1,864,074 478 1,864,552
Others:
Others 40 13,764 13,804
1,864,074 478 40 13,764 1,878,356
The Company
2013
Loans,
Cash and Derivative advances Other Total
short term nancial and nancial credit
funds instruments nancing* assets** exposures
RM000 RM000 RM000 RM000 RM000

business activities 69,573 3,940 11,053 84,566
Others:
Others 71 34,618 34,689
69,573 3,940 71 45,671 119,255
* Relates to term loans

** Other nancial assets include amount owing by subsidiaries and other nancial assets
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ANNUAL REPORT 2014
The analysis of credit risk concentrations for nancial guarantees and credit related commitments and contingencies based on the
industry sectors of the counterparty are as follows:
The Group
Credit related Credit related
commitments commitments
Financial and Financial and
guarantees contingencies guarantees contingencies
2014 2014 2013 2013
RM000 RM000 RM000 RM000
Primary agriculture 15,028 789,454 10,695 842,473

Mining and quarrying 142,077 1,443,257 70,028 593,894
Manufacturing 385,683 5,870,786 289,695 5,161,199
Electricity, gas and water 60,684 621,567 79,536 682,612
Construction 531,387 5,435,280 343,366 5,678,849
Transport, storage and communications 123,578 860,037 87,375 972,112
Education and health 45,703 2,741,477 39,120 2,725,057
Wholesale and retail trade, and restaurant 359,612 6,479,783 252,782 6,081,230
Finance, insurance/takaful, real estate and business activities:
Finance, insurance/takaful, real estate and business activities 4,337,955 13,397,605 4,499,023 14,478,415
Others:
Household 57,899 35,352,608 428,002 2,112,144
Others 1,532,367 7,623,703 5,279 23,976,683
7,591,973 80,615,557 6,104,901 63,304,668
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CIMB & YOU
55.1.4 Credit quality of nancial assets
Financial assets are required under MFRS 7, to be categorised into neither past due nor impaired, past due but not impaired or impaired.
(a) Loans, advances and nancing
Loans, advances and nancing of the Group are summarised as follows:
The Group
31 December 2014
Neither past Past due but Total

due nor not impaired Impaired gross
impaired (i) (ii) (iii) amount
RM000 RM000 RM000 RM000
Overdrafts 4,742,133 414,978 440,751 5,597,862

Term loans/nancing 179,378,980 10,632,287 5,741,994 195,753,261
Bills receivable 10,648,613 22,705 103,384 10,774,702
Trust receipts 1,202,442 4,195 187,906 1,394,543
Claim on customers under acceptance credit 4,326,734 3,661 242,865 4,573,260
Credit card receivables 7,024,339 436,688 114,584 7,575,611
Revolving credit 35,845,103 182,337 1,328,487 37,355,927
Share margin nancing 1,722,443 9,044 21,446 1,752,933
Other loans 797 1,272 2,069
Total 244,891,584 11,705,895 8,182,689 264,780,168
Less: Impairment allowances * (6,765,309)

Total net amount
258,014,859
31 December 2013
Overdrafts 4,717,536 451,150 490,366 5,659,052
Trust receipts 1,841,491 33,349 198,040 2,072,880
Claim on customers under acceptance credit 4,599,495 3,194 339,405 4,942,094
Credit card receivables 5,958,400 388,124 94,409 6,440,933
Revolving credit 27,865,748 165,332 799,889 28,830,969
Share margin nancing 1,479,841 4,613 21,159 1,505,613
Other loans 782 883 1,665
Total 212,175,371 15,129,355 7,393,269 234,697,995
Less: Impairment allowances * (6,266,290)

Total net amount
228,431,705
* Impairment allowances include allowances against nancial assets that have been impaired and those subject to portfolio impairment
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ANNUAL REPORT 2014
55.1.4 Credit quality of nancial assets (Continued)
(a) Loans, advances and nancing (Continued)
(i) Loans, advances and nancing that are neither past due nor impaired
Loans, advances and nancing of the Company as at 31 December 2014 of RM40,000 (2013: RM71,000) are categorised as
neither past due nor impaired.
The credit quality of loans, advances and nancing that are neither past due nor impaired can be assessed by reference to the
internal rating system adopted by the Group and the Company.
The Group
2014
Good Satisfactory No rating Total

RM000 RM000 RM000 RM000
Overdrafts 1,828,163 146,297 2,767,673 4,742,133

Bills receivable 8,564,316 142,249 1,942,048 10,648,613
Trust receipts 1,016,761 64,651 121,030 1,202,442
Claim on customers under acceptance credit 3,120,784 44,201 1,161,749 4,326,734
Credit card receivables 1,355,181 5,669,158 7,024,339
Share margin nancing 1,722,443 1,722,443
Other loans 797 797
Total 109,252,355 2,235,857 133,403,372 244,891,584
2013
Overdrafts 1,868,435 162,460 2,686,641 4,717,536

Trust receipts 1,612,155 74,579 154,757 1,841,491
Claim on customers under acceptance credit 3,479,478 45,213 1,074,804 4,599,495
Credit card receivables 1,007,136 4,951,264 5,958,400
Share margin nancing 140,262 1,339,579 1,479,841
Other loans 782 782
Total 105,992,736 2,624,511 103,558,124 212,175,371
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CIMB & YOU
(i) Loans, advances and nancing that are neither past due nor impaired (Continued)
The credit quality of loans, advances and nancing that are neither past due nor impaired can be assessed by reference to the
internal rating system adopted by the Group and the Company (Continued).
The Company
2014 2013
No rating Total No rating Total
RM000 RM000 RM000 RM000
Term loans/nancing 40 40 71 71
Total 40 40 71 71
Credit quality description can be summarised as follows:
Good There is a high likelihood of the asset being recovered in full and therefore, of no cause for concern to the Group and the
Company.
Satisfactory There is concern over the counterpartys ability to make payments when due. However, these have not yet converted
to actual delinquency and the counterparty is continuing to make payments when due and is expected to settle all outstanding
amounts of principal and interest.
No rating Refers to counterparties that do not satisfy the criteria to be rated internally. These include sovereigns, individuals,
schools, non-government organisations, cooperatives and others.
(ii) Loans, advances and nancing that are past due but not impaired
The Group considers an asset as past due when any payment due under strict contractual terms is received late or missed.
However, loans, advances and nancing which are less than 90 days past due, are not yet considered to be impaired unless there
are impairment triggers available to indicate otherwise.
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ANNUAL REPORT 2014
(ii) Loans, advances and nancing that are past due but not impaired (Continued)
An age analysis of loans, advances and nancing that are past due but not impaired is set out below:
The Group
2014
Up to 1 >1 to 3
month months Total
RM000 RM000 RM000
Overdrafts 386,577 28,401 414,978

Term loans/nancing 9,129,209 1,503,078 10,632,287
Bills receivable 20,440 2,265 22,705
Trust receipts 3,463 732 4,195
Claim on customers under acceptance credit 1,288 2,373 3,661
Credit card receivables 369,229 67,459 436,688
Revolving credit 97,325 85,012 182,337
Share margin nancing 9,044 9,044
Total 10,016,575 1,689,320 11,705,895
2013
Overdrafts 388,454 62,696 451,150

Term loans/nancing 9,940,518 4,128,680 14,069,198
Bills receivable 14,291 104 14,395
Trust receipts 29,267 4,082 33,349
Claim on customers under acceptance credit 3,194 3,194
Credit card receivables 338,395 49,729 388,124
Revolving credit 35,996 129,336 165,332
Share margin nancing 4,613 4,613
Total 10,754,728 4,374,627 15,129,355
(iii) Impaired loans, advances and nancing
The Group
2014 2013
RM000 RM000
Total gross impaired loans 8,182,689 7,393,269

Less: Impairment allowances (5,037,242) (3,856,820)
Total net impaired loans 3,145,447 3,536,449
Refer to Note 8(vii) and Note 8(viii) for analysis of impaired loans, advances and nancing by economic purpose and geographical
distribution.
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CIMB & YOU
(b) Financial investments
Financial assets held for trading, nancial investments available-for-sale and nancial investments held-to-maturity are summarised as
follows:
The Group
2014
Neither past
due nor Total gross
impaired (i) Impaired amount
RM000 RM000 RM000

Money market instruments 12,738,671 12,738,671
Quoted securities 1,238,668 1,238,668
Unquoted securities 5,988,252 5,988,252
Unquoted securities 19,347,768 75,357 19,423,125
Quoted securities 4,119,119 4,228 4,123,347
Total 68,640,233 108,046 68,748,279
Less: Impairment allowance * (113,711)

Total net amount
68,634,568
* Impairment allowance represents allowance made against nancial assets that have been impaired.
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ANNUAL REPORT 2014
(b) Financial investments (Continued)
Financial assets held for trading, nancial investments available-for-sale and nancial investments held-to-maturity are summarised as
follows (Continued):
The Group
2013
Neither past
due nor Total gross
RM000 RM000 RM000

Unquoted securities 8,116,014 8,116,014
Total 60,528,464 109,979 60,638,443
Total net amount 60,522,378
There were no nancial assets held for trading, nancial investments available-for-sale and nancial investments held-to-maturity that are
past due but not impaired as at 31 December 2014 and 31 December 2013 for the Group.
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CIMB & YOU
(i) Financial investments that are neither past due nor impaired
The table below presents an analysis of nancial assets held for trading, nancial investments available-for-sale and nancial
investments held-to-maturity that are neither past due nor impaired, based on rating by major credit rating agencies:
The Group
2014
Non
investment
Investment grade
grade (BB+ and
Sovereign (AAA to BBB-) below) No rating Total
RM000 RM000 RM000 RM000 RM000

Money market instruments 9,709,897 3,028,774 12,738,671
Quoted securities 789,338 449,330 1,238,668
Unquoted securities 112,443 4,291,511 135,773 1,448,525 5,988,252
Money market instruments 3,824,671 352,116 4,176,787
Unquoted securities 3,543,894 13,369,867 493,598 1,940,409 19,347,768
Total 34,697,059 26,880,082 783,526 6,279,566 68,640,233
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ANNUAL REPORT 2014
(i) Financial investments that are neither past due nor impaired (Continued)
The table below presents an analysis of nancial assets held for trading, nancial investments available-for-sale and nancial
investments held-to-maturity that are neither past due nor impaired, based on rating by major credit rating agencies (Continued):
The Group
2013
Non
investment
Investment grade
grade (BB+ and
RM000 RM000 RM000 RM000 RM000

Money market instruments 8,440,147 2,646,496 4 11,086,647
Unquoted securities 389,814 4,795,983 396,057 2,534,160 8,116,014
Unquoted securities 645,719 2,449,495 2,497,857 5,593,071
Total 27,766,159 25,300,170 824,817 6,637,318 60,528,464
The securities with no ratings mainly consist of private debt securities.
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CIMB & YOU
(c) Other nancial assets
Other nancial assets of the Group and the Company are summarised as follows:
The Group
2014
Neither past Past due Total

due nor but not gross
impaired (i) impaired (ii) Impaired amount
RM000 RM000 RM000 RM000
Cash and short-term funds 29,481,773 29,481,773

Deposits and placements with banks and other nancial
institutions 4,238,988 4,238,988
Other assets 10,482,920 25,539 123,405 10,631,864
Derivative nancial instruments 7,182,759 7,182,759
Total 56,144,726 25,539 123,405 56,293,670
2013

Deposits and placements with banks and other nancial
institutions 3,789,019 3,789,019
Other assets 6,248,875 185,973 118,131 6,552,979
Derivative nancial instruments 5,020,453 5,020,453
Total 53,016,118 185,973 118,131 53,320,222
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ANNUAL REPORT 2014
(c) Other nancial assets (Continued)
Other nancial assets of the Group and the Company are summarised as follows (Continued):
The Company
2014
Neither past Total

due nor gross
RM000 RM000 RM000

Derivative nancial instruments 478 478
Total 1,878,316 775 1,879,091
Less: Impairment allowance * (775)
2013

Derivative nancial instruments 3,940 3,940
Amount owing by subsidiaries 788 2,225 3,013
Total 119,184 2,225 121,409
Total net amount 119,184
There were no other credit risk nancial assets that are past due but not impaired as at 31 December 2014 and 31 December 2013
for the Company.
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CIMB & YOU
(i) Other nancial assets that are neither past due nor impaired
The tables below present an analysis of other nancial assets that are neither past due nor impaired, based on rating by major
credit rating agencies:
The Group
2014
Non
investment
Investment grade
grade (BB+ and
RM000 RM000 RM000 RM000 RM000
Cash and short-term funds 12,775,485 15,846,854 3,958 855,476 29,481,773

Reverse repurchase agreements 1,380,711 2,723,328 654,247 4,758,286
other nancial institutions 679,762 3,243,419 315,807 4,238,988
Other assets 521,471 2,598,112 7,363,337 10,482,920
Derivative nancial instruments 425,878 4,606,009 1,277,632 873,240 7,182,759
Total 15,783,307 29,017,722 1,281,590 10,062,107 56,144,726
2013
Cash and short-term funds 18,595,695 10,541,054 5,864 554,654 29,697,267

Reverse repurchase agreements 6,226,777 743,096 882 1,289,749 8,260,504
other nancial institutions 706,261 2,964,934 3,277 114,547 3,789,019
Other assets 451,061 2,030,678 3,767,136 6,248,875
Derivative nancial instruments 162,633 3,618,156 372,311 867,353 5,020,453
Total 26,142,427 19,897,918 382,334 6,593,439 53,016,118
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ANNUAL REPORT 2014
(i) Other nancial assets that are neither past due nor impaired (Continued)
The tables below present an analysis of other nancial assets that are neither past due nor impaired, based on rating by major
credit rating agencies (Continued):
The Company
2014
Investment
grade
(AAA to BBB-) No rating Total
RM000 RM000 RM000

Derivative nancial instruments 478 478
Total 1,864,552 13,764 1,878,316
2013

Other assets 10,266 34,617 44,883
Derivative nancial instruments 3,940 3,940
Total 83,779 35,405 119,184
(ii) Other nancial assets that are past due but not impaired
An age analysis of the other nancial assets of the Group that are past due but not impaired as at 31 December 2014 and
31 December 2013 are set out as below.
The Group
2014
Past due but not impaired

Up to >1 to 3
1 month months Total
RM000 RM000 RM000
Other assets 5,498 20,041 25,539
2013
Other assets 88,415 97,558 185,973
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CIMB & YOU
55.1.5 Repossessed collateral
The Group obtained assets by taking possession of collateral held as security as at 31 December 2014 and 31 December 2013 are as
follows:
The Group
2014
Carrying
amount
RM000
Nature of assets
Industrial and residential properties and development land 356,826
2013
Nature of assets
Industrial and residential properties and development land 187,787
Repossessed collaterals are sold as soon as practicable. The Group does not utilise the repossessed collaterals for its business use.
55.2 Market risk
Market risk is dened as any uctuation in the market value of a trading or investment exposure arising from changes to market risk factors such as
interest rates/benchmark rates, currency exchange rates, credit spreads, equity prices, commodities prices and their associated volatility.
Market risk is inherent in the business activities of an institution that trades and invests in securities, derivatives and other structured nancial products.
Market risk may arise from the trading book and investment activities in the banking book. For the trading book, it can arise from customer-related
businesses or from the Groups proprietary positions. As for investment activities in the banking book, the Group holds the investment portfolio to
meet liquidity and statutory reserves requirement and for investment purposes.
Market Risk Management (MRM)
Market risk is evaluated by considering the risk/reward relationship and market exposures across a variety of dimensions such as volatility, concentration/
diversication and maturity. The GRC with the support of Group Market Risk Committee and Group Underwriting Committee ensure that the risk
exposures undertaken by the Group is within the risk appetite approved by the Board. GRC, GMRC and GUC, supported by the Market Risk Centre
of Excellence in GRD is responsible to measure and control market risk of the Group through robust measurement and the setting of limits while
facilitating business growth within a controlled and transparent risk management framework.
The Group employs the VaR framework to measure market risk where VaR represents the worst expected loss in portfolio value under normal market
conditions over a specic time interval at a given condence level. The Group has adopted a historical simulation approach to compute VaR. This
approach assesses potential loss in portfolio value based on the last 500 daily historical movements of relevant market parameters and 99%
condence level at 1-day holding period.
Broadly, the Group is exposed to four major types of market risk namely equity risk, interest/benchmark rate risk, foreign exchange risk and commodity
risk. Each business unit is allocated VaR limits for each type of market risk undertaken for effective risk monitoring and control. These limits are
approved by the GRC and utilisation of limits is monitored on a daily basis. Daily risk reports are sent to the relevant traders and Group Treasurys
Market Risk Analytics Team. The head of each business unit is accountable for all market risk under his/her purview. Any excess in limit will be
escalated to management in accordance to the Groups exception management procedures.
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ANNUAL REPORT 2014
55.2 Market risk (Continued)
Market Risk Management (MRM) (Continued)
In addition to daily monitoring of VaR usage, on a monthly basis, all market exposures and VaR of the Group will be summarised and submitted to
Group Market Risk Committee, GRC and BRC for its perusal.
Although historical simulation provides a reasonable estimate of market risk, this approach relies heavily on historical daily price movements of the
market parameter of interest/prot. Hence, the resulting market VaR is exposed to the danger that price and rate changes over the stipulated time
horizon might not be typical. Example, if the past 500 daily price movements were observed over a period of exceptionally low volatility, then the VaR
computed would understate the risk of the portfolio and vice versa.
In order to ensure historical simulation gives an adequate estimation of market VaR, backtesting of the historical simulation approach is performed
annually. Backtesting involves comparing the derived 1-day VaR against the hypothetical change in portfolio value assuming end-of-day positions in
the portfolio were to remain unchanged. The number of exceptions would be the number of times the difference in hypothetical value exceeds the
computed 1-day VaR.
The Group also complements VaR with stress testing exercises to capture event risk that are not observed in the historical time period selected to
compute VaR. Stress testing exercise at the group-wide level involves assessing potential losses to the Groups market risk exposures under pre-
specied scenarios. This type of scenario analysis is performed twice yearly. Scenarios are designed in collaboration with the Regional Research Team
to reect extreme and yet plausible stress scenarios. Stress test results are presented to the Group Market Risk Committee, GRC to provide senior
management with an overview of the impact to the Group if such stress scenarios were to materialise.
In addition to the above, Market Risk Centre of Excellence undertakes the monitoring and oversight process at Group Treasury trading oors, which
include reviewing treasury trading strategy, analysing positions and activities vis--vis changes in the nancial markets, monitoring limits usage,
assessing limits adequacy and verifying transaction prices.
The Market Risk Centre of Excellence also provides accurate and timely valuation of the Groups position on a daily basis. Exposures are valued using
market price (Mark-to-Market) or a pricing model (Mark-to-Model) (collectively known as MTM) where appropriate. The MTM process is carried out
on all positions classied as Held for Trading as well as Available for Sale on a daily basis for the purpose of meeting independent price verication
requirements, calculation of prots/losses as well as to conrm that margins required are met.
Treasury products approval processes will be led by Market Risk Centre of Excellence to ensure operational readiness before launching. All new
products are assessed by components and in totality to ensure nancial risks are accurately identied, monitored and effectively managed.
All valuation methods and models used are documented and validated by the quantitative analysts to assess its applicability to market conditions.
The process includes verication of rate sources, parameters, assumptions in modelling approach and its implementation. Existing valuation models
are reviewed periodically to ensure that they remain relevant to changing market conditions.
Capital Treatment for Market Risk
At present, the Group adopts the Standardised Approach to compute market risk capital requirement under BNMs guidelines on Capital Adequacy
Framework (CAF) (Basel II Risk Weighted Assets) and Capital Adequacy Framework for Islamic Banks (CAFIB) (Risk-Weighted Assets).
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CIMB & YOU
55.2.1 VaR
The usage of market VaR by risk type based on 1-day holding period of the Groups trading exposures are set out as below:
The Group
2014 2013
RM000 RM000
Foreign exchange risk 6,837 3,601

Interest rate risk 17,655 16,322
Equity risk 9,400 9,553
Commodity risk 2 6
Total 33,894 29,482
Total shareholders fund 37,360,436 30,271,098

Percentage of shareholders fund 0.09% 0.10%
55.2.2 Interest rate risk
Interest rate risk relates to the potential adverse impact on net interest income arising from changes in market rates. One of the primary
sources of interest rate risk is the repricing mismatches between interest earning assets and interest bearing liabilities. Interest rate risk is
measured and reported at various levels throught various techniques including Earnings-at-Risk (EaR).
(a) Financial assets and nancial liabilities analysed by the earlier of contractual repricing or maturity dates
The table below summarise the Groups nancial assets and nancial liabilities at their full carrying amounts, analysed by the earlier of
contractual repricing or maturity dates.
The Group
2014 Non-trading book
Up to 1 >13 >36 > 6 12 >15 Over 5 Non-interest Trading

Note month months months months years years sensitive book Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Financial assets
Cash and short-term funds 27,014,437 12,916 2,000 6,433,464 33,462,817
Reverse repurchase agreements 2,882,534 1,580,459 26,842 244,755 23,696 4,758,286
Deposits and placements with banks and 2,517,999 1,266,720 188,250 26,567 15,039 224,413 4,238,988
other nancial institutions
Financial assets held for trading 23,803,771 23,803,771
Financial investments available-for-sale (i) 282,777 559,650 621,150 908,596 12,096,344 15,733,047 2,084,958 32,286,522
Financial investments held-to-maturity (i) 193,123 933,112 543,555 738,009 7,260,694 8,402,768 190,300 18,261,561
Trading derivatives 7,036,376 7,036,376
Hedging derivatives 10,028 8,021 18,550 35,139 18,871 55,774 146,383
Loans, advances and nancing (i) 163,565,098 17,819,067 8,587,023 8,208,659 31,891,056 27,943,049 907 258,014,859
Other assets 659,683 4,626 84,266 8,142 908,062 8,842,253 10,507,032
Total nancial assets 197,125,679 22,184,571 10,069,636 10,171,867 52,190,066 52,134,638 17,799,991 30,840,147 392,516,595
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ANNUAL REPORT 2014
55.2.2 Interest rate risk (Continued)
(a) Financial assets and nancial liabilities analysed by the earlier of contractual repricing or maturity dates (Continued)
contractual repricing or maturity dates. (Continued)
The Group

month months months months years years sensitive book Total
Deposits from customers 168,591,363 34,077,651 21,840,164 22,212,151 8,186,127 2,824,502 24,336,829 282,068,787
Deposits and placements of banks and other nancial
institutions 12,948,553 9,056,721 7,103,614 1,999,877 699,169 222,288 119,576 32,149,798
Repurchase agreements 504,357 2,523,504 1,784,097 121,426 792,288 10,167 5,735,839
Hedging derivatives 9,803 37,258 91,997 16,052 140,528 186,873 482,511
Bills and acceptances payable 1,509,736 864,210 508,678 8,333 68,016 39,161 2,998,134
Financial liabilities designated at fair value 218,736 226,176 282,135 2,200,085 1,068,861 16,137 (321,429) 3,690,701
Other liabilities 383,032 5,141 375 750 3,000 9,615,663 10,007,961
Other borrowings 920,696 430,632 1,062,523 1,607,703 4,985,258 261,815 22,180 9,290,807
Subordinated obligations 150,000 1,004,852 5,654,234 5,597,601 175,807 12,582,494
Bonds and debentures 537,888 79,183 1,128,220 375,096 5,514,391 31,270 7,666,048
Non-cumulative guaranteed and redeemable preference
shares 725,933 36,667 7,588 770,188
Total nancial liabilities 185,624,164 47,300,476 33,951,803 28,072,173 28,243,096 10,198,607 34,374,378 6,908,854 374,673,551
Net interest sensitivity gap 11,501,515 (25,115,905) (23,882,167) (17,900,306) 23,946,970 41,936,031 23,931,293
Financial guarantees and commitments and

contingencies
Treasury related commitments and contingencies
(hedging) 1,005,406 772,083 3,233,671 1,795,820 11,760,397 11,383,652 29,951,029
Net interest sensitivity gap 1,005,406 772,083 3,233,671 1,795,820 11,760,397 11,383,652 88,207,530 118,158,559
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CIMB & YOU
The Group

Note month months months months years years sensitive book Total
Financial assets
Cash and short-term funds 26,945,089 1,643,404 379 1,498 5,088,512 33,678,882
Reverse repurchase agreements 5,135,399 3,067,566 26,244 11,252 20,043 8,260,504
other nancial institutions 1,797,277 1,711,705 48,449 57,532 15,000 159,056 3,789,019
Financial assets held for trading 23,403,280 23,403,280
Financial investments available-for-sale (i) 72,422 498,061 644,224 1,304,057 10,033,826 15,774,527 2,006,941 30,334,058
Financial investments held-to-maturity (i) 66,026 132,292 140,393 537,009 5,930,836 3,906,672 108,265 10,821,493
Hedging derivatives 1,102 14 26 116,412 69,567 187,121
Loans, advances and nancing (i) 141,518,191 19,741,989 8,351,293 6,686,301 29,090,810 23,040,657 2,464 228,431,705
Other assets 476,423 82,115 532,279 5,346,307 6,437,124
Total nancial assets 176,011,929 26,795,031 9,293,123 8,597,649 45,719,163 42,791,423 12,731,588 28,236,612 350,176,518
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ANNUAL REPORT 2014
The Group

Deposits from customers 155,258,393 31,636,533 19,083,754 16,919,427 3,625,749 2,254,539 34,225,907 263,004,302
Deposits and placements of banks and other nancial
institutions 9,058,545 6,765,586 2,374,698 1,409,037 391,191 627,319 101,469 20,727,845
Repurchase agreements 2,888,316 2,201,210 47,659 775,418 10,185 5,922,788
Hedging derivatives 1 15 15,339 4,536 131,642 112,043 4,646 268,222
Bills and acceptances payable 1,657,117 1,553,198 532,560 10,349 74,843 82,412 802,740 4,713,219
Financial liabilities designated at fair value 1,355,543 1,049,134 (272,507) 2,132,170
Other liabilities 162,142 195 7,578,158 7,740,495
Other borrowings 830,214 1,454,617 598,979 1,358,355 2,489,818 1,017,806 22,938 7,772,727
Subordinated obligations 4,115,458 7,794,896 156,346 12,066,700
Bonds and debentures 1,292,420 474,993 350,197 48,347 5,278,919 45,389 7,490,265
shares 130,020 712,140 5,287 847,447
Total nancial liabilities 171,147,148 44,216,367 23,003,186 19,750,051 18,950,721 12,938,149 42,953,065 5,468,879 338,427,566
Net interest sensitivity gap 4,864,781 (17,421,336) (13,710,063) (11,152,402) 26,768,442 29,853,274 22,767,733
Financial guarantees and commitments and

contingencies
Treasury related commitments and contingencies
(hedging) 587,087 2,622,886 647,479 85,947 14,459,250 6,775,525 25,178,174
Net interest sensitivity gap 587,087 2,622,886 647,479 85,947 14,459,250 6,775,525 69,409,569 94,587,743
236
CIMB & YOU
(i) The interest rate risk for nancial investments available-for-sale, nancial investments held-to-maturity and loans, advances and
nancing of the Group are further analysed by classes of nancial assets as follows:
The Group
Up to 1 >13 >36 > 6 12 >15 Over 5 Non-interest

month months months months years years sensitive Total

Money market instruments 73,075 47,913 54,302 48,624 1,444,427 2,481,461 26,985 4,176,787
Quoted securities 201,173 430,819 495,977 491,810 3,846,304 1,436,478 274,187 7,176,748
Unquoted securities 8,529 80,918 70,871 368,162 6,805,613 11,815,108 1,783,786 20,932,987
Money market instruments 131,036 1,851,719 3,420,336 51,977 5,455,068
Quoted securities 168,117 337,191 435,918 258,666 2,354,989 513,771 49,433 4,118,085
Unquoted securities 25,006 595,921 107,637 348,307 3,053,986 4,468,661 88,890 8,688,408
Overdrafts 5,211,633 5,211,633
Term loans/nancing 129,814,917 6,826,768 1,817,009 2,601,996 26,190,894 23,657,202 23 190,908,809
Bills receivable 3,648,245 2,930,204 2,062,478 2,017,579 10,658,506
Trust receipts 596,414 378,406 238,171 3,670 1,196 1,217,857
Claim on customers under acceptance credit 1,471,511 1,911,653 969,679 11,625 5,148 4,369,616
Revolving credit 13,653,059 5,772,036 3,499,686 3,573,789 5,693,818 4,285,847 36,478,235
Share margin nancing 1,735,432 87 1,735,519
Other loans 797 797
Total 164,040,998 19,311,829 9,751,728 9,855,264 51,248,094 52,078,864 2,276,165 308,562,942
237
ANNUAL REPORT 2014
(i) The interest rate risk for nancial investments available-for-sale, nancial investments held-to-maturity and loans, advances and
nancing of the Group are further analysed by classes of nancial assets as follows (Continued):
The Group
Up to 1 >13 >36 > 6 12 >15 Over 5 Non-interest

month months months months years years sensitive Total

Money market instruments 90,135 137,470 184,102 724,261 2,853,386 29,468 4,018,822
Quoted securities 57,564 145,047 187,337 298,234 3,774,810 1,701,372 484,053 6,648,417
Unquoted securities 14,858 262,879 319,417 821,721 5,534,755 11,219,769 1,493,420 19,666,819
Money market instruments 21,816 9,845 1,278,670 1,288,899 25,608 2,624,838
Quoted securities 66,025 132,292 118,563 327,163 1,605,895 323,473 29,289 2,602,700
Unquoted securities 1 14 200,001 3,046,271 2,294,300 53,368 5,593,955
Overdrafts 5,040,449 5,040,449
Term loans/nancing 112,864,270 10,029,200 1,558,112 1,264,222 23,372,481 21,801,374 1,601 170,891,260
Bills receivable 2,856,950 2,308,571 2,401,200 1,564,923 896 9,132,540
Trust receipts 556,841 868,942 441,783 4,991 2,728 1,875,285
Claim on customers under acceptance credit 1,203,078 2,167,371 905,042 374,886 4,650,377
Revolving credit 9,990,670 4,381,748 3,044,123 3,471,764 5,070,422 2,275,453 28,234,180
Share margin nancing 1,485,702 340 528 5,820 698,666 109,549 863 2,301,468
Other loans 782 782
Total 140,442,554 20,386,525 9,135,405 8,527,672 45,109,855 43,867,575 2,117,670 269,587,256
238
CIMB & YOU
The table below summarise the Companys nancial assets and nancial liabilities at their full carrying amounts, analysed by the earlier
of contractual repricing or maturity dates.
The Company
31 December 2014 Non-trading book

Financial assets
Cash and short-term funds 1,862,830 1,244 1,864,074
Term loans/nancing 2 38 40
Total nancial assets 1,862,830 2 38 15,008 478 1,878,356
Other liabilities 3,362 3,362
Other borrowings 1,000,000 1,130,000 2,164,335 10,680 4,305,015
Subordinated obligations 150,000 1,380,000 600,000 11,402 2,141,402
Total nancial liabilities 1,150,000 1,130,000 3,544,335 600,000 25,444 6,449,779
Net interest sensitivity gap 1,862,830 (1,150,000) (1,130,000) (3,544,333) (599,962) 478
Net interest sensitivity gap

Treasury related commitments and
contingencies
239
ANNUAL REPORT 2014
The table below summarise the Companys nancial assets and nancial liabilities at their full carrying amounts, analysed by the earlier
of contractual repricing or maturity dates. (Continued)
The Company
31 December 2013 Non-trading book

Financial assets
Cash and short-term funds 69,536 37 69,573
Term loans/nancing 1 25 45 71
Total nancial assets 69,536 1 25 45 45,708 3,940 119,255
Other borrowings 297,430 392,958 1,000,000 2,122,629 10,838 3,823,855
Subordinated obligations 150,000 1,980,000 11,402 2,141,402
Amount owing to subsidiaries 222 222
Total nancial liabilities 297,430 392,958 1,000,000 2,272,629 1,980,000 27,489 5,970,506
Net interest sensitivity gap 69,536 (297,430) (392,957) (1,000,000) (2,272,604) (1,979,955) 3,940
Net interest sensitivity gap

Treasury related commitments and
contingencies
240
CIMB & YOU
(b) Sensitivity of prot
The table below shows the sensitivity of the Group and the Companys banking book to movement in interest rates:
2014

+100 basis 100 basis +100 basis 100 basis
points points points points
RM000 RM000 RM000 RM000
Impact to prot (after tax) (217,573) 217,573 5,880 (5,880)
2013
Impact to prot (after tax) (167,142) 167,142 (5,076) 5,076
Sensitivity is measured using the EaR methodology. The treatments and assumptions applied are based on the contractual repricing and
remaining maturity of the products, whichever is earlier. Items with indenite repricing maturity are treated based on the earliest possible
repricing date. The actual dates may vary from the repricing prole allocated due to factors such as pre-mature withdrawals, prepayment
and others.
A 100 bps parallel rate movement is applied to the yield curve to model the potential impact on prot in the next 12 months from policy
rate change.
The projection assumes that interest rates of all maturities move by the same amount and, therefore, do not reect the potential impact
on prot of some rates changing while others remain unchanged. The projections also assume that all other variables are held constant
and are based on a constant reporting date position and that all positions run to maturity.
(c) Sensitivity of reserves
The table below shows the sensitivity of the Groups banking book to movement in interest rates:
+100 basis 100 basis +100 basis 100 basis

points points points points
2014 2014 2013 2013
RM000 RM000 RM000 RM000
Impact to revaluation reserve-nancial investments

available-for-sale (1,515,784) 1,515,784 (1,474,570) 1,474,570
A 100 bps parallel rate movement is applied to the yield curve to model the potential impact on reserves in the next 12 months from
changes in risk free rates. The impact on reserves arises from changes in valuation of nancial investments available-for-sale following
movements in risk free rates.
The projection assumes that all other variables are held constant. It also assumes a constant reporting date position and that all positions
run to maturity.
The above sensitivities of prot and reserves do not take into account the effects of hedging and do not incorporate actions that the
Group would take to mitigate the impact of this interest rate risk. In practice, the Group proactively seeks to mitigate the effect of
prospective interest movements.
241
ANNUAL REPORT 2014
55.2.3 Foreign exchange risk

The Group and Company are exposed to transactional foreign exchange exposures which are exposures on assets and liabilities denominated
in currencies other than the functional currency of the transacting entity.
The Group and the Company take minimal exposure to the effects of uctuations in the prevailing foreign currency exchange rates on its
nancial position and cash ows. The Group manage its exposure to foreign exchange currencies at each entity level.
(a) The table below summarises the nancial assets, nancial liabilities and net open position by currency of the Group and the Company.
The Group
2014
Total Grand
MYR IDR THB SGD USD AUD GBP JPY RMB HKD EUR Others non-MYR total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Financial assets
Cash and short-term funds 10,714,472 4,304,435 602,247 776,391 13,542,249 444,140 627,948 295,058 621,681 108,498 474,126 951,572 22,748,345 33,462,817
Reverse repurchase
agreements 1,576,081 49,447 106,297 950,515 1,995,938 9,997 64,846 4,196 969 3,182,205 4,758,286
Deposits and placements with
banks and other nancial
institutions 2,378,980 434,152 77,729 295 689,905 54,636 398,826 12,609 191,856 1,860,008 4,238,988
Money market instruments 7,656,934 4,823,979 243,373 1,263 13,122 5,081,737 12,738,671
Quoted securities 837,460 1,086,308 723,101 47,689 787,111 4,382 3,276 306,402 497 1,138,475 4,097,241 4,934,701
Unquoted securities 1,666,211 9,466 406,534 3,726,900 10,361 283,369 27,558 4,464,188 6,130,399
Financial investments
available-for-sale
Money market instruments 3,770,816 276,821 111,117 18,033 405,971 4,176,787
Quoted securities 121,428 4,449,590 2,605,631 99 7,055,320 7,176,748
Unquoted securities 14,805,998 37,743 4,074 1,751,273 3,806,086 81,546 353,029 45 92,538 655 6,126,989 20,932,987
held-to-maturity
Quoted securities 1,216,596 2,585,289 303,192 13,008 4,118,085 4,118,085
Unquoted securities 7,478,142 934 1,209,332 1,210,266 8,688,408
Trading derivatives 667,924 218,855 812,999 37,819 4,981,826 23,522 8,641 44,585 3,242 24,028 18,726 194,209 6,368,452 7,036,376
Hedging derivatives 23,426 1,100 1,379 35,449 67,696 5,176 4,853 3,571 3,733 122,957 146,383
Overdrafts 4,111,505 805,982 91,122 203,024 1,100,128 5,211,633
Term loans/nancing 122,442,069 20,615,582 14,619,326 12,841,613 16,395,894 232,495 2,271,592 143,443 160,759 1,186,036 68,466,740 190,908,809
Bills receivable 21,629 19,647 3,316,549 145,301 3,347,837 38,050 5,464 1,949,895 2,088 6,597 1,805,449 10,636,877 10,658,506
Trust receipts 199,007 223,808 27,064 730,900 3,561 5,882 2,217 535 22,819 2,064 1,018,850 1,217,857
Claim on customers under
acceptance credit 2,925,512 238,407 1,081 16,061 1,155,714 25,227 7,322 292 1,444,104 4,369,616
Credit card receivables 4,751,890 1,457,866 5,449 1,218,682 2,681,997 7,433,887
Revolving credit 6,604,521 17,683,714 101,099 2,016,794 9,055,499 52,422 807,031 148,122 8,097 936 29,873,714 36,478,235
Other loans 797 797 797
Other assets 3,457,931 566,148 573,368 756,393 2,382,023 454,519 9,115 885,577 2,593 1,021,005 21,855 376,505 7,049,101 10,507,032
201,687,107 52,408,351 27,307,159 28,427,550 63,972,944 1,318,208 4,007,310 1,549,693 3,618,023 1,669,331 1,876,834 4,674,085 190,829,488 392,516,595
242
CIMB & YOU
55.2.3 Foreign exchange risk (Continued)

(a) The table below summarises the nancial assets, nancial liabilities and net open position by currency of the Group and the Company
(Continued).
The Group
2014
Total Grand
Deposits from customers 159,432,196 37,547,233 19,517,889 24,907,654 35,261,241 1,084,284 1,236,920 297,084 77,845 265,535 944,507 1,496,399 122,636,591 282,068,787
Deposits and placements of
institutions 7,850,158 242,859 818,277 1,775,204 15,752,470 624,061 1,988,503 470,962 1,939,209 10,036 238,470 439,589 24,299,640 32,149,798
Repurchase agreements 2,686,485 792,289 2,257,065 3,049,354 5,735,839
Financial liabilities designated at
fair value 2,711,589 814,474 164,638 979,112 3,690,701
Derivatives nancial instruments
Trading derivatives 596,735 212,622 666,771 66,123 5,511,464 23,816 3,778 48,283 285 1,564 16,142 82,700 6,633,548 7,230,283
Hedging derivatives 155,958 118 11,529 305,134 540 10 1,760 7,462 326,553 482,511
Bills and acceptances payable 666,567 236,609 795,577 49,204 1,217,319 17 25,227 7,322 292 2,331,567 2,998,134
Other liabilities 3,222,348 1,980,330 397,129 411,524 1,156,673 479,632 38,701 895,718 644 1,016,425 28,525 380,312 6,785,613 10,007,961
Other borrowings 3,640,942 1,339,811 717,042 3,573,829 4,897 8,116 6,170 5,649,865 9,290,807
Bonds and debentures 500,121 1,651,576 1,592,604 52,231 1,445,824 288,320 2,135,372 7,165,927 7,666,047
Subordinated obligations 11,028,242 848,452 705,800 1,554,252 12,582,494
Non-cumulative guaranteed
and redeemable preference
shares 770,188 770,188
193,261,529 44,059,610 25,308,521 28,947,438 66,481,019 2,500,113 3,273,356 1,737,274 2,017,993 3,438,808 1,242,428 2,405,462 181,412,022 374,673,550
Financial guarantees 1,758,714 142,867 33,676 2,319,436 3,188,849 624 11,553 1,144 451 81,225 51,054 2,380 5,833,259 7,591,973
Credit related commitments
and contingencies 58,093,131 3,524,730 862,244 4,469,994 9,852,076 (145,928) 687,905 116,451 3,126,463 (131,224) 124,952 34,763 22,522,426 80,615,557
59,851,845 3,667,597 895,920 6,789,430 13,040,925 (145,304) 699,458 117,595 3,126,914 (49,999) 176,006 37,143 28,355,685 88,207,530
243
ANNUAL REPORT 2014

(Continued).
The Group
2013
Total Grand
Financial assets
Cash and short-term funds 15,916,848 4,102,601 610,489 602,169 9,163,610 373,993 468,835 167,957 1,027,844 131,955 246,896 865,685 17,762,034 33,678,882
Reverse repurchase
agreements 4,673,725 67,160 2,671,693 520,406 282,203 19,963 13,316 3,129 8,909 3,586,779 8,260,504
Deposits and placements with
institutions 1,775,384 529,026 78,366 314 1,343,143 9,938 27,109 25,739 2,013,635 3,789,019
Money market instruments 6,839,300 4,032,527 214,820 4,247,347 11,086,647
Quoted securities 794,076 1,455,814 1,038,598 60,711 437,706 149,297 141,105 40,872 3,324,103 4,118,179
Unquoted securities 4,822,800 9,393 624,278 2,477,072 3,371 171,485 33,804 54,087 2,164 3,375,654 8,198,454
available-for-sale
Quoted securities 369,617 3,573,503 2,691,216 27 14,054 6,278,800 6,648,417
Unquoted securities 13,647,031 36,470 29,496 1,186,778 4,307,633 55,860 402,868 42 66 575 6,019,788 19,666,819
held-to-maturity
Quoted securities 757,546 1,628,612 208,464 8,078 2,602,700 2,602,700
Unquoted securities 4,342,338 881 1,250,733 1,251,614 5,593,952
Trading derivatives 1,192,337 274,408 240,962 91,722 2,737,738 28,345 (1,080) 83,421 21,159 477 76,634 71,540 3,625,326 4,817,663
Hedging derivatives 45,158 1,684 1,079 17,823 136,337 1,079 1,794 1,079 2,548 1,762 (7,553) 157,632 202,790
Overdrafts 4,057,515 744,222 93,274 145,436 982,932 5,040,447
Term loans/nancing 115,092,781 18,679,017 11,592,750 10,628,779 12,679,769 371,320 1,663,083 258,866 87,099 655,944 56,616,627 171,709,408
Bills receivable 85,201 2,609 2,711,540 115,809 2,234,026 2,327 7,781 3,951,034 22,214 9,047,340 9,132,541
Trust receipts 274,005 865,278 75,969 609,616 17,902 11,233 3,845 1,949 14,766 721 1,601,279 1,875,284
Claim on customers under
acceptance credit 3,193,259 192,065 932 6,054 1,232,609 11,105 13,200 1,152 1,457,117 4,650,376
Credit card receivables 4,245,765 1,071,480 988,117 2,059,597 6,305,362
Revolving credit 5,711,954 15,067,662 81,549 1,225,890 5,655,605 17,633 377,707 51,594 44,586 22,522,226 28,234,180
Other loans 782 782 782
Other assets 3,381,468 288,607 606,594 176,557 1,342,211 213,609 6,384 25,540 4,802 210,287 33,625 147,440 3,055,656 6,437,124
196,664,950 46,133,550 25,744,694 22,804,793 45,778,439 1,244,408 2,806,947 618,576 5,472,465 578,591 1,163,780 1,165,322 153,511,565 350,176,515
244
CIMB & YOU

(Continued).
The Group
2013
Total Grand
Deposits from customers 158,915,840 33,189,464 15,220,268 21,700,685 29,194,987 1,510,803 1,182,617 281,896 72,092 182,671 812,450 740,529 104,088,462 263,004,302
Deposits and placements of
institutions 6,591,451 189,696 289,109 843,653 9,871,055 477,947 577,357 640,607 8,177 1,082,286 156,507 14,136,394 20,727,845
Repurchase agreements 1,010,453 3,646,636 776,545 417,753 71,401 4,912,335 5,922,788
Financial liabilities designated at
fair value 1,979,716 152,454 152,454 2,132,170
Derivatives nancial instruments
Trading derivatives 1,749,819 284,529 223,301 211,506 2,826,312 154,415 1,780 26,612 21,438 38,306 82,424 78,642 3,949,265 5,699,084
Hedging derivatives 145,698 1,067 288 11,558 124,680 2,855 20,556 315 3,507 164,826 310,524
Bills and acceptances payable 1,828,259 190,260 1,260,598 6,054 1,340,697 59,876 17 11,105 15,200 1,153 2,884,960 4,713,219
Other liabilities 4,146,647 1,479,183 520,283 (163,430) 896,700 242,289 15,547 5,598 1,389 441,754 12,410 142,116 3,593,839 7,740,486
Other borrowings 3,215,941 1,452,455 64,961 644,924 2,384,040 1,625 327 8,454 4,556,786 7,772,727
Bonds and debentures 500,080 1,623,186 2,630,547 51,121 1,354,902 1,330,429 6,990,185 7,490,265
Subordinated obligations 10,589,281 807,783 669,636 1,477,419 12,066,700
Non-cumulative guaranteed
and redeemable preference
shares 847,447 847,447
191,520,632 39,217,623 24,525,627 24,235,070 48,411,126 2,445,330 1,781,798 966,145 115,475 2,010,106 2,008,277 1,190,348 146,906,925 338,427,557
Financial guarantees 1,278,210 201,412 260,312 1,864,220 2,107,497 101,640 13,952 50,487 76,074 3,698 147,399 4,826,691 6,104,901
Credit related commitments
and contingencies 48,959,035 3,153,631 913,258 3,897,300 5,174,493 3,265 786,222 311,681 12,710 70,598 22,475 14,345,633 63,304,668
50,237,245 3,355,043 1,173,570 5,761,520 7,281,990 3,265 887,862 325,633 50,487 88,784 74,296 169,874 19,172,324 69,409,569
245
ANNUAL REPORT 2014
(Continued).
The Company
2014
Total Grand
MYR IDR USD non-MYR total
RM000 RM000 RM000 RM000 RM000
Financial assets
Cash and short-term funds 1,863,487 3 584 587 1,864,074
1,877,769 3 584 587 1,878,356
Other borrowings 3,636,916 668,099 668,099 4,305,015
Subordinated obligations 2,141,402 2,141,402
5,782,379 668,099 668,099 6,450,478
2013
Financial assets
Cash and short-term funds 69,023 3 547 550 69,573
118,705 3 547 550 119,255
Other borrowings 3,201,225 622,630 622,630 3,823,855
Subordinated obligations 2,141,402 2,141,402
5,347,654 622,630 622,630 5,970,284
246
CIMB & YOU
(b) Sensitivity of prot and reserves
The table below shows the sensitivity of the Group and the Companys prot and reserves to movement in foreign exchange rates:

1% 1% 1% 1%
appreciation depreciation appreciation depreciation
RM000 RM000 RM000 RM000
2014
Impact to prot (after tax) 4,529 (4,529) (5,006) 5,006
Impact to reserves (44,862) 44,862
2013
Impact to prot (after tax) 3,159 (3,159) (4,691) 4,691
Impact to reserves (26,759) 26,759
The impact on prot arises from transactional exposures while the impact on reserves arises from net investment hedge from parallel
shifts in foreign exchange rates.
The projection assumes that foreign exchange rates move by the same amount and, therefore, do not reect the potential impact on
prot and reserves of some rates changing while others remain unchanged. The projections also assume that all other variables are held
constant and are based on a constant reporting date position and that all positions run to maturity.
247
ANNUAL REPORT 2014
55.3 Liquidity risk
Liquidity risk is dened as the current and prospective risk to earnings, shareholders fund or the reputation arising from the Groups inability to
efciently meet its present and future (both anticipated and unanticipated) funding needs or regulatory obligations when they come due, which may
adversely affect its daily operations and incur unacceptable losses. Liquidity risk primarily arises from mismatches in the timing of cash ows.
The objective of the Groups liquidity risk management is to ensure that the Group can meet its cash obligations in a timely and cost-effective manner.
To this end, the Groups liquidity risk management policy is to maintain high quality and well diversied portfolios of liquid assets and sources of funds
under both normal business and stress conditions. Due to its large delivery network and marketing focus, the Group is able to maintain a diversied
core deposit base comprising savings, demand and xed deposits. This provides the Group a large stable funding base.
Liquidity risk management at CIMB is managed on Group basis. The day-to-day responsibility for liquidity risk management and control is delegated
to the respective Country Asset Liability Management Committee (Country ALCO) which subsequently report to Group ALCO (GALCO). GALCO
meets at least once a month to discuss the liquidity risk and funding prole of the Group and each individual entity under the Group. The Asset-Liability
Management function, which is responsible for the independent monitoring of the Group liquidity risk prole, works closely with Treasury and Markets
in its surveillance on market conditions. Business units are responsible for establishing and maintaining strong business relations with their respective
depositors and key providers of funds. Overseas branches and subsidiaries should seek to be self-sufcient in funding at all times. Group Treasury
only acts as a global provider of funds on a need-to or contingency basis. Each entity has to prudently manage its liquidity position to meet its daily
operating needs. To take account of the differences in market and regulatory environments, each entity measures and forecasts its respective cash
ows arising from the maturity proles of assets, liabilities, off balance sheet commitments and derivatives over a variety of time horizons under normal
business and stress conditions on a regular basis.
Liquidity risk undertaken by the Group is governed by a set of established liquidity risk appetite and thresholds. Management action triggers (MATs)
have been established to alert management to potential and emerging liquidity pressures. The Group Liquidity Risk Management Framework is
subject to regular review; assumptions and the thresholds levels are regularly reviewed in response to regulatory changes and changing business
needs and market conditions. Liquidity positions are monitored on a daily basis and complied with internal risk thresholds and regulatory requirements
for liquidity risk.
The Groups contingency funding plan is in place to alert and to enable the management to act effectively and efciently during a liquidity crisis and
under adverse market conditions. The plan consists of two key components: an early warning system and a funding crisis management team. The
early warning system is designed to alert the Groups management whenever the Groups liquidity position may be at risk. It provides the Group with
the analytical framework to detect a likely liquidity problem and to evaluate the Groups funding needs and strategies in advance of a liquidity crisis.
The early warning system is made up of a set of indicators (monitored against pre-determined thresholds) that can reliably signal the nancial strength
and stability of the Group.
Consolidated stress test, including liquidity stress test, is performed on a semi-annual basis to identity vulnerable areas in its portfolio, gauge the
nancial impact and enable management to take pre-emptive actions. Two scenarios, namely bank specic crisis and systemic crisis are modelled.
The assumptions used, including run-off rates on deposits, draw down rates on undrawn commitments, and hair cuts for marketable securities, are
documented and the test results are submitted to the Country and Group ALCOs, the Group Risk Committee, and the Board Risk Committees/
Board of Directors of the Group. The test results to date have indicated that the Group has sufcient liquidity capacity to meet the liquidity requirements
under various stress test conditions. In addition, the Group is measuring, monitoring and managing its liquidity positions to comply with the regulatory
Basel III Liquidity Coverage Ratio (LCR), which is expected to take effect in mid-2015 for Malaysia.
248
CIMB & YOU
55.3 Liquidity risk (Continued)
55.3.1 Contractual maturity of financial assets and liabilities
The table below analyses assets and liabilities of the Group and the Company based on the remaining period at the end of the reporting
period to the contractual maturity date in accordance with the requirement of Bank Negara Malaysia Guidelines:
The Group Up to 1 >1-3 >3-6 > 6 - 12 >1-5 Over 5 No-specific

31 December 2014 month months months months years years maturity Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
ASSETS
Reverse repurchase agreements 2,903,707 1,582,982 26,842 244,755 4,758,286
Deposits and placements with banks and other financial
institutions 2,514,799 1,491,346 190,995 26,723 15,125 4,238,988
Financial assets held for trading 3,737,341 6,334,159 2,726,021 919,954 3,508,916 3,332,845 3,244,535 23,803,771
Financial investments available-for-sale 402,940 578,071 623,461 911,390 12,130,386 15,760,208 1,880,066 32,286,522
Financial investments held-to-maturity 337,142 940,703 547,108 858,680 7,306,970 8,270,958 18,261,561
Derivative financial instruments 571,648 561,356 607,511 1,002,258 3,004,463 1,435,523 7,182,759
Loans, advances and financing 34,442,968 13,913,804 11,255,225 10,940,006 57,152,212 130,310,644 258,014,859
Other assets 9,769,677 23,861 145,059 26,203 1,180,317 1,276,737 89,357 12,511,211
Taxation recoverable 45,483 45,483
Statutory deposits with central banks 6,841,165 6,841,165
Investment in associates 844,709 844,709
Investment in joint ventures 241,680 241,680
Property, plant and equipment 1,466,634 1,466,634
Investment properties 4,000 4,000
Prepaid lease payment 136,419 136,419
Goodwill 7,911,160 7,911,160
Intangible assets 1,850,419 1,850,419
Non-current assets held for sale 21,326 21,326
Total assets 88,188,522 25,426,282 16,122,222 14,929,969 84,298,389 160,386,915 24,804,057 414,156,356
249
ANNUAL REPORT 2014
55.3.1 Contractual maturity of financial assets and liabilities (Continued)
period to the contractual maturity date in accordance with the requirement of Bank Negara Malaysia Guidelines (Continued):

LIABILITIES
Deposits from customers 192,901,932 34,521,037 22,106,570 21,537,522 8,177,224 2,824,502 282,068,787
Deposits and placements of banks and other financial
institutions 13,112,076 9,010,592 7,105,554 2,000,109 699,179 222,288 32,149,798
Repurchase agreements 505,317 2,528,233 1,788,486 121,515 792,288 5,735,839
Derivatives financial instruments 723,758 538,510 778,333 1,168,267 3,437,349 1,066,577 7,712,794
Bills and acceptances payable 1,548,612 864,496 508,678 8,332 68,016 2,998,134
Other liabilities 9,640,265 200,058 2,230 101,562 20,524 211,179 640,980 10,816,798
Deferred tax liabilities 51,569 51,569
Financial liabilities designated at fair value 2,445 1,701 193 2,388,423 1,297,939 3,690,701
Bonds and debentures 517,067 87,111 1,140,677 394,917 5,526,276 7,666,048
Other borrowings 929,230 431,845 1,062,760 1,609,522 4,994,955 262,495 9,290,807
Subordinated obligations 150,962 163,072 1,005,404 5,664,369 5,598,687 12,582,494
Non cumulative guaranteed and redeemable preference
shares 7,587 725,935 36,666 770,188
Total liabilities 220,270,527 48,183,583 34,656,553 28,673,085 31,768,603 11,520,333 692,549 375,765,233
Net liquidity gap (132,082,005) (22,757,301) (18,534,331) (13,743,116) 52,529,786 148,866,582 24,111,508 38,391,123
250
CIMB & YOU

ASSETS
Reverse repurchase agreements 5,166,460 3,082,792 11,252 8,260,504
Deposits and placements with banks and other
financial institutions 1,453,865 2,162,113 123,004 34,960 15,077 3,789,019
Financial assets held for trading 4,583,776 5,678,004 1,349,090 984,583 6,076,378 2,503,677 2,227,772 23,403,280
Financial investments available-for-sale 311,697 498,292 646,422 1,314,571 10,076,790 15,793,563 1,692,723 30,334,058
Financial investments held-to-maturity 140,642 141,305 142,451 543,361 5,882,003 3,971,731 10,821,493
Derivative financial instruments 1,090,044 296,515 222,148 228,297 2,015,218 1,168,231 5,020,453
Loans, advances and financing 25,653,758 13,774,243 9,333,071 10,529,186 53,529,464 115,611,983 228,431,705
Other assets 6,570,562 13,671 14,993 8,700 145,572 1,048,423 188,434 7,990,355
Statutory deposits with central banks 6,361,648 6,361,648
Investment in joint ventures 309,535 309,535
Property, plant and equipment 1,546,783 1,546,783
Investment properties 4,000 4,000
Prepaid lease payment 147,901 147,901
Goodwill 7,877,463 7,877,463
Intangible assets 1,760,225 1,760,225
Total assets 78,714,264 25,646,935 11,842,431 13,643,658 77,740,502 140,097,608 23,227,399 370,912,797
251
ANNUAL REPORT 2014

LIABILITIES
Deposits and placements of banks and other
financial institutions 9,158,054 6,765,404 2,374,714 1,409,039 393,313 627,321 20,727,845
Repurchase agreements 2,896,591 2,201,858 47,794 776,545 5,922,788
Derivatives financial instruments 1,240,439 524,958 443,234 712,453 2,284,288 804,236 6,009,608
Bills and acceptances payable 2,459,315 1,553,198 532,562 10,349 74,843 82,952 4,713,219
Financial liabilities designated at fair value 1,215,280 916,890 2,132,170
Bonds and debentures 1,303,618 478,771 352,900 48,426 5,306,550 7,490,265
Other borrowings 845,632 1,456,003 599,330 1,358,803 2,494,205 1,018,754 7,772,727
Subordinated obligations 146,844 83 2,089 5,121,393 6,796,291 12,066,700
Non cumulative guaranteed and redeemable
preference shares 7,111 742,160 98,176 847,447
Total liabilities 215,409,220 44,745,427 23,497,807 20,585,018 22,080,996 12,722,728 643,041 339,684,237
Net liquidity gap (136,694,956) (19,098,492) (11,655,376) (6,941,360) 55,659,506 127,374,880 22,584,358 31,228,560
252
CIMB & YOU
The Company Up to 1 >1-3 >3-6 > 6 - 12 >1-5 Over 5 No-specific

ASSETS
Derivative financial instruments 478 478
Loans, advances and financing 2 38 40
Investment in subsidiaries 24,214,072 24,214,072
Investment properties 471 471
Total assets 1,899,831 480 38 24,245,192 26,145,541
LIABILITIES
Deferred tax liabilities 448 448
Other borrowings 4,937 1,000,000 1,131,198 2,168,880 4,305,015
Subordinated obligations 160,850 552 1,380,000 600,000 2,141,402
Total liabilities 8,998 1,160,850 1,131,750 3,548,880 600,000 448 6,450,926
Net liquidity gap 1,890,833 (1,160,850) (1,131,750) (3,548,400) (599,962) 24,244,744 19,694,615
253
ANNUAL REPORT 2014

ASSETS
Derivative financial instruments 3,940 3,940
Loans, advances and financing 1 25 45 71
Other assets 34,295 10,266 711 45,272
Investment in subsidiaries 20,719,439 20,719,439
Amount owing from subsidiaries 788 788
Investment properties 490 490
Non-current assets/disposal groups held for sale 7,862 7,862
Total assets 142,292 1 14,231 45 20,739,800 20,896,369
LIABILITIES
Other borrowings 10,838 297,429 392,958 1,000,000 2,122,630 3,823,855
Subordinated obligations 11,402 150,000 1,980,000 2,141,402
Total liabilities 27,267 297,429 392,958 1,000,000 2,272,630 1,980,000 1,998 5,972,282
Net liquidity gap 115,025 (297,429) (392,957) (1,000,000) (2,258,399) (1,979,955) 20,737,802 14,924,087
254
CIMB & YOU
55.3.2 Contractual maturity of financial liabilities on an undiscounted basis
Non-derivative financial liabilities
The tables below present the cash flows payable by the Group and the Company under non-derivative financial liabilities by remaining
contractual maturities at the end of the reporting period. The amounts disclosed in the table are the contractual undiscounted cash
flow.

2014 month months months months years years maturity Total

Deposits and placements of banks and other financial
institutions 13,169,469 9,032,718 7,132,465 2,019,340 699,203 222,288 32,275,483
Repurchase agreements 504,812 2,528,738 1,788,486 121,515 792,288 5,735,839
Bills and acceptances payable 1,548,813 864,708 509,328 8,979 71,312 3,003,140
Financial liabilities designated at fair value 86,311 3,459 2,459 8,923 2,690,559 2,374,035 5,165,746
Other borrowings 935,562 444,233 1,116,023 1,675,042 5,150,667 262,818 9,584,345
Bonds and debentures 549,099 121,040 1,188,461 376,005 5,973,046 8,207,651
Subordinated obligations 164,303 86,436 419,501 1,375,077 8,596,003 6,496,185 17,137,505
shares 7,587 725,935 36,667 770,189
Financial guarantees 2,551,213 2,116 1,896,117 208,508 7,408 4,665,362
Credit related commitments and contingencies 40,857,115 1,121,414 2,038,313 9,134,574 2,208,873 21,427,007 76,787,296
263,419,639 49,187,611 36,612,196 39,489,401 35,188,269 34,213,478 9,779 458,120,373


Deposits and placements of banks and other
financial institutions 9,165,741 6,803,305 2,428,271 1,446,910 394,279 627,353 20,865,859
Repurchase agreements 2,901,020 2,204,646 50,119 3,447 795,890 5,955,122
Bills and acceptances payable 2,459,804 1,553,198 532,562 10,349 74,843 106,570 4,737,326
Financial liabilities designated at fair value 13,132 20,071 26,502 57,078 1,440,667 1,970,359 3,527,809
Other borrowings 843,612 1,455,817 600,246 1,389,841 2,565,194 1,051,926 7,906,636
Bonds and debentures 1,307,166 496,119 389,711 122,315 5,806,206 8,121,517
Subordinated obligations 148,274 75,108 263,907 397,470 7,657,493 7,866,417 16,408,669
Non-cumulative guaranteed and redeemable
preference shares 7,111 30,020 712,140 100,000 849,271
Financial guarantees 2,575,497 700,250 360,578 265,736 117,281 2,085,559 6,104,901
Credit related commitments and contingencies 52,459,721 761,258 512,122 2,717,727 2,583,780 4,270,060 63,304,668
268,880,138 46,070,330 24,478,605 23,626,514 26,118,409 18,462,923 2,146,166 409,783,085
255
ANNUAL REPORT 2014
55.3.2 Contractual maturity of financial liabilities on an undiscounted basis (Continued)
Non-derivative financial liabilities (Continued)
The tables below present the cash flows payable by the Group and the Company under non-derivative financial liabilities by remaining
contractual maturities at the end of the reporting period. The amounts disclosed in the table are the contractual undiscounted cash
flow (Continued).

month months months months years years maturity Total
2014
Other borrowings 8,123 12,374 1,053,243 1,192,154 2,259,740 4,525,634
Subordinated obligations 11,402 211,600 50,370 1,731,348 762,003 2,766,723
22,887 12,374 1,264,843 1,242,524 3,991,088 762,003 7,295,719
2013
Other borrowings 8,577 297,429 392,959 1,028,471 2,187,045 3,914,481
Subordinated obligations 11,402 54,345 92,445 713,310 2,156,940 3,028,442
24,998 297,429 447,304 1,120,916 2,900,355 2,156,940 6,947,942
256
CIMB & YOU
Derivative financial liabilities
All trading derivatives, whether net or gross settled are analysed based on the expected maturity as the contractual maturity is not
considered to be essential to the understanding of the timing of the cash flows. The amounts disclosed in respect of such contracts
are the fair values.
Hedging derivatives are disclosed based on remaining contractual maturities as the contractual maturities of such contracts are essential
for an understanding of the timing of the cash flows. The amounts disclosed in respect of such contracts are the contractual
undiscounted cash flows.
The table below analyses the Group's trading derivative financial liabilities and hedging derivative financial liabilities that will be settled
on a net basis.
The Group Up to 1 > 1 - 3 > 3 - 6 > 6 - 12 > 1 - 5 Over 5

2014 month months months months years years Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Trading derivatives
Foreign exchange derivatives (175,760) (175,760)
Interest rate derivatives (1,742,202) (1,742,202)
Equity related derivatives (999,082) (999,082)
Commodity related derivatives (1,037,754) (1,037,754)
Credit related contracts (76,765) (76,765)
Hedging derivatives
Foreign exchange derivatives (53) (53)
Interest rate derivatives (14,193) (8,221) (27,143) (59,061) (205,698) (13,690) (328,006)
(4,045,756) (8,274) (27,143) (59,061) (205,698) (13,690) (4,359,622)
The Group Up to 1 > 1 - 3 > 3 - 6 > 6 - 12 > 1 - 5 Over 5

2013 month months months months years years Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Trading derivatives
Foreign exchange derivatives (190,958) (190,958)
Interest rate derivatives (1,549,137) (1,549,137)
Equity related derivatives (1,574,988) (1,574,988)
Commodity related derivatives (154,057) (154,057)
Credit related contracts (89,176) (89,176)
Hedging derivatives
Interest rate derivatives (12,416) (9,070) (6,358) (37,561) (204,263) (17,968) (287,636)
(3,570,732) (9,070) (6,358) (37,561) (204,263) (17,968) (3,845,952)
257
ANNUAL REPORT 2014
Derivative financial liabilities (Continued)
The Groups and the Companys derivatives that will be settled on a gross basis include foreign exchange derivatives, such as currency
forward, currency swap, currency options and cross currency interest rate swaps.
The table below analyses the Groups derivative financial liabilities that will be settled on a gross basis into relevant maturity groupings
by expected maturities at the end of the reporting period. The amounts disclosed in the table are the contractual undiscounted cash
flow.
The Group Up to 1 >13 >36 > 6 12 >15 Over 5 No-specific


Trading derivatives
Foreign exchange derivatives (3,198,720) (3,198,720)
Hedging derivatives
Outflow (1,197,943) (579,818) (1,946,362) (246,840) (2,063,075) (6,034,038)
Inflow 1,194,077 546,587 1,842,330 254,134 2,003,496 5,840,624
(3,202,586) (33,231) (104,032) 7,294 (59,579) (3,392,134)
The Group Up to 1 >13 >36 > 6 12 >15 Over 5 No-specific


Trading derivatives
Foreign exchange derivatives (2,140,768) (2,140,768)
Hedging derivatives
Outflow (587,240) (757,217) (669,412) (88,405) (1,376,815) (3,479,089)
Inflow 573,112 741,579 638,067 87,905 1,358,387 3,399,050
(2,154,896) (15,638) (31,345) (500) (18,428) (2,220,807)
258
CIMB & YOU

55.4 Fair value estimation
Fair value is 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.
55.4.1 Determination of fair value and fair value hierarchy

Valuation Model Review and Approval
Mark-to-Model process shall be carried out by Market Risk Management within Group Risk. Group Risk Management Quantitative
Analysts are responsible for independent evaluation and validation of the Groups financial models used for valuation. The validation
includes an assessment of the stability of models in terms of performance over a variety of conditions and back-testing of the model
outputs;
Valuation methodologies for the purpose of determining Mark-to-Market prices will be verified by Group Risk Management
Quantitative Analysts before submitting to Group Risk Committee for approval;
Market Risk Management is mandated to perform mark-to-market, mark-to-model and rate reasonableness verification;
Any material uncertainty arising from the modeling and market inputs shall be disclosed to the Group Risk Committee;
Market rate sources and model inputs for the purpose of Mark-to-Model must be verified by Group Risk Management Quantitative
Analysts and approved by Chief Risk Officer or/and Group Risk Committee;
Group Risk Management Quantitative Analysts are the guardian of the financial models and valuation methodology. The Groups
policy is to recognise transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in
circumstances that caused the transfer;
Model risk and unobservable parameter reserve must be considered to provide for the uncertainty of the model assumptions;
Independent price verification process shall be carried out by Market Risk Management to ensure that financial assets/liabilities are
recorded at fair value.
The fair value hierarchy has the following levels:

Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 Inputs to the valuation methodology include:
Quoted prices for similar assets and liabilities in active markets; or
Quoted prices for identical or similar assets and liabilities in non-active markets; or
Inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial
instrument.
Level 3 One or more inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Assets/liabilities are classified as Level 1 when the valuation is based on quoted prices for identical assets or liabilities in active markets.
Assets/liabilities are regarded as being quoted in an active market if the prices are readily available from a published and reliable source
and those prices represent actual and regularly occurring market transactions on an arms length basis.
When fair value is determined using quoted prices of similar assets/liabilities in active markets or quoted prices of identical or similar assets
and liabilities in non-active markets, such assets/liabilities are classified as Level 2. In cases where quoted prices are generally not available,
the Group determines fair value based upon valuation techniques that use market parameters as inputs. Most valuation techniques employ
observable market data, including but not limited to yield curves, equity prices, volatilities and foreign exchange rates.
Assets/liabilities are classified as Level 3 if their valuation incorporates significant inputs that are not based on observable market data.
Such inputs are determined based on observable inputs of a similar nature, historical observations or other analytical techniques.
If prices or quotes are not available for an instrument or a similar instrument, fair value will be established by using valuation techniques
or Mark-to-Model. Judgment may be required to assess the need for valuation adjustments to appropriately reflect unobservable
parameters. The valuation models shall also consider relevant transaction data such as maturity. The inputs are then benchmarked and
extrapolated to derive the fair value.
259
ANNUAL REPORT 2014
55.4 Fair value estimation (Continued)
55.4.1 Determination of fair value and fair value hierarchy (Continued)
The following table represents financial assets and liabilities measured at fair value and classified by level with the following fair value
hierarchy:
Fair Value Fair Value
Quoted Significant Quoted Significant

market Observable unobservable market Observable unobservable
Carrying prices inputs inputs Carrying prices inputs inputs
amount (Level 1) (Level 2) (Level 3) Total amount (Level 1) (Level 2) (Level 3) Total
2014
Recurring fair value measurements
Financial assets
Quoted securities 4,934,701 3,727,154 1,207,547 4,934,701
Unquoted securities 6,130,399 5,997,718 132,681 6,130,399
Quoted securities 7,176,748 272,102 6,904,646 7,176,748
Unquoted securities 20,932,987 19,400,519 1,532,468 20,932,987
Derivative financial instruments
Trading derivatives 7,036,376 11,023 6,958,679 66,673 7,036,375 478 478 478
Hedging derivatives 146,383 146,383 146,383
Total 63,273,052 4,010,279 57,530,950 1,731,822 63,273,051 478 478 478

Trading derivatives 7,230,284 73,002 7,100,420 56,862 7,230,284
Financial liabilities designated at fair value 3,690,701 3,329,966 360,736 3,690,702
Total 11,403,495 73,002 10,912,896 417,598 11,403,496
260
CIMB & YOU
The following table represents financial assets and liabilities measured at fair value and classified by level with the following fair value
hierarchy (Continued):

2013
Financial assets
Quoted securities 4,118,179 2,155,444 1,962,735 4,118,179
Unquoted securities 8,198,454 8,125,406 73,048 8,198,454
Quoted securities 6,648,417 456,056 6,192,361 6,648,417
Unquoted securities 19,666,819 18,387,885 1,278,934 19,666,819
Trading derivatives 4,832,252 12,418 4,770,159 49,675 4,832,252 3,940 3,940 3,940
Total 58,757,791 2,623,918 54,732,216 1,401,657 58,757,791 3,940 3,940 3,940

Trading derivatives 5,741,386 2,314 4,795,921 943,151 5,741,386
Financial liabilities designated at fair value 2,132,168 2,132,168 2,132,168
Total 8,141,776 2,314 7,196,311 943,151 8,141,776
261
ANNUAL REPORT 2014
55.4 Fair value estimation (Continued)w
The following represents the changes in Level 3 instruments for the financial year ended 31 December 2014 and 31 December 2013
for the Group:
The Group Financial Assets Financial Liabilities

2014
Financial Financial
Financial investments Derivative liabilities Derivative
assets held available- financial designated financial
for trading for-sale instruments Total at fair value instruments Total
Unquoted Unquoted Trading Trading

securities securities derivatives derivatives
RM000 RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 73,048 1,278,934 49,675 1,401,657 (943,151) (943,151)

Total gains/(losses) recognised in
statement of income 2,567 (3,044) 13,149 12,672 60,733 280,894 341,627
Total gains recognised in other
comprehensive income 68,299 68,299
Purchases 49,083 235,190 17,314 301,587 (1,224) (1,224)
New issuances 18 18 (435,872) (435,872)
Sales (21,555) (21,555)
Settlements (25,664) (13,465) (39,129) 14,403 606,619 621,022
Transfers out of Level 3 to Level 1 (856) (856)
Redemption (1,128) (1,128)
Disposal of subsidiaries (1,192) (1,192)
Exchange fluctuation 7,983 3,465 11,448
At 31 December 132,681 1,532,467 66,673 1,731,821 (360,736) (56,862) (417,598)
Total gains/(losses) recognised in statement

of income for financial year ended
31 December under:
net non-interest income 2,567 (3,044) 13,149 12,672 73,274 280,894 354,168
interest expense (12,541) (12,541)
Total gains recognised in other

comprehensive income for financial year
ended 31 December under revaluation
reserves 68,299 68,299
Change in unrealised gains/(losses)

recognised in profit or loss relating to
assets held on 31 December under net
non-interest income 2,567 (3,082) 14,778 14,263 73,274 91,097 164,371
During the year, the transfer out of Level 3 of RM856,000 to Level 1 was due to the conversion of convertible notes to quoted shares
in active markets.
262
CIMB & YOU
The following represents the changes in Level 3 instruments for the financial year ended 31 December 2014 and 31 December 2013
for the Group (Continued):
The Group Financial Assets Financial Liabilities

2013
Financial
assets held available-
for trading for-sale Derivative Derivative
Unquoted Unquoted financial financial
securities securities instruments Total instruments Total
Unquoted Unquoted Trading Trading

securities securities derivatives derivatives
RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 66,313 1,175,188 1,241,501

Total gains/(losses) recognised in
statement of income 2,387 (41,647) 251 (39,009) (195) (195)
Total gains recognised in other comprehensive income 74,075 74,075
Purchases 77,566 49,424 126,990 (943,051) (943,051)
Sales (19,966) (19,966)
Settlements (4,270) (4,270) 95 95
Transfers out of Level 3 to Level 1 (5,780) (5,780)
Exchange fluctuation 4,348 23,768 28,116
At 31 December 73,048 1,278,934 49,675 1,401,657 (943,151) (943,151)
Total gains/(losses) recognised in statement of income for

financial year ended 31 December under net non-interest
income 2,387 (41,647) 251 (39,009) (195) 195
Total gains recognised in other comprehensive income for

financial year ended 31 December under revaluation
reserves 74,075 74,075
Change in unrealised gains/(losses) recognised in profit or

loss relating to assets held on 31 December under net
non-interest income 2,387 251 2,637 (195) 195
During 2013, the transfer out of Level 3 of RM5,780,307 to Level 1 was due to the conversion of convertible notes to quoted shares
in active markets.
263
ANNUAL REPORT 2014
55.4.2 Financial instruments not measured at fair value but for which fair value is disclosed
The following table analyses within the fair value hierarchy the Groups and the Companys financial assets and liabilities not measured
at fair value at 31 December 2014 and 31 December 2013, but for which fair value is disclosed:


2014
Financial assets
Cash and short-term
funds 33,462,817 26,651,421 6,811,396 33,462,817 1,864,074 1,864,074 1,864,074
Reverse repurchase
agreements 4,758,286 4,758,286 4,758,286
Deposits and placement
with banks and other
financial institutions 4,238,988 4,238,904 4,238,904
held-to-maturity 18,261,560 18,176,868 18,176,868
Loans, advances and
financing 258,014,857 254,779,275 254,779,275 40 40 40
Other assets 12,511,214 12,505,728 12,505,728 13,762 13,762 13,762
Total 331,247,722 26,651,421 301,270,457 327,921,878 1,877,876 1,864,074 13,802 1,877,876
Deposits from customers 282,068,787 281,293,605 281,293,605
Deposits and placements
of banks and other
Repurchase agreements 5,735,839 5,735,839 5,735,839
Bills and acceptances
payable 2,998,134 3,001,418 3,001,418
Other liabilities 10,816,798 10,816,798 10,816,798 4,062 4,062 4,062
Bonds and debentures 7,666,048 7,768,980 7,768,980
Other borrowings 9,290,807 9,095,239 9,095,239 4,305,015 4,303,420 4,303,420
Subordinated obligations 12,582,494 12,968,607 12,968,607 2,141,402 2,325,066 2,325,066
Non-cumulative
guaranteed and
redeemable preference
shares 770,188 770,189 770,189
Total 364,078,893 363,427,573 363,427,573 6,450,479 6,632,548 6,632,548
264
CIMB & YOU
55.4.2 Financial instruments not measured at fair value but for which fair value is disclosed (Continued)
The following table analyses within the fair value hierarchy the Groups and the Companys financial assets and liabilities not measured
at fair value at 31 December 2014 and 31 December 2013, but for which fair value is disclosed (Continued):


2013
Financial assets
Cash and short-term
funds 29,697,267 29,697,267 29,697,267 69,573 69,573 69,573
Reverse repurchase
agreements 8,260,504 8,260,504 8,260,504
Deposits and placement
with banks and other
held-to-maturity 10,821,493 10,780,194 10,780,194
Loans, advances and
financing 228,431,705 223,059,974 223,059,974 71 67 67
Other assets 6,437,126 6,441,163 6,441,163 44,729 44,729 44,729
Amount owing by
subsidiaries 788 788 788
Total 287,437,114 29,697,267 252,330,605 282,027,872 115,161 69,573 45,584 115,157
Deposits from customers 263,004,302 262,937,122 262,937,122
Deposits and placements
of banks and other
Repurchase agreements 5,922,788 5,922,788 5,922,788
Bills and acceptances
payable 4,713,219 4,713,219 4,713,219
Other liabilities 7,740,495 7,740,495 7,740,495 5,027 5,027 5,027
Bonds and debentures 7,490,265 7,327,424 7,327,424
Other borrowings 7,772,727 7,658,998 7,658,998 3,823,855 3,826,230 3,826,230
Subordinated obligations 12,066,700 12,033,241 12,033,241 2,141,402 2,359,529 2,359,529
Non-cumulative
guaranteed and
redeemable preference
shares 847,447 847,447 847,447
Amount owing to
subsidiaries 222 222 222
Total 330,285,789 329,839,702 329,839,702 5,970,506 6,191,008 6,191,008
265
ANNUAL REPORT 2014
The fair values are based on the following methodologies and assumptions:
Short-term funds and placements with financial institutions
For short-term funds, placements with financial institutions and reverse repurchase agreements with maturities of less than six months,
the carrying value is a reasonable estimate of fair value. For deposits and placements with maturities of six months and above, the
estimated fair value is based on discounted cash flows using prevailing money market interest rates at which similar deposits and
placements would be made with financial institutions of similar credit risk and remaining period to maturity.
The estimated fair value is generally based on quoted and observable market prices. Where there is no ready market in certain
securities, the Group and the Company establishes fair value by using valuation techniques. These include the use of recent arms
length transactions, discounted cash flow analysis and other valuation techniques commonly used by market participants.
Other assets
The fair value of other assets approximates the carrying value less impairment allowance at the statement of financial position date.
Loans, advances and financing
For floating rate loans, the carrying value is generally a reasonable estimate of fair value.
For fixed rate loans with maturities of six months or more, the fair value is estimated by discounting the estimated future cash flows
using the prevailing market rates of loans with similar credit risks and maturities.
The fair values of impaired floating and fixed rate loans are represented by their carrying value, net of individual impairment allowance,
being the expected recoverable amount.
Amount due (to)/from subsidiaries and related companies
The estimated fair values of the amount due (to)/from subsidiaries and related companies approximate the carrying values as the
balances are either recallable on demand or are based on the current rates for such similar loans.
Deposits from customers
For deposits from customers with maturities of less than six months, the carrying amounts are a reasonable estimate of their fair value.
For deposit with maturities of six months or more, fair values are estimated using discounted cash flows based on prevailing market
rates for similar deposits from customers.
Deposits and placements of banks and other financial institutions
The estimated fair values of deposits and placements of banks and other financial institutions with maturities of less than six months
approximate the carrying values. For deposits and placements with maturities of six months or more, the fair values are estimated
based on discounted cash flows using prevailing money market interest rates for deposits and placements with similar remaining period
to maturities.
266
CIMB & YOU
Obligations on securities sold under repurchase agreements
The estimated fair values of obligations on securities sold under repurchase agreements with maturities of less than six months
approximate the carrying values. For obligations on securities sold under repurchase agreements with maturities of six months or more,
the fair values are estimated based on discounted cash flows using prevailing money market interest rates with similar remaining period
to maturity.
Bills and acceptances payable
The estimated fair values of bills and acceptances payable with maturities of less than six months approximate the carrying values. For
bills and acceptance payable with maturities of six months or more, the fair values are estimated based on discounted cash flows using
prevailing money market interest rates for bills and acceptance payable with similar remaining period to maturity.
Other liabilities
The fair value of other liabilities approximates the carrying value at the statement of financial position date.
Other borrowings
The estimated fair values of other borrowings with maturities of less than six months approximate the carrying values. For other
borrowings with maturities six months or more, the fair values are estimated based on discounted cash flows using prevailing market
rates for borrowings with similar risk profile.
Subordinated notes
The fair values for the quoted subordinated notes are obtained from quoted market prices while the fair values for unquoted
subordinated notes are estimated based on discounted cash flow models.
Redeemable preference shares
The estimated fair value of redeemable preference shares (RPS) approximates the carrying value based on Directors estimate as the
effective interest rate of the RPS is a reflection of the current rate for such similar instrument.
Credit related commitment and contingencies
The net fair value of these items was not calculated as estimated fair values are not readily ascertainable. These financial instruments
generally relate to credit risks and attract fees in line with market prices for similar arrangements. They are not presently sold nor traded.
The fair value may be represented by the present value of fees expected to be received, less associated costs.
267
ANNUAL REPORT 2014
55.4.3 Quantitative information about fair value measurements using significant unobservable inputs (level 3)
Certain credit derivatives products where market rate inputs are unobservable are valued using simulation approach comprising
statistical models that interact with each other. These models describe the default process and other market random variables like
interest rates and foreign currency (FX) rates in a mathematically and theoretically consistent framework. These statistical models are
the usual market standard when it comes to modeling rates, FX and credit. Credit derivatives inputs include:
Observable credit default swap (CDS) spreads
Loss given default or loss severity
Credit correlation between the underlying debt instruments (models are structured on a transaction basis and calibrated to liquid
benchmark indices)
Correlation between Credit and FX
Credit spread and FX volatility
Actual transactions, where available, are used to regularly recalibrate unobservable parameters
For the purpose of Model Reserve, the following ranges (where applicable) are proposed to be used for performing sensitivity analysis
to determine such reserves:
Credit correlation
1. Long correlation positions will be shocked with lower correlation
2. Short correlation positions will be shocked with higher correlation
Credit and FX correlation

1. Short Quanto CDS position shocked with larger negative correlation
2. Long Quanto CDS position shocked with larger positive correlation
FX Volatility
1. Long volatility shocked with lower volatility
2. Short volatility shocked with higher volatility
Equity derivatives which primarily include over-the-counter options on individual or basket of shares or market indices are valued using
option pricing models such as Black-Scholes and Monte Carlo Simulations.
These models are calibrated with the inputs which include underlying spot prices, dividend and yield curves. A Level 3 input for equity
options is historical volatility i.e. volatility derived from the shares historical prices. The magnitude and direction of the impact to the
fair value depend on whether the Group is long or short the exposure.
Higher volatility will result in higher fair value for net long positions.
Higher volatility will result in lower fair value for net short positions.
The fair value of structured deposits are typically valued using valuation techniques that incorporate observable market inputs. Certain
foreign currency structured deposits are fair valued using Level 3 inputs as the foreign currency deposit rates of the relevant tenures
are not observable.
268
CIMB & YOU
55.4.3 Quantitative information about fair value measurements using significant unobservable inputs (level 3) (Continued)
(a) Financial instruments carried at fair value
2014 Inter-relationship between

Description Range significant unobservable
Fair value Fair value Valuation Unobservable (Weighted inputs and fair value
Assets (Liabilities) technique(s) input average) measurement
RM'000 RM'000
Derivative financial
instruments
Trading
derivatives
Credit derivatives 18,400 (24,109) Discounted Cash Credit/FX -60% to -10% Given a short correlation position,
Flow, Stochastic correlation an increase in correlation, in
Default and isolation, would generally result in
Foreign Currency a decrease in fair value
Correlation Model measurement
Equity derivatives 48,273 (32,753) Option pricing Equity Volatility 9.59% to 151.98% Higher volatility results in higher/
lower fair value depending on the
net long/short positions
Financial assets
held for trading
Unquoted shares 132,681 Not Net tangible Net tangible assets Not applicable Higher net tangible assets results
and private equity applicable assets in higher fair value
funds
Financial
investments
available-for-sale
Unquoted shares 1,532,468 Not Net tangible Net tangible assets Not applicable Higher net tangible assets results
and private equity applicable assets in higher fair value
funds
designated at fair
value
Foreign currency Not 360,736 Discounted cash Foreign currency 0.58% to 4.74% Higher foreign currency
structured applicable flow deposit rates structured deposit rate results in
deposits decrease in fair value
measurement
269
ANNUAL REPORT 2014
(a) Financial instruments carried at fair value (Continued)
2013 Inter-relationship between

Description Range significant unobservable
Fair value Fair value Valuation Unobservable (Weighted inputs and fair value
Assets (Liabilities) technique(s) input average) measurement
RM'000 RM'000
Derivative financial
instruments
Trading
derivatives
Credit derivatives 9,649 (12,396) Discounted Cash Credit/ -55% to +10% Given a short correlation position,
Flow, Stochastic FX correlation an increase in correlation, in
Default and isolation, would generally result in
Foreign Currency a decrease in fair value
Correlation Model measurement
Equity derivatives 40,026 (930,755) Option pricing Equity Volatility 6.72% to 77.69% Higher volatility results in higher/
lower fair value depending on the
net long/short positions
Financial assets
held for trading
Unquoted shares 73,048 Not Net tangible Net tangible Not applicable Higher net tangible assets results
and private equity applicable assets assets in higher fair value
funds
Financial
investments
available-for-sale
Unquoted shares 1,278,934 Not Net tangible Net tangible Not applicable Higher net tangible assets results
and private equity applicable assets assets in higher fair value
funds
270
CIMB & YOU
(a) Financial instruments carried at fair value (Continued)
Sensitivity analysis for level 3
The Group Effect of reasonably possible

2014 alternative assumptions to:
Profit or loss
Sensitivity of
significant
unobservable Favourable Unfavourable
input changes changes
RM000 RM000
Derivative financial instruments - trading

Credit derivatives +10% 38
-10% (33)
Equity derivatives +25% (438)
-25% 397
Financial liabilities designated at fair value
Foreign currency deposits +1% 14,589
-1% (14,589)
Total 15,024 (15,060)
The Group Effect of reasonably possible

2013 alternative assumptions to:
Profit or loss
Sensitivity of
significant
unobservable Favourable Unfavourable
input changes changes
RM000 RM000
Derivative financial instruments - trading

Credit derivatives +10% 83
-10% (82)
Equity derivatives +25% (322)
-25% 242
Total 325 (404)
271
ANNUAL REPORT 2014
56 THE OPERATIONS OF ISLAMIC BANKING
Statement of Financial Position as at 31 December 2014
Note 2014 2013

RM000 RM000
ASSETS
Cash and short-term funds (a) 6,549,105 8,558,114
Reverse repurchase agreements 18,645
Deposits and placements with banks and other financial institutions (b) 742,096 730,415
Financial assets held for trading (c) 3,723,913 3,329,824
Islamic derivative financial instruments (d) 286,468 271,201
Financial investments available-for-sale (e) 2,398,454 1,783,107
Financial investments held-to-maturity (f) 1,165,553 1,040,933
Financing, advances and other financing/loans (g) 40,600,338 37,851,664
Deferred tax assets (h) 21,518 25,241
Amount due from conventional operations 3,824,466 3,391,843
Statutory deposits with Bank Negara Malaysia (i) 1,297,654 1,436,747
Property, plant and equipment (j) 13,169 9,485
Other assets (k) 454,723 588,654
Goodwill (l) 136,000 136,000
Intangible assets (m) 91,937 14,225
Total assets 61,305,394 59,186,098
LIABILITIES
Deposits from customers (n) 44,345,984 41,186,141
Deposits and placements of banks and other financial institutions (o) 5,812,183 7,296,029
Islamic derivative financial instruments (d) 340,823 294,760
Amount due to conventional operations 623,717 786,600
Provision for taxation and Zakat (p) 26,805 17,978
Other liabilities (q) 3,977,161 4,181,097
Financial liabilities designated at fair value (r) 149,835 146,216
Subordinated Sukuk (s) 856,026 856,722
EQUITY
Islamic banking funds 55,250 55,250
Ordinary share capital (t) 1,000,000 1,000,000
Perpetual preference shares (t) 220,000 70,000
Reserves (u) 3,887,440 3,285,874
5,162,690 4,411,124
Total equity 5,172,860 4,420,555
Commitments and contingencies (d)(ii) 29,032,526 27,950,457
272
CIMB & YOU
56 THE OPERATIONS OF ISLAMIC BANKING (CONTINUED)
Statement of Income for the financial year ended 31 December 2014
Note 2014 2013

RM000 RM000
Income derived from investment of depositors funds and others (v) 2,336,341 2,424,949
Net income derived from investment of shareholders funds (w) 337,853 337,601
Allowance made for impairment losses on financing, advances and other financing/loans (x) (159,762) (147,768)
Allowance written back/(made) for impairment losses on other receivables 280 (565)
Total distributable income 2,514,712 2,614,217

Income attributable to depositors (y) (1,212,916) (1,169,687)
Total net income 1,301,796 1,444,530

Personnel expenses (z) (98,178) (111,956)
Other overheads and expenditures (aa) (452,109) (468,545)
Profit before allowances 751,509 864,029

Allowance written back/(made) for impairment losses 124 (3,024)
Profit before taxation 751,633 861,005

Taxation (ab) (170,205) (205,422)
Profit after taxation 581,428 655,583
Profit attributable to:

Owners of the Parent 580,829 655,278
Non-controlling interests 599 305
581,428 655,583
273
ANNUAL REPORT 2014
Statement of Comprehensive Income for the financial year ended 31 December 2014
2014 2013
RM000 RM000
Net profit after taxation 581,428 655,583

Other comprehensive income:
Revaluation reserve-financial investments available-for-sale 16,078 (40,545)
Realised gain transferred to statement of income on disposal and impairment (6,637) (20,303)
Income tax effects 291 15,583
Exchange fluctuation reserve 4,729 (8,301)
Other comprehensive income, net of tax 20,807 (48,846)
Total comprehensive income for the financial year 602,235 606,737
Total comprehensive income attributable to:

Owners of the Parent 602,095 606,828
Non-controlling interests 140 (91)
602,235 606,737
Income from Islamic Banking operations:

Total net income 1,301,796 1,444,530
Add: Allowance made for impairment losses on financing, advances and other financing/loans 159,762 147,768
Add: Allowance (written back)/made for impairment losses on other receivables (280) 565
1,461,278 1,592,863
274
CIMB & YOU
Statements of changes in equity for the financial year ended 31 December 2014
Revaluation
reserve-
financial
Perpetual Islamic investments Exchange Share- Non-
Share preference Banking Statutory available- fluctuation Regulatory based Retained controlling
capital shares funds reserve for-sale reserve reserve payment earnings Total interests Total
2014
At 1 January 2014 1,000,000 70,000 55,250 763,015 (13,940) (2,080) 230,088 606 2,308,185 4,411,124 9,431 4,420,555
Net profit for the financial year 580,829 580,829 599 581,428
(net of tax) 16,080 4,589 20,669 140 20,809
Financial investments available-for-sale 16,080 16,080 16,080
Currency translation difference 4,589 4,589 140 4,729
Total comprehensive income for
the financial year 16,080 4,589 580,829 601,498 739 602,237
Share-based payment expense 687 687 687
Transfer from regulatory reserve (230,088) 230,088
Shares released under Equity
Ownership Plan (619) (619) (619)
Issue of share capital during the year 150,000 150,000 150,000
At 31 December 2014 1,000,000 220,000 55,250 860,851 2,140 2,509 674 3,021,266 5,162,690 10,170 5,172,860
275
ANNUAL REPORT 2014
Statements of changes in equity for the financial year ended 31 December 2014 (Continued)
Revaluation
reserve-
financial
Perpetual Islamic investments Exchange Share- Non-
Share preference Banking Statutory available- fluctuation Regulatory based Retained controlling
capital shares funds reserve for-sale reserve reserve payment earnings Total interests Total
2013
At 1 January 2013 1,000,000 70,000 55,250 671,625 26,605 6,130 242,624 335 1,787,761 3,860,330 9,217 3,869,547
Net profit for the financial year 655,278 655,278 305 655,583
(net of tax) (40,545) (8,210) (48,755) (91) (48,846)
Financial investments available-for-sale (40,545) (40,545) (40,545)
Currency translation difference (8,210) (8,210) (91) (8,301)
Total comprehensive income for
the financial year (40,545) (8,210) 655,278 606,523 214 606,737
Dividend for the financial year ended
31 December 2013 (56,000) (56,000) (56,000)
Share-based payment expense 591 591 591
Transfer to regulatory reserve (12,536) 12,536
Shares released under Equity
Ownership Plan (320) (320) (320)
At 31 December 2013 1,000,000 70,000 55,250 763,015 (13,940) (2,080) 230,088 606 2,308,185 4,411,124 9,431 4,420,555
276
CIMB & YOU
Statements of Cash Flows for the financial year ended 31 December 2014
2014 2013
RM000 RM000
Operating activities
Adjustments for:
Depreciation of property, plant and equipment 4,789 3,553
Written off property, plant and equipment 186 35
Net unrealised loss on revaluation of financial assets held for trading 299 8,452
Net unrealised loss on derivatives 12,553 8,275
Accretion of discount less amortisation of premium (92,319) (135,842)
Net gain from sale of financial investments available-for-sale (6,637) (20,303)
Profit income from financial investments held-to-maturity (54,874) (49,867)
Profit income from financial investments available-for-sale (70,616) (109,722)
Profit expense on Subordinated Sukuk 39,032 38,010
Share-based payment expense 687 591
Net gain from sale of financial investment held-to-maturity (286)
Unrealised gain from financial liabilities designated at fair value (8,464)
Net loss from foreign exchange transactions 60,868 117,044
Net (gain)/loss from hedging derivatives (231) 4,760
Impairment losses on securities 3,538 3,538
Allowance for impairment losses on other receivables (280) 565
Allowance for impairment losses on financing, advances and other financing/loans 204,239 195,263
863,290 919,757
(Increase)/decrease in operating assets
Reverse repurchase agreements 18,645 (18,645)
Deposits and placements with banks and other financial institutions (11,681) 143,360
Financial assets held for trading (303,750) 3,055,050
Islamic derivative financial instruments 18,243 (105,377)
Financing, advances and other financing/loans (2,966,611) (2,051,043)
Statutory deposits with Bank Negara Malaysia 139,093 (332,650)
Other assets 135,220 (197,591)
Amount due from conventional operations (463,845) (1,525,221)
(3,434,686) (1,032,117)
Increase/(decrease) in operating liabilities
Deposits from customers 3,159,843 2,282,176
Deposits and placements of banks and other financial institutions (1,483,846) (4,132,864)
Other liabilities (264,805) 1,611,472
Amount due to conventional operations (163,579) (88,757)
1,251,232 (173,293)
Cash flows used in operations (1,320,164) (285,653)

Taxation paid (128,516) (126,655)
Net cash flows used in operating activities (1,448,680) (412,308)
277
ANNUAL REPORT 2014
Statements of Cash Flows for the financial year ended 31 December 2014 (Continued)
Note 2014 2013

RM000 RM000
Investing activities
Net (purchase)/proceeds of financial investments available-for-sale (609,355) 1,449,964
Purchase of property, plant and equipment (9,281) (3,049)
Purchase of intangible assets (87,558) (10,014)
Net (purchase)/proceeds of financial investments held-to-maturity (124,780) 34,692
Profit income from financial investments held-to-maturity 55,125 50,118
Profit income from financial investments available-for-sale 85,333 124,439
Reclassified to intangible assets 892
Net cash flows (used in)/generated from investing activities (689,624) 1,646,150
Financing activities
Profit expense paid on Subordinated Sukuk (39,031) (37,981)
Dividend paid (56,000)
Acquisition of remaining interest in subsidiary (514)
Issuance of share capital 150,000
Net cash flows generated from/(used in) financing activities 110,455 (93,981)
Net (decrease)/increase in cash and cash equivalents (2,027,849) 1,139,861

Cash and cash equivalents at beginning of financial year 8,558,114 7,418,491
Effect of exchange rate changes 18,840 (238)
Cash and cash equivalents at end of financial year 6,549,105 8,558,114
Cash and cash equivalents comprise:

Cash and short-term funds (a) 6,549,105 8,558,114
278
CIMB & YOU
2014 2013
RM000 RM000
(a) Cash and short-term funds

Cash and balances with banks and other financial institutions 1,064,786 977,947
Money at call and deposit placements maturing within one month 5,484,319 7,580,167
6,549,105 8,558,114
(b) Deposits and placements with banks and other financial institutions
Licensed banks 742,096 730,415
742,096 730,415
(c) Financial assets held for trading

Unquoted:
Government Investment Issues 12,885 27,647
Malaysian Government treasury bills 14,826
Bank Negara Malaysia monetary notes 2,235,537 2,184,341
Islamic negotiable instruments of deposits 992,580 748,368
3,255,828 2,960,356
Quoted securities:
Outside Malaysia
Private debt securities 23 47,696
Sukuk 158,431 77,770
158,454 125,466
In Malaysia
Private debt securities 210,789 221,440
Outside Malaysia
Islamic debt securities 98,842 22,562
309,631 244,002
3,723,913 3,329,824
279
ANNUAL REPORT 2014
(d) Islamic derivative financial instruments, commitments and contingencies
(i) Islamic derivative financial instruments
The following tables summarise the contractual or underlying principal amounts of trading derivative and financial instruments held for
hedging purposes. The principal or contractual amounts of these instruments reflect the volume of transactions outstanding at statements
of financial position date, and do not represent amounts at risk. In the financial statements, trading derivative financial instruments are
revalued on a gross position basis and the unrealised gains or losses are reflected in Islamic derivative financial instruments Assets and
Liabilities respectively.
31 December 2014
Principal Asset Liability
RM000 RM000 RM000
Trading derivatives
Currency forwards 919,232 42,422 (22,544)
Up to 1 year 258,448 11,082 (41)
More than 1 year to 3 years 5,478 172 (74)
More than 3 years 655,306 31,168 (22,429)
Currency swaps 2,797,655 37,612 (38,700)
Up to 1 year 2,797,655 37,612 (38,700)
Currency spots 21,488 10 (12)
Up to 1 year 21,488 10 (12)
Cross currency profit rate swaps 1,050,230 70,333 (69,932)
Up to 1 year 308,785 9,282 (9,250)
More than 3 years 741,445 61,051 (60,682)
Profit rate derivatives

Islamic profit rate swaps 10,004,743 92,255 (78,193)
Up to 1 year 857,751 342 (524)
More than 3 years 5,554,314 72,623 (59,076)
Equity derivatives
Equity options 847,556 13,611 (13,611)
Up to 1 year 103,011 2,621 (2,621)
More than 3 years 644,475 6,725 (6,725)
Credit related contracts

Total return swaps 113,800 752 (752)
More than 3 years 113,800 752 (752)
Hedging derivatives
More than 1 year to 3 years 550,000 808 (5,233)
More than 3 years 6,366,136 28,665 (111,846)
Total derivative assets/(liabilities) 22,670,840 286,468 (340,823)
280
CIMB & YOU
(d) Islamic derivative financial instruments, commitments and contingencies (Continued)
(i) Islamic derivative financial instruments (Continued)
31 December 2013
Principal Asset Liability
RM000 RM000 RM000
Trading derivatives
Up to 1 year 650,332 21,019 (3,922)
More than 1 year to 3 years 1,787 32
More than 3 years 658,997 9,175 (1,293)
Currency swaps 2,961,169 31,757 (29,390)
Up to 1 year 2,961,169 31,757 (29,390)
Currency spots 8,625 10 (5)
Up to 1 year 8,625 10 (5)
Currency options 27,230 93 (93)
Up to 1 year 27,230 93 (93)
Cross currency profit rate swaps 834,259 37,105 (36,600)
Up to 1 year 93,859 4,878 (4,878)
More than 3 years 740,400 32,227 (31,722)
Profit rate derivatives

Up to 1 year 450,001 839 (455)
More than 3 years 7,061,818 108,424 (91,019)
Equity derivatives
Equity options 909,075 13,513 (13,513)
More than 3 years 789,253 10,470 (10,470)
Credit related contracts

Total return swaps 115,960 586 (586)
More than 3 years 115,960 586 (586)
Hedging derivatives
More than 1 year to 3 years 265,304 2,882 (320)
More than 3 years 6,665,123 41,773 (114,107)
Total derivative assets/(liabilities) 21,944,770 271,201 (294,760)
281
ANNUAL REPORT 2014
(d) Islamic derivative financial instruments, commitments and contingencies (Continued)
(ii) Commitments and contingencies
In the normal course of business, the Group makes various commitments and incur certain contingent liabilities with legal recourse to
their customers. No material losses are anticipated as a result of these transactions.
Treasury related derivative financial instruments are revalued on a gross position basis and the unrealised gains or losses are reflected in
Derivative Financial Instruments Assets and Liabilities respectively.
The notional or principal amount of the commitments and contingencies constitute the following:
2014 2013
Principal Principal
RM000 RM000
Credit related
Direct credit substitutes 129,163 153,960
Certain transaction-related contingent items 366,786 390,323
Short-term self-liquidating trade-related contingencies 76,602 19,725
Irrevocable commitments to extend credit:
Maturity less than one year 3,408,649 4,383,087
Maturity exceeding one year 2,325,983 868,416
Miscellaneous commitments and contingencies:
Shariah-compliant equity option 54,503 190,176
Total credit-related commitments and contingencies 6,361,686 6,005,687
Total treasury-related commitments and contingencies (Note 56(d)(i)) 22,670,840 21,944,770
Total commitments and contingencies 29,032,526 27,950,457
282
CIMB & YOU
(e) Financial investments available-for-sale
2014 2013
RM000 RM000

Unquoted:
Government Investment Issues 315,897 377,791
Islamic Cagamas bonds 8,504 25,491
Malaysian Government Securities 19,750 34,793
Khazanah bonds 70,214
414,365 438,075
Quoted securities:
Outside Malaysia
Private debt securities 11,533
Government bonds 100,144
111,677
In Malaysia
Private debt securities 1,553,324 863,322
Placements with Islamic Banking and Finance Institute Malaysia 575 575
Bonds 47,261
Outside Malaysia
Private equity funds 51,986 23,624
1,984,089 1,233,355
2,398,454 1,783,107
283
ANNUAL REPORT 2014
(f) Financial investments held-to-maturity
2014 2013
RM000 RM000
Money market instruments

Unquoted
Government Investment Issue 7,569
Khazanah bonds 12,662
Quoted securities:
Outside Malaysia
Islamic bonds 122,726 22,932
Bank Indonesia Certificates 88,843 89,510
211,569 112,442
In Malaysia
Government Investment Issue
Outside Malaysia
933,448 928,623
Amortisation of premium less accretion of discount 375 (65)

Less: Allowance for impairment loss (70) (67)
1,165,553 1,040,933
284
CIMB & YOU
(g) Financing, advances and other financing/loans
(i) By type and Shariah contract
2014 The Group

Bai' Ijarah Musharakah Qard Others Total
RM000 RM000 RM000 RM000 RM000 RM000
At amortised cost
Cash line^ 554,680 10,277 564,957
Term financing
House Financing 9,206,917 992,267 10,199,184
Syndicated Financing 365,825 211,243 51,796 628,864
Hire purchase receivables 690,273 5,298,240 5,988,513
Other term financing 18,460,187 56,820 1,559,574 20,076,581
Bills receivable 2,939 2,939
Trust receipts 19,168 76,273 95,441
Claims on customers under
acceptance credits 392,033 392,033
Staff financing 2 2
Revolving credits 2,507,687 288,107 2,795,794
Credit card receivables 140,705 140,705
Share margin financing 9,453 29,421 53,053 91,927
Ar Rahnu 2,348 2,348
Other financing 13,256 13,562 26,818
Gross financing, advances and

other financing/loans 32,209,162 6,571,826 29,421 10,277 2,185,420 41,006,106
Fair value changes arising from fair

value hedge 57,272
41,063,378
Less: Allowance for impairment
losses
Individual impairment
allowance (88,336)
Portfolio impairment allowance (374,704)
(463,040)
Net financing, advances and

other financing/loans 40,600,338
285
ANNUAL REPORT 2014
(g) Financing, advances and other financing/loans (Continued)
(i) By type and Shariah contract (Continued)
2013 The Group

Bai' Ijarah Musharakah Qard Others Total
RM000 RM000 RM000 RM000 RM000 RM000
At amortised cost
Cash line^ 476,126 2,006 478,132
Term financing
House Financing 9,071,124 435,622 9,506,746
Syndicated Financing 276,330 226,666 502,996
Hire purchase receivables 785,834 6,288,975 7,074,809
Other term financing 16,151,926 609,684 759,112 17,520,722
Bills receivable 2,885 2,885
Trust receipts 25,934 40,681 66,615
Claims on customers under
acceptance credits 370,754 370,754
Staff financing 2 2
Revolving credits 2,242,158 150,851 2,393,009
Credit card receivables 121,966 121,966
Share margin financing 16,441 39,714 144,782 200,937
Ar Rahnu 5,081 5,081
Other financing 16,350 13,012 29,362
Gross financing, advances and

other financing/loans 29,419,512 7,577,297 39,714 2,006 1,235,487 38,274,016
Fair value changes arising from fair

value hedge 40,548
38,314,564
Less: Allowance for impairment
losses
Individual impairment
allowance (48,093)
Portfolio impairment allowance (414,807)
(462,900)
Net financing, advances and

other financing/loans 37,851,664
286
CIMB & YOU

Bai contracts
Murabahah
A contract of sale of assets at a mark-up price, which includes a profit margin as agreed by the contracting parties. The price,
costs and profit margin in Murabahah shall be made transparent and agreed upon between buyer and seller. Income is recognised
on effective profit rate basis over the expected life of the contract based on the principal amounts outstanding.
Bai al-inah
A contract of sale and purchase of an asset whereby the seller sells to buyer in cash and subsequently buys back the asset at a
marked up and deferred. Income is recognised on effective profit rate basis over the expected life of the contract based on principal
amount outstanding.
Tawarruq
Arrangement that involves a purchase of an asset/commodity based on musawamah or murabahah contract on deferred term and
a subsequent sale of the same asset to a third party in order to obtain cash. Income is recognised on effective profit rate basis
over the expected life of the contract based on the principal amounts outstanding.
Bai Bithaman Ajil

A contract of sale and purchase of an asset in which the payment of price is deferred either be paid in lump-sum or instalment
basis within an agreed period of time. Income from financing shall be recognised on effective profit rate basis over the expected life
of the contract based on principal amount outstanding.
Bai al-Dayn
A contract of trading of debt and the outstanding debt may be sold to the debtor or to a third party on cash basis. Income from
financing shall be recognised on effective profit rate basis over the expected life of the contract based on principal amount
outstanding
Ijarah contracts
Ijarah
Contract of lease ending with transfer of ownership from the lessor to the lessee either in the form of gift or sale transaction based
on agreed terms and conditions. There are two contracts in this arrangement. The first contract is ijarah where the lessee enjoys
the usufruct of the assets at an agreed rental during an agreed period while the ownership remains with the lessor. The second
contract is to transfer the ownership of the assets which may takes place at the end of the ijarah tenure or at any point of time
during the tenure subject to the agreed terms and conditions between the contracting parties. Income is recognised on effective
profit rate basis over the lease term.
287
ANNUAL REPORT 2014
Qard
A contract of lending a fungible asset to a borrower who is bound to return an equivalent replacement. No income from financing shall
be generated from the transactions.
(a) Included in financing, advances and other financing/loans are exposures to Restricted Profit Sharing Investment Accounts (RPSIA),
as part of an arrangement between CIMB Islamic and CIMB Bank. CIMB Bank is exposed to risks and rewards on RPSIA financing
and will account for all the allowances for impairment losses for bad and doubtful debts arising thereon.
As at 31 December 2014, the gross exposures to RPSIA financing is RM2,099 million (2013: RM2,476 million) and the portfolio
impairment allowance relating to this RPSIA amounting to RM6.4 million (2013: RM11.3 million) is recognised in the Financial
Statements of CIMB Bank. There was no individual impairment provided on this RPSIA financing.
(b) During the financial year, the Group has undertaken fair value hedges on RM6,350 million (2013: RM6,350 million) financing using
Islamic profit rate swaps.
2014 2013
RM000 RM000
Gross financing hedged 6,350,000 6,350,000

Fair value changes from fair value hedges 57,272 40,548
6,407,272 6,390,548
The fair value loss on Islamic profit rate swaps in this hedge transaction as at 31 December 2014 was RM83 million (2013:
RM67 million).
(c) Movement of Qard financing
2014 2013
RM000 RM000
At 1 January 2,006 4,594

New disbursement 10,068 1,571
Repayment (1,797) (4,159)
At 31 December 10,277 2,006
b) Sources and uses of Qard Financing

Sources of Qard fund:
Depositors fund 9,665 1,886
Shareholders fund 612 120
10,277 2,006
Uses of Qard fund:

Personal use 1,156 410
Business use 9,121 1,596
10,277 2,006
288
CIMB & YOU
(ii) By type of customers:
2014 2013
RM000 RM000
Domestic banking institutions 13,562

Domestic non-bank financial institutions 1,744,023 1,505,087
Domestic business enterprises
Small medium enterprises 5,845,316 2,541,769
Others 2,968,278 5,180,126
Individuals 21,030,699 21,092,572
Other domestic entities 527,055 31,022
Foreign entities 2,103,689 1,177,342
41,006,106 38,274,016
(iii) By profit sensitivity:
2014 2013
RM000 RM000
Fixed rate
House financing 468,613 565,911
Hire purchase receivables 5,988,513 7,074,809
Other fixed rate financing 12,206,427 12,857,952
Variable rate
House financing 9,730,571 8,940,835
Others 12,611,982 8,834,509
41,006,106 38,274,016
(iv) By economic purposes:
2014 2013
RM000 RM000
Personal use 2,924,849 3,194,892

Credit card 140,705 121,965
Purchase of consumer durables 21,809 17,995
Construction 1,698,290 1,930,087
Residential property 10,337,476 9,555,442
Non-residential property 3,573,649 3,206,670
Purchase of fixed assets other than land and building 444,385 270,074
Purchase of securities 584,113 21,839
Purchase of transport vehicles 6,040,111 7,132,059
Working capital 9,873,268 8,733,774
Other purpose 5,367,451 4,089,219
41,006,106 38,274,016
289
ANNUAL REPORT 2014
(v) By geographical distribution:
2014 2013
RM000 RM000
Malaysia 36,781,908 35,523,792

Indonesia 1,866,915 1,847,307
Singapore 1,633,620 902,917
Other countries 723,663
41,006,106 38,274,016
(vi) By residual contractual maturity:
2014 2013
RM000 RM000
Within one year 4,208,888 3,777,017

One year to less than three years 3,650,787 2,120,729
Three years to less than five years 7,928,930 6,300,584
Five years and more 25,217,501 26,075,686
41,006,106 38,274,016
(vii) Impaired financing, advances and other financing/loans by economic purposes:
2014 2013
RM000 RM000
Personal use 31,233 25,081

Credit cards 3,695 2,285
Residential property 106,021 97,844
Non-residential property 33,429 29,202
Purchase of fixed assets other than land and building 883 1,682
Construction 46,896 1,312
Purchase of securities 200 223
Purchase of transport vehicles 145,627 100,454
Working capital 132,431 109,100
Other purpose 39,505 8,245
539,920 375,428
290
CIMB & YOU
(viii) Impaired financing, advances and other financing/loans by geographical distribution:
2014 2013
RM000 RM000
Malaysia 457,860 310,151

Indonesia 82,060 65,277
539,920 375,428
(ix) Movements in impaired financing, advances and other financing/loans:
2014 2013
RM000 RM000
At 1 January 375,428 443,673

Classified as impaired during the financial year 859,063 493,410
Reclassified as not impaired during the financial year (375,431) (192,703)
Reclassification from unwinding income
Amount recovered (103,631) (127,800)
Amount transferred to conventional operations (38,104)
Exchange fluctuation 5,317 (3,786)
At 31 December 539,920 375,428
Ratio of gross impaired financing, advances and other financing/loans to gross financing,
advances and other financing/loans 1.32% 0.98%
* Represents restatement of income-in-suspense and financing previously classified as performing under GP3 but considered impaired
under MFRS 139
291
ANNUAL REPORT 2014
(x) Movements in allowance for impaired financing, advances and other financing/loans:
2014 2013
RM000 RM000
Individual impairment allowance

At 1 January 48,093 127,290
Allowance made during the financial year 53,064 (12,569)
Amount transferred to conventional operations (5,216)
Exchange fluctuation 1,500 33,749
At 31 December 88,336 48,093
Portfolio impairment allowance

At 1 January 414,807 380,259
Allowance made during the financial year 154,030 205,711
Unwinding income
Allowance transferred from conventional operations 2,715
Exchange fluctuation (20,515) (36,889)
At 31 December 374,704 414,807
Portfolio impairment allowance as % of gross financing, advances and other financing/loans

(excluding RPSIA financing) less individual impairment allowance 1.16% 2.21%
(h) Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities
and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in
the statements of financial position.
2014 2013
RM000 RM000

Deferred tax liabilities (1,414) (3,482)
21,518 25,241
Futher breakdown are as follows:
2014 2013
RM000 RM000
Portfolio impairment allowance for bad and doubtful financing 118 45

Accelerated tax depreciation (2,107) (3,821)
Revaluation reserve financial investments available-for-sale 6,435 8,596
Other temporary differences 17,072 20,421
292
CIMB & YOU
(h) Deferred taxation (Continued)
The movements in deferred tax assets and liabilities during the financial year comprise the following:
Portfolio
impairment
allowance/
general
allowance Financial
for bad and Accelerated investments Other
doubtful tax available- temporary
Note financing depreciation for-sale differences Total
RM000 RM000 RM000 RM000 RM000
Deferred tax assets/(liabilities)

2014
At 1 January 45 (3,821) 8,596 20,421 25,241
Credited/(charged) to statement of income (ab) 73 2,054 (3,349) (1,222)
Under provision in prior year (340) (2,452) (2,792)
Transferred from equity 291 291
At 31 December 2014 118 (2,107) 6,435 17,072 21,518
2013
At 1 January 78 (2,234) (6,987) 20,213 11,070
Credited/(charged) to statement of income (ab) (33) (1,247) 208 (1,072)
Under provision in prior year (340) (340)
Transferred from equity 15,583 15,583
At 31 December 2013 45 (3,821) 8,596 20,421 25,241
(i) Statutory deposits with Bank Negara Malaysia
2014 2013
RM000 RM000
Statutory deposits with Bank Negara Malaysia 1,297,654 1,436,747
The statutory deposits are maintained with Bank Negara Malaysia in compliance with Section 26(2)(c) of the Central Bank of Malaysia Act,
2009, the amounts of which are determined at set percentages of total eligible liabilities.
293
ANNUAL REPORT 2014
(j) Property, plant and equipment
Renovations,
office Computer
equipment, equipment
furniture and Motor and software
Note fittings vehicles under lease Total
RM000 RM000 RM000 RM000
2014
Cost
At 1 January 13,337 3,692 6,683 23,712
Additions 8,800 318 163 9,281
Reclassified to intangible assets (m) (3,257) (3,257)
Written off (1,043) (491) (53) (1,587)
Exchange fluctuation 303 156 460
At 31 December 21,397 3,519 3,692 28,608
At 1 January 8,118 1,349 4,760 14,227
Charge for the financial year 3,624 636 529 4,789
Reclassified to intangible assets (m) (2,535) (2,535)
Written off (1,025) (322) (54) (1,401)
Exchange fluctuation 231 128 359
At 31 December 10,948 1,663 2,828 15,439
Net book value at 31 December 10,449 1,856 864 13,169
2013
Cost
At 1 January 12,246 3,384 7,215 22,845
Additions 2,109 393 547 3,049
Reclassified to intangible assets (m) (33) (33)
Written off (82) (82)
Exchange fluctuation (985) (3) (1,079) (2,067)
At 31 December 13,337 3,692 6,683 23,712
At 1 January 6,592 951 4,622 12,165
Charge for the financial year 2,186 446 921 3,553
Written off (47) (47)
Exchange fluctuation (660) (1) (783) (1,444)
At 31 December 8,118 1,349 4,760 14,227
Net book value at 31 December 5,219 2,343 1,923 9,485
294
CIMB & YOU
(k) Other assets
2014 2013
RM000 RM000
Deposits and prepayments 8,530 20,832

Clearing accounts 5,801 184,092
Collateral pledged for derivative transactions 210,153 221,233
Sundry debtors 230,239 162,497
454,723 588,654
(l) Goodwill
2014 2013
RM000 RM000
Goodwill is wholly allocated to the retail banking cash-generating unit (CGU).
The recoverable amount of the CGU is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections
based on the 2014 financial budgets approved by management, projected for 5 years based on the average to year historical Gross Domestic
Product (GDP) growth of the country covering a five year period, revised for current economic conditions. Cash flows beyond the five year
period are extrapolated using an estimated terminal growth rate of 5.00% (2013: 5.00%). The cash flow projections are derived based on a
number of key factors including the past performance and managements expectation of market developments. The discount rate is 7.04%
(2013: 6.55%) which reflects the specific risks relating to the CGU.
Management believes that no reasonably possible change in any of the key assumptions would cause the carrying value of any CGU to exceed
its recoverable amount.
295
ANNUAL REPORT 2014
(m) Intangible assets
Note 2014 2013

RM000 RM000
Computer software
Cost
At 1 January 34,420 24,373
Additions 87,558 10,014
Disposals (170)
Reclassified from property, plant and equipment (j) 3,257 33
Exchange fluctuation 155
At 31 December 125,220 34,420
Accumulated amortisation
At 1 January 20,195 17,045
Charge for the financial year 10,423 3,150
Reclassified from property, plant and equipment (j) 2,535
Exchange fluctuation 130
At 31 December 33,283 20,195
Net book value at 31 December 91,937 14,225
The above intangible assets include computer software under construction at cost of RM422,760 (2013: RM249,457).
The remaining amortisation period of the intangible assets are as follows:
Computer Software 1 15 years
296
CIMB & YOU
(n) Deposits from customers
2014 2013
RM000 RM000
(i) By type of deposits

Savings deposit
Wadiah 2,742,201 1,734,338
Mudharabah 190,452 711,650
2,932,653 2,445,988
Demand deposit
Wadiah 7,377,966 3,439,690
Qard 61,320 11,854
Mudharabah 755,889 4,793,196
8,195,175 8,244,740
Term deposit
Commodity Murabahah 21,691,342 5,652,819
Islamic Negotiable instruments 2,563,732 5,934,040
Mudharabah 389,915 414,592
Hybrid (Bai Bithamin Ajil (BBA) and Bai al-Dayn) 2,173,817 5,519,448
Short term money market deposit-i 5,116,670 14,334,939
Wakalah 5,109,756 14,334,939
Wadiah 6,914
Fixed Deposit-i 1,067,331 1,009,928
Wakalah 608,700 507,007
Wadiah 458,631 502,921
General investment account 2,433,388 3,200,189
Mudharabah 2,433,388 3,200,189
Specific investment account 326,806 338,070
Mudharabah 326,806 337,655
Murabahah 415
33,199,269 30,469,985
Others Qard 18,887 25,428
44,345,984 41,186,141
297
ANNUAL REPORT 2014
(n) Deposits from customers (Continued)
The maturity structure of term deposit is as follows
2014 2013
RM000 RM000

Six months to one year 1,067,187 628,554
One year to three years 381,594 68,248
Three years to five years 436 383,128
More than five years 320,887 334,654
33,199,269 30,469,985
2014 2013
RM000 RM000
(ii) By type of customer

Business enterprises 17,899,026 17,828,677
Individuals 6,821,940 5,388,521
Others 15,833,373 13,087,464
44,345,984 41,186,141
Wadiah (Yad Dhamanah)

A safe keeping contract whereby the custodian guarantees payment of the whole amount of deposits, or any part thereof, outstanding in the
account of the depositors, when demanded. The depositors are not entitled to any share of the profits (generated from usage of the deposits
by the custodian).
Commodity Murabahah
A contract of sale and purchase of commodities as underlying assets. The Customer appoints the Bank to act as the Customers agent for
the purchase and sale of the commodity. Profit expense shall be recognised on accrual basis by maturity date.
Mudharabah
A contract between a capital provider (rabbul mal) and an entrepreneur (Mudharib) under which the rabbul mal provides capital to be managed
by the mudharib and any profit generated from the capital is shared between the rabbul mal and mudharib according to mutually agreed Profit
Sharing Ratio (PSR) whilst financial losses are borne by the rabbul mal provided that such losses are not due to the mudharibs, negligence
(taqsir) or breach of specified terms (mukhalafah al-shurut). Mudharabah contract shall not stipulate a pre-determined fixed amount of profit to
one contracting party. This contract is categorised into two types:
(a) Unrestricted Mudharabah (Mudharabah Mutlaqah) is a contract in which the rabbul mal permits the mudharib to manage the venture
without any specific restriction.
(b) Restricted Mudharabah (Mudharabah Muqayyadah) is a contract in which the rabbul mal imposes specific restriction on the mudharabah
terms such as determination of location, period for investment, type of project and commingling of funds.
Profit shall be recognised accrual basis by actual liquidation of assets of mudharabah contract or constructive basis according to acceptable
profit recognition method which may include valuation according to acceptable market methodology, independent valuation or valuation based
on estimated figures.
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(n) Deposits from customers (Continued)
Wakalah
A trust-based contract in which a party (muwakkil) appoints another party as his agent (wakil) to perform a particular task, in matters that may
be delegated, either voluntarily or with imposition of a fee This contract is categorised into two types which are Restricted Agency (Wakalah
Muqayyadah) and Unrestricted Agency (Wakalah Mutlaqah). The fee shall be recognised based on agreement.
Bai Bithaman Ajil

A contract of sale and purchase of an asset in which the payment of price is deferred either be paid in lump-sum or instalment basis within
an agreed period of time. Profit expense from deposits shall be recognised on accrual basis by maturity date.
Bai al-Dayn
A contract of trading of debt and the outstanding debt may be sold to the debtor or to a third party on cash basis. Profit expense from
deposits shall be recognised on accrual basis by maturity date.
Qard
Qard is a contract of lending a fungible asset to a borrower who is bound to return an equivalent replacement. No income will be generated
from the transaction.
(o) Deposits and placements of banks and other financial institutions
2014 2013
RM000 RM000
Licensed banks 4,240,982 6,816,280

Licensed investment banks 201,122 230
Bank Negara Malaysia 29,384
Other financial institutions 1,340,695 479,519
5,812,183 7,296,029
(p) Provision for taxation and Zakat
2014 2013
RM000 RM000
Taxation 26,658 17,523

Zakat 147 455
26,805 17,978
299
ANNUAL REPORT 2014
(q) Other liabilities
2014 2013
RM000 RM000
Clearing accounts 3,180,770 2,975,794

Due to brokers 35,371 6,446
Accruals and other payables 761,020 1,198,857
3,977,161 4,181,097
(r) Financial liabilities designated at fair value
2014 2013
RM000 RM000
Deposits from customers structured investments 149,835 146,216
The Group has issued structured investments, and have designated them at fair value in accordance with MFRS139. The Group has the ability
to do this when designating these instruments at fair value reduces an accounting mismatch, is managed by the Group and the Bank on the
basis of its fair value, or includes terms that have substantive derivative characteristics.
The carrying amount of the Group as at 31 December 2014 of financial liabilities designated at fair value were RM8,551,000 (2013:
RM8,464,000) lower than the contractual amount at maturity. The fair value changes of the financial liabilities that are attributable to the
changes in own credit risk are not significant.
(s) Subordinated Sukuk
The RM850 million unsecured subordinated Sukuk (the Sukuk) is part of the Tier-2 Junior Sukuk programme which was approved by the
Securities Commission on 22 May 2009. Under the programme, CIMB Islamic Bank is allowed to raise Tier-2 capital of up to RM2.0 billion
in nominal value outstanding at any one time.
The first tranche of the Sukuk of RM300 million was issued at par on 25 September 2009 and is due on 25 September 2024, with optional
redemption on 25 September 2019 or any periodic payment date thereafter. The Sukuk bears a profit rate of 5.85% per annum payable
semi-annually in arrears.
On 21 April 2011, the second tranche of the Sukuk of RM250 million was issued at par and is due on 21 April 2021, with optional redemption
on 21 April 2016 or any periodic payment date thereafter. The Sukuk bears a profit rate of 4.20% per annum payable semi-annually in arrears.
On 18 September 2012, the third tranche of Sukuk of RM300 million was issued at par and is due on 15 September 2022, with the optional
redemption on 18 September 2017 or any periodic payment date thereafter. The Sukuk bears a profit rate of 4.00% per annum, payable
semi-annually in arrears.
The RM850 million Sukuk qualify as Tier II Capital for the purpose of the total capital ratio computation (subject to the general phase-out
treatment under Basel III).
300
CIMB & YOU
(t) Ordinary share capital and perpetual preference shares
2014 2013
RM000 RM000
Authorised

Perpetual preference shares

Authorised
Perpetual preference shares of RM1.00 each:
At 1 January 100,000 100,000
Increased during the financial year 300,000
At 31 December 400,000 100,000

Perpetual preference shares of RM1.00 each:
At 1 January 70,000 70,000
Issued during the financial year 150,000
At 31 December 220,000 70,000
(u) Reserves
(a) The statutory reserve is maintained in compliance with Section 15 of the Islamic Banking Act, 1983 and is not distributable as cash
dividends.
(b) Regulatory reserves are maintained as an additional credit risk absorbent to ensure robustness on the financing impairment assessment
methodology with the adoption of FRS 139 beginning 1 January 2010.
(c) The Share-based payment reserve arose from the Employee Ownership Plan (EOP), the Groups share-based compensation benefits.
301
ANNUAL REPORT 2014
(v) Income derived from investment of depositors funds and others
2014 2013
RM000 RM000
Income derived from investment of:

(i) General investment deposits 1,324,717 1,290,280
(ii) Specific investment deposits 91,033 89,121
(iii) Other deposits 920,591 1,045,548
2,336,341 2,424,949
(i) Income derived from investment of general investment deposits
Finance income and hibah:

Financing, advances and other financing/loans
Income other than recoveries 1,071,526 1,023,862
Unwinding income* 3,816 3,360
Money at call and deposit with financial institutions 127,504 115,647
Securities purchased under resale agreement 537 501
Others 5,770 7,823
1,288,690 1,243,488
Accretion of discount less amortisation of premium 47,122 62,007
1,335,812 1,305,495
Other operating income:

Net loss from foreign exchange transactions (39,274) (52,424)
Net gain from sale of financial investments available-for-sale 4,617 13,414
Net gain from sale of financial investments held-to-maturity 135
Net gain/(loss) from financial assets held for trading
Realised 669 18,722
Unrealised (121) (6,516)
(34,109) (26,669)
Fees and commission income:

Fee on financing and advances 4,257 6,398
17,838 9,896
Other income:
Sundry income 5,176 1,558
1,324,717 1,290,280
* Unwinding income is income earned on impaired financial assets
302
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(v) Income derived from investment of depositors funds and others (Continued)
(ii) Income derived from investment of specific investment deposits
2014 2013
RM000 RM000

Income other than recoveries 69,486 64,763
Money at call and deposit with banks and other financial institutions 21,547 24,358
91,033 89,121
(iii) Income derived from investment of other deposits

Unwinding income* 3,296 3,302
Money at call and deposit with banks and other financial institutions 100,548 92,213
894,252 1,006,624
933,997 1,073,934

Net gain from sale of financial investments available-for-sale 1,776 9,473
Realised 339 20,579
Unrealised (168) (1,699)
(16,070) (30,390)
Fees and commission income:

920,591 1,045,548
303
ANNUAL REPORT 2014
(w) Net income derived from investment of shareholders funds
2014 2013
RM000 RM000

Unwinding income* 443 313
Money at call and deposit with financial institutions 28,808 23,794
154,346 131,573
159,798 138,098

Realised 49 2,013
Unrealised (10) (237)
Net gain/(loss) from sale of financial investments available-for-sale 244 (2,584)
Net gain/(loss) from Islamic derivative financial instruments
Realised 74,761 100,665
Unrealised (12,553) (8,275)
Net (loss)/gain arising from financial liabilities designated at fair value
Realised (287) (1,572)
Unrealised 105 8,464
Net gain/(loss) from hedging derivatives 231 (4,760)
58,963 87,988
Net fees and commission income:

Advisory fees 1,610 2,898
Placement fees 5,750 20,385
Underwriting commission 640 3,147
Others 24,078 24,370
Fee and commission income 114,550 107,929

Fee and commission expense (1,417)
Net fees and commission income 114,550 106,512
Sundry income 4,542 5,003
337,853 337,601
304
CIMB & YOU
(x) Allowance for impairment losses on financing, advances and other financing/loans
2014 2013
RM000 RM000
(i) Individual impairment allowance

Made during the financial year 47,847 (12,569)
(ii) Portfolio impairment allowance

Made during the financial year 154,029 205,711
Bad debts on financing:

Recovered (44,477) (47,495)
Written-off 2,363 2,121
159,762 147,768
(y) Income attributable to depositors
2014 2013
RM000 RM000
Deposits from customers

Mudharabah 199,566 246,337
Non-Mudharabah 928,474 785,568
Deposits and placements of banks and other financial institutions
Mudharabah 29,574 58,624
Non-Mudharabah 8,139 32,460
Others 40,143 42,180
1,212,916 1,169,687
(z) Personnel expenses
2014 2013
RM000 RM000
Salaries, allowances and bonuses 82,885 92,698

Pension costs (defined contribution plan) 4,690 2,992
Staff incentives and other staff payments 7,507 7,959
Medical expenses 917 802
Others 2,179 7,505
98,178 111,956
Included in the personnel costs are fees paid to the Shariah Committee members amounting to RM914,025 (2013: RM796,101).
305
ANNUAL REPORT 2014
(aa) Other overheads and expenditures
2014 2013
RM000 RM000
Establishment costs
Depreciation of property, plant and equipment 4,789 3,553
Rental 4,372 3,279
Repairs and maintenance 4,649 3,949
Outsource services 3,812 402
Security expenses 1,210 1,231
Utility expenses 256 200
Others 2,057 1,918
21,145 14,532
Marketing expenses
Advertisement and publicity 6,559 8,571
Others 2,887 2,161
9,446 10,732
Administration and general expenses

Legal and professional fees 989 4,953
Stationery 1,178 1,415
Communication 1,120 1,211
Incidental expenses on banking operations 3,540 1,268
Others 28,646 35,926
45,896 47,923
Shared service cost

Personnel expenses 230,551 241,375
Establishment 104,681 107,921
Promotion 12,348 13,611
General expenses 28,042 32,451
375,622 395,358
452,109 468,545
306
CIMB & YOU
(ab) Taxation
(i) Tax expense for the financial year
Note 2014 2013

RM000 RM000
Current year tax

Malaysian income tax 168,831 204,174
Deferred taxation (h) 1,222 1,072
Under accrual in prior year 152 176
170,205 205,422
(ii) Numerical reconciliation of income tax expense

The explanation on the relationship between tax expense and profit before taxation is as follows:
2014 2013
RM000 RM000
Tax calculated at tax rate of 25% 187,908 215,251

Effect of different tax rates (5,934) 950
Income not subject to tax (15,455) (14,409)
Expenses not deductible for tax purposes 3,534 3,454
Under accrual in prior year 152 176
170,205 205,422
(ac) Sources and uses of charity funds
2014 2013
RM000 RM000
Sources of charity funds

Balance as at 1 January 633 267
Non-shariah compliance income 466 366
Non-shariah compliance income 44
Total sources of charity funds during the financial year 1,143 633
Uses of charity funds

Contribution to non-profit organisation 343
Contribution to government agencies 250
Total uses of charity funds during the financial year 593
Undistributed charity funds as at 31 December 550 633
57 AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

The Financial Statements have been authorised for issue by the Board of Directors in accordance with a resolution of the Directors dated 9 March
2015.
307
ANNUAL REPORT 2014
58 REALISED AND UNREALISED PROFITS
The determination of realised and unrealised profits is based on the Guidance of Special Matter No. 1, Determination of Realised and Unrealised
Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute
of Accountants on 20 December 2010 and the directive of Bursa Malaysia Securities Berhad.
The marked-to-market gains and losses on derivative contracts and financial investments at fair value through profit or loss that remain outstanding
in the financial statements of the Group as at 31 December 2014 and 31 December 2013 are deemed unrealised and should be read together
as it reflects the nature of the transactions and financial positon of the Group. In addition, the unrealised retained earnings of the Group as disclosed
above excludes the translation gains and losses on monetary items denominated in a currency other than the functional currency, as these gains
and losses are incurred in the ordinary course of business of the Group, and are hence deemed as realised.

2014 2013 2014 2013
RM000 RM000 RM000 RM000
Total retained earnings of the Group and subsidiaries

Realised 13,432,440 12,070,506 849,050 1,032,415
Unrealised (370,906) 182,063 392,809 273,643
13,061,534 12,252,569 1,241,859 1,306,058

Total share of retained earnings from associates
Realised 703,757 627,592
Unrealised 2,507 1,290
Total share of retained earnings from joint ventures

Realised 104,684 101,803
Unrealised 1 1
13,872,483 12,983,255 1,241,859 1,306,058

Consolidation adjustments 188,250 (767,897)
Total group retained earnings as per consolidated financial statements 14,060,733 12,215,358 1,241,859 1,306,058
308
table of
CONTENTS
BASEL II PILLAR 3 DISCLOSURES
Abbreviations ........... 310
Overview of Basel II and Pillar 3 ........... 312
Risk Management Overview ........... 313
Shariah Governance Disclosure ........... 318
Capital Management ........... 319
Credit Risk ........... 334
Securitisation ........... 391
Market Risk ........... 399
Operational Risk ........... 401
Equity Exposures in Banking Book ........... 402
Interest Rate Risk/Rate of Return
Risk in The Banking Book ........... 404
ANNUAL REPORT 2014 CIMB GROUP HOLDINGS BERHAD
BASEL II PILLAR 3 DISCLOSURES

ABBREVIATIONS
A-IRB Approach : Advanced Internal Ratings Based Approach

BI : Banking Institutions
BIA : Basic Indicator Approach
BNM : Bank Negara Malaysia
BRC : Board Risk Committee
CAF : Capital Adequacy Framework and, in some instances referred to as the Risk-Weighted Capital Adequacy Framework
CAFIB : Capital Adequacy Framework for Islamic Banks
CAR : Capital Adequacy Ratio and, in some instances referred to as the Risk-Weighted Capital Ratio
CBSM : Capital and Balance Sheet Management
CBTM : Corporate Banking, Treasury and Markets
CCR : Counterparty Credit Risk
CIMBBG : CIMB Bank, CIMBISLG, CIMBTH, CIMB Bank PLC (Cambodia), CIMB Factorlease Berhad and non-nancial subsidiaries
CIMBIBG : CIMB Investment Bank Berhad, CIMB Futures Sdn Bhd and non-nancial subsidiaries
CIMBISLG : CIMB Islamic Bank Berhad, CIMB Islamic Nominees (Asing) Sdn Bhd and CIMB Islamic Nominees (Tempatan) Sdn Bhd
CIMBGH Group : Group of Companies under CIMB Group Holdings Berhad
CIMBTH : CIMB Thai Bank Public Company Ltd and its subsidiaries
CIMB Bank : CIMB Bank Berhad and CIMB Bank (L) Ltd (as determined under the CAF (Capital Components) and CAFIB (Capital
Components) to include its wholly owned offshore banking subsidiary company)
CIMB Group or the Group : Collectively CIMBBG, CIMBIBG and CIMBISLG as described within this disclosure
CIMB IB : CIMB Investment Bank Berhad
CIMB Islamic : CIMB Islamic Bank Berhad
CRM : Credit Risk Mitigants
CRO : Group Chief Risk Ofcer
CSA : Credit Support Annexes, International Swaps and Derivatives Association Agreement
DFIs : Development Financial Institutions
EAD : Exposure At Default
EaR : Earnings-at-Risk
ECAIs : External Credit Assessment Institutions
EL : Expected Loss
EP : Eligible Provision
EVE : Economic Value of Equity
EWRM : Enterprise Wide Risk Management
Group EXCO : Group Executive Committee
F-IRB Approach : Foundation Internal Ratings Based Approach
Fitch : Fitch Ratings
310
CIMB & YOU
ABBREVIATIONS (CONTINUED)
GCC : Group Credit Committee

GCPRC : Group Credit Policy & Portfolio Risk Committee
GIBD : Group Islamic Banking Division
GMRC : Group Market Risk Committee
GRC : Group Risk Committee
GRD : Group Risk Division
GUC : Group Underwriting Committee
HPE : Hire Purchase Exposures
IRB Approach : Internal Ratings Based Approach
IRRBB : Interest Rate Risk in the Banking Book
KRI : Key Risk Indicators
LGD : Loss Given Default
MARC : Malaysian Rating Corporation Berhad
MDBs : Multilateral Development Banks
Moodys : Moodys Investors Service
MTM : Mark-to-Market and/or Mark-to-Model
ORM : Operational Risk Management
ORMF : Operational Risk Management Framework
OTC : Over the Counter
PD : Probability of Default
PSEs : Non-Federal Government Public Sector Entities
PSIA : Prot Sharing Investment Accounts
QRRE : Qualifying Revolving Retail Exposures
R&I : Rating and Investment Information, Inc
RAM : RAM Rating Services Berhad
RAROC : Risk Adjusted Return on Capital
RORBB : Rate of Return Risk in the Banking Book
RRE : Residential Real Estate
RWA : Risk-Weighted Assets
RWCAF : Risk-Weighted Capital Adequacy Framework and, in some instances referred to as the Capital Adequacy Framework
S&P : Standard & Poors
SA : Standardised Approach
SMEs : Small and Medium Enterprises
SNC : Shariah Non Compliance
VaR : Value at Risk
311
OVERVIEW OF BASEL II AND PILLAR 3
The International Convergence of Capital Measurement and Capital Standards: A Revised Framework or commonly known as Basel II issued by the Bank of
International Settlements, as adopted by BNM seeks to increase the risk sensitivity in capital computations and prescribed a number of different approaches to
risk calculation that allows the use of internal models to calculate regulatory capital. The particular approach selected must commensurate with the nancial
institutions risk management capabilities. The Basel II requirements are stipulated within three broad Pillars or sections.
Pillar 1 focuses on the minimum capital measurement methodologies and their respective qualifying criteria to use specied approaches available to calculate
the RWA for credit, market and operational risks. CIMB Bank and its subsidiaries including CIMBISLG which offers Islamic banking nancial services (collectively
known as CIMBBG); apply the IRB Approach for its major credit exposures. The IRB Approach prescribes two approaches, the F-IRB Approach and A-IRB
Approach. Under F-IRB Approach, the Group applies its own PD and the regulator prescribed LGD, whereas under the A-IRB Approach, the Group applies its
own risk estimates of PD, LGD and EAD. The remaining credit exposures are on the SA and where relevant, will progressively migrate to the IRB Approach.
CIMBIB and its subsidiaries (CIMBIBG) adopt the SA for credit risk. CIMBBG, CIMBISLG and CIMBIBG (collectively known as CIMB Group or the Group)
adopt the SA for market risk and BIA for operational risk.
Pillar 2 focuses on how sound risk management practices should be implemented from the Supervisory Review perspective. It requires nancial institutions to
make their own assessments of capital adequacy in light of their risk prole and to have a strategy in place for maintaining their capital levels.
Pillar 3 complements Pillar 1 and Pillar 2 by presenting disclosure requirements aimed to encourage market discipline in a sense that every market participant
can assess key pieces of information attributed to the capital adequacy framework of nancial institutions.
Frequency of Disclosure
The qualitative disclosures contained herein are required to be updated on an annual basis and more frequently if signicant changes to policies are made. The
capital structure and adequacy disclosures are published on a quarterly basis. All other quantitative disclosures are published semi-annually in conjunction with
the Groups half yearly reporting cycles.
Medium and Location of Disclosure
These disclosures are also available on CIMBGH Groups corporate website (www.cimb.com). The individual disclosures for CIMB Bank, CIMB Islamic and
CIMB IB are also available at the CIMBGH Groups corporate website.
Basis of Disclosure
These disclosures herein are formulated in accordance with the requirements of BNMs guidelines on RWCAF (Basel II) Disclosure Requirements (Pillar 3) and
CAFIB Disclosure Requirements (Pillar 3). These disclosures published are for the year ended 31 December 2014.
The basis of consolidation for nancial accounting purposes is described in the 2014 nancial statements. The capital requirements are generally based on the
principles of consolidation adopted in the preparation of nancial statements. During the nancial year, the Group did not experience any impediments in the
distribution of dividends. There were also no capital deciencies in any subsidiaries that are not included in the consolidation for regulatory purposes.
The term credit exposure as used in this disclosure is a prescribed denition by BNM based on the RWCAF (Basel II) Disclosure Requirements (Pillar 3) and
CAFIB Disclosure Requirements (Pillar 3). Credit exposure is dened as the estimated maximum amount a banking institution may be exposed to acounterparty
in the event of a default or EAD. This differs with similar terms applied in the 2014 nancial statements as the credit risk exposure denition within the ambit of
accounting standards represent the balance outstanding as at balance sheet date and do not take into account the expected undrawn contractual commitments.
Therefore, information within this disclosure is not directly comparable to that of the 2014 nancial statements.
Any discrepancies between the totals and sum of the components in the tables contained in this disclosure are due to actual summation method and then
rounded up to the nearest thousands.
These disclosures have been reviewed and veried by internal auditors and approved by the Board of Directors of CIMBGH Group.
312
CIMB & YOU
RISK MANAGEMENT OVERVIEW
The Group embraces risk management as an integral component of the Groups business, operations and decision-making process. In ensuring that the Group
achieves optimum returns whilst operating within a sound business environment, the risk management teams are involved at the early stage of the risk taking
process by providing independent inputs including relevant valuations, credit evaluations, new product assessments and quantication of capital requirements.
These inputs enable the business units to assess the risk-vs-reward value of their propositions and thus enable risk to be priced appropriately in relation to the
return.
The objectives of CIMB Groups risk management activities are to:
Identify the various risk exposures and capital requirements;
Ensure risk taking activities are consistent with risk policies and the aggregated risk position are within the risk appetite as approved by the Board; and
Create shareholder value through proper allocation of capital and facilitate development of new businesses.
Enterprise Wide Risk Management Framework
CIMB Group employs an EWRM framework as a standardised approach to manage its risk and opportunity effectively. The EWRM framework provides the
Board and management with a tool to anticipate and manage both the existing and potential risks, taking into consideration changing risk proles as dictated
by changes in business strategies, operating and regulatory environment and functional activities.
The key components of the Groups EWRM framework are represented in the diagram below:
RISK APPETITE STATEMENT
GOVERNANCE
COMPREHENSIVE RISK RISK MONITORING ANALYTICS

ASSESSMENT MEASUREMENT AND CONTROL AND REPORTING
SOUND CAPITAL MANAGEMENT
RISK BASED PERFORMANCE MEASUREMENT
The design of the EWRM framework involves a complementary top-down strategic and bottom-up tactical risk management approach with formal policies
and procedures addressing all areas of signicant risks for the Group.
a) Risk Appetite Statement
Risk appetite denes the amount and type of risks that the Group is able and willing to accept in pursuit of its strategic and business objectives. In CIMB
Group, the risk appetite is linked to strategy development and business and capital management plans. It takes into account not only growth, revenue and
commercial aspirations, but also the capital and liquidity positions and risk management capabilities and strengths, including risk systems, processes and
people. Going forward, risk appetite statements will be formulated for key business units as well as incorporate stress testing.
CIMB Group has a dedicated team that facilitates the risk appetite setting process including reviewing, monitoring and reporting. BRC and GRC receive
monthly reports on compliance with the risk appetite.
b) Governance
A strong risk governance structure is what binds the EWRM framework together. The Board of Directors is ultimately responsible for the Groups risk
management activities, and provides strategic direction through the Risk Appetite Statement and relevant risk management frameworks for the Group.
The implementation and administration of the EWRM framework are effected through the three lines of defence model with oversight by the risk governance
structure which consists of various risk committees, as described below. GRD is principally tasked to assist the various risk committees and undertakes
the performance of independent risk management, monitoring and reporting functions of the EWRM. The implementation of the EWRM is also subjected
to the independent assurance and assessment by Group Internal Audit Division.
313
RISK MANAGEMENT OVERVIEW (CONTINUED)
Enterprise Wide Risk Management Framework (continued)
c) Comprehensive Risk Assessment
Comprehensive Risk Assessment provides the process for the identication of the Groups material risks, from the perspectives of impact on the Groups
nancial standing and reputation. Apart from the annual comprehensive risk assessment exercise, the Groups material risks are identied on an on-going
basis as well as part of the consideration for any strategic projects, including new product development.
d) Risk Measurement
Consistent and common methodologies of Risk Measurement allow for the Group to aggregate and compare risks across business units, geographies and
risk types. Further, it provides a tool for the Board and Senior Management to assess the sufciency of its liquidity surplus and reserves, and health of its
capital position under various economic and nancial situations.
e) Monitoring and Control
Various risk management tools are employed to Monitoring and Control the risk taking activities within the Group. These include limit monitoring, hedging
strategies and clearly documented control processes. These controls are regularly monitored and reviewed in the face of changing business needs, market
conditions and regulatory changes.
f) Analytics and Reporting
Timely reporting and meaningful analysis of risk positions are critical to enable the Board and Senior Management to exercise control over material
exposures and make informed business decisions.
g) Sound Capital Management
The Groups capital resources are continuously assessed and managed to undertake its day-to-day business operations and risk-taking activities, including
considerations for its business expansion and growth. Each year internal capital targets will be set and capital will be allocated to each business units based
on the respective business plans, budgeted prot and targeted Risk Adjusted Return on Capital (RAROC).
h) Risk Based Performance Measurement
Business units economic protability will be measured having considered both its risks and capital consumption. The adoption of a risk-based performance
measurement allows for performance and protability of different business units to be compared on a common yardstick.
Risk Governance
In the year under review, the Board approved a revision to the Groups risk governance structure, with the establishment of several risk committees, thereby
allowing for more thorough Group-wide deliberation at a specialised risk level.
At the apex of the governance structure are the respective Boards, which decides on the entitys Risk Appetite corresponding to its business strategies. In
accordance to the Groups risk management structure, the BRC reports directly into each Board and assumes responsibility on behalf of the Board for the
supervision of risk management and control activities. The BRC determines the Groups risk strategies, policies and methodologies, keeping them aligned with
the principles within the Risk Appetite Statement. The BRC also oversees the implementation of the EWRM framework and provides strategic guidance and
reviews the decisions of the GRC.
In order to facilitate the effective implementation of the EWRM framework, the BRC has established various risk committees within the Group with distinct lines
of responsibilities and functions, which are clearly dened in the terms of reference. The composition of the committees includes senior management and
individuals from business divisions as well as divisions which are independent from the business units.
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CIMB & YOU
Board of Directors
Board Risk Committee

Determine the Groups risk strategies, policies and methodologies Board Shariah Committee
Oversee implementation of the EWRM framework, provide strategic Oversee all Shariah matters of the Group
guidance and review the decisions of the GRC
Group Risk Committee

Ensure adherence to the Board approved risk appetite
Outline key risks and strategies to improve risk management across the Group
Group Operational Risk Committee RISK MANAGEMENT OVERVIEW (CONTINUED)

Review key operational risks impacting or potentially impacting the Group The responsibility of the supervision of the risk
Review the appropriateness of the framework to manage the risk management functions is delegated to the GRC, which
Review on-going or planned remediation for known risks reports directly to the BRC. The GRC performs the
Review all events leading material non-compliance including Shariah non-compliance
oversight function on overall risks undertaken by the
Group Reputation Risk Committee Group in delivering its business plan vis--vis the stated
Ensure appropriateness of reputational risk policies risk appetite of the Group. The GRC is further supported
Review key reputational risks impacting CIMB Group and track feedback from management in response to by specialised risk committees, namely Group Credit
these risks Policy & Portfolio Risk Committee, Group Market Risk
Group Asset Liability Management Committee (GALCO) Committee, Group Operational Risk Committee, Group
Oversee management of the Groups overall balance sheet, net interest income/margin, liquidity risk and interest rate Asset Liability Management Committee and Basel
risk in the banking book (IRRBB)/rate of return in the banking book (RORBB) Steering Committee, with each committee providing
Ensure risk prole is kept within the established risk appetite/limits oversight and responsibility for specic risk areas
Malaysia Asset Liability Management Committee (MALCO) namely, credit risk, market risk, operational risk, liquidity
Oversee management of the overall balance sheet, net interest income/margin, liquidity risk and IRRBB/ risk and capital risk.
RORBB for CIMBs Malaysian entities
Ensure risk prole is kept within the established risk appetite/limits The revised structure of the Groups Risk Committees
Group Credit Policy & Portfolio Risk Committee and an overview of the respective committees roles
Review, recommend for Group EXCO and approve or concur credit applications from entities across CIMB Group and responsibilities are as follows:
Establish regional specic standards as appropriate and ensure alignment with the broad credit policies, processes
and risk appetite framework within CIMB Group
Ensure Group overall loan portfolio/nancing meets regulatory guidelines and approved internal policies , procedures
and risk appetite
Group Credit Committee
Review, recommend for Group EXCO and approve or concur credit applications from entities across CIMB
Group
Establish regional specic standards as appropriate and ensure alignment with the broad credit policies,
processes and risk appetite framework within CIMB Group
Ensure Group overall loan portfolio/nancing meets regulatory guidelines and approved internal policies,
procedures and risk appetite
Consumer Bank Credit Committee
Review and approve credit/nancing applications in relation to Malaysian and non-Malaysian centric
customer groups exposures originating from business units within Consumer Banking and CIMB
Investment Bank
Regional Private Banking Credit Committee
Review and consider credit applications originating from the Group Private Banking, and approve or concur
or recommend them to the next appropriate credit committee, EXCO or Board for approval
Group Market Risk Committee
Ensure adherence to the Board approved market risk appetite
Articulate key market risks and the corresponding mitigating controls
Group Underwriting Committee
Review and approve or concur primary and secondary market deals for debt and equity instruments for the
Group
Ensure adequate pricing to compensate for risk and sufcient measures are taken to mitigate against
adverse market movements
Ensure proper governance around unsuccessful transactions
Basel Steering Committee
Oversee implementation of Basel regulations in the banking entities under the Group
315
Risk Governance (continued)
Similar risk committees are set-up in each of the Groups overseas subsidiaries in their respective jurisdictions. Whilst recognising the autonomy of the local
jurisdiction and compliance to local requirements, the Group also strives to ensure a consistent and standardised approach in its risk governance process. As
such, the relevant Group and Regional committees have consultative and advisory responsibilities on regional matters across the Group. This structure increases
the regional communication, sharing of technical knowledge and support towards managing and responding to risk management issues, thus allowing the
Board to have a comprehensive view of the activities in the Group.
Three-Lines of Defence
The Groups risk management approach is based on the three-lines of defence concept whereby risks are managed from the point of risk-taking activities. This
is to ensure clear accountability of risks across the Group and risk management as an enabler of the business units. As a rst line of defence, the line
management, including all business units and units which undertake client facing activities, are primarily responsible for risk management on a day-to-day basis
by taking appropriate actions to mitigate risks through effective controls. The second line of defence provides oversight functions, performs independent
monitoring of business activities and reports to management to ensure that the Group is conducting business and operating within the approved appetite and
in compliance to regulations. The third line of defence is Group Internal Audit Division which provides independent assurance to the Boards that the internal
controls and risk management activities are functioning effectively.
The Roles of CRO and Group Risk Division
Within the second line of defence is GRD, a function independent of business units that assists the Groups management and various risk committees in the
monitoring and controlling of the Groups risk exposures.
The organisational structure of GRD is made of two major components, namely the Chief Risk Ofcers and the Risk Centres of Excellence. GRD is headed by
the Group Chief Risk Ofcer who is appointed by the Board to spearhead risk management functions and implementation of the Enterprise-Wide Risk
Management. The CRO:
a) Actively engages the Board and senior management on risk management issues and initiatives.
b) Maintains an oversight on risk management functions across all entities within the Group. In each country of operations, there is a local Chief Risk Ofcer
or a Country Risk Lead Ofcer, whose main function is to assess and manage the enterprise risk and regulators in the respective country.
The GRD teams are organised into several Risk Centres of Excellence in order to facilitate the implementation of the Groups EWRM framework. The Risk
Centres of Excellence consisting of Risk Analytics & Infrastructure, Market Risk, Operational Risk, Asset Liability Management, Credit Risk and Shariah Risk
Management Centres of Excellence are specialised teams of risk ofcers responsible for the active oversight of group-wide functional risk management.
a) Risk Analytics & Infrastructure Centre of Excellence
Risk AnaIytics & Infrastructure Centre of Excellence focuses on credit capital quantication and analytics including the implementation of group-wide Basel
II framework; corporate credit portfolio analytics and reporting; and credit concentration measurement and monitoring.
b) Market Risk Centre of Excellence
In propagating and ensuring compliance to the market risk framework, the Market Risk Centre of Excellence reviews treasury trading strategies, analyses
positions and activities vis--vis changes in the nancial market and performs mark-to-market valuation. It also coordinates capital market product
deployments.
c) Operational Risk Centre of Excellence
The Operational Risk Centre of Excellence provides the methodology and process for the identication, assessment, reporting, mitigation and control of
operational risks by the respective risk owners across the Group. It provides challenge and oversight over the execution of this framework by the rst line
of defence.
316
CIMB & YOU
The Roles of CRO and Group Risk Division (continued)
d) Asset Liability Management Centre of Excellence
It is primarily responsible for the independent monitoring and assessment of the Groups asset and liability management process governing liquidity risk
and interest/benchmark rate risk as well as recommending policies and methodologies to manage the said risks.
e) Credit Risk Centre of Excellence
The Credit Risk Centre of Excellence is dedicated to the assessment, measurement, management and monitoring of credit risk of CIMB Group. It ensures
a homogenous and consistent approach to:
Credit Risk Policies and Procedures;
Credit Risk Models;
Credit Risk Methodologies; and
Portfolio Analytics,
as well as a holistic and integrated approach to identication, assessment, decision-making and reporting of credit risk of the Group.
f) Shariah Risk Management Centre of Excellence
The Shariah Risk Management Centre of Excellence (SRM CoE) formulates Shariah Risk Management Framework (SRMF) and provides guidance and
training on the SNC Risk Management (SRM) to enable the rst line of defence to identify, assess, monitor and control SNC risk in their Islamic business
operations and activities.
In addition to the above Risk Centres of Excellence, Regional Risk was established with the objective of overseeing the risk management functions of the regional
ofces as well as the Groups unit trust and securities businesses. Regional Risk also houses the validation team.
The regional ofces and the respective teams in risk management units within the unit trust business and securities businesses identify, analyse, monitor, review
and report the relevant material risk exposures of each individual country and/or businesses.
The Regional Risk Validation Team is independent from the risk taking units and model development team. The function of this unit is to perform validation, as
guided by regulatory guidelines and industry best practices on Basel related risk models and components comprising credit risk, traded risk, non traded risk
and other Basel related risk models. The unit provides recommendations to the modelling team and the business users and reports to Regional Risk. The
ndings and recommendations will be reported to GRC and BRC.
In ensuring a standardised approach to risk management across the Group, all risk management teams within the Group are required to conform to the Groups
EWRM framework, subject to necessary adjustments required for local regulations. For branches and subsidiaries without any risk management department, all
risk management activities will be centralised at relevant Risk Centres of Excellence. Otherwise, the risk management activities will be performed by the local
risk management team with matrix reporting line to respective Risk Centres of Excellence.
Strategies and Processes for Various Risk Management
Information on strategies and processes for Credit Risk, Market Risk, Operational Risk and Interest Rate Risk/Rate of Return Risk in the Banking Book are
available in the later sections.
317
SHARIAH GOVERNANCE DISCLOSURE
The Islamic business in CIMB Group is managed and overseen by the Group Islamic Banking Division (GIBD). Its products and services are managed in strict
compliance with Shariah under the guidance of CIMB Board Shariah Committee.
The Board of Directors of CIMB Group, CIMB Investment Bank Berhad, and CIMB Bank Berhad delegate and empower the Board of Directors of CIMB Islamic
Bank to undertake the overall oversight function of the Islamic businesses and operations of the whole CIMB Group, which in turn delegates the Shariah
governance functions to the Board Shariah Committee established under CIMB Islamic Bank.
Whilst the Board of Directors is accountable for the overall Shariah governance and compliance of the Islamic businesses in CIMB Group, the day-to-day running
of Shariah management is performed by the Group CEO and CEO of Group Islamic Banking.
Group Shariah & Islamic Legal (GSIL) which is basically a component of the Management serves as a coordinator and manager of the overall Shariah governance
and compliance of the Islamic businesses in CIMB. In performing its roles, GSIL is complemented by the roles of the Shariah Compliance Functions/Units
consisting of Shariah Compliance Review Unit, Shariah Audit and Shariah Risk Management Centre of Excellence and Shariah Research.
The Group operates on a dual banking leverage model that utilises the full resources and infrastructure of CIMB Group. Accordingly, all divisions and staff of
CIMB Group are responsible for complying with Shariah in their respective Islamic business activities.
Monitoring of Shariah compliance and Shariah governance process is carried out through Shariah Compliance Review and Shariah Audit functions, supported
by Shariah Risk Management control process and internal Shariah Research capacity. In CIMB Group, the Shariah Compliance Review, Shariah Audit and
Shariah Risk Management functions reside in Group Compliance, Group Internal Audit Division and Group Risk Division respectively, supported by GSIL.
In summary, the ownership of the whole Shariah governance framework is under the purview of GIBD with the nexus of its oversight function residing under
GSIL. The implementation of the various components of the Shariah governance framework therefore falls within the purview of Group Risk Division, Group
Internal Audit Division, Group Compliance and Shariah Research (under GSIL) and it is looked at jointly and severally by the four divisions/departments.
Rectification process of Shariah non-compliance income occurring during the year
During the year ended 31 December 2014, an amount of RM508,827 was recorded as Shariah non-compliance (SNC) income. For the purpose of rectication,
the stated amount will be channelled to the approved charitable bodies accordingly.
318
CIMB & YOU
CAPITAL MANAGEMENT
Key Capital Management Principles
The key driving principles of Groups capital management policies are to diversify its sources of capital to allocate capital efciently, and achieve and maintain an
optimal and efcient capital structure of the CIMBGH Group, with the objective of balancing the need to meet the requirements of all key constituencies,
including regulators, shareholders and rating agencies.
This is supported by the Capital Management Plan which is centrally supervised by the Group EXCO who periodically assess and review the capital requirements
and source of capital across the Group, taking into account all on-going and future activities that consume or create capital, and ensuring that the minimum
target for capital adequacy is met. Quarterly updates on capital position of the Group are also provided to the Board of Directors.
Included in the annual Capital Management Plan is the establishment of the internal minimum capital adequacy target which is substantially above the minimum
regulatory requirement. In establishing this internal capital adequacy target, the Group considers many critical factors, including, amongst others, phasing-in of
the capital adequacy requirement and capital buffer requirements, credit rating implication, current and future operating environment and peer comparisons.
Capital Structure and Adequacy
The relevant entities under the Group have issued various capital instruments pursuant to the respective regulatory guidelines, including Tier 2 subordinated
debt, innovative and non-innovative Tier 1 hybrid securities that qualify as capital pursuant to the RWCAF and CAFIB issued by BNM. However, with the
implementation of Basel III under the Capital Adequacy Framework (Capital Components) beginning 1 January 2013, these capital instruments are subject to a
gradual phase-out treatment which will eventually result in a full derecognition by 1 January 2022. Therefore, in order for the Group to maintain adequate capital
it has issued a few Basel III compliant instruments during the nancial year and will continually review potential future issuances under the Capital Management
Plan. Notes 27 to 29 in CIMBGH Financial Statement show the summary of terms and conditions of the capital instruments.
In addition to the above mentioned capital issuance, the Group has also increased CIMB Banks Common Equity Tier 1 capital via rights subscriptions. This
exercise was part of the reinvestment of cash dividend surplus arising pursuant to the implementation of the Dividend Reinvestment Scheme at CIMBGH. The
Dividend Reinvestment Scheme was announced by the Group on 18 January 2013.
The components of eligible regulatory capital are based on the Capital Adequacy Framework (Capital Components). The minimum regulatory capital adequacy
requirements in 2014 for the Common Equity Tier 1 ratio, Tier 1 ratio and Total Capital ratio are 4.0%, 5.5% and 8.0% respectively.
The tables below present the Capital Position of CIMBBG, CIMBISLG and CIMBIBG respectively.
319
CAPITAL MANAGEMENT (CONTINUED)
Capital Structure and Adequacy (continued)
Table 1(a): Capital Position for CIMBBG
CIMBBG
(RM000) 2014 2013
Common Equity Tier 1 capital
Other reserves 23,197,846 18,954,705
Qualifying non-controlling interests 257,010 243,991
Less Proposed dividend (753,000) (752,000)
Common Equity Tier 1 capital before regulatory adjustments 27,488,879 22,578,106

Goodwill (4,965,323) (4,890,179)
Deferred Tax Assets (314,145) (263,926)
Investment in capital instruments of unconsolidated nancial and insurance/takaful entities (144,137)
Shortfall of eligible provisions to expected losses (280,596) (282,726)
Others (738,239) (1,811,720)
Common equity Tier 1 capital after regulatory adjustments/total 20,097,253 14,455,037
Additional Tier 1 capital

Perpetual preference shares 160,000 180,000
Non-innovative Tier 1 capital 800,000 900,000
Innovative Tier 1 Capital 1,289,440 1,450,620
Qualifying capital instruments held by third parties 51,075 48,180
Additional Tier 1 capital before regulatory adjustments 2,300,515 2,578,800

Investments in Additional Tier 1 capital instruments of unconsolidated nancial and insurance/takaful entities (349)
Additional Tier 1 capital after regulatory adjustments 2,300,166 2,578,800
Total Tier 1 capital after regulatory adjustments 22,397,419 17,033,837
320
CIMB & YOU
Table 1(a): Capital Position for CIMBBG (continued)
CIMBBG
(RM000) 2014 2013
Tier 2 Capital
Subordinated notes 6,050,000 6,050,000
Redeemable Preference Shares 29,740 29,740
Qualifying capital instruments held by third parties 378,488 30,471
Portfolio impairment allowance and regulatory reserves 552,993 486,766
Tier 2 capital before regulatory adjustments 7,011,221 6,596,977

Investments in capital instruments of unconsolidated nancial and insurance/takaful entities (577,946) (800,439)
Total Tier 2 Capital 6,433,275 5,796,538
Total Capital 28,830,694 22,830,375
RWA
Credit risk 166,270,354 145,845,320
Market risk 16,080,788 13,826,815
Operational risk 15,851,297 14,615,092
Large Exposure risk requirement 502,139 423,320
Total RWA 198,704,578 174,710,547
Capital Adequacy Ratios

Common Equity Tier 1 Ratio 10.114% 8.274%
Tier 1 ratio 11.272% 9.750%
Total capital ratio 14.509% 13.068%
Total capital ratio increased in 2014 compared to 2013 due to an increase in Total Capital, mainly from the increase in Common Equity Tier 1 capital. The
increase in Credit risk RWA was mainly due to growth in the Corporate and Bank portfolios whilst the increase in Market risk RWA was due to increases in
options risk, equity risk and interest rate/benchmark rate risk exposures.
321
Table 1(b): Capital Position for CIMBISLG
CIMBISLG
(RM000) 2014 2013
Other reserves 1,991,470 1,600,928
Common Equity Tier 1 capital before regulatory adjustments 2,991,470 2,600,928

Goodwill (136,000) (136,000)
Others (115,688) (322,811)
Common equity Tier 1 capital after regulatory adjustments/total 2,627,183 2,105,471
Additional Tier 1 capital

Perpetual preference shares 206,000 63,000
Additional Tier 1 capital before regulatory adjustments 206,000 63,000

Total Tier 1 capital before regulatory adjustments 2,833,183 2,168,471
Tier 2 Capital
Subordinated notes 680,000 765,000
Tier 2 capital before regulatory adjustments 722,231 811,854

Investments in Additional Tier 1 capital instruments of unconsolidated nancial & insurance/takaful entities
Total Tier 2 Capital 722,231 811,854
Total Capital 3,555,414 2,980,325
RWA
Credit risk 20,438,939 18,769,386
Market risk 498,080 620,945
Operational risk 2,011,791 1,866,607
Total RWA 22,948,810 21,256,938

Tier 1 ratio 12.346% 10.201%
Total capital ratio increased in 2014 compared to 2013 as Total capital increased due to the increase in Other reserves. Credit risk RWA increased mainly due
to growth in exposures to Corporates. The reduction in Market risk RWA was due to the reduction in Foreign currency risk exposures, offset by the increase in
Benchmark rate risk exposures.
322
CIMB & YOU
Table 1(c): Capital Position for CIMBIBG
CIMBIBG
(RM000) 2014 2013
Ordinary shares 100,000 100,000
Other reserves 507,156 469,418
Common Equity Tier 1 capital before regulatory adjustments 607,156 569,418

Goodwill (964) (964)
Deductions in excess of Tier 2 capital (7,603) (6,921)
Investments in capital instruments of unconsolidated nancial and insurance/takaful entities (1,460)
Others (118) (271)
Common equity Tier 1 capital after regulatory adjustments/total 550,583 512,348
Tier 2 Capital
Redeemable Preference Shares 8 9
Tier 2 capital before regulatory adjustments 2,737 2,005

Investments in capital instruments of unconsolidated nancial and insurance/takaful entities (10,340) (8,926)
Total Tier 2 Capital
Total Capital 550,583 512,348
RWA
Credit risk 1,164,171 1,208,453
Market risk 52,221 58,618
Operational risk 697,657 758,001
Total RWA 1,914,049 2,025,072

Tier 1 ratio 28.765% 25.300%
The Total capital ratio increased in 2014 compared to 2013 mainly due to a decline in Total RWA, mainly Operational risk RWA, as well as an increase in Total
Capital on the back of an increase in Other Reserves. The Credit risk RWA decreased due to a reduction in interbank lending and reverse repo exposures whilst
the Market risk RWA decreased due to a reduction in interest rate and equity exposures, offset by an increase in FX exposures.
323
The tables below show the RWA under various exposure classes under the relevant approach and applying the minimum regulatory capital requirement at 8%
to establish the minimum capital required for each of the exposure classes:
Table 2(a): Disclosure on Total RWA and Minimum Capital Requirement for CIMBBG
2014 CIMBBG
Gross Net
Exposure Exposure Minimum
before after Total RWA capital
(RM000) CRM (SA)/ CRM (SA)/ after effects requirement at
Exposure Class EAD (IRB) EAD (IRB) RWA of PSIA 8%
Credit Risk
Exposures under the SA
Sovereign/Central Banks 39,223,305 39,223,305 306,247 306,247 24,500
Public Sector Entities 3,731,038 3,300,956 42,350 42,350 3,388
Banks, DFIs & MDBs 1,768,623 1,523,569 640,767 640,767 51,261
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 2,129,090 1,813,076 1,143,009 1,143,009 91,441
Corporate 18,684,160 17,110,261 17,962,206 17,962,206 1,436,977
Regulatory Retail 33,093,948 20,421,347 17,130,657 17,130,657 1,370,453
Residential Mortgages/RRE Financing 5,439,266 5,438,262 2,156,528 2,156,528 172,522
Higher Risk Assets 1,074,955 1,074,955 1,612,432 1,612,432 128,995
Other Assets 7,843,713 7,843,713 3,133,146 3,133,146 250,652
Securitisation 560,482 560,482 112,096 112,096 8,968
Total for SA 113,548,581 98,309,925 44,239,438 44,239,438 3,539,155
Exposures under the IRB Approach

Sovereign/Central Banks
Public Sector Entities
Banks, DFIs & MDBs 36,293,364 36,293,364 8,490,782 8,490,782 679,263
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers
Corporate 101,877,672 101,877,672 63,444,745 63,444,745 5,075,580
Residential Mortgages/RRE Financing 54,680,228 54,680,228 18,372,562 18,372,562 1,469,805
Qualifying Revolving Retail 12,569,925 12,569,925 8,094,940 8,094,940 647,595
Hire Purchase 14,225,438 14,225,438 9,359,652 9,359,652 748,772
Other Retail 22,556,435 22,556,435 7,360,824 7,360,824 588,866
Securitisation
Total for IRB Approach 242,203,062 242,203,062 115,123,506 115,123,506 9,209,880
324
CIMB & YOU
Table 2(a): Disclosure on Total RWA and Minimum Capital Requirement for CIMBBG (continued)
2014 CIMBBG
Gross Net
Total Credit Risk (Exempted Exposures and Exposures
under the IRB Approach After Scaling Factor) 355,751,644 340,512,988 166,270,354 166,270,354 13,301,628
Large Exposure Risk Requirement 502,139 502,139 502,139 502,139 40,171
Market Risk (SA)

Interest Rate Risk/Benchmark Rate Risk 12,781,308 12,781,308 1,022,505
Foreign Currency Risk 357,790 357,790 28,623
Equity Risk 738,832 738,832 59,107
Commodity Risk 6,508 6,508 521
Options Risk 2,196,350 2,196,350 175,708
Total Market Risk 16,080,788 16,080,788 1,286,463
Operational Risk (BIA) 15,851,297 15,851,297 1,268,104
Total RWA and Capital Requirement 198,704,581 198,704,581 15,896,366
325
2013 CIMBBG
Gross Net
Credit Risk
Public Sector Entities 3,400,296 2,288,450 20,490 20,490 1,639
Banks, DFIs & MDBs 6,996,517 6,996,517 619,243 619,243 49,539
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 1,662,262 1,577,923 921,884 921,884 73,751
Corporate 16,329,361 15,507,423 16,296,451 16,296,451 1,303,716
Regulatory Retail 28,276,065 17,243,562 14,951,135 14,951,135 1,196,091
Residential Mortgages/RRE Financing 3,922,320 3,922,320 1,525,871 1,525,871 122,070
Higher Risk Assets 1,098,029 1,098,029 1,647,043 1,647,043 131,763
Other Assets 6,796,373 6,834,960 2,607,731 2,607,731 208,618
Securitisation 815,187 815,187 331,994 331,994 26,559
Total for SA 112,170,069 99,158,032 38,941,243 38,941,243 3,115,299

Banks, DFIs & MDBs 27,886,979 27,886,979 6,774,574 6,774,574 541,966
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers
Corporate 88,843,244 88,843,244 53,161,663 53,161,663 4,252,933
Residential Mortgages/RRE Financing 48,820,074 48,820,074 17,250,917 17,250,917 1,380,073
Qualifying Revolving Retail 11,344,007 11,344,007 7,426,464 7,426,464 594,117
Hire Purchase 12,991,519 12,991,519 8,564,077 8,564,077 685,126
Other Retail 19,715,940 19,715,940 7,395,364 7,395,364 591,629
Securitisation
326
CIMB & YOU
2013 CIMBBG
Gross Net
(RM000) CRM(SA)/ CRM (SA)/ after effects requirement at
Large Exposure Risk Requirement 423,320 423,320 423,320 423,320 33,866
Market Risk (SA)

Interest Rate Risk/Benchmark Rate Risk 11,849,121 11,849,121 947,930
Equity Risk 463,907 463,907 37,113
Commodity Risk
Options Risk 973,607 973,607 77,889
Total Market Risk 13,826,815 13,826,815 1,106,145
Operational Risk (BIA) 14,615,092 14,615,092 1,169,207
327
CAPITAL MANAGEMENT (continued)
Table 2(b): Disclosure on Total RWA and Minimum Capital Requirement for CIMBISLG
2014 CIMBBG
Gross Net
Credit Risk
Sovereign/Central Banks 12,682,935 12,682,935 3,950 3,950 316
Banks, DFIs & MDBs 181,915 181,915 85,458 85,458 6,837
Takaful Operators, Securities Firms & Fund Managers 6,432 5,957 5,957 5,957 477
Corporate 1,092,010 629,802 539,136 539,136 43,131
Regulatory Retail 4,618,139 4,587,640 3,567,007 3,567,007 285,361
RRE Financing
Higher Risk Assets 575 575 863 863 69
Other Assets 250,029 250,029 250,029 250,029 20,002
Securitisation 3,485 3,485 697 697 56
Total for SA 18,835,521 18,342,338 4,453,096 4,453,096 356,248

Banks, DFIs & MDBs 1,594,212 1,594,212 300,458 300,458 24,037
Takaful Operators, Securities Firms & Fund Managers
Corporate 12,606,449 12,606,449 8,516,842 7,263,404 581,072
RRE Financing 8,374,426 8,374,426 2,698,247 2,698,247 215,860
Qualifying Revolving Retail 201,289 201,289 155,195 155,195 12,416
Hire Purchase 5,288,540 5,288,540 3,510,755 3,510,755 280,860
Other Retail 3,148,084 3,148,084 1,152,926 1,152,926 92,234
Securitisation
328
CIMB & YOU
Table 2(b): Disclosure on Total RWA and Minimum Capital Requirement for CIMBISLG (continued)
2014 CIMBBG
Gross Net
Large Exposure Risk Requirement
Market Risk (SA)

Benchmark Rate Risk 457,356 457,356 36,588
Equity Risk
Commodity Risk
Options Risk
Total Market Risk 498,080 498,080 39,846
Operational Risk (BIA) 2,011,791 2,011,791 160,943
329
2013 CIMBBG
Gross Net
Credit Risk
Sovereign/Central Banks 13,695,774 13,695,774 6,959 6,959 557
Banks, DFIs & MDBs 91,894 91,894 39,447 39,447 3,156
Takaful Operators, Securities Firms & Fund Managers 450
Corporate 244,876 236,014 156,996 156,996 12,560
Regulatory Retail 4,312,222 4,272,303 3,491,536 3,491,536 279,323
RRE Financing
Higher Risk Assets 575 575 863 863 69
Other Assets 48,408 48,408 48,408 48,408 3,873
Securitisation 20,466 20,466 4,093 4,093 327
Total for SA 18,414,666 18,365,435 3,748,302 3,748,302 299,864

Banks, DFIs & MDBs 2,427,898 2,427,898 519,390 519,390 41,551
Takaful Operators, Securities Firms & Fund Managers
Corporate 11,929,952 11,929,952 7,180,059 5,976,921 478,154
RRE Financing 8,292,858 8,292,858 2,767,897 2,767,897 221,432
Qualifying Revolving Retail 190,285 190,285 148,958 148,958 11,917
Hire Purchase 6,213,282 6,213,282 3,962,010 3,962,010 316,961
Other Retail 2,140,757 2,140,757 795,658 795,658 63,653
Securitisation
330
CIMB & YOU
2013 CIMBBG
Gross Net
Market Risk (SA)

Benchmark Rate Risk 385,827 385,827 30,866
Equity Risk
Commodity Risk
Options Risk
Operational Risk (BIA) 1,866,607 1,866,607 149,329
331
Table 2(c): Disclosure on Total RWA and Minimum Capital Requirement for CIMBIBG
2014 CIMBIBG
Gross Net Minimum
Exposure Exposure Total RWA capital
(RM000) before after after effects requirement at
Exposure Class CRM (SA) CRM (SA) RWA of PSIA 8%
Credit Risk
Sovereign/Central Banks 941,910 941,910
Banks, DFIs & MDBs 1,411,082 1,215,192 512,335 512,335 40,987
Insurance Cos, Securities Firms & Fund Managers 18,236 18,236 18,236 18,236 1,459
Corporate 41,457 41,457 41,457 41,457 3,317
Regulatory Retail 84,469 84,469 83,836 83,836 6,707
Residential Mortgages 77,771 77,771 45,702 45,702 3,656
Higher Risk Assets
Other Assets 462,647 462,647 462,606 462,606 37,008
Securitisation
Total Credit Risk 3,037,573 2,841,683 1,164,171 1,164,171 93,134
Market Risk (SA)

Interest Rate Risk 16,529 16,529 1,322
Equity Risk 231 231 18
Commodity Risk
Options Risk
Operational Risk (BIA) 697,657 697,657 55,813
Total RWA and Capital Requirement 1,914,049 1,914,049 153,124
332
CIMB & YOU
Table 2(c): Disclosure on Total RWA and Minimum Capital Requirement for CIMBIBG (continued)
2013 CIMBIBG
Gross Net Minimum
Exposure Exposure Total RWA capital
(RM000) before after after effects requirement at
Exposure Class CRM (SA) CRM (SA) RWA of PSIA 8%
Credit Risk
Sovereign/Central Banks 1,450,913 1,450,913
Banks, DFIs & MDBs 1,110,351 1,110,351 544,474 544,474 43,558
Insurance Cos, Securities Firms & Fund Managers
Corporate 50,154 50,154 50,154 50,154 4,012
Regulatory Retail 53,036 53,036 52,150 52,150 4,172
Residential Mortgages 57,807 57,807 32,408 32,408 2,593
Higher Risk Assets 1,083 1,083 1,624 1,624 130
Other Assets 527,691 527,691 527,641 527,641 42,211
Securitisation
Total Credit Risk 3,251,034 3,251,034 1,208,453 1,208,453 96,676
Market Risk (SA)

Interest Rate Risk 24,368 24,368 1,949
Equity Risk 3,066 3,066 245
Commodity Risk
Options Risk
Operational Risk (BIA) 758,001 758,001 60,640
Total RWA and Capital Requirement 2,025,072 2,025,072 162,006
333
Internal Capital Adequacy Assessment Process (ICAAP)
The Group has in place an EWRM framework that aligns ICAAP requirements into the Groups risk management and control activities. The coverage of ICAAP
includes the following:
a) Assessing the risk prole of the bank.
b) Assessing the capital adequacy and capital management strategies.
c) Monitoring compliance with regulatory requirement on capital adequacy.
d) Reporting to management and regulator on ICAAP.
e) Governance and independent review.
The full ICAAP cycle, from initial planning to regulatory submission and independent review, involves close coordination among the risk, capital and nance
functions together and business and support divisions. In line with BNMs guidelines on RWCAF (Basel II) ICAAP (Pillar 2) and CAFIB ICAAP (Pillar 2), the
Group has submitted its Board-approved ICAAP report to BNM in May 2014.
ICAAP will be implemented in phases to the overseas subsidiaries over the next few years. In 2014, risk-adjusted performance measurement measures were
linked to key performance indicators and compensation of the business units. Business strategy, pricing and business decisions also incorporated risk and
capital considerations.
CREDIT RISK
Credit risk, is dened as the possibility of losses due to the obligor, market counterparty or issuer of securities or other instruments held, failing to perform its
contractual obligations to the Group.
It arises primarily from traditional nancing activities through conventional loans, nancing facilities, trade nance as well as commitments to support customers
obligation to third parties, e.g. guarantees or kafalah contracts. In sales and trading activities, credit risk arises from the possibility that the Groups counterparties
will not be able or willing to full their obligation on transactions on or before settlement date. In derivative activities, credit risk arises when counterparties to
derivative contracts, such as interest/prot rate swaps, are not able to or willing to full their obligation to pay the positive fair value or receivable resulting from
the execution of contract terms. Credit risk may also arise where the downgrading of an entitys rating causes the fair value of the Groups investment in that
entitys nancial instruments to fall.
Credit Risk Management
The purpose of credit risk management is to keep credit risk exposure to an acceptable level vis--vis the capital, and to ensure the returns commensurate with
risks.
Consistent with the three-lines of defence model on risk management where risks are managed from the point of risk-taking activities, our Group implemented
the Risk-based Delegated Authority Framework. This Framework promotes clarity of risk accountability whereby the business unit, being the rst line of defence,
manages risk in a proactive manner with GRD as a function independent from the business units as the second line of defence. This enhances the collaboration
between GRD and the business units.
The Framework encompass the introduction of Joint Delegated Authority, enhanced credit approval process and a clear set of policies and procedures that
denes the limits and types of authority designated to the specic individuals. Our Group adopts a multi-tiered credit approving authority spanning from the
delegated authorities at business level, joint delegated authorities holders between business units and GRD, to the various credit committees. The credit
approving committees are set up to enhance the efciency and effectiveness of the credit oversight as well as the credit approval process for all credit
applications originating from the business units. Credit applications are independently evaluated by the Credit Risk Centre of Excellence team prior to submission
to the relevant committees for approval.
334
CIMB & YOU
CREDIT RISK (CONTINUED)
Credit Risk Management (continued)
The GRC with the support of GCPRC, Group Credit Committee, Consumer Bank Credit Committee, Regional Private Banking Credit Committee and GRD is
responsible for ensuring adherence to the Board approved credit risk appetite as well as the effectiveness of credit risk management. This amongst others
includes the reviewing and analysing of portfolio trends, asset quality, watch-list reporting and policy review. It is also responsible for articulating key credit risks
and mitigating controls.
Approaches or mitigating controls adopted to address concentration risk to any large sector/industry, or to a particular counterparty group or individual include
adherence to and compliance with single customer, country and global counterparty limits as well as the assessment of the quality of collateral.
Adherence to established credit limits is monitored daily by GRD, which combines all exposures for each counterparty or group, including off balance sheet items
and potential exposures. Limits are also monitored based on rating classication of the obligor and/or counterparty. For retail products, portfolio limits are
monitored monthly by GRD.
It is a policy of the Group that all exposures must be rated or scored based on the appropriate internal rating models, where available. Retail exposures are
managed on a portfolio basis and the risk rating models are designed to assess the credit worthiness and the likelihood of the obligors to repay their debts,
performed by way of statistical analysis from credit bureau and demographic information of the obligors. The risk rating models for non-retail exposures are
designed to assess the credit worthiness of the corporations or entities in paying their obligations, derived from risk factors such as nancial history and
demographics or company prole. These rating models are developed and implemented to standardise and enhance the credit underwriting and decision-
making process for the Groups retail and non-retail exposures.
Credit reviews and rating are conducted on the credit exposures at least on an annual basis and more frequently when material information on the obligor or
other external factors come to light.
The exposures are actively monitored, reviewed on a regular basis and reported regularly to GCPRC, GRC and BRC so that deteriorating exposures are
identied, analysed and discussed with the relevant business units for appropriate remedial actions including recovery actions, if required.
In addition to the above, the Group also employs VaR to measure credit concentration risk. The Group adopted the Monte Carlo simulation approach in the
generation of possible portfolio scenarios to obtain the standalone and portfolio VaR. This approach takes into account the credit concentration risk and the
correlation between obligors/counterparties and industries.
335
Summary of Credit Exposures
i) Gross Credit Exposures by Geographic Distribution
The geographic distribution is based on the country in which the portfolio is geographically managed. The following tables represent the Groups credit
exposures by geographic region:
Table 3(a): Geographic Distribution of Credit Exposures for CIMBBG
CIMBBG
(RM000) Other
Exposure Class Malaysia Singapore Thailand Countries Total
2014
Sovereign 34,910,400 2,221,259 1,885,322 206,325 39,223,305
Bank 24,722,514 10,042,772 4,861,951 2,165,789 41,793,026
Corporate 87,426,280 20,298,600 12,151,541 2,814,501 122,690,923
Mortgage/RRE Financing 51,249,626 3,973,781 4,896,086 60,119,494
HPE 14,225,438 14,225,438
QRRE 9,725,220 2,844,705 12,569,925
Other Retail 48,556,362 1,940,937 4,918,796 234,288 55,650,383
Other Exposures 5,930,520 405,312 3,118,309 25,008 9,479,150
Total Gross Credit Exposure 276,746,361 41,727,366 31,832,005 5,445,912 355,751,644
2013
Sovereign 40,834,479 1,742,875 2,182,756 87,552 44,847,661
Bank 17,472,157 8,955,640 9,915,690 1,940,304 38,283,791
Corporate 76,110,064 17,477,728 11,445,259 1,801,816 106,834,867
Mortgage/RRE Financing 46,117,316 3,103,393 3,521,684 52,742,394
HPE 12,991,519 12,991,519
QRRE 8,968,985 2,375,022 11,344,007
Other Retail 41,615,176 2,182,338 4,095,447 99,044 47,992,005
Other Exposures 5,650,895 265,186 2,679,463 114,045 8,709,589
Total Gross Credit Exposure 249,760,592 36,102,181 33,840,299 4,042,760 323,745,831
336
CIMB & YOU
Summary of Credit Exposures (continued)
i) Gross Credit Exposures by Geographic Distribution (continued)
Table 3(b): Geographic Distribution of Credit Exposures for CIMBISLG
CIMBISLG
(RM000) Other
2014
Sovereign 12,682,935 12,682,935
Bank 1,776,127 1,776,127
Corporate 13,704,890 13,704,890
RRE Financing 8,374,426 8,374,426
HPE 5,288,540 5,288,540
QRRE 201,289 201,289
Other Retail 7,766,223 7,766,223
Other Exposures 254,089 254,089
Total Gross Credit Exposure 50,048,520 50,048,520
2013
Sovereign 13,695,774 13,695,774
Bank 2,519,792 2,519,792
Corporate 12,175,278 12,175,278
RRE Financing 8,292,858 8,292,858
HPE 6,213,282 6,213,282
QRRE 190,285 190,285
Other Retail 6,452,979 6,452,979
337
i) Gross Credit Exposures by Geographic Distribution (continued)
Table 3(c): Geographic Distribution of Credit Exposures for CIMBIBG
CIMBIBG
(RM000) Other
2014
Sovereign 941,910 941,910
Bank 1,411,082 1,411,082
Corporate 59,693 59,693
Mortgage 77,771 77,771
HPE
QRRE
Other Retail 84,469 84,469
2013
Sovereign 1,450,913 1,450,913
Bank 1,110,351 1,110,351
Corporate 50,154 50,154
Mortgage 57,807 57,807
HPE
QRRE
338
CIMB & YOU
ii) Gross Credit Exposures by Sector
The following tables represent the Groups credit exposure analysed by sector:
Table 4(a): Distribution of Credit Exposures by Sector for CIMBBG
CIMBBG
Finance,
Wholesale Insurance/
and Retail Takaful, Real
Electricity, Trade, and Transport, Estate and Education,
(RM000) Primary Mining and Gas and Restaurants Storage and Business Health and
Exposure Class Agriculture Quarrying Manufacturing Water Supply Construction and Hotels Communication Activities Others Household Others* Total
2014
Sovereign 346,686 903,752 1,018,777 1,945,447 9,283,693 25,724,650 300 39,223,305
Bank 41,790,789 2,237 41,793,026
Corporate 4,605,100 7,078,586 12,518,318 4,679,310 10,383,779 14,425,822 12,635,986 35,245,808 8,361,179 3,157,272 9,599,762 122,690,923
Mortgage/RRE Financing 60,119,494 60,119,494
HPE 14,225,438 14,225,438
QRRE 12,569,925 12,569,925
Other Retail 307,585 37,333 892,260 24,772 645,110 1,451,257 170,486 2,023,102 4,420,950 45,673,996 3,532 55,646,851
Other Exposures 19,668 9,716 1,585 1,180 1,255,194 238,482 7,953,324 9,479,150
Total Gross Credit Exposure 5,279,039 7,115,919 13,420,294 5,609,419 12,047,667 15,878,259 14,751,919 89,598,585 38,747,498 135,746,126 17,556,919 355,751,644
2013
Sovereign 344,623 725,777 563,184 1,527,712 1,482,504 40,203,761 100 44,847,661
Bank 37,833,142 450,649 38,283,791
Corporate 4,022,383 3,366,997 11,679,944 4,462,384 10,372,167 13,313,985 13,522,634 30,520,584 5,085,992 2,264,028 8,223,770 106,834,867
Mortgage/RRE Financing 52,742,394 52,742,394
HPE 12,991,519 12,991,519
QRRE 11,344,007 11,344,007
Other Retail 367,852 24,337 783,392 18,855 542,510 1,338,654 131,648 1,572,147 3,389,534 39,817,798 5,279 47,986,725
Other Exposures 1,490 1,109 513,119 432,593 7,761,279 8,709,589
Total Gross Credit Exposure 4,734,858 3,391,333 12,463,335 5,208,505 11,477,861 14,653,748 15,181,994 71,921,495 49,562,528 119,159,745 15,990,428 323,745,832
* Others are exposures which are not elsewhere classied.
339
ii) Gross Credit Exposures by Sector (continued)
Table 4(b): Distribution of Credit Exposures by Sector for CIMBISLG
CIMBISLG
Finance,
Wholesale Islamic
2014
Sovereign 54,141 167,314 55,750 4,046,349 8,359,381 12,682,935
Bank 1,776,127 1,776,127
Corporate 944,860 27,976 1,196,500 204,145 3,010,313 923,911 1,604,958 3,954,241 1,009,995 722,480 105,510 13,704,890
RRE Financing 8,374,426 8,374,426
HPE 5,288,540 5,288,540
QRRE 201,289 201,289
Other Retail 17,634 7,240 60,156 2,162 80,371 163,849 7,517 218,369 41,456 7,121,403 46,066 7,766,223
Other Exposures 575 3,485 250,029 254,089
Total Gross Credit Exposure 1,016,636 35,217 1,256,657 206,306 3,257,998 1,087,761 1,668,224 9,995,662 9,414,317 21,708,137 401,605 50,048,520
2013
Sovereign 53,950 20,139 116,962 30,141 13,474,583 13,695,774
Bank 2,519,792 2,519,792
Corporate 713,510 30,462 1,144,072 100,446 3,262,071 705,600 1,482,718 3,855,904 646,960 18,707 214,828 12,175,278
RRE Financing 8,292,858 8,292,858
HPE 6,213,282 6,213,282
QRRE 190,285 190,285
Other Retail 16,049 2,373 65,974 1,952 78,415 157,293 7,731 222,437 57,891 5,799,918 42,948 6,452,979
Other Exposures 20,466 48,983 69,449
Total Gross Credit Exposure 783,508 32,835 1,210,045 122,537 3,457,449 862,893 1,520,589 6,598,133 14,199,900 20,515,050 306,759 49,609,698
Note: All sectors above are Shariah compliant.

.
340
CIMB & YOU
ii) Gross Credit Exposures by Sector (continued)
Table 4(c): Distribution of Credit Exposures by Sector for CIMBIBG
CIMBIBG
Finance,
Wholesale Insurance/
2014
Sovereign 940,083 1,828 941,910
Bank 1,411,082 1,411,082
Corporate 3,708 198 35,781 20,007 59,693
Mortgage 77,771 77,771
HPE
QRRE
Total Gross Credit Exposure 2,354,872 2,025 198,021 482,654 3,037,573
2013
Sovereign 1,450,913 1,450,913
Bank 1,110,351 1,110,351
Corporate 1 662 198 31,666 17,628 50,154
Mortgage 57,807 57,807
HPE
QRRE
Total Gross Credit Exposure 1 1,111,013 1,451,111 142,508 546,401 3,251,034
341
iii) Gross Credit Exposures by Residual Contractual Maturity
The following tables represent the Groups credit exposure analysed by residual contractual maturity:
Table 5(a): Distribution of Credit Exposures by Residual Contractual Maturity for CIMBBG
CIMBBG
(RM000) Less than 1 to More than
Exposure Class 1 year 5 years 5 years Total
2014
Sovereign 8,680,867 10,860,681 19,681,757 39,223,305
Bank 29,133,923 9,623,541 3,035,562 41,793,026
Corporate 35,746,876 45,812,206 41,131,841 122,690,923
Mortgage/RRE Financing 44,748 994,624 59,080,122 60,119,494
HPE 162,228 3,841,989 10,221,221 14,225,438
QRRE 12,569,925 12,569,925
Other Retail 3,613,690 4,386,810 47,649,883 55,650,383
Other Exposures 118,724 382,169 8,978,257 9,479,150
Total Gross Credit Exposure 90,070,981 75,902,019 189,778,644 355,751,644
2013
Sovereign 18,886,456 7,592,634 18,368,572 44,847,661
Bank 27,034,362 8,438,567 2,810,862 38,283,791
Corporate 34,830,560 42,624,014 29,380,293 106,834,867
Mortgage/RRE Financing 24,457 496,008 52,221,928 52,742,394
HPE 181,625 3,582,495 9,227,398 12,991,519
QRRE 11,344,007 11,344,007
Other Retail 3,051,765 5,540,652 39,399,587 47,992,005
Other Exposures 136,371 575,545 7,997,672 8,709,589
342
CIMB & YOU
iii) Gross Credit Exposures by Residual Contractual Maturity (continued)
Table 5(b): Distribution of Credit Exposures by Residual Contractual Maturity for CIMBISLG
CIMBISLG
2014
Sovereign 4,031,738 3,689,251 4,961,946 12,682,935
Bank 1,175,419 287,661 313,047 1,776,127
Corporate 3,049,193 4,766,017 5,889,680 13,704,890
RRE Financing 2,469 68,192 8,303,765 8,374,426
HPE 48,784 2,072,292 3,167,464 5,288,540
QRRE 201,289 201,289
Other Retail 83,012 437,063 7,246,148 7,766,223
Other Exposures 3,485 250,604 254,089
2013
Sovereign 5,118,254 2,073,749 6,503,771 13,695,774
Bank 2,043,418 397,525 78,849 2,519,792
Corporate 5,020,781 2,996,092 4,158,404 12,175,278
RRE Financing 2,536 42,427 8,247,895 8,292,858
HPE 49,226 1,761,313 4,402,743 6,213,282
QRRE 190,285 190,285
Other Retail 73,001 539,863 5,840,116 6,452,979
Other Exposures 20,466 48,983 69,449
343
iii) Gross Credit Exposures by Residual Contractual Maturity (continued)
Table 5(c): Distribution of Credit Exposures by Residual Contractual Maturity for CIMBIBG
CIMBIBG
2014
Sovereign 940,083 1,828 941,910
Bank 1,162,249 6,417 242,415 1,411,082
Corporate 1 1,120 58,571 59,693
Mortgage 1 1,432 76,338 77,771
HPE
QRRE
Other Retail 187 7,120 77,162 84,469
Other Exposures 368 462,280 462,647
Total Gross Credit Exposure 2,102,889 16,089 918,594 3,037,573
2013
Sovereign 1,448,353 2,560 1,450,913
Bank 1,088,435 8,033 13,883 1,110,351
Corporate 3 1,202 48,949 50,154
Mortgage 3 779 57,025 57,807
HPE
QRRE
Other Retail 109 7,382 45,545 53,036
Other Exposures 3,253 525,521 528,773
Total Gross Credit Exposure 2,540,155 17,396 693,482 3,251,034
344
CIMB & YOU
Credit Quality of Loans, Advances & Financing
i) Past Due But Not Impaired
A loan/nancing is considered past due when any payment due under strict contractual terms is received late or missed. Late processing and other
administrative delays on the side of the borrower/customer can lead to a nancial asset being past due but not impaired. Therefore, loans/nancings and
advances less than 90 days past due are not usually considered impaired, unless other information is available to indicate the contrary. For the purposes
of this analysis, an asset is considered past due and included below when any payment due under strict contractual terms is received late or missed. The
amount included is the entire nancial asset, not just the payment, of principal or interest/prot or both, overdue.
The following tables provide an analysis of the outstanding balances as at 31 December 2014 and 31 December 2013 which were past due but not
impaired by sector and geographical respectively:
Table 6(a): Past Due but Not Impaired Loans, Advances and Financing by Sector
CIMBBG
(RM000) 2014 2013
Primary Agriculture 21,429 47,140
Mining and Quarrying 3,661 6,624
Manufacturing 104,875 127,996
Electricity, Gas and Water Supply 1,572 4,888
Wholesale and Retail Trade, and Restaurants and Hotels 163,221 356,497
Transport, Storage and Communication 87,215 110,227
Finance, Insurance/Takaful, Real Estate and Business Activities 67,575 197,381
Education, Health and Others 41,981 72,342
Household 9,988,802 12,689,867
Others* 497,579 445,437
Total 11,093,319 14,263,479
345
Credit Quality of Loans, Advances & Financing (continued)
i) Past Due But Not Impaired (continued)
Table 6(a): Past Due but Not Impaired Loans, Advances and Financing by Sector (continued)
CIMBISLG
(RM000) 2014 2013
Mining and Quarrying 722 42
Electricity, Gas and Water Supply 8
Islamic Finance, Takaful, Real Estate and Business Activities 9,398 26,252
Household 2,671,091 2,806,723
Others* 21 1,148
Total 2,734,553 2,936,366

CIMBIBG
(RM000) 2014 2013
Primary Agriculture
Mining and Quarrying
Manufacturing
Electricity, Gas and Water Supply
Construction
Wholesale and Retail Trade, and Restaurants and Hotels
Transport, Storage and Communication
Finance, Insurance, Real Estate and Business Activities
Education, Health and Others
Household
Others*
Total
346
CIMB & YOU
i) Past Due But Not Impaired (continued)
Table 6(b): Past Due but Not Impaired Loans, Advances and Financing by Geographic Distribution
CIMBBG
(RM000) 2014 2013
Malaysia 10,039,795 13,204,403
Singapore 61,826 43,828
Thailand 991,698 1,011,271
Other Countries 3,977
Total 11,093,319 14,263,479
CIMBISLG
(RM000) 2014 2013
Malaysia 2,734,553 2,936,366
Singapore
Thailand
Other Countries
Total 2,734,553 2,936,366
CIMBIBG
(RM000) 2014 2013
Malaysia
Singapore
Thailand
Other Countries
Total
347
ii) Impaired Loans/Financings
The Group deems a nancial asset or a group of nancial asset to be impaired if, and only if, there is objective evidence of impairment as a result of one or
more events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event (or events) has an impact on the
estimated future cash ows of the nancial asset or the group of nancial assets that can be reliably estimated.
Impairment losses are calculated on individual loans/nancings and on loans/nancings assessed collectively.
Losses for impaired loans/nancings are recognised promptly when there is objective evidence that impairment of a portfolio of loans/nancings has
occurred. Evidence of impairment may include indications that the borrower/customer or a group of borrowers/customers is experiencing signicant
nancial difculty, the probability that they will enter bankruptcy or other nancial reorganisation, default of delinquency in interest/prot or principal
payments and where observable data indicates that there is a measurable decrease in the estimated future cash ows, such as changes in arrears or
economic conditions that correlate with defaults.
The Group assesses individually whether objective evidence of impairment exists for all assets deemed to be individually signicant. If there is objective
evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the
present value of estimated future cash ows. The carrying amount of the asset is reduced through the individual impairment allowance account and the
amount of the loss is recognised in the statements of comprehensive income. Interest/prot income continues to be accrued on the reduced carrying
amount and is accrued using the rate of interest/prot used to discount the future cash ows for the purpose of measuring the impairment loss. The
interest/prot income is recorded as part of interest/prot income.
Loans/Financings that have not been individually assessed are grouped together for portfolio impairment assessment. These loans/nancings are grouped
according to their credit risk characteristics for the purposes of calculating an estimated collective loss. Future cash ows on a group of nancial assets
that are collectively assessed for impairment are estimated on the basis of historical loss experience for assets with credit risk characteristics similar to
those in the group.
The following tables provide an analysis of the outstanding balances as at 31 December 2014 and 31 December 2013 which were impaired by sector and
geographical respectively:
348
CIMB & YOU
ii) Impaired Loans/Financings (continued)
Table 7(a): Impaired Loans, Advances and Financing by Sector
CIMBBG
(RM000) 2014 2013
Mining and Quarrying 46,176 46,808
Electricity, Gas and Water Supply 2,897 2,453
Transport, Storage and Communication 1,098,128 998,825
Finance, Insurance/Takaful, Real Estate and Business Activities 158,103 185,753
Household 1,675,217 1,361,160
Others* 131,833 180,682
Total 4,371,804 4,274,943
CIMBISLG
(RM000) 2014 2013
Mining and Quarrying 227
Electricity, Gas and Water Supply 557 572
Islamic Finance, Takaful, Real Estate and Business Activities 5,790 7,817
Household 275,254 211,795
Others* 326 119
Total 457,861 310,151

349
Table 7(a): Impaired Loans, Advances and Financing by Sector (continued)
CIMBIBG
(RM000) 2014 2013
Primary Agriculture
Manufacturing
Construction
Household 1,272 883
Others*
Total 1,272 883
Table 7(b): Impaired Loans, Advances and Financing by Geographic Distribution
CIMBBG
(RM000) 2014 2013
Malaysia 3,506,844 3,622,893
Singapore 28,901 36,027
Thailand 816,468 597,943
Other Countries 19,591 18,080
Total 4,371,804 4,274,943
CIMBISLG
(RM000) 2014 2013
Malaysia 457,861 310,151
Singapore
Thailand
Other Countries
Total 457,861 310,151
350
CIMB & YOU
Table 7(b): Impaired Loans, Advances and Financing by Geographic Distribution (continued)
CIMBIBG
(RM000) 2014 2013
Malaysia 1,272 883
Singapore
Thailand
Other Countries
Total 1,272 883
Table 8(a): Individual Impairment and Portfolio Impairment Allowances by Sector for CIMBBG
CIMBBG
2014 2013
Impairment Impairment Impairment Impairment
(RM000) Allowance Allowance Allowance Allowance
Primary Agriculture 36,263 18,173 28,006 23,191
Mining and Quarrying 33,029 7,043 34,574 7,133
Manufacturing 371,063 95,022 438,500 103,835
Electricity, Gas and Water Supply 1,305 5,384 1,234 5,058
Construction 87,844 57,781 133,515 73,732
Wholesale and Retail Trade, and Restaurants and Hotels 132,846 132,769 191,549 184,645
Transport, Storage and Communication 1,018,297 28,694 720,478 34,967
Finance, Insurance/Takaful, Real Estate and Business Activities 128,659 103,958 42,704 111,734
Education, Health and Others 6,188 24,209 7,370 27,827
Household 33,760 1,377,639 21,039 1,263,732
Others* 47,763 117,476 148,261 97,698
Total 1,897,017 1,968,148 1,767,230 1,933,552
351
Table 8(b): Individual Impairment and Portfolio Impairment Allowances by Sector for CIMBISLG
CIMBISLG
2014 2013
Primary Agriculture 1,487 6,169 1,431 8,564
Mining and Quarrying 317 277
Manufacturing 8,644 3,029 9,018
Electricity, Gas and Water Supply 586 930
Construction 8,617 10,184 8,646 13,381
Wholesale and Retail Trade, and Restaurants and Hotels 2,232 10,797 11,030 10,916
Transport, Storage and Communication 22,330 2,203 1,722 3,338
Islamic Finance, Takaful, Real Estate and Business Activities 2,766 14,560 3,180 18,011
Education, Health and Others 2,281 4,666 763 5,307
Household 287,736 306,173
Others* 568 934
Total 39,713 346,430 29,801 376,849

Table 8(c): Individual Impairment and Portfolio Impairment Allowances by Sector for CIMBIBG
CIMBIBG
2014 2013
Primary Agriculture
Manufacturing
Construction
Household 1,272 2,729 883 1,996
Others*
Total 1,272 2,729 883 1,996
352
CIMB & YOU
Table 9(a): Individual Impairment and Portfolio Impairment Allowances by Geographic Distribution for CIMBBG
CIMBBG
2014 2013
Malaysia 1,645,953 1,545,188 1,548,843 1,597,387
Singapore 7,841 29,376 13,740 32,350
Thailand 240,140 379,658 204,486 299,161
Other Countries 3,083 13,926 161 4,654
Total 1,897,017 1,968,148 1,767,230 1,933,552
Table 9(b): Individual Impairment and Portfolio Impairment Allowances by Geographic Distribution for CIMBISLG
CIMBISLG
2014 2013
Malaysia 39,713 346,430 29,801 376,849
Singapore
Thailand
Other Countries
Total 39,713 346,430 29,801 376,849
Table 9(c): Individual Impairment and Portfolio Impairment Allowances by Geographic Distribution for CIMBIBG
CIMBIBG
2014 2013
Malaysia 1,272 2,729 883 1,996
Singapore
Thailand
Other Countries
Total 1,272 2,729 883 1,996
353
Table 10(a): Charges for Individual Impairment Provision and Write-Offs During the Year for CIMBBG
CIMBBG
2014 2013
Charges/ Charges/
(RM000) (Write Back) Write-Off (Write Back) Write-Off
Primary Agriculture 7,359 57 27,733 2,268
Mining and Quarrying (363) 6,254 2,114
Manufacturing 6,375 84,167 1,052 98,123
Electricity, Gas and Water Supply (7) 1,266
Construction (20,288) 31,186 (59,345) 31,470
Wholesale and Retail Trade, and Restaurants and Hotels (3,566) 56,203 56,761 50,387
Transport, Storage and Communication 320,564 21,237 48,810 9,971
Finance, Insurance/Takaful, Real Estate and Business Activities (12,476) 9,010 3,772 74,204
Education, Health and Others (2,462) 345 23,832 9,061
Household 15,147 3,316 2,528 6,748
Others* 16 613 (936) 2,372
Total 310,299 212,388 107,587 284,604
Table 10(b): Charges for Individual Impairment Provision and Write-Offs During the Year for CIMBISLG
CIMBISLG
2014 2013
Charges/ Charges/
Primary Agriculture 60 114 2,268
Mining and Quarrying 3,068
Manufacturing (36) (13,393)
Construction (5) (13,078)
Wholesale and Retail Trade, and Restaurants and Hotels (4,610) 4,473 6,560 3,163
Transport, Storage and Communication 22,500 1,564 1
Islamic Finance, Takaful, Real Estate and Business Activities (424) (282) 58
Education, Health and Others 1,532 (1)
Household (665) 4,891
Others*
Total 19,017 9,105 (20,744) 10,380

354
CIMB & YOU
Table 10(c): Charges for Individual Impairment Provision and Write-Offs During the Year for CIMBIBG
CIMBIBG
2014 2013
Charges/ Charges/
Primary Agriculture
Manufacturing
Construction
Household 389 451
Others*
Total 389 451
Table 11(a): Analysis of movement for Loan/Financing Impairment Allowances for the Year Ended 31 December 2014 and 31 December 2013
for CIMBBG
CIMBBG
2014 2013
Balance as at 1 January 1,767,230 1,933,552 1,900,293 1,841,225
Allowance (written back)/made during the nancial period/year 310,299 639,287 107,587 652,951
Amount transferred to portfolio impairment allowance 3,160 (3,160) 1,043 (1,043)
Amount written back in respect of recoveries
Allowance made and charged to deferred assets (2,735) 381 (959) 258
Amount written off (212,388) (633,170) (284,604) (557,542)
Transfer (to)/from intercompany
Disposal of subsidiary
Unwinding income 21,266
Exchange uctuation 31,451 31,258 22,604 (2,297)
Total 1,897,017 1,968,148 1,767,230 1,933,552
355
Table 11(b): Analysis of movement for Loan/Financing Impairment Allowances for the Year Ended 31 December 2014 and 31 December 2013
for CIMBISLG
CIMBISLG
2014 2013
Balance as at 1 January 29,801 376,849 60,925 347,704
Allowance (written back)/made during the nancial period/year 19,017 123,405 (20,744) 163,420
Amount transferred to portfolio impairment allowance
Allowance made and charged to deferred assets
Amount written off (9,105) (153,824) (10,380) (136,990)
Transfer (to)/from intercompany 2,715
Unwinding income
Exchange uctuation
Total 39,713 346,430 29,801 376,849
Table 11(c): Analysis of movement for Loan/Financing Impairment Allowances for the Year Ended 31 December 2014and 31 December 2013
for CIMBIBG
CIMBIBG
2014 2013
Balance as at 1 January 883 1,996 432 1,115
Allowance (written back)/made during the nancial period/year 389 733 451 881
Amount transferred to portfolio impairment allowance
Allowance made and charged to deferred assets
Amount written off
Transfer (to)/from intercompany
Unwinding income
Exchange uctuation
Total 1,272 2,729 883 1,996
356
CIMB & YOU
Capital Treatment for Credit Risk
Details on RWA and capital requirements related to Credit Risk are disclosed separately for CIMBBG, CIMBISLG and CIMBIBG in Tables 2 (a), (b) and (c). Details
on the disclosure for portfolios under the SA and the IRB Approach are in the sections that followed.
Credit Risk Disclosure for Portfolios under the SA
Credit exposures under SA are mainly exposures where the IRB Approach is not applicable or exposures that will eventually adopt the IRB Approach. Under
SA, the regulator prescribes the risk weights for all asset types.
Exposures which are rated externally relate to sovereign and central banks while the unrated exposures relate to personal nancing and other exposures. The
Group applies external ratings for credit exposures under SA from S&P, Moodys, Fitch, RAM, MARC and R&I. CIMB Group follows the process prescribed under
BNMs guidelines on CAF (Basel II Risk-Weighted Assets) and CAFIB (Risk-Weighted Assets) to map the ratings to the relevant risk weights for computation
of regulatory capital.
The following tables present the credit exposures by risk weights and after credit risk mitigation:
Table 12(a): Disclosure by Risk Weight under SA for CIMBBG
2014 CIMBBG
Insurance
Cos/ Total
Takaful Exposures
Operators, Residential after Netting
Sovereign/ Banks, Securities Mortgages/ and Credit Total Risk
(RM000) Central MDBs Firms & Fund Regulatory RRE Higher Other Securiti- Risk Weighted
Risk Weights Banks PSEs and DFIs Managers Corporate Retail Financing Risk Assets Assets sation* Mitigation* Assets
0% 38,809,493 3,209,059 67,121 4,576,620 46,662,293
6%
20% 72,229 11,996 360,787 204,601 167,435 560,482 1,377,530 275,506
35% 4,818,691 4,818,691 1,686,542
50% 146,954 79,902 1,054,144 1,012,767 199,477 1,775,276 180,277 4,448,799 2,224,401
75% 11,799,803 237,786 12,037,589 9,028,192
100% 147,240 41,472 595,708 4,148,432 5,873,331 201,508 3,099,659 14,107,350 14,107,345
107% 12,717,253 12,717,253 13,646,388
150% 47,389 43 45,098 52,884 1,074,955 1,220,369 1,830,553
150%< RW < 1250% 920,053 920,053 1,440,510
1250%
Total 39,223,305 3,300,956 1,523,569 1,813,076 17,110,261 20,421,347 5,438,262 1,074,955 7,843,713 560,482 98,309,925 44,239,438
Average Risk Weight 1% 1% 42% 63% 105% 84% 40% 150% 40% 20% 44%
Deduction from Capital Base
* The total includes the portion which is deducted from Capital Base, if any.
357
Credit Risk Disclosure for Portfolios under the SA (continued)
Table 12(a): Disclosure by Risk Weight under SA for CIMBBG (continued)
2013 CIMBBG
Insurance
Cos/ Total
Takaful Exposures
Operators, Residential after Netting
Sovereign/ Banks, Securities Mortgages/ and Credit Total Risk
(RM000) Central MDBs Firms & Fund Regulatory RRE Higher Other Securiti- Risk Weighted
0% 42,776,653 2,212,988 13,000 4,114,576 49,117,216
6% 6,517,171 6,517,171 401,292
20% 97,008 57,472 50,739 263,971 95 140,816 801,451 1,411,552 282,310
35% 3,518,074 3,518,074 1,231,326
50% 17,990 415,607 923,902 182,283 1,229,436 124,471 2,893,690 1,446,845
75% 9,263,308 189,863 9,453,170 7,089,878
100% 355,874 3,266,203 5,568,050 89,913 2,579,568 11,859,607 11,859,607
107%
150%
150%< RW < 1250% 34,176 12,058,937 1,182,673 1,098,029 14,373,815 16,458,281
1250% 13,736 13,736 171,703
Total 42,873,661 2,288,450 6,996,517 1,577,923 15,507,423 17,243,562 3,922,320 1,098,029 6,834,960 815,187 99,158,032 38,941,243
Average Risk Weight 0% 1% 9% 58% 105% 76% 39% 150% 38% 41% 37%
358
CIMB & YOU
Table 12(b): Disclosure by Risk Weight under SA for CIMBISLG
2014 CIMBISLG
Takaful Total
Operators, Exposures
Securities after Netting
Sovereign/ Banks, Firms & and Credit Total Risk
(RM000) Central MDBs Fund Regulatory RRE Higher Other Securiti- Risk Weighted
0% 12,663,185 11,000 12,674,185
20% 19,750 3,485 23,236 4,647
35%
50% 170,915 181,711 1,732,979 2,085,604 1,042,802
75% 622,577 622,577 466,933
100% 5,957 447,711 2,229,083 250,029 2,932,780 2,932,780
100%< RW < 1250% 380 3,001 575 3,956 5,934
1250%
Total 12,682,935 181,915 5,957 629,802 4,587,640 575 250,029 3,485 18,342,338 4,453,096
Average Risk Weight 0% 47% 100% 86% 78% 150% 100% 20% 24%
2013 CIMBISLG
Takaful Total
Operators, Exposures
(RM000) Central MDBs Fund Regulatory RRE Higher Other Securiti- Risk Weighted
0% 13,660,982 13,000 13,673,982
20% 34,793 20,466 55,259 11,052
35%
50% 78,894 158,235 1,184,891 1,422,020 711,010
75% 756,031 756,031 567,023
100% 77,580 2,330,008 48,408 2,455,996 2,455,996
100% < RW < 1250% 199 1,373 575 2,147 3,221
1250%
Total 13,695,774 91,894 236,014 4,272,303 575 48,408 20,466 18,365,435 3,748,302
Average Risk Weight 0% 43% 67% 82% 150% 100% 20% 20%
359
Table 12(c): Disclosure by Risk Weight under SA for CIMBIBG
2014 CIMBIBG
Insurance Total
Cos, Exposures
(RM000) Central MDBs Fund Regulatory Residential Higher Other Securiti- Risk Weighted
Risk Weights Banks PSEs and DFIs Managers Corporate Retail Mortgages Risk Assets Assets sation* Mitigation* Assets
0% 941,910 42 941,952
20% 317,535 317,535 63,507
35% 31,925 31,925 11,174
50% 897,657 22,472 920,129 460,065
75% 2,534 329 2,863 2,147
100% 18,236 41,457 81,935 23,045 462,606 627,279 627,279
100%<RW < 1250%
1250%
Total 941,910 1,215,192 18,236 41,457 84,469 77,771 462,647 2,841,683 1,164,171
2013 CIMBIBG
Insurance Total
Cos, Exposures
(RM000) Central MDBs Fund Regulatory Residential Higher Other Securiti- Risk Weighted
Risk Weights Banks PSEs and DFIs Managers Corporate Retail Mortgages Risk Assets Assets sation* Mitigation* Assets
0% 1,450,913 49 1,450,962
20% 35,670 35,670 7,134
35% 32,547 32,547 11,391
50% 1,074,681 8,247 1,082,928 541,464
75% 3,540 478 4,019 3,014
100% 50,154 49,495 16,535 527,641 643,825 643,825
100%< RW < 1250% 1,083 1,083 1,624
1250%
Total 1,450,913 1,110,351 50,154 53,036 57,807 1,083 527,691 3,251,034 1,208,453
360
CIMB & YOU
The following tables present the non-retail credit exposures before the effect of credit risk mitigation, according to ratings by ECAIs:
Table 13(a): Disclosures of Rated and Unrated Non-Retail Exposures under SA according to Ratings by ECAIs for CIMBBG
2014 CIMBBG
Non-
(RM000) Investment Investment
Exposure Class Grade Grade No Rating Total
On and Off-Balance-Sheet Exposures
Public Sector Entities 3,303,899 427,139 3,731,038
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 1,217,770 112,463 798,857 2,129,090
Corporate 14,695 217,747 18,451,718 18,684,160
Sovereign/Central Banks 15,773,987 74,885 23,374,433 39,223,305
Banks, MDBs and DFIs 1,562,673 205,950 1,768,623
Total 21,873,024 405,095 43,258,098 65,536,217
2013 CIMBBG
Non-
Public Sector Entities 3,025,268 375,027 3,400,296
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 1,242,571 34,176 385,515 1,662,262
Corporate 355,471 15,973,890 16,329,361
Sovereign/Central Banks 6,076,870 36,796,791 42,873,661
Banks, MDBs and DFIs 6,776,436 26 220,055 6,996,517
Total 17,121,145 389,673 53,751,278 71,262,095
361
Table 13(b): Disclosures of Rated and Unrated Non-Retail Exposures under SA according to Ratings by ECAIs for CIMBISLG
2014 CIMBISLG
Non-
Takaful Operators, Securities Firms & Fund Managers 6,432 6,432
Corporate 1,092,010 1,092,010
Sovereign/Central Banks 828,375 11,854,560 12,682,935
Banks, MDBs and DFIs 170,915 11,000 181,915
Total 999,290 12,964,002 13,963,292
2013 CIMBISLG
Non-
Takaful Operators, Securities Firms & Fund Managers 450 450
Corporate 244,876 244,876
Sovereign/Central Banks 433,026 13,262,748 13,695,774
Banks, MDBs and DFIs 78,849 13,045 91,894
Total 511,875 13,521,120 14,032,995
362
CIMB & YOU
Table 13(c): Disclosures of Rated and Unrated Non-Retail Exposures under SA according to Ratings by ECAIs for CIMBIBG
2014 CIMBIBG
Non-
Insurance Cos, Securities Firms & Fund Managers 18,236 18,236
Corporate 41,457 41,457
Sovereign/Central Banks 941,910 941,910
Banks, MDBs and DFIs 1,410,992 89 1,411,082
Total 1,410,992 1,001,693 2,412,685
2013 CIMBIBG
Non-
Corporate 50,154 50,154
Sovereign/Central Banks 1,450,913 1,450,913
Banks, MDBs and DFIs 1,110,340 10 1,110,351
Total 1,110,340 1,501,077 2,611,418
363
Table 14(a): Disclosures of Securitisation under SA according to Ratings by ECAIs for CIMBBG
CIMBBG
Non-
2014
Securitisation 560,482 560,482
2013
Securitisation 801,451 13,736 815,187
Table 14(b): Disclosures of Securitisation under SA according to Ratings by ECAIs for CIMBISLG
CIMBISLG
Non-
2014
2013
As at 31 December 2014 and 31 December 2013, there is no Securitisation under SA according to Ratings by ECAIs for CIMBIBG.
364
CIMB & YOU
Credit Risk Disclosure for Portfolios under the IRB Approach
CIMBBG and CIMBISLG adopt the A-IRB Approach for its retail exposures and F-IRB Approach for its non-retail exposures. The IRB Approach allows CIMBBG
and CIMBISLG to adopt various rating systems to measure its credit risk to both retail and non-retail exposures. The internal risk rating systems are used not
only for regulatory capital purposes, but also for credit approval and risk management reporting.
For retail exposures, application scorecards are integral to the credit approval process. Credit ofcers use scorecard outputs in the determination of approval of
a credit application. Behavioural scorecards are used to determine the future conduct of the account for collection and limit management purposes.
For non-retail exposures, internal ratings are used to assist the approving committees in making informed decisions of the credit application. Product owners
consult GRD for input on internal rating for consideration on pricing of product.
The models used in the internal rating systems are subject to strict governance and controls. The models are developed and maintained by GRD with input from
business units to ensure that material risks are captured. Before the models are implemented, they are subject to approval by GRC and subsequently BRC. After
implementation, the models are subject to regular performance monitoring to ensure that they continue to perform as expected and the risk parameters remain
appropriate.
New models are assessed by a validation team, which is independent from the development team, to ensure robustness of the model development process,
completeness of the documentation, and accuracy of the risk estimates. The validation exercise also ensures that the models meet regulatory standards.
Existing models are assessed on an annual basis by the validation team to ensure that the models continue to be appropriate and the risk estimates continue
to be accurate.
Retail Exposures
Retail exposures are portfolio in large numbers of similarly managed exposures due to homogeneous characteristics. This applies to both exposures to
individuals as well as exposures to small businesses which are managed on a pooled basis. The exposure of a single retail facility is typically low and usually
referred to as program lending/nancing.
Retail exposures covered under the A-IRB Approach include credit cards, auto loans/nancing, Xpress Cash, residential mortgages and business premises
loans/nancing. The PDs of these exposures are typically estimated from the outputs of application scorecards for newer customers and behavioural scorecards
for older customers. The models deployed for retail portfolio include application and behavioural scorecards or application and behavioural models, PD, LGD
and EAD segmentation.
a) PD, LGD and EAD Segmentation Models for Retail Exposures
The risk estimates are generally developed based on internal historical data and complies with BNM guidelines on CAF (Basel II - Risk-Weighted Assets)
and CAFIB (Risk-Weighted Assets). However, in instances of insufcient historical data, the respective models risk estimate is developed based on expert
judgment or aligned to available industry data with margins of conservatism applied.
365
Credit Risk Disclosure for Portfolios under the IRB Approach (continued)
Retail Exposures (continued)
PD Calibration
PD is dened as the probability of a borrower/customer defaulting within a one year time horizon.
PD estimated for each pool must be representative of long term average. In the event the internal historical data is not sufcient to cover an economic cycle,
appropriate adjustment (via Cycle Scaling Factor) will be incorporated based on proxy data which are relevant and of longer history to derive the long term
average PD, which is normally referred to as Central Tendency.
EAD Estimation
EAD represents the expected level of usage of the facility when default occurs.
The EAD for retail exposures is generally based on the respective portfolios summed outstanding exposure including any undrawn balances, and for
revolving exposures such as credit card receivables, each loans/nancings EAD estimation includes the estimated net additional drawings for loans/
nancings defaulting over the next 12 months.
LGD Estimation
LGD is the estimated amount of loss expected if a loan/nancing defaults, calculated as a percentage of EAD. The value depends on the collateral (if any)
and other factors (internal, external, direct and indirect costs associated with recoveries).
LGD for retail exposures is estimated based on historical internal data and the following sources of recoveries are incorporated into the estimation:
(i) Regularisation of defaulted accounts.
(ii) Sale proceeds from physical collaterals.
(iii) Cash receipts from borrowers/customers.
366
CIMB & YOU
The following tables summarise the retail credit exposures measured under A-IRB Approach as at 31 December 2014 and 31 December 2013:
Table 15(a): Retail Credit Exposures by PD Band for CIMBBG
CIMBBG
(RM000) 0% PD 2% PD 100%
PD Range of Retail Exposures < 2% < 100% Or Default Total
2014
Total Retail Exposure 90,174,036 12,013,707 1,844,283 104,032,026
Residential Mortgage/RRE Financing 50,911,309 2,891,511 877,408 54,680,228
QRRE 8,152,466 4,342,188 75,271 12,569,925
Hire Purchase 11,173,174 2,715,913 336,351 14,225,438
Other Retail 19,937,086 2,064,096 555,253 22,556,435
Exposure Weighted Average LGD

Residential Mortgage/RRE Financing 23% 24% 33%
QRRE 89% 89% 89%
Hire Purchase 52% 54% 57%
Other Retail 27% 33% 67%
Exposure Weighted Average Risk Weight

QRRE 30% 128% 107%
2013
Total Retail Exposure 77,988,671 12,945,825 1,937,043 92,871,539
QRRE 7,191,601 4,081,811 70,594 11,344,007
Hire Purchase 9,587,747 3,177,554 226,218 12,991,519
Other Retail 17,046,293 2,010,405 659,242 19,715,940

QRRE 89% 89% 89%

QRRE 30% 127% 121%
367
Table 15(b): Retail Credit Exposures by PD Band for CIMBISLG
CIMBISLG
(RM000) 0% PD 2% PD 100%
PD Range of Retail Exposures < 2% < 100% Or Default Total
2014
Total Retail Exposure 15,117,177 1,628,766 266,395 17,012,338
RRE Financing 8,029,338 265,918 79,169 8,374,426
QRRE 106,201 93,176 1,912 201,289
Hire Purchase 4,397,587 742,485 148,468 5,288,540
Other Retail 2,584,051 527,187 36,846 3,148,084

RRE Financing 24% 24% 33%
QRRE 90% 90% 90%

QRRE 34% 127%
2013
RRE Financing 7,886,442 336,082 70,333 8,292,858
QRRE 92,174 95,771 2,341 190,285
Hire Purchase 5,032,606 1,084,596 96,081 6,213,282
Other Retail 1,833,067 275,299 32,391 2,140,757

QRRE 90% 70% 90%

QRRE 35% 122%
368
CIMB & YOU
Table 16(a): Retail Exposures under the IRB Approach by Expected Loss Range for CIMBBG
CIMBBG
(RM000) 1% < EL
EL Range of Retail Exposures EL 1% < 100% EL = 100% Total
2014
QRRE 6,269,720 6,300,205 12,569,925
Hire Purchase 11,145,195 3,079,379 865 14,225,438
Other Retail 21,158,372 1,337,625 60,437 22,556,435

QRRE 89% 89%
2013
QRRE 5,513,573 5,830,433 11,344,007
Hire Purchase 9,521,764 3,462,455 7,300 12,991,519
Other Retail 17,810,221 1,816,246 89,472 19,715,940

QRRE 89% 89%
369
Table 16(b): Retail Exposures under the IRB Approach by Expected Loss Range for CIMBISLG
CIMBISLG
(RM000) 1% < EL
EL Range of Retail Exposures EL 1% < 100% EL = 100% Total
2014
Total Retail Exposure 15,427,430 1,584,206 703 17,012,338
RRE Financing 8,122,020 252,384 22 8,374,426
QRRE 62,418 138,871 201,289
Hire Purchase 4,392,435 895,783 322 5,288,540
Other Retail 2,850,556 297,169 358 3,148,084

QRRE 90% 90%
2013
RRE Financing 7,993,046 297,914 1,897 8,292,858
QRRE 54,091 136,194 190,285
Hire Purchase 5,016,093 1,194,839 2,350 6,213,282
Other Retail 1,875,614 261,410 3,733 2,140,757

QRRE 90% 90%
370
CIMB & YOU
Non-retail Exposures
Non-retail exposures covered under the F-IRB Approach include foreign sovereigns, corporates (Specialised Lending/Financing uses supervisory slotting
criteria), SMEs and banks. The PDs of these exposures are estimated from internal ratings assigned across a spectrum of risk levels on a master scale. Each
internal rating has a corresponding 1-year average PD and a likely corresponding regulatory loan/nancing classication. The LGDs of these exposures are
assigned as per the CAF (Basel II - Risk-Weighted Assets) and CAFIB (Risk-Weighted Assets); that is an LGD of 45% for senior exposures and 75% for
subordinated exposures, with appropriate adjustments for eligible collateral.
The process by which an internal rating is assigned to an obligor is governed by the Obligor Risk Rating framework. Firstly, a risk model uses a weighted
combination of quantitative and qualitative risk factors to generate an initial rating. The quantitative risk factors and weights are derived through statistical
techniques and the qualitative risk factors and weights are derived through deliberation with credit experts. The initial rating may subsequently be upgraded or
downgraded based on a predened set of criteria, such as quality of nancial statements and support from a parent entity. Finally, an approving authority
deliberates before deciding on a nal rating. If a facility is guaranteed by one or more corporate guarantors, then the framework recognises the credit risk
mitigation by substituting the obligor rating with the corporate guarantors rating.
The following tables summarise the Groups non-retail credit exposures measured under F-IRB Approach as at 31 December 2014 and 31 December 2013:
Table 17(a): Credit Exposures Subject to Supervisory Risk Weight under IRB Approach for CIMBBG
2014 CIMBBG
(RM000)
Supervisory Categories Strong Good Satisfactory Weak Default Total
Project Finance 130,871 641,650 136,808 116,646 1,219,331 2,245,307
Object Finance 8,082 39,503 188,361 235,947
Commodities Finance
Income Producing Real Estate 899,177 6,100,480 248,870 249,277 3,159 7,500,962
RWA 696,954 5,799,206 660,145 914,809 8,071,113
2013 CIMBBG
(RM000)
Project Finance 143,361 1,071,156 208,147 1,147,666 2,570,331
Object Finance 8,489 48,670 120,886 178,046
Commodities Finance
Income Producing Real Estate 2,414,842 3,523,389 450,464 168,028 87,156 6,643,879
RWA 1,444,403 3,883,434 896,422 420,071 6,644,331
371
Non-retail Exposures (continued)
Table 17(b): Credit Exposures Subject to Supervisory Risk Weight under IRB Approach for CIMBISLG
2014 CIMBISLG
(RM000)
Project Finance 130,871 130,871
Object Finance 70,795 70,795
Commodities Finance
Income Producing Real Estate 40,517 857,068 27,165 17,846 942,596
RWA 117,760 733,985 112,654 44,616 1,009,015
2013 CIMBISLG
(RM000)
Project Finance 143,361 358 143,719
Object Finance 104,663 104,663
Commodities Finance
Income Producing Real Estate 116,803 462,802 29,261 6,046 614,911
RWA 182,114 392,769 154,013 15,114 744,010
CIMBBG and CIMBISLG have no exposure to High Volatility Commercial Real Estate and Equities under the Simple Risk Weight Approach.
372
CIMB & YOU
Table 18(a): Non-Retail Exposures under IRB Approach by Risk Grades for CIMBBG
CIMBBG
(RM000)
Internal Risk Grading 13 49 10 13 Default Total
2014
Total Non-Retail Exposure 54,705,075 54,071,344 17,700,070 1,712,333 128,188,822
Bank 31,674,036 4,591,859 27,470 36,293,364
Corporate (excluding Specialised Lending/Financing) 23,031,039 49,479,485 17,672,600 1,712,333 91,895,457

Bank 43% 41% 45% 45%
Corporate (excluding Specialised Lending/Financing) 45% 38% 34% 43%

Bank 20% 46% 136%
Corporate (excluding Specialised Lending/Financing) 18% 66% 105%
2013
Total Non-Retail Exposure 41,692,587 50,122,568 15,225,230 2,271,583 109,311,968
Sovereign/Central Banks 1,742,875 231,126 1,974,001
Bank 24,057,858 3,794,741 34,194 185 27,886,979
Corporate (excluding Specialised Lending/Financing) 15,891,853 46,096,702 15,191,036 2,271,398 79,450,989

Sovereign/Central Banks 45% 45%
Bank 44% 40% 45% 45%
Corporate (excluding Specialised Lending/Financing) 45% 38% 37% 43%

Sovereign/Central Banks 6% 74%
Bank 20% 50% 246%
Corporate (excluding Specialised Lending/Financing) 17% 59% 109%
373
Table 18(b): Non-Retail Exposures under IRB Approach by Risk Grades for CIMBISLG
CIMBISLG
(RM000)
Internal Risk Grading 13 49 10 13 Default Total
2014
Total Non-Retail Exposure 3,929,570 6,717,964 2,222,183 186,681 13,056,398
Bank 1,559,241 33,921 1,050 1,594,212
Corporate (excluding Specialised Financing) 2,370,328 6,684,043 2,221,133 186,681 11,462,186

Bank 45% 45% 45%
Corporate (excluding Specialised Financing) 45% 43% 39% 41%

Bank 18% 47% 137%
Corporate (excluding Specialised Financing) 12% 71% 111%
2013
Total Non-Retail Exposure 3,674,865 7,749,581 1,964,461 105,650 13,494,557
Bank 2,380,727 47,040 131 2,427,898
Corporate (excluding Specialised Financing) 1,294,138 7,702,540 1,964,330 105,650 11,066,658

Bank 45% 45% 45%
Corporate (excluding Specialised Financing) 45% 43% 38% 39%

Bank 21% 58% 150%
Corporate (excluding Specialised Financing) 12% 54% 109%
374
CIMB & YOU
Expected Losses versus Actual Losses by Portfolio Types
The following table summarises the expected losses versus actual losses by portfolio type:
Table 19(a): Analysis of Expected Loss versus Actual Losses by Portfolio Types for CIMBBG
CIMBBG
2014 2013
Regulatory
Regulatory Actual Losses Expected Actual Losses
Expected for the year Losses for the year
Losses as at ended as at ended
(RM000) 31 December 31 December 31 December 31 December
Exposure Class 2013 2014 2012 2013
Sovereign 671 454
Bank 16,083 17,568 6,048
Corporate 613,476 200,739 642,954 134,790
Mortgage/RRE Financing 193,967 48,693 171,458 40,759
HPE 296,073 64,750 276,336 168,125
QRRE 390,620 134,049 299,673 164,656
Other Retail 126,498 (22,682) 45,745 53,955
Total 1,637,388 425,548 1,454,187 568,332
Table 19(b): Analysis of Expected Loss versus Actual Losses by Portfolio Types for CIMBISLG
CIMBISLG
2014
(RM000) Regulatory Expected Losses as at Actual Losses for the year ended
Exposure Class 31 December 2013 31 December 2014
Sovereign
Bank 731
Corporate 87,749 (5,196)
Mortgage/RRE Financing 27,268 981
HPE 128,144 50,944
QRRE 8,071 4,496
Total 282,616 67,955
Actual loss refers to impairment provisions and direct write-offs, if any during the year.
On the other hand, EL measures the loss expected from non-defaulted exposures at the start of the year. It is computed based on the risk parameters of the
adopted IRB Approach. While a comparison of actual losses and EL provides some insight of the predictive power of the IRB Approach models used by the
Group, the two metrics are not directly comparable due to the differences in methodology.
375
Off-Balance Sheet Exposures and Counterparty Credit Risk (CCR)
Off-Balance Sheet exposures are exposures such as derivatives, trade facilities and undrawn commitments. The Group adopts the Current Exposure method
to compute the capital requirement for CCR under BNMs guidelines on CAF (Basel II - Risk-Weighted Assets) and CAFIB (Risk-Weighted Assets).
i) Credit Risk Mitigation
For credit derivatives and swaps transactions, the Group enters into master agreement with counterparties, whenever possible. Further, the Group may
also enter into CSA with counterparties. The net credit exposure with each counterparty is monitored based on the threshold agreed in the master
agreement and the Group may request for additional margin for any exposures above the agreed threshold, in accordance with the terms specied in the
relevant CSA or the master agreement. The eligibility of collaterals and frequency calls are negotiated with the counterparty and endorsed by GCC.
ii) Treatment of Rating Downgrade
In the event of a one-notch downgrade of rating, based on the terms of the existing Credit Support Annexes, International Swaps and Derivatives
Association Agreement and exposure as at 31 December 2014, the additional collateral to be posted was RM13,989,200 while there was none as at
31 December 2013.
On the other hand, counterparty rating is being monitored and in the event of a rating downgrade, remedial actions such as revision of the counterparty
credit limit, suspension of the limit or the request for additional collateral may be taken.
The following tables disclose the Off-Balance Sheet exposures and CCR as at 31 December 2014 and 31 December 2013:
376
CIMB & YOU
Off-Balance Sheet Exposures and CCR (continued)
Table 20(a): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBBG
2014 CIMBBG
Positive Fair
Value of Credit Risk-
(RM000) Principal Derivative Equivalent Weighted
Description Amount Contracts Amount Assets
Direct Credit Substitutes 3,461,363 3,461,363 1,896,518
Transaction Related Contingent Items 4,127,672 2,053,832 1,441,679
Short Term Self Liquidating Trade Related Contingencies 5,490,372 1,098,074 553,314
Assets Sold With Recourse
Forward Asset Purchases
Obligations under an On-going Underwriting Agreement 200,000 100,000 50,000
Lending/Financing of banks securities or the posting of securities as
collateral by banks, including instances where these arise out of
repo-style transactions (i.e. repurchase/reverse repurchase and
securities lending/borrowing transactions)/Commitments to buy
back Islamic securities under Sales and Buy Back Agreement
Foreign Exchange Related Contracts
One year or less 49,065 735 355
Over one year to ve years
Over ve years
OTC derivative transactions and credit derivative contracts subject
to valid bilateral netting agreements 587,755,969 3,684,917 9,784,351 4,748,085
Other commitments, such as formal standby facilities and credit
lines, with an original maturity of over one year 33,902,427 28,058,078 14,130,419
lines, with an original maturity of up to one year 2,723,706 855,733 773,146
Any commitments that are unconditionally cancellable at any time
by the bank without prior notice or that effectively provide for
automatic cancellation due to deterioration in a borrowers/customers
creditworthiness 57,233,801
Unutilised credit card lines 21,319,299 6,580,581 3,176,481
Off-balance sheet items for securitisation exposures
Off-balance sheet exposures due to early amortisation provisions
Total 716,263,674 3,684,917 51,992,747 26,769,997
377
Table 20(a): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBBG (continued)
2013 CIMBBG
Positive Fair
Direct Credit Substitutes 2,556,354 2,556,354 1,902,057
Transaction Related Contingent Items 4,417,745 2,194,931 1,397,495
Short Term Self Liquidating Trade Related Contingencies 3,507,642 701,528 359,156
Obligations under an On-going Underwriting Agreement 163,500 81,750 40,875
Lending/Financing of banks securities or the posting of securities as
collateral by banks, including instances where these arise out of
repo-style transactions (i.e. repurchase/reverse repurchase and
securities lending/borrowing transactions)/Commitments to buy
back Islamic securities under Sales and Buy Back Agreement 3,703,883 3,706,887 81,213
One year or less 178,626 2,679 548
Over ve years
to valid bilateral netting agreements 421,565,760 2,441,554 8,455,855 3,779,601
lines, with an original maturity of up to one year 3,065,936 1,015,004 760,475
Any commitments that are unconditionally cancellable at any
time by the bank without prior notice or that effectively provide for
Unutilised credit card lines 19,360,167 6,112,981 2,982,345
Total 558,131,069 2,441,554 48,779,487 23,469,903
378
CIMB & YOU
Off-Balance Sheet Exposures and CRR (continued)
Table 20(b): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBISLG
2014 CIMBISLG
Positive Fair
Direct Credit Substitutes 137,152 137,152 111,315
Transaction Related Contingent Items 349,549 174,775 124,690
Short Term Self Liquidating Trade Related Contingencies 77,102 15,420 9,601
Obligations under an On-going Underwriting Agreement
Commitments to buy back Islamic securities under Sales and Buy Back agreement
One year or less
Over ve years
OTC derivative transactions and credit derivative contracts subject to valid bilateral
netting agreements 21,109,383 72,431 429,323 102,503
lines, with an original maturity of up to one year 87,675 65,756 58,273
Unutilised credit card lines 210,597 89,335 54,879
Total 27,404,825 72,431 3,902,214 2,015,043
379
Off-Balance Sheet Exposures and CRR (continued)
Table 20(b): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBISLG (continued)
2013 CIMBISLG
Positive Fair
Transaction Related Contingent Items 348,215 174,107 127,404
Short Term Self Liquidating Trade Related Contingencies 14,252 2,850 1,816
Commitments to buy back Islamic securities under Sales and Buy Back agreement
One year or less
Over ve years
to valid bilateral netting agreements 20,126,595 50,748 429,961 99,847
lines, with an original maturity of up to one year 24,219 18,154 16,748
Unutilised credit card lines 193,822 85,822 55,820
Total 26,045,427 50,748 3,612,576 1,672,606
380
CIMB & YOU
Table 20(c): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBIBG
2014 CIMBIBG
Positive Fair
Transaction Related Contingent Items
Short Term Self Liquidating Trade Related Contingencies
Lending/Financing of banks securities or the posting of securities as collateral
by banks, including instances where these arise out of repo-style transactions
(i.e. repurchase/reverse repurchase and securities lending/borrowing transactions)
One year or less
Over ve years
to valid bilateral netting agreements 285,897 24,653 21,444
lines, with an original maturity of over one year 26,073 13,037 13,020
lines, with an original maturity of up to one year
automatic cancellation due to deterioration in a borrowers creditworthiness
Unutilised credit card lines
Total 1,091,405 817,125 424,181
381
Table 20(c): Disclosure on Off-Balance Sheet Exposures and CCR for CIMBIBG (continued)
2013 CIMBIBG
Positive Fair
Transaction Related Contingent Items
Short Term Self Liquidating Trade Related Contingencies
Lending/Financing of banks securities or the posting of securities as collateral
by banks, including instances where these arise out of repo-style transactions
(i.e. repurchase/reverse repurchase and securities lending/borrowing transactions)
One year or less
Over ve years
to valid bilateral netting agreements 296,076 25,525 21,509
lines, with an original maturity of over one year 13,285 6,643 6,630
lines, with an original maturity of up to one year
automatic cancellation due to deterioration in a borrowers creditworthiness
Unutilised credit card lines
Total 1,265,154 987,961 506,036
382
CIMB & YOU
The tables below show the credit derivative transactions that create exposures to CCR (notional value) segregated between own use and client intermediation
activities:
Table 21(a): Disclosure on Credit Derivative Transactions for CIMBBG
CIMBBG
2014 2013
Notional of Credit Derivatives
Protection Protection Protection Protection
(RM000) Bought Sold Bought Sold
Own Credit Portfolio 1,902,439 2,578,991 2,857,690 2,748,435
Client Intermediation Activities 474,240 27,980 535,805
Total 1,902,439 3,053,231 2,885,670 3,284,240
Credit Default Swaps 1,902,439 2,578,991 2,857,690 2,748,435

Total Return Swaps 474,240 27,980 535,805
Total 1,902,439 3,053,231 2,885,670 3,284,240
Table 21(b): Disclosure on Credit Derivative Transactions for CIMBISLG
CIMBISLG
2014 2013
Own Credit Portfolio
Client Intermediation Activities 56,900 57,980
Total 56,900 57,980
Total Return Swaps 57,980

Total 56,900 57,980
383
Credit Risk Mitigation
Table 21(c): Disclosure on Credit Derivative Transactions for CIMBIBG
CIMBIBG
2014 2013
Own Credit Portfolio
Client Intermediation Activities 152,200 162,200
Total 152,200 162,200
Credit Default Swaps

Total Return Swaps 152,200 162,200
Total 152,200 162,200
The employment of various credit risk mitigation techniques such as appropriate credit structuring, and posting of collateral and/or third party support form an
integral part of the credit risk management process. Credit risk mitigants are taken where possible and is considered secondary recourse to the obligor for the
credit risk underwritten.
i) Collaterals/Securities
All extension of secured credit facilities as deemed prudent, should be appropriately and adequately collateralised. A credit proposal is considered secured
only when the entire proposal is fully covered by approved collateral/securities within their approved margins as set out in the relevant credit policy guides.
GCC is empowered to approve any inclusion of new acceptable collaterals/securities.
Recognised collaterals include both nancial and physical assets. Financial collaterals consist of mainly cash deposits, shares, unit trusts and debt
securities, while physical collateral includes land and buildings and vehicles. Guarantors accepted are in line with BNMs CAF (Basel II - Risk-Weighted
Assets) and CAFIB (Risk-Weighted Assets) guidelines. Eligible credit protection is also used to mitigate credit losses in the event that the obligor/counterparty
defaults.
ii) Collateral Valuation and Management
The Group has in place policies which govern the determination of eligibility of various collaterals including credit protection, to be considered for credit risk
mitigation which includes the minimum operational requirements that are required for the specic collaterals to be considered as effective risk mitigants.
The collateral is valued periodically ranging from daily to annually, depending on the type of collateral. Specically for real estate properties, a framework
for valuation of real estate properties is established to ensure adequate policies and procedures are in place for efcient and proper conduct of valuation
of real estate properties and other related activities in relation to the interpretation, monitoring and management of valuation of real estate properties.
iii) Netting
In mitigating the credit risks in swaps and derivative transactions, the Group enters into master agreements that provide for closeout and settlement netting
arrangements with counterparties, whenever possible. A master agreement that governs all transactions between two parties, creates the greatest legal
certainty that credit exposure will be netted. In effect, it enables the netting of outstanding obligations upon termination of outstanding transactions if an
event of default occurs.
iv) Portfolio diversication for better clarity
CIMB Group avoids unwanted credit or market risk concentrations by diversifying its portfolios through a number of measures. Amongst others, there are
guidelines in place relating to maximum exposure to any counterparty, sectors and country.
384
CIMB & YOU
Credit Risk Mitigation (continued)
The following tables summarise the extent of which exposures are covered by eligible credit risk mitigants as at 31 December 2014 and 31 December 2013:
Table 22(a): Disclosure on Credit Risk Mitigation for CIMBBG
2014 CIMBBG
Exposures Exposures Exposures
Covered by Covered by Covered by
Guarantees/ Eligible Other
(RM000) Exposures Credit Financial Eligible
Exposure Class before CRM Derivatives Collateral Collateral
Performing Exposures
Sovereign/Central Banks 39,223,305
Public Sector Entities 3,731,038 3,209,059 6,684
Banks, DFIs & MDBs 38,061,987 2,105,992
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 2,129,090 352,671 312,620
Corporate 117,373,378 5,984,519 12,268,952 12,498,610
Residential Mortgages/RRE Financing 59,101,675 1,005
Qualifying Revolving Retail 12,506,384
Hire Purchase 13,889,087
Other Retail 54,972,052 12,266,257
Securitisation 560,482
Higher Risk Assets 1,074,955
Other Assets 7,843,713
Defaulted Exposures 2,684,279 27,545 319,814

Total Exposures 353,151,425 9,546,249 26,989,056 12,818,424
The type of collateral recognised in each asset class is in accordance to the approach adopted in computing the RWA. The CRM shown is computed after taking into account the
haircut as prescribed by the guidelines. For assets under SA, only nancial collateral and guarantee are recognised. For assets under F-IRB Approach, guarantee, nancial collateral
and other eligible collateral are recognised. For assets under A-IRB Approach, the collateral has been taken into consideration in the computation of LGD, hence, excluded from
the CRM disclosure.
385
Table 22(a): Disclosure on Credit Risk Mitigation for CIMBBG (continued)
2013 CIMBBG
Public Sector Entities 3,400,296 2,212,988 690,430
Banks, DFIs & MDBs 36,498,432 6,811,218
Insurance Cos/Takaful Operators, Securities Firms & Fund Managers 1,662,262 3,000 83,958
Corporate 101,528,992 3,445,181 9,016,286 10,935,568
Residential Mortgages/RRE Financing 51,677,564
Qualifying Revolving Retail 11,280,221
Other Retail 47,227,468 95 10,650,290
Higher Risk Assets 1,098,029
Other Assets 6,796,373
Defaulted Exposures 2,606,688 219 34,872 423,398

Total Exposures 322,204,474 5,661,482 27,287,054 11,358,966
the CRM disclosure.
386
CIMB & YOU
Table 22(b): Disclosure on Credit Risk Mitigation for CIMBISLG
2014 CIMBISLG
Banks, DFIs & MDBs 1,776,127
Takaful Operators, Securities Firms & Fund Managers 6,432 475
Corporate 13,509,639 532,700 628,618 1,820,777
RRE Financing 8,295,256
Qualifying Revolving Retail 199,377
Other Retail 7,724,733 30,105
Higher Risk Assets 575
Other Assets 250,029
Defaulted Exposures 317,970 4,337 51,468

Total Exposures 49,906,631 532,700 663,536 1,872,245
the CRM disclosure.
387
Table 22(b): Disclosure on Credit Risk Mitigation for CIMBISLG (continued)
2013 CIMBISLG
Takaful Operators, Securities Firms & Fund Managers 450 450
Corporate 12,066,910 1,310,630 181,103 2,209,540
RRE Financing 8,222,525
Qualifying Revolving Retail 187,945
Other Retail 6,418,384 38,977
Higher Risk Assets 575
Other Assets 48,408
Defaulted Exposures 166,480 219 2,094 58,989

Total Exposures 49,464,910 1,310,848 222,624 2,268,530
the CRM disclosure.
388
CIMB & YOU
Table 22(c): Disclosure on Credit Risk Mitigation for CIMBIBG
2014 CIMBIBG
Sovereign/Central Banks 941,910
Banks, DFIs & MDBs 1,411,082 195,890
Insurance Cos, Securities Firms & Fund Managers 18,236
Corporate 41,457
Residential Mortgages 77,771
Qualifying Revolving Retail
Hire Purchase
Other Retail 84,469
Securitisation
Higher Risk Assets
Defaulted Exposures
Total Exposures 3,037,573 195,890
the CRM.
389
Table 22(c): Disclosure on Credit Risk Mitigation for CIMBIBG (continued)
2013 CIMBIBG
Corporate 50,154
Residential Mortgages 57,807
Qualifying Revolving Retail
Hire Purchase
Other Retail 53,036
Securitisation
Higher Risk Assets 1,083
Defaulted Exposures
Total Exposures 3,251,034
The type of collateral recognised in each asset class is in accordance to the approach adopted in computing the RWA. The CRM shown is computed after taking
into account the haircut as prescribed by the guidelines. For assets under SA, only nancial collateral and guarantee are recognised. For assets under F-IRB
Approach, guarantee, nancial collateral and other eligible collateral are recognised. For assets under A-IRB Approach, the collateral has been taken into
consideration in the computation of LGD, hence, excluded from the CRM disclosure.
390
CIMB & YOU
SECURITISATION
The Role CIMB Plays in the Securitisation Process
In the course of its business, CIMB Group has undertaken securitisations of its own originated assets, as well as advised on securitisations of third party assets
as part of its debt capital markets services for its clients.
The Group securitises its own assets in order to, amongst others, manage credit risk and to manage term funding for the Groups balance sheet. Typically, CIMB
Group undertakes the following roles in the securitisation activities (either singularly or in combination):
Originator and servicer of securitised assets
Asset-backed securities marketing, syndication and trading
Provider of liquidity facilities to self-originated and third-party transactions
Investor of third-party securitisations (where CIMB is not originator or sponsor)
Up to end-2014, the Group has completed securitisations of corporate bonds/sukuks and auto hire purchase receivables for its own account, and auto hire
purchase receivables originated by a joint-venture company, in funded traditional securitisations. CIMB Group does not maintain or act as sponsor of any conduit
for the securitisation of third-party receivables.
CIMBs Involvement in Securitisation in 2014
In 2014, the Group advised, arranged and managed 3 securitisation issuances for its clients:
(1) the fth and sixth securitisation issuances via Semangkuk Berhad, a bankruptcy-remote special purpose vehicle (SPV) established pursuant to a property
logistics securitisation programme sponsored by the MapletreeLog (M) Holdings Sdn Bhd Group;
(2) the second securitisation issuance via Ara Bintang Berhad, an SPV established pursuant to a property securitisation programme sponsored by Starhill
Global Real Estate Investment Trust; and
(3) the eighth securitisation issuance via Premium Commerce Berhad, an SPV established pursuant to a hire purchase receivables securitisation programme
sponsored by the Tan Chong Group.
All transactions involving securitisation of CIMB Groups assets were tabled to the Board of Directors of the relevant entities for deliberation and approval.
For transactions involving the joint venture entity, these transactions were tabled to and approved by the Board of Directors of CIMB Bank and Proton Commerce
Sdn Bhd.
In securitisations of its own assets, CIMB Bank continues to administer the assets as servicer for the relevant SPV and monitors the credit and market risk
inherent in the underlying assets using the same mechanism in place for non-securitised assets.
Summary of Accounting Policies for Securitisation Activities
CIMB has sponsored special purpose vehicles (SPVs) pursuant to securitisation activities involving assets of the Group. Such SPVs are consolidated when the
substance of the relationship between the Group and that entity indicates control. Potential indicators of control include, inter alia, an assessment of the Groups
exposure to the risks and rewards of the assets of the SPV.
Assets that have been transferred wholly or proportionately to an unconsolidated entity will also remain on the Group balance sheet, with a liability recognised
for the proceeds received, unless (a) substantially all risks and rewards associated with the assets have been transferred, in which case, they are derecognised
in full; or (b) if a signicant portion, but not all, of the risks and rewards have been transferred, the asset is derecognised entirely if the transferee has the ability
to sell the nancial asset, otherwise the asset continues to be recognised to the extent of the Groups continuing involvement.
Other than (a) or (b) above, securitisations are treated as nancing in the separate nancial statements of these entities.
391
SECURITISATION (CONTINUED)
ECAIs Used For Securitisation Process
CIMB may employ external credit assessment institutions to provide ratings for its asset backed securities. CIMB has used RAM and MARC for securitisations
of its own originated assets as well as securitisations for third-party clients for rated transactions. N.B. there are transactions for which the investor does not
require an external rating and in such instances, the investor performs his own due diligence.
For securitisations of CIMB-originated assets, RAM has rated a securitisation of corporate bonds/sukuks, and MARC has rated a securitisation of auto-hire
purchase receivables. Both RAM Ratings and MARC have rated a securitisation programme for a joint-venture of auto-hire purchase receivables.
Disclosure on Securitisation for Trading and Banking Book
The following tables show the disclosure on Securitisation for Trading and Banking Book for 31 December 2014 and 31 December 2013:
Table 23: Disclosure on Securitisation for Trading and Banking Book
2014 CIMBBG
Gains/Losses
Total Recognised
(RM000) Exposures during
Underlying Asset Securitised Past Due Impaired the year
TRADITIONAL SECURITISATION (Banking Book)
Non-Originated by the Banking Institution
Hire Purchase Exposure
Originated by the Banking Institution

Hire Purchase Exposure 75,107 15,101 5,690 1,396
2013 CIMBBG
Gains/Losses
Total Recognised
(RM000) Exposures during
Underlying Asset Securitised Past Due Impaired the year
TRADITIONAL SECURITISATION (Banking Book)
Non-Originated by the Banking Institution
Hire Purchase Exposure 30,572 8,227 2,541 (365)
Originated by the Banking Institution

Hire Purchase Exposure 197,429 32,560 6,054 (118)
There were no outstanding exposures securitised by CIMBISLG and CIMBIBG as at 31 December 2014 and 31 December 2013.
392
CIMB & YOU
Disclosure on Securitisation under the SA for Banking Book
The tables below represent the disclosure on Securitisation under the SA for Banking Book:
Table 24(a): Disclosure on Securitisation under the SA for Banking Book Exposures for CIMBBG
2014 CIMBBG
Distribution of Exposures after CRM according to Applicable Risk Weights
Rated Securitisation Exposures Unrated (Look Through)
Net Exposures Risk-
(RM000) Exposure subject to Weighted Exposure Weighted
Exposure Class After CRM deduction 0% 10% 20% 50% 100% 350% 1250% Average RW Amount Assets
Traditional Securitisation (Banking Book)
Non-originating Banking Institution
On-Balance Sheet
Most senior 549,068 549,068 109,814
Mezzanine 11,414 11,414 2,283
First loss
Off-Balance Sheet
Rated eligible liquidity facilities
Unrated eligible liquidity facilities (with original maturity > 1 year)
Unrated eligible liquidity facilities (with original maturity < 1 year)
Eligible servicer cash advance facilities
Eligible underwriting facilities
Guarantees and credit derivatives
Other off-balance sheet securitisation exposures
(excl. guarantees and credit derivatives)
Originating Banking Institution

On-Balance Sheet
Most senior
Mezzanine
First loss
Off-Balance Sheet
Other off-balance sheet securitisation exposures (excl.
guarantees and credit derivatives)
Total Exposures 560,482 560,482 112,096
393
Disclosure on Securitisation under the SA for Banking Book (continued)
Table 24(a): Disclosure on Securitisation under the SA for Banking Book Exposures for CIMBBG (continued)
2013 CIMBBG
Net Exposures Risk-
On-Balance Sheet
Most senior 794,018 794,018 158,804
Mezzanine 7,433 7,433 1,487
First loss
Off-Balance Sheet

On-Balance Sheet
Most senior
Mezzanine
First loss 13,736 13,736 171,703
Off-Balance Sheet
Total Exposures 815,187 801,451 13,736 331,994
394
CIMB & YOU
Disclosure on Securitisation under the SA for Banking Book (continued)
Table 24(b): Disclosure on Securitisation under the SA for Banking Book Exposures for CIMBISLG
2014 CIMBISLG
Net Exposures Risk-
On-Balance Sheet
Most senior 3,485 3,485 697
Mezzanine
First loss
Off-Balance Sheet

On-Balance Sheet
Most senior
Mezzanine
First loss
Off-Balance Sheet
Total Exposures 3,485 3,485 697
395
Securitisation under the SA for Banking Book (continued)
Table 24(b): Disclosure on Securitisation under the SA for Banking Book Exposures for CIMBISLG (continued)
2013 CIMBISLG
Net Exposures Risk-
On-Balance Sheet
Most senior 20,466 20,466 4,093
Mezzanine
First loss
Off-Balance Sheet

On-Balance Sheet
Most senior
Mezzanine
First loss
Off-Balance Sheet
Total Exposures 20,466 20,466 4,093
As at 31 December 2014 and 31 December 2013, CIMBIBG has no Securitisation under the SA for Banking Book Exposures.
396
CIMB & YOU
Securitisation under the SA for Trading Book Exposures subject to Market Risk Capital Charge
The tables below present the Securitisation under the SA for Trading Book Exposures subject to Market Risk Capital Charge:
Table 25: Disclosure on Securitisation under the SA for Trading Book Exposures subject to Market Risk Capital Charge for CIMBBG
2014 CIMBBG
Total
Exposure
Value of
Positions Exposures Risk-
(RM000) Purchased subject General Specic Weighted
Securitisation Exposures or Retained to deduction Risk Charge Risk Charge Assets
TRADITIONAL SECURITISATION
Originated by Third Party
On-Balance Sheet 8,437 180 169 4,365
Off-Balance Sheet
Sub-total 8,437 180 169 4,365
Originated by Banking Institution

On-Balance Sheet
Off-Balance Sheet
Sub-total
Securitisation subject to Early Amortisation

Sellers interest
On-Balance Sheet
Off-Balance Sheet
Investors interest
On-Balance Sheet
Off-Balance Sheet
Sub-total
TOTAL (TRADITIONAL SECURITISATION) 8,437 180 169 4,365
397
Securitisation under the SA for Trading Book Exposures subject to Market Risk Capital Charge (continued)
Table 25: Disclosure on Securitisation under the SA for Trading Book Exposures subject to Market Risk Capital Charge for CIMBBG (continued)
2013 CIMBBG
Total
Exposure
Value of
Positions Exposures Risk-
(RM000) Purchased subject General Specic Weighted
Securitisation Exposures or Retained to deduction Risk Charge Risk Charge Assets
TRADITIONAL SECURITISATION
Originated by Third Party
On-Balance Sheet 65,676 1,770 1,314 38,547
Off-Balance Sheet
Sub-total 65,676 1,770 1,314 38,547
Originated by Banking Institution

On-Balance Sheet
Off-Balance Sheet
Sub-total
Securitisation subject to Early Amortisation

Sellers interest
On-Balance Sheet
Off-Balance Sheet
Investors interest
On-Balance Sheet
Off-Balance Sheet
Sub-total
TOTAL (TRADITIONAL SECURITISATION) 65,676 1,770 1,314 38,547
As at 31 December 2014 and 31 December 2013, CIMBISLG and CIMBIBG have no Securitisation under the SA for Trading Book Exposures subject to Market
Risk Capital Charge.
398
CIMB & YOU
MARKET RISK
Market risk is dened as any uctuation in the market value of a trading or investment exposure arising from changes to market risk factors such as interest
rates/benchmark rates, currency exchange rates, credit spreads, equity prices, commodities prices and their associated volatility.
Market risk is inherent in the business activities of an institution that trades and invests in securities, derivatives and other structured nancial products. Market
risk may arise from the trading book and investment activities in the banking book. For the trading book, it can arise from customer-related businesses or from
the Groups proprietary positions. As for investment activities in the banking book, the Group holds the investment portfolio to meet liquidity and statutory
reserves requirement and for investment purposes.
Market Risk Management
Market risk is evaluated by considering the risk/reward relationship and market exposures across a variety of dimensions such as volatility, concentration/
diversication and maturity. The GRC with the support of Group Market Risk Committee and Group Underwriting Committee ensure that the risk exposures
undertaken by the Group is within the risk appetite approved by the Board. GRC, GMRC and GUC, supported by the Market Risk Centre of Excellence in GRD
is responsible to measure and control market risk of the Group through robust measurement and the setting of limits while facilitating business growth within a
controlled and transparent risk management framework.
CIMB Group employs the VaR framework to measure market risk where VaR represents the worst expected loss in portfolio value under normal market
conditions over a specic time interval at a given condence level. The Group has adopted a historical simulation approach to compute VaR. This approach
assesses potential loss in portfolio value based on the last 500 daily historical movements of relevant market parameters and 99% condence level at 1-day
holding period.
Broadly, the Group is exposed to four major types of market risk namely equity risk, interest/benchmark rate risk, foreign exchange risk and commodity risk.
Each business unit is allocated VaR limits for each type of market risk undertaken for effective risk monitoring and control. These limits are approved by the GRC
and utilisation of limits is monitored on a daily basis. Daily risk reports are sent to the relevant traders and Group Treasurys Market Risk Analytics Team. The
head of each business unit is accountable for all market risk under his/her purview. Any excess in limit will be escalated to management in accordance to the
Groups exception management procedures.
In addition to daily monitoring of VaR usage, on a monthly basis, all market exposures and VaR of the Group will be summarised and submitted to Group Market
Risk Committee, GRC and BRC for its perusal.
Although historical simulation provides a reasonable estimate of market risk, this approach relies heavily on historical daily price movements of the market
parameter of interest. Hence, the resulting market VaR is exposed to the danger that price and rate changes over the stipulated time horizon might not be typical.
Example, if the past 500 daily price movements were observed over a period of exceptionally low volatility, then the VaR computed would understate the risk of
the portfolio and vice versa.
In order to ensure historical simulation gives an adequate estimation of market VaR, backtesting of the historical simulation approach is performed annually.
Backtesting involves comparing the derived 1-day VaR against the hypothetical change in portfolio value assuming end-of-day positions in the portfolio were to
remain unchanged. The number of exceptions would be the number of times the difference in hypothetical value exceeds the computed 1-day VaR.
399
MARKET RISK (CONTINUED)
Market Risk Management (continued)
The Group also complements VaR with stress testing exercises to capture event risk that are not observed in the historical time period selected to compute VaR.
Stress testing exercise at the group-wide level involves assessing potential losses to the Groups market risk exposures under pre-specied scenarios. This type
of scenario analysis is performed twice yearly. Scenarios are designed in collaboration with the Regional Research Team to reect extreme and yet plausible
stress scenarios. Stress test results are presented to the Group Market Risk Committee and GRC to provide senior management with an overview of the impact
to the Group if such stress scenarios were to materialise.
In addition to the above, the Market Risk Centre of Excellence undertakes the monitoring and oversight process at Group Treasury trading oors, which include
reviewing treasury trading strategy, analysing positions and activities vis--vis changes in the nancial markets, monitoring limits usage, assessing limits adequacy
and verifying transaction prices.
The Market Risk Centre of Excellence also provides accurate and timely valuation of the Groups position on a daily basis. Exposures are valued using market
price (Mark-to-Market) or a pricing model (Mark-to-Model) (collectively known as MTM) where appropriate. The MTM process is carried out on all positions
classied as Held for Trading as well as Available for Sale on a daily basis for the purpose of meeting independent price verication requirements, calculation of
prots/losses as well as to conrm that margins required are met.
Treasury products approval processes will be led by the Market Risk Centre of Excellence to ensure operational readiness before launching. All new products
are assessed by components and in totality to ensure nancial risks are accurately identied, monitored and effectively managed.
All valuation methods and models used are documented and validated by the quantitative analysts to assess its applicability to market conditions. The process
includes verication of rate sources, parameters, assumptions in modelling approach and its implementation. Existing valuation models are reviewed periodically
to ensure that they remain relevant to changing market conditions.
Capital Treatment for Market Risk
At present, the Group adopts the Standardised Approach to compute market risk capital requirement under BNMs guidelines on CAF (Basel II Risk-Weighted
Assets) and CAFIB (Risk-Weighted Assets).
Details on RWA and capital requirements related to Market Risk are disclosed separately for CIMBBG, CIMBISLG and CIMBIBG for the following in Tables 2(a),
(b) and (c):
Interest Rate Risk/Benchmark Rate Risk;

Foreign Currency Risk;
Equity Risk;
Commodity Risk; and
Options Risk.
400
CIMB & YOU
OPERATIONAL RISK
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. The denition includes legal
risk but excludes strategic and reputation risks.
Operational Risk Management
CIMB Group recognises that cultivation of an organisational-wide discipline and risk management culture among its staff is the key determinant for a well-
managed universal banking operation. Hence, the Group has deployed a set of tools to identify, assess, monitor and control the operational risk inherent in the
Group.
Operational risks arise from inadequate or failed internal processes, people and systems or from external events. These risks are managed by CIMB Group
through the following key measures:
i) Sound risk management practices in accordance with Basel II and regulatory guidelines;
ii) Board and senior management oversight;
iii) Well-dened responsibilities for all personnel concerned;
iv) Establishment of a risk management culture; and
v) Deployment of ORM tools including:
Operational Event and Loss Data Management;
Risk and Control Self-Assessment; and
Key Risk Indicators.
These tools form part of the operational risk framework that allows CIMB Group to effectively identify, measure, mitigate and report its operational risks.
Each new or varied product and changes to the process ow are subjected to a rigorous risk review through sign-offs from the relevant support units where all
critical and relevant areas of risk are being appropriately identied and assessed independently from the risk takers or product owners. The Groups New Product
Development Policy Manual also safeguards and protects the interest of customers through proper regulatory disclosure requirements, the availability of options
or choices when the products and services are offered to the public.
The promotion of a risk management culture within the Group whereby the demand for integrity and honesty is non-negotiable remains the core theme in the
Groups operational risk awareness programme. The e-learning module on operational risk management has enhanced the awareness of operational risk
amongst the staff.
CIMB Group has progressively set the various foundations to move towards Basel II Standardised Approach.
Escalation and reporting processes are well instituted through various management committees notably the Group Operational Risk Committee and GRC as
well as the Board. The responsibilities of the committees and the Board include the following:
i) Oversight and implementation of the ORMF;

ii) Establish risk appetite and provide strategic and specic directions;
iii) Review operational risks reports and proles regularly;
iv) Address operational risk issues; and
v) Ensure compliance to regulatory and internal requirements including disclosures.
Group Internal Audit Division plays its role in ensuring an independent assurance of the implementation of the Framework through their conduct of regular
reviews and report to the Board.
Capital Treatment for Operational Risk
The Group adopts the Basic Indicator Approach to compute operational risk capital requirement under BNMs guidelines on CAF (Basel II - Risk-Weighted
Assets) and CAFIB (Risk-Weighted Assets).
However, the Group is now moving towards the Basel II Standardised Approach where the foundation pillars are in progress. Details on RWA and capital
requirements related to Operational Risk are disclosed separately for CIMBBG, CIMBISLG and CIMBIBG in Tables 2 (a), (b) and (c).
401
EQUITY EXPOSURES IN BANKING BOOK
The Groups banking book equity investments consist of:
i) Strategic stakes in entities held as part of growth initiatives and/or in support of business operations; and
ii) Investments held for yield and/or long-term capital gains.
The Groups and CIMBs banking book equity investments are classied and measured in accordance with Financial Reporting Standards and are categorised
as nancial investments available-for-sale in the 2014 nancial statements.
Details of the Groups and the CIMB Banks investments in nancial investments available-for-sale are also set out in the nancial statements.
Realised and unrealised gains or losses arising from sales and liquidations of equities for CIMBBG for the year ended 31 December 2014 and 31 December
2013 is as follows:
Table 26: Realised Gains/Losses from Sales and Liquidations, and Unrealised Gains of Equities for CIMBBG
CIMBBG
(RM000) 2014 2013
Realised gains
Shares, private equity funds and unit trusts 8,831 39,999
Unrealised gains
Shares, private equity funds and unit trusts 626,028 531,822
There were no realised and unrealised gained or losses for equity holdings in banking book for CIMBISLG and CIMBIBG as at 31 December 2014 and
31 December 2013.
The following table shows an analysis of equity investments by appropriate equity groupings and Risk-Weighted assets as at 31 December 2014 and
31 December 2013 for the Group:
Table 27(a): Analysis of Equity Investments by Grouping and RWA for CIMBBG
CIMBBG
2014 2013
Exposures Exposures
subject to subject to
(RM000) Risk-Weighting RWA Risk-Weighting RWA
Privately held 1,090,241 1,627,718 1,116,572 1,665,586
Publicly traded 72,575 72,575 59,315 59,315
Total 1,162,816 1,700,293 1,175,887 1,724,901
402
CIMB & YOU
EQUITY EXPOSURES IN BANKING BOOK (CONTINUED)
Table 27(b): Analysis of Equity Investments by Grouping and RWA for CIMBISLG
CIMBISLG
2014 2013
Exposures Exposures
Privately held 575 863 575 863
Publicly traded
Total 575 863 575 863
Table 27(c): Analysis of Equity Investments by Grouping and RWA for CIMBIBG
CIMBIBG
2014 2013
Exposures Exposures
Privately held
Publicly traded
Total
403
INTEREST RATE RISK/RATE OF RETURN RISK IN THE BANKING BOOK
IRRBB/RORBB is dened as the current and potential risk to the Groups earnings and economic value arising from movement of interest rates/benchmark
rates. In the context of Pillar 2, this risk is conned to the banking book positions, given that the interest rate risk/rate of return risk in the trading book is covered
under the Pillar 1 market risk regulations.
The material sources of IRRBB/RORBB are repricing risk (which arises from timing differences in the maturity and repricing dates of cash ows), yield curve risk
(which arises from the changes in both the overall interest rates/benchmark rates and the relative level of rates across the yield curve), basis risk (arises from
imperfect correlation between changes in the rates earned and paid on banking book positions), and option risk (arises from interest rate/rate of return related
options embedded in banking book products).
IRRBB/RORBB Management
CIMB Group manages its exposure of uctuations in interest rates through policies established by Group Asset & Liability Management Committee (GALCO).
IRRBB/RORBB undertaken by the Group is governed by an established risk appetite that denes the acceptable level of risk to be assumed by the Group. The
risk appetite is established by the Board. Group Asset Liability Management Committee is a Board delegated Committee which reports to the GRC. With the
support from Asset Liability Management Centre of Excellence and CBSM, the Group Asset Liability Management Committee is responsible for the review and
monitoring of Groups balance sheet, business and hedging strategies, the overall interest rate risk/rate of return risk prole and ensuring that such risk prole
is within the established risk appetite. CBTM is responsible for day-to-day management of exposure and gapping activities, including execution of hedging
strategies.
IRRBB/RORBB is measured by:
Economic Value of Equity (EVE) sensitivity
EVE sensitivity measures the long term impact of sudden interest rate/benchmark rate movement across the full maturity spectrum of the Groups assets
and liabilities. It denes and quanties interest rate risk/rate of return risk as the change in the economic value of equity (e.g. present value of potential future
earnings and capital) as asset portfolio values and liability portfolio values would rise and fall with changes in interest rates/benchmark rates. Such measure
helps the Group to quantify the risk and impact on capital with the focus on current banking book positions.
For the purpose of this disclosure, the impact under an instantaneous 100 bps parallel interest rate/benchmark rate shock is applied. The treatments and
assumptions applied are based on the contractual repricing maturity and remaining maturity of the products, whichever is earlier. Items with indenite
repricing maturity are treated based on the earliest possible repricing date. The actual dates may vary from the repricing prole allocated due to factors such
as pre-mature withdrawals, prepayment and so forth.
404
CIMB & YOU
INTEREST RATE RISK/RATE OF RETURN RISK IN THE BANKING BOOK (CONTINUED)
IRRBB/RORBB Management (continued)
Economic Value of Equity (EVE) sensitivity (continued)
The tables below illustrate the Groups IRRBB/RORBB under a 100 bps parallel upward interest rate/benchmark rate shock from economic value perspective:
Table 28(a): IRRBB/RORBB Impact on Economic Value for CIMBBG
CIMBBG
2014 2013
+100bps Increase
(RM000) (Decline) in Economic Value
Currency (Value in RM Equivalent)
Ringgit Malaysia (1,226,034) (866,092)
US Dollar (38,864) (136,151)
Thai Baht (64,002) (70,675)
Singapore Dollar (160,048) (136,789)
Others (18,781) (39,602)
Total (1,507,729) (1,249,309)
Table 28(b): RORBB Impact on Economic Value for CIMBISLG
CIMBISLG
2014 2013
+100bps Increase
Ringgit Malaysia (503,184) (361,487)
US Dollar (443) 496
Thai Baht (1) 0
Singapore Dollar 0 (503)
Others 21 75
Total (503,607) (361,419)
Table 28(c): IRRBB Impact on Economic Value for CIMBIBG
CIMBIBG
2014 2013
+100bps Increase
Ringgit Malaysia (771) 1,793
US Dollar (5) (7)
Thai Baht
Singapore Dollar (3) (3)
Others
Total (779) 1,783
405
Earnings at Risk (EaR)
EaR measures the short term impact of sudden interest rate/benchmark rate movement on reported earnings over the next 12 months. It denes and
quanties interest rate risk/rate of return as the change in net interest income/net rate income caused by changes in interest rates/benchmark rates.
For the purpose of this disclosure, the impact under an instantaneous 100 bps parallel interest rate/benchmark rate shock is applied to the static balance
sheet positions. The treatments and assumptions applied are based on the contractual repricing maturity and remaining maturity of the products, whichever
is earlier. Items with indenite repricing maturity are treated based on the earliest possible repricing date. The actual dates may vary from the repricing prole
allocated due to factors such as pre-mature withdrawals, prepayment and so forth.
The tables below illustrate the Groups IRRBB/RORBB under a 100 bps parallel upward interest rate/benchmark rate shock from the earnings perspective:
Table 29(a): IRRBB/RORBB Impact on Earnings for CIMBBG
CIMBBG
2014 2013
+100bps Increase
(RM000) (Decline) in Earnings
US Dollar (1,611) (30,802)
Thai Baht 2,368 (14,659)
Singapore Dollar (69,782) (62,626)
Others 1,782 16,168
Total (115,357) (96,793)
Table 29(b): RORBB Impact on Earnings for CIMBISLG
CIMBISLG
2014 2013
+100bps Increase
US Dollar (5,843) (9,489)
Thai Baht 16 7
Singapore Dollar (11) (9)
Others 1,872 (380)
Total (122,161) (81,189)
406
CIMB & YOU
Earnings at Risk (EaR) (continued)
Table 29(c): IRRBB Impact on Earnings for CIMBIBG
CIMBIBG
2014 2013
+100bps Increase
Ringgit Malaysia 1,743 1,731
US Dollar 121 157
Thai Baht
Singapore Dollar 73 72
Others (4) (4)
Total 1,933 1,956
407
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58

Our cover is a celebration of the CIMB family.

FIVE YEAR GROUP FINANCIAL HIGHLIGHTS

Financial Year Ended 31 December

SIMPLIFIED GROUP STATEMENTS OF

10.2% 12.3% Cash and balances

18.0% 17.4% Portfolio of nancial

62.3% 61.6% Loans, advances and

1.7% 1.7% Statutory deposits

7.8% 7.0% Other assets

Liabilities & Equity

7.8% 5.6% Deposits from banks

7.7% 7.7% Bills and acceptances

7.1% 7.3% Debt securities issued

2.0% 2.1% Share capital

2014 2013 7.0% 6.1% Reserves

0.1% 0.1% Preference shares

0.2% 0.2% Non-controlling

KEY INTEREST BEARING

VALUE ADDED STATEMENTS

2014 Share of results of associates 125,295 306,268

Distribution of Value Added

12.0% 11.2% To the Government:

5.0% 4.3% To Providers of Capital:

33.0% 40.5% To Reinvest to the Group:

QUARTERLY FINANCIAL PERFORMANCE

Operating revenue 3,538,053 3,407,174 3,528,596 3,672,101

Net interest income 2,066,765 2,175,463 2,171,051 2,242,269

Overheads (2,010,943) (2,007,882) (2,033,896) (2,239,242)

Prot before taxation 1,431,069 1,281,153 1,179,263 384,938

Earning per share (sen) 13.15 11.36 10.68 2.38

Dividend per share (sen) 10.00 5.00

Operating revenue 3,945,320 3,444,227 3,485,070 3,797,218

Net interest income 1,896,624 1,975,551 2,033,643 2,048,328

Overheads (2,219,589) (2,042,431) (2,059,290) (2,136,560)

Prot before taxation 1,718,494 1,386,423 1,386,257 1,358,055

Earning per share (sen) 18.65 13.98 13.94 13.50

Dividend per share (sen) 12.82 10.33

ANALYSIS OF FINANCIAL STATEMENTS

2014 2013 YOY

Net interest income ^ 9,962 9,391 6.1%

Operating income 14,146 14,672 (3.6%)

PPOP 5,854 6,214 (5.8%)

PBT 4,276 5,849 (26.9%)

Net prot 3,107 4,540 (31.6%)

EPS (sen) 37.5 60.0 (37.5%)

^ inclusive of income from Islamic banking operations

A) Net interest income

B) Net non-interest income

D) Allowance for impairment losses

SIGNIFICANT MOVEMENT IN STATEMENTS OF FINANCIAL POSITION

2014 2013 Growth

Total assets 414,156 370,913 11.7%

Total liabilities 375,765 339,684 10.6%

SIGNIFICANT MOVEMENT IN STATEMENTS OF FINANCIAL POSITION (CONTINUED)

B) Total loans, advances and nancing

C) Financial investments portfolio

E) Total deposits from customers

F) Deposits and placements of banks and other nancial institutions