Common use of Basis of preparation Clause in Contracts

Basis of preparation. The unaudited interim financial statements for the 2nd quarter and financial half year ended 30 June 2013 have been prepared under the historical cost convention except for the following assets and liabilities which are stated at fair values: financial assets held-for-trading, financial investments available-for-sale, derivative financial instruments and investment properties. The unaudited interim financial statements have been prepared in accordance with MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”) and Chapter 9, Part K of the Listing Requirements of Bursa Malaysia Securities Berhad. The unaudited interim financial statements should be read in conjunction with the audited annual financial statements of the Group and the Bank for the financial year ended 31 December 2012. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group and the Bank since the year ended 31 December 2012. The unaudited interim financial statements incorporated those activities relating to the Islamic banking business which have been undertaken by the Group. Islamic banking business refers generally to the acceptance of deposits and granting of financing under the principles of Shariah. The significant accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the most recent annual financial statements for the year ended 31 December 2012, except for the adoption of the following MFRSs, IC Interpretation and Amendments to MFRSs during the current financial period: MFRS 10 Consolidated Financial Statements MFRS 11 Joint Arrangements MFRS 12 Disclosure of Interests in Other Entities MFRS 13 Fair Value Measurement MFRS 119 Employee Benefits (as amended by IASB in June 2011) MFRS 127 Separate Financial Statements (as amended by IASB in May 2011) MFRS 128 Investments in Associates and Joint Ventures (as amended by IASB in May 2011) MFRS 3 Business Combinations (IFRS 3 Business Combinations issued by IASB in March 2004) MFRS 127 Consolidated and Separate Financial Statements (IAS 27 Consolidated and Separate Financial Statements revised by IASB in December 2003) IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Government Loans (Amendments to MFRS 1) Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 7) Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to MFRS 10, MFRS 11 and MFRS 12) The adoption of MFRS 119 has affected the way in which the Group and the Bank account for employee benefits, in particular with respect to post-employment benefits under its defined benefit plan. The financial effects of the adoption of MFRS 119 are discussed in Note A31 Changes in Accounting Policies.

Basis of preparation. The unaudited audited interim financial statements for the 2nd 4th quarter and financial half year ended 30 June 2013 31 December 2012 have been prepared under the historical cost convention except for the following assets and liabilities which are stated at fair values: financial assets held-for-trading, financial investments available-for-sale, derivative financial instruments and investment properties. The unaudited audited interim financial statements have been prepared in accordance with MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”) and Chapter 9, Part K of the Listing Requirements of Bursa Malaysia Securities Berhad. The unaudited audited interim financial statements should be read in conjunction with the audited annual financial statements of the Group and the Bank for the financial year ended 31 December 20122011. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group and the Bank since the year ended 31 December 20122011. The unaudited audited interim financial statements incorporated those activities relating to the Islamic banking business which have been undertaken by the Group. Islamic banking business refers generally to the acceptance of deposits and granting of financing under the principles of Shariah. Since the previous annual audited financial statements as at 31 December 2011 were issued, the Group has adopted the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012. This MFRS framework was introduced by the MASB in order to fully converge Malaysia's existing Financial Reporting Standards ("FRS") framework with the International Financial Reporting Standards ("IFRS") framework issued by the International Accounting Standards Board. Whilst all FRSs issued under the previous FRS framework were equivalent to the MFRSs issued under the MFRS framework, there are some differences in relation to the transitional provisions and effective dates contained in certain of the FRSs. The significant financial effects of convergence to the MFRS framework and any consequential changes in accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the most recent annual financial statements for the year ended 31 December 2012, except for the adoption as a result of the convergence are discussed in Note A31 Changes in Accounting Policies. The following MFRSsMFRS, IC Interpretation and Amendments to MFRSs have been adopted by the Group during the current year: IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to MFRS 1) Disclosures - Transfers of Financial Assets (Amendments to MFRS 7) The adoption of IC Interpretation 19, Amendments to MFRS 1 and MFRS 7 above did not have any financial periodimpact on the Group and the Bank as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. During the financial year, the Islamic banking subsidiary company of the Group adopted the Guidelines on Profit Equalisation Reserve issued by Bank Negara Malaysia, which addresses the management of displaced commercial risk by Islamic banking institutions. A discussion of the financial effects of adoption of these guidelines is provided in Note A31 Changes in Accounting Policies. The Group and the Bank have chosen to early adopt the Amendments to MFRS 101 and the Amendments to MFRSs contained in the documents entitled "Annual Improvements 2009-2011 Cycle". The adoption of the Amendments to MFRS 101 only affected disclosures in the financial statements and will not have any impact on the financial results of the Group and the Bank. The adoption of the "Annual Improvements 2009- 2011 Cycle" did not have any financial impact on the Group and the Bank. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: MFRS 10 Consolidated Financial Statements MFRS 11 Joint Arrangements MFRS 12 Disclosure of Interests in Other Entities MFRS 13 Fair Value Measurement MFRS 119 Employee Benefits (as amended by IASB in June 2011) MFRS 127 Separate Financial Statements (as amended by IASB in May 2011) MFRS 128 Investments in Associates and Joint Ventures (as amended by IASB in May 2011) IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Government Loans (Amendments to MFRS 1) Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 7) MFRS 3 Business Combinations (IFRS 3 Business Combinations issued by IASB in March 2004) MFRS 127 Consolidated and Separate Financial Statements (IAS 27 Consolidated and Separate Financial Statements revised by IASB in December 2003) IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Government Loans (Amendments to MFRS 1) Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 7) Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to MFRS 10, MFRS 11 and MFRS 12) Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 132) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in November 2009) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010) Mandatory Effective Date of MFRS 9 and Transition Disclosures (Amendments to MFRS 9 (IFRS 9 issued by IASB in November 2009), MFRS 9 (IFRS 9 issued by IASB in October 2010) and MFRS 7) The adoption of the revised MFRS 119 has affected will result in changes to the way in which recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits. The key changes to the accounting policy and financial impact to the Group and the Bank account for employee benefits, on initial adoption will be as follows: - Actuarial gains and losses (“renamed as remeasurements”) will no longer be deferred using the corridor approach and will be recognised immediately in particular with respect other comprehensive income which will not subsequently recycle to post-employment benefits under its the income statement. This will result in a decrease of approximately RM174 million and RM168 million respectively to the retained profits of the Group and the Bank as at 1 January 2013. There will also be a consequential recognition of defined benefit planreserves amounting to approximately RM194 million and RM187 million respectively in the statements of financial position of the Group and the Bank. Consequently, the net impact to shareholders’ equity of the Group and the Bank as at 1 January 2013 is expected to be approximately RM20 million and RM19 million respectively. - Pension costs for a funded benefit plan will include net interest expense or income, calculated by applying the discount rate to the net defined benefit asset or liability. This will replace the interest cost and expected return on plan assets. The annual impact on net profit and earnings per share of the Group and the Bank from this change is not expected to be significant. MFRS 9 introduces significant changes in the way the Group accounts for financial instruments. Due to the complexity of this standard and its proposed changes, the financial effects of its adoption are still being assessed by the adoption Group. IC Interpretation 20 is not applicable to the Group and the Bank as it is not relevant to the Group's operations. Government Loans (Amendments to MFRS 1) has no financial impact to the Group and the Bank as the Group and the Bank do not hold any government grants or receive any government assistance. All the other MFRSs and Amendments to MFRSs stated above are not expected to result in significant changes to the Group's and the Bank's accounting policies or have material impact to the financial results of MFRS 119 are discussed in Note A31 Changes in Accounting Policiesthe Group and the Bank.

Basis of preparation. The unaudited interim financial statements for the 2nd 3rd quarter and financial half year nine months ended 30 June September 2013 have been prepared under the historical cost convention except for the following assets and liabilities which are stated at fair values: financial assets held-for-trading, financial investments available-for-sale, derivative financial instruments and investment properties. The unaudited interim financial statements have been prepared in accordance with MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”) and Chapter 9, Part K of the Listing Requirements of Bursa Malaysia Securities Berhad. The unaudited interim financial statements should be read in conjunction with the audited annual financial statements of the Group and the Bank for the financial year ended 31 December 2012. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group and the Bank since the year ended 31 December 2012. The unaudited interim financial statements incorporated those activities relating to the Islamic banking business which have been undertaken by the Group. Islamic banking business refers generally to the acceptance of deposits and granting of financing under the principles of Shariah. The significant accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the most recent annual financial statements for the year ended 31 December 2012, except for the adoption of the following MFRSs, IC Interpretation and Amendments to MFRSs during the current financial period: MFRS 10 Consolidated Financial Statements MFRS 11 Joint Arrangements MFRS 12 Disclosure of Interests in Other Entities MFRS 13 Fair Value Measurement MFRS 119 Employee Benefits (as amended by IASB in June 2011) MFRS 127 Separate Financial Statements (as amended by IASB in May 2011) MFRS 128 Investments in Associates and Joint Ventures (as amended by IASB in May 2011) MFRS 3 Business Combinations (IFRS 3 Business Combinations issued by IASB in March 2004) MFRS 127 Consolidated and Separate Financial Statements (IAS 27 Consolidated and Separate Financial Statements revised by IASB in December 2003) IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Government Loans (Amendments to MFRS 1) Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 7) Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to MFRS 10, MFRS 11 and MFRS 12) The adoption of MFRS 119 has affected the way in which the Group and the Bank account for employee benefits, in particular with respect to post-employment benefits under its defined benefit plan. The financial effects of the adoption of MFRS 119 are discussed in Note A31 Changes in Accounting Policies. IC Interpretation 20 is not applicable to the Group and the Bank as it is not relevant to the Group's operations. Government Loans (Amendments to MFRS 1) has no financial impact to the Group and the Bank as the Group and the Bank do not hold any government grants or receive any government assistance. The adoption of all the other MFRSs and amendments to MFRSs did not have any financial impact to the Group and the Bank. With effect from 1 January 2013, the Group and the Bank have adopted the Bank Negara Malaysia's Capital Adequacy Framework (Capital Components and Basel II - Risk-weighted Assets) ("the Framework") issued on 28 November 2012. This Framework outlines the general requirements on regulatory capital adequacy ratios, the components of eligible regulatory capital as well as the levels of those ratios at which banking institutions are required to operate. The Framework has been developed based on internationally agreed standards on capital adequacy promulgated by the Basel Committee on Banking Supervision. Under the Framework, the minimum capital adequacy ratios are progressively increased from 1 January 2013 to 1 January 2019, and includes a phased introduction of a new capital conservation buffer of 2.5%. Additional capital requirements, including a new counter-cyclical buffer ranging from 0% to 2.5% will be detailed out at a later stage. On 28 June 2013, Bank Negara Malaysia issued policy documents on Financial Reporting and Financial Reporting for Islamic Banking Institutions (“Policy Documents”) to replace the Guidelines on Financial Reporting for Banking Institutions and Guidelines on Financial Reporting for Islamic Banking Institutions (BNM/GP8-i) respectively. The Policy Documents set minimum expectations for the application of the MFRSs and aim to ensure adequate disclosures in the financial statements of banking institutions. The Bank and the domestic banking subsidiaries of the Group have adopted the Policy Documents with effect from 30 June 2013. Since the adoption of the Policy Documents only affect disclosures in the financial statements, there is no impact on the financial results of the Group and the Bank. The following MFRSs, Amendments to MFRSs and IC Interpretation have been issued by the MASB but are not yet effective to the Group and the Bank: Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 132) Investment Entities (Amendments to MFRS 10, MFRS 12 and MFRS 127) Recoverable Amount Disclosures for Non-Financial Assets (Amendments to MFRS 136) Novation of Derivatives and Continuation of Hedge Accounting (Amendments to MFRS 139) IC Interpretation 21 Levies MFRS 9 Financial Instruments (IFRS 9 issued by IASB in November 2009) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010) Mandatory Effective Date of MFRS 9 and Transition Disclosures (Amendments to MFRS 9 (IFRS 9 issued by IASB in November 2009), MFRS 9 (IFRS 9 issued by IASB in October 2010) and MFRS 7) MFRS 9 introduces significant changes in the way the Group accounts for financial instruments. Due to the complexity of this standard and its proposed changes, the financial effects of its adoption are still being assessed by the Group. IC Interpretation 21 is not applicable to the Group and the Bank as it is not relevant to the Group's operations. The adoption of Amendments to MFRS 132 is not expected to have any financial impact to the Group and the Bank as the current practice for offsetting arrangements remained unchanged. The adoption of Amendments to MFRS 10, MFRS 12 and MFRS 127 is not expected to have any financial impact to the Group as the Bank is not an investment entity as defined in MFRS 10. The adoption of Amendments to MFRS 136 affects only disclosures in the financial statements and will not have any financial impact to the Group and the Bank. The amendments to MFRS 139 provide an exception from discontinuing hedge accounting in circumstances when a hedging instrument is required to be novated to a central counterparty as a result of laws or regulations. The adoption of this amendment is not expected to have any financial impact to the Group and the Bank.

Basis of preparation. The unaudited interim financial statements for the 2nd 3rd quarter and financial half year nine months ended 30 June 2013 September 2012 have been prepared under the historical cost convention except for the following assets and liabilities which are stated at fair values: financial assets held-for-trading, financial investments available-for-sale, derivative financial instruments and investment properties. The unaudited interim financial statements have been prepared in accordance with MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”) and Chapter 9, Part K of the Listing Requirements of Bursa Malaysia Securities Berhad. The unaudited interim financial statements should be read in conjunction with the audited annual financial statements of the Group and the Bank for the financial year ended 31 December 20122011. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group and the Bank since the year ended 31 December 20122011. The unaudited interim financial statements incorporated those activities relating to the Islamic banking business which have been undertaken by the Group. Islamic banking business refers generally to the acceptance of deposits and granting of financing under the principles of Shariah. Since the previous annual audited financial statements as at 31 December 2011 were issued, the Group has adopted the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012. This MFRS framework was introduced by the MASB in order to fully converge Malaysia's existing Financial Reporting Standards ("FRS") framework with the International Financial Reporting Standards ("IFRS") framework issued by the International Accounting Standards Board. Whilst all FRSs issued under the previous FRS framework were equivalent to the MFRSs issued under the MFRS framework, there are some differences in relation to the transitional provisions and effective dates contained in certain of the FRSs. The significant financial effects of convergence to the MFRS framework and any consequential changes in accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the most recent annual financial statements for the year ended 31 December 2012, except for the adoption as a result of the convergence are discussed in Note A30 Changes in Accounting Policies. The following MFRSsMFRS, IC Interpretation and Amendments to MFRSs have been adopted by the Group during the current financial period: MFRS 10 Consolidated Financial Statements MFRS 11 Joint Arrangements MFRS 12 Disclosure of Interests in Other Entities MFRS 13 Fair Value Measurement MFRS 119 Employee Benefits (as amended by IASB in June 2011) MFRS 127 Separate Financial Statements (as amended by IASB in May 2011) MFRS 128 Investments in Associates and Joint Ventures (as amended by IASB in May 2011) MFRS 3 Business Combinations (IFRS 3 Business Combinations issued by IASB in March 2004) MFRS 127 Consolidated and Separate Financial Statements (IAS 27 Consolidated and Separate Financial Statements revised by IASB in December 2003) IC Interpretation 20 Stripping Costs in the Production Phase 19 Extinguishing Financial Liabilities with Equity Instruments Severe Hyperinflation and Removal of a Surface Mine Government Loans Fixed Dates for First-time Adopters (Amendments to MFRS 1) Disclosures - Offsetting Transfers of Financial Assets and Financial Liabilities (Amendments to MFRS 7) Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to MFRS 10, MFRS 11 and MFRS 12) The adoption of MFRS 119 has affected the way in which IC Interpretation and Amendments to MFRSs above did not have any financial impact on the Group and the Bank account for employee benefits, in particular with respect as they mainly help to post-employment benefits under its defined benefit plan. The financial effects clarify the requirements of the adoption of MFRS 119 are discussed in Note A31 Changes in Accounting Policiesor provide further explanations to existing MFRSs.