Cimb Financial Statement

Financial Statements
068 Directors’ Report 081 Statement of Changes in Equity
075 Statement by Directors 085 Cash Flow Statements
075 Statutory Declaration 088 Summary of Significant

Accounting Policies
076 Independent Auditors’ Report
106 Notes to the Financial Statements
078 Balance Sheets
080 Income Statements

CIMB Bank Berhad
(13491-P)
Directors’ Report
For the financial year ended 31 December 2008
The Directors have pleasure in submitting their Report and the Audited Financial Statements of the Group and of CIMB Bank
Berhad (“CIMB Bank” or “the Bank”) for the financial year ended 31 December 2008.
Principal activities
The principal activities of the Bank during the financial year are commercial banking and the provision of related financial services,
including Islamic banking. The principal activities of the significant subsidiaries as set out in Note 11 to the Financial Statements,
consist of Islamic banking, offshore banking, debt factoring, trustees and nominee services, and property ownership and
management. There was no significant change in the nature of these activities during the financial year.
Financial results
The Group The Bank

RM’000 RM’000
Net profit after taxation and zakat

- Equity holders of the Bank 1,572,746 1,678,036
- Minority interests 1,952 -
1,574,698 1,678,036

Dividends
The dividends on ordinary shares and redeemable preference shares paid or declared by the Bank since 31 December 2007 were
as follows:
RM’000
In respect of the financial year ended 31 December 2007:

Final gross dividend of 13.63 sen per redeemable preference share, less 26% income tax, paid on 7 May 2008 300,000
In respect of the financial year ended 31 December 2008:

Special interim gross dividend of 9.09 sen per redeemable preference share,less 26% income tax,
paid on 7 May 2008 200,000
Interim gross dividend of 2.00 sen per ordinary share, less 26% income tax, paid on 25 August 2008 44,000
Tax exempt interim dividend of 2.22 sen per ordinary share, paid on 25 August 2008 66,000
610,000
The Directors now propose a second interim gross dividend of approximately 6.72 sen per share, less 25% income tax on
2,974,009,486 Redeemable Preference Shares of RM0.01 each, amounting to RM150,000,000. The second interim dividend was
approved by the Board of Directors in a resolution dated 23 January 2009.
Reserves, provisions and allowances

There were no material transfers to or from reserves or provisions or allowances during the financial year other than those disclosed
in the Financial Statements and Notes to the Financial Statements.
068 Annual Report 2008

CIMB Bank Berhad
(13491-P)
Directors’ Report
Bad and doubtful debts, and financing

Before the Financial Statements of the Group and of the Bank 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 financing and the making of allowance for doubtful debts
and financing, and satisfied themselves that all known bad debts and financing had been written off and that adequate allowance
had been made for doubtful debts and financing.
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 financing, or the amount of the allowance for doubtful debts and financing in the Financial Statements of the Group and
the Bank, inadequate to any substantial extent.
Current assets
Before the Financial Statements of the Group and of the Bank were made out, the Directors took reasonable steps to ascertain that
any current assets, other than debts, which were unlikely to realise in the ordinary course of business, their values as shown in the
accounting records of the Group and the Bank 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 the Bank misleading.
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 the Bank misleading or inappropriate.
Contingent and other liabilities

At the date of this Report, there does not exist:
(a) any charge on the assets of the Group or the Bank which has arisen since the end of the financial year which secures the
liability of any other person; or
(b) any contingent liability of the Group or the Bank which has arisen since the end of the financial year other than in the ordinary
course of banking business.
No contingent or other liability of any company in the Group has become enforceable or is likely to become enforceable within the
period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the
ability of the Bank and its subsidiaries 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 Bank, that would render any amount stated in the Financial Statements misleading.
Items of an unusual nature

In opinion of the Directors:
(a) the results of the Group’s and the Bank’s operations for the financial year have not been substantially affected by any item,
transaction or event of a material and unusual nature other than those disclosed in Notes 4, 50 and 56 to the Financial
Statements; and
(b) except as disclosed in Note 51 to the Financial Statements, there has not arisen in the interval between the end of the financial
year and the date of this Report any item, transaction or event of a material and unusual nature likely to affect substantially the
results of the operations of the Group or the Bank for the financial year in which this Report is made.
Annual Report 2008 069

CIMB Bank Berhad
(13491-P)
Directors’ Report
Directors
The names of the Directors of the Bank in office since the date of the last Report and at the date of this Report are:
Directors
Tan Sri Dato’ Seri Haidar bin Mohamed Nor
Dato’Sri Mohamed Nazir bin Abdul Razak
Tan Sri G.K. Rama Iyer
Dato’ Dr. Mohamad Zawawi bin Ismail
Datuk Dr. Syed Muhamad bin Syed Abdul Kadir
Dato’ Zainal Abidin bin Putih
Dato’ Mohd Shukri bin Hussin
Dato’ Seri Yeap Leong Huat
Tunku Dato’ Ahmad Burhanuddin
Dr. Gan Wee Beng
In accordance with Article 97 of the Bank’s Articles of Association, Dato’ Dr. Mohamad Zawawi Ismail, Dato’ Zainal Abidin Putih
and Dato’ Mohd Shukri Hussin retire from the Board at the forthcoming Annual General Meeting and being eligible, offer themselves
for re-election.
Tan Sri G.K. Rama Iyer who is above the age of seventy (70) years, retires from the Board at the Annual General Meeting pursuant
to Section 129 of the Companies Act, 1965. Under Section 129(6) of the Companies Act, 1965 it is proposed to pass a resolution
to re-elect him as a Director of the Bank to hold office until the next Annual General Meeting of the Bank.
Directors’ interests in shares and share options

According to the Register of Directors’ Shareholdings maintained by the Bank in accordance with Section 134 of the Companies
Act, 1965, the interests of the Directors who held office at the end of the financial year in the shares of the Bank or its subsidiaries
during the financial year are as follows:
No. of ordinary shares of RM1 each

As at As at
1 January Acquired Disposed 31 December
Subsidiary company
BHLB Trustee Berhad
Dato’ Seri Yeap Leong Huat* 70,000 - (70,000) -
Note: Includes shareholding of spouse, details of which are as follows:

As at Transferred As at
1 January from spouse Acquired Disposed 31 December
*Datin Seri P’ng Gek Ling 70,000 - - (70,000) -

CIMB Bank Berhad
(13491-P)
Directors’ Report
According to the Register of Directors’ Shareholdings, the beneficial interests of the Directors who held office at the end of the
financial year in the shares and share options of the ultimate holding company during the financial year are as follows:

As at As at
1 January Acquired Disposed 31 December
Ultimate holding company

Bumiputra-Commerce Holdings Berhad (“BCHB”)
Tan Sri G.K. Rama Iyer** 25,812 - - 25,812

Dato’ Dr. Mohamad Zawawi bin Ismail 4,000 - - 4,000
Dato’ Sri Mohamed Nazir bin Abdul Razak^ 28,053,261 350,000 (450,000) 27,953,261
Dato’ Mohd Shukri bin Hussin 300,112 - - 300,112
Tunku Dato’ Ahmad Burhanuddin 190,000 - (8,000) 182,000
Dato’ Zainal Abidin bin Putih# 15,000 40,000 - 55,000
Centurion Investments Sdn Bhd

Indirect Interest
Dato’ Seri Yeap Leong Huat* 200,000 24,000 - 224,000
Note: Includes shareholding of spouse/child, details of which are as follows:

As at Transferred As at
1 January from spouse Acquired Disposed 31 December
**Puan Sri Vijayalakshmi a/p Krishnaswamy 18,812 - - - 18,812

**Ganapathy Srihari a/l Rama Iyer 6,000 - - - 6,000
^
Datin Sri Azlina binti Abdul Aziz 4,450,000 - - (450,000) 4,000,000
#
Datin Jasmine binti Abdullah Heng 10,000 - - - 10,000
#
Mohamad Ari Zulkarnain bin Zainal Abidin 5,000 - - - 5,000
*Daryl Yeap Liew Sym - - 24,000 - 24,000
None of the other Directors in office at the end of the financial year had any interest in the shares and share options of the Bank,
the holding company, the ultimate holding company and the Bank’s related companies.

CIMB Bank Berhad
(13491-P)
Directors’ Report
Directors’ benefits
Since the end of the previous financial year, no Director of the Bank has received or become entitled to receive any benefit (other
than the benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in Note 43
to the Financial Statements or the fixed salary as a full time employee of the Bank) by reason of a contract made by the Bank or a
related corporation with the Director or with a firm of which the Director is a member or with a company in which the Director has
a substantial financial interest.
Neither at the end of the financial year, nor at any time during the financial year, did there subsist any other arrangements to which
the Bank is a party with the object or objects of enabling Directors of the Bank to acquire benefits by means of the acquisition of
shares in, or debentures of, the Bank or any other body corporate other than share options of the ultimate holding company.
2008 Business Plan And Strategy

The financial year ended 31 December 2008 was a challenging year both locally and globally. During the year, the Bank continued
on its transformation journey by putting in place our strategic priorities to drive higher productivity and efficiency which would brace
the Bank for the challenges of an increasingly competitive environment. The Bank continued to drive the current growth direction
and strengthen itself as a domestic core player and internationalise the CIMB franchise as a regional financial services group. In
terms of regional capacity building, the Bank made 2 significant acquisitions in 2008. The first was the acquisition of a 19.99%
stake in the Bank of Yingkou, giving the Bank a toehold into mainland China and access to its north eastern growth corridor. The
second acquisition was of a 42.13% stake in BankThai Public Company Limited (“BankThai”), completing our universal banking
footprint in Thailand.
Outlook for 2009

Uncertainty and volatility in global credit markets will continue to place upward pressure on funding costs. While the domestic
economy remains resilient, credit growth is expected to moderate to slightly below the average of the past decade as the slowing
in the economy impacts both consumers and businesses. The Bank will focus on growing its market share in consumer and
commercial banking businesses by offering innovative financial products and services to meet our customers’ needs. We will also
continue to invest in our branches network and alternative sales channels to expand reach and also improve on our quality of
service. There will be further upgrading of our systems to enhance our analytical capabilities and to create a positive experience for
our customers across all touch points. The underlying performance of our business and our strategic focus however provide the
foundation for us to manage through these uncertain times and deliver acceptable returns for shareholders over the longer term.
In this environment, the Bank recognises the need to be prudent and the importance of maintaining a strong capital base and high
levels of liquidity. We expect a difficult operating environment as the impact of the global financial crisis and economic slowdown is
felt in the regional and domestic markets. We nevertheless expect the Bank to continue to be a key earnings driver while we defend
our strong share of regional capital market activities. A significant portion of our resources will be spent on the transformation of
BankThai, as well as capturing synergies from our regional universal banking platform.

CIMB Bank Berhad
(13491-P)
Directors’ Report
Ratings by External Rating Agencies

Details of the ratings of the Bank and its debt securities are as follows:
Rating Agency Rating Classification Definition
Malaysian Rating Long Term Rating : AA+ Indicates very strong capacity to meet its
Corporation Berhad Short Term Rating : MARC-1 financial commitments and ability to withstand
Date accorded: Outlook : Stable adversity. The institution also possesses a
December 2008 good track record and has no readily apparent
weaknesses.
Moody’s Investors Long Term Rating: A3 Indicates good credit quality. However, elements
Services Ltd Long Term Subordinated may be present that suggest a susceptibility
Date accorded: Debt : Baa1 to impairment over the long term.
December 2008 Short Term Rating : P-1
Outlook : Stable
Fitch Ratings Ltd Long Term Ratings: BBB+ Indicates currently low expectation of credit risk.
Date accorded: Long Term Subordinated Capacity for timely payment of financial
April 2008 Debt : BBB commitment is adequate. However, adverse
Short Term Rating : F2 changes in circumstances and in economic
Outlook : Positive conditions are more likely to impair this capacity.
Standard & Poor’s Long Term Rating: BBB+ Indicates adequate capacity to meet its financial
Rating Agency Short Term Rating : A-2 commitments. However, adverse economic
Date accorded: Outlook : Stable conditions or changing circumstances are
September 2008 more likely to lead to a weakened capacity
of the obligor to meet its financial commitments.
Shariah Committee
All the Islamic banking businesses of the CIMB Group come under the purview of the CIMB Islamic Shariah Committee, which
resides at CIMB Islamic Bank Berhad (“CIMB Islamic”).
As per BNM/GPS1 (Guideline on the Governance of Shariah Committee for Islamic Financial Institutions), the Shariah Committee
advises the Group on the operations of its Islamic banking business to ensure that the Group is not involved in any elements/
activities which are not approved under Shariah. In advising on such matters, the Shariah Committee also considers the views of
the Shariah Council/Committees of relevant authorities like Bank Negara Malaysia and the Securities Commission on issues relating
to the activities and operations of Islamic banking and financing.
Composition of the Shariah Committee:
1. Sheikh Professor Dr. Mohammad Hashim Kamali (Chairman)

2. Sheikh Nedham Muhammad Seleh Yaqooby
3. Sheikh Dr. Haji Mohd Nai’m bin Haji Mokhtar
4. Sheikh Associate Professor Dr. Shafaai Bin Musa
5. Sheikh Dr. Haji Zainudin bin Jaffar
6. Sheikh Dr. Yousef Abdullah AlShubaily (appointed on 28 October 2008)

CIMB Bank Berhad
(13491-P)
Directors’ Report
Zakat obligations
CIMB Islamic is obliged to pay business zakat to comply with the principles of Shariah. CIMB Islamic does not pay zakat on behalf
of the shareholders or depositors.
Significant events during the financial year

Significant events during the financial year are disclosed in Note 50 to the Financial Statements.
Subsequent events after the financial year

Significant subsequent events after the financial year are disclosed in Note 51 to the Financial Statements.
Ultimate holding company

The Directors regard Bumiputra-Commerce Holdings Berhad, a quoted company incorporated in Malaysia, as the Bank’s ultimate
holding company.
Auditors
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.
Signed on behalf of the Board of Directors in accordance with their resolution.

Director

Director
Kuala Lumpur
7 April 2009

CIMB Bank Berhad
(13491-P)
Statement by Directors
Pursuant to Section 169(15) of the Companies Act, 1965
We, Tan Sri Dato’ Seri Haidar bin Mohamed Nor and Tunku Dato’ Ahmad Burhanuddin, being two of the Directors of CIMB Bank
Berhad, hereby state that, in the opinion of the Directors, the Financial Statements set out on pages 078 to 262 are drawn up
so as to give a true and fair view of the state of affairs of the Group and of the Bank as at 31 December 2008 and of the results
and cash flows of the Group and of the Bank for the financial year ended on that date, in accordance with the provisions of the
Companies Act, 1965, the MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities and Bank
Negara Malaysia Guidelines.
Signed on behalf of the Board of Directors in accordance with their resolution.

Director

Director
Kuala Lumpur
7 April 2009
Statutory Declaration
Pursuant to Section 169(16) of the Companies Act, 1965
I, Kim Kenny, being the officer primarily responsible for the financial management of CIMB Bank Berhad, do solemnly and sincerely
declare the Financial Statements set out on pages 078 to 262 are, in my opinion, 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 7 April 2009.
Commissioner for Oaths

CIMB Bank Berhad
(13491-P)
Independent Auditors’ Report

To the members of CIMB Bank Berhad
Company No: 13491-P (Incorporated in Malaysia)
Report on the Financial Statements

We have audited the Financial Statements of CIMB Bank Berhad, which comprise the balance sheets as at 31 December 2008 of
the Group and of the Bank, and the income statements, statements of changes in equity and cash flow statements of the Group
and of the Bank for the financial year then ended, and a summary of significant accounting policies and other explanatory notes,
as set out on pages 078 to 262.
Directors’ Responsibility for the Financial Statements

The Directors of the Bank are responsible for the preparation and fair presentation of these Financial Statements in accordance
with the Companies Act, 1965, the MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities
and the Bank Negara Malaysia Guidelines. This responsibility includes designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of Financial Statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
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 Bank’s
preparation and fair presentation of the Financial Statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the Financial Statements have been properly drawn up in accordance with the Companies Act, 1965, the MASB
Approved Accounting Standards in Malaysia for Entities Other Than Private Entities and the Bank Negara Malaysia Guidelines so
as to give a true and fair view of the financial position of the Group and of the Bank as of 31 December 2008 and of their financial
performance and cash flows for the year then ended.

CIMB Bank Berhad
(13491-P)
Independent Auditors’ Report

To the members of CIMB Bank Berhad
Company No: 13491-P (Incorporated in Malaysia)
Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965, in Malaysia, we also report the following:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Bank and its
subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors,
which are indicated in Note 11 to the Financial Statements.
(c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Bank’s Financial Statements are in
form and content appropriate and proper for the purposes of the preparation of the Financial Statements of the Group and we
have received satisfactory information and explanations required by us for those purposes.
(d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under
Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Bank, as a body, in accordance with Section 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
PricewaterhouseCoopers Sridharan Nair

(No. AF: 1146) (No. 2656/05/10 (J))
Chartered Accountants Chartered Accountant
Kuala Lumpur
7 April 2009

CIMB Bank Berhad
(13491-P)
Balance Sheets
As at 31 December 2008
The Group The Bank

Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Assets
Cash and short-term funds 2 21,966,362 27,774,626 14,308,346 23,115,966
Securities purchased under resale agreements 2,967,770 4,308,971 2,967,770 4,308,971
Deposits and placements with banks
and other financial institutions 3 2,139,459 5,120,678 4,967,910 5,339,365
Securities held for trading 4 9,564,281 14,233,869 6,517,399 10,814,173
Available-for-sale securities 5 7,360,190 6,699,411 6,503,390 5,832,506
Held-to-maturity securities 6 11,625,970 3,473,316 8,685,401 3,366,167
Derivative financial instruments 25 5,335,535 1,710,930 5,126,006 1,636,344
Loans, advances and financing 7 95,687,146 80,617,533 84,922,177 73,011,777
Other assets 8 2,095,571 1,404,250 1,933,236 1,202,351
Deferred taxation 9 304,537 408,971 263,993 370,523
Tax recoverable 248,055 6,750 226,786 -
Statutory deposits with central banks 10 2,723,540 3,038,272 2,453,934 2,933,983
Investment in subsidiaries 11 - - 2,245,919 2,321,488
Investment in jointly controlled entity 12 127,701 124,448 124,448 124,448
Investment in associate 13 587,280 791 595,814 -
Amount due from holding company
and ultimate holding company 14 278,350 276,778 246,872 248,715
Amount due from subsidiaries 15 - - 197,618 467,432
Amount due from related companies 16 90,926 100,368 90,819 87,949
Deferred consideration 17 - - - 46,314
Goodwill 18 3,695,075 3,695,075 3,559,075 3,559,075
Intangible assets 19 412,288 465,625 400,857 456,062
Prepaid lease payments 20 29,618 32,437 25,197 27,967
Property, plant and equipment 21 728,713 658,950 564,047 473,643
Investment properties 22 100,175 97,421 100,175 97,421
168,068,542 154,249,470 147,027,189 139,842,640

Non-current assets/disposal groups held for sale 57 82,452 762,094 42,712 115,886
Total assets 168,150,994 155,011,564 147,069,901 139,958,526

CIMB Bank Berhad
(13491-P)
Balance Sheets
As at 31 December 2008
The Group The Bank

Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Liabilities
Deposits from customers 23 127,625,741 112,189,637 107,105,025 99,307,364
Deposits and placements of banks
and other financial institutions 24 8,614,530 12,694,895 10,569,514 13,785,163
Obligations on securities sold under
repurchase agreements - 605,780 - 1,000
Derivative financial instruments 25 4,849,035 1,610,036 4,820,357 1,610,595
Bills and acceptances payable 3,091,173 4,463,113 3,085,915 4,462,145
Amount due to Cagamas Berhad 993,818 2,004,707 993,818 2,004,707
Amount due to subsidiaries 15 - - 178,140 357,760
Amount due to related companies 16 15,432 1,977 9,398 -
Other liabilities 26 2,751,252 2,969,203 2,400,962 2,790,533
Provision for taxation and zakat 5,698 104,294 - 89,316
Redeemable asset-backed bonds 27 - 31,772 - -
Irredeemable Convertible Unsecured Loan Stocks 28 667,000 667,000 667,000 667,000
Other borrowings 29 1,039,350 992,100 - -
Subordinated obligations 30 4,573,212 2,004,856 5,386,548 2,685,889
Redeemable preference shares 31(a), (b) 813,336 1,981,033 - 1,300,000
155,039,577 142,320,403 135,216,677 129,061,472
Liabilities directly associated with
non-current assets/disposal groups
classified as held for sale 57 29,499 556,090 - -
Total liabilities 155,069,076 142,876,493 135,216,677 129,061,472
Equity
Capital and reserves attributable to
equity holders of the Bank

Ordinary share capital 32 2,974,009 2,974,009 2,974,009 2,974,009
Reserves 34 9,859,290 8,931,335 8,649,475 7,723,045
12,833,299 11,905,344 11,623,484 10,697,054
Perpetual preference shares 33 200,000 200,000 200,000 200,000
Redeemable preference shares 31(c) 29,740 - 29,740 -
Minority interests 18,879 29,727 - -
Total equity 13,081,918 12,135,071 11,853,224 10,897,054

Total equity and liabilities 168,150,994 155,011,564 147,069,901 139,958,526

Commitments and contingencies 25 307,223,451 278,186,549 295,630,457 273,710,057
Credit equivalent 25 16,621,342 15,908,617 14,936,213 14,559,520

Net assets per ordinary share (RM) * 4.39 4.07 3.99 3.66
* Net assets per ordinary share is calculated by dividing the total equity less minority interests, by the number of ordinary share capital in issue.

CIMB Bank Berhad
(13491-P)
Income Statements
The Group The Bank

Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Interest income 36 7,341,222 7,196,426 6,935,440 6,658,411
Interest expense 37 (3,625,092) (3,592,428) (3,448,667) (3,292,100)
Net interest income 3,716,130 3,603,998 3,486,773 3,366,311

Income from Islamic banking operations 59 340,390 252,949 1,575 16,312
Non-interest income 38 1,375,773 2,189,294 1,827,037 2,151,592
Net income 5,432,293 6,046,241 5,315,385 5,534,215

Overheads 39 (2,697,439) (2,857,900) (2,552,656) (2,741,446)
Profit before allowances 2,734,854 3,188,341 2,762,729 2,792,769

Allowances for losses on loans, advances and financing 40 (602,714) (914,336) (569,733) (888,867)
Write-back of/(allowance for) losses on
other receivables 469 (13,796) 23 (15,866)
Write-back of/(allowance for) impairment losses 41 46,481 70,312 (8,323) (120,097)
Profit after allowances 2,179,090 2,330,521 2,184,696 1,767,939

Share of results of jointly controlled entity 12 3,253 3,410 - -
Share of results of associate 13 (40,565) 567 - -
Profit before taxation and zakat 2,141,778 2,334,498 2,184,696 1,767,939

Taxation and zakat 44 (567,080) (601,953) (506,660) (589,452)
Net profit after taxation and zakat 1,574,698 1,732,545 1,678,036 1,178,487

Attributable to:
Equity holders of the Bank 1,572,746 1,729,605 1,678,036 1,178,487
Minority interests 1,952 2,940 - -
1,574,698 1,732,545 1,678,036 1,178,487

Earnings per share attributable to ordinary equity
holders of the Bank - basic/fully diluted (sen) 45 43.20 47.50 46.09 32.37

Dividend:
- per ordinary share of 2.00 sen
(2007: 20.27 sen) less 26% (2007: 27%) tax 46 1.48 14.80 1.48 14.80
- per ordinary share of 2.22 sen

tax exempt (2007: Nil) 46 2.22 - 2.22 -
- per redeemable preference share of

22.72 sen (2007: Nil) less 26% (2007: Nil) tax 46 16.81 - 16.81 -

Attributable to equity holders of the Bank
Revaluation
reserve -
Redeemable Malaysia Other Exchange available- Perpetual
Share preference Share statutory statutory fluctuation for-sale Merger Capital Hedging Retained preference Minority Total
capital shares premium reserve reserve reserve securities deficit reserve reserve profits Total shares interests equity
The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2008 2,974,009 - 4,157,074 2,547,114 1,055 (139,230) 98,644 (1,085,928) 735,457 - 2,617,149 11,905,344 200,000 29,727 12,135,071
Net change in
available-for-sale
securities, net of tax 34 - - - - - - 306 - - - - 306 - - 306
Currency translation
difference 34 - - - - - 85,527 - - - - - 85,527 - (178) 85,349
Income and expense
recognised directly
in equity - - - - - 85,527 306 - - - - 85,833 - (178) 85,655

Net profit for the
financial year - - - - - - - - - - 1,572,746 1,572,746 - 1,952 1,574,698
Total recognised
income and
expense for the
financial year - - - - - 85,527 306 - - - 1,572,746 1,658,579 - 1,774 1,660,353
Statements of Changes in Equity
Transfer to
statutory reserves 34 - - - 610,260 - - - - - - (610,260) - - - -
Final dividends for the
financial year ended
31 December 2007 46 - - - - - - - - - - (300,000) (300,000) - - (300,000)
Interim and special
dividends for the
31 December 2008 46 - - - - - - - - - - (310,000) (310,000) - - (310,000)
Capitalised to
redeemable
preference shares 31(c) - 29,740 - - - - - - - - (29,740) - - - -
Net investment
hedge in overseas
operations and
subsidiaries 34 - - - - - - - - - (122,336) - (122,336) - - (122,336)
Acquisition of associate - - - - - - 32,167 - - - - 32,167 - - 32,167
Disposal of subsidiary - - - - - (715) - - - - - (715) - (12,622) (13,337)
At 31 December 2008 2,974,009 29,740 4,157,074 3,157,374 1,055 (54,418) 131,117 (1,085,928) 735,457 (122,336) 2,939,895 12,863,039 200,000 18,879 13,081,918
Annual Report 2008

081
(13491-P)
CIMB Bank Berhad
Attributable to equity holders of the Bank
082
(13491-P)
Revaluation
reserve -
CIMB Bank Berhad
Malaysia Other Exchange available- Perpetual

Share Share statutory statutory fluctuation for-sale Merger Capital Retained preference Minority Total
capital premium reserve reserve reserve securities deficit reserve profits Total shares interests equity
Annual Report 2008

The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2007 2,974,009 4,157,074 2,217,874 601 (9,138) 71,624 (1,085,928) 735,457 1,657,205 10,718,778 200,000 26,148 10,944,926
Net change in available-for-sale
securities, net of tax 34 - - - - - 27,020 - - - 27,020 - - 27,020
Currency translation difference 34 - - - - (130,092) - - - - (130,092) - 639 (129,453)
Income and expense recognised
directly in equity - - - - (130,092) 27,020 - - - (103,072) - 639 (102,433)
Net profit for the financial year - - - - - - - - 1,729,605 1,729,605 - 2,940 1,732,545
Total recognised income and
expense for the financial year - - - - (130,092) 27,020 - - 1,729,605 1,626,533 - 3,579 1,630,112
Transfer to statutory reserves 34 - - 329,240 454 - - - - (329,694) - - - -
Final dividends for the
31 December 2006 46 - - - - - - - - (189,965) (189,965) - - (189,965)
Special interim dividend for
the financial year ended
31 December 2007 46 - - - - - - - - (250,002) (250,002) - - (250,002)
At 31 December 2007 2,974,009 4,157,074 2,547,114 1,055 (139,230) 98,644 (1,085,928) 735,457 2,617,149 11,905,344 200,000 29,727 12,135,071
Non-distributable Distributable
Revaluation
reserve -
Redeemable Exchange available- Perpetual
Share preference Share Statutory fluctuation for-sale Merger Capital Hedging Retained preference Total
capital shares premium reserve reserve securities deficit reserve reserve profits Total shares equity
The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2008 2,974,009 - 4,157,074 2,601,434 (32,769) 55,458 (1,047,872) 746,852 - 1,242,868 10,697,054 200,000 10,897,054
Net change in available-for-sale

securities, net of tax 34 - - - - - 26,174 - - - - 26,174 - 26,174
Currency translation difference 34 - - - - (15,704) - - - - - (15,704) - (15,704)
Income and expense recognised
directly in equity - - - - (15,704) 26,174 - - - - 10,470 - 10,470
Net profit for the financial year - - - - - - - - - 1,678,036 1,678,036 - 1,678,036
expense for the financial year - - - - (15,704) 26,174 - - - 1,678,036 1,688,506 - 1,688,506
Transfer to statutory reserve 34 - - - 572,575 - - - - - (572,575) - - -
Final dividends for the financial
year ended 31 December 2007 46 - - - - - - - - - (300,000) (300,000) - (300,000)
Interim and special dividends for
the financial year ended
31 December 2008 46 - - - - - - - - - (310,000) (310,000) - (310,000)
Capitalised to redeemable
preference shares 31(c) - 29,740 - - - - - - - (29,740) - - -
Arising from net investment hedge
in overseas operations and
subsidiaries 34 - - - - - - - - (122,336) - (122,336) - (122,336)
At 31 December 2008 2,974,009 29,740 4,157,074 3,174,009 (48,473) 81,632 (1,047,872) 746,852 (122,336) 1,708,589 11,653,224 200,000 11,853,224
Annual Report 2008

083
(13491-P)
CIMB Bank Berhad
Non-distributable Distributable
084
(13491-P)
Revaluation
reserve -
CIMB Bank Berhad
Exchange available- Perpetual

Share Share Statutory fluctuation for-sale Merger Capital Retained preference Total
capital premium reserve reserve securities deficit reserve profits Total shares equity
Annual Report 2008

The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2007 2,974,009 4,157,074 2,306,812 (11,550) 66,983 (1,047,872) 853,341 798,970 10,097,767 200,000 10,297,767

Net change in available-for-sale securities,
net of tax 34 - - - - (11,525) - - - (11,525) - (11,525)
Currency translation difference 34 - - - (21,219) - - - - (21,219) - (21,219)
Income and expense recognised directly
in equity - - - (21,219) (11,525) - - - (32,744) - (32,744)
Net profit for the financial year - - - - - 1,178,487 1,178,487 - 1,178,487
Total recognised income and expense for
the financial year - - - (21,219) (11,525) - - 1,178,487 1,145,743 - 1,145,743
Transfer to statutory reserve 34 - - 294,622 - - - - (294,622) - - -
Transaction with shareholders - - - - - - (106,489) - (106,489) - (106,489)
Final dividends for the financial year
ended 31 December 2006 46 - - - - - - - (189,965) (189,965) - (189,965)
Special interim dividend for the financial
year ended 31 December 2007 46 - - - - - - - (250,002) (250,002) - (250,002)
At 31 December 2007 2,974,009 4,157,074 2,601,434 (32,769) 55,458 (1,047,872) 746,852 1,242,868 10,697,054 200,000 10,897,054
CIMB Bank Berhad
(13491-P)
Cash Flow Statements

The Group The Bank

2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities

Profit before taxation 2,141,778 2,334,498 2,184,696 1,767,939
Depreciation of property, plant and equipment 134,500 121,922 116,860 101,044
Amortisation of intangible assets 111,371 95,741 104,346 92,622
Amortisation of prepaid lease payment 1,057 1,710 998 1,517
Gain on disposal of property, plant and equipment (9,157) (2,907) (7,596) (2,355)
Fair value loss/(gain) on investment properties 2,141 (56,158) 2,141 (56,158)
Property, plant and equipment written off 364 11,956 258 11,813
Gain from disposal of available-for-sale securities (108,326) (66,465) (103,283) (54,011)
Gain from disposal of held-to-maturity securities (4,089) (566) (4,089) -
Gain/(loss) from hedging derivatives 5,891 (16,650) 5,891 (16,650)
Unrealised loss from revaluation of
securities held for trading 166,791 123,171 80,659 53,257
Unrealised gain from revaluation of
derivative financial instruments (112,452) (328,219) (129,712) (353,728)
Unrealised gain on foreign exchange (184,132) (105,982) (231,312) (132,177)
Write back of impairment losses on securities (46,481) (73,312) (49,855) (76,490)
Write back of impairment losses on intangible assets - (12,000) - (12,000)
Interest income on available-for-sale securities (221,779) (234,597) (219,603) (222,843)
Interest income on held-to-maturity securities (184,132) (18,524) (231,312) (17,623)
Interest expense on subordinated obligations 171,425 146,418 215,565 188,518
Interest expense on redeemable preference shares 87,015 96,721 42,875 54,621
Accretion of discount less amortisation of premium (133,081) (186,618) (141,766) (186,127)
Allowances for bad and doubtful debts and financing 959,410 1,208,587 913,734 1,174,082
Allowance for/(write back of) impairment loss
in subsidiaries - - 21,178 (1,413)
(Write back of)/allowance for losses on other receivables (469) 13,796 (23) 15,866
Write back of impairment losses on investment in jointly
controlled entity - - - (3,410)
Loss/(gain) from disposal of subsidiaries 2,669 (216,753) (23,693) 159
Gain on disposal of associate (2,904) - - -
Dividend income (51,234) (71,002) (124,413) (383,429)
Goodwill impairment - 3,000 37,000 198,000
Share of profit of jointly controlled entity (3,253) (3,410) - -
Share of loss/(profit) of associates 40,565 (567) - -
Transfer (from)/to profit equalisation reserve (2,200) 235 - 1,075
2,755,508 2,764,025 2,525,434 2,142,099

CIMB Bank Berhad
(13491-P)

The Group The Bank

2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
(Increase)/decrease in operating assets

Assets held under resale agreements 1,341,201 (1,606,575) 1,341,201 (1,606,575)
Deposits and placements with banks and
other financial institutions 2,971,856 (2,320,405) 371,455 (1,532,661)
Securities held for trading 4,536,619 (1,146,743) 4,249,937 (22,664)
Loans, advances and financing (16,033,205) (5,172,992) (12,828,316) (2,453,871)
Amount due from holding company and
ultimate holding company 262 (23,120) 16,411 (23,911)
Amount due from subsidiaries - - 269,814 (200,919)
Amount due from related companies 9,442 (39,021) (17,457) (49,045)
Other assets (182,426) (115,023) (359,118) (71,840)
Statutory deposits with central banks 314,732 (727,196) 480,049 (713,805)

Increase/(decrease) in operating liabilities
Deposits from customers 15,436,105 22,984,166 7,797,661 16,649,161
Deposits and placements of banks and other
financial institutions (4,080,365) 5,098,480 (3,215,649) 5,277,618
Securities sold under repurchase agreements (605,780) (5,543,391) (1,000) (6,005,676)
Derivative financial instruments (401,381) (18,909) (278,416) 76,755
Bills and acceptances payable (1,371,940) 202,364 (1,376,229) 200,013
Amount due to Cagamas Berhad (1,010,889) (1,661,117) (1,010,889) (1,661,117)
Amount due to holding company and ultimate
holding company - (7,200) - -
Amount due to subsidiaries - - (130,328) 309,061
Amount due to related companies 13,518 (30,189) 9,398 (31,470)
Other liabilities (96,415) 1,250,726 (219,063) 867,297
Cash flows generated from operations 3,596,842 13,887,880 (2,375,105) 11,148,450

Taxation paid (728,241) (285,485) (691,532) (244,433)
Net cash generated from/(used in) operating activities 2,868,601 13,602,395 (3,066,637) 10,904,017

CIMB Bank Berhad
(13491-P)

The Group The Bank

Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash flows from/(used in) investing activities

Proceeds from disposal of subsidiaries 59,101 431,725 59,101 -
Proceeds from disposal of associate 3,499 - - -
Dividend income 40,701 51,831 113,380 303,469
Investment in subsidiaries - - - (1,047,693)
Investment in associate (595,814) - (595,814) -
Cash and short term funds reclassified to
assets held for sale - (78,341) - -
Interest income received from available-for-sale securities 213,737 245,259 211,561 233,505
Interest income received from held-to-maturity securities 137,493 15,787 113,003 14,886
Net (purchase of)/proceeds from disposal of
available-for-sale securities (438,099) (219,662) (425,981) 137,844
Net purchase/reclassitication of held-to-maturity securities (8,108,803) (1,480,385) (5,264,700) (1,676,904)
Proceeds from disposal of property, plant and equipment 17,564 31,688 13,217 30,374
Purchase of property, plant and equipment (223,201) (239,451) (217,077) (218,137)
Proceeds from disposal of Islamic banking operations - - - 388,089
Addition in prepaid lease payments - (542) - -
Proceeds from disposal of intangible assets - 28,311 - 28,311
Proceeds from disposal of prepaid lease payment 1,871 2,394 1,871 11
Purchase of intangible assets (51,531) (76,267) (49,122) (69,888)
Net cash used in investing activities (8,943,482) (1,287,653) (6,040,561) (1,876,133)
Cash flows from/(used in) financing activities

Dividends paid (610,000) (439,967) (610,000) (439,967)
Interest expense paid on subordinated notes (145,948) (135,098) (189,746) (177,682)
Interest expense paid on redeemable preference shares (86,673) (97,205) (42,875) (54,621)
Repayment of floating rate certificates of deposits - (211,800) - -
Repayment of redeemable asset backed bonds (31,772) (112,705) - -
Proceeds from issuance of subordinated obligations 3,500,000 - 3,500,000 -
Repayment of other borrowings - (561,433) - -
Repayment of redeemable preference shares (1,300,000) - (1,300,000) -
Repayment of subordinated notes (1,058,400) (300,000) (1,058,400) (300,000)
Net cash generated from/(used in)

financing activities 267,207 (1,858,208) 298,979 (972,270)
Net change in cash and cash equivalents (5,807,674) 10,456,534 (8,808,219) 8,055,614
Effects of exchange rate differences (590) (128,619) 599 (48,573)
Cash and cash equivalents
at beginning of financial year 27,774,626 17,446,711 23,115,966 15,108,925
Cash and cash equivalents at end of financial year 2 21,966,362 27,774,626 14,308,346 23,115,966

CIMB Bank Berhad
(13491-P)
Summary of Significant Accounting Policies

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 Bank are prepared under the historical cost convention, modified by the
revaluation of available-for-sale securities, securities held for trading, all derivative contracts, investment properties and non-
current assets/disposal groups held for sale.
The Financial Statements of the Group and the Bank have been prepared in accordance with the Financial Reporting Standards,
MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities, Bank Negara Malaysia (“BNM”)
Guidelines, Shariah requirements and the provisions of the Companies Act, 1965.
The Financial Statements incorporate those activities relating to Islamic banking which have been undertaken by the Bank and
its wholly-owned subsidiaries, CIMB Islamic Bank Berhad (“CIMB Islamic”) and CIMB Bank (L) Limited. Islamic banking refers
generally to the acceptance of deposits, granting of financing and dealing in Islamic Securities under the Shariah principles.
BNM has granted indulgence to the Group and the Bank and other local banks in Malaysia from complying with the requirements
on the impairment of loans under the revised ‘Guideline on Financial Reporting for Licensed Institutions’ (“BNM/GP8”).
Paragraph 4, Appendix A of the revised BNM/GP8 requires the impaired loans to be measured at their estimated recoverable
amount. This requirement is principally similar to the requirement under FRS 139 - Financial Instruments: Recognition and
Measurement. During the financial year, BNM issued a revised circular on BNM/GP3 which requires impaired credit facilities to
be measured at their recoverable amount. This requirement supersedes paragraph 4, Appendix A of the revised BNM/GP8.
In view of the deferment of the implementation of FRS 139 in Malaysia, the Group and the Bank and other local banks in
Malaysia will be deemed to be in compliance with the requirement on the impairment of loans under the revised BNM/GP8 if
the allowance for non-performing loans, advances and financing is computed based on BNM’s guidelines on the ‘Classification
of Non-Performing Loans and Provision for Substandard, Bad and Doubtful Debts’ (“BNM/GP3”) requirements.
The preparation of Financial Statements in conformity with the provisions of the Companies Act, 1965, Financial Reporting
Standards and Bank Negara Malaysia Guidelines 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 Group’s and the Bank’s 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 significant to
the Financial Statements, are disclosed in Note 52.
(a) Standards, amendments to published standards and interpretations that are applicable to the Group and Bank
and are effective
The new accounting standards, amendments to published standards and interpretations to existing standards that are
effective for the Group and the Bank for the financial year ended 31 December 2008 are as follows:
• Amendment to FRS 121 - The Effect of Changes in Foreign Exchange Rates - Net Investment in a Foreign
Operations
• IC Interpretation 8 - Scope of FRS 2 - Share based Payment

CIMB Bank Berhad
(13491-P)

A Basis of preparation (Continued)

(a) Standards, amendments to published standards and interpretations that are applicable to the Group and Bank
and are effective (Continued)
All changes in accounting policies have been made in accordance with the transitional provisions in the respective standards,
amendments to published standards and interpretations. All standards, amendments and interpretations adopted by the
Group and the Bank require retrospective application except for IC Interpretation 8 which requires retrospective application
subject to the transition/provision of FRS 2. FRS 2 requires retrospective application for all equity instruments granted after
31 December 2004 and not vested at 1 January 2006.
The adoption of the new accounting standards, amendments to published standards and interpretations did not have a
material impact on the Financial Statements of the Group and Bank.
(b) Standards, amendments to published standards and interpretations to existing standards that are applicable
to the Group but not yet effective
The new standards and IC Interpretations that are applicable to the Group but which the Group and the Bank have not
early adopted, are as follows:
• FRS 8 Operating Segments (effective for accounting periods beginning on or after 1 July 2009). This new standard
requires a ‘management approach’, under which segment information is presented on the same basis as that used
for internal reporting purposes. The Group and the Bank will apply this standard when effective.
• IC Interpretation 9 Reassessment of Embedded Derivatives (effective for accounting periods beginning on or after
1 January 2010). IC Interpretation 9 requires an entity to assess whether an embedded derivative is required to be
separated from the host contract and accounted for as a derivative when the entity first becomes a party to the
contract. Subsequent reassessment is disallowed unless there is a change in the terms of contract that significantly
modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required.
The Group and the Bank will apply this standard when effective.
• IC Interpretation 10 Interim Financial Reporting and Impairment (effective for accounting periods beginning on or after
1 January 2010). IC Interpretation 10 prohibits the impairment losses recognised in an interim period on goodwill and
investments in equity instruments and in financial assets carried at cost to be reversed at a subsequent balance sheet
date. The Group and the Bank will apply this standard when effective.
• The following standards will be effective for annual periods beginning on or after 1 January 2010. The Group will apply
these standards from financial periods beginning on 1 January 2010. The Group has applied transitional provisions in
the respective standards which exempts entities from disclosing the possible impact arising from the initial application
of the standard in the financial statements of the Group and the Bank.
(i) FRS 139 Financial Instruments: Recognition and Measurement. This new standard establishes principles for
recognising and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial
items. Hedge accounting is permitted only under strict circumstances. However, with effect from 1 January 2005,
the revised BNM/GP8 has adopted certain FRS 139 principles in recognising and measuring financial assets,
financial liabilities, derivative financial instruments and hedge accounting. The relevant accounting policies are set
out in Notes G, M and U to the Financial Statements.
(ii) FRS 7 Financial Instruments: Disclosures

CIMB Bank Berhad
(13491-P)

A Basis of preparation (Continued)

(b) Standards, amendments to published standards and interpretations to existing standards that are applicable
to the Group but not yet effective (Continued)
The adoption of the above new standards and IC Interpretations is expected not to have a material impact on the Group’s
and the Bank’s Financial Statements for the financial year ending 31 December 2009.
B Economic entities in the Group

(a) Subsidiaries
The Bank treats as subsidiaries, those corporations, partnerships or other entities (including special purpose entities) in
which the Bank has the power to exercise control over the financial and operating policies so as to obtain benefits from
their activities, generally accompanying a shareholding of more than half of the voting rights. The existence and effect
of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Bank
controls another entity.
Investment in subsidiaries is stated at cost less accumulated impairment losses. Where there is an indication of
impairment, the carrying amount of the investment is assessed. A write down is made if the carrying amount exceeds
its recoverable amount.
External costs directly attributable to an acquisition, other than the costs of issuing shares and other capital instruments,
are included as part of the cost of acquisition.
The consolidated Financial Statements include the Financial Statements of the Bank and all its subsidiaries made up to
the end of the financial 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. Subsidiaries are consolidated using the purchase method of accounting, except for business
combinations involving entities or businesses under common control with agreement dates on or after 1 January 2006,
which are accounted for using the pooling-of-interests method.
Under the purchase method of accounting, the results of subsidiaries acquired or disposed of during the year are included
from the date of acquisition up to the date of disposal. The cost of an acquisition is measured as the fair value of the assets
given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable
to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The
excess of the cost of acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent
liabilities acquired at the date of acquisition is reflected as goodwill. If the cost of acquisition is less than the fair value of
the assets, liabilities and contingent liabilities of the subsidiary acquired, the difference is recognised directly in the income
statement.
Minority interest represents that portion of the profit or loss and net assets of a subsidiary attributable to equity interests
that are not owned, directly or indirectly through subsidiaries, by the parent. It is measured at the minorities’ share of the
fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minorities’ share of changes
in the subsidiaries’ equity since that date.

CIMB Bank Berhad
(13491-P)

B Economic entities in the Group (Continued)

(a) Subsidiaries (Continued)
The Directors note that business combinations involving entities or businesses under common control are outside the
scope of FRS 3 - Business Combinations and that there is no guidance elsewhere in FRS covering such transactions. FRS
contain specific guidance to be followed where a transaction falls outside the scope of FRS. This guidance is included
in paragraphs 10 to 12 of FRS 108 - Accounting Policies, Changes in Accounting Estimates and Errors. This requires,
inter alia, that where FRS does not include guidance for a particular issue, the Directors may also consider the most
recent pronouncements of other standard-setting bodies that use a similar conceptual framework to develop accounting
standards. In this regard, it is noted that the United States Financial Accounting Standards Board (“FASB”) has issued an
accounting standard covering business combinations (“FAS 141”) that is similar in a number of respects to FRS 3.
In contrast to FRS 3, FAS 141 does include, as an Appendix, limited accounting guidance for transactions under common
control which, as with FRS 3, are outside the scope of that accounting standard. The guidance contained in FAS 141
indicates that a form of accounting that is similar to pooling-of-interests method may be used when accounting for
transactions under common control.
Having considered the requirements of FRS 108 and the guidance included within FAS 141, the Directors consider
appropriate to use a form of accounting which is similar to pooling-of-interests when dealing with business combinations
involving entities or businesses under common control.
Under the pooling-of-interests method of accounting, the results of entities or businesses under common control are
presented as if the merger had been effected throughout the current and previous 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 merger is cancelled with the values of the shares received. Any
resulting credit difference is classified as equity and regarded as a non-distributable reserve. Any resulting debit difference
is adjusted against any suitable reserve. Any share premium, capital redemption reserve and any other reserves which are
attributable to share capital of the merged enterprises, to the extent that they have not been reduced by a debit difference,
are reclassified and presented as movement in other capital reserve.
All material transactions and balances between group companies are eliminated and the consolidated Financial Statements
reflect external transactions only. Where necessary, the accounting policies of subsidiaries have been changed to ensure
consistency with the policies adopted by the Group.
Where more than one exchange transaction is involved, any adjustment to the fair values of the subsidiary’s identifiable
assets, liabilities and contingent liabilities relating to previously held interests of the Group is accounted for as a
revaluation.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group’s share of
its net assets as of the date of disposal including the cumulative amount of any exchange differences that relate to the
subsidiary, and is recognised in the consolidated income statement.
(b) Investment in jointly controlled entity

The Group treats as a jointly controlled entity, corporations, partnerships or other entities over which there is contractually
agreed sharing of control by the Group with one or more parties where the strategic financial and operating decisions
relating to the entities require unanimous consent of the parties sharing control.

CIMB Bank Berhad
(13491-P)

B Economic entities in the Group (Continued)

(b) Investment in jointly controlled entity (Continued)
Investment in a jointly controlled entity is stated at cost less accumulated impairment losses. Where there is an indication
of impairment, the carrying amount of the investment is assessed. A write down is made if the carrying amount exceeds
its recoverable amount.
The Group’s interest in jointly controlled entities is accounted for in the consolidated Financial Statements by the equity
method of accounting.
Equity accounting involves recognising the Group’s share of the post acquisition results of the joint venture in the income
statement 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).
(c) Investment in associates

The Group treats as associates, corporations, partnerships or other entities in which the Group exercises significant
influence, but which it does not control, generally accompanying a shareholding of between 20% and 50% of the voting
rights. Significant influence is the power to participate in the financial and operating policy decisions of the associates but
not the power to exercise control over those policies. The Group’s investment in associates includes goodwill identified on
acquisition, net of any accumulated impairment loss.
Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The
Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the income statement, 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 Group’s 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.
C Recognition of profit income and interest income

Interest income on financial assets is recognised on an accrual basis. Interest earned on hire purchase, leasing and
block discounting agreements is spread over the terms of the loans, using the “Sum-of-Digit” method so as to produce a
constant periodic rate of interest. Accretion of discount and amortisation of premium for securities are recognised on an
effective yield basis.
Where an account is classified as non-performing, interest accrued and recognised as income prior to the date the loans
are classified as non-performing are reversed out of income and set off against the accrued interest receivable amount in the
balance sheet. Subsequently, the interest earned on non-performing loans is recognised as income on a cash basis instead
of being accrued and suspended at the same time as prescribed previously. Customers’ accounts are classified as non-
performing where repayments are in arrears for 3 months or more from the first day of default for loans and overdrafts, and
after 3 months from maturity date for trade bills, bankers’ acceptances and trust receipts.

CIMB Bank Berhad
(13491-P)

C Recognition of profit income and interest income (Continued)

The Bank’s policy on recognition of interest income on loans and advances is in conformity with BNM/GP3 and the revised
BNM/GP8.
Income from Islamic banking business is recognised on an accrual basis in accordance with the principles of Shariah.
D Recognition of fees and other income

Loans, advances and financing arrangement fees and commissions are recognised as income when all conditions precedent
are fulfilled.
Commitment fees, 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.
Dividends are recognised when the right to receive payment is established.
E Allowances for bad and doubtful debts and financing

Specific allowances are made for doubtful debts and financing which have been individually reviewed and specifically identified
as bad or doubtful.
A general allowance based on a percentage of the loans portfolio is also made to cover possible losses which are not
specifically identified.
An uncollectible loan or portion of a loan classified as bad is 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.
The Bank’s allowance for non-performing debts and financing is in conformity with the minimum requirements of BNM/GP3.
F Sale and repurchase agreements

Securities purchased under resale agreements are securities which the Group and the Bank had purchased with a commitment
to re-sell at future dates. The commitment to re-sell the securities is reflected as an asset on the balance sheet.
Conversely, obligations on securities sold under repurchase agreements are securities which the Group and the Bank had
sold from their portfolio, with a commitment to repurchase at future dates. Such financing transactions and the obligation to
repurchase the securities are reflected as a liability on the balance sheet.
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.
G Securities
The Group and the Bank classify their securities portfolio into the following categories: securities held for trading, available-for-
sale securities and held-to-maturity securities. Management determines the classification of securities at initial recognition.
(a) Securities held for trading

This category comprises securities held for trading and those designated at fair value through profit or loss at inception.
Securities are classified into this category if acquired principally for the purpose of selling in the short term or if so designated
by management. Derivatives are also categorised as held for trading unless they are designated as hedges.

CIMB Bank Berhad
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G Securities (Continued)
(a) Securities held for trading (Continued)
Pursuant to the amendments to the Revised BNM/GP8 guidelines, the Bank and its banking subsidiaries are now permitted
by BNM for the period from 1 July 2008 to 31 December 2009 to reclassify non-derivatives held for trading securities into
held-to-maturity securities or available-for-sale securities. In the 4th quarter of 2008, the Bank and its banking subsidiaries
reclassified a portion of their securities in the held for trading category to held-to-maturity category based on current
market prices at the relevant dates of the reclassification. Further details of the reclassification are set out in Note 4 to these
Financial Statements.
Reclassifications are made at the fair value at the date of the reclassification. The fair values of the securities becomes the
new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before the reclassification
date are subsequently made. The effective interest rates for the securities reclassified to held-to-maturity category is
determined at the reclassification date. Further changes in estimates of future cash flows are recognised as an adjustment
to the effective interest rates.
(b) Available-for-sale securities

Available-for-sale securities are those intended to be held for an indefinite period of time, which may be sold in response
to needs for liquidity or changes in interest rates, exchange rates or equity prices.
(c) Held-to-maturity securities

Held-to-maturity securities are non-derivative instruments with fixed or determinable payments and fixed maturities that
the Group’s and the Bank’s management has the positive intent and ability to hold to maturity. If the Group or the Bank
sell other than an insignificant amount of held-to-maturity securities, the entire category will be tainted and reclassified as
available-for-sale securities.
Securities are initially recognised at fair value plus transaction costs for all securities not carried at fair value through profit or loss
and securities not held for trading. Securities are derecognised when the rights to receive cash flows from the securities have
expired or where the Group or the Company have transferred substantially all risks and rewards of ownership.
Securities held for trading and available-for-sale securities 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 securities held for
trading category are included in the income statement in the period which they arise. Gains and losses arising from changes
in fair value of available-for-sale securities are recognised directly in equity, until the securities are derecognised or impaired at
which time the cumulative gains or loss previously recognised in equity are recognised in the income statement.
Held-to-maturity securities 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 income statement.
Interest from securities held for trading, available-for-sale securities and held-to-maturity securities is calculated using the
effective interest method and is recognised in the income statement. Dividends from available-for-sale equity instruments are
recognised in the income statement when the entity’s right to receive payment is established.
The fair values of quoted securities are based on quoted prices in active markets. If the market for an instrument is not active
and for unquoted securities, the Group and the Bank establish fair value by using valuation techniques. These include the
use of recent arm’s length transactions, discounted cash flow analysis, option pricing models and other valuation techniques
commonly used by market participants.

CIMB Bank Berhad
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H 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 asset’s
carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Group and the Bank 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 income statement
during the financial period in which they are incurred.
Freehold land is not depreciated as it has an infinite life. 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:
Building on freehold land 40 years

Building on leasehold land 40 years or over the balance period of the lease, whichever is shorter
Office equipment, furniture and fixtures:
- office equipment 5 years
- furniture and fixtures 10 years
Computer equipment:
- servers and hardware 3 years
- ATM machine 5 years
Computer equipment under lease 3 years or over the period of the lease, whichever is shorter
Motor vehicles 5 years
Renovations to rented premises 5 years or over the period of the tenancy, whichever is shorter
Depreciation on assets under construction commences when the assets are ready for their intended use.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Property, plant and equipment are reviewed for impairment at each balance sheet date 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.
I Intangible assets
(a) Goodwill
Goodwill arises on business combinations when the cost of acquisition exceeds the fair value of the Bank’s share of the
identifiable assets, liabilities and contingent liabilities acquired. 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. Goodwill is tested annually
for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed.
Impairment testing is performed annually by comparing the present value of the CGU’s projected cash flows against the
carrying amount of its net assets which include the allocated goodwill. The allocation is made to those CGUs or groups of
CGUs that are expected to benefit from the synergies of the business combination in which the goodwill arose. The Group
and the Bank allocate goodwill to each business unit (Note 18).

CIMB Bank Berhad
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I Intangible assets (Continued)

(a) Goodwill (Continued)
Goodwill on acquisitions of associates and jointly controlled entities respectively are included in investments in associates
and jointly controlled entities. Such goodwill is tested for impairment as part of the overall balance.
Under the current applicable approved accounting standards for business combinations, FRS 3 - Business Combinations
which apply to the accounting for business combinations for which the agreement date is on or after 1 January 2006, the
provisions of the standard are applied prospectively and no retrospective changes in respect of accounting for business
combinations prior to 1 January 2006 have been made. Under FRS 3, previously recognised negative goodwill (if any) has
been derecognised with a corresponding adjustment to the opening balances of retained earnings.
(b) Other intangible assets

Other intangible assets include credit card customer relationships, core deposits and computer software. 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 benefits attributable to the assets will flow from their use. The value of intangible assets which are
acquired in a business combination is generally determined using income approach methodologies. Acquired computer
software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.
Intangible assets that have an indefinite 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 finite 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 finite useful lives as follows:
Credit card customer relationships 12 years

Core deposits 8 years
Computer software:
- core and front-end systems 5 years
- others 3 years

J Assets purchased under lease
(a) Finance lease
Assets purchased under lease which in substance transfers the risks and benefits of ownership of the assets to the
Group or the Bank 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 classified as operating lease and the related rentals are charged to income
statement as incurred.

CIMB Bank Berhad
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J Assets purchased under lease (Continued)

(b) Operating lease
Leasehold land
Leasehold land that normally has an indefinite 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 benefits provided.
Others
Leases of assets under which all the risks and benefits of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases are charged to the income statement 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.
K Assets sold under lease

(a) Finance lease
When assets are sold under a finance 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 finance income. Lease
income is recognised over the term of the lease using the net investment method, which reflects a constant periodic rate
of return.
(b) Operating lease

Assets leased out under operating leases are included in property, plant and equipment in the balance sheet. 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.
L Bills and acceptances payable

Bills and acceptances payable represent the Group’s or the Bank’s own bills and acceptances rediscounted and outstanding
in the market.
M 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 values. Fair values are obtained from quoted market prices in active markets, including recent market
transactions, and valuation techniques, including discounted cash flow 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 income statement.
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 modification or repackaging) or based on a valuation technique whose
variables include only data from observable markets. When such evidence exists, the Group and the Bank recognise
profits immediately.

CIMB Bank Berhad
(13491-P)

M Derivative financial instruments and hedge accounting (Continued)

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 Bank designate certain derivatives as either: (1)
hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge) or (2) hedges of highly probable
future cash flows attributable to a recognised asset or liability, or a forecasted transaction (cash flow 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 Bank 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
and the Bank also document their 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 flows of hedged items.
(a) Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income
statement, 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
for which the effective interest method is used is amortised to the income statement over the period to maturity. The
adjustment to the carrying amount of a hedged equity security remains in retained earnings until the disposal of the
equity security.
(b) Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
are recognised in equity. The gain and loss relating to the ineffective portion is recognised immediately in the income
statement. Amounts accumulated in equity are recycled to the income statement in the periods in which the hedged item
will affect the income statement.
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 income statement. 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 income statement.
(c) Net investment hedge

Hedges of net investments in foreign operations are accounted for similarly to cash flow 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 income statement.
Gains and losses accumulated in the equity are included in the income statement 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 income statement.

CIMB Bank Berhad
(13491-P)

N Borrowings
Borrowings are initially recognised based on the proceeds received, net of transaction costs incurred. In subsequent periods,
borrowings are stated at amortised cost using the effective yield method; any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings.
Preference shares, which are mandatorily redeemable on a specific date, are classified as liabilities. The dividends on these
preference shares are recognised in the income statement as interest expense.
O Hire Purchase Receivables Securitisation Programme

The Group through its Hire Purchase Receivables Securitisation Programme, sells undivided shares of hire purchase receivables
to a special purpose vehicle (“SPV”). The SPV will in turn issue bonds to raise funds for the purchase of assets.
The Group receives fee income for various services provided to the SPV. These fees are determined on an arms length basis
and are recognised on an accrual basis. Deferred consideration/balance of hire purchase receivables obtained under this
programme are held at cost and an allowance is made for any impairment loss based on the position of the SPV and its
underlying assets.
P Currency translations
(a) Functional and presentation currency
Items included in the Financial Statements of each of the Group’s 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 Group’s and the Bank’s 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 income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as 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
profit or loss, and other changes in the carrying amount are recognised in equity.
Translation differences on non-monetary financial assets and liabilities, such as equity instruments held at fair value through
profit or loss, are reported as part of the fair value gain or loss. Translation differences on non-monetary financial assets
such as equities classified as available-for-sale are included in the available-for-sale reserve in 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 income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the closing rate.

CIMB Bank Berhad
(13491-P)

P Currency translations (Continued)

(c) Group companies
The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that
have a functional currency different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;
• income and expenses for each income statement 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.
Q Income and deferred taxes

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 profits.
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 profit or loss.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences 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 fair value re-measurement of available-for-sale securities, which are charged or credited directly
to equity, is also credited or charged directly to equity and is subsequently recognised in the income statement together with
the deferred gain or loss.
Deferred income tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the balance
sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
R Share capital
(a) Classification
Ordinary shares and non-redeemable preference shares with discretionary dividends are classified as equity. Other shares
are classified as equity and/or liability according to the economic substance of the particular instrument. Distributions to
holders of a financial instrument classified 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 are recognised as a liability when the shareholders’ right to receive the dividend is established.

CIMB Bank Berhad
(13491-P)

S Employee benefits
(a) Short term employee benefits
The Group and the Bank recognise a liability and an expense for bonuses. The Group and the Bank 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 benefits are accrued in the period in which
the associated services are rendered by employees of the Group and Bank.
(b) Post employment benefits

The Group and the Bank have various post-employment benefit schemes. These benefit plans are either defined
contribution or defined benefit plans.
Defined contribution plans

A defined contribution plan is a pension plan under which the Group and the Bank pay fixed 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
sufficient assets to pay all employees benefits relating to employee service in the current and prior periods.
The Group’s and Bank’s contributions to defined contribution plans are charged to the income statement in the period to
which they relate. Once the contributions have been paid, the Group and the Bank 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.
Defined benefit plans

A defined benefit plan is a pension plan that defines an amount of pension benefit to be provided, usually as a function of
one or more factors such as age, years of services or compensation.
The liability in respect of a defined benefit plan is the present value of the defined benefit obligation at the balance sheet
date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains/losses and past
service cost.
The Group and the Bank determine the present value of the defined benefit obligation and the fair value of any plan assets
with sufficient regularity such that the amounts recognised in the Financial Statements do not differ materially from the
amounts that would be determined at the balance sheet date.
The defined benefit obligation, calculated using the projected unit credit method, is determined by independent actuaries,
considering the estimated future cash outflows using market yields at balance sheet date of government securities which
have currency and terms to maturity that approximate the terms of the related liability.
Plan assets in excess of the defined obligation are subject to the asset limitation specified in FRS 119 - Employee Benefits.
Actuarial gains and losses arise from experience adjustments and changes in actuarial assumptions. The amount of
net actuarial gains and losses recognised in the income statement is determined by the corridor method in accordance
with FRS 119 and is charged or credited to income over the average remaining service lives of the related employees
participating in the defined benefit plan.
Past-service costs are recognised immediately in income, unless the changes to the plan are conditional on the employees
remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised
on a straight-line basis over the vesting period.

CIMB Bank Berhad
(13491-P)

S Employee benefits (Continued)

(c) Other long term employee benefits
The cost of long term employee benefits (for example, long term service leave) is accrued to match the rendering of the
services by the employees concerned using an accounting methodology similar to that for defined benefit plans.
(d) Termination benefits

Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or
whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group and the Bank recognise
termination benefits when they are demonstrably committed to either terminate the employment of current employees
according to a detailed formal plan without possibility of withdrawal or to provide termination benefits as a result of an
offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the balance sheet date are
discounted to their present value.
(e) Share-based compensation benefits

The equity compensation benefits of the Group comprise the following:
(i) Share options granted by the ultimate holding company under the Modified Executive Employee Share Option Scheme
(“EESOS”).
As allowed in the transition provisions of FRS 2 - Share-based Payment, the Group and the Bank have elected not to
apply FRS 2 to these equity instruments which were granted:
(a) before 31 December 2004

(b) after 31 December 2004 but had vested before 1 January 2006
(ii) Management Equity Scheme (‘MES’).
FRS 2 only applies to transactions involving a transfer of equity instruments between shareholders and option holders,
hence entitlements based on ordinary shares of the ultimate company granted under the Management Equity Scheme
(‘MES’) is out of the scope of FRS 2.
T Impairment of assets
Assets that have an indefinite 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 asset’s fair value less costs to sell and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash-generating units). Non financial 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 income statement 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 income statement unless it reverses an impairment loss on a revalued asset in which
case it is taken to revaluation surplus.

CIMB Bank Berhad
(13491-P)

U Impairment of securities portfolio

The Group and the Bank assess at each balance sheet date whether there is objective evidence that the securities are
impaired. A security or a group of securities is impaired and impairment losses are incurred if, and only if, there is objective
evidence of impairment as a result of one or more events that occurred after the initial recognition of the securities (a “loss
event”) and that loss event has an impact on the estimated future cash flows of the securities that can be reliably estimated.
(a) Securities carried at amortised cost

If there is an objective evidence that an impairment loss on held-to-maturity instruments held at amortised cost has been
incurred, the amount of loss is measured as the difference between the securities’ carrying amount and the present value
of estimated future cash flows discounted at the securities’ original effective interest rate. The carrying amount of the
securities is reduced through the use of an allowance account and the amount of the loss is recognised in the income
statement.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised, the previously recognised impairment loss is reversed by adjusting
the allowance account. The amount of the reversal is recognised in the income statement.
(b) Securities carried at fair value

In the case of equity instruments classified as available-for-sale securities, a significant 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 an objective
evidence that an impairment loss on available-for-sale securities has been incurred, the cumulative loss - measured
as the difference between the acquisition cost and the current fair value, less any impairment loss on the securities
previously recognised in income statement - is removed from equity and recognised in the income statement. Impairment
losses recognised in the income statement on equity instruments are not reversed through the income statement. If,
in a subsequent period, the fair value of a debt instrument classified as available for sale securities increases and the
increase can be related objectively to an event occurring after the impairment was recognised in the income statement,
the impairment loss is reversed through the income statement.
V Foreclosed properties
Foreclosed properties are stated at the lower of cost and net realisable value. When an indication of impairment exists, the
carrying amount of the asset is assessed and written-down to its recoverable amount.
W Provisions
Provisions are recognised by the Group and the Bank when all of the following conditions have been met:
(i) the Group and the Bank have a present legal or constructive obligation as a result of past events:
(ii) it is probable that an outflow of resources to settle the obligation will be required; and
(iii) a reliable estimate of the amount of obligation can be made.
Where the Group and the Bank expect a provision to be reimbursed, the reimbursement is recognised as a separate asset but
only when the reimbursement is virtually certain. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow 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 outflow with respect to any
one item included in the same class of obligations may be small.

CIMB Bank Berhad
(13491-P)

W Provisions (Continued)
Provisions are measured at the present values of the expenditures expected to be required to settle the obligation using a pre-
tax rate that reflects current market assessments of the time value of money and risks specific to the obligation. The increase
in the provision due to passage of time is recognised as interest expense.
X Dealers’ handling charges

Handling charges paid to hire purchase dealers are expensed off to the income statement.
Y Zakat
This represents business zakat. It is a contribution amount payable by CIMB Islamic Bank berhad (“CIMB Islamic”)to comply with
the principles of Shariah. Zakat provision is calculated based on ‘Adjusted Growth’ method, at 2.5% for individual Bumiputra
shareholders of Bumiputra-Commerce Holdings Berhad, the Bank’s ultimate holding company.
Z Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, bank balances and deposit placements maturing less than one month.
AA Compound financial instruments

Compound financial instruments contain both a liability and equity element. The Group’s and the Bank’s compound financial
instruments comprise Irredeemable Convertible Unsecured Loan Stocks (“ICULS”) which were issued in 2001. Pursuant to
the transition provisions of FRS 132 - Financial Instruments: Disclosure and Presentation, the classification of compound
instruments into equity and liability components need to be applied only to financial instruments that are issued during reporting
periods beginning on or after 1 January 2003. Accordingly, the ICULS continue to be classified according to their legal form i.e.
as liability instruments.
On issue of a financial instrument that contains both a liability and an equity component, the fair value of the liability portion is
determined using a market interest rate for an equivalent financial instrument; this amount is carried as liability on the amortised
cost basis until extinguished on conversion or maturity of the instrument. The remainder of the proceeds is allocated to the
conversion option which is recognised and included in shareholders’ equity; the value of the conversion option is not changed
in subsequent periods.
AB Segment reporting
Segment reporting is presented for enhanced assessment of the Group’s risks and returns. A business segment is a group
of assets and operations engaged in providing products or services that are subject to risk and returns that are different from
those of other business segments. A geographical segment is engaged in providing products or services within a particular
economic environment that are subject to risks and returns that are different from those components.
Segment revenue, expense, assets and liabilities are those amounts resulting from the operating activities of a segment
that are directly attributable to the segment and the relevant portion that can be allocated on a reasonable basis to the
segment. Segment revenue, expense, assets and segment liabilities are determined before intra-group balances and intra-
group transactions are eliminated as part of the consolidation process, except to the extent that such intra-group balances and
transactions are between group enterprises within a single segment.

CIMB Bank Berhad
(13491-P)

AC Non-current assets/disposal groups held for sale

Non-current assets/disposal groups are classified as assets held for sale and stated at the lower of carrying amount and
fair value less costs to sell if their carrying amount is recovered principally through a sale transaction rather than through
continuing use.
AD Investment properties
Investment properties, comprising principally land and office buildings, are held for long term rental yields or for capital
appreciation or both, and are not occupied by the Group, and the Bank.
Investment properties 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
specific asset. If this information is not available, the Group and the Bank use alternative valuation methods such as recent
prices on less active markets or discounted cash flow projections. Changes in fair values are recorded in the income statement
as part of other income.
On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits are
expected from its disposal, it shall be derecognised (eliminated from the balance sheet). The difference between the net
disposal proceeds and the carrying amount is recognised in profit or loss in the period of the retirement or disposal.

CIMB Bank Berhad
(13491-P)
Notes to the Financial Statements

1 General information
The Bank is principally engaged in all aspects of commercial banking and in the provision of related financial services, including
Islamic banking. The principal activities of the significant subsidiaries as set out in Note 11 to the Financial Statements, consist
of Islamic banking, offshore banking, debt factoring, trustees and nominee services, and property ownership and management.
There was no significant change in the nature of these activities during the financial year.
The holding company of the Bank is CIMB Group Sdn Bhd and the Directors regard the ultimate holding company as Bumiputra-
Commerce Holdings Berhad (“BCHB”), a quoted company, both of which are incorporated in Malaysia.
The Bank is a limited liability company, incorporated and domiciled in Malaysia.
The address of the Bank’s registered office is 5th Floor, Bangunan CIMB, Jalan Semantan, Damansara Heights, 50490 Kuala
Lumpur, Malaysia.
The Bank’s principal place of business is at No. 6, Jalan Tun Perak, 50050 Kuala Lumpur, Malaysia.
2 Cash and short-term funds

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash and balances with banks and other

financial institutions 2,830,307 1,790,222 2,629,900 1,807,150
Money at call and deposit placements maturing
within one month 19,136,055 25,984,404 11,678,446 21,308,816
21,966,362 27,774,626 14,308,346 23,115,966
Included in the Bank’s and Group’s cash and short-term funds are RM236,891 (2007: RM236,891) of money at call and
deposit placements relating to a jointly controlled entity, Proton Commerce Sdn Bhd (“PCSB”).
Included in the Group’s cash and short term funds are the following monies held in trust in relation to the Group’s stockbroking
business:
The Group
2008 2007
RM’000 RM’000

Client’s trust balances - 25,472
Dealers’ representatives’ balances - 9,345
- 34,817


CIMB Bank Berhad
(13491-P)

3 Deposits and placements with banks and other financial institutions

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Licensed banks 1,599,159 3,285,341 4,627,910 4,420,128
Licensed investment banks 50,000 473,096 50,000 473,096
Bank Negara Malaysia 210,300 1,296,100 210,000 380,000
Other financial institutions 280,000 66,141 80,000 66,141
2,139,459 5,120,678 4,967,910 5,339,365
Included in the Bank’s deposits and placements with banks and other financial institutions are exposures to Restricted Profit
Sharing Investment Accounts (“RPSIA”), as part of an arrangement with CIMB Islamic. The RPSIA is a contract based on
the Mudharabah principle between the Bank and CIMB Islamic to finance a specific business venture where the Bank solely
provides capital and the business ventures are managed solely by the entrepreneur. The profit of the business venture is shared
between both parties based on a pre-agreed ratio and management fees.
As at 31 December 2008, the RPSIA placements amounted to RM3,020 million (2007: RM374 million) for a tenure between 1
to 3 months at profit rates from 3.56% to 3.93% per annum (2007: 3.56% to 3.93% per annum).
4 Securities held for trading

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Money market instruments
Unquoted
Malaysian Government Securities 1,342,488 416,150 1,324,809 290,653
Cagamas bonds 205,323 279,354 205,323 279,354
Khazanah bonds 9,791 96,918 - 24,329
Malaysian Government treasury bills 38,262 119,294 38,262 89,552
Other Government securities - 630,359 - -
Bank Negara Malaysia bills 552,598 97,736 552,598 97,736
Bank Negara Malaysia negotiable notes 46,892 409,900 46,892 191,735
Bankers’ acceptances and Islamic accepted bills 1,174,286 800,764 595,865 595,636
Negotiable instruments of deposit 3,529,709 1,149,588 1,285,891 1,130,007
Credit-linked notes 172,884 353,247 159,942 331,530
Commercial papers 332,605 45,099 312,939 20,793
Government Investment Issue 81,376 56,075 66,727 56,075
7,486,214 4,454,484 4,589,248 3,107,400

CIMB Bank Berhad
(13491-P)

4 Securities held for trading (Continued)

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Quoted securities
In Malaysia
Shares 137,527 724,530 134,758 712,956
Warrants 5 35 - -
Loan stocks 1,272 5,838 - 3,719
138,804 730,403 134,758 716,675
Outside Malaysia
Shares 326 43,041 - -
Unquoted securities
In Malaysia
Shares 5,001 - 5,001 -
Private and Islamic debt securities 1,416,966 6,704,160 1,401,255 6,683,741
1,421,967 6,704,160 1,406,256 6,683,741
Outside Malaysia
Private and Islamic debt securities 516,970 2,301,781 387,137 306,357
9,564,281 14,233,869 6,517,399 10,814,173
Securities held for trading of RMNil (2007: RM995,000) have been pledged to third parties in relation to securities sold under
repurchase agreements.
In the 4th quarter of 2008, the Bank and its banking subsidiaries reclassified a portion of their securities in held for trading
category to the held-to-maturity category based on current market prices at the relevant dates of the reclassification. The
reclassification has been accounted for in accordance with the BNM circular on ‘Reclassification of Securities under Specific
Circumstances’ dated 17 October 2008, which is effective from 1 July 2008 until 31 December 2009.
The fair value of the securities reclassified from held for trading category to held-to-maturity category, as of the respective dates
of reclassification are RM5,955,065,000 and RM4,396,670,000 for the Group and the Bank, respectively.
Included in the non-interest income (Note 38) is the net gains/(losses) arising from the change in fair value recognised in the
income statement in respect of the reclassified securities:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Net fair value (loss)/gain (110,605) (30,228) 12,449 (198)
As of date of reclassification, the effective interest rates on the reclassified held for trading securities, based on the new cost
is an average of 6.63% per annum and 6.52% per annum for the Group and the Bank respectively, with expected recoverable
cash flows of approximately RM6,110,905,000 and RM4,430,456,000 for the Group and the Bank respectively, including any
coupons receivable on the securities.

CIMB Bank Berhad
(13491-P)

5 Available-for-sale securities
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Unquoted
Malaysian Government Securities 109,729 177,504 99,710 53,221
Khazanah bonds 58,376 193,238 9,791 127,456
Government Investment Issue 187,714 15,195 66,477 15,195
Commercial papers 134,040 29,707 134,040 29,707
Malaysian Government treasury bills - 87,906 - 87,906
Other Government treasury bills - 50,003 - -
Bank Negara Malaysia bills - 23,322 - 13,375
Cagamas bonds 296,925 397,330 248,011 362,910
Bank Negara negotiable notes - 125,393 - 125,393
786,784 1,099,598 558,029 815,163
Quoted securities
In Malaysia
Unit trusts 703,889 702,318 703,889 702,318
Shares - 6,669 - 5,500
703,889 708,987 703,889 707,818
Outside Malaysia
Shares - 7,627 - 7,627
Private debt securities 115,216 - 115,216 -
115,216 7,627 115,216 7,627
Unquoted securities
In Malaysia
Private debt securities 5,401,347 4,689,956 5,001,921 4,288,143
Shares 378,104 381,032 378,989 380,457
Loan stocks 30,715 18,183 30,715 18,183
5,810,166 5,089,171 5,411,625 4,686,783
Outside Malaysia
Shares 9,606 22,244 633 121
Private equity funds 83,953 68,384 - -
Unit trust funds 136,578 59,318 - -
Private debt securities - 29,866 - -
230,137 179,812 633 121
7,646,192 7,085,195 6,789,392 6,217,512
Allowance for impairment losses:

Private debt securities (279,343) (367,672) (279,343) (367,672)
Quoted shares - (7,076) - (6,298)
Unquoted shares (6,659) (11,036) (6,659) (11,036)
(286,002) (385,784) (286,002) (385,006)
7,360,190 6,699,411 6,503,390 5,832,506

CIMB Bank Berhad
(13491-P)

6 Held-to-maturity securities
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Unquoted
Malaysian Government Securities 149,967 - 149,967 -
Cagamas bonds 294,817 290,000 294,817 290,000
Bank Negara Malaysia negotiable notes - 98,057 - 98,057
444,784 388,057 444,784 388,057
Unquoted securities
In Malaysia
Shares 462 270 192 -
Loans stocks 32,478 32,478 - -
Danaharta Urus Sdn Bhd bonds 929,639 1,151,932 929,639 1,151,932
Private debt securities 7,738,316 1,737,931 6,538,110 1,635,072
8,700,895 2,922,611 7,467,941 2,787,004
Outside Malaysia
Private debt securities 2,324,723 - 570,525 -
Accretion of discount net of amortisation of premium 231,116 187,611 231,116 191,106

Less: Allowance for impairment losses (75,548) (24,963) (28,965) -
11,625,970 3,473,316 8,685,401 3,366,167
Private debt securities amounting to RM954 million are funded by a RPSIA depositor, as part of an arrangement with CIMB
Islamic.
Included in the held-to-maturity securities are securities transferred from the held for trading category during the last quarter of
the year, with the following carrying value and fair value as at 31 December 2008 (2007: no such reclassification permitted):
The Group The Bank

2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Carrying value 5,973,951 - 4,393,006 -

Fair value 5,946,391 - 4,456,902 -

CIMB Bank Berhad
(13491-P)

7 Loans, advances and financing

(i) By type
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Overdrafts 7,238,366 6,496,719 7,002,421 6,371,371
Term loans/financing
- Housing loan/financing 25,110,340 19,135,860 23,078,689 18,371,408
- Syndicated term loan 6,670,195 7,700,986 2,543,434 2,537,520
- Other term loans/financing 35,010,869 24,882,855 30,970,022 24,273,417
- Factoring receivables 48,737 62,019 - -
- Lease receivables 73,227 104,231 - -
- Hire purchase receivables 13,663,402 14,332,824 11,484,488 12,628,301
Bills receivable 153,420 251,143 153,420 251,111
Trust receipts 795,516 963,531 771,629 957,979
Claim on customers under acceptance credit 5,650,525 5,937,119 5,493,816 5,847,316
Staff loans 442,311 445,450 441,375 444,047
Credit card receivables 2,663,733 2,241,590 2,660,753 2,241,590
Revolving credit 7,619,761 5,987,416 6,429,039 5,354,865
Share margin financing 172,954 281,000 172,954 281,000
105,313,356 88,822,743 91,202,040 79,559,925

Less: Unearned interest (4,717,873) (2,951,290) (1,870,394) (2,120,929)
100,595,483 85,871,453 89,331,646 77,438,996

Less: Islamic financing sold to Cagamas (294,946) (575,918) - -
Gross loans, advances and financing 100,300,537 85,295,535 89,331,646 77,438,996

Fair value changes arising from fair value hedges 177,618 - 177,618 -
100,478,155 85,295,535 89,509,264 77,438,996

Less: Specific allowance (3,184,511) (3,300,748) (3,140,552) (3,194,131)
97,293,644 81,994,787 86,368,712 74,244,865

Less: General allowance (1,606,498) (1,377,254) (1,446,535) (1,233,088)
Total net loans, advances and financing 95,687,146 80,617,533 84,922,177 73,011,777
(a) Included in the Bank’s loans, advances and financing balances are RM2,061,944,000 (2007: RM2,064,458,000)
of net loans relating to that of a jointly controlled entity, PCSB. The revenue and risks of these accounts are shared
equally between the Bank and the joint venture partner, Proton Edar Sdn Bhd, pursuant to the terms of a Joint
Venture Agreement.
(b) Included in other term loans is RM3,021,205,464 (2007: RMNil) provided on normal commercial terms which is
exempted from general allowance by Bank Negara Malaysia.

CIMB Bank Berhad
(13491-P)

7 Loans, advances and financing (Continued)

(i) By type (Continued)
(c) During the financial year, the Bank has undertaken fair value hedge on the interest rate risk of the RM2 billion loans
using interest rate swaps.
The Group and The Bank
2008 2007
RM’000 RM’000
Gross loan hedged 2,000,000 -

Fair value changes arising from fair value hedges 177,618 -
2,177,618 -
The fair values of interest rate swaps as at 31 December 2008 were RM202,404,724 (2007: RMNil).
(d) As part of an arrangement with CIMB Islamic in relation to the RPSIA, the Bank records as deposits and placements
with banks and other financial institutions, its exposure in the arrangement (See Note 3), whereas CIMB Islamic
records its exposure as loans, advances and financing. The RPSIA arrangement exposes the Bank to the risks and
rewards on the financing and accordingly, the Bank account for all the general allowance and specific allowances for
bad and doubtful financing arising from the RPSIA financing.
As at 31 December 2008, the gross exposure and general allowance relating to RPSIA financing are RM1,893 million
(2007: RMNil) and RM32 million (2007: RMNil) respectively.
(e) The maturity structure of loans, advances and financing is as follows:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Maturing within one year 21,501,907 22,347,359 16,123,350 18,961,683
One year to less than three years 24,235,265 19,741,431 22,628,789 17,409,204
Three years to less than five years 11,080,136 8,672,601 10,167,614 7,528,457
Five years and more 43,778,175 35,110,062 40,411,893 33,539,652
100,595,483 85,871,453 89,331,646 77,438,996

100,300,537 85,295,535 89,331,646 77,438,996

CIMB Bank Berhad
(13491-P)


(ii) By type of customer
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Domestic banking institutions 149,356 160,452 - -

Domestic non-bank financial institutions
- stockbroking companies - 996 - 996
- others 2,994,551 1,582,797 2,991,427 1,575,593
Domestic business enterprises
- small medium enterprises 12,576,067 13,219,535 11,947,385 12,901,005
- others 25,108,259 20,743,607 22,371,585 19,900,323
Government and statutory bodies 3,098,571 69,614 3,086,979 65,190
Individuals 47,590,813 41,146,748 44,660,572 39,389,781
Other domestic entities 3,375,151 4,021,814 74,614 71,668
Foreign entities 5,702,715 4,925,890 4,199,084 3,534,440
100,595,483 85,871,453 89,331,646 77,438,996


(iii) By interest rate sensitivity
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Fixed rate
- Housing loans 5,048,818 3,857,299 4,704,226 3,500,520
- Hire-purchase receivables 11,421,719 11,995,147 9,605,869 10,497,861
- Other fixed rate loans 24,370,875 15,830,952 22,841,668 14,979,184

Variable rate
- BLR plus 41,327,282 38,156,423 40,913,189 38,128,948
- Cost-plus 10,056,076 12,117,063 7,402,107 6,252,386
- Other variable rates 8,370,713 3,914,569 3,864,587 4,080,097
100,595,483 85,871,453 89,331,646 77,438,996


CIMB Bank Berhad
(13491-P)


(iv) By economic purpose
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Personal use 2,953,083 2,623,310 2,433,123 2,587,916
Credit card 2,663,733 2,241,590 2,660,753 2,241,590
Purchase of consumer durables 19,111 21,761 17,486 21,595
Construction 2,759,028 2,832,228 2,417,509 2,520,897
Residential property (housing) 24,657,226 19,229,741 23,876,489 18,843,132
Non-residential property 8,593,380 6,066,970 7,904,813 5,859,258
Purchase of fixed assets other than
land and building 797,611 732,076 347,299 429,338
Merger and acquisition 1,563,682 604,907 1,500,984 -
Purchase of securities 11,828,362 8,325,970 8,734,648 6,131,283
Purchase of transport vehicles 11,415,972 12,093,134 9,735,385 10,799,163
Working capital 27,194,826 27,821,070 24,375,948 25,315,308
Other purpose 6,149,469 3,278,696 5,327,209 2,689,516
100,595,483 85,871,453 89,331,646 77,438,996

100,300,537 85,295,535 89,331,646 77,438,996

(v) Non-performing loans, advances and financing by economic purpose:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Personal use 246,826 251,857 224,972 239,902
Credit card 70,400 57,668 70,400 57,668
Purchase of consumer durables 950 1,005 950 1,005
Construction 329,641 442,512 309,509 423,295
Residential property (housing) 1,585,234 1,759,557 1,529,613 1,698,746
Non-residential property 438,087 558,248 422,317 520,240
Purchased of fixed assets other than land
and building 66,745 40,165 14,830 14,718
Purchase of securities 69,980 119,446 45,119 93,749
Purchase of transport vehicles 354,539 587,988 314,476 474,102
Working capital 2,193,798 2,833,053 2,095,621 2,745,816
Other purpose 117,578 102,212 116,001 101,202
5,473,778 6,753,711 5,143,808 6,370,443

CIMB Bank Berhad
(13491-P)


(vi) Movements in non-performing loans, advances and financing are as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
At 1 January 6,753,711 8,030,592 6,370,443 7,876,789

Classified as non-performing during the financial year 3,349,374 3,855,504 3,124,107 3,688,528
Disposal of Islamic banking operations to
CIMB Islamic - - - (270,475)
Loans/financing converted to securities - (1,849) - -
Reclassified as performing during the financial year (2,532,285) (2,669,815) (2,395,585) (2,587,199)
Amount written back in respect of recoveries (1,051,314) (1,340,813) (1,016,722) (1,305,651)
Amount written off (660,640) (1,109,825) (604,045) (1,031,935)
Sale of non-performing loans (385,389) - (380,698) -
Amount transferred from subsidiaries - - 46,704 -
Reclassified to non-current assets held for sale - (9,101) - -
Exchange fluctuation 321 (982) (396) 386
At 31 December 5,473,778 6,753,711 5,143,808 6,370,443

Net non-performing loans, advances and financing^ 2,488,054 3,452,963 2,201,984 3,176,312
Ratio of net non-performing loans, advances and

financing to total loans, advances and
financing (including Islamic financing sold to
Cagamas) less specific allowance^ 2.55% 4.18% 2.55% 4.28%
^ Excludes specific allowances on performing loans amounting to RM198,787,000 (2007: RMNil) for the Group and
RM198,728,000 (2007: RMNil) for the Bank.

CIMB Bank Berhad
(13491-P)


(vii) Movements in the allowance for bad and doubtful debts and financing are as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Specific allowance
At 1 January 3,300,748 3,240,620 3,194,131 3,144,799
Allowance made during the financial year 1,508,387 1,999,713 1,364,169 1,918,625
Allowance made and charged to deferred assets 878 5,062 878 5,062
Amount written back in respect of recoveries (718,893) (816,349) (608,735) (726,203)
Amount written back from NPL sale (61,099) - (60,416) -
Amount written off (648,042) (1,109,824) (591,362) (1,031,935)
Sale of non-performing loans (194,711) - (189,943) -
Amount transferred in respect of loans converted
to securities - (1,849) - -
CIMB Islamic - - - (104,654)
Write back in relation to jointly controlled entity (4,329) (9,132) (4,329) (9,132)
Amount transferred from I-Prestige Sdn Bhd - - 35,589 -
Reclassified to non-current assets held for sale - (1,090) - -
Exchange fluctuation 1,572 (6,403) 570 (2,431)
At 31 December 3,184,511 3,300,748 3,140,552 3,194,131

General allowance
At 1 January 1,377,254 1,361,692 1,233,088 1,283,046
Net allowance made/(write back) during the
financial year 229,830 24,461 217,803 (18,546)
Write back in relation to jointly controlled entity - (658) - (658)
CIMB Islamic - - - (28,617)
Reclassified to non-current assets held for sale - (464) - -
Exchange fluctuation (586) (7,777) (4,356) (2,137)
At 31 December 1,606,498 1,377,254 1,446,535 1,233,088
(General allowance excluding allowance on

RPSIA financing as % of gross loans, advances
and financing including Islamic financing sold to
Cagamas, less loans exempted from general
allowance by BNM and specific allowance) 1.70% 1.67% 1.70% 1.66%

CIMB Bank Berhad
(13491-P)

8 Other assets
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Interest receivable 176,628 259,308 178,047 215,958

Deferred assets (a) 216,292 226,311 216,292 226,311
Foreclosed properties (b) 27,495 29,351 27,495 29,351
Option financing 301,995 293,676 301,995 293,676
Credit Support Annex for derivative transactions 464,823 155,557 464,823 155,557
Amounts receivable from non-performing loans sale 165,871 - 165,871 -
Other debtors, deposits and prepayments 742,467 440,047 578,713 281,498
2,095,571 1,404,250 1,933,236 1,202,351
(a) Deferred assets comprise mainly the carrying value of the excess of liabilities over assets of Common Forge Berhad taken
over by SBB Berhad (formerly known as Southern Bank Berhad) in 2000 and will be reduced progressively by a scheme
of arrangement which has been agreed by Bank Negara Malaysia. Movements in deferred assets during the financial year
are as follows:
2008 2007
RM’000 RM’000
At 1 January 226,311 247,474

Amortisation for the financial year (10,897) (26,225)
Specific allowance made 878 5,062
At 31 December 216,292 226,311

CIMB Bank Berhad
(13491-P)

8 Other assets (Continued)

(b) Movements in foreclosed properties during the financial year are as follows:
2008 2007
RM’000 RM’000
At 1 January 29,351 66,219

Impairment during the financial year - (7,194)
Disposed during the financial year (496) (4,604)
Reclassified to non-currrent assets held for sale (Note 57(v)) (1,360) (25,070)
At 31 December 27,495 29,351
9 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, have been offset and shown
in the balance sheet:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Deferred tax assets 459,250 572,260 263,993 370,523

Deferred tax liabilities (154,713) (163,289) - -
304,537 408,971 263,993 370,523

9 Deferred taxation (Continued)
The movements in deferred tax assets and liabilities during the financial year comprise the following:
General Revaluation
allowance reserve- Unutilised
for doubtful Accelerated available Unrealised Other tax losses
debts and tax for-sale gain on temporary and capital Intangible
financing depreciation securities derivatives differences allowances assets Total
The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Deferred tax assets/(liabilities)

At 1 January 2008 461,115 (49,610) (19,008) 726 72,997 37,422 (94,671) 408,971
Credited/(charged) to income statement 44 48,459 (10,672) 145 - (1,742) 238 14,686 51,114
(Over)/under accrual in prior year (119,060) 12,180 (77) (726) (931) (37,660) 383 (145,891)
Disposal of subsidiary 56 (b)(iii) (1,588) - - - - - - (1,588)
Transferred from equity 34 (f) - - (8,069) - - - - (8,069)
At 31 December 2008 388,926 (48,102) (27,009) - 70,324 - (79,602) 304,537

At 1 January 2007 409,075 (34,268) (26,536) 726 58,080 137,122 (110,355) 433,844
Credited/(charged) to income statement 44 52,040 (15,342) - - 37,954 (2,298) 15,684 88,038
Over accrual in prior year - - - - (23,651) (97,402) - (121,053)
Reclassified to non-current assets held
for sale 57 (iii) - - - - 614 - - 614
Transferred to equity 34 (f) - - 7,528 - - - - 7,528
At 31 December 2007 461,115 (49,610) (19,008) 726 72,997 37,422 (94,671) 408,971
Annual Report 2008

119
(13491-P)
CIMB Bank Berhad
9 Deferred taxation (Continued)
120
(13491-P)
CIMB Bank Berhad
General Revaluation
allowance reserve-
for doubtful Accelerated available Other
Annual Report 2008

debts and tax for-sale temporary Intangible
financing depreciation securities differences assets Total
The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2008 449,931 (36,633) (19,486) 71,382 (94,671) 370,523
Credited/(charged) to income statement 44 41,274 (10,451) - 1,893 15,068 47,784
Over accrual in prior year (136,061) (304) - (9,856) - (146,221)
Transferred from equity 34 (f) - - (8,093) - - (8,093)
At 31 December 2008 355,144 (47,388) (27,579) 63,419 (79,603) 263,993
General Revaluation
allowance reserve- Unutilised
for doubtful Accelerated available Other tax losses
debts and tax for-sale temporary and capital Intangible
financing depreciation securities differences allowances assets Total
The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000


At 1 January 2007 407,832 (21,307) (25,472) 53,466 98,022 (110,355) 402,186

Credited/(charged) to income statement 44 49,826 (15,326) - 44,824 - 15,684 95,008
Over accrual in prior year - - - (23,651) (97,402) - (121,053)
CIMB Islamic 56 (c)(ii) (7,727) - - (3,257) (620) - (11,604)
Transferred to equity 34 (f) - - 5,986 - - - 5,986
At 31 December 2007 449,931 (36,633) (19,486) 71,382 - (94,671) 370,523

CIMB Bank Berhad
(13491-P)

10 Statutory deposits with central banks

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Statutory deposits with

- Bank Negara Malaysia 2,612,580 2,998,094 2,342,974 2,893,805
- Other central banks 110,960 40,178 110,960 40,178
2,723,540 3,038,272 2,453,934 2,933,983
The non-interest bearing statutory deposits maintained with Bank Negara Malaysia are in compliance with Section 37(1)(c)
of the Central Bank of Malaysia Act, 1958 (revised 1994), the amounts of which are determined at set percentages of total
eligible liabilities. The non-interest bearing statutory deposits of foreign branches are maintained with respective central banks
in compliance with the applicable legislation.
11 Investment in subsidiaries
The Bank
Note 2008 2007
RM’000 RM’000
Unquoted shares, at cost

- ordinary and preference shares (a) 2,547,517 2,597,136
- fair value changes arising from net investment hedge (b) (41,100) (36,000)
2,506,417 2,561,136
Less: Allowance for impairment loss (260,498) (239,648)
2,245,919 2,321,488
(a) Ordinary shares

(i) On 1 January 2008, CIMB Bank Berhad disposed 20% of its direct and 20% of its indirect equity interest in CIMB
Trustee Berhad to CIMB Berhad and CIMB Holdings Sdn Bhd.
(ii) On 18 March 2008, BHL Venture Bhd, a wholly-owned subsidiary of the Bank undertook a capital reduction exercise to
distribute RM300,860,905 to the Bank via the cancellation of 178,545,000 ordinary shares of RM1.00 each amounting
to RM178,545,000 and the cancellation of its entire share premium account amounting to RM122,315,905.
(iii) On 1 April 2008, the Bank disposed its 60% equity interest in South East Asian Bank Ltd to British American Investment
Co (Mauritius) Ltd.

CIMB Bank Berhad
(13491-P)

11 Investment in subsidiaries (continued)

(b) The Bank had undertaken a fair value hedge on the foreign exchange risk of CIMB (L) Limited with a USD100 million
subordinated debt. The foreign exchange changes are reflected in the Bank’s cost of investment in CIMB (L) Limited. On
31 August 2008, the fair value hedge was discontinued pursuant to the transfer of assets and liabilities of CIMB (L) Limited
to CIMB Bank (L) Limited. As such, the Bank had undertaken a net investment hedge on the foreign exchange risk of CIMB
Bank (L) Limited using the following subordinated loans, subordinated notes and loans:
Fair value as at Fair value as at

31.12.08 31.12.07
USD200 million subordinated loans RM692,900,000 -

USD200 million subordinated notes RM786,501,000 -
USD200 million loans RM692,900,000 -
(c) The subsidiaries of the Bank are as follows:

Percentage of equity held
Directly by Through
the Bank subsidiary company
Name Principal activities 2008 2007 2008 2007
% % % %
BOC Nominees Sdn Bhd * Dormant 100 100 - -

BOC Nominees (Tempatan) Sdn Bhd * Dormant 100 100 - -
BOC Nominees (Asing) Sdn Bhd * Dormant 100 100 - -
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 - -
Bumiputra-Commerce Corporate Services Nominee services - - 100 100
Limited (Incorporated in the
Federal Territory of Labuan)
BC Management Services Ltd Nominee services - - 100 100
(Incorporated in the Federal Territory
of Labuan)
Bumiputra-Commerce Finance Berhad Dormant 100 100 - -
I-Prestige Sdn Bhd Special purpose vehicle 100 100 - -
CIMB Trustee Berhad Trustee services 20 20 40 80
CIMB Trust Limited (Incorporated in the Trustee services 100 100 - -
BBMB Unit Trust Management Berhad * Dormant 100 100 - -
CIMB FactorLease Berhad Leasing, hire purchase 100 100 - -
financing, debt factoring,
loan management and
property management
CIMB Bank (L) Limited (Incorporated in Offshore banking 100 100 - -
the Federal Territory of Labuan)
CIMB (L) Limited (Incorporated in the Offshore banking 100 100 - -
Semerak Services Sdn Bhd Service company 100 100 - -

CIMB Bank Berhad
(13491-P)


(c) The subsidiaries of the Bank are as follows: (Continued)
Directly by Through
% % % %
BBMB Securities (Holdings) Sdn Bhd * Investment holding 100 100 - -

company
iCIMB (M) Sdn Bhd Provision of management 100 100 - -
services and outsourcing
South East Asian Bank Ltd (Incorporated in Commercial banking and
Republic of Mauritius) related financial services - 60 - -
Bumiputra-Commerce Factoring Berhad * Dormant 100 100 - -
Bumiputra-Commerce Properties Sdn Bhd * Dormant 100 100 - -
BBMB Futures Sdn Bhd * Dormant - - 100 100
BBMB Finance (Hong Kong) Limited Dormant 100 100 - -
(Incorporated in Hong Kong)
BBMB Finance Nominee (Hong Kong) Dormant - - - 100
Limited (Incorporated in Hong Kong) ^
Bumiputra Nominee Ltd (Incorporated Dormant - 100 - -
in the United Kingdom) ^
CIMB Islamic Bank Berhad Islamic banking 100 100 - -

Halyconia Asia Fund Limited (Incorporated Open ended investment - - 100 100
in British Virgin Islands) fund
CIMB Private Equity General Partner Limited Fund management - - 100 100
CIMB Mezzanine General Partner Limited Fund management - - 100 100
CIMB Islamic Funds DCC Limited Fund company - - 100 100
S.B. Venture Capital Corporation Sdn Bhd Investment holding and 100 100 - -
provision of
management services
Southern Nominees (Tempatan) Sdn Bhd Nominee services 100 100 - -
Southern Nominees (Asing) Sdn Bhd Nominee services 100 100 - -
SBB Capital Markets Sdn Bhd * Investment holding 100 100 - -
SBB Securities Sdn Bhd Stock and share broking - - - 100
RC Nominees (Tempatan) Sdn Bhd^ Nominee services - - - 100
RC Nominees (Asing) Sdn Bhd^ Nominee services - - - 100
SBB Sec Research Sdn Bhd ^
Providing research and - - - 100
management services
Mohaiyani Sdn Bhd Investment holding - - 100 100
Mohaiyani Nominees Sdn Bhd * Dormant - - 100 100
Mohaiyani Nominees (Tempatan) Sdn Bhd * Dormant - - 100 100
Mohaiyani Nominees (Asing) Sdn Bhd * Dormant - - - 100
BHLB Trustee Berhad Trustee services - - 73 73
S.B. Properties Sdn Bhd Property ownership and 100 100 - -
management

CIMB Bank Berhad
(13491-P)


(c) The subsidiaries of the Bank are as follows: (Continued)
Directly by Through
% % % %
Elite Constant Development Sdn Bhd Construction of building - - 100 100

BHLB Properties Sdn Bhd Property ownership and 100 100 - -
management
Southern Investment Bank Berhad Merchant banking business 80 80 - -
Perdana Nominees (Tempatan) Sdn Bhd Nominee services - - 80 80
Perdana Nominees (Asing) Sdn Bhd * Nominee services - - 80 80
Perdana Mutual Fund Berhad * Dormant - - 80 80
BHL Venture Berhad * Investment holding 100 100 - -
BHLB Asset Management Sdn Bhd * Investment holding - - 100 100
SBB Unit Trust Management Berhad * Dormant - - 100 100
SFB Auto Berhad Dormant 100 100 - -
SFB Nominees (Tempatan) Sdn Bhd * Nominee services 100 100 - -
SFB Nominees (Asing) Sdn Bhd ^ Nominee services - 100 - -
SFB Development Sdn Bhd Property investment 100 100 - -
Seal Line Trading Sdn Bhd Property investment - - 100 100
CIMB Bank Nominees (S) Sdn Bhd α Nominee services 100 100 - -
SBB Capital Corporation Special purpose vehicle 100 100 - -
Cempaka Nominees (Tempatan) Sdn Bhd ^ Dormant - 100 - -
Perdana Visi Hartanah Sdn Bhd Property investment 100 100 - -
Common Forge Berhad Dormant 100 100 - -
SBB Nominees (Tempatan) Sdn Bhd Nominee services 100 100 - -
SBB Nominees (Asing) Sdn Bhd Nominee services 100 100 - -
SBB Futures Sdn Bhd * Investment holding 100 100 - -
Premier Fidelity Berhad Dormant 100 100 - -
Southern Finance Company Berhad ^ Dormant - 100
Auto ABS One Berhad ∞ Special Purpose Vehicle - - - -
Commerce Returns Berhad ∞ Special Purpose Vehicle - - - -
* Company will be liquidated in 2009

^ Company has been voluntarily liquidated during the financial year
α Audited by a member firm of PricewaterhouseCoopers International Limited which is a separate and independent
legal entity from PricewaterhouseCoopers Malaysia
∞ In accordance with IC 112 - Consolidation: Special Purpose Entities, Auto ABS One Berhad (“Auto ABS”) and
Commerce Returns Berhad are consolidated in the Group as the substance of the relationship between the Group
and the two special purpose entities indicates that both are controlled by the Group
All the subsidiaries, unless otherwise stated, are incorporated in Malaysia

CIMB Bank Berhad
(13491-P)

12 Investment in jointly controlled entity

The Group
2008 2007
RM’000 RM’000
Share of net assets of joint venture 127,701 124,448
The Bank
2008 2007
RM’000 RM’000
Unquoted shares, at cost 125,000 125,000

Less: Allowance for impairment loss (552) (552)
124,448 124,448
The joint venture, which is incorporated in Malaysia, is as follows:

2008 2007
Name of company Principal activities % %
Proton Commerce Sdn Bhd Financing of vehicles 50 50
On 22 October 2003, Bumiputra-Commerce Finance Berhad (“BCF”) entered into a joint venture agreement with Proton
Edar Sdn Bhd (“PESB”) for the purposes of building and operating a competitive vehicle financing business in Malaysia for
vehicles distributed by PESB. Subsequently, a jointly controlled entity 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 finance company business and the related assets and liabilities of BCF to the Bank and the subsequent capital reduction
exercise undertaken by BCF in 2006, the BCF PPS were cancelled, and the Bank issued RM200 million PPS to PCSB.
Under the joint venture, the assets and liabilities of PCSB are recorded and accounted for by the Bank in a Special Project
Account (“SPA”) for and on behalf of PCSB. The respective balances in this SPA as at balance sheet date are consolidated and
reported as the assets and liabilities of the Bank.
All income and expenses arising from PCSB’s activities are recorded in the books of PCSB. At the Group, the 50% share of
profit and loss from the operations of PCSB is shown as a line item in the income statement. For the 12 months period ended
2008, PCSB recorded a profit after taxation of RM6,506,098 (2007: profit after taxation of RM6,820,000) and the Group’s
share of this profit is RM3,253,049 (2007: profit of RM3,410,000).

CIMB Bank Berhad
(13491-P)

12 Investment in jointly controlled entity (Continued)

The assets and liabilities in the SPA as at 31 December are as follows:
2008 2007
RM’000 RM’000
Assets
Cash and short-term funds 237 237
Loans and advances 2,061,944 2,064,458
Other assets 4,423 4,647
Held-to-maturity securities 90,000 90,000
Total assets 2,156,604 2,159,342

Liabilities and equity
Deposits and placements of banks and other financial institutions 1,030,504 741,833
Amount due to Cagamas Berhad 68,158 291,884
Other liabilities 452,539 442,579
Amount due to related company (Nota 26) 405,403 483,046
Total liabilities 1,956,604 1,959,342

Perpetual preference shares 200,000 200,000
200,000 200,000
Total liabilities and equity 2,156,604 2,159,342

Commitments and contingencies 30,840 17,360
The Group’s share of income and expenses of the joint venture is as follows:
2008 2007
RM’000 RM’000
Income 57,224 27,100

Expenses (53,175) (23,314)
Profit before taxation 4,049 3,786

Taxation (796) (376)
Net profit for the financial year 3,253 3,410

CIMB Bank Berhad
(13491-P)

12 Investment in jointly controlled entity (Continued)

The Group’s share of the assets and liabilities of the joint venture other than those that are held in trust by the Bank is as follows:
2008 2007
RM’000 RM’000
Non-current assets 301,371 339,062

Current assets 59,368 69,537
Current liabilities (35,283) (35,796)
Long term liabilities (197,755) (248,355)
Net assets 127,701 124,448
13 Investment in associate
The Group
2008 2007
RM’000 RM’000

At 1 January 791 242
Acquisition of associate (note 56(a)(i)) 595,814 -
Disposal of associate (note 56(b)(iv)) (595) -
Dividend from associate (500) -
Share of (loss)/profit (40,565) 567
Revaluation reserve - available-for-sale securities 32,167 -
Exchange fluctuation 168 (18)
587,280 791
The Bank
2008 2007
RM’000 RM’000
Quoted shares outside Malaysia, at cost 595,814 -
Investment in associate as at 31 December 2008 includes premium on acquisition of RM379,003,000 (2007: RMNil), which is
the provisional amount that relates to the acquisition of 42.13% equity interest in BankThai Public Company Limited (‘BankThai’)
during the financial year.

CIMB Bank Berhad
(13491-P)

13 Investment in associate (Continued)

The Group’s share of income and expenses of the associates is as follows:
2008 2007
RM’000 RM’000
Interest income 73,922 -

Interest expense (38,628) -
Net interest income 35,294 -

Non-interest income 13,497 1,167
Net income 48,791 1,167

Overheads (45,572) (595)
Allowances for losses on loans and advances (24,911) -
Allowance for impairment losses (19,044) -
(Loss)/profit before taxation (40,736) 572

Taxation 140 (5)
(Loss)/profit after taxation (40,596) 567

Minority interest 31 -
(40,565) 567
The Group’s share of the assets and liabilities of the associates is as follows:
2008 2007
RM’000 RM’000
Total assets 8,763,864 1,118

Total liabilities (8,587,754) (327)
Net assets 176,110 791

Revalution reserve - available-for-sale securities 32,167 -
208,277 791

Commitments and contingencies 9,149,942 -
Details of the associate held by CIMB Bank (L) Limited are as follows:
2008 2007
Navis-CIMB General Partner Ltd. Fund management - 25
CIMB Bank (L) Limited has disposed its entire equity interest in Navis-CIMB General Partner Ltd. in September 2008.

CIMB Bank Berhad
(13491-P)

13 Investment in associate (Continued)

Details of the associate held by the Bank are as follows:
2008 2007

BankThai Public Company Limited Banking 42 -
As set out in Note 51(a) of these financial statements, on 13 January 2009, BankThai Public Company Limited became a
92.04% owned subsidiary.
14 Amount due from holding company and ultimate holding company

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Amount due from:

- holding company 18,033 17,018 14,568 17,018
- ultimate holding company 260,317 259,760 232,304 231,697
278,350 276,778 246,872 248,715

The amounts due from holding company and ultimate holding company are unsecured, interest free and recallable on demand.
15 Amount due from/(to) subsidiaries

The Bank
2008 2007
RM’000 RM’000

Amount due from subsidiaries 197,618 467,432
Amount due to subsidiaries (178,140) (357,760)

The amounts due from/(to) subsidiaries are unsecured, interest free and recallable on demand.
16 Amount due from/(to) related companies

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Amount due from related companies 90,926 100,368 90,819 87,949
Amount due to related companies (15,432) (1,977) (9,398) -
The amounts from/(to) related companies are unsecured, interest free and recallable on demand.

CIMB Bank Berhad
(13491-P)

17 Deferred consideration
The deferred consideration (“consideration”) equals the total initial purchase price for the hire purchase receivables sold by BCF
to a special purpose vehicle, Auto ABS One Berhad, less cash paid to BCF. The consideration bears an average interest rate
of 8% per annum. The consideration is receivable after all indebtedness of Auto ABS One Berhad to Malaysian Trustee Berhad
and the holders of the redeemable asset-backed bonds arising under the transaction of documents and other obligations
having priority over the consideration have been satisfied in full.
On 28 February 2008, the redeemable asset-backed bonds were redeemed and all other obligations were repaid in full. The
consideration became receivable and was fully settled.
18 Goodwill
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 3,695,075 3,966,649 3,559,075 3,965,075
Disposal of interest in subsidiaries - (195,000) - -
Disposal of Islamic banking operations to CIMB Islamic - - - (136,000)
Reclassified to non-current assets held for sale (Note 57(iv)) - (76,574) - (75,000)
Written off due to disposal of indirect subsidiary - - - (195,000)
At 31 December 3,695,075 3,695,075 3,559,075 3,559,075

Impairment
At 1 January - - - -
Impairment charge - (3,000) - (198,000)
Reclassified to non-current assets held for sale (Note 57(iv)) - 3,000 - 3,000
Written off due to disposal of indirect subsidiary - - - 195,000
At 31 December - - - -
Net book value at 31 December 3,695,075 3,695,075 3,559,075 3,559,075
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 indefinite useful lives.

CIMB Bank Berhad
(13491-P)

18 Goodwill (continued)
A segment-level summary of the goodwill allocation is presented below:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Retail Banking 1,101,075 1,101,075 1,101,075 1,101,075

Business Banking 911,000 911,000 911,000 911,000
Corporate Banking 419,000 419,000 419,000 419,000
Islamic Banking 136,000 136,000 - -
Direct Banking Group 587,000 587,000 587,000 587,000
Treasury 537,000 537,000 537,000 537,000
Others 4,000 4,000 4,000 4,000
Goodwill 3,695,075 3,695,075 3,559,075 3,559,075

Goodwill classified as non-current assets held
for sale (Note 57(iv)) 35,000 73,574 35,000 72,000
3,730,075 3,768,649 3,594,075 3,631,075
Impairment test for goodwill

Value-in-use
The recoverable amount of CGUs which are not classified as held for sale is determined based on value-in-use calculations.
These calculations use pre-tax cash flow projections based on the 2009 financial budgets approved by Board of Directors,
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
estimated growth rate of 5.00% (2007: 5.42%). The cash flow projections are derived based on a number of key factors
including the past performance and management’s expectation of market developments. The discount rate used in determining
the recoverable amount of the CGUs is 9.80% (2007: 8.43%). The discount rate is pre-tax and reflects the specific risks relating
to the CGUs.
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.

CIMB Bank Berhad
(13491-P)

18 Goodwill (Continued)
Impairment test for goodwill (Continued)
Fair value less costs to sell

For the CGU which are associated with the proposed disposals as disclosed in Note 57, the recoverable amount is determined
based on the estimated disposal price less any costs to sell. The disposal price is determined based on the net tangible assets
of the affected business as at 31 December 2008, plus a premium of RM20 million which has been agreed by both the Bank
and the acquirer of the business.
Impairment charge
The impairment charge of RM195 million in the Bank in the previous financial year arises from the disposal of CIMB Wealth
Advisors Berhad and SBB Asset Management Sdn Bhd as disclosed in Note 56(c)(i) and has been written off. The “Others”
CGU was affected by the impairment charge write-off.
19 Intangible assets
Credit card
customer Core Computer
relationships deposits software Total
The Group Note RM’000 RM’000 RM’000 RM’000
2008
Cost or valuation
At 1 January 153,091 263,612 275,708 692,411
Additions - - 51,531 51,531
Disposals/write-off - - (14) (14)
Reclassified from property, plant and equipment 21 - - 8,289 8,289
Reclassified from non-current assets held for sale 57(i) - - 301 301
Exchange fluctuation - - 4 4
At 31 December 153,091 263,612 335,819 752,522
Amortisation
At 1 January 19,134 49,428 158,224 226,786
Amortisation during the financial year 12,758 32,951 65,662 111,371
Disposals/write-off - - (14) (14)
Reclassified from non-current assets held for sale 57(i) - - 202 202
Exchange fluctuation - - 3 3
At 31 December 31,892 82,379 225,963 340,234
Net book value at 31 December 2008 121,199 181,233 109,856 412,288

CIMB Bank Berhad
(13491-P)

19 Intangible assets (Continued)
Credit card
The Group Note RM’000 RM’000 RM’000 RM’000
2007
Cost or valuation
At 1 January 153,091 263,612 232,986 649,689
Additions - - 76,267 76,267
Disposals/write-off - - (38,825) (38,825)
Reclassified to non-current assets held for sale 57(i) - - (707) (707)
At 31 December 153,091 263,612 275,708 692,411

Amortisation
At 1 January 6,833 17,125 130,126 154,084
Disposals/write-off - - (10,514) (10,514)
Reversal of impairment - - (12,000) (12,000)
Reclassified to non-current assets held for sale 57(i) - - (525) (525)
At 31 December 19,134 49,428 158,224 226,786
Credit card
The Bank RM’000 RM’000 RM’000 RM’000
2008
Cost or valuation
At 1 January 153,091 263,612 263,979 680,682
Additions - - 49,122 49,122
Transferred from CIMB Islamic - - 19 19
At 31 December 153,091 263,612 313,120 729,823

Amortisation
At 1 January 19,134 49,428 156,058 224,620
At 31 December 31,892 82,379 214,695 328,966

CIMB Bank Berhad
(13491-P)

19 Intangible assets (Continued)
Credit card
The Bank RM’000 RM’000 RM’000 RM’000
2007
Cost or valuation
At 1 January 153,091 263,612 232,031 648,734
Additions - - 69,888 69,888
Disposals - - (37,940) (37,940)
At 31 December 153,091 263,612 263,979 680,682

Amortisation
At 1 January 6,833 17,125 129,669 153,627
Disposals - - (9,629) (9,629)
Reversal of impairment - - (12,000) (12,000)
At 31 December 19,134 49,428 156,058 224,620
The valuation of credit card customer relationships was determined through the sum of the discounted future excess earnings
attributable to existing credit card customers over the remaining life span of the customer relationships. Income from existing
credit card 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 credit card customer relationships was 11.7%, 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 was derived by discounting the anticipated future benefits in the form of net interest savings from
core deposits. The discount rate used was 9.6%, which was derived from the average of the weighted average cost of capital
and the cost of equity, reflecting the lower risk premium for core deposit intangibles compared with equity returns.
The remaining amortisation period of credit card customer relationships and core deposits range from 5 to 9 years, respectively.

CIMB Bank Berhad
(13491-P)

20 Prepaid lease payments
Long term Short term

leasehold land leasehold land Total
The Group RM’000 RM’000 RM’000

2008
Cost
At 1 January 39,728 5,609 45,337
Disposals/write-off (3,427) - (3,427)
Exchange fluctuation 17 213 230
At 31 December 36,318 5,822 42,140

Amortisation
At 1 January 9,591 3,309 12,900
Amortisation during the financial year 922 135 1,057
Exchange fluctuation 6 115 121
At 31 December 8,963 3,559 12,522
Net book value at 31 December 2008 27,355 2,263 29,618

The Group Note RM’000 RM’000 RM’000

2007
Cost
At 1 January 44,766 5,653 50,419
Additions 532 10 542
Reclassified to property, plant and equipment 21 (1,960) - (1,960)
Reclassified to non-current assets held for sale 57(ii)(v) (1,176) - (1,176)
Exchange fluctuation (24) (54) (78)
At 31 December 39,728 5,609 45,337

Amortisation
At 1 January 8,341 3,188 11,529
Amortisation during the financial year 1,493 217 1,710
Disposals/write-off (16) - (16)
Reclassified to property, plant and equipment 21 (40) - (40)
Reclassified to non-current assets held for sale 57(ii)(v) (179) - (179)
At 31 December 9,591 3,309 12,900

CIMB Bank Berhad
(13491-P)

20 Prepaid lease payments (Continued)

The Bank RM’000 RM’000 RM’000

2008
Cost
At 1 January 35,285 4,684 39,969
Exchange fluctuation - 213 213
At 31 December 31,858 4,897 36,755

Amortisation
At 1 January 9,064 2,938 12,002
Amortisation during the financial year 881 117 998
Exchange fluctuation - 114 114
At 31 December 8,389 3,169 11,558

The Bank Note RM’000 RM’000 RM’000
2007
Cost
At 1 January 38,433 4,738 43,171
Reclassified to property, plant and equipment 21 (2,745) - (2,745)
Reclassified to non-current assets held for sale 57(v) (376) - (376)
Exchange fluctuation - (54) (54)
At 31 December 35,285 4,684 39,969

Amortisation
At 1 January 7,847 2,957 10,804
Reclassified to property, plant and equipment 21 (40) - (40)
Reclassified to non-current assets held for sale 57(v) (167) - (167)
Amortisation during the financial year 1,440 77 1,517
Exchange fluctuation - (96) (96)
At 31 December 9,064 2,938 12,002

21 Property, plant and equipment
Renovations, Computer
Buildings on Buildings on office Computer equipment
Buildings on long term short term equipment, equipment and
Freehold freehold leasehold leasehold furniture and and Motor software
land land land land fittings hardware vehicles under lease Total
The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2008
Cost
At 1 January 106,014 191,242 95,115 19,504 550,903 399,936 35,862 52,640 1,451,216
Additions - - - - 108,174 106,036 5,574 3,417 223,201
Disposals/write-off (1,015) (6,195) - - (14,446) (5,866) (5,959) (349) (33,830)
Reclassification - - 3,611 (3,611) (3,810) 209 - 3,601 -
Reclassified to
intangible assets 19 - - - - - (8,289) - - (8,289)
Reclassified from/(to)
non-current assets
held for sale 57(i) - - - - (45) 313 - - 268
Exchange fluctuation - (406) (697) (44) (739) 180 16 (897) (2,587)
At 31 December 104,999 184,641 98,029 15,849 640,037 492,519 35,493 58,412 1,629,979
Annual Report 2008

137
(13491-P)
CIMB Bank Berhad
21 Property, plant and equipment (Continued)
138
(13491-P)
CIMB Bank Berhad

Annual Report 2008


2008
Accumulated
depreciation
At 1 January - 75,516 39,995 9,721 360,905 256,655 20,764 28,710 792,266
Charge for the financial year - 3,977 2,206 380 62,718 53,373 2,607 9,239 134,500
Disposals/write-off - (1,866) (67) (470) (8,824) (5,578) (5,413) (321) (22,539)
Reclassification - - 1,519 (1,519) (453) 41 - 412 -
Reclassified to
intangible assets 19 - - - - - (1,886) - - (1,886)
Reclassified from/(to)
non-current assets
held for sale 57(i) - - - - (44) 263 - - 219
Exchange fluctuation - (408) (313) (5) (527) 127 (8) (160) (1,294)
At 31 December - 77,219 43,340 8,107 413,775 302,995 17,950 37,880 901,266
Net book value at

31 December 2008 104,999 107,422 54,689 7,742 226,262 189,524 17,543 20,532 728,713
The above property, plant and equipment include renovations, computer equipment and hardware under construction at cost RM30,285,632.

2007
Cost
At 1 January 108,316 202,318 135,480 28,700 523,623 359,454 41,049 45,792 1,444,732
Additions - - 6,546 - 102,116 115,131 7,795 7,863 239,451
Disposals/write-off - (9,162) (161) - (50,862) (54,360) (11,799) (1,015) (127,359)
Reclassification - - (832) 832 1,629 (1,754) 125 - -
Reclassified to
investment properties 22 - - (42,310) (8,709) - - - - (51,019)
Reclassified from
prepaid lease payments 20 - 2,745 (785) - - - - - 1,960
Reclassified to intangible
assets 19 - - - - (5,987) - - - (5,987)
Reclassified to
non-current assets
held for sale 57(i)(ii)(iii)(v) (750) (5,069) (2,572) (977) (19,744) (19,429) (1,320) - (49,861)
Exchange fluctuation (1,552) 410 (251) (342) 128 894 12 - (701)
At 31 December 106,014 191,242 95,115 19,504 550,903 399,936 35,862 52,640 1,451,216
Annual Report 2008

139
(13491-P)
CIMB Bank Berhad
140
(13491-P)
CIMB Bank Berhad

Annual Report 2008


2007
Accumulated
depreciation
At 1 January - 73,664 48,716 9,972 333,807 265,776 29,864 20,740 782,539
Charge for the financial year - 3,971 1,923 570 51,426 52,674 2,526 8,832 121,922
Disposals/write-off - (1,818) (398) - (11,207) (45,733) (10,707) (862) (70,725)
Reclassification - - (62) 62 1,883 (1,967) 84 - -
Reclassified to investment
properties 22 - - (9,141) - - - - - (9,141)
Reclassified from prepaid
lease payments 20 - 40 - - - - - - 40
Reclassified to
non-current assets
held for sale 57(i)(ii)(iii)(v) - (360) (969) (759) (15,055) (14,851) (1,015) - (33,009)
Exchange fluctuation - 19 (74) (124) 51 756 12 - 640
At 31 December - 75,516 39,995 9,721 360,905 256,655 20,764 28,710 792,266
Net book value at

31 December 2007 106,014 115,726 55,120 9,783 189,998 143,281 15,098 23,930 658,950
The above property, plant and equipment include renovations, computer equipment and hardware under construction at cost of RM16,445,332.
21 Property, plant and equipment
The Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2008
Cost
At 1 January 50,722 114,269 77,291 16,495 520,892 374,569 33,071 1,946 1,189,255
Additions - - - - 106,694 105,108 5,152 123 217,077
Disposals/write-off (1,015) (2,895) - - (13,084) (5,634) (5,842) (27) (28,497)
Reclassifications - - 3,611 (3,611) (3,601) - - 3,601 -
Exchange fluctuation - (406) (874) (44) (783) 164 6 (897) (2,834)
As at 31 December 2008 49,707 110,968 80,028 12,840 610,118 474,207 32,387 4,746 1,375,001

Accumulated depreciation
At 1 January - 60,192 35,574 7,735 348,189 243,168 18,808 1,946 715,612
Charge for the financial year - 1,913 2,022 322 59,927 50,012 2,366 298 116,860
Disposals/write-off - (1,844) - - (7,559) (5,372) (5,296) (27) (20,098)
Reclassification - - 1,519 (1,519) (412) - - 412 -
Exchange fluctuation - (406) (376) (5) (566) 112 (17) (162) (1,420)
As at 31 December 2008 - 59,855 38,739 6,533 399,579 287,920 15,861 2,467 810,954
Net book value at

31 December 2008 49,707 51,113 41,289 6,307 210,539 186,287 16,526 2,279 564,047
Annual Report 2008

141
(13491-P)
CIMB Bank Berhad
142
(13491-P)
CIMB Bank Berhad

Annual Report 2008

The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2007
Cost
At 1 January 51,275 112,751 114,927 26,524 458,706 309,928 33,830 1,982 1,109,923
Additions - - 6,546 - 98,822 104,979 7,790 - 218,137
Disposals/write-off - (650) (161) - (37,829) (38,553) (8,647) (36) (85,876)
Reclassifications - - - - 1,629 (1,754) 125 - -
properties 22 - - (42,310) (8,709) - - - - (51,019)
lease payments 20 - 2,745 - - - - - - 2,745
Reclassified to
non-current assets
held for sale 57(v) (750) (563) (1,711) (977) - - - - (4,001)
Exchange fluctuation 197 (14) - (343) (436) (31) (27) - (654)
As at 31 December 2007 50,722 114,269 77,291 16,495 520,892 374,569 33,071 1,946 1,189,255
The Bank Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2007
Accumulated
depreciation
At 1 January - 58,491 44,185 8,165 302,591 231,645 24,451 1,969 671,497
Charge for the financial year - 1,920 1,230 451 47,484 47,850 2,097 12 101,044
Disposals/write-off - (132) (97) - (3,636) (34,340) (7,804) (35) (46,044)
Reclassification - - - - 1,883 (1,967) 84 - -
properties 22 - - (9,141) - - - - - (9,141)
lease payments 20 - 40 - - - - - - 40
Reclassified to
non-current assets
held for sale 57(v) - (119) (603) (759) - - - - (1,481)
Exchange fluctuation - (8) - (122) (133) (20) (20) - (303)
As at 31 December 2007 - 60,192 35,574 7,735 348,189 243,168 18,808 1,946 715,612
Net book value at

31 December 2007 50,722 54,077 41,717 8,760 172,703 131,401 14,263 - 473,643
Annual Report 2008

143
(13491-P)
CIMB Bank Berhad
CIMB Bank Berhad
(13491-P)

22 Investment properties
Buildings on Buildings on
short term long term
The Group and the Bank RM’000 RM’000 RM’000
2008
At 1 January 44,519 52,902 97,421
Fair value adjustments (2,141) - (2,141)
Exchange fluctuation 2,321 2,574 4,895
At 31 December 44,699 55,476 100,175

Buildings on Buildings on
short term long term
The Group and the Bank RM’000 RM’000 RM’000
2007
At 1 January - - -
Reclassified from property, plant and equipment 8,709 33,169 41,878
Fair value adjustments 36,384 19,774 56,158
At 31 December 44,519 52,902 97,421
The investment properties are valued annually at fair value based on market values determined by independent qualified
valuers. The following amounts have been reflected in the income statement:
2008 2007
RM’000 RM’000
Rental income 3,287 3,024

Operating expenses arising from investment properties that generated the rental income (426) (357)

CIMB Bank Berhad
(13491-P)

23 Deposits from customers

(a) By type of deposit
The Group The Bank
2008 2007 2008 2007
Note RM’000 RM’000 RM’000 RM’000
Demand deposits 26,043,404 23,456,477 23,743,569 23,115,848

Saving deposits 9,264,470 8,074,683 8,869,939 7,909,063
Fixed deposits 57,958,370 55,591,312 47,726,542 44,268,212
Negotiable instruments of deposit (i) 8,879,114 6,749,330 7,764,816 6,547,504
Others 25,480,383 18,317,835 19,000,159 17,466,737
127,625,741 112,189,637 107,105,025 99,307,364
(i) During the financial year, the Bank has undertaken a fair value hedge on the interest rate risk of the negotiable
instruments of deposit amounting to RM1,104,900,000 (2007: RM930,000,000) using interest rate swaps.
2008 2007
RM’000 RM’000
Negotiable instruments of deposit 1,104,900 930,000

Fair value changes arising from fair value hedges 13,420 4,765
1,118,320 934,765
The fair values of interest rate swaps as at 31 December 2008 were RM44,861,369 (2007: RM17,892,000).
The maturity structure of fixed deposits and negotiable instruments of deposit is as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Due within six months 53,514,938 43,686,681 43,478,322 32,658,882

Six months to less than one year 7,832,019 13,152,147 7,629,884 12,870,828
One year to less than three years 4,032,323 1,910,653 3,579,308 1,888,112
Three years to less than five years 1,458,204 3,590,734 803,844 3,397,889
Five years and above - 427 - 5
66,837,484 62,340,642 55,491,358 50,815,716

CIMB Bank Berhad
(13491-P)

23 Deposits from customers (Continued)

(b) By type of customer
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Government and statutory bodies 10,209,884 10,145,047 6,930,030 8,487,213

Business enterprises 62,985,795 58,259,868 48,239,319 48,957,825
Individuals 32,389,188 28,347,752 30,243,479 27,201,480
Others 22,040,874 15,436,970 21,692,197 14,660,846
127,625,741 112,189,637 107,105,025 99,307,364
24 Deposits and placements of banks and other financial institutions

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Licensed banks 4,564,048 8,367,617 7,034,224 9,606,700
Licensed finance companies 14,140 18,235 14,140 18,235
Licensed investment banks 2,342,569 1,332,565 2,142,269 1,183,750
Bank Negara Malaysia 365,000 1,952,360 365,000 1,952,360
Other financial institutions 1,328,773 1,024,118 1,013,881 1,024,118
8,614,530 12,694,895 10,569,514 13,785,163
25 Derivative financial instruments, commitments and contingencies

(i) Derivative financial instruments
The following tables summarise the contractual the underlying principal amounts of derivative financial instruments held at
fair value through the income statement. The principal or contractual amounts of these instruments reflect the volume of
transactions outstanding at balance sheet date, and do not represent amounts at risk.
Trading 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.

CIMB Bank Berhad
(13491-P)

25 Derivative financial instruments, commitments and contingencies (Continued)

(i) Derivative financial instruments (Continued)
The Group The Bank
Fair values Fair values
Derivatives at fair value
through income statement Principal Assets Liabilities Principal Assets Liabilities
At 31 December 2008 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Foreign exchange derivatives
Currency forward 8,292,585 113,488 (79,987) 7,640,459 113,382 (79,987)
Currency swaps 16,222,368 229,311 (245,874) 16,202,368 229,311 (242,394)
Currency option 1,881,221 56,429 (50,018) 1,881,221 56,429 (50,018)
Cross currency interest rate
swaps 12,786,403 388,497 (396,895) 12,859,158 388,497 (406,933)
39,182,577 787,725 (772,774) 38,583,206 787,619 (779,332)

Interest rate derivatives
Interest rate swaps 156,927,418 3,045,560 (2,622,839) 154,185,276 2,878,665 (2,630,138)
Interest rate futures 28,174,595 82,820 (45,444) 28,174,595 82,820 (45,444)
Interest rate options 3,630,000 14,954 (13,512) 3,630,000 14,954 (13,512)
188,732,013 3,143,334 (2,681,795) 185,989,871 2,976,439 (2,689,094)
Equity related derivatives
Equity options 15,383,947 194,711 (201,303) 11,637,270 152,183 (158,768)
Commodity options 971,404 986,367 (982,056) 971,404 986,367 (982,056)
Equity futures 13,009 1 (420) 13,009 1 (420)
16,368,360 1,181,079 (1,183,779) 12,621,683 1,138,551 (1,141,244)
Credit related contract
Credit default swaps 580,817 4,207 (6,117) 580,817 4,207 (6,117)

Held for hedging purpose
Interest rate swaps 4,736,722 219,190 (204,570) 4,736,722 219,190 (204,570)
Total derivatives assets/

(liabilities) 249,600,489 5,335,535 (4,849,035) 242,512,299 5,126,006 (4,820,357)

CIMB Bank Berhad
(13491-P)


The Group The Bank
Derivatives at fair value
through income statement Principal Assets Liabilities Principal Assets Liabilities
At 31 December 2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Foreign exchange derivatives
Currency forward 6,325,570 30,279 (69,435) 6,320,977 30,279 (69,435)
Currency swaps 14,986,084 198,904 (134,109) 14,878,257 198,904 (134,109)
Currency option 622,471 4,346 (2,777) 622,471 4,346 (2,777)
swaps 7,652,297 245,414 (207,998) 7,652,297 245,414 (207,998)
29,586,422 478,943 (414,319) 29,474,002 478,943 (414,319)

Interest rate derivatives
Interest rate swaps 127,001,694 1,060,102 (792,697) 126,086,954 985,516 (794,511)
Interest rate futures 29,816,022 23,897 (12,900) 29,816,022 23,897 (12,900)
Interest rate options 5,980,000 8,826 (13,055) 5,980,000 8,826 (13,055)
162,797,716 1,092,825 (818,652) 161,882,976 1,018,239 (820,466)
Equity related derivatives
Equity options 22,991,005 89,998 (235,246) 22,991,005 89,998 (235,247)
Commodity options 179,525 213 - 179,525 213 -
Equity futures 44,032 - (1,256) - - -
23,214,562 90,211 (236,502) 23,170,530 90,211 (235,247)
Credit related contract
Credit default swaps 100,000 121 (78) 100,000 121 (78)

Held for hedging purpose
Interest rate swaps 2,252,800 48,830 (30,849) 2,252,800 48,830 (30,849)
swap 760,000 - (109,636) 760,000 - (109,636)
3,012,800 48,830 (140,485) 3,012,800 48,830 (140,485)
Total derivatives assets/

(liabilities) 218,711,500 1,710,930 (1,610,036) 217,640,308 1,636,344 (1,610,595)
(ii) Commitments and contingencies

In the normal course of business, the Group and the Bank 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 Bank, except for certain
securities held for trading being pledged as credit support assets for certain over-the-counter derivative contracts.

CIMB Bank Berhad
(13491-P)


(ii) Commitments and contingencies (Continued)
The commitments and contingencies constitute the following:
2008 2007
Credit Risk Credit Risk
equivalent weighted equivalent weighted
Principal amount* amount Principal amount* amount
The Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Credit-related
Direct credit substitutes 1,840,720 1,809,540 1,231,300 1,797,765 1,797,765 1,554,395
Transaction-related contingent
items 4,379,188 2,189,594 1,710,147 4,549,710 2,274,856 1,921,981
Short-term self-liquidating
trade-related contingencies 3,700,924 737,396 511,436 3,217,282 643,455 383,464
Islamic Financing sold directly
and indirectly to Cagamas
with recourse 294,946 294,946 294,946 575,918 575,918 575,918
Obligations under underwriting
agreement 65,000 32,500 32,500 85,000 42,500 42,500
Irrevocable commitments to
extend credit :
- maturity not exceeding
one year 35,316,004 - - 36,531,623 - -
- maturity exceeding one year 8,751,965 4,375,983 3,721,781 10,056,536 5,028,178 4,396,414
Forward asset purchase 104,052 14 10 5,000 24 12
Miscellaneous commitments
and contingencies 4,722,384 320,398 65,012 2,756,215 3,677 2,192
Total credit-related commitments

and contingencies 59,175,183 9,760,371 7,567,132 59,575,049 10,366,373 8,876,876

CIMB Bank Berhad
(13491-P)


The commitments and contingencies constitute the following: (Continued)
2008 2007

Treasury-related
Foreign exchange related
contracts :
- less than one year 35,372,264 308,096 111,756 21,790,607 615,310 149,065
- one year to less than 5 years 1,769,837 867,286 211,566 5,345,876 663,791 163,264
- five years and above 2,040,476 733,002 283,815 3,209,939 562,478 242,587
39,182,577 1,908,384 607,137 30,346,422 1,841,579 554,916
Interest rate related contracts :
- one year to less than 5 years 71,481,378 2,162,265 499,791 63,194,850 2,355,940 479,983
- five years and above 7,634,070 2,059,072 442,869 7,742,413 1,208,505 260,744
193,468,735 4,234,345 945,283 165,050,516 3,700,665 767,954
Equity related contracts
- less than one year 5,602,078 116,973 25,687 23,170,530 - -
- one year to less than 5 years 9,737,250 596,904 177,659 - - -
- five years and above 57,628 4,365 873 44,032 - -
15,396,956 718,242 204,219 23,214,562 - -
Total treasury-related
commitments
307,223,451 16,621,342 9,323,771 278,186,549 15,908,617 10,199,746
Included in the Group’s commitments and contingencies above is RM30,840,000 (2007: RM17,360,000) of irrevocable
commitments to extend credit with maturity less than one year relating to a jointly controlled entity, PCSB.
The Bank has given a continuing guarantee to Bank Negara Malaysia to meet the liabilities and financial obligations and
requirements of its subsidiaries, CIMB Bank (L) Limited and CIMB (L) Limited, arising from its offshore banking business in
the Federal Territory of Labuan.

CIMB Bank Berhad
(13491-P)


2008 2007
The Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Credit-related
Direct credit substitutes 1,538,499 1,538,499 960,259 1,560,930 1,560,930 1,317,559
Transaction-related contingent
items 3,827,518 1,913,759 1,511,102 4,282,001 2,141,001 1,801,280
trade-related contingencies 3,388,686 677,737 478,249 2,903,157 580,631 320,640
Obligations under underwriting
agreement 15,000 7,500 7,500 35,000 17,500 17,500
extend credit :
one year 32,082,352 - - 34,484,080 - -
- maturity exceeding one year 7,491,232 3,745,616 3,307,623 9,446,665 4,723,332 4,098,816
Forward assets purchase 99,052 14 10 5,000 24 12
and contingencies 6,228,040# 567,869 312,482 3,452,916# 1,863 378
Total credit-related commitments


CIMB Bank Berhad
(13491-P)


2008 2007

Treasury-related
contracts :
- one year to less than 5 years 1,842,592 873,708 212,851 5,345,876 663,791 163,264
- five years and above 2,020,476 729,052 282,290 3,209,939 562,478 242,587
38,583,206 1,898,472 603,366 30,234,002 1,839,497 554,466
Interest rate related contracts :
- one year to less than 5 years 68,562,547 2,040,193 475,377 62,033,739 2,336,822 476,159
- five years and above 7,765,721 2,062,033 443,461 7,988,784 1,221,700 263,383
190,726,593 4,115,242 921,463 164,135,776 3,694,742 766,769
Equity related contracts
- less than one year 3,425,246 78,016 17,896 23,170,530 - -
- one year to less than 5 years 8,196,303 390,608 136,400 - - -
- five years and above 28,730 2,881 576 - - -
11,650,279 471,505 154,872 23,170,530 - -
commitments
295,630,457 14,936,213 8,256,926 273,710,057 14,559,520 8,877,420
* The credit equivalent amount is arrived at using the credit conversion factors as per Bank Negara Malaysia guidelines.
Effective 1 October 2008, the following approaches have been adopted for the computation of the credit equivalent
and risk-weighted assets:
- adoption of bilateral netting as provided under the Standardised Approach Framework which involves the
weighting of net claims rather than gross claims with the same counterparties arising out of the full range of
forwards, swaps, options and similar derivative contracts.
- irrevocable commitments to extend credit (undrawn loans) have been revised to include only those undrawn loans
whereby all conditions precedent have been met.
# Included in miscellaneous commitment and contingencies is a commitment by the Bank to place an additional
RM1,507 million (2007: RM719 million) with CIMB Islamic in relation to the RPSIA arrangement (See Note 3).
The Bank has confirmed that it will provide continuing financial support to certain of its wholly-owned subsidiaries to
meet their liabilities and financial obligations as and when they fall due and to carry on their businesses without significant
restriction on their operations.

CIMB Bank Berhad
(13491-P)

26 Other liabilities
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Interest payable 544,351 575,613 557,552 514,089
Due to brokers and clients - 891 - -
Profit equalisation reserve (a) - 2,200 - -
Accrued employee benefits (b) 9,822 8,709 9,822 8,663
Post employment benefit obligations (c) 55,324 71,180 55,189 71,174
Sundry creditors 474,492 186,811 172,172 136,400
Expenditure payable 369,379 657,741 358,761 646,092
Amount due to special purpose vehicle of jointly
controlled entity (Note 12) 405,403 483,046 405,403 483,046
Provision for legal claims 186,750 267,230 186,750 267,230
Others 705,731 715,782 655,313 663,839
2,751,252 2,969,203 2,400,962 2,790,533
(a) Profit equalisation reserve

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

At 1 January 2,200 1,965 - 242
Provided during the financial year - 1,076 - 1,075
Written back during the financial year (2,200) (841) - -
At 31 December - 2,200 - -
(b) Accrued employee benefits

This refers to the accruals for short term employee benefits for leave entitlement. Under their employment contract,
employees can earn their leave entitlement which they are entitled to carry forward and will lapse if not utilised in the
following accounting period. Accruals are made for the estimate of liability for unutilised annual leave.
(c) Post employment benefit obligations

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Defined contribution plan – EPF (i) 9,393 10,544 9,258 10,538
Defined benefit plans (ii) 45,931 60,636 45,931 60,636
55,324 71,180 55,189 71,174

CIMB Bank Berhad
(13491-P)

26 Other liabilities (Continued)

(c) Post employment benefit obligations (Continued)
(i) Defined contribution plan of the Bank and the Group
Group companies incorporated in Malaysia contribute to the Employees Provident Fund (“EPF”), the national
defined contribution plan. Once the contributions have been paid, the Bank and the Group have no further
payment obligations.
(ii) Defined benefit plans of the Bank and the Group

The Bank operates final salary defined benefit plans for employees, the assets of which are held in separate trustee
- administered funds. The latest actuarial valuation of the plan in the Bank was carried out as at 31 December 2008.
The amounts recognised in the balance sheet in respect of defined benefit plans are determined as follows:
2008 2007
RM’000 RM’000

Present value of funded obligations 170,709 142,191
Fair value of plan assets (83,622) (89,696)
Unrecognised actuarial (loss)/gains (41,156) 8,141
Liability 45,931 60,636
The amount recognised in the income statement in respect of defined benefit plans is as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Current service cost 9,780 9,744 9,780 9,744
Interest cost 8,417 8,268 8,417 8,268
Expected return on plan assets (5,924) (4,542) (5,924) (4,542)
Curtailment/settlement costs (11,330) - (11,330) -
Total included in personnel costs (Note 39) 943 13,470 943 13,470
The actual return on plan assets of the Group and the Bank were RM15,082,892 (2007: RM12,999,416) respectively.

CIMB Bank Berhad
(13491-P)


(c) Post employment benefit obligation (Continued)
(ii) Defined benefit plans of the Bank and the Group (Continued)
Movement in the defined benefit obligation over the financial year are as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

At 1 January 142,191 136,444 142,191 134,584
Current service costs 9,780 9,744 9,780 9,744
Interest costs 8,416 8,268 8,416 8,268
Actuarial losses 31,827 2,650 31,827 2,650
Benefits paid (6,638) (5,485) (6,638) (5,485)
Liabilities reclassified as non-current assets
held for sale - (1,860) - -
Past service costs-vested benefits - (7,570) - (7,570)
Settlement (14,867) - (14,867) -
At 31 December 170,709 142,191 170,709 142,191
The movements in the fair value of plan assets for the financial year is as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

At 1 January 89,696 70,198 89,696 68,717
Expected return on plan assets 5,924 4,542 5,924 4,542
Actuarial (losses)/gains (21,007) 8,458 (21,007) 8,458
Employer contributions 12,498 11,596 12,498 11,596
Assets reclassified as non-current assets
held for sale - (1,481) - -
Benefits paid (3,489) (3,617) (3,489) (3,617)
At 31 December 83,622 89,696 83,622 89,696
To develop the expected long-term rate of return on assets assumption, the Bank 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.

CIMB Bank Berhad
(13491-P)


(c) Post employment benefit obligation (Continued)
(ii) Defined benefit plans of the Bank and the Group (Continued)
The principal actuarial assumptions used in respect of the Group’s and the Bank’s defined benefit plans were as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
% % % %
Discount rates 6.60 6.00 6.60 6.00

Expected return on plan assets 5.45 6.25 5.45 6.25
Future salary increases 6.00^ 5.00 6.00^ 5.00
^ The Bank included a special 8.00% revision for employees in Grade 34, 35 and 36 who are entitled to salary
revisions under the Association of Bank Officers in Malaysia and CIMB Executive Staff Union collective agreements
for the year 2009 only.
Expected contribution to post employment benefits plan for the financial year ended 31 December 2009 is
RM20,000,000 (2008: RM14,000,000) to both the Group and the Bank.
2008 2007 2006 2005 2004

RM’000 RM’000 RM’000 RM’000 RM’000
The Group
As at 31 December
Present value of defined benefit obligation 170,709 142,191 136,444 162,734 153,375
Fair value of plan assets (83,622) (89,696) (70,198) (105,352) (89,373)
Deficit 87,087 52,495 66,246 57,382 64,002

Experience adjustments on plan liabilities 31,827 2,650 8,232 1,686 (2)
Experience adjustments on plan assets (21,007) (8,458) (774) - -

The Bank
As at 31 December
Present value of defined benefit obligation 170,709 142,191 134,584 143,554 135,737
Fair value of plan assets (83,622) (89,696) (68,717) (91,557) (88,597)
Deficit/(surplus) 87,087 52,495 65,867 51,997 47,140

Experience adjustments on plan liabilities 31,827 2,650 8,036 1,623 N/A*
Experience adjustments on plan assets (21,007) (8,458) (771) 352 N/A*
* Information not available as actuarial valuation was not performed in 2004.

CIMB Bank Berhad
(13491-P)

27 Redeemable asset-backed bonds

The Group
2008 2007
RM’000 RM’000
Nominal value of bonds

- 5.00% Redeemable asset-backed bonds 2003/2009 - 32,059
- 32,059
Less: Unaccreted discounts - (287)
- 31,772

Discount upon issuance - 712
Less: Accumulated accretion - (425)
Unaccreted discounts as at 31 December - 287
The Group’s Hire Purchase Receivables Securitisation Programme is funded through the issuance of bonds by a special
purpose vehicle, Auto ABS One Berhad, and deferred consideration owing by I-Prestige Sdn Bhd to the Bank. The scheme
and the issuance of Bonds are in compliance with the Securities Commission’s ‘Guidelines on the offering of Asset-Backed
Debt Securities’.
The bonds were fully redeemed on 28 February 2008.
28 Irredeemable Convertible Unsecured Loan Stocks

Irredeemable Convertible Unsecured Loan Stocks (“ICULS”) with detachable coupons 2001/2011
2008 2007
RM’000 RM’000
At 31 December 667,000 667,000
The main features of the 7.5% irredeemable convertible unsecured loan stocks (“ICULS”) 2001/2011 issued in 2001 are as
follows:
(i) Nominal value of the ICULS is RM667,000,000 in denominations or multiples of RM1,000 with detachable coupons.
(ii) The ICULS bear fixed interest at the rate of 7.5% per annum payable annually in arrears from the date of issue of the
ICULS. The detachable coupons represent the interest of the ICULS and as such, bear no further interest.
(iii) The ICULS are not redeemable for cash except upon the occurrence and declaration of an event of default as provided in
the trust deed. All outstanding ICULS will be mandatorily converted by the Bank into new ordinary shares of the Bank on
the last day of the tenure of the ICULS.
(iv) The ICULS shall constitute unsecured and subordinated obligations of the Bank.

CIMB Bank Berhad
(13491-P)

28 Irredeemable Convertible Unsecured Loan Stocks (CONTINUED)

(v) All new ordinary shares issued upon conversion of ICULS will rank pari passu in all respects with the existing ordinary
shares of the Bank save and except that they will not be entitled to any dividend, right, allotments and/or other distributions,
the entitlement date of which is prior to the date of allotment of the new ordinary shares of the Bank.
29 Other borrowings
The Group
2008 2007
RM’000 RM’000
Term loan- USD300 million 1,039,350 992,100

At 1 January 1,092,750 1,092,750
Exchange difference (53,400) (100,650)
1,039,350 992,100
In 2006, CIMB Bank (L) Limited secured a term loan facility amounting to USD300 million which will mature on 22 June
2011. It bears a floating interest rate of LIBOR+0.19% per annum. The term loan is secured by a corporate guarantee issued
by the Bank.
30 Subordinated obligations
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Subordinated notes - USD300 million (a) - 1,024,264 - 1,024,264

Subordinated notes - USD200 million (b) 674,250 640,727 674,250 640,727
Subordinated loans - USD100 million (c) 363,486 339,865 363,486 339,865
Subordinated loans - USD200 million (d) - - 813,336 681,033
Subordinated bonds - RM1.5 billion (e) 1,535,476 - 1,535,476 -
Subordinated bonds - RM1.0 billion (f) 1,000,000 - 1,000,000 -
Subordinated bonds - RM1.0 billion (g) 1,000,000 - 1,000,000 -
4,573,212 2,004,856 5,386,548 2,685,889

CIMB Bank Berhad
(13491-P)

30 Subordinated obligations (continued)

(a) The Bank had undertaken fair value hedge on the foreign exchange risk and interest rate risk of the USD300 million
subordinated notes using cross currency interest rate swaps and interest rate swaps.
2008 2007
RM’000 RM’000
Subordinated notes, at cost - 1,140,000

Fair value changes arising from fair value hedges - 32,164
Foreign exchange translations - (147,900)
- 1,024,264
The fair values of outstanding cross currency interest rate swaps and interest rate swaps at 31 December 2008 were
RMNil (2007: RM106,801,000) and RMNil (2007: RM3,558,000), respectively. The fair value hedge has been discontinued
as the subordinated notes have been fully redeemed during the financial year.
The main features of the USD300 million Subordinated Notes due 2013 Callable with Step-up in 2008 issued in 2003 (“The
Notes”) are as follows:
(i) The Notes are in bearer form, serially numbered and in denominations of USD1,000, USD10,000 and USD100,000.
(ii) The Notes bear interest at the rate of 5.125% per annum from and including 16 October 2003 to, but excluding, 16
October 2008 and, thereafter, at a rate per annum equal to the US Treasury Rate plus 3.55%. Interest will be payable
semi-annually in arrears on 16 April and 16 October, in each year, commencing 16 April 2004.
(iii) The Notes and Coupons constitute direct and unsecured obligations of the Issuer and are subordinated in the manner
described in the Conditions of the Notes and, for the avoidance of doubt, rank pari passu with the Issuer’s 7.5%
RM667 million ICULS with detachable coupons 2001/2011. The Notes and the Coupons rank and will rank pari passu
without any preference among themselves.
(v) The principal of, and interest and any additional amounts payable on the Notes will be subordinated in right of
payment upon occurrence of any Winding Up Proceeding to the prior payment in full of all deposit liabilities and all
other liabilities of the Issuer, except in each case to those liabilities which by their terms rank equally in right of payment
with or subordinated to the Notes.
(vi) The issuer may at its option, but subject to the prior written approval of Bank Negara Malaysia (“BNM”), redeem the
Notes on 16 October 2008 at their principal amount plus accrued interest.
The Bank has fully redeemed the Notes on 16 October 2008 upon obtaining approval from BNM.

CIMB Bank Berhad
(13491-P)


(b) The USD200 million 10-year subordinated notes (“the USD200 million Notes”) were issued on 30 June 2004. The USD200
million Notes were issued at a price of 99.028% of the principal amount and are callable with step-up in 2009. The
USD200 million Notes bear an interest rate of 6.125% per annum payable semi-annually in arrears for the first 5 years,
after which interest rate will be reset at a rate per annum equal to the 5-year US Treasury Rate plus 3.925%.
The Bank may at its option, subject to the prior approval of BNM, redeem the USD200 million Notes in whole but not in
part, on 30 June 2009 at their principal amount plus accrued interest.
The USD200 million Notes were listed on the Luxembourg Stock Exchange on 30 June 2004 and qualify as Tier-2 Capital
for the purpose of the risk weighted capital ratio (‘RWCR’) computation.
(c) On 12 June 2006, the Bank obtained a USD100 million subordinated loan due on 2014 callable with step-up in 2009 from
CIMB Investment Bank Berhad. The loan bears interest at the rate of 5% per annum from, and including 12 June 2006
to, but excluding 15 October 2008 and, thereafter, at a rate per annum equal to the US Treasury Rate plus 3.7%. The
interest rate is payable semi-annually in arrears on 15 April and 15 October in each year, commencing on 12 June 2006.
The USD100 million subordinated loan qualify as Tier-2 Capital for the purpose of the RWCR computation.
The Bank has undertaken fair value hedge on the foreign exchange risk and interest rate risk of the USD100 million
subordinated loan using interest rate swaps and net investment hedge of CIMB Bank (L) Limited.
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Subordinated loans, at cost 367,850 367,850 367,850 367,850

Fair value changes arising from fair value hedges 17,806 12,947 17,806 12,947
Foreign exchange translations (22,170) (40,932) (22,170) (40,932)
363,486 339,865 363,486 339,865
The fair values of interest rate swaps at 31 December 2008 were (RM2,165,621) (2007: RM5,304,000).
(d) The USD200 million 6.62% subordinated loans of the Bank were obtained from SBB Capital Corporation (“SCC”) from
the net proceeds that SCC raised through the issuance of SCC Preference Shares. The loans bear interest at a rate of
6.62% per annum payable semi-annually in arrears on 2 May and 2 November up to and including 2 November 2015.
Thereafter, interest will be reset at a floating rate per annum equal to three-month LIBOR plus 2.53%, payable quarterly
on 2 February, 2 May, 2 August and 2 November. The subordinated loans will mature on 2 November 2055. The USD200
million subordinated loans qualify as Tier-1 Capital for the purpose of the RWCR computation.
During the financial year, the Bank has undertaken fair value hedge on the interest rate risk of the USD200 million
subordinated note using interest rate swaps.

CIMB Bank Berhad
(13491-P)


The Bank
2008 2007
RM’000 RM’000
Subordinated notes, at cost 728,250 728,250

Foreign exchange translations (44,760) (73,070)
813,336 681,033
The fair values of interest rate swaps as at 31 December 2008 were RM127,438,641 (2007: RM27,875,240).
(e) The RM1.5 billion 10-year subordinated bonds (“the RM1.5 billion Bonds”) were issued by the Bank on 28 March 2008.
The Bonds were issued at par and are callable with step-up in 2013. The Bonds bear an interest rate of 4.9% per
annum payable semi-annually in arrears for the first 5 years, after which interest rate will be reset to 5.9% per annum
until maturity date.
The Bank may at its option, subject to the prior approval of BNM, redeem the RM1.5 billion Bonds in part or in whole, on
28 March 2013 at their principal amount.
The RM1.5 billion Bonds qualify as Tier-2 Capital for the purpose of the RWCR computation.
During the financial year, the Bank has undertaken fair value hedge on the interest rate risk amounting to RM600 million of
the RM1.5 billion Bonds using interest rate swaps.
2008 2007
RM’000 RM’000
Subordinated notes, at cost 600,000 -

Fair value changes arising from fair value hedges 35,476 -
635,476 -
The fair value of interest rate swaps as at 31 December 2008 was RM46,890,284 (2007:RMNil)
(f) The RM1.0 billion subordinated bonds (“the RM1.0 billion Bonds”) were issued at par on 7 October 2008 under the
Innovative Tier-1 Capital Securities Programme which was approved by the Securities Commission on 24 September
2008. The RM1.0 billion Bonds are due on 7 October 2038 callable with step-up on 7 October 2018. The bonds bear an
interest rate of 6.7% per annum payable semi-annually in arrears for the first ten years, after which the interest rate will be
reset at a rate per annum equal to the 3-month KLIBOR plus 2.98%.
The Bank may at its option, subject to the prior approval of BNM, redeem the RM1.0 billion subordinated 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.

CIMB Bank Berhad
(13491-P)


(g) The RM1.0 billion subordinated bonds (“the Bonds”) is part of the Non-Innovative Tier 1 Stapled Securities Issuance
Programme which was approved by the Securities Commission on 17 December 2008. Under the programme, the
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 the Bank; and

(ii) Subordinated Notes issued by Commerce Returns Berhad, a wholly-owned subsidiary of the Bank
The Bonds under the first 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, the 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-1 Capital for the purpose of the RWCR computation.
31 Redeemable preference shares

(a) 2008 2007
RM’000 RM’000
Authorised
Redeemable preference shares of RM0.10 each
At 1 January 100 100
Cancelled during the financial year (100) -
At 31 December - 100

2008 2007
RM’000 RM’000
Issued and fully paid

At 1 January 1,300,000 1,300,000
Redeemed during the financial year (1,300,000) -
Redeemable preference shares (liability) - 1,300,000
On 1 November 2006, the Bank issued 13,000 new Redeemable Preference Shares (“RPS”) of RM0.10 each to BCHB at
a premium of RM99,999.90 per share for RM1,300,000,000 being part consideration for the transfer of the entire assets
and liabilities of SBB Berhad (formerly known as Southern Bank Berhad) from BCHB to the Bank.

CIMB Bank Berhad
(13491-P)

31 Redeemable preference shares (continued)

In accordance with FRS 132 - Financial Instruments: Disclosure and Presentation, the RPS is recognised as a financial liability
in the Financial Statements. The main features of the RPS are as follows:
(i) The RPS will be entitled to an annual gross dividend rate of 3.60% per annum payable annually in arrears on the anniversary
of the issue date.
(ii) The RPS will not be convertible into ordinary shares.
(iii) The RPS will rank superior to ordinary shares in the event of winding up/ liquidation of the Bank.
(iv) The RPS will be redeemable at the option of the Bank (but not the holder) at anytime from the issue date subject to
approval by Bank Negara Malaysia.
The RPS qualify as Non-Innovative Tier-1 capital for RWCR calculation purposes.
During the financial year, the Bank has fully redeemed the Redeemable Preference Shares upon obtaining approval from BNM.
The Group
(b) 2008 2007
RM’000 RM’000
Authorised
Redeemable preference shares of USD0.01 each
At 1 January/31December 8 8

The Group
2008 2007
RM’000 RM’000

Redeemable preference shares of USD0.01 each
Non-cumulative guaranteed preference shares 813,336 681,033
The Group
2008 2007
RM’000 RM’000
Non-cumulative guaranteed preference shares, at cost 728,250 728,250

Foreign exchange translations (44,760) (73,070)
813,336 681,033

CIMB Bank Berhad
(13491-P)

31 Redeemable preference shares (continued)

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 SCC, a wholly owned subsidiary company of the Bank incorporated in Labuan. In
accordance with FRS 132 - Financial Instruments: Disclosure and Presentation, the SCC Preference Shares are recognised as
financial liability in the Financial Statements. 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 fixed 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 Bank Negara Malaysia, 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 floating 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 the Bank on a subordinated basis. If the SCC Preference shares have
not been redeemed in full on or prior to 2 November 2055, the Bank shall cause the substitution of the SCC Preference
Shares with Preference Shares issued by the Bank (Substitute Preference Shares) and the SCC Preference Shares shall
be mandatorily 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 Official 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.
(c) 2008 2007

RM’000 RM’000
Authorised
At 1 January - -
Created during the financial year 50,000 -
At 31 December 50,000 -

2008 2007
RM’000 RM’000

Redeemable preference shares (equity) 29,740 -

CIMB Bank Berhad
(13491-P)

31 Redeemable preference shares (Continued)

The Bank paid dividend of RM29.74 million on the RM1.3 billion RPS via bonus shares capitalised from retained profits. Arising
from this, on 30 January 2008, the Bank issued 2,974,009,486 RPS of nominal value RM0.01 each to the Bank’s minority
shareholders and to BCHB at an issue price of RM1.00 each, which was approved by the shareholders via an Extraordinary
General Meeting on the same date.
In accordance with FRS 132 - Financial Instruments: Disclosure and Presentation, the RPS is recognised as an equity in the
Financial Statements. The main features of the RPS are as follows:
(i) The RPS will rank equal in all respects with each other and senior to ordinary shares.
(ii) The RPS will be fully paid-up upon issue and allotment.
(iii) The RPS will not carry any fixed dividend but ranks the most senior in terms of dividend distribution.
(iv) The RPS will not carry any voting rights.
(v) The RPS will only be redeemable, subject to BNM’s approval, at the option of the Bank.
(vi) The RPS will not be convertible.
(vii) The RPS will not be earmarked to any particular assets or banking activities.
(viii) The RPS will not represent any fixed charge on the earnings of the Bank.
32 Ordinary share capital

2008 2007
RM’000 RM’000
Authorised
Ordinary shares of RM1.00 each:
At 1 January/31 December 7,000,000 7,000,000

At 1 January/31 December 2,974,009 2,974,009

CIMB Bank Berhad
(13491-P)

33 Perpetual preference shares

2008 2007
RM’000 RM’000
Authorised
Perpetual preference shares of RM1.00 each
At 1 January/31 December 500,000 500,000

2008 2007
RM’000 RM’000

The main features of the PPS are as follows:
(a) The PPS have no right to dividends.
(b) In the event of liquidation, dissolution or winding-up of the 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 the
Bank.
(c) The PPS rank pari passu in all aspects among themselves.
(d) The 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.
34 Reserves
(a) The statutory reserve is maintained in compliance with Section 36 of the Banking and Financial Institutions Act, 1989 and
is not distributable as cash dividends.
(b) Pursuant to the Finance Act, 2007 which was gazetted on 28 December 2007, dividends paid, credited or distributed to
shareholders are not tax deductible by the Bank, but is exempted from tax in the hands of the shareholders (“single tier
system”). During the year, the Bank has utilised the credit in the Section 108 balance to distribute dividend payments to
its shareholders as allowed by the transitional provision under the Finance Act, 2007. As at 31 December 2008, the Bank
has sufficient credit in the Section 108 balance to pay franked dividends and sufficient tax exempt account balances to
pay tax exempt dividends out of its entire retained earnings.
(c) Currency translation differences have arisen from translation of net assets of Labuan offshore banking subsidiaries and the
Bank’s foreign branches. These translation differences are shown under exchange fluctuation reserve.

CIMB Bank Berhad
(13491-P)

34 Reserves (continued)
(d) Capital reserves, which are non-distributable, relate to the retained earnings of Bumiputra-Commerce Finance Berhad and
CIMB Investment Bank Berhad, and the four months profit of SBB Berhad (formerly known as Southern Bank Berhad)
from 1 July 2006 to 31 October 2006 which were transferred to the Bank, arising from the business combinations under
common control using the ‘pooling-of-interests’/merger accounting method in financial year 2006.
(e) Merger deficit, which is non-distributable, relates to the difference between the cost of the merger between the Bank and
CIMB Investment Bank Berhad and SBB Berhad (formerly known as Southern Bank Berhad) in 2006 and the value of the
net assets and reserves transferred to the Bank and the Group.
(f) Movement of the revaluation reserve of available-for-sale securities is as follows:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
At 1 January 98,644 71,624 55,458 66,983

Net gain from change in fair value 116,701 85,957 137,550 36,500
Net loss transferred to net profit on disposal and
impairment (108,326) (66,465) (103,283) (54,011)
Deferred taxation (8,069) 7,528 (8,093) 5,986
Acquisition of associate 32,167 - - -
Net change in available-for-sale securities 32,473 27,020 26,174 (11,525)
131,117 98,644 81,632 55,458
(g) Hedging reserve arise from net investment hedge activities undertaken by the Bank on overseas operations and foreign
subsidiaries. The reserve are non-distributable and are reversed to the income statement when the foreign operations and
subsidiaries are partially or fully disposed.
35 Share premium
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Relating to
- Ordinary shares 4,157,074 4,157,074 4,157,074 4,157,074
- Redeemable preference shares (Note 31(a)) - 1,299,999 - 1,299,999
4,157,074 5,457,073 4,157,074 5,457,073

CIMB Bank Berhad
(13491-P)

36 Interest income
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Loans and advances

- interest income other than recoveries 5,142,021 4,974,163 4,810,704 4,616,295
- recoveries from non-performing loans and advances 376,522 449,437 375,561 440,831
- recoveries from NPL sale 5,541 - 5,541 -
Money at call and deposit with financial institutions 833,859 903,492 878,937 893,304
Securities purchased under resale agreement 124,891 119,640 124,891 108,733
Securities held for trading 505,221 498,170 401,708 355,673
Available-for-sale securities 221,779 234,597 219,603 222,843
Held-to-maturity securities 189,912 18,524 165,422 17,623
Others 3,043 5,543 313 3,738
7,402,789 7,203,566 6,982,680 6,659,040

Net accretion of discount less amortisation of premium 133,081 210,252 141,766 209,761
Net interest suspended (194,648) (217,392) (189,006) (210,390)
7,341,222 7,196,426 6,935,440 6,658,411
37 Interest expense
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

financial institutions 357,062 476,480 346,694 487,468
Deposits from other customers 2,663,475 2,407,040 2,506,151 2,107,759
Obligation on securities sold under repurchase
agreements 9,269 107,176 1,379 98,430
Loans sold to Cagamas 60,376 111,861 60,376 111,861
Negotiable certificates of deposits 225,602 192,601 225,602 193,418
ICULS 50,025 50,025 50,025 50,025
Redeemable preference shares 87,015 96,721 42,875 54,621
Subordinated obligations 171,425 146,418 215,565 188,518
Others 843 4,106 - -
3,625,092 3,592,428 3,448,667 3,292,100

CIMB Bank Berhad
(13491-P)

38 Non-interest income
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Fee and commission income

Commissions 164,224 212,440 150,461 171,942
Fee on loans and advances 301,840 293,130 284,477 212,116
Service charges and fees 157,816 127,573 146,206 109,770
Guarantee fees 47,904 57,622 47,686 57,387
Other fee income 218,027 195,532 227,181 204,158
889,811 886,297 856,011 755,373
Gross dividend income from:
Subsidiaries - - 74,985 316,452
Securities held for trading 29,500 52,520 29,458 48,571
Available-for-sale securities 21,676 18,406 19,970 18,406
Held-to-maturity securities 58 76 - -
51,234 71,002 124,413 383,429
Net gain/(loss) arising from securities held for
trading
- realised (36,587) 514,215 6,120 436,290
- unrealised (166,791) (123,171) (80,659) (53,257)
(203,378) 391,044 (74,539) 383,033

Net (loss)/gain arising from hedging derivatives (5,891) 16,650 (5,891) 16,650

Net gain/(loss) arising from derivative financial
instrument
- realised 59,980 (78,911) 49,757 (57,210)
- unrealised 112,452 328,219 129,712 353,728
172,432 249,308 179,469 296,518
Net gain from sale of available-for-sale securities 108,326 66,465 103,283 54,011

Net gain from held-to-maturity securities 4,089 566 4,089 -

Other non-interest income
Foreign exchange gain 274,875 137,346 292,827 132,178
Rental income 15,662 15,925 10,996 10,463
Gain on disposal of property, plant and equipment 6,393 3,317 5,076 2,765
Gain/(loss) on disposal of foreclosed properties 2,520 (410) 2,520 (410)
Gain on disposal of leased assets 244 - - -
(Loss)/gain on disposal of subsidiaries (2,669) 216,753 23,693 (159)
Gain on disposal of associate 2,904 - - -
(Loss)/gain on revaluation of investment properties (2,141) 56,158 (2,141) 56,158
Capital gain from capital repayment of subsidiary - - 248,700 -
Others 61,362 78,873 58,531 61,583
359,150 507,962 640,202 262,578
1,375,773 2,189,294 1,827,037 2,151,592

CIMB Bank Berhad
(13491-P)

39 Overheads
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Personnel costs
- Salaries, allowances and bonuses 872,925 1,049,292 783,348 963,572
- Pension cost (defined contribution plan) 102,658 90,648 100,573 88,053
- Pension cost (defined benefit plan) (Note 26(c)(ii)) 943 13,470 943 13,470
- Termination benefits 405 - 405 -
- Overtime 32,240 33,942 26,298 30,505
- Staff incentives and other staff payments 160,995 112,177 130,545 110,901
- Medical expenses 36,446 34,788 34,266 33,590
- Others 69,967 75,695 52,578 47,930
Establishment costs
- Depreciation of property, plant and equipment 134,500 121,922 116,860 101,044
- Amortisation of prepaid lease payments 1,057 1,710 998 1,517
- Rental 102,712 84,593 104,292 88,867
- Insurance 16,862 21,629 15,257 19,391
- Repairs and maintenance 129,088 100,881 125,374 82,842
- Outsourced services 111,455 121,330 225,612 222,390
- Premium security expenses 55,729 59,782 69,656 59,746
- Utility expenses 31,247 25,823 27,707 24,217
- Others 73,378 65,878 48,985 63,599
Marketing expenses
- Sales commission 26,619 19,706 17,814 19,508
- Advertisement 136,103 103,693 119,761 101,339
- Legal fees 32,693 58,396 32,693 58,396
- Others 11,742 8,466 6,380 3,863
Administration and general expenses

- Communication 39,268 71,161 36,766 69,285
- Consultancy and professional fees 40,613 39,680 37,837 37,719
- Legal expenses 52,923 42,823 51,766 41,886
- Stationery 55,585 52,523 50,812 47,320
- Merchant expenses 85,993 71,121 85,993 71,121
- Amortisation of intangible assets 111,371 95,741 104,346 92,622
- Postages 22,465 23,064 21,616 23,060
- Administrative travelling and vehicle expenses 20,913 22,777 19,947 22,330
- Incidental expenses on banking operations 84,133 91,864 77,344 90,775
- Others 44,411 143,325 25,884 110,588
2,697,439 2,857,900 2,552,656 2,741,446

CIMB Bank Berhad
(13491-P)

39 Overheads (Continued)
The above expenditure includes the following statutory disclosures:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Directors’ remuneration (excluding

benefits-in-kind) (Note 43) 3,700 5,126 3,282 4,751
Hire of equipment 4,166 3,109 3,626 3,047
Lease rental 4,476 7,413 4,390 7,413
Auditors’ remuneration
- statutory audit (PwC Malaysia) 1,794 1,707 1,380 1,230
- statutory audit (other member firms of PwC
International Limited) 362 409 362 342
- others (PwC Malaysia) 2,558 2,034 2,413 1,905
- others (other member firms of PwC International Limited) 1,481 330 1,481 327
Property, plant and equipment written-off 364 11,956 258 11,813
* PricewaterhouseCoopers Malaysia and other member firms of PricewaterhouseCoopers International Limited are separate
and independent legal entities.
40 Allowances for losses on loans, advances and financing

During the financial year, the Group and the Bank have evaluated their portfolio of non-performing loans, advances and
financing that have been in default and that remained uncollected for more than 7 years and also those non-performing loans,
advances and financing in default for more than 5 but less than 7 years. For loans, advances and financing in default for more
than 7 years, no value is assigned as the realisable value of collateral. For loans, advances and financing which are in default
for more than 5 but less than 7 years, 50% of the realisable value of assets held has been assigned as the value of collateral.
The effect of this exercise resulted in specific allowances of RM186,537,987 made for the Group (2007: RM303,981,333) and
RM172,843,102 (2007: RM295,972,088) made for the Bank during the financial year.

CIMB Bank Berhad
(13491-P)

40 Allowances for losses on loans, advances and financing (continued)

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Allowance for bad and doubtful debts and financing

(a) Specific allowance
- made during the financial year 1,508,387 1,999,713 1,364,169 1,918,625
- written back (718,893) (816,349) (608,735) (726,203)
- written back from NPL sale (61,099) - (60,416) -
(779,992) (816,349) (669,151) (726,203)
(b) General allowance
- made/(written back) during the financial year 229,830 24,461 217,803 (18,546)

Bad debts on loans and financing
- recovered (330,420) (294,251) (318,407) (285,215)
- recovered from NPL sale (26,276) - (25,594) -
- written off 1,185 762 913 206
602,714 914,336 569,733 888,867
41 Write-back of / (allowance for) impairment losses

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Securities held for trading

- made during the financial year (10,000) - (10,000) -
Available-for-sale securities
- made during the financial year (19,258) (36,120) (17,883) (36,120)
- written back during the financial year 106,703 112,610 106,703 112,610
87,445 76,490 88,820 76,490
Held-to-maturity securities
- made during the financial year (32,282) (3,178) (28,965) -
- written back during the financial year 1,318 - - -
(30,964) (3,178) (28,965) -
Goodwill
- made during the financial year - (3,000) (37,000) (198,000)
Subsidiaries
- (made)/written back during the financial year - - (21,178) 1,413
46,481 70,312 (8,323) (120,097)
The goodwill impaired arose from SBB Securities which was disposed during the financial year. In 2007, the goodwill was
reclassified to non-current assets/disposal groups held for sale (Note 57).

CIMB Bank Berhad
(13491-P)

42 Significant related party transactions and balances

(a) The related parties of, and their relationship with the Bank, are as follows:
Related parties Relationship

Bumiputra-Commerce Holdings Berhad Ultimate holding company
CIMB Group Sdn Bhd Holding company
Subsidiaries of the Bank as disclosed in Note 11 Subsidiaries
CIMB Investment Bank Berhad Subsidiary of holding company
SBB Berhad Subsidiary of ultimate holding company
PT Bank CIMB Niaga Tbk (formerly known as
PT Bank Niaga Tbk) and Group Subsidiary of holding company
Proton Commerce Sdn Bhd Jointly controlled entity
BankThai Public Company Limited Associate
Commerce International Group Berhad and Group Subsidiary of holding company
Commerce Asset Ventures Sdn Bhd and Group Subsidiary of holding company
Commerce Asset Realty Sdn Bhd Subsidiary of ultimate holding company
Commerce Asset Nominees Sdn Bhd Subsidiary of ultimate holding company
Commerce Volantia Sdn Bhd Subsidiary of ultimate holding company
Commerce MGI Sdn Bhd Subsidiary of ultimate holding company
Commerce Capital (Labuan) Ltd Subsidiary of ultimate holding company
Rangkaian Segar Sdn Bhd Associate of ultimate holding company
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 Bank either directly or indirectly. The key management personnel of the Group and the
Bank include all the Directors of the Bank and employees of the Bank who make certain critical decisions in relation to the
strategic direction of the Bank.
(b) Related party transactions

A number of banking transactions are entered into with related parties in the normal course of business. These include
loans, deposits, derivative transactions and other financial instruments. These transactions were carried out on commercial
terms and at market rates.
Other Key
Parent related management
company Subsidiaries companies personnel
2008 RM’000 RM’000 RM’000 RM’000
Income
Interest on deposits and placements with
financial institutions 82,716 85,498 37,955 -
Interest on loans, advances and financing - 9,312 - 20
Others - 39,795 - -
Expenditure
Interest on deposits from customers and securities
sold under repurchase agreement 12,156 - - 611
Interest on deposits and placements of banks and
other financial institutions - 76,987 51,811 -
Interest on ICULS 48,760 - - -
Others - 192,605 4 -

CIMB Bank Berhad
(13491-P)

42 Significant related party transactions and balances (continued)

(b) Related party transactions (Continued)
Other Key
2007 RM’000 RM’000 RM’000 RM’000
Income
Interest on deposits and placements with
financial institutions 74,226 41,172 28,541 -
Interest on loans, advances and financing - 13,780 - 139
Others - 3,317 - 16
Expenditure
Interest on deposits from customers and securities
sold under repurchase agreement 21,341 - - 3,043
Interest on deposits and placements of banks and
other financial institutions 4,517 131,620 16,143 -
Interest on ICULS 46,747 - - -
Others - 143,405 16,787 -
Transactions with other related parties are aggregated because these transactions are similar in nature and no single
transaction with these parties is significant enough to warrant separate disclosure.
(c) Related party balances
Other Key
2008 RM’000 RM’000 RM’000 RM’000
Amounts due from

Current accounts, deposits and placements with
banks and other financial institutions - 3,586,578 1,423,385 -
Loans, advances and financing 1,900,000 186,659 45,157 545
Others 239,061 111,849 1,158 -
Amounts due to
Deposits from customers and securities sold under
repurchase agreement 301,477 141,743 77,057 31,923
financial institutions 99,700 2,932,102 2,079,400 -
Subordinated obligations - - 345,680 -
ICULS 667,000 - - -
Others 16 25,732 5,250 66
Commitment and contingencies

Interest rate swap - 802,032 - -

CIMB Bank Berhad
(13491-P)


(c) Related party balances (Continued)
Other Key
2007 RM’000 RM’000 RM’000 RM’000
Amounts due from

Current accounts, deposits and placements with
banks and other financial institutions - 1,620,159 714,393 -
Loans, advances and financing 65,000 295,472 71,899 2,537
Deferred consideration - 46,314 - -
Others 231,697 26,056 988 -

Amounts due to
Deposits from customers and securities sold under
repurchase agreement 288,553 124,073 451,755 87,785
financial institutions 69,500 2,986,132 433,595 -
Subordinated obligations - - 330,568 -
ICULS 667,000 - - -
Others - 297,323 4,809 -

Commitment and contingencies
Interest rate swap - 836,671 - -
Other related party balances are unsecured, non-interest bearing and has no fixed repayment terms.
(d) Key management personnel

Key management compensation
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Salaries and other short-term employee benefits 24,938 27,273 23,513 26,009

Unit Unit Unit Unit
Share options balance of ultimate holding company 21,802,126 20,885,000 21,552,398 20,805,000
Included in the above is the Executive Directors’ compensation which is disclosed in Note 43. The share options are
granted on the same terms and condition as those offered to other employees of the Group and the Bank.

CIMB Bank Berhad
(13491-P)


(d) Key management personnel (Continued)
Key management compensation (Continued)
There were no loans, advances and financing granted to the Directors of the Bank. Loans made to other key management
personnel of the Group and the Bank are on similar terms and conditions generally available to other employees within
the Group. No specific allowances were required in 2008 and 2007 for loans, advances and financing made to the key
management personnel.
(e) Management Equity Scheme (“MES”)

The MES were granted to eligible senior management of the Bank as part of the performance linked compensation
scheme by a substantial shareholder of BCHB. The scheme was initially launched in 1 March 2004 at BCHB level and in
November 2007, both the Nomination and Remuneration Committee of BCHB approved amendments to the terms which
provides for the inclusion of the senior management of CIMB Group in the MES.
The eligibility for participation in the scheme shall be at the discretion of the Nomination and Remuneration Committee
of BCHB. Entitlement of eligible members of senior management are non-assignable and non-transferable whereby the
Nomination and Remuneration Committee of BCHB administers the scheme on behalf of the substantial shareholder. The
options granted vest in proportions across various exercise periods.
In December 2008, the substantial shareholder of BCHB approved the extension of the MES from 28 February 2009 to 28
February 2012. The MES will continue to be in force until 28 February 2012, after which the voting rights of unexercised
balances will remain with the substantial shareholder of BCHB.
All options have the same reference price which is at RM3.48 each. The weighted average remaining contractual life is
3.2 years.
The Group The Bank
2008 2007 2008 2007
’000 ’000 ’000 ’000

Number of options:
- Granted during the financial year (units) 800 1,180 650 1,100
- As at 31 December (units) 1,201 968 1,021 888
(f) Credit transactions and exposures with connected parties

Credit exposures with connected parties as per BNM’s revised “Guidelines in Credit Transactions and Exposures with
Connected Parties” which became effective on 1 January 2008 are as follows:
The Group The Bank
2008 2008
RM’000 RM’000
Outstanding credit exposures with connected parties 5,862,475 5,241,829

Percentage of outstanding credit exposures to connected parties as a
proportion of total credit exposures 4.5% 4.7%
Percentage of outstanding credit exposures with connected parties
which is non-performing or in default 0.0% 0.0%

CIMB Bank Berhad
(13491-P)

43 Directors’ remuneration
The Directors of the Bank in office during the financial year were as follows:
Non-Executive Directors
Tan Sri Dato’Seri Haidar bin Mohamed Nor

Dato’ Sri Mohamed Nazir Abdul Razak
Tan Sri G.K. Rama Iyer
Dato’ Zainal Abidin bin Putih
Dato’ Seri Yeap Leong Huat
Dato’ Dr. Mohamad Zawawi bin Ismail
Datuk Dr. Syed Muhamad bin Syed Abdul Kadir
Dato’ Mohd Shukri bin Hussin
Executive Directors

Dr. Gan Wee Beng
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Executive Directors
- Salary and other remuneration 1,332 1,308 1,332 1,308
- Bonus 864 2,334 864 2,334
- Benefits-in-kind 75 97 75 97

- Fees 309 304 192 202
- Other remuneration# 1,195 1,180 894 907
- Benefits-in-kind 73 47 44 47
3,848 5,270 3,401 4,895
# Includes RMNil (2007:RM62,000) paid to Dato’ Hamzah Bakar, who is a member of the Group Audit Committee, but is not a
member of the Board of Directors of the Bank.
Consistent with the practice for certain key personnel, the bonus for 2008 will be paid in tranches, spread over 2009. In
addition, the final tranche will only be paid out in the third quarter of 2009, after certain key financial performance indicators for
the Group has been met. A similar condition is also imposed on the 2008 bonus of certain key personnel.

CIMB Bank Berhad
(13491-P)

43 Directors’ remuneration (Continued)

The functions and responsibilities of the CEO are carried out on a Group basis.
The Directors of the Bank and their total remuneration during the financial year are analysed below:
The Group The Bank
2008 2007 2008 2007
Number of Number of Number of Number of
directors directors directors directors
Executive Directors
RM50,000 and below - - - -
RM50,001 – RM200,000 - - - -
RM200,001 – RM250,000 - - - -
RM250,001 – RM400,000 - - - -
RM400,001 – RM450,000 - - - -
RM450,001 – RM700,000 - - - -
RM700,001 – RM750,000 1 - 1 -
RM750,001 – RM1,500,000 - 1 - 1
RM1,500,001 – RM2,500,000 1 - 1 -
RM2,500,001 – RM2,900,000 - 1 - 1
RM50,000 and below 2 2 2 2
RM50,001 – RM100,000 - 1 - 1
RM100,001 – RM150,000 1 2 2 2
RM150,001 – RM200,000 1 - 2 2
RM200,001 – RM250,000 2 2 1 1
RM250,001 – RM300,000 - - - -
RM300,001 – RM350,000 1 1 1 1
RM350,001 – RM400,000 - - - -
RM400,001 – RM550,000 1 1 - -

CIMB Bank Berhad
(13491-P)

44 Taxation and zakat

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Taxation based on the profit for the financial year:

- Malaysian income tax 618,931 674,219 549,934 668,932
- Foreign tax 7,412 12,085 7,412 11,957
Deferred taxation (Note 9) (51,114) (88,038) (47,784) (95,008)
(Over)/under accrual in prior years (8,383) 3,617 (2,902) 3,571
566,846 601,883 506,660 589,452

Zakat 234 70 - -
567,080 601,953 506,660 589,452
Reconciliation between tax expense and the

Malaysian tax rate
Profit before taxation and zakat 2,141,778 2,334,498 2,184,696 1,767,939

Tax calculated at a rate of 26% (2007: 27%) 556,862 630,314 568,021 477,344
Tax effects:
- different tax rates in Labuan (13,261) (53,985) - -
- change in tax rates 12,457 15,826 11,664 15,000
- expenses not deductible for tax purposes 64,748 183,983 54,982 178,451
- income not subject to tax (45,577) (177,872) (125,105) (84,914)
- under/(over) accrual in prior years (8,383) 3,617 (2,902) 3,571
Tax expense 566,846 601,883 506,660 589,452
45 Earnings per share
The basic and fully diluted earnings per ordinary share for the Group have been calculated based on the net profit attributable
to ordinary equity holders of the Group of RM1,572,746,000 (2007: RM1,729,605,000). For the Bank, the basic and fully
diluted earnings per ordinary share have been calculated based on the net profit attributable to ordinary equity holders of the
Bank of RM1,678,036,000 (2007: RM1,178,487,000).
Potential ordinary shares that would be issued on conversion of the Irredeemable Convertible Unsecured Loan Stocks (“ICULS”)
are included in the weighted average number of ordinary shares used in the calculation of basic and fully diluted earnings per
share from the date of issue of the ICULS.
Ordinary shares issued arising from business combinations under common control are included in the calculation of the
weighted average number of shares from the date the business combination had been effected. The weighted average number
of shares in issue during the year of 3,641,009,000 (2007: 3,641,009,000) is used for the computation.

CIMB Bank Berhad
(13491-P)

46 Dividends
The gross and net dividend declared per share for each financial year are as follows:
2008 2007
Amount of Amount of
Gross Net dividend Gross Net dividend
per share per share net of tax per share per share net of tax
sen sen RM’000 sen sen RM’000

Dividends recognised as
distributions to equity holders:

Final dividend
Per ordinary shares - - - 8.75 6.39 189,965
Per redeembale preference shares 13.63 10.09 300,000 - - -

Interim special dividend
Per ordinary shares 2.00 1.48 44,000 11.52 8.41 250,002
Per ordinary shares - tax exempt 2.22 2.22 66,000 - - -
Per redeemable preference shares 9.09 6.72 200,000 - - -
26.94 20.51 610,000 20.27 14.80 439,967
The proposed dividend for redeemable preference shares in respect of the financial year ended 31 December 2007 was
approved by the Bank’s shareholders and paid in the current financial year. These are shown as a deduction from the retained
profits in the statement of changes in equity.
The Directors have proposed a second interim gross dividend of approximately 6.72 sen per share less 25% income tax on
2,974,009,486 Redeemable Preference Shares of RM0.01 each, amounting to RM150,000,000. The second interim dividend
was approved by the Board of Directors in a resolution dated 23 January 2009.
47 Lease commitments
The Group and the Bank have lease commitments in respect of rented premises and equipment on hire, all of which are
classified as operating leases. A summary of the non-cancellable long-term commitments, net of sub-leases, is as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Within one year 83,215 83,914 81,438 70,864

One year to less than five years 41,512 62,268 38,995 57,786
Five years and above 1,152 1,195 1,152 1,195

CIMB Bank Berhad
(13491-P)

48 Capital commitments
2008 2007
RM’000 RM’000
Capital expenditure:
- authorised and contracted for 24,269 47,421
- authorised but not contracted for 613,028 894,642
At 31 December 637,297 942,063

These capital commitments are for acquisition of property, plant and equipment of RM505,631,000 (2007: RM713,679,000)
and for computer software of RM131,666,000 (2007: RM228,384,000).
49 Capital adequacy
(a) The capital adequacy ratios of the Bank are as follows:
The Bank*
2008 2007
RM’000 RM’000
Tier I capital 11,662,347 9,705,107

Eligible Tier II capital 4,752,839 3,977,779
16,415,186 13,682,886
Less:
Investment in subsidiaries and holding of other banking institutions’ capital (1,376,978) (861,187)
Capital base before proposed dividend 15,038,208 12,821,699

Less: Proposed dividend (150,000) (300,000)
Capital base after proposed dividend 14,888,208 12,521,699

Core capital ratio 10.89% 9.66%
Risk-weighted capital ratio 14.04% 12.76%
Core capital ratio (net of proposed dividend) 10.75% 9.36%
Risk-weighted capital ratio (net of proposed dividend) 13.90% 12.46%

CIMB Bank Berhad
(13491-P)

49 Capital adequacy (Continued)

(b) Components of Tier I and Tier II capitals are as follows:
The Bank*
2008 2007
RM’000 RM’000
Tier I capital
Paid-up share capital 2,974,009 2,974,009
Perpetual preference shares 200,000 1,500,000
Non-innovative Tier I capital 1,000,000 -
Innovative Tier I capital 1,692,900 661,400
Other reserves 9,618,506 8,499,296
15,485,415 13,634,705
Less:
Deferred tax assets (263,993) (370,523)
Goodwill (3,559,075) (3,559,075)
Total Tier I capital 11,662,347 9,705,107

Tier II capital
ICULS issued 667,000 667,000
Subordinated notes 2,539,350 1,984,200
Redeemable preference shares 29,740 -
General allowance for bad and doubtful debts and financing 1,516,749 1,326,579
Total Eligible Tier II capital 4,752,839 3,977,779
Add/(less):
(i) Investment in subsidiaries (717,021) (787,467)
(ii) Investment in joint venture^ (51,564) (51,564)
(iii) Investment in associate (595,814) -
(iv) Holding of other banking institutions’ capital instruments (12,579) (22,156)
15,038,208 12,821,699

CIMB Bank Berhad
(13491-P)

49 Capital adequacy (Continued)

(c) Breakdown of risk-weighted assets in the various categories of risk-weights:
The Bank The Bank
2008 2007
Risk- Risk-
Principal weighted Principal weighted
RM’000 RM’000 RM’000 RM’000

0% 23,692,884 - 25,076,564 -
10% 147,282 14,728 187,815 18,782
20% 22,637,137 4,527,427 25,856,246 5,171,249
50% 24,013,412 12,006,706 18,869,263 9,434,632
100%# 85,765,298 85,765,298 74,383,220 74,383,220
Total risk-weighted assets for credit risks 156,256,013 102,314,159 144,373,108 89,007,883
Risk-weighted assets for market risk 4,629,925 4,629,925 11,505,792 11,505,792
Risk-weighted assets for large exposure
risk requirements 196,983 196,983 - -
Total risk-weighted assets 161,082,921 107,141,067 155,878,900 100,513,675
* Includes the operations of CIMB Bank (L) Limited and CIMB (L) Limited.
^ In accordance with a circular by Bank Negara Malaysia (“BNM”) dated 25 April 2006, the Bank is required to deduct
50% of its investment in its jointly controlled entity, PCSB, from the capital base for purposes of computing the capital
adequacy ratio.
# In accordance with BNM guidelines on the Recognition and Measurement of Profit Sharing Investment Account as
Risk Absorbent (‘PSIA Guidelines’), the credit and market risks on the assets funded by the PSIA are included in the
risk-weighted capital (‘RWCR’) calculation, where a 100% risk-weight is assigned.
The capital adequacy ratios have incorporated market risk pursuant to BNM’s guideline on Market Risk Capital Adequacy
Framework which is effective from 1 April 2005.
50 Significant events during the financial year

(a) Disposal of CIMB Trustee
On 1 January 2008, CIMB Bank Berhad and CIMB Group Nominees (Tempatan) Sdn Bhd disposed 20% of their equity
interest respectively in CIMB Trustee Berhad to CIMB Berhad and CIMB Holdings Sdn Bhd.
See Note 56(b)(i) for the effects of the disposal on the Financial Statements of the Group.
(b) Alliance with International Currency Exchange (“ICE”)

On 18 January 2008, the Bank signed a Participation Agreement with ICE Commercial Services Sdn Bhd and Lenlyn UK
Limited to manage the Bank’s retail foreign exchange business.
(c) Issuance of 2,974,009,486 Redeemable Preference Shares (“RPS”)

On 30 January 2008, the Bank issued 2,974,009,486 RPS of nominal value RM0.01 each to the Bank’s minority shareholders
and to BCHB at an issue price of RM1.00 each, which was approved by the shareholders via an Extraordinary General
Meeting on the same date.

CIMB Bank Berhad
(13491-P)

50 Significant events during the financial year (Continued)

(d) Disposal of South East Asian Bank Limited (“SEA Bank”)
On 1 April 2008, the Bank disposed its 60% equity interest in SEA Bank to British American Investment Co (Mauritius) Ltd.
for a cash consideration of RM40.0 million based on willing buyer-willing seller basis.
See Note 56 (b)(ii) for the effects of the disposal on the Financial Statements of the Group.
(e) Disposal of entire equity interest in Navis-CIMB General Partner Ltd (“Navis-CIMB”)
On 18 September 2008, CIMB (L) Limited, a wholly-owned subsidiary of the Bank, had disposed its entire 25% equity
interest in Navis-CIMB to Navis Capital Partners Ltd.
See Note 56(b)(iv) for the effects of the disposal on the Financial Statements of the Group.
(f) Issuance of Innovative Tier-1 Capital

On 24 September 2008, the Securities Commission had approved issuance of up to RM1.0 billion Innovative Tier-1 Capital
Securities (“IT-1 Issue”). The IT-1 Issue was completed on 7 October 2008.
(g) Disposal by SBB Capital Markets Sdn Bhd (“SCMSB”), a wholly-owned subsidiary of the Bank, of its 100%
equity interest in SBB Securities Sdn Bhd (“SSSB”) to HLG Credit Sdn Bhd (“HLGC”) (“SSSB Disposal”)
SCMSB and the Bank had on 19 October 2007 entered into a conditional share sale agreement with HLGC and HLG
Capital Berhad for the proposed disposal by SCMSB of its 100% equity interest in SSSB to HLGC for a total consideration
to be determined at a later date. The transaction was completed on 22 October 2008 for a total cash consideration of
RM75.2 million based on willing buyer-willing seller basis.
See Note 56 (b)(iii) for the effects of the disposal on the Financial Statements of the Group.
(h) Sale of non-performing loans

On 13 August 2008, the Bank entered into a conditional sale and purchase agreement to sell RM1.1 billion worth of non-
performing loans (“NPLs”) to Sinesinga Sdn Bhd, a special purpose vehicle created by Standard Merchant Bank (Asia)
Limited, which is part of the Standard Bank Group of South Africa. Approval was obtained from Bank Negara Malaysia
on 30 October 2008 which is conditional on change in the 51% ownership of Sinesinga Sdn Bhd within six months from
completion date of the NPL sale. The transaction was completed on 1 November 2008. The Bank has recognised a gain
of RM92.9 million from the sale of the NPLs of which RM87,375,000 is treated as a reduction of allowances for losses on
loans, advances and financing and the balance of RM5,541,000 as interest recovered.
(i) Acquisition of 42.13% equity stake in BankThai Public Company Limited (“BankThai”)
On 20 June 2008, the Bank’s holding company, CIMB Group Sdn Bhd, entered into a Share Purchase Agreement (“SPA”)
with Financial Institutions Development Fund (“FIDF”) to purchase or to procure the Bank to purchase 2,811,862,559 fully
paid ordinary shares of Baht 3.75 par value each in the share capital of BankThai, representing approximately 42.13%
of the total issued shares in BankThai, from FIDF for a total cash consideration of approximately Baht 5,904.9 million
(equivalent to approximately RM595.8 million) or a cash consideration of Baht 2.10 per BankThai share. The acquisition
was completed on 5 November 2008.
See Note 56(a)(i) for the effects of the acquisition on the Financial Statements of the Group.

Subsequently, on 13 January 2009, the Bank acquired a further 49.91% equity stake in BankThai as disclosed in Note 51(a).

CIMB Bank Berhad
(13491-P)

50 Significant events during the financial year (Continued)

(j) Proposed issuance of senior unsecured guaranteed bonds (“Bonds”) together with the issuance of 5 year
warrants (“Warrants”)
On 3 November 2008, CIMB Bank (L) Limited (“CIMB Bank (L)”) and Bumiputra-Commerce Holdings Berhad (“BCHB”)
entered into an agreement with TPG Malaysia Finance, L. P. for the proposed issuance by CIMB Bank (L) of up to USD150
million (the final amount to be mutually agreed between the parties subject to a floor of USD100 million) senior unsecured
guaranteed bonds (“Bonds”) together with the issuance by BCHB of 5 year warrants (“Warrants”). The Bonds will be
guaranteed by BCHB in the manner set out in the conditions applicable to the Bonds.
The issue date of the Bonds and Warrants shall be a business day to be decided by CIMB Bank (L) after the conditions
precedent listed in agreement have been satisfied. The issuance of the Bonds and Warrants is subject to approvals being
obtained from the relevant regulatory authorities.
(k) Issuance of Non-Innovative Tier 1 Stapled Securities Issuance Programme (“the Programme”)
On 17 December 2008, the Securities Commission approved the issuance of up to RM4.0 billion in nominal value
outstanding at any one time comprising:
(i) Non-Cumulative Perpetual Capital Securities issued by the Bank; and

(ii) Subordinated Notes issued by Commerce Returns Berhad, a wholly-owned subsidiary of the Bank
The first issuance under the programme amounting to RM1.0 billion was completed on 26 December 2008.
51 Subsequent events after the financial year

(a) Acquisition of additional 49.91% equity stake in BankThai Public Company Limited (“BankThai”)
Subsequent to the completion of the acquisition of the 42.13% equity stake in BankThai, the Bank extended a tender
offer under the laws of Thailand to acquire all the remaining BankThai shares not already owned by the Bank (“Tender
Offer”). The Tender Offer was completed on 13 January 2009 with a total of approximately 3.33 billion BankThai shares
representing approximately 49.91% of the total issued and paid-up share capital of BankThai accepting the Tender Offer
and consequently, the Bank’s total equity holding in BankThai is 92.04%, making it a subsidiary of the Bank.
(b) Disposal by the Bank of certain assets, liabilities and the asset/fund management business of Southern
Investment Bank Berhad (“SIBB”) to HLG Credit Sdn Bhd (“HLGC”), a 75% indirect subsidiary of Hong Leong
Financial Group Berhad (“SIBB Disposal”)
The SIBB Disposal has been approved by the Minister of Finance II on 20 May 2008 and the vesting of certain assets and
liabilities to HLGC was completed on 31 January 2009.
(c) Proposed sale and leaseback of Menara Bumiputra-Commerce

On 3 December 2007, the Bank and its ultimate holding company, Bumiputra Commerce Holdings Berhad (“BCHB”)
entered into a Sale and Purchase Agreement (“SPA”) and Lease Agreement (“LA”) with Pelaburan Hartanah Bumiputra
Berhad (“PHBB”) for the proposed sale and leaseback of Menara Bumiputra-Commerce.
Pursuant to the SPA and LA, BCHB shall dispose Menara Bumiputra-Commerce to PHBB for a total cash consideration of
RM460 million. The Bank will then lease Menara Bumiputra-Commerce for an initial lease tenure of ten years with renewal
options for two additional periods of five years each. The proposed sale and leaseback of Menara Bumiputra-Commerce
was completed on 16 February 2009.

CIMB Bank Berhad
(13491-P)

52 Critical accounting estimates and judgements in applying accounting policies

The Group and the Bank 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 Group’s and the Bank’s 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 and held-to-maturity securities

The Group and the Bank follow the guidance of the revised BNM/GP8 in determining when an investment is other than
temporarily impaired. This determination requires significant judgement. The Group and the Bank 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) Allowance on loans, advances and financing

The Group and the Bank make allowance for losses on loans, advances and financing based on assessment of
recoverability. Whilst management is guided by the relevant BNM guidelines, management makes judgement on the future
and other key factors in respect of the recovery of loans, advances and financing. Among the factors considered are the
Group’s aggregate exposure to the borrowers, the net realisable value of the underlying collateral value, the viability of the
customer’s 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 I 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
Group’s business into the various business segments. The goodwill is then allocated to these various business segments.
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 business segment, including the allocated goodwill, is compared to its fair value to determine
whether any impairment exists. Detailed calculations may need to be carried out taking into consideration changes in
market in which a business operates. In the absence of readily available market data, this calculation is usually based
upon discounting expected pre-tax cash flows at the Group’s and the Bank’s cost of capital, which requires exercise of
judgement.
Changes to the assumptions used by management, particularly the discount rate and the terminal growth rate, may
significantly affect the results of the impairment.
(d) Intangible assets

The Group’s and the Bank’s intangible assets that derive their value from contractual customer relationships and core
deposits or that can be separated and sold and have a finite useful life are amortised over their estimated useful life.

CIMB Bank Berhad
(13491-P)

52 Critical accounting estimates and judgements in applying accounting policies (Continued)

(d) Intangible assets (continued)
Determining the estimated useful life of these intangible assets requires an analysis of circumstances and judgement
by the Bank’s management. At each balance sheet date, or more frequently when events or changes in circumstances
dictate, intangible assets are assessed for indications of impairment. If indications are present, these assets are subject
to an impairment review. The impairment review comprises a comparison of the carrying amount of the assets with its
recoverable amount: the higher of the assets’ selling price and its value in use. Net selling price is calculated based by
reference to the amount at which the asset could be disposed in a binding agreement in an arms length transaction
evidenced by an active market or recent transactions for similar assets.
Value in use is calculated by discounting the expected future cash flows obtainable as a result of the assets’ continued
use, including those resulting from its ultimate disposal, at a market-based discount rate on pre-tax basis.
53 Segment reporting
(i) Primary reporting – business segments
Definition of segments
For management purposes, the Group is organised into six major operating divisions. The divisions form the basis on
which the Group reports its primary segment information.
Treasury
Treasury focuses on treasury activities and services which include foreign exchange, money market, derivatives and capital
market instruments trading. It also invests the Group’s proprietary capital.
Corporate and Investment Banking

Corporate and Investment Banking comprise Investment Banking, Corporate Banking, International Banking and
Transactional Services, Equity Derivatives and Equity Investment and Trading.
Investment Banking advises on issuance of equity and equity-linked products management services. Corporate Banking
provides a broad spectrum of financial and Ringgit lending services for domestic and multinational corporations as well
as institutional and public sector clients. International Banking and Transactional Services oversees the activities of the
Group’s overseas branches in London, Singapore and Hong Kong and provides conventional and customised financial
packages in order to meet customers’ needs, with products including non-Ringgit corporate lending, nominee services
and cash management services.
Equity Derivatives develops and issues new equity derivatives instruments such as structured warrants and over-the-
counter options to provide investors with alternative investment avenues. Equity Investment and Trading is the Group’s
proprietary equity trading unit.
Retail Banking
Retail Banking focuses on innovative products and services to individual customers. It offers products such as credit
facilities (residential mortgages, personal loans, share financing, credit card and hire purchase), remittance services,
deposit collection, private banking and retail equity services.
Business Banking
Business Banking is responsible for offering products and services for customer segments comprising micro-enterprises,
small and medium-scale enterprises (“SME”s) and mid-sized corporations. Its products include credit facilities (loans,
banker’s acceptances, revolving credit, leasing, factoring, hire purchase), remittance services and deposit collection.

CIMB Bank Berhad
(13491-P)

53 Segment reporting (Continued)

(i) Primary reporting – business segments (Continued)
Foreign Banking Operations
Foreign Banking Operations comprise of BankThai Public Company Limited, which is involved in the provision of commercial
banking and related services.
Support and others

Support services comprises all middle and back-office processes and cost centres and other subsidiaries whose results
are not material to the Group.
Corporate
and Foreign
Investment Retail Business Banking Support
2008 Treasury Banking Banking Banking Operations and others Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Net interest income
- external (385,690) 1,285,829 2,310,050 497,495 - 8,446 3,716,130
- inter-segment 951,161 (612,957) (542,303) 242,187 - (38,088) -
565,471 672,872 1,767,747 739,682 - (29,642) 3,716,130

Islamic banking income 70,899 67,795 188,569 13,127 - - 340,390
Non-interest income 260,462 403,048 518,896 131,116 - 62,251 1,375,773
896,832 1,143,715 2,475,212 883,925 - 32,609 5,432,293

Overheads (199,174) (247,919) (1,653,920) (510,816) - (85,610) (2,697,439)
Profit/(loss) before allowances 697,658 895,796 821,292 373,109 - (53,001) 2,734,854

(Allowances for)/write-back of
losses on loans, advances
and financing - (210,889) (355,671) (38,749) - 2,595 (602,714)
Write-back of losses on
other receivables 3 - - - - 466 469
(Allowances for)/write-back
of impairment losses (46,291) 92,830 - - - (58) 46,481
Segment results 651,370 777,737 465,621 334,360 - (49,998) 2,179,090

Share of results of jointly
controlled entity - - 3,253 - - - 3,253
Share of results of associate - - - - (40,565) - (40,565)
Taxation and zakat (567,080)
Net profit after taxation and

zakat 1,574,698

CIMB Bank Berhad
(13491-P)


Corporate
and Foreign
Investment Retail Business Banking Support
2008 Treasury Banking Banking Banking Operations and others Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Segment assets 64,453,411 38,086,188 48,067,980 13,337,556 587,280 1,822 164,534,237

Unallocated assets 3,616,757
Total assets 168,150,994
Segment liabilities 84,713,596 15,040,942 32,896,776 18,480,949 - 1,480,340 152,612,603

Unallocated liabilities 2,456,473
Total liabilities 155,069,076
Other segment items

Capital expenditure 3,515 2,522 16,023 5,616 - 247,056 274,732
Depreciation of property,
plant and equipment 1,458 1,031 7,584 10,572 - 113,855 134,500
Amortisation of prepaid
lease payments - - - - - 1,057 1,057
Amortisation of intangible
assets 1,716 1,611 49,817 314 - 57,913 111,371
Accretion of discount less
amortisation of premium 132,708 81 - - - 292 133,081
Investment in joint venture - - 127,701 - - - 127,701
Investment in associate - - - - 587,280 - 587,280

CIMB Bank Berhad
(13491-P)


Corporate
and
Investment Retail Business Support
2007 Treasury Banking Banking Banking and others Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Net interest income

- external 19,258 1,046,402 2,035,291 554,788 (51,741) 3,603,998
- inter-segment 576,873 (428,807) (314,581) 166,515 - -
596,131 617,595 1,720,710 721,303 (51,741) 3,603,998
Islamic banking income 104,503 27,501 118,609 2,336 - 252,949
Non-interest income 770,509 669,548 443,985 155,940 149,312 2,189,294
1,471,143 1,314,644 2,283,304 879,579 97,571 6,046,241
Overheads (251,113) (347,903) (1,603,263) (571,564) (84,057) (2,857,900)
Profit before allowances 1,220,030 966,741 680,041 308,015 13,514 3,188,341
(Allowances for)/write-back of losses on
loans, advances and financing - (99,246) (693,515) (122,030) 455 (914,336)
Allowance for losses on other receivables (124) (13,426) - - (246) (13,796)
(Allowances for)/write-back of
impairment losses (10,182) 86,672 - - (6,178) 70,312
Segment results 1,209,724 940,741 (13,474) 185,985 7,545 2,330,521
Share of results of jointly controlled entity - - 3,410 - - 3,410
Share of results of associate - 567 - - - 567
Taxation and zakat (601,953)
Net profit after taxation and zakat 1,732,545

Segment assets 66,600,299 30,042,212 41,162,792 14,092,839 1,764 151,899,906
Unallocated assets 3,111,658
Total assets 155,011,564

Segment liabilities 78,243,878 13,706,853 27,993,921 17,264,334 3,108,483 140,317,469
Unallocated liabilities 2,559,024
Total liabilities 142,876,493

Other segment items
Capital expenditure 7,702 15,485 82,863 60,204 150,006 316,260
Depreciation of property, plant and
equipment 2,366 7,172 39,378 29,713 43,293 121,922
Amortisation of prepaid lease payments - - - - 1,710 1,710
Amortisation of intangible assets 2,048 939 48,310 1,239 43,205 95,741
Accretion of discount less amortisation
of premium 207,090 (318) - - 3,480 210,252
Investment in joint venture - - 124,448 - - 124,448
Investment in associate - 791 - - - 791

CIMB Bank Berhad
(13491-P)


Basis of pricing for inter-segment transfers:
Intersegmental charges are computed on the interest-bearing assets and liabilities of each business segment with rates
applied based on the interest yield curve according to the term structure of maturity.
(ii) Secondary reporting – geographic segments

The Group operates in two main geographical areas:
- Malaysia, the home country of the Group, which includes all the areas of operations in the primary business
segments.
- Overseas operations, which include branch and subsidiary operations in Singapore, United Kingdom and Hong Kong.
The overseas operations are involved mainly in corporate lending and borrowing activities. With the exception of
Malaysia, no other individual country contributed more than 10% of the net interest income and of total assets.
2008
Net interest Total Total Capital
income assets liabilities expenditure
RM’000 RM’000 RM’000 RM’000

The Group
Malaysia 3,628,156 161,895,206 148,665,889 267,668
Overseas operations 87,974 6,255,788 6,403,187 7,064
3,716,130 168,150,994 155,069,076 274,732

2007
Net interest Total Total Capital
income assets liabilities expenditure
RM’000 RM’000 RM’000 RM’000
The Group
Malaysia 3,495,622 146,474,521 135,034,330 307,521
Overseas operations 108,376 8,537,043 7,842,163 8,739
3,603,998 155,011,564 142,876,493 316,260
54 Risk management and use of financial instruments

(a) Financial risk management objectives and policies
An effective risk management system is critical for the Bank to achieve continued profitability and sustainable growth in
shareholder’s value, more so in today’s globalised, yet inter-linked financial and economic environment.
Risk management is an integral part of the Bank’s activities and is an important feature in all its business, operations,
delivery channels and decision-making processes. The extent to which the Bank is able to identify, assess, monitor,
manage and report each of the various types of risk is critical to its safety, soundness and profitability. The Bank’s risk
management function is independent of its operating units and reports to the Board on a regular basis. The Bank does not
embark on new businesses, introduce new products, engage in new activities or enter into new markets, unless approved
by the Group Risk Committee.

CIMB Bank Berhad
(13491-P)

54 Risk management and use of financial instruments (Continued)

(a) Financial risk management objectives and policies (Continued)
Generally, the objectives of the Bank’s risk management framework are to:
• Identify the various risk exposures and risk capital requirements;

• Establish the policies and procedures to measure, monitor, manage and report these exposures, and to ensure that
they are within the Bank’s risk profile as approved by the Board of the Bank; and
• Set out the appropriate responsibilities, internal controls, as well as supporting structures required in the risk
management process.
(b) Enterprise Risk Management and Control Framework

CIMB Group employs an Enterprise Wide Risk Management (“EWRM”) framework to manage its risk and opportunity
effectively. The EWRM framework involves an on-going process of identifying, evaluating, monitoring, managing and
reporting significant risks affecting the Group, implemented through a number of committees established by the Board of
Directors. The framework provides the Board and its management with a tool to anticipate and manage both the existing
and potential risk, taking into consideration the changing risk profiles, as dictated by changes in business strategies and
regulatory environment and functional activities throughout the year.
The Bank employs a Capital-at-Risk (“CaR”) framework as the common measure of risk across CIMB Group. The CaR
framework provides the basis of allocating economic capital within CIMB, to cushion against unexpected losses. CaR can
be aggregated, thus allowing measurement of the Bank’s total risk. It also provides a yardstick for evaluating risk-return
relationship in different lines of business. The CaR framework also enables measurement of return of risk-adjusted-capital,
to compare profitability across different businesses and for performance measurement in the Bank.
A group wide stress test is performed on a biannual basis to evaluate the financial impact on the Group in the event of
projected adverse economic and financial situations. This process enables the Group to assess the sufficiency of its
liquidity surplus and reserves, and whether it could continue to meet its minimum capital requirement under such scenario.
Such group wide stress test allows management to gain a better understanding of how portfolios and investments are
likely to react to changing economic conditions and how the Group can best prepare for and react to them. In addition,
the Group performs ad-hoc stress tests on selected portfolio to evaluate its performance under a given stress scenario.
(c) Risk Management Organisation

At the apex of the Bank management structure is the Board Risk Committee (“BRC”), which comprises exclusively of non-
executive Directors of the Bank. In line with best practices, the BRC determines the risk policy objectives for the Bank, and
assumes ultimate responsibility for risk management. The BRC also decides the yearly allocation of risk capital to support
all risks taken by the Bank.
The day-to-day responsibility for risk management and control is delegated to the Group Risk Committee (“GRC”). The
GRC, comprises of senior management of the Group, undertakes the oversight function for capital allocation and overall
risk limits, in line with the risk appetite determined by the Board of Directors. The GRC is supported by four specialised
sub-committees, namely the Market and International Risk Committee, the Credit Risk Committee, the Liquidity Risk
Committee and the Operational Risk Committee, each addressing one of the following:
• Market risk, arising from changes in market prices from exposure to interest rates, currency exchange rate, credit
spreads, equity and commodities prices;
• Credit risk, arising from losses due to obligor, counterparty or issuer failing to perform its contractual obligations to the
Group;

CIMB Bank Berhad
(13491-P)


(c) Risk Management Organisation (Continued)
• Liquidity risk, arising from a bank’s inability to meet its present and future funding needs on a timely basis, from
mismatches between the size of assets and liabilities or their maturities; and
• Operational risk, arising from internal processes which may result from inadequacies or failures in processes, controls or
projects due to fraud, unauthorised activities, error, omission, inefficiency, systems failures or from external events.
The roles and responsibilities of the committees and sub-committees are set out in the chart below:
BOARD OF DIRECTORS
BOARD RISK COMMITTEE
• Review and recommend risk policies and strategies for approval

• Oversee entire EWRM and provide strategic guidance to various risk committees
GROUP RISK COMMITTEE
• Review and advise on risk policies and strategies

• Oversee management of risk, capital allocation and asset liability management
process across the Group
Market and International Risk Credit Risk Committee Liquidity Risk Committee Operational Risk Committee
Committee (“MIRC”) (“CRC”) (“LRC”) (“ORC”)
• Oversee exposures to • Credit approval authority • Oversee the Group’s overall • Oversee issues relating to the
market risks liquidity management operational risk and internal
• Assign and review the
control environment
• Evaluate and approve Inter-bank Limits, Sectorial • Ensure Group is able to meet
proposals for primary and Exposures, Global its cash flow obligations in • Review and evaluate
secondary market deals for Counterparty Credit Limits a timely and cost effective all Business Continuity
debt and equity instruments and Global Country Limits manner Management (BCM)/ Disaster
Recovery (DR) activities
(d) Group Risk Division (“GRD”)

The primary oversight body is the Group Risk Division, comprising of Group Risk Management (“GRM”) and Group Credit
(“GC”), which are independent of business units and assist the Management and the various risk committees in monitoring
and controlling the Group’s risk exposures.
The key responsibilities of GRD are to identify, analyse, monitor, review and report the principal risks to which the Bank
is exposed. It also helps to create shareholder value through proper allocation of risk capital, development of risk-based
pricing framework and facilitate development of new business and products.

CIMB Bank Berhad
(13491-P)


(e) Group Risk Management (“GRM”)
GRM monitors risk-taking activities, initiates and proposes risk policies, risk measurement methodologies, risk limits
and risk capital allocation, performs independent review of loan assets quality and loan recovery plan, coordinates new
products deployments and develops the risk-based product pricing framework for loan portfolios.
In propagating and ensuring compliance to the Market Risk framework, GRM reviews and analyses treasury trading
strategy, positions and activities vis-à-vis changes in the financial market and performs mark-to-market as part of financial
valuation. Further, GRM also conducts validation on the risk pricing parameters and models used.
GRM is also tasked with the co-ordination of the Group’s effort towards implementation of the Basel II framework in
compliance with the International Convergence of Capital Measurement and Capital Standards prescribed by the Bank
of International Settlements and as adopted by BNM. In this regard, GRM develops, implements and validates all internal
rating and scoring models and closely monitors the usage of the rating and scoring systems to ensure relevance to current
market conditions and integrity of the ratings.
On an annual basis, GRM proposes the global CaR limit to the GRC and BRC for approval. This limit is allocated by
the GRC to the various businesses of the Group through the MIRC and the CRC. The appropriate market and credit
allocations are given by the various business units to execute their business plans each year. GRC also ensures that the
aggregate risk exposure does not exceed the global CaR limit approved by the BRC.
(f) Group Credit (“GC”)

GC is authorised to approve applications for credit facilities of up to RM10 million extended to small and medium
enterprises. Otherwise, GC carries out independent assessments of all credit risk related proposals originating from the
various business units such as loans and advances, fixed income, derivatives, sales and trading, prior to submission to the
CRC, the EXCO or Board for approval. GC also reviews the Bank’s holdings of all fixed income assets and recommends
the internal ratings for CRC’s approval. GC is also responsible for tracking and analysing loans which turn non-performing
within 1 year of approval.
(g) Key Areas of Risk Management

1. Credit Risk
Credit and counterparty risk is defined as the possibility of losses due to an obligor or market counterparty or issuer
of securities failing to perform its contractual obligations to the Bank.
Credit risk arises primarily from lending activities through loans as well as commitments to support clients’ obligations
to third parties, i.e. guarantees. In sales and trading activities, credit risk arises from the possibility that counterparties
will not be able or willing to fulfil their obligation on transactions on or before settlement date. In derivatives activities,
credit risk arises when counterparties to derivative contracts, such as interest rate swaps, are not able to or willing to
fulfil their obligation to pay the Bank the positive fair value or receivable resulting from the execution of contract terms.
Credit risk may also arise where the downgrading of an entity’s rating causes the fair value of the Bank’s investment
in that entity’s financial instruments to fall.
Credit risk remains the most significant risk to which the Bank is exposed. The purpose of credit risk management
is to keep credit risk exposure to an acceptable level vis-à-vis the capital, and to ensure the returns commensurate
with risk.

CIMB Bank Berhad
(13491-P)


(g) Key Areas of Risk Management (Continued)
1. Credit Risk (Continued)
All credit exposures are subject to an internal rating, based on a combination of quantitative and qualitative criteria.
Adherence to set credit limits is monitored daily by GRM, which combines all exposures for each counterparty,
including off-balance sheet items and potential exposure. Compliance to the Group-wide credit policy limits the
exposure to any one counterparty or group, industry sector and rating classification.
Credit exposures are evaluated by the CRC and are monitored against approved limits on a regular basis. Adherence
to and compliance with single customer limit as well as assessing the quality of collateral are approaches adopted to
address concentration risk to any large sector/industry, or to a particular counterparty group or individual.
The result of severe disruption of the US sub-prime mortgage market was felt across the global financial markets in
2008, and were reflected in wider credit spread, higher volatility, tighter liquidity and ultimately, the collapse of several
large global investment banks. At the onset of the financial crisis, GC has conducted numerous reviews to scale down
the Group’s exposure in several industries/sectors, countries and counterparties that are affected by the sub-prime
and global financial crisis.

2. Market Risk
Market risk is defined as any fluctuation in the value of the portfolio resulting from changes in market prices, such as
interest rates, currency exchange rates, credit spreads, equity prices and commodities prices.
Market risk results from trading activities that can arise from customer-related businesses or from proprietary positions.
The Group hedges the exposures to market risk by employing varied strategies, including the use of derivative
instruments.
The Group adopts various measures in its risk management process to manage market risk. An accurate and timely
valuation of position is critical to provide the Group with its current market exposure. GRM values the exposure using
market price or a pricing model where appropriate.
The Group also adopts a value-at-risk (“VAR”) approach in the measurement of market risk. Backtesting is performed
to validate and reassess the accuracy of the existing VAR model. VAR is a statistical measure of the potential losses
that could occur as a result of movements in market rates and prices over a specified time horizon within a given
confidence level. Backtesting involves the comparison of the daily model-generated VAR forecast against the actual
or hypothetical profit or loss data over the corresponding period.
Stress testing is conducted to capture the potential market risk exposures from an unexpected market movement. In
formulating stress scenario, consideration is given to various aspects of the market; for example identification of areas
where unexpected losses can occur and areas where historical correlation may no longer hold true.
Policies and procedures governing risk-taking translates limits and management triggers which complements the
global CaR limit. Limits constitute the key mechanism to control allowable risk taking, and are regularly reviewed in
the face of changing business needs, market condition and regulatory changes.
Risk Middle Office (“RMO”) within GRM undertakes monitoring and oversight process at Group Treasury and Equity
Market & Derivatives trading floor, which includes reviewing and analysing treasury trading strategy, positions and
activities vis-à-vis changes in the financial market, monitoring limit usage, assessing limit adequacy and verifying
transaction prices.

CIMB Bank Berhad
(13491-P)


2. Market Risk (Continued)
Exposures to several of the Group’s global investment banking counterparties were reduced and further mitigated,
hence containing losses due to the global financial crisis.
3. Liquidity Risk
Liquidity risk is defined as the risk to earnings or shareholders funds from the Group’s inability to meet its present and
future (both anticipated and unanticipated) funding needs on a timely basis, arising from mismatches between the size
or maturities of assets and liabilities.
The Group’s liquidity risk management policy is to maintain hiqh quality and well diversified portfolios of liquid assets
and sources of funds. Management action triggers have been established to alert management to potential and
emerging liquidity pressures. The Group’s early warning system and contingency funding plans are in place to alert and
enable Management to act effectively and efficiently during a liquidity crisis and under adverse market conditions.
The Group’s liquidity risk management organisation and its strong liquidity position helped the Group manage through
the credit and liquidity turmoil that affected global financial markets in 2008. The Liquidity Risk Committee meets at
least once a month to discuss the liquidity risk and funding profile and is chaired by the Head of Group Risk Division.
The Asset Liability Management function, which is responsible for the independent monitoring of the Bank’s liquidity
risk profile, worked closely with Group Treasury in intensifying its surveillance on market conditions and performed
frequent stress testing on liquidity positions. Liquidity positions are monitored on a daily basis and complied with
regulatory requirements for liquidity risk. The Group maintained large buffers of liquidity throughout 2008. As result,
contingency funding plans were not required to be executed as there was sufficient liquidity to ensure safe and sound
operations from a strategic, structural and tactical perspective.
4. Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from
external events.
The existing Operational Risk Management Framework, which is revised periodically to cater for changing business
conditions, is designed objectively to monitor and control operational risk effectively leading to a sound and stable
operational environment within the Group. All operational risks, both inherent and anticipated, are properly identified,
captured, mitigated, monitored and reported in a systematic and consistent manner. The Operational Risk Committee
(“ORC”) has oversight responsibility for all Group operational activities conducted on a day-to-day basis.
The adoption of the Control Risk Self Assessment (“CRSA”) and the Self Assessment Review Project (“ShARP”) are
part of the Bank’s initiatives to ensure that operational risks within the processes in each business unit are properly
identified, analysed and mitigated on a periodic basis. Relevant Key Risk Indicators (“KRI”) are in use to track changes
that may highlight new risk concerns and potential areas of weaknesses in operational control.
Each new or varied product and changes to the process flow are subjected to a rigorous risk review through sign-offs
from the relevant support units where all critical risks are being identified and assessed independently from the risk
takers or product owners.
The Bank continued to stress the importance of adhering to internal controls and established procedures to deter
fraud and to minimize losses due to staff negligence. In order to demonstrate the seriousness of such offences, strict
disciplinary actions are instituted against staff concerned.

CIMB Bank Berhad
(13491-P)


5. Basel II Implementation
BNM has announced a two-phase approach for implementing the standards recommended by the Bank of
International Settlement set out in “International Convergence of Capital Measurement and Capital Standards: A
Revised Framework” (“Basel II”) in Malaysia. In the first phase, banking institutions will be required to adopt the
Standardised Approach for credit risk by the end of 2008. In the second phase, qualified banking institutions will be
allowed to migrate directly to the Internal Rating-Based approach (“IRB Approach”) by January 2010.
BNM has approved the Group’s application for direct migration to the IRB Approach. The approach for credit risk will
be Advance IRB for retail exposure and Foundation IRB for corporate exposure. Operational risk will be based on
Basic Indicator Approach and working towards Standarised Approach in 2010. Regular meetings are held with BNM
to ensure implementation initiatives are in line with their expectations.
A Basel II Steering Committee chaired by the Group CEO has been set up to oversee the implementation initiatives
across the Group with assistance of various sub-committees. Significant progress has been achieved in various
workstreams, primarily, in rating models calibration and risk datamart.
The Group employs an economic capital allocation framework, whereby capital is allocated to all business units. All
major categories of risk are measured. This is in line with the Second Pillar of Basel II framework-Supervisory Review
Process and also BNM’s Internal Capital Adequacy Assessment Process, which requires banks adopting the IRB
Approach to develop a robust risk management framework (methodologies and process) to assess the adequacy of
its internal economic capital in relation to the risk profile.
Ongoing efforts are in place to enhance the operational risk loss event reporting and data collection for the enlarged
Group. Initiatives are being made to promote a web based application to ensure loss event incidents are being
reported and captured on a timely basis and in an accurate manner. The integrated loss event database is crucial to
prepare the Group to adopt a more advanced operational measurement model.

198
(h) Interest rate risk
(13491-P)
The tables below summarise the Group’s and the Bank’s exposure to interest rate risks. Included in the tables are the Group’s and the Bank’s
CIMB Bank Berhad
assets and liabilities at their full carrying amounts, analysed by the earlier of contractual repricing or maturity dates. As interest rates and yield
curves change over time, the Group and the Bank may be exposed to loss in earnings due to the effects of interest rates on the structure of the
balance sheets. Sensitivity to interest rates arises from mismatches in the repricing dates, cash flows and other characteristics of the assets and
Annual Report 2008

their corresponding liabilities funding.
The Group
2008
Non-trading book
Up to 1 >1 – 3 >3 – 6 >6 – 12 >1 – 5 Over 5 Non-interest Trading
month months months months years years sensitive book Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Cash and short-term funds 20,114,833 - - - - - 1,851,529 - 21,966,362
Securities purchased under resale
agreements 1,439,221 1,528,549 - - - - - - 2,967,770
and other financial institutions - 1,793,676 293,813 51,970 - - - - 2,139,459
Securities held for trading - - - - - - - 9,564,281 9,564,281
Available-for-sale securities 62,599 171,108 165,119 473,516 2,404,158 2,747,504 1,336,186 - 7,360,190
Held-to-maturity securities 79,090 263,527 115,517 290,606 4,520,286 6,324,004 32,940 - 11,625,970
Derivative financial instruments - - - - 91,752 127,439 21,088 5,095,256 5,335,535
Loans, advances and financing
- Performing 46,407,918 5,930,943 1,954,450 1,807,246 16,187,880 22,520,846 195,094 - 95,004,377
- Non-performing - - - - - - 682,769^ - 682,769
Other assets - - 281,746 20,249 - - 1,793,576 - 2,095,571
Deferred taxation - - - - - - 304,537 - 304,537
Tax recoverable - - - - - - 248,055 - 248,055
Statutory deposits with central banks - - - - - - 2,723,540 - 2,723,540

Investment in jointly controlled entity - - - - - - 127,701 - 127,701

Investment in associate - - - - - - 587,280 - 587,280
and ultimate holding company - - - - - - 278,350 - 278,350
Amount due from related companies - - - - - - 90,926 - 90,926
Goodwill - - - - - - 3,695,075 - 3,695,075
Intangible assets - - - - - - 412,288 - 412,288
Prepaid lease payments - - - - - - 29,618 - 29,618
Property, plant and equipment - - - - - - 728,713 - 728,713
Investment properties - - - - - - 100,175 - 100,175
Non current-assets/disposal groups
held for sale - - - - - - 82,452 - 82,452
Total assets 68,103,661 9,687,803 2,810,645 2,643,587 23,204,076 31,719,793 15,321,892 14,659,537 168,150,994
(h) Interest rate risk (Continued)
The Group
2008
Non-trading book
Liabilities
Deposits from customers 64,713,144 17,357,986 9,341,461 7,394,071 4,892,250 15,866 23,910,963 - 127,625,741
and other financial institutions 3,753,959 3,839,264 397,399 238,929 19,011 365,232 736 - 8,614,530
Derivative financial instruments - - 2,166 - - 202,404 3,279 4,641,186 4,849,035
Bills and acceptances payable 1,243,331 1,276,781 75,689 5,591 - - 489,781 - 3,091,173
Amount due to Cagamas Berhad 11,524 73,487 298,801 136,845 473,161 - - - 993,818
Amount due to related companies - - - - - - 15,432 - 15,432
Other liabilities - - - - - - 2,751,252 - 2,751,252
Provision for taxation and zakat - - - - - - 5,698 - 5,698
Irredeemable Convertible Unsecured
Loan Stocks - - - - 667,000 - - - 667,000
Other borrowings 1,039,350 - - - - - - - 1,039,350
Subordinated obligations - - 1,037,736 - 1,535,476 2,000,000 - - 4,573,212
Redeemable preference shares - - - - - 813,336 - - 813,336
classified as held for sale - - - - - - 29,499 - 29,499
Total liabilities 70,761,308 22,547,518 11,153,252 7,775,436 7,586,898 3,396,838 27,206,640 4,641,186 155,069,076

Total interest rate sensitivity gap (2,657,647) (12,859,715) (8,342,607) (5,131,849) 15,617,178 28,322,955 10,018,351
^ Includes specific allowances and general allowances of RM4,791,009,000.
Annual Report 2008

199
(13491-P)
CIMB Bank Berhad
200
(13491-P)
The Group
CIMB Bank Berhad
2007
Non-trading book
Annual Report 2008

Assets
agreements 2,262,846 2,046,125 - - - - - - 4,308,971
and other financial institutions - 4,164,019 921,361 35,298 - - - - 5,120,678
Held-to-maturity securities 61,484 59,834 49,191 29,691 780,723 2,459,645 32,748 - 3,473,316
Derivative financial instruments - - - - 46,383 - 74,586 1,589,961 1,710,930
- Performing 43,746,585 4,676,720 1,534,914 1,246,362 10,588,991 16,742,809 5,443 - 78,541,824
- Non-performing - - - - - - 2,075,709^ - 2,075,709
Other assets - - 273,423 20,253 - - 1,110,574 - 1,404,250
Tax recoverable - - - - - - 6,750 - 6,750
Investment in associate - - - - - - 791 - 791
Goodwill - - - - - - 3,695,075 - 3,695,075


Non-current assets/disposal groups
held for sale - - - - - - 762,094 - 762,094
Total assets 72,222,528 11,243,701 3,097,505 1,878,253 13,877,993 21,019,918 15,847,836 15,823,830 155,011,564
The Group
2007
Non-trading book
Liabilities
Deposits from customers 58,546,897 17,029,983 6,183,062 7,185,838 5,337,844 422 17,905,591 - 112,189,637
and other financial institutions 6,281,340 4,660,577 1,429,755 54,229 - 268,994 - - 12,694,895
repurchase agreements 605,780 - - - - - - - 605,780
Derivative financial instruments - - - 3,559 - 112,720 1,363 1,492,394 1,610,036
Bills and acceptances payable 1,372,665 1,661,621 684,829 676 - - 743,322 - 4,463,113
Amount due to Cagamas Berhad 94,831 43,554 169,263 355,672 1,341,387 - - - 2,004,707
Redeemable asset-backed bonds - - - - 31,772 - - - 31,772
Amount due to related companies - - - - - - 1,977 - 1,977
Provision for taxation and zakat - - - - - - 104,294 - 104,294
Loan Stocks - - - - 667,000 - - - 667,000
Other borrowings 992,100 - - - - - - - 992,100
Subordinated obligations - - - - 980,591 1,024,265 - - 2,004,856
Redeemable preference shares - - - - - 1,981,033 - - 1,981,033
classified as held for sale - - - - - - 556,090 - 556,090

Total interest rate sensitivity gap 4,328,915 (12,152,034) (5,369,404) (5,721,721) 5,519,399 17,632,484 14,331,435
Annual Report 2008

201
(13491-P)
CIMB Bank Berhad
202
(13491-P)
The Bank
CIMB Bank Berhad
2008
Non-trading book
Annual Report 2008

Assets
agreements 1,439,221 1,528,549 - - - - - - 2,967,770
and other financial institutions 2,036,331 2,781,610 44,016 105,953 - - - - 4,967,910
Held-to-maturity securities - 28,717 - 262,773 2,705,032 5,688,687 192 - 8,685,401
Derivative financial instruments - - - - 91,752 127,439 3,314 4,903,501 5,126,006
- Performing 43,589,639 2,893,815 1,634,702 1,226,071 14,950,122 19,876,014 195,093 - 84,365,456
- Non-performing - - - - - - 556,721^ - 556,721
Other assets - - 281,745 20,250 - - 1,631,241 - 1,933,236
Taxation recoverable - - - - - - 226,786 - 226,786
Investment in subsidiaries - - - - - - 2,245,919 - 2,245,919
Investment in associate - - - - - - 595,814 - 595,814
Amount due from subsidiaries - - - - - - 197,618 - 197,618

Goodwill - - - - - - 3,559,075 - 3,559,075

held for sale - - - - - - 42,712 - 42,712
Total assets 59,893,090 7,393,781 2,100,527 2,031,479 19,849,121 28,211,138 16,169,865 11,420,900 147,069,901
The Bank
2008
Non-trading book
Liabilities
Deposits from customers 50,785,332 13,976,198 8,628,514 7,160,697 2,925,491 - 23,628,793 - 107,105,025
and other financial institutions 6,550,343 2,005,012 353,386 132,708 1,162,296 365,033 736 - 10,569,514
Derivative financial instruments - - 2,166 - - 202,404 2,842 4,612,945 4,820,357
Bills and acceptances payable 1,243,331 1,276,781 75,689 5,591 - - 484,523 - 3,085,915
Amount due to Cagamas Berhad 11,524 73,487 298,801 136,845 473,161 - - - 993,818
Amount due to subsidiaries - - - - - - 178,140 - 178,140
Amount due to related company - - - - - - 9,398 - 9,398
Irredeemable Convertible
Unsecured Loan Stocks - - - - 667,000 - - - 667,000
Subordinated obligations - - 1,037,736 - 1,535,476 2,813,336 - - 5,386,548

Annual Report 2008

203
(13491-P)
CIMB Bank Berhad
204
(13491-P)
The Bank
CIMB Bank Berhad
2007
Non-trading book
Annual Report 2008

Assets
agreements 2,262,846 2,046,125 - - - - - - 4,308,971
and other financial institutions 865,023 3,406,086 960,308 107,948 - - - - 5,339,365
Held-to-maturity securities - 59,834 49,191 29,623 772,463 2,455,056 - - 3,366,167
Derivative financial instruments - - - - 46,383 - - 1,589,961 1,636,344
- Performing 40,156,686 2,548,146 1,102,783 1,171,235 10,403,677 15,680,583 5,443 - 71,068,553
- Non-performing - - - - - - 1,943,224^ - 1,943,224
Other assets - - 273,423 20,253 - - 908,675 - 1,202,351
Investment in subsidiaries - - - - - - 2,321,488 - 2,321,488
Amount due from subsidiaries - - - - - 467,432 - 467,432
Deferred consideration - - - - - - 46,314 - 46,314
Goodwill - - - - - - 3,559,075 - 3,559,075


held for sale - - - - - - 115,886 - 115,886
Total assets 65,048,188 8,292,245 2,649,450 1,831,400 13,348,416 19,737,120 16,647,573 12,404,134 139,958,526
The Bank
2007
Non-trading book
Liabilities
Deposits from customers 51,432,469 13,567,243 5,413,159 6,909,191 4,251,753 - 17,733,549 - 99,307,364
and other financial institutions 7,813,406 3,593,028 887,337 35,082 1,091,310 365,000 - - 13,785,163
repurchase agreements 1,000 - - - - - - - 1,000
Derivative financial instruments - - - 3,559 112,720 - - 1,494,316 1,610,595
Bills and acceptances payable 1,372,665 1,661,621 684,829 676 - - 742,354 - 4,462,145
Amount due to Cagamas Berhad 94,831 43,554 169,263 355,672 1,341,387 - - - 2,004,707
Amount due to subsidiaries - - - - - - 357,760 - 357,760
Provision for taxation - - - - - - 89,316 - 89,316
Loan Stocks - - - - 667,000 - - - 667,000
Subordinated obligations - - - - 972,101 1,713,788 - - 2,685,889
Redeemable preference shares - - - - - 1,300,000 - - 1,300,000

^ Includes specific allowances and general allowances of RM4,427,219,000
Annual Report 2008

205
(13491-P)
CIMB Bank Berhad
CIMB Bank Berhad
(13491-P)


The tables below summarises the effective average interest rates by major currencies for each class of financial asset and
financial liability:
The Group The Bank
2008 2007 2008 2007
RM USD RM USD RM USD RM USD
% % % % % % % %
Financial assets
Cash and short-term funds 3.20 1.08 3.53 4.98 3.28 1.10 3.52 5.08
Securities purchased under
resale agreement 2.83 - 3.53 - 2.83 - 3.53 -
Deposits and placements
with banks and other
financial institutions 3.38 1.93 3.54 4.76 3.54 2.07 3.54 4.68
Securities held for trading 3.63 5.46 5.08 2.77 3.70 2.59 5.17 2.77
Available-for-sale securities 5.12 - 4.90 7.09 5.22 - 4.99 -
Held-to-maturity securities 5.64 7.26 5.31 - 5.67 - 5.24 -
Loans, advances and financing 5.72 3.92 6.53 6.22 5.71 - 6.53 -
Other assets 5.93 - 5.51 - 5.93 - 5.51 -

Financial liabilities
Deposits from customers 3.22 0.56 3.41 4.83 3.36 0.62 3.42 4.22
Deposits and placements of
banks and other
financial institutions 3.20 1.43 3.20 6.14 2.89 1.54 3.19 5.01
Obligations on securities sold
under repurchase agreements - - 3.45 - - - 3.45 -
Bills and acceptances payable 3.72 - 3.67 - 3.73 - 3.67 -
Amount due to Cagamas Berhad 4.74 - 3.83 - 4.74 - 3.83 -
Redeemable asset-backed bonds - - 4.75 - - - - -
ICULS 7.50 - 7.50 - 7.50 - 7.50 -
Other borrowings - 2.19 - 4.94 - - - -
Subordinated obligations 6.07 5.61 - 3.93 6.07 6.10 - 3.93
Redeemable preference shares - 6.62 3.60 6.62 - - 3.60 -

(i) Credit risk
The following tables set out the credit risk concentrations of financial instruments:
The Group
2008
Short term Treasury
funds and Securities related Credit related
placements purchased Securities Available- Held-to- Derivative Loans, Total commitments commitments
with financial under resale held for-sale maturity financial advances and on-balance and and
institutions agreement for trading securities securities instruments financing sheet contingencies contingencies
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Agriculture - - 133,259 128,408 284,836 340 2,206,557 2,753,400 8,701 320,868

Mining and quarrying - - - - - - 420,764 420,764 31,215 209,963
Manufacturing - - 5,471 123,656 110,126 61,617 7,733,217 8,034,087 244,518 689,813
Electricity, gas and water - - 229,560 1,143,606 1,567,379 70,669 945,268 3,956,483 96,108 101,168
Construction - - 55,016 552,039 206,003 38 5,180,529 5,993,625 148,217 1,417,506
Real estate - - 33,352 232,087 930,668 - 10,313,304 11,509,411 10,982 417,885
Purchase of landed
property
- Residential - - - - - - 18,546,181 18,546,181 - 10,150
- Non-residential - - - - - 429 5,685,054 5,685,483 2,640 6,295
General commerce - - - 28,626 46,809 4,019 1,401,051 1,480,505 105,024 1,363,631
Transport, storage and
communications - - 607,419 1,553,278 4,072,739 445,460 7,716,965 14,395,861 222,635 783,366
Finance, insurance and
business services 18,453,115 14,256 5,121,901 1,624,581 1,543,536 4,649,101 2,557,703 33,964,193 5,936,909 1,468,798
Government and
government agencies 5,652,706 2,953,514 3,182,136 1,281,068 2,841,809 5,336 - 15,916,569 14,207 43,203
Purchase of securities - - - 15,580 - - 7,160,336 7,175,916 4,500 155,903
Purchase of transport
vehicles - - - - - - 11,026,546 11,026,546 946 -
Consumption credit - - - - - - 10,171,035 10,171,035 - 14,678
Others - - 53,308 296,209 21,603 98,526 6,229,134 6,698,780 34,369 2,757,144
24,105,821 2,967,770 9,421,422# 6,979,138* 11,625,508α 5,335,535 97,293,644^ 157,728,837 6,860,971 9,760,371
# Exclude equity instruments amounting to RM142,859,000

* Exclude equity instruments amounting to RM381,051,000
α Exclude equity instruments amounting to RM462,000
^ Gross loans after specific allowance but before general allowance
Equity instruments are not subject to credit risk due to their nature which are short-term, lower credit risk, easily disposable and has no maturity period.
Annual Report 2008

207
(13491-P)
CIMB Bank Berhad
208
(i) Credit risk (Continued)
(13491-P)
The Group
CIMB Bank Berhad
2007
Short term Treasury
Annual Report 2008

Agriculture - - 15,978 26,382 - 517 2,197,438 2,240,315 1,155 228,665

Mining and quarrying - - 2,091 - - - 251,607 253,698 - 175,392
Manufacturing - - 67,610 156,797 1,812 14,676 8,605,504 8,846,399 185,515 931,315
Electricity, gas and water - - 2,084,420 1,019,778 - 11,292 769,002 3,884,492 85,491 76,028
Construction - - 230,660 429,398 2,909 33 4,861,763 5,524,763 119 1,978,739
Real estate - - 183,671 282,819 - - 7,993,754 8,460,244 1,863 79,202
Purchase of landed property
- Residential - - 298,145 - - - 16,651,058 16,949,203 - 25,649
- Non-residential - - - - - - 3,527,164 3,527,164 - 24,356
General commerce - - 169,676 342,158 - 52,387 1,727,617 2,291,838 13,899 939,003
communications - - 3,368,950 841,116 1,086,866 29,133 3,839,831 9,165,896 318,639 1,217,028
business services 19,912,132 28,641 3,432,661 1,637,401 37,191 1,512,928 1,804,489 28,365,443 4,821,744 2,109,830
Government and
government agencies 8,815,933 4,280,330 2,548,822 715,298 2,229,268 11,567 - 18,601,218 46,902 -
Purchase of securities - - - - - - 3,523,209 3,523,209 51,396 -
vehicles - - - - - - 11,221,103 11,221,103 - -

Consumption credit - - 52,820 6,995 - - 9,801,654 9,861,469 - 1,857
Others 4,167,239 - 1,010,759 841,809 115,000 78,397 5,219,594 11,432,798 15,521 2,579,309
32,895,304 4,308,971 13,466,263# 6,299,951* 3,473,046α 1,710,930 81,994,787^ 144,149,252 5,542,244 10,366,373

The Bank
2008
Short term Treasury
Agriculture - - 101,351 108,499 14,900 340 1,545,901 1,770,991 2,932 150,516

Mining and quarrying - - - - - - 182,681 182,681 31,215 140,990
Manufacturing - - 5,096 123,656 108,226 61,617 7,130,502 7,429,097 228,748 678,726
Electricity, gas and water - - 229,561 1,084,165 1,468,370 70,669 901,625 3,754,390 78,828 93,745
Construction - - 18,133 390,520 192,731 38 4,223,249 4,824,671 4,061 1,295,237
Real estate - - 32,454 211,372 - - 10,034,664 10,278,490 4,364 417,358
Purchase of landed
property
- Residential - - - - - - 17,793,588 17,793,588 - 10,150
- Non-residential - - - - - 429 5,053,741 5,054,170 2,640 6,295
General commerce - - - 19,211 4,563 4,019 907,643 935,436 21,774 1,251,353
communications - - 591,962 1,508,103 3,252,841 445,460 6,827,666 12,626,032 391,385 679,724
business services 15,184,429 14,256 2,202,261 1,283,231 834,391 4,409,272 702,854 24,630,694 5,674,481 1,047,091
Government and
government agencies 4,091,827 2,953,514 3,140,017 1,111,246 2,786,117 5,336 - 14,088,057 14,207 43,203
vehicles - - - - - - 9,698,436 9,698,436 - -
Consumption credit - - - - - - 9,633,659 9,633,659 - 14,678
Others - - 56,805 290,424 23,070 128,826 5,994,296 6,493,421 26,084 2,621,928
19,276,256 2,967,770 6,377,640# 6,130,427* 8,685,209α 5,126,006 86,368,712^ 134,932,020 6,485,219 8,450,994

Annual Report 2008

209
(13491-P)
CIMB Bank Berhad
210
(13491-P)
The Bank
CIMB Bank Berhad
2007
Short term Treasury
Annual Report 2008

Agriculture - - - 16,306 - 517 1,452,950 1,469,773 1,155 216,275

Mining and quarrying - - 2,091 - - - 190,592 192,683 - 175,392
Manufacturing - - 67,319 156,797 - 14,676 8,041,058 8,279,850 185,402 896,435
Electricity, gas and water - - 1,899,661 945,982 - 11,292 730,724 3,587,659 85,491 68,234
Construction - - 209,263 367,033 - 33 4,247,986 4,824,315 119 1,940,869
Real estate - - 117,435 247,796 - - 7,931,834 8,297,065 1,863 42,654
Purchase of landed property
- Residential - - 298,145 - - - 16,324,029 16,622,174 - 9,775
- Non-residential - - - - - - 3,347,459 3,347,459 - 10,856
General commerce - - 105,389 332,132 - 52,387 1,113,367 1,603,275 13,899 921,466
communications - - 2,532,590 673,362 991,718 29,133 2,897,096 7,123,899 318,639 894,398
business services 15,467,179 28,641 2,339,855 1,394,380 30,181 1,438,341 689,672 21,388,249 4,813,852 1,292,842
Government and
government agencies 8,825,319 4,280,330 1,472,468 485,329 2,229,268 11,567 - 17,304,281 46,902 -
vehicles - - - - - - 10,590,894 10,590,894 - -

Consumption credit - - 46,242 6,995 - - 9,738,519 9,791,756 - 138
Others 4,162,833 - 1,010,759 830,023 115,000 78,398 4,402,336 10,599,349 15,521 2,555,947
28,455,331 4,308,971 10,101,217# 5,456,135* 3,366,167 1,636,344 74,244,865^ 127,569,030 5,534,239 9,025,281

CIMB Bank Berhad
(13491-P)

55 Fair value of financial instruments

Financial instruments comprise financial assets, financial liabilities and off-balance sheet financial instruments. Fair value is
the amount at which a financial asset could be exchanged or a financial liability settled, between knowledgeable and willing
parties in an arm’s length transaction. The information presented herein represents the estimates of fair values as at the
balance sheet date.
Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted and
observable market prices are not available, fair values are estimated based on a range of methodologies and assumptions
regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows and other factors.
Changes in the uncertainties and assumptions could materially affect these estimates and the resulting fair value estimates.
In addition, fair value information for non-financial assets and liabilities are excluded as they do not fall within the scope of FRS
132 - Financial Instruments: Disclosure and Presentation which requires the fair value information to be disclosed.
A range of methodologies and assumptions had been used in deriving the fair values of the Group’s and the Bank’s financial
instruments at balance sheet date. The total fair value of each financial instrument approximates the total carrying value as at
the balance sheet, except for the following:
The Group The Bank
2008 2008
Carrying Carrying
amount Fair value amount Fair value
RM’000 RM’000 RM’000 RM’000
Financial assets
Deposit and placements with banks and
other financial institutions 2,139,459 2,139,609 4,967,910 4,969,036
Held-to-maturity securities 11,625,970 11,651,170 8,685,401 8,640,259
Loans, advances and financing 95,687,146 93,872,845 84,922,177 82,306,562

Deposits and placements of banks and
Amount due to Cagamas Berhad 993,818 994,910 993,818 994,910
Other borrowings 1,039,350 1,039,350 - -
Subordinated obligations 4,573,212 4,527,478 5,386,548 5,220,378

CIMB Bank Berhad
(13491-P)

55 Fair value of financial instruments (Continued)

The Group The Bank
2007 2007
Carrying Carrying
amount Fair value amount Fair value
RM’000 RM’000 RM’000 RM’000
Financial assets
Deposit and placements with banks and
Held-to-maturity securities 3,473,316 3,361,372 3,366,167 3,255,775
Loans, advances and financing 80,617,533 79,934,908 73,011,777 72,230,064

Amount due to Cagamas Berhad 2,004,707 2,008,653 2,004,707 2,008,653
Other borrowings 992,100 992,100 - -
Subordinated obligations 2,004,856 1,983,587 2,685,889 2,646,038
The carrying amount of the financial assets at the balance sheet date were not reduced to their estimated fair values as the
Directors are of the opinion that the amounts will be recoverable in full on the maturity date.
The fair values are based on the following methodologies and assumptions:
Short term funds and placements with financial institutions

For short term funds and placements with financial institutions 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.
Securities held for trading, available-for-sale securities and held-to-maturity securities

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 Bank establish fair value by using valuation techniques. These include the use of recent arm’s
length transactions, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by
market participants.

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 specific allowance, being
the expected recoverable amount.

CIMB Bank Berhad
(13491-P)


Amount due (to)/from subsidiaries and related companies
The estimated fair values of the amount due 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.
Amount due (to)/from holding company and ultimate holding company

The estimated fair value of the amount due from holding company approximates the carrying value as the balances are
recallable on demand.
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.
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 more than
six months, 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 acceptances 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.
Amount due to Cagamas Berhad

The estimated fair values of the amount due to Cagamas Berhad with maturities of less than six months approximate the
carrying values. For amount due to Cagamas Berhad with maturities of six months or more, the fair values are estimated based
on discounted cash flows using prevailing interest rates for loans sold to Cagamas Berhad with similar remaining period to
maturity.
ICULS
The estimated fair value of ICULS approximates the carrying value as based on the Directors’ estimate, the effective interest
rate of the ICULS is a fair reflection of the current rates for such similar long term borrowings.
Subordinated obligations
The fair values for the quoted subordinated obligations are obtained from quoted market prices while the fair values for
unquoted subordinated obligations are estimated based on discounted cash flow models.

CIMB Bank Berhad
(13491-P)


Redeemable preference shares
The estimated fair value of redeemable cumulative preference shares (“RCPS”) approximates the carrying value based on
Directors’ estimate as the effective interest rate of the RCPS is a fair reflection of the current rate for such similar instrument.
Derivative financial instruments

The fair values of derivative financial instruments are obtained from quoted market prices in active markets, including
recent market transactions and valuation techniques, including discounted cash flow models and option pricing models, as
appropriate.
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.
56 Business combinations
(a) Acquisitions during the financial year
(i) Acquisition of BankThai Public Company Limited
On 5 November 2008, CIMB Bank Berhad had acquired approximately 42.127% of the total issued share capital of
BankThai Public Company Limited (“BankThai”). The share of net assets arising from the acquisition are as follows:
Fair value Provisional

Carrying value adjustments fair value
RM’000 RM’000 RM’000
Cash and short term funds 411,306 411,306

Deposits and placements with bank and other financial institutions 4,272,528 4,272,528
Investments 4,488,772 4,488,772
Loans, advances and financing 8,149,980 (6,739) 8,143,241
Properties foreclosed 259,075 259,075
Property, plant and equipment 386,607 386,607
Intangible assets 50,221 50,221
Other assets 1,757,763 32,111 1,789,874
Deposits from customers (15,791,580) (15,791,580)
Deposits and placements of bank and other financial institutions (661,791) (661,791)
Bills and acceptances payable (18,087) (18,087)
Borrowings (758,002) (758,002)
Other liabilities (2,034,710) (22,795) (2,057,505)
Net assets 512,082 2,577 514,659

Share of net assets acquired 216,811
Premium on acquisition 379,003
Purchase consideration satisfied via cash 595,814

CIMB Bank Berhad
(13491-P)

56 Business combinations (Continued)

(a) Acquisitions during the financial year (Continued)
(i) Acquisition of BankThai Public Company Limited (Continued)
The premium on acquisition represents the value of synergies arising from the acquisition. The adjustments to other
assets, loans, advances and financing and other liabilities relate to valuation adjustments and are provisional, based
on management’s best estimates. The fair value adjustments in respect of intangibles assets are in progress. As
disclosed in Note 51(a), the Bank acquired a further 49.91% of the total issued and paid-up share capital of BankThai
on 13 January 2009, thus making BankThai a subsidiary of the Bank. The fair value adjustments will be finalised in the
2009 financial statements.
The acquisition contributed to a share of loss of RM40,701,460 to the Group for the period from 5 November 2008
to 31 December 2008. If the acquisition had occurred on 1 January 2008, the associate would have contributed
revenue (comprise net interest income and non-interest income) and net loss of RM299,670,532 and RM62,175,105
respectively, to the Group.
There were no acquisitions in the financial year ended 31 December 2007.
(b) Disposals during the financial year

(i) Disposal of CIMB Trustee Berhad
On 1 January 2008, CIMB Bank Berhad disposed 20% of its direct and 20% of its indirect equity interest in CIMB Trustee
Berhad to CIMB Berhad and CIMB Holdings Sdn Bhd. The disposal was satisfied via intercompany balances.
The effects of the disposal on the financial position of the Group as at 31 December 2008 are as follows:
2008
RM’000

Fixed assets (112)
Intangible assets (58)
Statutory deposit (40)
Deferred tax assets (69)
Trade debtors (165)
Sundry debtors (6)
Amount due from a related company -
Deposits and placements with a licensed trustee (571)
Deposits and placements with a licensed institution (1,427)
Cash and bank balances (435)
Sundry creditors 506
Provision for taxation 75
Amount due to holding company 409
Amount due to related company 437
Identifiable net assets disposed (1,456)

Net disposal proceeds 794
Loss on disposal before and after tax (662)

CIMB Bank Berhad
(13491-P)


(b) Disposals during the financial year (Continued)
(ii) Disposal of South East Asian Bank Limited (“SEA Bank”)
On 1 April 2008, CIMB Bank Berhad disposed its entire 60% equity interest in SEA Bank to British American
Investment Co (Mauritius) Ltd, for a total cash consideration of 339.0 million Mauritius Rupees (or approximately
RM40.0 million).

2008
RM’000

Cash and short-term funds (13,262)
Deposits and placements with banks and other financial institutions (125,144)
Securities and other investments (36,500)
Derivative financial instruments (11)
Loans, advances and financing (108,797)
Other assets (4,232)
Intangible assets (1,205)
Property, plant and equipment (8,413)
Deposit from customers 268,825
Deposits and placements of banks and other financial institutions 153
Deferred tax liabilities 434
Provision for taxation 214
Other liabilities 7,268

Less: Goodwill (1,574)
(22,244)
Net disposal proceeds 40,002
Gain on disposal before and after tax 17,758
The net cash flow on disposal was determined as follows:

Total proceeds from disposal - cash consideration 40,002
Expenses directly attributable to the disposal, paid in cash -

Cash and cash equivalents of subsidiaries disposed (13,262)
Net cash inflow on disposal 26,740

CIMB Bank Berhad
(13491-P)


(b) Disposals during the financial year (Continued)
(iii) Disposal of SBB Securities Sdn Bhd (“SSSB”)
On 22 October 2008, SBB Capital Markets Sdn Bhd (“SCMSB”), a wholly owned subsidiary of the Bank, had disposed
its 100% equity interest in SSSB to HLG Credit Sdn Bhd (“HLGC”) for a cash consideration of RM75.2 million.
2008
RM’000

Deferred tax assets (1,588)
Cients and brokers balances (assets) (29,746)
Other receivables, deposits and prepayments (1,085)
Tax recoverable (4,936)
Cash and bank balances (43,610)
Clients and brokers balances (liabilities) 17,132
Other payables and accruals 8,179
Less : Goodwill (37,000)
(94,942)
Loss on disposal before and after tax (19,765)

Expenses directly attributable to the disposal , paid in cash -
Cash and cash equivalents of subsidiaries disposed (43,610)
(iv) Disposal of Navis-CIMB General Partner Ltd (“Navis-CIMB”)

On 18 September 2008, CIMB(L) Limited, a wholly owned subsidiary of the Bank had disposed its entire 25% equity
interest in Navis-CIMB to Navis Capital Partners Ltd.
2008
RM’000

Non-current assets (229)
Current assets (741)
Current liabilities 375
Net assets (595)
Gain on disposal before and after tax 2,904

CIMB Bank Berhad
(13491-P)


(c) Disposals during the prior financial year
(i) Disposal of CIMB Wealth Advisors Berhad (“CIMB WA”) and SBB Assets Management Sdn Bhd (“SBBAM”)
On 7 February 2007, the Group, through its wholly-owned subsidiaries, BHL Venture Berhad and BHLB Assets
Management Sdn Bhd, disposed of its 100% equity interest in CIMBWA and SBBAM respectively, to CIMB-Principal
Asset Management Berhad, for a total cash consideration of RM481 million. The purchase consideration was based
on willing buyer-willing seller basis, after taking into consideration the assets under management of CIMB WA and
SBBAM as well as the agency distribution network of CIMB WA.
2008
RM’000

Cash and short-term funds (49,275)
Loans, advances and financing (3,409)
Deferred taxation (604)
Other liabilities 154,108
Current tax liabilities 1,737

Less : Goodwill (195,000)
(264,088)
Gain on disposal before and after taxation 216,912



Cash and cash equivalents of subsidiaries disposed of (49,275)

CIMB Bank Berhad
(13491-P)


(c) Disposals during the prior financial year (Continued)
(ii) Vesting of the Bank’s entire Islamic banking business to CIMB Islamic Bank Berhad (“CIMB Islamic”)
On 24 November 2006, the Bank proposed to enter into a business transfer agreement with CIMB Islamic to transfer
its entire Islamic banking business, which is operating under Section 124 of the Banking and Financial Institutions Act
1989 (“Islamic banking business”), to CIMB Islamic after obtaining all relevant approvals. On 1 March 2007, pursuant
to the order of the High Court of Malaya, which was obtained on 28 February 2007, the Bank’s entire Islamic banking
business was vested to CIMB Islamic in accordance with the terms and conditions of the business transfer agreement
entered into between the Bank and CIMB Islamic dated 6 February 2007. The effects of the disposal on the financial
position of the Bank as at 31 December 2007 are as follows:
2008
RM’000

Cash and short-term funds (296)
Securities held for trading (171,678)
Available-for-sale securities (575)
Held-to-maturity securities (179,535)
Financing, advances and other loans (1,126,261)
Statutory deposits with Bank Negara Malaysia (50,478)
Deferred tax asset (11,604)
Deposits from customers 758,984
Deposits and placements with banks and other financial institutions 1,271,052

Add: Goodwill (136,000)
(388,385)


Cash and cash equivalents of operations disposed of (296)

CIMB Bank Berhad
(13491-P)

57 Non-current assets/disposal groups held for sale

The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Non-current assets held for sale:

- disposal of certain assets of Southern
Investment Bank Berhad (i) 39,740 55,328 - -
- assets relating to disposal of 100% equity
interest in SBB Securities Sdn Bhd (ii) - 114,159 - -
- assets relating to disposal of 60% equity
interest in South East Asian Bank Ltd (iii) - 491,234 - 16,087
- goodwill (iv) 35,000 73,574 35,000 72,000
- foreclosed properties (v) 7,592 25,070 7,592 25,070
- property plant and equipment (v) 120 2,520 120 2,520
- prepaid lease payments (v) - 209 - 209
Total non-current assets held for sale 82,452 762,094 42,712 115,886

Liabilities directly associated with non-
current assets classified as held for sale:
- disposal of certain liabilities of Southern
Investment Bank Berhad (i) 29,499 54,267 - -
- liabilities relating to disposal of 100%
equity interest in SBB Securities Sdn Bhd (ii) - 41,414 - -
- liabilities relating to disposal of 60%
equity interest in South East Asian Bank Ltd (iii) - 460,409 - -
Total liabilities directly associated with non-current

assets classified as held for sale 29,499 556,090 - -
(i) Disposal of certain assets, liabilities and asset/fund management business of Southern Investment Bank
Berhad (“SIBB”)
Certain assets and liabilities of SIBB have been presented as held for sale following the proposed sale to HLG Credit Sdn
Bhd (“HLGC”). The disposal was completed on 31 January 2009.

CIMB Bank Berhad
(13491-P)

57 Non-current assets/disposal groups held for sale (Continued)

(i) Disposal of certain assets, liabilities and asset/fund management business of Southern Investment Bank
Berhad (“SIBB”) (Continued)
The assets and liabilities identified for disposal as at 31 December 2008 are as follows:
The Group
2008 2007
RM’000 RM’000
Assets
Loans, advances and financing 39,636 55,076
Intangible assets 83 182
Property, plant and equipment 21 70
Non-current assets held for sale 39,740 55,328

Liabilities
Deposits from customers 3,507 12,448
Deposits and placements of banks and other financial institutions 25,296 41,614
Other liabilities 696 205
Liabilities directly associated with non-current assets classified as held for sale 29,499 54,267
(ii) Disposal of 100% equity interest in SBB Securities Sdn Bhd (“SBB Securities”)
The assets and liabilities of SBB Securities have been presented as held for sale as at 31 December 2007 following the
conditional share sale agreement entered with HLG Credit Sdn Bhd on 19 October 2007. The disposal was completed on
22 October 2008.
(iii) Disposal of 60% equity interest in South East Asian Bank Ltd (“SEA Bank”)
On 4 December 2007, the Bank agreed to dispose its 60% equity interest in SEA Bank to British American Investment Co
(Mauritius) Ltd. The disposal was completed on 1 April 2008.
(iv) Goodwill
Arising from items (i) above, the goodwill arising from the acquisition of SIBB is classified as non-current assets held for
sale as at 31 December 2008.
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
SIBB 35,000 35,000 35,000 35,000

SBB Securities - 37,000 - 37,000
SEA Bank - 1,574 - -
35,000 73,574 35,000 72,000
(v) Foreclosed properties, property, plant and equipment and prepaid lease payments
Foreclosed properties, property, plant and equipment and prepaid lease payments of the Bank whereby 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 2009.

CIMB Bank Berhad
(13491-P)

58 Comparatives
(a) Restatement of comparatives
Certain comparatives were restated to conform with the current financial year’s presentation. There was no impact to the
financial performance and ratios in relation to the financial year ended 31 December 2007. The restatements are as follows:
As previously
Note reported Reclassification As restated
RM’000 RM’000 RM’000
Group
Balance sheet
Other assets (i) 1,433,265 (29,015) 1,404,250
Other liabilities (i) 2,998,218 (29,015) 2,969,203

Bank
Balance sheet
Cash and short term funds (ii) 23,490,309 (374,343) 23,115,966
and other financial institutions (ii) 4,965,022 374,343 5,339,365
Other assets (i) 1,231,366 (29,015) 1,202,351
Other liabilities (i) 2,819,548 (29,015) 2,790,533
Group
Income statement
Interest income (iii) 7,171,325 25,101 7,196,426
Non-interest income (iii) 2,214,395 (25,101) 2,189,294

Bank
Income statement
Interest income (iii) 6,633,310 25,101 6,658,411
Non-interest income (iii) 2,178,106 (26,514) 2,151,592
Write-back of/(allowance for) impairment losses (iii) (121,510) 1,413 (120,097)

(i) The reclassification amount shown is the net effect of the grossing and off-setting of certain account balances as
allowed under FRS 132, comprising clearing items of credit RM131,181,000 and Credit Support Annex for derivative
transactions of debit RM102,166,000.
(ii) An amount of RM374,343,000, being the Bank’s RPSIA placed with CIMB Islamic, was classified under “Cash and short
term funds” in 2007. As required by BNM, this amount has now been reclassified to deposits and placements with banks
and other financial institutions.
(iii) The reclassification is in relation to the following:

- option premium paid of RM25,101,000 which was previously classified as amortisation of premium but now treated
as realised loss from sale of derivatives.
- write-back of impairment in subsidiaries of RM1,413,000 previously classified as other income, now classified as
write-back of impairment losses.

CIMB Bank Berhad
(13491-P)

59 The operations of Islamic Banking

Balance Sheets as at 31 December 2008
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Assets
Cash and short-term funds (a) 6,249,125 4,013,925 - -
other financial institutions (b) 711,989 1,149,900 377,574 -
Securities held for trading (c) 2,882,056 618,872 - -
Available-for-sale securities (d) 612,378 654,874 - -
Held-to-maturity securities (e) 1,198,056 95,148 - -
Derivative financial instruments (f) 267,369 97,790 2,349 -
Financing, advances and other loans (g) 6,259,726 2,254,224 68,268 -
Other assets (h) 99,244 71,717 2,002 -
Deferred tax assets (i) 21,369 16,851 307 -
Amount due from related company - 5,996 - -
Amount due from holding company 100,622 - - -
Statutory deposits with Bank Negara Malaysia (j) 269,224 101,144 - -
Goodwill (k) 136,000 136,000 - -
Intangible assets (l) 5,962 9,556 - -
Property, plant and equipment (m) 3,855 3,691 - -
Total assets 18,816,975 9,229,688 450,500 -

Liabilities
Deposits from customers (n) 13,984,562 7,520,405 291,375 -
other financial institutions (o) 3,656,836 600,343 156,000 -
Derivative financial instruments (f) 46,452 1,408 - -
Bills and acceptances payable 5,258 968 - -
Other liabilities (p) 304,493 60,855 3,600 -
Amount due to holding company - 335,856 - -
Amount due to related company 4,010 - - -
Provision for taxation and zakat (q) 3,076 5,958 - -
Total liabilities 18,004,687 8,525,793 450,975 -

Equity
Ordinary share capital (r) 550,000 550,000 - -
Perpetual preference shares (s) 70,000 70,000 - -
Reserves (t) 192,288 83,895 (475) -
Total equity 812,288 703,895 (475) -
Total equity and liabilities 18,816,975 9,229,688 450,500 -
Commitment and contingencies (f) 11,402,365 4,146,681 293,695 -

CIMB Bank Berhad
(13491-P)

59 The operations of Islamic Banking (Continued)

Income Statements for the financial year ended 31 December 2008
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Income derived from investment of

depositors’ funds and others (u) 630,902 322,824 18,922 16,842
shareholders’ funds (v) 121,592 151,651 - 13,024
Allowances for losses on financing, advances
and other loans (w) (83,481) (65,833) (1,451) (14,191)
Allowances for impairment of securities (164) - - -
Transfer from/(to) profit equalisation reserve 26(a) 2,200 (235) - (1,075)
Other expenses directly attributable to
investment of the depositors’ and
shareholders’ funds (11,012) - (11,012) -
Total distributable income 660,037 408,407 6,459 14,600

Income attributable to depositors (x) (401,092) (221,526) (6,335) (13,554)
Total net income 258,945 186,881 124 1,046

Personnel expenses (y) (47,568) (27,509) (337) (264)
Other overheads and expenditures (z) (74,661) (44,679) (143) (2,442)
Profit/(loss) before taxation and zakat 136,716 114,693 (356) (1,660)

Taxation (ab) (23,756) (28,162) 307 (1,885)
Zakat (234) (70) - -
Profit/(loss) after taxation and zakat 112,726 86,461 (49) (3,545)

Total net income 258,945 186,881 124 1,046
Add: Allowances for losses on financing,
advances and other loans 83,481 65,833 1,451 14,191
Less: Transfer from/(to) profit equalisation reserve (2,200) 235 - 1,075
Less: Allowances for impairment of securities 164 - - -
Income from Islamic banking operations

(per page 080) 340,390 252,949 1,575 16,312

CIMB Bank Berhad
(13491-P)


Statements of Changes in Equity for the financial year ended 31 December 2008
Revaluation
reserve
Perpetual Exchange available
Share preference Statutory fluctuation for-sale Retained
capital shares reserve reserves securities profit Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

The Group
At 1 January 2008 550,000 70,000 39,186 (999) 303 45,405 703,895
Net gain from change in fair
value of available-for-sale
securities net of deferred tax - - - - (2,022) - (2,022)
Currency translation difference - - - (2,311) - - (2,311)
Income and expenses recognised
directly in equity - - - (2,311) (2,022) - (4,333)
Net profit for the financial year - - - - - 112,726 112,726

expenses for the financial year - - - (2,311) (2,022) 112,726 108,393
Transfer to statutory reserve - - 36,660 - - (36,660) -
At 31 December 2008 550,000 70,000 75,846 (3,310) (1,719) 121,471 812,288

CIMB Bank Berhad
(13491-P)


Statements of Changes in Equity for the financial year ended 31 December 2008 (Continued)
Revaluation
reserve Retained
Perpetual Islamic Exchange available profit /
Share preference Banking Statutory fluctuation for-sale (Accumulated
capital shares funds reserve reserves securities losses) Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
The Group
At 1 January 2007 150,000 70,000 250,000 7,008 - 2,768 (5,084) 474,692
Issue of shares
during the
financial year 400,000 - - - - - - 400,000
Net gain from
change in fair value
of available-for-sale
securities net of
deferred tax - - - - - (2,465) - (2,465)
Currency translation
difference - - - - (999) - - (999)
Income and expenses
recognised directly
in equity - - - - (999) (2,465) - (3,464)
Net profit for the
financial year - - - - - - 86,461 86,461
Total recognised
income and
expenses for the
financial year - - - - (999) (2,465) 86,461 82,997
Transaction with
shareholders - - (250,000) (2,001) - - (1,793) (253,794)
Transfer to statutory
reserve - - - 34,179 - - (34,179) -
At 31 December 2007 550,000 70,000 - 39,186 (999) 303 45,405 703,895

CIMB Bank Berhad
(13491-P)


Statements of Changes in Equity for the financial year ended 31 December 2008 (Continued)
Non-
distributable Distributable
Exchange
fluctuation Accumulated
reserves loss Total
RM’000 RM’000 RM’000

Bank
At 1 January 2008 - - -
Currency translation difference (426) - (426)
Net loss for the financial year - (49) (49)
At 31 December 2008 (426) (49) (475)
Non-
distributable Distributable
Malaysia
Islamic statutory Retained
Banking funds reserve profits Total
RM’000 RM’000 RM’000 RM’000

Bank
At 1 January 2007 250,000 2,001 5,338 257,339
Net loss for the financial year - - (3,545) (3,545)
Transaction with shareholders (250,000) (2,001) (1,793) (253,794)
At 31 December 2007 - - - -

CIMB Bank Berhad
(13491-P)


Cash flow statements for the financial year ended 31 December 2008
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash flows from/(used in) operating activities

Profit/(loss) before taxation and zakat 136,716 114,693 (356) (1,660)
Adjustments for:
Depreciation of property, plant and equipment 965 957 - -
Amortisation of intangible assets 3,829 1,808 - -
Property, plant and equipment written-off - 143 - -
Net gain from disposal of available-for-sale securities (105) (143) - -
Net loss/(gain) from sale of securities held for trading 100 (366) - 184
Unrealised gain on derivative financial instruments (127,914) (96,382) (2,349) -
Unrealised foreign exchange gain - (195) - -
Allowance for bad and doubtful debts and financing 90,803 69,195 1,451 14,191
Unrealised (gain)/loss from revaluation of securities
held for trading (95) 443 - -
Accretion of discount less amortisation of premium (31,964) (16,093) - (810)
Profit income from available-for-sale securities (24,433) (17,674) - (70)
Profit income from held-to-maturity securities (17,847) (6,289) - (932)
Transfer (from)/to profit equalisation reserve (2,200) 235 - 1,075
Impairment loss for securities 164 - - -
Bad debt written off 47 - - -
28,066 50,332 (1,254) 11,978
(Increase)/decrease in operating assets
other financial institutions 437,912 (1,036,900) (377,574) (335,050)
Securities held for trading (2,263,189) (408,933) - (39,282)
Financing, advances and other loans (4,096,352) (704,947) (69,719) 33,669
Other assets (27,527) 238,853 (2,002) 1,290
Amount due from holding company (100,603) 7,010 - -
Amount due from related company 5,996 - - -
Statutory deposits with Bank Negara Malaysia (168,080) (26,752) - 184

Increase/(decrease) in operating liabilities
Deposits from customers 6,464,157 5,092,857 291,375 (32,714)
financial institutions 3,056,493 (1,065,657) 156,000 215,052
Derivative financial instruments 3,379 - - -
Bills and acceptances payable 4,290 968 - -
Amount due to holding company (338,166) 198,212 - -
Amount due to related companies 4,010 133,987 - -
Other liabilities 245,836 14,748 3,174 (129,673)
Cash flows generated from/(used in) operations 3,256,222 2,493,778 - (274,546)
Taxation and zakat paid (31,366) (25,577) - -
Cash flows generated from/(used in) operating activities 3,224,856 2,468,201 - (274,546)

CIMB Bank Berhad
(13491-P)


Cash flow statements for the financial year ended 31 December 2008 (Continued)
The Group The Bank
Note 2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash flows from/(used in) investing activities

Net proceeds from held-to-maturity securities (1,071,108) 100,217 - -
Net purchase of available-for-sale securities 40,555 (447,790) - -
Profit income from held-to-maturity securities 17,847 6,289 - 932
Profit income from available-for-sale securities 24,433 17,674 - 70
Purchase of property, plant and equipment (1,105) (3,175) - -
Purchase of intangible assets (278) (1,042) - -
Net cash (used in)/generated from investing activities (989,656) (327,827) - 1,002

Cash flows from financing activities
Issuance of share capital - 400,000 - -
Payment to holding company - (389,794) - (296)
Net cash generated from/(used in) financing activities - 10,206 - (296)

Net increase/(decrease) in cash and cash
equivalents 2,235,200 2,150,580 - (273,840)
Cash and cash equivalents at beginning of
financial year 4,013,925 1,863,345 - 273,840
Cash and cash equivalents at end of
financial year 6,249,125 4,013,925 - -

Cash and cash equivalents comprise:
Cash and short-term funds (a) 6,249,125 4,013,925 - -

CIMB Bank Berhad
(13491-P)


(a) Cash and short-term funds
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash and balances with banks and other

financial institutions 222,123 184,405 - -
Money at call and deposit placements maturing
within one month 6,027,002 3,829,520 - -
6,249,125 4,013,925 - -
(b) Deposits and placements with banks and other financial institutions
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Licensed banks 511,989 249,900 377,574 -

Bank Negara Malaysia - 900,000 - -
Other financial institutions 200,000 - - -
711,989 1,149,900 377,574 -
(c) Securities held for trading

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Unquoted
Government Investment Issues 14,649 28,942 - -
Khazanah bonds 9,791 72,589 - -
Bank Negara Malaysia negotiable notes - 218,165 - -
Malaysian Government Treasury Bills - 29,742 - -
Negotiable instruments of deposits 2,243,818 19,581 - -
Bankers’ acceptance and Islamic accepted bills 578,421 205,128 - -
Islamic commercial papers 19,666 24,306 - -

Unquoted securities
In Malaysia
Islamic debt securities 15,711 20,419 - -
2,882,056 618,872 - -
During the financial year, the Bank had reclassified certain held for trading securities to held-to-maturity category. The
reclassification has been accounted for in accordance with the BNM circular on ‘Reclassification of Securities under
Specific Circumstances’ issued during the year, and is effective from 1 July 2008 until 31 December 2009.

CIMB Bank Berhad
(13491-P)


(c) Securities held for trading (Continued)
The fair values of the securities reclassified from held for trading category to held-to-maturity category, as of the respective
dates of reclassification are RM38 million.
Included in the other operating income (Note u & v) is the net gains/(losses) arising from the change in fair value recognised
in the income statement in respect of the reclassified securities:
2008 2007
RM’000 RM’000
Net fair value gain/(loss) 894 (78)
As of date of reclassification, the effective profit rates on the reclassified held for trading securities, based on the new cost
is an average of 5.36% per annum with expected recoverable cash flows of approximately RM40 million in face value
inclusive of coupon receivable on the securities.
(d) Available-for-sale securities

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

Unquoted
Government Investment Issues 121,237 114,185 - -
Islamic Cagamas bonds 48,914 34,420 - -
Khazanah bonds 48,585 65,782 - -

Unquoted securities
In Malaysia
Other Government securities - 50,003 - -
Private debt securities 393,067 389,909 - -
Placement with Islamic Banking and Finance
Institute Malaysia 575 575 - -
612,378 654,874 - -

CIMB Bank Berhad
(13491-P)


(e) Held-to-maturity securities
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Unquoted securities
Islamic commercial papers 34,832 - - -
Private debt securities 1,168,385 98,644 - -
1,203,217 98,644 - -
Amortisation of premium less accretion of discounts (4,997) (3,496) - -
1,198,220 95,148 - -
Accumulated impairment losses
Private debt securities (164) - - -
1,198,056 95,148 - -
Private debt securities amounting to RM954 million are funded by a Restricted Profit Sharing Investment Account (“RPSIA”)
depositor, as part of an arrangement with the Bank.
Included in the held-to-maturity securities are securities transferred from securities held for trading category during the financial
year, with the following carrying value and fair value as at 31 December 2008 (2007: no such reclassification permitted):
2008 2007
RM’000 RM’000
Carrying value 37,430 -

Fair value 37,609 -
(f) Derivative financial instruments, commitments and contingencies

(i) Derivative financial instruments
The following tables summarise the contractual or underlying principal amounts of derivative financial instruments
held at fair value through income statement and hedging purposes. The principal or contractual amounts of
these instruments reflect the volume of transactions outstanding at balance sheet 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 “Derivative financial instruments” Assets and Liabilities respectively.

CIMB Bank Berhad
(13491-P)


(f) Derivative financial instruments, commitments and contingencies (Continued)
2008 2007
Principal Assets Liabilities Principal Assets Liabilities

Foreign exchange
derivative
Currency forward 652,126 106 - 4,593 43 -
Currency swaps 313,695 2,349 (3,480) 107,827 - (38)
965,821 2,455 (3,480) 112,420 43 (38)

Profit rate derivatives
Profit rate swaps 3,471,419 222,386 (437) 1,751,410 97,747 (1,370)

Equity derivatives
Equity options 3,746,677 42,528 (42,535) - - -
Total derivative
assets/(liabilities) 8,183,917 267,369 (46,452) 1,863,830 97,790 (1,408)
2008 2007
Principal Assets Liabilities Principal Assets Liabilities

Foreign exchange
derivative
Currency swaps 293,695 2,349 - - - -
Total derivative assets 293,695 2,349 - - - -

CIMB Bank Berhad
(13491-P)


(ii) Commitments and contingencies
In the normal course of business, the Group and the Bank make various commitments and incur certain contingent
liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions.
The commitments and contingencies constitute the following:
2008 2007
Risk Risk
Credit Weighted Credit Weighted
Principal equivalent* amount Principal equivalent* amount
Credit related
Direct credit substitutes 35,057 35,057 35,057 38,247 38,247 38,247
Certain transaction-related
contingent items 381,536 190,768 113,978 190,777 95,389 95,389
trade-related contingencies 147,568 29,514 3,042 269,577 53,915 53,915
Obligation under underwriting
agreements 50,000 25,000 25,000 50,000 25,000 25,000
Islamic financing sold directly
and indirectly to Cagamas
with recourse 294,946 294,946 294,946 575,918 575,918 575,918
extend credit:
one year 1,716,834 - - 908,605 - -
- maturity exceeding
one year 586,343 293,172 76,963 247,913 123,956 116,708
Forward asset purchase 5,000 - - - - -
and contingencies 1,164 1,164 1,164 1,814 1,814 1,814
Total credit-related
commitments and
contingencies 3,218,448 869,621 550,150 2,282,851 914,239 906,991


CIMB Bank Berhad
(13491-P)


2008 2007
Risk Risk
Treasury related
contracts:
- less than one year 652,126 12,384 3,531 112,420 2,082 450
- five years and above 313,695 10,742 2,883 - - -
Profit rate related contracts:
- one year to less than
five years 3,471,419 124,245 24,849 1,751,410 37,711 7,542
Equity related contracts:
- less than one year 2,176,832 38,957 7,791 - - -
- one year to less than
five years 1,540,947 206,296 41,259 - - -
- five years and above 28,898 1,484 297 - - -
commitments
and contingencies 8,183,917 394,108 80,610 1,863,830 39,793 7,992
11,402,365 1,263,729 630,760 4,146,681 954,032 914,983
2008 2007
Risk Risk
Treasury related
contracts:
- five years and above 293,695 6,792 1,358 - - -
293,695 6,792 1,358 - - -
* The credit equivalent amount is arrived at using the credit conversion factors as per Bank Negara Malaysia guidelines.
Effective 1 October 2008, the following approaches have been adopted for the computation of the credit equivalent
and risk-weighted assets:
- adoption of bilateral netting as provided under the Standardised Approach Framework which involves the
weighting of net claims rather than gross claims with the same counterparties arising out of the full range of
forwards, swaps, options and similar derivative contracts.
- Irrevocable commitments to extend credit (undrawn loans) have been revised to include only those undrawn
loans whereby all conditions precedent have been met.

CIMB Bank Berhad
(13491-P)


(g) Financing, advances and other loans
(i) By type:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Cash line 235,945 125,348 - -

Term financing
- Housing financing 2,031,304 764,085 - -
- Syndicated term financing 559,285 571,723 69,449 -
- Hire purchase receivables 2,030,346 1,485,856 - -
- Other term financing 4,096,445 620,327 - -
Bills receivable - 32 - -
Trust receipts 23,887 5,552 - -
Claim on customers under acceptance credit 156,709 89,803 - -
Staff financing 17 44 - -
Revolving credits 422,299 117,160 - -
Other financing 3,054 - - -
9,559,291 3,779,930 69,449 -

Less: Unearned income (2,824,630) (806,002) - -
6,734,661 2,973,928 69,449 -

Less: Financing sold to Cagamas (294,946) (575,918) - -
Gross financing, advances and other loans 6,439,715 2,398,010 69,449 -

Less: Specific allowance (99,374) (94,904) - -
6,340,341 2,303,106 69,449 -

Less: General allowance (80,615) (48,882) (1,181) -
Total net financing, advances and other loans 6,259,726 2,254,224 68,268 -
Included in financing, advances and other loans of the Group 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 general and specific allowances for bad and doubtful debts
arising thereon. As at 31 December 2008, the gross exposures to RPSIA financing is RM1,893 million (2007: RMNil) and
the general allowance relating to this RPSIA is RM32 million(2007: RMNil).

CIMB Bank Berhad
(13491-P)


(g) Financing, advances and other loans (Continued)
(ii) By contract:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Bai-Bithaman Ajil (deferred payment sale) 3,530,591 1,252,765 - -

Murabahah 488,572 22,706 69,449 -
Al-Ijarah 2,080,452 1,633,900 - -
Others 635,046 64,557 - -
6,734,661 2,973,928 69,449 -
6,439,715 2,398,010 69,449 -
(iii) By type of customer:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Domestic non-bank financial institutions 1,454 1,597 - -

Domestic business enterprises
- small medium enterprises 579,945 253,504 - -
- others 2,896,762 837,031 - -
Government and statutory bodies 8,231 - - -
Individuals 2,929,412 1,639,624 - -
Other domestic entities 19,993 8,814 - -
Foreign entities 298,864 233,358 69,449 -
6,734,661 2,973,928 69,449 -
6,439,715 2,398,010 69,449 -
(iv) By profit rate sensitivity:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Fixed rate
- House financing 343,427 355,183 - -
- Hire-purchase receivables 1,639,046 1,224,507 - -
- Other financing 1,437,004 837,070 - -
Variable rate
- House financing 390,663 - - -
- Others 2,924,521 557,168 69,449 -
6,734,661 2,973,928 69,449 -
6,439,715 2,398,010 69,449 -

CIMB Bank Berhad
(13491-P)


(v) By economic purposes:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Personal use 519,960 35,394 - -

Credit card 2,980 - - -
Purchase of consumer durables 1,626 163 - -
Residential property 779,572 385,012 - -
Non residential property 661,912 174,444 - -
Purchase of fixed assets other than land
and building 167,293 11,241 - -
Construction 33,700 5,622 - -
Purchase of securities 1,417,806 214,276 - -
Purchase of transport vehicles 1,643,861 1,224,506 - -
Working capital 1,257,678 870,718 - -
Other purpose 248,273 52,552 69,449 -
6,734,661 2,973,928 69,449 -
6,439,715 2,398,010 69,449 -
(vi) Non-performing financing by economic purposes:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Personal use 21,854 11,955 - -

Residential property 55,621 60,811 - -
Non residential property 15,770 38,008 - -
Purchase of fixed assets other than land
and building 1,620 - - -
Purchase of securities 18,672 18,667 - -
Purchase of transport vehicles 40,063 67,235 - -
Working capital 46,291 53,822 - -
Other purpose 1,577 1,009 - -
201,468 251,507 - -

CIMB Bank Berhad
(13491-P)


(vii) Movements in non-performing financing, advances and other loans are as follows:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
At 1 January 251,507 255,036 - 255,032

Non-performing during the financial year 167,038 141,081 - 15,443
Reclassified to performing during the
financial year (132,282) (70,209) - -
Recoveries (30,441) (19,307) - -
Amount written off (54,354) (55,094) - -
CIMB Islamic - - - (270,475)
At 31 December 201,468 251,507 - -
Less: Specific allowance (99,374) (94,904) - -
Net non-performing financing, advances
and other loans 102,094 156,603 - -

Ratio of net non-performing financing, advances
and other loans to total financing, advances
and other loans (including financing sold to
Cagamas) less specific allowance 1.54% 5.44% - -
(viii) Movements in allowance for bad and doubtful financing:

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Specific allowance
At 1 January 94,904 90,800 - 90,800
Allowance made during the financial year 99,584 80,712 - 14,191
Amount written back in respect of recoveries (40,608) (19,106) - -
Amount written off (54,506) (57,502) - -
CIMB Islamic - - - (104,991)
At 31 December 99,374 94,904 - -


CIMB Bank Berhad
(13491-P)


(viii) Movements in allowance for bad and doubtful financing: (Continued)
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
General allowance
At 1 January 48,882 41,485 - 33,800
Net allowance made during the financial year 31,827 7,589 1,451 -
Exchange fluctuation (94) (192) (270) -
At 31 December 80,615 48,882 1,181 -
As % of gross financing, advances and other

loans (including financing sold to Cagamas,
but excluding RPSIA financing)
less specific allowance 1.70% 1.70% 1.70% -
(h) Other assets

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Income receivable 23,438 26,582 170 -

Deposits and prepayments 309 430 - -
Sundry debtors 75,497 44,705 1,832 -
99,244 71,717 2,002 -
(i) 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 offset and
shown in the balance sheet:
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Deferred tax assets 22,912 18,235 307 -

Deferred tax liabilities (1,543) (1,384) - -
21,369 16,851 307 -

CIMB Bank Berhad
(13491-P)


(i) Deferred taxation (Continued)

General Revaluation
allowance reserves-
Unutilised for bad and Accelerated available- Other
tax doubtful tax for-sale temporary
losses financing depreciation securities differences Total
The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000


2008
At 1 January 2008 - 10,061 (1,384) 549 7,625 16,851
Credited/(charged) to income
statement (ab) - 7,576 (159) - (2,923) 4,494
Transferred from equity - - - 24 - 24
At 31 December 2008 - 17,637 (1,543) 573 4,702 21,369


2007
At 1 January 2007 2,298 9,231 (194) (1,024) 3,765 14,076
Credited/(charged) to income
statement (ab) (2,298) 830 (1,190) - 3,860 1,202
Transferred from equity - - - 1,573 - 1,573
At 31 December 2007 - 10,061 (1,384) 549 7,625 16,851
General
allowance
for bad and Other
doubtful temporary
financing differences Total
The Bank RM’000 RM’000 RM’000

2008
At 1 January/31 December 2008 307 - 307

2007
At 1 January 2007 9,126 2,967 12,093
Disposal of Islamic banking operations to CIMB Islamic (9,126) (2,967) (12,093)
At 31 December 2007 - - -

CIMB Bank Berhad
(13491-P)


(j) Statutory deposits with Bank Negara Malaysia
The non-profit bearing statutory deposits are maintained with Bank Negara Malaysia in compliance with Section 37(1)(c)
of the Central Bank of Malaysia Act, 1958 (revised 1994), the amounts of which are determined at set percentages of total
eligible liabilities.
(k) Goodwill
Group
2008 2007
RM’000 RM’000
Cost
At 1 January 136,000 -
Arising from acquisition of Islamic Banking operations of CIMB Bank - 136,000
At 31 December 136,000 136,000

Goodwill is wholly allocated to the retail banking cash-generating unit(‘CGU’). The CGU does not carry any intangible
assets with indefinite useful lives.
The recoverable amount of CGU which are not classified as held for sale is determined based on value-in-use
calculations. These calculations use pre-tax cash flow projections based on the 2009 financial budgets approved by
Board of Directors, 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 growth rate of 5.00%. The cash flow projections are derived based
on a number of key factors including the past performance and management’s expectation of market developments.
The discount rate used in determining the recoverable amount of the CGUs is 9.80%. The discount rate is pre-tax and
reflects the specific risks relating to the CGUs.
(l) Intangible assets

Group
2008 2007
RM’000 RM’000
Computer software
Cost
At 1 January 11,626 4,597
Additions 278 1,042
Reclassified (to)/from property, plant and equipment (842) 5,987
Transfer of assets to holding company (19) -
At 31 December 11,043 11,626

Amortisation
At 1 January 2,070 262
Charge for the financial year 3,829 1,808
Reclassified (to)/from property, plant and equipment (818) -
At 31 December 5,081 2,070
Net book value at 31 December 5,962 9,556

CIMB Bank Berhad
(13491-P)


(m) Property, plant and equipment
Renovations,
office
equipment, Computer
furniture equipment Motor
and fittings and software vehicles Total
The Group RM’000 RM’000 RM’000 RM’000

2008
Cost
At 1 January 4,804 21 302 5,127
Additions 1,105 - - 1,105
Reclassified from intangible assets 842 - - 842
At 31 December 6,751 21 302 7,074
Depreciation
At 1 January 1,328 5 103 1,436
Charge for the financial year 946 4 15 965
Reclassified from intangible assets 818 - - 818
At 31 December 3,092 9 118 3,219
Net book value at 31 December 2008 3,659 12 184 3,855
2007
Cost
At 1 January 7,766 14 302 8,082
Additions 3,168 7 - 3,175
Write-off (143) - - (143)
Reclassified to intangible assets (5,987) - - (5,987)
At 31 December 4,804 21 302 5,127

Depreciation
At 1 January 412 2 65 479
Charge for the financial year 916 3 38 957
At 31 December 1,328 5 103 1,436
Net book value at 31 December 2007 3,476 16 199 3,691
The above property, plant and equipment include renovations and computer equipment and software under construction
at cost of RM659,000 (2007: RM141,000).

CIMB Bank Berhad
(13491-P)


(n) Deposits from customers
(i) By type of deposits
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Non-Mudharabah
Demand deposits 1,897,477 312,399 17 -
Saving deposits 301,675 133,613 - -
Fixed return investment account 1,840,535 1,159,860 291,358 -
Negotiable instruments of deposit 242,975 201,826 - -
Commodity Murabahah-i 379,480 - - -
Others 303,680 620 - -
4,965,822 1,808,318 291,375 -
Mudharabah
Demand deposits 398,731 126,719 - -
Saving deposits 92,856 32,007 - -
General investment deposits (inclusive of Special
General investment deposits of
RM5,254,880,000 (2007: RM3,869,386,000)) 6,780,540 4,682,656 - -
Specific investment deposit 1,746,613 870,705 - -
9,018,740 5,712,087 - -
13,984,562 7,520,405 291,375 -
(ii) By type of customer

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Government and statutory bodies 3,279,854 1,657,849 - -

Business enterprises 7,940,207 3,956,886 - -
Individuals 2,125,845 1,129,078 784 -
Others 638,656 776,592 290,591 -
13,984,562 7,520,405 291,375 -

CIMB Bank Berhad
(13491-P)


(o) Deposits and placements of banks and other financial institutions
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Mudharabah
Licensed Islamic banks 64,809 100,000 - -
Licensed banks 3,074,907 500,343 154,072 -
Licensed investment banks 200,300 - - -
Other financial institutions 316,820 - 1,928 -
3,656,836 600,343 156,000 -
(p) Other liabilities

The Group The Bank
2008 2007 2008 2007
Note RM’000 RM’000 RM’000 RM’000
Income payable 38,412 24,545 3,600 -

Profit equalisation reserve (i) - 2,200 - -
Amount due to Head office 17,073 - - -
Accruals and other payables 249,008 34,110 - -
304,493 60,855 3,600 -
(i) Profit equalisation reserve

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
At 1 January 2,200 1,965 - 242

Provided during the financial year - 28,879 - 1,075
Written-back during the financial year (2,200) (28,644) - -
- 2,200 - -
The shareholders’ portion of the profit equalisation reserve of the Group and the Bank is RMNil (2007: RM217,360) and
RMNil (2007: RMNil) respectively.
(ii) Defined contribution plan

The Bank contributes to the Employee Provident Fund (“EPF”), the national defined contribution plan. Once the
contribution has been paid, the Bank has no further payment obligations.

CIMB Bank Berhad
(13491-P)


(q) Provision for taxation and zakat
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Taxation 3,076 5,779 - -

Zakat - 179 - -
3,076 5,958 - -
(r) Ordinary share capital

The Group
2008 2007
RM’000 RM’000
Authorised

At 1 January 550,000 150,000
Issued during the financial year - 400,000
At 31 December 550,000 550,000
(s) Perpetual preference shares

The Group
2008 2007
RM’000 RM’000
Authorised

(t) 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) Revaluation reserve of available-for-sale securities comprises gains and losses arising from changes in the fair value
of available-for-sale securities. The depositors’ portion of unrealised gains on available-for-sale securities of the Group
at the end of the financial year is RM1,618,000 (2007: RM1,418,000).

CIMB Bank Berhad
(13491-P)


(u) Income derived from investment of depositors’ funds and others
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000

(i) General investment deposits 412,327 224,109 18,922 2,084
(ii) Specific investment deposits 83,948 24,947 - -
(iii) Other deposits 134,627 73,768 - 14,758
630,902 322,824 18,922 16,842
(i) Income derived from investment of general investment deposits

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Financing, advances and other loans 175,551 113,919 4,014 1,828

Securities held for trading 7,242 1,035 - 16
Available-for-sale securities 18,219 12,829 - 70
Held-to-maturity securities 4,640 3,926 - -
Money at call and deposits with financial
institutions 166,462 73,154 6,237 109
Others 9,168 - 6,322 -
381,282 204,863 16,573 2,023

Accretion of discount less amortisation of
premium 23,381 11,118 - 57
404,663 215,981 16,573 2,080
Other operating income

- Net (loss)/gain from sale of securities held
for trading (37) 309 - (13)
- Net gain from sale of available-for sale
securities 78 105 - -
- Net unrealised loss on revaluation of security
held for trading (164) (277) - -
- Net gain from derivative instruments 2,349 - 2,349 -
- Net gain from foreign exchange transactions 1,761 126 - -
3,987 263 2,349 (13)

Fee and commission income 3,677 6,792 - -
Sundry income - 1,073 - 17
412,327 224,109 18,922 2,084

CIMB Bank Berhad
(13491-P)


(u) Income derived from investment of depositors’ funds and others (continued)
(ii) Income derived from specific investment deposits
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Financing, advances and other loans 21,309 1,696 - -

Money at call and deposit with financial
institutions 51,004 23,251 - -
Held-to-maturity securities 11,635 - - -
83,948 24,947 - -
(iii) Income derived from investment of other deposits

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Financing, advances and other loans 79,611 43,966 - 12,958

Securities held for trading 1,883 591 - 111
Available-for-sale securities 4,543 3,126 - -
Held-to-maturity securities 1,146 1,397 - 495
Money at call and deposits with financial
institutions 39,251 19,387 - 771
126,434 68,467 - 14,335

Accretion of discount less amortisation of
premium 6,476 3,125 - 400
132,910 71,592 - 14,735

- Net (loss)/gain from sale of securities
held for trading (8) 15 - (91)
- Net gain from sale of available-for-sale
securities 20 22 - -
- Net unrealised gain/(loss) on revaluation of
securities held for trading 227 (51) - -
- Net gain from foreign exchange transactions 488 54 - -
727 40 - (91)
Fee and commission income 990 1,753 - 49
Sundry income - 383 - 65
134,627 73,768 - 14,758

CIMB Bank Berhad
(13491-P)


(v) Income derived from investment of shareholders’ funds
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Financing, advances and other loans 17,083 26,525 - 11,434

Securities held for trading 658 178 - 98
Available-for-sale securities 1,671 1,719 - -
Held-to-maturity securities 426 966 - 437
Money at call and deposits with financial institutions 14,633 10,727 - 681
Others 150 - - -
34,621 40,115 - 12,650

Accretion of discount less amortisation of premium 2,107 1,850 - 353
36,728 41,965 - 13,003

- Net (loss)/gain from sale of securities held for trading (55) 42 - (80)
- Net gain from sale of available-for sale securities 7 16 - -
- Net gain/(loss) from derivative financial instruments
- Realised loss (69,389) (50,696) - -
- Unrealised gain 125,565 96,382 - -
- Unrealised gain/(loss) on revaluation of
securities held for trading 32 (115) - -
- Net gain from foreign exchange transactions 154 15 - -
56,314 45,644 - (80)
Fee and commission income 28,428 63,825 - 43

Sundry income 122 217 - 58
121,592 151,651 - 13,024

CIMB Bank Berhad
(13491-P)


(w) Allowances for losses on financing, advances and other loans
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Allowance for bad and doubtful debts and financing:

(i) Specific allowance
- made during the financial year 99,584 80,712 - 14,191
- written back the financial year (40,608) (19,106) - -

(ii) General allowance
- made during the financial year 31,827 7,589 1,451 -

Bad debts on financing:
- recovered (7,369) (3,362) - -
- written off 47 - - -
83,481 65,833 1,451 14,191
(x) Income attributable to depositors

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Deposits from customers

- Mudharabah 242,733 187,950 - 13,554
- Non-Mudharabah 94,386 13,548 - -
financial institutions
- Mudharabah 46,040 16,182 - -
- Non-Mudharabah 17,933 3,846 6,335 -
401,092 221,526 6,335 13,554
(y) Personnel expenses

The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Wages and salaries 7,366 6,221 - 264

Allowances and bonuses 6,263 4,135 288 -
Personnel expenses charged by
CIMB Bank Berhad 28,822 15,592 - -
Other staff related costs 5,117 1,561 49 -
47,568 27,509 337 264
Included in the personnel costs are fees paid to the Shariah Committee’s members amounting to RM361,000 (2007: RM361,000).

CIMB Bank Berhad
(13491-P)


(z) Other overheads and expenditures
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Establishment
Rental 1,768 1,196 - -
Depreciation of property, plant and equipment 965 957 - -
Repairs and maintenance 271 2,366 - -
Overheads charged by CIMB Bank Berhad 17,675 6,494 - -
EDP expenses 3,230 8,196 - -
Insurance 268 266 - -
Others 2,771 1,691 - -

Promotion
Advertisement and publicity 13,573 2,282 - 10
Handling fees 8,333 1,427 - -
Promotion costs charged by CIMB Bank Berhad 2,751 1,688 - 279
Others 4,509 666 - -

General expenses
Auditor’s remuneration - statutory audit 104 90 - -
Amortisation of intangible assets 3,829 1,808 - -
General expenses charged by CIMB Bank Berhad 848 8,768 - -
Legal and professional fees 788 486 - 13
Communication 1,005 90 - -
Incidental expenses on banking operations 5,565 2,297 - -
Brokerage fees and commissions 3,648 894 - -
Others 2,760 3,017 143 2,140
74,661 44,679 143 2,442

CIMB Bank Berhad
(13491-P)


(aa) Significant related party transactions and balances
The related parties of, and their relationship with the Group and Bank, are disclosed in Note 42.
Other Key
company companies personnel
2008 RM’000 RM’000 RM’000

Income
Profit income on deposits and placements with banks and other
financial institution 2,498 3,304 -
Expenditure
Profit expense on deposits and placements of banks and other
financial institution 45,952 9,127 -
Profit expense on deposits and placements of customers 43,363 11,863 36
Security services - 177 -

Amounts due from
Current accounts, deposits and placements with banks and other
financial institutions 207,870 2,500 -
Others 552 - -
Amounts due to
Deposits from customers - 27,533 1,826
Deposits and placements of banks and other financial institutions 3,381,584 265,192 -
Profit expense on deposits from customers - 10 7
financial institution 4,040 929 -
Outsourced back-office processing 8,091 - -

CIMB Bank Berhad
(13491-P)


(aa) Significant related party transactions and balances (Continued)
Other Key
company companies personnel
2007 RM’000 RM’000 RM’000

Income
Profit income on deposits and placements with banks and other
financial institution - 674 -
Expenditure
financial institution 9,888 214 -
Profit expense on deposits and placements of customers - - 28
Outsourced back-office processing 28,828 2,922 -
Security services - 139 -

Amounts due from
Current accounts, deposits and placements with banks and other
financial institutions 146,227 4,900 -
Others 16,246 5,996 -
Amounts due to
Deposits from customers 374,343 - 2,045
Deposits and placements of banks and other financial institutions - 126,000 -
Profit expense on deposits from customers 805 - -
financial institutions - 44 -
Outsourced back-office processing 9,360 - -
Transactions with other related parties are aggregated because these transactions are similar in nature and no single
transaction with these parties is significant enough to warrant separate disclosure.
Key management compensation and credit transaction and exposures with connected parties are disclosed in Note 42.
(ab) Taxation
The Group The Bank
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Taxation based on the profit for the financial year:

- Malaysian income tax 28,250 29,364 - 1,885
Deferred taxation (Note i) (4,494) (1,202) (307) -
23,756 28,162 (307) 1,885

254
(ac) Profit rate risk
(13491-P)
The tables below summarise the Group’s and the Bank’s exposure to rate of return risk. Included in the tables are the Group’s and the Bank’s
CIMB Bank Berhad
assets and liabilities at their full carrying amounts, categorised by the earlier of contractual repricing or maturity dates. As market rates and yield
curves change over time, the Group and the Bank may be exposed to loss in earnings due to the effects of market rates on the structure of the
balance sheets. Sensitivity to market rates arises from mismatches in the repricing dates, cash flows and other characteristics of the assets and
Annual Report 2008

their corresponding liabilities funding.
The Group
Non-trading book
Up to 1 >1 – 3 >3 – 6 >6 – 12 >1 – 5 Over 5 Non-profit Trading
2008 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Cash and short-term funds 6,027,002 - - - - - 222,123 - 6,249,125
financial institutions 116,700 300,289 245,000 50,000 - - - - 711,989
Available-for-sale securities 5,000 - 25,055 54,380 306,832 220,536 575 - 612,378
Held-to-maturity securities 892,884 69,664 8,708 17,416 106,390 102,994 - - 1,198,056
Derivative financial
instruments - - - - - - - 267,369 267,369
Financing, advances and
other loans
- Performing 1,854,418 910,753 98,192 63,342 789,915 2,518,579 3,048 - 6,238,247
^
- Non-performing - - - - - - 21,479 - 21,479
Other assets - - - - - - 99,244 - 99,244


Statutory deposits with Bank
Negara Malaysia - - - - - - 269,224 - 269,224
Amount due from holding
company - - - - - - 100,622 - 100,622
Goodwill - - - - - - 136,000 - 136,000
Property, plant and
equipment - - - - - - 3,855 - 3,855
Total assets 8,896,004 1,280,706 376,955 185,138 1,203,137 2,842,109 883,501 3,149,425 18,816,975
(ac) Profit rate risk (Continued)
The Group
Non-trading book
Liabilities
Deposits from customers 7,615,406 3,444,257 704,423 218,932 1,966,670 15,866 19,008 - 13,984,562
banks and other financial
institutions 2,639,886 1,016,950 - - - - - - 3,656,836
instruments - - - - - - - 46,452 46,452
Bills and acceptances
payable 1,808 1,913 1,537 - - - - - 5,258
Other liabilities - - - - - - 304,493 - 304,493
Amount due to related
company - - - - - - 4,010 - 4,010
Provision for taxation and
zakat - - - - - - 3,076 - 3,076
Total liabilities 10,257,100 4,463,120 705,960 218,932 1,966,670 15,866 330,587 46,452 18,004,687
Total profit rate
sensitivity gap (1,361,096) (3,182,414) (329,005) (33,794) (763,533) 2,826,243 3,102,973
^ Includes specific allowances and general allowance of RM179,989,000.
Annual Report 2008

255
(13491-P)
CIMB Bank Berhad
256
(13491-P)
The Group
CIMB Bank Berhad
Non-trading book
Annual Report 2008

Assets
Cash and short-term funds 3,829,520 - - - - - 184,405 - 4,013,925
financial institutions - 1,044,900 75,000 30,000 - - - - 1,149,900
Securities held for trading - - - - - - - 618,872 618,872
Available-for-sale securities - 50,002 36,791 39,677 306,900 220,929 575 - 654,874
Held-to-maturity securities - - - - - 95,148 - - 95,148
instruments - - - - - - - 97,790 97,790
other loans
- Performing 436,808 338,762 3,051 56,670 196,853 1,114,359 - - 2,146,503
- Non-performing - - - - - - 107,721^ - 107,721
Other assets - - - - - - 71,717 - 71,717
Statutory deposits with Bank
Negara Malaysia - - - - - - 101,144 - 101,144
Amount due to related
companies - - - - - - 5,996 - 5,996

Goodwill - - - - - - 136,000 - 136,000

Property, plant and
equipment - - - - - - 3,691 - 3,691
Total assets 4,266,328 1,433,664 114,842 126,347 503,753 1,430,436 637,656 716,662 9,229,688
The Group
Non-trading book
Liabilities
Deposits from customers 3,753,505 1,996,072 581,320 100,688 1,086,091 422 2,307 - 7,520,405
banks and other
financial institutions 600,343 - - - - - - - 600,343
instruments - - - - - - - 1,408 1,408
Bills and acceptable payable - - - - - - 968 - 968
Amount due to holding
company - - - - - - 335,856 - 335,856
Provision for taxation and
zakat - - - - - - 5,958 - 5,958
Total liabilities 4,353,848 1,996,072 581,320 100,688 1,086,091 422 405,944 1,408 8,525,793
Total profit rate
sensitivity gap (87,520) (562,408) (466,478) 25,659 (582,338) 1,430,014 715,254
^ Includes specific allowances and general allowance of RM143,786,000.
Annual Report 2008

257
(13491-P)
CIMB Bank Berhad
258
(13491-P)
The Bank
CIMB Bank Berhad
Non-trading book
Annual Report 2008

Assets
financial institutions 99,377 275,911 - - 2,286 - - - 377,574
Derivative financial instruments - - - - - - - 2,349 2,349
other loans
- Performing - 68,268^ - - - - - - 68,268
Other assets - - - - - - 2,002 - 2,002
Deferred tax assets - - - - - - 307 - 307
Total assets 99,377 344,179 - - 2,286 - 2,309 2,349 450,500

Liabilities
Deposits from customers 49,161 242,214 - - - - - - 291,375
banks and other financial
institutions 17,118 138,882 - - - - - - 156,000
Total liabilities 66,279 381,096 - - - - 3,600 - 450,975
Total profit rate

sensitivity gap 33,098 (36,917) - - 2,286 - 2,349
^ Includes general allowance of RM1,181,000.

CIMB Bank Berhad
(13491-P)


The tables below summarises the effective average profit rates for each class of financial asset and financial liability:
The Group The Group The Bank
2008 2007 2008
% % %
MYR USD SGD MYR USD USD SGD

Financial assets
Cash and short-term funds 3.03 2.55 - 3.55 - - -
financial institutions 2.63 2.80 1.81 3.54 - 2.78 1.81
Securities held for trading 3.50 - - 3.62 - - -
Available-for-sale securities 4.48 - - 4.25 5.39 - -
Securities held-to-maturity 5.23 - - 4.88 - - -
other financing 5.86 4.34 - 5.76 5.96 4.07 -

Deposits from customers 2.52 1.29 0.93 3.30 4.95 - 0.93
banks and other
financial institutions 2.34 2.17 - 3.21 - 2.67 -

260
(ad) Credit risk
(13491-P)
The Group
CIMB Bank Berhad
2008
Short term Treasury
Annual Report 2008

funds and Financing, Credit related related
placements Securities Available- Held-to- Derivative advances Total commitments commitments
with financial held for-sale maturity financial and other Other on-balance and and
institutions for trading securities securities instruments loans assets sheet contingencies contingencies
Agriculture - - 19,909 174,160 - 192,833 100 387,002 88,319 -

Manufacturing - - - - - 193,053 - 193,053 32,320 -
Electricity, gas and water - - 60,424 4,816 - - 1,070 66,310 8,659 -
Construction - - 49,378 - - 107,766 614 157,758 88,060 -
Real estate - - 20,715 892,884 - 259,449 697 1,173,745 32,712 -
Purchase of landed
property
- Residential - - - - - 751,769 - 751,769 56 -
- Non residential - - - - - 626,952 - 626,952 13,500 -
General commerce - - 9,415 - - 278,105 58 287,578 83,513 -
Purchase of securities - - - - - 1,417,806 - 1,417,806 - -
communications - 15,710 130,535 106,070 - 8,252 3,768 264,335 99,328 -
business services 2,057,785 2,822,240 115,364 20,126 267,369 519,601 89,154 5,891,639 296,152 394,108
Government and
government agencies 4,815,807 44,106 200,974 - - - 1,721 5,062,608 - -
vehicles - - - - - 1,328,110 - 1,328,110 - -

Consumption credit - - - - - 517,361 - 517,361 - -
Others 87,522 - 5,089 - - 139,284 2,062 233,957 127,002 -

6,961,114 2,882,056 611,803* 1,198,056 267,369 6,340,341^ 99,244 18,359,983 869,621 394,108
* Exclude equity instruments amounting to RM575,000

Equity instruments are not subject to credit risk due to their nature which are short-term, lower credit risk, easily disposable and has no maturity period
(ad) Credit risk
The Group
2007
Short term Treasury
placements Securities Available- Held-to- Derivative advances Total commitments commitments
with financial held for-sale maturity financial and other Other on-balance and and
institutions for trading securities securities instruments loans assets sheet contingencies contingencies
Agriculture - - 10,076 - - 125,313 13 135,402 12,390 -

Manufacturing - - - - - 61,364 - 61,364 27,380 113
Electricity, gas and water - 5,163 73,797 - - - 1,292 80,252 7,794 -
Construction - 15,206 62,365 - - 32,139 920 110,630 37,055 -
Real estate - - 35,022 - - 64,327 674 100,023 36,548 -
Purchase of landed
property
- Residential - - - - - 359,485 - 359,485 15,874 -
- Non residential - - - - - 174,444 - 174,444 13,500 -
General commerce - - 10,026 - - 78,107 57 88,190 17,537 -
Purchase of securities - - - - - 214,276 - 214,276 - -
communications - 24,356 146,420 95,148 - 137,608 3,992 407,524 115,132 -
business services 614,305 224,648 86,623 - 97,790 264,006 63,197 1,350,569 605,650 39,680
Government and
government agencies 4,549,520 349,499 229,970 - - - 1,572 5,130,561 - -
vehicles - - - - - 617,012 - 617,012 - -
Consumption credit - - - - - 35,557 - 35,557 1,719 -
Others - - - - - 139,468 - 139,468 23,660 -
5,163,825 618,872 654,299* 95,148 97,790 2,303,106^ 71,717 9,004,757 914,239 39,793
* Exclude equity instruments amounting to RM575,000

Equity instruments are not subject to credit risk due to their nature which are short-term, lower credit risk, easily disposable and has no maturity period
Annual Report 2008

261
(13491-P)
CIMB Bank Berhad
CIMB Bank Berhad
(13491-P)


(ad) Credit risk (Continued)
The Bank
2008
Short term Treasury
placements Derivative advances Total commitments commitments
with financial financial and other Other on-balance and and
institutions instruments loans assets sheet contingencies contingencies
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

business services 290,053 2,349 - - 292,402 - -
Others 87,521 - 69,449 2,002 158,972 - 6,792
377,574 2,349 69,449^ 2,002 451,374 - 6,792
60 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 7 April 2009.

Cimb Financial Statement

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Financial Statements

068 Directors’ Report 081 Statement of Changes in Equity

075 Statement by Directors 085 Cash Flow Statements

075 Statutory Declaration 088 Summary of Significant

080 Income Statements

The Group The Bank

Net profit after taxation and zakat

In respect of the financial year ended 31 December 2007:

In respect of the financial year ended 31 December 2008:

Reserves, provisions and allowances

068 Annual Report 2008

Bad and doubtful debts, and financing

Contingent and other liabilities

Items of an unusual nature

Annual Report 2008 069

Directors’ interests in shares and share options

No. of ordinary shares of RM1 each

Note: Includes shareholding of spouse, details of which are as follows:

No. of ordinary shares of RM1 each

*Datin Seri P’ng Gek Ling 70,000 - - (70,000) -

070 Annual Report 2008

No. of ordinary shares of RM1 each

Ultimate holding company

Tan Sri G.K. Rama Iyer** 25,812 - - 25,812

Centurion Investments Sdn Bhd

Note: Includes shareholding of spouse/child, details of which are as follows:

No. of ordinary shares of RM1 each

**Puan Sri Vijayalakshmi a/p Krishnaswamy 18,812 - - - 18,812

Annual Report 2008 071

2008 Business Plan And Strategy

Outlook for 2009

072 Annual Report 2008

Ratings by External Rating Agencies

Rating Agency Rating Classification Definition

Composition of the Shariah Committee:

1. Sheikh Professor Dr. Mohammad Hashim Kamali (Chairman)

Annual Report 2008 073

Significant events during the financial year

Subsequent events after the financial year

Ultimate holding company

Signed on behalf of the Board of Directors in accordance with their resolution.

Tan Sri Dato’ Seri Haidar bin Mohamed Nor

Tunku Dato’ Ahmad Burhanuddin

074 Annual Report 2008

Signed on behalf of the Board of Directors in accordance with their resolution.

Tan Sri Dato’ Seri Haidar bin Mohamed Nor

Tunku Dato’ Ahmad Burhanuddin

Commissioner for Oaths

Annual Report 2008 075

Independent Auditors’ Report

Report on the Financial Statements

Directors’ Responsibility for the Financial Statements

076 Annual Report 2008

Independent Auditors’ Report

Report on Other Legal and Regulatory Requirements

PricewaterhouseCoopers Sridharan Nair

Annual Report 2008 077

The Group The Bank

168,068,542 154,249,470 147,027,189 139,842,640

Total assets 168,150,994 155,011,564 147,069,901 139,958,526

078 Annual Report 2008

The Group The Bank

Annual Report 2008 079