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PHNOM PENH BRANCHAnnual Report 2010
annual report2010OUR VISION OUR MISSION our5year aspirations CORE VALUESTeamwork Integrity Growth Excellence &Efficiency RelationshipBuilding Celebrating 50 Years, Close To You1960-2010
annual report2010corporateinformationBOARD OF DIRECTORS (President and CEO) COMPANY SECRETARY REGISTERED OFFICE REGISTRAR STOCK EXCHANGE LISTING EXTERNAL AUDITORS PHNOM PENH BRANCHREGISTRATION NO. REGISTERED OFFICE HEAD OFFICE MANAGEMENT TEAM IN CAMBODIA AUDITORS
annual report2010r)aykarN_segçbhirBaØvtßúdMNac;qñaM éfTI 31 ExFñÚ
annual report2010financialhighlights 2010 1,689 3,619 1,653 66,977 99,871 57,718 18,565 — 8.37% — 1.59% 1.88% 1.69% 1.63% 8.86% 13.85% 8.18% 66.83% 37.61% 358.73% 81.56% 95.88% 95.83%
annual report2010GarmÖkfaGnuRbFan ¼ RbFansarCIvkmµxñatFMRbeTskm9° x5° b:ueNÑaH! EdlkarekIneLIgenH cMbgbN"almkBIvis#yksikmµ eTscrN_ nigkarnaMecjénsMelokbMBak;. karnaMecjénsMelokbMBak; mandMeNIrkarl¥KYreGaykt;sMKal; EdlmanGRtaekIneLIgcMnYn 26°. enHnwgkan;EteFIVeGayesdækic©km05landuløarGaemrik. RTBüGkmµsrubrbs;eyIg)anekIneLIgBI142>35 landuløarGaemrikeTA 199>24 landuløarGaemrik EdlkñúgenaHmanR)ak;beBaØI BIGtifiCnsrubcMnYn 194>22 landuløarGaemrik EdlmanGRtaekIneLIgcMnYn 42>4° ebIeRbobeFobeTAnwgqñaMknøgeTA. FnaKaremyEb‘gkm
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annual report2010messagefromdeputypresident/head,globalwholesalebanking
message from deputy president/head, global wholesale banking (cont’d.)annual report2010
annual report2010groupcorporatestructure Chief Audit ExecutiveGeneral Counsel & Company SecretaryHead, Compliance
annual report2010organisationchartofmaybankphnompenh Standing L-R: Seated:
annual report2010statementoncorporategovernanceThe Group acknowledges theimportance of corporategovernance in enhancingstakeholder value, increasinginvestor confidence, establishingcustomer trust and building acompetitive organisation to pursuethe Group’s corporate vision to bea regional financial services leaderby 2015. The Board’s fundamentalapproach to good corporategovernance is to ensure that theright executive leadership, strategyand internal controls are well inplace. Additionally, the Board iscommitted to achieving the higheststandards of business integrity,ethics and professionalism acrossall of the Group’s activities.
statement on corporate governance (cont’d.)annual report2010AuditCommittee Nomination &RemunerationCommitteeDelegationShareholdersBoardPCEOAccountabilityCreditReviewCommitteeRiskManagementCommittee THE BOARD OF DIRECTORS
annual report2010statement on corporate governance (cont’d.)
statement on corporate governance (cont’d.)annual report2010
annual report2010statement on corporate governance (cont’d.)
statement on corporate governance (cont’d.)annual report2010
annual report2010statement on corporate governance (cont’d.)
statement on corporate governance (cont’d.)annual report2010 .
annual report2010statement on corporate governance (cont’d.) IdentificationofcandidatesEvaluation ofsuitability ofcandidatesMeeting upwithcandidatesFinaldeliberation byNRCRecommendationto Board
statement on corporate governance (cont’d.)annual report2010 Chairman
annual report2010statement on corporate governance (cont’d.) The President & CEO
statement on corporate governance (cont’d.)annual report2010 19 19 19 19 51 19 19 51 39 761 19 16 88 17 16 19 17 89 19 76 8 19 19 3 19 18 95 51 36 71 15 93 19 19 19 19 11 11 19 19 51 36 71 17 19 18 95 9 3 67 83
annual report2010statement on corporate governance (cont’d.) 9 7 78 9 9 9 9 9 7 79 9 8 89 1 3 Note: The Bank’s ESOS which was also applicableto certain eligible NEDs had lapsed in August 2009,following a decision made in May 2006 todiscontinue it for fiscal reasons.
statement on corporate governance (cont’d.)annual report2010 79,397 4,062,334 79,397 4,062,334 Notes:Directors’ fees are subject to shareholders’ approval at <strong>Maybank</strong>’sAnnual General Meeting on 29 September 2010.Executive Director’s Other Emoluments include allowance, EPF,SOCSO and EPF on bonus.This list excludes NEDs who have left the Board during the financialyear.
annual report2010statement on corporate governance (cont’d.)
statement on corporate governance (cont’d.)annual report2010
annual report2010statement on corporate governance (cont’d.) BOARD PROFESSIONALISM
statement on corporate governance (cont’d.)annual report2010 BOARD COMMITTEES
annual report2010statement on corporate governance (cont’d.) (Chairman) (Chairman)
statement on corporate governance (cont’d.)annual report2010 (Chairman)
annual report2010statement on corporate governance (cont’d.) (Chairman) EXECUTIVE LEVEL MANAGEMENT COMMITTEES (“ELC”) INVESTOR RELATIONS AND SHAREHOLDERSCOMMUNICATION
statement on corporate governance (cont’d.)annual report2010 1 3
annual report2010statement on corporate governance (cont’d.) GENERAL MEETINGS OWNERSHIP STRUCTURE
statement on corporate governance (cont’d.)annual report2010 ACCOUNTABILITY AND AUDIT
annual report2010statement on corporate governance (cont’d.)
statement on corporate governance (cont’d.)annual report2010ADDITIONAL COMPLIANCE INFORMATION AS AT30 JUNE 2010 Chairman of the Board
annual report2010statementoninternalcontrol ResponsibilityIntroductionParagraph 15.26(b) of the BursaMalaysia Securities Bhd ListingRequirements requires the Board toinclude in its Company Annual Reporta statement about the state of itsinternal control. The revised MalaysianCode on Corporate Governance (2007)requires all listed companies tomaintain a sound system of internalcontrol to safeguard shareholders’investment and the company’s assets.
statement on internal control (cont’d.)annual report2010Control Structure
annual report2010statement on internal control (cont’d.)
statement on internal control (cont’d.)annual report2010Review of the Statement by External Auditors
annual report2010auditcommitteereport A. COMPOSITION AND TERMS OF REFERENCE 1967.
audit committee report (cont’d.)annual report2010 B. DUTIES & RESPONSIBILITIES
annual report2010audit committee report (cont’d.) C ACTIVITIES OF THE AUDIT COMMITTEE DURINGTHE YEAR 1 3 5 6
audit committee report (cont’d.)annual report2010
annual report2010audit committee report (cont’d.) E. INTERNAL AUDIT FUNCTION
audit committee report (cont’d.)annual report2010
annual report2010riskmanagementOverview Risk Governance Structure
isk management (cont’d.)annual report2010 Risk Appetite Risk Strategy Economic and Industry Research New Supervisory Requirements Capital Management Holistic Enterprise Risk Management Approach
annual report2010risk management (cont’d.)<strong>Maybank</strong> Group’s Seven Broad Principles of RiskManagement Seven Broad Principles 1. 3. 5. 6. 7. Credit Risk
isk management (cont’d.)annual report2010
annual report2010risk management (cont’d.) Limits Market Risk
isk management (cont’d.)annual report2010 Value at Risk Stress Testing Repricing Gap Analysis Dynamic Simulation
annual report2010risk management (cont’d.)Economic Value at Risk
isk management (cont’d.)annual report2010 Operational Risk ContinuousImprovement Operational Risk Management Framework Oprational Risk Management Process Risk Management Infrastructure Validation/Reassessment
annual report2010risk management (cont’d.)
isk management (cont’d.)annual report2010
annual report2010codeofethicsandconduct 1.3. 1.3.
annual report2010ratingbyexternalratingagencies
annual report2010FinancialStatements61 65 66 68 69
annual report2010reportofthemanagement 20102009 11,889,938
annual report2010report of the management (continued)
eport of the management (continued)annual report2010
annual report2010report of the management (continued)
annual report2010independentauditors’report to Board of Directors of Malayan Banking Berhad
annual report2010balancesheet As at 31 December 20102010 2009 3 48,810,186 122,929,262 498,232,299 5 35,350,838 6 7 8 2,830,300 9 21,616 13 — — 194,221,143 2,468,669 10,005,515 1,650,995 6,691,483 13.1 899,092 3,644,020 667,837 199,239,899 30,000,000 121,590,000 4,490,000 34,490,000
annual report2010incomestatement For the year ended 31 December 20102010 2009 15 16 6,104,629 17 1,653,819 1,858,328 7,856,971 18 6 4,313,151 — — — — 13 11,889,938
annual report2010statementofchangesinequity For the year ended 31 December 2010 13,400,000 32,182,132 — 16,600,000 — 30,000,000 4,490,000 34,490,000 121,590,000 —
annual report2010statementofcashflows For the year ended 31 December 20102010 2009 Adjustments for: 229,632,945 531,350 2,153,562 — — 13.1 45,436,101 8 — — 9 181,199,977 — —
annual report2010notestothefinancialstatements as at and for the year ended31 December 2010 2.1.1 Statement of compliance 2.1.2 Basis of measurement 2.1.3 Fiscal year 2.1.4 Functional and presentation currency
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2.1.5 Translation of US$ into KHR 2.2.1 Allowance for loan losses 2.3.1 Change in accounting policies 2.3.2 Segment information 2.3.3 Cash and cash equivalents 2.3.4 Loans and advances
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2.3.5 Allowance for loan losses General allowance 1% 1%Specific allowance 3% 3% 2.3.6 Other credit-related commitments 2.3.7 Other assets
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2.3.8 Property and equipment 2.3.9 Software costs 2.3.10 Deposits from customers 2.3.11 Other liabilities
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2.3.12 Provisions for liabilities 2.3.13 Income tax(i) Current income tax (ii)Deferred income tax 2.3.14 Offsetting financial instruments
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2.3.15 Recognition of income and expense(i) Interest income (ii)Fee and commission income (iii) Interest expense (iv) Fee and commission expense 2.3.16 Operating leases 2.3.17 Related parties
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2.3.18 Fiduciary assets 2.3.19 Rounding of amounts 2.3.20 Corresponding figures 2010 2009 48,810,186 — — 48,810,186 2010 2009 1,331,113 56,000,000 226,968,000 28,000,615 113,486,493 3,000,000 12,159,000 122,929,262 498,232,299
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 2010 2009 95,194 385,821 167,759 699,387 — — 35,350,838
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 95,681,611 48,892,445 21,652,816 51,266 68,922,833 90,449,609 366,592,265
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 19,342,052 14,891,469 60,355,124 55,923,099 5,116,021 4,061,189 16,459,999 2,831,298 4,102,635 68,922,834 17,995,587 2010 2009
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 6,360,518 14,198,416 — — — — — — — — — — 1,320,184 2,126,859 8,620,159 — — — — — — — — — — 110,999,183
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 20102009 — 5,300,884 — — 3,552,139 138,506 — — 4,398,536 11,373,857
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 256,248 42,800 1,136,353 28,400 115,105 1,855,229 116,785 2010 3,043,305 559,992 531,661 125,500 — — — 2,510,689 1,403,925 46,261 225,300 296,335 445,081 33,698 139,824 914,938 141,949 1,544 32,514 523,054 — — — 643,382 35,242 90,221 816,895 11,019 2,830,300 44,660
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2009 37,937 181,917 — 1,778,768 181,917 66,987 995 33,698 19,715
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 20102009 141,269 941 142,210 112,298 8,296 120,594 21,616 2010 2009 269,555,169 165,863,636 113,785 194,221,143
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009Number of deposit accounts: 958 6,386 158 3 3 2010 2009 309,313,519 11,132 45,118 — —194,221,143 194,221,143 2010 2009
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 654,019 19,717 783,818 122,528 496,606 178,717 33,515 135,836 25,621 103,842 1,650,995 6,691,483 2010 2009 930,519 — — 2,363,624
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 2,343,482 716,818 352,310 63,719 930,519 20102009 930,519 899,092 667,837 3,644,020
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 533,323 2,161,558 2010 2009 35,263 142,920 55,799 248,953
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 4,305,802 250,510 228,194 977,997 188,641 636,402 135,633 6,841 1,653,819 2010 2009 531,350 2,153,562 419,005 369,885 261,012 683,791 219,514 889,690 155,115 628,681 128,200 519,595 121,561 461,949 106,536 171,967 66,901 258,898 33,955 60,148 13,335 28,099 113,885 21,828 88,469 359,808 73,189 3,958,249
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 48,810,186 145,618,806 46,000,000 186,438,000 35,350,838 — — 2010 2009 20,000,000 81,060,000
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 234,503,901 229,632,945 2010 2009 523,054 2,119,938 8,296 33,624 531,350 2,153,562
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 2,283,521 9,255,111 99,541 403,440 97,589 2,383,062 9,658,551 319,958 2,468,669 10,005,515 2010 2009 228,839
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 80,535,905 3,444,286 13,959,693 1,201,983 42,065 86,36124,559,024 15,868,988 66,157,811 2010 2009 1,356,561 1,064,300 4,313,608
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 48,810,186 122,929,262 498,232,299 35,350,838 299,048 1,212,041 230,044,501
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 194,221,143 2,468,669 10,005,515 614,249 2,489,551
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued)
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2010 2009 122,929,262 498,232,299 35,350,838 299,048 1,212,041 218,001,524
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 122,929,262 — 42,800 131,694,203 — — 19,342,052 — 19,342,052 — — 14,891,469 — 14,891,469 — — — — — 5,116,021 — 5,116,021 — — 256,248 122,929,262 299,048 — — — — — — 122,929,262 299,048 218,001,524 498,232,299 35,350,838 1,212,041
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2009 — — — — — — — — — — — — — — — 33,699,695 — — — — — —
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 2010 2009 84,126,311 340,963,938 2,698,852
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 22.3.1 Foreign currency exchange risk 22.3.2 Interest rate risk Fair value sensitivity analysis for fixed rate instruments Cash flow sensitivity analysis for variable-rate instruments
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) — — — — — 66,929,262 46,000,000 — 10,000,000 — — 122,929,262 — — — — — 46,485,223 2,043,334 11,445,511 24,368,565 — 256,248 42,800 — — — — 299,048 134,435,851 48,086,134 21,445,511 24,368,565 — 230,044,501 163,944,953 4,809,584 10,353,643 — 194,221,143 2,468,669 — — — — — 2,468,669 — 614,249 — — — — 614,249 166,413,622 4,809,584 10,353,643 — 32,496,422 11,091,868 24,231,065 — 44,955,341 98,208,506 —
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 — — — — — — — — — — — — — — — — — 96,576,811 — — — — — — — — — — — — 96,576,811 — —
annual report2010notes to the financial statements as at and for the year ended 31 december 2010 (continued) 22.5.1 Regulatory capital 22.5.2 Capital allocation
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010 2009 — — — — — —
annual report2010SupplementaryFinancial Information 108 110 111 112 113 114 115
notes to the financial statements as at and for the year ended 31 december 2010 (continued)annual report2010statementbymanagement limitation
annual report2010networth 2010 30,000,000 121,590,000 2,182,132 8,844,181 34,490,000 — — 21,616 21,616 34,468,384 — — 143,130,809
net worth (continued)annual report2010 2010 2009 30,000,000 121,590,000 2,182,132 8,844,181 11,889,93834,490,000 — — — — 21,616 — — — —21,616 34,468,384 — — — — — — — — 34,468,384
annual report2010liquidityratio 2010 2009 48,810,186 35,350,838 — — — — — — — — 11,132 45,118 11,132 45,118 112,682,633 112,682,633 2,043,334 8,281,633 464,984,345 48,556,441 31,006,923 48,665,801 39,904,540 84,628 438,881,951 95.88% 95.88%
annual report2010solvencyratio 2010 2009 34,468,384 Total aggregate assets: — — — — — — — — — — — — — — — — — — — — — — — — 4,325,433 365,202,836 Off-balance sheet items: 2,862,930 1,990,981 8,069,446 — — — — 393,666,192
annual report2010loansclassificationandallowanceforloanlosses 2010 2009 1 833,220 1 3 105,096 105,096 — 3 65,895 — 2 — — — — — — — 50 — 100 — — — — — — — 2,661,838 4,398,536 11,373,551 11,373,857
annual report2010netopenpositioninforeigncurrency — — — — 1.63% — — — — — 24,559,024 24,559,024 15,868,987 15,868,987 — — — — — 97,589 — — — 97,589 — — — — —
annual report2010otherinformationandprudentialregulationsrequired by the Cambodian Law on Banking and Financial Institutions
annual report2010financialsoundnessindicators 2010 2009 34,490,000 2010 2009 34,490,000 2010 2009 34,490,000 393,666,192
annual report2010financial soundness indicators (continued) 2010 2009 34,490,000 393,666,192 2010 2009 34,468,384 2010 2009 34,468,384 393,666,192
financial soundness indicators (continued)annual report2010 2010 2009 199,239,899 81.56% 81.56% 2010 2009 199,239,899 34,490,000 2010 2009 — — — — 11,889,938
annual report2010financial soundness indicators (continued) 2010 2009 — — — — 2010 2009 — — — — 2010 2009
financial soundness indicators (continued)annual report2010 2010 2009 2010 2009 6,950,230 28,169,281 2010 2009 6,950,230 28,169,281
annual report2010financial soundness indicators (continued) 2010 2009 6,950,230 28,169,281 34,490,000 18.96% 18.96% 2010 2009 — — — — 2010 2009
financial soundness indicators (continued)annual report2010 2010 2009 — — — — 34,468,384 2010 2009 34,468,384 2010 2009 3,430,448
annual report2010financial soundness indicators (continued) 2010 2009 3,552,139 14,396,819 2010 2009 3,552,139 14,396,819 51.73% 51.73% 2010 2009 4,398,536 11,373,857 1.56% 1.56%
financial soundness indicators (continued)annual report2010 2010 2009 194,221,143 56.51% 56.51% 2010 2009 11,889,938 1.63% 1.63% 2010 2009 11,889,938 34,490,000 8.86% 8.86%
annual report2010financial soundness indicators (continued) 2010 2009 2010 2009 6,104,629 3.69% 3.69% 2010 2009 6,292,854 25,504,938 1,653,819
financial soundness indicators (continued)annual report2010 2010 2009 5,439,390 22,045,848 2010 2009 1.57% 1.57% 2010 2009
annual report2010financial soundness indicators (continued) 2010 2009 638,945 2,589,644 778,891 2010 2009 6,104,629 9,301,822 2010 2009 1,653,819 9,301,822
financial soundness indicators (continued)annual report2010 2010 2009 9,301,822 2010 2009 16,651,900 2010 2009
annual report2010financial soundness indicators (continued) 2010 2009 199,239,899 81.56% 81.56% 2010 2009 199,239,899 2010 2009 199,239,899
financial soundness indicators (continued)annual report2010 2010 2009 194,221,143 176.97% 176.97%
annual report2010groupdirectory As at 30 June 2010Commercial BankingMalayan Banking Berhad <strong>Maybank</strong> Islamic Berhad P.T. Bank <strong>Maybank</strong> Indocorp <strong>Maybank</strong> Philippines Incorporated <strong>Maybank</strong> (PNG) Ltd <strong>Maybank</strong> International (L) Ltd P.T. Bank Internasional Indonesia Tbk Investment Banking<strong>Maybank</strong> Investment Bank Berhad InsuranceMayban Fortis Holdings BerhadMayban Life Assurance Bhd
group directory as at 30 june 2010 (continued)annual report2010Etiqa Life International (L) LtdEtiqa Offshore Insurance (L) Ltd Etiqa Insurance BerhadEtiqa Takaful Berhad OthersMayban Investment Management Sdn Bhd Mayban Ventures Sdn BhdMayban Venture Capital Company Sdn BhdMayban Agro Fund Sdn Bhd Mayban (Nominees) Sendirian BerhadMayban Nominees (Tempatan) Sdn BhdMayban Nominees (Asing) Sdn Bhd Mayban Securities Nominees (Tempatan) Sdn. Bhd.Mayban Securities Nominees (Asing) Sdn. Bhd. Mayban Trustees Berhad
Notes
MAYBANK PHNOM PENHNo. 4B, Street 114 (Kramoun Sar) Phnom Penh, Kingdom of CambodiaTel: +885 23 210 123 Fax: +885 23 210 099 E-Mail: mbb@maybank.com.kh Website: http://www.maybank.com
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