CIMB GROUP HOLDING

2011
(1)Do companies use derivative instruments?
Yes
(2) What are the instruments used by the companies? OTC or exchange-traded?
-
(3) Are they used for hedging or trading? Indicate in a summary table.
-
(4) How much of the value (fair value) of the derivatives instrument?
-
(5) What do you observe on the trend of the instruments used?
-
(6) Make your concluding remarks on the derivative market based on your findings. You
may present your findings in charts, table etc .

The following tables summarise the contractual or underlying principal amounts of

trading derivatives and financial instruments held for hedging
purposes. The principal or contractual amounts of these instruments reflect the volume of
transactions outstanding at statements of financial position
date, and do not represent amounts at risk.

Fair value hedges

Fair value hedges are used by the Group and the Company to protect it against the
changes in fair value of financial assets and financial
liabilities due to movements in market interest rates. The Group and the Company use
interest rate swaps and cross-currency swaps to hedge
against interest rate risk of loans, subordinated obligations, negotiable instruments of
deposits issued and foreign bonds. For designated and
qualifying fair value hedges, the changes in fair value of derivative and item in relation to
the hedged risk are recognised in the statement of
income. If the hedge relationship is terminated, the cumulative adjustment to the carrying
amount of the hedged item is amortised in the
statement of income based on recalculated effective interest rate over the residual period
to maturity, unless the hedged item has been
derecognised, in which case, it is released to the statement of income immediately.
For the financial year ended 31 December 2011, the Group has derecognised fair value
hedge item of RM6,220,990 due to maturity of
negotiable instruments of deposit. The Group has also fully amortised the cumulative fair
value loss of redesignated negotiable instruments of
deposit of RM22,512,000 upon its maturity.
2012
(1)Do companies use derivative instruments?
Yes
(2) What are the instruments used by the companies? OTC or exchange-traded?
-
(3) Are they used for hedging or trading? Indicate in a summary table.
-
(4) How much of the value (fair value) of the derivatives instrument?
-
(5) What do you observe on the trend of the instruments used?
-
(6) Make your concluding remarks on the derivative market based on your findings. You
may present your findings in charts, table etc .

(a) Fair value hedges

Fair value hedges are used by the Group and the Company to protect it against the
changes in fair value of financial assets and financial
liabilities due to movements in market interest rates. The Group and the Company use
interest rate swaps and cross-currency swaps to
hedge against interest rate risk of loans, subordinated obligations, negotiable instruments
of deposits issued and foreign bonds. For
designated and qualifying fair value hedges, the changes in fair value of derivative and
item in relation to the hedged risk are recognised
in the statement of income. If the hedge relationship is terminated, the cumulative
adjustment to the carrying amount of the hedged item
is amortised in the statement of income based on recalculated effective interest rate over
the residual period to maturity, unless the
hedged item has been derecognised, in which case, it is released to the statement of
income immediately.
For the financial year ended 31 December 2011, the Group has ceased fair value hedge
item of RM6,220,990 due to maturity of
negotiable instruments of deposit. The Group has also fully amortised the cumulative fair
value loss of redesignated negotiable instruments
of deposit of RM 22,512,000 upon its maturity.
 The The
group company
31 dec 31 dec 1 jan 31 dec 31 dec 1 jan
2012 2011 2011 2012 2011 2011
RM00 RM000 RM000 RM000 RM000 RM000
0
Loss on hedging (45,817) (150,195) (50,768) (2,957) (1,363) (2,727)
in struments
Gain on hedge 18,905 133,911 10,603 3,020 1,170 2,618
items attribute to
the hedge risk

2013
(1)Do companies use derivative instruments?
Yes
(2) What are the instruments used by the companies? OTC or exchange-traded?
-
(3) Are they used for hedging or trading? Indicate in a summary table.
-
(4) How much of the value (fair value) of the derivatives instrument?
-
(5) What do you observe on the trend of the instruments used?
-
(6) Make your concluding remarks on the derivative market based on your findings. You
may present your findings in charts, table etc .

(i) Fair value hedges

Fair value hedges are used by the Group and the Company to protect it against the
changes in fair value of financial assets and financial
liabilities due to movements in market interest rates. The Group and the Company use
interest rate swaps and cross-currency interest rate
swaps to hedge against interest rate risk of loans, subordinated obligations, negotiable
instruments of deposits issued and bonds. For
designated and qualifying fair value hedges, the changes in fair value of derivative and
item in relation to the hedged risk are recognised
in the statement of income. If the hedge relationship is terminated, the cumulative
adjustment to the carrying amount of the hedged item
is amortised in the statement of income based on recalculated effective interest rate over
the residual period
 The group The
company
31 dec 31 dec 2013
2013
RM000 RM000
Gain/(Loss) on hedging instruments 75,671 (869)
(Loss)/Gain on the hedged items attributable to the hedged (121,507) (2,663)
risk

2014
(1)Do companies use derivative instruments?
Yes
(2) What are the instruments used by the companies? OTC or exchange-traded?
-
(3) Are they used for hedging or trading? Indicate in a summary table.
-
(4) How much of the value (fair value) of the derivatives instrument?
-
(5) What do you observe on the trend of the instruments used?
-
(6) Make your concluding remarks on the derivative market based on your findings. You
may present your findings in charts, table etc .

Fair value hedges are used by the Group and the Company to protect it against the
changes in fair value of financial assets and financial liabilities due
to movements in market interest rates and foreign exchanges rates. The Group and the
Company use non-derivatives financial liability, interest rate
swaps and cross-currency interest rate swaps to hedge against interest rate risk and
foreign exchange risk of loans, subordinated obligations,
negotiable instruments of deposits issued, bonds and investment in subsidiary. For
designated and qualifying fair value hedges, the changes in fair
value of hedging instrument and hedged item in relation to the hedged risk are recognised
in the statement of income. If the hedge relationship is
terminated, the cumulative adjustment to the carrying amount of the hedged item is
amortised in the statement of income based on recalculated
effective interest rate over the residual period to maturity, unless the hedged item has
been derecognised, in which case, it is released to the statement
of income immediately.
2015
(1)Do companies use derivative instruments?
Yes
(2) What are the instruments used by the companies? OTC or exchange-traded?
-
(3) Are they used for hedging or trading? Indicate in a summary table.
-
(4) How much of the value (fair value) of the derivatives instrument?
-
(5) What do you observe on the trend of the instruments used?
-
(6) Make your concluding remarks on the derivative market based on your findings. You
may present your findings in charts, table etc .

(i) Fair value hedges

Fair value hedges are used by the Group and the Company to protect it against the
changes in fair value of financial assets and financial liabilities
due to movements in market interest rates and foreign exchanges rates. The Group and
the Company use non-derivative financial liability, interest
rate swaps and cross-currency interest rate swaps to hedge against interest rate risk and
foreign exchange risk of loans, subordinated obligations,
negotiable instruments of deposits issued, bills and acceptance payables, bonds and
investment in subsidiary. For designated and qualifying fair
value hedges, the changes in fair value of hedging instrument and hedged item in relation
to the hedged risk are recognised in the statement of
income. If the hedge relationship is terminated, the cumulative adjustment to the carrying
amount of the hedged item is amortised in the statement
of income based on recalculated effective interest rate over the residual period to
maturity, unless the hedged item has been derecognised, in
which case, it is released to the statement of income immediately.

The The
group company
2015 2014 2015 2014
RM000 RM000 RM000 RM000
Gain/(Loss) on hedging instruments* 304,898 (42,362) (151,335) (53,865)
(Loss)/Gain on the hedged items (293,013) 38,124 151,335 53,865
attributable to the hedged risk