Affin Bank Berhad | Annual Report 2020

236 ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION The Group The Bank 2020 2019 2020 2019 Note RM’000 RM’000 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 386,711 676,971 93,069 460,124 Adjustments for items not involving the movement of cash and cash equivalents: Interest income: - financial investments at FVOCI 35 (296,738) (410,781) (214,338) (276,213) - financial investments at AC 35 (6,139) (8,265) (6,157) (5,725) Dividend income: - financial assets at FVTPL 40 (7,185) (8,022) (732) (732) - financial investments at FVOCI 40 (609) (5,946) (309) (2,392) - subsidiaries - - (191,500) (71,000) Gain on sale: - financial assets at FVTPL 40 (113,440) (44,762) (2,282) - - financial investments at FVOCI 40 (453,884) (281,800) (206,667) (125,007) - derivatives 40 (1,003) - (1,001) - Unrealised loss/(gain) on revaluation: - financial assets at FVTPL 40 (10,431) 15,295 (7,123) (4,590) - derivatives 40 15,625 6,596 20,716 5,549 - foreign exchange 41 7,642 (11,727) (12,828) (7,235) Depreciation of property and equipment 42 30,065 26,768 17,970 16,193 Depreciation of right-of-use assets 42 37,659 35,786 26,346 25,086 Property and equipment written-off 42 311 107 71 50 (Gain)/Loss on sale of property and equipment 41 (20) 207 181 380 Amortisation of intangible assets 42 38,106 32,702 23,157 17,921 Gain on sale of foreclosed properties 41 (165) (877) (165) (877) Share of results of a joint venture 394 3,860 - - Share of results of associates (42,258) (34,020) - - Expected credit losses made/(written-back) on: - loans, advances and financing 44 512,232 78,656 383,931 7,107 - trade receivables 44 2,601 (260) - - - securities and placements 44 50,724 (2,423) 42,591 (1,723) - loans/financing commitments and financial guarantee 44 8,837 2,156 7,379 (6,758) Modification loss on contractual cash flows arising from financial assets 37 78,447 - 47,381 - Bad debt and financing written-off 44 3,527 6,914 3,151 6,117 Allowances for impairment losses on other assets 45 18,472 5,617 - - Interest/profit expense on borrowings 186,482 188,312 134,087 133,800 Interest/profit expense on the lease liability 2,581 2,512 1,582 1,885 Finance cost on call options 5,752 - - - Profit expense - Recourse obligation on loans/financing sold to Cagamas Berhad 34 - - - Zakat 7,469 5,530 - - Operating profit before changes in working capital 461,799 279,106 158,510 171,960 STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 The accounting policies and notes form an integral part of these financial statements.