Question :

Prepare a 5-year proforma of financial statements using:
a. Internal growth rate
b. Sustainable growth rate
Assume that the retention rate remains as the latest one reported
Assume that the business environment is normal
Assume that there is no change in the numbers of shares outstanding
Assume that the minimum cash balance policy is as reported in the based year
You are required to compute yearly growth rate based on yearly ROA and ROE produced by your proforma
Ensure that the balance sheet is balance through out the 5-year projection

ASSETS Cash and short-term funds Debt instruments at fair value through other comprehensive income Debt instruments at amortised cost Other assets Tax recoverable Amount owing by subsidiaries Investment in subsidiaries Property, plant and equipment Right-of-use assets Investment properties Non-current assets held for sale Total assets LIABILITIES Other liabilities Amount owing to subsidiaries Deferred tax liabilities Other borrowings Subordinated obligations Total liabilities EQUITY Ordinary share capital Reserves Less: Treasury shares, at cost Total equity Total equity and liabilities Note 2 5 7 10 13 16 17 18 55 25 11 30 31 32 34 35(b) RM'000 93,674 1,778,168 6,798,814 84,101 185,354 183 32,873,956 413 430 345 41,815,438 3,768 41,819,206 3,158 13,389 227 4,707,895 9,609,761 14,334,430 27,099,681 385,138 (43) 27,484,776 41,819,206 RM'000 344,603 3,246,974 6,701,694 83,516 184,023 12 32,468,575 4,573 603 363 43,034,936 43,034,936 6,647 427 374 4,708,893 10,916,708 15,633,049 25,843,808 1,558,122 (43) 27,401,887 43,034,936 COMPANY STATEMENT OF INCOME for the financial year ended 31 December 2021 Interest income Interest expense Net interest expense Net non-interest income Overheads Profit before expected credit losses Other expected credit losses and impairment allowances written back Profit before taxation Taxation Profit for the financial year Note 36(a) 37 39 40 42 44 2021 RM'000 405,633 (583,304) (177,671) 584,188 406,517 (36,054) 370,463 20,659 391,122 469 391,591 2020 RM'000 453,683 (646,904) (193,221) 1,760,419 1,567,198 (23,282) 1,543,916 4,287 1,548,203 (1,084) 1,547,119 COMPANY STATEMENT OF COMPREHENSIVE INCOME for the financial year ended 31 December 2021 Profit for the financial year Other comprehensive income: Items that may be reclassified subsequently to profit or loss Debt instruments at fair value through other comprehensive income - Net (loss)/gain from change in fair value - Changes in expected credit losses Other comprehensive (expense)/income during the financial year, net of tax Total comprehensive income for the financial year 2021 RM'000 391,591 (75,286) (61,667) (13,619) (75,286) 316,305 2020 RM'000 1,547,119 2,082 1,404 678 2,082 1,549,201 ASSETS Cash and short-term funds Debt instruments at fair value through other comprehensive income Debt instruments at amortised cost Other assets Tax recoverable Amount owing by subsidiaries Investment in subsidiaries Property, plant and equipment Right-of-use assets Investment properties Non-current assets held for sale Total assets LIABILITIES Other liabilities Amount owing to subsidiaries Deferred tax liabilities Other borrowings Subordinated obligations Total liabilities EQUITY Ordinary share capital Reserves Less: Treasury shares, at cost Total equity Total equity and liabilities Note 2 5 7 10 13 16 17 18 55 25 11 30 31 32 34 35(b) RM'000 93,674 1,778,168 6,798,814 84,101 185,354 183 32,873,956 413 430 345 41,815,438 3,768 41,819,206 3,158 13,389 227 4,707,895 9,609,761 14,334,430 27,099,681 385,138 (43) 27,484,776 41,819,206 RM'000 344,603 3,246,974 6,701,694 83,516 184,023 12 32,468,575 4,573 603 363 43,034,936 43,034,936 6,647 427 374 4,708,893 10,916,708 15,633,049 25,843,808 1,558,122 (43) 27,401,887 43,034,936 COMPANY STATEMENT OF INCOME for the financial year ended 31 December 2021 Interest income Interest expense Net interest expense Net non-interest income Overheads Profit before expected credit losses Other expected credit losses and impairment allowances written back Profit before taxation Taxation Profit for the financial year Note 36(a) 37 39 40 42 44 2021 RM'000 405,633 (583,304) (177,671) 584,188 406,517 (36,054) 370,463 20,659 391,122 469 391,591 2020 RM'000 453,683 (646,904) (193,221) 1,760,419 1,567,198 (23,282) 1,543,916 4,287 1,548,203 (1,084) 1,547,119 COMPANY STATEMENT OF COMPREHENSIVE INCOME for the financial year ended 31 December 2021 Profit for the financial year Other comprehensive income: Items that may be reclassified subsequently to profit or loss Debt instruments at fair value through other comprehensive income - Net (loss)/gain from change in fair value - Changes in expected credit losses Other comprehensive (expense)/income during the financial year, net of tax Total comprehensive income for the financial year 2021 RM'000 391,591 (75,286) (61,667) (13,619) (75,286) 316,305 2020 RM'000 1,547,119 2,082 1,404 678 2,082 1,549,201