PIB A6.1.1 Guidance

1. In PIB A6.1.1(1), the three year average should be calculated on the basis of the last three yearly observations at the end of the Authorised Firm's financial year. When audited figures are not available, business estimates may be used.
2. If an Authorised Firm does not have sufficient income data to meet the three year requirement (e.g. a start-up), it may use its forecasted gross income projections for all or part of the three year time period. For example, if an Authorised Firm has two positive yearly gross incomes of USD 20 each and the final yearly observation shows a negative figure of USD 5, then the average should be calculated as USD 20 being USD 40 (sum of positive figures) divided by 2 (number of years for which positive figures are available).
3. Net interest income in PIB A6.1.1(4) is the interest income minus interest expense. Guidance on what constitutes interest income and interest expense can be found in the PRU module.
4. Net non-interest income in PIB A6.1.1(4) includes the income from fees and commissions, net income from trading Securities, net income from investment Securities, income from Islamic contracts and other operating income minus fee and commission expense. Guidance on non-interest income can be found in the PRU module.
5. In PIB A6.1.1(4)(ii), outsourcing fees paid by the Authorised Firm should be excluded whereas any outsourcing fee received by the Authorised Firm should be included as part of the gross income.
6. When income from revaluation of trading items is included in the income statement, such revaluation income should be included in the calculation of the gross income.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]