Completion Instructions for Return of Current Year's Profit and Loss Account

MA(BS)1C/P.1 (12/2021) Completion Instructions Return of Current Year’s Profit and Loss Account Form MA(BS)1C and Part II of Form MA(BS)1H Introduction

1. This return collects information on the profit and loss account and provisions of authorized institutions. Section A: General Instructions
2. The general reporting requirements for authorized institutions incorporated locally and overseas are asfollows: To be reported by Coverage Reporting frequency and submission deadline MA(BS)1C Institutions incorporated in HK without overseas branches / institutions incorporated outside HK  1 return on the position of HK offices  Quarterly; not later than 21 days after 31 March, 30 June, 30 September and 31 December Institutions incorporated in HK with overseas branches  Same as above  1 return each for the position of overseas branches in each overseas country  1 return on the combined position of Hong Kong and overseas offices  Same as above  Half yearly, not later than 1 month after 30 June and 31 December  Quarterly, not later than 1 month after the end of each quarter. Part II of MA(BS)1H Licensed banks incorporated in Hong Kong that have one or more subsidiaries which are banks.  1 return on consolidated position of the HK offices, overseas branches and ALL subsidiaries consolidated in published accounts  Quarterly, not later than 1 month after the end of each quarter.

MA(BS)1C/P.2 (12/2021) 3. This return covers the position of a reporting institution from the first calendar day of its financial year to the last calendar day of the current quarter. Institutions whose financial year ends on a date other than 31 March, 30 June, 30 September and 31 December should submit an additional return for the whole financial year not later than 21 days after the end of each financial year, unless otherwise specified by the Monetary Authority. If the submission deadline falls on a public holiday, it will be deferred to the next working day. 4. All entries in this return should be reported on an accrual basis except those relating to assets which must be carried in non-accrual status. To avoid large fluctuation of profit/loss during a financial year, institutions are expected to set aside provisions for major expenditure items such as bad and doubtful debts, tax, depreciation and audit fees at least on a quarterlybasis. 5. Institutions should apply consistent accounting policies in compiling this return. Any change in accounting policies (i.e. different to those used for previous returns or the institutions' most recent statutory accounts) should be notified to the Monetary Authority in writing. 6. Amounts should be shown to the nearest thousand, in HK$ or HK$ equivalents in the case of foreign currency items. The closing middle market T/T rates prevailing at the end of the current quartershould be used for conversion purpose. 7. As stipulated in our guidance note “Review on Impact of the New Hong Kong Accounting Standards on Authorized Institutions’ Capital Base and Regulatory Reporting” issued to all AIs on 12 April 2005, locally incorporated AIs and overseas-incorporated AIs whose head offices have chosen to adopt IFRS or comparable standards shall neglect any reference made thereto in this return on “interest in suspense’ and “country risk provision”. 8. Specific provisions or general provisions mentioned in this completion instruction should follow the definitions of specific provisions and collective provisions defined in section 2(1) of the Banking (Capital) Rules respectively. The categorisation of accounting provisions into specific provisions or general provisions follows the treatment adopted in MA(BS)3. 9. Report the amount of income and expenses attributable to insurance related subsidiaries after adjusting intercompany eliminationsin the last column of section I in Part II of MA(BS)1H. 10. Insurance related subsidiaries referred to those subsidiaries engaging in insurance related business either as insurer, insurance agent or insurance broker. 11. In reporting Part II of MA(BS)1H, authorized institutions should use the same scope of reporting as their published consolidated accounts.

MA(BS)1C/P.3 (12/2021) Section B : Specific Instructions Item Reference MA(BS)1C Part II MA(BS)1H Part I Profit & Loss Account Income 1.1 1.1 Interest income Report interest received and accrued interest receivable attributable to the reporting period, including those arising from trading securities held. Amortisation of discounts and premiums of securities held by the reporting institution should also be reported under this item Where interest rate related derivatives are used to hedge banking book assets, the net interest arising from the combination of the asset and the hedge should be included. Income from interest rate related derivatives held for purposes other than hedging should be reported under item 2.2. 1.2 1.2 Interest expenses Report interest paid and accrued interest payable attributable to the reporting period, including those arising from securities short positions held for trading purposes. Amortisation of discounts and premiums of securities issued by the reporting institution should also be reported under this item. Where interest rate related derivatives are used to hedge banking book liabilities, the net interest arising from the combination of the liability and the hedge should be included. Costs arising from interest rate related derivatives held for purposes other than hedging should be reported under item 2.2.

1. 1. Net interest income Report the net amount of items 1.1 and 1.2. Where interest expenses exceed interest income, the net figure should be shown in brackets. 2.1 - 2.3 2.1 - 2.3 "Trading transactions" for the purposes of items 2.1 - 2.3 of this return mean an institution's proprietary positions in financial instruments which are intentionally held for short term resale and/or which are taken on by the institution with the intention of

MA(BS)1C/P.4 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H benefiting in the short term from actual and/or expected differences between buying and selling prices, or from other price or interest rate variations, and positions in financial instruments arising from matched principal brokering and market making, or positions taken in order to hedge other elements of the trading book 2.1A 2.1A Gains less losses arising from trading in foreign currencies Report the realised and unrealised gains less losses for the current financial year from the reporting institution's trading transactions in foreign currencies (which includes dealings in gold) including those from foreign exchange derivatives. Include also all fees and commissions derived from such activities. Where the losses exceed the gains, the net figure should be shown in brackets. 2.1B 2.1B Gains less losses arising from non-trading activities in foreign currencies Report the realised and unrealised gains less losses arising from non-trading activities in foreign currencies including fees and commissions derived from such activities. Where the institution is engaged in interest arbitrage dealing (for example, the institution takes a HK dollar deposit and makes a US dollar loan and simultaneously enters into a HK dollar/US dollar forward contract in order to hedge the currency exposure) and does not distinguish between exchange and interest gains or losses on such dealing, the entire amount of the profits or losses concerned should be shown under items 1.1 or 1.2; a profit arising from the transaction should be treated as interest income and a loss as interest expense. 2.2 2.2 Gains less losses arising from trading in interest rate derivatives Report the realised and unrealised gains less losses for the current financial year from the reporting institution's trading transactions in interest rate derivatives. Where the losses exceed the gains, the net figure should be shown in brackets. 2.3 2.3 Gains less losses arising from trading in other derivatives Report the realised and unrealised gains less losses for the current financial year from the reporting institution's trading transactions in all other derivatives excluding interest rate and foreign exchange derivatives. Where the losses exceed the gains, the net

MA(BS)1C/P.5 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H figure should be shown in brackets. 2. 2. Gains less losses arising from foreign exchange operations and trading in derivatives Report the net amount of items 2.1A, 2.1B, 2.2 and 2.3. Where the total losses exceed the total gains, the net figure should be shown in brackets. 3.1 3.1 Income from investments held for trading 1 Report all profit or loss from investments held for trading or dealing purposes. Where derivatives are used to hedge investments held for trading, the net profit or loss arising from the combination of the investment and the hedge should be included. 3.2 3.2 MA(BS)1C Dividend from subsidiary and associated companies and other equity investments Report the dividends from group companies, associated companies and other equity investments recognised during the reporting period. Part II of MA(BS)1H Dividend income Report the dividend income recognised during the reporting period. 3.3 3.3 Income from non-trading investments 2 Report all profit or loss (including any remaining unamortised premiums or discounts) from derecognition (e.g. sale, early redemption, modifications that result in derecognition) of all investments other than those which qualify for reporting under item 3.1 above.

1 The term “investments held for trading” refers to investments and loans and advances measured at fair value through profit or loss under HKFRS 9 or equivalent accounting standard. Financial assets designated at fair value through profit or loss shall also be included." 2 The term “non-trading investments” refers to investments measured at "amortised cost" or "fair value through other comprehensive income" under HKFRS 9 or equivalent accounting standard.

MA(BS)1C/P.6 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H Where derivatives are used to hedge investments other than those which qualify for items 3.1 and 3.2, the net profit or loss arising from the combination of the investment and the hedge should be included. 3. 3. Income from investments Report the sum of items 3.1 to 3.3. 4. 4. Income from fees and commissions This includes charges, fees and commissions received by the reporting institution in respect of services such as credit lines, corporate advice, investment management and trustee services, guarantees and indemnities etc. provided by it to customers. Report the net income from fees and commissions. Where fee and commission expenses exceed fee and commission income, the net figure should be shown in brackets. 5. 5. Profit/(loss) on sale of fixed assets Report the profit or loss on the sale of fixed assets of the reporting institution, e.g. premises and equipment. Gains and losses arising from disposal of leasehold land for own use should be reported under this item. Gains and losses arising from disposal of investment properties should be reported under item 6. 6. 6. Other income Report all other income but which are not elsewhere included. This should include any income or expenses arising from derivatives positions which do not qualify for inclusion within items 1, 2 or 3 above. Where the expenses exceed income, the net figure should be shown in brackets. For securities issued by the reporting institution, net gains or losses (including those arising from the remaining unamortised premiums or discounts) on early redemption of such securities shall be reported under this item. In Part II of MA(BS)1H Report the net insurance premium income from insurance subsidiary in item 6.1 and share of profit in associates and joint ventures in item 6.2

MA(BS)1C/P.7 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H 7. 7 Total income Report the sum of items 1 to 6. Expenses and other charges 8.1 8.1 Staff expenses This includes all employee benefits (including short-term employee benefits such as wages and salaries, post employment benefits such as pensions and other retirement benefits, other long-term employee benefits and termination benefits etc.) and directors’ emoluments. 8.2 8.2 Rental expenses This includes expenses on occupancy such as rents, rates, insurance of premises, depreciation cost of premises, lighting, heating and maintenance costs etc. Expenses for staff housing benefit schemes should be included under item 8.1. 9. 9. Other expenses This includes depreciation cost of equipment, audit fees and all other expenses which are not elsewhere included. In Part II of MA(BS)1H, report the net insurance claims and benefits paid and movement in liabilities to policyholders in item 9.1. 10. 10. Net charge/(credit) for debt provision3 Report net amount charged or credited to the profit and loss account during the reporting period in respect of provisions for bad and doubtful debts and bad debt recoveries. The amount reported for this item should be the same as the net amount of items 1.4, 1.6 and 1.7 of Part II, save for any exchange differences. 11. 11. Net charge for other provisions Report amount provided less amount recovered for other provisions in the reporting period.

3 Item 10 includes net charge/(credit) in both general provisions and specific provisions.

MA(BS)1C/P.8 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H 11A. 11A. Deficit/(surplus) on revaluation of land and buildings Report the net deficit/(surplus) on revaluation of bank premises and investment properties. A deficit arising on revaluation of bank premises should be charged to the profit and loss account if and to the extent that it exceeds the amount held in the bank premises revaluation reserve in respect of that same asset immediately prior to the revaluation. Where there is a surplus arising on revaluation, it should be credited to the profit and loss account to the extent of the deficit previously charged to the profit and loss account in respect of that same asset. Deficits and surpluses arising on revaluation of investment properties should be recognised on a portfolio basis. A net deficit should be first set off against the investment property revaluation reserve4 and thereafter charged to the profit and loss account. Where a deficit has previously been charged to the profit and loss account and a revaluation surplus subsequently arises, this surplus should be credited to the profit and loss account to the extent of the deficit previously charged. 11B. 11B. Impairment loss/(reversal of impairment loss) on assets Report the net amount of impairment loss/(reversal of impairment loss) 5 on bank premises, investment properties and other assets (such as equipment, fixtures and fittings). An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Such impairment losses are recognised in the profit and loss account except where the asset is carried at valuation and the impairment loss does not exceed the revaluation surplus for that same asset, in which case it is treated as a revaluation decrease. An impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount of the asset. A reversal of impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment

4 Locally incorporated authorized institutions shall neglect the reporting treatment in relation to investment property revaluation reserve. Instead, the fair value gains and losses arising from investment properties should be report under item 11A. Overseas incorporated authorized institutions which adopt accounting standards relevant to their home country and record investment property revaluation reserve in their books should report the movement in investment property revaluation reserve according to the completion instructions for item 11A. 5 Please refer to HKAS 36 for the accounting treatment of impairment loss.

MA(BS)1C/P.9 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H loss been recognised in prior years. 12. 12. Total expenses and other charges Report the sum of items 8 to 11B. Current profit/(loss) 13. 13. Profit/(loss) before tax Report the net amount of items 7 and 12. Where total expenses exceed total income, the net figure should be shown in brackets. 14. 14. Net charge for tax provision Report the net charge for tax provision in the reporting period. 15. 15. Profit/(loss) after tax Report the difference between items 13 and 14. 16. 16. Extraordinary profit/(loss) net of tax Report all extraordinary profit or loss that arise from events or transactions that are clearly distinct from the ordinary activities of the institution and therefore are not expected to recur frequently or regularly. Include for example any loss on the expropriation of assets or arising from a natural catastrophe. 17. 17. Profit/(loss) for the period Report the total of items 15 and 16. Other information

• 18. Report profit/(Loss) attributable to non-controlling interests reported in item 17 in Part II of MA(BS)1H

18. 19 Dividend declared Report all dividends declared by the institution during the reporting period. Dividends attributable to profits earned in previous years should be included if these were declared during the reporting period.

MA(BS)1C/P.10 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H 19.1 - Dividend from licensed bank subsidiaries/associated companies Report all dividends from subsidiaries and associated companies which are licensed banks recognised during the reporting period. 19.2 - Dividend from RLB/DTC subsidiaries/associated companies Report all dividends from subsidiaries and associated companies which are restricted licence banks or deposit-taking companies recognised during the reporting period. 19. - Total dividend from authorized institution subsidiaries/associated companies Report the total of items 19.1 and 19.2 and the sum should be equal to or smaller than item 3.2. 20. 20. Unrealised and deferred losses in derivatives Report any unrealised losses on derivatives which have not been taken to the profit and loss account and any amount of realised losses on derivatives contracts that have been deferred as at the end of the reporting period. Any unrealised or deferred gains on derivatives should not be netted off unless a legally enforceable bilateral netting agreement exists. Part II Provisions

1. 1. Changes in provision for bad and doubtfuldebts Any provisions charged/credited to the profit and loss account including recoveries and write-offs should be reported in this part. Institutions which have the practice of crediting recoveries and debiting write-offs directly to the profit and loss account without going through the provision for bad and doubtful debts account should take note of the reporting instructions for items 1.3 and 1.5 below. For the purposes of this part, "bad and doubtful debts" include loans and advances, claims on banks (other than holdings of debt securities issued by them), bills receivable, bills discounted and purchased. They include also accrued interest on these items. Country risk provisions generally refer to provisions set aside by authorized institutions to absorb potential losses arising from their

MA(BS)1C/P.11 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H country risk exposures. If institutions reflect country risk in provisions earmarked against their aggregate exposure to a particular country after accounting for risk transfer and specific provision made against credit risk (i.e. on a country basis), such provision should be reported under the column of “Country risk (c)”. If institutions do not separately set aside country risk provisions but factor in an element of provision for country risk into specific provisioning for each individual exposure (i.e. on an individual obligor basis), such provision should be reported under the column of “Specific (a)”. Additional reporting guidance on Part II.1 of this return is provided in Appendix 1. 1.1 1.1 Previous balance The date to be inserted in the space provided should be the last day of the previous financial year. Report the balance outstanding in the specific, general and country risk provisions accounts as at the last day of the previous financial year. The amounts should be the same as those reported under items 1.9(a), (b) and (c) of this part as at the end of the previous financial year. It is recognised that institutions often have the need to make adjustments to these reported figures, typically upon the finalisation of annual financial statements. In such case, the amounts to be reported should be the revised amounts instead of the amounts shown in the earlier return(s). Institutions which have made the adjustments should provide the Monetary Authority with amendments to the earlier return(s) at or before the time of submitting the return for the current quarter. 1.2 1.2 Adjustments for exchange difference Report any increase or decrease in the opening balances resulting from the conversion into HK$ of any portion of the balances which is denominated in a foreign currency. 1.3 1.3 Recoveries Report recoveries of amounts previously written off against which a provision has been made or where a provision has been reinstated for an amount that has been previously written off. The release of the amounts to the profit and loss account should pass through item 1.6 below.

MA(BS)1C/P.12 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H 1.4 1.4 New provisions Report the amount charged to the profit and loss account during the reporting period in respect of new provisions. 1.4A 1.4A Net provisions arising from new financial assets originated or acquired This includes the amount charged to the profit or loss arising from new financial assets originated or purchased (net of repayments made on these financial assets during the reporting period). Increases or decreases in provisions due to changes in credit risk subsequent to initial recognition shall be reported under item 1.4B or item 1.6A. 1.4B 1.4B Increase in provisions arising from changes in credit risk Report the increase in provisions arising from change in credit risk of existing financial assets, e.g., transfer from 12-month to lifetime expected credit loss stage, updates of risk parameters (such as probability of default, loss given default), modifications of contractual cash flows of financial assets without derecognition, changes in forward looking economic data and the weighting for respective forward looking scenarios. 1.4C 1.4C Others Report new provisions arising from any other factor not included in 1.4A, 1.4B or 1.7. 1.5 1.5 Amount written off Report the amount of debts which were written off in the reporting period. Where no provision had been established for the debts in question, an entry equal to the amount that has been written off should be reported as new provisions under item 1.4B at the sametime. 1.6 1.6 Amount released Report any amount which is no longer required as provisions and which has been released back to the profit and loss account during the reporting period.

MA(BS)1C/P.13 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H 1.6A 1.6A Release of provisions arising from changes in credit risk Report the provisions released which arise from change of credit risk of existing financial assets, e.g., transfer from lifetime to 12-month expected credit loss stage, updates of risk parameters (such as probability of default, loss given default), repayments of financial assets, modifications of contractual cash flows of financial assets without derecognition, changes in forward looking economic data and the weighting for respective forward looking scenarios. 1.6B 1.6B Others Report the provisions released which arise from derecognition of financial assets other than amounts written off (e.g. full repayments of financial assets except for partial repayments reported under item 1.6A) and any other factor not included in item 1.6A or item 1.7. This item also includes recoveries of amounts previously written off against which a provision has been made. 1.7 1.7 Net charge / release due to changes in estimation methodology Report any net charge/release to the profit and loss account during the reporting period which arises from changes in the methodology for estimation of provisions. This shall include changes in the existing methodology (e.g. model assumptions) or the use of new methodology. However, changes arising from updates of risk parameters (such as probability of default, loss given default) and changes in forward looking economic data and the weighting for respective forward looking scenarios shall be reported under item 1.4 or item 1.6. 1.8 1.8 Other movements Report all other movements of provisions not included in items 1.3 to 1.7, for example, unwinding of discounts. 1.9 1.9 Current balance Report in items 1.9(a), (b) and (c) the current balances of specific, general and country risk provisions respectively. 2. 2. Provisions against value of other claims and investment

MA(BS)1C/P.14 (12/2021) Item Reference MA(BS)1C Part II MA(BS)1H Report all provisions other than those reported in item 1.9. 3. 3. Total provisions This is the total of items 1.9(a), (b), (c) and 2. The amount reported should agree with the sum of amount reported in item 24 of Form MA(BS)1 (or, item 20 of Form MA(BS)1A and item 23 of Form MA(BS)1B, as the case may be.) 4. 4. Gross value of loans against which specific provisions have been made Report the gross book value as at the end of the reporting quarter of all exposures against which specific provisions have been made. The gross value of loans should not include accrued interest which has been capitalised but credited to interest in suspense account. 5. Provisions made by head office/other overseas branches or by the parent company of the reporting institution against the exposures of the reporting institution Report provisions made in the books of the overseas head office or other overseas branches or by the parent company of the reporting institution in respect of the bad and doubtful debts of the reporting institution. Those institutions which do not presently establish provisions in their own books are expected to maintain the provisions on their own as far as possible. Hong Kong Monetary Authority December 2021

MA(BS)1C/P.15 (12/2021) Appendix 1 Additional reporting guidance on Part II.1 “Changes in provision for bad and doubtful debts”

1. Item 1.4A “Net provisions arising from new financial assets originated or acquired” should capture the increase in provisions due to the following:  Initial drawdown of credit facilities granted to customers;  Subsequent increase in outstanding loan balance by comparing the ending balance of the reporting period to the beginning balance of the reporting period;  Loans purchased from other entities during the reporting period;  In the situation where an increase in outstanding loan balance is coupled with a change in the underlying credit risk1 , the portion of changes in provisions contributed by the increase in loan balance is separately reported in this item (Appendix 2).
2. Item 1.4B “Increase in provisions arising from changes in credit risk” should capture the increase in provisions arising from the following changes:  Increase in the underlying credit risk regardless of whether there is any change in staging of the loan under IFRS/HKFRS 9;  In the situation where an increase in the underlying credit risk is coupled with an increase in outstanding loan balance, the portion of increase in provisions contributed by the increase in underlying credit risk of existing loan balance is separately reported in this item (Appendix 2);  In the situation where an increase in the underlying credit risk coupled with partial repayment of loan results in a net increase in provisions (Appendix 2).
3. Item 1.6A “Release of provisions arising from changes in credit risk” should capture the decrease in provisions arising from the following changes:  Partial repayment of loan except for the situations described in paragraph 4 below and in the last bullet point of paragraph 2 above;  Decrease in the underlying credit risk regardless of whether there is any change in staging of the loan under IFRS/HKFRS 9;  In the situation where a decrease in the underlying credit risk is coupled with an increase in outstanding loan balance, the portion of decrease in

1 “Change in the underlying credit risk” refers not only the change among the three stages under IFRS/HKFRS 9 but also the factors described in Part II.1.4B and 1.6A of this completion instruction.

MA(BS)1C/P.16 (12/2021) provisions contributed by the decrease in underlying credit risk of existing loan balance is separately reported in this item (Appendix 2). 4. If any partial or full repayments are made to a loan originated or purchased in the same financial year, they are netted in item 1.4A. 5. In the case of revolving credit facilities, repayment is reported in item 1.6B if the loan is fully repaid and the facility is cancelled upon its expiry because the AI has decided (as evidenced in the AI’s credit records) that the facility will not be renewed. 6. If the measurement of impairment of the financial asset changes from general provisions to specific provisions (e.g. from stage 2 to stage 3 under IFRS/HKFRS 9, or vice versa), the release of general provisions for stage 2 should be reported in item 1.6A and the new specific provisions for stage 3 should be reported in item 1.4B (or vice versa). 7. Reporting of unwinding of discounts depends on its impact on profit or loss under the applicable accounting requirements. For unwinding of discounts which is recognised as interest income (e.g. discounts unwind on stage 3 loans under IFRS/HKFRS 9), it should be reported in item 1.8. For other unwinding of discounts which results in changes in impairment charged to profit or loss, it should be reported under item 1.4B/1.6A. 8. If any newly granted loans are subsequently written off in the same financial year, they should be reported in item 1.4A as well as item 1.5. 9. For AIs which adopt IFRS/HKFRS 9 or equivalent standard and have financial years ending on 31 December, they should report in item 1.1 the opening provision balance based on IFRS/HKFRS 9 upon transition to the new standard on 1 January 2018 for the 2018 MA(BS)1C returns. Similar principle applies to AIs with other year-end dates, i.e., report the opening balance of the provision movement based on IFRS/HKFRS 9 or equivalent standard upon transition to the standard.

MA(BS)1C/P.17 (12/2021) Appendix 2 Illustration of the reporting of changes in provisions arising from a combination of changes in loan balance and underlying credit risk (Part II.1 “Changes in provision for bad and doubtful debts”) 1.4A – Report the portion of increase in provisions contributed by the increase in loan balance 1.6A – Report the portion of decrease in provisions contributed by the decrease in underlying credit risk of existing loan balance 1.4A – Report the portion of increase in provisions contributed by the increase in loan balance 1.4B – Report the portion of increase in provisions contributed by the increase in underlying credit risk of existing loan balance 1.6A – Report the total change in provisions arising from the combination of a decrease in loan balance and a decrease in underlying credit risk 1.6B – Report in this item if the decrease in provisions is due to full derecognition of loans other than write-offs 1.4B – Report in this item if the combination of a decrease in loan balance and an increase in the underlying credit risk results in a net increase in provisions 1.6A –Report in this item if the combination of a decrease in loan balance and an increase in the underlying credit risk results in a net decrease in provisions Note: The above diagram is for illustrative purpose only. For details of reporting requirements, please refer to the main text and Appendix 1 of this completion instruction. decreasing Credit risk increasing decreasing Loan balance increasing