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Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION Year ended 31 December 2020 H. PILLAR 3 DISCLOSURE (CONTINUED) Template CC1: Composition of regulatory capital As at 31 December 2020 Amount USD'000 Source based on reference numbers/letters of the balance sheet under the regulatory scope of consolidation (Template CC2) CET1 capital: instruments and reserves 1 Directly issued qualifying CET1 capital instruments plus any related share premium 670,000 (1) 2 Retained earnings 354,042 (2) 3 Disclosed reserves 35 (3) 4 Directly issued capital subject to phase-out arrangements from CETI (only applicable to non-joint stock companies) Not applicable Not applicable 5 Minority interests arising from CET1 capital instruments issued by consolidated bank subsidiaries and held by third parties (amount allowed in CET1 capital of the consolidation group) 6 CET1 capital before regulatory deductions 1,024,077 CET1 capital: regulatory deductions 7 Valuation adjustments 61 8 Goodwill (net of associated deferred tax liabilities) 9 Other intangible assets (net of associated deferred tax liabilities) 10 Deferred tax assets (net of associated deferred tax liabilities) 7,801 (4) 11 Cash flow hedge reserve 12 Excess of total EL amount over total eligible provisions under the IRB approach 13 Credit-enhancing interest-only strip, and any gain-on-sale and other increase in the CET1 capital arising from securitization transactions 14 15 16 Gains and losses due to changes in own credit risk on fair valued liabilities Defined benefit pension fund net assets (net of associated deferred tax liabilities) Investments in own CET1 capital instruments (if not already netted off paid-in capital on reported balance sheet) 17 Reciprocal cross-holdings in CET1 capital instruments 18 Insignificant LAC investments in CET1 capital instruments issued by financial sector entities that are outside the scope of regulatory consolidation (amount above 10% threshold) 19 Significant LAC investments in CET1 capital instruments issued by financial sector entities that are outside the scope of regulatory consolidation (amount above 10% threshold) 20 Mortgage servicing rights (net of associated deferred tax liabilities) Not applicable Not applicable 21 Deferred tax assets arising from temporary differences (net of associated deferred tax liabilities) Not applicable Not applicable 22 Amount exceeding the 15% threshold Not applicable Not applicable 23 of which: significant investments in the ordinary share of financial sector entities Not applicable Not applicable 24 of which: mortgage servicing rights Not applicable Not applicable 25 of which: deferred tax assets arising from temporary differences Not applicable Not applicable 26 National specific regulatory adjustments applied to CET1 capital 26a Cumulative fair value gains arising from the revaluation of land and buildings (own-use and investment properties) 26b Regulatory reserve for general banking risks 17,154 12 79
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