Page 259 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 5 6 7 Our Numbers 8 257

15. LEASES

15.1 The Group and the Bank as a lessee

The Group and the Bank have leases for leasehold land, building and office equipment. Lease contracts are typically
made for fixed periods of one (1) to three (3) years, but may have extension options.

With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the
statements of financial position as a right-of-use asset and a lease liability.

Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases
contain an option to extend the lease for a further term.
(a) Lease liabilities

Profit rate Goup and Bank
(%) 2024 2023
RM’000 RM’000

Non-current 4.5 36,451 25,415
Current 4.5 9,045 2,863
Current 5.5 - 10,191

45,496 38,469

(b) Lease payments not recognised as a liability

The Group and the Bank have elected not to recognise a lease liability for short-term leases (leases with an
expected term of twelve (12) months or less) or for leases of low-value assets. Payments made under such leases
are expensed on a straight-line basis.

The expenses relating to payments not included in the measurement of the lease liability during the financial year
is as follows:
Goup and Bank
2024 2023
RM’000 RM’000

Expenses relating to leases of low-value assets
(included in administrative expenses) 463 403

As at the reporting date, the Group and the Bank were committed to low-value assets and the total commitment
was RM225,000 (2023: RM237,000).