KENANGA ANNUAL REPORT 2017

9. DERIVATIVE FINANCIAL ASSETS Group and Bank 2017 RM’000 2016 RM’000 At fair value Dual currency investment – Options 118 45 Equity related contracts – Options 64,820 33,498 Equity related contracts – Swap 2,455 5,574 67,393 39,117 Contract/Notional amount Dual currency investment – Options 18,114 17,407 Equity related contracts – Options 111,305 93,636 Equity related contracts – Swap 75,772 57,262 205,191 168,305 10. LOANS, ADVANCES AND FINANCING Group Bank 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Term loans 588,800 505,348 614,478 562,084 Share margin financing 1,557,649 1,490,721 1,557,649 1,490,721 Others 51,985 112,082 – – Subordinated term loan* – – 10,261 15,219 Gross loans, advances and financing 2,198,434 2,108,151 2,182,388 2,068,024 Allowance for impairment on loans, advances and financing – Individual allowance (2,264) (2,135) (1,441) (1,266) – Collective allowance (669) (432) (867) (871) (2,933) (2,567) (2,308) (2,137) Net loans, advances and financing 2,195,501 2,105,584 2,180,080 2,065,887 * Subordinated term loan to a subsidiary The subordinated loan granted to a subsidiary company, Kenanga Futures Sdn Bhd (formerly known as Kenanga Deutsche Futures Sdn Bhd), is unsecured with effective interest rate of 5.70% per annum (FYE16: 5.88%) and is repayable by November 2021. Kenanga Investment Bank Berhad 31 December 2017 124 notes to the financial statements