KENANGA ANNUAL REPORT 2017

50. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (i) Interest rate risk (cont’d.) Group 2017 Up to 1 month RM’000 >1-3 months RM’000 >3-12 months RM’000 >1-5 years RM’000 Over 5 years RM’000 Non interest sensitive RM’000 Trading book RM’000 Total RM’000 Effective interest rate % Assets Cash and bank balances 1,116,959 230,558 – – – – – 1,347,517 3.09 Financial assets at fair value through profit or loss – – – – – – 557,568 557,568 4.03 Financial investments available-for-sale 115,013 – 116,671 418,160 359,833 490 – 1,010,167 4.05 Financial investments held-to-maturity – 6,000 10,001 22,000 – – – 38,001 5.63 Derivative financial assets – – – – – 67,393 – 67,393 Loans, advances and financing 2,135,497 41,303 10,496 8,205 – – – 2,195,501 7.12 Balances due from clients and brokers – – – – – 494,883 – 494,883 Other assets – – – – – 118,417 – 118,417 Other non interest sensitive balances – – – – – 663,134 – 663,134 Total assets 3,367,469 277,861 137,168 448,365 359,833 1,344,317 557,568 6,492,581 Liabilities Deposits from customers 2,448,389 1,400,080 385,445 – – – – 4,233,914 3.54 Deposits and placement of banks and other financial institutions 210,762 – – – – – – 210,762 3.54 Borrowings 82,000 3,000 – – 5,000 – – 90,000 4.56 Obligations on securities sold under repurchase agreements 74,993 – – – – – – 74,993 Derivative financial liabilities – – – – – 36,174 – 36,174 Balances due to clients and brokers – – – – – 624,612 – 624,612 Structured product 19,114 – 27,847 – – – – 46,961 12.04 Other non interest sensitive balances – – – – – 283,699 – 283,699 Total liabilities 2,835,258 1,403,080 413,292 – 5,000 944,485 – 5,601,115 Equity – – – – 891,466 – 891,466 Non-controlling interest – – – – – – – – Total liabilities and shareholders’ equity 2,835,258 1,403,080 413,292 – 5,000 1,835,951 – 6,492,581 On-balance sheet interest sensitivity gap 532,211 (1,125,219) (276,124) 448,365 354,833 (491,634) 557,568 – Cumulative interest sensitivity gap 532,211 (593,008) (869,132) (420,767) (65,934) (557,568) – – Kenanga Investment Bank Berhad 31 December 2017 194 notes to the financial statements