KENANGA ANNUAL REPORT 2017

50. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (i) Interest rate risk (cont’d.) Bank 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 892,544 200,000 – – – – – 1,092,544 3.09 Financial assets at fair value through profit or loss – – – – – – 549,735 549,735 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 2,139,979 40,101 – – – – – 2,180,080 7.12 Balances due from clients and brokers – – – – – 494,883 – 494,883 Other assets – – – – – 66,582 – 66,582 Other non interest sensitive balances – – – – – 765,170 – 765,170 Total assets 3,147,536 246,101 126,672 440,160 359,833 1,394,518 549,735 6,264,555 Liabilities Deposits from customers 2,482,622 1,410,081 385,445 – – – – 4,278,148 3.54 Deposits and placement of banks and other financial institutions 210,762 – – – – – – 210,762 3.54 Borrowings 64,000 – – – 5,000 – – 69,000 4.19 Obligations on securities sold under repurchase agreements 74,993 – – – – – – 74,993 Derivative financial liabilities – – – – – 36,174 – 36,174 Balances due to clients and brokers – – – – – 416,960 – 416,960 Structured product 19,114 – 27,847 – – – – 46,961 12.04 Other non interest sensitive balances – – – – – 197,394 – 197,394 Total liabilities 2,851,491 1,410,081 413,292 – 5,000 650,528 – 5,330,392 Equity – – – – – 934,163 – 934,163 Total liabilities and shareholders’ equity 2,851,491 1,410,081 413,292 – 5,000 1,584,691 – 6,264,555 On-balance sheet interest sensitivity gap 296,045 (1,163,980) (286,620) 440,160 354,833 (190,173) 549,735 – Cumulative interest sensitivity gap 296,045 (867,935) (1,154,555) (714,395) (359,562) (549,735) – – Kenanga Investment Bank Berhad 31 December 2017 196 notes to the financial statements