KENANGA ANNUAL REPORT 2017

50. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (i) Interest rate risk (cont’d.) Bank 2016 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 949,421 – – – – – – 949,421 3.00 Financial assets at fair value through profit or loss – – – – – – 381,588 381,588 4.04 Financial investments available-for-sale 235,165 14,796 70,871 267,431 348,951 490 – 937,704 4.16 Financial investments held-to-maturity – 2,000 – 38,000 – – – 40,000 5.74 Derivative financial assets – – – – – 39,117 – 39,117 Loans, advances and financing 2,020,842 45,045 – – – – – 2,065,887 7.09 Balances due from clients and brokers – – – – – 445,005 – 445,005 Other assets – – – – – 74,909 – 74,909 Other non interest sensitive balances – – – – – 735,377 – 735,377 Total assets 3,205,428 61,841 70,871 305,431 348,951 1,294,898 381,588 5,669,008 Liabilities Deposits from customers 1,914,075 970,635 470,867 – – – – 3,355,577 3.64 Deposits and placement of banks and other financial institutions 530,861 20,093 – – – – – 550,954 3.64 Borrowings 75,200 40,000 – – – – – 115,200 4.25 Obligations on securities sold under repurchase agreements 27,253 – – – – – – 27,253 Derivative financial liabilities – – – – – 47,406 – 47,406 Balances due to clients and brokers – – – – – 474,231 – 474,231 Structured product 17,658 – 6,386 – – – – 24,044 13.68 Other non interest sensitive balances – – – – – 171,837 – 171,837 Total liabilities 2,565,047 1,030,728 477,253 – – 693,474 – 4,766,502 Equity – – – – – 902,506 – 902,506 Total liabilities and shareholders’ equity 2,565,047 1,030,728 477,253 – – 1,595,980 – 5,669,008 On-balance sheet interest sensitivity gap 640,381 (968,887) (406,382) 305,431 348,951 (301,082) 381,588 – Cumulative interest sensitivity gap 640,381 (328,506) (734,888) (429,457) (80,506) (381,588) – – Annual Report 2017 31 December 2017 197 notes to the financial statements