KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 261 ANNUAL REPORT 2018 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (i) Interest rate risk (cont’d.) Bank Up to 1 month >1-3 months >3-12 months >1-5 years Over 5 years Non interest sensitive Trading book Total Effective interest rate 2018 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 % Assets Cash and bank balances 846,810 125,000 - - - 144,307 - 1,116,117 3.31 Financial assets at fair value through profit or loss - - - - - - 188,576 188,576 4.35 Financial instruments at fair value through other comprehensive income (“FVOCI”) 679,164 - 180,278 401,405 399,075 1,754 - 1,661,676 4.10 Financial instruments at amortised cost - 8,716 - 62,461 50,079 - - 121,256 4.96 Derivative financial assets - - - - - 71,992 - 71,992 Loans, advances and financing* 1,956,628 19,077 - - - 60 - 1,975,765 7.61 Balances due from clients and brokers - - - - - 296,323 - 296,323 Other assets - - - - - 85,413 - 85,413 Other non interest sensitive balances - - - - - 783,602 - 783,602 Total assets 3,482,602 152,793 180,278 463,866 449,154 1,383,451 188,576 6,300,720 Liabilities Deposits from customers 2,568,521 902,512 942,755 200,000 - - - 4,613,788 3.72 Deposits and placement of banks and other financial institutions 95,016 - - - - - - 95,016 3.72 Borrowings 52,800 - - - 25,000 - - 77,800 4.92 Obligations on securities sold under repurchase agreements 83,067 - - - - - - 83,067 Derivative financial liabilities - - - - - 12,693 - 12,693 Balances due to clients and brokers - - - - - 221,083 - 221,083 Structured product 13,636 - 23,586 - - - - 37,222 14.50 Other non interest sensitive balances - - - - - 232,821 - 232,821 Total liabilities 2,813,040 902,512 966,341 200,000 25,000 466,597 - 5,373,490 Equity - - - - - 927,230 - 927,230 Total liabilities and shareholders’ equity 2,813,040 902,512 966,341 200,000 25,000 1,393,827 - 6,300,720 On-balance sheet interest sensitivity gap 669,562 (749,719) (786,063) 263,866 424,154 (10,376) 188,576 - Cumulative interest sensitivity gap 675,603 (74,116) (860,179) (596,313) (172,159) (182,535) 6,041 6,041