KENANGA ANNUAL REPORT 2019

279 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (i) Interest rate risk (cont’d.) Interest rate sensitivity analysis The following table demonstrates the impact of a +/- 100 basis points change in interest rates, ceteris paribus, on the Group’s profit or loss and equity. Change in Interest Rates 2019 Impact on Profit or Loss 2019 Impact on Equity* 2019 Change in Interest Rates 2018 Impact on Profit or Loss 2018 Impact on Equity 2018 RM’000 RM’000 RM’000 RM’000 +100 (3,553) (18,240) +100 (2,487) (34,101) -100 3,553 18,240 -100 2,487 34,101 * exclude tax impact. (ii) Foreign currency exchange risk Foreign currency risk is the risk of financial loss due to adverse movements in foreign exchange rates. The Group and the Bank are exposed to currency risk primarily through trading activities that are governed by the FX Proprietary Trading Policy.