Kenanga Investment Bank Berhad Annual Report 2021 306 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 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 +/- 150 basis points change in interest rates, ceteris paribus, on the Group’s profit or loss and equity. Change in interest rates 2021 Impact on profit or loss 2021 RM’000 Impact on equity* 2021 RM’000 Change in interest rates# 2020 Impact on profit or loss 2020 RM’000 Impact on equity 2020 RM’000 +150 (2,874) (14,413) +150 (2,914) (19,396) -150 2,874 14,413 -150 2,914 19,396 * exclude tax impact # Changes in interest restated to +150 basis points (“bps”) or -150 bps (2020: +100 bps/-100pbs) in order to be consistent with regulatory reporting of the interest rate or rate of return risk in the banking book standardised measurement approach. (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 Foreign Exchange Proprietary Trading Policy. Currency rate sensitivity analysis The following table shows the impact of a 5% movement of MYR, ceteris paribus, on the Group’s profit/loss: Foreign currency is denoted in the table below: Currency Abbreviation Currency Abbreviation AUD Australian Dollar HKD Hong Kong Dollar CHF Swiss Franc THB Thai Baht CNY Chinese Yuan USD US Dollar PHP Philippine Peso IDR Indonesian Rupiah SGD Singapore Dollar JPY Japanese Yen EUR Euro NZD New Zealand Dollar GBP British Pound SAR Saudi Arabian Riyal Notes to the Financial Statements 31 December 2021
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