306 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 Additional Information We Are Kenanga Message From Our Leaders Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information 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 2022 Impact on profit or loss 2022 RM’000 Impact on equity* 2022 RM’000 Change in interest rates 2021 Impact on profit or loss 2021 RM’000 Impact on equity* 2021 RM’000 +150 (3,500) (33,302) +150 (2,874) (14,413) -150 3,500 33,302 -150 2,874 14,413 * 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 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 Currency Abbreviation AUD Australian Dollar EUR Euro IDR Indonesian Rupiah CHF Swiss Franc GBP British Pound JPY Japanese Yen CNY Chinese Yuan HKD Hong Kong Dollar NZD New Zealand Dollar PHP Philippine Peso THB Thai Baht SAR Saudi Riyal SGD Singapore Dollar USD US Dollar
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