KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED SHAREHOLDERS’ INFORMATION NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 FINANCIAL STATEMENTS ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 239 238 17. INTANGIBLE ASSETS (CONT’D.) Group Bank 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 (d) Computer software and work-in-progress (i) Computer software Cost At beginning of the financial year 75,882 65,153 70,677 60,994 Transfer * 38 (21) - - Disposal of a subsidiary - (58) - - Additions 17,728 8,507 8,224 7,382 Reclassification 4,081 2,384 4,081 2,384 Disposals/write-off (7,541) (83) (6,987) (83) At end of the financial year 90,188 75,882 75,995 70,677 Accumulated amortisation At beginning of the financial year 49,319 42,170 44,771 38,637 Disposal of a subsidiary - (25) - - Amortisation (Note 34) 8,640 7,225 7,082 6,185 Disposals/write-off (1,995) (51) (1,441) (51) At end of the financial year 55,964 49,319 50,412 44,771 Net carrying amount 34,224 26,563 25,583 25,906 * Transfer from/(to) property, plant and equipment. (ii) Work-in-progress Cost At beginning of the financial year 6,724 5,290 4,800 3,366 Addition 5,979 3,818 3,742 3,818 Reclassification (4,081) (2,384) (4,081) (2,384) Disposals/write-off (1,682) - (1,682) - At end of the financial year 6,940 6,724 2,779 4,800 Accumulated impairment loss At beginning of the financial year 195 - 195 - Impaired loss charged - 195 - 195 At end of the financial year 195 195 195 195 Net carrying amount 6,745 6,529 2,584 4,605 17. INTANGIBLE ASSETS (CONT’D.) Group Bank 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 (e) Trading and clearing rights for derivatives broking Carrying amount At beginning/end of the financial year 416 416 - - (f) Client relationships Carrying amount At beginning of the financial year 2,405 2,834 - - Amortisation (Note 34) (446) (429) - - At end of the financial year 1,959 2,405 - - (g) Impairment test on intangible assets Goodwill and client relationships Goodwill and client relationships have been allocated to the following CGUs: Group 2024 RM’000 2023 RM’000 Stockbroking 147,459 147,459 Investment banking 55,651 55,651 Investment management 39,876 40,322 242,986 243,432 Clients relationships - Intangible asset relating to client relationships arising from the acquisition of one of the Bank’s subsidiary operations is allocated to the unit trust and asset management (investment management) CGU. Merchant banking licence - Merchant banking licence which is allocated to the Bank’s stockbroking and investment banking CGUs represents contribution to BNM for a licence to carry on merchant banking business to transform the Bank from a Universal Broker into an Investment Bank.
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