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 273 272 44. CONTINGENT LIABILITIES Group and Bank 2024 RM’000 2023 RM’000 On 27 November 2019, the Bank was served with a sealed Writ of Summons and Statement of Claim filed by Lai Sing Foo (“the Plaintiff”). The Plaintiff is alleging that, inter alia, the second (2nd) Defendant (who is a Dealer’s Representative (“DR”) of KIBB has arranged for the Plaintiff to purchase shares of a public listed company with a promise to buy back at a higher price from the third (3rd) Defendant (a third party). The Plaintiff alleges that the 3rd Defendant has failed to buy back the said shares which caused the Plaintiff to suffer losses and claims, inter alia, the difference between the sale proceeds of the said shares and RM3.6 million. The Plaintiff’s claims against KIBB are on the basis that, inter alia, the 2nd Defendant is a DR with KIBB. In this regard, KIBB will contest the Plaintiff’s claim in the Court. The Plaintiff, KIBB and the 3rd Defendant presented their evidence during the trial from 11 to 13 August 2021. On 3 November 2021, the High Court dismissed the Plaintiff’s claim against KIBB and the 3rd Defendant with costs of RM25,000 to be paid to each. The Plaintiff’s claim against the 2nd Defendant was allowed with costs of RM25,000 to be paid to the Plaintiff. On 25 November 2021, the Plaintiff filed a Notice of Appeal in the Court of Appeal against the High Court’s decision. On 21 August 2024, the Court of Appeal dismissed the Plaintiff’s appeal against KIBB and awarded costs of RM15,000 to KIBB. - 3,600 45. OPERATING LEASE ARRANGEMENTS A summary of the sub-lease receipts expected to be received under non-cancellable sublease are as follows: Group Bank 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 Future minimum sub-lease receipts: Subsidiaries - - 2,499 2,886 External parties 406 765 406 765 406 765 2,905 3,651 46. DIVIDEND During the financial year, an interim single tier dividend of 7.0 sen (2023 interim single tier dividend: 6.0 sen) per ordinary share on 725,083,299 ordinary shares (2023: 726,454,299 ordinary shares) in respect of the financial year ended 31 December 2023, which amounted to RM50,755,831 (2023: RM43,587,258) was paid on 16 April 2024. Subsequent to the financial year end, on 26 February 2025, the Directors have declared an interim single tier dividend of 8.00 sen per ordinary share in respect of the financial year ended 31 December 2024 which amounted to total dividend payable of approximately RM58,861,008. This is computed based on issued and paid-up capital as at 31 December 2024 of 735,762,599 ordinary shares. The actual amount of dividend to be paid will depend on the number of shares in issue at the date of entitlement. The financial statements for the current financial year do not reflect this dividend. Such dividend will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2025. 47. OFFSETTING OF FINANCIAL INSTRUMENTS Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements are as follows: Gross amounts of recognised financial asset/ liability RM’000 Gross amounts of recognised financial asset/ liability set off in the statements of financial position RM’000 Net amounts of recognised financial assets presented in the Related accounts not set off in the statements of financial position Net amount RM’000 statements of financial position RM’000 Financial instruments RM’000 Cash collateral received RM’000 Group 2024 Balances due from clients and brokers (Note 10) 874,402 (419,455) 454,947 2,572,085 195,966 - Balances due to clients and brokers (Note 22) 1,792,527 (780,089) 1,012,438 - - 1,012,438 2023 Balances due from clients and brokers (Note 10) 1,214,996 (644,281) 570,715 2,585,311 195,677 - Balances due to clients and brokers (Note 22) 1,764,015 (989,000) 775,015 - - 775,015 Bank 2024 Balances due from clients and brokers (Note 10) 874,292 (419,455) 454,837 2,572,085 195,966 - Balances due to clients and brokers (Note 22) 1,140,721 (780,088) 360,633 - - 360,633 2023 Balances due from clients and brokers (Note 10) 1,214,917 (644,281) 570,636 2,585,311 195,677 - Balances due to clients and brokers (Note 22) 1,333,719 (989,000) 344,719 - - 344,719
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