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 321 320 51. 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 2024 Impact on profit or loss 2024 RM'000 Impact on equity* 2024 RM'000 Change in interest rates 2023 Impact on profit or loss 2023 RM'000 Impact on equity* 2023 RM’000 +150 (9,969) (115,905) +150 (10,031) (95,623) -150 9,969 115,905 -150 10,031 95,623 * 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 or loss and equity: 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 51. FINANCIAL RISK MANAGEMENT (CONT’D.) (b) Market risk (cont’d.) (ii) Foreign currency exchange risk (cont’d.) Currency rate sensitivity analysis (cont'd.) The currency exposure as at reporting date as below: Currency 2024 RM'000 2023 RM'000 USD (393) (15,699) SGD (225) 880 GBP 247 1,214 JPY (2,365) (3,136) HKD (8,420) 140 CNY 3,033 80 Others (1,205) 173 (9,328) (16,348) Currency Changes in foreign exchange rates Impact on profit or loss 2024 RM'000 Impact on equity 2024 RM'000 Changes in foreign exchange rates Impact on profit or loss 2023 RM'000 Impact on equity 2023 RM'000 AUD 5% (61) - 5% (1) - CHF 5% (15) - 5% 1 - CNY 5% 152 - 5% 4 - EUR 5% (2) - 5% (4) - GBP 5% 12 - 5% 61 - HKD 5% (421) - 5% 7 - IDR 5% 9 - 5% 1 - JPY 5% (118) - 5% (157) - NZD 5% 7 - 5% 8 - PHP 5% 2 - 5% 2 - SGD 5% (11) - 5% 44 - USD 5% (20) - 5% (785) - Arising from the Group’s investment in the associate company in Saudi Arabia, there is a natural position held in foreign currency exposure in Saudi Riyal. The following shows the impact of a 5% price movement on this position: Currency Changes in foreign exchange rates Impact on profit or loss 2024 RM'000 Impact on equity 2024 RM'000 Changes in foreign exchange rates Impact on profit or loss 2023 RM'000 Impact on equity 2023 RM'000 SAR 5% - (6,820) 5% - (6,038)
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