KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 219 ANNUAL REPORT 2018 42. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group and the Bank enter into various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. As at reporting date, the commitment and contingencies are as follows: Group Bank 2018 Principal amount 2017 Principal amount 2018 Principal amount 2017 Principal amount RM’000 RM’000 RM’000 RM’000 Commitments to extend credit with maturity of less than 1 year: - share margin financing 1,871,277 1,662,114 1,871,277 1,662,114 - corporate loans 25,551 6,485 102,551 80,985 - foreign exchange related contracts 58,155 50,111 58,155 50,111 - equity exchange related contracts 105,036 157,823 105,036 157,823 Commitments to extend credit with maturity of more than 1 year: - corporate loans 97,854 26,000 127,854 56,000 - equity exchange related contracts 2,113 1,460 2,113 1,460 Monies held in trust for client (Note 6) 689,222 728,134 689,222 728,134 Derivative financial assets (Note 9): - dual currency investment - options 13,636 18,114 13,636 18,114 - equity related contracts - options 100,319 111,305 100,319 111,305 - equity related contracts - swap 14,771 75,772 14,771 75,772 Derivative financial liabilities (Note 23): - dual currency investment - options 13,636 18,114 13,636 18,114 - equity related contracts - options 122,122 433,635 122,122 433,635 - equity related contracts - swaps 5,900 - 5,900 - Capital commitment: - Authorised and contracted for 1,112 4,167 1,095 3,943 Investment in equity funds - - 17,854 13,792 3,120,704 3,293,234 3,245,541 3,411,302