KENANGA ANNUAL REPORT 2020

287 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 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 +/- 100 basis points change in interest rates, ceteris paribus, on the Group’s profit or loss and equity. Change in interest rates 2020 Impact on profit or loss 2020 RM’000 Impact on equity * 2020 RM’000 Change in interest rates 2019 Impact on profit or loss 2019 RM’000 Impact on equity 2019 RM’000 +100 (1,943) (12,424) +100 (3,553) (18,240) -100 1,943 12,424 -100 3,553 18,240 * 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: Currency * Changes in foreign exchange Rates Impact on profit or loss 2020 RM’000 Impact on equity 2020 RM’000 Changes in foreign exchange Rates Impact on profit or loss 2019 RM’000 Impact on equity 2019 RM’000 AUD 5% 4 - 5% 63 - CHF 5% 1 - 5% (8) - CNY 5% 2 - 5% (3) - EUR 5% (18) - 5% 22 - GBP 5% 4 - 5% 82 - HKD 5% 7 - 5% 45 - IDR 5% 0.17 - 5% 0.06 -