Bank Islam Integrated Annual Report 2020

39. FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Market risk (continued) (i) Profit rate risk The table below summarises the Group’s and the Bank’s exposure to profit rate risk. The table indicates average profit rates at the reporting date and the periods in which the financial instruments are repriced or mature, whichever is earlier. Banking book Group 2020 Up to 1 month RM’000 >1–3 months RM’000 >3–12 months RM’000 1–5 years RM’000 Over 5 years RM’000 Non–profit sensitive RM’000 Trading book RM’000 Total RM’000 Effective profit rate % Assets Cash and short-term funds and deposits and placements with financial institutions 4,490,732 – – – – 726,005 – 5,216,737 1.37 Financial assets at FVTPL – – – – – – 1,181,200 1,181,200 2.34 Derivative financial assets – – – – – – 61,665 61,665 0.71 Financial assets at FVOCI 79,793 678,405 1,226,955 6,725,858 3,846,980 – – 12,557,991 5.69 Financing, advances and others – non-impaired 50,683,675 442,090 42,052 1,030,556 2,282,468 744,521 – 55,225,362 4.72 – impaired net of allowances* – – – – – (554,727) – (554,727) Other financial assets at amortised cost – – – – – 192,574 – 192,574 Statutory deposits with Bank Negara Malaysia – – – – – 192,425 – 192,425 Total assets 55,254,200 1,120,495 1,269,007 7,756,414 6,129,448 1,300,798 1,242,865 74,073,227 Liabilities Deposits from customers 12,210,156 8,395,068 10,787,258 1,735,439 35,117 17,914,224 – 51,077,262 1.99 Investment accounts of customers 2,482,295 2,231,737 2,534,420 6,801 – 5,113,275 – 12,368,528 1.91 Derivative financial liabilities – – – – – – 105,872 105,872 1.23 Bills and acceptance payable – – – – – 29,621 – 29,621 Recourse obligations on financing sold to Cagamas – – – 1,500,000 – 1,187 – 1,501,187 4.74 Subordinated Sukuk Murabahah – – – – 1,700,000 13,164 – 1,713,164 4.69 Other liabilities – – – – – 1,038,079 – 1,038,079 Lease liabilities 1,409 2,267 9,760 33,686 265,307 – – 312,429 5.70 Total liabilities 14,693,860 10,629,072 13,331,438 3,275,926 2,000,424 24,109,550 105,872 68,146,142 On-balance sheet profit sensitivity gap 40,560,340 (9,508,577) (12,062,431) 4,480,488 4,129,024 (22,808,752) 1,136,993 5,927,085 Off-balance sheet profit sensitivity gap (profit rate swaps) – – – 114,056 – – – 114,056 Total profit sensitivity gap 40,560,340 (9,508,577) (12,062,431) 4,594,544 4,129,024 (22,808,752) 1,136,993 6,041,141 * This is arrived at after deducting impairment allowances from the outstanding gross impaired financing. Notes to the financial statements for the financial year ended 31 December 2020 284 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion