41. FINANCIAL RISK MANAGEMENT Overview The Group’s and the Bank’s business activities involve the use of financial instruments which expose the Group and the Bank to various financial risks, namely credit risk, market risk and liquidity risk. The Group’s and the Bank’s financial risk management is guided by the Group’s Risk Appetite Statement and Risk Management Policies/Guidelines and subject to the oversight by the Board of Directors (“Board”) via the Board Risk Committee (“BRC”). The BRC is assisted by the specific Risk Management Committees namely the Management Risk Control Committee (“MRCC”) and the Asset & Liability Management Committee (“ALCO”). (a) Financial instruments by categories The table in subsequent pages provides an analysis of financial instruments categorised as follows: •• Fair value through profit or loss (“FVTPL”) •• Financial assets at fair value through other comprehensive income (“FVOCI”) •• Other financial assets at amortised cost (“AC”) •• Financial liabilities measured at amortised cost (“FL”) Group 31 December 2022 Carrying amount RM’000 FVTPL RM’000 FVOCI RM’000 AC RM’000 Financial assets Cash and short-term funds and deposits and placements with financial institutions 7,145,114 – – 7,145,114 Financial assets at FVTPL 299,128 299,128 – – Derivative financial assets 123,000 123,000 – – Financial assets at FVOCI 12,093,417 – 12,093,417 – Financial assets at AC 3,055,256 – – 3,055,256 Financing, advances and others 64,901,994 – – 64,901,994 Other financial assets at AC* 578,615 – – 578,615 Statutory deposits with Bank Negara Malaysia 950,508 – – 950,508 89,147,032 422,128 12,093,417 76,631,487 Financial liabilities Deposits from customers 60,707,504 – – 60,707,504 Investment accounts of customers 14,461,439 – – 14,461,439 Deposits and placements of banks and other financial institutions 70,068 – – 70,068 Derivative financial liabilities 137,324 137,324 – – Bills and acceptance payable 22,441 – – 22,441 Recourse obligations on financing sold to Cagamas 3,005,343 – – 3,005,343 Subordinated sukuk and capital securities 2,222,092 – – 2,222,092 Other liabilities 2,070,964 – – 2,070,964 Lease liabilities 295,585 – – 295,585 82,992,760 137,324 – 82,855,436 * Excludes prepayment Financial Statements 327 01 05 03 07 02 06 09 04 08 Bank Islam Malaysia Berhad
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