Page 339 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 337
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

47. fAIR vALue MeAsuReMeNTs (cONT’D.)

(b) financial instruments not carried at fair value (cont’d.)
Total carrying
Level 1 Level 2 Level 3 fair value Amount
Bank RM’000 RM’000 RM’000 RM’000 RM’000

2021
financial assets
Financial investments at
amortised cost - 190,974 - 190,974 107,109
Financing of customers - 13,441,767 6,496,627 19,938,394 20,661,618

financial liabilities
Deposits from customers - 2,541,205 20,613,516 23,154,721 23,128,717
Deposits and placements
of banks and other
financial institutions - - 2,508 2,508 2,520
Subordinated sukuk - 497,013 - 497,013 499,876

2020
financial assets
Financial investments at
amortised cost - 186,424 - 186,424 105,544
Financing of customers - 11,020,267 6,101,168 17,121,435 18,110,202

financial liabilities
Deposits from customers - 2,410,018 19,107,420 21,517,438 21,514,158
Deposits and placements
of banks and other
financial institutions - - 3,863 3,863 3,885
Subordinated sukuk - 252,595 - 252,595 250,642
Senior sukuk - 509,481 - 509,481 502,692

Fair value is the estimated amount at which a financial asset or liability can be exchanged between two (2) parties under
normal market conditions. However, for certain assets such as financing and deposits, the respective fair values are not
readily available as there is no open market where these instruments are traded. The fair values for these instruments are
estimated based on the assumptions depicted below. These methods are subjective in nature, therefore, the fair values
presented may not be indicative of the actual realisable value.

Fair value information has been disclosed for the Group’s and the Bank’s investments in equity instruments that are
carried at cost because fair value cannot be measured reliably. The Group and the Bank do not intend to dispose off this
investment in the foreseeable future.

financing of customers
The fair values of financing of customers not designated as hedged item are estimated based on expected future cash
flows of contractual instalment payments, discounted at applicable and prevailing rates at reporting date offered for
similar facilities to new customers with similar credit profiles. In respect of non-performing financing, the fair values are
deemed to approximate the carrying values, which are net of individual assessment allowance for bad and doubtful
financing.