Page 407 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 405
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

7.0 generAl DIsclosure for off-BAlAnce sheeT exPosure AnD counTerPArTy creDIT rIsK (“ccr”) (conT’D.)

Islamic derivative financial assets/(liabilities) (cont’d.)
Included within hedging derivatives are derivatives where the Group and the Bank apply hedge accounting. The principal
amount and fair value of derivative where hedge accounting is applied by the Group and Bank are as follows:
Table 19: Islamic derivative financial assets/(liabilities) (cont’d.)
31 December 2021 31 December 2020
contract/ contract/
notional fair value notional fair value
amount Assets liabilities amount Assets liabilities
group and Bank rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

IPRS 1,200,000 - (57,376) 1,200,000 - (107,516)

fair value hedges
Fair value hedges are used by the Group and the Bank to protect against changes in the fair value of financial assets due to
movements in profit rates. The financial instruments hedged for profit rate risk include the Group’s and the Bank’s financing
of customers and investment securities.

For the year ended 31 December 2021, the Group and the Bank:
(i) Recognised a net gain of RM50,139,069 (31 December 2020: net loss of RM54,337,986)on the hedging instrument.
The total net loss on the hedged items attributable to the hedged risk amounted to RM57,692,261 (31 December 2020:
net gain of RM59,900,904); and
(ii) There is no recorded gain from derecognition of fair value of hedged items attributable to hedged risk
(31 December 2020: Nil) as a result of derecognition of the hedged items.