Page 237 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

5. FINANCIAL INVESTMENTS (CONT’D.)
(iii) Financial investments at amortised cost (cont’d.)

Movements in the allowances for impairment losses on financial investments at amortised cost are as follows for the
Group and the Bank:
Stage 1 Stage 2 Stage 3
Lifetime ECL Lifetime ECL
not credit credit
12-Months ECL impaired impaired Total ECL
Group and Bank RM’000 RM’000 RM’000 RM’000

2023
At 1 January - - 34,185 34,185
Management overlay redesignated - - (2,247) (2,247)
At 31 December - - 31,938 31,938

2022
At 1 January - 39,640 - 39,640
Transfer to Stage 3 - (39,640) 39,640 -
Net writeback - - (5,455) (5,455)
Allowance made (Note 32) - - 6,457 6,457
Management overlay redesignated - - (11,912) (11,912)

At 31 December - - 34,185 34,185

6. ISLAMIC DERIVATIVE FINANCIAL ASSETS/(LIABILITIES)

The table below shows the fair values of Islamic derivative financial instruments, recorded as assets or liabilities, together with
their notional amounts. The notional amounts, recorded gross, is the amount of a derivative’s underlying asset, reference rate
or index and is the basis upon which changes in the value of derivatives are measured. The notional amounts indicate the
volume of transactions outstanding at the year end and are indicative of neither the market risk nor the credit risk.
2023 2022
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

Foreign exchange contracts:
- Currency forwards Less than one year 931,445 362 (16,555) 787,210 936 (20,833)
- Currency swaps Less than one year 1,317,642 12,451 (4,671) 986,752 3,263 (2,251)
- Currency spot Less than one year 38,276 6 (293) 12,468 48 (27)
Total 2,287,363 12,819 (21,519) 1,786,430 4,247 (23,111)

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