Page 152 - EXIM-Bank_Annual-Report-2023

EXIM BANk MALAySIA
150 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
Notes to the fiNaNcial statemeNts

10. INSuRANCE CONTRACT/TAkAFuL CERTIFICATE LIABILITIES AND REINSuRANCE CONTRACT ASSETS
(cont’d)

Insurance contract/takaful certificates liabilities under PAA (cont’d)
Reinsurance contract liabilities

Liabilities Liabilities
for remaining for incurred
coverage claims Total
rM’000 rM’000 rM’000
Balance as at 1.1.2022 17,506 740 18,246
Net income or expense from reinsurance contracts held (5,712) 380 (5,332)
Reinsurance finance expense 240 6 246
Premium/contribution paid 44 - 44

Balance as at 31.12.2022/1.1.2023 12,078 1,126 13,204
Net income or expense from reinsurance contracts held (5,459) (813) (6,272)
Reinsurance finance expense 223 - 223
Premium/contribution paid 2,717 - 2,717
Balance as at 31 Dec 2023 9,559 313 9,872

11. DErIvATIvE FINANCIAL INSTruMENTS
The notional amounts, recorded at gross, is the amount of derivatives’ 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 not indicative of the market risk nor the credit risk.
The following table shows the fair value of derivative financial instruments recorded as assets or liabilities together with their
notional amounts. Derivative assets and derivative liabilities are disclosed on a gross basis as it is the Bank’s practice to settle
those derivative on a gross basis.

As at 31 December 2023, the Bank has entered into the following derivative financial instruments:
Group and Bank
2023 2022
Fair Value Notional Fair Value Notional
Assets Liabilities Amount Assets Liabilities Amount
rM’000 rM’000 rM’000 rM’000 rM’000 rM’000
Derivatives used in fair value hedges
Interest/profit rate swaps - 141,633 2,065,500 - 181,026 1,975,500

Cross currency interest/profit rate swap - - - 15,887 - 504,426

Derivative held for trading
Forward foreign exchange contract 63 1,641 102,591 - 2,878 180,173
Total 63 143,274 2,168,091 15,887 183,904 2,660,098