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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
4. Financial instruments
(continued)
39
Dar Al-Maal Al-Islami Trust
Annual Report 2011
Profit rate sensitivities
At 31 December 2011 if the US dollar market rates had been 34 (2010: 34)
basis points higher/lower with all other variables held constant, post-tax profit
for the year would have been $0.5 million (2010: $0.7 million) higher/lower,
mainly as a result of lower/higher expense on US dollar denominated financings
and borrowings.
At 31 December 2011 if the Euro market rates had been 47 (2010: 27) basis
points higher/lower with all other variables held constant, post-tax profit for the
year would have been $1.9 million (2010: $1.1 million) higher/lower, mainly
as a result of lower/higher expense on Euro denominated borrowings.
At 31 December 2011 if the Pakistani rupee market rates had been 1 (2010:
18) basis points higher/lower with all other variables held constant, post-
tax profit for the year would have been $0.1 million (2010: $1.7 million)
higher/lower, mainly as a result of lower/higher expense on Pakistani rupee
denominated financings and borrowings.
At 31 December 2011 if the Bahraini dinar market rates had been 24 (2010:
20) basis points higher/lower with all other variables held constant, post-
tax profit for the year would have been $1.3 million (2010: $1.1 million)
higher/lower, mainly as a result of lower/higher expense on Bahraini dinar
denominated borrowings.
At 31 December 2011 if the United Arab Emirates dinar market rates had been
7 (2010: 157) basis points higher/lower with all other variables held constant,
post-tax profit for the year would have been $0.2 million (2010: $5.0 million)
higher/lower, mainly as a result of lower/higher expense on United Arab
Emirates dinar denominated borrowings.
The sensitivity analysis above does not include the available-for-sale portfolio
for which fair value adjustments impact the fair value reserve in the statement
of comprehensive income.
As at 31 December 2011
USD
EURO
PKR
BHD
AED
Total profit rate exposure
in the consolidated statement
of financial position
146,214 393,940 973,819 543,034 319,337
Reasonable shift
0.34% 0.47% 0.01% 0.24% 0.07%
Total effect on income
497
1,852
92
1,276
224
As at 31 December 2010
Total profit rate exposure
in the consolidated statement
of financial position
198,767 407,203 970,986 545,848 315,977
Reasonable shift
0.34% 0.27% 0.18% 0.20% 1.57%
Total effect on income
676
1,099
1,701
1,084
4,961
The basis for calculation of the reasonable shift is arrived at by comparing the
interbank lending rate at the beginning and the end of the period.