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Funding approach
Sources of liquidity are regularly
reviewed to maintain a diversification
by currency, geography, provider,
product and term.
Assets available to meet liabilities
and to cover outstanding loan
commitments include cash and
bank balances; loans and advances
to banks; and loans and advances
to customers. In the normal course
of business, a proportion of
customer loans contractually
repayable within one year will be
extended. In addition, certain assets
have been pledged to secure
liabilities. The Group would also be
able to meet unexpected net
cash outflows by selling strategic
investments,
securities
and
accessing additional funding
sources such as undrawn facilities.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
4. Financial instruments
(continued)
43
Dar Al-Maal Al-Islami Trust
Annual Report 2011
Derivative liabilities
The Group’s derivatives that will be settled on a net basis include over-
the-counter (OTC) currency options, currency futures, currency forwards and
exchange traded currency options. The table below analyses the Group’s
derivative financial instruments that will be settled on a net basis into relevant
maturity groupings based on the remaining period at the date of the
consolidated statement of financial position to the contractual maturity date. The
amounts disclosed in the table are the contractual undiscounted cash flows.
Up to
One-three Three-twelve One-five
Total
As at 31 December 2011
one month months
months
years
Derivatives held for trading:
- Foreign exchange derivatives
- 14,594 17,854 74,030 106,477
Derivatives held for hedging:
- Foreign exchange derivatives
-
(337)
(39)
-
(376)
As at 31 December 2010
Derivatives held for trading:
- Foreign exchange derivatives
-
-
8,359 19,286 27,645
The Group’s derivatives that will be settled on a gross basis include foreign
exchange derivatives i.e. currency forward, currency swaps. The table below
analyses the Group’s derivative financial assets that will be settled on a gross
basis into relevant maturity groupings based on the remaining period at the date
of the consolidated statement of financial position to the contractual maturity
date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
Up to
One-three Three-twelve One-five
Total
As at 31 December 2011
one month months
months
years
Derivatives held for trading:
- Foreign exchange derivatives
- Outflow
-
9,578 32,427 179,433 221,438
- Inflow
- (11,169) (30,000) (200,000) (241,169)
As at 31 December 2010
Derivatives held for trading:
- Foreign exchange derivatives
- Outflow
-
-
-
-
-
- Inflow
-
476 7,814 9,240 17,530