DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 78 21. Due to customers, banks and other financial institutions (continued) Due to banks include short and medium term borrowings by the Group under bilateral and multilateral arrangement with maturities ranging from one year to five years. 22. Provisions Included under liabilities are the following provisions: 2018 2017 Funds under management guarantee* 62,491 62,491 Other provision 5,826 5,826 68,317 68,317 * This represents provision related indemnity agreement. As per the indemnity agreement dated 12 April 2011, IICG a related party, acting as Modareb for funds managed by it was induced to purchase certain assets from another related parties for a value which exceeded the fair value by USD 55 million as at that date. DMI has given an unconditional and irrevocable guarantee to IICG funds under management (IICG FUM) for this fair value difference of USD 55 million. This obligation under the indemnity agreement will remain inforce till assets are liquidated and the IICG FUM can request indemnity for USD 55 million during the term of the agreement. 23. Collateralised borrowings Financial assets pledged to secure liabilities: At 31 December 2018, there were collateralised borrowings in aggregate of USD 178.7 million (2017: USD 117.7 million). Cash dividends amounting to USD 25.5 million (2017: USD 21.8 million) on certain shares pledged as collateral was directly received by the lender during the year and adjusted against the outstanding facility amount as per the agreed terms. 24. Net trading income 2018 2017 Income from foreign exchange trading 15,455 12,324 Income from government securities 12,033 14,865 Losses on trading securities (Note 6) (1,315) (1,213) Losses from revaluation (Note 6) (3,104) (2,980) 23,069 22,996 Foreign exchange trading includes gains and losses from spot and forward contracts translated from foreign currency assets and liabilities. 25. Income from investments in financings Income from investment in financing mainly arises from banking subsidiaries in Bahrain and Pakistan.