Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 36 4. Financial instruments (continued) B. Financial risk management (continued) iii. Liquidity risk (continued) Assets held for managing liquidity risk The Group holds a diversified portfolio of cash and high-quality high-liquid securities to support payment obligations and contingent funding in a stressed market environment. The Group’s assets held for managing liquidity risk comprise: ● Cash and balances with central banks; ● Certificates of deposit; ● Government bonds and other securities that are readily acceptable in repurchase agreements with central banks; and ● Secondary sources of liquidity in the form of highly liquid instruments in the Group’s trading portfolios and investment carried at fair value through other comprehensive income. 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. 5. Cash and cash equivalents and statutory reserve 2024 2023 Cash on hand 119,482 74,483 Cash at central banks - current account 229,381 183,149 Cash at other banks 75,784 99,590 Cash and cash equivalents 424,647 357,222 Cash at central banks - statutory reserve 43,004 46,412 Cash and bank balances 467,651 403,634 All cash at other banks have original maturities of less than 3 months. The cash at the central bank-statutory reserve is not available for daily use or day to day operations. 6. Investments with Islamic institutions Investments with Islamic institutions represent placements of a short-term nature carried for a period less than 1 year but more than three months. These investments earn an average profit rate of 4.64% (2023: 5.6%). 7. Investment securities carried at FVTPL 2024 2023 Debt securities- unlisted 10,537 16,645 Equity securities- unlisted 2,503 2,602 Equity securities- listed 2,814 5,132 Total 15,854 24,379