NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 4. Management of insurance and financial risks (continued) (c) Financial risk (continued) (i) Market risk (continued) (c) Foreign currency risk (continued) The Group’s foreign currency risk exposure is closely tracked and the net exposure is minimised through monthly rebalancing. Based on monthly volatilities, management estimates ±2% (2017: ±2%) change in the relevant currency risk to be reasonably possible at the reporting date. Sensitivity for changes in risk variable that was reasonably possible is as follows: Currency 2018 Impact on net operating surplus $’000 Impact on equity $’000 USD 2% strengthening (19,632) 27,526 2% weakening 19,632 (27,526) EUR 2% strengthening (14,613) 13,099 2% weakening 14,613 (13,099) HKD 2% strengthening 241 * 2% weakening (241) * GBP 2% strengthening (1,342) 324 2% weakening 1,342 (324) JPY 2% strengthening (1,672) 307 2% weakening 1,672 (307) * less than $1,000 Currency 2017 Impact on net operating surplus $’000 Impact on equity $’000 USD 2% strengthening (14,331) 26,931 2% weakening 14,331 (26,931) EUR 2% strengthening (14,796) 12,195 2% weakening 14,796 (12,195) HKD 2% strengthening (10) 654 2% weakening 10 (654) GBP 2% strengthening (1,404) 349 2% weakening 1,404 (349) JPY 2% strengthening (2,067) 228 2% weakening 2,067 (228) 79 2018 ANNUAL REPORT