Contents - Equity Bank Group

Notes to the Financial StatementsFor the year ended 31st December 200733. Foreign currency exposureCurrency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The boardof directors has set limits on foreign currency positions. The foreign currency positions are monitored on daily basis and hedgingstrategies used to ensure that positions are maintained within the established limits. The amounts below summarize the foreigncurrency exposure position as at 31 December 2007.As at 31 December 2007 Kshs USD GBP Euro Zar JPY Others KshsTotalIn million of Kenya ShillingsAssetsCash and cash equivalents 9,075 2,751 81 81 6 - 2 11,996Loans and advances to customers 21,553 283 - - - - - 21,836Investment securities 13,543 - - - - - - 13,543Investment in associates 443 - - - - - - 443Property and equipment 2,607 - - - - - - 2,607Intangible assets 224 - - - - - - 224Other assets 2,503 14 - - - - - 2,51749,948 3,048 81 81 6 - 2 53,166Equity and liabilitiesCustomer deposits 31,199 229 82 - 25 1 - 31,536Current Tax Liabilities 209 - - - - - - 209Deferred Tax Liabilities 45 - - - - - - 45Long Term Borrowings 1,557 2,964 - - - - - 4,521Other Liabilities 1,767 78 1 2 - - - 1,848Shareholders funds 15,007 - - - - - - 15,007Total liabilities and shareholders funds 49,784 3,271 83 2 25 1 - 53,166Net balance sheet position 164 (223) (2) 79 (19) (1) 2 -As at 31 December 2006Total Assets 19,365 447 66 145 1 - - 20,024Total Liabilities 19,484 538 - 2 - - - 20,024Net Balance Sheet Position (119) (91) 66 143 1 - - -662007 Annual Report and Financial Statements