KENANGA ANNUAL REPORT 2017

50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) (i) Credit quality by class of financial assets as at 31 December 2016 (cont’d.) Group Neither past due nor impaired Strong credit profile RM’000 Satisfactory risk RM’000 Sub- standard RM’000 Non rated RM’000 Default/ impaired RM’000 Past due but not impaired RM’000 *Individually impaired RM’000 Total RM’000 Cash and bank balances 1,227,601 – – – – – – 1,227,601 Statutory deposit with Bank Negara Malaysia 99,504 – – – – – – 99,504 Financial assets at fair value through profit or loss Corporate Bonds 45,035 – – – – – – 45,035 Corporate Bills 84,639 – – – – – – 84,639 Islamic Corporate Sukuk 14,668 – – – – – – 14,668 Islamic Corporate Bills 24,969 – – – – – – 24,969 Unit Trust – – – 6,660 – – – 6,660 Unquoted private debt securities outside Malaysia – – – 1,067 – – – 1,067 Net loans, advances and financing Term loans – 320,181 50,027 – – – – 370,208 Islamic term loans – 85,125 50,015 – – – – 135,140 Share margin financing 454,513 774,089 142,391 117,993 1,735 – (1,266) 1,489,455 Others 12,773 60,827 – 37,613 869 – (869) 111,213 Financial investments available-for- sale Malaysian Government Securities 19,566 – – – – – – 19,566 Malaysian Government Investment Certificates 58,428 – – – – – – 58,428 Islamic Corporate Sukuk 495,010 29,742 – – – – – 524,752 Corporate Bonds 124,522 – – – – – – 124,522 Negotiable Instruments of Deposits 50,000 – – – – – – 50,000 Islamic Negotiable Instruments of Deposits 149,890 – – – – – – 149,890 Sukuk Perumahan Kerajaan 10,056 – – – – – – 10,056 Unquoted equities – – – 490 – – – 490 Financial investments held-to- maturity Islamic Corporate Sukuk – 10,000 – 30,000 – – – 40,000 Derivative financial assets – – – 39,117 – – – 39,117 Balances due from clients and brokers – 439,455 – – 31,728 557 (26,735) 445,005 Other assets 209,872 – – – 2,987 618 (3,605) 209,872 Total 3,081,046 1,719,419 242,433 232,940 37,319 1,175 (32,475) 5,281,857 * Impaired loan/financing and outstanding balance due from clients and brokers are loan/financing and balance due under contractual term which have been overdue or are judgementally triggered as impaired. Kenanga Investment Bank Berhad 31 December 2017 186 notes to the financial statements