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.) Bank 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 949,421 – – – – – – 949,421 Statutory deposit with Bank Negara Malaysia 99,504 – – – – – – 99,504 Financial assets at fair value through profit or loss Corporate Bills 84,639 – – – – – – 84,639 Islamic Corporate Bills 24,969 – – – – – – 24,969 Corporate Bonds 45,035 – – – – – – 45,035 Islamic Corporate Sukuk 14,668 – – – – – – 14,668 Unquoted private debt securities outside Malaysia – – – 1,067 – – – 1,067 Net loans, advances and financing Term loans 15,219 356,693 50,027 – – – – 421,939 Islamic term loans – 105,349 50,015 – – – – 155,364 Share margin financing 454,513 774,089 142,391 117,993 1,735 – (1,266) 1,489,455 Financial investments available-for- sale Malaysian Government Securities 19,566 – – – – – – 19,566 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 54,537 – – – 2,987 618 (3,605) 54,537 Total 2,649,977 1,715,328 242,433 188,667 36,450 1,175 (31,606) 4,802,424 * 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 188 notes to the financial statements