KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 168 KENANGA INVESTMENT BANK BERHAD 8. FINANCIAL INVESTMENTS OTHER THAN THOSE MEASURED AT FVTPL (CONT’D.) (b) Financial instruments at amortised cost (cont’d.): (i) Impairment losses on financial instruments subject to impairment assessment (cont’d.) Debt instrument measured at amortised cost The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s and the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. Details of the Group’s and the Bank’s internal grading system are explained in Note 50(a). 2018 Group and Bank Stage 1 Stage 2 Stage 3 Total Internal rating grade RM’000 RM’000 RM’000 RM’000 Investment grade 100,116 - - 100,116 Non investment grade - 22,000 - 22,000 100,116 22,000 - 122,116 An analysis of changes in the gross carrying amount and the corresponding ECLs is, as follows: 2018 Group and Bank Stage 1 Stage 2 Stage 3 Total Gross carrying amount RM’000 RM’000 RM’000 RM’000 As at 1 January 10,001 28,000 - 38,001 New assets purchased 100,116 - - 100,116 Assets derecognised or matured (excluding write-offs) (10,001) (6,000) - (16,001) As at 31 December 100,116 22,000 - 122,116 2018 Group and Bank Stage 1 Stage 2 Stage 3 Total ECL allowances RM’000 RM’000 RM’000 RM’000 As at 1 January 64 952 - 1,016 Impact of net re-measurement of ECL (64) (92) - (156) As at 31 December - 860 - 860