KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 173 ANNUAL REPORT 2018 10. LOANS, ADVANCES AND FINANCING (CONT’D.) 10.1 Movements in impaired loans, advances and financing (“Impaired loans”) (cont’d.) Group Bank 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 10.1.1 Impaired loans by Geographical Distribution Outside Malaysia 47,205 - 47,205 - Malaysia 11,863 2,737 11,078 1,910 Gross impaired loans 59,068 2,737 58,283 1,910 10.1.2 Impaired loans by Purpose Working capital 785 827 - - Purchase of securities 58,283 1,910 58,283 1,910 59,068 2,737 58,283 1,910 10.2 Impairment allowance for loans, advances and financing are as follows: (a) Term loans and subordinated term loan The tables below show 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 ECL allowances. Details of the Group’s and the Bank’s internal grading system are explained in Note 50(a). 2018 2017 Group Stage 1 Stage 2 Stage 3 Total Total Internal rating grade RM’000 RM’000 RM’000 RM’000 RM’000 Performing: Strong 3,840 - - 3,840 - Satisfactory 433,965 - - 433,965 488,750 Substandard 110,060 6,417 - 116,477 100,050 Non-performing: Default - - - - - Total 547,865 6,417 - 554,282 588,800 2018 2017 Bank Stage 1 Stage 2 Stage 3 Total Total Internal rating grade RM’000 RM’000 RM’000 RM’000 RM’000 Performing: Strong 3,840 - - 3,840 - Satisfactory 467,273 - - 467,273 524,689 Substandard 110,060 6,417 - 116,477 100,050 Non-performing: Default - - - - - Total 581,173 6,417 - 587,590 624,739