KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 175 ANNUAL REPORT 2018 10. LOANS, ADVANCES AND FINANCING (CONT’D.) 10.2 Impairment allowance for loans, advances and financing are as follows (cont’d.): (b) Share margin financing 2018 2017 Group and Bank Stage 1 Stage 2 Stage 3 Total Total Internal rating grade RM’000 RM’000 RM’000 RM’000 RM’000 Performing: Strong 442,927 - - 442,927 485,238 Satisfactory 709,054 30,417 - 739,471 803,539 Substandard 119,458 - - 119,458 135,678 Non-performing: Default - - 58,284 58,284 1,910 Non-rated 59,477 - - 59,477 131,284 Total 1,330,916 30,417 58,284 1,419,617 1,557,649 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share margin financing 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 1,557,649 - - 1,557,649 New assets originated 945,207 - - 945,207 Assets derecognised or repaid (excluding write-offs) (1,097,143) - - (1,097,143) Transfers of stages (88,701) 30,417 58,284 - Effects of excess of cash collateral 13,904 - - 13,904 As at 31 December 1,330,916 30,417 58,284 1,419,617 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 - - 1,441 1,441 Net addition - 8,847 21,253 30,100 Amount written off - - (1,441) (1,441) As at 31 December - 8,847 21,253 30,100