KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 180 KENANGA INVESTMENT BANK BERHAD 11. BALANCES DUE FROM CLIENTS AND BROKERS Group and Bank 2018 2017 RM’000 RM’000 Balances due from clients and brokers 310,778 516,250 Less: Allowance for ECL/impairment (14,455) (21,367) 296,323 494,883 11.1 ECL allowance for balance due from clients and brokers are as follows: An analysis of changes in the ECL allowances in relation to balances due from clients and brokers is as follows: Group and Bank Non-Credit Impaired Credit- Impaired Total ECL allowances RM’000 RM’000 RM’000 As at 31 December 2017 1,516 19,851 21,367 Less: Interest in suspense * - (6,947) (6,947) As at 1 January 2018 1,516 12,904 14,420 Net addition 103 218 321 Assets derecognised or repaid (excluding write-offs) (102) (184) (286) As at 31 December 2018 1,517 12,938 14,455 * Interest in suspense in respect of 31 December 2017 was recognised as allowance for impairment. Upon adoption of MFRS 9, the Bank has set-off the interest in suspense against the gross carrying amount. An analysis of the allowance for impairment losses under MFRS 139 for balances due from clients and brokers, for the financial year ended 31 December 2017 is as follows: Movements of impairment allowance for: Group and Bank 2017 RM’000 Individual Impairment At beginning of the financial year 26,735 Allowance made during the year (Note 34(ii)) 6,262 Allowance for impairment losses written back (Note 34(ii)) (6,163) Amount written off against balances due from clients and brokers (5,467) At end of the financial year 21,367