KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 253 ANNUAL REPORT 2018 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) (ii) Credit quality by class of financial assets (cont’d.) Neither past due nor impaired Non rated Past due but not impaired Default/ impaired Individually impaired* Total Strong credit profile Satisfactory risk Sub- standard** Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 31 December 2017 Cash and bank balances 1,092,544 - - - - - - 1,092,544 Statutory deposit with Bank Negara Malaysia 116,186 - - - - - - 116,186 Financial assets at fair value through profit or loss Malaysian Government Securities 20,254 - - - - - - 20,254 Malaysian Government Investment Certificates 50,171 - - - - - - 50,171 Corporate Bills 89,733 - - - - - - 89,733 Islamic Corporate Bills 159,941 - - - - - - 159,941 Unquoted securities inMalaysia - - - 10,208 - - - 10,208 Net loans, advances and financing Term loans - 402,658 50,028 - - - - 452,686 Islamic term loans - 122,031 50,022 - - - - 172,053 Share margin financing 485,238 803,473 135,614 131,284 - 1,910 (1,441) 1,556,078 Islamic share margin financing - 66 64 - - - - 130 Financial investments available-for-sale Malaysian Government Securities 49,534 - - - - - - 49,534 Malaysian Government Investment Certificates 155,357 - - - - - - 155,357 Islamic Corporate Sukuk 514,626 - - - - - - 514,626 Corporate Bonds 230,084 - - - - - - 230,084 Negotiable Instruments of Deposits 50,000 - - - - - - 50,000 Sukuk Perumahan Kerajaan 10,076 - - - - - - 10,076 Unquoted equities - - - 490 - - - 490 Financial investments held-to-maturity Islamic Corporate Sukuk - 10,001 - 28,000 - - - 38,001 Derivative financial assets - - - 67,393 - - - 67,393 Balances due from clients and brokers - 490,000 - - - 26,250 (21,367) 494,883 Other assets 49,147 - - - 1,557 1,795 (3,352) 49,147 Total 3,072,891 1,828,229 235,728 237,375 1,557 29,955 (26,160) 5,379,575 * Impaired loans, advances and financing and outstanding balances due from clients and brokers are loans, advances and financing and balances due under contractual term which have been overdue or are judgementally triggered as impaired. ** Majority of the sub-standard rating profile credits are from share margin and structured loan financing portfolio in which the credit risks are mitigated with guarantor with acceptable financial strength and adequate collateral coverage. These accounts are monitored on a daily basis in terms of their ability in meeting the minimum security coverage requirements and appropriate actions such as force selling or indulgence are considered to manage the exceptions.