KENANGA ANNUAL REPORT 2019

174 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 9. LOANS, ADVANCES AND FINANCING Group Bank 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 At amortised cost Term loans 665,323 554,282 722,404 577,312 Share margin financing 1,320,106 1,419,617 1,320,106 1,419,617 Other lending and factoring receivables 97,317 62,735 - - Advances to group employees 17 60 17 60 Subordinated term loan* - - 15,417 10,278 Gross loans, advances and financing 2,082,763 2,036,694 2,057,944 2,007,267 Less: Allowance for ECL - Stage 1 - 12-month ECL (1,312) (898) (2,366) (1,402) - Stage 2 - Lifetime ECL not credit impaired - (8,847) - (8,847) - Stage 3 - Lifetime ECL credit impaired (16,777) (22,034) (16,061) (21,253) Net loans, advances and financing 2,064,674 2,004,915 2,039,517 1,975,765 * Subordinated term loan to a subsidiary. The subordinated loan granted to a subsidiary company, Kenanga Futures Sdn Bhd, is unsecured with effective interest rate of 6.30% per annum (2018: 6.06%) and is repayable by November 2021. (i) Gross loans, advances and financing analysed by type of customer are as follows: Group Bank 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Domestic business enterprises - Small and medium enterprises 256,545 233,392 208,259 213,770 - Others 744,067 587,463 816,565 587,463 Individuals 1,052,269 1,149,370 1,003,238 1,139,565 Foreign enterprises 29,882 66,469 29,882 66,469 2,082,763 2,036,694 2,057,944 2,007,267 (ii) Gross loans, advances and financing analysed by geographical distribution are as follows: Group Bank 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 In Malaysia 2,040,133 1,944,629 2,015,314 1,915,202 Outside Malaysia 42,630 92,065 42,630 92,065 2,082,763 2,036,694 2,057,944 2,007,267