KENANGA ANNUAL REPORT 2019

178 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 9. LOANS, ADVANCES AND FINANCING (CONT’D.) 9.2 Impairment allowance for loans, advances and financing are as follows (cont’d.): (a) Term loans and subordinated term loan (cont’d.) Bank 2018 Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 3,840 - - 3,840 Satisfactory 467,273 - - 467,273 Substandard 110,060 6,417 - 116,477 Total 581,173 6,417 - 587,590 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to term loan is as follows: Group 2019 Gross carrying amount Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 547,865 6,417 - 554,282 New assets originated or purchased 372,275 1,743 - 374,018 Assets derecognised or repaid (excluding write-offs) (261,264) (1,713) - (262,977) Transfers of stages (36,347) 36,347 - - As at 31 December 622,529 42,794 - 665,323 Group 2018 Gross carrying amount Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 588,800 - - 588,800 New assets originated or purchased 221,750 - - 221,750 Assets derecognised or repaid (excluding write-offs) (256,268) - - (256,268) Transfers of stages (6,417) 6,417 - - As at 31 December 547,865 6,417 - 554,282