KENANGA ANNUAL REPORT 2019

181 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.): (b) Share margin financing Group and Bank 2019 Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 365,224 - - 365,224 Satisfactory 748,857 - - 748,857 Substandard 108,784 - - 108,784 Non-performing: Default - - 48,161 48,161 Non-rated 49,080 - - 49,080 Total 1,271,945 - 48,161 1,320,106 Group and Bank 2018 Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 442,927 - - 442,927 Satisfactory 709,054 30,417 - 739,471 Substandard 119,458 - - 119,458 Non-performing: Default - - 58,284 58,284 Non-rated 59,477 - - 59,477 Total 1,330,916 30,417 58,284 1,419,617 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share margin financing is as follows: Group and Bank 2019 Gross carrying amount Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 1,330,916 30,417 58,284 1,419,617 New assets originated or purchased 793,423 411 106 793,940 Assets derecognised or repaid (excluding write-offs) (828,789) (6,471) (41,985) (877,245) Transfers of stages (7,523) (24,403) 31,926 - Effect of movement of cash collateral (16,082) 46 (170) (16,206) As at 31 December 1,271,945 - 48,161 1,320,106