KENANGA ANNUAL REPORT 2019

266 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) (ii) Credit quality by class of financial assets (cont’d.) Group Neither past due nor impaired Strong credit profile Stage 1 RM’000 Satisfactory risk Stage 1 RM’000 Sub- standard* Stage 1 RM’000 Non rated Stage 1 RM’000 Stage 2 RM’000 Default/ impaired Stage 3 RM’000 ECL on individually impaired RM’000 ECL on collectively impaired RM’000 Total RM’000 31 December 2019 Cash and bank balances 2,063,057 - - - - - - - 2,063,057 Statutory deposit with Bank Negara Malaysia 99,164 - - - - - - - 99,164 Financial assets at FVTPL Unquoted shares and unit trust funds in Malaysia 131,114 - - 4,000 - - - - 135,114 Net loans, advances and financing Term loans 3,840 297,037 158,876 - 42,794 - - (667) 501,880 Islamic term loans - 128,971 33,805 - - - - (645) 162,131 Share margin financing 365,221 748,802 101,818 49,080 - 48,161 (16,061) - 1,297,021 Islamic share margin financing 3 56 6,965 - - - - - 7,024 Others 26,598 67,854 2,149 17 - 716 (716) - 96,618 Financial investments at FVOCI Debt instruments: Malaysian Government Securities 30,550 - - - - - - - 30,550 Malaysian Government Investment Certificates 72,649 - - - - - - - 72,649 Islamic Corporate Sukuk 458,204 - - - - - - - 458,204 Corporate bonds 173,040 - - - - - - - 173,040 Islamic Negotiable Instruments of Deposits 59,550 - - - - - - - 59,550 Equity instrument: Unquoted equities - - - 1,088 - - - - 1,088 Financial investments at AC Corporate Bonds 20,030 - - - - - - - 20,030 Malaysian Government Investment Certificates 9,892 - - - - - - - 9,892 Islamic Corporate Sukuk 70,172 - - 13,000 - - - (338) 82,834 Derivative financial assets - - - 65,174 - - - - 65,174 Balances due from clients and brokers 274,815 - - - - 19,199 (12,141) (1,516) 280,357 Other assets 178,971 - - - - 8,087 (4,471) (180) 182,407 Total 4,036,870 1,242,720 303,613 132,359 42,794 76,163 (33,389) (3,346) 5,797,784 * 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. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019