KENANGA ANNUAL REPORT 2021

205 How We Are Governed Financial Statements Shareholders’ Information Additional Information 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 2021 Group and Bank Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 439,308 - - 439,308 Satisfactory 569,959 63 - 570,022 Substandard 54,316 - - 54,316 Non-performing: Default - - 64,700 64,700 Non-rated 42,553 - - 42,553 Total 1,106,136 63 64,700 1,170,899 2020 Group and Bank Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 441,427 18 - 441,445 Satisfactory 596,955 28,426 - 625,381 Substandard 68,282 203 - 68,485 Non-performing: Default - - 40,630 40,630 Non-rated 33,083 - - 33,083 Total 1,139,747 28,647 40,630 1,209,024 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 Gross carrying amount 2021 Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 1,139,747 28,647 40,630 1,209,024 New assets originated or purchased 1,035,477 111 2 1,035,590 Assets derecognised or repaid (excluding write-offs) (1,056,785) (28,548) (7,589) (1,092,922) Transfers of stages (29,763) (1,772) 31,535 - Impact of remeasurement 17,460 1,625 122 19,207 As at 31 December 1,106,136 63 64,700 1,170,899

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