Kenanga Investment Bank Berhad Annual Report 2021 292 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) (ii) Credit quality by class of financial assets (cont’d.) Bank Neither past due nor impaired 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 Strong credit profile Stage 1 RM’000 Satisfactory risk Stage 1 RM’000 Sub- standard* Stage 1 RM’000 31 December 2020 Cash and bank balances 1,378,646 - - - - - - - 1,378,646 Statutory deposit with Bank Negara Malaysia 58,398 - - - - - - - 58,398 Financial assets at FVTPL Islamic Corporate Sukuk 39,833 - - - - - - - 39,833 Unquoted shares and unit trust funds in Malaysia 148,453 - - - - - - - 148,453 Net loans, advances and financing Term loans - 450,432 22,593 - 87,908 - - (2,734) 558,199 Islamic term loans - 74,053 25,801 - - - - (653) 99,201 Share margin financing 429,763 596,804 65,804 33,083 28,647 40,630 (7,253) (2,356) 1,185,122 Islamic share margin financing 11,664 151 2,478 - - - - - 14,293 Others - - - 181 - - - - 181 Financial investments at FVOCI Debt instruments: Malaysian Government Securities 20,496 - - - - - - - 20,496 Malaysian Government Investment Certificates 119,119 - - - - - - - 119,119 Islamic Corporate Sukuk 305,664 - - - - - - - 305,664 Corporate Bonds 174,520 - - - - - - - 174,520 Islamic Negotiable Instruments of Deposits 149,943 - - - - - - - 149,943 Equity instrument: Unquoted equities - - - 1,990 - - - - 1,990 Financial investments at AC Corporate Bonds 20,021 - - - - - - - 20,021 Malaysian Government Investment Certificates 9,909 - - - - - - - 9,909 Islamic Corporate Sukuk 152,210 10,895 163,105 Derivative financial assets - - - 95,571 - - - - 95,571 Balances due from clients and brokers 512,602 - - - 25,060 13,618 (4,670) (1,553) 545,057 Other assets, excluding prepayments and deposits 74,591 - - - 858 9,487 (6,004) (372) 78,560 Total 3,605,832 1,132,335 116,676 130,825 142,473 63,735 (17,927) (7,668) 5,166,281 * Majority of the sub-standard rating profile credits are from share margin and 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 2021
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