KENANGA ANNUAL REPORT 2022

205 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 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 Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 2022 Performing: - Strong 339,547 - - 339,547 - Satisfactory 752,549 30,438 - 782,987 - Substandard 176 - - 176 Non-performing: - Default - - 30,346 30,346 Total 1,092,272 30,438 30,346 1,153,056 2021 Performing: - Strong 439,308 - - 439,308 - Satisfactory 569,959 63 - 570,022 - Substandard 54,316 - - 54,316 - Non-rated 42,553 - - 42,553 Non-performing: - Default - - 64,700 64,700 Total 1,106,136 63 64,700 1,170,899 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share margin financing is as follows: 2022 Group and Bank Gross carrying amount Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 1,106,136 63 64,700 1,170,899 New assets originated or purchased 725,922 282 4,041 730,245 Assets derecognised or repaid (excluding write-offs) (712,517) (7,361) (7,856) (727,734) Transfers of stages (3,179) 33,684 (30,505) - Impact of remeasurement (24,090) 3,770 (34) (20,354) As at 31 December 1,092,272 30,438 30,346 1,153,056

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