KENANGA ANNUAL REPORT 2020

179 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 9. LOANS, ADVANCES AND FINANCING Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 At amortised cost Term loans 587,793 665,323 640,369 722,404 Share margin financing 1,209,024 1,320,106 1,209,024 1,320,106 Other lending and factoring receivables 85,636 97,317 - - Advances to group employees 181 17 181 17 Subordinated term loan * - - 20,418 15,417 Gross loans, advances and financing 1,882,634 2.082,763 1,869,992 2,057,944 Less: Allowance for ECL - Stage 1 - 12-month ECL (3,112) (1,312) (3,387) (2,366) - Stage 2 - Lifetime ECL not credit impaired (2,356) - (2,356) - - Stage 3 - Lifetime ECL credit impaired (7,917) (16,777) (7,253) (16,061) Net loans, advances and financing 1,869,249 2,064,674 1,856,996 2,039,517 * Subordinated term loan to a subsidiary The subordinated loan granted to a subsidiary company, Kenanga Futures Sdn Bhd, is unsecured with effective interest rate of 5.55% per annum (2019: 6.30%) and is repayable by November 2026. (i) Gross loans, advances and financing analysed by type of customer are as follows: Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Domestic business enterprises - Small and medium 237,848 256,545 180,851 208,259 - Others 591,343 744,067 664,336 816,565 Individuals 1,034,745 1,052,269 1,006,107 1,003,238 Foreign enterprises 18,698 29,882 18,698 29,882 1,882,634 2,082,763 1,869,992 2,057,944