KENANGA ANNUAL REPORT 2020

183 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 9. LOANS, ADVANCES AND FINANCING (CONT’D.) 9.2 Impairment allowance for loans, advances and financing are as follows (cont’d.): (a) Term loans and subordinated term loan (cont’d.) 2019 Bank Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 3,840 - - 3,840 Satisfactory 498,506 36,347 - 534,853 Substandard 192,681 6,447 - 199,128 Total 695,027 42,794 - 737,821 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to term loan is as follows: 2020 Group Gross carrying amount Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 622,529 42,794 - 665,323 New assets originated or purchased 199,589 4,151 - 203,740 Assets derecognised or repaid (excluding write-offs) (272,135) (8,947) - (281,082) Transfers of stages (50,029) 50,029 - - Modification of contractual cash flow of assets (70) (118) - (188) As at 31 December 499,884 87,909 - 587,793 Group Gross carrying amount 2019 Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January 547,865 6,417 - 554,282 New assets originated or purchased 372,275 1,743 - 374,018 Assets derecognised or repaid (excluding write-offs) (261,264) (1,713) - (262,977) Transfers of stages (36,347) 36,347 - - As at 31 December 622,529 42,794 - 665,323