KENANGA ANNUAL REPORT 2020

187 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.): (b) Share margin financing 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 2019 Group and Bank Internal rating grade Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 Performing: Strong 365,224 - - 365,224 Satisfactory 748,858 - - 748,858 Substandard 108,784 - - 108,784 Non-performing: Default - - 48,160 48,160 Non-rated 49,080 - - 49,080 Total 1,271,946 - 48,160 1,320,106 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share margin financing is as follows: 2020 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 1,271,945 - 48,161 1,320,106 New assets originated or purchased 1,084,996 1,226 2,686 1,088,908 Assets derecognised or repaid (excluding write-offs) (1,128,952) (13,078) (11,259) (1,153,289) Transfers of stages (50,120) 40,243 9,877 - Amount written off - - (9,005) (9,005) Impact of remeasurement (38,122) 256 170 (37,696) As at 31 December 1,139,747 28,647 40,630 1,209,024