Bank Islam Integrated Annual Report 2020

8. FINANCING, ADVANCES AND OTHERS (CONTINUED) (j) Movement of allowance for impairment on financing, advances and others Group and Bank Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 At 1 January 2019 416,450 129,402 243,853 789,705 Transfer to Stage 1 1,931 (1,798) (133) – Transfer to Stage 2 (6,868) 9,175 (2,307) – Transfer to Stage 3 (461) (8,696) 9,157 – Net allowance made during the year (59,446) 45,272 149,340 135,166 New financial assets originated or purchased 127,923 2,567 2,411 132,901 Financial assets that have been derecognised (44,291) (27,807) (5,140) (77,238) Write-offs – – (224,984) (224,984) Exchange differences (4,103) – – (4,103) At 31 December 2019/1 January 2020 431,135 148,115 172,197 751,447 Transfer to Stage 1 1,245 (1,179) (66) – Transfer to Stage 2 (7,782) 10,508 (2,726) – Transfer to Stage 3 (264) (7,659) 7,923 – Net allowance made during the year 134,059 13,592 60,558 208,209 New financial assets originated or purchased 139,295 6,403 686 146,384 Financial assets that have been derecognised (44,708) (18,334) (3,364) (66,406) Write-offs – – (112,676) (112,676) Exchange differences 1,003 – – 1,003 At 31 December 2020 653,983 151,446 122,532 927,961 (k) Effect of modifications on the measurement of allowance for impaired financing, advances and others The following table discloses information on financing and advances that were modified but not derecognised during the year, for which the allowance for impaired financing, advances and others were measured at a lifetime ECL at the beginning of the year, and at the end of the year had changed to a 12-months ECL: Group and Bank 2020 RM’000 2019 RM’000 Amortised cost before the modification 431 10,405 Gross carrying amount at end of reporting period 439 10,268 Notes to the financial statements for the financial year ended 31 December 2020 230 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion