Bank Islam Integrated Annual Report 2020

39. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Credit risk (continued) (iv) Credit quality of other financial assets excluding cash, short-term funds and deposits (continued) Credit quality of other financial assets by external rating is as follows: (continued) Bank 2019 Stage 1 RM’000 Stage 3 RM’000 Total RM’000 Financial assets at FVOCI Debt instrument Government bonds and treasury bills 7,731,637 – 7,731,637 Sukuk Rated AAA 3,374,297 – 3,374,297 Rated AA1 to AA3 971,687 – 971,687 Lower than A – 22,060 22,060 Gross carrying amount 12,077,621 22,060 12,099,681 Impairment allowances^ 265 – 265 Derivative financial assets Bank and financial institution counterparties 26,592 Corporate 6,734 33,326 Financial assets at FVTPL Government bonds and treasury bills 373,743 Sukuk: Rated AAA 50,191 Rated AA1 to AA3 4 423,938 Other financial assets at AC Other unrated financial assets 133,489 11,159 144,648 Impairment allowances – (11,159) (11,159) Net carrying amount 133,489 – 133,489 ^ The impairment allowances are recognised in OCI reserve. There is no disclosure for Group as the Group’s financial assets are not materially different from the Bank’s financial assets. Notes to the financial statements for the financial year ended 31 December 2020 282 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion