4. CREDIT RISK (CONTINUED) 4.5 Credit Quality of Gross Financing and Advances (continued) (c) Impaired Financing and Advances A financing is classified as impaired when the principal or profit or both are past due for three months or more, or where a financing is in arrears for less than three months, but the financing exhibits indications of significant credit weakness. The financing or group of financings is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the financing (a ‘loss event’) and that the loss event has an impact on the estimated future cash flows of the financing or group of financings that can be reliably estimated. The Group and the Bank first assess individually whether the objective evidence of impairment exists individually for financings which are individually significant, and collectively for financings which are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financing, the financing is included in a group of financings with similar credit risk characteristic and collectively assessed for impairment. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the financing’s carrying amount and the present value of the estimated future cash flows. The carrying amount of the financing is reduced through the use of an allowance account and the amount of the loss is recognised in the statement of profit or loss. Group and Bank 31.12.2021 31.12.2020 Impairment financing by assessment type: RM’000 RM’000 Individually Assessed 423,603 219,160 of which: Month-in-Arrears 0 268,316 23,780 Month-in-Arrears 1 3,478 6,659 Month-in-Arrears 2 1,479 17,010 Month-in-Arrears 3 and above 150,330 171,711 Collectively Assessed 144,780 154,074 568,383 373,234 INTEGRATED ANNUAL REPORT 202 1 393 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information
RkJQdWJsaXNoZXIy NDgzMzc=