4. CREDIT RISK (CONTINUED) 4.3 Management of Credit Risk (continued) The Group monitors its credit exposures either on a portfolio basis or individual basis through annual reviews. Credit risk is proactively monitored through a set of early warning signals that could trigger immediate reviews of (a certain part of) the portfolio. The affected portfolio or financing is placed on a watchlist to enforce close monitoring and prevent financing from turning impaired and to increase chances of full recovery. A detailed limit structure is in place to ensure that risks taken are within the risk appetite as set by the Board and to avoid credit risk concentration on a single customer, sector, product, Shariah contract etc. Credit risk arising from dealing and investing activities are managed by the establishment of limits which include counterparty limits and permissible acquisition of private debt securities, subject to a specified minimum rating threshold. Furthermore, the dealing and investing activities are monitored by an independent middle office unit. 4.4 Capital Treatment for Credit Risk The Group adopts the Standardised Approach to compute the credit risk capital requirement under BNM’s CAFIB. 4.5 Credit Quality of Gross Financing and Advances The table below presents the Group’s and the Bank’s gross financing and advances analysed by credit quality: Group 31.12.2024 RM’000 31.12.2023 RM’000 Neither past due nor impaired 68,661,719 66,278,057 Past due but not impaired 814,435 710,766 Impaired 742,257 635,967 70,218,411 67,624,790 Gross Impaired Financing as a percentage of Gross Financing and Advances 1.06% 0.94% Bank 31.12.2024 RM’000 31.12.2023 RM’000 Neither past due nor impaired 68,675,218 66,278,057 Past due but not impaired 814,435 710,766 Impaired 742,257 635,967 70,231,910 67,624,790 Gross Impaired Financing as a percentage of Gross Financing and Advances 1.06% 0.94% Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 444 Pillar 3 Disclosure as at 31 December 2024
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