4. CREDIT RISK (CONTINUED) 4.5 Credit Quality of Gross Financing and Advances (continued) (c) Impaired Financing and Advances (continued) The Group and the Bank first assess individually whether the objective evidence of impairment exists individually for financing which are individually significant, and collectively for financing 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 financing 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. Impaired financing by assessment type: Group and Bank 31.12.2024 RM’000 31.12.2023 RM’000 Individually Assessed 362,138 241,247 of which: Month-in-Arrears 0 83,355 29,165 Month-in-Arrears 1 15,890 16,803 Month-in-Arrears 2 9,420 2,943 Month-in-Arrears 3 and above 253,473 192,336 Collectively Assessed 380,119 394,720 742,257 635,966 447 w w w . b a n k i s l a m. c o m 01 02 03 04 05 06 07 08 FINANCIAL STATEMENTS 09
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