Page 148 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

9. LOANS, ADVANCES AND FINANCING (cont’d)

(ix) Movements in the allowance for ECL for loans, advances and financing are as follows: (cont’d)
Stage 2 Stage 3
Stage 1 Lifetime ECL Lifetime
12-month not credit ECL credit
ECL impaired impaired Total ECL
RM’000 RM’000 RM’000 RM’000
Group and Bank

2023
Restated

At 1 January 77,086 200,736 1,466,033 1,743,855
Transferred to Stage 1 75,525 (75,525) - -
Transferred to Stage 3 - (4,881) 4,881 -
Net remeasurement (7,284) (12,148) 15,693 (3,739)
Financial assets derecognised (18,021) (44,970) - (62,991)
Total amount charged/(writeback) to profit
or loss during the year (Note 33) 50,220 (137,524) 20,574 (66,730)

Other movement with no profit or loss impact:
- Reversal of ECL relating to bad debt written off - - (56,060) (56,060)
- Exchange difference - - 68,022 68,022
At 31 December 127,306 63,212 1,498,569 1,689,087

Group and Bank
2024 2023
RM’000 RM’000
Breakdown of ECL Stage 1 and 2:
From non-impaired loans, advances and financing 182,046 190,518
182,046 190,518

As % of net loans, advances and financing (exclude gross impaired loan and staff loan) 6.21% 6.90%

(x) Overlays and adjustments for ECL
Overlays and post-model adjustments have been applied to address emerging risk in order to determine a sufficiency
overall level of ECL as at reporting date.
The overlays involved significant level of judgement and reflect the management’s views of possible severities of the
underlying credit risk and paths of recovery for certain borrowers in the forward looking assessment for ECL estimation
purposes.
The impact of the management overlays has improved based on the latest performance by customers from geopolitical
tension, elevated inflation and increase in interest rates. The management overlays relating to the gross outstanding
loans, advances and financing of the Group and the Bank as at 31 December 2024 amounted to RM312,212,000
(2023: RM336,284,000). Total additional overlays for ECL maintained by the Group and the Bank as at 31 December 2024
stood at RM30,345,000 (2023: RM35,056,000).