Page 211 - Exim iar24_Ebook

EXIM BANK MALAYSIA ANNUAL REPORT 2024

7 FINANCIAL STATEMENTS 209
NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Credit quality by class of financial assets (cont’d)
Credit quality of loans, advances and financing excluding ECR debtors and staff loans (cont’d.)

For commercial exposures, the Group and the Bank use ten risk grades with rating ‘1’ representing the lowest risk. Meanwhile
for Sovereign exposures, the Group and the Bank use five risk grades with rating ‘aaa’ representing the lowest risk.
The exposure under each of these risk grades is as follows (cont’d.):

Stage 1 Stage 2 Stage 3 Total
RM’000 RM’000 RM’000 RM’000
2023

Commercial customer
Risk Rating 3 216,825 - - 216,825
Risk Rating 4 96,914 - - 96,914
Risk Rating 5 1,276,842 - - 1,276,842
Risk Rating 6 706,333 64,043 - 770,376
Risk Rating 7 - 34,849 - 34,849
Risk Rating 9 - 1,530 - 1,530
Impaired - - 2,086,013 2,086,013
2,296,914 100,422 2,086,013 4,483,349

Sovereign
Risk Rating bb- - 15,455 - 15,455
Risk Rating ccc+ - 1,609 - 1,609
Risk Rating ccc- - 227,691 - 227,691
- 244,755 - 244,755

2,296,914 345,177 2,086,013 4,728,104

Restructured items
Restructured loans refer to the financial assets that would otherwise be past due or impaired where there is fundamental
revision in the principal terms and conditions of the facility. Restructuring shall be considered when the customer’s
business is still viable and is expected to remain viable after the restructuring. There were impaired loans restructured by the
Group and the Bank during the year of RM22,249,243 (2023: Nil).