BIMB Integrated Annual Report 2017

45. FINANCIAL RISK MANAGEMENT POLICIES (CONTINUED) 45.3 Credit risk (continued) (i) Credit quality of gross financing and advances (continued) The table below summarises the credit quality of Bank Islam’s gross financing according to the above classifications. GROUP 2017 2016 RM’000 RM’000 Financing, advances and others Neither past due nor impaired – Excellent to good 35,144,157 31,981,235 – Satisfactory 6,092,349 6,352,707 – Fair 500,056 454,883 41,736,562 38,788,825 Past due but not impaired 551,097 694,173 Impaired 398,277 389,445 42,685,936 39,872,443 Allowance for impaired financing, advances and others – collective assessment allowance (446,069) (554,971) – individual assessment allowance (126,447) (128,198) 42,113,420 39,189,274 For management of credit risk, the Bank applies an internal credit risk rating for its neither past due nor impaired financing which is defined as follows: • Excellent to Good: Sound financial position with no difficulty in meeting its obligations. • Satisfactory: Adequate safety of meeting its current obligations but more time is required to meet the entire obligation in full. • Fair: Higher risks on payment obligations. Financial performance may continue to deteriorate. Past due but not impaired financing The ageing analysis of financing and advance past-due but not impaired as at the end of the reporting period was as follows: GROUP 2017 2016 RM’000 RM’000 By ageing Month-in-arrears 1 362,240 439,600 Month-in-arrears 2 188,857 254,573 551,097 694,173 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 257 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis a s