Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 4. FINANCIAL RISK MANAGEMENT (CONT’D) 4.1 Financial risk factors (cont’d) (d) Credit risk (cont’d) Impairment assessment (Policy applicable from 1 October 2018) (Cont’d) Grouping financial assets measured on a collective basis The Group calculates ECL on a collective basis for all assets classified under stage 1 and stage 2. The Group combines these exposures into smaller homogeneous portfolios, based on a combination of internal and external characteristics of the facilities which are described below. The Group considers the customer type for grouping of the portfolio which are grouped under Corporate customers or individuals. For individual lendings which include retail leasing, credit facilities, hire purchase and other credit agreements, and card customers, the groupings are as follows: • Product type • Age band • Salary band For corporate lendings which include factoring, corporate leasing, and corporate loans, the grouping are as follows: • Product type • Industry sector CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 103