Annual Report - EFG Bank Group

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44 Notes to the Consolidated Financial Statements (continued) 19. Loans and advances to customers (All figures in millions of CHF) Dec. 31, 2006 Dec. 31, 2005 Lending to medium size and large corporate entities 20,303 15,994 Consumer lending 18,158 14,303 Mortgage lending 14,950 10,637 Small business lending 8,893 6,262 Provision for impairment losses on loans and advances (note 20) (1,385) (1,186) Total 60,919 46,010 Due from associated undertakings, unsubordinated - 12 Securitised loans 8,905 3,565 Loans and advances to customers include securitised assets. Analysis of Group's securitisation is presented in note 31. Loans and advances to customers include finance lease receivables as detailed below: (All figures in millions of CHF) Dec. 31, 2006 Dec. 31, 2005 Gross investment in finance lease receivables: Less than 1 year 562 369 Between 1 and 5 years 2,157 882 Over 5 years 461 1,015 3,180 2,266 Unearned future finance income on finance leases (747) (468) Net investment in finance leases 2,433 1,798 Less: provision for impairment losses (40) (32) 2,393 1,766 The net investment in finance leases is analysed as follows: Less than 1 year 440 280 Between 1 and 5 years 1,825 668 Over 5 years 168 850 2,433 1,798 Less: provision for impairment losses (40) (32) 2,393 1,766 Credit risk The Group takes on exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and to geographical and, when needed industry segments. Such risks are monitored on a revolving basis and are normally subject to an annual or more frequent review. The Group is active in the corporate, retail, mortgage and lombard lending markets. Credit risk is well spread over a diversity of personal and commercial customers. Economic sector risk concentrations within the Group's customer loan portfolio were as follows: Dec. 31, 2006 Dec. 31, 2005 Private individuals 49% 49% Commerce and services 32% 31% Manufacturing 10% 10% Construction 4% 3% Shipping 1% 2% Government bodies 1% 1% Other 3% 4% Total 100% 100% Geographic sector risk concentrations within the Group's customer loan portfolio were as follows: (All figures in millions of CHF) Dec. 31, 2006 Dec. 31, 2005 Greece 47,552 78% 38,074 83% Switzerland 409 1% 304 1% Other Western European countries 3,098 5% 1,017 2% Other countries 9,860 16% 6,615 14% Total 60,919 100% 46,010 100% EFG Group
Notes to the Consolidated Financial Statements (continued) 20. Provisions for impairment losses on loans and advances to customers (All figures in millions of CHF) 2006 2005 At January 1 1,186 935 Arising from acquisitions 8 5 Impairment losses on loans and advances charged in the year 543 479 Exchange adjustments 51 9 Recoveries 27 53 Loans written off during the year as uncollectible (430) (295) At December 31 1,385 1,186 21. Collateral for loans The Group reduces its credit risk associated with loans and advances to customers by entering into collateralised arrangements. The types of collateral that the Group obtains are primarily cash deposits and other equivalents, real estate, securities and bank guarantees. The value of the collaterals that the Group obtained were as follows: Secured by Other (All figures in millions of CHF) mortgage collaterals Unsecured Total Loans Due from clients 2,277 20,276 23,416 45,969 Mortgage loans 11,209 1,430 2,311 14,950 At December 31, 2006 13,486 21,706 25,727 60,919 At December 31, 2005 11,526 19,805 14,679 46,010 Off-balance sheet Contingent liabilities 43 867 2,277 3,187 Irrevocable commitments - 168 - 168 At December 31, 2006 43 1,035 2,277 3,355 At December 31, 2005 28 277 1,778 2,083 Annual Report 2006 Group 45
Page 1: Annual Report 2006
Page 4 and 5: Contents 3 Consolidated Financial H
Page 6 and 7: 4 Report of the Board of Directors
Page 8 and 9: 6 EFG Group’s Activities The EFG
Page 10 and 11: 8 EFG Group’s Activities (continu
Page 12 and 13: 10 Group Presence EFG Bank European
Page 14 and 15: 12 Board of Directors and Group Exe
Page 16 and 17: 14 Consolidated Statement of Income
Page 18 and 19: 16 Consolidated Statement of Change
Page 20 and 21: 18 Notes to the Consolidated Financ
Page 76 and 77: EFG Group
Page 78 and 79: Contents 78 Review of Parent Bank a
Page 80 and 81: 78 Review of Parent Bank Activities
Page 82 and 83: 80 Statement of Income for the year
Page 84 and 85: 82 Off-Balance Sheet Positions at D
Page 86 and 87: 84 Notes to the Financial Statement
Page 93: Images: Bridgeman Art Library “Al

Annual Report - EFG Bank Group

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