as at December 31, 2003 - EFG Bank Group

Notes to the Consolidated Financial Statements (continued)
20. Loans and advances to customers
(All figures in thousands of CHF) Dec. 31, 2003 Dec. 31, 2002
Lending to medium size and large corporate entities 11’952’742 11’035’326
Consumer lending 7’555’742 3’958’492
Mortgage lending 5’029’978 3’512’264
Small business lending 3’707’903 1’650’929
Other 753’766 1’827’043
Provision for impairment losses on loans and advances (note 21) (771’547) (612’373)
Total 28’228’584 21’371’681
Due from associated undertakings, unsubordinated 56’161 107’239
Settlement balances with customers 309’890 123’451
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 and retail lending market. 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:
Annual Report 2003
Dec. 31, 2003 Dec. 31, 2002
Private individuals 44% 40%
Commerce and services 35% 38%
Manufacturing 14% 15%
Construction 2% 2%
Shipping 2% 2%
Government bodies 1% 1%
Other 2% 2%
Total 100% 100%
Geographic sector risk concentrations within the Group’s customer loan portfolio were as follows:
(All figures in thousands of CHF) Dec. 31, 2003 Dec. 31, 2002
Greece 24’346’699 86% 19’034’644 88%
Switzerland 221’610 1% 91’645 1%
Other Western European countries 996’913 4% 837’471 4%
Other countries 2’663’362 9% 1’407’921 7%
Total 28’228’584 100% 21’371’681 100%
Group
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