Consolidated Financial Statements and Independent Auditors' Report

Notes to the Consolidated Financial Statements
31 December 2010
27 RISK MANAGEMENT (continued)
The Group’s financial assets and off-balance sheet items, before taking into account any collateral held or credit
enhancements, can be analysed by the following industry sectors:
2010 2009
KD 000’s KD 000’s
Industry sector
Trading 1,474,644 1,425,062
Manufacturing 721,005 814,856
Banks and other financial institutions 3,545,574 3,770,571
Construction 954,518 932,421
Real Estate 1,391,127 1,453,695
Retail 2,171,219 2,117,957
Government 1,406,412 1,171,476
Other 2,265,815 2,335,255
13,930,314 14,021,293
27.1.3 CREDIT QUALITY PER CLASS OF FINANCIAL ASSETS
In managing its portfolio, the Group utilises ratings and other measures and techniques which seek to take account of
all aspects of perceived risk. Credit exposures classified as ‘High’ quality are those where the ultimate risk of financial
loss from the obligor’s failure to discharge its obligation is assessed to be low. These include facilities to corporate
entities with financial condition, risk indicators and capacity to repay which are considered to be good to excellent.
Credit exposures classified as ‘Standard’ quality comprise all other facilities whose payment performance is fully
compliant with contractual conditions and which are not ‘impaired’. The ultimate risk of possible financial loss on
‘Standard’ quality is assessed to be higher than that for the exposures classified within the ‘High’ quality range.
The table below shows the credit quality by class of asset for statement of financial position lines, based on the
Group’s credit rating system.
Neither past due nor
impaired
High
KD 000’s
Standard
KD 000’s
Past due or
impaired
KD 000’s
Total
KD 000’s
2010
Deposits with banks maturing within seven days 396,195 - - 396,195
Central Bank of Kuwait bonds 435,242 - - 435,242
Kuwait Government treasury bonds 422,137 - - 422,137
Deposits with banks 459,934 256,488 - 716,422
Loans and advances to customers 6,749,862 1,207,238 175,452 8,132,552
Held to maturity investments 31,595 21,968 - 53,563
Available for sale investments 934,248 94,684 - 1,028,932
9,429,213 1,580,378 175,452 11,185,043
Neither past due nor
impaired
High
KD 000’s
Standard
KD 000’s
Past due or
impaired
KD 000’s
Total
KD 000’s
2009
Deposits with banks maturing within seven days 417,674 - - 417,674
Central Bank of Kuwait bonds 281,489 - - 281,489
Kuwait Government treasury bills 32,477 - - 32,477
Kuwait Government treasury bonds 373,202 - - 373,202
Deposits with banks 473,514 249,995 - 723,509
Loans and advances to customers 6,903,537 990,658 219,131 8,113,326
Held to maturity investments 22,719 12,824 - 35,543
Available for sale investments 794,970 125,658 - 920,628
9,299,582 1,379,135 219,131 10,897,848
27.1.4 AGEING ANALYSIS OF PAST DUE OR IMPAIRED LOANS AND ADVANCES
Corporate Retail Total
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
2010
Up to 30 days 7,151 - 20,250 - 27,401 -
31 - 60 days 6 - 7,154 - 7,160 -
61 - 90 days 6,854 - 255 - 7,109 -
91-180 days - 4,558 - 10,995 - 15,553
More than 180 days - 66,412 - 51,817 - 118,229
14,011 70,970 27,659 62,812 41,670 133,782
Corporate Retail Total
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
Past due
and not
impaired
KD 000’s
Past due
and
impaired
KD 000’s
2009
Up to 30 days 6,252 - 49,747 - 55,999 -
31 - 60 days 173 - 9,721 - 9,894 -
61 - 90 days 10,487 - 216 - 10,703 -
91-180 days - 2 - 11,059 - 11,061
More than 180 days - 86,182 - 45,292 - 131,474
16,912 86,184 59,684 56,351 76,596 142,535
Of the aggregate amount of gross past due or impaired loans and advances to customers, the fair value of collateral
that the Group held as at 31 December 2010 was KD 13,079 thousand (2009: KD 22,701 thousand).
88 National Bank of Kuwait - Annual Report 2010 89