Annual Report 2010 - ProCredit Bank

Financial Statements 63
2010 2009
Impairment provision (%) Loans and Advances (%) Impairment provision (%) Loans and Advances (%)
I 1.1 95.9 1.0 96.4
II 50.2 0.5 44.5 0.7
III 65.3 0.5 61.5 0.4
IV 98.3 0.9 116.7 1.6
Impairment 23.5 2.2 36.5 0.8
3.0 100.0 3.4 100.0
Associated impairment provision percentages in this case represent
the relation between the extracted impairment provision and
gross amount of loans and advances to customers without taking
into consideration the deductive items which can lower the basis
for calculating impairment provision. Financial lease receivables
are for the purpose of this analysis shown in risk class I in case
that their status is “Leased” and arrears up to 30 days. Financial
lease receivables are shown in risk class II in case that their status
is “Leased” and arrears between 31 and 90 days. Financial lease
receivables are shown in risk class III in case that their status is
“Leased” and arrears between 91 and 180 days. Financial lease
receivables are shown in risk class IV in case that their status is
“Leased” and arrears between over 180 days or in case that their
status is “Terminated”.
B.3. Quality of the Loan Portfolio and the Maximum Exposure to
Risk before Collateral Held
Quality of the loan portfolio is high which is reflected through the
low level of portfolio at risk (defined as unpaid part of loan portfolio
with at least one instalment due over 30 days). General rule of
the bank is that the write off takes place after 360 days in arrears.
However, in special cases the write off is possible even before
this period.
The following table shows exposure to credit risk on 31 December
2010 and 2009 indicating total exposure to credit risk without taking
into consideration means of collateral. The table also includes
off balance items which might lead to credit risk.
Maximum Exposure Before Collateral
2010 2009
Balance Sheet Exposure
Balances with Central Bank other than mandatory reserve deposits 10,788 509,558
Loans and advances to banks
Loans to banks within a group 16,443 2,647
Loans to OECD banks 271,562 162,978
Loans to domestic and non-OECD banks 425,641 613,947
Total loans and advances to banks 724,433 779,572
Loans and advances to customers (net):
Business 25,562,625 21,235,424
Agricultural 11,264,906 9,586,248
Housing 4,002,508 3,834,506
Finance leases 2,233,984 2,571,657
Consumer 2,262,784 1,349,394
Other 1,649,549 2,094,539
Total loans and advances to customers 46,976,356 40,671,768
Other financial assets (Note 22) 37,951 50,748
Off balance Credit Risk Exposure (Note 34) 8,099,743 7,534,014
On 31 December 55,838,482 49,545,660
The table above represents the scenario of the maximum credit
risk exposure of the Group at 31 December 2010 and 2009, without
taking account of any collateral held or other credit enhancements
attached. For on-balance-sheet assets, the exposures set
out above are based on net carrying amounts as reported in the
balance sheet.
• 84.1% from total exposure is related to loans to customers and
financial leases thus reflecting the major business activity of
the Group (2009: 82.1%);
• 95.9% from total loans and advances is classified in most favourable
impairment class according to the Group’s internal
methodology (2009: 96.4%);
• 29.1% loans and advances to customers are covered with mortgages
or deposits of the customers (2009:30.3%);