2012 Annual Report & Financial Statements - UBA Plc

106
Notes to the consolidated and separate financial statements
continued …
Write-off policy
The Group writes off a loan/security balance (and any related allowances for impairment losses) when Group credit determines that the loans/
securities are uncollectible. This determination is reached after considering information such as the occurrence of significant changes in the
borrower/issuer’s financial position such that the borrower/issuer can no longer pay the obligation, or that proceeds from collateral will not be
sufficient to pay back the entire exposure. For smaller balance standardised loans, charge off decisions are generally based on a product specific
past due status.
Set out below is an analysis of the gross and net (of allowances for impairment) amounts of individually impaired assets.
Group
In millions of Nigerian Naira
31 December 2012
Loans and advances to
customers
Loans and advances to
banks
Gross Net Gross Net
Moderately high risk 1,122 574 – –
High risk 1,842 1,245 – –
Very high risk 10,475 6,173 – –
Total 13,439 7,992 – –
31 December 2011
Moderately high risk 2,293 438 – –
High risk 3,045 589 – –
Very high risk 11,598 2,778 – –
Total 16,936 3,805 – –
Annual Report 2012