Annual Report - Ahli United Bank

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Annual Report - Ahli United Bank

Pillar III Disclosures - Basel II (Contd.)3. CREDIT RISK MANAGEMENT (continued)Concentration RiskRefer note 31(a) to the audited consolidated financial statements for definition and policies for management of concentration risk.As per the CBB’s single obligor regulations, banks incorporated in Bahrain are required to obtain the CBB’s approval for any plannedexposure to a single counterparty, or group of connected counterparties, exceeding 15 per cent of the regulatory capital base. As at31 December 2009 the Group had no single obligor exposures which exceeded 15 per cent of the Group’s regulatory capital base (i.e.exceeded US$ 395.7 million).Geographic Distribution of Gross Credit ExposuresThe geographic distribution of credit exposures is monitored on an ongoing basis by Group Risk Management and reported to theBoard on a quarterly basis.The following table details the Group’s geographic distribution of gross credit exposures as at 31 December 2009.TABLE - 6 GEOGRAPHIC DISTRIBUTION OF GROSS CREDIT EXPOSURESGCC *CountriesUnitedKingdomEurope(excludingUnitedKingdom)UnitedStates ofAmericaAsia(excludingGCCCountries)Restof theworld(includingArabRepublic ofEgypt)TotalUS$ ’000 US$ ’000 US$ ’000 US$ ’000 US$ ’000 US$ ’000 US$ ’000Balances with central banks 177,583 157 - - - 111,793 289,533Treasury bills and bonds 780,278 - - - 105,905 82,931 969,114Deposits with banks and otherfinancial institutions 1,670,396 355,884 644,641 147,813 13,366 268,346 3,100,446Loans and advances 10,596,689 697,969 639,850 2,698 68,974 1,293,819 13,299,999Non-trading investments 1,637,158 191,130 434,694 642,679 304,433 271,353 3,481,447Other assets 335,673 32,162 21 - 8,336 43,055 419,247Total funded exposures 15,197,777 1,277,302 1,719,206 793,190 501,014 2,071,297 21,559,786Contingent liabilities 1,423,469 5,690 32,488 18,619 12,845 196,082 1,689,193Undrawn loan commitments 646,482 127,972 85,574 5,010 5,265 22,190 892,493Total unfunded exposures 2,069,951 133,662 118,062 23,629 18,110 218,272 2,581,686TOTAL 17,267,728 1,410,964 1,837,268 816,819 519,124 2,289,569 24,141,47271.5% 5.8% 7.6% 3.4% 2.2% 9.5% 100.0%* GCC countries are countries which are part of the Gulf Co-operation Council comprising Kingdom of Bahrain, State of Kuwait,Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and the United Arab Emirates.112 AUB Annual Report 2009

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