Annual Report - Ahli United Bank

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Annual Report - Ahli United Bank

Notes to theConsolidated Financial Statements (Contd.)31 CREDIT RISK (continued)c) Credit quality per class of financial assetsThe table below shows distribution of financial assets neither past due nor impaired.At 31 December 2008Neither past due nor impairedHighstandardgradeStandardgradeTotalUS$ ’000 US$ ’000 US$ ’000Balances with central banks 288,277 37 288,314Treasury bills and bonds 1,154,214 82,783 1,236,997Deposits with banks and other financial institutions 2,842,911 25,048 2,867,959Loans and advancesRetail 842,256 2,624,517 3,466,773Corporate 7,570,962 2,309,007 9,879,969Non trading investmentsAvailable-for-sale 725,531 99,295 824,826Held to maturity 16,573 - 16,573Loans and receivables 1,722,302 279,633 2,001,935Other assets - derivatives 143,098 - 143,098It is the Group’s policy to maintain consistent internal risk ratings across the credit portfolio. The credit quality of the portfolio ofloans and advances that were neither past due nor impaired can be assessed by reference to the Group’s internal credit ratingsystem. This facilitates focused portfolio management of the inherent level of risk across all lines of business. The credit qualityratings disclosed above can be equated to the following risk rating grades:Credit quality rating Risk rating DefinitionHigh standard Risk rating 1 to 4 Undoubted through to good credit riskStandard Risk rating 5 to 7 Satisfactory through to adequate credit riskThe risk rating system is supported by various financial analytics and qualitative market information for the measurement ofcounterparty risk.There are no financial assets which are past due but not impaired other than those disclosed under note 10(c).92 AUB Annual Report 2009

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