Annual report 2011 - VTB

VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)38. Financial Risk Management (continued)Credit quality by class of due from other banks and financial assets classified as due from other bankspledged under repurchase agreementsCredit quality of due from other banks and financial assets classified as due from other banks pledged underrepurchase agreements (gross) neither past due nor impaired, which are neither past due nor impaired at 31December 2011 is presented in the table below:Not impairedIndividuallyassessedCollectivelyassessedDue from other banks 261.7 162.9Russia 120.7 49.3OECD 100.9 103.7Other countries 40.1 9.9Financial assets classified as due from other banks pledged underrepurchase agreements 0.4 –Russia 0.4 –Total due from other banks and financial assets classified as due fromother banks pledged under repurchase agreements (gross) neither pastdue nor impaired 262.1 162.9Credit quality of due from other banks and financial assets classified as due from other banks pledged underrepurchase agreements (gross) neither past due nor impaired, which are neither past due nor impaired at31 December 2010 is presented in the table below:Not impairedIndividuallyassessedCollectivelyassessedDue from other banks 181.3 168.8Russia 101.0 73.9OECD 75.9 87.1Other countries 4.4 7.8Financial assets classified as due from other banks pledged underrepurchase agreements 1.3 –Russia 1.3 –Total due from other banks and financial assets classified as due fromother banks pledged under repurchase agreements (gross) neither pastdue nor impaired 182.6 168.8Not impaired individually assessed amounts due from other banks are subsequently included in the pools ofcollectively assessed loans.Credit quality by class of loans and advances to customersThe credit quality of loans and advances to customers is presented according to five categories: Pass – provision rate from 0% to 2%; Watch – provision rate from 2% to 5%; Substandard – provision rate from 5% to 20%; Doubtful – provision rate from 20% to 50%; Loss – provision rate from 50% to 100%.Provision rate represents the weighted ratio of allowance for impairment to gross loans under each pool of loans withsimilar credit risk or individually impaired loan.66