Annual Report 2012

Notes to the financial statements(Expressed in millions of RMB, unless otherwise stated)25 Loans and advances to customers (continued)(2) Analysed by assessment method of allowances for impairment losses(note (a))Loans andadvancesfor whichcollectivelyassessed(note (b))Impaired loans and advancesfor whichallowancesare collectivelyassessedfor whichallowancesare individuallyassessedGroupAs at 31 December 2012Gross loans and advances to customers 7,437,694 5,991 68,627 7,512,312Allowances for impairment losses (152,710) (3,909) (45,814) (202,433)TotalNet loans and advances to customers 7,284,984 2,082 22,813 7,309,879As at 31 December 2011Gross loans and advances to customers 6,425,496 5,290 65,625 6,496,411Allowances for impairment losses (129,832) (3,276) (38,109) (171,217)Net loans and advances to customers 6,295,664 2,014 27,516 6,325,194BankAs at 31 December 2012Gross loans and advances to customers 7,269,057 5,895 68,452 7,343,404Allowances for impairment losses (151,510) (3,899) (45,678) (201,087)Net loans and advances to customers 7,117,547 1,996 22,774 7,142,317As at 31 December 2011Gross loans and advances to customers 6,288,878 5,178 65,490 6,359,546Allowances for impairment losses (128,898) (3,265) (38,020) (170,183)Net loans and advances to customers 6,159,980 1,913 27,470 6,189,363(a)(b)Loans and advances assessed on a collective basis for impairment are those graded normal or special mention.Impaired loans and advances include loans for which objective evidence of impairment exists and assessed:– individually (including corporate loans and advances which are graded substandard, doubtful or loss); or– collectively; these are portfolios of homogeneous loans (including personal loans and advances which are graded substandard, doubtful or loss).The proportion of impaired loans and advances of the Group to gross loans and advances as at 31 December 2012 is 0.99% (2011: 1.09%).The proportion of impaired loans and advances of the Bank to gross loans and advances as at 31 December 2012 is 1.01% (2011: 1.11%).(c) The definitions of the loan classifications stated in notes (a) and (b) above are set out in Note 63(1).128 China Construction Bank Corporation annual report 2012