Financial Statements 2003 - National Bank of Kuwait

Main HeadingMain heading sub copy5 Loans and advances to customersLoans and advances to customers are stated net of provisions for losses as follows:Specific General Total2003 2002 2003 2002 2003 2002KD 000’s KD 000’s KD 000’s KD 000’s KD 000’s KD 000’sBalance at beginning of year 51,504 54,716 40,900 36,138 92,404 90,854Amounts written off andforeign exchange movements (1,333) (936) 212 139 (1,121) (797)Adjustments re loans under Law 41/93 (6,557) (238) - - (6,557) (238)Provided/(released) during the year 527 (2,038) 7,798 4,623 8,325 2,585Balance at end of year 44,141 51,504 48,910 40,900 93,051 92,404At 31 December 2003, non-performing loans and advances amounted to KD 51 million (2002: KD 83 million) and aresplit between facilities granted pre-invasion and post liberation as follows:Pre-invasion Post liberation TotalKD 000’s KD 000’s KD 000’s2003Loans and advances 28,329 22,783 51,112Provisions 28,048 16,093 44,1412002Loans and advances 60,145 22,897 83,042Provisions 34,764 16,740 51,504The policy of the group for calculation of the impairment provision for loans and advances complies in all material respectswith the specific provision requirements of the Central Bank of Kuwait. According to the Central Bank of Kuwaitinstructions, a general provision of 2% on all credit facilities not subject to specific provisions has been provided.Theanalysis of specific and general provision set out above is based on the requirements of the Central Bank of Kuwait.The general provision of KD 48.9 million (2002: KD 40.9 million) includes an amount of KD 12.2 million(2002: KD 10.9 million) relating to non-cash facilities.39