Annual report 2019

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53.2. Credit risk

Credit risk is inherent in the core financial operations of the Bank, the scope of which includes both lending and providing funding with the use of capital market products. Consequently, credit risk is identified as the risk with the highest potential to affect the present and future profits and equity of BNP Paribas. Proof of the key nature of credit risk is its 69% share in the total economic capital estimated by the Bank for purposes of covering major risks involved in the Bank’s operations, in addition to its 88% share in the total value of regulatory capital.

Credit risk management is primarily aimed at implementation of the Bank’s strategy through a harmonious increase in the loan portfolio, accompanied by maintenance of the credit risk appetite at an acceptable level.

Credit risk management principles adopted by the Bank include:

  • each credit transaction requires comprehensive credit risk assessment expressed in internal rating or scoring;
  • in-depth and careful financial analysis serves as the basis for regarding the customer’s financial information and collateral- related data as reliable; prudential analyses performed by the Bank always take into account a safety margin;
  • as a rule, financing is provided based on the customer’s ability to generate cash flows that ensure payment of liabilities to the Bank;
  • credit risk assessment is additionally verified by credit risk assessment personnel, independent of the business;
  • pricing terms of a credit transaction have to take account of the risk involved in such a transaction;
  • credit risk is diversified with regard to geographical regions, industries, products and customers;
  • credit decisions may only be taken by competent employees;
  • the Bank enters credit transactions only with known customers and long-term relationships are the basis for cooperation with customers;
  • the customer and the transactions made with the customer are monitored transparently from the perspective of the customer, in a manner strengthening the relationship between the Bank and the customer.

Concentration risk is the Bank’s risk inherent to its statutory operations, which is appropriately defined and managed.

The Management Board assesses the concentration risk policy in terms of its application. In particular, it analyses the efficiency and adequacy of the principles applied in the context of the current and planned operations and risk management strategy.

The adequacy of the concentration risk management is reviewed if any material changes are observed in the Bank’s environment or if the risk management strategy is modified.

The appropriate assessment of the concentration risk of the Bank is highly dependent on correct identification of all key concentration risks. In justified cases, the Bank identifies concentration risk when planning its new activities involving the development and launch of new products, services, expansion to new markets, considerable alterations of products and services or market changes.

Credit portfolio diversification is one of the key credit risk management tools. The Banks avoids excessive credit concentration, as it increases the risk. Possible losses pose a considerable threat, and therefore the concentration level should be monitored, controlled and reported to the Bank’s management. Key concentration risk mitigation tools include risk identification and measurement mechanisms and exposure limits in individual Bank portfolio segments and in subsidiaries. These tools enable internal differentiation of the loan portfolio and mitigation of negative effects of adverse changes in the economy.

A significant concentration area (aspect) is the one whose share in the Bank’s balance sheet total is equal or higher than 10% or 5% of the net profit planned for a given year. In such cases, a given concentration area (aspect) is subject to analyses, reporting and management under the concentration risk management process.

High concentration of the Bank’s credit exposures to each entity or group of entities with equity or organizational relationships is one of the potential sources of credit risk. For purposes of its reduction, the Regulation No. 575/2013 specifies the Bank’s maximum exposure limit. Under Article 395 of the Regulation No. 575/2013: the institution does not assume any exposure to the client or related clients, the value of which, taking into account the effect of limiting credit risk in accordance with Articles 399-403, exceeds 25% of the value of its recognized capital. If a client is an institution or if a group of related clients include at least one institution, the value does not exceed 25% of its recognized capital or of the amount of EUR 150 million, depending on which one of these two amounts is higher, provided that the sum of the exposure to all related non-institutional customers, after taking into account the effect of credit risk mitigation under Articles 399-403, does not exceed 25% of the value of the institution’s recognized capital.

The Bank’s concentration limits are monitored in accordance with Article 387 of the Regulation No. 575/2013. The limits, defined in Article 395 of the Regulation No. 575/2013, had not been exceeded as at the end of 2019. As at the end of 2019, the Bank’s exposure to customers/groups of customers with equity or organizational relationships had not exceeded the concentration limit. The total of exposures equal to or exceeding 10% of the Group’s equity was 17%.

Concentration risk tolerance in the Bank is determined by a system of internal limits, including both assumed development directions and speed of the Bank’s business, an acceptable level of credit risk and liquidity, as well as external conditions, macroeconomic and sectoral perspective. Among others, internal limits for credit concentration risk are determined for:

  • selected sectors / industries;
  • exposures denominated in foreign currencies;
  • customer segments (intra-bank customer segmentation);
  • loans secured with a given type of collateral;
  • geographical regions;
  • average probability of default;
  • exposures with a specified rating (the Bank’s internal rating scale);
  • exposures with a specified debt-to-income ratio;
  • exposures with a specified loan-to-value ratio.

Activities that limit Bank’s exposure to concentration risk may include systemic measures and one-off / specific decision and transactions. Systemic measures that limit concentration risk include:

  • reduction of the scope of crediting of determined customer types through credit policy adjustment;
  • reduction of limits charged with concentration risk;
  • diversification of asset types on the level of the Bank’s statement of financial position;
  • change of business strategy to ensure prevention of excessive concentration;
  • diversification of accepted collateral types.

Systemic measures that limit concentration risk include:

  • reduction of further transactions with a given customer or a group of related customers;
  • sale of selected assets/loan portfolios;
  • securitization of assets;
  • establishing of new collateral types (e.g. credit derivatives, guarantees, sub-participation, and insurance contracts) for existing or new credit exposures.

A concentration analysis by industry, conducted by the Group, focuses on all credit exposures of the Bank to institutional customers, including bond loans. The Bank defines industries based on Polish statistical classification of economic activities (NACE/PKD 2007). The Bank’s exposure to industries analysed at the end of 2019 (similarly as at the end of 2018) is concentrated in the following industries: Agriculture, Forestry, Hunting and Fishing; Manufacture of Food Products, Beverages and Tobacco Products. In 2018, they accounted for 32% of industrial exposure, while in 2019, the exposure to these three industries reached 33%.

In 2018, the largest share of non-performing loans in industry (20.0%) was attributable to Hotels and restaurants; Arts, entertainment and recreation, (15.2%) Editorial and printing activities; Media production and (13.0%) Construction of civil or water engineering and specialized objects. In 2019, the largest share of non-performing loans in industry (21.5%) was due to Hotels and restaurants; Arts, entertainment and recreation, and (17.7%) Construction of civil or water engineering and specialized objects and (12.4%) Editorial and printing activities; Media production.

The table below presents a comparison of the share of impaired loans in 2019 and 2018.

Share of non-performing loans ** in industry exposure (gross balance sheet amount)*

XLS
Exposure Share of
impaired loans
Industry 31.12.2019 31.12.2018 31.12.2019 31.12.2018
Agriculture, Forestry, Hunting and Fishing; Production of Food Products, Beverages and Tobacco Products 15,050,731 15,336,409 7.7% 6.0%
Production of motor vehicles, motorcycles and tyres 763,233 702,537 0.9% 1.2%
Construction of civil engineering and specialist structures 2,069,417 2,320,668 17.7% 13.0%
Professional activities, including science and engineering; administration services and auxiliary services 2,436,639 2,324,949 5.8% 5.1%
Production of chemicals and chemical products 582,828 850,381 0.3% 0.4%
Telecommunications; Postal and courier services 620,168 686,924 0.2% 0.2%
Coal and peat mining; oil and gas extraction; production of gas fuels; production of coke and oil refining products 61,877 106,611 0.2% 0.1%
Production of machinery and equipment (except for computers and electronic products) 2,073,662 2,183,140 8.6% 9.5%
Financial activities 534,919 886,700 3.6% 4.0%
Health care; production of basic pharmaceutical products and medicines 602,577 667,854 3.6% 2.9%
Hotels and restaurants; Culture, entertainment and recreation activities 361,896 401,386 21.5% 20.0%
Production of furniture and household appliances; Production of apparel, textiles and leather 869,670 898,113 11.4% 6.4%
Activities related to software and IT consultancy; information processing services; Production of computers, electronic and optical devices 318,284 370,221 5.3% 7.3%
Insurance 27,109 25,856 9.9% 7.8%
Extraction and production of other materials and ores 2,948,451 3,332,494 2.2% 3.1%
Editorial and printing activities; Media production 382,391 319,171 12.4% 15.2%
Education; Social assistance; Other services 292,291 274,134 7.5% 7.6%
Residential and non-residential construction; Services provided on real property market 4,786,969 4,553,165 4.1% 8.6%
Retail trade 3,300,196 3,385,944 4.2% 4.8%
Public administration; economic and social policy 118,350 170,922 0.0% 0.0%
Transport and warehousing 2,015,526 2,206,787 6.7% 7.5%
Generation and supply of electricity, gas, steam, hot water; Water supply, Sewage and waste management 435,894 418,055 4.5% 5.3%
Wholesale trade 4,606,850 5,287,209 7.6% 6.7%
Total 45,259,930 47,709,627 6.8% 6.4%
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.
** Loans for which objective impairment triggers have been identified.

 

The Group also manages the risk of collateral concentration. For this purpose, the Bank introduced limits for the involvement of particular types of collateral, ensuring their appropriate diversification. As at the end of 2019, as well as at the end of 2018, the limits were not exceeded.

In the case of an individually assessed exposures, the Bank expects, as at 31 December 2019, to recover, due to established collateral, the amount of PLN 879 million, which is 49% of the total exposure assessed individually with an impairment recognized.

The table below presents the Bank’s maximum exposure to credit risk for financial instruments both recognized and not recognized in the financial statements. The maximum exposure was presented in its gross value, before considering the impact of collateral and other credit quality improvement instruments.

XLS
31 December 2019
Assets Maximum exposure
on credit risk
– no collaterals
included		 Maximum exposure
on credit risk
– collaterals
included
Cash and balances at Central Bank 4,658,545 4,658,171
Amounts due from banks 680,228 679,308
Financial instruments measured at fair value through other comprehensive income 7,953,358 7,953,358
Financial instruments measured at fair value through profit or loss 241,754 241,754
Derivative financial instruments 800,886 800,886
Hedging instruments 228,120 228,120
Loans and advances to customers measured at amortised cost 75,064,852 71,836,643
Other financial instruments measured at amortised cost 17,939,171 17,916,645
Deferred tax assets 976,748 976,748
Other assets 884,845 884,845
Total assets 109,428,507 106,176,478
Total contingent liabilities 3,528,537 3,528,537
Total exposure on credit risk 112,957,044 106,176,478
XLS
31 December 2018
Assets Maximum exposure
on credit risk
– no collaterals
included		 Maximum exposure
on credit risk
– collaterals
included
Cash and balances at Central Bank 2,897,123 2,897,123
Amounts due from banks 962,757 961,496
Financial instruments measured at fair value through other comprehensive income 15,875,339 15,875,339
Financial instruments measured at fair value through profit or loss 204,421 204,421
Derivative financial instruments 715,671 715,671
Hedging instruments 130,405 130,405
Loans and advances to customers measured at amortised cost 74,059,759 70,997,701
Other financial instruments measured at amortised cost 11,960,381 11,939,238
Deferred tax assets 1,034,313 1,034,313
Other assets 762,653 762,653
Total assets 108,602,822 105,518,360
Total contingent liabilities 5,277,551 5,277,551
Total exposure on credit risk 113,880,373 110,795,911

The table below presents significant credit risk exposures to which the expected credit loss model was applied. The breakdown was based on the rating scale presented below:

XLS
31.12.2019
Gross loans and advances measured at amortised cost, for which impairment allowance is estimated as*:
Rating 12-month
expected
credit loss
– exposures
without
impairment		 Expected
credit loss
during the
exposure period
– exposures without
impairment		 Expected
credit loss
during the
exposure period
– exposures with
impairment		 Expected
credit loss
during the
exposure period
– POCI
exposures		 Gross
portfolio
value
for a given
rating
category		 Net
portfolio
value
for a given
rating
category
1 1,208 33 – – 1,241 1,205
2 123,452 – – – 123,452 123,443
3 414,505 39 – – 414,544 414,507
4 1,713,892 5,798 93 – 1,719,783 1,719,238
5 5,529,123 234,995 6,275 – 5,770,393 5,760,068
6 12,987,709 394,335 50,568 3,116 13,435,729 13,353,709
7 13,252,635 1,367,739 24,636 4,275 14,649,285 14,498,755
8 2,953,267 1,976,620 40,473 29,534 4,999,895 4,850,953
9 51,087 769,144 31,782 3,279 855,291 801,372
10 48,814 511,048 738,557 26,117 1,324,537 930,023
11 to 12 5,441 5,714 1,878,912 267,146 2,157,212 989,548
Total 37,081,133 5,265,465 2,771,296 333,467 45,451,362 43,442,821
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.
XLS
31.12.2018
Gross loans and advances measured at amortised cost, for which impairment allowance is estimated as*:
Rating 12-month
expected
credit loss
– exposures
without
impairment		 Expected
credit loss
during the exposure
period
– exposures
without
impairment		 Expected
credit loss
during the exposure
period
– exposures
with
impairment		 Expected
credit loss
during the
exposure period
– POCI
exposures		 Gross
portfolio
value
for a given
rating
category		 Net
portfolio
value
for a given
rating
category
1 726 – – – 727 713
2 4,076 – – 1 4,077 4,076
3 297,516 – 23 141 297,680 297,441
4 1,919,118 318 4 967 1,920,406 1,918,480
5 3,220,027 160,292 911 1,085 3,382,315 3,358,012
6 12,246,624 435,864 3,517 9,092 12,695,097 12,626,175
7 13,654,861 762,249 17,008 153,135 14,587,253 14,451,806
8 3,266,509 1,154,624 31,859 40,327 4,493,318 4,370,719
9 138,983 512,396 20,108 15,940 687,427 645,968
10 414,651 346,637 59,994 193,018 1,014,300 897,055
11 to 12 77,112 47,301 1,824,126 139,749 2,088,288 888,975
Total 35,240,203 3,419,681 1,957,549 553,455 41,170,889 39,459,422
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.

 

For large enterprises and clients from the SME segment that prepare full financial reporting, the Bank determines internal rating classes in accordance with the adopted credit policy. The rating classes are based on the risk model dedicated to this part of the loan portfolio and are the basis for estimating the amount of the provision in accordance with IFRS 9. The Bank’s customers are assigned ratings from 1 (clients for whom the Bank identifies the lowest credit risk) to 12 (clients for whom the Bank identifies the highest credit risk). In order to assign ratings, the annual financial data provided by the client and the general quality assessment of its market situation are used.

The structure of overdue receivables

The purpose of repayment overdue analysis is to indicate the level of potential credit loss (in respect of receivables without impairment). The higher delinquency in repayment, the more likely it is to identify an objective impairment trigger in the future. An increase in the delay in repayment above zero days increases the chance of identifying impairment trigger, but does not itself constitute grounds for giving this trigger. In the case of exposures overdue below 91 days, the impairment trigger may, however, be identified based on additional information about the economic and financial situation of the client.

The structure of the loan portfolio divided into impaired exposures and not impaired exposures along with the level of arrears in repayment are presented in the tables below. For the purposes of calculating the amount of the allowance, as well as for the presentation of data in the tables below, the loan is considered not due on the day on which the instalment payment expires, but on the next day.

XLS
31.12.2019
Structure of loan portfolio in terms of impairment not impaired impaired Total
0 days 1-30 days 31-60 days 61-90 days
Mortgage loans and advances 17,851,522 272,210 28,903 8,732 342,371 18,503,738
Cash loans 7,342,714 123,147 24,211 7,413 187,339 7,684,824
Car loans 1,507,568 8,540 2,607 540 14,692 1,533,947
Credit cards 1,228,027 52,010 12,723 1,444 26,155 1,320,359
Investment loans 19,696,537 306,585 9,648 7,631 782,977 20,803,378
Limits in current accounts 10,851,918 38,440 5,703 10,091 341,984 11,248,136
Corporate revolving loans 7,436,518 106,063 5,876 3,676 292,293 7,844,426
Leases 3,624,307 98,241 9,457 5,493 123,372 3,860,870
Other 971,146 7,734 1,024 256 31,201 1,011,361
Total 70,510,257 1,012,970 100,152 45,276 2,142,384 73,811,039
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.
XLS
31.12.2018
Structure of loan portfolio in terms of impairment not impaired impaired Total
0 days 1-30 days 31-60 days 61-90 days
Mortgage loans and advances 15,887,582 335,068 34,152 8,857 373,176 16,638,835
Cash loans 7,784,509 155,780 30,614 13,217 257,248 8,241,368
Car loans 1,163,838 6,795 2,485 604 15,799 1,189,521
Credit cards 916,807 27,261 3,811 1,504 28,542 977,925
Investment loans 21,060,712 43,648 36,934 12,715 943,467 22,097,476
Limits in current accounts 11,648,742 42,368 26,314 9,585 364,122 12,091,131
Corporate revolving loans 6,010,634 23,042 4,834 8,695 167,710 6,214,915
Leases 3,292,895 79,606 10,735 984 62,384 3,446,604
Other 2,465,000 2,902 1,434 113 53,064 2,522,513
Total 70,230,719 716,469 151,312 56,273 2,265,512 73,420,284
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.

Impairment allowances

Impairment allowances reflect the expected credit loss calculated using the three-step approach required by IFRS 9, as described in Note 3.

Collaterals

The Bank assesses the creditworthiness of each client on an individual basis. The value of collateral obtained, if it is deemed necessary by the Bank due to the granting of a loan, is subject to valuation by the Bank. The Bank accepts various forms of collateral for loans, while the main categories include:

  • real estate mortgage;
  • insurance of real estate being the subject of a mortgage;
  • life insurance of the borrower;
  • registered pledge.
XLS
Gross value
with impairment 		Collateral
value 		Net value
with impairment
31.12.2019
Overdrafts: 750,850 549,689 341,984
corporates 414,966 318,225 169,975
households: 335,885 231,463 172,009
retail customers 22,766 436 5,821
individual entrepreneurs 90,220 17,122 19,476
farmers 222,899 213,905 146,712
Loans and advances: 3,457,321 2,123,811 1,667,145
corporates: 1,441,147 1,017,216 691,515
investment loans 796,108 720,148 493,017
revolving loans 578,400 275,035 187,962
other 66,639 22,033 10536
households: 2,016,174 1,106,595 975,630
retail customers, including: 1,318,647 585,661 560,818
mortgage loans 565,885 505,380 343,278
individual entrepreneurs 362,109 226,885 182,693
farmers 335,418 294,050 232,119
Lease receivables 218,523 – 133,255
Total gross loans and advances 4,426,694 2,673,500 2,142,384
Allowances (negative value) (2,284,310)
Total net loans and advances 2,142,384
Gross value
with impairment 		Collateral
value 		Net value
with impairment
31.12.2018
Overdrafts: 707,112 497,406 364,186
corporates 421,780 323,094 210,970
households: 285,332 174,312 153,215
retail customers 31,002 210 16,545
individual entrepreneurs 100,912 26,777 27,590
farmers 153,418 147,325 109,079
Loans and advances: 3,463,498 2,348,124 1,838,938
corporates 1,639,028 1,332,491 867,960
investment loans 736,307 680,054 401,360
revolving loans 432,016 274,660 56,240
other 470,705 377,776 410,363
households: 1,824,469 1,015,633 970,978
retail customers, including: 1,202,368 548,273 575,895
mortgage loans 519,868 466,081 287,632
individual entrepreneurs 381,249 253,767 224,161
farmers 240,852 213,593 170,923
Lease receivables 132,214 – 62,384
Total gross loans and advances 4,302,824 2,845,530 2,265,508
Allowances (negative value) (2,037,312)
Total net loans and advances 2,265,508
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.

 

In the period covered by the present financial statements, there were no significant changes in the quality of collateral as a result of deterioration or changes in the Bank’s collateral policy.

Loans and advances – credit quality

Loans and advances are classified in the overdue category, but in the case impairment is not identified and if the market current value of the collateral is sufficient to cover the value of principal, interest and other fees due to the Bank in relation to a given exposure.

Mortgage loans denominated in foreign currencies

Due to the significance of the portfolio of mortgage loans denominated in foreign currencies for retail customers, the Group discloses a number of additional, diverse information regarding the portfolio’s exposure.

Mortgage loans to retail customers account for ca. 24% of the loan portfolio of non-financial sector of the Group (gross carrying amount), with 26% being loans in foreign currencies the major part of which (99%) are denominated in CHF (the Swiss franc). The total gross carrying amount of mortgage loans in foreign currencies is PLN 4.9 billion.

The Group performs revaluation of the residential property pledged as collateral for loans on an annual basis, on the following assumptions:

  • where the debt is below PLN 12 million at the revaluation date – the property is revalued using a statistical method;
  • where the debt is more than PLN 12 million at the revaluation date – the property is revalued on a case-by-case basis.

The revalued amount is the basis for calculation of the current LTV for a single exposure and the average LTV for the entire portfolio as the average weighted by the gross carrying amount of individual LTVs.

The total on-balance sheet exposure and the average LTVs for mortgage loans in foreign currencies considering impairment and delinquency in days is presented below.

XLS
days past due gross balance
sheet value 		average LTV weighted
with gross balance
sheet value
0-30 days 4,680,441 78.78%
31-60 days 23,208 87.04%
61-90 days 7,113 82.01%
over 90 days 182,185 106.85%
Total 4,892,947 79.80%
impairment identified gross balance
sheet value 		average LTV weighted
with gross balance
sheet value
NO 4,587,148 78.57%
YES 305,799 99.18%
Total 4,892,947 79.83%

 

The average current LTV for the entire foreign currency mortgage loan portfolio exceeds the average current LTV for mortgage loans in the Polish currency (73%).

XLS
date of agreement number of
loans granted 		gross balance
sheet value 		average LTV weighted
with gross balance
sheet value 		gross balance
sheet value*
2005 and before 2,764 327,763 40.20% 313,710
2006 5,367 1,119,673 57.17% 1,076,216
2007 4,735 1,513,449 86.56% 1,428,039
2008 5,803 1,676,863 97.33% 1,553,595
2009 638 135,209 64.05% 128,728
2010 and after 309 119,990 88.38% 86,861
Total 19,616 4,892,947 79.80% 4,587,149
* Non-impaired loans.

Forbearance practices

The Bank treats its exposures as forborne if the obligor is provided with a forbearance due to economic reasons (financial difficulties), including any forbearance granted for exposures with identified impairment triggers. In case the forbearance is granted for a customer with a material economic loss, the Bank classifies such a customer as default.

A facility is understood as the occurrence of at least one of the following events:

  • a change to the repayment schedule, especially extending the loan maturity date;
  • cancellation of overdue amounts (e.g. capitalization of an overdue amount, which can be repaid at a later date);
  • redemption of principal, interest or fees;
  • consolidation of loans into one new product, if the amounts of payments of the consolidated loan are lower than the sum of payments of these loans separately before the consolidation occurred;
  • decrease of the base interest rate or margin;
  • originating a new loan to repay the existing debt;

Only in the period of customer’s financial difficulties or, in the period when, due to changes on the market, such difficulties may occur, i.e.:

  • the exposure is subject to debt collection; or
  • the exposure is not subject to debt collection but there is evidence (provided by the customer or obtained in the decision- making process) that the customer is facing financial difficulties or may be facing them in the near future.

A material economic loss is defined by the Bank as the drop of present value of expected cash flows, resulting from forbearance granted, equal or higher than 5%. The drop of the present value is calculated in accordance with the below formula:

𝑁𝑃𝑉 0  − 𝑁𝑃𝑉 1
 𝑁𝑃𝑉 0

where

the present value of expected cash flows (including interest and fees / commissions) prior to the introduction of changes in loan terms, discounted with the original effective interest rate,

the present value of expected cash flows (including interest and fees / commissions), after the introduction of changes in the loan terms, discounted using the original effective interest rate. In the case of consolidation of many loans for the original interest rate for the purpose of assessing the significance of economic loss, the average EIR weighted with the gross balance sheet exposure at the moment of granting the facility is assumed.

The “forborne” status is no longer assigned if the following conditions have been satisfied:

  • exposure reclassified to performing portfolio as a result of the analysis of financial situation (in case of corporate portfolio), which proved that the customer does not meet the criteria for being classified to the impaired portfolio;
  • the exposure has not been considered impaired for 24 months in a row;
  • none of the exposures to the customer are past due by more than 30 days;
  • the obligor has been making regular and considerable payments for at least a half of the trial period.
XLS
31.12.2019
Forborne exposures Portfolio including
forbearance
exposures 		including
change of
terms 		including
refinancing
Loans and advances for: 75,064,852 1,383,336 961,070 422,266
Non-banking financial institutions 576,521 – – –
Retail customers 29,997,525 415,075 317,032 98,043
Corporate customers 40,365,447 968,261 644,038 324,223
including retail farmers 8,732,840 290,659 259,831 30,828
Public sector institutions 129,915 – – –
Lease receivables 3,995,444 – – –
Impairment allowances on loans and advances (3,228,209) (395,411) (271,968) (123,443)
Non-banking financial institutions (2,314) – – –
Retail customers (1,158,392) (131,026) (101,783) (29,243)
Corporate customers (1,939,521) (264,385) (170,185) (94,200)
including retail farmers (408,748) – – –
Public sector institutions (1,925) – – –
Lease receivables (126,057) – – –
Total loans and advances (net) 71,836,643 987,925 689,102 298,823
31.12.2018
Forborne exposures Portfolio including
forbearance
exposures 		including
change of
terms 		including
refinancing
Loans and advances for: 74,054,662 964,935 682,508 282,427
Non-banking financial institutions 687,227 – – –
Retail customers 27,001,876 397,729 290,021 107,708
Corporate customers 42,613,747 567,206 392,487 174,719
including retail farmers 8,681,538 128,344 95,900 32,444
Public sector institutions 190,073 – – –
Lease receivables 3,561,739 – – –
Impairment allowances on loans and advances (3,056,961) (298,790) (190,417) (108,373)
Non-banking financial institutions (14,641) – – –
Retail customers (1,066,974) (107,728) (84,891) (22,837)
Corporate customers (1,858,267) (191,062) (105,526) (85,536)
including retail farmers (379,402) (22,965) (7,491) (15,474)
Public sector institutions (1,961) – – –
Lease receivables (115,118) – – –
Total loans and advances (net) 70,997,701 666,145 492,091 174,054
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53.1. Financial instrument strategy

Annual report 2019

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53.3. Market risk and ALM (asset and liabilities management)

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