Annual Report 2015
123
21 RISK MANAGEMENT
(continued)
21.2 Credit risk
(continued)
21.2.3 Credit quality per category of financial assets
(continued)
Advances - Commercial and Corporate
(continued)
The table below illustrates the credit quality of commercial and corporate advances as at September 30:
Superior
Desirable
Acceptable
Sub-standard
Total
2015
511,989
2,700,543
11,223,828
622,983
15,059,343
2014
429,159
2,043,598
8,243,645
456,945
11,173,347
The following is an aging of facilities classed as sub-standard:
Less than
31 to 60
61 to 90
More than
30 days
days
days
91 days
Impaired
Total
2015
111,371
27,805
38,032
111,850
333,925
622,983
2014
110,583
4,636
8,137
4,019
329,570
456,945
Advances - Retail loans and Mortgages
These retail loans and mortgages are individually insignificant and are secured by the related assets for which these
loans were granted to fund. The following is an aging analysis of these facilities:
Current
Less than
31 to 60
61 to 90 More than
30 days
days
days
91 days Impaired
Total
2015
14,595,102
2,367,694
96,336
163,463
365,763
360,297 17,948,655
2014
12,975,198
2,009,913
99,157
145,197
376,065
316,530
15,922,060
Financial investment securities
The debt securities within the Group’s investment security portfolio are exposed to credit risk. The credit quality of each
individual security is internally assessed based on the financial strength, reputation and market position of the issuing
company and the ability of that company to service the debt. The level of credit risk thus assessed and associated with
the security is assigned a risk premium. These premiums are defined as follows:
Superior:
Government and Government Guaranteed securities, securities secured by a Letter of comfort from
the Government and securities placed with institutions that have been accorded the highest rating
by an international rating agency. These securities are considered risk free.
Desirable:
Corporate securities that are current and being serviced in accordance with the terms and conditions of
the underlying agreements and Government and Government Guaranteed securities where the country
has been recently downgraded by an international rating agency. Issuing institution has good financial
strength and reputation.
