Annual Report 2015
95
4 ADVANCES
(continued)
a) Advances
(continued)
2014
Commercial
Retail and Corporate
lending
lending
Mortgages
Total
Performing advances
5,200,539
10,892,477
10,453,975
26,546,991
Non-performing advances
111,145
539,633
322,833
973,611
5,311,684
11,432,110
10,776,808
27,520,602
Unearned interest/finance charge
(46,692)
(64,976)
–
(111,668)
Accrued interest
8,324
47,054
22,500
77,878
5,273,316
11,414,188
10,799,308
27,486,812
Allowance for impairment losses
(73,831)
(240,841)
(76,733)
(391,405)
Net advances
5,199,485
11,173,347
10,722,575
27,095,407
b) Allowance for impairment losses
i) Impairment assessment
The main considerations for the loan impairment assessment include whether any payments of principal or interest
are overdue by more than 90 days or there are any known difficulties in the cash flows of counterparties, credit rating
downgrades, or infringement of the original terms of the contract. The Group addresses impairment assessment in two
areas: individually assessed allowances and collectively assessed allowances.
Individually assessed allowances
The Group determines the allowances appropriate for each individually significant loan or advance on an individual basis.
Items considered when determining allowance amounts include the sustainability of the counterparty’s business plan, its
ability to improve performance once a financial difficulty has arisen, projected receipts and the expected dividend payout
should bankruptcy ensue, the availability of other financial support and the realisable value of collateral and the timing
of the expected cash flows. The impairment losses are evaluated at each reporting date, unless unforeseen circumstances
require more immediate attention.
Collectively assessed allowances
Allowances are assessed collectively for losses on loans and advances that are not individually significant (including credit
cards, residential mortgages and unsecured consumer lending) and for individually significant loans and advances where
there is not yet objective evidence of individual impairment.
