Republic Bank Limited
96
For the year ended September 30, 2015. Expressed in thousands of Trinidad and Tobago dollars ($’000) except where otherwise stated
Notes to theConsolidatedFinancial Statements
4
Financial
4 ADVANCES
(continued)
b) Allowance for impairment losses
(continued)
i) Impairment assessment
(continued)
Collectively assessed allowances
(continued)
Allowances are evaluated on each reporting date with each portfolio receiving a separate review. The collective assessment
takes account of impairment that is likely to be present in the portfolio even though there is not yet objective evidence of
the impairment in an individual assessment. Impairment losses are estimated by taking into consideration the following
information: historical losses on the portfolio, current economic conditions, the approximate delay between the time a loss
is likely to have been incurred and the time it will be identified as requiring an individually assessed impairment allowance,
and expected receipts and recoveries once impaired.
ii) Reconciliation of the allowance for impairment losses for loans and advances by class
2015
Commercial
Retail and Corporate
lending
lending
Mortgages
Total
Balance brought forward
73,831
240,841
76,733
391,405
Acquisition of subsidiaries
11,106
80,529
27,125
118,760
Translation adjustment
136
963
208
1,307
Charge-offs and write-offs
(31,537)
(31,475)
(2,237)
(65,249)
Loan impairment expense
113,180
223,265
61,740
398,185
Loan impairment recoveries
(50,574)
(153,840)
(28,507)
(232,921)
Balance carried forward
116,142
360,283
135,062
611,487
Individual impairment
92,960
305,372
108,292
506,624
Collective impairment
23,182
54,911
26,770
104,863
116,142
360,283
135,062
611,487
Gross amount of loans individually determined to
be impaired, before deducting any allowance
186,424
649,077
414,226
1,249,727
