IBL Financial Overview
Solid asset quality despite COVID-19 related impairment charges
Core loans and asset quality
R'mn
300,000
250,000
200,000
150,000
100,000
50,000
283,240
2.5%
2.10%
2.0%
1.5%
1.0%
Credit quality metrics on core loans and advances for the
financial year ending 31 March 2021 are as follows:
The total income statement expected credit loss
(ECL) impairment charges for the financial year
ending 31 March 2021 decreased to R567 million
(2020: R1 088 million). Higher specific
impairments and the inclusion of an additional
model overlay were offset by stable portfolio
impairments due to broadly flat lending books and
an increased level of recoveries.
0.5%
0.18%
0
2017
0.0%
2018
2019
2020
2021
Net core loans (LHS)
Credit loss ratio (RHS)
Net default loans before collateral as a % of net core loans / Stage 3 net of ECL as a % of
net core loans subject to ECL (RHS)
ā
The credit loss ratio* was 0.18% at 31 March
2021 (31 March 2020: 0.37%), which is below our
through-the-cycle range of 30bps - 40bps and well
below industry averages.
Since 31 March 2020 Stage 3 gross core loans
subject to ECL increased by R2 830 million to
R7 183 million.
Stage 3 net of ECL as a % of net core loans
subject to ECL was 2.1% for 31 March 2021 (31
March 2020: 0.9%).
*Expected credit loss (ECL) impairment charges on gross core loans as a % of average gross core loans subject to ECL
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