SBN HOLDINGS LIMITED Annual Report 2022
NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued
76
5.
5.1
Loans and advances
Classification
SBN HOLDINGS LIMITED
Annual report 2022
77
5.
Loans and advances continued
5.3
Reconciliation of ECL for loans and advances measured at amortised cost
GROUP
2022
N$'000
2021
Restated¹
N$'000
25 382 322
Net loans and advances measured at amortised cost
25 969 450
Gross loans and advances measured at amortised cost
26 731 233
26 377 761
Home services
11 822 800
12 776 077
Vehicle and asset finance (note 5.2)
2 893 913
Card and payments
140 088
Corporate lending
Sovereign lending
Bank lending²
Other loans and advances³
5 057 176
267 375
3 714 600
3 177 030
142 026
3 332 015
598 085
3 257 649
2 835 281
3 094 879
Expected credit losses (note 5.3)4
(761 783)
(995 439)
COMPANY
2022
N$'000
2021
N$'000
Net loans and advances
25 969 450
25 382 322
1 Refer to restatement narrative included in the accounting policy elections and restatements' section for the restatements of accrued interest and interest
in suspense and the impact on loans and advances.
2 Included in bank lending is an amount of N$3.1 billion (2021: N$3.3 billion) relating to on-demand gross loans and advances to banks that qualifies as cash
and cash equivalents (note 33.8).
3 Comprises personal unsecured lending and business and other lending.
4 The overall lower ECL is mainly driven by the realisation of management's strategic initiatives, as encompassed in our non-performing loan (NPL) reduction
strategy, that was implemented in 2021.
5.2
Vehicle and asset finance
GROUP
COMPANY
2022
N$'000
2021
Restated¹
N$'000
2022
N$'000
2021
N$'000
Gross investment in vehicle and asset financing
Receivable within one year
3 538 505
3 643 720
1 245 000
Receivable after one year but within five years
Receivable after five years
Unearned finance charges deducted
2 207 762
85 743
(644 592)
255 980
2 467 934
919 806
(466 690)
3 177 030
Receivable within one year
Net investment in vehicle and asset financing
2 893 913
1 112 857
247 613
Receivable after one year but within five years
Receivable after five years
1 724 377
56 679
2 194 043
735 374
1
Refer to restatement narrative included in the accounting policy elections and restatements section for the restatements of accrued interest and interest in
suspense and the impact on loans and advances.
Leases entered into are at market-related terms. Under the terms of the lease agreement, no contingent rentals are payable.
Moveable assets are leased or sold to customers under finance leases and instalment sale agreements for periods varying
between 12 and 72 months. Depending on the terms of the agreement, the lessee may have the option to purchase the asset at
the end of the lease term.
Stage 1
N$'000
Stage 2
N$'000
Stage 3
(including
IIS)
N$'000
Total5
N$'000
GROUP
Opening ECL 1 January 2021
92 663
166 849
541 778
801 290
Transfers between stages¹
18 287
(8538)
(9 749)
Transfers (from)/to stage 1
(5 648)
(12 639)
(18 287)
Transfers to/(from) stage 2
5 648
2 890
8 538
Transfers to/(from) stage 3
12 639
(2 890)
9 749
Net ECL (released)/raised
(34 425)
16 538
346 050
328 163
ECL on new exposures raised²
Subsequent changes in ECL
17 262
Change in ECL due to derecognition
(47 464)
(4 223)
5 497
13 379
(2 338)
15 577
330 473
38 336
296 388
(6561)
Impaired accounts written off³
(122 651)
Exchange and other movements4
(11 363)
(122 651)
(11 363)
Closing ECL 31 December 2021 - restated6
76 525
174 849
744 065
995 439
Opening ECL 1 January 2022
76 525
174 849
744 065
995 439
Transfers between stages¹
13 606
(2 400)
(11 206)
Transfers to/(from) stage 1
(5 495)
(8 111)
(13 606)
Transfers (from)/to stage 2
5 495
(3 095)
2 400
Transfers (from)/to stage 3
8 111
3 095
11 206
Net ECL (released)/raised
ECL on new exposures raised²
Subsequent changes in ECL
Change in ECL due to derecognition
1 051
40 347
161 701
203 099
17 391
33 329
4 377
55 097
(15 305)
(1 035)
13 132
(6 114)
157 310
155 137
14
(7 135)
Impaired accounts written off³
Exchange and other movements4
Closing ECL 31 December 2022
(751)
19
(456 442)
20 419
(456 442)
19 687
90 431
212 815
458 537
761 783
1 The group policy is to transfer opening balances based on the ECL stage at the end of the reporting period. Therefore, exposures can be transferred directly
from stage 3 to stage 1 as the curing requirements would have been satisfied during the reporting period.
2 The ECL recognised on new exposures originated during the reporting period (which are not included in opening balances) are included within the line 'ECL
on new exposures raised' ECL stage as at the end of the reporting year.
3 The contractual amount outstanding on loans and advances that were written off during the reporting period that are still subject to enforcement activities
is N$204 million (2021: N$123 million).
4 Exchange and other movements include the time value of money (TVM) unwind and net interest in suspense (IIS) raised and released.
5 The ECL raised is for loans and advances and undrawn facilities.
6 Refer to restatement narrative included in the accounting policy elections and restatements section for the restatements of accrued interest and interest in
suspense and the impact on loans and advances.View entire presentation