Annual Financial Statements 2020 slide image

Annual Financial Statements 2020

40 40 ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED STANDARD BANK NAMIBIA LIMITED Annual financial statements 2020 41 6. 6.1 Loans and advances Classification 6. Loans and advances continued 6.3 Reconciliation of ECL for loans and advances measured at amortised cost 2020 N$'000 Net loans and advances measured at amortised cost 24 931 346 2019 N$'000 26 262 826 Stage 1 N$'000 Stage 2 N$'000 Stage 3 (including IIS) N$'000 Total N$'000 Gross loans and advances measured at amortised cost 25 733 026 26 861 425 Opening ECL 1 January 2019 Transfers between stages¹ 88 338 157 707 220 690 466 735 41 274 (23 998) (17 276) Mortgage loans² 12 733 701 12 939 977 Vehicle and asset finance (note 6.2) 2 800 832 Card debtors Corporate lending Sovereign lending Banks Other loans and advances² 158 960 2 904 936 175 900 Transfers to/(from) stage 1 Transfers to/(from) stage 2 Transfers to/(from) stage 3 (23 774) (17 500) (41 274) 23 774 224 17 500 (224) 23 998 17 276 4 155 265 2 474 949 805 245 1 726 283 (44 403) 8 124 310 143 273 864 Net ECL (released)/raised 2 238 428 2 836 905 2 840 595 3 802 475 Credit impairments on loans and advances (note 6.3)¹ Net loans and advances (801 680) (598 599) 24 931 346 26 262 826 6.2 1 The overall higher expected credit losses is mainly attributable to constrained collections and further protraction in the legal environment stemming from the national Covid-19 lockdown, increased forward-looking provisioning on the back off the weakened economic outlook (refer to the key management assumptions for further information in this regard), and changes from stage 1 to stage 2 and 3 based on risk profile assessments and stress caused by the impact of Covid-19. 2 The comparatives for this line has been updated to reclassify a commercial property loan from other loans and advances to mortgage loans. Vehicle and asset finance ECL on new exposures raised² Subsequent changes in ECL Change in ECL due to derecognition Impaired accounts written off³ Exchange and other movements4 Closing ECL 31 December 2019 18 414 4 722 23 136 (57 935) (4 882) 6 717 (3 315) 310 143 258 925 (8 197) (125 775) (125 775) 3 199 (19 424) (16 225) 88 408 141 833 368 358 598 599 Opening ECL 1 January 2020 Transfers between stages¹ Transfers to/(from) stage 1. 88 408 141 833 368 358 598 599 29 488 (15 433) (14 055) (10 579) (18 909) (29 488) Transfers to/(from) stage 2 10 579 4 854 15 433 Transfers to/(from) stage 3 18 909 (4 854) 14 055 2020 N$'000 3 172 611 314 763 2 590 797 267 051 (371 779) (515 687) 2 800 832 2 904 936 305 694 279 045 2 283 465 211 673 2 625 891 Gross investment in vehicle and asset finance Receivable within one year Receivable after one year but within five years Receivable after five years Unearned finance charges deducted Net investment in vehicle and asset finance Receivable within one year Receivable after one year but within five years Receivable after five years 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 60 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. The decrease in the net investment in vehicles and asset finance during the year was due to repayments from customers. 1 The company's 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 period. 3 The contractual amount outstanding on loans and advances that were written off during the reporting year that are still subject to enforcement activities is N$101 million. 4 Exchange and other movements includes the time value of money (TVM) unwind and net interest in suspense (IIS) raised and released. 2019 N$'000 3 420 623 353 335 3 067 288 Net ECL (released)/raised ECL on new exposures raised² Subsequent changes in ECL Change in ECL due to derecognition (24 833) 40 340 28 365 (39 629) (13 569) 12 110 29 826 (1 596) 268 884 2 413 284 391 42 888 266 471 256 668 (15 165) Impaired accounts written off³ Exchange and other movements4 Closing ECL 31 December 2020 494 93 557 109 166 849 (115 899) 33 986 (115 899) 34 589 541 274 801 680
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