Annual Financial Statements 2020
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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 680View entire presentation