Page 106 - 86395_CCB - 2024 Annual Report (web)

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are often obtained, such as personal guarantees. LTV banding
Real Estate Loans are secured on properties solely The Bank’s Real Estate lending balances falls into
located in the UK, concentration risks are monitored, the following LTV bandings:
and credit exposures are diversified by sector and
geography. The Bank retains the ownership of all LTV banding 2024 2023
assets financed by hire purchase and finance leases.
0 – 50% 38% 34%
Concentration of Credit Risk
51 – 60% 29% 30%
The Bank monitors concentration of Credit Risk by
product type, borrower type, geographic location 61 – 70% 30% 32%
and loan size.
71 – 80% 1% 2%
Lending by product 2024 2023 81%+ 2% 2%
and type %
Total 100% 100%
Real estate lending
Residential 25% 27% Credit Risk – security
Commercial 60% 59% The Bank enters into loan agreements with
customers, and where appropriate takes security.
Other 1% 1%
The security profile of the loan’s receivable book
Asset finance 8% 8% is shown below:
Classic Vehicles and Sports 6% 5% 2024 2023
Total 100% 100% £’000 £’000 % £’000 %

The Bank’s lending Real Estate lending portfolio is Secured on
geographically diversified across the UK: property 1,059,221 86 972,023 88
Secured on
Region 2024 2023 other assets 166,495 14 134,032 12
East Anglia 2% 2% Total 1,225,716 100 1,106,055 100
East Midlands 18% 18%

Greater London 5% 4% In addition to security over property, the Bank
may also take additional security in the form
North East 6% 6%
of Director Guarantees and cash deposits.
North West 15% 16% Collateralised deposits at the end of 2024
totalled £0.6m (2023: £0.9m).
Scotland 5% 6%
Credit Risk – allowance for impairment losses
South East 8% 8%
(see also Note 16)
South West 8% 7%
The Bank uses a forward‑looking ‘expected
Wales 5% 6%
credit loss’ (ECL) model to assess its Credit
West Midlands 8% 7% Risk. This requires considerable management
judgement over how changes in economic
Yorkshire/Humberside 20% 20%
factors affect ECLs, which are determined on a
Total 100% 100% probability‑weighted basis.
As the Bank has to date incurred limited arrears
The Bank’s Real Estate lending portfolio (by number
and losses in its initial twelve years of trading,
of accounts) falls into the following concentration
it has had to use significant management
by loan size:
judgement in calibrating the weightings and
values. Over time as the Bank obtains more
Loan size 2024 2023
performance data, it will continue to develop its
0 – £250k 40% 45% models and incorporate this performance data
into them.
£251k – £500k 26% 25%
The payment status of the Bank’s loans
£501k – £1,000k 18% 16%
and advances are a key driver of the Bank’s
£1,001k – £3,000k 13% 11% provisioning requirements. The table below
provides information on the payment due
£3,001k+ 3% 3%
status of loans and advances to customers
Total 100% 100% as at 31 December: