Page 111 - 86395_CCB - 2024 Annual Report (web)

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Forbearance analysis
The table below shows the value of forbearance arrangements agreed by the Bank.

No. of loans Value of loans
No. of customers (in concession period)
31 December 2024 In concession Completed Concession* (in concession period) £’000
Asset Finance 0 6 0 0
Real Estate 5 36 5 12,097

Total 5 42 5 12,097

No. of loans Value of loans
No. of customers (in concession period)
31 December 2023 In concession Completed Concession* (in concession period) £’000
Asset Finance 1 7 1 30

Real Estate 22 5 17 14,319
Total 23 12 18 14,349

At the end of 2024 the Bank had 5 Real Estate Forward-looking information
Finance accounts which were in their concession
Determining expected credit losses under IFRS
period. In addition, there were a further
9 requires the incorporation of forward‑looking
36 accounts which had received forbearance
macroeconomic information that is reasonable
within the past 2 years but are now performing.
and supportable. To capture the effect of changes
In Asset Finance there were 6 accounts which had
to the economic environment, the calculation of
received forbearance within the past 2 years but
expected credit losses incorporates forward‑looking
are now performing.
information, and assumptions linked to economic
variables that impact losses in each portfolio.
The introduction of macroeconomic information
introduces additional volatility to provisions. To
calculate forward looking provisions, the Bank
sources data from industry leading companies as
well as using its own internal knowledge and industry
publications such as the Bank of England Annual
Cyclical Scenario (ACS). Management exercises
judgement in estimating the future economic
conditions which are incorporated into provisions
through the modelling of multiple scenarios.
For the Bank’s provision calculation four different
projected economic scenarios are considered to
cover a range of possible outcomes, reflecting upside
and downside scenarios relative to the baseline
forecast economic conditions.
The economic scenarios are generated to capture
a range of possible economic outcomes to facilitate
the calculation of unbiased and expected credit
losses. The economic variables modelled have been
identified as those that have the most significant
impact on the Bank’s financial statements, and their
impact on provisions can be directly assessed.
The Bank’s economic scenarios, and the probability
weightings assigned to each scenario, are reviewed
and challenged by the Bank’s ALCO and Impairment
& Provisions Committees and approved by The Audit
Committee. The Bank’s scenarios, their weightings,
and individual forecasts are set out in the tables below: