Page 93 - 86395_CCB - 2024 Annual Report (web)

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Stage 1: Stage 2: Stage 3:
Impairment provision movement 2023 subject to subject to subject to
£’000 12‑month ECL lifetime ECL lifetime ECL Total
Closing Balance at 31 December 2023 3,288 8,907 10,582 22,777

Opening Balance at 1 January 2023 3,008 8,283 5,563 16,854
Increase (decrease) in provision 280 624 5,019 5,923

Increase (decrease) in provision

New loans originated 1,347 – – 1,347
Derecognised loans (459) (1,198) (262) (1,919)
Allowance utilised in respect of write‑offs – – (2,174) (2,174)

Transfers between Stages and
increase (decrease) in Credit Risk
– Transfers from Stage 1 (500) 434 66 –
– Transfers from Stage 2 1,199 (2,783) 1,584 –
– Transfers from Stage 3 155 650 (805) –
– Increase in Credit Risk (1,462) 3,521 6,610 8,669

280 624 5,019 5,923
P&L charge
Increase (decrease) in 280 624 7,193 8,097
provision on drawn loans
Increase (decrease) in provision (10) – – (10)
on undrawn commitments

Write‑back (net of prior year provisions) – (274) (274)
Income Adjustment* (550) (550)
Total P&L impairment charge 270 624 6,369 7,263

* Interest originally charged on the gross carrying amount for credit impaired stage 3 assets which has subsequently been recalculated on the net carrying amount.
This resulted in a reduced interest income and impairment charge in the income statement of £550k.
Stage 1: Stage 2: Stage 3:
Gross loan balances by Stage 2024 subject to subject to subject to
£’000 12‑month ECL lifetime ECL lifetime ECL Total
Closing Balance at 31 December 2024 1,039,360 155,592 30,764 1,225,716
Opening Balance at 1 January 2024 891,581 178,597 35,877 1,106,055
Increase (decrease) in loan balances 147,779 (23,005) (5,113) 119,661

New loans originated 359,920 – – 359,920
Derecognised loans (127,707) (38,512) (3,308) (169,527)
Loans written‑off – – (14,061) (14,061)

Transfers between Stages
– Transfers from Stage 1 (88,011) 85,412 2,599 –
– Transfers from Stage 2 53,921 (67,230) 13,309 –
– Transfers from Stage 3 – 264 (264) –
– Capital repayments/
Arrears accumulation (50,344) (2,939) (3,388) (56,671)

147,779 (23,005) (5,113) 119,661