Page 99 - CCB_Annual Report_2022
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98 Notes to the Financial Statements 99
Stage 1: Stage 2: Stage 3: Total Stage 1: Stage 2: Stage 3: Total
Impairment provision movement 2021 subject to subject to subject to Gross loan balances by Stage 2021 subject to subject to subject to
£’000 12-month ECL lifetime ECL lifetime ECL £’000 12-month ECL lifetime ECL lifetime ECL
Closing Balance at 31 December 2021 2,836 5,954 5,976 14,766 Closing Balance at 31 December 2021 848,077 115,948 28,575 992,600
Opening Balance at 1 January 2021 3,332 4,867 4,252 12,451 Opening Balance at 1 January 2021 625,510 182,749 32,572 840,831
Increase (decrease) in provision (496) 1,087 1,724 2,315 Increase (decrease) in loan balances 222,567 (66,801) (3,997) 151,769
Increase (decrease) in provision Increase (decrease) in loan balances
New loans originated 942 296 – 1,238 New loans originated 299,081 8,002 – 307,083
Derecognised loans (424) (448) (288) (1,160) Derecognised loans (71,769) (30,778) (3,799) (106,346)
Loan commitments 148 – – 148 Loans written-off (141) (753) (3,334) (4,228)
Allowance utilised in respect of write-offs – (61) (840) (901) Transfers between Stages
Transfers between Stages and increase · Transfers from Stage 1 (61,057) 60,286 771 –
(decrease) in credit risk
· Transfers from Stage 2 94,704 (101,385) 6,681 –
· Transfers from Stage 1 (326) 325 1 –
· Transfers from Stage 3 772 494 (1,266) –
· Transfers from Stage 2 1,889 (2,184) 295 –
· (Capital repayments) /
· Transfers from Stage 3 56 114 (170) – Arrears accumulation (39,023) (2,667) (3,050) (44,740)
· Increase in credit risk (2,781) 3,045 2,726 2,990 222,567 (66,801) (3,997) 151,769
(496) 1,087 1,724 2,315
P&L charge Gross loan balance Expected Credit Loss (ECL) Net balance
Increase (decrease) in provision (496) 1,087 1,724 2,315 £’000 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total
Write-Offs 104 31 1,343 1,478 Real Estate
P&L impairment charge (392) 1,118 3,067 3,793 Finance 758,879 113,270 28,334 2,277 5,793 5,766 756,602 107,477 22,568 886,647
Asset
Income Adjustment* – – (267) (267)
Finance 89,198 2,678 241 559 161 210 88,639 2,517 31 91,187
Non-customer lending related post
write-off recoveries – – (2) (2) At 31
December
Total P&L impairment charge (392) 1,118 2,798 3,524 2021 848,077 115,948 28,575 2,836 5,954 5,976 845,241 109,994 22,599 977,834
* Interest originally charged on the gross carrying amount for credit impaired stage 3 assets which has subsequently been recalculated on the Real Estate
net carrying amount. This resulted in a reduced interest income and impairment charge in the income statement of £267k.
Finance 761,269 156,789 23,832 1,964 8,013 4,753 759,305 148,776 19,079 927,160
Asset
Stage 1: Stage 2: Stage 3: Total Finance 104,392 4,765 3,591 1,118 270 810 103,274 4,495 2,781 110,550
Gross loan balances by Stage 2022 subject to subject to subject to At 31
£’000 12-month ECL lifetime ECL lifetime ECL
December
Closing Balance at 31 December 2022 865,661 161,554 27,423 1,054,638 2022 865,661 161,554 27,423 3,082 8,283 5,563 862,579 153,271 21,860 1,037,710
Opening Balance at 1 January 2022 848,077 115,948 28,575 992,600
Increase (decrease) in loan balances 17,584 45,606 (1,152) 62,038 2022 2021
New loans originated 276,935 8,312 767 286,014 £’000 Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Derecognised loans (158,086) (19,568) (847) (178,501) Loan loss coverage ratio % 0.4% 5.1% 20.3% 1.6% 0.3% 5.1% 20.9% 1.5%
Loans written-off (1,046) (112) (4,828) (5,986)
Transfers between Stages
· Transfers from Stage 1 (87,922) 80,594 7,328 –
· Transfers from Stage 2 21,085 (27,407) 6,322 –
· Transfers from Stage 3 – 10,245 (10,245) –
· (Capital repayments) /
Arrears accumulation (33,382) (6,458) 351 (39,489)
17,584 45,606 (1,152) 62,038
