70 / 135
CITIC LIMITED
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
/ 68
19 Loans and advances to customers and other parties
(continued)
(c) Assessment method of allowance for impairment losses
(continued)
Notes:
(i)
Impaired loans and advances include loans and advances for which objective evidence of impairment exists and which
have been assessed as bearing significant impairment losses which are assessed individually or collectively (portfolios of
homogeneous loans and advances).
(ii)
As at 30 June 2016, the loans and advances of the Group for which the impairment allowance were individually assessed
amounted to HK$37,450 million (31 December 2015: HK$37,094 million). The secured and unsecured portion of these loans and
advances were as follows:
30 June
2016
31 December
2015
HK$ million
HK$ million
Secured portion
13,113
12,396
Unsecured portion
24,337
24,698
37,450
37,094
As at 30 June 2016, the fair value of collateral held against these loans and advances amounted to HK$18,211 million (31
December 2015: HK$19,935 million).
The fair value of collateral was estimated by management based on the latest available external valuations adjusted by taking
into account the current realisation experience as well as market situation.
(d) Movements of allowance for impairment losses
Six months ended 30 June 2016
Loans and
advances for
Impaired loans and advances
which the
allowance is
collectively
assessed
for which the
allowance is
collectively
assessed
for which the
allowance is
individually
assessed
Total
HK$ million HK$ million HK$ million HK$ million
At 1 January
47,335
6,978
21,973
76,286
Charge for the period
– Impairment allowance on loans charged
228
3,926
25,605
29,759
– Reversal of impairment for the period
(3,138)
(204)
(2,785)
(6,127)
Unwinding of discount on allowance
–
–
(341)
(341)
Write-offs
–
(2,464)
(21,185)
(23,649)
Recovery of loans and advances written
off in previous year
–
204
97
301
Changes of exchange rate
(879)
(162)
(294)
(1,335)
At 30 June
43,546
8,278
23,070
74,894