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CITIC LIMITED
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
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31 Contingent liabilities and commitments
(a) Credit commitments
Credit commitments in connection with the financial services segment of the Group take the form of
loan commitments, credit card commitments, financial guarantees and letters of credit.
Loan commitments represent the undrawn amount of approved loans with signed contracts. Credit
card commitments represent the credit card overdraft limits authorised by the Group. Financial
guarantees and letters of credit represent guarantee provided by the Group to guarantee the
performance of customers to third parties. Acceptances comprise undertakings by the Group to
pay bills of exchange drawn on customers. The Group expects most acceptances to be settled
simultaneously with the reimbursement from the customers.
The contractual amounts of credit commitments by category as at the balance sheet date are set out
below. The amounts disclosed in respect of loan commitments and credit card commitments assume
that amounts are fully drawn down. The amounts of guarantees, letters of credit and acceptances
represent the maximum potential loss that would be recognised as at the balance sheet date if
counterparties failed to perform as contracted.
30 June
2016
31 December
2015
HK$ million
HK$ million
Contractual amount
Loan commitments
With an original maturity of within 1 year
194,302
154,627
With an original maturity of 1 year or above
62,321
83,210
256,623
237,837
Guarantees
178,263
168,190
Letters of credit
105,421
109,784
Acceptances
671,085
753,607
Credit card commitments
220,144
178,015
Others
16
5,040
1,431,552
1,452,473
(b) Credit commitments analysed by credit risk weighted amount
30 June
2016
31 December
2015
HK$ million
HK$ million
Credit risk weighted amount on credit commitments
397,448
467,758
Notes:
(i)
The above credit risk weighted amount is solely in connection with the credit commitments held by CITIC Bank under the
financial services segment of the Group.
(ii)
As at 30 June 2016 and 31 December 2015, the credit risk weighted amount refers to the amount as computed in accordance
with the rules set out by the China Banking Regulatory Commission and depends on the status of counterparties and the
maturity characteristics. The risk weighting used is ranging from 0% to 150%.