ING Bank Śląski | Annual Report 2014

ING BANK ŚLĄSKI

ING BANK ŚLĄSKIAnnual Report 2014

5. Forborne exposures and non-performing exposures

The Bank incorporated into its internal regulations the rules for identification and reporting forbearance and non-performing exposures under EBA  Final Draft Implementing  Technical Standards on Supervisory reporting on forbearance and non performing exposures under article 99(4) of Regulation No. 575/2013 No. EBA/ITS/2013/03/rev1 of 24 July 2014. The Bank will verify its regulations on account of compliance with EBA standards and will adapt them as needed after EBA has published their final version.

According to this definition, forbearance has occurred if the following conditions are simultaneously met:

  • the client is in financial difficulties which results or may result in the inability to service the debt under the terms and conditions of the original credit contract,
  • the Bank decided to made the concession to the borrower in order to enable the customer to meet contractual obligations or to prudent difficulties in repayment of  the debt, i.e. the Bank decided on modification or refinancing of the credit exposure in full or in part, which modification or refinancing does not derive from commercial reasons and the modification are extended on terms and conditions which differ from market conditions,
  • the client accepted this concession, i.e. the relevant agreement is concluded or original contract is modified, giving the following type of concession:
    • extension of the repayment period,
    • rescheduling the repayments (i.e. reduction or deferral of repayments, including the suspension of principal or interest),
    • reducing of the margin,
    • other concession (which is not made not due to commercial reasons and not granted under market conditions).

In keeping with the cited EBA  Final Draft Implementing  Technical Standards of 24 July 2014, the Bank recognises as non-performing exposures those exposures that meet at least one of the below criteria:

  • material exposure is more than 90 days past-due; or
  • in the opinion of the Bank, the client is unlikely to pay its credit obligation in full without taking by the Bank the actions like realization of  collateral  (regardless of the value of the overdue amount and the number of days past due).

Exposures are also classified to the non-performing exposure portfolio if the performing forborne contract becomes more than 30 days past-due or if additional forbearance measures is extended to this forborne exposure. 

For the retail segment – all exposures in restructuring are deemed forbearance exposures. Impairment is recognised for exposures in restructuring. 

Loan portfolio division into performing and non-performing exposure with forborne exposures indication
  Performing exposure   Non-performing exposure  
of which forbearance   of which forbearance  
Modification of terms and conditions Refinancing Under probation* Modification of terms and conditions Refinancing Defaulted Impaired
Loan portfolio – gross value, of which: 56,372.2 399.1 397.6 1.5 0.0 2,378.2 1,090.0 1,088.7 1.3 1,089.8 1,089.8
Corporate banking segment, of which: 34,987.2 399.1 397.6 1.5 0.0 1,793.8 1,047.8 1,046.5 1.3 1,047.6 1,047.6
  - loans and advances 25,436.2 398.8 397.3 1.5 0.0 1,569.5 963.0 961.7 1.3 962.8 962.8
  - leasing receivables 4,033.6 0.3 0.3 0.0 0.0 140.1 33.7 33.7 0.0 33.7 33.7
  - factoring receivables 2,745.7 0.0 0.0 0.0 0.0 84.2 51.1 51.1 0.0 51.1 51.1
  - corporate and municipal bonds 2,771.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Retail banking segment, of which: 21,385.0 0.0 0.0 0.0 0.0 584.4 42.2 42.2 0.0 42.2 42.2
  - mortgages 16,488.8 0.0 0.0 0.0 0.0 192.0 19.0 19.0 0.0 19.0 19.0
  - other loans and advances 4,896.2 0.0 0.0 0.0 0.0 392.4 23.2 23.2 0.0 23.2 23.2
Impairment losses, of which: -361.5 -17.1 -16.9 -0.2 0.0 -1,358.8 -499.7 -499.7 0.0 -499.6 -499.6
Corporate banking segment, of which: -274.1 -17.1 -16.9 -0.2 0.0 -879.6 -473.6 -473.6 0.0 -473.5 -473.5
  - loans and advances -258.7 -17.1 -16.9 -0.2 0.0 -813.6 -456.6 -456.6 0.0 -456.5 -456.5
  - leasing receivables -6.4 0.0 0.0 0.0 0.0 -55.5 -14.9 -14.9 0.0 -14.9 -14.9
  - factoring receivables -3.4 0.0 0.0 0.0 0.0 -10.5 -2.1 -2.1 0.0 -2.1 -2.1
  - corporate and municipal bonds -5.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Retail banking segment, of which: -87.4 0.0 0.0 0.0 0.0 -479.2 -26.1 -26.1 0.0 -26.1 -26.1
  - mortgages -30.2 0.0 0.0 0.0 0.0 -143.1 -11.8 -11.8 0.0 -11.8 -11.8
  - other loans and advances -57.2 0.0 0.0 0.0 0.0 -336.1 -14.3 -14.3 0.0 -14.3 -14.3
Loan portfolio – net value, of which: 56,010.7 382.0 380.7 1.3 0.0 1,019.4 590.3 589.0 1.3 590.2 590.2
Corporate banking segment, of which: 34,713.1 382.0 380.7 1.3 0.0 914.2 574.2 572.9 1.3 574.1 574.1
  - loans and advances 25,177.5 381.7 380.4 1.3 0.0 755.9 506.4 505.1 1.3 506.3 506.3
  - leasing receivables 4,027.2 0.3 0.3 0.0 0.0 84.6 18.8 18.8 0.0 18.8 18.8
  - factoring receivables 2,742.3 0.0 0.0 0.0 0.0 73.7 49.0 49.0 0.0 49.0 49.0
  - corporate and municipal bonds 2,766.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Retail banking segment, of which: 21,297.6 0.0 0.0 0.0 0.0 105.2 16.1 16.1 0.0 16.1 16.1
  - mortgages 16,458.6 0.0 0.0 0.0 0.0 48.9 7.2 7.2 0.0 7.2 7.2
  - other loans and advances 4,839.0 0.0 0.0 0.0 0.0 56.3 8.9 8.9 0.0 8.9 8.9

*) The Bank classifies to “Under probation” class, exposures for which forbearance measures were granted in the past, and which are currently in a curing period

 

Credit quality of forborne exposures
risk rating exposure in PLN million
performing portfolio non-performing portfolio
on-balance off-balance on-balance off-balance
Corporate banking segment 399.1 82.2 1,047.8 87.9
11 108.0 0.0 0.0 0.0
14 9.5 0.0 0.0 0.0
15 31.4 48.5 0.0 0.0
16 2.7 0.0 0.0 0.0
17 40.4 1.6 0.0 0.0
18 72.1 8.2 0.0 0.0
19 135.0 23.9 0.2 0.0
20 0.0 0.0 716.0 84.8
21 0.0 0.0 7.9 0.0
22 0.0 0.0 323.7 3.1
Retail banking segment 0.0 0.0 42.2 0.1
20 0.0 0.0 41.9 0.1
22 0.0 0.0 0.3 0.0
Total 399.1 82.2 1,090.0 88.0

 

 

number of days overdue exposure in PLN million
performing portfolio non-performing portfolio
on-balance off-balance on-balance off-balance
Corporate banking segment 399.1 82.2 1,047.8 87.9
0 390.3 82.2 561.9 87.9
1-30 1.9 0.0 73.6 0.0
31-60 6.0 0.0 9.3 0.0
61-90 0.9 0.0 4.9 0.0
91-180 0.0 0.0 20.1 0.0
181-365 0.0 0.0 58.1 0.0
>365 0.0 0.0 319.9 0.0
Retail banking segment 0.0 0.0 42.2 0.1
0 0.0 0.0 28.9 0.1
1-30 0.0 0.0 7.7 0.0
31-60 0.0 0.0 2.3 0.0
61-90 0.0 0.0 1.5 0.0
91-120 0.0 0.0 0.9 0.0
121-150 0.0 0.0 0.3 0.0
151-180 0.0 0.0 0.2 0.0
>180 0.0 0.0 0.4 0.0
Total 399.1 82.2 1,090.0 88.0

Interest on loans and receivables to customers in the 2014 income statement includes interest income on “forbearance exposures” of PLN 45.7 million, where PLN 16.1 million derives from the performing exposures portfolio and PLN 29.6.million from non-performing exposures one.

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