My first Publication ocbc_ar17_fullreport_english | Page 112

PILLAR 3 DISCLOSURES
(OCBC Group – As at 31 December 2017)
Credit Commitments
S$ million
Undrawn credit facilities:
Term to maturity of one year or less
Term to maturity of more than one year
Total
111,902
16,946
128,848
The increase in defaulted loans and bills receivable, and debt
securities in the second half of 2017 was mainly driven by new
defaulted loans and bills receivable that was partly offset by
write-offs and upgrades.
(a)
S$ million
Contingent Liabilities
1
S$ million
2
Guarantees and standby letters of credit:
Term to maturity of one year or less
Term to maturity of more than one year
3,935
2,196
6,131
1,283
Acceptances and endorsements
Documentary credits and other short-term trade
related transactions
Total
3
4
5
6
3,090
10,504
(1)
7. CREDIT QUALITY
7.1 OVERVIEW OF CREDIT QUALITY OF ASSETS
The table below provides an overview of the credit quality of the
on and off-balance sheet assets of the Group.
A borrower is recognised to be in default when the borrower
is unlikely to repay in full its credit obligations to the Group, or
the borrower is past due for more than 90 days on its credit
obligations to the Group.
(a)
(b)
(c) (d)
Defaulted
exposures Non-
defaulted
exposures Impairment
allowances Net Values
(a + b - c)
3,415
35 233,906
21,713 (2,649)
(13) 234,672
21,735
18
10,486
3,468 266,105 (4)
(2,666) 10,500
266,907
Gross carrying
amount of (1)
S$ million
1
2
3
4
Loans and bills
receivable
Debt securities
Off-balance sheet
exposures
Total
Refers to the accounting value of the assets before any impairment
allowances but after write-offs
(2)
Refers to total gross carrying amount less impairment allowances
(1)
7.2 CHANGES IN STOCK OF DEFAULTED LOANS AND
BILLS RECEIVABLE, AND DEBT SECURITIES
The table below identifies the changes in defaulted loans and
bills receivable as well as debt securities from the previous
semi-annual reporting period, including the flows between
non-defaulted and defaulted categories and reductions due to
write-offs.
110
OCBC ANNUAL REPORT 2017
(2)
Defaulted loans and bills receivable, and
debt securities as at 30 June 2017
Loans and bills receivable, and debt securities that
have defaulted in the second half of 2017
Return to non-defaulted status
Amounts written-off
Other changes (1)
Defaulted loans and bills receivable, and
debt securities as at 31 December 2017
(1 + 2 - 3 - 4 ± 5)
Amount
outstanding
2,897
2,013
(511)
(602)
(347)
3,450
Other changes comprise foreign exchange, increase in existing
defaulted loans and bills receivable, and recoveries
7.3 OVERVIEW OF PAST DUE EXPOSURE AND
IMPAIRMENT ALLOWANCES
The following tables provide a breakdown of defaulted loans
and bills receivable (“Non-Performing Loans”) by geography,
credit grade under MAS Notice 612 and industry. In addition,
under FRS 107, loans and bill receivable that are past due and
not impaired need to be separately identified and disclosed.
Past due loans refer to loans that are overdue by one day or
more, while impaired loans are classified as loans with specific
allowances made.
The Group assesses impairment of loans by calculating the
present value of future recoverable cash flows and the fair
value of the underlying collateral, which is determined via credit
assessment on an individual loan basis. For the assessment of
available-for-sale financial assets, the Group follows the guidance
of FRS 39 in determining when an investment is impaired.
Total Loans and Bills Receivables – Credit Quality
S$ million
Neither past due nor impaired
Not impaired
Impaired
Past due loans
Impaired but not past due
Gross loans
Specific allowances
Portfolio allowances
Net loans
232,020
2,742
1,208
3,950
1,351
237,321
(1,236)
(1,417)
234,668