Stratification and arrears
GROUP
2020 2019
Stratification of the client base to the extent of credit
EXPOSURE
EXPOSURE
extended
OF BOOK
ARREARS
OF BOOK
ARREARS
R1 – R500 000 1,0% 32,3% 1,3% 19,0%
R500 000 – R1 250 000 1,7% 4,5% 1,9% 6,4%
R1 250 000 – R3 000 000 7,0% 4,3% 7,1% 2,7%
R3 000 000 – R5 000 000 13,7% 0,9% 14,9% 3,1%
R5 000 000 – R12 500 000 23,9% 3,2% 23,0% 2,3%
Above R12 500 000 52,2% 1,1% 51,3% 4,2%
Legal clients 0,5% 91,5% 0,5% 88,8%
Total 100,0% 100,0%
The total arrears for 2020 amounted to 2,62% (2019: 4,19%).
A fair distribution of client size and arrears is applicable and the size of the current book is in line with the risk appetite
per segment of Senwes.
Stages of debt
GROUP
2020
NET
EXPOSURE
TO CREDIT
GROSS
GROSS
RISK AFTER
TRADE
CARRYING
EXPOSURE
NET ASSET
DEBTORS
AMOUNT
AMOUNT
VALUE
Distribution of debtors by category
%
R’m
R’m
R’m
Stage 1 38% 1 632 667 109
Stage 2 60% 2 565 616 46
Stage 3 2% 67 35 31
Total 100% 4 264 1 318 186
GROUP
2019
NET
EXPOSURE
TO CREDIT
GROSS
GROSS
RISK AFTER
TRADE
CARRYING
EXPOSURE
NET ASSET
DEBTORS
AMOUNT
AMOUNT
VALUE
Distribution of debtors by category
%
R’m
R’m
R’m
Stage 1 42% 1 623 563 98
Stage 2 57% 2 241 616 74
Stage 3 1% 36 15 26
Total 100% 3 900 1 194 198
The different categories are defined as follows:
Although not required by IFRS 9 Financial instruments, Senwes categorises trade and other receivables as well, in order
to evaluate financing provided in a holistic manner.
Trade and other receivables and Loans (collectively referred to as debtors) with significant financing components are
classified into the following categories, in accordance with IFRS 9 Financial instruments, for impairment purposes,
taking into account factors mentioned in note 11.5 that reflect changes in credit risk since initial recognition:
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 62