Senwesbel Consolidated Financial Statements | Page 63

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