DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
53
42 FINANCIAL RISK MANAGEMENT continued
42.2 Credit risk continued F
Loans and advances continued
F.2 Loans and advances past due but not impaired
At the inception of loans, the Bank will appoint independent valuers to determine the fair value of collateral. The Bank will review the latest value of collateral when there is objective
evidence of impairment of loan.
The breakdown by overdue periods is as follows: Past due up
to 30 days Past due
30 - 60 days Past due
60-90 days Past due
over 90 days Total
31 December 2008
Corporate loans
198,599,587 46,893,683
109,811,995 10,388,857 365,694,122
Retail loans
18,156,665 2,867,234
- - 21,023,899
Total
216,756,252 49,760,917
109,811,995 10,388,857 386,718,021
31 December 2007
Corporate loans
563,939,436 107,853,938
25,912,215 45,565,988 743,271,577
Retail loans
42,512,946 5,283,105
- - 47,796,051
Total
606,452,382 113,137,043
25,912,215 45,565,988 791,067,628
As of 31 December 2008, the aggregate fair value of collateral held to support the above corporate loans amounted to Rmb 884 million and that of retail loans amounted to Rmb 29
million 31 December 2007: Rmb 1,567million and Rmb 49 million.
F.3 Loans and advances individually impaired
31 December 2008 31 December 2007
Corporate loans
556,585,921 143,622,281
Retail loans
1,562,367 -
558,148,288 143,622,281
As of 31 December 2008, the aggregate fair value of collateral held to support the above corporate loans amounted to Rmb 376 million and that of retail loans amounted to Rmb 2.4
million 31 December 2007: Rmb 53 million and nil.
DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
54
42 FINANCIAL RISK MANAGEMENT continued
42.2 Credit risk continued F
Loans and advances continued
3 Loans and advances individually impaired continued
The Bank performed specific assessment for above impaired loans and established impairment allowance of Rmb 248 million 31 December 2007: Rmb 91million after
considering the value of collateral.
At the end of 2008, mortgage loans accounted for approximately 49 31 December 2007: 55 of the total retail loans. The Bank strictly follows the mortgage loan regulations issued
by the PBOC and the CBRC, under which the loan principal should not exceed 70 of the value of residential properties. The Bank adopts the five rating classification system to
assess the credit quality of the portfolio of retail loans and advances taking account of factors such as percentage of value of collateral to loan balance, overdue days, repayments
ability and willingness of borrower to repay etc.
4 Loans and advances renegotiated
Renegotiated loans represent the loans that original contract repayment terms have been modified as a result of the deterioration of borrowers’ financial conditions or inability to
repay the loans according to contractual terms. As of 31 December, 2008, the renegotiated loans held by the Bank amounted to Rmb 4.4 million 31 December 2007: Rmb 6.5million.
G Investment securities
The tables below analyse the Bank’s investment securities by issuer:
Rmb securities Trading
assets 31 December 2008
Treasury bonds
32,760,119 PBOC
notes 711,306,647
744,066,766
Trading assets 31 December 2007
PBOC notes
968,361,812
DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
55
42 FINANCIAL RISK MANAGEMENT continued
42.3 Market risk
