Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

Credit RiskCredit risk arises from all transactions that give rise to actual, contingent or potential claims against any counterparty, borrower or obligor.The UniCredit Group distinguishes among three types of credit risk:• Default risk is the risk that counterparties fail to meet contractual payment obligations;• Country risk is the risk that the Group may suffer a loss in any given country, due to any of the following reasons: a possible deteriorationof economic conditions, political and social upheaval, nationalization and expropriation of assets, government repudiation of indebtedness,exchange controls and disruptive currency depreciation or devaluation;• Settlement risk is the risk that the settlement or clearance of transactions will fail. It arises whenever the exchange of cash, securities and/orother assets is not simultaneous.measurING Credit RiskThe foundation of credit approval process is a detailed risk assessment of every credit exposure associated with counterparty. The Bank riskassessment procedures consider both credit rating of the counterparty and the risks related to the specific type of credit facility exposure.When measuring credit risk for corporate clients, the Bank calculates a credit rating which also forms basis for assessment of the probabilityof default. In addition to determining credit rating, exposure as well as repayment potential is also assessed based on the available cash flowprojection.Credit rating is determined based on financial data, qualitative factors and warning signals. The Bank uses 10 major credit rating classes withadditional sub-classes. The UniCredit Group’s scale includes in total 28 credit rating classes, which are calibrated on local circumstances.PORTFOLIO ANALYSISAs of the end of December 2009, the total Bank’s on-balance outstanding portfolio including banking and non-banking claims grew by316 million euros or by 13% compared to the end of the previous year. Growth of volumes was achieved in the Banks and other financialinstitutions sector as well as in the Households sector and the Public sector, while the other sectors have seen stagnation or deleveraging inline with the Bank’s prudent response to the crisis.The following table represents the Bank’s outstanding credit exposure according to the industry sectors distribution.Credit Exposure outstanding by industry sectorExposure (in Million EUR)31. 12. 2009 31. 12. 2008Growthin %Banks and insurance 707.80 429.26 165 %Manufacturing 196.60 202.37 97 %Households 672.82 588.37 114 %Public sector 221.45 132.96 167 %Wholesale and retail trade 271.84 285.87 95 %Commercial real estate 41.64 41.46 100 %Services 431.45 468.25 92 %Other 152.00 230.83 66 %TOTAL 2,695.59 2,379.38 113 %UniCredit Bank · 2009 Annual Report 207