Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

Risk ReportRisk ReportThe Bank’s maximum exposure to credit risk for top 10 impaired clientsTop 10 impaired client groups(by outstanding)IndustryExposure(in Million EUR)31. 12. 2009Loan Loss Provisions(in Million EUR)Client 1 Holding 20.35 5.09Client 2 Machinery, metals 9.65 1.64Client 3 Financial institution 6.30 0.00Client 4 Tourism 4.80 0.00Client 5 Food and beverage 4.06 3.04Client 6 Services 3.20 0.16Client 7 Food and beverage 2.38 1.43Client 8 Media, paper 2.15 0.49Client 9 Transport, travel 2.08 0.00Client 10 Services 1.38 0.00At the end of December 2009, the Bank is recognizing 52.8 million euros of financial assets that are where parts of due obligations are indelay, but not impaired. In these cases either no default event was triggered or immaterial amounts were overdue or there has been sufficientcollateral or an agreed renegotiation package in place.Credit assets are classified and reported as non-performing if one or more of the default criteria under Basel II are met: full repayment unlikely,interest or principal payments on a material exposure more than 90 days past due, restructuring resulting in a loss to the lender, realisation ofa loan loss, or opening of bankruptcy proceedings. These advances are classified and reported under non-performing assets.On average in the Bank, loan loss provisions covered 49 % of reported non-performing (NPL) assets. For the portion of NPL not covered byprovisions there are appropriate levels of conservatively valued, bank-able collaterals. In accordance with Basel II definition of default, the NPLcategory also includes debt on which interest and principal payments are being made.At the end of December 2009, NPL increased by 33.1 million euros or 81 % to 74.0 million euros. Loan loss provisions for non-performingloans were increased by 12.5 million euros or 53 % to 36.2 million euros. These movements resulted in a net reduction of 9.0 percentagepoints in NPL provision coverage.Non-performing assets by risk classes, provisions and collateralsNon-performingassets (NPL)by risk classesExposure(in Million EUR)Provisions(in Million EUR)Coveragein %Collateral value(in Million EUR)Exposure(in Million EUR)Provisions(in Million EUR)31. 12. 2009 31. 12. 2008Coveragein %Collateral value(in Million EUR)Substandard (C) 42.83 10.86 25 % 8.36 12.42 2.58 21 % 7.11Doubtful (D) 16.69 10.56 63 % 5.25 18.05 10.58 59 % 7.31Loss (E) 14.51 14.75 102 % 0.83 10.46 10.52 101 % 1.98TOTAL Nonperformingassets74.03 36.17 49 % 14.43 40.93 23.68 58 % 16.40As per 31. 12. 2009, there were no impairments recognized for the available-for-sale financial assets.COUNTERPARTY RISKCredit risk is generally defined as risk of non-performance of counterparts on repaying principal, interest, and/or miscellaneous paymentsrelated to obligations out of properties of the transactions. Counterparty credit risk arises when transactions in treasury or security instrumentsare concluded with the counterparty.For the purposes of credit risk management, UniCredit Banka Slovenija d.d. has been using a counterparty credit risk model based on thesimulation approach. The exposure of any individual counterparty is evaluated by running a path simulation of its portfolio based on theindividual products contained therein. The future present value of the whole portfolio is calculated based on scenarios representing volatilities210 2009 Annual Report · UniCredit Bank