6 Loans and Advances
Loans and advances
|Gross loans and advances||2,652,149||2,550,385|
|Less: assessed allowance for impairment||(351,645)||(214,584)|
|Net loans and advances||
The movement in the allowance for impairment during the year is shown below:
|At 1 January 2018||214,584||219,801|
|Change on initial application of IFRS 9 (Note 2.3) *||
|Restated balance at 1 January 2018||276,461||219,801|
|Impairment charges for the year||75,848||48,736|
|Reversal of no longer required impairment charges||(664)||(5,300)|
|Balance at 31 December||
In determining the recoverability of loans and advances, the Company considers any change in the credit quality of the loans and advances measured at amortised cost from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
* Include amount of AED 14,324 thousand relating to unfunded balances as disclosed in Note 2.3.