20 Loans and advances

	2020	2019
	AED’000	AED’000
Commercial loans
Commercial overdraft	403,369	470,332
Trust Receipts	23,649	64,557
Bills and discounts	37,352	41,705
Mezzanine finance	11,934	11,307
Advances against documents under LC	337	6,902
Auto loan	1,677	2,463
Clean facility	1,180	1,180
Other commercial advances	1,572,215	1,740,402
	———————-	———————-
	2,051,713	2,338,848
	———————-	———————-
Retail finance
Car loans	3,076	3,146
Executive Finance	163,136	169,525
Staff loans	4,082	5,703
Credit card advances and settlement plans	264,665	285,032
Sulfah- National Personnel Loan	2,109	–
Payday Overdraft	35,817	41,491
SME loans	21,751	23,328
Others	1,056	1,127
	———————-	———————-
	495,692	529,352
	———————-	———————-
Gross loans and advances	2,547,405	2,868,200
Less: Allowance for impairment	-379,052	-416,170
	———————-	———————-
Loans and advances	2,168,353	2,452,030
	=============	=============

 

The movement in the allowance for impairment during the period/year is as follows:

 

	2020	2019
	AED’000	AED’000
At 1 January	416,170	351,645
Changes on initial application of IFRS 9		–
	———————	———————
Balance at 1 January	416,170	351,645
Impairment charges for the year	72,273	69,258
Reversal of no longer required impairment charges	–	(4,733)
Amount written off	(109,391)	–
	———————	———————
Balance at 31 December	379,052	416,170

 

The allowance for impairment includes a specific provision of AED 325.1 million (2019 AED 385.8 million) for stage 3 loans of the Group.

In determining the recoverability of loans and advances, the Group 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.