19 Loans and advances
Loans and advances
| 2024 | 2023 | |
| AED’000 | AED’000 | |
| Commercial loans | ||
| Commercial overdraft | 423,634 | 282,494 |
| Other commercial advances | 1,545,255 | 1,516,355 |
| 1,968,889 | 1,798,849 | |
| Retail finance | ||
| Personal loans and advances | 595,583 | 544,276 |
| 595,583 | 544,276 | |
| Gross loans and advances | 2,564,472 | 2,343,125 |
| Less: allowances for expected credit losses | (500,045) | (467,455) |
| Loans and advances | 2,064,427 | 1,875,670 |
The movement in the allowances for expected credit losses during the year is as follows:
| 2024 | 2023 | |
| AED’000 | AED’000 | |
| At 1 January | 467,455 | 444,039 |
| Charged for the year | 46,600 | 23,668 |
| Reversal of no longer required impairment charges | (5,251) | – |
| Amounts written off | (8,759) | (252) |
| Balance at 31 December | 500,045 | 467,455 |
The allowance for impairment includes a specific provision of AED 393.2million (2023: AED 379.6 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.
