Provision for Loan Impairment

RUB m 2010 2009 Change, %
Provision for loan impairment at 1 January 579,814 202,285 186.6
Charge during the year 153,809 388,932 (60.5)
Loans to customers written off during the year as uncollectible (31,100) (11,403) 172.7
Provision for loan impairment at 31 December 702,523 579,814 21.2

In 2010, as Russian and other economies in which the Group operates recovered, the quality of the Group’s loan portfolio showed signs of improvement. This was the key reason for the Group reducing its provisioning charge for loan impairment to RUB 153.8bn in 2010 versus RUB 388.9bn in 2009.

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