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.