Due from banks consists of the following:
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General (incl. |
|
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Banking |
Insurance |
eliminations) |
Total |
|
31 December 2007 |
|
|
|
|
|
Interest-bearing deposits |
8,041 |
336 |
(191) |
8,186 |
|
Loans and advances |
8,460 |
615 |
(89) |
8,986 |
|
Reverse repurchase agreements |
65,858 |
|
|
65,858 |
|
Securities borrowing transactions |
27,404 |
1,026 |
(1,026) |
27,404 |
|
Mandatory reserve deposits with central banks |
8,229 |
|
|
8,229 |
|
Held at fair value through profit or loss |
213 |
|
|
213 |
|
Other |
158 |
166 |
(147) |
177 |
|
Fair value adjustments from hedge accounting |
|
|
|
|
|
Total |
118,363 |
2,143 |
(1,453) |
119,053 |
|
Less impairments: |
|
|
|
|
|
- specific credit risk |
(12) |
|
|
(12) |
|
- incurred but not reported (IBNR) |
(5) |
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|
(5) |
|
Due from banks |
118,346 |
2,143 |
(1,453) |
119,036 |
|
|
|
|
|
|
|
31 December 2006 |
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Interest-bearing deposits |
4,964 |
292 |
(202) |
5,054 |
|
Loans and advances |
5,613 |
846 |
(229) |
6,230 |
|
Reverse repurchase agreements |
49,592 |
|
|
49,592 |
|
Securities borrowing transactions |
24,425 |
2,247 |
(2,247) |
24,425 |
|
Mandatory reserve deposits with central banks |
4,603 |
|
|
4,603 |
|
Held at fair value through profit or loss |
101 |
|
|
101 |
|
Other |
139 |
154 |
(143) |
150 |
|
Fair value adjustments from hedge accounting |
1 |
|
|
1 |
|
Total |
89,438 |
3,539 |
(2,821) |
90,156 |
|
Less impairments: |
|
|
|
|
|
- specific credit risk |
(17) |
|
|
(17) |
|
- incurred but not reported (IBNR) |
(8) |
|
|
(8) |
|
Due from banks |
89,413 |
3,539 |
(2,821) |
90,131 |
|
|
|
|
|
|
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31 December 2005 |
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|
|
|
Interest-bearing deposits |
4,159 |
356 |
(125) |
4,390 |
|
Loans and advances |
2,283 |
951 |
(246) |
2,988 |
|
Reverse repurchase agreements |
55,831 |
|
|
55,831 |
|
Securities borrowing transactions |
13,785 |
2,262 |
(2,262) |
13,785 |
|
Mandatory reserve deposits with central banks |
2,179 |
|
|
2,179 |
|
Held at fair value through profit or loss |
1,478 |
|
|
1,478 |
|
Other |
371 |
148 |
(136) |
383 |
|
Total |
80,086 |
3,717 |
(2,769) |
81,034 |
|
Less impairments: |
|
|
|
|
|
- specific credit risk |
(18) |
|
|
(18) |
|
- incurred but not reported (IBNR) |
(14) |
|
|
(14) |
|
Due from banks |
80,054 |
3,717 |
(2,769) |
81,002 |
The average carrying amount of Due from banks in 2007 was EUR 115,650 million (2006: EUR 85,111 million; 2005: EUR 92,438 million). The average yield in 2007 was 4.9 % (2006: 4.0%; 2005: 3.6%).
In accordance with monetary policy, the various banking businesses are required to place amounts on deposit with the central banks in the countries where Fortis operates. Together with the amount that is reported under Cash and cash equivalents, the total balance held with central banks came to EUR 9,024 million at year end 2007 (2006: EUR 4,925 million; 2005: EUR 3,539 million). The average outstanding balance with central banks (Cash and cash equivalents + Due from banks) during 2007 amounted to EUR 7,038 million (2006: EUR 5,001 million; 2005: EUR 4,764 million).
In the Merchant Banking segment, Fortis has designated some financial assets which are part of Due from banks at fair value through profit or loss. Under the Merchant Banking investment strategies, financial assets and financial liabilities, including derivatives, are brought together in specific portfolios. The performance and risks of these portfolios are measured, reported and managed on a fair value basis.
There is no significant difference between the carrying amounts of the Assets held at fair value through profit or loss and the exposure to credit risk of these assets.
Impairments on Due from banks
Changes in the impairments on Due from banks are as follows:
| Download XLS |
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2007 |
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2006 |
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Specific |
|
Specific |
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credit risk |
IBNR |
credit risk |
IBNR |
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Balance as at 1 January |
17 |
8 |
18 |
14 |
|
Increase in impairments |
2 |
2 |
4 |
4 |
|
Release of impairments |
(2) |
(5) |
(1) |
(10) |
|
Write-offs of uncollectible loans |
(2) |
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Foreign exchange differences and other adjustments |
(3) |
|
(4) |
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Balance as at 31 December |
12 |
5 |
17 |
8 |
The impairments for Specific credit risk and Incurred but not reported (IBNR) on credit commitments to banks were below EUR 1 million as at 31 December 2007 as well as at 31 December 2006 and 2005. Note 7 describes in greater detail the impairments for Specific credit risk and Incurred but not reported (IBNR).