Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 10. Loans to Customers and Finance Lease Receivables continued Expected credit loss continued As at 31 December 2018 Commercial loans at amortised cost, allowance for ECL: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 7,102 5,305 167,520 5,506 185,433 New financial asset originated or purchased 9,074 43 277 – 9,394 Transfer to Stage 1 1,338 (1,338) – – – Transfer to Stage 2 (1,349) 1,693 (344) – – Transfer to Stage 3 (1,472) (647) 2,119 – – Impact on ECL of exposures transferred between stages during the year (495) 884 2,938 – 3,327 Assets derecognised (excluding write-offs) (2,177) – – – (2,177) Assets repaid (2,848) (2,838) (14,260) (417) (20,363) Impact of modifications – – – – – Write-offs – – (44,675) – (44,675) Recoveries of amounts previously written off – – 2,914 – 2,914 Unwind of discount – – 3,437 (151) 3,286 Currency translation differences 424 246 (120) – 550 Net other measurement of ECL (3,478) 2,204 36,578 (4,415) 30,889 Balance at 31 December 2018 6,119 5,552 156,384 523 168,578 Individually assessed – – 155,946 495 156,441 Collectively assessed 6,119 5,552 438 28 12,137 Balance at 31 December 2018 6,119 5,552 156,384 523 168,578 As at 31 December 2018 Consumer loans at amortised cost, gross: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 1,529,130 147,105 75,918 88 1,752,241 New financial asset originated or purchased 2,139,297 11,259 2,224 4,776 2,157,556 Transfer to Stage 1 272,027 (241,184) (30,843) – – Transfer to Stage 2 (457,067) 470,935 (13,868) – – Transfer to Stage 3 (167,089) (175,960) 343,049 – – Assets derecognised (excluding write-offs) – – (363) – (363) Assets repaid (1,679,766) (110,816) (174,039) (472) (1,965,093) Impact of modifications – – (2,124) 59 (2,065) Write-offs – – (127,298) (73) (127,371) Recoveries of amounts previously written off – – 22,743 – 22,743 Unwind of discount – – 5,839 16 5,855 Currency translation differences (872) (8) (29) – (909) Net other changes 14,420 (185) 19,982 77 34,294 Balance at 31 December 2018 1,650,080 101,146 121,191 4,471 1,876,888 Individually assessed – – 325 – 325 Collectively assessed 1,650,080 101,146 120,866 4,471 1,876,563 Balance at 31 December 2018 1,650,080 101,146 121,191 4,471 1,876,888 220 Annual Report 2018Bank of Georgia Group PLC