Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 10. Loans to Customers and Finance Lease Receivables continued Expected credit loss continued As at 31 December 2018 Consumer loans at amortised cost, allowance for ECL: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 38,560 15,646 43,134 14 97,354 New financial asset originated or purchased 92,269 2,050 883 255 95,457 Transfer to Stage 1 40,697 (26,102) (14,595) – – Transfer to Stage 2 (29,909) 36,760 (6,851) – – Transfer to Stage 3 (52,634) (21,277) 73,911 – – Impact on ECL of exposures transferred between stages during the year (17,251) (2,270) 26,661 – 7,140 Assets derecognised (excluding write-offs) – – (3) – (3) Assets repaid (37,773) (12,836) (73,098) (36) (123,743) Impact of modifications – – – (420) (420) 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 57 34 5 – 96 Net other measurement of ECL (14,362) 17,350 110,812 633 114,433 Balance at 31 December 2018 19,654 9,355 62,143 389 91,541 Individually assessed – – 111 – 111 Collectively assessed 19,654 9,355 62,032 389 91,430 Balance at 31 December 2018 19,654 9,355 62,143 389 91,541 As at 31 December 2018 Micro and SME loans at amortised cost, gross: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 1,625,728 57,178 114,928 3,401 1,801,235 New financial asset originated or purchased 1,923,582 3,787 96 1,123 1,928,588 Transfer to Stage 1 84,240 (78,991) (5,249) – – Transfer to Stage 2 (212,351) 222,077 (9,726) – – Transfer to Stage 3 (38,253) (63,122) 101,375 – – Assets derecognised (excluding write-offs) – – (956) – (956) Assets repaid (1,498,299) (57,258) (57,425) (1,098) (1,614,080) Impact of modifications – – (1,150) (2) (1,152) Write-offs – – (31,200) (28) (31,228) Recoveries of amounts previously written off – – 7,198 – 7,198 Unwind of discount – – 2,197 10 2,207 Currency translation differences (5,179) (348) (1,506) – (7,033) Net other changes 34,496 1,988 9,123 (1,171) 44,436 Balance at 31 December 2018 1,913,964 85,311 127,705 2,235 2,129,215 Individually assessed – – 9,806 – 9,806 Collectively assessed 1,913,964 85,311 117,899 2,235 2,119,409 Balance at 31 December 2018 1,913,964 85,311 127,705 2,235 2,129,215 Annual Report 2018Bank of Georgia Group PLC 221