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 Micro and SME loans at amortised cost, allowance for ECL: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 6,690 2,934 34,533 410 44,567 New financial asset originated or purchased 10,485 – – 201 10,686 Transfer to Stage 1 3,622 (2,473) (1,149) – – Transfer to Stage 2 (3,692) 5,215 (1,523) – – Transfer to Stage 3 (1,990) (2,185) 4,175 – – Impact on ECL of exposures transferred between stages during the year (1,162) 1,111 3,247 – 3,196 Assets derecognised (excluding write-offs) – – (200) – (200) Assets repaid (5,500) (1,377) (13,533) (1) (20,411) Impact of modifications – – – (183) (183) 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 97 256 (665) – (312) Net other measurement of ECL 889 1,972 26,646 (339) 29,168 Balance at 31 December 2018 9,439 5,453 29,726 70 44,688 Individually assessed – – 7,091 – 7,091 Collectively assessed 9,439 5,453 22,635 70 37,597 Balance at 31 December 2018 9,439 5,453 29,726 70 44,688 As at 31 December 2018 Residential mortgage loans at amortised cost, gross: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 1,583,402 83,581 52,043 751 1,719,777 New financial asset originated or purchased 1,784,950 532 17 24,088 1,809,587 Transfer to Stage 1 161,836 (152,752) (9,084) – – Transfer to Stage 2 (226,504) 234,139 (7,635) – – Transfer to Stage 3 (73,754) (49,756) 123,510 – – Assets derecognised (excluding write-offs) – – (1,830) – (1,830) Assets repaid (939,819) (31,367) (71,161) (2,025) (1,044,372) Impact of modifications – – (689) (1) (690) Write-offs – – (2,195) (86) (2,281) Recoveries of amounts previously written off – – 2,338 – 2,338 Unwind of discount – – 414 21 435 Currency translation differences (2) – – – (2) Net other changes 61,098 2,432 2,521 440 66,491 Balance at 31 December 2018 2,351,207 86,809 88,249 23,188 2,549,453 Individually assessed – – 732 2,451 3,183 Collectively assessed 2,351,207 86,809 87,517 20,737 2,546,270 Balance at 31 December 2018 2,351,207 86,809 88,249 23,188 2,549,453 222 Annual Report 2018Bank of Georgia Group PLC