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 Residential mortgage loans at amortised cost, allowance for ECL: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 302 59 3,267 61 3,689 New financial asset originated or purchased 1,315 – – 595 1,910 Transfer to Stage 1 230 (92) (138) – – Transfer to Stage 2 (57) 209 (152) – – Transfer to Stage 3 (982) (37) 1,019 – – Impact on ECL of exposures transferred between stages during the year (173) (106) 1,436 – 1,157 Assets derecognised (excluding write-offs) – – (41) – (41) Assets repaid (94) (9) (4,237) (94) (4,434) Impact of modifications – – – – – 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 – – – – – Net other measurement of ECL (303) 7 3,672 592 3,968 Balance at 31 December 2018 238 31 5,383 1,089 6,741 Individually assessed – – – – – Collectively assessed 238 31 5,383 1,089 6,741 Balance at 31 December 2018 238 31 5,383 1,089 6,741 As at 31 December 2018 Gold – pawn loans at amortised cost, gross: Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2018 65,670 431 1,839 – 67,940 New financial asset originated or purchased 80,944 – 96 – 81,040 Transfer to Stage 1 4,299 (1,855) (2,444) – – Transfer to Stage 2 (3,396) 3,694 (298) – – Transfer to Stage 3 (8,800) (1,641) 10,441 – – Assets derecognised (excluding write-offs) – – – – – Assets repaid (63,239) (92) (4,553) – (67,884) Impact of modifications – – – – – Write-offs – – (609) – (609) Recoveries of amounts previously written off – – 113 – 113 Unwind of discount – – 8 – 8 Currency translation differences – – – – – Net other changes 5 4 153 – 162 Balance at 31 December 2018 75,483 541 4,746 – 80,770 Individually assessed – – – – – Collectively assessed 75,483 541 4,746 – 80,770 Balance at 31 December 2018 75,483 541 4,746 – 80,770 Annual Report 2018Bank of Georgia Group PLC 223