Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 10. Loans to Customers and Finance Lease Receivables continued Concentration of loans to customers As at 31 December 2018, the concentration of loans granted by the Group to the ten largest third party borrowers comprised GEL 952,411 accounting for 10% of the gross loan portfolio of the Group (2017: GEL 857,582 and 11% respectively, 2016: GEL 815,363 and 12% respectively). An allowance of GEL 45,658 (2017: GEL 43,478, 2016: GEL 20,123) was established against these loans. As at 31 December 2018, the concentration of loans granted by the Group to the ten largest third party group of borrowers comprised GEL 1,231,913 accounting for 13% of the gross loan portfolio of the Group (2017: GEL 1,072,450 and 14% respectively, 2016: GEL 1,242,944 and 18% respectively). An allowance of GEL 43,687 (2017: GEL 75,628, 2016: GEL 51,831) was established against these loans. As at 31 December 2018, 31 December 2017 and 31 December 2016, loans were principally issued within Georgia, and their distribution by industry sector was as follows: 2018 2017 2016 Individuals 5,509,279 4,297,215 3,336,589 Manufacturing 1,101,649 935,827 925,333 Trade 1,032,155 815,216 812,141 Real estate 436,450 432,352 423,124 Construction 366,009 368,509 304,890 Hospitality 301,415 283,527 233,891 Service 128,535 182,038 136,792 Transport and communication 132,588 114,926 166,288 Mining and quarrying 127,835 104,799 114,115 Electricity, gas and water supply 76,574 84,727 34,835 Financial intermediation 62,180 49,729 130,435 Other 326,482 233,164 237,099 Loans to customers, gross 9,601,151 7,902,029 6,855,532 Less – Allowance for expected credit loss/impairment loss (311,843) (276,885) (252,769) Loans to customers, net 9,289,308 7,625,144 6,602,763 Loans have been extended to the following types of customers: 2018 2017 2016 Private companies 4,089,095 3,604,814 3,497,322 Individuals 5,509,279 4,297,215 3,336,589 State-owned entities 2,777 – 21,621 Loans to customers, gross 9,601,151 7,902,029 6,855,532 Less – Allowance for expected credit loss/impairment loss (311,843) (276,885) (252,769) Loans to customers, net 9,289,308 7,625,144 6,602,763 Finance lease receivables 2018 2017 2016 Minimum lease payments receivable 155,043 83,008 60,715 Less – Unearned finance lease income (44,956) (15,322) (12,448) 110,087 67,686 48,267 Less – Allowance for expected credit loss/impairment loss (1,648) (2,380) (2,548) Finance lease receivables, net 108,439 65,306 45,719 The difference between the minimum lease payments to be received in the future and the finance lease receivables represents unearned finance income. 226 Annual Report 2018Bank of Georgia Group PLC