Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 27. Risk Management continued Credit risk continued As at 31 December 2018 Letters of credit Stage 1 Stage 2 Stage 3 Total High grade 31,381 2,553 _ 33,934 Standard grade 4,844 – _ 4,844 Low grade – 2,355 _ 2,355 Not rated 876 – _ 876 Balance at 31 December 2018 37,101 4,908 _ 42,009 As at 31 December 2018 Undrawn loan facilities Stage 1 Stage 2 Stage 3 Total High grade 185,926 165 – 186,091 Standard grade 22,951 150 – 23,101 Low grade 19,349 3,495 – 22,844 Not rated 44,351 466 61 44,878 Defaulted Other – – 1,340 1,340 Balance at 31 December 2018 272,577 4,276 1,401 278,254 The table below shows the credit quality by class of asset for loan-related lines in the statement of financial position as at 31 December 2017 and 31 December 2016, based on the Group’s credit rating system. Neither past due nor impaired Past due or High Standard Sub-standard individually 31 December 2017 Notes grade grade grade impaired Total Amounts due from credit institutions 8 1,225,829 118 – – 1,225,947 Debt investment securities available for sale 9 1,563,515 – – – 1,563,515 Loans to customers: 10 Commercial loans 1,766,329 511,296 6,193 310,606 2,594,424 Consumer loans 1,580,503 37,612 31,915 101,076 1,751,106 Micro and SME loans 1,547,233 105,302 30,019 93,490 1,776,044 Residential mortgage loans 1,619,638 28,961 19,783 44,133 1,712,515 Gold – pawn loans 65,865 – – 2,075 67,940 6,579,568 683,171 87,910 551,380 7,902,029 Finance lease receivables 10 48,069 12,161 2,063 5,393 67,686 Total 9,416,981 695,450 89,973 556,773 10,759,177 Annual Report 2018Bank of Georgia Group PLC 261