Introduction Credit risk is the risk of loss as a result of the non-performance by clients and other counterparties of their payment obligations to the Group. Credit risk concerns loans and advances, credit commit- ments and guarantees as well as market values of derivatives and any holdings. The most significant credit risks in the Group relate to the Group’s loans and advances and guarantees issued to retail and corporate clients. The main focus of this report is a description of the lending and guarantee portfolio which may be compared with loans and advances and guarantees in the 2021 Annual Report. The correlation between the gross exposure, as shown in “Appendix 1 – Supplementary tables”, and loans and advances and guarantees in the 2021 Annual Report is shown in the table below. Appendix 2 explains some of the terms used in this report. Gross exposure – credit risk DKKm Loans and advances at fair value Loans and advances at amortised cost Loans and advances according to financial statements Loans and advances to municipalities Guarantees issued by government and institutions Undrawn credit commitments Derivatives Repo (deposits) Contingent liabilities etc Gross exposure to retail and corporate clients Governments, incl municipalities Credit institutions Gross exposure – credit risk 2021 16,918 67,041 2020 17,961 60,229 83,959 (699) 78,190 (411) (995) 51,782 1,330 3,438 21,555 (965) 51,526 1,322 3,516 21,595 160,370 20,159 8,925 189,454 154,773 14,633 8,921 178,327 4 SYDBANK / Credit Risk 2021
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