
	As of December 31,
	2020			2021
	RMB’000			RMB’000
Loans originated by consolidated trust plans		112,253,099			202,175,185
Loans originated by microloan lending companies and consumer finance company		6,240,803			12,587,586
Interest receivable		2,321,117			2,963,210
Less: Provision for impairment losses
Stage 1		(480,854	)		(1,860,245	)
Stage 2		(195,339	)		(312,280	)
Stage 3		(313,012	)		(581,346	)
		(989,205	)		(2,753,871	)

		119,825,814			214,972,110

(a)

As of December 31, 2020 and 2021, loans amounting to

RMB105,325

million and

RMB162,417

million, respectively, were covered by credit enhancement provided by credit enhancement partners. Out of which, the majority of the balance were covered by credit insurance provided by Ping An Property and Casualty Insurance Company (“Ping An P&C”), a subsidiary of Ping An Group. Credit enhancement partners independently underwrite the borrowers and entered into the credit enhancement agreements either in the form of credit insurance or financial guarantee directly with the borrowers. The beneficiaries of such credit enhancement are the institutional funding partners who provide

funding to the borrowers.

(b)

As of December 31, 2020, part of the loan balance was related to loans from asset based securitization plans. These loans were originated by microloan lending companies within the Group that do not meet the criteria of derecognition as the Group continued to provide credit enhancement to the assets backed securitization plans. The asset based securitization plans represented a liability of the Group and were recorded as payable to investors of consolidated structured entities (refer to Note 31) in the consolidated financial statements, which consisted of principal and accrued interests. As of December 31, 2021, no loan balance was related to loans from asset based securization plans.

(c)	For the years ended December 31, 2019, 2020 and 2021, the amounts of concession provided to customers were not material.

(d)	The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2019:


	Year ended December 31, 2019
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2019		33,787,721			439,915			1,793,904			36,021,540
New loans originated		53,015,937			—			—			53,015,937
Transfer s		(1,207,945	)		116,102			1,091,843			—
— From stage 1 to stage 2		(274,558	)		274,558			—			—
— From stage 1 to stage 3		(935,301	)		—			935,301			—
— From stage 2 to stage 1		1,914			(1,914	)		—			—
— From stage 2 to stage 3		—			(157,987	)		157,987			—
— From stage 3 to stage 2		—			1,445			(1,445	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(38,543,538	)		(231,577	)		(1,233,244	)		(40,008,359	)
Write-offs		—			—			(279,292	)		(279,292	)

As of December 31, 2019		47,052,175			324,440			1,373,211			48,749,826

(e)	The following table sets forth the movement of ECL allowance for the year ended December 31, 2019:


	Year ended December 31, 2019
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2019		318,987			111,091			1,163,768			1,593,846
New loans originated		14,948			—			—			14,948
Transfer s		(19,116	)		(9,368	)		803,752			775,268
— From stage 1 to stage 2		(4,815	)		4,815			—			—
— From stage 1 to stage 3		(14,663	)		—			14,663			—
— From stage 2 to stage 1		1,347			(1,347	)		—			—
— From stage 2 to stage 3		—			(54,270	)		54,270			—
— From stage 3 to stage 2		—			1,210			(1,210	)		—
Net impact on expected credit loss by stage transfers		(985	)		40,224			736,029			775,268
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(214,897	)		(28,844	)		(679,038	)		(922,779	)
Change in parameters of expected credit loss model		36,474			(19,621	)		52,470			69,323
Write-offs		—			—			(279,292	)		(279,292	)

As of December 31, 2019		136,396			53,258			1,061,660			1,251,314

Loans to customers amounting to

RMB279

million were written off in 2019 and were still subject to enforcement activity.

(f)	The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2020:


	Year ended December 31, 2020
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2020		47,052,175			324,440			1,373,211			48,749,826
New loans originated		141,924,691			—			—			141,924,691
Transfer s		(2,124,274	)		1,713,887			410,387			—
— From stage 1 to stage 2		(1,806,096	)		1,806,096			—			—
— From stage 1 to stage 3		(324,045	)		—			324,045			—
— From stage 2 to stage 1		5,867			(5,867	)		—			—
— From stage 2 to stage 3		—			(98,355	)		98,355			—
— From stage 3 to stage 2		—			12,013			(12,013	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(67,284,010	)		(1,198,510	)		(195,666	)		(68,678,186	)
Write-offs		—			—			(1,181,312	)		(1,181,312	)

As of December 31, 2020		119,568,582			839,817			406,620			120,815,019

(g)	The following table sets forth the movement of ECL allowance for the year ended December 31, 2020:


	Year ended December 31, 2020
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2020		136,396			53,258			1,061,660			1,251,314
New loans originated		373,266			—			—			373,266
Transfer s		(107,551	)		213,807			378,215			484,471
— From stage 1 to stage 2		(101,324	)		101,324			—			—
— From stage 1 to stage 3		(7,322	)		—			7,322			—
— From stage 2 to stage 1		4,161			(4,161	)		—			—
— From stage 2 to stage 3		—			(49,632	)		49,632			—
— From stage 3 to stage 2		—			1,344			(1,344	)		—
Net impact on expected credit loss by stage transfer s		(3,066	)		164,932			322,605			484,471
Loans de-recognized and other adjustments in the current period (including repayment s of loans)		(203,494	)		(89,632	)		(119,197	)		(412,323	)
Change in parameters of expected credit loss model		282,237			17,906			(664	)		299,479
Write-offs		—			—			(1,181,312	)		(1,181,312	)
Recovery of loans written off previously		—			—			174,310			174,310

As of December 31, 2020		480,854			195,339			313,012			989,205

oans to customers amounting to RMB1,181

million were written off in 2020 and were still subject to enforcement activity.

(h)	The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2021:


	Year ended December 31, 2021
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2021		119,568,582			839,817			406,620			120,815,019
New loans originated		234,198,681			—			—			234,198,681
Transfer s		(5,530,212	)		4,439,585			1,090,627			—
— From stage 1 to stage 2		(5,579,855	)		5,579,855			—			—
— From stage 2 to stage 1		49,643			(49,643	)		—			—
— From stage 2 to stage 3		—			(1,091,109	)		1,091,109			—
— From stage 3 to stage 2		—			482			(482	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(132,711,645	)		(3,703,157	)		(25,534	)		(136,440,336	)
Write-offs		—			—			(847,383	)		(847,383	)

As of December 31, 2021		215,525,406			1,576,245			624,330			217,725,981

(i)	The following table sets forth the movement of ECL allowance for the year ended December 31, 2021:


	Year ended December 31, 2021
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2021		480,854			195,339			313,012			989,205
New loans originated		1,346,940			—			—			1,346,940
Transfer s		(1,104,156	)		454,235			1,045,357			395,436
— From stage 1 to stage 2		(1,109,405	)		1,109,405			—			—
— From stage 2 to stage 1		16,509			(16,509	)		—			—
— From stage 2 to stage 3		—			(1,000,215	)		1,000,215			—
— From stage 3 to stage 2		—			458			(458	)		—
Net impact on expected credit loss by stage transfers		(11,260	)		361,096			45,600			395,436
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(622,468	)		(470,524	)		(124,794	)		(1,217,786	)
Change in parameters of expected credit loss model		1,759,075			133,230			24,216			1,916,521
Write-offs		—			—			(847,383	)		(847,383	)
Recovery of loans written off previously		—			—			170,938			170,938

As of December 31, 2021		1,860,245			312,280			581,346			2,753,871

As of December 31, 2021, loans to customers amounting to RMB847 million were written off in 2021 and were still subject to enforcement activity.