XML 40 R15.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Allowance for credit losses | 12 Months Ended
--- | ---
Dec. 31, 2011
Allowance for credit losses |
| 8. | Allowance for credit losses
The Bank classifies the allowance for credit losses into two components:
| a) | Allowance for loan losses:
(In thousands of US$) |  | Year ended December 31, 2011 |  |  | Year ended December 31, |
|  | Corporations |  |  | Banking and financial institutions |  |  | Middle-market companies |  |  | Sovereign |  |  | Total |  |  | 2010 |  |  | 2009 |
Balance at beginning of the year |  |  | 54,160 |  |  |  | 18,790 |  |  |  | 5,265 |  |  |  | 400 |  |  |  | 78,615 |  |  |  | 73,789 |  |  |  | 54,648 |
Provision (reversal of provision) for loan losses |  |  | (5,295 | ) |  |  | 10,017 |  |  |  | 4,312 |  |  |  | (193 | ) |  |  | 8,841 |  |  |  | 9,091 |  |  |  | 18,293 |
Loan recoveries and other |  |  | - |  |  |  | 1,716 |  |  |  | 440 |  |  |  | - |  |  |  | 2,156 |  |  |  | 996 |  |  |  | 866 |
Loans written-off against the allowance for loan losses |  |  | - |  |  |  | - |  |  |  | (1,065 | ) |  |  | - |  |  |  | (1,065 | ) |  |  | (5,261 | ) |  |  | (18 | )
Balance at end of the year |  |  | 48,865 |  |  |  | 30,523 |  |  |  | 8,952 |  |  |  | 207 |  |  |  | 88,547 |  |  |  | 78,615 |  |  |  | 73,789 |
Components: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Generic allowance |  |  | 34,065 |  |  |  | 30,523 |  |  |  | 8,952 |  |  |  | 207 |  |  |  | 73,747 |  |  |  | 67,115 |  |  |  | 59,432 |
Specific allowance |  |  | 14,800 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 14,800 |  |  |  | 11,500 |  |  |  | 14,357 |
Total allowance for loan losses |  |  | 48,865 |  |  |  | 30,523 |  |  |  | 8,952 |  |  |  | 207 |  |  |  | 88,547 |  |  |  | 78,615 |  |  |  | 73,789 |
Provision (reversal of provision) of generic allowance for credit losses are mostly related to changes in volume and composition of the credit portfolio. The increase in the generic allowance for loan losses in 2011 was primarily due to an increase in the loan portfolio mitigated by an improvement of the risk profile of the Region and a prudent portfolio management. Following is a summary of loan balances and reserves for loan losses:
(In thousands of US$) |  | December 31, 2011 |
|  | Corporations |  |  | Banking and financial institutions |  |  | Middle-market companies |  |  | Sovereign |  |  | Total |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific allowance |  |  | 14,800 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 14,800 |
Generic allowance |  |  | 34,065 |  |  |  | 30,523 |  |  |  | 8,952 |  |  |  | 207 |  |  |  | 73,747 |
Total of allowance for loan losses |  |  | 48,865 |  |  |  | 30,523 |  |  |  | 8,952 |  |  |  | 207 |  |  |  | 88,547 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans with specific allowance |  |  | 32,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 32,000 |
Loans with generic allowance |  |  | 2,290,413 |  |  |  | 2,164,163 |  |  |  | 445,731 |  |  |  | 27,266 |  |  |  | 4,927,573 |
Total loans |  |  | 2,322,413 |  |  |  | 2,164,163 |  |  |  | 445,731 |  |  |  | 27,266 |  |  |  | 4,959,573 |
(In thousands of US$) |  | December 31, 2010 |
|  | Corporations |  |  | Banking and financial institutions |  |  | Middle-market companies |  |  | Sovereign |  |  | Total |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific allowance |  |  | 11,200 |  |  |  | - |  |  |  | 300 |  |  |  | - |  |  |  | 11,500 |
Generic allowance |  |  | 42,960 |  |  |  | 18,790 |  |  |  | 4,965 |  |  |  | 400 |  |  |  | 67,115 |
Total of allowance for loan losses |  |  | 54,160 |  |  |  | 18,790 |  |  |  | 5,265 |  |  |  | 400 |  |  |  | 78,615 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans with specific allowance |  |  | 28,000 |  |  |  | - |  |  |  | 1,002 |  |  |  | - |  |  |  | 29,002 |
Loans with generic allowance |  |  | 2,056,386 |  |  |  | 1,701,062 |  |  |  | 223,756 |  |  |  | 54,126 |  |  |  | 4,035,330 |
Total loans |  |  | 2,084,386 |  |  |  | 1,701,062 |  |  |  | 224,758 |  |  |  | 54,126 |  |  |  | 4,064,332 |
| b) | Reserve for losses on off-balance sheet credit risk:
(In thousands of US$) |  | Year ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Balance at beginning of the year |  |  | 13,335 |  |  |  | 27,261 |  |  |  | 30,724 |
Provision (reversal of provision) for losses on off-balance sheet credit risk |  |  | (4,448 | ) |  |  | (13,926 | ) |  |  | (3,463 | )
Balance at end of the year |  |  | 8,887 |  |  |  | 13,335 |  |  |  | 27,261 |
The reserve for losses on off-balance sheet credit risk reflects the Bank’s management estimate of probable losses on off-balance sheet credit risk items such as: confirmed letters of credit, stand-by letters of credit, guarantees and credit commitments (see Note 18). The 2011’s decrease in the reserve for losses on off-balance sheet credit risk was primarily due to changes in volume, composition, and risk profile of the portfolio.

X
- Definition The entire disclosure for allowance for credit losses. + References No definition available. + Details
Name: | us-gaap_AllowanceForCreditLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration