Page 167 - Capricorn IAR 2020

for the year ended 30 June 2020
3. FINANCIAL RISK MANAGEMENT (continued)
3.2 Credit risk (continued)
3.2.4 Maximum exposure to credit risk before collateral held or other credit enhancements (continued)
3.2.4.1 Maximum exposure to credit risk – All financial instruments (continued)
Company Notes
Maximum exposure
2020 INTEGRATED ANNUAL REPORT
NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
2020 N$’000
Cash and bank balances
Financial assets at fair value through profit or loss
– Money market investments
Gross financial assets at amortised cost
– Preference shares
Financial assets at fair value through other comprehensive income – Tradable instruments
Other assets*
Total exposure on statement of financial position
Total credit risk exposure
13. 14.
14. 15.
2019 N$’000
663,895 428,092
255,650
476,153
61,009 1,884,799
1,884,799
387,857
716,953
716,953
294,848
428,092
294,848
255,650
683,151
683,151
476,153
54,586
2,137,395
2,137,395
* Other assets exposed to credit risk include insurance fund asset, accounts receivable, derivatives as well as clearing and settlement accounts.
The most significant exposures are derived from loans and advances to banks and customers.
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to the Group resulting from both its loans and advances portfolio and other securities based on the following:
• The Group employs a range of policies and practices to mitigate credit risk. Refer to note 3.2.3
• Mortgage loans, which represent the biggest group in the loans and advances to customers portfolio, are backed by collateral
• All financial assets, other than loans and advances, are neither past due nor impaired.
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