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I take this back. The way I read it, there was basically zero...

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    I take this back. The way I read it, there was basically zero additional provisioning on an increased loan book...

    Actuals (From slide 9) amount to:
    17.5 + 3.3 + 2.7 + 4.4
    = $27.9m

    and according to note 4 on that slide:
    "Impairment losses stated here are the actual write offs processed in the year. The P&L expense line represents that plus any increase in B&D debt + op lease asset write off"

    So, what they're saying is:
    $28.6m = $27.9m + (the increase in B&D debt + op lease write off.)
    So, the last two amount to $0.7m. In effect, this means they're provisioning an additional $0.7m over last year... yet loan books have increased by $36.8m in Consumer leasing (26%), and $100m in TEF (76%).


    Note: "Increase in BD debt" and "operating lease write off" together, make up the change in provisions taken (this year - last year)

    For comparison, the 2016 values are:
    $31.4m = $19.2m + change in provisions
    Change in provisions = $12.2m

    That said, there was some larger provisioning in last year's accounts for Consumer Finance. Still doesn't really pass the sniff test.

    Surely I'm not reading this correctly.



    As an aside - where are the provisions for regulatory penalties located in the P&L?
    Last edited by Klogg: 26/05/17
 
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