CITIC Limited Half-Year Report 2019

93 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 28 Contingent liabilities and commitments (a) Credit commitments Credit commitments in connection with the financial services segment of the Group take the form of loan commitments, credit card commitments, financial guarantees, letters of credit and acceptances. Loan commitments represent the undrawn amount of approved loans with signed contracts. Credit card commitments represent the credit card overdraft limits authorised by the Group. Financial guarantees and letters of credit represent guarantee provided by the Group to guarantee the performance of customers to third parties. Acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. The Group expects most acceptances to be settled simultaneously with the reimbursement from the customers. The contractual amounts of credit commitments by category as at the balance sheet date are set out below. The amounts disclosed in respect of loan commitments and credit card commitments assume that amounts are fully drawn down. The amounts of guarantees, letters of credit and acceptances represent the maximum potential loss that would be recognised as at the balance sheet date if counterparties failed to perform as contracted. 30 June 2019 31 December 2018 HK$ million HK$ million Contractual amount Loan commitments With an original maturity of within 1 year 5,388 5,160 With an original maturity of 1 year or above 38,796 40,387 44,184 45,547 Credit card commitments 571,795 495,994 Guarantees 165,768 181,219 Letters of credit 106,669 106,053 Acceptances 434,781 450,022 1,323,197 1,278,835 Notes to the Consolidated Financial Statements