CITIC Limited Half-Year Report 2020

101 CITIC Limited Half-Year Report 2020 For the six months ended 30 June 2020 Notes to the Consolidated Financial Statements 29 Financial risk management and fair values (continued) (a) Credit risk (continued) (ii) Expected credit losses The following table explains the changes in the gross carrying amount for loans and advances to customers and other parties for the period: Six months ended 30 June 2020 Stage 1 Stage 2 Stage 3 Total HK$ million HK$ million HK$ million HK$ million Balance at 1 January 2020 4,303,423 111,552 77,946 4,492,921 Movements: Net transfers out from stage 1 (80,967) – – (80,967) Net transfers into stage 2 – 30,196 – 30,196 Net transfers into stage 3 – – 50,771 50,771 Net increase/(decrease) during the period (note (i)) 266,537 (7,375) (6,320) 252,842 Write offs – – (25,985) (25,985) Others (note (ii)) (77,982) (2,288) (1,667) (81,937) Balance at 30 June 2020 4,411,011 132,085 94,745 4,637,841 Six months ended 30 June 2019 Stage 1 Stage 2 Stage 3 Total HK$ million HK$ million HK$ million HK$ million Balance at 1 January 2019 3,959,696 109,399 75,163 4,144,258 Movements: Net transfers out from stage 1 (56,999) – – (56,999) Net transfers into stage 2 – 13,862 – 13,862 Net transfers into stage 3 – – 43,137 43,137 Net increase/(decrease) during the period (note (i)) 312,273 (10,702) (7,007) 294,564 Write offs – – (32,039) (32,039) Others (note (ii)) (18,915) (419) 2,034 (17,300) Balance at 30 June 2019 4,196,055 112,140 81,288 4,389,483