10 Loans and Advances to Customers

The tables below show credit quality of the Group's loan portfolio by loan classes as at 31 December 2010 and 31 December 2009.For the purposes of these consolidated financial statements a loan is considered past due when the borrower fails to make any payment due under the loan agreement at the reporting date. In this case the aggregate amount of all amounts due from borrower under the respective loan agreement including accrued interest and commissions is recognised as past due.

31 December 2010:

In millions of Russian Roubles Not past due loans Past due loans Total
Commercial loans to legal entities 2,519,062 189,630 2,708,692
Specialised loans to legal entities 1,900,813 262,673 2,163,486
Consumer and other loans to individuals 598,304 37,385 635,689
Mortgage loans to individuals 572,339 31,439 603,778
Car loans to individuals 76,792 3,473 80,265
Total loans and advances to customers before provision for loan impairment 5,667,310 524,600 6,191,910
Less: Provision for loan impairment (276,906) (425,617) (702,523)
Total loans and advances to customers net of provision for loan impairment 5,390,404 98,983 5,489,387

31 December 2009:

In millions of Russian Roubles Not past due loans Past due loans Total
Commercial loans to legal entities 2,025,522 180,800 2,206,322
Specialised loans to legal entities 1,760,286 299,698 2,059,984
Consumer and other loans to individuals 526,373 37,991 564,364
Mortgage loans to individuals 482,445 30,342 512,787
Car loans to individuals 96,649 3,739 100,388
Total loans and advances to customers before provision for loan impairment 4,891,275 552,570 5,443,845
Less: Provision for loan impairment (190,956) (388,858) (579,814)
Total loans and advances to customers net of provision for loan impairment 4,700,319 163,712 4,864,031

Commercial lending to legal entities comprises corporate loans, loans to individual entrepreneurs, federal bodies and municipal authorities of the Russian Federation. Loans are granted for current needs (working capital financing, acquisition of movable and immovable property, portfolio investments, expansion and consolidation of business, etc.). Majority of commercial loans are provided for periods up to 5 years depending on the borrowers' risk assessment. Commercial lending also includes overdraft lending and lending for export-import transactions. The repayment source is cash flow from current production and financial activities of the borrower.

Specialised lending to legal entities includes investment and construction project financing and also developers' financing. As a rule, loan terms are linked to payback periods of investment and construction projects, contract execution periods and exceed the terms of commercial loans to legal entities. The principal and interest may be repaid from cash flows generated by the investment project at the stage of its commercial operation.

Consumer and other individual loans comprise loans to individuals other than housing acquisition, construction and repair of real estate as well as car loans. These loans include loans for current needs and overdrafts.

Mortgage loans to individuals include loans for acquisition, construction and reconstruction of real estate. These loans are mostly long-term and are collateralized by real estate.

Car loans to individuals include loans for purchasing a car or other vehicle. Car loans are provided for periods of up to 5 years.

The table below shows the analysis of loans and provisions for loan impairment as at 31 December 2010:

In millions of Russian Roubles Gross loans Provision for impairment Net loans Provision for impairment to gross loans
Commercial loans to legal entities        
Collectively assessed        
Not past due 2,457,676 (106,849) 2,350,827 4.3%
Loans up to 30 days overdue 6,895 (2,234) 4,661 32.4%
Loans 31 to 60 days overdue 4,480 (2,261) 2,219 50.5%
Loans 61 to 90 days overdue 7,058 (4,552) 2,506 64.5%
Loans 91 to 180 days overdue 10,398 (6,910) 3,488 66.5%
Loans over 180 days overdue 124,081 (117,807) 6,274 94.9%
Total collectively assessed loans 2,610,588 (240,613) 2,369,975 9.2%
Individually impaired        
Not past due 61,386 (39,929) 21,457 65.0%
Loans up to 30 days overdue 1,616 (1,378) 238 85.3%
Loans 31 to 60 days overdue - - - -
Loans 61 to 90 days overdue 3,896 (2,688) 1,208 69.0%
Loans 91 to 180 days overdue 2,861 (2,423) 438 84.7%
Loans over 180 days overdue 28,345 (25,898) 2,447 91.4%
Total individually impaired loans 98,104 (72,316) 25,788 73.7%
Total commercial loans to legal entities 2,708,692 (312,929) 2,395,763 11.6%
Specialised loans to legal entities        
Collectively assessed        
Not past due 1,835,754 (77,060) 1,758,694 4.2%
Loans up to 30 days overdue 16,715 (3,805) 12,910 22.8%
Loans 31 to 60 days overdue 2,043 (897) 1,146 43.9%
Loans 61 to 90 days overdue 5,827 (3,330) 2,497 57.1%
Loans 91 to 180 days overdue 3,927 (2,867) 1,060 73.0%
Loans over 180 days overdue 63,018 (57,148) 5,870 90.7%
Total collectively assessed loans 1,927,284 (145,107) 1,782,177 7.5%
Individually impaired        
Not past due 65,059 (36,916) 28,143 56.7%
Loans up to 30 days overdue 5,086 (5,072) 14 99.7%
Loans 31 to 60 days overdue 208 (200) 8 96.2%
Loans 61 to 90 days overdue 689 (689) - 100.0%
Loans 91 to 180 days overdue 1,575 (1,453) 122 92.3%
Loans over 180 days overdue 163,585 (131,345) 32,240 80.3%
Total individually impaired loans 236,202 (175,675) 60,527 74.4%
Total specialised loans to legal entities 2,163,486 (320,782) 1,842,704 14.8%
Total loans to legal entities 4,872,178 (633,711) 4,238,467 13.0%
Consumer and other loans to individuals        
Collectively assessed        
Not past due 598,304 (9,776) 588,528 1.6%
Loans up to 30 days overdue 6,521 (159) 6,362 2.4%
Loans 31 to 60 days overdue 2,014 (141) 1,873 7.0%
Loans 61 to 90 days overdue 1,324 (170) 1,154 12.8%
Loans 91 to 180 days overdue 2,177 (490) 1,687 22.5%
Loans over 180 days overdue 25,349 (25,349) - 100.0%
Total consumer and other loans to individuals 635,689 (36,085) 599,604 5.7%
Mortgage loans to individuals        
Collectively assessed        
Not past due 572,339 (5,139) 567,200 0.9%
Loans up to 30 days overdue 3,979 (242) 3,737 6.1%
Loans 31 to 60 days overdue 1,669 (236) 1,433 14.1%
Loans 61 to 90 days overdue 1,206 (246) 960 20.4%
Loans 91 to 180 days overdue 2,060 (891) 1,169 43.3%
Loans over 180 days overdue 22,525 (22,525) - 100.0%
Total mortgage loans to individuals 603,778 (29,279) 574,499 4.8%
Car loans to individuals        
Collectively assessed        
Not past due 76,792 (1,237) 75,555 1.6%
Loans up to 30 days overdue 682 (20) 662 2.9%
Loans 31 to 60 days overdue 248 (17) 231 6.9%
Loans 61 to 90 days overdue 152 (18) 134 11.8%
Loans 91 to 180 days overdue 300 (65) 235 21.7%
Loans over 180 days overdue 2,091 (2,091) - 100.0%
Total car loans to individuals 80,265 (3,448) 76,817 4.3%
Total loans to individuals 1,319,732 (68,812) 1,250,920 5.2%
Total loans and advances to customers as at 31 December 2010 6,191,910 (702,523) 5,489,387 11.3%

The table below shows the analysis of loans and provisions for loan impairment as at 31 December 2009:

In millions of Russian Roubles Gross loans Provision for impairment Net loans Provision for impairment to gross loans
Commercial loans to legal entities        
Collectively assessed        
Not past due 1,968,452 (68,724) 1,899,728 3.5%
Loans up to 30 days overdue 13,910 (4,863) 9,047 35.0%
Loans 31 to 60 days overdue 7,159 (3,472) 3,687 48.5%
Loans 61 to 90 days overdue 7,597 (3,897) 3,700 51.3%
Loans 91 to 180 days overdue 20,011 (12,757) 7,254 63.7%
Loans over 180 days overdue 95,717 (69,741) 25,976 72.9%
Total collectively assessed loans 2,112,846 (163,454) 1,949,392 7.7%
Individually impaired        
Not past due 57,070 (27,562) 29,508 48.3%
Loans up to 30 days overdue 47 - 47 0.0%
Loans 31 to 60 days overdue 425 (344) 81 80.9%
Loans 61 to 90 days overdue 1,684 (1,676) 8 99.5%
Loans 91 to 180 days overdue 8,291 (5,166) 3,125 62.3%
Loans over 180 days overdue 25,959 (23,286) 2,673 89.7%
Total individually impaired loans 93,476 (58,034) 35,442 62.1%
Total commercial loans to legal entities 2,206,322 (221,488) 1,984,834 10.0%
Specialised loans to legal entities        
Collectively assessed        
Not past due 1,731,758 (67,328) 1,664,430 3.9%
Loans up to 30 days overdue 16,027 (4,395) 11,632 27.4%
Loans 31 to 60 days overdue 16,021 (4,395) 11,626 27.4%
Loans 61 to 90 days overdue 8,133 (4,500) 3,633 55.3%
Loans 91 to 180 days overdue 6,569 (3,481) 3,088 53.0%
Loans over 180 days overdue 65,381 (47,809) 17,572 73.1%
Total collectively assessed loans 1,843,889 (131,908) 1,711,981 7.2%
Individually impaired        
Not past due 28,528 (12,356) 16,172 43.3%
Loans up to 30 days overdue 2,052 (1,138) 914 55.5%
Loans 31 to 60 days overdue 218 (133) 85 61.0%
Loans 61 to 90 days overdue 2,638 (2,464) 174 93.4%
Loans 91 to 180 days overdue 22,691 (10,960) 11,731 48.3%
Loans over 180 days overdue 159,968 (128,100) 31,868 80.1%
Total individually impaired loans 216,095 (155,151) 60,944 71.8%
Total specialised loans to legal entities 2,059,984 (287,059) 1,772,925 13.9%
Total loans to legal entities 4,266,306 (508,547) 3,757,759 11.9%
Consumer and other loans to individuals        
Collectively assessed        
Not past due 526,373 (8,926) 517,447 1.7%
Loans up to 30 days overdue 4,761 (488) 4,273 10.2%
Loans 31 to 60 days overdue 2,339 (476) 1,863 20.4%
Loans 61 to 90 days overdue 1,506 (446) 1,060 29.6%
Loans 91 to 180 days overdue 2,923 (1,440) 1,483 49.3%
Loans over 180 days overdue 26,462 (26,462) - 100.0%
Total consumer and other loans to individuals 564,364 (38,238) 526,126 6.8%
Mortgage loans to individuals        
Collectively assessed        
Not past due 482,445 (4,418) 478,027 0.9%
Loans up to 30 days overdue 4,014 (725) 3,289 18.1%
Loans 31 to 60 days overdue 2,373 (803) 1,570 33.8%
Loans 61 to 90 days overdue 1,574 (776) 798 49.3%
Loans 91 to 180 days overdue 2,866 (2,538) 328 88.6%
Loans over 180 days overdue 19,515 (19,515) - 100.0%
Total mortgage loans to individuals 512,787 (28,775) 484,012 5.6%
Car loans to individuals        
Collectively assessed        
Not past due 96,649 (1,642) 95,007 1.7%
Loans up to 30 days overdue 718 (120) 598 16.7%
Loans 31 to 60 days overdue 397 (120) 277 30.2%
Loans 61 to 90 days overdue 245 (108) 137 44.1%
Loans 91 to 180 days overdue 436 (321) 115 73.6%
Loans over 180 days overdue 1,943 (1,943) - 100.0%
Total car loans to individuals 100,388 (4,254) 96,134 4.2%
Total loans to individuals 1,177,539 (71,267) 1,106,272 6.1%
Total loans and advances to customers as at 31 December 2009 5,443,845 (579,814) 4,864,031 10.7%

The table below shows the credit quality analysis of the Group’s not past due collectively assessed loans before provision for loan impairment as at 31 December 2010:

In millions of Russian Roubles 1 group 2 group 3 group Total
Commercial loans to legal entities 161,500 1,273,414 1,022,762 2,457,676
Specialised loans to legal entities 80,026 793,995 961,733 1,835,754
Consumer and other loans to individuals 5,685 590,441 2,178 598,304
Mortgage loans to individuals 7,214 563,935 1,190 572,339
Car loans to individuals 425 76,258 109 76,792
Total 254,850 3,298,043 1,987,972 5,540,865

The table below shows the credit quality analysis of the Group’s not past due collectively assessed loans before provision for loan impairment as at 31 December 2009:

In millions of Russian Roubles 1 group 2 group 3 group Total
Commercial loans to legal entities 143,091 998,354 827,007 1,968,452
Specialised loans to legal entities 55,924 784,784 891,050 1,731,758
Consumer and other loans to individuals 4,932 518,955 2,486 526,373
Mortgage loans to individuals 3,079 476,395 2,971 482,445
Car loans to individuals - 96,596 53 96,649
Total 207,026 2,875,084 1,723,567 4,805,677

For the purpose of these consolidated financial statements, all not past due collectively assessed loans to legal entities are classified in three quality groups presented in the tables above with group 1 loans being of the highest quality. The 1-st group includes borrowers with sound level of liquidity and profitability as well as high capital adequacy ratio. The probability of breach of loan agreement terms is assessed as low. The 2-nd group includes borrowers with average level of liquidity and profitability as well as average capital adequacy ratio. The probability of breach of loan agreement terms is assessed as moderate. The 3-rd group includes borrowers with satisfactory level of liquidity and profitability as well as moderate capital adequacy ratio. The probability of breach of loan agreement terms is assessed as above moderate.

For the purpose of these consolidated financial statements, all not past due loans to individuals are combined into three groups presented in the tables above. The 1-st group of these loans to individuals is represented by loans with good debt servicing and excellent financial position of a borrower. The 2-nd group is represented by loans with good/average debt servicing and excellent/moderate financial position of a borrower. The 3-rd group is represented by loans with average debt servicing and moderate financial position of a borrower.

As defined by the Group for the purposes of internal credit risk assessment, loans fall into the "non-performing" category when a principal and/or interest payment becomes more than 90 days overdue.

As at 31 December 2010 the outstanding non-performing loans were as follows:

In millions of Russian Roubles Gross loans Provision for impairment Net loans Provision for impairment to gross loans
Commercial loans to legal entities 165,685 (153,038) 12,647 92.4%
Specialised loans to legal entities 232,105 (192,813) 39,292 83.1%
Consumer and other loans to individuals 27,526 (25,839) 1,687 93.9%
Mortgage loans to individuals 24,585 (23,416) 1,169 95.2%
Car loans to individuals 2,391 (2,156) 235 90.2%
Total non-performing loans and advances to customers as at 31 December 2010 452,292 (397,262) 55,030 87.8%

As at 31 December 2009 the outstanding non-performing loans were as follows:

In millions of Russian Roubles Gross loans Provision for impairment Net loans Provision for impairment to gross loans
Commercial loans to legal entities 149,978 (110,950) 39,028 74.0%
Specialised loans to legal entities 254,609 (190,350) 64,259 74.8%
Consumer and other loans to individuals 29,385 (27,902) 1,483 95.0%
Mortgage loans to individuals 22,381 (22,053) 328 98.5%
Car loans to individuals 2,379 (2,264) 115 95.2%
Total non-performing loans and advances to customers as at 31 December 2009 458,732 (353,519) 105,213 77.1%

Renegotiated loans. Information on loans which terms have been renegotiated, as at 31 December 2010 and 31 December 2009 is presented in the table below. It shows the carrying amount for renegotiated loans by class.

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In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
31 December 2010:            
Not past due collectively assessed loans 402,606 171,884 6,824 1,958 38 583,310
Other renegotiated loans 96,571 54,160 3,299 10,197 184 164,411
Total renegotiated loans before provision for loan impairment 499,177 226,044 10,123 12,155 222 747,721
31 December 2009:            
Not past due collectively assessed loans 375,723 156,981 917 804 32 534,457
Other renegotiated loans 76,913 27,407 2,093 5,890 22 112,325
Total renegotiated loans before provision for loan impairment 452,636 184,388 3,010 6,694 54 646,782
In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
31 December 2010:            
Not past due collectively assessed loans 402,606 171,884 6,824 1,958 38 583,310
Other renegotiated loans 96,571 54,160 3,299 10,197 184 164,411
Total renegotiated loans before provision for loan impairment 499,177 226,044 10,123 12,155 222 747,721
31 December 2009:            
Not past due collectively assessed loans 375,723 156,981 917 804 32 534,457
Other renegotiated loans 76,913 27,407 2,093 5,890 22 112,325
Total renegotiated loans before provision for loan impairment 452,636 184,388 3,010 6,694 54 646,782

Provisions for Loan Impairment. The analysis of changes in provisions for loan impairment for the year ended 31 December 2010 is presented in the table below:

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In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
Provision for loan impairment as at 1 January 2010 221,488 287,059 38,238 28,775 4,254 579,814
Net provision charge for loan impairment during the year 118,880 35,863 (1,041) 832 (725) 153,809
Loans and advances written off during the year (27,439) (2,140) (1,112) (328) (81) (31,100)
Provision for loan impairment as at 31 December 2010 312,929 320,782 36,085 29,279 3,448 702,523
In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
Provision for loan impairment as at 1 January 2010 221,488 287,059 38,238 28,775 4,254 579,814
Net provision charge for loan impairment during the year 118,880 35,863 (1,041) 832 (725) 153,809
Loans and advances written off during the year (27,439) (2,140) (1,112) (328) (81) (31,100)
Provision for loan impairment as at 31 December 2010 312,929 320,782 36,085 29,279 3,448 702,523

The analysis of changes in provisions for loan impairment for the year ended 31 December 2009 is presented in the table below:

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In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
Provision for loan impairment as at 1 January 2009 82,708 75,305 30,077 12,611 1,584 202,285
Net provision charge for loan impairment during the year 147,089 212,421 10,056 16,587 2,779 388,932
Loans and advances written off during the year (8,309) (667) (1,895) (423) (109) (11,403)
Provision for loan impairment as at 31 December 2009 221,488 287,059 38,238 28,775 4,254 579,814
In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Consumer and other loans to individuals Mortgage loans to individuals Car loans to individuals Total
Provision for loan impairment as at 1 January 2009 82,708 75,305 30,077 12,611 1,584 202,285
Net provision charge for loan impairment during the year 147,089 212,421 10,056 16,587 2,779 388,932
Loans and advances written off during the year (8,309) (667) (1,895) (423) (109) (11,403)
Provision for loan impairment as at 31 December 2009 221,488 287,059 38,238 28,775 4,254 579,814

Loan Security. The Group Management's best estimate of fair value of collateral for past due loans as at 31 December 2010 and 31 December 2009 is presented in the table below:

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  2010 2009
In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Commercial loans to legal entities Specialised loans to legal entities
Best estimate of fair value of collateral for past due loans, assessed for impairment on a collective basis, when collateral is:
- real estate 130,308 77,818 96,410 87,299
- transportation and production equipment 58,650 33,026 43,175 41,399
- goods in turnover 53,883 1,415 53,006 1,710
- tradable securities - 5,527 - 13,166
- other assets 31,663 118,083 17,360 56,794
Best estimate of fair value of collateral for past due individually impaired loans to legal entities, when collateral is:
- real estate 292,844 79,458 176,438 322,075
- transportation and production equipment 27,933 35,219 30,106 37,356
- goods in turnover 8,161 136 1,783 506
- tradable securities 2,100 46,769 40,385 45,253
- other assets 12,831 167,062 2,827 98,478
Total 618,373 564,513 461,490 704,036
  2010 2009
In millions of Russian Roubles Commercial loans to legal entities Specialised loans to legal entities Commercial loans to legal entities Specialised loans to legal entities
Best estimate of fair value of collateral for past due loans, assessed for impairment on a collective basis, when collateral is:
- real estate 130,308 77,818 96,410 87,299
- transportation and production equipment 58,650 33,026 43,175 41,399
- goods in turnover 53,883 1,415 53,006 1,710
- tradable securities - 5,527 - 13,166
- other assets 31,663 118,083 17,360 56,794
Best estimate of fair value of collateral for past due individually impaired loans to legal entities, when collateral is:
- real estate 292,844 79,458 176,438 322,075
- transportation and production equipment 27,933 35,219 30,106 37,356
- goods in turnover 8,161 136 1,783 506
- tradable securities 2,100 46,769 40,385 45,253
- other assets 12,831 167,062 2,827 98,478
Total 618,373 564,513 461,490 704,036
  • Estimation of the fair value of collateral for past due loans, assessed for impairment on a collective basis, and individually impaired loans to legal entities as at 31 December 2010 and 31 December 2009 was estimated by the Group's lending departments using Group's internal methodology. The Group's policy on collateral requirements is disclosed in Note 31.
  • Actual net realisable value of collateral may differ from the value disclosed above due to potential difficulties arising during the foreclosure which can not be predicted.

Investments in finance lease. Included in specialised loans to legal entities are net investments in finance lease. The analysis of net investments in finance lease as at 31 December 2010 and as at 31 December 2009 is as follows:

in millions of Russian Roubles 2010 2009
Gross investment in finance lease 72,717 49,965
Unearned future finance income on finance lease (21,274) (14,380)
Net investment in finance lease before provision for impairment 51,443 35,585
Less provision for impairment (1,033) (1,119)
Net investment in finance lease after provision for impairment 50,410 34,466

The contractual maturity analysis of net investments in finance lease as at 31 December 2010 is as follows:

In millions of Russian Roubles Net investment in finance lease before provision for impairment Provision for impairment Net investment in finance lease after provision for impairment
Not later than 1 year 18,567 (325) 18,242
Later than 1 year but not later than 5 years 29,303 (657) 28,646
Later than 5 years 3,573 (51) 3,522
Total as at 31 December 2010 51,443 (1,033) 50,410

The contractual maturity analysis of net investments in finance lease as at 31 December 2009 is as follows:

In millions of Russian Roubles Net investment in finance lease before provision for impairment Provision for impairment Net investment in finance lease after provision for impairment
Not later than 1 year 10,371 (577) 9,794
Later than 1 year but not later than 5 years 22,615 (498) 22,117
Later than 5 years 2,599 (44) 2,555
Total as at 31 December 2009 35,585 (1,119) 34,466

The analysis of minimal finance lease receivables as at 31 December 2010 and 31 December 2009 per contractual maturity is as follows:

In millions of Russian Roubles 31 December 2010 31 December 2009
Not later than 1 year 19,662 13,890
Later than 1 year but not later than 5 years 41,593 32,234
Later than 5 years 11,462 3,841
Total 72,717 49,965

Economic sector risk concentration. Economic sector risk concentrations within the customer loan portfolio as at 31 December 2010 and 31 December 2009 are as follows:

  2010 2009
In millions of Russian Roubles Amount % Amount %
Individuals 1,319,732 21.3 1,177,539 21.7
Trade 1,008,025 16.3 960,385 17.7
Services 1,001,330 16.2 748,240 13.7
Food and agriculture 585,394 9.5 511,658 9.4
Construction 404,601 6.5 408,307 7.5
Machine building 317,588 5.1 347,222 6.4
Metallurgy 300,806 4.9 273,814 5.0
Chemical industry 216,833 3.5 186,790 3.4
Energy 208,797 3.4 172,623 3.2
Oil and gas 177,495 2.9 157,078 2.9
Telecommunications 168,042 2.7 164,934 3.0
Government and municipal bodies 153,280 2.5 94,004 1.7
Transport, aviation, space industry 147,540 2.4 109,211 2.0
Timber industry 49,609 0.8 43,955 0.8
Other 132,838 2.0 88,085 1.6
Total loans and advances to customers before
provision for loan impairment
6,191,910 100.0 5,443,845 100.0

Included into 'services' are loans granted to holding companies and multiindustry companies.

As at 31 December 2010 the Group had 20 largest borrowers with aggregated loan amounts due from each of these borrowers exceeding RR 29 300 million (31 December 2009: 20 largest borrowers with loan amounts due from each of these borrowers exceeding RR 23 000 million). The total aggregate amount of these loans was RR 1 401 637 million or 22.6% of the total gross loan portfolio of the Group (31 December 2009: RR 1 240 189 million or 22.8%).

Interest income accrued on loans, for which individual impairment has been recognised, for the year ended 31 December 2010, comprised RR 8 322 million (2009: RR 3 297 million).

In interest income on loans and advances to customers in the consolidated income statement are included fines and penalties received from borrowers in the amount of RR 10 759 million (2009: RR 5 828 million).

The estimated fair value of loans and advances to customers is disclosed in Note 34. Currency and maturity analyses of loans and advances to customers are disclosed in Note 31. The information on related party balances is disclosed in Note 35 and 36.

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