Page 49 - Annual Report 2019

46 ANNUAL REPORT 2019 SUPERVISION AND AUTHORISATION

9. Classified credit

QAR Millions

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2017 2018 2019

The volume of classified credit increased noticeably towards 2018 year-end, and remained high Special mention Substandard Doubtful
during 2019. Although the volume of classified credit marginally declined at December 2019
in comparison to 2018, the provision coverage ratios declined noticeably. The coverage ratio Loss Specific coverage ratio (RHS) Total coverage ratio (RHS)
through specific and total provisions stood at 30.7% and 34.4%, respectively. The “special mention
category”, necessitating smaller provisions, continued to dominate classified credit exposures,
whereas the volume of credits classified as doubtful and loss gradually declined in 2019, partially
attributable to loan sales to other financial institutions outside QFC, as well as restructurings.