6 Loans and Advances

Loans and advances

2017 2016
AED’000 AED’000
Commercial loans 2,052,177 1,857,890
Retail finance

498,208

415,440

Gross loans and advances 2,550,385 2,273,330
 
Less: assessed allowance for impairment  
 – Collectively assessed allowances (42,047) (36,067)
 – Individually assessed allowances (172,537) (183,734)
Net loans and advances
2,335,801
2,053,529


The movement in the allowance for impairment during the year is shown below:

  Individual impairment   Collective impairment    

Total

AED’ 000   AED’000   AED’000
2017
At 1 January 183,734   36,067   219,801
Impairment charges for the year 42,756   5,980   48,736
Reversal of no longer required impairment charges (5,300)     (5,300)
Amounts written off (48,653)     (48,653)
Balance at 31 December
172,537
 
42,047
 
214,584
 
2016
At 1 January 191,176 34,771 225,947
Impairment charges for the year 93,899 1,296 95,195
Amounts written off (101,341) (101,341)
Balance at 31 December
183,734
36,067
219,801

Reconciliation of net impairment charges on loans and advances

2017 2016
AED’000 AED’000
Impairment charges for the year 48,736 95,195
Reversal of no longer required impairment charges (5,300)
Recovery from previously written off loans (9,500)
33,936
95,195