NPL Vintage Analysis

Basic description

This report illustrates how portfolio quality has changed over time, by showing the number, value or percentage of loans disbursed in a given month that have become non-performing in each subsequent month. For example, it shows loans disbursed in Oct 2018 that have become non-performing after 1, 2, 3, etc month. The presentation is either as a graph, a heat map or basic chart. The report can be refined by region or branch, business line or product, sector, currency, loan size or age of loan.

Uses

This report allows managers to identify and monitor patterns in non-performing loans. For example, the report may show that borrowers tend to get into difficulties around one year into a loan. This might enable the institution to schedule remedial activities. Conversely it may be that loans taken out at a particular time are more likely to become non-performing (seasonality). The other filters can also identify how risks differ between loan products and size, and between geographic areas.

Options

You can select:-

 Whether to breakdown the portfolio by count or value

 A single branch, group of branches (e.g. region), or the whole institution

 Whether to examine the portfolio by:-
            •  Product class (business lines, e.g. mortgages)
            •  Product group (usually product types, e.g. fixed rate residential mortgages)
            •  Products (specific named products)

 Currency (if relevant)

 Days past due
            •  1+ days
            •  30+ days
            •  90+ days
            •  180+ days

 Sector (if captured)

 Loan cycle (if relevant)

 Whether or not to include the current month (not comparable with other months as only part month)

 To present as a:-
            •  Chart (graph)
            •  Table,
            •  Heat map (table showing higher values in darker shades of red)

 To show the portfolio:-
            •  In absolute terms (outstanding balance)
            •  In NPL % terms (% of disbursed)