Loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and that the Group does not intend to sell immediately or in the near term.
Loans primarily represent loan amount due from customers. Loans are initially measured at fair value plus incremental direct transaction costs, and subsequently measured at their amortized cost using the effective interest method less allowance that reflects the Group’s best estimate of the amounts that will not be collected.
The loan portfolio consists of corporate loans and personal loans (See Note 15). Loans are presented net of allowance for loan losses.