Simple Example,
Company A has a total of 100 M Loans - Provisioned for 20 M Loans
At the end of the year NPL = 10 M
Gross NPL% = 10/100 = 10%
Net NPL = Gross NPL - Provisions for Credit Losses
Net NPL% = (10-20)/100=-10% or NM
Would appreciate some help, this simplified example is wrt an actual annual report. The company provisioned more loans than the actual NPL. However, the Net NPL was still positive.
Cheers!
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