Barclays 2009 Annual Report Download - page 103

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 101
Loans and advances to customers and banks
Total loans and advances to customers and banks net of impairment
allowance fell 10% to £487,268m (31st December 2008: £542,118m).
Loans and advances at amortised cost were £461,359m (31st December
2008: £509,522m) and loans and advances at fair value were £25,909m
(31st December 2008: £32,596m).
Total loans and advances to customers and banks gross of impairment
allowances fell by £43,941m (9%) to £472,155m (31st December 2008:
£516,096m) due to an 18% reduction in the wholesale portfolios,
principally in:
– Barclays Capital, due to a decrease in the cash collateral held against
derivative trades, a reduction in non-UK lending and a decrease in the value
of other currencies relative to Sterling. This was partially offset by increases
in lending due to restructuring of credit market assets and a reclassification
of previously held for trading assets to loans and advances; and
– Barclays Commercial Bank, due to reduced customer demand.
This was partially offset by a rise in loans and advances to customers across
the majority of retail business units, notably in UK Retail Bank due to growth
in the UK Home Finance portfolio.
Loans and advances held at fair value
Barclays Capital loans and advances held at fair value were £12,835m
(31st December 2008: £19,630m). Included within this balance is £6,941m
relating to credit market exposures, the majority of which are commercial
real estate loans. The balance of £5,894m primarily comprises financial
institutions and manufacturing loans.
Barclays Commercial Bank loans and advances held at fair value split
between property, business and services and Government sectors, were
£13,074m (31st December 2008: £12,966m). The fair value of these loans
and any movements are matched by offsetting fair value movements on
hedging instruments.
Loans and advances at amortised cost Gross Loans and CRLs % of
loans and Impairment advances net Credit risk gross loans Impairment Loan loss
advances allowance of impairment loans and advances charge rates
£m £m £m £m % £m basis points
As at 31st December 2009
Wholesale – customers 218,110 4,604 213,506 10,990 5.0 3,430 157
Wholesale – banks 41,196 61 41,135 57 0.1 11 3
Total wholesale 259,306 4,665 254,641 11,047 4.3 3,441 133
Retail – customers 212,849 6,131 206,718 11,341 5.3 3,917 184
Total retail 212,849 6,131 206,718 11,341 5.3 3,917 184
Total 472,155 10,796 461,359 22,388 4.7 7,358 156
As at 31st December 2008
Wholesale – customers 266,750 2,784 263,966 8,144 3.1 2,540 95
Wholesale – banks 47,758 51 47,707 48 0.1 40 8
Total wholesale 314,508 2,835 311,673 8,192 2.6 2,580 82
Retail – customers 201,588 3,739 197,849 7,508 3.7 2,333 116
Total retail 201,588 3,739 197,849 7,508 3.7 2,333 116
Total 516,096 6,574 509,522 15,700 3.0 4,913 95
Loans and advances held at fair value As at As ata
31.12.09 31.12.08
£m £m
Government 5,024 5,143
Financial Institutions 3,543 7,354
Transport 177 218
Postal and Communications 179 37
Business and other services 2,793 2,882
Manufacturing 1,561 238
Wholesale and retail distribution and leisure 664 1,110
Construction 237 412
Property 11,490 14,944
Energy and Water 241 258
Total 25,909 32,596
Note
a2008 loans and advances held at fair value have been reanalysed to reflect changes in
classification of assets.