Barclays 2009 Annual Report Download - page 106

104 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Risk management
Credit risk management
continued
Wholesale Credit Risk
Loans and Advances to customers and banks in the wholesale portfolios
decreased by £55,202m (18%) to £259,306m, primarily as a result of a
£42,972m (21%) fall in Barclays Capital to £165,624m, 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 Sterling relative to other currencies.
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.
The corporate and government lending portfolio declined 30% to
£53,305m (31st December 2008: £76,556m) primarily due to reductions
in non-UK lending, a decrease in the value of other currencies relative to
Sterling and the repayment of leveraged finance loans.
Included within corporate and government lending and other wholesale
lending portfolios are £5,646m (31st December 2008: £7,674m) of loans
backed by retail mortgage collateral classified within financial institutions.
Loans and advances fell in Barclays Commercial Bank by £8,064m
(12%) to £60,840m, due to reduced customer demand. Balances fell in
both GRCB – Western Europe and GRCB – Emerging Markets, which was
due, in part, to the depreciation of various currencies across the regions
against Sterling. The increase of £1,429m (17%) of balances in GRCB –
Absa was due to the appreciation of the Rand against Sterling during 2009.
In Rand terms, balances were stable.
In the wholesale portfolios, the impairment charge against loans and
advances rose by £861m (33%) to £3,441m (2008: £2,580m) mainly due
to increases in:
– Barclays Commercial Bank, reflecting rising default rates and lower
asset values;
Wholesale 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 bps
As at 31.12.09
BCB 60,840 679 60,161 1,837 3.0 960 158
Barclaycard 322 4 318 10 3.1 17 528
GRCB WE 12,690 466 12,224 1,435 11.3 328 258
GRCB EM 5,228 227 5,001 358 6.8 140 268
GRCB Absa 10,077 195 9,882 690 6.8 67 66
Barclays Capital 165,624 3,025 162,599 6,411 3.9 1,898 115
BGI 5–5––––
Barclays Wealth 3,495 43 3,452 179 5.1 17 49
Head office 1,025 26 999 127 12.4 14 137
Total 259,306 4,665 254,641 11,047 4.3 3,441 133
As at 31.12.08
BCB 68,904 504 68,400 1,181 1.7 414 60
Barclaycard 301 2 299 20 6.6 11 365
GRCB WE 15,750 232 15,518 579 3.7 125 79
GRCB EM 7,233 122 7,111 190 2.6 36 50
GRCB Absa 8,648 140 8,508 304 3.5 19 22
Barclays Capital 208,596 1,796 206,800 5,743 2.8 1,936 93
BGI 834–834––––
Barclays Wealth 3,282 28 3,254 174 5.3 28 85
Head office 960 11 949 1 0.1 11 115
Total 314,508 2,835 311,673 8,192 2.6 2,580 82
Analysis of wholesale loans and advances at amortised cost net of impairment allowances
Settlement balances
Corporate Government & cash collateral Other wholesale Total wholesale
31.12.09 31.12.08 31.12.09 31.12.08 31.12.09 31.12.08 31.12.09 31.12.08 31.12.09 31.12.08
Wholesale £m £m £m £m £m £m £m £m £m £m
BCB 59,979 67,741 182 659 ––––60,161 68,400
Barclaycard 318 299 ––––––318 299
GRCB WE 12,184 15,226 14 32 ––26 260 12,224 15,518
GRCB EM 4,044 5,074 170 1,709 ––787 328 5,001 7,111
GRCB Absa 8,695 8,480 263 28 ––924 –9,882 8,508
Barclays Capital 49,849 72,796 3,456 3,760 55,672 79,418 53,622 50,826 162,599 206,800
BGI 5834 ––––––5834
Barclays Wealtha2,818 2,691 162 105 ––472 458 3,452 3,254
Head office 999 949 ––––––999 949
Total 138,891 174,090 4,247 6,293 55,672 79,418 55,831 51,872 254,641 311,673
Note
a2008 Barclays Wealth analysis of Wholesale loans and advances has been reanalysed to
reflect changes in the reclassification of assets.