Barclays 2010 Annual Report Download - page 89

Impairment Charges (audited)
Impairment charges on loans and advances fell 24% to £5,625m (2009: £7,358m), reflecting improving credit conditions in the main sectors and
geographies in which Barclays lends, which led to lower charges across the majority of businesses. The largest reduction was in the wholesale portfolios,
due to lower charges against credit market exposures and fewer large single name charges. This reduction was partially offset by the impact of
deteriorating credit conditions in the Spanish property and construction sectors, which resulted in an increase of £630m in impairment against the
Barclays Corporate loan book in Spain, and £532m impairment relating to the Protium loan in Barclays Capital. In the retail portfolios, impairment
performance improved as delinquency rates fell across Barclays businesses, most notably the UK, US, Spanish, Indian, and African portfolios.
As a result of this fall in impairment and the 1% rise in loans and advances, the loan loss rate decreased to 118bps (2009: 156bps).
The impairment charges against available for sale assets and reverse repurchase agreements fell by 93% to £47m (2009: £713m), principally driven by
lower impairment against credit market exposures.
Impairment charges by business (audited) Loans
and
advances
a
£m
Available
for sale
£m
Reverse
repos
£m
Total
£m
Year ended 31st December 2010
UK Retail Banking 819 – – 819
Barclaycard 1,688 – – 1,688
Western Europe Retail Banking 314 – – 314
Barclays Africa 82 – – 82
Absa 480 – – 480
Barclays Capitalb 642 (95) (4) 543
Barclays Corporate 1,551 145 – 1,696
Barclays Wealth 48 – – 48
Head Office Functions and Other Operations 1 1 – 2
Total impairment charges 5,625 51 (4) 5,672
Year ended 31st December 2009
UK Retail Banking 1,031 – – 1,031
Barclaycard 1,798 – – 1,798
Western Europe Retail Banking 334 4 – 338
Barclays Africa 121 – – 121
Absa 567 – – 567
Barclays Capitalb 1,898 650 43 2,591
Barclays Corporate 1,544 14 – 1,558
Barclays Wealth 51 – – 51
Head Office Functions and Other Operations 14 2 – 16
Total impairment charges 7,358 670 43 8,071
Year ended 31st December 2008
UK Retail Banking 642 – – 642
Barclaycard 1,097 – – 1,097
Western Europe Retail Banking 172 – – 172
Barclays Africa 71 – – 71
Absa 347 – – 347
Barclays Capitalb 1,936 363 124 2,423
Barclays Corporate 593 – – 593
Barclays Wealth 44 – – 44
Head Office Functions and Other Operations 11 19 – 30
Total impairment charges 4,913 382 124 5,419
Notes
a Includes charges of £76m (2009: £28m; 2008: £329m) in respect of undrawn facilities
and guarantees.
b Credit market related impairment charges within Barclays Capital comprised £660m
(2009: £1,205m; 2008: £1,517m) against loans and advances, a write back of £39m
(2009: £464m charge; 2008: £192m charge) against available for sale assets and
a charge against reverse repurchase agreements of £nil (2009: £nil; 2008: £54m).
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 87
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