Barclays 2011 Annual Report Download - page 102

The level of forbearance extended to customers in other retail portfolios is not material and, typically, does not currently play a significant part in the
way customer relationships are managed.
Barclays would not consider a retail loan to be renegotiated where the amendment is at the request of the customer, there is no evidence of actual
or imminent financial difficulty and the amendment meets with all Barclays underwriting criteria. In this case it would be treated as a new loan.
In addition Barclays will allow re-ageing of an account once in 12-months or twice in 5 years, providing strict qualification criteria are met including
making three consecutive monthly payments. An account so re-aged is not considered to be restructured because the contractual monthly payments
remain unchanged.
Principal portfolios
Gross L&A
subject to
forbearance
programmes
£m
Forbearance
programmes
proportion
of
outstanding
balances
%
Impairment
coverage on
gross L&A
subject to
forbearance
programmes
%
Marked to
market LTV
of home loan
forbearance
balances
%
As at 31 December 2011
Home loans
UK 1,613 1.5 0.8 31.6
Spain 145 1.0 3.7 67.4
Italy 171 1.1 2.6 46.5
Credit cards, overdrafts and unsecured loans
UK cardsa946 7.1 38.2 n/a
UK personal loans 201 3.8 28.2 n/a
US cards 125 1.7 19.7 n/a
As at 31 December 2010
Home loans
UK 1,446 1.4 0.9 31.8
Spain 151 1.0 0.8 61.6
Italy 186 1.4 0.6 47.4
Credit cards, overdrafts and unsecured loans
UK cardsb908 7.2 30.6 n/a
UK personal loans 215 3.7 31.7 n/a
US cards 150 2.1 18.4 n/a
Forbearance in principal home loans portfolios increased 8% to £1,929m (2010: £1,783m), principally in the UK.
Within UK home loans, term extensions accounted for the majority of forbearance balances. Since January 2008 an additional £1.5bn of interest
only mortgages have received a term extension, which have not been classified as forbearance as the contractual monthly payments did not alter.
In Spain, forbearance accounts are usually full account restructures. In Italy, the majority of balances relate to specific schemes required by the
Government (e.g. debt relief scheme following the earthquake of 2009) and are weighted towards payment holidays and interest suspensions.
Forbearance in principal credit cards, overdrafts and unsecured loans portfolios remains stable at £1,272m (2010: £1,273m). Impairment allowances
against UK cards forbearance increased to reflect revised expectations on debt repayment. As a result, the impairment coverage ratio increased to
36.5% (2010: 30.6%).
For detail on how loans are separated into pools reflecting similar risk characteristics, refer to page 89.
Risk management
Credit risk continued
Notes
a UK cards excludes £43m relating to credit card assets acquired from Egg UK, which were recognised on acquisition at fair value (with no related impairment allowance).
b UK cards revised to include partnership card assets.
100 Barclays PLC Annual Report 2011 www.barclays.com/annualreport