Barclays 2011 Annual Report Download - page 96

Group loans and advances held at fair value, by industry sector and geography
Total loans and advances held at fair value reduced 5% to £23,334m, principally reflecting the liquidation of loans to financial institutions in Europe and
commercial real estate loans in the Americas and Europe as part of the Group’s strategy of winding down Barclays Capital’s credit market exposures.
This reduction was offset partially by an increase in the fair value of Barclays Corporate lending to UK commercial real estate, government and business
and other services counterparties, and the consolidation of Protium assets in the Americas.
Loans and advances held at fair value, by industry sector and geography
United
Kingdom
£m
Europe
£m
Americas
£m
Africa and
Middle East
£m
Asia
£m
Total
£m
As at 31 December 2011
Banks 11 364 10 126 1 512
Other financial institutions 142 76 892 134 21 1,265
Manufacturing 16 211 154 7 18 406
Construction 158 – – 19 2 179
Property 8,443 1,147 575 133 3 10,301
Government 5,609 – – 19 8 5,636
Energy and water 32 203 46 104 – 385
Wholesale and retail distribution and leisure 63 15 243 36 2 359
Business and other services 3,381 76 201 34 – 3,692
Other 90 66 55 317 71 599
Total loans and advances held at fair value 17,945 2,158 2,176 929 126 23,334
As at 31 December 2010
Banks 49 766 5 193 52 1,065
Other financial institutions 90 230 439 252 49 1,060
Manufacturing 39 67 187 49 5 347
Construction 199 – – 45 5 249
Property 7,003 2,793 1,858 43 237 11,934
Government 4,848 – – 189 51 5,088
Energy and water 14 259 57 34 6 370
Wholesale and retail distribution and leisure 70 14 705 11 – 800
Business and other services 2,650 69 442 80 5 3,246
Other 103 114 76 69 1 363
Total loans and advances held at fair value 15,065 4,312 3,769 965 411 24,522
Impairment allowances
Impairment allowances decreased £1,835m to £10,597m, driven primarily by a reduction in the retail portfolios due to a change in the write-off policy
against most unsecured portfolios, debt sales and lower severity. Wholesale impairment allowances at 31 December 2010 included £532m held against
the loan to Protium. Excluding this balance, wholesale impairment allowances increased slightly reflecting higher levels of impairment in Europe,
particularly the property sector in Portugal, and some large single names in Barclays Capital. Amounts written off increased £855m to £5,165m driven,
in part, by the change in write-off policy.
Movements in allowance for impairment by asset class (audited)
At beginning
of year
£m
Acquisitions
and
disposals
£m
Unwind of
discount
£m
Exchange
and other
adjustments
£m
Amounts
written off
£m
Recoveries
£m
Amounts
charged to
income
statement
£m
Balance at
31 December
£m
2011
Home loans 854 (2) (80) (101) (184) 14 333 834
Credit cards, unsecured and other retail lending 5,919 (4) (154) (145) (3,292) 139 2,077 4,540
Wholesale 5,659 (12) (9) (194) (1,689) 112 1,356 5,223
Total impairment allowance 12,432 (18) (243) (440) (5,165) 265 3,766 10,597
2010
Home loans 639 18 (54) 63 (134) 6 316 854
Credit cards, unsecured and other retail lending 5,538 74 (153) 121 (2,618) 138 2,819 5,919
Wholesale 4,619 (14) (6) 147 (1,558) 57 2,414 5,659
Total impairment allowance 10,796 78 (213) 331 (4,310) 201 5,549 12,432
94 Barclays PLC Annual Report 2011 www.barclays.com/annualreport