Barclays 2012 Annual Report Download - page 125

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
Overview
As at 31 December 2012, the proportion of the Group’s assets classified as strong fell marginally to 83% (2011: 84%) of total assets exposed
to credit risk.
Traded assets continued to remain almost entirely investment grade, with counterparties to 94% (2011: 95%) of total derivative financial
instruments, and issuers of 94% (2011: 95%) of debt securities held for trading and 94% (2011: 91%) of debt securities held available for sale
being investment grade. The credit quality of counterparties to reverse repurchase agreements held at amortised cost remained broadly stable
at 73% (2011: 77%). The credit risk of these assets is much reduced with balances being fully collateralised.
In the loan portfolios, 81% of home loans (2011: 78%) to customers are measured as strong. This increase in the period reflects improvements
in the UK portfolio. The majority of credit card, unsecured and other retail lending remained satisfactory, reflecting the unsecured nature of a
significant proportion of the balance, comprising 69% of the total (2011: 70%). The credit quality profile of the Group’s corporate lending
improved with counterparties rated strong increasing to 66% (2011: 61%), primarily due to the continued active management of corporate
books in the Investment Bank and Corporate Banking.
Further analysis of debt securities by issuer type is presented on page 140.
Further information on netting and collateral arrangements on derivatives financial instruments is presented on page 141.
Balance sheet credit quality (audited)
Strong
(investment
grade)
£m
Satisfactory
(BB+ to B)
£m
Higher risk
(B- and
below)
£m
Maximum
exposure to
credit risk
£m
Strong
(investment
grade)
%
Satisfactory
(BB+ to B)
%
Higher risk
(B- and
below)
%
As at 31 December 2011
Cash and balances at central banks 106,894 – – 106,894 100 – –
Items in the course of collection from other banks 1,615 99 98 1,812 89 6 5
Trading portfolio assets:
Debt securities 116,743 4,922 1,699 123,364 95 4 1
Traded loans 74 821 479 1,374 5 60 35
Total trading portfolio assets 116,817 5,743 2,178 124,738 94 4 2
Financial assets designated at fair value:
Loans and advances 19,484 1,487 989 21,960 89 7 4
Debt securities 1,163 184 748 2,095 55 9 36
Reverse repurchase agreements 4,018 1,554 207 5,779 69 27 4
Other financial assets 655 1,079 61 1,795 36 60 4
Total financial assets
designated at fair value 25,320 4,304 2,005 31,629 80 14 6
Derivative financial instruments 515,109 19,875 3,980 538,964 95 4 1
Loans and advances to banks 42,278 2,594 2,574 47,446 89 6 5
Loans and advances to customers:
Home loans 134,009 25,847 11,416 171,272 78 15 7
Credit cards, unsecured and other retail lending 14,226 45,388 4,878 64,492 22 70 8
Corporate loans 119,856 59,370 16,944 196,170 61 30 9
Total loans and advances to customers 268,091 130,605 33,238 431,934 62 30 8
Reverse repurchase agreements and other similar
secured lending 117,719 34,653 1,293 153,665 77 22 1
Available for sale debt securities 57,793 3,253 2,564 63,610 91 5 4
Other assets 2,130 417 73 2,620 81 16 3
Total assets 1,253,766 201,543 48,003 1,503,313 84 13 3
barclays.com/annualreport Barclays PLC Annual Report 2012 I 123