Barclays 2012 Annual Report Download - page 128

Loans and advances held at fair value by industry sector and geography
Total loans and advances held at fair value principally reflecting balances held in the Corporate and Investment Bank increased 5% to £24.4bn
(2011: £23.3bn). The movement is driven by government, and business and other services counterparties which increased by £0.9bn to £10.2bn,
reflecting increased lending in the Americas. A large portion of the total comprises lending to property, government, and business and other
services. Property includes lending within the legacy Corporate Real Estate business as well as to social housing associations and the fall of £0.4bn
to £9.9bn (2011: £10.3bn) is primarily due to loan repayments.
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 2012
Banks – 493 120 422 – 1,035
Other financial institutionsa13 611 622 8 39 1,293
Manufacturing 6 38 601 16 15 676
Construction 161 1 – 28 4 194
Property 8,668 830 295 121 – 9,914
Government and central bank 5,759 6 314 17 5 6,101
Energy and water 10 73 41 46 3 173
Wholesale and retail distribution and leisure 33 2 220 72 1 328
Business and other services 3,404 20 685 14 – 4,123
Other 105 132 46 224 56 563
Total 18,159 2,206 2,944 968 123 24,400
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 and central bank 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 17,945 2,158 2,176 929 126 23,334
Impairment charges (audited)
Loan impairment charges reduced 6% to £3,559m, reflecting lower impairment in UKRBB, Barclaycard and Corporate Banking partially offset by
higher charges in some international businesses, notably in Europe and South Africa, and a higher charge in the Investment Bank. The increase
in the Investment Bank was related to ABS CDO Super Senior positions, losses on a small number of single name exposures; and a non-recurring
release of £223m in 2011. Combined with a 3% decrease in loans and advances, this resulted in a lower overall Group loan loss rate of 75bps
(2011: 77bps; 2010: 118bps). Further detail can be found in the Retail credit risk and Wholesale credit risk sections on pages 129 and 136.
Credit impairment charges and other provisions by business (audited)
2012
£m
2011
£m
2010
£m
Loan impairment
UKRBB 269 536 819
Europe RBB 328 241 314
Africa RBB 646 466 562
Barclaycard 979 1,259 1,688
Investment Bankb448 129 642
Corporate Banking 851 1,120 1,551
Wealth and Investment Management 38 41 48
Head Office and Other Operations –(2) 1
Total loan impairment chargesc3,559 3,790 5,625
Impairment charges on available for sale investments (excluding BlackRock, Inc.) 40 60 51
Impairment of reverse repurchase agreements (3) (48) (4)
Total credit impairment charges and other provisions 3,596 3,802 5,672
Impairment of investment in BlackRock, Inc. –1,800 –
Notes
a Included within Other financial institutions (Americas) are £427m (2011: £693m) of loans backed by retail mortgage collateral.
b Credit market related impairment charges within Investment Bank comprised a net £243m charge (2011: £14m write back; 2010: £660m charge) against loans and
advances and a £6m write back (2011: £35m; 2010: £39m) against available for sale investments.
c Includes write back of £4m (2011: £24m charge; 2010: £76m charge) in respect of undrawn facilities and guarantees.
barclays.com/annualreport126 I Barclays PLC Annual Report 2012
Risk review
Credit risk continued