Barclays 2014 Annual Report Download - page 153

barclays.com/annualreport Barclays PLC Annual Report 2014 I 151
Available for sale investments principally relate to investments in government bonds and other debt securities. Balances are reported on a fair
value basis, with movements in fair value going through other comprehensive income (OCI).
Loans and advances held at amortised costa comprise: (i) retail lending portfolios, predominantly mortgages secured on residential property; and
(ii) corporate lending portfolios. Settlement balances and cash collateral are excluded from this analysis.
Sovereign exposures reflect direct exposures to central and local governmentsb, the majority of which are used for hedging interest rate risk and
liquidity purposes. The remaining portion is actively managed reflecting our role as a leading primary dealer, market-maker and liquidity provider
to our clients. Financial institution and corporate exposures reflect the country of operations of the counterparty or issuer depending on the asset
class analysed (including foreign subsidiaries and without reference to cross-border guarantees). Retail exposures reflect the country of residence
for retail customers and country of operations for business banking customers. Off-balance sheet exposure consists primarily of undrawn
commitments and guarantees issued to third parties on behalf of our corporate clients.
Summary of Group Exposures
The following table shows the Group’s exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of
particular management focus. Detailed analysis on these countries is on pagesc 151 to 154. The net exposure provides the most appropriate
measure of the credit risk to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent
liabilities and commitments. Gross exposure reflects total exposures before the effects of economic hedging by way of trading portfolio liabilities,
derivative liabilities and cash collateral, but after taking into account impairment allowances and IFRS netting.
Net exposure by country and counterparty (audited)
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Residential
mortgages
£m
Other retail
lending
£m
Total net
on-balance
sheet
exposure
£m
Contingent
liabilities and
commitments
£m
Total net
exposure
£m
As at 31 December 2014
Spain 108 14,043 1,149 12 248 15,560 2,863 18,423
Italy 1,716 485 1,128 13,530 1,114 17,973 3,033 21,006
Portugal 105 7 531 2,995 1,207 4,845 1,631 6,476
Ireland 37 3,175 1,453 43 50 4,758 2,070 6,828
Cyprus 28 12 61 6 16 123 26 149
Greece 1 11 15 – – 27 – 27
As at 31 December 2013
Spain 184 1,029 3,203 12,537 2,292 19,245 3,253 22,498
Italy 1,556 417 1,479 15,295 1,881 20,628 3,124 23,752
Portugal 372 38 891 3,413 1,548 6,262 2,288 8,550
Ireland 67 5,030 1,356 103 100 6,656 2,047 8,703
Cyprus – 7 106 19 43 175 66 241
Greece 8 5 51 6 12 82 3 85
Gross exposure by country and counterparty (audited)
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Residential
mortgages
£m
Other retail
lending
£m
Total gross
on-balance
sheet
exposure
£m
Contingent
liabilities and
commitments
£m
Total gross
exposure
£m
As at 31 December 2014
Spain 1,559 21,244 1,810 12 248 24,873 2,863 27,736
Italy 3,998 5,700 1,625 13,530 1,114 25,967 3,033 29,000
Portugal 227 83 538 2,995 1,207 5,050 1,631 6,681
Ireland 412 7,124 1,816 43 50 9,445 2,071 11,516
Cyprus 28 503 155 6 16 707 27 734
Greece 17 1,242 20 – – 1,279 – 1,279
As at 31 December 2013
Spain 1,198 6,715 3,596 12,537 2,292 26,338 3,253 29,591
Italy 4,104 4,339 1,836 15,295 1,881 27,455 3,124 30,579
Portugal 526 171 950 3,413 1,548 6,608 2,288 8,896
Ireland 587 7,819 1,424 103 100 10,033 2,047 12,080
Cyprus – 68 126 19 43 256 66 322
Greece 9 824 52 6 12 903 3 906
Notes
a The Group also enters into reverse repurchase agreements and other similar secured lending, which are materially fully collateralised.
b In addition, the Group held cash with the central banks of these countries totalling £0.2bn (2013: £0.2bn). Other material balances with central banks are classified within loans
to financial institutions.
c Detailed analysis is not provided for Ireland as there is no redenomination risk due to local funding and due to significant risk relating to the underlying assets residing in an
alternative country. The exposures for Cyprus and Greece are deemed immaterial to the Group.
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