Barclays 2014 Annual Report Download - page 155

barclays.com/annualreport Barclays PLC Annual Report 2014 I 153
Corporate
Q £674m (2013: £858m) of loans and advances focused on large corporate clients with limited exposure to property sector; and
Q Early warning list (EWL) balances reduced from £400m to £109m against a backdrop of limited impairment and improving good book
measures. EWL balances as a percentage of loans and advances was 13.6% (2013: 40%).
Other retail lending
Q £592m (2013: £982m) Italian salary advance loans where repayment is deducted at source by qualifying employers and the Group is insured
in the event of termination of employment or death. Arrears rates (30 and 90 days) on salary loans improved to 2.0% (2013: 2.2%) and 0.8%
(2013: 1.0%) respectively, while charge-off rates worsened to 18.7% (2013: 13.8%).
Q £142m (2013: £394m) of credit cards and other unsecured loans.
Portugal (audited)
Trading portfolio Derivatives
Designated
at fair value Total
As at 31 December Assets
£m
Liabilities
£m
Net
£m
Assets
£m
Liabilities
£m
Cash
collateral
£m
Net
£m
Assets
£m
2014
£m
2013
£m
Sovereign 126 (62) 64 60 (60) – – – 64 21
Financial institutions 18 (14) 4 62 (62) – – – 4 13
Corporate 71 (2) 69 24 (5) – 19 – 88 61
Amortised cost – loans and advances
Off balance sheet contingent
liabilities and commitments
Fair value through OCI –
available for sale (AFS) investmentsa
As at 31 December Gross
£m
Impairment
allowances
£m
2014 total
£m
2013 total
£m
2014
£m
2013
£m
Cost
£m
AFS reserve
£m
2014 total
£m
2013 total
£m
Sovereign 36 (9) 27 41 – –13 1 14 310
Financial institutions 1–123 412–22
Residential mortgages 3,042 (47) 2,995 3,413 411 ––––
Corporate 689 (278) 411 765 646 627 32 – 32 65
Other retail lending 1,354 (147) 1,207 1,548 977 1,649 ––––
Total net exposure to Portugal decreased 24% to £6,476m reflecting a £1,149m decrease in loans and advances due to reduced lending as part of
the Non-core strategy.
Sovereign
Q Sovereign exposures decreased to £105m (2013: £372m) due to the disposal of AFS government bonds.
Residential mortgages
Q £2,995m (2013: £3,413m) secured on residential property with average balance weighted LTVs of 75% (2013: 76%) and CRL coverage of 27%
(2013: 34%); and
Q 90 day arrears rates and recoveries remained stable at 0.5% (2013: 0.5%) and 3.6% (2013: 3.4%) respectively.
Corporate
Q Net lending to corporates of £411m (2013: £765m), with CRLs of £376m (2013: £548m), impairment allowance of £278m (2013: £352m) and
CRL coverage of 74% (2013: 64%);
Q Net lending to the property and construction industry of £120m (2013: £217m) secured, in part, against real estate collateral, with CRLs of
£178m (2013: £281m), impairment allowance of £129m (2013: £183m) and CRL coverage of 72% (2013: 65%); and
Q Balances on EWL decreased £330m to £458m due to increased focus on recovery balances.
Other retail lending
Q £785m (2013: £890m) credit cards and unsecured loans. 30 days arrears rates in cards portfolio deteriorated to 6.0% (2013: 4.9%) and
charge-off rates were at 10.7% (2013: 8.2%).
Analysis of indirect exposures
Indirect exposure to sovereigns can arise through a number of different sources, including credit derivatives referencing sovereign debt;
guarantees to savings and investment funds which hold sovereign risk; lending to financial institutions who themselves hold exposure to
sovereigns and guarantees, implicit or explicit, by the sovereign to the Group’s counterparties. A geographic and industrial analysis of the Group’s
loans and advances, including lending to European counterparties by type, is set out on pages 149 to 156.
Note
a ‘Cost’ refers to the fair value of the asset at recognition, less any impairment booked. ‘AFS reserve’ is the cumulative fair value gain or loss on the assets that is held in equity.
‘Total’ is the fair value of the assets at the balance sheet date.
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