Barclays 2014 Annual Report Download - page 163

barclays.com/annualreport Barclays PLC Annual Report 2014 I 161
Exposure to UK commercial real estate (CRE)
The UK CRE portfolio includes property investment, development, trading and house builders but excludes social housing and contractors.
UK CRE summary
Retail Wholesale Total
2014 2013 2014 2013 2014 2013
As at 31 December
UK CRE loans and advances (£m) 1,756 1,593 9,925 9,842 11,681 11,435
Past due balances (£m) 94 103 299 361 393 464
Balances past due as % of UK CRE balances 5.4% 6.5% 3.0% 3.7% 3.4% 4.1%
Impairment allowances (£m) 13 16 87 110 100 126
Past due coverage ratio 13.6% 15.7% 29.3% 30.5% 25.7% 27.2%
Total collateral (£m)a 4,874 3,792 20,331 17,905 25,205 21,697
Twelve months ended 31 December
Impairment charge (£m) 1 18 22 62 23 80
Maturity analysis of exposure to UK CRE
Contractual maturity of UK CRE loans and advances at amortised cost
As at 31 December
Past due
balances
£m
Not more
than
six months
£m
Over
six months
but not
more than
one year
£m
Over
one year
but not
more than
two years
£m
Over
two years
but not
more than
five years
£m
Over
five years
but not
more than
ten years
£m
Over
ten years
£m
Total loans
& advances
£m
2014
Retail portfolios 94 86 59 80 222 285 930 1,756
Wholesale portfolios 299 752 780 1,207 3,939 1,654 1,294 9,925
Total 393 838 839 1,287 4,161 1,939 2,224 11,681
2013
Retail portfolios 103 69 37 45 163 276 900 1,593
Wholesale portfolios 361 592 931 1,342 4,128 1,115 1,373 9,842
Total 464 661 968 1,387 4,291 1,391 2,273 11,435
While overall exposures to UK CRE remained broadly stable at £11.7bn (2013: £11.4bn), total collateral increased by 16% to £25.2bn.
Retail portfolios
Q During 2014, gross loans and advances increased 10% to £1.8bn;
Q Past due balances reduced to 5.4% (2013: 6.5%) due to continued focus by a dedicated team with early engagement of distressed customers
reducing new flows into delinquency; and
Q The balance weighted LTV reduced to 51.2 % (2013: 54.9%) driven by commercial property price appreciation.
Wholesale portfolios
Q Total loans and advances at amortised cost remained broadly stable at £9.9bn (2013: £9.8bn) with growth limited to high quality assets; and
Q The Wholesale businesses operate to specific lending criteria and the portfolio of assets is continually monitored through a range of mandate
and scale limits.
Note
a Based on the most recent valuation assessment.
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