Barclays 2014 Annual Report Download - page 169

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Analysis of loans on concession programmes
Re-age activity
Re-age is applicable only to revolving products where a minimum due payment is required. Re-age refers to returning of a delinquent account to
up-to-date status without collecting the full arrears (principal, interest and fees).
The following are the principal portfolios in which re-age activity occurs.
Principal portfolios – core portfolios
As at 31 December
New re-ages in the year
New re-ages as proportion
of total outstanding
30 day arrears at
12 months since re-agea
2014
£m
2013
£m
2014
%
2013
%
2014
%
2013
%
UK cards 163 209 1.0 1.3 43.4 48.4
US cardsb 31 51 0.2 0.5 46.8 48.8
The proportion of new re-ages as a percentage of total outstandings decreased in UK cards to 1.0% (2013: 1.3%) and US cards to 0.2%
(2013: 0.5%) due to policy changes implemented in Q413, which reduced the volume of accounts qualifying for re-age.
Re-age activity in South Africa and Europe card portfolios are not considered to be material. For further detail on policy relating to the re-aging of
loans, please refer to page 120 of the Barclays PLC 2014 Pillar 3 report.
Forbearance
Balances on forbearance programmes reduced 23% to £6.4bn driven primarily by (i) fewer customers requiring forbearance as macroeconomic
conditions improved; and (ii) the ongoing impact of enhanced qualification criteria. The decrease in impairment coverage to 16.8% (2013: 17.6%)
was due to a reduction in the coverage on the wholesale portfolios partially offset by an increase to retail portfolios.
Analysis of forbearance programmes
Balances Impairment allowance Impairment coverage
As at 31 December 2014
£m
2013
£m
2014
£m
2013
£m
2014
%
2013
%
Personal & Corporate Banking 2,251 2,814 76 90 3.4 3.2
Africa Banking 299 338 45 50 15.1 14.8
Barclaycard 972 1,064 394 358 40.5 33.6
Barclays Core 3,522 4,216 515 498 14.6 11.8
Barclays Non-Core 419 786 49 83 11.7 10.6
Total retail 3,941 5,002 564 581 14.3 11.6
Investment Bank 106 476 10 8 9.4 1.7
Personal & Corporate Banking 1,590 1,540 225 255 14.2 16.6
Africa Banking 132 159 7 14 5.3 8.8
Barclays Core 1,828 2,175 242 277 13.2 12.8
Barclays Non-Core 651 1,210 271 614 41.6 50.7
Total wholesale 2,479 3,385 513 891 20.7 26.3
Group total 6,420 8,387 1,077 1,472 16.8 17.6
Retail balances on forbearance reduced by 21% to £3.9bn primarily due to PCB as UK home loans decreased.
Wholesale forbearance reduced by 27% to £2.5bn primarily driven by the exit of a single Investment Bank counterparty from the forbearance
portfolio and further reductions across the BNC portfolios. The reduction in impairment coverage to 20.7% (2013: 26.3%) was primarily due to the
exit of higher coverage Non-Core cases in Spain. The reduction in 2014 to balances on forbearance in BNC principally reflects the fact that Spain
assets were reclassified as held for sale during the year.
See below for more information on these portfolios.
Notes
a Re-ages data for 2013 revised to include customers who move to charge-off or into forbearance programmes within 12 months of the re-age offering.
b New re-ages in the year and new re-ages as a proportion of total outstanding were revised to harmonise definitions to the Group policy.
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