Barclays 2014 Annual Report Download - page 170

168 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Credit risk
Risk review
Retail forbearance programmes
Forbearance on the Group’s principal retail portfolios in the US, UK, Eurozone and South Africa is presented below. The principal portfolios listed
below account for 83% (2013: 82%) of total retail forbearance balances.
Analysis of key portfolios in forbearance programmes
Balances on forbearance programmes Marked
to market
LTV of
forbearance
balances:
balance
weighted
%
Marked
to market
LTV of
forbearance
balances:
valuation
weighted
%
Impairment
allowances
marked
against
balances on
forbearance
programmes
£m
Total
balances on
forbearance
programmes
coverage
ratio
%
Of which:
Past due of which:
Total
£m
% of gross
loans and
advances
%
Up-to-date
£m
1-90 days
past due
£m
91 or more
days past
due
£m
As at 31 December 2014
Home loans:
PCB – UK 1,842 1.5 1,487 204 151 57.3 45.6 15 0.8
Africa – South Africa 207 1.8 95 99 13 71.1 57.4 13 6.5
Barclays Non-Core – Italy 279 2.0 211 31 37 61.6 50.3 11 3.9
Credit cards:
UK 724 4.3 679 41 4 n/a n/a 324 44.8
US 98 0.7 67 22 9 n/a n/a 22 22.1
Unsecured loans:
UK 121 2.4 83 33 5 n/a n/a 25 20.9
As at 31 December 2013
Home loans:
PCB – UK 2,364 1.9 1,867 313 184 63.4 51.6 23 1.0
Africa – South Africa 248 2.1 117 115 16 74.4 60.5 17 6.9
Barclays Non-Core – Italy 307 2.0 248 31 28 62.2 50.9 10 3.2
Credit cards:
UK 912 5.6 861 44 7 n/a n/a 333 36.5
US 106 1.1 73 24 9 n/a n/a 10 9.8
Unsecured loans:
UK 142 2.9 94 40 8 n/a n/a 34 23.7
Loans in forbearance in the principal home loans portfolios decreased 20% to £2,328m.
Q PCB – UK (home loans): Balances under forbearance decreased 22% to £1,842m, principally due to a reduction in the proportion of accounts
meeting the MCA reserve forbearance classification criteria. This type of forbearance comprises 68% (2013: 70%) of the total, with term
extensions comprising a further 17% (2013: 17%). Total past due balances reduced 29% to £355m due to the improved economic environment.
Q Africa – South Africa (home loans): Reduction in forbearance balances to £207m (2013: £248m) is due to enhanced qualification criteria which
resulted in a more appropriate and sustainable programme for the customer, and local currency depreciation.
Q Barclays Non-Core – Italy (home loans): Forbearance balances decreased 9% to £279m, predominantly due to customers exiting forbearance
schemes that were established by the government. Impairment coverage increased to 3.9% (2013: 3.2%), reflecting a higher proportion of
accounts on forbearance that are more than 90 days past due.
Forbearance balances on principal credit cards, overdrafts and unsecured loan portfolios decreased by 19% to £943m.
Q UK Cards: Forbearance balances decreased by 21% to £724m, driven by the continued reduction in new repayment plan volumes caused by the
implementation of enhanced qualification criteria in 2012.
Q US Cards: Coverage ratio for US Cards is lower than UK Cards as almost 60% of forbearance programmes are fully amortising, and have lower
levels of loss and impairment compared to other types of programmes.