Barclays 2004 Annual Report Download - page 152

Notes to the accounts
For the year ended 31st December 2004
14 Loans and advances to customers (continued)
Barclays is not obliged and does not intend to support any losses beyond the recourse to the mortgage loan assets underlying each issue.
Barclays is not obliged to support any losses that may be suffered by the FRN holders and does not intend to provide such support.
In 2004 Barclays recognised net income of £40m (2003: £nil) from the whole loan securitisations business.
Gross assets presentation
In 2002, 2003 and 2004, a proportion of the Barclaycard personal credit and charge card receivables portfolio in the UK was securitised.
The noteholders in this securitisation have a proportionate interest in each balance in the portfolio and at 31st December 2004 the value of this
interest was £3,318m (2003: £2,508m). At 31st December 2004, the Group’s net exposure to this securitisation, after taking into account the
limited recourse financing, was £40m (2003: £nil). The total portfolio is included within gross loans and advances and the funding giving rise
to the noteholders interest is included within Debt securities in issue (Note 25).
Loans and advances also include £80m of securitised assets within the banking business as at 31st December 2004 which are reported under
gross asset presentation. As at 31st December 2003, the gross balances outstanding on these totalled £81m.
In addition to securitised loans and advances, the Group has securitised a portfolio of investment debt securities which are also disclosed on
a gross asset presentation basis, as discussed in Note 16, and a securitised portion of life fund disclosed net in Note 22.
15 Provision balances for bad and doubtful debts
2004 2003 2002
Movements in provision
balances for bad and Specific General Total Specific General Total Specific General Total
doubtful debts £m £m £m £m £m £m £m £m £m
Balance at beginning of year 2,233 795 3,028 2,261 737 2,998 1,971 745 2,716
Acquisitions and disposals 38 (17) 21 27 35 62 (25) 14 (11)
Exchange and other adjustments (30) (4) (34) (14) (4) (18) (57) (20) (77)
2,241 774 3,015 2,274 768 3,042 1,889 739 2,628
Charge for the year 1,301 (210) 1,091 1,320 27 1,347 1,486 (2) 1,484
Amounts written off, net
of recoveries of £255m
(2003: £113m, 2002: £106m) (1,340) – (1,340) (1,361) – (1,361) (1,114) – (1,114)
Balance at end of year 2,202 564 2,766 2,233 795 3,028 2,261 737 2,998
2004 2003
Provision balances at 31st December £m £m
Specific provision balances
United Kingdom 1,860 1,856
Other European Union 104 97
United States 128 121
Rest of the World 110 159
2,202 2,233
General provision balances 564 795
2,766 3,028
2004 2003
Non-performing advances £m £m
Loans and advances on which interest is in suspense or is not being applied 2,607 2,890
Specific provision balance (1,563) (1,527)
1,044 1,363
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