Barclays 2004 Annual Report Download - page 54

Risk management
Loans and advances
52
Loans and advances are the largest component of the Group’s credit
exposures and contain more than half of the credit risk as shown on
page 49. They increased over the year by £41bn (14%) to £332.9bn
at 31st December 2004 (2003: £291.8bn, 2002: £263.6bn).
Wholesale customers remain the largest customer category.
(See also Table 2 on page 72.)
The drawn balances shown above are before deduction of provisions
and interest in suspense. The information in the chart is based on the
business unit in which the loans are booked. Loans in those businesses
that deal primarily with personal customers, such as Barclaycard and
UK Retail Banking, are included in retail customers even though a
small percentage may be to business customers. Similarly, loans in
businesses that deal primarily with corporate, institutional and
sovereign clients are included in wholesale customers, even though
they may have some personal customers.
(See also Table 3 on page 72.)
The banking book comprises loans and advances that are intended to
be held to maturity or until repayment by the customer. In contrast
the loans and advances on the trading book are held for sale. Losses
that may arise in the trading book – including credit losses – are
absorbed in trading profits and are regarded as market risk, the
management of which is described later. The next part of the credit
section is thus devoted to exposures on the banking book, particularly
customer exposures. For details of exposures to banks refer to the
statistical information on page 73.
2002 2003 2004£bn
264
292
333
Banking book – customers
Banking book – banks
Trading book – customers
Trading book – banks
Loans and advances on the banking and trading books
350
300
250
200
150
100
50
0
Retail
customers
Wholesale
customers
Banks£bn
91 101 111 115
129
147
58 62
75
170
160
140
120
100
80
60
40
20
0
Loans and advances by type of customer
2004
2002
2003