Barclays 2004 Annual Report Download - page 60

Risk management
Provisions for bad and doubtful debts
58
The chart below shows provisions charges over the last ten years. The
charge has fallen from its peak in 2002 even though the loan book has
grown substantially.
Provisions charges over ten years
(See also Table 20 on page 80 and Table 21 on page 80.)
(See also Table 20 on page 80.)
During 2004, £198m was transferred from the general provisions stock
to specific provisions stock. These transfers are included in the release
of general provisions and increase the new and increased specific
provisions. The transfers reflect enhancements to provisioning models
and the resolution of an individual large corporate exposure. The
transfers had no effect on the net provisions charge.
2003 20042002
£m
1,719
-233
1,484
-2
1,628
-308
1,347
27
1,767
-466
1,091
-210
Total provisions charge
Specific provisions – Release and recoveries
Specific provisions – New and increased
General provision – Charge/(release)
Provisions charge analysis
2,000
1,500
1,000
500
0
-500
-1,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004%
0.41
0.23 0.23
0.49 0.58 0.67 0.73
0.85
0.73
0.54
1.00
0.80
0.60
0.40
0.20
0
Provisions charge as a percentage of loans on the banking book
Average
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004£m
396
215 227
492 621
817
1,149
1,484
1,347
1,091
1,500
1,200
900
600
300
0
Provisions charges against profit