Barclays 2005 Annual Report Download - page 62

Barclays PLC
Annual Report 2005
60
Geographical Analysis and Country Risk
Loans and advances to customers amounted to £272bn (2004: £207bn,
2003: £171bn).
In 2004 and 2005 the geographical analysis presented is based on the
location of customers. In 2003 the geographical analysis was based on
the location of the banking office.
(See also Table 5 on page 79.)
The loans and advances to customers booked through the Group’s
Absa operations in Africa were £29.6bn at 31st December 2005, 10.9%
of the Group total. They were comprised of £11.6bn of residential
mortgages (39.2%) and £18bn (60.8%) in other loans.
Barclays exposure limits to sub-investment grade countries are shown
in the chart below (largest 15 exposure limits).
0 200 400 600 800 1,000 1,200 1,400 1,600
Credit exposure limits to sub-investment grade countries £m
India
Egypt
Brazil
Colombia
Indonesia
Morocco
Tanzania
Algeria
Peru
Turkey
Seychelles
Philippines
Kenya
Ghana
Zambia
2003 2004(a) 2005
UK
Other European Union
United States
Rest of the World
Geographical analysis of loans and advances to customers %
100
80
60
40
20
0
Africa
UK GAAP IFRS
The country exposures shown are the sum of customer limits and
unused but available product limits. Both domestic and cross-border
exposures are included.
Loans and advances to borrowers in currencies other than the
currencies of the borrowers are shown in table 13 on page 84.
Risk Profile of Customer Loans and Advances
The chart below shows Barclays wholesale loan profile by existing risk
grade (See page 57 for a description of the rating system). The grade
classifications shown in the table is the Barclays Business Grade (BBG)
rather than the more recently introduced Default Grade (DG). BBG has
been used because the DG classification is not available, at this time,
across all parts of the wholesale portfolio. It is important to note that
Barclays prices loans for risk. Thus higher risk loans will usually have
higher interest rates or fees or both. A portfolio of higher risk loans
may therefore be as profitable as, or more profitable than, a portfolio
of lower risk loans.
0 5 10 2015 3025
Loans and advances, balances and limits to wholesale
customers by internal risk rating(b) %
Loan balances by internal
rating – % of Total
Loan limits by internal
rating – % of Total
1.2
1.5
1.8
3
5
7
6
8
2.5
2.1
2.8
4
Improving credit quality
0 5 10 2015 3025
Risk management
Loans and advances to customers
Notes
(a) Does not reflect the application of IAS 32, IAS 39 and IFRS 4 which became
effective from 1st January 2005. The 2004 analysis excludes reverse
repurchase agreements. Further explanation is provided on page 134.
(b) Excludes non-performing and potential problem loans.