Barclays 2005 Annual Report Download - page 89

Table 18: Potential problem loans
IFRS UK GAAP
2005 2004(a) 2003 2002 2001
£m £m £m £m £m
United Kingdom 640 658 989 852 872
Other European Union 26 32 23 – 2
United States 12 27 259 241 369
Africa 248 67 53 63 37
Rest of the World 314 3 6 26
Potential problem loans 929 798 1,327 1,162 1,306
(Also see chart on page 63.)
The value of potential problem loans at 31st December 2004 was restated resulting in an increase of £42m of total potential problem loans in the
UK at 31st December 2004. The restatement does not reflect changes in credit quality but arises from the application of a revised methodology to
the mortgage business. The restatement has not been applied to prior periods.
Table 19: Interest foregone on non-performing loans
2005 2004(a)
£m £m
Interest income that would have been recognised under the original contractual terms
United Kingdom 304 266
Rest of the World 52 52
Total 356 318
Interest income of approximately £29m (2004: £59m) from such loans was included in profit, of which £20m (2004: £54m) related to domestic
lending and the remainder related to foreign lending.
In addition, a further £76m (2004: n/a) was recognised arising from impaired loans. Following impairment, interest income is recognised using the
original effective rate of interest which was used to discount the expected future cash flows for the purpose of measuring the impairment loss.
£70m (2004: n/a) of this related to domestic impaired loans and the remainder related to foreign impaired loans.
Note
(a) Does not reflect the application of IAS 32, IAS 39 and IFRS 4 which became effective from 1st January 2005. Further explanation is provided on page 134.
Barclays PLC
Annual Report 2005 87
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