Barclays 2007 Annual Report Download - page 122

Risk management
Statistical information
120 Barclays PLC Annual Report 2007
Table 17: Potential problem loans
IFRS UK GAAP
2007 2006 2005 2004a2003
At 31st December £m £m £m £m £m
United Kingdom 419 465 640 658 989
Other European Union 59 32 26 32 23
United States 964 21 12 27 259
Africa 355 240 248 67 53
Rest of the World –33143
Potential problem loans b1,797 761 929 798 1,327
Table 18: Interest foregone on credit risk loans
2007 2006 2005
£m £m £m
Interest income that would have been recognised under the original contractual terms
United Kingdom 340 357 304
Rest of the World 91 70 52
Total 431 427 356
Interest income of approximately £48m (2006: £72m, 2005: £29m) from such loans was included in profit, of which £26m (2006: £49m, 2005: £20m)
related to domestic lending and the remainder related to foreign lending.
In addition, a further £113m (2006: £98m, 2005: £76m) 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.
£93m (2006: £88m, 2005: £70m) of this related to domestic impaired loans and the remainder related to foreign impaired loans.
Table 19: Analysis of impairment/provision charges
IFRS UK GAAP
2007 2006 2005 2004a2003
At 31st December £m £m £m £m £m
Impairment charge/net specific provisions charge
United Kingdom 1,593 1,880 1,382 1,021 1,132
Other European Union 123 92 75 102 37
United States 374 12 76 57 84
Africa 214 143 37 27 21
Rest of the World 2(53) 4 103 46
Impairment on loans and advances 2,306 2,074 1,574 n/a n/a
Impairment on available for sale assets 13 86 4 n/a n/a
Impairment charge 2,319 2,160 1,578 n/a n/a
Total net specific provisions charge n/a n/a n/a 1,310 1,320
General provisions (release)/charge n/a n/a n/a (206) 27
Other credit provisions charge/(release) 476 (6) (7) (11) –
Impairment/provision charges 2,795 2,154 1,571 1,093 1,347
Notes
aDoes not reflect the application of IAS 32, IAS 39 and IFRS 4 which became effective
from 1st January 2005.
bIncludes £951m of ABS CDO Super Senior and SIV-lites exposures.