Barclays 2008 Annual Report Download - page 149

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Business review
Barclays PLC Annual Report 2008 147
Table 30: Total impairment allowance/(provision) coverage of credit risk loans
2008 2007 2006 2005 2004a
%%%% %
United Kingdom 50.7 56.6 64.2 64.6 68.1
Other European Union 41.8 60.9 65.1 70.1 60.9
United States 31.8 9.5 64.9 52.8 57.0
Africa 39.5 62.1 73.2 74.3 68.4
Rest of the World 49.2 86.5 100.0 68.7 71.9
Total coverage of credit risk loans 41.9 39.1 65.6 66.2 66.9
Total coverage of credit risk loans excluding ABS CDO Super Senior exposure 48.0 55.3 65.6 66.2 66.9
Table 31: Total impairment allowance/(provision) coverage of potential credit risk lending (CRLs and PPLs)
2008 2007 2006 2005 2004a
%%%% %
United Kingdom 44.0 51.8 57.3 54.6 56.5
Other European Union 29.5 55.1 61.0 65.9 55.6
United States 29.2 7.6 57.1 50.4 52.3
Africa 37.1 43.4 51.5 57.8 43.5
Rest of the World 45.5 86.5 91.0 67.6 65.9
Total coverage of potential credit risk lending 36.2 33.0 57.0 56.2 56.0
Total coverage of potential credit risk lenders excluding ABS CDO
Super Senior exposure 39.6 47.7 57.0 56.2 56.0
Allowance coverage of credit risk loans and potential credit risk loans excluding the drawn ABSCDO Super Senior exposure decreased to 48.0%
(31st December 2007: 55.3%) and 39.6% (31st December 2007: 47.7%), respectively. The decrease in these ratios reflected a change in the mix of
credit risk loans and potential credit risk loans: unsecured retail exposures, where the recovery outlook is relatively low, decreased as a proportion of the
total as the collections and underwriting processes were improved. Secured retail and wholesale and corporate exposures, where the recovery outlook is
relatively high, increased as a proportion of credit risk loans and potential credit risk loans.
Note
aDoes not reflect the application of IAS32, IAS39 and IFRS 4 which became effective
from 1st January 2005.