Barclays 2008 Annual Report Download - page 275

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Financial statements
Barclays PLC Annual Report 2008 273
47 Credit risk (continued)
Loans and advances that are past due but not individually impaired
An age analysis of loans and advances that are past due but not individually impaired is set out below.
For the purposes of this analysis an asset is considered past due and included below when any payment due under strict contractual terms is received late
or missed. The amount included is the entire financial asset, not just the payment, of principal or interest or both, overdue.
The table below provides a breakdown of total financial assets past due but not individually impaired. In general, retail and wholesale loans fall into this category for two
separate reasons. Retail loans and advances to customers may come under this category because the impairment allowance on such loans is calculated on a collective
– not individual – basis. This reflects the homogenous nature of the assets, which allows statistical techniques to be used, rather than individual assessment.
In contrast, some loans to wholesale and corporate customers and banks may come under this category because of instances where a payment on a loan
is past due without requiring an individual impairment allowance. For example, an individual impairment allowance will not be required when a loss is not
expected due to a corporate loan being fully secured or collateralised. As a result, it is past due but not individually impaired.
2008
Past due Past due Past due Past due Past due Of which
up to 1 1-2 2-3 3-6 6 months Credit
month months months months and over Total Risk Loans
£m £m £m £m £m £m £m
Financial assets designated at fair value held on own account:
Loans and advances 315 147 81 82 250 875 –
Loans and advances to banks 1,044 1–––1,045 –
Loans and advances to customers:
Residential mortgage loans 4,420 1,568 630 713 82 7,413 795
Credit card receivables 293 224 150 291 468 1,426 759
Other personal lending 220 204 273 338 307 1,342 645
Wholesale and corporate loans and advances 6,229 540 847 477 214 8,307 691
Finance lease receivables 130 53 39 63 – 285 63
Total loans and advances to customers 11,292 2,589 1,939 1,882 1,071 18,773 2,953
Total financial assets past due but not individually impaired 12,651 2,737 2,020 1,964 1,321 20,693 2,953
2007
Past due Past due Past due Past due Past due Of which
up to 1 1-2 2-3 3-6 6 months Credit
month months months months and over Total Risk Loans
£m £m £m £m £m £m £m
Financial assets designated at fair value held on own account:
Loans and advances 261 4124 67 357 –
Loans and advances to banks 2,031 305 186 ––2,522 –
Loans and advances to customers:
Residential mortgage loans 3,609 1,349 456 215 184 5,813 399
Credit card receivables 558 155 107 205 1 1,026 51
Other personal lending 271 199 193 152 205 1,020 181
Wholesale and corporate loans and advances 6,970 622 267 62 66 7,987 128
Finance lease receivables 75 28 18 38 – 159 38
Total loans and advances to customers 11,483 2,353 1,041 672 456 16,005 797
Total financial assets past due but not individually impaired 13,775 2,662 1,228 696 523 18,884 797
Loans and advances individually assessed as impaired
An analysis of financial assets individually assessed as impaired is as follows:
2008 2007
Original Revised Original Revised
carrying Impairment carrying carrying Impairment carrying
amount allowance amount amount allowance amount
£m £m £m £m £m £m
Loans and advances to banks individually impaired 48 (44) 4 –––
Loans and advances to customers:
Residential mortgage loans 1,608 (227)1,381 615 (88) 527
Credit card receivables 1,231 (727) 504 1,517 (725) 792
Other personal lending 2,040 (1,250) 790 1,641 (1,030) 611
Wholesale and corporate loans and advances 7,586 (2,310)5,276 4,930 (944) 3,986
Finance lease receivables 234 (140) 94 141 (102) 39
Total loans and advances individually impaired 12,747 (4,698) 8,049 8,844 (2,889) 5,955
Collective impairment allowance (1,876) (883)
Total impairment allowance (6,574) (3,772)