Barclays 2008 Annual Report Download - page 94

Table 5: Analysis of Barclays Commercial Bank loans and advances
Loans and advances to banks at amortised cost
Total
£m
Financial institutions and services 867
Total 867
Loans and advances to customers at amortised cost
Total
£m
Business and other services 16,611
Construction 3,974
Energy and water 1,112
Financial institutions and services 6,427
Finance Lease receivables 6,644
Manufacturing 8,378
Postal and communications 1,303
Property 8,985
Transport 2,014
Wholesale and retail distribution and leisure 11,426
Government 659
Total 67,533
Loans and advances held at fair value
Total
£m
Business and other services 535
Construction 39
Financial institutions and services 32
Property 7,366
Government 4,994
Total 12,966
92 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Risk management
Credit risk management
Loans and advances
Analysis of Barclays Commercial Bank loans and advances
The tables below analyse the industry split of Barclays Commercial Bank
loans and advances after impairment allowance of £504m. The loan book
consists of both loans and advances held at amortised cost and loans and
advances held at fair value.
Loans and advances held at fair value were £12,966m as at
31st December 2008. Of these, £12,360m related to government, local
authority and social housing. Fair value exceeds amortised cost by
£3,018m. Fair value is calculated using a valuation model with reference
to observable market inputs and is matched by offsetting fair value
movements on hedging instruments. The underlying nominal portfolio
increased 47% in 2008.
Property balances within loans and advances at amortised cost and
held at fair value totalled £16,351m, of which £8,795m related to social
housing.
The weighted average of the drawn balance loss given default, for all
of the above loans and advances, was 31%.