Barclays 2008 Annual Report Download - page 96

Risk management
Credit risk management
Loans and advances
94 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Retail loans and advances
Gross Loans and Advances to retail customers grew 24% to £201,588m
(31st December 2007: £162,081m). The principal drivers were GRCB –
Western Europe, UK Retail Banking, and Barclaycard. The GRCB – Western
Europe retail portfolio grew by £14,436m (59%) to £38,918m, largely
driven by home loans in Spain and Italy, and the appreciation of the Euro
against Sterling. The UK Retail Banking portfolio increased by £12,319m
(15%) to £96,083m, primarily driven by UK home loans. The Barclaycard
Retail portfolios grew by £8,866m (43%) to £29,390m, with growth across
the US, UK and Barclaycard’s other European card portfolios.
Table 7:Retail loans and advances net of impairment allowances
Gross Loans and CRLs%of
loans and Impairment advances net Credit risk gross loans Impairment Loan loss
advances allowance of impairment loans and advances charge rates
Asat 31st December 2008 £m £m £m £m %£m basis points
UK Retail Banking 96,083 1,134 94,949 2,403 2.50 602 63
Barclaycard 29,390 1,677 27,713 2,566 8.70 1,086 370
GRCB – Western Europe 38,918 302 38,616 794 2.00 171 44
GRCB – Emerging Markets 4,083 191 3,892 179 4.40 130 318
GRCB – Absa 24,677 411 24,266 1,518 6.20 328 133
Barclays Wealth 8,437 24 8,413 48 0.60 16 19
Total 201,588 3,739 197,849 7,508 3.70 2,333 116
Asat 31st December 2007
UK Retail Banking 83,764 1,005 82,759 2,063 2.50 559 67
Barclaycard 20,524 1,093 19,431 1,601 7.80 818 399
GRCB – Western Europe 24,482 81 24,401 250 1.00 57 23
GRCB – Emerging Markets 1,881 44 1,837 67 3.60 29 154
GRCB – Absa 24,994 235 24,759 499 2.00 135 54
Barclays Wealth 6,436 2 6,434 4 0.10 7 11
Total 162,081 2,460 159,621 4,484 2.80 1,605 99
Table 8: Analysis of retail loans and advances net of impairment allowances
Home loans Cards and unsecured loans Other retail Total retail
2008 2007 2008 2007 2008 2007 2008 2007
£m£m £m £m £m £m £m £m
UK Retail Banking 82,303 69,805 8,294 8,297 4,352 4,657 94,949 82,759
Barclaycard ––23,224 14,930 4,489 4,501 27,713 19,431
GRCB – Western Europe 33,760 21,393 4,395 2,660 461 348 38,616 24,401
GRCB – Emerging Markets 603 285 2,900 1,369 389 183 3,892 1,837
GRCB – Absa 18,411 15,136 43 –5,812 9,623 24,266 24,759
Barclays Wealth ––––8,413 6,434 8,413 6,434
Total 135,077 106,619 38,856 27,256 23,916 25,746 197,849 159,621
Total home loans to retail customers grew by 27% to £135,077m,
driven by the 58% rise in GRCB – Western Europe, reflecting currency
movements and book growth. The UK home finance portfolios within UK
Retail Banking grew 18% to £82,303m (31st December 2007: £69,805m).
Unsecured retail credit (credit card and unsecured loans) portfolios
grew 43% to £38,856m (31st December 2007: £27,256m), principally as
a result of growth in Barclaycard US and GRCB – Western Europe as well as
the acquisition of Goldfish in the UK.