Barclays 2009 Annual Report Download - page 107

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 105
– GRCB – Western Europe, reflecting the economic deterioration in Spain
which has impacted the commercial, construction and SME portfolios in
particular, together with the appreciation of the average value of the Euro
against Sterling; and
– GRCB – Emerging Markets as credit conditions continued to deteriorate
resulting in a small number of higher value single name charges and the
appreciation of the average value of a number of currencies against
Sterling.
Impairment in Barclays Capital of £1,898m (2008: £1,936m) was broadly
in line with 2008, as a fall in the impairment charge against credit market
exposures was partially offset by a rise in the impairment charge against
non-credit market exposures.
The loan loss rate across the Group’s wholesale portfolios for 2009
was 133bps (2008: 82bps), reflecting the rise in impairment and the 18%
reduction in wholesale loans and advances.
As we enter 2010, the principal uncertainties relating to the
performance of the wholesale portfolios are:
– the extent and sustainability of economic recovery and asset prices in the
UK, US, Spain and South Africa as governments consider how and when
to withdraw stimulus packages;
– the potential for single name risk and for idiosyncratic losses in different
sectors and geographies where credit positions are sensitive to economic
downturn;
– possible additional deterioration in our remaining credit market exposures,
including commercial real estate and leveraged finance; and
– the potential impact of deteriorating sovereign credit quality.
Analysis of Barclays capital wholesale loans and advances at amortised cost
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
£m £m £m £m % £m
basis points
Loans and advances to banks
As at 31.12.09
Cash collateral and settlement balances 15,893 – 15,893 – – – –
Interbank lending 21,722 61 21,661 57 0.3 14 6
Loans and advances to customers
Corporate and Government lending 54,342 1,037 53,305 2,198 4.0 1,115 205
ABS CDO Super Senior 3,541 1,610 1,931 3,541 100.0 714 2,016
Other wholesale lending 30,347 317 30,030 615 2.0 55 18
Cash collateral and settlement balances 39,779 – 39,779 – – – –
Total 165,624 3,025 162,599 6,411 3.9 1,898 115
As at 31.12.08
Cash collateral and settlement balances 19,264 – 19,264 – – – –
Interbank lending 24,086 51 24,035 48 0.2 40 17
Loans and advances to customers
Corporate and Government lending 77,042 486 76,556 1,100 1.4 305 40
ABS CDO Super Senior 4,117 1,013 3,104 4,117 100.0 1,383 3,359
Other wholesale lending 23,933 246 23,687 478 2.0 208 87
Cash collateral and settlement balances 60,154 – 60,154 – – – –
Total 208,596 1,796 206,800 5,743 2.8 1,936 93