Barclays 2009 Annual Report Download - page 142

140 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Risk management
Statistical information
continued
Table 15: Potential problem loans
2009 2008 2007 2006 2005
At 31st December £m £m £m £m £m
United Kingdom 858 883 419 465 640
Other European Union 790 963 59 32 26
United States 553 431 964 21 12
Africa 488 140 355 240 248
Rest of the World 679 39 – 3 3
Potential problem loans 3,368 2,456 1,797 761 929
Table 16: Interest foregone on credit risk loans 2009 2008 2007
£m £m £m
Interest income that would have been recognised under the original contractual terms
United Kingdom 392 244 340
Rest of the World 736 235 91
Total 1,128 479 431
Interest income of approximately £413m (2008: £195m, 2007: £48m) from such loans was included in profit, of which £137m (2008: £72m, 2007: £26m)
related to domestic lending and the remainder related to foreign lending.
In addition, a further £185m (2008: £135m, 2007: £113m) was recognised arising from impaired loans. Following impairment, interest income is
recognised using the original effective rate of interest which was used to discount the expected future cash flows for the purpose of measuring the
impairment loss. £52m (2008: £42m, 2007: £93m) of this related to domestic impaired loans and the remainder related to foreign impaired loans.
Table 17: Analysis of impairment/provision charges
2009 2008 2007 2006 2005
At 31st December £m £m £m £m £m
Impairment charge/net specific provisions charge
United Kingdom 2,744 1,817 1,593 1,880 1,382
Other European Union 1,408 587 123 92 75
United States 1,525 1,519 374 12 76
Africa 814 454 214 143 37
Rest of the World 839 207 2 (53) 4
Impairment on loans and advances 7,330 4,584 2,306 2,074 1,574
Impairment on available for sale assets 670 382 13 86 4
Impairment on reverse repurchase agreements 43 124 – – –
Impairment charge 8,043 5,090 2,319 2,160 1,578
Other credit provisions charge/(release) 28 329 476 (6) (7)
Impairment/provision charges 8,071 5,419 2,795 2,154 1,571
Table 18: Impairment/provisions charges ratios (‘Loan loss ratios’) 2009 2008 2007 2006 2005
%%%% %
Impairment/provisions charges as a percentage of average loans and advances
for the year:
Impairment charge 1.64 1.01 0.64 0.66 0.58
Total 1.64 1.01 0.64 0.66 0.58
Amounts written off (net of recoveries) 0.72 0.61 0.49 0.61 0.50