Barclays 2010 Annual Report Download - page 102

Risk management
Credit risk management continued
(ii) Analysis of Barclays Corporate Wholesale Loans and Advances at Amortised Cost
Barclays Corporate wholesale loans and advances net of impairment decreased 7% to £64,975m (2009: £69,921m). This was driven primarily by
a reduction in borrowings across all three of the business’ main segments, alongside an increase in impairment allowances in Spain.
The UK & Ireland portfolios declined 6% to £52,659m (2009: £56,215m), primarily due to lower overdraft balances and asset based loans, reflecting
depressed demand as UK businesses de-leverage. The Continental Europe portfolios declined 11% to £10,162m (2009: £11,453m) driven by increased
impairment allowances in Spain, as well as lower revolving credit lines, term lending and mortgage loans.
(i) Analysis of Barclays Capital Wholesale Loans and Advances at Amortised Cost
Barclays Capital wholesale loans and advances net of impairment decreased 8% to £149,675m (2009: £162,599m). This was driven by a reduction in
corporate lending which declined 18% to £41,093m (2009: £49,849m) primarily due to a reduction in borrowings by customers partially offset by the
net depreciation in the value of Sterling relative to other currencies.
Included within corporate lending and other wholesale lending portfolios are £3,787m (2009: £5,646m) of loans backed by retail mortgage collateral
classified within financial institutions.
Barclays Capital wholesale loans and advances at amortised cost
Gross
loans and
advances
£m
Impairment
allowance
£m
Loans and
advances
net of
impairment
£m
Credit risk
loansa
£m
CRLs %
of gross
loans and
advancesa
%
Impairment
charges
£m
Loan loss
rates
bps
As at 31st December 2010
Loans and advances to banks
Cash collateral and settlement balances 14,058 – 14,058 – 0.0% – –
Interbank lending 21,547 48 21,499 35 0.2% (18) (8)
Loans and advances to customers
Government lending 2,940 – 2,940 – 0.0% – –
ABS CDO Super Senior 3,537 1,545 1,992 3,537 100.0% (137) (387)
Corporate lending 41,891 798 41,093 1,483 3.5% 285 68
Other wholesale lending 26,310 645 25,665 315 1.2% 512 195
Cash collateral and settlement balances 42,428 – 42,428 – 0.0% – –
Total 152,711 3,036 149,675 5,370 3.5% 642 42
As at 31st December 2009
Loans and advances to banks
Cash collateral and settlement balances 15,893 – 15,893 – 0.0% – –
Interbank lending 21,722 61 21,661 57 0.3% 14 6
Loans and advances to customers
Government lending 3,456 – 3,456 – 0.0% – –
ABS CDO Super Senior 3,541 1,610 1,931 3,541 100.0% 714 2,016
Corporate lending 50,886 1,037 49,849 2,198 4.3% 1,115 219
Other wholesale lending 30,347 317 30,030 615 2.0% 55 18
Cash collateral and settlement balances 39,779 – 39,779 – 0.0% – –
Total 165,624 3,025 162,599 6,411 3.9% 1,898 115
Barclays Corporate wholesale loans and advances at amortised cost
Gross
loans and
advances
£m
Impairment
allowance
£m
Loans and
advances
net of
impairment
£m
Credit risk
loans
£m
CRLs %
of gross
loans and
advances
%
Impairment
charges
£m
Loan loss
rates
bps
As at 31st December 2010
UK & Ireland 53,308 649 52,659 1,699 3.2% 503 94
Continental Europe 11,385 1,223 10,162 2,739 24.1% 884 776
New Markets 2,268 114 2,154 153 6.7% 49 216
Total 66,961 1,986 64,975 4,591 6.9% 1,436 214
As at 31st December 2009
UK & Ireland 56,838 623 56,215 1,588 2.8% 864 152
Continental Europe 11,912 459 11,453 1,396 11.7% 309 259
New Markets 2,375 122 2,253 164 6.9% 125 526
Total 71,125 1,204 69,921 3,148 4.4% 1,298 182
Note
a Barclays Capital credit risk loans exclude the Protium loan. Other wholesale lending CRLs
and CRLs % of Gross L&A including the loan to Protium were £7,875m and 29.9% respectively.
100 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10