Barclays 2010 Annual Report Download - page 119

Exposures to Selected Eurozone and Other Countries
The tables below show the Group’s exposures to selected countries (Spain, Italy, Portugal and Ireland), representing Eurozone countries that have a credit
rating of AA or below from Standard and Poor’s and where the Group has an exposure of over £0.5bn.
The Group’s exposure to Greece, which has a sovereign credit rating of BB+, was below £0.5bn. The Group’s balance sheet exposure to Egypt was
approximately £2bn, a significant proportion of which represented available for sale assets held in Treasury bills with a maturity less than one year.
In addition, contingent liabilities and commitments included less than £1bn relating to Barclays Africa trade finance business in Egypt.
The balances included in the tables below represent the Group’s exposure to retail customers and wholesale customers (comprising corporates and
sovereigns) in each of the respective countries.
Assets are stated gross of any trading liability positions and before any risk mitigation but net of impairment allowances and of derivative counterparty
netting and collateral held.
Retail exposures As at 31st December 2010 As at 30th June 2010
Loans and
advances at
amortised
cost
£m
Contingent
liabilities and
commitments
£m
Loans and
advances at
amortised
cost
£m
Contingent
liabilities and
commitments
£m
Spain 19,053 1,306 18,124 1,805
Italy 16,324 1,004 14,239 945
Portugal 5,813 1,384 4,978 1,162
Ireland 77 9 142 19
Retail exposures mainly related to our domestic lending in Spain, Italy and Portugal, principally residential mortgages. The credit quality of our mortgage
lending in Spain and Italy reflects low LTV lending, with average mark to market LTVs at 31st December 2010 in Spain of 58% and in Italy of 45%.
Credit risk loan balances in Spain and Italy increased by 22% to £832m and 15% to £553m, respectively.
Wholesale exposures Loans and advances at
amortised cost Assets held at fair value
Total
£m
Of which
Government
£m
Total
£m
Of which
Government
£m
Contingent
liabilities and
commitments
£m
As at 31st December 2010
Spain 6,574 86 8,625 6,665 2,550
Italy 3,180 – 9,258 7,382 2,622
Portugal 2,706 7 2,495 1,207 1,739
Ireland 3,069 – 3,320 452 1,422
As at 30th June 2010
Spain 7,167 133 8,731 6,403 3,182
Italy 3,159 – 10,466 8,606 1,546
Portugal 2,405 19 2,408 1,177 1,543
Ireland 3,324 – 3,160 328 1,482
Wholesale exposures relating to Barclays Capital and Barclays Corporate activities in Spain, Italy, Portugal and Ireland cover a broad range of SME,
corporate and investment banking activities, as well as Western Europe treasury operations’ holdings of sovereign and corporate bonds in those
countries. Loans and advances include exposures at 31st December 2010 to the property and construction industry in Spain of £2,951m, in Portugal
of £937m, in Ireland of £195m and in Italy of £71m.
Assets held at fair value primarily comprise trading portfolio assets, which are highly liquid in nature, available for sale positions in investment grade debt
securities, and derivatives.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 117
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