Barclays 2010 Annual Report Download - page 97

Loans and Advances to Customers and Banks
Total gross loans and advances to customers and banks increased 1%
to £502,695m (2009: £498,064m). Loans and advances at amortised
cost were £478,173m (2009: £472,155m) and loans and advances at
fair value were £24,522m (2009: £25,909m).
Loans and Advances at Amortised Cost
Gross loans and advances to customers and banks at amortised cost
increased 1% (£6,018m) to £478,173m (2009: £472,155m) with a 10%
rise in the retail portfolios offset by a 6% fall in wholesale. Included in this
balance are settlement balances of £27,112m (2009: £25,825m) and
cash collateral balances of £29,374m (2009: £29,847m). The principal
drivers for this increase were:
– UK Retail Banking where loans and advances increased 12% to £117,689m
(2009: £105,066m), due to increased lending in Home Finance and the
acquisition of Standard Life Bank at the beginning of 2010;
– Western Europe Retail Banking where loans and advances increased
6% to £44,500m, which primarily reflected growth in Italian mortgages
partially offset by the depreciation in the value of the Euro against Sterling;
– Absa where loans and advances increased 14% to £42,725m
(2009: £37,365m), reflecting appreciation in the value of the Rand
against Sterling; and
– Barclays Wealth where loans and advances increased 22% to £16,468m
(2009: £13,467m) primarily due to growth in High Net Worth lending.
These increases were partially offset by decreases in:
– Barclays Capital where loans and advances decreased 8% to £152,711m
(2009: £165,624m) due to a reduction in borrowings partially offset by a
net depreciation in the value of Sterling relative to other currencies; and
– Barclays Corporate where loans and advances decreased by 6% to
£68,632m (2009: £73,007m), principally due to lower customer demand
in the UK & Ireland business.
Analysis of loans and advancesa
Gross
loans and
advances
£m
Impairment
allowance
£m
Loans and
advances
net of
impairment
£m
Credit risk
loans
a
£m
CRLs %
of gross
loans and
advances
a
%
Impairment
charges
£m
Loan loss
rates
bps
As at 31st December 2010
Wholesale – customers 204,991 5,501 199,490 11,716 5.7% 2,347 114
Wholesale – banks 37,847 48 37,799 35 0.1% (18) (5)
Total wholesale 242,838 5,549 237,289 11,751 4.8% 2,329 96
Retail – customers 235,335 6,883 228,452 12,571 5.3% 3,296 140
Total retail 235,335 6,883 228,452 12,571 5.3% 3,296 140
Loans and advances at amortised cost 478,173 12,432 465,741 24,322 5.1% 5,625 118
Loans and advances held at fair value 24,522 n/a 24,522
Total loans and advances 502,695 12,432 490,263
As at 31st December 2009
Wholesale – customers 217,470 4,616 212,854 10,982 5.0% 3,428 158
Wholesale – banks 41,196 61 41,135 57 0.1% 11 3
Total wholesale 258,666 4,677 253,989 11,039 4.3% 3,439 133
Retail – customers 213,489 6,119 207,370 11,503 5.4% 3,919 184
Total retail 213,489 6,119 207,370 11,503 5.4% 3,919 184
Loans and advances at amortised cost 472,155 10,796 461,359 22,542 4.8% 7,358 156
Loans and advances held at fair value 25,909 n/a 25,909
Total loans and advances 498,064 10,796 487,268
Note
a Excludes from credit risk loans (CRLs) the Protium loan of £7,560m against which
impairment of £532m has been recognised. Further disclosure of CRLs and coverage
ratios including the impact of the Protium loan are set out on page 98.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 95
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