Barclays 2011 Annual Report Download - page 97

Potential Credit Risk Loans
Potential credit risk loans and coverage ratios CRLs PPLs PCRLs
As at 31 December 2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
Home loans 3,790 4,294 221 260 4,011 4,554
Credit cards, unsecured and other retail lending 6,626 8,277 364 465 6,990 8,742
Retail 10,416 12,571 585 725 11,001 13,296
Wholesale (excluding loan to Protium) 10,926 11,751 1,387 1,970 12,313 13,721
Loan to Protiuma– 7,560 – – – 7,560
Wholesale 10,926 19,311 1,387 1,970 12,313 21,281
Group (excluding loan to Protium) 21,342 24,322 1,972 2,695 23,314 27,017
Group 21,342 31,882 1,972 2,695 23,314 34,577
Impairment allowance CRL coverage PCRL coverage
As at 31 December 2011
£m
2010
£m
2011
%
2010
%
2011
%
2010
%
Home loans 834 854 22.0 19.9 20.8 18.8
Credit cards, unsecured and other retail lending 4,540 6,029 68.5 72.8 64.9 69.0
Retail 5,374 6,883 51.6 54.8 48.9 51.8
Wholesale (excluding loan to Protium) 5,223 5,017 47.8 42.7 42.4 36.6
Loan to Protiuma– 532 – 7.0 – 7.0
Wholesale 5,223 5,549 47.8 28.7 42.4 26.1
Group (excluding loan to Protium) 10,597 11,900 49.7 48.9 45.5 44.0
Group 10,597 12,432 49.7 39.0 45.5 36.0
To facilitate comparison between periods, the analysis below is based on Group (excluding loan to Protium) as the Protium loan was repaid in 2011.
Credit Risk Loans (CRLs)
CRLs fell 12% to £21,342m. CRL balances in the wholesale portfolio decreased 7% primarily due to falls in:
– Barclays Corporate, where lower balances in the UK reflected the high level of write-offs and balance reductions. Balances in Europe remained stable
with higher balances in Portugal and Italy reflecting deteriorating credit conditions offset by lower balances in Spain; and
– Africa RBB, principally due to the depreciation in the value of the Rand against Sterling, repayments and a slowdown in new CRLs.
CRL balances in retail portfolios decreased 17%, reflecting the write-off of balances following a reduction in the period between accounting charge-off
and write-off from 18 months to 12-months across the majority of unsecured portfolios, as well as lower rate of inflows, debt sales and customer
repayments.
The main exception was Europe RBB where the overall balance was largely unchanged as decreases in Spain, principally resulting from a series of
unsecured portfolio sales in 2011, were offset by increases, mainly in the mortgage portfolios as a consequence of higher delinquent balances in
deteriorating economic conditions.
Potential Problem Loans (PPLs)
PPLs fell 27% to £1,972m. PPL balances in the wholesale portfolio decreased 30% primarily due to improved credit grading of a small number of
Barclays Capital customers. PPL balances in the retail portfolio decreased 19% reflecting lower balances in early delinquency arrears across the majority
of businesses.
Coverage ratios
The CRL coverage ratio increased slightly to 49.7% (2010: 48.9%) reflecting an increase in the wholesale portfolio ratio to 47.8% (2010: 42.7%)
and a decrease in the retail portfolio ratio to 51.6% (2010: 54.8%).
The PCRL coverage ratio increased slightly to 45.5% (2010: 44.0%) reflecting an increase in the wholesale portfolio ratio to 42.4% (2010: 36.6%)
and a decrease in the retail portfolio ratio to 48.9% (2010: 51.8%).
Notes
a Refer to page 111 for further information on Protium.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 95
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