Barclays 2012 Annual Report Download - page 133

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
PCRLs and coverage ratios by businessa
CRLs PPLs PCRLs
As at 31 December 2012
£m
2011
£m
2012
£m
2011
£m
2012
£m
2011
£m
UKRBB 2,883 3,299 283 222 3,166 3,521
Europe RBB 1,901 1,708 113 99 2,014 1,807
Africa RBB 1,790 2,362 61 61 1,851 2,423
Barclaycard 2,121 2,824 193 204 2,314 3,028
Corporate Banking 92 182 5 11 97 193
Wealth and Investment Management 34 35 1 3 35 38
Total retail 8,821 10,410 656 600 9,477 11,010
Impairment allowance CRL coverage PCRL coverage
As at 31 December 2012
£m
2011
£m
2012
%
2011
%
2012
%
2011
%
UKRBB 1,369 1,686 47.5 51.1 43.2 47.9
Europe RBB 714 684 37.6 40.0 35.5 37.8
Africa RBB 700 731 39.1 30.9 37.8 30.2
Barclaycard 1,757 2,077 82.8 73.5 75.9 68.6
Corporate Banking 79 188 85.9 103.3 81.4 97.4
Wealth and Investment Management 16 20 47.1 57.1 45.7 52.6
Total retail 4,635 5,386 52.5 51.7 48.9 48.9
CRL balances in retail portfolios decreased 15% to £8.8bn (2011: £10.4bn), primarily due to Barclaycard, where reductions reflected favourable
delinquency performance, reductions in recovery balances, the change to the write-off policy at the end of 2011, and increased debt sale activity;
Africa RBB, where reductions were driven by a higher number of accounts being charged-off and written-off, particularly in South African Home
Loans; and UKRBB, where reductions reflected falling recovery balances across principal portfolios due to improved performance. This was partially
offset by higher balances in Europe RBB principally in the Spanish and Italian home loans books.
The CRL coverage ratio increased to 52.5% (2011: 51.7%). PPL balances increased 9% principally due to increased home loans balances in UKRBB.
The PCRL coverage ratio remained stable at 48.9% (2011: 48.9%).
Secured home loans
Home loans to retail customers increased to £169.6bn (2011: £166.9bn), and as a proportion of total retail gross loans and advances remained
unchanged at 73%. The principal home loan portfolios listed below account for 96% of total home loans in the Group’s retail portfolios.
Home loans principal portfoliosb
Gross loans
and advances
£m
> 90 day
arrears
%
Gross
charge-off
rates
%
Recoveries
proportion of
outstanding
balances
%
Recoveries
impairment
coverage
ratio
%
As at 31 December 2012
UK 114,766 0.3 0.6 0.5 13.4
South Africa 15,773 1.6 3.9 6.9 34.6
Spain 13,551 0.7 1.1 1.9 34.0
Italy 15,529 1.0 0.8 1.8 25.4
Portugal 3,710 0.7 1.4 2.8 25.6
As at 31 December 2011
UK 107,775 0.3 0.6 0.6 15.3
South Africa 17,585 3.2 3.7 6.9 19.4
Spain 14,918 0.5 0.6 1.6 32.5
Italy 15,935 1.0 0.5 1.3 29.3
Portugal 3,891 0.6 1.1 2.0 15.0
Notes
a UKRBB Medium Business lending and Barclaycard’s Global Payment Acceptance, Global Commercial Payments and Business Cards portfolios have been reclassified
from wholesale to retail, whilst Wealth and Investment Management’s Private Bank portfolio has been reclassified from retail to wholesale. This has resulted in a net
increase in retail PCRLs of £9m and impairment allowance of £12m with a corresponding decrease in wholesale PCRLs and impairment allowance in 2011. These
reclassifications (including comparatives) better reflect the way in which risk in these portfolios is managed.
b Excluded from the above analysis are: Wealth International home loans, which are managed on the basis of individual customer exposures, France home loans and
other small home loans portfolios.
barclays.com/annualreport Barclays PLC Annual Report 2012 I 131