Barclays 2012 Annual Report Download - page 141

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
Wholesale forbearance programmes
Wholesale client relationships are individually managed with lending decisions made with reference to specific circumstances and on bespoke
terms. Forbearance occurs when Barclays, for reasons relating to the actual or perceived financial difficulty of an obligor, grants a concession
below current Barclays standard rates (i.e. lending criteria below our current lending terms), that would not normally be considered. This includes
all troubled debt restructures granted below our standard rates.
Wholesale forbearance reporting split by exposure class
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Personal and
trusts
£m
Total
£m
As at 31 December 2012
Restructure: reduced contractual cash flows 4 16 405 – 425
Restructure: maturity date extension 5 107 1,412 33 1,557
Restructure: changed cash flow profile (other than extension) 5 46 876 26 953
Restructure: payment other than cash – – 71 1 72
Change in security – – 76 8 84
Adjustments/non-enforced covenants 10 7 626 128 771
Other – – 318 74 392
Total 24 176 3,784 270 4,254
Wholesale forbearance reporting split by business unit
Corporate
Banking
£m
Investment
Bank
£m
Wealth and
Investment
Management
£m
Africa RBB
£m
Total
£m
As at 31 December 2012
Restructure: reduced contractual cash flows 258 138 – 29 425
Restructure: maturity date extension 952 408 112 85 1,557
Restructure: changed cash flow profile (other than extension) 624 152 70 107 953
Restructure: payment other than cash 64 7 1 – 72
Change in security 45 26 12 1 84
Adjustments/non-enforced covenants 377 115 277 2 771
Other 162 – 211 19 392
Total 2,482 846 683 243 4,254
The tables above detail balance information for wholesale forbearance cases. Comparable figures for previous reporting periods are not available.
Loan impairment on forbearance cases amounted to £1,149m at 31 December 2012, which represented 27% of total forbearance balances.
At 31 December 2012, maturity date extension accounted for the largest proportion of forbearance recognised, followed by changes to cash flow
profile other than maturity extension, adjustments to or non-enforcement of covenants, and reduction of contractual cash flows.
Corporate borrowers accounted for 89% of balances and 95% of impairment booked to forbearance exposures at 31 December 2012, with
impairment representing 29% of forbearance balances.
Corporate Banking accounted for the single largest proportion of overall Group forbearance, with forbearance exposures concentrated in Western
Europe and particularly Spain, which accounted for 29% of total Group forbearance balances and 45% of total impairment booked to forbearance
exposures at 31 December 2012.
UK Commercial Real Estate (UK CRE)
The UK CRE portfolio includes property investment, development, trading and housebuilders but excludes social housing contractors.
Total loans and advances at amortised cost to UK CRE amounted to £9,676ma at 31 December 2012 (2011: £9,519m), with a total of £295m
(3.0% of the total) being past due (2011: £366m; 3.8%). Impairment allowances totalled £80m at 31 December 2012 (2011: £78m).
The impairment charge for 2012 for the UK CRE portfolio was £49m (2011: £40m) with the increase primarily relating to UK Corporate Banking.
Note
a An additional £270m (2011: £321m) of UK CRE exposure is held at fair value.
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