Barclays 2013 Annual Report Download - page 147

Concentrations of credit risk
A concentration of credit risk exists when a number of counterparties are located in a geographical region or are engaged in similar activities
and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic or other conditions. The Group implements certain limits on concentrations in order to mitigate the risk. The analyses of credit risk
concentrations presented below are based on the location of the counterparty or customer or the industry in which they are engaged. Further
detail on the Group’s policies with regard to managing concentration risk is presented on page 393.
Geographic concentrations
As at 31 December 2013, the geographic concentration of the Group’s assets remained broadly consistent with 2012. 37% (2012: 35%) of the
exposure is concentrated in the UK, 24% (2012: 26%) in Europe and 29% (2012: 28%) in the Americas.
The most significant change in concentrations was for cash held at central banks. A significant reduction in Europe was noted, primarily with the
European Central Bank, following the change in composition of the liquidity pool from cash and balances at central banks to government bonds;
as a result UK cash contributed a higher proportion of the total. This also increased holdings in UK, Europe and Americas available for sale debt
securities.
An analysis of geographical and industry concentration of Group loans and advances held at amortised cost and at fair value is presented on
pages 152 and 153. Information on exposures to Eurozone countries is presented on pages 182 to 189.
Credit risk concentrations by geography (audited)
As at 31 December 2013
United
Kingdom
£m
Europe
£m
Americas
£m
Africa and
Middle East
£m
Asia
£m
Total
£m
On-balance sheet:
Cash and balances at central banks 7,307 29,983 4,320 2,111 1,966 45,687
Items in the course of collection from other banks 756 242 – 284 – 1,282
Trading portfolio assets 15,936 21,040 37,113 2,165 9,953 86,207
Financial assets designated at fair value 17,487 2,632 3,399 1,372 648 25,538
Derivative financial instruments 98,787 112,254 85,580 2,901 24,813 324,335
Loans and advances to banks 6,379 11,483 10,455 2,554 6,982 37,853
Loans and advances to customers 235,770 74,657 67,467 39,582 12,935 430,411
Reverse repurchase agreements and other similar secured lending 34,027 32,820 102,922 1,887 15,123 186,779
Available for sale debt securities 29,540 33,816 20,189 5,875 1,878 91,298
Other assets 917 380 260 324 117 1,998
Total on-balance sheet 446,906 319,307 331,705 59,055 74,415 1,231,388
Off-balance sheet:
Contingent liabilities 10,349 2,475 4,521 2,110 220 19,675
Documentary credits and other short-term trade related transactions 496 121 – 163 – 780
Forward starting reverse repurchase agreements 5,254 3,903 4,753 4 6,022 19,936
Standby facilities, credit lines and other commitments 102,456 35,612 99,240 15,584 1,963 254,855
Total off-balance sheet 118,555 42,111 108,514 17,861 8,205 295,246
Total 565,461 361,418 440,219 76,916 82,620 1,526,634
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