Barclays 2013 Annual Report Download - page 156

Risk review
Credit risk continued
Impairment charges (audited)
Loan impairment charges reduced 7% to £3,062m, reflecting lower charges in Corporate Banking and Africa RBB, partially offset by increased
charges across the rest of the Group. Combined with a 1% increase in gross loans and advances, this resulted in a lower overall Group loan loss
rate of 64 bps (2012: 70bps; 2011: 77bps).
Credit impairment charges and other provisions by business (audited)
2013
£m
2012
£m
2011
£m
Loan impairment
UK RBB 347 269 536
Europe RBB 287 257 188
Africa RBB 324 632 462
Barclaycard 1,264 1,049 1,312
Investment Bank 209 192 129
Corporate Banking 512 864 1,124
Wealth and Investment Management 121 38 41
Head Office and Other Operations (2) 2 (2)
Total loan impairment chargesa3,062 3,303 3,790
Impairment charges on available for sale financial investments (excluding BlackRock, Inc.) 1 40 60
Impairment of reverse repurchase agreements 8 (3) (48)
Total credit impairment charges and other provisions 3,071 3,340 3,802
Impairment of investment in BlackRock, Inc. –– 1,800
Impairment allowances (audited)
Impairment allowances decreased 7% to £7,258m, principally due to a reduction in corporate loans in Corporate Banking Europe, largely due to
actions to reduce exposure in the Spanish property and construction sectors, and lower working capital funding requirements from UK
counterparties.
Movements in allowance for impairment by asset class (audited)
At beginning
of year
£m
Acquisitions
and
disposals
£m
Unwind of
discount
£m
Exchange
and other
adjustments
£m
Amounts
written off
£m
Recoveries
£m
Amounts
charged to
income
statement
£m
Balance at
31 December
£m
2013
Home loans 855 – (38) (147) (199) 30 287 788
Credit cards, unsecured and other retail lending 3,780 (5) (132) 50 (2,050) 123 1,837 3,603
Corporate loans 3,164 – (9) (163) (1,094) 48 921 2,867
Total impairment allowance 7,799 (5) (179) (260) (3,343) 201 3,045 7,258
2012
Home loans 834 – (45) (33) (382) 24 457 855
Credit cards, unsecured and other retail lending 4,540 (59) (144) (248) (2,102) 119 1,674 3,780
Corporate loans 3,522 (21) (22) 75 (1,635) 69 1,176 3,164
Total impairment allowance 8,896 (80) (211) (206) (4,119) 212 3,307 7,799
Note
a Includes charges of £17m (2012: £4m write back; 2011: £24m charge) in respect of undrawn facilities and guarantees.
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154 Barclays PLC Annual Report 2013