Barclays 2013 Annual Report Download - page 160

Risk review
Credit risk continued
Retail credit risk
Gross loans and advances to customers and banks in the retail portfolios increased 2% to £236.2bn; principally reflecting movements in UK RBB,
where a 6% increase to £138bn reflected the acquisition of Barclays Direct and growth in home loans. This was partially offset by a reduction in
Africa RBB, principally reflecting currency movements.
The loan impairment charge increased 4% to £2,161m principally the result of:
 UK RBB increased 29% to £347m primarily due to the non-recurrence of releases in 2012 impacting unsecured lending and mortgages.
Excluding these, impairment was broadly in line with prior year;
 Barclaycard increased 20% to £1,264m primarily driven by higher assets, including the impact of the acquisition of the Edcon portfolio in late
2012, and the non-recurrence of releases in 2012. Impairment loan loss rates in consumer credit cards remained stable at 356bps (2012:
358bps) in the UK and at 268bps (2012: 268bps) in the US, but increased to 560bps (2012: 160bps) in South Africa;
 Europe RBB increased 12% to £287m due in part to additional charges resulting from decreases in Spanish government subsidies to the
renewable energy sector, foreign currency movements and an increase in home loan balances in recoveries. This was partially offset by
improvements in underlying collections performance;
 Africa RBB decreased 45% to £259m driven by lower charges in the South African home loans portfolios and foreign currency movements;
 Wealth and Investment Management increased to £9m (2012: nil) driven primarily by losses on Spanish residential property; and
 Corporate Banking decreased to a £5m release (2012: £27m charge) driven by a sharp improvement in residential property values.
Higher overall impairment charges led to an increase in the retail loan loss rate to 91bps (2012: 89bps).
Retail loans and advances at amortised cost
Gross
L&A
£m
Impairment
allowance
£m
L&A net of
impairment
£m
Credit risk
loans
£m
CRLs % of
gross L&A
%
Loan
impairment
charges
£m
Loan
loss rates
bps
As at 31 December 2013
UK RBB 138,056 1,308 136,748 2,664 1.9 347 25
Europe RBB 38,016 660 37,356 1,801 4.7 287 75
Africa RBB 19,363 491 18,872 1,026 5.3 259 134
Barclaycard 37,468 1,856 35,612 1,992 5.3 1,264 337
Corporate Bankinga 488 39 449 45 9.2 (5) (102)
Wealth and Investment Management 2,828 18 2,810 39 1.4 9 32
Total 236,219 4,372 231,847 7,567 3.2 2,161 91
As at 31 December 2012
UK RBB 129,682 1,369 128,313 2,883 2.2 269 21
Europe RBB 39,997 560 39,437 1,734 4.3 257 64
Africa RBB 23,987 700 23,287 1,691 7.0 472 197
Barclaycard 35,732 1,911 33,821 2,288 6.4 1,050 294
Corporate Bankinga 739 79 660 92 12.4 27 365
Wealth and Investment Management 2,535 16 2,519 34 1.3 – –
Total 232,672 4,635 228,037 8,722 3.7 2,075 89
Note
a Primarily comprises UAE retail portfolios in 2013. Includes India portfolios in 2012 that were predominantly disposed of in 2013.
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158 Barclays PLC Annual Report 2013