Barclays 2013 Annual Report Download - page 165

As at 31 December 2012
Balances on forbearance programmes: arrears managed Impairment
allowances
marked
against
balances on
forbearance
programmes
£m
Total
balances on
forbearance
programmes
coverage
ratio
%
of which:
Past due of which:
Total
£m
% of
gross L&A
%
Up-to-date
£m
1-90 days
past due
£m
91 or more
days past due
£m
UK 60 0.7 26 8 26 15.6 26.4
Spain 4 0.5 3 1 – 0.3 7.5
Portugal 7 1.2 2 1 4 0.6 9.5
As at 31 December 2012
Balances on forbearance programmes: EWL managed Impairment
allowances
marked
against
balances on
forbearance
programmes
£m
Total
balances on
forbearance
programmes
coverage
ratio
%
of which:
Past due of which:
Total
£m
% of
gross L&A
%
Performing
balances
£m
Non-performing
balances
£m
UK 143 1.8 89 54 12.4 8.7
Spain 79 7.1 75 4 8.4 10.6
Portugal 3 0.4 2 1 0.6 21.0
As at 31 December 2012
Balances on
forbearance
programmes
£m
% of
gross L&A
%
Impairment
allowances
marked
against
balances on
forbearance
programmes
£m
Total
balances on
forbearance
programmes
coverage
ratio
%
UK 203 2.5 28.0 13.8
Spain 83 7.6 8.7 10.5
Portugal 10 1.6 1.2 12.8
Total business lending forbearance balances in the UK increased 37% to £278m due to the monitoring of customers under forbearance for
a longer period before they are recategorised as performing, and an increase in customers being granted forbearance while a review of their
derivative position is being undertaken. Non-performing balances increased 13% to £90m, with a significant proportion of customers operating
within the terms of their amended terms and conditions.
The relatively low total balances on forbearance coverage ratio of 8.7% (2012: 8.7%) for UK business lending EWL managed balances principally
reflects focus on obtaining good quality collateral/security for secured deals.
Balances in Spain and Portugal increased 55% to £144m primarily due to the restructuring of facilities for EWL managed customers including
loans to the renewable energy sector in Spain due to the reduction in government subsidies to this sector. Impairment coverage increased in
Spain reflecting the additional charges taken against loans to the renewable energy sector.
Forbearance by type
Home loans
 Interest-only conversions: A temporary change from a capital and interest repayment to an interest-only repayment, for a maximum of 24 months.
 Interest rate reductions: A temporary reduction in interest rate, for a maximum of 12 months.
 Payment concessions: An agreement to temporarily accept reduced loan repayments, for a maximum of 24 months.
 Term extensions: A permanent extension to the loan maturity date which may involve a reduction in interest rates, and usually involves the
capitalisation of arrears.
Credit cards and unsecured loans
 Payment concessions (loans only): An agreement to temporarily accept reduced loan repayments, for a maximum of 12 months.
 Term extensions (loans only): A permanent extension to the loan maturity date, usually involving the capitalisation of arrears.
 Repayment plans (cards only): A temporary reduction in the minimum payment due, for a maximum of 60 months. This may involve a reduction
in interest rates to prevent negative amortisation.
 Fully amortising (cards and loans): A permanent conversion of the outstanding balance into a fully amortising loan, over a maximum period of
60 months for cards and 120 months for loans.
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