Barclays 2013 Annual Report Download - page 168

Risk review
Credit risk continued
Home loans principal portfolios – distribution of balances by LTV (updated valuations)a
UK South Africa Spain Italy Portugal
As at 31 December 2013
%
2012
%
2013
%
2012
%
2013
%
2012
%
2013
%
2012
%
2013
%
2012
%
<=75% 84.2 76.1 69.6 62.8 65.9 64.2 74.9 74.3 42.3 40.3
>75% and <=80% 6.9 9.2 8.8 9.0 6.6 6.5 14.2 16.0 8.6 8.3
>80% and <=85% 3.4 5.4 7.1 8.2 6.1 6.1 6.0 5.5 11.7 10.6
>85% and <=90% 2.1 3.3 4.8 6.4 5.5 5.5 1.8 1.4 12.1 11.1
>90% and <=95% 1.3 2.2 3.3 4.0 4.5 4.4 0.9 0.9 9.0 10.2
>95% and <=100% 0.8 1.4 1.9 2.8 3.3 3.3 0.6 0.6 7.3 7.6
>100% 1.3 2.4 4.5 6.8 8.1 10.0 1.6 1.3 9.0 11.9
Portfolio Marked to market LTV:
Balance weighted % 56.3 59.1 62.3 65.6 63.4 64.6 60.0 59.6 76.4 77.6
Valuation weighted % 43.6 45.5 42.1 44.2 44.8 45.4 46.5 46.7 66.2 67.7
Performing Balances:
Balance weighted % 56.2 59.0 60.5 62.9 62.2 63.6 58.6 58.7 75.1 76.7
Valuation weighted % 43.5 45.5 41.1 42.6 44.7 45.3 46.5 46.6 66.1 67.6
Non-performing Balances:
Balance weighted % 68.9 72.7 92.9 95.8 103.3 100.9 98.8 90.2 79.2 83.2
Valuation weighted % 55.1 58.6 71.4 77.9 60.6 61.5 53.1 54.2 74.3 80.3
For >100% LTVs:
Balances £m 1,596 2,698 540 1,064 1,027 1,343 244 203 324 440
Marked to market collateral £m 1,411 2,478 452 898 864 1,136 191 167 294 405
Average LTV: balance weighted % 120.5 112.3 123.1 121.7 118.0 118.1 151.1 137.0 113.7 110.7
Average LTV: valuation weighted % 113.2 108.9 119.5 118.4 118.8 118.2 128.2 121.1 110.1 108.5
% of balances in recoveries 3.2 2.6 45.6 46.2 18.6 12.0 62.1 51.2 20.8 12.5
Credit quality of the principal home loan portfolios reflected relatively conservative levels of high LTV new lending and moderate LTV
on existing portfolios.
During 2013, the average balanced weighted portfolio LTV in the UK decreased to 56.3% (2012: 59.1%) primarily due to appreciating house prices.
For >100% LTV, with the exception of Italy, balances decreased during 2013:
 In the UK, balances were 41% lower at £1,596m, partly driven by appreciating house prices. However, the average balance weighted LTV for the
same period increased due to the remaining balances having higher LTVs than those paid down;
 In South Africa, the 49% reduction in the balances to £540m (2012: £1,064m) was driven by a reduction in the recoveries book and an
appreciation in house prices;
 In Spain and Portugal, the balances decreased by 24% and 26%, respectively due to the increasing levels of repossessions where the assets are
now held as ‘Other Real Estate Owned’ (see page 167 Foreclosures in process and properties in possession); and
 In Italy, the balances increased by 20% due to the falling property prices and court set auction valuations for properties going through the
lengthy repossession process (see section ‘Foreclosures in process and properties in possession’).
Note
a Portfolio marked to market based on the most updated valuation including recoveries balances. Updated valuations reflect the application of the latest house price index available
in the country as at 31 December 2013. Valuation weighted LTV is the ratio between total outstanding balances and the value of total collateral held against these balances.
Balance weighted LTV approach is derived by calculating individual LTVs at account level and weighting by the individual loan balances to arrive at the average position.
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166 Barclays PLC Annual Report 2013