Barclays 2013 Annual Report Download - page 171

Exposures to Mortgage Current Accounts (MCA) reserves
MCA reserve is a secured overdraft facility available to home loan customers which allows them to borrow against the equity in their home. It
allows draw-down up to an agreed available limit on a separate but connected account to the main mortgage loan facility. The balance drawn
must be repaid on redemption of the mortgage.
Of total 953,000 home loan customers in the UK, 573,000 have MCA reserves, with total reserve limits of £18.3bn.
Exposure to Mortgage Current Accounts reserves (UK)
As at 31 December 2013 2012
Total outstanding of home loans with MCA reserve balances (£bn) 72.7 82.2
Home loan customers with active reserves (000s) 573 638
Proportion of outstanding UK home loan balances (%) 59.2 71.6
Total reserve limits (£bn) 18.3 18.5
Utilisation rate (%) 31.9 30.9
Marked to market LTV: Balance weighted (%) 53.9 57.7
While the MCA reserve was withdrawn from sale in December 2012, existing customers can continue to draw down against their available reserve
limit (£12.5bn of undrawn limits as at December 2013).
The total overall home loans balances for customers who have a current account reserve has reduced by 12% to £72.7bn primarily due to
amortising payments on the main mortgage account. The average marked to market LTV has reduced to 53.9% (2012: 57.7%) reflecting
increasing house prices and paydown of the main mortgage loan.
Credit cards, overdrafts and unsecured loans
The principal portfolios listed below account for 91% (2012: 90%) of total credit cards, overdrafts and unsecured loans in the Group’s
retail portfolios.
Principal portfolios
Gross loans
and
advances
£m
30 day
arrears
%
90 day
arrears
%
Annualised
gross
charge-off
ratesc
%
Recoveries
proportion
of
outstanding
balances
%
Recoveries
impairment
coverage
ratio
%
As at 31 December 2013
UK cards 15,937 2.4 1.1 4.4 4.6 86.2
US cards 10,301 2.1 1.0 4.0 1.8 86.6
UK personal loans 4,958 2.7 1.2 4.6 15.8 79.4
Barclays Partner Finance 2,499 1.6 0.8 2.9 3.2 83.2
South Africa cardsa2,224 8.1 4.3 7.3 5.1 70.7
Germany cards 2,169 2.5 1.0 3.7 2.9 81.9
UK overdrafts 1,307 4.8 3.3 7.6 14.5 94.5
Italy salary advance loansb1,008 2.2 1.0 7.9 13.8 18.8
Iberia cards 1,139 5.3 2.3 9.9 9.2 84.6
South Africa personal loans 906 5.4 2.6 7.9 7.4 70.4
As at 31 December 2012
UK cards 15,434 2.5 1.1 4.9 6.2 80.4
US cards 9,296 2.4 1.1 5.0 2.3 90.7
UK personal loans 4,861 3.0 1.3 5.1 17.4 78.9
South Africa cardsa2,511 7.4 3.9 4.7 4.7 70.9
Barclays Partner Finance 2,323 1.9 1.0 3.9 4.8 78.1
Germany cards 1,778 2.5 0.9 3.6 3.2 79.4
UK overdrafts 1,382 5.3 3.5 8.2 14.6 92.7
Italy salary advance loansb1,354 2.3 0.9 8.4 9.4 12.5
Iberia cards 1,140 7.5 3.5 9.6 12.4 88.2
South Africa personal loans 1,061 5.6 3.1 8.5 7.6 72.3
Gross loans and advances in credit cards, overdrafts and unsecured loans increased 2% to £47bn with increases in UK and US card portfolios,
Germany cards and Barclays Partner Finance being offset by decreases in Italy salary advance loans, South Africa cards and UK overdrafts.
With the exception of South Africa cards, arrears rates remained broadly stable.
Notes
a South Africa cards now includes the acquired Edcon portfolio in both 2012 (reflected partially for a 2 month period) and 2013 figures. The outstanding acquired balances have
been excluded from the recoveries impairment coverage ratio on the basis that the portfolio has been recognised on acquisition at fair value during 2012 (with no related
impairment allowance). Impairment allowances have been recognised as appropriate where these relate to the period post acquisition.
b The recoveries impairment coverage ratio for Italy salary advance loans is lower than unsecured portfolios as these loans are extended to customers where the repayment is made
via a salary deduction at source by qualifying employers often through third-party payment collection companies and Barclays is insured in the event of termination of
employment or death.
c Gross charge-off rates are calculated over average monthly outstanding balances through the year.
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