Barclays 2013 Annual Report Download - page 174

Risk review
Credit risk continued
UK Commercial Real Estate (UK CRE)
The UK CRE portfolio includes property investment, development, trading and housebuilders.
During 2013 the gross loans and advances increased 4% to £1,593m in line with the overall business lending growth, whereas past due balances
reduced to 6.5% (2012: 8.0%) due to continued focus by a dedicated team with early engagement of distressed customers and developments
reducing new flows into delinquency. The balance weighted LTV reduced marginally to 54.9% (2012: 57.5%).
UK Commercial Real Estate
As at 31 December 2013 2012
UK CRE loans and advances (£m) 1,593 1,534
Past due balances (£m) 103 123
Balances past due as % of UK CRE total loans and advances 6.5% 8.0%
Impairment allowances (£m) 16.2 19.9
Past due coverage ratio 15.7% 16.1%
Total collateral (£m) 3,792 3,385
Marked-to-market LTV:
Balance weighted (%) 54.9 57.5
Valuation weighted (%) 50.7 53.5
Marked-to-Market LTV – performing balances:
Balance weighted (%) 54.2 57.2
Valuation weighted (%) 50.3 53.2
Marked-to-Market LTV – non-performing balances:
Balance weighted (%) 75.8 75.4
Valuation weighted (%) 69.8 70.7
Twelve months ended 31 December
Impairment charge (£m) 18.4 16.5
Maturity analysis of exposure to UK CRE
Contractual maturity of UK CRE loans and advances at amortised cost
Past due
balances
£m
Not more
than six
months
£m
Over six
months
but not
more than
one year
£m
Over one
year
but not
more than
two years
£m
Over two
years
but not
more than
five years
£m
Over five
years
but not
more than
ten years
£m
Over ten
years
£m
Total loans
& advances
£m
2013 103 69 37 45 163 276 900 1,593
2012 123 82 32 34 134 251 878 1,534
UK CRE LTV analysis
Balances
Balances as
proportion of total Collateral held
As at 31 December 2013
£m
2012
£m
2013
%
2012
%
2013
£m
2012
£m
<=75% 1,187 1,080 74 70 3,437 2,989
>75% and <=80% 69 67 4 4 90 86
>80% and <=85% 57 62 4 4 70 76
>85% and <=90% 47 42 3 3 54 48
>90% and <=95% 28 47 2 3 31 52
>95% and <=100% 24 33 2 2 24 35
>100% and <=125% 66 81 4 5 63 75
>125% 36 39 2 3 23 24
Unsecured balances 79 83 5 6 n/a n/a
Total 1,593 1,534 100 100 3,792 3,385
Portfolio LTVs have reduced due to appreciating commercial property values. Unsecured balances primarily relate to working capital facilities
agreed with CRE companies.
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172 Barclays PLC Annual Report 2013