Barclays 2013 Annual Report Download - page 178

Risk review
Credit risk continued
Wholesale forbearance reporting split by business unit
Corporate
Banking
£m
Investment
Bank
£m
Wealth and
Investment
Management
£m
Africa RBB
£m
Total
£m
As at 31 December 2013
Restructure: reduced contractual cash flows 272 1 – 8 281
Restructure: maturity date extension 671 377 133 103 1,284
Restructure: changed cash flow profile (other than extension) 467 25 73 44 609
Restructure: payment other than cash 23 – 1 – 24
Change in security 22 – 4 1 27
Adjustments or non-enforcements of covenants 247 45 213 1 506
Other (e.g. capital repayment holiday; restructure pending) 301 47 304 2 654
Total 2,003 495 728 159 3,385
As at 31 December 2012
Restructure: reduced contractual cash flows 258 138 – 29 425
Restructure: maturity date extension 952 408 112 85 1,557
Restructure: changed cash flow profile (other than extension) 624 152 70 107 953
Restructure: payment other than cash 64 7 1 – 72
Change in security 45 26 12 1 84
Adjustments or non-enforcements of covenants 377 115 277 2 771
Other (e.g. capital repayment holiday; restructure pending) 162 – 211 19 392
Total 2,482 846 683 243 4,254
Wholesale forbearance flows in 2013
As at 1 January 2013 Balance
£m
Added to forbearance 4,254
Removed from forbearance (credit improvement) 1,370
Fully or partially repaid and other movements (including FX) (509)
Written off/moved to recoveries (1,129)
As at 31 December 2013 (601)
The tables above detail balance information for wholesale forbearance cases.
Loan impairment on forbearance cases reduced 22% to £891m, which represented 26.3% of total forbearance balances.
Corporate borrowers accounted for 90% (2012: 89%) of balances and 94% (2012: 95%) of impairment booked to forbearance exposures, with
impairment representing 28% (2012: 29%) of forbearance balances.
Corporate Banking accounted for 59% (2012: 58%) of overall wholesale forbearance with forbearance exposures in Corporate Banking in the UK
accounting for 23% (2012: 16%) of total Wholesale forbearance balances and Corporate Banking in Spain accounting for 20% (2012: 29%).
Corporate Spain accounted for 42% (2012: 45%) of total impairment booked to forbearance exposures.
The overall reduction in forbearance balances was driven primarily by full and partial repayments and balances written off or moved to recoveries.
 The 19% reduction in Corporate Banking forbearance was driven primarily by reductions in Spain, which is predominantly property and
construction exposure. This reflects the overall strategic drive to reduce exposure in the Corporate Spain portfolio, including a small number of
large write-offs taken as a result of debt sales;
 Wealth forbearance increased 7% driven by a combination of current EWL cases moving into forbearance, specifically due to a large number of
property deals, along with newly reported cases booked in USA, Spain and Jersey. The increase was partially offset by balance reductions as a
result of repayments or cases returned to performing, as well as balances that moving to full legal recovery or being written off in the year; and
 Reductions in Investment Bank forbearance balances were primarily driven by repayment by clients and the sale of debt/assets.
Movements into forbearance were principally in Corporate Banking and Wealth and Investment Management, which accounted for 62% and 19%
respectively of balances added to forbearance.
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176 Barclays PLC Annual Report 2013