Barclays 2013 Annual Report Download - page 185

Summary of Group exposures
The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of
particular management focus. Detailed analysis on these countries is on pages 184 to 187a. Exposures on loans and advances to geographic
regions including Europe as a whole are set out on pages 152 and 153. The net exposure provides the most appropriate measure of the credit risk
to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments.
Gross exposure reflects total exposures before the effects of economic hedging by way of trading portfolio liabilities, derivative liabilities and cash
collateral, but after taking into account impairment allowances and IFRS netting.
Net exposure by country and counterparty (audited)
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Residential
mortgages
£m
Other retail
lending
£m
Total net
on-balance
sheet
exposure
£m
Contingent
liabilities and
commitments
£m
Total net
exposure
£m
As at 31 December 2013
Spain 184 1,029 3,203 12,537 2,292 19,245 3,253 22,498
Italy 1,556 417 1,479 15,295 1,881 20,628 3,124 23,752
Portugal 372 38 891 3,413 1,548 6,262 2,288 8,550
Ireland 67 5,030 1,356 103 100 6,656 2,047 8,703
Cyprus – 7 106 19 43 175 66 241
Greece 8 5 51 6 12 82 3 85
As at 31 December 2012
Spain 2,067 1,525 4,138 13,305 2,428 23,463 3,301 26,764
Italy 2,669 567 1,962 15,591 1,936 22,725 3,082 25,807
Portugal 637 48 1,958 3,474 1,783 7,900 2,588 10,488
Ireland 21 3,585 1,127 112 83 4,928 1,644 6,572
Cyprus 8 – 106 44 26 184 131 315
Greece 1 – 61 8 9 79 5 84
During 2013 the Group’s net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece reduced by 11% to £53bn. This
reduction is principally due to a decrease in sovereign exposures by 60% to £2.2bn which was driven by a reduction in Spanish sovereign exposure
by 91% to £0.2bn due to the disposal of available for sale government bonds, held for the purpose of interest rate hedging and liquidity, which
have been replaced by interest rate swaps with alternative counterparties. Italian sovereign exposure decreased 42% to £1.6bn principally due to
a reduction in government bonds held as available for sale.
Residential mortgage exposure reduced by 4% to £31.4bn, reflecting lower new originations across Spain, Italy and Portugal in line with Group
strategy to reduce redenomination risk. Other retail lending reduced by 6% to £5.9bn driven primarily by reduced lending to business banking
customers in Spain and Portugal as a result of the challenging economic conditions. Corporate exposure reduced 24% to £7.1bn, largely reflecting
reduced lending in Spain, Italy and Portugal as part of the active management to reduce redenomination risk. Exposures to financial institutions
increased by 14% to £6.5bn, with increased exposure in Ireland relating to securitised lending offset predominately by reductions in exposures for
Spain and Italy.
Gross exposure by country and counterparty (audited)
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Residential
mortgages
£m
Other retail
lending
£m
Total gross
on-balance
sheet
exposure
£m
Contingent
liabilities and
commitments
£m
Total gross
exposure
£m
As at 31 December 2013
Spain 1,198 6,715 3,596 12,537 2,292 26,338 3,253 29,591
Italy 4,104 4,339 1,836 15,295 1,881 27,455 3,124 30,579
Portugal 526 171 950 3,413 1,548 6,608 2,288 8,896
Ireland 587 7,819 1,424 103 100 10,033 2,047 12,080
Cyprus – 68 126 19 43 256 66 322
Greece 9 824 52 6 12 903 3 906
As at 31 December 2012
Spain 2,900 9,291 4,450 13,305 2,428 32,374 3,301 35,675
Italy 5,429 7,725 2,348 15,591 1,936 33,029 3,082 36,111
Portugal 1,035 346 2,130 3,475 1,783 8,769 2,588 11,357
Ireland 56 8,432 1,395 112 83 10,078 1,644 11,722
Cyprus 9 102 119 44 26 300 131 431
Greece 3 1,181 61 8 9 1,262 5 1,267
Note
a Detailed analysis is not provided for Ireland as there is no redenomination risk due to local funding and due to significant risk relating to the underlying assets residing in an
alternative country. The exposures for Cyprus and Greece are deemed immaterial to the Group.
barclays.com/annualreport Barclays PLC Annual Report 2013 183
The Strategic Report Governance Risk review Financial review Financial statements Shareholder informationRisk management