Barclays 2013 Annual Report Download - page 188

Risk review
Credit risk continued
Italy (audited)
Fair value through profit or loss
Trading portfolio Derivatives
Designated
at FV Total
As at 31 December Assets
£m
Liabilities
£m
Net
£m
Assets
£m
Liabilities
£m
Cash
collateral
£m
Net
£m
Assets
£m
2013
£m
2012
£m
Sovereign 2,403 (2,324) 79 1,542 (224) – 1,318 2 1,399 1,123
Financial institutions 210 (145) 65 3,777 (2,831) (946) – 239 304 391
Corporate 302 (144) 158 312 (107) (107) 98 336 592 699
Fair value through OCI
Available for sale investmentsa
As at 31 December Cost
£m
AFS
reserve
£m
2013
Total
£m
2012
Total
£m
Sovereign 154 3 157 1,537
Financial institutions 60 3 63 138
Corporate 27 2 29 29
Held at amortised cost
Loans and advances
As at 31 December Gross
£m
Impairment
allowances
£m
2013
Total
£m
2012
Total
£m
Sovereign – – – 9
Financial institutions 50 – 50 38
Residential mortgages 15,433 (138) 15,295 15,591
Corporate 997 (139) 858 1,234
Other retail lending 1,978 (97) 1,881 1,936
Off-balance sheet
Contingent liabilities
and commitments
As at 31 December 2013
£m
2012
£m
Financial institutions 361 90
Residential mortgages 25 45
Corporate 2,069 2,158
Other retail lending 669 789
Sovereign
 £1,399m (2012: £1,123m) predominantly of government bonds held at fair value through profit and loss and AFS government bonds of £157m
(2012: £1,537m). AFS government bonds have a cumulative fair value gain of £3m (2012: £28m) held in the AFS reserve.
Residential mortgages
 £15,295m (2012: £15,591m) secured on residential property with average balance weighted marked to market LTVs of 60% (2012: 60%).
CRL coverage of 24% (2012: 23%) marginally increased; and
 90 day arrears at 1.1% (2012: 1.0%) were broadly stable, however gross charge-off rates improved to 0.7% (2012: 0.8%).
Corporate
 £858m (2012: £1,234m) focused on large corporate clients with limited exposure to property sector; and
 Balances on EWL increased in 2013 due to the inclusion of a single counterparty. Excluding this counterparty, balances on early warning list have
been broadly stable.
Other retail lending
 £982m (2012: £1,337m) Italian salary advance loans (repayment deducted at source by qualifying employers and Barclays is insured in the event
of termination of employment or death). Arrears rates on salary loans deteriorated during 2013 while charge-off rates improved; and
 £394m (2012: £434m) of credit cards and other unsecured loans. Arrears rates (both 30 and 90 days) in cards and unsecured loans slightly
increased while gross charge-off rates have improved.
Note
a ‘Cost’ refers to the fair value of the asset at recognition, less any impairment booked. ‘AFS reserve’ is the cumulative fair value gain or loss on the assets that is held in equity.
‘Total’ is the fair value of the assets at the balance sheet date.
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186 Barclays PLC Annual Report 2013