Barclays 2014 Annual Report Download - page 150

148 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Credit risk
Risk review
As the principal source of credit risk to the Group, loans and advances to customers and banks is analysed in detail below:
Loans and advances to customers and banks
Loan quality has improved in 2014 reflected by a lower loan loss rate, while balances increased most notably in Home Loans
Analysis of loans and advances and impairment to customers and banks
Gross L&A
£m
Impairment
allowance
£m
L&A net of
impairment
£m
Credit risk
loans
£m
CRLs % of
gross L&A
%
Loan
impairment
chargesa
£m
Loan loss
rates
bps
As at 31 December 2014
Personal & Corporate Banking 145,114 971 144,143 2,064 1.4 263 18
Africa Banking 21,334 681 20,653 1,093 5.1 295 138
Barclaycard 38,376 1,815 36,561 1,765 4.6 1,183 308
Barclays Core 204,824 3,467 201,357 4,922 2.4 1,741 85
Barclays Non-Core 20,259 428 19,831 1,209 6.0 151 75
Total Group Retail 225,083 3,895 221,188 6,131 2.7 1,892 84
Investment Bank 106,377 44 106,333 71 0.1 (14) (1)
Personal & Corporate Banking 79,622 668 78,954 1,630 2.0 219 28
Africa Banking 16,312 246 16,066 665 4.1 54 33
Head Office and Other Operations 3,240 – 3,240 – – – –
Barclays Core 205,551 958 204,593 2,366 1.2 259 13
Barclays Non-Core 44,699 602 44,097 841 1.9 53 12
Total Group Wholesale 250,250 1,560 248,690 3,207 1.3 312 12
Group Total 475,333 5,455 469,878 9,338 2.0 2,204 46
Traded loans 2,693 n/a 2,693
Loans and advances designated at fair value 20,198 n/a 20,198
Loans and advances held at fair value 22,891 n/a 22,891
Total loans and advances 498,224 5,455 492,769
As at 31 December 2013
Personal & Corporate Banking 140,742 1,325 139,417 2,703 1.9 357 25
Africa Banking 21,586 674 20,912 1,205 5.6 388 180
Barclaycard 33,024 1,517 31,507 1,541 4.7 1,096 332
Barclays Core 195,352 3,516 191,836 5,449 2.8 1,841 94
Barclays Non-Core 40,867 856 40,011 2,118 5.2 320 78
Total Group Retail 236,219 4,372 231,847 7,567 3.2 2,161 91
Investment Bank 104,468 – 104,468 – – (30) (3)
Personal & Corporate Banking 77,674 701 76,973 1,861 2.4 264 34
Africa Banking 15,793 352 15,441 722 4.6 89 56
Head Office and Other Operations 3,072 – 3,072 – – (3) (10)
Barclays Core 201,007 1,053 199,954 2,583 1.3 320 16
Barclays Non-Core 43,691 1,833 41,858 3,148 7.2 581 133
Total Group Wholesale 244,698 2,886 241,812 5,731 2.3 901 37
Group Total 480,917 7,258 473,659 13,298 2.8 3,062 64
Traded loans 1,647 n/a 1,647
Loans and advances designated at fair value 18,695 n/a 18,695
Loans and advances held at fair value 20,342 n/a 20,342
Total loans and advances 501,259 7,258 494,001
Loans and advances to customers and banks at amortised cost net of impairment decreased to £469.9bn (2013: £473.7bn):
Q Non-Core decreased £17.9bn to £63.9bn driven by reclassification of Spanish loans now held for sale and a reduction in Europe Retail driven by a
run-off of assets;
Q PCB increased £6.7bn to £223.1bn due to mortgage growth, resulting from increased market activity, and higher Corporate lending balances;
and
Q Barclaycard increased £5.1bn reflecting growth across all geographies, including the impact of promotional offers and the acquisition of
portfolios in the US.
CRLs decreased £4.0bn to £9.3bn primarily due to a reduction within Non-Core of £3.2bn to £2.1bn as a result of the reclassification of Spanish
loans now held for sale and a write-off of a single name exposure.
Loan impairment charges improved 28% to £2.2bn due to the non-recurrence of impairments on single name exposures, impairment releases on
the wholesale portfolio as a result of confirmation on Government subsidies in the renewable energy sector and improved performance in Europe,
primarily due to improved recoveries and delinquencies in the mortgages portfolio. This led to a decrease in the loan loss rate to 46bps (2013: 64bps).
Note
a Excluding impairment charges on available for sale investments and reverse repurchase agreements.