Barclays 2014 Annual Report Download - page 154

152 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Credit risk
Risk review
Spain (audited)
Trading portfolio Derivatives
Designated
at fair value Total
As at 31 December Assets
£m
Liabilities
£m
Net
£m
Assets
£m
Liabilities
£m
Cash
collateral
£m
Net
£m
Assets
£m
2014
£m
2013
£m
Sovereign 1,442 (1,442) – 59 (9) – 50 33 83 140
Financial institutions 610 (126) 484 7,075 (5,771) (1,304) – 13,498 13,982 857
Corporate 584 (417) 167 399 (244) – 155 347 669 905
Amortised cost – loans and advances
Off balance sheet contingent
liabilities and commitments
Fair value through OCI –
available for sale (AFS) investmentsa
As at 31 December Gross
£m
Impairment
allowances
£m
2014 total
£m
2013 total
£m
2014
£m
2013
£m
Cost
£m
AFS reserve
£m
2014 total
£m
2013 total
£m
Sovereign – – – 21 – – 22 3 25 23
Financial institutions 10 – 10 9 476 283 48 3 51 163
Residential mortgages 12 – 12 12,537 – 7 ––––
Corporate 526 (51) 475 2,290 2,027 1,831 5 – 5 8
Other retail lending 266 (18) 248 2,292 360 1,132 ––– –
Total net exposure to Spain decreased 18% to £18,423m. This primarily reflects the run-down of businesses as part of the Non-Core strategy.
Excluding the Spanish assets held for sale, the net on-balance sheet exposure was £2,383m (2013: £22,498m).
Sovereign
Q £108m (2013: £184m) largely consisting of holdings in government bonds held at fair value through profit and loss.
Financial institutions
Q £13,982m (2013: £857m) held at fair value through profit and loss, predominantly Spanish assets reclassified to held for sale relating to the sale
of the business to Caixabank. Excluding Spanish assets held for sale the exposure was £866m (2013: £857m); and
Q £51m (2013: £163m) AFS investments with £3m (2013: £4m) cumulative gain held in AFS reserve.
Residential mortgages, Corporate and Other Retail Lending
Q The significant decrease within Residential mortgages to £12m (2013: £12,537m), Corporate to £475m (2013: £2,290m) and Other Retail
Lending to £248m (2013: £2,292m) is primarily as a result of the reclassification of Spanish assets held for sale to the Financial institution
category.
Italy (audited)
Trading portfolio Derivatives
Designated
at fair value Total
As at 31 December Assets
£m
Liabilities
£m
Net
£m
Assets
£m
Liabilities
£m
Cash
collateral
£m
Net
£m
Assets
£m
2014
£m
2013
£m
Sovereign 2,191 (2,191) – 1,783 (91) – 1,692 – 1,692 1,399
Financial institutions 246 (81) 165 5,134 (3,636) (1,498) – 244 409 304
Corporate 306 (99) 207 470 (211) (187) 72 143 422 592
Amortised cost – loans and advances
Off balance sheet contingent
liabilities and commitments
Fair value through OCI –
available for sale (AFS) investmentsa
As at 31 December Gross
£m
Impairment
allowances
£m
2014 total
£m
2013 total
£m
2014
£m
2013
£m
Cost
£m
AFS reserve
£m
2014 total
£m
2013 total
£m
Sovereign – – – – – 21 3 24 157
Financial institutions 22 (1) 21 50 200 361 52 3 55 63
Residential mortgages 13,679 (149) 13,530 15,295 18 25 ––––
Corporate 797 (123) 674 858 2,806 2,069 34 (2) 32 29
Other retail lending 1,248 (134) 1,114 1,881 9 669 ––––
Total net exposure to Italy reduced 12% to £21,006m primarily reflecting a £1,765m decrease in residential mortgages as the existing portfolio
paid down and new business lending was reduced.
Sovereign
Q Increase of £160m to £1,716m driven by increases in net derivative positions.
Residential mortgages
Q £13,530m (2013: £15,295m) secured on residential property with average balance weighted marked to market LTVs of 60% (2013: 60%) and
CRL coverage of 24% (2013: 24%); and
Q 90 day arrears and gross charge-off rates remained stable at 1.2% (2013: 1.1%) and 0.7% (2013: 0.7%) respectively.
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.