Barclays 2015 Annual Report Download - page 152

150 I Barclays PLC Annual Report 2015 home.barclays/annualreport
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
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 2015
Personal & Corporate Banking 137,212 713 136,499 1,591 1.2 199 15
Africa Banking 17,412 539 16,873 859 4.9 273 157
Barclaycard 43,346 1,835 41,511 1,601 3.7 1,251 289
Barclays Core 197,970 3,087 194,883 4,051 2.0 1,723 87
Barclays Non-Core 11,610 369 11,241 845 7.3 85 73
Total Group Retail 209,580 3,456 206,124 4,896 2.3 1,808 86
Investment Bank 92,321 83 92,238 241 0.3 47 5
Personal & Corporate Banking 87,855 914 86,941 1,794 2.0 182 21
Africa Banking 14,955 235 14,720 541 3.6 80 53
Head Office and Other Operations 5,922 – 5,922 – – – –
Barclays Core 201,053 1,232 199,821 2,576 1.3 309 15
Barclays Non-Core 34,854 233 34,621 345 1.0 (20) (6)
Total Group Wholesale 235,907 1,465 234,442 2,921 1.2 289 12
Group Total 445,487 4,921 440,566 7,817 1.8 2,097 47
Traded loans 2,474 n/a 2,474
Loans and advances designated at fair value 17,913 n/a 17,913
Loans and advances held at fair value 20,387 n/a 20,387
Total loans and advances 465,874 4,921 460,953
As at 31 December 2014
Personal & Corporate Bankingb,c 136,544 766 135,778 1,733 1.3 215 16
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 196,254 3,262 192,992 4,591 2.3 1,693 86
Barclays Non-Core 20,259 428 19,831 1,209 6.0 151 75
Total Group Retail 216,513 3,690 212,823 5,800 2.7 1,844 85
Investment Bank 106,377 44 106,333 71 0.1 (14) (1)
Personal & Corporate Bankingb88,192 873 87,319 2,112 2.4 267 30
Africa Banking 16,312 246 16,066 665 4.1 54 33
Head Office and Other Operations 3,240 – 3,240 – – – –
Barclays Core 214,121 1,163 212,958 2,848 1.3 307 14
Barclays Non-Core 44,699 602 44,097 841 1.9 53 12
Total Group Wholesale 258,820 1,765 257,055 3,689 1.4 360 14
Group Total 475,333 5,455 469,878 9,489 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
Loans and advances at amortised cost net of impairment decreased to £440.6bn (2014: £469.9bn):
 Non-Core decreased £18.1bn to £45.9bn driven by reclassification of Portuguese and Italian loans now held for sale and a reduction in Europe
Retail driven by a run-off of assets
 Investment Bank decreased by £14.1bn to £92.2bn reflecting a decrease in cash collateral balances and a decrease in settlement balances as a
result of reduced trading volumes
 Barclaycard increased by £5.0bn to £41.5bn as a result of business growth across the portfolio.
CRLs decreased £1.7bn to £7.8bn primarily due to a reduction of £0.9bn in Non-Core relating to the reclassification of the Portuguese business as
held for sale and improved economic conditions for Corporate portfolios.
Loan impairment charges improved 5% to £2,097m, with a loan loss rate of 47bps (2014: 46bps). This reflected higher recoveries in Europe and the
sale of the Spanish business in Non-Core, lower impairments in PCB due to the benign economic environment in the UK resulting in lower default
rates and charges, partially offset by increased impairment in Barclaycard driven by growth in the business and updates to impairment model
methodologies. Loan loss rates for Africa Banking increased reflecting lower year-end loans and advances balances due to Rand depreciation.
Notes
a Excluding impairment charges on available for sale investments and reverse repurchase agreements.
b UK Business Banking has been reclassified from Retail to Wholesale in line with how the business is now managed. 2014 figures have been revised to reflect this, with net loans and
advances of £8.4bn, credit risk loans of £482m and impairment charges of £48m reclassified to Wholesale.
c 2014 PCB Credit Risk Loans have been revised by £151m to align the methodology for determining arrears categories with other Home Finance risk disclosures.
Risk performance
Credit risk