Barclays 2015 Annual Report Download - page 154

152 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Risk review
Credit risk concentrations by geography (audited)
As at 31 December 2014
United
Kingdom
£m
Europe
£m
Americas
£m
Africa and
Middle East
£m
Asia
£m
Total
£m
On-balance sheet:
Cash and balances at central banks 13,770 12,224 9,365 2,161 2,175 39,695
Items in the course of collection from other banks 644 158 – 408 – 1,210
Trading portfolio assets 12,921 15,638 31,061 2,498 6,572 68,690
Financial assets designated at fair value 21,274 1,591 3,986 2,999 501 30,351
Derivative financial instruments 133,400 147,421 129,771 2,332 26,985 439,909
Loans and advances to banks 7,472 12,793 13,227 3,250 5,369 42,111
Loans and advances to customers 241,543 60,018 76,561 39,241 10,404 427,767
Reverse repurchase agreements and other similar secured lending 20,551 22,655 81,368 928 6,251 131,753
Available for sale debt securities 22,888 33,368 22,846 4,770 1,667 85,539
Other assets 837 – 232 483 128 1,680
Total on-balance sheet 475,300 305,866 368,417 59,070 60,052 1,268,705
Off-balance sheet:
Acceptances, endorsements and other contingent liabilities
Contingent liabilities 10,222 2,542 5,517 2,757 225 21,263
Documentary credits and other short-term trade-related transactions 851 36 – 186 18 1,091
Forward starting reverse repurchase agreements 4,462 5,936 701 2 2,755 13,856
Standby facilities, credit lines and other commitments 108,025 34,886 116,343 14,911 2,150 276,315
Total off-balance sheet 123,560 43,400 122,561 17,856 5,148 312,525
Total 598,860 349,266 490,978 76,926 65,200 1,581,230
Group exposures to specific countries (audited)
The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to monitor events closely while
taking coordinated steps to mitigate the risks associated with the challenging economic environment. These contingency plans have been reviewed
and refreshed to ensure they remain effective.
The following table shows Barclays’ exposure to specific Eurozone countries monitored internally as being higher risk and thus being the subject of
particular management focus. The basis of preparation is consistent with that described in the 2014 Annual Report.
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.
During 2015, the Group’s net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece decreased by £17.2bn to £26.1bn
primarily due to a £13.4bn reduction in Spain following the sale of the Spanish business. The £7.0bn decrease in residential mortgages relates
predominantly to Portuguese and Italian loans reclassified to held for sale within the Financial institutions category.
As at 31 December 2015, the local net funding deficit in Italy was €3.8bn (2014: €9.9bn) and the deficit in Portugal was €1.4bn (2014: €1.9bn).
The net funding surplus in Spain was €0.2bn (2014: €4.3bn).
Net exposure by country and counterparty (audited)
Sovereign
£m
Financial
institutions
£m
Corporate
£m
Residential
mortgages
£m
Other retail
lending
£m
Net
on-balance
sheet
exposure
£m
Gross
on-balance
sheet
exposure
£m
Contingent
liabilities and
commitments
£m
As at 31 December 2015
Spain 90 623 1,176 7 311 2,207 7,944 2,073
Italy 1,708 2,283 1,039 9,505 675 15,210 20,586 2,701
Portugal 87 3,346 152 6 700 4,291 4,555 1,299
Ireland 9 2,824 1,282 37 51 4,203 7,454 2,673
Cyprus 29 6 59 16 46 156 391 1
Greece 1 3 14 4 3 25 975 –
Total 1,924 9,085 3,722 9,575 1,786 26,092 41,905 8,747
As at 31 December 2014
Spain 108 14,043 1,149 12 248 15,560 24,873 2,863
Italy 1,716 485 1,128 13,530 1,114 17,973 25,967 3,033
Portugal 105 7 531 2,995 1,207 4,845 5,050 1,631
Ireland 37 3,175 1,453 43 50 4,758 9,445 2,070
Cyprus 28 12 61 6 16 123 707 26
Greece 1 11 15 – – 27 1,279 –
Total 1,995 17,733 4,337 16,586 2,635 43,286 67,321 9,623
Other country risks being closely monitored include exposures to Russia and China.
Net exposure to Russia of £1.4bn (2014: £1.9bn) largely consists of retail loans and advances of £1.0bn (2014: £0.6bn). The retail loans and advances
are predominantly secured against property in the UK and south of France. Gross exposure to Russia was £2.5bn (2014: £3.8bn) including derivative
assets with financial institutions. The gross exposure is mitigated by offsetting derivative liabilities.
Net exposure to China of £3.7bn (2014: £4.8bn) largely consists of loans and advances (mainly cash collateral and settlement balances) to sovereign
Risk performance
Credit risk