Barclays 2015 Annual Report Download - page 158

156 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Risk review
Home loans principal portfolios – distribution of balances by LTVa
Distribution of
balances
Impairment coverage
ratio
Non-performing
proportion of
outstanding balances
Non-performing
balances impairment
coverage ratio
Recoveries proportion
of outstanding
balances
Recoveries
impairment coverage
ratio
As at 31 December 2015
%
2014
%
2015
%
2014
%
2015
%
2014
%
2015
%
2014
%
2015
%
2014
%
2015
%
2014
%
PCB UK
<=75% 92.1 90.2 0.1 – 0.6 0.6 4.7 2.8 0.4 0.3 6.8 4.6
>75% and <=80% 3.4 4.2 0.2 0.2 1.0 1.2 13.5 6.9 0.8 0.8 15.7 9.2
>80% and <=85% 2.1 2.3 0.3 0.2 1.0 1.4 16.7 8.9 0.7 0.9 21.4 11.3
>85% and <=90% 1.4 1.4 0.3 0.4 1.3 1.7 15.7 13.0 1.0 1.3 17.8 15.9
>90% and <=95% 0.6 1.0 0.6 0.4 1.8 1.9 25.7 13.7 1.5 1.3 28.2 17.8
>95% and <=100% 0.2 0.4 1.3 1.0 4.0 2.9 25.4 21.4 3.5 2.2 27.9 26.4
>100% 0.2 0.5 3.4 2.4 7.0 6.0 35.6 28.6 5.6 4.3 41.2 36.1
Africa Banking –
South Africa
<=75% 76.1 74.6 0.7 0.7 0.6 0.5 13.6 16.2 1.8 1.9 17.9 20.4
>75% and <=80% 6.8 7.7 1.6 1.5 1.0 0.9 18.4 20.0 3.3 3.0 21.4 23.5
>80% and <=85% 5.3 5.9 1.9 2.0 1.0 1.1 19.2 21.1 3.5 4.2 21.1 23.7
>85% and <=90% 3.8 4.3 2.3 2.5 0.9 1.0 20.2 22.3 4.8 5.1 21.8 24.3
>90% and <=95% 2.6 2.5 3.7 4.3 1.2 1.4 23.8 26.3 5.9 8.7 24.2 27.6
>95% and <=100% 1.8 1.5 4.8 5.4 1.3 1.5 25.6 23.4 7.8 11.6 26.0 24.1
>100% 2.8 3.5 14.1 16.4 1.9 1.9 29.7 32.5 26.7 37.1 29.7 32.9
Home loans principal portfolios – Average LTV
PCB – UK Africa Banking – South Africa
As at 31 December 2015
%
2014
%
2015
%
2014
%
Portfolio marked to market LTV (%):
Balance weighted 49.2 51.6 58.4 59.9
Valuation weighted 37.3 39.8 39.1 40.2
Performing balances (%):
Balance weighted 48.8 51.5 57.5 58.6
Valuation weighted 37.3 39.7 38.6 39.5
Non-performing balances (%):
Balance weighted 56.5 62.1 79.3 87.0
Valuation weighted 45.1 49.8 59.3 64.7
For >100% LTVs:
Balances (£m) 310 641 257 390
Marked to market collateral (£m) 260 558 218 324
Average LTV: balance weighted (%) 123.0 120.9 121.1 124.2
Average LTV: valuation weighted (%) 118.5 114.8 117.7 120.3
% of balances in recoveries 5.6 4.4 26.6 37.1
Balance weighted LTV in the UK reduced to 49.2% (2014: 51.6%) due to an increase in average house prices, particularly in London and the South
East. The overall non-performing impairment coverage in the UK remained flat year on year but increased across LTV ranges, due to granular
alignment of management adjustments across portfolio segments.
PCB – UK: The house price appreciation resulted in a 52% reduction in home loans that have LTV >100% to £310m (2014: £641m).
Africa Banking – South Africa: Balances with >100% LTV reduced 34% to £257m (2014: £390m), primarily due to a reduction in the size of the
recovery book as older and higher risk loans were written off, in addition to the depreciation of the Rand.
Home loans principal portfolios – new lending
PCB – UK Africa Banking – South Africa
As at 31 December 2015 2014 2015 2 014
New bookings (£m) 18,812 20,349 1,621 1,590
New mortgages proportion above 85% LTV (%) 8.2 6.6 40.8 33.5
Average LTV on new mortgages: balance weighted (%) 63.9 64.8 75.7 74.8
Average LTV on new mortgages: valuation weighted (%) 55.0 57.0 66.9 65.4
PCB – UK: New lending during 2015 reduced by 8%, reflecting an unchanged risk profile against heightened market activity in the prime residential
segment.
Africa Banking – South Africa: The proportion of new home loans with LTV above 85% increased to 40.8% (2014: 33.5%) due to a revised strategy
which allowed a greater proportion of higher LTV loans to be booked for lower risk customers.
Note
a Portfolio marked to market based on the most updated valuation including recoveries balances. Updated valuations reflect the application of the latest house price index available in
the country as at 31 December 2015.
Note
a Portfolio marked to market based on the most updated valuation including recoveries balances. Updated valuations reflect the application of the latest house price index available in
the country as at 31 December 2015.
Risk performance
Credit risk