Barclays 2015 Annual Report Download - page 162

160 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Risk review
Investment Bank
Analysis of loans and advances at amortised cost
Gross L&A
£m
Impairment
allowance
£m
L&A net of
impairment
£m
Credit risk
loans
£m
CRLs % of
gross L&A
%
Loan
impairment
charges
£m
Loan loss
rates
bps
As at 31 December 2015
Loans and advances to banks
Interbank lending 10,174 – 10,174 – – – –
Cash collateral and settlement balances 7,259 – 7,259 – – – –
Loans and advances to customers
Wholesale lending 31,451 83 31,368 241 0.8 47 15
Cash collateral and settlement balances 43,437 – 43,437 – – – –
Total 92,321 83 92,238 241 0.3 47 5
As at 31 December 2014
Loans and advances to banks
Interbank lending 10,275 – 10,275 – – (3) (3)
Cash collateral and settlement balances 9,626 – 9,626 – – – –
Loans and advances to customers
Wholesale lending 28,436 44 28,392 71 0.2 (11) (4)
Cash collateral and settlement balances 58,040 – 58,040 – – – –
Total 106,377 44 106,333 71 0.1 (14) (1)
Non-Core Wholesale
The table below details Non-Core loans and advances which form part of the Wholesale risk portfolio.
Analysis of loans and advances at amortised cost
Gross L&A
£m
Impairment
allowance
£m
L&A net of
impairment
£m
Credit risk
loans
£m
CRLs % of
gross L&A
%
Loan
impairment
charges
£m
Loan loss
rates
bps
As at 31 December 2015
Loans and advances to banks
Interbank lending 258 – 258 – – (7) (271)
Cash collateral and settlement balances 10,131 – 10,131 – – – –
Loans and advances to customers
Wholesale lending 5,277 233 5,044 345 6.5 (13) (25)
Cash collateral and settlement balances 19,188 – 19,188 – – – –
Total 34,854 233 34,621 345 1.0 (20) (6)
As at 31 December 2014
Loans and advances to banks
Interbank lending 373 – 373 – – – –
Cash collateral and settlement balances 11,622 – 11,622 – – – –
Loans and advances to customers
Wholesale lending 8,978 602 8,376 841 9.4 53 59
Cash collateral and settlement balances 23,726 – 23,726 – – – –
Total 44,699 602 44,097 841 1.9 53 12
Wholesale lending decreased £3.7bn to £5.3bn driven by the reclassification of Portuguese loans now held for sale and rundown of legacy loan
portfolios. Wholesale loans predominantly relate to capital equipment loans, legacy Collateralised Loan Obligations (CLO) and legacy Collateralised
Debt Obligations (CDO).
Loan impairment charges improved £73m to a release of £20m reflecting higher recoveries in Europe and the sale of the Spanish business.
CRLs decreased to £345m (2014: £841m) as a result of the reclassification of Portuguese loans now held for sale and continued rundown of the
Non-Core Investment Bank portfolio.
Risk performance
Credit risk