Barclays 2015 Annual Report Download - page 163

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Wholesale Personal and Corporate Banking
The table below details Personal and Corporate Banking 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
Banks 3,593 – 3,593 – – – –
Other financial institutions 6,321 16 6,305 46 0.7 2 3
Manufacturing 6,762 37 6,725 51 0.8 2 3
Construction 3,267 38 3,229 47 1.4 1 3
Property 15,309 166 15,143 645 4.2 2 1
Government and central bank 1,304 – 1,304 – – – –
Energy and water 2,216 79 2,137 103 4.6 82 370
Wholesale and retail distribution and leisure 11,333 165 11,168 261 2.3 (8) (7)
Business and other services 16,536 223 16,313 271 1.6 54 33
Home loansa 5,730 20 5,710 142 2.5 – –
Cards, unsecured loans and other personal lendinga 8,714 1 8,713 14 0.2 4 5
Other 6,770 169 6,601 214 3.2 43 64
Total 87,855 914 86,941 1,794 2.0 182 21
As at 31 December 2014b
Banks 5,507 – 5,507 – – 1 2
Other financial institutions 5,357 13 5,344 85 1.6 26 49
Manufacturing 7,174 47 7,127 106 1.5 – –
Construction 3,094 40 3,054 58 1.9 7 21
Property 15,480 194 15,286 833 5.4 36 23
Government and central bank 1,187 – 1,187 – – – –
Energy and water 1,950 2 1,948 2 0.1 3 16
Wholesale and retail distribution and leisure 10,928 175 10,753 342 3.1 56 52
Business and other services 14,160 177 13,983 344 2.4 54 38
Home loansa 6,864 36 6,828 96 1.4 34 50
Cards, unsecured loans and other personal lending 9,628 60 9,568 16 0.2 22 23
Other 6,863 129 6,734 229 3.3 28 40
Total 88,192 873 87,319 2,111 2.4 267 30
Wholesale PCB loans and advances and CRLs remained broadly stable at £87.9bn (2014: £88.2bn) and £1.8bn (2014: £2.1bn) respectively.
Loan impairment charges improved 32% to £182m due to the benign economic environment in the UK. This led to a decrease in the loan loss rate to
21bps (2014: 30bps).
Analysis of Wholesale balances on watch list
Wholesale accounts that are deemed to contain heightened levels of risk are recorded on a graded watch list comprising four categories graded in
line with the perceived severity of the risk attached to the lending, and its probability of default:
 Category 1: a temporary classification for performing obligors who exhibit some unsatisfactory features
 Category 2: performing obligors where some doubt exists, but the belief is that the obligor can meet obligations over the short term
 Category 3: obligors where definite concern exists with well defined weaknesses and failure in the short term could arise should further
deterioration occur
 Category 4: non-performing obligors, insolvent or regulatory default. High risk of loss.
Where an obligor’s financial health gives grounds for concern, it is immediately placed into the appropriate category. For more information please see
page 111 in Barclays PLC 2015 Pillar 3 Report.
Notes
a Included in the above analysis are Wealth and Investment Management exposures measured on an individual customer exposure basis.
b UK Business Banking has been reclassified from Retail to Wholesale in line with how the business is now managed. 2014 figures have been restated to reflect this, with net loans and
advances of £8.4bn, credit risk loans of £482m and impairment charges of £48m being reclassified to Wholesale.
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