Barclays 2015 Annual Report Download - page 166

164 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Risk review
Analysis of loans on concession programmes
Re-age activity
Re-age is applicable only to revolving products where a minimum due payment is required. Re-age refers to returning of a delinquent account to up
to date status without collecting the full arrears (principal, interest and fees).
The following are the principal portfolios in which re-age activity occurs.
Principal portfolios – core portfolios
New re-ages in the year
New re-ages as proportion
of total outstanding
30 day arrears at
12 months since re-age
As at 31 December 2015
£m
2014
£m
2015
%
2014
%
2015
%
2014
%
UK cards 117 163 0.7 1.0 40.5 43.4
US cards 36 31 0.2 0.2 47.2 46.8
UK cards: The reduction of new to re-ages in the year is due to changes in operational and qualification criteria resulting in reduced volume of
accounts qualifying for re-age. Enhanced criteria has also led to lower 30 day arrears at 12 months after re-age.
US cards: The increase in new to re-ages is in line with portfolio growth, the ratio as a proportion of total outstanding remained stable at 0.2%.
Re-age activity in South Africa and Europe card portfolios are not considered to be material. For further detail on policy relating to the re-ageing of
loans, please refer to page 116 of the Barclays PLC 2015 Pillar 3 Report.
Forbearance
Analysis of forbearance programmes
Balances Impairment allowance Impairment coverage
As at 31 December 2015
£m
2014
£m
2015
£m
2014
£m
2015
%
2014
%
Personal and Corporate Bankinga 589 931 33 63 5.6 6.8
Africa Banking 209 299 29 45 13.8 15.1
Barclaycard 729 972 247 394 33.9 40.5
Barclays Core 1,527 2,202 309 502 20.2 22.8
Barclays Non-Core 246 419 20 49 8.3 11.7
Total retail 1,773 2,621 329 551 18.5 21.0
Investment Bank 210 106 4 10 2.1 9.4
Personal and Corporate Banking 1,764 1,590 253 225 14.3 14.2
Africa Banking 228 132 17 7 7.5 5.3
Barclays Core 2,202 1,828 274 242 12.4 13.2
Barclays Non-Core 230 651 117 271 50.7 41.6
Total wholesale 2,432 2,479 391 513 16.1 20.7
Group total 4,205 5,100 720 1,064 17.1 20.9
Balances on forbearance programmes reduced 18% to £4.2bn (2014: £5.1bn) driven primarily by; (i) fewer customers requiring forbearance as
macroeconomic conditions improved; and (ii) the ongoing impact of enhanced qualification criteria. The decrease in impairment coverage to 17.1%
(2014: 20.9%) reflected coverage reduction across both the wholesale and retail portfolios.
Retail balances on forbearance reduced by 32% to £1.8bn and reflected a decrease across all businesses.
 PCB: Migration of Business Banking from Retail to Corporate amounting to £239m.
 Barclaycard: Primarily due to multiple asset sales through the year and updated entry criteria for forbearance programmes, which reduced inflows
in the UK cards portfolio.
 Africa Banking: Updated qualifying criteria in South African home loans and depreciation of the Rand.
Wholesale balances on forbearance reduced by 2% to £2.4bn as the removal of assets following the sale of the Spanish corporate business was
partially offset by the migration of Business Banking forborne assets into the UK Corporate Bank. Excluding these movements, the overall level of
forborne balances was broadly stable.
See over for more information on these portfolios.
Note
a The forbearance definition has been tightened during the year based on observed performance to more accurately reflect signs of financial distress. As a result an element of the
MCA population has been reclassified as high risk instead of forbearance. 2014 forbearance balances have been restated for a like for like comparison.
Risk performance
Credit risk