Barclays 2015 Annual Report Download - page 167

home.barclays/annualreport Barclays PLC Annual Report 2015 I 165
Retail forbearance programmes
Forbearance on the Group’s principal retail portfolios in the UK, US and South Africa is presented below. The principal portfolios listed below account
for 70% (2014: 83%) of total retail forbearance balances.
Analysis of key portfolios in forbearance programmes
Balances on forbearance programmes Marked
to market
LTV of
forbearance
balances:
balance
weighted
%
Marked
to market
LTV of
forbearance
balances:
valuation
weighted
%
Impairment
allowances
marked
against
balances on
forbearance
programmes
£m
Total
balances on
forbearance
programmes
coverage
ratio
%
Of which:
Past due of which:
Up-to-date
£m
1-90 days
past due
£m
91 or more
days past
due
£m
Total
£m
% of gross
loans and
advances
%
As at 31 December 2015
Home loans
PCB – UKa 445 0.3 211 177 57 48.0 34.1 4 0.8
Africa Banking – South Africa 125 1.3 50 64 11 67.5 53.6 7 5.5
Credit cards
UK 448 2.4 414 31 3 n/a n/a 159 35.5
US 133 0.8 92 30 11 n/a n/a 30 22.7
Unsecured loans
UK 85 1.6 59 22 3 n/a n/a 21 24.6
As at 31 December 2014
Home loans
PCB – UK 522 0.4 257 206 59 52.1 36.8 3 0.6
Africa Banking – South Africa 207 1.8 95 99 13 71.1 57.4 13 6.5
Credit cards
UK 724 4.3 679 41 4 n/a n/a 324 44.8
US 98 0.7 67 22 9 n/a n/a 22 22.1
Unsecured loans
UK 121 2.4 83 33 5 n/a n/a 25 20.9
Loans in forbearance in the principal home loans portfolios decreased 22% to £570m (2014: £729m).
 PCB – UK (home loans): Balances under forbearance decreased 15% to £445m, principally due to an update to the entry criteria, and fewer
customers requiring forbearance in a stable macroeconomic environment. Total past due balances reduced 12% to £234m in line with falling total
balances under forbearance.
 Africa Banking – South Africa (home loans): Reduction in forbearance balances to £125m (2014: £207m) was due to enhanced qualification
criteria which resulted in a more appropriate and sustainable programme for customers, and depreciation of the Rand.
Forbearance balances on principal credit cards, overdrafts and unsecured loan portfolios decreased by 29% to £666m.
 UK Cards: The reduction in forbearance balances was driven by the implementation of enhanced qualification criteria and asset sales. Balances in
arrears and coverage ratio reduced in line with balance reduction.
 US Cards: The increase in balances on forbearance programmes was in line with asset growth on the US portfolio. Balances in arrears remained
low as a proportion of the total and coverage was stable.
Forbearance by type
Home loans – Barclays Core portfolios
UK South Africa
As at 31 December 2015
£m
2014
£m
2015
£m
2014
£m
Interest only conversion 94 100 – –
Interest rate reduction – – 1 1
Payment concession 103 106 97 161
Term extension 248 316 28 45
Total 445 522 125 207
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. (2014 MCA balances: £1.3bn).
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