Barclays 2015 Annual Report Download - page 171

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Potential credit risk loans (PCRLs) and coverage ratios
The Group reports potentially and actually impaired loans as PCRLs. PCRLs comprise two categories of loans: credit risk loans (CRLs) and potential
problem loans (PPLs). For further information on definitions of CRLs and PPLs refer to the identifying potential credit risk loans section on page 112
of the Barclays PLC 2015 Pillar 3 Report.
Potential credit risk loans and coverage ratios by business
CRLs PPLs PCRLs
As at 31 December 2015
£m
2014
£m
2015
£m
2014
£m
2015
£m
2014
£m
Personal & Corporate Bankinga 1,591 1,733 263 264 1,854 1,997
Africa Banking 859 1,093 154 161 1,013 1,254
Barclaycard 1,601 1,765 249 227 1,850 1,992
Barclays Core 4,051 4,591 666 652 4,717 5,243
Barclays Non-Core 845 1,209 13 26 858 1,234
Total Group retail 4,896 5,800 679 678 5,575 6,477
Investment Bank 241 71 450 107 691 178
Personal & Corporate Bankinga 1,794 2,112 567 614 2,361 2,726
Africa Banking 541 665 245 94 786 759
Barclays Core 2,576 2,848 1,262 815 3,838 3,663
Barclays Non-Core 345 841 109 119 454 960
Total Group wholesale 2,921 3,689 1,371 934 4,292 4,623
Group total 7,817 9,489 2,050 1,612 9,867 11,100
Impairment allowance CRL coverage PCRL coverage
As at 31 December 2015
£m
2014
£m
2015
%
2014
%
2015
%
2014
%
Personal & Corporate Bankinga,b 713 766 44.8 44.2 38.5 38.4
Africa Banking 539 681 62.7 62.3 53.2 54.3
Barclaycard 1,835 1,815 114.6 102.8 99.2 91.1
Barclays Core 3,087 3,262 76.2 71.1 65.4 62.2
Barclays Non-Core 369 428 43.7 35.4 43.0 34.7
Total Group retail 3,456 3,690 70.6 63.6 62.0 57.0
Investment Bank 83 44 34.4 62.0 12.0 24.7
Personal & Corporate Bankinga 914 873 50.9 41.3 38.7 32.0
Africa Banking 235 246 43.4 37.0 29.9 32.4
Barclays Core 1,232 1,163 47.8 40.8 32.1 31.7
Barclays Non-Core 233 602 67.5 71.6 51.3 62.7
Total Group wholesale 1,465 1,765 50.2 47.8 34.1 38.2
Group total 4,921 5,455 63.0 57.5 49.9 49.1
 CRLs decreased 17.6% to £7.8bn, with the Group’s CRL coverage ratio increasing to 63.0% (2014: 57.5%).
 CRLs in retail portfolios have decreased 15.6% to £4.9bn. This is primarily driven by Non-Core as a result of the sale of the Portuguese business
and rundown of assets in Europe. Another driver of the decrease is the Africa retail portfolios reducing as a result of improved recoveries. Retail CRL
coverage increased to 70.6% (2014: 63.6%), due to the decrease in the retail CRL portfolio.
 Wholesale CRL portfolios decreased by 20.8% to £2.9bn. This is primarily driven by reductions in Non-Core as a result of the sale of the
Portuguese corporate loans and continued rundown of the Non-Core Investment Bank portfolio; and within PCB due to the improved economic
environment. Investment Bank CRLs increased £170m to £241m predominantly relating to the Oil and Gas sector. Wholesale CRL coverage
increased to 50.2% (2014: 47.8%), driven by the decrease in CRLs in 2015.
Notes
a UK Business Banking has been reclassified from Retail to Wholesale in line with how the business is now managed.
b 2014 PCB CRLs, PPLs and PCRLs have been revised by £151m, £121m and £273m respectively to align methodology for determining arrears categories with other Home Finance risk
disclosures.
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