|
Potential credit risk loans and coverage ratios |
CRLs |
PPLs |
PCRLs | |||||||
|
As at 31 December |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||
| ||||||||||
|
3,790 |
4,294 |
221 |
260 |
4,011 |
4,554 | |||||
|
Credit cards, unsecured and other retail lending |
6,626 |
8,277 |
364 |
465 |
6,990 |
8,742 | ||||
|
Retail |
10,416 |
12,571 |
585 |
725 |
11,001 |
13,296 | ||||
|
Wholesale (excluding loan to Protium) |
10,926 |
11,751 |
1,387 |
1,970 |
12,313 |
13,721 | ||||
|
Loan to Protiuma |
– |
7,560 |
– |
– |
– |
7,560 | ||||
|
Wholesale |
10,926 |
19,311 |
1,387 |
1,970 |
12,313 |
21,281 | ||||
|
Group (excluding loan to Protium) |
21,342 |
24,322 |
1,972 |
2,695 |
23,314 |
27,017 | ||||
|
Group |
21,342 |
31,882 |
1,972 |
2,695 |
23,314 |
34,577 | ||||
|
|
|
|
|
|
|
| ||||
|
|
Impairment allowance |
CRL coverage |
PCRL coverage | |||||||
|
As at 31 December |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||
|
Home loans |
834 |
854 |
22.0 |
19.9 |
20.8 |
18.8 | ||||
|
Credit cards, unsecured and other retail lending |
4,540 |
6,029 |
68.5 |
72.8 |
64.9 |
69.0 | ||||
|
Retail |
5,374 |
6,883 |
51.6 |
54.8 |
48.9 |
51.8 | ||||
|
Wholesale (excluding loan to Protium) |
5,223 |
5,017 |
47.8 |
42.7 |
42.4 |
36.6 | ||||
|
Loan to Protiuma |
– |
532 |
– |
7.0 |
– |
7.0 | ||||
|
Wholesale |
5,223 |
5,549 |
47.8 |
28.7 |
42.4 |
26.1 | ||||
|
Group (excluding loan to Protium) |
10,597 |
11,900 |
49.7 |
48.9 |
45.5 |
44.0 | ||||
|
Group |
10,597 |
12,432 |
49.7 |
39.0 |
45.5 |
36.0 | ||||
To facilitate comparison between periods, the analysis below is based on Group (excluding loan to Protium) as the Protium loan was repaid in 2011.
Credit Risk Loans (CRLs)
CRLs fell 12% to £21,342m. CRL balances in the wholesale portfolio decreased 7% primarily due to falls in:
- Barclays Corporate, where lower balances in the UK reflected the high level of write-offs and balance reductions. Balances in Europe remained stable with higher balances in Portugal and Italy reflecting deteriorating credit conditions offset by lower balances in Spain; and
- Africa RBB, principally due to the depreciation in the value of the Rand against Sterling, repayments and a slowdown in new CRLs.
CRL balances in retail portfolios decreased 17%, reflecting the write-off of balances following a reduction in the period between accounting charge-off and write-off from 18 months to 12-months across the majority of unsecured portfolios, as well as lower rate of inflows, debt sales and customer repayments.
The main exception was Europe RBB where the overall balance was largely unchanged as decreases in Spain, principally resulting from a series of unsecured portfolio sales in 2011, were offset by increases, mainly in the mortgage portfolios as a consequence of higher delinquent balances in deteriorating economic conditions.
Potential Problem Loans (PPLs)
PPLs fell 27% to £1,972m. PPL balances in the wholesale portfolio decreased 30% primarily due to improved credit grading of a small number of Barclays Capital customers. PPL balances in the retail portfolio decreased 19% reflecting lower balances in early delinquency arrears across the majority of businesses.
Coverage ratios
The CRL coverage ratio increased slightly to 49.7% (2010: 48.9%) reflecting an increase in the wholesale portfolio ratio to 47.8% (2010: 42.7%) and a decrease in the retail portfolio ratio to 51.6% (2010: 54.8%).
The PCRL coverage ratio increased slightly to 45.5% (2010: 44.0%) reflecting an increase in the wholesale portfolio ratio to 42.4% (2010: 36.6%) and a decrease in the retail portfolio ratio to 48.9% (2010: 51.8%).
