Barclays plc - Annual Report 2008 - Financial statements - The Group
Barclays plc - Annual Report 2008 - Financial statements - The Group
Barclays plc - Annual Report 2008 - Financial statements - The Group
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47 Credit risk (continued)<br />
Loans and advances that are past due but not individually impaired<br />
An age analysis of loans and advances that are past due but not individually impaired is set out below.<br />
For the purposes of this analysis an asset is considered past due and included below when any payment due under strict contractual terms is received late<br />
or missed. <strong>The</strong> amount included is the entire financial asset, not just the payment, of principal or interest or both, overdue.<br />
<strong>The</strong> table below provides a breakdown of total financial assets past due but not individually impaired. In general, retail and wholesale loans fall into this category for two<br />
separate reasons. Retail loans and advances to customers may come under this category because the impairment allowance on such loans is calculated on a collective<br />
– not individual – basis. This reflects the homogenous nature of the assets, which allows statistical techniques to be used, rather than individual assessment.<br />
In contrast, some loans to wholesale and corporate customers and banks may come under this category because of instances where a payment on a loan<br />
is past due without requiring an individual impairment allowance. For example, an individual impairment allowance will not be required when a loss is not<br />
expected due to a corporate loan being fully secured or collateralised. As a result, it is past due but not individually impaired.<br />
<strong>2008</strong><br />
Past due Past due Past due Past due Past due Of which<br />
up to 1 1-2 2-3 3-6 6 months Credit<br />
month months months months and over Total Risk Loans<br />
£m £m £m £m £m £m £m<br />
<strong>Financial</strong> assets designated at fair value held on own account:<br />
Loans and advances 315 147 81 82 250 875 –<br />
Loans and advances to banks 1,044 1 – – – 1,045 –<br />
Loans and advances to customers:<br />
Residential mortgage loans 4,420 1,568 630 713 82 7,413 795<br />
Credit card receivables 293 224 150 291 468 1,426 759<br />
Other personal lending 220 204 273 338 307 1,342 645<br />
Wholesale and corporate loans and advances 6,229 540 847 477 214 8,307 691<br />
Finance lease receivables 130 53 39 63 – 285 63<br />
Total loans and advances to customers 11,292 2,589 1,939 1,882 1,071 18,773 2,953<br />
Total financial assets past due but not individually impaired 12,651 2,737 2,020 1,964 1,321 20,693 2,953<br />
2007<br />
Past due Past due Past due Past due Past due Of which<br />
up to 1 1-2 2-3 3-6 6 months Credit<br />
month months months months and over Total Risk Loans<br />
£m £m £m £m £m £m £m<br />
<strong>Financial</strong> assets designated at fair value held on own account:<br />
Loans and advances 261 4 1 24 67 357 –<br />
Loans and advances to banks 2,031 305 186 – – 2,522 –<br />
Loans and advances to customers:<br />
Residential mortgage loans 3,609 1,349 456 215 184 5,813 399<br />
Credit card receivables 558 155 107 205 1 1,026 51<br />
Other personal lending 271 199 193 152 205 1,020 181<br />
Wholesale and corporate loans and advances 6,970 622 267 62 66 7,987 128<br />
Finance lease receivables 75 28 18 38 – 159 38<br />
Total loans and advances to customers 11,483 2,353 1,041 672 456 16,005 797<br />
Total financial assets past due but not individually impaired 13,775 2,662 1,228 696 523 18,884 797<br />
Loans and advances individually assessed as impaired<br />
An analysis of financial assets individually assessed as impaired is as follows:<br />
3<br />
<strong>Financial</strong> <strong>statements</strong><br />
<strong>2008</strong> 2007<br />
Original Revised Original Revised<br />
carrying Impairment carrying carrying Impairment carrying<br />
amount allowance amount amount allowance amount<br />
£m £m £m £m £m £m<br />
Loans and advances to banks individually impaired 48 (44) 4 – – –<br />
Loans and advances to customers:<br />
Residential mortgage loans 1,608 (227) 1,381 615 (88) 527<br />
Credit card receivables 1,231 (727) 504 1,517 (725) 792<br />
Other personal lending 2,040 (1,250) 790 1,641 (1,030) 611<br />
Wholesale and corporate loans and advances 7,586 (2,310) 5,276 4,930 (944) 3,986<br />
Finance lease receivables 234 (140) 94 141 (102) 39<br />
Total loans and advances individually impaired 12,747 (4,698) 8,049 8,844 (2,889) 5,955<br />
Collective impairment allowance (1,876) (883)<br />
Total impairment allowance (6,574) (3,772)<br />
<strong>Barclays</strong> PLC <strong>Annual</strong> <strong>Report</strong> <strong>2008</strong> 273