International
Credit Quality and Provisions
Impaired loans as a percentage of closing advances increased to 0.59% (2006 0.47%). Overall credit quality remained strong across a diverse and geographically spread portfolio. Impairment losses as a percentage of average advances increased only marginally to 0.13% (2006 0.12%) and from a low base, while impairment provisions as a percentage of impaired loans were slightly lower at 48% (2006 51%).
(The information set out below forms an integral part of the audited financial statements as described in the Accounting Policies section of the Financial Statements on page 160.)
| Asset Quality Information | As at 31.12.2007 £bn |
As at 31.12.2006 £bn |
| (i) Exposure | ||
| Loans and advances to customers | 12.0 | 8.3 |
| Impairment provisions on advances | ||
| Loans and advances to customers before impairment provisions | 12.0 | 8.3 |
| Classification of advances*: | % | % |
| Energy | 7 | 6 |
| Manufacturing industry | 2 | 1 |
| Construction and property | 7 | 7 |
| Hotels, restaurants and wholesale and retail trade | 2 | 2 |
| Transport, storage and communication | 1 | 1 |
| Financial | 7 | 4 |
| Other services etc. | 10 | 10 |
| Individuals: | ||
| Home mortgages | 64 | 69 |
| 100 | 100 | |
| (ii) Credit Quality | ||
| Loans and advances to customers* | £bn | £bn |
| Neither past due nor impaired | 11.6 | 8.0 |
| Past due but not impaired | 0.3 | 0.2 |
| Impaired | 0.1 | 0.1 |
| 12.0 | 8.3 | |
| Loans neither past due nor impaired* | % | % |
| Internal rating: | ||
| Better than satisfactory risk | 37 | 43 |
| Satisfactory risk | 40 | 37 |
| Viable but monitoring | 21 | 15 |
| High risk | 2 | 5 |
| 100 | 100 |
| Loans past due but not impaired* | £m | £m |
| Past due 0 to 3 months | 315 | 210 |
| Past due 3 to 6 months | 2 | 10 |
| Past due more than 6 months | 8 | |
| 325 | 220 | |
| Impaired loans* | £m | £m |
| Past due 0 to 3 months | 39 | |
| Past due 3 to 6 months | 29 | |
| Past due 6 to 12 months | 32 | |
| Past due over 12 months | 1 | |
| Possession cases | 9 | |
| 71 | 39 | |
| Impaired loans as a % of closing advances | 0.59% | 0.47% |
| Impairment provisions | £34m | £20m |
| Impairment provisions as a % of closing advances | 0.28% | 0.24% |
| Impairment provisions as a % of impaired loans | 48% | 51% |
* Before impairment provisions.
(End of information that forms an integral part of the audited financial statements.)