International
Credit Quality and Provisions
Credit performance was robust in the period with impairment losses as a percentage of average advances dropping to 0.12% (2006 0.20%). The charge for the year was reduced as a result of a number of recoveries in respect of long term workouts. Impaired loans as a percentage of closing advances showed a small increase to 1.93% (2006 1.87%).
(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 | 21.9 | 15.9 |
| Impairment provisions on advances | 0.1 | 0.1 |
| Loans and advances to customers before impairment provisions | 22.0 | 16.0 |
| Classification of advances*: | % | % |
| Agriculture, forestry and fishing | 1 | 1 |
| Energy | 1 | |
| Manufacturing industry | 3 | 4 |
| Construction and property | 28 | 27 |
| Hotels, restaurants and wholesale and retail trade | 12 | 13 |
| Transport, storage and communication | 2 | 2 |
| Financial | 2 | 2 |
| Other services | 6 | 6 |
| Individuals: | ||
| Home mortgages | 28 | 28 |
| Other personal lending | 6 | 6 |
| Non-Ireland residents | 11 | 11 |
| 100 | 100 | |
| (ii) Credit Quality | ||
| Loans and advances to customers* | £bn | £bn |
| Neither past due nor impaired | 21.6 | 15.7 |
| Past due but not impaired | ||
| Impaired | 0.4 | 0.3 |
| 22.0 | 16.0 | |
| Loans neither past due nor impaired* | % | % |
| Internal rating: | ||
| Satisfactory risk | 99 | 99 |
| Viable but monitoring | 1 | 1 |
| 100 | 100 |
| Impaired loans* | £m | £m |
| Past due 0 to 3 months | 219 | 171 |
| Past due 3 to 6 months | 65 | 42 |
| Past due 6 to 12 months | 68 | 34 |
| Past due over 12 months | 70 | 50 |
| 422 | 297 | |
| Impaired loans as a % of closing advances | 1.93% | 1.87% |
| Impairment provisions | £141m | £113m |
| Impairment provisions as a % of closing advances | 0.64% | 0.71% |
| Impairment provisions as a % of impaired loans | 33% | 38% |
* Before impairment provisions.
(End of information that forms an integral part of the audited financial statements.)