International
Credit Quality and Provisions
Impaired loans as a percentage of closing advances were steady at 1.00% (2006 1.00%), reflecting a continued small number of impaired Corporate transactions. Impairment provisions as a percentage of impaired loans were 44% (2006 46%). Impairment losses as a percentage of average advances were broadly stable at 0.28% (2006 0.27%).
(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 | 33.2 | 24.5 |
| Impairment provisions on advances | 0.1 | 0.1 |
| Loans and advances to customers before impairment provisions | 33.3 | 24.6 |
| Classification of advances*: | % | % |
| Agriculture, forestry and fishing | 3 | 3 |
| Energy | 2 | 3 |
| Manufacturing industry | 3 | 3 |
| Construction and property | 26 | 24 |
| Hotels, restaurants and wholesale and retail trade | 8 | 9 |
| Transport, storage and communication | 3 | 2 |
| Financial | 2 | 3 |
| Other services etc. | 8 | 7 |
| Individuals: | ||
| Home mortgages | 39 | 38 |
| Other personal lending | 4 | 6 |
| Non-Australian residents | 2 | 2 |
| 100 | 100 | |
| (ii) Credit Quality | ||
| Loans and advances to customers* | £bn | £bn |
| Neither past due nor impaired | 32.6 | 23.9 |
| Past due up to 3 months but not impaired | 0.4 | 0.4 |
| Impaired | 0.3 | 0.3 |
| 33.3 | 24.6 |
| Loans neither past due nor impaired* | % | % |
| Internal rating: | ||
| Better than satisfactory risk | 48 | 43 |
| Satisfactory risk | 41 | 46 |
| Viable but monitoring | 10 | 10 |
| High risk | 1 | 1 |
| 100 | 100 | |
| Loans past due but not impaired*: | £m | £m |
| Past due 0 to 3 months | 399 | 432 |
| 399 | 432 | |
| Impaired loans* | £m | £m |
| Past due 0 to 3 months | 135 | 89 |
| Past due 3 to 6 months | 76 | 46 |
| Past due 6 to 12 months | 22 | 40 |
| Past due over 12 months | 42 | 13 |
| Possession cases | 58 | 57 |
| 333 | 245 | |
| Impaired loans as a % of closing advances | 1.00% | 1.00% |
| Impairment provisions | £147m | £113m |
| Impairment provisions as a % of closing advances | 0.44% | 0.46% |
| Impairment provisions as a % of impaired loans | 44% | 46% |
* Before impairment provisions.
(End of information that forms an integral part of the audited financial statements.)