Retail
Business Banking
Impaired loans have increased to 6.5% of closing advances (2006 5.3%) and provisions as a percentage of closing advances increased to 3.6% (2006 3.5%). This is in line with expectations given the current stage in the evolution of this business.
(The information set out below and overleaf 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 | As at 31.12.2006 |
| (i) Exposure | ||
| £bn | £bn | |
| Loans & advances to customers | 253.4 | 237.7 |
| Impairment provisions on advances | 2.3 | 2.1 |
| Loans & advances to customers before impairment provisions |
255.7 | 239.8 |
| Classification of advances* | % | % |
| Residential mortgages | 92.6 | 92.1 |
| Other personal lending: | ||
| Secured Personal Loans | 0.4 | 0.6 |
| Unsecured Personal Loans | 3.7 | 3.7 |
| Credit Cards | 2.7 | 3.0 |
| Banking | 0.6 | 0.6 |
| Total | 100.0 | 100.0 |
| Analysis of residential mortgages | % | % |
| Mainstream balances | 73.2 | 74.0 |
| Specialist balances** | 26.8 | 26.0 |
| Total | 100.0 | 100.0 |
| New business profile of residential mortgages | % | % |
| Mainstream balances | 69.7 | 69.3 |
| Specialist balances | 30.3 | 30.7 |
| Total | 100.0 | 100.0 |
* Before impairment provisions.
** Comprising predominantly buy to let and self-certificated mortgages.
| As at 31.12.2007 | As at 31.12.2006 | |
| (ii) Credit Quality and Collateral | ||
| Loans and advances to customers are analysed as follows* | £bn | £bn |
| Neither past due nor impaired (1) | 241.8 | 226.5 |
| Past due up to 3 months but not impaired (2) | 7.3 | 6.8 |
| Impaired | 6.6 | 6.5 |
| Total | 255.7 | 239.8 |
| Loan to value analysis of residential mortgage book | % | % |
| Less than 60% (averaging 28%, 2006 28%) | 46.7 | 45.7 |
| 60% to 70% | 18.2 | 16.5 |
| 70% to 80% | 18.3 | 18.8 |
| 80% to 90% | 13.3 | 15.3 |
| Greater than 90% | 3.5 | 3.7 |
| Total | 100.0 | 100.0 |
| Average loan to value | % | % |
| Stock of residential mortgages | 44 | 44 |
| New residential lending | 65 | 64 |
| Impaired mortgages | 57 | 57 |
| Note: LTV analysis is based on indexed valuation for stock and valuation at inception for new loans. | ||
| Impaired loans* | £m | £m |
| Secured | 4,234 | 4,047 |
| Unsecured | 2,322 | 2,411 |
| Total | 6,556 | 6,458 |
| Impaired loans* | £m | £m |
| Past due 0 to 3 months | 165 | 253 |
| Past due 3 to 6 months | 2,302 | 2,166 |
| Past due 6 to 12 months | 1,383 | 1,311 |
| Past due over 12 months | 534 | 597 |
| Recoveries | 1,840 | 1,814 |
| Possession | 332 | 317 |
| Total | 6,556 | 6,458 |
| Impaired loans as a % of closing advances | % | % |
| Secured | 1.80 | 1.84 |
| Unsecured | 13.04 | 13.17 |
| Total | 2.59 | 2.72 |
| Impairment provisions on advances | £m | £m |
| Secured | 330 | 408 |
| Unsecured | 1,919 | 1,700 |
| Total | 2,249 | 2,108 |
| Impairment provisions as a % of closing advances | % | % |
| Secured | 0.14 | 0.19 |
| Unsecured | 10.78 | 9.29 |
| Total | 0.89 | 0.89 |
| Impairment provisions as a % of impaired loans | % | % |
| Secured | 8 | 10 |
| Unsecured | 83 | 71 |
| Total | 34 | 33 |
* Before impairment provisions.
(1) Included in loans and advances that are neither past due nor impaired are £227m (2006 £291m) that would have been past due or impaired had their terms not been renegotiated.
(2) Secured £6.7bn (2006 £6.1bn) and unsecured £0.6bn (2006 £0.7bn).
(End of information that forms an integral part of the audited financial statements.)