Notes to the accounts

For the year ended 31st December 2007


47 Credit risk (continued)

(a) Credit quality of financial assets neither past due nor individually impaired (continued)
Excel File Download table as excel file
2006
Weak/sub- 
Strong  Satisfactory  standard  Total 
£m  £m  £m  £m 
Cash and balances at central banks  7,345  –  –  7,345 
Items in the course of collection from other banks  1,814  594  –  2,408 
Trading portfolio: 
Treasury bills and other eligible bills  2,947  13  –  2,960 
Debt securities  133,230  5,907  1,439  140,576 
Traded loans  405  1,425  13  1,843 
Total trading portfolio  136,582  7,345  1,452  145,379 
Financial assets designated at fair value held on own account: 
Loans and advances  10,586  2,228  382  13,196 
Debt securities  5,307  6,793  –  12,100 
Other financial assets  2,637  155  –  2,792 
Total financial assets designated at fair value held on own account  18,530  9,176  382  28,088 
Derivative financial instruments  133,980  4,194  179  138,353 
Loans and advances to banks  29,008  336  11  29,355 
Loans and advances to customers: 
Residential mortgage loans  53,760  34,019  1,316  89,095 
Credit card receivables  –  11,858  49  11,907 
Other personal lending  2,832  16,652  110  19,594 
Wholesale and corporate loans and advances  92,912  44,583  2,295  139,790 
Finance lease receivables  4,481  5,349  105  9,935 
Total loans and advances to customers  153,985  112,461  3,875  270,321 
Available for sale financial investments: 
Debt securities  47,687  49  –  47,736 
Treasury bills and other eligible bills  2,313  107  –  2,420 
Total available for sale financial investments  50,000  156  –  50,156 
Reverse repurchase agreements  171,725  856  1,509  174,090 
Other assets  2,548  1,546  3  4,097 
Total financial assets neither past due nor individually impaired  705,517  136,664  7,411  849,592 

47 Credit risk (continued)

(b) Financial assets that are past due but not individually impaired

An age analysis of financial assets that are past due but not individually impaired is set out below.

For the purposes of this analysis an asset is considered past due and included below when any payment due under the strict contractual terms is received late or missed. The amount included is the entire financial asset, not just the payment, of principal or interest or both, overdue.

The Group expends considerable effort in monitoring overdue assets. Assets may be overdue for a number of reasons, including late processing of payments or documentation, for example, over weekends and holiday periods. Where assets are considered to be uncollectable they are subject to individual impairment.

Trading portfolio and derivative assets are measured on a fair value basis such that their carrying amount reflects expected defaults. Amounts that are past due as a result of counterparty credit issues are not significant.

Excel File Download table as excel file
2007
Past  Past  Past  Past 
due  due  due  Past  due 
up to 1  1-2  2-3  due  6 months 
month  months  months  3-6 months  and over  Total 
£m  £m  £m  £m  £m  £m 
Financial assets designated at fair value held on own account: 
Loans and advances  261  4  1  24  67  357 
Total financial assets designated at fair value held on own account  261  4  1  24  67  357 
Loans and advances to banks  2,031  305  186  –  –  2,522 
Loans and advances to customers: 
Residential mortgage loans  3,609  1,349  456  215  184  5,813 
Credit card receivables  558  155  107  205  1  1,026 
Other personal lending  271  199  193  152  205  1,020 
Wholesale and corporate loans and advances  6,970  622  267  62  66  7,987 
Finance lease receivables  75  28  18  38  –  159 
Total loans and advances to customers  11,483  2,353  1,041  672  456  16,005 
Available for sale financial investments: 
Debt securities  92  –  –  –  –  92 
Total available for sale financial investments  92  –  –  –  –  92 
Total financial assets past due but not individually impaired  13,867  2,662  1,228  696  523  18,976 

Excel File Download table as excel file
2006
Past  Past  Past  Past 
due  due  due  Past  due 
up to 1  1-2  2-3  due  6 months 
month  months  months  3-6 months  and over  Total 
£m  £m  £m  £m  £m  £m 
Financial assets designated at fair value held on own account: 
Loans and advances  –  –  –  –  –  – 
Total financial assets designated at fair value held on own account  –  –  –  –  –  – 
Loans and advances to banks  1,004  234  337  –  –  1,575 
Loans and advances to customers: 
Residential mortgage loans  3,394  1,124  280  208  150  5,156 
Credit card receivables  622  202  144  304  –  1,272 
Other personal lending  276  118  119  253  1  767 
Wholesale and corporate loans and advances  3,322  130  180  20  53  3,705 
Finance lease receivables  35  10  22  22  –  89 
Total loans and advances to customers  7,649  1,584  745  807  204  10,989 
Available for sale financial investments: 
Debt securities  131  22  –  23  –  176 
Total available for sale financial investments  131  22  –  23  –  176 
Total financial assets past due but not individually impaired  8,784  1,840  1,082  830  204  12,740