Financial reveiw

	Provisions for bad and doubtful debts

	In the tables below, income and cost totals excluding, where appropriate, the results of The Woolwich, related integration costs, restructuring costs, the results of former BZW businesses and the write-down of leases are shown to assist in the analysis of the ongoing business performance.

		2000	1999	1998
		£m	£m	£m
	Credit risk provision charge/(release)
	specific	782	637	505
	general	40	(16)	(20)
	Country risk provision charge/(release)
	specific	(5)	(2)	(13)
	general	–	2	20
		817	621	492
	Excluding The Woolwich	809	621	492

The net provisions charge rose 32% to £817m (including £8m relating to The Woolwich). The increase in the net specific credit risk charge reflected both an increase in new and increased provisions of £94m and a reduction in releases and recoveries of £51m. The rise in new and increased provisions primarily relates to Retail Financial Services and Barclaycard with both experiencing increased volumes. Corporate Banking experienced new provisions in respect of two larger individual customers as well as lower releases and recoveries. £33m of the £124m charge in Corporate Banking related to overseas specific provisions. There was an increase in provisions in relation to overseas exposures in Barclays Capital. The credit risk general provision charge was £40m compared to a release of £16m in 1999. The charge for general provision was mainly in respect of Barclays Capital and Corporate Banking. The net provision charge for the period as a percentage of average banking loans and advances was 0.67% compared with 0.58% in 1999. In 1999 the net charge for provisions rose by £129m to £621m largely reflecting volume growth in UK consumer lending and extended credit transactions at Barclaycard and to a lesser extent less favourable economic factors that affected the first half of 1999.