Financial review

	Analysis of loans and advances The following sections analyse loans and advances to banks and customers. The geographical analyses of the banking business are based on the location of the office from which the lendings are made. The trading business, which is international in nature, primarily constitutes settlement and reverse repo balances and has not been analysed geographically. This business is largely carried out in the UK and the United States.
	Maturity analysis of loans and advance to banks

				Over three	Over one
				months	year but
			Not more	but not	not more
			than three	more than	than five	Over
		On demand	months	one year	years	five years	Total
	At 31st December 2000	£m	£m	£m	£m	£m	£m
	Banking business:
	UK	392	1,463	985	398	107	3,345
	Other European Union	248	1,526	63	151	54	2,042
	United States	26	880	874	276	_	2,056
	Rest of the World	318	1414	417	4	-	2153
	Total banking business	984	5,283	2,339	829	161	9,596
	Total trading business	1,110	22,118	3,628	-	-	26,856
		2,094	27,401	5,967	829	161	36,452
				Over three	Over one
				months	year but
			Not more	but not	not more
			than three	more than	than five	Over
		On demand	months	one year	years	five years	Total
	At 31st December 1999	£m	£m	£m	£m	£m	£m
	Banking business:
	UK	304	4,215	1,139	500	149	6,307
	Other European Union	126	1,530	384	121	12	2,173
	United States	40	816	960	295	7	2,118
	Rest of the World	251	1,002	1,221	18	5	2,497
	Total banking business	721	7,563	3,704	934	173	13,095
	Total trading business	246	23,583	2,671	-	55	26,555
		967	31,146	6,375	934	228	39,650

Loans and advances to banks The majority of loans and advances to banks are placings, amounting to £32,170m at 31st December 2000 (1999 £36,080m,1998 £33,817m) and includes reverse repo transactions. Also included are loans to banks and building societies, balances with central banks (excluding those balances which can be withdrawn on demand), inter-bank settlement accounts and federal funds sold.

	Loans and advances to banks
		2000	1999	1998
		£m	£m	£m
	Banking Business:
	UK	3,345	6,307	4,037
	Other European Union	2,042	2,173	3,847
	United States	2,056	2,118	2,230
	Rest of the World	2,153	2,497	10,243
	Total banking business	9,596	13,095	20,357
	Total trading business	26,856	26,555	17,326
		36,452	39,650	37,683

The amounts shown are before the deduction of attributable provisions and interest in suspense.

	Interest rate sensitivity of loans and advances to banks
		Fixed	Variable	Total
		rate	rate
	At 31st December 2000	£m	£m	£m
	Banking Business:
	UK	2,552	793	3,345
	Other European Union	1,564	478	2,042
	United States	2,030	26	2,056
	Rest of the World	1,894	259	2,153
	Total banking business	8,040	1,556	9,596
	Total trading business	15,662	11,194	26,856
		23,702	12,750	36,452
	Loan and advances to customers
	The Group provides lending facilities to corporate and personal customers in the form of loans, overdrafts and finance leasereceivables. The amounts shown below are before deduction of attributable provisions and interest in suspense.

	Maturity analysis of loans and advances to customers
				Over three	Over one
				months	year but
			Not more	but not	not more
			than three	more than	than five	Over
		On demand	months	one year	years	five years	Total
	At 31st December 2000	£m	£m	£m	£m	£m	£m
	Banking business:
	UK
	Corporate lending	8,041	5,768	4,281	10,579	8,887	37,556
	Other lending from UK offices (b)	2,545	5,928	6,153	12,936	50,196	77,758
	Total UK	10,586	11,696	10,434	23,515	59,083	115,314
	Other European Union	920	1,789	1,485	2,749	3,260	10,203
	United States	442	890	1,411	2,802	831	6,376
	Rest of the World	658	2,783	3,932	771	806	8,950
	Total banking business	12,606	17,158	17,262	29,837	63,980	140,843
	Total trading business	846	22,049	792	-	-	23,687
		13,452	39,207	18,054	29,837	63,980	164,530
				Over three	Over one
				months	year but
			Not more	but not	not more
			than three	more than	than five	Over
		On demand	months	one year	years	five years	Total
	At 31st December 1999	£m	£m	£m	£m	£m	£m
	Banking business:
	UK
	Corporate lending	5,882	5,650	4,099	9,341	7,345	32,317
	Other lending from UK offices (b)	2,662	5,211	4,780	11,768	21,939	46,360
	Total UK	8,544	10,861	8,879	21,109	29,284	78,677
	Other European Union	748	1,533	1,140	1,797	758	5,976
	United States	104	491	860	1,730	863	4,048
	Rest of the World	504	1,018	5,405	683	734	8,344
	Total banking business	9,900	13,903	16,284	25,319	31,639	97,045
	Total trading business	3	21,355	192	-	12	21,562
		9,903	35,258	16,476	25,319	31,651	118,607
	Notes
	(a) Overdrafts are included in the ‘on demand’ category. (b) Other lending from UK offices includes finance lease receivables.

	Interest rate sensitivity of loans and advances to customers
		Fixed	Variable	Total
		rate	rate
	At 31st December 2000	£m	£m	£m
	Banking Business:
	UK	37,210	78,104	115,314
	Other European Union	3,998	6,205	10,203
	United States	1,449	4,927	6,376
	Rest of the World	6,005	2,945	8,950
	Total banking business	48,662	92,181	140,843
	Total trading business	11,291	12,396	23,687
		59,953	104,577	164,530

	Loans and advances to customers in offices in the UK – banking business
			2000	1999	1998	1997	1996
			£m	£m	£m	£m	£m
	Financial institutions		1,420	1,552	1,839	2,258	2,388
	Agriculture, forestry and fishing		1,689	1,693	1,612	1,726	1,768
	Manufacturing		7,573	6,954	6,840	5,556	5,976
	Construction		1,666	1,331	1,227	1,046	1,242
	Property		5,130	3,689	3,205	2,927	3,619
	Energy and water		1,120	613	668	586	863
	Wholesale and retail distribution and leisure		7,531	6,455	6,778	5,895	5,553
	Transport		1,353	1,270	1,164	875	1,320
	Postal and communication		180	345	261	86	101
	Business and other services		9,894	8,415	7,549	6,425	6,178
	Home loans		47,235	18,316	16,580	15,937	14,958
	Other personal		18,200	15,673	14,376	12,403	11,315
	Overseas customers		7,819	7,277	3,056	3,421	2,561
			110,810	73,583	65,155	59,141	57,842
	Finance lease receivables		4,504	5,094	5,279	5,635	5,825
			115,314	78,677	70,434	64,776	63,667
	Loans and advances to customers in offices in other European Union countries – banking business
			2000	1999	1998	1997	1996
			£m	£m	£m	£m	£m
	Financial institutions		455	178	220	215	437
	Agriculture, forestry and fishing		303	223	109	19	14
	Manufacturing		1,549	1,322	975	964	966
	Construction		330	193	148	164	246
	Property		183	144	182	237	296
	Energy and water		384	145	114	114	81
	Wholesale and retail distribution and leisure		144	207	323	378	349
	Transport		172	119	133	184	461
	Postal and communication		83	37	9	11	39
	Business and other services		1,321	918	1,433	980	864
	Home loans		4,436	1,029	932	670	796
	Other personal		582	505	500	352	313
	Overseas customers		110	462	358	304	314
			10,052	5,482	5,436	4,592	5,176
	Finance lease receivables		151	494	503	485	497
			10,203	5,976	5,939	5,077	5,673
	Loans and advances to customers in offices in the United States – banking business
			2000	1999	1998	1997	1996
			£m	£m	£m	£m	£m
	Financial institutions		616	320	527	350	190
	Agriculture, forestry and fishing		-	1	1	1	4
	Manufacturing		1,123	727	592	325	337
	Construction		-	-	12	5	27
	Property		30	69	80	195	412
	Energy and water		1,440	1,168	645	647	510
	Wholesale and retail distribution and leisure		214	138	323	76	97
	Transport		580	356	53	98	129
	Postal and communication		88	166	383	240	115
	Business and other services		2,174	1,000	1,471	1,138	929
	Home loans		1	1	1	3	12
	Other personal		6	58	7	25	69
	Overseas customers		56	–	27	15	24
			6,328	4,004	4,122	3,118	2,855
	Finance lease receivables		48	44	42	44	42
			6,376	4,048	4,164	3,162	2,897
	Loans and advances to customers in offices in the Rest of the World – banking business
			2000	1999	1998	1997	1996
			£m	£m	£m	£m	£m
	Loans and advances		8,920	8,316	2,883	2,980	2,951
	Finance lease receivables		30	28	28	29	28
			8,950	8,344	2,911	3,009	2,979
	Total loans and advances to customers
			2000	1999	1998	1997	1996
			£m	£m	£m	£m	£m
	Banking business		140,843	97,045	83,448	76,024	75,216
	Trading business		23,687	21,562	13,611	25,712	16,441
			164,530	118,607	97,059	101,736	91,657

	Total loans and advances to customers Barclays lendings are widely dispersed over customer categories within the UK, the main area of operation, and are also well spread geographically outside the UK. No one concentration of lendings, with the exception of home loans and other personal lendings in the UK, accounts for more than 10% of total Group lendings.  Other than the UK, the United States is the only country to account for 10% or more of total Group lendings. In the geographical analyses of lendings shown above, overseas customers are customers resident outside the country in which the lending business is based. In addition to the lendings categorised as postal and communications in the UK and other geographical areas, exposure to the telecommunications sector is also included in overseas customers. Total loans and advances world-wide to this sector at 31st December 2000 amounted to £1.49bn. Loans and advances in offices in the UK Loans and advances within banking business activities increased by 47% to £115,314m (1999 growth of 12%). £29,810m of the increase was attributable to the acquisition of The Woolwich. There was strong growth in unsecured personal lending and credit card advances, with the mortgage business benefiting from a relatively strong housing market. The growth in corporate lending was concentrated in larger middle market customers. Loans and advances in offices in Other European Union countries £3,129m of the £3,407m growth in home loans was attributable to the acquisition of The Woolwich. Loans and advances in offices in the United States and the Rest of the World Business loans and advances in the United States grew by 58% with significant increases in lendings to financial institutions and manufacturing businesses. Rest of the world lendings were 7% higher than in 1999. Credit risk management mechanisms Barclays has entered into securitisation and credit derivative transactions in order to reduce the uncertainty of returns from the credit portfolio. Details of the securitisation transactions are included in note 17 Loans and advances to customers while the year-end level of credit derivatives is provided in Consolidated accounts Barclays PLC section, note 46 Derivatives and other financial instruments. Exposure to countries subject to International Monetary Fund liquidity support programmes Amounts outstanding, net of provisions, and commitments to counterparties in countries which make significant use of International Monetary Fund liquidity support programmes were as follows:
		2000	1999	1998
		£bn	£bn	£bn
	Asia
	Indonesia	0.1	0.1	0.1
	South Korea	0.2	0.4	0.5
	Thailand	0.1	0.1	0.1
		0.4	0.6	0.7
	Latin America
	Argentina	0.9	*	*
	Brazil	*	0.8	0.9
	Mexico	*	0.9	1.0
		1.3	2.3	2.6
	* Not reportable The total was broken down, as follows:
		2000	1999	1998
		£bn	£bn	£bn
	Banks	0.8	1.3	1.6
	Governments/sovereigns	0.1	0.4	0.5
	Corporates & project financings	0.4	0.6	0.5
		1.3	2.3	2.6
	The Group has a 50% shareholding in Banco Barclays e Galicia SA which in 2000 was equity accounted as an associated undertaking. As at 31st December 2000 this holding was included in the balance sheet at a value of £31m (31st December 1999 £33m, 31st December 1998 £47m). From 1st January 2001, following the completion of management changes, the Group considers itself to exert dominant influence so that it has control over the operations of Banco Barclays e Galicia SA and consequently from that date the entity will be consolidated as a subsidiary in accordance with Financial Reporting Standard 2. The general provision in respect of country transfer risk arising from the Group’s business world wide, including exposures in these countries, was £57m as at 31st December 2000 (31st December 1999 £57m). This is in addition to £703m of general provision held against credit risk (31st December 1999 £615m).