16. Impaired and past-due financial assets
| 2006 | 2005 | |||||
| Cost £m |
Provision £m |
Net book value £m |
Cost £m |
Provision £m |
Net book value £m |
|
| Impaired financial assets | ||||||
| Loans and receivables and finance leases | 6,232 | 3,342 | 2,890 | 5,926 | 3,344 | 2,582 |
| Available-for-sale | 185 | 88 | 97 | 316 | 132 | 184 |
| 6,417 | 3,430 | 2,987 | 6,242 | 3,476 | 2,766 | |
| Group | |||
| 2006 £m |
2005 £m |
2004 £m |
|
| Impairment losses charged to the income statement | |||
| Loans and receivables and finance leases (see table below) | 1,877 | 1,703 | |
| Available-for-sale | 1 | 4 | |
| Loans and advances | 1,402 | ||
| Amounts written-off fixed asset investments | 83 | ||
| Total | 1,878 | 1,707 | 1,485 |
The following table shows the movement in the provision for impairment losses for loans and receivables and finance leases.
| Group | ||||||
| Individually assessed £m |
Collectively assessed £m |
Latent £m |
Total 2006 £m |
2005 £m |
2004 £m |
|
| At 1 January | 757 | 2,587 | 543 | 3,887 | 4,174 | 3,885 |
| Implementation of IAS 39 on 1 January 2005 | — | — | — | — | (29) | — |
| Currency translation and other adjustments | (19) | (5) | (37) | (61) | 51 | (98) |
| Acquisitions | — | — | — | — | — | 290 |
| Amounts written-off(1) | (255) | (1,586) | — | (1,841) | (2,040) | (1,449) |
| Recoveries of amounts previously written-off | 24 | 191 | — | 215 | 172 | 144 |
| Charged to the income statement | 217 | 1,573 | 87 | 1,877 | 1,703 | 1,402 |
| Unwind of discount | (27) | (115) | — | (142) | (144) | — |
| At 31 December(2) | 697 | 2,645 | 593 | 3,935 | 3,887 | 4,174 |
Notes:
(1) Amounts written-off include £2 million in 2005 relating to loans and advances to banks.
(2) Impairment losses at 31 December 2006 include £2 million relating to loans and advances to banks (2005 – £3 million).
Loan impairment
At 31 December 2006, the Group’s non-accrual loans, loans past due 90 days and troubled debt restructurings amounted to £6,337 million (2005 – £5,937 million). Loan impairment provisions of £3,342 million (2005 – £3,344 million) were held against these loans. Average non-accrual loans, loans past due 90 days and troubled debt restructurings for the year ended 31 December 2006 were £6,163 million (2005 – £5,923 million; 2004 – £5,264 million).
| 2006 £m |
2005 £m |
2004 £m |
|
| Gross income not recognised but which would have been recognised under the original terms of non-accrual and restructured loans | |||
| Domestic | 370 | 334 | 235 |
| Foreign | 77 | 62 | 58 |
| 447 | 396 | 293 | |
| Interest on non-accrual and restructured loans included in net interest income | |||
| Domestic | 142 | 130 | 58 |
| Foreign | 15 | 14 | 7 |
| 157 | 144 | 65 |
© 2007