Notes to the consolidated financial statements
- « 20 Allowance for impairment losses
- 21 Available-for-sale financial assets
- 22 Investment property »
21 Available-for-sale financial assets
| 2008 |
2007 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cancara |
Other |
Total |
Cancara |
Other |
Total |
||||||
| Debt securities: |
|||||||||||
| Government securities |
– |
868 |
868 |
– |
319 |
319 |
|||||
| Other public sector securities |
– |
12 |
12 |
– |
5 |
5 |
|||||
| Bank and building society certificates of deposit |
– |
9,602 |
9,602 |
– |
1,825 |
1,825 |
|||||
| Mortgage backed securities |
3,176 |
1,253 |
4,429 |
4,136 |
1,914 |
6,050 |
|||||
| Other asset backed securities |
853 |
4,103 |
4,956 |
1,015 |
3,056 |
4,071 |
|||||
| Corporate and other debt securities |
2,244 |
4,346 |
6,590 |
3,117 |
3,153 |
6,270 |
|||||
6,273 |
20,184 |
26,457 |
8,268 |
10,272 |
18,540 |
||||||
| Equity shares: |
|||||||||||
| Listed |
– |
3 |
3 |
– |
1 |
1 |
|||||
| Unlisted |
– |
38 |
38 |
– |
28 |
28 |
|||||
– |
41 |
41 |
– |
29 |
29 |
||||||
| Treasury bills and other bills: |
|||||||||||
| Treasury bills and similar securities |
– |
2,402 |
2,402 |
– |
1,608 |
1,608 |
|||||
| Other bills |
– |
26,807 |
26,807 |
– |
19 |
19 |
|||||
– |
29,209 |
29,209 |
– |
1,627 |
1,627 |
||||||
6,273 |
49,434 |
55,707 |
8,268 |
11,928 |
20,196 |
||||||
Cancara is the Group's hybrid Asset Backed Commercial Paper conduit. Total exposures in Cancara were £12,615 million (31 December 2007: £12,469 million) comprising the £6,273 million (31 December 2007: £8,268 million) of debt securities detailed above and £6,342 million (31 December 2007: £4,201 million) of loans and advances to customers (see note 19). Cancara, which is fully consolidated in the Group's accounts, is managed in a very conservative manner, which is demonstrated by the quality and ratings stability of its underlying asset portfolio. At 31 December 2008, the asset-backed securities in Cancara were 91.8 and 94.2 per cent (31 December 2007: 100 per cent) Aaa/AAA rated by Moody's and Standard & Poor's respectively, and there was no exposure either directly or indirectly to sub-prime US mortgages within Cancara's debt security portfolio. At 31 December 2008 loans and advances included no US sub-prime mortgage exposure (31 December 2007: £115 million).
The other asset-backed securities not in the Cancara conduit of £4,103 million (31 December 2007: £3,056 million) comprise £2,917 million (31 December 2007: £2,643 million) of US Government guaranteed student loan asset-backed securities and £1,186 million (31 December 2007: £413 million) of unhedged asset-backed security collateralised debt obligations.
At 31 December 2008 £15,627 million (2007: £15,265 million) of available-for-sale financial assets had a contractual residual maturity of greater than one year.
All assets have been individually assessed for impairment. The criteria used to determine whether an impairment loss has been incurred are disclosed in note 2(J). Included in available-for-sale assets at 31 December 2008 are debt securities individually determined to be impaired whose gross amount before impairment allowances was £282 million (2007: £75 million) and in respect of which no collateral was held. In addition, included in available-for-sale assets at 31 December 2008 are equity securities individually determined to be impaired whose gross amount before impairment allowances was £31 million (2007: nil).