In its annual report for the year ending 31 December 2022, the bank said this was driven by “economic conditions that resulted in general mortgage market suppression”. It cited higher mortgage payments caused by increased rates and the rising cost of living in line with inflation.
Its mortgage portfolio rose by £4.2bn or 2.7 per cent to £162bn with little change in its buy-to-let portfolio and a 3.2 per cent growth for residential. The average loan to value of owner-occupier loans was 50 per cent, flat on 2021.
The bank also reported a profit before tax of £2.6bn, up from £2.2bn in 2021. A credit impairment charge of £268m was also made, compared to 2021’s release of £371m, which it attributed to an “updated macroeconomic scenario”.
Looking ahead, the bank said further trading disruption between the UK and the EU may impact its business, as well as a deeper recession in the UK and falling property prices. It said along with lower growth and higher unemployment, these factors could affect its UK mortgage portfolio.
Barclays UK’s net interest income rose from £8bn to £10.5bn.
Green goals
The bank lent £1.6bn in green mortgages in 2022, and since launching the proposition in 2018, £2.6bn has been issued overall. During 2022, there were 7,080 green mortgage completions.
Barclays UK said it was aiming to see 50 per cent of its mortgage portfolio have an EPC rating of C or better by 2030.
By the end of Q3 2022, 42.3 per cent of its book had an EPC rating of C or higher.
Group performance
The wider Barclays group posted a profit before tax of £7bn, which was down on the previous year’s £8.2bn. It also put £1.2bn aside in credit impairment charges in 2022, compared to a release of £700m in 2021. This was also attributed to the wider economic outlook.
