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36. Financial instruments and risk management continued
The following information is provided in accordance with the requirements of FRS 13 – ‘‘Derivatives and other
financial instruments: disclosures’’. Except for disclosures under currency exposures below, the financial
information excludes all of the group’s short-term debtors and creditors.
Financial liabilities
After taking into account the various interest rate swaps and forward foreign currency contracts entered into by
the group, the interest rate profile of the group’s financial liabilities at 31 March was:
2003 2002
Currency:
Fixed rate
financial
liabilities
£m
Floating rate
financial
liabilities
£m
Financial
liabilities on
which no
interest is paid
£m
Total
£m
Fixed rate
financial
liabilities
£m
Floating rate
financial
liabilities
£m
Financial
liabilities on
which no
interest is paid
£m
Total
£m
Sterling 8,814 7,172 – 15,986 11,809 5,686 – 17,495
US dollar ––––118 – – 118
Euro ––1818 173 611 43 827
Total 8,814 7,172 18 16,004 12,100 6,297 43 18,440
For the fixed rate financial liabilities, the average interest rates and the average periods for which the rates are
fixed are:
2003 2002
Currency:
Weighted
average
interest
rate
%
Weighted
average
period for
which rate
is fixed
Years
Weighted
average
interest
rate
%
Weighted
average
period for
which rate
is fixed
Years
Sterling 8.5 13 8.5 12
US dollar ––8.0 7
Euro ––6.7 8
Total 8.5 13 8.5 12
The floating rate financial liabilities bear interest at rates fixed in advance for periods ranging from one day to
one year by reference to LIBOR. The financial liabilities on which no interest is paid are due to mature within
one year of the balance sheet date.
The maturity profile of financial liabilities is as given in note 25.
Financial assets
After taking into account the various interest rate swaps and forward foreign currency contracts entered into by
the group, the interest rate profile of the group’s financial assets at 31 March was:
2003 2002
Currency:
Fixed rate
financial
assets
£m
Floating rate
financial
assets
£m
Financial assets
on which no
interest is paid
£m
Total
£m
Fixed rate
financial
assets
£m
Floating rate
financial
assets
£m
Financial assets
on which no
interest is paid
£m
Total
£m
Sterling 457 5,974 255 6,686 15 4,724 255 4,994
US dollar ––22––44
Euro ––1919 ––7979
Other ––4141 ––3535
Total 457 5,974 317 6,748 15 4,724 373 5,112
The sterling fixed rate financial assets yield interest at a weighted average of 4.3% (2002 – 4.3%) for a weighted
average period of 16 months (2002 – 39 months).
The floating rate financial assets bear interest at rates fixed in advance for periods up to one year by
reference to LIBOR.
Notes to the financial statements
124 BT Annual Report and Form 20-F 2003