Barclays 2009 Annual Report Download - page 340

338 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Glossary of terms
‘ABS CDO Super Senior’ The super senior tranches of debt linked to
collateralised debt obligations of asset backed securities (defined below).
Payment of super senior tranches takes priority over other obligations.
See Risk Management section – Credit Market Exposures.
‘Absa’ Refers to the results for Absa Group Limited as consolidated into
the results of Barclays PLC; translated into Sterling with adjustments for
amortisation of intangible assets, certain head office adjustments, transfer
pricing and non-controlling interests.
‘Absa Capital’ The portion of Absa’s results that is reported by Barclays
within the Barclays Capital business.
‘Absa Card’ The portion of Absa’s results that arises from the Absa credit
card business and is reported within Barclaycard.
‘Absa Group Limited’ Refers to the consolidated results of the South African
group of which the Parent Company is listed on the Johannesburg Stock
Exchange (JSE Limited) in which Barclays owns a controlling stake.
‘ABX Index’ An index tracking the yields of a basket of credit default swaps
linked to sub-prime mortgages, widely used in the industry.
‘ABX.HE Index’ An index referencing the yield on a basket of 20 subprime
mortgage-backed securities, widely used in the industry.
‘Adjusted Gross Leverage’ The multiple of adjusted total tangible assets
over total qualifying Tier 1 capital. Adjusted total tangible assets are total
assets less derivative counterparty netting, assets under management on
the balance sheet, settlement balances, goodwill and intangible assets.
See ‘Tier 1 Capital’ below.
‘Alt-A’ Loans regarded as lower risk than sub-prime, but with higher risk
characteristics than lending under normal criteria. See Risk Management
section – Credit Market Exposures.
‘Annual Earnings at Risk (AEaR)’ is the sensitivity of annual earnings to
shocks in market rates, at approximately 99th percentile for change over
one year. For interest rates this equates to a 2% parallel shift in rates.
For equity indices, it equates to a 25% change from one-year end to
the next, or 15% from one-year end to the next year’s average.
‘Arrears’ Customers are said to be in arrears when they are behind in
fulfilling their obligations with the result that an outstanding loan is unpaid
or overdue. Such a customer is also said to be in a state of delinquency.
When a customer is in arrears, his entire outstanding balance is said to be
delinquent, meaning that delinquent balances are the total outstanding
loans on which payments are overdue.
‘Asset backed products’ As used in Note 50, asset backed products are debt
and derivative products that are linked to the cash flow of a referenced asset.
This category includes asset backed loans; collateralised debt obligations
(CDOs); collateralised loan obligations (CLOs); asset backed credit
derivatives (ABS CDS); asset backed and mortgage backed securities.
‘Asset Backed Securities (ABS)’ Securities that represent an interest in an
underlying pool of referenced assets. The referenced pool can comprise any
assets which attract a set of associated cash flows but are commonly pools
of residential or commercial mortgages and, in the case of Collateralised
Debt Obligations (CDOs), the referenced pool may be ABS or other classes
of assets. See Risk Management section – Credit Market Exposures.
‘Assets margin’ Interest earned on customer assets relative to the average
internal funding rate, divided by average customer assets, expressed as an
annualised percentage.
‘Average balances’ which make up the average balance sheet are based
upon daily averages for most UK banking operations and monthly averages
outside the UK.
‘Average base rates’ Average of the official base rate.
‘Average net income generated per member of staff’ Total operating income
compared to the average number of employees for the reporting period.
‘Backstop facility’ A standby facility, that is a liquidity arrangement whereby
another party agrees to make a payment should the primary party not do so.
‘Basis point’ One hundredth of a per cent (0.01%), so 100 basis points is
1%. Used in quoting movements in interest rates or yields on securities.
‘CMBS Index Products (CMBX)’ The CMBX is a series of CMBS credit default
swap indices. It allows investors to take diversified exposure (long or short)
synthetically across rating categories. CMBX is administered by Markit,
which serves as the calculation and marketing agent for CMBX.
‘CMBS IG Index’ An index compiled by Barclays Capital, which measures the
return for CMBS securities with an original deal size of $500m or greater,
combined with a required rating of Baa3/BBB- or higher (investment grade).
In addition, maturity must be equal to or greater than one year and no
floating rate certificates may be included.
‘Collateralised Debt Obligations (CDOs)’ Securities issued by a third party
which reference Asset Backed Securities (ABSs) (defined above) and/or
certain other related assets purchased by the issuer. CDOs may feature
exposure to sub-prime mortgage assets through the underlying assets.
CDO2securities represent investments in CDOs that have been securitised
by a third party. See Risk Management section – Credit Market Exposures.
Term used in Annual Report US equivalent or brief description
Accounts Financial statements
Allotted Issued
Attributable profit Net income
Called up share capital Ordinary shares, issued and fully paid
Capital allowances Tax term equivalent to US tax depreciation allowances
Cash at bank and in hand Cash
Class of business Industry segment
Finance lease Capital lease
Freehold Ownership with absolute rights in perpetuity
Loans and advances Lendings
Loan capital Long-term debt
Net asset value Book value
Profit Income
Share capital Ordinary shares, capital stock or common stock issued and fully paid
Share premium account Additional paid-up capital or paid-in surplus (not distributable)
Shares in issue Shares outstanding
Write-offs Charge-offs