Barclays 2009 Annual Report Download - page 47

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 45
Financial review
Capital management
Capital resources
2009/08
Core Tier 1 capital for Barclays PLC Group increased £14.1bn to £38.4bn
and Tier 1 capital increased £12.4bn to £49.6bn.
Retained earnings and capital issues (including the conversion of the
Mandatorily Convertible Notes) contributed £9.3bn and £4.7bn respectively
to Core Tier 1 and Tier 1 capital. Reductions in the adjustment for own credit
(£1.3bn) and deduction for intangible assets (£1.6bn) were broadly offset
by the increase in securitisation deductions (£2.1bn).
The investment in BlackRock contributed to the £2.6bn increase in
deductions from Tier 1 capital. This was partially offset by an increase in
the amount of Reserve Capital Instruments eligible for inclusion in Tier 1.
Tier 2 capital decreased by £7.6bn. Deductions increased by £4.6bn,
mainly in respect of the investment in BlackRock and securitisation
positions. Subordinated loan capital decreased by £4.0bn, driven by net
redemptions, the impact of exchange rate movements and lower levels
of Reserve Capital Instruments in excess of the Tier 1 limits.
2008/07
Core Tier 1 capital increased by £7.6bn to £24.4bn and Tier 1 capital
increased by £10.5bn during the year, driven by issues of ordinary shares
(£5.2bn), other capital issuances (£4.3bn), retained profits (£2.0bn) and
exchange rate movements (£3.2bn). These movements were partially
offset by an increase in intangible assets (£1.3bn), innovative Tier 1 capital
in excess of regulatory limits being reclassified as Tier 2 capital (£1.3bn)
and the reversal of gains on own credit, net of tax (£1.2bn).
Tier 2 capital increased by £8.5bn due to issuance of loan capital
(£3.6bn) net of redemptions (£1.1bn), inclusion of innovative capital in
excess of the Tier 1 limits (£1.3bn), increases in collective impairment
(£1.2bn) and exchange rate movements (£3.9bn).
Capital ratios under Basel II 2009 2008 2007
Barclays Barclays Barclays Barclays Barclays Barclays
PLC Bank PLC PLC Bank PLC PLC Bank PLC
Group Group Group Group Group Group
Capital ratios %%%%%%
Core Tier 1 ratio 10.0 10.1 5.6 5.6 4.7 4.5
Tier 1 ratio 13.0 13.0 8.6 8.6 7.6 7.3
Risk asset ratio 16.6 16.6 13.6 13.5 11.2 11.0
Risk weighted assets £m £m £m £m £m £m
Credit risk 252,054 252,054 266,912 266,912 244,474 244,469
Counterparty risk 45,450 45,450 70,902 70,902 41,203 41,203
Market risk
– Modelled – VaR 10,623 10,623 14,452 14,452 7,270 7,270
– Modelled – IRDCaand non-VaR 5,378 5,378 7,771 7,771 5,522 5,522
– Standardised 38,525 38,525 43,149 43,149 27,020 27,020
Operational risk 30,623 30,623 30,116 30,116 28,389 28,389
Total risk weighted assets 382,653 382,653 433,302 433,302 353,878 353,873
Note
aIncremental Default Risk Charge.