Barclays 2010 Annual Report Download - page 280

Glossary of terms
‘Absa’ The South African segment of Barclays PLC, comprising Absa Group
Limited, but excluding Absa Capital, Absa Card and Absa Wealth which are
reported within Barclays Capital, Barclaycard, and Barclays Wealth
respectively.
‘Absa Card’ The portion of Absa’s results that arises from the Absa credit
card business and is reported within Barclaycard.
‘Absa Capital’ The portion of Absa’s results that is reported by Barclays
within the Barclays Capital business.
‘Absa Group Limited’ Refers to the consolidated results of the South
African group which is listed on the Johannesburg Stock Exchange in
which Barclays owns a controlling stake.
‘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 – Barclays Capital Credit Market Exposures.
‘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 and cash collateral on derivative
liabilities, goodwill and intangible assets. See ‘Tier 1 Capital’ below.
‘Adjusted profit before tax’ Profit before tax excluding the gain on own
credit of £391m (2009:£1,820m charge), gains on acquisitions and
disposals of £210m (2009:£214m) and gains on debt buy-backs and
extinguishments of £nil (2009: £1,429m).
‘Africa’ The geographic segment comprising countries where Barclays
operates within Africa and the Indian Ocean.
‘Alt-A’ Loans regarded as lower risk than sub-prime, but with higher risk
characteristics than lending under normal criteria. See Risk Management
section – Barclays Capital Credit Market Exposures.
‘Americas’ The geographic segment comprising the USA, Canada and
countries where Barclays operates within Latin America.
‘Annual Earnings at Risk (AEaR)’ 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.
‘Asia’ The geographic segment comprising countries where Barclays
operates within Asia (including Singapore, Japan, China and India),
Australasia and the Middle East.
‘Asset backed products’ As used in Note 41 ‘Fair value of financial
instruments’, 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 – Barclays Capital
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 customer balances’ Balances in the average balance sheet which
are based on daily averages for most UK banking operations and monthly
averages outside the UK.
‘Average Daily Value at Risk’ The average Daily Value at Risk (defined
below) for a specified period of time.
‘Average LTV on new mortgages’ The ratio of all new mortgage balances
disbursed in the period to the appraised property value of those
mortgages, i.e. total amount disbursed year-to-date divided by total
amount of appraised property value.
‘Average net income per employee’ Total operating income compared
to the average number of employees for the reporting period.
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
Net income Net revenue
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
278 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10