Barclays 2011 Annual Report Download - page 134

Risk management
Funding risk – Capital continued
Capital adequacy
Key capital ratios
Basel 2
Minimum
Basel 3
Minimum
As at
31.12.11
As at
31.12.10
As at
31.12.09
Core Tier 1 n/a 7.0% 11.0% 10.8% 10.0%
Tier 1 n/a n/a 12.9% 13.5% 13.0%
Total capital 8.0% 10.0% 16.4% 16.9% 16.6%
Barclays has continued to maintain a capital buffer over the FSA’s minimum regulatory capital requirements.
Capital supply
Regulatory capital summary (audited)
2011
£m
2010
£m
2009
£m
Core Tier 1 capital 43,066 42,861 38,437
Tier 1 capital 50,473 53,546 49,637
Tier 2 capital 16,063 16,019 14,703
Deductions from total capital (2,588) (2,250) (880)
Total capital resources 63,948 67,315 63,460
Core Tier 1 capital increased by £0.2bn to £43.1bn primarily driven by:
– £2.6bn capital generated from retained profits excluding own credit gain, impairment of investment in BlackRock, Inc. and goodwill impairment,
which are added back for regulatory capital purposes;
– £1.1bn reduction in the value of the investment in BlackRock, Inc. prior to impairment;
– £0.5bn net increase from the impact of share awards on shareholders’ funds;
– £1.3bn reduction reflecting contributions made to the UK Retirement Fund in 2011;
– £1.3bn reduction due to foreign currency movements, primarily depreciation of the South African Rand and Euro against Sterling; and
– £0.8bn increase resulting from lower regulatory deductions.
Total capital resources decreased by £3.4bn to £63.9bn principally as a result of the debt buy-back in December 2011 of £1.9bn Reserve Capital
Instruments and £0.5bn Tier 1 notes that will not qualify as Tier 1 capital under Basel 3 and the further redemption of £1.3bn of Reserve Capital
Instruments.
132 Barclays PLC Annual Report 2011 www.barclays.com/annualreport