Barclays 2011 Annual Report Download - page 136

Risk management
Funding risk – Capital continued
Capital demand
Risk weighted assets by risk 2011
£m
2010
£m
Credit risk 245,224 260,998
Counterparty risk
– Internal model method 33,131 29,466
– Non-model method 4,953 14,397
Market risk
– Modelled – VaR 26,568 9,209
– Modelled – Charges add-on and Non-VaR 17,560 3,769
– Standardised 27,823 48,073
Operational risk 35,740 32,119
Total risk weighted assets 390,999 398,031
Total assets and risk weighted assets by business Total assets Risk weighted assets
2011
£m
2010
£m
2011
£m
2010
£m
UK RBB 127,845 121,590 33,956 35,274
Europe RBB 51,310 53,609 17,436 17,269
Africa RBB 50,759 60,264 33,419 38,401
Barclaycard 33,838 30,324 34,186 31,913
Barclays Capital 1,158,351 1,094,799 186,700 191,275
Barclays Corporate 88,674 85,735 69,712 70,796
Barclays Wealth 20,866 17,849 13,076 12,398
Investment Management 4,066 4,612 125 74
Head Office Functions and Other Operations 27,818 20,863 2,389 631
Total 1,563,527 1,489,645 390,999 398,031
Group risk weighted assets decreased by 2% to £391bn (2010: £398bn) driven by:
– approximately £30bn increase from implementation of CRD3 incorporating Basel 2.5, predominantly in modelled market risk;
– £26bn reduction across credit, counterparty and market risk in Barclays Capital, due to lower levels of activity combined with risk reduction, offset by
a £4bn increase relating to market stress. £11bn reduction from currency movements, primarily depreciation of the Rand and Euro against Sterling;
– £9bn reduction due to credit market exposure sell down in Barclays Capital; and
– £5bn increase from business growth, £2bn relating to UK RBB and Barclays Corporate, reflecting delivery against Project Merlin targets, and £3bn
from Barclaycard acquisitions.
134 Barclays PLC Annual Report 2011 www.barclays.com/annualreport