Barclays 2011 Annual Report Download - page 148

Risk management
Funding risk – Liquidity continued
Composition of wholesale fundinga (audited)
The Group maintains access to a variety of sources of wholesale funds in USD, EUR and GDP, including those available from money markets, repo
markets and from term investors, across a variety of distribution channels and geographies. Barclays are an active participant in money markets, have
direct access to US, European and Asian capital markets through our global investment banking operations and long-term investors through our global
client base. As a result, wholesale funding is well diversified by product, maturity, geography and major currency.
Maturity of wholesale funding (audited)
Not more
than three
months
£bn
Over three
months but
not more
than six
months
£bn
Over six
months but
not more
than one
year
£bn
Sub-total
less than
one year
£bn
Over one
year but
not more
than three
years
£bn
Over three
years
£bn
Total
£bn
As at 31 December 2011
Deposits from Banks 34.1 0.9 0.9 35.9 0.3 1.7 37.9
CDs and CP 35.0 7.5 4.0 46.5 1.9 1.0 49.4
ABCP 8.9 0.2 – 9.1 – – 9.1
Senior unsecured MTNs (Public benchmark) 4.7 0.1 2.5 7.3 11.1 14.6 33.0
Senior unsecured MTNs (Privately placed) 3.1 1.6 3.4 8.1 6.5 11.7 26.3
Senior unsecured structured notes 3.2 2.1 3.9 9.2 12.4 28.0 49.6
Covered bonds/ABS 0.3 2.5 0.8 3.6 6.3 14.2 24.1
Subordinated liabilities ––––0.8 23.0 23.8
Otherb7.7 1.5 1.4 10.6 1.4 – 12.0
Total 97.0 16.4 16.9 130.3 40.7 94.2 265.2
of which secured 10.9 3.9 2.1 16.9 6.9 14.9 38.7
of which unsecured 86.1 12.5 14.8 113.4 33.8 79.3 226.5
The maturity of wholesale funding table includes £27bn of term financing maturing in 2012c.
The liquidity risk is carefully managed primarily through the LRA stress tests, against which the liquidity pool is held. Although not a requirement,
as at 31 December 2011, the liquidity pool was equivalent to more than one year of wholesale debt maturities.
Excluding wholesale funding of the liquidity pool, the average maturity of wholesale funding was at least 58 months.
Term financing (audited)
As outlined above, the Group has £27bn of term debt maturing in 2012 and a further £16bn maturing in 2013.
The Group continues to attract deposits in unsecured money markets and to raise additional secured and unsecured term funding in a variety
of markets. During 2011, the Group issued approximately £30bn of term funding, comprising:
– £3.8bn equivalent of public benchmark senior unsecured medium term notes;
– £5.0bn equivalent of privately placed senior unsecured medium term notes;
– £10.1bn equivalent of senior unsecured structured notes;
– £10.3bn equivalent of public covered bonds/ABS; and
– £1.0bn equivalent of public subordinated debt.
This term funding raised during 2011 re-financed all wholesale term debt maturing in 2011, funded strategic balance sheet growth and further
strengthened the Group’s term liquidity position. In January 2012 £5bn of funding was raised.
Notes
a The composition of wholesale funds is reconciled to the balance sheet reported Deposits from Banks (excluding cash collateral and settlement balances), Financial liabilities at Fair Value
and Debt Securities in Issue split by product and Subordinated Liabilities, in all cases excluding Absa Group balances.
b Primarily comprised of Fair Value Deposits and secured financing of physical gold.
c Term funding maturities are maturities of senior unsecured MTNs, structured notes, covered bonds/ABS and subordinated debt where the original maturity of the instrument was more
than 1 year. In addition, as at 31 December 2011, £1.2bn of these instruments were not term financing as they had an original maturity of less than 1 year.
146 Barclays PLC Annual Report 2011 www.barclays.com/annualreport