Barclays 2012 Annual Report Download - page 164

Capital risk
Capital risk is the risk that the Group is unable to maintain appropriate capital ratios, which could lead to:
an inability to support business activity; a failure to meet regulatory requirements; or a change to credit ratings.
Capital management is integral to the Group’s approach to financial stability and sustainability management and is therefore embedded in the way
our businesses and legal entities operate. Our capital management strategy is driven by the strategic aims of the Group and the risk appetite set
by the Board.
For further information on related policies, please refer to the Risk management section on pages 313-343.
For further information on supervision and regulation, refer to pages 190-195.
Barclays has continued to maintain a capital buffer over the FSA’s minimum regulatory capital requirements.
 The Core Tier 1 ratio decreased to 10.9% (2011: 11.0%) reflecting a reduction in Core Tier 1 capital of £0.9bn to £42.1bn, partially offset
by a 1% reduction in risk weighted assets to £386.9bn.
Barclays generated £1.8bn Core Tier 1 capital from earnings after absorbing the impact of dividends paid and provisions for PPI and interest rate
hedging product redress. The increase from earnings was more than offset by other movements in Core Tier 1 capital, principally:
 £1.2bn increase in the adjustment for defined benefit pensions, driven by an additional contribution made to the UK Retirement Fund in
April 2012 and deducting expected future deficit contributions over the next five years;
 £1.6bn reduction due to foreign currency movements, primarily due to depreciation of the US Dollar, Euro and South African Rand against
Sterling which was broadly offset by foreign currency movements in risk weighted assets; and
 Total capital resources increased by £2.1bn reflecting lower deductions for material holdings principally as a result of the sale of the stake
in BlackRock, Inc. Within Tier 2 capital, the redemption of £2.7bn dated subordinated liabilities was partially offset by the issuance of $3bn
of contingent capital notes (CCNs).
All disclosures in this section (pages 162-171) are unaudited unless otherwise stated
barclays.com/annualreport162 I Barclays PLC Annual Report 2012
Risk review
Funding risk – Capital