Barclays 2014 Annual Report Download - page 190

188 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Funding risk – Capital
Risk review
Risk weighted assets (RWAs) by risk type and business
As at 31 December 2014
Credit risk Counterparty credit riskaMarket riskb
Operational
risk Total RWAs
Std
£m
IRB
£m
Std
£m
IRB
£m
Std
£m
IMA
£m £m £m
Personal and Corporate Banking 32,657 70,080 238 1,049 26 – 16,176 120,226
Barclaycard 15,910 18,492 – – – – 5,505 39,907
Africa Banking 9,015 21,794 10 562 948 588 5,604 38,521
Investment Bank 5,773 36,829 13,739 11,781 18,179 16,480 19,621 122,402
Head Office 506 2,912 234 62 7 521 1,326 5,568
Total Core 63,861 150,107 14,221 13,454 19,160 17,589 48,232 326,624
Barclays Non-Core 10,679 19,416 3,023 18,406 2,236 13,088 8,428 75,276
Total risk weighted assets 74,540 169,523 17,244 31,860 21,396 30,677 56,660 401,900
As at 31 December 2013
Personal and Corporate Banking 30,750 71,635 174 649 57 – 15,020 118,285
Barclaycard 14,357 15,676 – – – – 5,627 35,660
Africa Banking 7,435 21,807 9 529 494 935 6,837 38,046
Investment Bank 3,681 33,215 11,200 19,511 21,756 16,921 18,096 124,380
Head Office 251 7,760 411 1,747 3,612 1,356 1,089 16,226
Total Core 56,474 150,093 11,794 22,436 25,919 19,212 46,669 332,597
Barclays Non-Core 19,120 29,677 5,152 20,709 7,819 19,755 7,642 109,874
Total risk weighted assets 75,594 179,770 16,946 43,145 33,738 38,967 54,311 442,471
Movement analysis of risk weighted assets
Credit risk
£bn
Counterparty
credit riska
£bn
Market riskb
£bn
Operational
risk
£bn
Total RWAs
£bn
As at 1 January 2014 255.4 60.1 72.7 54.3 442.5
Book size 14.4 (16.0) (15.8) – (17.4)
Acquisitions and disposals (12.9) (0.3) (1.3) – (14.5)
Book quality (4.4) (2.1) 1.2 – (5.3)
Model updates 6.0 3.5 (1.0) 3.4 11.9
Methodology and policy (10.6) 1.3 (3.6) – (12.9)
Foreign exchange movementc(0.5) – – (1.0) (1.5)
Other (3.4) 2.6 (0.1) – (0.9)
As at 31 December 2014 244.0 49.1 52.1 56.7 401.9
RWAs decreased £40.6bn to £401.9bn, driven by:
Q Book size decreased £17.4bn driven by trading book risk reductions within the Investment Bank and BNC, partially offset by growth in loans and
advances to customers in PCB and Barclaycard;
Q Acquisitions and disposals decreased £14.5bn primarily driven by BNC disposals. The sale of the Spanish business, completed on 2 January
2015, would decrease RWAs further by £5.0bn;
Q Book quality decreased £5.3bn due to improvements in underlying Investment Bank and PCB exposure risk profiles;
Q Model updates increased £11.9bn, primarily driven by the implementation of a revised credit risk model for assessing the probability of
counterparty default;
Q Methodology and policy decreased £12.9bn due to regulatory changes to the treatment of high quality liquid assets; and
Q Foreign exchange movements decreased £1.5bn due to the depreciation of ZAR and EUR against GBP, partially offset by the appreciation of USD
against GBP.
Notes
a RWAs in relation to default fund contributions are included in counterparty credit risk.
b RWAs in relation to CVA are included in market risk.
c Foreign exchange movement does not include foreign exchange for counterparty credit risk or market risk.