Barclays 2014 Annual Report Download - page 200

198 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Funding risk – Liquidity
Risk review
Composition of wholesale funding
The Group maintains access to a variety of sources of wholesale funds in major currencies, including those available from term investors across a
number of distribution channels and geographies, money markets, and repo markets. The Group has direct access to US, European and Asian
capital markets through its global investment banking operations and long-term investors through its clients worldwide, and is an active
participant in money markets. As a result, wholesale funding is well diversified by product, maturity, geography and major currency.
As at 31 December 2014, total wholesale funding outstanding (excluding repurchase agreements) was £171bn (2013: £186bn). £75bn (2013:
£82bn) of wholesale funding matures in less than one year, of which £22bn (2013: £23bn)a relates to term funding. £96bn (2013: £104bn) of
wholesale funding had a residual maturity of over one year.
As at 31 December 2014, outstanding wholesale funding comprised £33bn (2013: £35bn) of secured funding and £138bn (2013: £151bn) of
unsecured funding.
In preparation for a Single Point of Entry resolution model, the Group has started to issue debt capital and term senior unsecured funding out
of Barclays PLC, the holding company. The Group expects to refinance most debt capital and term senior unsecured debt out of Barclays PLC
over time.
Maturity profile of wholesale fundingb
Not more
than one
month
£bn
Over one
month but
not more
than three
months
£bn
Over three
months
but not
more than
six months
£bn
Over six
months
but not
more than
nine
months
£bn
Over nine
months
but not
more than
one year
£bn
Sub-total
less than
one year
£bn
Over one
year but
not more
than two
years
£bn
Over two
years but
not more
than five
years
£bn
More than
five years
£bn
Total
£bn
Barclays PLC
Senior unsecured (Public benchmark) –––––––1.3 0.8 2.1
Subordinated liabilities ––––––––0.8 0.8
Barclays Bank PLC
Deposits from banks 9.2 5.7 0.9 0.5 0.3 16.6 0.2 0.1 0.2 17.1
Certificates of deposit and commercial paper 0.8 5.6 7.8 6.0 4.0 24.2 0.6 2.0 0.6 27.4
Asset backed commercial paper 1.0 4.4 0.2 – – 5.6 – – – 5.6
Senior unsecured (Public benchmark) – 2.0 0.7 1.1 – 3.8 2.7 7.9 5.1 19.5
Senior unsecured (Privately placed)c0.6 1.8 3.3 3.8 2.0 11.5 7.2 13.3 12.6 44.6
Covered bonds/ABS 2.7 2.0 0.7 1.6 0.2 7.2 2.2 7.5 6.0 22.9
Subordinated liabilities – 0.1 – – – 0.1 – 2.9 16.7 19.7
Otherd2.5 1.6 0.8 0.5 1.0 6.4 1.1 1.6 2.6 11.7
Total as at 31 December 2014 16.8 23.2 14.4 13.5 7.5 75.4 14.0 36.6 45.4 171.4
Of which secured 5.3 7.8 1.7 1.9 0.3 17.0 2.7 7.6 6.0 33.3
Of which unsecured 11.5 15.4 12.7 11.6 7.2 58.4 11.3 29.0 39.4 138.1
Total as at 31 December 2013 20.3 24.0 15.5 15.9 6.3 82.0 27.1 33.8 42.6 185.5
Of which secured 4.6 3.7 1.4 3.5 0.7 13.9 7.3 6.5 7.2 34.9
Of which unsecured 15.7 20.3 14.1 12.4 5.6 68.1 19.8 27.3 35.4 150.6
Outstanding wholesale funding includes £45bn (2013: £50bn) of privately placed senior unsecured notes in issue. These notes are issued through
a variety of distribution channels including intermediaries and private banks. Although not a requirement, the liquidity pool exceeded wholesale
funding maturing in less than one year by £74bn (2013: £45bn).
The average maturity of wholesale funding net of the liquidity pool was at least 105 months (2013: 69 months).
Notes
a Term funding maturities comprise public benchmark and privately placed senior unsecured notes, covered bonds/asset-backed securities (ABS) and subordinated debt where
the original maturity of the instrument was more than one year.
b The composition of wholesale funds comprises the balance sheet reported deposits from banks, financial liabilities at fair value, debt securities in issue and subordinated
liabilities, excluding cash collateral and settlement balances. It does not include collateral swaps, including participation in the Bank of England’s Funding for Lending Scheme.
Included within deposits from banks are £1bn of liabilities drawn in the European Central Bank’s 3 year LTRO.
c Includes structured notes of £35bn, £9bn of which mature within one year.
d Primarily comprised of fair value deposits (£5bn) and secured financing of physical gold (£5bn).