Barclays 2014 Annual Report Download - page 245

barclays.com/annualreport Barclays PLC Annual Report 2014 I 243
Returns and equity by business
Returns on average equity and average tangible equity are calculated as
profit for the year attributable to ordinary equity holders of the parent
(adjusted for the tax credit recorded in reserves in respect of coupons
on other equity instruments) divided by average allocated equity or
average allocated tangible equity for the period as appropriate,
excluding non-controlling and other equity interests for businesses,
apart from Africa Banking (see below). Allocated equity has been
calculated as 10.5% of CRD IV fully loaded risk weighted assets for
each business, adjusted for CRD IV fully loaded capital deductions,
including goodwill and intangible assets, reflecting the assumptions
the Group uses for capital planning purposes. The excess of allocated
Group equity, caused by the fully loaded CRD IV CET1 ratio being below
10.5% on average in the period, is allocated as negative equity to Head
Office. Allocated tangible equity is calculated using the same method,
but excludes goodwill and intangible assets.
For Africa Banking, the equity used for return on average equity is
Barclays’ share of the statutory equity of the BAGL entity (together with
that of the Barclays Egypt and Zimbabwe businesses which remain
outside the BAGL corporate entity), as well as Barclays’ goodwill on
acquisition of these businesses. The tangible equity for return on
tangible equity uses the same basis, but excludes both the Barclays’
goodwill on acquisition and the goodwill and intangibles held within
the BAGL statutory equity.
Notes
a Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents their impact on Barclays Core and the Group respectively. This does not
represent the return on average equity and average tangible equity of Head Office or the Non-Core business.
b The profit after tax attributable to other equity holders of £250m (2013: £nil; 2012: £nil) is offset by a tax credit recorded in reserves of £54m (2013: £nil; 2012: £nil) allocated
across the businesses. The net amount of £196m, along with NCI, is deducted from profit after tax in order to calculate return on average tangible shareholders’ equity and return
on average shareholders’ equity. Hence, 2014 attributable profit of £2,779m has been adjusted for the tax credit recorded in reserves of £54m (2013: £nil; 2012: £nil).
c 2012 returns calculated using average allocated equity based on CRD III RWAs and capital deductions.
Return on average equity
2014
%
2013
%
2012c
%
Personal and Corporate Banking 11.9% 9.7% 11.1%
Barclaycard 16.0% 15.5% 18.0%
Africa Banking 9.3% 8.1% 7.2%
Investment Bank 2.7% 8.2% 9.6%
Barclays Core excluding Head Office 8.9% 9.7% 10.9%
Head Officea0.3% 1.6% (0.8%)
Barclays Core 9.2% 11.3% 10.1%
Barclays Non-Corea(4.1%) (7.2%) (1.1%)
Barclays Group adjusted total 5.1% 4.1% 9.0%
Return on average tangible equity
2014
%
2013
%
2012c
%
Personal and Corporate Banking 15.8% 12.7% 15.0%
Barclaycard 19.9% 19.9% 23.7%
Africa Banking 12.9% 11.3% 10.0%
Investment Bank 2.8% 8.5% 10.1%
Barclays Core excluding Head Office 10.8% 11.6% 13.4%
Head Officea0.5% 2.8% (1.0%)
Barclays Core 11.3% 14.4% 12.4%
Barclays Non-Corea(5.4%) (9.6%) (1.8%)
Barclays Group adjusted total 5.9% 4.8% 10.6%
Profit/(loss) attributable to ordinary equity holders of the parentb
2014
£m
2013
£m
2012
£m
Personal and Corporate Banking 2,075 1,681 1,703
Barclaycard 943 822 812
Africa Banking 360 356 347
Investment Bank 415 1,308 1,235
Head Office 112 (89) 23
Barclays Core 3,905 4,078 4,120
Barclays Non-Core (1,072) (1,890) 515
Barclays Group adjusted total 2,833 2,188 4,635
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