Barclays 2014 Annual Report Download - page 321

barclays.com/annualreport Barclays PLC Annual Report 2014 I 319
31 Ordinary shares, share premium, and other equity continued
The principal terms of the AT1 securities are described below:
Q AT1 securities rank behind the claims against Barclays PLC of (i) unsubordinated creditors; (ii) claims which are expressed to be subordinated to
the claims of unsubordinated creditors of Barclays PLC but not further or otherwise; or (iii) claims which are, or are expressed to be, junior to
the claims of other creditors of Barclays PLC, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank,
pari passu with, or junior to, the claims of holders of the AT1 securities
Q AT1 securities bear a fixed rate of interest until the initial call date. After the initial call date, in the event that they are not redeemed, the AT1
securities will bear interest at rates fixed periodically in advance for five year periods based on market rates
Q Interest on the AT1 securities will be due and payable only at the sole discretion of Barclays PLC, and Barclays PLC has sole and absolute
discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any interest
payment date
Q AT1 securities are undated and are repayable, at the option of Barclays PLC, in whole at the initial call date, or on any fifth anniversary after the
initial call date. In addition, the AT1 securities are repayable, at the option of Barclays PLC, in whole in the event of certain changes in the tax or
regulatory treatment of the securities. Any repayments require the prior consent of the PRA
All AT1 securities will be converted into ordinary shares of Barclays PLC, at a pre-determined price, should the fully loaded CET1 ratio of the
Barclays PLC Group fall below 7.0%.
32 Reserves
Currency translation reserve
The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign
operations, net of the effects of hedging.
As at 31 December 2014 there was a debit balance of £582m (2013: £1,142m debit) in the currency translation reserve. The decrease in the debit
balance of £560m (2013: £1,201m decrease to a debit balance) principally reflected the strengthening of USD against GBP. The currency
translation reserve movement associated with non-controlling interests was a £74m debit (2013: £566m debit) reflecting the further depreciation
of ZAR against GBP.
During the year a £91m net gain (2013: £5m) from recycling of the currency translation reserve was recognised in the income statement.
Available for sale reserve
The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.
As at 31 December 2014 there was a credit balance of £562m (2013: £148m credit) in the available for sale reserve. The increase of £414m (2013:
£379m decrease) principally reflected a £5,336m gain from changes in fair value on Government Bonds, predominantly held in the liquidity pool,
offset by £4,074m of losses from related hedging, £620m of net gains transferred to net profit and £103m of tax.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the
income statement when the hedged transactions affect profit or loss.
As at 31 December 2014 there was a credit balance of £1,817m (2013: £273m credit) in the cash flow hedging reserve. The increase of £1,544m
(2013: £1,826m decrease) principally reflected a £2,662m increase in the fair value of interest rate swaps held for hedging purposes as interest
rate forward curves decreased, partly offset by £737m gains recycled to the income statement in line with when the hedged item affects profit or
loss, and £381m of tax.
Other reserves and treasury shares
As at 31 December 2014 there was a credit balance of £1,011m (2013: £1,011m credit) in other reserves relating to the excess repurchase price
paid over nominal of redeemed ordinary and preference shares issues by the Group.
Treasury shares are deducted from shareholders’ equity within other reserves. A transfer is made to retained earnings in line with the vesting of
treasury shares held for the purposes of share-based payments.
The treasury shares primarily relate to Barclays PLC shares held in relation to the Group’s various share schemes. These schemes are described in
Note 34 Share Based Payments.
As at 31 December 2014 there was a debit balance of £84m (2013: £41m debit) in other reserves relating to treasury shares. The increase
principally reflected £909m (2013: £1,066m) of net purchases of treasury shares held for the purposes of employee share schemes, partially offset
by £866m (2013: £1,047m) transferred to retained earnings reflecting the vesting of deferred share based payments.
33 Non-controlling interests
Profit attributable to
non-controlling interest
Equity attributable to
non-controlling interest
Dividends paid to
non-controlling interest
2014
£m
2013
£m
2014
£m
2013
£m
2014
£m
2013
£m
Barclays Bank PLC issued:
– Preference shares 441 410 3,654 5,868 441 471
– Upper Tier 2 instruments 2 2 486 485 – –
Barclays Africa Group Limited 320 343 2,247 2,204 189 342
Other non-controlling interests 6 2 4 7 1 –
Total 769 757 6,391 8,564 631 813
Subsidiaries of the Group that give rise to significant non-controlling interests are Barclays Bank PLC and Barclays Africa Group Limited.
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