Barclays 2003 Annual Report Download - page 103

Barclays PLC Annual Report 2003 101
Capital adequacy data
2003 2002
£m £m
Weighted risk assets
Banking book
on-balance sheet 133,816 128,691
off-balance sheet 22,987 21,999
Associated undertakings
and joint ventures 2,830 3,065
Total banking book 159,633 153,755
Trading book
Market risks 13,861 7,988
Counterparty and settlement risks 15,503 11,005
Total trading book 29,364 18,993
Total weighted risk assets 188,997 172,748
The following table analyses capital resources at 31st December 2003,
as defined for regulatory purposes:
2003 2002
Barclays Barclays Barclays Barclays
PLC Bank PLC PLC Bank PLC
Group Group Group Group
Capital resources £m £m £m £m
Tier 1
Called up share
capital 1,636 2,302 1,642 2,293
Eligible reserves 14,663 13,997 13,408 12,757
Minority interests
– equity 637 637 522 522
Reserve Capital
Instruments(a) 1,705 1,705 1,771 1,771
Tier One Notes(a) 960 960 1,019 1,019
Less: goodwill (4,607) (4,607) (4,158) (4,158)
Total qualifying
Tier 1 capital 14,994 14,994 14,204 14,204
2003 2002
£m £m
Tier 2
Revaluation reserves 25 25
General provisions 795 737
Qualifying subordinated
liabilities(b)
Undated loan capital 3,636 3,854
Dated loan capital 5,652 4,573
Other(c) 22
Total qualifying Tier 2 capital 10,110 9,191
Tier 3: short-term
subordinated liabilities(b) 280 203
Less: Supervisory deductions
Investments not consolidated
for supervisory purposes(d) (979) (1,288)
Other deductions (182) (119)
Total deductions (1,161) (1,407)
Total net capital resources 24,223 22,191
Capital ratios
2003 2002
Barclays Barclays Barclays Barclays
PLC Bank PLC PLC Bank PLC
Group Group Group Group
£m £m £m £m
%%%%
Capital ratios
Equity Tier 1 ratio(e) 6.5 6.5 6.6 6.6
Tier 1 ratio 7.9 7.9 8.2 8.2
Risk asset ratio 12.8 12.8 12.8 12.8
Notes
(a) Reserve Capital Instruments (RCIs) and Tier One Notes (TONs) are
included in undated loan capital in the consolidated balance sheet.
(b) Subordinated liabilities are included in Tiers 2 or 3, subject to limits
laid down in the supervisory requirements. Barclays retains
significant capacity to raise additional capital within these limits.
(c) Comprises revaluation reserves attributable to minorities £2m
(2002: £2m).
(d) Includes £478m (2002: £867m) of shareholders’ interest in the
retail life-fund.
(e) Equity defined as total qualifying Tier 1 capital less RCIs and TONs.
The growth in net capital resources of 9.2% (£2.0bn) was offset by the
impact of 9.4% (£16.2bn) growth in weighted risk assets. The risk asset
ratio was steady at 12.8% (31st December 2002: 12.8%). The Tier 1 ratio
fell from 8.2% to 7.9%. The Equity Tier 1 ratio fell to 6.5% (2002: 6.6%).
Within total net capital, Tier 1 capital rose by £0.8bn primarily reflecting
retained profits of £1.4bn and an increase in the deduction for goodwill
of £0.4bn. Tier 2 capital increased by £0.9bn and Tier 3 capital by
£0.1bn. Supervisory deductions decreased by £0.2bn.
Equity Tier 1 capital rose by £0.9bn.
The increase in weighted risk assets is primarily accounted for by a rise
of 54.6% (£10.4bn) in the Trading book. Banking book weighted risk
assets grew 3.8% (£5.9bn).
0
5
10
2001 2002 2003£bn
15
Tier 1 ratio
Risk asset ratio
7.8
6.6
8.2 7.9
6.6 6.5
12.5 12.8 12.8
Equity Tier 1 ratio