Barclays 2003 Annual Report Download - page 105

Barclays PLC Annual Report 2003 103
Securities
The following table analyses the book value and valuation of securities.
2003 2002 2001
Book value Valuation Book value Valuation Book value Valuation
restated restated restated restated
£m £m £m £m £m £m
Investment securities
Debt securities:
United Kingdom government 565 621 1,465 1,496 1,500 1,499
Other government 16,347 16,772 18,963 19,564 15,152 15,330
Other public bodies 78 79 17 17 3 3
Mortgage-backed securities 3,074 3,077 4,693 4,704 244 255
Corporate issuers 13,826 13,966 12,601 12,666 12,977 12,987
Other issuers 3,691 3,695 2,529 2,530 1,168 1,170
Equity shares 954 1,134 505 509 194 215
38,535 39,344 40,773 41,486 31,238 31,459
Other securities
Debt securities:
United Kingdom government 2,084 2,084 1,025 1,025 1,284 1,284
Other government 28,011 28,011 25,385 25,385 15,659 15,659
Other public bodies 4,513 4,513 2,438 2,438 1,091 1,091
Bank and building society certificates of deposit 5,796 5,796 12,027 12,027 15,376 15,376
Other issuers 19,408 19,408 13,086 13,086 14,470 14,470
Equity shares 6,905 6,905 2,624 2,624 2,924 2,924
105,252 106,061 97,358 98,071 82,042 82,263
Investment debt securities include government securities held as part of the Group’s treasury management portfolio for asset and liability, liquidity
and regulatory purposes and are for use on a continuing basis in the activities of the Group. In addition, the Group holds as investments listed and
unlisted corporate securities. Investment securities are valued at cost, adjusted for the amortisation of premiums or discounts to redemption, less any
provision for diminution in value.
Other securities comprise dealing securities which are valued at market value.
Bank and building society certificates of deposit are freely negotiable and have original maturities of up to five years, but are typically held for shorter periods.
A further analysis of the book value and valuation of securities is given in Notes 17 and 18 to the accounts on pages 137 and 138.
In addition to UK government securities shown above, at 31st December 2003 and 2002 the Group held the following government securities which
exceeded 10% of shareholders’ funds. 2003 2002
Book value Valuation Book value Valuation
£m £m £m £m
United States government securities 10,155 10,203 12,728 12,811
Japanese government securities 9,802 9,806 7,060 7,080
Italian government securities 5,770 5,835 7,944 8,090
German government securities 4,468 4,504 3,026 3,048
French government securities 2,674 2,697 1,518 1,518
Spanish government securities 2,594 2,650 2,890 2,988
Maturities and weighted average yield of investment debt securities
Maturing within Maturing after one but Maturing after five but Maturing after
one year: within five years: within ten years: ten years: Total
Amount Yield Amount Yield Amount Yield Amount Yield Amount yield
£m % £m % £m % £m % £m %
Government 2,709 4.2 6,281 4.7 6,345 3.9 1,577 3.0 16,912 4.2
Other public bodies 49 4.2 29 3.4 ––––78 3.8
Other issuers 5,804 2.9 8,981 2.7 1,033 4.1 4,773 3.4 20,591 3.0
Total book value 8,562 3.3 15,291 3.5 7,378 3.9 6,350 3.3 37,581 3.5
Total valuation 8,722 15,502 7,541 6,445 38,210
The weighted average yield for each range of maturities is calculated by dividing the annualised interest income prevailing at 31st December 2003 by
the book value of securities held at that date. Yields on certain US securities, which are exempt from tax, have been calculated using interest income
adjusted to reflect a taxable equivalent basis.
Financial Review
Securities