Barclays 2003 Annual Report Download - page 139

17 Debt securities
2003 2002
Gross Gross Gross Gross
Balance unrealised unrealised Balance unrealised unrealised
sheet gains losses Valuation sheet gains losses Valuation
Investment securities: £m £m £m £m £m £m £m £m
United Kingdom government 565 63 (7) 621 1,465 31 – 1,496
other government 16,347 475 (50) 16,772 18,963 601 – 19,564
other public bodies 78 1 – 79 17––17
mortgage-backed securities 3,074 7 (4) 3,077 4,693 11 – 4,704
corporate issuers 13,826 158 (18) 13,966 12,601 81 (16) 12,666
other issuers 3,691 6 (2) 3,695 2,529 1 – 2,530
37,581 710 (81) 38,210 40,268 725 (16) 40,977
Other debt securities:
United Kingdom government 2,084 – – 2,084 1,025 – – 1,025
other government 28,011 – – 28,011 25,385 – – 25,385
other public bodies 4,513 – – 4,513 2,438 – – 2,438
bank and building society
certificates of deposit 5,796 – – 5,796 12,027 – – 12,027
other issuers 19,408 – – 19,408 13,086 – – 13,086
97,393 710 (81) 98,022 94,229 725 (16) 94,938
2003
Balance
Cost Provisions sheet
Movements in investment securities £m £m £m
At beginning of year 40,323 (55) 40,268
Exchange and other adjustments (21) – (21)
Acquisitions and transfers 35,797 – 35,797
Redemption of Investment securities (17,137) – (17,137)
Sale of Investment securities (21,206) 5 (21,201)
Provisions raised – (15) (15)
Amortisation of discounts and premiums (110) – (110)
At end of year 37,646 (65) 37,581
The total value of debt securities at 31st December 2003 includes securities which are subject to sale and repurchase agreements of £10,259m
(2002: £5,839m) unamortised net premium on investment securities of £153m (2002: £590m) and holdings by the Group of debt securities of £4m
(2002: £1m) issued by associated undertakings or joint ventures. The value of securities due within one year at 31st December 2003 was £20,458m
(2002: £22,281m).
During 1999, the Group securitised a portfolio of investment debt securities. Linked presentation under FRS 5 is not available and therefore the
portfolio with a sterling equivalent book value of £192m at 31st December 2003 (2002: £318m) is included within the total above. The funding
from this transaction is reported in Other liabilities (Note 29 on page 144).
The Group has a portfolio of investment debt securities, a large portion of which are subject to limited recourse financing. Linked presentation under
FRS 5 is not available and therefore the portfolio with a sterling equivalent book value of £3,750m (2002: £457m) is included in the total above, with
the financing reported in Deposits by banks and Debt securities in issue. At 31st December 2003, the Group’s net exposure to these investment debt
securities, after taking into account the limited recourse financing, was £1,203m (2002: £97m).
Barclays PLC holds, as an investment, British government stock with a book value of £0.1m (2002: £0.1m).
Gross gains of £4m (2002: £5m, 2001: £37m) and gross losses of £6m (2002: £37m, 2001: £13m) were realised on the sale of investment securities
using an average weighted cost approach.
Other debt securities are held at valuation. The cost of Other debt securities is not available and would be unreasonably expensive to obtain.
Of the total debt securities disclosed above, £63,629m (2002: £56,290m) were listed on a recognised exchange. These listed debt securities had
a market value of £64,230m (2002: £56,991m).
See page 103 of the Financial Review for the valuation and maturity analysis of investment securities.
Barclays PLC Annual Report 2003 137