Barclays 2006 Annual Report Download - page 66

Financial review
Securities
Barclays PLC
Annual Report 2006
62
Securities
The following table analyses the book value of securities which are carried at fair value under IFRS.
IFRS UK GAAP
2006 2005 2004
Amortised Amortised
Book value cost Book value cost Book value Valuation
£m £m £m £m £m £m
Investment securities – available for sale
Debt securities:
United Kingdom government 758 761 31 31 18 18
Other government 12,587 12,735 14,860 14,827 11,858 12,051
Other public bodies 280 277 216 216 21 21
Mortgage and asset backed securities 1,706 1,706 3,062 3,062 8,260 8,234
Corporate issuers 27,089 27,100 25,590 25,597 17,029 17,062
Other issuers 5,492 5,450 6,265 6,257 5,531 5,549
Equity shares 1,371 1,047 1,250 1,007 526 746
Investment securities – available for sale 49,283 49,076 51,274 50,997 43,243 43,681
Other securities – held for trading
Debt securities:
United Kingdom government 4,986 n/a 4,786 n/a 2,567 2,567
Other government 46,845 n/a 46,426 n/a 37,438 37,438
Other mortgage and asset backed securities 17,032 n/a 10,290 n/a 8,177 8,177
Bank and building society certificates of deposit 14,159 n/a 15,837 n/a 7,063 7,063
Other issuers 57,554 n/a 51,028 n/a 32,349 32,349
Equity shares 31,548 n/a 20,299 n/a 10,873 10,873
Other securities – held for trading 172,124 n/a 148,666 n/a 98,467 98,467
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. In 2004, under UK GAAP, investment securities were valued at cost, adjusted for the amortisation of premiums or
discounts to redemption, less any provision for diminution in 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 12 and 18 to the accounts.
In addition to UK government securities shown above, at 31st December 2006, 2005 and 2004, the Group held the following government securities
which exceeded 10% of shareholders’ equity.
2006 2005 2004
Book value(a) Book value(a) Book value(a)
£m £m £m
United States government securities 18,343 16,093 14,334
Japanese government securities 15,505 14,560 8,494
German government securities 4,741 6,376 6,215
French government securities 4,336 4,822 3,035
Italian government securities 3,419 4,300 6,900
Spanish government securities 2,859 2,456 2,597
Netherlands government securities 395 2,791 484
Maturities and yield of available for sale debt securities
Maturing within Maturing after one but Maturing after five but Maturing after
one year: within five years: within ten years: ten years:
Amount Yield Amount Yield Amount Yield Amount Yield Amount Total yield
£m % £m % £m % £m % £m %
Government 2,664 5.2 4,792 3.9 4,855 4.7 1,034 1.2 13,345 4.2
Other public bodies 256 12.0 14 2.9 – – 10 4.6 280 11.2
Other issuers 15,264 4.9 13,115 4.2 1,889 5.1 4,019 3.7 34,287 4.5
Total book value 18,184 5.1 17,921 4.1 6,744 4.8 5,063 3.2 47,912 4.5
The yield for each range of maturities is calculated by dividing the annualised interest income prevailing at 31st December 2006 by the fair value of
securities held at that date.
Note
(a) The book value represents the fair value.