Barclays 2007 Annual Report Download - page 294

292 Barclays PLC Annual Report 2007
Glossary of terms
Absa definitions
‘Absa Group Limited’ refers to the consolidated results of the
South African group of which the parent company is listed on the
Johannesburg Stock Exchange (JSE Limited) in which Barclays owns
a controlling stake.
‘Absa’ refers to the results for Absa Group Limited as consolidated into
the results of Barclays PLC; translated into Sterling with adjustments
for amortisation of intangible assets, certain head office adjustments,
transfer pricing and minority interests.
‘International Retail and Commercial Banking-Absa’ is the portion
of Absa’s results that is reported by Barclays within the International
Retail and Commercial Banking business.
‘Absa Capital’ is the portion of Absa’s results that is reported by
Barclays within the Barclays Capital business.
‘Income’ refers to total income net of insurance claims, unless
otherwise specified.
‘Profit before business disposals’ represents profit before tax and
disposal of subsidiaries, associates and joint ventures.
‘Cost:income ratio’ is defined as operating expenses compared to total
income net of insurance claims.
‘Cost:net income’ ratio is defined as operating expenses compared to
total income net of insurance claims less impairment charges.
‘Compensation:net income ratio’ is defined as staff compensation
based costs compared to total income net of insurance claims less
impairment charges.
‘Return on average economic capital’ is defined as attributable profit
compared to average economic capital.
‘Average net income generated per member of staff ’ is defined as
total operating income compared to the average of staff numbers for
the reporting period.
‘Risk Tendency’ is a statistical estimate of the average loss for each
loan portfolio for a 12-month period, taking into account the size
of the portfolio and its risk characteristics under current economic
conditions, and is used to track the change in risk as the portfolio
of loans changes over time.
‘Economic profit’ is defined as profit after tax and minority interests
less capital charge (average shareholders’ equity excluding minority
interests multiplied by the Group cost of capital).
‘Daily Value at Risk (DVaR)’ is an estimate of the potential loss which
might arise from unfavourable market movements, if the current
positions were to be held unchanged for one business day, measured
to a confidence level of 98%.