Barclays 2008 Annual Report Download - page 295

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Financial statements
Barclays PLC Annual Report 2008 293
52 Capital Management (continued)
Regulatory Capital
The table below provides details of the regulatory capital resources managed by the Group.
Basel ll Basel I
2008 2007
£m £m
Total qualifying Tier 1 capital 37,250 27,408
Total qualifying Tier 2 capital 22,333 17,123
Total deductions (856) (1,889)
Total net capital resources 58,727 42,642
Insurance businesses
Insurance businesses are subject to separate regulation regarding Capital management and have constraints on the transfer of capital. Capital resource
requirements are assessed at company level in accordance with local laws and regulations. However, the requirement is that each life fund should be able
to meet its own liabilities. In the event that this should not be the case, shareholders’ equity would be required to meet its liabilities to the extent that they
could not otherwise be met.
The capital resource requirement of the insurance businesses at 31st December 2008 was £192m (31st December 2007: £216m).
53 Segmental reporting
The following section analyses the Group’s performance by business. For management and reporting purposes, Barclays is organised into the following
business groupings:
Global Retail and Commercial Banking
– UK Retail Banking
– Barclays Commercial Bank
– Barclaycard
– GRCB – Western Europe
– GRCB – Emerging Markets
– GRCB – Absa
Investment Banking and Investment Management
– Barclays Capital
– Barclays Global Investors
– Barclays Wealth
Head Office Functions and Other Operations
UK Retail Banking
UK Retail Banking comprises Personal Customers, Home Finance, Local Business, Consumer Lending and Barclays Financial Planning. This cluster of
businesses aims to build broader and deeper relationships with its Personal and Local Business customers through providing a wide range of products
and financial services. Personal Customers and Home Finance provide access to current account and savings products, Woolwich branded mortgages
and general insurance. Consumer Lending provides unsecured loan and protection products and Barclays Financial Planning provides investment advice
and products. Local Business provides banking services, including money transmission, to small businesses.
Barclays Commercial Bank
Barclays Commercial Bank provides banking services to organisations with an annual turnover of more than £1m. Customers are served via a network
of relationship and industry sector specialists, which provides solutions constructed from a comprehensive suite of banking products, support, expertise
and services, including specialist asset financing and leasing facilities. Customers are also offered access to the products and expertise of other
businesses in the Group, particularly Barclays Capital, Barclaycard and Barclays Wealth.
Barclaycard
Barclaycard is a multi-brand credit card and consumer lending business which also processes card payments for retailers and merchants and issues credit
and charge cards to corporate customers and the UK Government. It is one of Europe’s leading credit card businesses and has an increasing presence in
the United States and South Africa.
In the UK, Barclaycard comprises Barclaycard UK Cards, Barclaycard Partnerships, Barclays Partner Finance and FirstPlus.
Outside the UK, Barclaycard provides credit cards in the United States, Germany, South Africa (through management of the Absa credit card portfolio)
and in the Scandinavian region, where Barclaycard operates through Entercard, a joint venture with Swedbank.
Barclaycard works closely with other parts of the Group, including UK Retail Banking, Barclays Commercial Bank and GRCB – Western Europe and
GRCB – Emerging Markets, to leverage their distribution capabilities.
Global Retail and Commercial Banking – Western Europe
GRCB – Western Europe encompasses Barclays Global Retail and Commercial Banking as well as Barclaycard operations in Spain, Italy, Portugal and France.
GRCB – Western Europe serves customers through a variety of distribution channels. GRCB – Western Europe provides a variety of products including
retail mortgages, current and deposit accounts, commercial lending, unsecured lending, credit cards, investments, and insurance serving the needs of
Barclays retail, mass affluent, and corporate customers.