Barclays 2008 Annual Report Download - page 30

28 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Financial review
Balance sheet commentary
Total assets and risk weighted assetsa
2008/07
Total assets increased 67% to £2,053.0bn (2007: £1,227.4bn).
Risk weighted assets increased 22% to £433.3bn (2007: £353.9bn).
UK Retail Banking total assets increased 15% to £101.4bn
(31st December 2007: £88.5bn) driven by growth in mortgage balances.
Risk weighted assets decreased 3% to £30.5bn (31st December 2007:
£31.5bn) as lending growth mainly in high quality, low risk mortgages
was more than offset in capital terms by active risk management.
Barclays Commercial Bank total assets grew 13% to £84.0bn
(31st December 2007: £74.6bn) driven by higher loans and advances.
Risk weighted assets increased 11% to £63.1bn (31st December 2007:
£57.0bn). This was slightly lower than asset growth, reflecting a relative
increase in lower risk portfolios.
Barclaycard total assets increased 40% to £30.9bn (31st December
2007: £22.1bn) reflecting increases in International assets, the acquisition
of Goldfish and the appreciation of the Euro and US Dollar against Sterling.
Risk weighted assets increased 35% to £27.3bn (31st December 2007:
£20.2bn), driven by acquisitions, the redemption of securitisation deals
and exposure growth predominantly in the US.
GRCB – Western Europe total assets grew 48% to £64.7bn
(31st December 2007: £43.7bn) reflecting growth in retail mortgages,
unsecured lending, commercial lending and a 31% appreciation over the
year in the value of the Euro against Sterling. Risk weighted assets increased
46% to £36.5bn (31st December 2007: £25.0bn), primarily reflecting
underlying lending growth and the appreciation of the Euro.
GRCB – Emerging Markets total assets grew 60% to £14.7bn
(31st December 2007: £9.2bn) reflecting increases in retail and commercial
lending combined with the impact of Sterling depreciation. Risk weighted
assets increased 44% to £15.1bn (31st December 2007: £10.5bn),
reflecting portfolio growth.
GRCB – Absa total assets increased 11% to £40.4bn (31st December
2007: £36.4bn) reflecting broad based asset growth. Risk weighted assets
increased 6% to £18.8bn (31st December 2007: £17.8bn), reflecting
balance sheet growth.
Barclays Capital total assets increased 94% (£789.2bn) to £1,629.1bn
(31st December 2007: £839.9bn) due to an increase in derivative assets of
£736.7bn, predominantly driven by significant volatility and movements in
yield curves during the year, together with a substantial depreciation in
Sterling against most major currencies. Total assets excluding derivatives
increased by 9% in Sterling. On a constant currency basis, total assets
excluding derivatives decreased by approximately 15%. Risk weighted
assets increased 28% to £227.4bn (31st December 2007: £178.2bn).
This was driven by the depreciation in Sterling against the US Dollar and
Euro, and an increase in market volatility.
Barclays Global Investors total assets decreased 20% to £71.3bn
(31st December 2007: £89.2bn), mainly attributable to adverse market
movements in certain asset management products recognised as
investment contracts. Risk weighted assets decreased 11% to £3.9bn
(31st December 2007: £4.4bn) mainly attributed to changes in the
asset class mix, partially offset by the weakening of Sterling against
other currencies.
Barclays Wealth total assets decreased 27% to £13.3bn
(31st December 2007: £18.2bn) reflecting the sale of the closed life
assurance businesspartially offset by strong growth in lending to high
net worth and intermediary clients. Risk weighted assets increased 26%
to £10.3bn (31st December 2007: £8.2bn) reflecting strong growth
in lending.
Head office functions and other operations total assets decreased 46%
to £3.1bn (31st December 2007: £5.7bn). Risk weighted assets decreased
64% to £0.4bn (31st December 2007: £1.1bn). The decrease in the year
was mainly attributable to the increased netting of Group deferred tax
assets and liabilities.
Notes
aThe 2008/07 commentary on risk weighted assets is on a Basel II basis. The 2007/06
commentary is on a Basel I basis.
bUnder the Group’s securitisation programme, certain portfolios subject to securitisation
or similar risk transfer transaction are adjusted in calculating the Group’s risk weighted
assets. Previously, for pre-2008 transactions, regulatory capital adjustments were
allocated to the business in proportion to their RWAs. From 1st January 2008, the
regulatory capital adjustments for all transactions are allocated to the business
undertaking the securitisation unless the transaction has been undertaken for the benefit
of a cluster of businesses, in which case the regulatory capital adjustments are shared.
Total assets by business
2008 2007 2006
£m £m £m
UK Retail Banking 101,384 88,477 81,693
Barclays Commercial Bank 84,029 74,566 66,224
Barclaycard 30,925 22,121 20,033
GRCB – Western Europe 64,732 43,702 33,487
GRCB – Emerging Markets 14,653 9,188 5,219
GRCB – Absa 40,391 36,368 29,575
Barclays Capital 1,629,117 839,850 657,922
Barclays Global Investors 71,340 89,218 80,515
Barclays Wealth 13,263 18,188 15,023
Head office functions and other
operations 3,146 5,683 7,096
Total assets 2,052,980 1,227,361 996,787
Risk weighted assets by business
2008 b2007 b2007 2006
Basel II Basel II Basel I Basel I
£m £m £m £m
UK Retail Banking 30,491 31,463 46,059 43,020
Barclays Commercial
Bank 63,081 57,040 54,325 50,302
Barclaycard 27,316 20,199 19,690 16,873
GRCB
– Western Europe 36,480 24,971 24,462 17,567
GRCB
– Emerging Markets 15,080 10,484 6,050 3,255
GRCB – Absa 18,846 17,829 22,448 19,809
Barclays Capital 227,448 178,206 169,124 137,635
Barclays Global Investors 3,910 4,369 1,994 1,375
Barclays Wealth 10,300 8,216 7,692 6,077
Head office functions
and other operations 350 1,101 1,632 1,920
Total risk
weighted assets 433,302 353,878 353,476 297,833