Barclays 2008 Annual Report Download - page 32

30 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Financial review
Balance sheet commentary
Total shareholders’ equity
2008/07
Total shareholders’ equity increased £14,935m to £47,411m
(2007: £32,476m).
Called up share capital comprises 8,372 million ordinary shares
of 25p each (2007: 6,600 million ordinary shares of 25p each and
1 million staff shares of £1 each).
Retained earnings increased £3,238m to £24,208m (2007:
£20,970m). Profit attributable to the equity holders of the parent of
£4,382m and the proceeds of capital raising of £1,410m were partially
offset by dividends paid to shareholders of £2,344m. Other equity of
£3,652m represents the issue of Mandatorily Convertible Notes, which
will convert into ordinary shares by June 2009.
Movements in other reserves, except the capital redemption reserve,
reflect the relevant amounts recorded in the consolidated statement of
recognised income and expense on page 206.
Minority interests increased £1,608m to £10,793m (2007: £9,185m).
The increase primarily reflects a preference share issuance
by Barclays Bank PLC of £1,345m.
The Group’s authority to buy-back equity shares was renewed at the
2008 AGM.
2007/06
Total shareholders’ equity increased £5,086m to £32,476m
(2006: £27,390m).
Called up share capital comprises 6,600 million (2006: 6,535 million)
ordinary shares of 25p each and 1 million (2006: 1 million) staff shares of
£1 each. Called up share capital increased by £17m representing the
nominal value of shares issued to Temasek Holdings, China Development
Bank (CDB) and employees under share option plans largely offset by a
reduction in nominal value arising from share buy-backs. Share premium
reduced by £5,762m; the reclassification of £7,223m to retained earnings
resulting from the High Court approved cancellation of share premium
was partly offset by additional premium arising on the issuance to CDB
and on employee options. The capital redemption reserve increased by
£75m representing the nominal value of the share buy-backs.
Retained earnings increased by £8,801m. Increases primarily arose
from profit attributable to equity holders of the parent of £4,417m,
the reclassification of share premium of £7,223m and the proceeds of
the Temasek issuance in excess of nominal value of £941m. Reductions
primarily arose from external dividends paid of £2,079m and the total
cost of share repurchases of £1,802m.
Movements in other reserves, except the capital redemption reserve,
reflect the relevant amounts recorded in the consolidated statement of
recognised income and expense on page 206.
Minority interests increased £1,594m to £9,185m (2006: £7,591m).
The increase was primarily driven by preference share issuances of
£1,322m and an increase in the minority interest in Absa of £225m.
The Group’s authority to buy-back equity shares was renewed at the
2007 AGM.
Barclays Bank PLC
Preference shares issued by Barclays Bank PLC are included within share
capital and share premium in the Barclays Bank PLC Group but represent
minority interests in the Barclays PLC Group. Certain issuances of reserve
capital instruments and capital notes by Barclays Bank PLC are included
within other shareholders’ equity in the Barclays Bank PLC Group but
represent minority interests in Barclays PLC Group. The Mandatorily
Convertible Notes issued pursuant to the equity issuances by Barclays PLC
represent financial liabilities in the financial statements of Barclays Bank
PLC and have not been included in shareholders’ equity.
Total shareholders’ equity
2008 2007 2006
£m £m £m
Barclays Bank PLC Group
Called up share capital 2,398 2,382 2,363
Share premium account 12,060 10,751 9,452
Available for sale reserve (1,249) 111 184
Cash flow hedging reserve 132 26 (230)
Currency translation reserve 2,840 (307) (438)
Other reserves 1,723 (170) (484)
Other shareholders’ equity 2,564 2,687 2,534
Retained earnings 22,457 14,222 11,556
Shareholders’ equity excluding
minority interests 41,202 29,872 25,421
Minority interests 2,372 1,949 1,685
Total shareholders’ equity 43,574 31,821 27,106
Total shareholders’ equity
2008 2007 2006
£m £m £m
Barclays PLC Group
Called up share capital 2,093 1,651 1,634
Share premium account 4,045 56 5,818
Other equity 3,652 – –
Available for sale reserve (1,190) 154 132
Cash flow hedging reserve 132 26 (230)
Capital redemption reserve 394 384 309
Other capital reserve 617 617 617
Currency translation reserve 2,840 (307) (438)
Other reserves 2,793 874 390
Retained earnings 24,208 20,970 12,169
Less: Treasury shares (173) (260) (212)
Shareholders’ equity excluding
minority interests 36,618 23,291 19,799
Minority interests 10,793 9,185 7,591
Total shareholders’ equity 47,411 32,476 27,390