Barclays 2008 Annual Report Download - page 328

326 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Glossary of terms
‘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%.
‘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.
‘Global Retail and Commercial Banking –Absa’is the portion of Absa’s
results that is reported by Barclays within the Global Retail and
Commercial Banking business.
‘Absa Capital’is the portion of Absa’s results that is reported by Barclays
within the Barclays Capital business.
Termused in Annual Report US equivalent or brief description
Accounts Financial statements
Allotted Issued
Attributable profit Net income
Called up share capital Ordinary shares, issued and fully paid
Capital allowances Tax term equivalent to US tax depreciation allowances
Cash at bank and in hand Cash
Class of business Industry segment
Finance lease Capital lease
Freehold Ownership with absolute rights in perpetuity
Loans and advances Lendings
Loan capital Long-term debt
Net asset value Book value
Profit Income
Share capital Ordinary shares, capital stock or common stock issued and fully paid
Share premium account Additional paid-up capital or paid-in surplus (not distributable)
Shares in issue Shares outstanding
Write-offs Charge-offs