Barclays 2009 Annual Report Download - page 248

246 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
33 Non-controlling interests
2009 2008
£m £m
At beginning of year 10,793 9,185
Share of profit after tax 895 905
Dividend and other payments (767) (703)
Equity issued by subsidiaries –1,349
Available for sale reserve: net (loss)/gain from changes in fair value (12) (1)
Cash flow hedges: (loss)/gain from changes in fair value (19) 76
Currency translation differences 277 100
Additions 9–
Disposals (91) (11)
Other 116 (107)
At end of year 11,201 10,793
The non-controlling interests as at 31st December represented holdings in the following:
2009 2008
£m £m
Barclays Bank PLC issued Preference shares 5,933 5,927
Barclays Bank PLC issued Reserve Capital Instruments – equity accounted 1,908 1,908
Barclays Bank PLC issued Upper Tier 2 instruments – equity accounted 586 586
Absa Group Limited – issued preference shares and other non-controlling interests 2,539 1,994
Other 235 378
Total 11,201 10,793
There were no Preference Shares issued by Barclays Bank PLC during the year.
34 Contingent liabilities and commitments
The following table summarises the nominal principal amount of contingent liabilities and commitments with off-balance sheet risk:
2009 2008
£m £m
Acceptances and endorsements 375 585
Guarantees and letters of credit pledged as collateral security 15,406 15,652
Securities lending arrangements 27,406 38,290
Other contingent liabilities 9,587 11,783
Contingent liabilities 52,774 66,310
Documentary credits and other short-term trade related transactions 762 859
Undrawn note issuance and revolving underwriting facilities:
Forward asset purchases and forward deposits placed 46 291
Standby facilities, credit lines and other 206,467 259,666
Commitments 207,275 260,816
Nature of instruments
In common with other banks, the Group conducts business involving acceptances, performance bonds and indemnities. The majority of these facilities are
offset by corresponding obligations of third parties.
An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Group expects most acceptances to be presented, but
reimbursement by the customer is normally immediate. Endorsements are residual liabilities of the Group in respect of bills of exchange, which have been
paid and subsequently rediscounted.
Guarantees and letters of credit are given as security to support the performance of a customer to third parties. As the Group will only be required to
meet these obligations in the event of the customer’s default, the cash requirements of these instruments are expected to be considerably below their
nominal amounts.
Until the disposal of BGI on 1st December 2009, the Group facilitated securities lending arrangements for its managed investment funds whereby
securities held by funds under management were lent to third parties. Borrowers provided cash or investment grade assets as collateral equal to 100% of
the market value of the securities lent plus a margin of 2% –10%. The Group has agreed with BlackRock to continue to provide indemnities to support these
arrangements for a further three years. As at 31st December 2009, the value of the collateral held was £28,248m (2008: £39,690m) and that of the stock
lent was £27,406m (2008: £38,290m).
Other contingent liabilities include transaction-related customs and performance bonds and are, generally, short-term commitments to third parties which
are not directly dependent on the customer’s creditworthiness.