Barclays 2009 Annual Report Download - page 44

Total assets and risk weighted assets by business
2009/08
Total assets decreased by £674bn to £1,379bn and risk weighted assets
decreased £51bn to £383bn.
Barclays UK Retail Bank’s total assets increased 4% to £105.2bn
(31st December 2008: £101.4bn) driven by growth in mortgage balances.
Risk weighted assets increased 6% (£1.7bn) to £32.2bn (2008: £30.5bn),
a significant contributor being the growth in the mortgage book.
Total assets in Barclays Commercial Bank fell 10% (£8.5bn) to £75.5bn
(2008: £84.0bn) driven by reduced overdraft borrowings and lower volumes
in Barclays Asset and Sales Finance business. New term lending was £14bn.
Risk weighted assets fell 4% (£2.8bn) to £60.3bn (2008: £63.1bn) largely
reflecting a reduction in net balance sheet exposures offset by the impact
of deteriorating credit conditions.
Total assets decreased 2% to £30.2bn (2008: £30.9bn) in Barclaycard
reflecting the depreciation in the US Dollar and Euro against Sterling, the
decision to stop writing new business in FirstPlus and tighter lending criteria.
Risk weighted assets increased 12% (£3.3bn) to £30.6bn (2008: £27.3bn)
due to higher volumes and the impact of moving toward an advanced risk
measurement methodology offset by favourable foreign exchange and
lower secured lending balances in FirstPlus.
Total assets in GRCB – Western Europe remained stable at £64.2bn
(2008: £65.5bn), as underlying asset growth was offset by depreciation
in the period end value of the Euro against Sterling. Risk weighted assets
decreased 12% (£4.6bn) to £32.4bn (2008: £37.0bn) driven by active
management and the migration of certain retail portfolios onto the
advanced credit risk approach.
GRCB – Emerging Markets’ total assets decreased 14% (£2.0bn) to
£11.9bn (2008: £13.9bn), and risk weighted assets decreased 15%
(£2.2bn) to £12.4bn (2008: £14.6bn) due to the business pro-actively
managing down portfolio exposures and the impact of exchange rate
movements driven by a realignment of lending strategy in light of the
economic downturn. Customer assets decreased 25% (£2.4bn) to £7.3bn
(2008: £9.7bn) and customer deposits decreased 9% (£0.8bn) to £8.5bn
(2008: £9.3bn).
Total assets in GRCB – Absa increased 13% to £45.8bn
(2008: £40.4bn) and risk weighted assets increased 14% (£2.6bn) to
£21.4bn (2008: £18.8bn), reflecting the impact of exchange rate movements.
Total assets in Barclays Capital reduced 37% to £1,019.1bn (2008:
£1,629.1bn) primarily as a result of lower derivative balances. There were
further reductions in the trading portfolio and lending as well as depreciation
in the value of other currencies relative to Sterling. These reductions
contributed to an overall decrease of 9% in the adjusted gross leverage
assets to £618.2bn (2008: £681bn). Risk weighted assets reduced 20%
(£46.3bn) to £181.1bn (2008: £227.4bn) following reductions in the size of
the balance sheet and reclassification of certain securitisation assets to
capital deductions and depreciation on the value of other currencies against
Sterling, partially offset by a deterioration in credit conditions which
increased probabilities of default.
Barclays Global Investors’ total assets have decreased £65.9bn to
£5.4bn (2008: £71.3bn) reflecting the sale of BGI and the Group’s ongoing
interest in BlackRock shares.
In Barclays Wealth, total assets increased 14% to £15.1bn
(2008: £13.3bn) and risk weighted assets increased 10% (£1.1bn) to
£11.4bn (2008: £10.3bn) reflecting growth in loans and advances.
Total assets by business 2009 2008 2007
£m £m £m
UK Retail Banking 105,228 101,384 88,477
Barclays Commercial Bank 75,547 84,029 74,566
Barclaycard 30,220 30,925 22,121
GRCB – Western Europe 64,185 65,519 43,702
GRCB – Emerging Markets 11,874 13,866 9,188
GRCB – Absa 45,824 40,391 36,368
Barclays Capital 1,019,120 1,629,117 839,850
Barclays Global Investors 5,406 71,340 89,218
Barclays Wealth 15,095 13,263 18,188
Head office functions and other
operations 6,430 3,146 5,683
Total assets 1,378,929 2,052,980 1,227,361
Risk weighted assets 2009 2008 2007
by business under Basel II £m £m £m
UK Retail Banking 32,176 30,491 31,463
Barclays Commercial Bank 60,292 63,081 57,040
Barclaycard 30,566 27,316 20,199
GRCB – Western Europe 32,396 36,953 24,971
GRCB – Emerging Markets 12,399 14,607 10,484
GRCB – Absa 21,410 18,846 17,829
Barclays Capital 181,117 227,448 178,206
Barclays Global Investors 73 3,910 4,369
Barclays Wealth 11,354 10,300 8,216
Head office functions
and other operations 870 350 1,101
Total risk
weighted assets 382,653 433,302 353,878
42 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Financial review
Balance sheet commentary
continued