Barclays 2010 Annual Report Download - page 266

Notes to the financial statements
For the year ended 31st December 2010 continued
42 Reclassification of financial assets held for trading
Prior to 2010, the Group reclassified certain financial assets, originally classified as held for trading that were deemed to be not held for trading purposes,
and thus considered as loans and receivables.
There were no additional reclassifications of financial assets during 2010.
The carrying value of the securities previously reclassified into loans and receivables has decreased from £9,378m to £8,625m as a result of sales,
paydowns and maturities of the underlying securities, offset by foreign exchange movements and increases due to reversal of the discount on
reclassification.
Sales of securities from the 16th December 2008 reclassification totalled £390m (2009: £1,280m) and sales of securities from the 25th November 2009
reclassification totalled £178m (2009: nil).
The following table provides a summary of the assets reclassified from held for trading to loans and receivables.
2010 2009
Carrying
value
£m
Fair
value
£m
Carrying
value
£m
Fair
value
£m
As at 31st December
Trading assets reclassified to loans and receivables
Reclassification 25th November 2009 8,081 7,842 8,099 7,994
Reclassification 16th December 2008 544 545 1,279 1,335
Total financial assets reclassified to loans and receivables 8,625 8,387 9,378 9,329
The reclassified financial assets contributed £359m (2009: £192m) to interest income. If the reclassifications had not been made, the Group’s income
statement for 2010 would have additional losses on the reclassified trading assets of £189m (2009: loss of £49m).
43 Segmental reporting
Since 1st January 2010, for management reporting purposes, we have reorganised our activities under the following business structure:
– UK Retail Banking is a leading UK high street bank providing current account and savings products and Woolwich branded mortgages. UK Retail
Banking also provides unsecured loans, protection products and general insurance as well as banking and money transmission services to small and
medium enterprises.
– Barclaycard is an international payments services provider for consumer and business customers including credit cards and consumer lending.
– Western Europe Retail Banking provides retail banking and credit card services in Spain, Italy, Portugal and France.
– Barclays Africa provides retail, corporate and credit card services across Africa and the Indian Ocean as well as tailored banking services (including
mobile banking and Sharia-compliant products).
– Absa provides a full range of retail banking services and insurance products through a variety of distribution channels. It also offers customised
business solutions for commercial and large corporate customers.
– Barclays Capital is the investment banking division of Barclays. It provides large corporate, government and institutional clients with a full spectrum of
solutions to meet their strategic advisory, financing and risk management needs.
– Barclays Corporate provides integrated banking solutions to large corporates, financial institutions and multinationals in the UK & Ireland, Continental
Europe and New Markets.
– Barclays Wealth is the wealth management division of Barclays. It focuses on private and intermediary clients worldwide, providing international and
private banking, investment management, fiduciary services and brokerage.
– Investment Management manages the Group’s 19.9% economic interest in BlackRock, Inc. and the residual elements relating to Barclays Global
Investors, which was sold on 1st December 2009.
– Head Office Functions and Other Operations comprise head office and central support functions, businesses in transition and consolidation adjustments.
Comparatives have been restated to reflect this new Group structure, as detailed in our announcement on 22nd March 2010.
Products and services offered to customers are organised by business segment as described above.
264 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10