Barclays 2012 Annual Report Download - page 180

Composition of wholesale funding (audited)
The Group maintains access to a variety of sources of wholesale funds in major currencies, including those available from money markets, repo
markets and term investors, across a variety of distribution channels and geographies. The Group is an active participant in money markets, has
direct access to US, European and Asian capital markets through its global investment banking operations and long term investors through its
clients worldwide. As a result, wholesale funding is well diversified by product, maturity, geography and major currency.
As at 31 December 2012, total wholesale funding outstanding (excluding repurchase agreements) was £240bn (2011: £265bn). £101bn of
wholesale funding matures in less than one year (2011: £130bn) of which £18bn relates to term funding (2011: £27bn)a. £138bn of wholesale
funding had a residual maturity of over one year (2011: £135bn).
As at 31 December 2012, outstanding wholesale funding comprised £39bn of secured funding (2011: £39bn) and £201bn of unsecured funding
(2011: £227bn).
Maturity profile of wholesale fundingb (audited)
Not more
than one
month
£bn
Over one
month but
not more
than three
months
£bn
Over three
months but
not more
than six
months
£bn
Over six
months but
not more
than one
year
£bn
Sub-total
less than
one year
£bn
Over one
year but
not more
than two
years
£bn
Over two
years
£bn
Total
£bn
Deposits from banks 10.8 8.7 1.5 0.7 21.7 1.6 7.2 30.5
Customer deposits and commercial paper 5.8 23.4 9.0 6.9 45.1 2.0 1.3 48.4
Asset backed commercial paper 2.9 2.5 – – 5.4 – – 5.4
Senior unsecured (public benchmark) 3.3 – – 0.6 3.9 7.8 14.4 26.1
Senior unsecured (privately placed) 0.7 4.1 4.0 5.3 14.1 10.8 38.5 63.4
Covered bonds/ABS – 0.4 1.3 0.4 2.1 4.7 20.8 27.6
Subordinated liabilities – 0.6 – 0.1 0.7 – 22.0 22.7
Otherc3.8 1.4 1.9 1.2 8.3 1.2 5.9 15.4
Total as at 31 December 2012 27.3 41.1 17.7 15.2 101.3 28.1 110.1 239.5
Of which secured 4.6 4.0 2.4 1.3 12.3 5.2 21.5 39.0
Of which unsecured 22.7 37.1 15.3 13.9 89.0 22.9 88.6 200.5
Total as at 31 December 2011 130.3 265.2
Of which secured 16.9 38.7
Of which unsecured 113.4 226.5
The Group has £63bn of privately placed senior unsecured notes in issue. These notes are issued through a variety of distribution channels
including intermediaries and private banks. A large proportion of end users of these products are individual retail investors.
The liquidity risk of wholesale funding is carefully managed primarily through the LRA stress tests, against which the liquidity pool is held.
Although not a requirement, the liquidity pool exceeded wholesale funding maturing in less than one year by £49bn as at 31 December 2012
(2011: £22bn).
The average maturity of wholesale funding net of the liquidity pool was at least 61 months (2011: 58 months).
Notes
a Term funding maturities comprise public benchmark and privately placed senior unsecured notes, covered bonds/ABS and subordinated debt where the original
maturity of the instrument was more than one year. In addition, as at 31 December 2012, £3bn of these instruments were not counted towards term financing as
they had an original maturity of less than one year.
b The composition of wholesale funds comprises the balance sheet reported deposits from banks, financial liabilities at fair value, debt securities in issue and
subordinated liabilities, excluding cash collateral and settlement balances. It does not include collateral swaps, including participation in the Bank of England’s FLS.
Included within deposits from banks are £6.7bn of liabilities drawn in the European Central Bank’s three year LTRO.
c Primarily comprised of fair value deposits (£7.1bn) and secured financing of physical gold (£6.0bn).
barclays.com/annualreport178 I Barclays PLC Annual Report 2012
Risk review
Funding risk – Liquidity continued