Barclays 2012 Annual Report Download - page 207

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
Total assets
Total assets decreased £73.2bn to £1,490.3bn principally reflecting
lower derivative assets as spreads tightened within the credit derivative
portfolio. This was partially offset by increased reverse repurchase
agreements and other similar secured lending due to higher matched
book trading.
Cash and balances at central banks and items in the course of
collection decreased £21.1bn to £87.6bn as the cash contribution
to the Group liquidity pool was reduced.
Trading portfolio assets deceased £7.2bn to £145.0bn due to a
reduction in debt securities, including the disposal of European
government issued bonds and the liquidation of legacy CLO and
CDO positions. This was partially offset by an increase in traded
loans and commodities.
Financial assets designated at fair value increased by £9.1bn to £46.1bn
primarily reflecting increases in economically hedged European equity
and bond positions.
Derivative financial assets decreased £69.8bn to £469.1bn reflecting
the tightening of credit spreads and trades matured and terminated
during the year.
Available for sale investments increased £6.6bn to £75.1bn primarily
driven by the acquisition of UK, US and higher grade European
government bonds as part of the Group’s Liquidity Risk Appetite
portfolio. This was partially offset by a reduction in equity securities
due to the disposal of the Group’s investment in BlackRock, Inc.
Loans and advances to banks net of impairment decreased by £7.0bn
to £40.5bn due to repayment and maturation of facilities across a
range of counterparties.
Loans and advances to customers net of impairment decreased by
£6.2bn to £425.7bn primarily as a result of lower corporate lending
in the Investment Bank due to significant paydown of loans and the
sale of ABS CDO Super Senior positions, offset by higher settlement
balances and cash collateral. Corporate Banking lending reduced
reflecting the ongoing challenging economic environment in Europe
and Group strategy to reduce redenomination risk. Lending in UKRBB
increased reflecting growth in home loans and in Barclaycard reflecting
business growth in the UK and US and acquisitions in the US and
South Africa.
Reverse repurchase agreements have increased by £23.3bn to
£177.0bn, driven by increased matched book trading opportunities
and trading desks’ funding requirements.
Total liabilities
Total liabilities decreased £71.0bn to £1,427.4bn.
Deposits from banks and items in the course of collection decreased
by £13.5bn to £78.6bn primarily driven by the reduced level of deposits
that the Group has sought to attract to contribute towards the cash
component of the Group liquidity pool.
Customer accounts increased £19.7bn to £385.7bn, primarily as a
result of an increase in cash collateral and settlement balances and
increases in underlying deposit taking in Corporate Banking and
Wealth, offset by a reduction in corporate deposits in the Investment
Bank as the cash component of the Group liquidity pool is reduced.
Repurchase agreements and other similar secured borrowing increased
£10.1bn to £217.3bn driven by increased matched book trading and
trading desks’ funding requirements.
Trading portfolio liabilities remained broadly flat at £44.8bn, with the
opposing movements in equities and debt securities reflecting trading
strategies across desks.
Financial liabilities designated at fair value decreased £9.7bn to
£78.2bn primarily reflecting buybacks and net maturation of notes
issued by the Group, offset by an increase in the own credit adjustment
due to a tightening of credit spreads.
Derivative financial liabilities decreased £65.4bn to £462.5bn broadly
in line with the decrease in derivative assets.
Debt securities in issue decreased £10.2bn to £119.6bn due to
managed changes in the funding composition.
Subordinated liabilities decreased by £0.9bn to £24.0bn due to
redemptions in the year of £2.7bn largely offset by the issuance of
$3bn of Contingent Capital Notes (CCNs) and £0.4bn of other
subordinated callable notes.
Shareholders’ equity
Total shareholders’ equity decreased £2.2bn to £63.0bn.
Share capital and share premium remained broadly stable at £12.5bn.
Retained earnings decreased £1.9bn to £37.5bn with losses attributable
to the equity holders of the Parent of £1.0bn.
The available for sale reserve increased £0.5bn driven largely by net
gains on the fair value of debt securities held as part of the Group
liquidity pool, offset partially by the disposal of the investment in
BlackRock, Inc.
Currency translation reserve movements of £1.3bn were largely
due to the depreciation of the US Dollar and South African Rand
against Sterling.
Non-controlling interests decreased £0.2bn to £9.4bn, primarily
reflecting currency translation movements of £0.3bn due to the
depreciation of the South African Rand against Sterling.
Net asset value per share decreased 3.9% to 438p and net tangible
asset value per share decreased 4.6% to 373p.
barclays.com/annualreport Barclays PLC Annual Report 2012 I 205
Financial review
Balance sheet commentary