Barclays 2013 Annual Report Download - page 183

Exit Quadrant assetsa
On 12 February 2013, the Group announced as part of its Strategic Review that, following a rigorous bottom-up analysis of each of its businesses
based on the attractiveness of the sector they operate in and their ability to generate sustainable returns on equity above cost of equity, it would
be exiting certain assets.
The table below presents selected financial data for these Exit Quadrant assets:
CRD IV RWAsbBalance sheet 2013
Investment Bank 2013
£bn
2012
£bn
2013
£bn
2012
£bn
Income/
(expense)
£m
Impairment
(charge)/
release
£m
Net
operating
(expense)/
income
£m
US residential mortgages 1.1 5.3 0.5 2.2 478 – 478
Commercial mortgages and real estate 1.6 3.1 2.0 4.0 182 – 182
Leveraged and other loans 9.7 10.1 6.0 11.5 (88) 11 (77)
CLOs and other insured assets 3.2 5.9 11.7 16.3 (281) – (281)
Structured credit and other 3.8 9.4 5.2 8.6 (128) – (128)
Monoline derivatives 2.2 3.1 0.3 0.6 (21) – (21)
Corporate derivatives 1.9 8.3 2.2 3.6 – – –
Portfolio assets 23.5 45.2 27.9 46.8 142 11 153
Pre-CRD IV rates portfolio 18.7 33.9
Total Investment Bank 42.2 79.1
Corporate Banking European assets 3.2 5.0 2.6 3.9 80 (321) (241)
Europe RBB assets 9.0 9.7 21.3 22.9 118 (187) (69)
Total 54.4 93.8
Exit Quadrant income shown on page 261 differs from the income above due to revenues relating to associated litigation matters and
recoverability of certain assets not yet received from the 2008 US Lehman acquisition.
The CRD IV RWAs of the Exit Quadrant businesses decreased £39.4bn to £54.4bn including reductions of £36.9bn in the Investment Bank.
This reflects reductions in Investment Bank portfolio assets of £21.7bn to £23.5bn, relating to US Residential, Structured Credit Portfolios and
optimisation initiatives within the derivatives portfolio. Pre CRD IV Rates derivatives RWAs decreased £15.2bn to £18.7bn. RWAs in Corporate
Banking and Europe RBB Exit Quadrant portfolios decreased due to continued asset run down.
Portfolio Assets balance sheet assets decreased £18.9bn to £27.9bn driven by net sales and paydowns across asset classes. Income of £142m was
primarily driven by gains relating to US Residential Mortgage exposures, partially offset by funding charges on Collateralised Loan Obligations and
Other Insured Assets and the acceleration of disposals. Portfolio Assets income reduced to £142m (2012: £578m), largely driven by a reduction in
fair value gains on US Residential Mortgages and sale of Commercial Real Estate loans.
Corporate Banking Exit Quadrant balance sheet assets in Europe decreased £1.3bn to £2.6bn largely driven by reductions in Spain and Portugal.
Europe RBB Exit Quadrant balance sheet assets decreased £1.6bn to £21.3bn largely driven by mortgage reductions in Spain and Italy, partially
offset by foreign currency movements.
Notes
a The Exit Quadrant Assets note is subject to audit, excluding RWAs.
b The table above provides an indication of the CRD IV RWAs that are currently allocated to the Exit Quadrant businesses.
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