Barclays 2013 Annual Report Download - page 201

Capital management is integral to the Group’s approach to financial stability and sustainability management and is therefore embedded
in the way our businesses and legal entities operate. Our capital management strategy is driven by the strategic aims of the Group and the risk
appetite set by the Board.
Barclays has continued to maintain a capital buffer over the PRA’s minimum regulatory capital requirements.
For further information on funding capital risk policies, please refer to the Risk management section on pages 420 and 421.
For further information on future regulatory impacts and supervision and regulation, refer to pages 230 to 235.
The Core Tier 1 ratio increased to 13.2% (2012: 10.8%) reflecting an increase in Core Tier 1 capital of £5.1bn to £46.8bn. Barclays generated
£1.3bn Core Tier 1 capital from earnings after absorbing the impact of provisions for PPI and interest rate hedging product redress. After
deducting £1.7bn of dividends paid during 2013, retained regulatory capital generated from earnings decreased Core Tier 1 capital by £0.4bn.
Other material movements in Core Tier 1 capital were:
 £5.8bn increase in share capital and share premium due to the rights issue;
 £0.8bn increase in share capital and share premium due to warrants exercised;
 £1.8bn decrease due to foreign currency movements, primarily due to the strengthening of GBP against USD and ZAR; and
 £0.5bn decrease in securitisation deductions due to rundown of exit quadrant assets.
Total Capital Resources increased overall by £4.8bn to £70.7bn.
The increases in Core Tier 1 capital were partially reduced by decreases in Tier 2 capital as a result of £1.4bn of redemptions of dated subordinated
liabilities offset by £0.7bn of new issuances and a further £0.5bn decrease in securitisation deductions at a total capital level.
Risk review
Funding risk – Capital
Capital risk is the risk that the Group is unable to maintain appropriate capital ratios, which could lead to (i)
an inability to support business activity; (ii) a failure to meet regulatory requirements; or (iii) a change to
credit ratings.
All disclosures in this section (pages 199 to 207) are unaudited unless otherwise stated
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