Barclays 2013 Annual Report Download - page 204

Risk review
Funding risk – Capital continued
The following table represents risk weighted assets (RWAs) by risk type and business, using specific risk measurement approaches as defined under
CRD III.
Risk Weighted Assets (RWAs) by risk type and business
Credit risk
Counterparty
credit risk Market risk
Operational
risk
Total
RWAs
As at 31 December 2013 STD
£m
F-IRB
£m
A-IRB
£m
Internal
model
method
£m
Non-
model
method
£m
STD
£m
Modelled
VaR
£m
Charges
add-on and
non-VaR
modelled
£m £m £m
UK RBB 2,639 – 34,765 – – – – – 6,680 44,084
Europe RBB 4,206 – 9,568 – 4 – – – 2,128 15,906
Africa RBB 5,196 4,820 8,400 – 3 – – – 3,965 22,384
Barclaycard 18,070 – 16,479 – – – – – 6,594 41,143
Investment Bank 7,306 3,142 41,031 20,847 6,120 16,957 14,932 7,490 24,807 142,632
Corporate Bank 22,582 2,846 36,132 649 2 – – – 6,717 68,928
Wealth and Investment Management 11,209 225 1,796 – 230 – – – 3,261 16,721
Head Office Functions and Other
Operations 168 – 2,684 – – – – – 159 3,011
Total RWAs 71,376 11,033 150,855 21,496 6,359 16,957 14,932 7,490 54,311 354,809
As at 31 December 2012
UK RBB 1,163 – 31,401 – – – – – 6,524 39,088
Europe RBB 5,051 – 8,786 – 3 – – – 1,955 15,795
Africa RBB 3,801 5,778 10,602 – 7 – – – 4,344 24,532
Barclaycard 17,326 – 13,957 – – – – – 6,553 37,836
Investment Bank 9,386 3,055 48,000 25,127 4,264 25,396 22,497 15,429 24,730 177,884
Corporate Bank 28,295 3,430 31,897 500 – – – – 6,736 70,858
Wealth and Investment Management 11,647 317 707 – 199 – – – 3,184 16,054
Head Office Functions and Other
Operations 205 – 4,961 – – – – – 160 5,326
Total RWAs 76,874 12,580 150,311 25,627 4,473 25,396 22,497 15,429 54,186 387,373
The table below outlines the 2013 changes in RWAs, split by risk type and key drivers for the movements. A more comprehensive basis of
preparation for this table is disclosed within the Barclays Pillar 3 report on page 24.
Movement analysis of RWAs
Credit
Risk
£bn
Counterparty
credit risk
£bn
Market
risk
£bn
Operational
risk
£bn
Total
£bn
As at 1 January 2013 239.8 30.1 63.3 54.2 387.4
Book size 6.0 (2.1) (17.9) 0.1 (13.9)
Acquisitions and disposals (including Exit Quadrant) (7.7) (0.2) (3.6) 0.1 (11.4)
Book quality (4.5) 0.2 (0.1) – (4.4)
Model updates 2.6 0.8 (0.1) – 3.3
Methodology and policy 1.6 (0.2) – – 1.4
Foreign exchange movementa(4.6) (0.3) (0.2) (0.1) (5.2)
Other 0.1 (0.4) (2.1) – (2.4)
As at 31 December 2013 233.3 27.9 39.3 54.3 354.8
RWAs decreased by £32.6bn, reflecting:
 Reductions in book size decreased RWAs by £13.9bn, primarily driven by reduced sovereign exposure and risk reductions in the trading book,
offset by asset growth in UK RBB and Barclaycard;
 Acquisitions and disposals decreased RWAs by £11.4bn, primarily driven by Exit Quadrant reductions, offset by the acquisition of Barclays Direct;
 Book quality improved resulting in a RWA reduction of £4.4bn, primarily driven by changing risk profile within UK RBB, Corporate Bank and the
Investment Bank;
 Model updates increased RWAs by £3.3bn, primarily driven by model changes within Barclaycard in order to meet changes in
regulatory guidance;
 Methodology and policy changes increased RWAs by £1.4bn, driven by changes to the treatment of forbearance, offset by improvements to the
application of collateral to credit exposures;
 Foreign exchange movements decreased RWAs by £5.2bn, primarily driven by the appreciation of GBP against ZAR; and
 Other decreased RWAs by £2.4bn, primarily driven by changes in measurement within the trading book.
Note
a Foreign exchange movement does not include FX for IMM, Modelled Market Risk or Exit Quadrant.
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202 Barclays PLC Annual Report 2013