Barclays 2013 Annual Report Download - page 216

Risk review
Funding risk – Liquidity continued
Composition of wholesale funding
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 2013, total wholesale funding outstanding (excluding repurchase agreements) was £186bn (2012: £240bn). £82bn (2012:
£102bn) of wholesale funding matures in less than one year of which £23bn (2012: £18bn)a relates to term funding £104bn (2012: £138bn) of
wholesale funding had a residual maturity of over one year. Maturing wholesale liabilities have been replaced with customer deposits to increase
the resilience and sustainability of the funding structure.
As at 31 December 2013, outstanding wholesale funding comprised £35bn (2012: £40bn) of secured funding and £151bn (2012: £199bn) of
unsecured funding.
Maturity profile of wholesale fundingb
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
nine
months
£bn
Over nine
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 but
not more
than five
years
£bn
More
than five
years
£bn
Total
£bn
Deposits from banks 9.4 5.7 0.7 1.0 0.3 17.1 4.4 0.2 – 21.7
Certificates of deposit and commercial paper 2.1 10.8 6.8 5.4 2.6 27.7 0.6 0.6 0.4 29.3
Asset backed commercial paper 2.7 2.1 – – – 4.8 – – – 4.8
Senior unsecured (Public benchmark) 2.5 0.8 2.6 1.6 0.1 7.6 3.9 6.0 3.9 21.4
Senior unsecured (Privately placed) 1.0 2.6 3.5 4.2 2.4 13.7 9.4 15.6 11.5 50.2
Covered bonds/ABS 0.3 0.4 0.4 3.3 0.6 5.0 6.9 6.0 7.1 25.0
Subordinated liabilities – 0.2 – – – 0.2 0.1 2.9 17.6 20.8
Otherc2.3 1.4 1.5 0.4 0.3 5.9 1.8 2.5 2.1 12.3
Total as at 31 December 2013 20.3 24.0 15.5 15.9 6.3 82.0 27.1 33.8 42.6 185.5
Of which secured 4.6 3.7 1.4 3.5 0.7 13.9 7.3 6.5 7.2 34.9
Of which unsecured 15.7 20.3 14.1 12.4 5.6 68.1 19.8 27.3 35.4 150.6
Total as at 31 December 2012 29.4 39.4 17.5 8.2 7.2 101.7 28.3 56.2 53.5 239.7
Of which secured 5.9 4.0 2.4 0.8 0.5 13.6 5.2 13.8 7.8 40.4
Of which unsecured 23.5 35.4 15.1 7.4 6.7 88.1 23.1 42.4 45.7 199.3
Outstanding wholesale funding includes £50bn (2012: £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.
In 2013, Barclays repaid €3bn of funding raised through the European Central Bank’s 3 year LTRO, leaving €5bn (2012: €8bn) outstanding as at 31
December 2013 .
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 £45bn (2012: £48bn).
The average maturity of wholesale funding net of the liquidity pool was at least 69 months (2012: 61 months).
Notes
a Term funding maturities comprise public benchmark and privately placed senior unsecured notes, covered bonds/asset-backed securities (ABS) and subordinated debt where
the original maturity of the instrument was more than 1 year. In addition, at 31 December 2013, £3bn of these instruments were not counted towards term financing as they had
an original maturity of less than 1 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 Funding for Lending Scheme.
Included within deposits from banks are £4.1bn of liabilities drawn in the European Central Bank’s 3 year LTRO.
c Primarily comprised of fair value deposits (£4.6bn) and secured financing of physical gold (£5.0bn).
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214 Barclays PLC Annual Report 2013