Barclays 2013 Annual Report Download - page 241

Performance metric Definition
Why it is important to the business and
performance update
CRD IV Risk Weighted Assets (RWAs) A measure of a bank’s assets adjusted for their
associated risks. Risk weightings are
established in accordance with the Basel
Capital Accord as implemented by the PRA.
RWAs remain the primary measure to
determine the effective allocation of capital
across the Group.
CRD IV RWAs reduced £32bn to £436bn. The
reduction during the year was primarily driven
by reductions in Exit Quadrant RWAs of £39bn
and reductions in trading book exposures,
partially offset by methodology changes. This
reduction was primarily in the Investment
Bank, where Exit Quadrant RWAs reduced
£37bn to £42bn. CRD III RWAs reduced £32bn
to £355bn during the year.
Transform commitment: CRD IV RWAs of
£440bn in 2015.
2013 – £436bn
2012 – £468bn
2015 Target – £440bn
CRD IV fully loaded Common Equity Tier
1 (CET1) ratio
Capital requirements are part of the regulatory
framework governing how banks and
depository institutions are managed. Capital
ratios express a bank’s capital as a percentage
of its risk weighted assets as defined by
the PRA.
In the context of CRD IV, the CRD IV fully
loaded CET1 ratio uses a measure of capital
that is predominantly common equity as
defined by the Capital Requirements
Regulation.
The Group’s capital management objective is
to maximise shareholders’ value by prudently
optimising the level and mix of its capital
resources whilst maintaining sufficient capital
resources to: ensure the Group and all of its
subsidiaries are well capitalised relative to their
minimum regulatory capital requirements;
support the Group’s risk appetite and
economic capital requirements; and support
the Group’s credit rating.
As at 31 December 2013, the Group’s CRD IV
fully loaded CET1 ratio was 9.3%.
Transform commitment: 10.5% CRD IV CET1
ratio on a fully loaded basis in 2015.
2013 – 9.3%
2015 Target – >10.5%
Dividend payout ratio It is the Group’s policy to declare and pay
dividends on a quarterly basis. In a normal
year there will be three equal payments in
June, September and December and a final
variable payment in March.
Dividend payout ratio is the percentage of
earnings paid to shareholders in dividend and
is calculated as a proportion of adjusted
earnings per share as determined by the
Board.
The ability to pay dividends demonstrates the
financial strength of the Group. Dividends
remained constant at 6.5p during 2013.
Transform commitment: 40%-50% dividend
payout ratio over time.
The Group expects to be at 40% from 2014 to
allow focus on capital accretion. The Group
would not expect it to rise further until the
10.5% Core Equity Tier 1 milestone has
been reached.
Dividend per share
2013 – 6.5p
2012 – 6.5p
2011 – 6.0p
Dividend payout
ratio
2013 – 38.9%
2012 – 18.3%
2014 Target –
40-50%
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