Barclays 2013 Annual Report Download - page 325

Note 19: Offsetting financial assets and financial liabilities continued
The table identifies the amounts that have been offset in the balance sheet and also those amounts that are covered by enforceable netting
arrangements (offsetting arrangements and financial collateral) but do not qualify for netting under the requirements of IAS 32 described above.
The ‘Net amounts’ presented below are not intended to represent the Group’s actual exposure to credit risk, as a variety of credit mitigation
strategies are employed in addition to netting and collateral arrangements.
As at 31 December
Amounts subject to enforceable netting arrangements
Amounts not
subject to
enforceable
netting
arrange-
mentsd
£m
Balance
sheet
totale
£m
Effects of offsetting on balance sheet Related amounts not offsetc
Gross
amounts
£m
Amounts
offseta
£m
Net amounts
reported on
the balance
sheetb
£m
Financial
instruments
£m
Financial
collateral
£m
Net amount
£m
Derivative financial assets 608,696 (295,793) 312,903 (258,528) (41,397) 12,978 11,432 324,335
Reverse repurchase agreements and other
similar secured lending 246,281 (93,508) 152,773 – (151,833) 940 34,006 186,779
Total Assets 854,977 (389,301) 465,676 (258,528) (193,230) 13,918 45,438 511,114
Derivative financial liabilities (603,580) 296,273 (307,307) 258,528 36,754 (12,025) (13,327) (320,634)
Repurchase agreements and other similar
secured borrowing (253,966) 93,508 (160,458) – 159,686 (772) (36,290) (196,748)
Total Liabilities (857,546) 389,781 (467,765) 258,528 196,440 (12,797) (49,617) (517,382)
As at 31 December 2012
Derivative financial assets 879,082 (420,741) 458,341 (387,672) (53,183) 17,486 10,815 469,156
Reverse repurchase agreements and other
similar secured lendingf244,272 (100,989) 143,283 – (142,009) 1,274 33,239 176,522
Total Assets 1,123,354 (521,730) 601,624 (387,672) (195,192) 18,760 44,054 645,678
Derivative financial liabilities (869,514) 419,192 (450,322) 387,672 52,163 (10,487) (12,399) (462,721)
Repurchase agreements and other similar
secured borrowingf(259,078) 100,989 (158,089) – 157,254 (835) (59,089) (217,178)
Total Liabilities (1,128,592) 520,181 (608,411) 387,672 209,417 (11,322) (71,488) (679,899)
Derivative assets and liabilities
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA
Master Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty
can be offset and close-out netting applied across all outstanding transaction covered by the agreements if an event of default or other
predetermined events occur.
Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties
by enabling the collateral to be realised in an event of default or if other predetermined events occur.
Repurchase and reverse repurchase agreements and other similar secured lending and borrowing
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as global
master repurchase agreements and global master securities lending agreements, whereby all outstanding transactions with the same
counterparty can be offset and close-out netting applied across all outstanding transaction covered by the agreements if an event of default or
other predetermined events occur.
Financial collateral typically comprises highly liquid securities wh ich are legally transferred and can be liquidated in the event of counterparty
default.
These offsetting and collateral arrangements and other credit risk mitigation strategies used by the Group are further explained in the Credit risk
mitigation section on pages 398 to 400.
Notes
a Amounts offset for derivative financial assets includes cash collateral netted of £1,965m (2012: £6,506m). Amounts offset for derivative liabilities includes cash collateral netted of
£2,445m (2012: £4,957m). Settlements assets and liabilities have been offset amounting to £6,967m (2012: £9,879m). No other significant recognised financial assets and
liabilities were offset in the balance sheet. Therefore, the only balance sheet categories necessary for inclusion in the table are those shown above.
b The table excludes reverse repurchase agreements designated at fair value which are subject to enforceable master netting arrangements of £2bn (2012: £3bn).
c Financial collateral is reflected at its fair value, but has been limited to the net balance sheet exposure so as not to include any over-collateralisation.
d This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction.
e The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to enforceable
netting arrangements’.
f Comparative figures have been restated to accurately reflect the identification of contracts with enforceable netting arrangements. Net Amounts reported on the balance sheet
have increased £12,795m and £27,049m for reverse repurchase agreements and repurchase agreements respectively. A corresponding decrease was noted within amounts not
subject to enforceable netting arrangements amounts. Financial collateral increased £12,293m for reverse repurchase agreements and £26,810m for repurchase agreements. Net
amount increased £502m for reverse repurchase agreements and £239m for repurchase agreements.
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