Barclays 2014 Annual Report Download - page 188

186 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Risk performance
Funding risk – Capital
Risk review
CRD IV Capital
The Capital Requirements Regulation and Capital Requirements Directive implemented Basel III within the EU (collectively known as CRD IV) on
1 January 2014. The rules are supplemented by Regulatory Technical Standards and the PRA’s rulebook, including the implementation of
transitional rules. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards
and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations
reflect Barclays’ interpretation of the current rules.
Key capital ratios
As at 31 December 2014 2013
Fully Loaded Common Equity Tier 1 10.3% 9.1%
PRA Transitional Common Equity Tier 1a,b 10.2% 9.1%
PRA Transitional Tier 1b,c 13.0% 11.3%
PRA Transitional Total Capitalb,c 16.5% 15.0%
Capital resources (audited)
As at 31 December 2014
£m
2013
£m
Shareholders’ equity (excluding non-controlling interests) per balance sheet 59,567 55,385
– Less: Other equity instruments (recognised as AT1 capital) (4,322) (2,063)
Adjustment to retained earnings for foreseeable dividends (615) (640)
Minority interests (amount allowed in consolidated CET1) 1,227 1,238
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (2,199) (2,479)
Goodwill and intangible assets (8,127) (7,618)
Deferred tax assets that rely on future profitability excluding temporary differences (1,080) (1,045)
Fair value reserves related to gains or losses on cash flow hedges (1,814) (270)
Excess of expected losses over impairment (1,772) (2,106)
Gains or losses on liabilities at fair value resulting from own credit 658 600
Other regulatory adjustments (45) (119)
Direct and indirect holdings by an institution of own CET1 instruments (25) (496)
Fully loaded Common Equity Tier 1 41,453 40,387
Regulatory adjustments relating to unrealised gains (583) (180)
PRA transitional Common Equity Tier 1 40,870 40,207
Additional Tier 1 (AT1) capital
Capital instruments and the related share premium accounts 4,322 2,063
Qualifying AT1 capital (including minority interests) issued by subsidiaries 6,870 9,726
Less instruments issued by subsidiaries subject to phase out – (1,849)
Transitional Additional Tier 1 capital 11,192 9,940
PRA transitional Tier 1 capital 52,062 50,147
Tier 2 (T2) capital
Capital instruments and the related share premium accounts 800 –
Qualifying T2 capital (including minority interests) issued by subsidiaries 13,529 16,834
Less instruments issued by subsidiaries subject to phase out – (522)
Other regulatory adjustments and deductions (48) (12)
PRA transitional total regulatory capital 66,343 66,447
Notes
a The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays’ Tier 2 Contingent Capital Notes was 12.3% based on £49.6bn of transitional CRD IV
CET1 capital and £402bn RWAs.
b The PRA transitional capital is based on guidance provided in policy statement PS7/13 on strengthening capital standards published in December 2013.
c As at 31 December 2014, Barclays’ fully loaded Tier 1 capital was £46,020m, and the fully loaded Tier 1 ratio was 11.5%. Fully loaded total regulatory capital was £61,763m and
the fully loaded total capital ratio was 15.4%. The fully-loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD
IV and after assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV.