Barclays 2014 Annual Report Download - page 189

barclays.com/annualreport Barclays PLC Annual Report 2014 I 187
Movement in fully loaded Common Equity Tier 1 (CET1) Capital
2014
£m
Opening balance as at 1 January 40,387
Profit for the period 76
Movement in own credit 58
Movement in dividends (1,228)
Retained regulatory capital generated from earnings (1,094)
Movement in reserves – net impact of share awards 706
Movement in available for sale reserves 414
Movement in currency translation reserves 560
Movement in retirement benefits 205
Other reserves movements (329)
Movement in other qualifying reserves 1,556
Minority interests (11)
Additional value adjustments (PVA) 280
Goodwill and intangible assets (509)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences (35)
Negative amounts resulting from the calculation of expected loss amounts 334
Other regulatory adjustments 74
Direct and indirect holdings by an institution of own CET1 instruments 471
Movement in regulatory adjustments and deductions 604
Closing balance as at 31 December 41,453
Q Fully loaded CRD IV CET1 ratio increased significantly in the period to 10.3% (2013: 9.1%) reflecting an increase in CET1 capital of £1.1bn to
£41.5bn, after absorbing £3.3bn of adjusting items, and a £40.6bn decrease in RWAs to £402bn. The improvement reflects progress made in
execution of the Group strategy and good progress towards the 2016 Transform target of in excess of 11%.
Q Material movements in CET1 capital included:
– A £1.2bn decrease recognised for dividends paid and foreseen;
– A £0.6bn increase due to movements in the currency translation reserve primarily driven by the strengthening of USD against GBP;
– A £0.4bn increase due to gains in the available for sale reserve; and
– A £0.6bn increase due to lower regulatory adjustments and deductions, with decreased deductions of £0.5bn for holdings of own CET1
instruments, £0.3bn for expected loss over impairments and £0.3bn for PVA, partially offset by a £0.5bn increase in the deduction for goodwill
and intangible assets. The reduction in PVA results principally from the £0.9bn adjustment to the balance sheet valuation of the ESHLA
portfolio at year end, which reduces the PVA relating to that portfolio.
Q Transitional total capital decreased by £0.1bn to £66.3bn largely due to capital redemptions in the period of €1bn non-cumulative callable
preference shares and €1bn of callable fixed/floating rate subordinated notes (T2 capital). These decreases were partially offset by the increase
in fully loaded CET1 capital and a T2 capital issuance of $1.25bn of fixed rate subordinated notes.
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