Barclays 2014 Annual Report Download - page 230

228 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Financial review
Total assets
Total assets increased £14bn to £1,358bn.
Cash and balances at central banks and items in the course of
collection from other banks decreased £6bn to £41bn, as the cash
contribution to the Group liquidity pool was reduced.
Trading portfolio assets decreased £18bn to £115bn due to a reduction
in debt securities and other eligible bills driven by a decrease in trading
activity in the Investment Bank and exiting of positions in BNC. This
was partially offset by an increase in equity securities and traded loans.
Financial assets designated at fair value decreased £1bn to £38bn
reflecting decreases in equity securities, partially offset by increases in
loans and advances at fair value due to fair value movements, and
increased debt securities related to acquisitions.
Derivative financial instrument assets increased £90bn to £440bn,
consistent with the movement in derivative financial instrument
liabilities, which increased £92bn to £439bn, driven by an increase in
interest rate derivatives of £78bn, reflecting a reduction in the major
forward interest rates, and an increase in foreign exchange derivatives
of £14bn due to strengthening of USD against major currencies.
Available for sale investments decreased £6bn to £86bn primarily
driven by exiting of positions in BNC and settlements in respect of US
Lehman acquisition assets.
Total loans and advances decreased £4bn to £470bn due to £7bn
growth in PCB and £5bn growth in Barclaycard, offset by the £13bn
reclassification of loans to other assets relating to the Spanish business
which is held for sale and a £4bn decrease in BNC driven by a run-off of
assets in Europe retail.
Reverse repurchase agreements and other similar secured lending
decreased £55bn to £132bn primarily driven by lower matched book
trading due to balance sheet deleveraging.
Total liabilities
Total liabilities increased £12bn to £1,292bn.
Deposits from banks increased £3bn to £58bn primarily driven by an
£8bn increase in cash collateral due to higher derivative mark to
market, offset by a £5bn decrease as a result of the reclassification of
the Spanish business to other liabilities.
Customer accounts decreased £4bn to £428bn as a result of the
reclassification of £8bn in relation to the Spanish business to other
liabilities and £9bn reduction in settlement balances. These decreases
were partially offset by a £9bn increase in cash collateral balances due
to higher derivative mark to market and £5bn growth within PCB and
Barclaycard.
Trading portfolio liabilities decreased £8bn to £45bn primarily due to
reductions in debt securities and other eligible bills following assets
and securities run-down, and business disposals. Further reductions in
US treasuries and Euro bond positions were driven by client demand.
These reductions were partially offset by increased equity securities.
Financial liabilities designated at fair value decreased £8bn to £57bn
primarily reflecting trade maturities, buybacks and unwinding of
existing notes due to reduced funding requirements.
Derivative financial instrument liabilities increased £92bn to £439bn in
line with the increase in derivative financial assets.
Debt securities in issue decreased £1bn to £86bn due to the non-
renewal of commercial paper, partially offset by increased issuance of
certificates of deposit.
Subordinated liabilities decreased £1bn to £21bn due to redemptions
of fixed and floating rate subordinated notes, Reserve Capital
Instruments and Tier One Notes, partially offset by the issuance of
subordinated notes and fair value hedge movements.
Repurchase agreements and other similar secured borrowings
decreased £72bn to £124bn primarily driven by lower matched book
trading due to balance sheet deleveraging and from lower financing
requirements as a result of a decrease in long positions.
Shareholders’ equity
Total shareholders’ equity increased £2.0bn to £66.0bn.
Share capital and share premium increased by £0.9bn to £20.8bn due
to the issuance of shares under employee share schemes and the
Barclays PLC scrip dividend programme. Other equity instruments
increased by £2.3bn to £4.3bn due to issuance of equity accounted
AT1 securities to investors in exchange for the cancellation of
preference shares and subordinated debt instruments.
The available for sale reserve increased £0.4bn to £0.6bn driven by
£5.3bn of gains from changes in the fair value on government bonds
held in the liquidity pool, partially offset by £4.1bn of losses from
related hedging, and £0.6bn of net gains transferred to net profit.
The cash flow hedging reserve increased £1.5bn to £1.8bn driven by
£2.7bn of gains in the fair value of interest rate swaps held for hedging
purposes as forward interest rates decreased, partially offset by £0.7bn
of gains transferred to net profit and £0.4bn of tax.
The currency translation reserve increased £0.6bn to a debit balance of
£0.6bn largely due to the strengthening of USD against GBP.
Non-controlling interests decreased £2.2bn to £6.4bn, primarily due to
a movement in preference shares. £1.5bn of Barclays Bank plc
preference shares were bought back and cancelled as part of the AT1
exchange exercise. An additional £0.7bn of preference shares were
redeemed on their first call date.
Net tangible asset value per share increased to 285p (2013: 283p).
This increase was mainly attributable to upward movements in the
cash flow hedging reserve, available for sale reserve and currency
translation reserve.
Financial review
Balance sheet commentary