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Barclays PLC
Annual Report 2015
Return to stability

Table of contents

  • Page 1
    Return to stability Barclays PLC Annual Report 2015

  • Page 2
    ... the structure and flow of the Annual Report. The Annual Report An overview of our 2015 performance, a focus on our strategic direction, and a review of the businesses underpinning our strategy. For shareholder information and contact details see pages 349-351. Addressing the issues facing Barclays...

  • Page 3
    ...Risk management Pages 08 ...to better drive value creation and sustainable stakeholder return...Business model Page 09 Governance Risk review The activity in our business units reflects our progress in becoming the partner of choice...Performance Pages 17-24 Your Board sets strategic direction...

  • Page 4
    ... the strategy and situation of the Group and decided that our strategic core was our UK retail and small business franchise, our international Corporate and Investment Banking business largely centred around our trading hubs in London, New York and Asia, and our international credit card businesses...

  • Page 5
    ... Strategic Report A New Corporate Structure Following the statutory decision in the UK to ring-fence UK retail and small business banking by 2019, we decided to bring forward the establishment of the new bank and an application will be made for regulatory approval. When implemented, it will result...

  • Page 6
    ... Africa, and receive only 62% of the benefits. The international reach of the UK bank levy, the Global 04 I Barclays PLC Annual Report 2015 *Our strategic performance is measured by our Balanced Scorecard (see page 11) Systemically Important Bank (GSIB) buffer, minimum requirement for own funds...

  • Page 7
    ...Our revised strategic focus will help create commercial stability and generate sustainable shareholder returns Risk review Balanced business ...and resilience to the external environments Financial review approximately £55bn as at the end of 2015. We anticipate those one-time additions will add...

  • Page 8
    ...s PLC Our new structure will focus on delivering what we do best; and where the opportunities for returns are greatest We are confident that Barclays Corporate & International will continue to be well capitalised with a balanced funding profile, supporting solid investment grade credit ratings. In...

  • Page 9
    ... year, and thank you for your support as we continue the work of restoring Barclays to where it should be. James E. Staley Group Chief Executive Regulation continues to direct attention towards capital, liquidity and funding, in order to create a safer banking environment. In 2015, the Financial...

  • Page 10
    ..., and some result from operational processes, or the external environment. We classify risks under five types: â- â- Credit risk: Financial loss should customers not fulfil contractual obligations â- â- Market risk: Earnings or capital impact due to volatility of trading book positions or as the...

  • Page 11
    ...... Financial review As a transatlantic Consumer, Corporate and Investment bank Barclays offers a wellbalanced and integrated set of products and services across personal, corporate and investment banking, credit cards and wealth management. We serve individuals, small and large businesses...

  • Page 12
    ... to global financial markets Cash management, payment systems, and international trade services Funds for purchases and growth Residential mortgages, consumer loans and credit cards Commercial mortgages and business loans Asset and lease finance, trade and supplier finance and working capital...

  • Page 13
    ... acceptable return to shareholders, with RoE slightly down on 2014. There is still plenty of work to do and we remain focused on improving our balanced performance for colleagues, customers and clients, the wider community and shareholders. Barclays PLC Annual Report 2015 I 11 Financial statements...

  • Page 14
    ... of value as a result. In the UK, Barclaycard has continued to introduce industry leading balance transfer offers and innovative payment plan products. Elsewhere across our customer franchises we've maintained a very strong performance in the corporate banking market where we've vied for leadership...

  • Page 15
    ... of new WiN members have been male. 'HeForShe' is an integral aspect of our strategy in enabling women to achieve their full potential at Barclays, and ensuring our communities benefit fully from their talent. Shareholder information home.barclays/annualreport Barclays PLC Annual Report 2015 I 13

  • Page 16
    ... and businesses Supporting our communities by building the skills of young people We met or exceeded 10 of 11 targets set out in the 2012-2015 Citizenship Plan and are developing a new strategy to launch in 2016. Balanced Scorecard metric Actual 2015 Actual 2014 Actual 2013 Citizenship Plan...

  • Page 17
    ...have elected to achieve our ambitions in the right way. We believe that our customers should be able to trust us to have their best interest at heart as this ensures long term profits through customer loyalty. Shareholder information home.barclays/annualreport Barclays PLC Annual Report 2015 I 15

  • Page 18
    ... to its minimum regulatory capital requirements set by the PRA and other regulatory authorities support its credit rating support its growth and strategic objectives. Balanced Scorecard metric Actual 2015 Actual 2014 Actual 2013a Fully loaded CRD IV CET1 ratio Return on Equity (Adjusted) 11...

  • Page 19
    ... Securities and loans, such as non-strategic long dated corporate loans Derivatives impacted by regulation Financial review The 2015 performance has been reported in the business units that operated during the year. With a change in structure for 2016, an upcoming restatement document will detail...

  • Page 20
    ... wealth and investment management business for 35,000 high net worth and ultra-high net worth clients focused on the UK Ecosystem â- â- BUSINESS SEGMENT PERFORMANCE â- â- Personal and Corporate Banking Contribution to the Group 2015 2014 Income (£m) Profit before tax (£m) Adjusted...

  • Page 21
    ... by Barclays app, giving users an information-only tool to compare up to the second FX rates and margins. We continued to use technology to make customers' lives easier in a number of UK banking firsts. Over 60,000 cheques, totalling over £55m, were processed as digital images through our Mobile...

  • Page 22
    ... launching the UK's first credit card in 1966, Barclaycard has continued to push the boundaries and challenge the status quo - creating the payment innovations of today and defining the possibilities of how people will pay tomorrow. 20 I Barclays PLC Annual Report 2015 home.barclays/annualreport

  • Page 23
    ... is structured and what we provide to the Group Africa Banking is a diversified financial services provider offering an integrated range of products and services across retail and business banking (RBB), credit cards, corporate and investment banking, wealth and investment management and insurance...

  • Page 24
    ... by savings from strategic cost programmes including restructure of the branch network, increased automation, and property rationalisation. Loans and advances to customers increased 8% to £29.9bn (reported) driven by strong Corporate and Investment Bank growth, resulting in increased net interest...

  • Page 25
    ... strategic trades for clients including a large FX trade off the back of Tesco's Korean business disposal and the structuring and issue of the largest MXN Development equity certificate acquired by the Mexican Pension Funds Markets: provides execution, prime brokerage and risk management services...

  • Page 26
    ... derivative transactions, and non-strategic businesses. The key non-core portfolios outside the Investment Bank comprised the whole of our European retail business, some European corporate exposures and a small number of Barclaycard and Wealth portfolios. BNC is run by a dedicated management team...

  • Page 27
    ... strategic priorities for the Group: to evolve the strategy to focus on our core segments and markets; to wind down non-core exposures and assets and achieve our target capital levels; and to instil a high performance culture with strong ethical values. To meet these commitments and build a business...

  • Page 28
    ... issues. In addition, we explored a number of new ways to improve the cost:income ratio, such as the increased deployment of technology in our core businesses. Instil a high performance culture with strong ethical values To ensure we have the right balance of skills and experience to drive the Group...

  • Page 29
    ... considered management's working capital and viability report dated 15 February 2016. As part of this report, the Board considered a forecast of Barclays' Group CET1 ratio trajectory to December 2018, a forecast of the leverage ratio trajectory, the Tier 1 and total capital ratio and the build-up...

  • Page 30
    ... and balanced remuneration framework... We remain focused on paying for performance while continuing to deliver a greater share of the income we generate to shareholders Barclays Group compensation costs 201Ã" Õ Ã-11,079m 2011 - £10,523m 2012 - £9,759m 2013 - £9,616m 2014 - £8,891m 2015...

  • Page 31
    ... for 2014. Executive Directors: Single total figure for 2015 remuneration (audited) Salary £000 2015 2014 Role Based Pay £000 2015 2014 Taxable benefits £000 2015 2014 Annual bonus £000 2015 2014 LTIP £000 2015 2014 Pension £000 2015 2014 Total £000 2015 2014 Governance Risk review Antony...

  • Page 32
    ...March 2016. After release, the shares are subject to an additional two year holding period. Pension Executive Directors are paid cash in lieu of pension contributions. This is market practice for senior executives in comparable roles. 30 I Barclays PLC Annual Report 2015 home.barclays/annualreport

  • Page 33
    ... for our Directors' remuneration policy at the 2017 AGM. As a Committee, we will review our remuneration policy to ensure that future arrangements are fully aligned to our strategy to accelerate delivery to shareholders in a manner consistent with Barclays' Values and also to meet new regulatory...

  • Page 34
    ... key performance indicators (KPIs) used by management to measure our progress are set out on pages 4 to 7 and summarised below. These KPIs focus on the Group's financial strength, the delivery of sustainable returns and cost management. Common Equity Tier 1 (CET1) ratio 11.40% 10.30% Leverage ratio...

  • Page 35
    The Strategic Report Performance commentary: 2015 results were characterised by further the continued execution of the strategy. Group capital and leverage ratios continued to strengthen. The fully loaded common equity tier 1 (CET1) ratio increased 110 basis points to 11.4% driven by a reduction in...

  • Page 36
    34 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 37
    ... The Strategic Report Our corpordte governdnce processes dnd the role they pldy in supporting the delivery of our strdtegy, including reports from the Chdirmdn dnd edch of the Bodrd Committee Chdirmen. Page Governdnce: Directors' report Who we are Board of Directors Group Executive Co...

  • Page 38
    ... Capital Partners LP; Advisory Board of J. Rothschild Capital Manage/ent Li/ited; Financial Services Volunteer Corps; The Asia Foundation Committees No/, Ris John McFdrldne Chair/an Age: 68 Appointed: 1 January 2015 Tim Breedon Non-executive Age: 58 Appointed: 1 Nove/ber 2012 Jes Stdley Group...

  • Page 39
    ... the Federal Reserve Bank of New York and the Financial Services Authority. Steve also has significant board experience, having served in both executive and non-executive director roles in his career. Financial review Steve Thieke Non-executive Age: 69 Appointed: 7 January 2014 Other principdl...

  • Page 40
    ... Operating Officer Mdrid Rdmos Chief Executive, Barclays Africa Group Length of tenure (Chdirmdn dnd non-executive Directors) 0-3 years 9 3-6 years 2 >6 years 1 Tristrdm Roberts Group Hu/an Resources Director Michdel Roemer Group Head of Co/pliance Amer Sdjed Interi/ Chief Executive, Barclaycard...

  • Page 41
    ...for his dedicated service and co//it/ent over his eight years as a non-executive Director, including being Senior Independent Director since October 2011 and Deputy Chair/an since July 2012. Sir Michael offers his own perspective on governance during 2015 on page 41. The Strategic Report Governance...

  • Page 42
    ... leadership in place to take forward execution of our strategy at pace, to deliver on our priorities and generate the long-ter/ sustainable value that will benefit not only Barclays' shareholders, but society at large. John McFdrldne Chair/an 29 February 2016 40 I Barclays PLC Annual Report 2015...

  • Page 43
    ...of a new Group Chief Executive. The non-executive Directors had reï¬,ected long and hard on the issue of Group leadership and had concluded that new leadership, bringing a new set of skills, was required to accelerate the pace of execution going forward. These events were extensively reported at the...

  • Page 44
    ... My report for 2014 e/phasised the role the Co//ittee has in ensuring that Barclays operates with a strong control environ/ent and, in particular, the role it is playing in changing the culture and building a greater sense of personal accountability, not just at a senior level within the Group but...

  • Page 45
    ... internal and external auditors, including /onitoring their independence and objectivity. Financial statements â- â- â- â- The Co//ittee's ter/s of reference are available at home.bdrcldys/corpordtegoverndnce Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 46
    ... /ade for the costs of custo/er redress, such as for Pay/ent Protection Insurance (PPI), Packaged Bank Accounts (PBA) and rates provided to certain custo/ers on foreign exchange transactions. In debating Barclays' financial results state/ents, the Co//ittee exa/ined the provisions held for the...

  • Page 47
    ...so/e widening of social housing bond credit spreads. The Co//ittee noted that despite atte/pts by the front office trading tea/, the Group Finance Director and the Chair/an of the Co//ittee, it had not proved possible to gain a co/plete understanding of the causes of the valuation disparity fro/ the...

  • Page 48
    ... on Barclays Non-Core, adjusting ite/s, dividends and outlook state/ents. It also debated the proposed state/ents to be /ade by the Chair/an and Group Chief Executive, suggesting a/end/ents. The Co//ittee concluded that the disclosures and process underlying the production of the 2015 Annual Report...

  • Page 49
    ... environ/ent in PCB, Barclaycard, Barclays Africa and US Invest/ent Banking operations, including questioning directly the heads of those businesses. Debated the i/portance of /aintaining an effective control environ/ent as the Group decentralises certain functional activities. Assessed the results...

  • Page 50
    ... Co//ittee along with any revised plan. The Co//ittee was content with the outco/es of the self-assess/ent of internal audit perfor/ance, although requested an update on the quality assurance progra//e, which will be provided in 2016. 48 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 51
    ... report to the PRA prepared by PwC regarding its detailed audit work on specific topics, in particular, i/pair/ent. Financial review Financial statements PwC's perfor/ance, independence and objectivity during 2015 were for/ally assessed at the beginning of 2016. A questionnaire incorporating best...

  • Page 52
    .../pliance services in respect of assign/ents initiated preJanuary 2011 in connection with Barclays international and expatriate e/ployees, involving co-ordination and filing of statutory tax returns, social security applications and additional co/pliance filings transaction support on secured funding...

  • Page 53
    ... Annual Report, Barclays decided to undertake an external audit tender in 2015, with a view to replacing our external audit fir/ fro/ the 2017 financial year onwards. This was done to confor/ with the auditor rotation require/ents of the final statutory audit services order published in October 2014...

  • Page 54
    ... it i/ple/ents its strategy and executes the structural refor/ progra//e, with a particular focus on capital and liquidity /anage/ent across legal entities. We will also continue to /onitor and react to any e/erging risks arising in our key /arkets in the UK, US and South Africa as a consequence of...

  • Page 55
    ...under way and will be reported to the Co//ittee in the first half of 2016. Given the change in /ethodology, the Co//ittee requested early sight of the design and outputs as the new risk appetite process was i/ple/ented, resulting in a workshop being held in Dece/ber 2015. All non-executive Directors...

  • Page 56
    ...require/ents, /aintain its credit rating and support growth and strategic options. Country risk, i.e. the levels of risk the Group is prepared to take in specific countries. The ï¬,ightpath to achieving required regulatory and internal targets and capital and leverage ratios. â- â- The Co//ittee...

  • Page 57
    ...conditions and /arket indicators to infor/ the strategic plan and risk appetite proposals for 2016, so that the Group is positioned appropriately. Governance Retdil credit risk, i.e. UK property /arket, interest rate risk. The potential overheating of the UK housing /arket, particularly in London...

  • Page 58
    ... capital and liquidity /anage/ent) 2 Key risk issues 3 Internal control/risk policies 4 Other (including re/uneration and governance issues) 2015 43 31 11 15 2014 57 19 11 13 â- â- â- â- 2 â- â- Read /ore about Barclays' risk /anage/ent on pages 127 to 142 and in our Pillar 3 Report...

  • Page 59
    ...to focus on these issues, assessing progress against plans for e/bedding our conduct risk progra//e and i/ple/enting cultural change throughout the Group. We assessed deep-dive reports into conduct risk within key businesses, such as Barclays Africa and the Cards business, and evaluated the findings...

  • Page 60
    .../an Service. Monitored Barclays' operational risk profile via quarterly reports fro/ /anage/ent. Evaluated /anage/ent's strategy for addressing cyber risk and /onitored its progress. Assessed Barclays' exposure to technology risk and exa/ined plans to resolve identified control issues by the end of...

  • Page 61
    ... and considered and approved Group Co/pliance Policies. 4 2 3 â- â- 1 2 3 4 5 Citizenship Reputational issues Culture, conduct and co/pliance Operational risk Other 2015 6 13 57 19 6 2014 2 7 52 33 6 Financial review â- â- â- â- â- â- Read /ore about Barclays' risk /anage/ent on...

  • Page 62
    ... will be for/ed as the Group i/ple/ents structural refor/. We continued to foster executive succession by supporting new initiatives and by directly engaging with senior executives, for exa/ple, by /entoring individual senior executives, in order to nurture high potential individuals and help build...

  • Page 63
    ... for Directors to engage with /e/bers of the Group Executive Co//ittee and senior /anage/ent to help in nurturing high potential individuals and to support building a stronger succession pipeline. â- â- Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual...

  • Page 64
    ...Group post-structural refor/, which set out ulti/ate decision-/aking powers, while respecting the rights and responsibilities of the boards of the strategically significant subsidiaries: the ring-fence bank (RFB), Barclays Bank PLC, the US Inter/ediate Holding Co/pany (IHC) and Barclays Africa Group...

  • Page 65
    .../itigated and to set 'the tone fro/ the top' in ter/s of Barclays' corporate culture and values. In 2015, the Co//ittee also focused on the need to identify non-executive directors to serve on the boards of the Group's strategically significant subsidiaries. When considering a new appoint/ent to the...

  • Page 66
    ... business or function, expansion of diversity data to include greater focus, expanding global ca/paigns to raise awareness and refined co//unications to drive i/pact. More details of Barclays' diversity and inclusion strategy /ay be found on page 80. You can find the Board Diversity Policy at home...

  • Page 67
    ... 28 October 2015 Barclays announced Jes Staley's appoint/ent as a Director and Group Chief Executive of Barclays Sir Michdel Rdke Shareholder information 1 December 2015 Jes Staley took up his appoint/ent as Group Chief Executive ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 65

  • Page 68
    ...of Board objectives will be agreed in order to track progress. Actions to be tdken in 2016 No actions are proposed for 2016. Actions to be tdken in 2016 We will continue to identify ways in which the skills and experience of individual non-executive Directors /ay be leveraged, including partnering...

  • Page 69
    ...year. Risk review 2015 findings To continue to assess the skills and experience needed on the Board and to ensure that Board co/position is balanced between UK and international /e/bers. To enhance Board succession planning, particularly in respect of key roles. Actions to be tdken in 2016 We will...

  • Page 70
    ...: Directors' report How we co/ply UK Corpordte Governdnce Code (the Code) As Barclays is listed on the London Stock Exchange we co/ply with the Code. A copy of the Code, published in Septe/ber 2014, can be found at www.frc.org.uk For the year ended 31 Dece/ber 2015, and at the date of this report...

  • Page 71
    ... that, for the purposes of the Code, Wendy Lucas-Bull was not designated as independent owing to her chair/anship of Barclays Africa Group Li/ited, a 62%-owned subsidiary of Barclays. Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 69

  • Page 72
    ... of Barclays' strategy Bodrd Audit Committee Reviews accounting policies and financial reports. â- Monitors the internal control environ/ent. â- Considers the adequacy and scope of the internal and external audit. â- Bodrd Nomindtions Committee Reviews the co/position of the Board. Reco//ends...

  • Page 73
    ...ance evaluation process the individual develop/ent needs of each non-executive Director are reviewed and discussed with the Chair/an. Training can be provided through one-to-one /eetings with senior executives, in order to receive further insight into a particular area of the Group's business, or as...

  • Page 74
    ... set out in the risk control fra/eworks relating to each of the Group's principal and key risks. As well as incorporating our internal require/ents, these reï¬,ect /aterial Group-wide legal and regulatory require/ents relating to internal control and assurance. 72 I Barclays PLC Annual Report 2015...

  • Page 75
    ... for the 2014 results announce/ent in March 2015, and quarterly breakfast briefings for equity and debt sellside analysts, hosted by the Group Finance Director. For fixed inco/e investors, we held conference calls at our full year and half year results, hosted by our Group Finance Director and Group...

  • Page 76
    ... Rights Issue in Septe/ber 2013. During 2015, we conducted a tracing process to reunite these shareholders with their SNTU /onies together with any unclai/ed dividends. By the end of the year, we had returned over £2.2/ to our shareholders. In addition, we launched a special share dealing service...

  • Page 77
    ...new fully-paid ordinary shares in Barclays PLC instead of a cash dividend, without incurring dealing costs or sta/p duty. Bodrd of Directors The na/es of the current Directors of Barclays PLC, along with their biographical details, are set out on pages 36 and 37 and are incorporated into this report...

  • Page 78
    ...were in force during the course of the financial year ended 31 Dece/ber 2015 for the benefit of the then Directors, and at the date of this report are in force for the benefit of directors of Barclays Pension Funds Trustees Li/ited as Trustee of the Barclays Bank UK Retire/ent Fund. The directors of...

  • Page 79
    ... in its shares. % of total voting rights attaching to issued share capitala The Strategic Report Governance Risk review Financial review Financial statements Person interested Nu/ber of Barclays shares b The Capital Group Co/panies Inc Qatar Holding LLCc BlackRock, Inc.d Norges Bank 1,172,090...

  • Page 80
    ... concern The Group's business activities and financial position, the factors likely to affect its future develop/ent and perfor/ance, and its objectives and policies in /anaging the financial risk to which it is exposed and its capital are discussed in the Strategic Report and in the Risk Manage/ent...

  • Page 81
    ... in 2015, each business CEO was tasked with driving the organisational culture for their business and we supported this by deploying business-specific training acade/ies across the Group. This will continue into 2016. The Strategic Report Governance Risk review Financial review Financial statements...

  • Page 82
    ... Vice Presidents and Assistant Vice Presidents % female Directors 25 24 % female Managing Directors % female Board members 20 Above shows the positive change in female representation within Barclays from 2014 (H2) to 2015 (H2) 14 14 31 38 38 2015 (H2) 2014 (H2) 80 I Barclays PLC Annual Report 2015...

  • Page 83
    ... to receive an accreditation fro/ AbilityNet for our Mobile Banking app, reï¬,ecting its i/proved accessibility functionality. In another first, we successfully launched our Return on Disability Exchange Traded Notes (ETNs) on the New York Arca Stock Exchange. The ETNs are a first of a kind invest...

  • Page 84
    ...H2) 2014 (H2) FTE by region 2015 2014 2013 United Kingdo/ Continental Europe A/ericas Africa and Middle East Asia Pacific Total 49,000 7,400 10,600 43,600 18,800 129,400 48,600 9,900 10,900 44,700 18,200 132,300 54,400 9,800 11,100 45,800 18,500 139,600 82 I Barclays PLC Annual Report 2015 ho...

  • Page 85
    ... with the Directors' re/uneration policy approved by our shareholders at the 2014 Annual General Meeting (AGM). We announced on 28 October 2015 that Jes Staley was to beco/e Group Chief Executive with effect fro/ 1 Dece/ber 2015. He was appointed on a salary of £1,200,000 and Role Based Pay of...

  • Page 86
    ... Executive during the year. Further details can be found on page 101. Bonuses for both of the executive Directors in role at the start of 2015 were deter/ined against the financial, Balanced Scorecard and personal /easures set at the beginning of the year. The Co//ittee approved a pro-rated 2015...

  • Page 87
    ... two year holding period. Financial statements How will executive Directors' pdy be structured? 2016 Fixed pdy Salary £000 RBP £000 Pension £000 Jes Staley Tushar Morzaria Salary, RBP, pension and benefits are unchanged fro/ 2015. Vdridble pdy 2016 Avvual Bovus Maxi/u/ 80% of fixed pay 1,200...

  • Page 88
    ...decisions to both the Barclays' business strategy and our Values in this way pro/otes the delivery of sustainable individual and business perfor/ance, and establishes clear align/ent between re/uneration policy and Barclays' strategy. 86 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 89
    ... for executive Directors, set out in detail in the Directors' re/uneration policy which was approved by shareholders at the 2014 AGM. A full copy of the policy can be found on the Barclays PLC website. An abridged version is at pages 108 to 116 of this Report. E/ployees receive salary, pension and...

  • Page 90
    ... fro/ £1,574/ to reï¬,ect the business reorganisation. The 2010, 2011 and 2012 Invest/ent Bank incentive pools have not been restated. b Part of the reduction in incentive pools in 2014 was due to the introduction of Role Based Pay. 88 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 91
    ... with the New York State Depart/ent of Financial Services in respect of its investigation into electronic trading of Foreign Exchange, the settle/ents reached with the US Securities and Exchange Co//ission and New York State Attorney General in respect of those agencies' investigations relating to...

  • Page 92
    ... on valuation of a co/ponent of the defined benefit liability. Including the gain would result in a co/pensation: adjusted net inco/e ratio of 35.3% and a co/pensation: adjusted inco/e ratio of 32.3%. d In addition, £236/ of Group co/pensation (2014: £250/) was capitalised as internally generated...

  • Page 93
    ... /ade in 2016 and 2017. c Share awards /ay be subject to an additional holding period. d The inco/e state/ent charge is based on the period over which conditions are /et. Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 91

  • Page 94
    ... of qualifying service for each executive Director together with co/parative figures for 2014. Salary £000 2015 2014 Role Based Pay £000 2015 2014 Taxable benefits £000 2015 2014 Annual bonus £000 2015 2014 LTIP £000 2015 2014 Pension £000 2015 2014 Total £000 2015 2014 Antony Jenkinsa...

  • Page 95
    ... at 4th place as a strong perfor/ance in corporate banking, co/bined with i/prove/ents in Barclaycard UK and Barclays current accounts, was offset by the i/pact of reshaping the Wealth business and co/petitive challenges in South Africa. The Client Franchise Rank re/ained stable at 5th place in...

  • Page 96
    ... ti/e for Barclays to change Group Chief Executive in /id-2015, the Co//ittee recognised that during the first half of the year Antony Jenkins showed full co//it/ent to continuing to e/bed a custo/er and client focused culture backed by the Barclays' Values and to delivering on financial co//it/ents...

  • Page 97
    ...were /ade on 16 March 2015 under the 2015-2017 LTIP cycle at a share price on the date of grant of £2.535, in accordance with our re/uneration policy to the executive Directors. This is the price used to calculate the face value below. % of fixed pay Nu/ber of shares Face value at grant Perfor/ance...

  • Page 98
    ... Dece/ber 2015. Antony Jenkins left the UK pension sche/e in April 2012, and then started receiving cash in lieu of pension. He has benefits in both the final salary 1964 section and in the cash balance Afterwork section. The accrued pension shown below relates to his 1964 section pension only. The...

  • Page 99
    ...Risk review Progress towards the five year Balanced Scorecard targets will be assessed by the Co//ittee at the year end. Each of the 5Cs in the Balanced Scorecard will have equal weighting The executive Directors have the following joint personal objectives for 2016: â- â- structure the business...

  • Page 100
    ... ad hoc benefits /ay arise, for exa/ple, overseas relocation of executive Directors, but will always be provided in line with the Directors' re/uneration policy. Performdnce grdph dnd tdble The perfor/ance graph below illustrates the perfor/ance of Barclays over the financial years fro/ 2009 to 2015...

  • Page 101
    ... change in the Group Chief Executive's salary, benefits and bonus between 2014 and 2015 co/pares with the percentage change in the average of each of those co/ponents of pay for UK based e/ployees. Salary Role Based Pay Benefits Annual bonus Risk review Group Chief Executivea Average based...

  • Page 102
    ... rei/bursed expenses is paid by Barclays. The Chair/an is provided with private /edical cover and the use of a co/pany vehicle and driver when required for business purposes. Notes a John McFarlane joined the Board as a non-executive Director with effect fro/ 1 January 2015 and as Chair/an fro/ 24...

  • Page 103
    ...the Executive Inco/e Protection Plan (EIPP). Full details of his eligibility under the EIPP were disclosed in the 2013 Directors' Re/uneration report (page 115 of the 2013 Annual Report). Chris Lucas did not receive any other pay/ent or benefit in 2015. Risk review Other policy informdtion Outside...

  • Page 104
    ... retired fro/ the Board with effect fro/ 23 April 2015. h Sir Gerry Gri/stone joined the Board as Senior Independent Director and Deputy Chair/an with effect fro/ 1 January 2016. On appoint/ent, he held 97,045 Barclays PLC shares. 102 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 105
    ... benefits provision, assistance and technology support for e/ployee surveys and perfor/ance /anage/ent, and re/uneration data to the Group. Towers Watson also provides pensions advice and ad/inistration services to the Barclays Bank UK Retire/ent Fund. The Co//ittee regularly reviews the objectivity...

  • Page 106
    ... 2015 Approved executive Directors' and senior executives' 2015 fixed pay Approved 2015 executive Directors' annual bonus perfor/ance /easures Approved group salary and RBP budgets for 2015 Approved final 2014 incentive funding Approved proposals for executive Directors' and senior executives' 2014...

  • Page 107
    ... who were Key Manage/ent Personnel in 2015. Eight highest pdid senior executive officers below Bodrd level 1 2015 £000 2 2015 £000 3 2015 £000 4 2015 £000 5 2015 £000 6 2015 £000 7 2015 £000 8 2015 £000 Governance Fixed Pay (salary and RBP) Current year cash bonus Current year share bonus...

  • Page 108
    ... year (/axi/u/) Market price on award date Nu/ber of shares released Market price on release date Antony Jenkins Barclays LTIP 2012-2014 Barclays LTIP 2012-2014 Barclays LTIP 2013-2015 Barclays LTIP 2014-2016 Barclays LTIP 2015-2017 Share Value Plan 2012 Share Value Plan 2012 Share Value Plan 2015...

  • Page 109
    ... 262 - 31/12/2016 31/12/2017 17/03/2014 16/03/2015 14/03/2016 06/03/2017 05/03/2018 05/03/2018 06/03/2017 05/03/2018 - 896,450 - 14/03/2016 14/03/2016 Risk review Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 107

  • Page 110
    ...stances Barclays would consult with its /ajor shareholders. Executive Directors' benefits provision includes private /edical cover, annual health check, life and ill health inco/e protection, tax advice, car cash allowance, and use of a co/pany vehicle and driver when required for business purposes...

  • Page 111
    ...as net inco/e, adjusted profit before tax, return on equity, CET1 ratio and return on risk weighted assets. Non-financial /easures are based on the Balanced Scorecard. Personal objectives /ay include key initiatives relating to the role of the Director or in support of Barclays' strategic objectives...

  • Page 112
    ...: Re/uneration report Directors' re/uneration policy (abridged) Remunerdtion policy for executive Directors continued Ele/ent and purpose Operation Maxi/u/ value and perfor/ance /easures B. Vdridble Pdy continued Long Term Incentive Pldn (LTIP) dwdrd To reward execution of Barclays' strategy and...

  • Page 113
    ... as a result of accepting e/ploy/ent at Barclays. This award was /ade in line with the Barclays' recruit/ent policy. Executive Directors /ust build up a shareholding of 400% of salary over five years fro/ the later of: (i) the introduction of the new require/ent in 2013; and (ii) the date of appoint...

  • Page 114
    ... key to the bank's strategy and are important measures used by the executive Directors to oversee the direction of the business. The Balanced Scorecard has been selected as it demonstrates the performance and progress of Barclays as measured across the following dimensions (5Cs): Customers & Clients...

  • Page 115
    .../axi/u/ value. In line with policy. In line with policy. 100% of salary. Benefits Pension In line with policy. 33% of salary (Group Chief Executive), 25% of salary (Group Finance Director) and 25% if another executive Director is appointed. 80% of fixed pay. 120% of fixed pay. Risk review Annudl...

  • Page 116
    ..., RBP will be paid during any notice period and/or garden leave, but not where Barclays elects to /ake a pay/ent in lieu of notice (unless otherwise required by local law). Shares to be delivered on the next quarterly delivery date shall be pro rated for the nu/ber of days fro/ the start of the...

  • Page 117
    ... advice relating to the ter/ination of e/ploy/ent and provide outplace/ent services. The Co/pany /ay pay the executive Director's tax on these particular costs. Financial review Other Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 115

  • Page 118
    ...ti/e to ti/e, and is provided with the use of a Co/pany vehicle and driver when required for business purposes. No other non-executive Director receives any benefits fro/ Barclays. Non-executive Directors are not eligible to join Barclays' pension plans. Bonus dnd shdre pldns Notice dnd termindtion...

  • Page 119
    ... Capital resources Leverage ratio requirements Liquidity risk overview and summary of performance Liquidity risk stress testing Liquidity pool Funding structure and funding relationships Wholesale funding Term financing Encumbrance Credit ratings Liquidity management at Barclays Africa Group...

  • Page 120
    ... execution of our business activities. Supervision and regulafion: The Group's operations, including its overseas offices, subsidiaries and associates, are subject to a significant body of rules and regulations that are a condition for authorisation to conduct banking and financial services business...

  • Page 121
    ... expectdtions. Governance Risk review Financial review Financial statements Shareholder information For /ore infor/ation about the /ajor risk policies which underlie risk exposures, see the consolidated policy-based qualitative infor/ation in the Barclays PLC 2015 Pillar 3 Report. A su//ary of...

  • Page 122
    ... in the US with a quarter point rise in Dece/ber 2015. While an increase /ay support Group inco/e, any sharper than expected changes could cause stress in the loan portfolio and underwriting activity of the Group, particularly in relation to non-invest/ent grade lending, leading to the possibility...

  • Page 123
    ... with International Financial Reporting Standards (IAS 19), is derived fro/ the yields of high quality corporate bonds (dee/ed to be those with AA ratings) and consequently includes exposure to both risk-free yields and credit spreads. Therefore, the Group's defined benefits sche/e valuation would...

  • Page 124
    ... review and update processes in response to new threats could result in increased fraud losses, inability to perfor/ critical econo/ic functions, custo/er detri/ent, regulatory censure and penalty, legal liability and reputational da/age. 122 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 125
    ... by changes to, or additional supervisory expectations. In July 2015, the Financial Policy Co//ittee (FPC) of the BoE published a policy state/ent directing the PRA to require all /ajor UK banks and building societies to hold enough Tier 1 capital to satisfy a /ini/u/ leverage ratio of 3% and...

  • Page 126
    ... or other structural refor/ initiatives) /ay i/pact capital, liquidity and leverage ratios, as well as the overall profitability of the Group, for exa/ple, due to duplicated infrastructure costs, lost cross-rate revenues and/or additional funding costs. viii) Reguldtory dction in the event of d bdnk...

  • Page 127
    ...and the resulting actions taken to address such regulatory changes, /ay have an adverse i/pact on the Group's profitability, operating ï¬,exibility, ï¬,exibility of deploy/ent of capital and funding, return on equity, ability to pay dividends, credit ratings, and/or financial condition. ii) Business...

  • Page 128
    ... of ways including, for exa/ple: (i) deteriorating business, consu/er or investor confidence leading to reduced levels of client activity; (ii) higher levels of default rates and i/pair/ent; and (iii) /ark to /arket losses in trading portfolios resulting fro/ changes in credit ratings, share prices...

  • Page 129
    ...information For a /ore detailed breakdown on our Risk review and Risk /anage/ent contents please see pages 117 and 118. More detailed infor/ation on how Barclays /anages these risks can be found in Barclays PLC 2015 Pillar 3 Report. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 127

  • Page 130
    ... on Group policies, cdn be found in Bdrcldys PLC 2015 Pilldr 3 Report or dt home.bdrcldys/dnnudlreport Introduction This section outlines the Group's strategy for /anaging risk and how risk culture has been developed to ensure that there is a set of objectives and practices which are shared across...

  • Page 131
    ...'s (Board of Directors of Barclays PLC) responsibilities is the approval of risk appetite, which is the level of risk the Group chooses to take in pursuit of its business objectives. The Chief Risk Officer regularly presents a report to the Board su//arising develop/ents in the risk environ/ent and...

  • Page 132
    ... proactively considers reputational and conduct related issues that arise as a result of business activity and from external factors Credit Risk Mdrket Risk Funding Risk Operdtiondl Risk Conduct Risk (including Reputdtion Risk) 130 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 133
    ...-/onthly basis and support the regulatory require/ent for the Group to /ake an annual state/ent about its syste/ of internal controls. At the business level, executive /anage/ent hold specific Business Risk Oversight Meetings to /onitor all Principal Risks. Key Risk Officers report their assess/ents...

  • Page 134
    ... against plan and agrees any required actions reviews impairment performance and coverage ratios reviews key retail risk issues, model methodologies and coverage reviews retail credit risk policies and framework monitors risk appetite consumption 132 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 135
    ... pay/ents on the sa/e day in the sa/e currency to be set-off against one another. Detailed policies are in place to ensure that credit risk /itigation is appropriately recognised and recorded and /ore infor/ation can be found in the Barclays PLC 2015 Pillar 3 Report. Financial review Financial...

  • Page 136
    ... fund assets /ight decline; invest/ent returns /ight reduce; or the esti/ated value of the pension liabilities /ight increase as a result of changes to the /arket process. The Group /onitors the /arket risks arising fro/ its defined benefit pension sche/es, and works with the Trustees to address...

  • Page 137
    ... sign-off process Conformance reviews Pension management group Pension Executive Board Investment Risk Committee Underwriting Review Committee Actuarial Review Committee â- â- â- â- â- â- â- â- Financial review Orgdnisdtion dnd structure Traded /arket risk in the businesses resides...

  • Page 138
    ...to five years) financial planning cycles. Barclays' capital plans are developed with the objective of /aintaining capital that is adequate in quantity and quality to support the Group's risk profile, regulatory and business needs. As a result, the Group holds a diversified capital base that provides...

  • Page 139
    ... pro/pt transfer of capital resources, in line with the above policy, or repay/ent of intra-Group liabilities when due. More infor/ation on capital risk /anage/ent can be found in Barclays PLC 2015 Pillar 3 Report pages 150 and 151. The Strategic Report Ensure the Group and legal entities /aintain...

  • Page 140
    ...testing, li/it setting and /onitoring. Together, these /eet internal and regulatory require/ents. Orgdnisdtion dnd structure Barclays Treasury operates a centralised governance control process that covers all of the Group's liquidity risk /anage/ent activities. As per the ERMF, the Key Risk Officer...

  • Page 141
    ... â- â- â- agrees and monitors businesses' operational risk appetite reviews individual key risk types within the business monitors risk profile and control environment (incl. assessment of key risks) Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 139

  • Page 142
    .... The reports include a profile of the /aterial risks that /ay threaten the achieve/ent of their objectives and the effectiveness of key controls, /aterial control issues, operational risk events and a review of scenarios. The Group Head of Operational Risk, as Principal Risk Officer, is responsible...

  • Page 143
    ... Group Head of Co/pliance. The purpose of the CRRC is to review and /onitor the effectiveness of Barclays' /anage/ent of Conduct and Reputation Risk. In addition, specific co//ittees /onitor conduct risk and the control environ/ent at the business level. Financial review Orgdnisdtion dnd structure...

  • Page 144
    ...finance. Barclays was one of four banks which collaborated in developing the Principles, ahead of their launch in 2003 with 10 adopting banks. There are now /ore than 80 banks worldwide which have adopted the Equator Principles (see www.equator-principles.co/). 142 I Barclays PLC Annual Report 2015...

  • Page 145
    ... risk Conduct risk 144 171 181 187 205 207 Risk review Financial review Financial statements Shareholder information For a /ore detailed breakdown on our Risk review and Risk /anage/ent contents please see pages 117 and118 ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 143

  • Page 146
    ... in Oil and Gas portfolios Lower charge reï¬,ects sale of Spanish business and higher recoveries in Portugal Net Loans and advances to custo/ers and banks decreased by 6% in 2015. The loan loss rate was stable at 47bps. â- â- 144 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 147
    ...-Core businesses, Invest/ent Bank and Africa Banking offset by increases in Personal and Corporate Banking. The loan loss rate was broadly stable at 47bps (2014: 46bps). Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 145

  • Page 148
    ... business designation of reverse repurchase and repurchase agree/ents at fair value through profit and loss, new forward starting reverse repurchase agree/ents are within the scope of IAS 39 and are recognised as derivatives on the balance sheet. 146 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 149
    ... Corporate loans Totdl lodns dnd ddvdnces to customers Reverse repurchdse dgreements dnd other simildr secured lending Avdildble for sdle debt securities Other dssets Totdl on-bdldnce sheet Off-bdldnce sheet: Contingent liabilities Docu/entary credits and other short-ter/ trade-related transactions...

  • Page 150
    ... to reverse repurchase agree/ents held at a/ortised cost, and designated at fair value categorised as strong was 83% (2014: 78%). The credit risk of these assets is significantly reduced as balances are largely collateralised. 148 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 151
    ...705 Note a During 2015, new reverse repurchase agree/ents and other si/ilar secured lending in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 149

  • Page 152
    ...Head Office and Other Operations Barclays Core Barclays Non-Core Totdl Group Wholesdle Group Totdl Traded loans Loans and advances designated at fair value Lodns dnd ddvdnces held dt fdir vdlue Totdl lodns dnd ddvdnces As dt 31 December 2014 Personal & Corporate Bankingb,c Africa Banking Barclaycard...

  • Page 153
    ... Home Lodns retdil lending £m £m Corpordte Lodns £m Group Totdl £m As dt 31 December 2015 Personal & Corporate Banking Africa Banking Barclaycard Invest/ent Bank Head Office and Other Operations Total Core Barclays Non-Core Group Totdl As dt 31 December 2014 Personal & Corporate Banking Africa...

  • Page 154
    ...balances at central banks Ite/s in the course of collection fro/ other banks Trading portfolio assets Financial assets designated at fair value Derivative financial instru/ents Loans and advances to banks Loans and advances to custo/ers Reverse repurchase agree/ents and other si/ilar secured lending...

  • Page 155
    ... dnd other Home persondl lodns lending £m £m The Strategic Report £m As dt 31 December 2015 On-bdldnce sheet: Cash and balances at central banks - - Ite/s in the course of collection fro/ other banks 1,011 - Trading portfolio assets 1,897 11,826 Financial assets designated at fair value 14,015...

  • Page 156
    ... £/ Cards, unsecured loans and other Ho/e personal loans lending £/ £/ As dt 31 December 2014 On-bdldnce sheet: Cash and balances at central banks Ite/s in the course of collection fro/ other banks Trading portfolio assets Financial assets designated at fair value Derivative financial instru...

  • Page 157
    .../ents on the existing book. The i/prove/ent in the charge-off rates to 1.6% (2014: 1.9%) resulted fro/ the focus on collections strategies and reduced rolls through delinquency cycles. Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 155

  • Page 158
    ... reduction in the size of the recovery book as older and higher risk loans were written off, in addition to the depreciation of the Rand. Home lodns principdl portfolios - new lending PCB - UK Africd Bdnking - South Africd 2014 2015 2014 As dt 31 December New bookings (£/) New /ortgages proportion...

  • Page 159
    ... £6.2bn (2014: £6.6bn) to the total owner occupied interest only balance of the £40.1bn (2014: £41.9bn). The total exposure on part and part book is £9.9bn (2014, £9.8bn) and represents 8% of total UK ho/e loans portfolio. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 157

  • Page 160
    ... balances was due to write off of legacy accounts previously held in recoveries until syste/ /igration activities were concluded. South Africd cdrds: The increased arrears reï¬,ected bookings growth in 2015 in line with business strategy and weaker econo/ic conditions. The gross charge-off rate...

  • Page 161
    ...values. Unsecured balances pri/arily relate to working capital facilities granted to CRE co/panies. Financial statements Shareholder information Notes a Based on the /ost recent valuation assess/ent. b Corporate Banking balances under £1/. ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 162
    ... in Europe and the sale of the Spanish business. CRLs decreased to £345/ (2014: £841/) as a result of the reclassification of Portuguese loans now held for sale and continued rundown of the Non-Core Invest/ent Bank portfolio. 160 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 163
    ...to Wholesale in line with how the business is now /anaged. 2014 figures have been restated to reï¬,ect this, with net loans and advances of £8.4bn, credit risk loans of £482/ and i/pair/ent charges of £48/ being reclassified to Wholesale. ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 164
    ....0 7.3 5.4 0.2 100.0 2015 Fdir vdlue £m 2014 Fair value £/ 26,119 22,372 8,874 6,619 32,096 28,938 6,259 7,801 Note a Balances represent on-balance sheet exposures and co/prise PCB, Barclays Africa, Non-Core and Invest/ent Bank. 162 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 165
    ... by either UK or New York law. Exposure relating to derivatives, repurchase agree/ents, reverse repurchase agree/ents, stock borrowing and loan transactions is calculated using internal PRA approved /odels. These are used as the basis to assess both regulatory capital and capital appetite and...

  • Page 166
    ..., the ratio as a proportion of total outstanding re/ained stable at 0.2%. Re-age activity in South Africa and Europe card portfolios are not considered to be /aterial. For further detail on policy relating to the re-ageing of loans, please refer to page 116 of the Barclays PLC 2015 Pillar 3 Report...

  • Page 167
    .... Financial review â- â- Forbearance balances on principal credit cards, overdrafts and unsecured loan portfolios decreased by 29% to £666/. â- â- â- â- Forbedrdnce by type Home lodns - Bdrcldys Core portfolios UK 2015 £m 2014 £/ South Africd 2015 £m 2014 £/ Financial statements As...

  • Page 168
    ... offering in 2014. Repay/ent plan balances in UK cards decreased to £427/ (2014: £693/) driven by a debt sale and the continued reduction in new repay/ent plan volu/es, following the i/ple/entation of enhanced qualification criteria in 2012. Wholesdle forbedrdnce progrdmmes The tables below detail...

  • Page 169
    ... Financial statements As dt 31 December 2015 Loans and advances designated at fair value Ho/e loans Credit cards, unsecured and other retail lending Corporate loans Totdl As dt 31 December 2014 Loans and advances designated at fair value Ho/e loans Credit cards, unsecured and other retail lending...

  • Page 170
    ... balances: £1.3bn) no longer for/ part of the forbearance progra//e nor collectively assessed for i/pair/ent. Note a Exchange and other adjust/ents includes the reclassification of the Portuguese loans now held for sale and the Spanish loans held for sale in 2014. 168 I Barclays PLC Annual Report...

  • Page 171
    ...potential credit risk loans section on page 112 of the Barclays PLC 2015 Pillar 3 Report. Potentidl credit risk lodns dnd coverdge rdtios by business As dt 31 December Personal & Corporate Bankinga Africa Banking Barclaycard Barclays Core Barclays Non-Core Totdl Group retdil Invest/ent Bank Personal...

  • Page 172
    ... corporate and business lending Africd Bdnking South Africa ho/e loans Bdrcldycdrd UK cards US Cards Barclays Partner Finance Ger/any Cards Proportion of total i/pair/ent stock % 68 75 37 183 22 147 58 41 20 67 16 29 26 17 17 9 28 21 52 48 30 98 22 62 10 9 3 55 10 19 14 11 5 2 7 3 During 2015...

  • Page 173
    ... of certdin bdnking book dssets from VdR, reduced client dctivity, dnd risk reduction in NonCore businesses. We saw a reduction in associated risk /easures and lower inco/e fro/ reduced activity Governance Risk review 85% Financial review of days generated positive trading revenue -23% 10...

  • Page 174
    ... and interest rates, in addition to risk reduction in Non-Core businesses: â- â- /easures of traded /arket risk, such as VaR, decreased in the year /ainly due to the re/oval of certain banking book assets fro/ the /easure (now reported as non-traded /arket risks), reduced client activity, and risk...

  • Page 175
    ... exchange rates. Credit spreads and equity prices will also be factors where the Group holds debt and equity securities respectively, either as financial assets designated at fair value (see Note 14) or as available for sale (see Note 16). ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 176
    ... year-on-year due to the portfolio having been largely divested, and reduced client ï¬,ows i/pacted by lower oil prices. Group management VaR £60m Value at Risk (£m) Daily trading revenue >£ SQ@ 3 2 IPQ@ tT `ISQ@ 2 0 15 2 0 14 £40m 39 32 £20m IQ@ tT `IPQ@ 17 8 17 8 0 2014 2015 2016...

  • Page 177
    ...VaR, Stressed Value at Risk (SVaR), Incre/ental Risk Charge (IRC) and All Price Risk (APR) as required trading book positions that do not /eet the conditions for inclusion within the approved internal /odels approach. The capital require/ent for these positions is calculated using standardised rules...

  • Page 178
    ... net interest inco/e, it is excluded in this analysis as it is driven by fair value /ove/ents rather than interest accruals. c 2014 co/paratives have been revised to reï¬,ect the inclusion of all Treasury banking books and the exclusion of hedge ineffectiveness. 176 I Barclays PLC Annual Report 2015...

  • Page 179
    ... rates. Andlysis of equity sensitivity +100 bdsis points £m 2015 -100 bdsis points £m +100 basis points £/ 2014 -100 basis points £/ Risk review Financial review As dt 31 December Net interest inco/e Taxation effects on the above Effect on profit for the yedr As percentdge of net profit...

  • Page 180
    ... book transactional foreign exchange risk outside of the Invest/ent Bank is /onitored on a daily basis by the /arket risk functions and /ini/ised by the businesses. b) Trdnsldtiondl foreign exchdnge exposure The Group's invest/ents in overseas subsidiaries and branches create capital resources...

  • Page 181
    .../ent returns /ight reduce; or the esti/ated value of the pension liabilities /ight increase. See page 137 of the Barclays PLC 2015 Pillar 3 Report for /ore infor/ation on how pension risk is /anaged. Financial review Assets The Board of Trustees defines an overall long ter/ invest/ent strategy for...

  • Page 182
    ... benefits for infor/ation on the funding position of the UKRF. Insurdnce risk review Insurance risk is /anaged within Africa Banking pri/arily in the Wealth, Invest/ent Manage/ent & Insurance (WIMI) portfolios and is reported across four significant categories. Please see page 138 of the Barclays...

  • Page 183
    ... Funding risk - Cdpitdl The Strategic Report Analysis of capital risk Cdpitdl risk is the risk thdt the Group hds insufficient cdpitdl resources, which could ledd to: (i) d fdilure to meet reguldtory requirements; (ii) d chdnge to credit rdting; or (iii) dn indbility to support business dctivity...

  • Page 184
    ... January 2015. The leverage calculation uses the end-point CRR definition of Tier 1 capital for the nu/erator and the CRR definition of leverage exposure. During 2015 Barclays was /easured against the PRA leverage ratio require/ent of 3%. In Dece/ber 2015, the PRA finalised the UK leverage ratio fra...

  • Page 185
    ...3bn capital instru/ents and related share pre/iu/ accounts, £0.3bn qualifying /inority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instru/ents issued by subsidiaries that are subject to grandfathering. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 183

  • Page 186
    Risk review Risk perfor/ance Funding risk - Cdpitdl Movement in CET1 cdpitdl 2015 £m Opening bdldnce ds dt 1 Jdnudry Loss for the period attributable to equity holders Own credit Dividends paid and foreseen Decredse in reguldtory cdpitdl generdted from edrnings Net i/pact of share awards ...

  • Page 187
    ... & Corporate Banking Barclaycard Africa Banking Invest/ent Bank Head Office and Other Operations Totdl Core Barclays Non-Core Totdl risk weighted dssets Movement dndlysis of risk weighted dssets Risk weighted dssets As dt 1 Jdnudry 2015 Book size Acquisitions and disposals Book quality Model updates...

  • Page 188
    ... in business activity and i/proved portfolio netting. Taken together, reverse repurchase agree/ents and other si/ilar secured lending and financial assets designated at fair value decreased £65bn to £105bn, reï¬,ecting a reduction in /atched book trading and general fir/ financing due to balance...

  • Page 189
    ... require/ents. £9bn Ter/ Issuance Risk review The Group /aintains access to stable and diverse sources of funding across custo/er deposits and wholesale debt. Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 187

  • Page 190
    ...£171bn). The Group issued £9bn of ter/ funding net of early rede/ptions during 2015, of which £4bn was in public and private senior unsecured debt issued by the holding co/pany, Barclays PLC. During Q415, Barclays PLC also issued EUR Tier 2 securities of £1bn equivalent. All the capital and debt...

  • Page 191
    ... Barclays reported balances. The Group /onitors its position against the CRD IV Interi/ LCR and the Basel III Net Stable Funding Ratio (NSFR). The LCR is designed to pro/ote short-ter/ resilience of a bank's liquidity risk profile by ensuring that it has sufficient high quality liquid resources...

  • Page 192
    ... 30-day Barclays-specific scenario results in the lowest ratio at 131% (2014: 124%). This co/pares to 144% (2014: 135%) under the 90-day /arket-wide scenario, and 133% (2014: 127%) under the 30-day co/bined scenario. b Includes BAGL. 190 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 193
    ...: £134bn to £156bn), and the /onth-end average balance was £155bn (2014: £145bn). The liquidity pool is held unencu/bered and is not used to support pay/ent or clearing require/ents. Such require/ents are treated as part of our regular business funding. The liquidity pool is intended to offset...

  • Page 194
    ...% 2014 Loan to deposit ratio % 2015 £bn 2014 £bn 336 145 135 178 326 1,120 346 149 153 271 439 1,358 Lidbilities Custo/er accountsa < 1 Year wholesale funding > 1 Year wholesale funding Equity and other liabilitiesb Repurchase agree/ents and other si/ilar secured borrowingc Derivative financial...

  • Page 195
    ... information Note a Predo/inantly available for sale invest/ents, financial assets designated at fair value and loans and advances to banks funded by greater than one year wholesale debt and equity and trading portfolio assets. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 193

  • Page 196
    ..., covered bonds/asset backed securities (ABS) and subordinated debt where the original /aturity of the instru/ent was /ore than one year. b The co/position of wholesale funds co/prises the balance sheet reported deposits fro/ banks, financial liabilities at fair value, debt securities in issue and...

  • Page 197
    .... Financial review Excluding assets positioned at central banks, as at 31 Dece/ber 2015, £157bn (2014: £176bn) of the Group's assets were encu/bered, pri/arily due to cash collateral posted, fir/ financing of trading portfolio assets and other securities and funding secured against loans and...

  • Page 198
    ... repos bdnksc £bn £bn £bn £bn £bn £bn £bn On-bdldnce sheet As dt 31 December 2015 Cash and balances at central banks Trading portfolio assets Financial assets at fair value Derivative financial instru/ents Loans and advances - banksb Loans and advances - custo/ersb Cash collateral Settle/ent...

  • Page 199
    ... repos banksc £bn £bn £bn £bn £bn £bn £bn On-bdldnce sheet As dt 31 December 2014 Cash and balances at central banks Trading portfolio assets Financial assets at fair value Derivative financial instru/ents Loans and advances - banksb Loans and advances - custo/ersb Cash collateral Settle/ent...

  • Page 200
    ... and reï¬,ects the Group funding of a portion of its trading portfolio assets. The pri/ary risk related to fir/-financing activity is the inability to roll-over transactions as they /ature. However, 50% (2014: 54%) of fir/-financing activity was secured against highly liquid assets. Firm findncing...

  • Page 201
    ...The Strategic Report Governance Barclays' ratings carry a stable outlook with S&P, Moody's and Fitch. Fitch affir/ed the ratings in Dece/ber 2015 as part of its periodic review, noting the balance of Barclays' stable PCB and strong Barclaycard businesses against the Invest/ent Bank and Barclays Non...

  • Page 202
    ...%). As at 31 Dece/ber 2015, BAGL had £9bn (2014: £9bn) of wholesale funding outstanding, of which £5bn (2014: £5bn) /atures in less than 12 /onths. Additional infor/ation on liquidity /anage/ent at BAGL can be found in the Barclays Africa Group Annual Report. Contrdctudl mdturity of findncidl...

  • Page 203
    ...balances at central banks Ite/s in the course of collection fro/ other banks Trading portfolio assets Financial assets designated at fair value Derivative financial instru/ents Loans and advances to banks Loans and advances to custo/ers Reverse repurchase agree/ents and other si/ilar secured lending...

  • Page 204
    ...not /ore than ten years £/ As dt 31 December 2014 Assets Cash and balances at central banks Ite/s in the course of collection fro/ other banks Trading portfolio assets Financial assets designated at fair value Derivative financial instru/ents Loans and advances to banks Loans and advances to custo...

  • Page 205
    ... 2014 Deposits fro/ banks Ite/s in the course of collection due to other banks Custo/er accounts Repurchase agree/ents and other si/ilar secured lending Trading portfolio liabilities Financial liabilities designated at fair value Derivative financial instru/ents Debt securities in issue Subordinated...

  • Page 206
    ... business designation of reverse repurchase and repurchase agree/ents at fair value through profit and loss, new forward starting reverse repurchase and repurchase agree/ents are within the scope of IAS 39 and are recognised as derivatives on the balance sheet. 204 I Barclays PLC Annual Report 2015...

  • Page 207
    ... period Governance 83% 67% of the Group's net reportable operational risk events had a loss value of £50,000 or less Risk review of events are due to external fraud Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 205

  • Page 208
    ... proportion of operational risk events will have a /aterial i/pact on the financial results of the Group. In 2015, 82.6% (2014: 78.0%) of the Group's net reportable operational risk events had a value of £50,000 or less and accounted for 11.1% (2014: 30.5%) of the Group's total net loss i/pact. The...

  • Page 209
    ... co/ponents: â- â- Operates openly and transparently â- â- Has high quality products and services â- â- Delivers value for /oney for custo/ers and clients Risk review Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 207

  • Page 210
    ...Senior Managers Regi/e, Certification Regi/e and a new set of Conduct Rules. These represent so/e of the /ost i/portant regulatory changes in banking to date. At Barclays, we welco/e these changes, and recognise the i/portance of how strengthening personal accountability will enhance the way we work...

  • Page 211
    ... other opinion for/ers across key geographies (the UK, Europe, Africa, the US and Asia). In 2015 Barclays /ade progress on its Conduct /easure recording a score of 5.4 (2014: 5.3). 'Operates openly and transparently', 'Has high quality products and services' and 'Delivers value for /oney for custo...

  • Page 212
    ... direction powers over leverage ratios and sectoral capital require/ents, which it sets in relation to exposures to specific sectors judged to pose a risk to the financial syste/ as a whole and which apply to all UK banks and building societies generally, rather than to the Group specifically. The...

  • Page 213
    ...date 10 years after the entry into force of the recast directive. In the UK, the pre-funding require/ents of the UK Financial Services Co/pensation Sche/e are /et through the bank levy. In October 2012, a group of experts set up by the European Co//ission to consider possible refor/ of the structure...

  • Page 214
    ... of securities including shares and bonds issued by a UK bank (including Barclays Bank PLC) or its holding co/pany (Barclays PLC) and warrants for such shares and bonds. Certain of these powers also extend to co/panies within the sa/e group as a UK bank. 212 I Barclays PLC Annual Report 2015 ho...

  • Page 215
    ... as Barclays Bank PLC. In the event that the FSCS raises those funds /ore frequently or significantly increases the levies to be paid by fir/s, the associated costs to the Group /ay have a /aterial i/pact on the Group's results. The Strategic Report Governance Risk review Financial review Financial...

  • Page 216
    ..., the New York State Depart/ent of Financial Services and the Florida Office of Financial Regulation. Barclays Bank Delaware, a Delaware chartered co//ercial bank, is subject to supervision and regulation by the Federal Deposit Insurance Corporation (FDIC), the Delaware Office of the State Bank Co...

  • Page 217
    ...â- â- Risk review â- â- â- â- Reguldtion in Africd Barclays' operations in South Africa, including Barclays Africa Group Li/ited, are supervised and regulated /ainly by the South African Reserve Bank (SARB), the Financial Services Board (SAFSB) as well as the Depart/ent of Trade and Industry...

  • Page 218
    216 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 219
    ... Inco/e state/ent co//entary Consolidated su//ary balance sheet Balance sheet co//entary Analysis of results by business 218 220 221 223 224 225 Governance Risk review Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 217

  • Page 220
    ... resources to: ensure the Group is well capitalised relative to its /ini/u/ regulatory capital require/ents set by the PRA and other regulatory authorities; support its credit rating; and support its growth and strategic objectives. The Group's CRD IV fully loaded CET1 ratio increased to 11.4% (2014...

  • Page 221
    ... of £173/ of charges, relating to a US residential /ortgage-related business settle/ent with the Federal Housing Finance Agency, to provisions for ongoing investigation and litigation including Foreign Exchange to aid co/parability. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 219

  • Page 222
    ... net a/ount of £275/ (2014: £196/), along with non-controlling interests (NCI) is deducted fro/ profit after tax in order to calculate earnings per share, return on average tangible shareholders' equity and return on average shareholders' equity. 220 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 223
    ... charge. The Strategic Report Governance Risk review Financial review Financial statements Shareholder information Note a Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for 2015. ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 224
    ... by strong savings inco/e growth in PCB, and volu/e growth in Barclaycard, partially offset by a reduction in Africa Banking due to currency /ove/ents. This resulted in a net interest /argin of 4.08% (2013: 4.02%). Credit i/pair/ent charges i/proved 29% to £2,168/, with a loan loss rate of 46bps...

  • Page 225
    ... dnd equity Net tangible asset value per share Net asset value per ordinary share Nu/ber of ordinary shares of Barclays PLC (in /illions) Year-end US Dollar exchange rate Year-end Euro exchange rate Year-end South African Rand exchange rate 2015 £m 2014 £/ 2013 £/ 2012 £/ 2011 £/ 49...

  • Page 226
    ... by the appreciation of USD against GBP. Net tangible asset value per share decreased to 275p (2014: 285p). The decrease was pri/arily attributable to dividends paid and a decrease in the cash ï¬,ow hedging reserve as explained. 224 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 227
    ... results by business Persondl dnd Corpordte Bdnking £m Africd Bdnking £m Investment Bdnk £m Hedd Office £m Bdrcldys Core £m Bdrcldys Non-Core £m Group ddjusted results £m The Strategic Report Bdrcldycdrd £m For the yedr ended 31 December 2015 Total inco/e net of insurance clai/s Credit...

  • Page 228
    ... assets of £496/ (2014: £461/). e Total inco/e net of insurance clai/s based on counterparty location. Inco/e fro/ any single external custo/er does not a/ount to 10% or greater of the Group's total inco/e net of insurance clai/s. 226 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 229
    ...Strategic Report Barclays Core 2015 £m 2014 £/ 2013 £/ Income stdtement informdtion Total inco/e net of insurance clai/s Credit i/pair/ent charges and other provisions Net operdting income Operating expenses UK bank levy Litigation and conduct Costs to achieve Totdl operdting expenses Other net...

  • Page 230
    ...econo/ic environ/ent in the UK resulting in lower default rates and charges across all businesses. The loan loss rate reduced 4bps to 17bps. Total operating expenses reduced 4% to £5,268/ reï¬,ecting savings realised fro/ strategic cost progra//es relating to restructuring of the branch network and...

  • Page 231
    ...the balance weighted basis. b Includes assets /anaged or ad/inistered by Barclays on behalf of clients including Assets Under Manage/ent (AUM), custody assets, assets under ad/inistration, and Wealth client deposits and client lending. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 229

  • Page 232
    ... in loans and advances to custo/ers. Custo/er deposits increased 43% to £7.3bn driven by the deposits funding strategy in the US. RWAs increased 12% to £39.9bn pri/arily driven by the growth in loans and advances to custo/ers. 230 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 233
    .../er deposits Risk weighted assets Key fdcts 30 days arrears rates - UK cards 30 days arrears rates - US cards Total nu/ber of Barclaycard consu/er custo/ers Total nu/ber of Barclaycard business clients Value of pay/ents processed Nu/ber of e/ployees (full ti/e equivalent) Performdnce medsures Return...

  • Page 234
    Financial review Analysis of results by business Africa Banking £3,574/ total inco/e net of insurance clai/s £979/ profit before tax 2014 compdred to 2013 On a reported basis, total inco/e net of insurance clai/s decreased 9% to £3,664/ and profit before tax decreased 6% to £984/. Based on ...

  • Page 235
    ... the closing 2015 exchange rate for the balance sheet to eli/inate the i/pact of /ove/ent in exchange rates between the two periods. b Average LTV of /ortgage portfolio and new /ortgage lending calculated on the balance weighted basis. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 233

  • Page 236
    ... to 2013 Profit before tax decreased 32% to £1,377/. The Invest/ent Bank continues to /ake progress on its origination-led strategy, building on leading positions in its ho/e /arkets of the UK and US, while driving cost savings and RWA efficiencies. The business is focused on a si/pler product set...

  • Page 237
    ...)) and loans and advances to banks of £17.4bn (2014: £19.9bn) (including settle/ent balances of £1.6bn (2014: £2.7bn) and cash collateral of £5.7bn (2014: £6.9bn)). b During 2015, new reverse repurchase agree/ents and other si/ilar secured lending in certain businesses have been designated at...

  • Page 238
    Financial review Analysis of results by business Head Office 2015 compdred to 2014 The loss before tax of £402/ (2014: profit of £97/) was pri/arily due to the net expense fro/ Treasury operations and costs relating to the i/ple/entation of the structural refor/ progra//e. Net operating inco/e ...

  • Page 239
    ... to £7.2bn pri/arily driven by the sale of the Spanish business, the active rundown of legacy structured and credit products, and derivative trade unwinds. Risk review Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 237

  • Page 240
    .../ents designated at fair value of £1.4bn (2014: £1.0bn). d Return on average equity and average tangible equity for Barclays Non-Core represents its i/pact on the Group. This does not represent the return on average tangible equity of the Non-Core business. 238 I Barclays PLC Annual Report 2015 ho...

  • Page 241
    ... The Strategic Report Governance Return on dverdge tdngible equity 2015 % 2014 % 2013c % Personal and Corporate Banking Barclaycard Africa Banking Invest/ent Bank Bdrcldys Core operdting businesses Head Office i/pacta Bdrcldys Core Barclays Non-Core i/pacta Bdrcldys Group ddjusted totdl Return on...

  • Page 242
    Financial review Analysis of results by business Returns dnd equity by business - continued Averdge dllocdted tdngible equity 2015 £bn 2014 £bn 2013 £bn Personal and Corporate Banking Barclaycard Africa Banking Invest/ent Bank Head Officea Bdrcldys Core Barclays Non-Core Bdrcldys Group ddjusted...

  • Page 243
    ...Year ended 31 Dece/ber 2014 Average Net interest Net interest custo/er inco/e assets /argin % £/ £/ Personal and Corporate Banking Barclaycard Africa Banking Totdl Persondl dnd Corpordte Bdnking, Bdrcldycdrd dnd Africd Bdnking Invest/ent Bank Head Office Bdrcldys Core Barclays Non-Core Group net...

  • Page 244
    242 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 245
    ... based payments Pensions and post retirement benefits Principal subsidiaries Structured entities Investments in associates and joint ventures Securitisations Assets pledged Related party transactions and Directors' remuneration Auditors' remuneration Financial risks, liquidity and capital management...

  • Page 246
    .../ents set out under CRD IV and issued the Capital Require/ents Country by Country Reporting Regulations 2013. The legislation requires Barclays PLC to publish additional infor/ation in respect of the year ended 31 Dece/ber 2015. This infor/ation is available on the Barclays website: ho/e.barclays...

  • Page 247
    ... indicator that the Directors focus on. We planned and scoped our audit for 2015 reï¬,ecting the Group's /ove to a /ore legal entity focused reporting structure. As a result we defined the Barclays Bank PLC, Barclays Capital Inc., Barclays Africa Group Li/ited and Barclays Capital Securities Li/ited...

  • Page 248
    ... considered to be significant financial state/ent reporting issues is set out on pages 44 to 46. We have gained an understanding, evaluated the design and tested the operating effectiveness of the controls in each process below. The table sets out further work perfor/ed to address the areas of focus...

  • Page 249
    ... the design and operating effectiveness of the Group's key controls supporting the identification, /easure/ent and oversight of valuation risk of financial instru/ents. We exa/ined the Group's independent price verification processes, /odel validation and approval processes, controls over data feeds...

  • Page 250
    ... of provisions is highly judge/ental and key assu/ptions are difficult to forecast, such as co/plaint volu/es. In particular we focused on the £2.2bn provision for Pay/ent Protection Insurance ('PPI'). Barclays have developed a calculation /ethodology which is used to provide data for tracking PPI...

  • Page 251
    ... the defined retire/ent benefit liability Provisions for UK custo/er redress Provisions for ongoing investigations and litigation including Foreign Exchange Losses on sale relating to the Spanish, Portuguese and Italian businesses. Risk review â- â- Barclays Bank PLC Barclays Africa Group Ltd...

  • Page 252
    ... one year fro/ the date the financial state/ents were signed. In drawing this conclusion, the Directors have considered the regulatory capital position of the Group as well as the funding and liquidity position of the Group. As part of our audit we have concluded that the Directors' use of the going...

  • Page 253
    ... of the Corporate Governance State/ent relating to ten further provisions of the UK Corporate Governance Code. We have nothing to report having perfor/ed our review. Responsibilities for the findncidl stdtements dnd the dudit Our responsibilities dnd those of the Directors As explained /ore fully...

  • Page 254
    ...the financial position of Barclays PLC and its subsidiaries at 31 Dece/ber 2015 and 31 Dece/ber 2014, and the results of their operations and their cash ï¬,ows for each of the three years in the period ended 31 Dece/ber 2015 in confor/ity with International Financial Reporting Standards as issued by...

  • Page 255
    ... of £345/ (2014: £250/) is offset by a tax credit recorded in reserves of £70/ (2014: £54/). The net a/ount of £275/ (2014: £196/), along with NCI, is deducted fro/ profit after tax in order to calculate earnings per share. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 253

  • Page 256
    ... the yedr ended 31 December Profit dfter tdx Other comprehensive (loss)/income from continuing operdtions: Currency trdnsldtion reserve Currency translation differences Avdildble for sdle reserve Net gains/(losses) fro/ changes in fair value Net gains transferred to net profit on disposal Net losses...

  • Page 257
    ... The Strategic Report As dt 31 December Assets Cash and balances at central banks Ite/s in the course of collection fro/ other banks Trading portfolio assets Financial assets designated at fair value Derivative financial instru/ents Available for sale invest/ents Loans and advances to banks Loans...

  • Page 258
    ... Dividends paid Other reserve /ove/ents Bdldnce ds dt 31 December 2015 Bdldnce ds dt 1 Jdnudry 2014 Profit after tax Currency translation /ove/ents Available for sale invest/ents Cash ï¬,ow hedges Pension re/easure/ent Other Totdl comprehensive income for the yedr Issue of new ordinary shares Issue...

  • Page 259
    ... 644 164 81,754 Risk review Financial review Financial statements Interest received was £20,376/ (2014: £21,372/, 2013: £23,387/) and interest paid was £7,534/ (2014: £8,566/, 2013: £10,709/). The Group is required to /aintain balances with central banks and other regulatory authorities and...

  • Page 260
    ... 259 and the acco/panying note on page 340 were approved by the Board of Directors on 29 February 2016 and signed on its behalf by: John McFdrldne Group Chair/an Jes Stdley Group Chief Executive Tushdr Morzdrid Group Finance Director 258 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 261
    ... principal activity is to hold the invest/ent in its wholly-owned subsidiary, Barclays Bank PLC. Dividends received are treated as operating inco/e. The Co/pany was not exposed at 31 Dece/ber 2015 or 2014 to significant risks arising fro/ the financial instru/ents it holds, which co/prised loans and...

  • Page 262
    ... policies 1. Reporting entity These financial state/ents are prepared for Barclays PLC and its subsidiaries (the Barclays PLC Group or the Group) under Section 399 of the Co/panies Act 2006. The Group is a /ajor global financial services provider engaged in retail banking, credit cards, wholesale...

  • Page 263
    ...interpretations that resulted in a change in accounting policy. Future dccounting developments There have been, and are expected to be, a nu/ber of significant changes to the Group's financial reporting after 2015 as a result of a/ended or new accounting standards that have been or will be issued by...

  • Page 264
    ... finance leases on the balance sheet. The expected effective date is 1 January 2019. The standard has not yet been endorsed by the EU. Insurdnce contrdcts The IASB also plans to issue a new standard on insurance contracts. The Group is in the process of considering the financial i/pacts of the new...

  • Page 265
    ... types (both assets and liabilities), in the nor/al course of business there are no individual esti/ates that are /aterial to the results or financial position. 2015 £m 2014 £/ 2013 £/ Cash and balances with central banks Available for sale invest/ents Loans and advances to banks Loans and...

  • Page 266
    ...exchange rates, equity prices and other /arket variables. Own credit gains/losses arise fro/ the fair valuation of financial liabilities designated at fair value through profit and loss. See Note 17 Financial liabilities designated at fair value. 2015 £m 2014 £/ 2013 £/ Trading inco/e Own credit...

  • Page 267
    ... when the right to receive the dividend has been established. Other accounting policies relating to net invest/ent inco/e are set out in Note 16 Available for sale financial assets and Note 14 Financial assets designated at fair value. 2015 £m 2014 £/ 2013 £/ The Strategic Report Net gain fro...

  • Page 268
    ... wholesale portfolios is £289/ (2014: £360/; 2013: £901/) and a/ounts to 14% (2014: 16%; 2013: 29%) of the total i/pair/ent charge on loans and advances. Further infor/ation on i/pair/ent allowances and related credit infor/ation is set out within the Risk review. 2015 £m 2014 £/ 2013 £/ New...

  • Page 269
    ... that will be granted in March 2016, as they are dependent upon future perfor/ance rather than perfor/ance during 2015. The accounting policies for share based pay/ents, and pensions and other post retire/ent benefits are included in Note 34 and Note 35 respectively. 2015 £m 2014 £/ 2013 £/ The...

  • Page 270
    ...21/ (2014: £42/ charge) principally relating to share based pay/ents. The table below shows the reconciliation between the actual tax charge and the tax charge that would result fro/ applying the standard UK corporation tax rate to the Group's profit before tax. 2015 £m 2015 % 2014 £/ 2014 % 2013...

  • Page 271
    ... 2015 £m 2014 £/ Barclays Group US Inc (BGUS) - US tax group Barclays Bank PLC (US Branch) - US tax group Barclays PLC - UK tax group Other Deferred tdx dsset Deferred tdx lidbility Net deferred tdx 1,903 1,569 411 612 4,495 (122) 4,373 1,588 1,591 461 490 4,130 (262) 3,868 Risk review...

  • Page 272
    ...the Group's financial position. Deferred tax assets have been recognised based on business profit forecasts. Further detail on the recognition of deferred tax assets is provided in the deferred tax assets and liabilities section of this tax note. 270 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 273
    ...the year ending 31 Dece/ber 2016. The 2015 financial state/ents include the 2015 interi/ dividends of £503/ (2014: £493/) and final dividend declared in relation to 2014 of £578/ (2014: £564/). Financial review Financial statements Shareholder information Note a Potential ordinary shares shall...

  • Page 274
    ... 18 Note a During 2015, new reverse repurchase agree/ents and other si/ilar secured lending in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. 272 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 275
    ... retail price indices related to non-trading positions. Where derivatives are held for risk /anage/ent purposes, and when transactions /eet the required criteria for docu/entation and hedge effectiveness, the Group applies fair value hedge accounting, cash ï¬,ow hedge accounting, or hedging of a net...

  • Page 276
    ...ents held for trading are set out in the following table: Derivdtives held for trdding 2015 Notiondl contrdct dmount £m Fdir vdlue Assets £m Lidbilities £m Notional contract a/ount £/ 2014 Fair value Assets £/ Liabilities £/ Foreign exchdnge derivdtives Forward foreign exchange Currency swaps...

  • Page 277
    ... gain (2014: £778/ gain) to interest expense; a £4/ loss (2014: £15/ loss) to net trading inco/e; a £17/ gain (2014: nil) to ad/inistration and general expenses; and a £69/ loss (2014: £78/ loss) to taxation. Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015...

  • Page 278
    ... 57,769 Note a During 2015, new repurchase agree/ents and other si/ilar secured borrowing in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. 276 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 279
    ... prices, option volatilities and currency rates. The Strategic Report Governance For financial liabilities /easured at fair value, the carrying a/ount reï¬,ects the effect on fair value of changes in own credit spreads derived fro/ observable /arket data, such as spreads on Barclays issued bonds...

  • Page 280
    ...(13,115) (554,531) Notes a During 2015, new reverse repurchase agree/ents and other si/ilar secured lending and repurchase agree/ents and other si/ilar secured borrowing in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and...

  • Page 281
    ...fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. c Other includes non-current assets and liabilities held for sale, private equity invest/ents, asset backed loans and invest/ent property. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 279

  • Page 282
    ... derivative financial liabilities are £4,769/ (2014: £4,320/). c A partially offsetting /arket gain of £172/ (2014: £2,921/ loss) has been recognised on the Level 2 derivative instru/ents that hedge the ESHLA loan portfolio interest rate risk. 280 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 283
    ... losses Other recognised Trading Issues Settle/ents in OCI inco/e inco/e Transfers In £/ Out £/ As at 31 Dece/ber 2014 £/ The Strategic Report Sales £/ Govern/ent and govern/ent sponsored debt Corporate debt Asset backed securities Non-asset backed loans Funds and fund linked products Other...

  • Page 284
    ...: Sensitivity relating to unobservable valuation inputs is based on the dispersion of consensus data services where available, otherwise stress scenarios or historic data are used. Notes a Other consists of invest/ent properties. 282 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 285
    ... fro/ broker data, third party vendors or priced to proxies. Where credit spreads are unobservable, they are deter/ined with reference to recent transactions or proxied fro/ bond spreads on observable trades of the sa/e issuer or other si/ilar entities. Synthetic CDOs are valued using a /odel that...

  • Page 286
    .../position (historical losses, borrower characteristics and loan attributes such as loan to value ratio and geographic concentration) and credit ratings (original and current). Observability: Where an asset backed product does not have an observable /arket price, and the valuation is deter/ined using...

  • Page 287
    ...retail, hotel, office, /ulti-fa/ily and industrial properties. Valuation: Perfor/ing loans are valued using discounted cash ï¬,ow analysis which considers the characteristics of the loan such as property type, geographic location, credit quality and property perfor/ance reviews in order to deter/ine...

  • Page 288
    ... exposure to /onoline insurers. b Other includes non-current assets and liabilities held for sale, which are /easured at fair value on a non-recurring basis, invest/ent property, private equity invest/ents and asset backed loans. 286 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 289
    ... range of significant unobservable credit spreads is between 69-1,175bps. c Credit derivatives includes derivative exposure to /onoline insurers. d Other includes private equity invest/ents, asset backed loans and invest/ent property. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 287

  • Page 290
    ...a forward in isolation will result in a /ove/ent in fair value that is favourable for the contracted receiver of the underlying (currency, bond, co//odity, etc), but the sensitivity is dependent on the specific ter/s of the instru/ent. 288 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 291
    ... yield in isolation will result in a /ove/ent in fair value that is unfavourable for the holder of a cash instru/ent. Fdir vdlue ddjustments Key balance sheet valuation adjust/ents are quantified below: The Strategic Report Governance Risk review 2015 £m 2014 £/ Bid-offer valuation adjust/ents...

  • Page 292
    ... or to transfer a net short position, i.e. a liability, for a particular risk exposure in an orderly transaction between /arket participants at the balance sheet date under current /arket conditions. Accordingly, the Group /easures the fair value of the group of financial assets and liabilities...

  • Page 293
    ... si/ilar secured lending and repurchase agree/ents and other si/ilar secured borrowing in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 291

  • Page 294
    ... balances are generally short dated. Subordivated liabilities Fair values for dated and undated convertible and non-convertible loan capital are based on quoted /arket rates for the issue concerned or issues with si/ilar ter/s and conditions. 292 I Barclays PLC Annual Report 2015 ho/e.barclays...

  • Page 295
    ... repurchase agree/ents, other si/ilar secured lending and borrowing in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 293 Shareholder information

  • Page 296
    ... legally transferred and can be liquidated in the event of counterparty default. These offsetting and collateral arrange/ents and other credit risk /itigation strategies used by the Group are further explained in the Credit risk /itigation section on page 133. 294 I Barclays PLC Annual Report 2015...

  • Page 297
    ... to trade in financial assets, it /ay transfer the/ out of the held for trading classification and /easure the/ at a/ortised cost if they /eet the definition of a loan. The initial value used for the purposes of establishing a/ortised cost is fair value on the date of the transfer. 2015 £m 2014...

  • Page 298
    ... other si/ilar secured lending and borrowing in certain businesses have been designated at fair value to better align to the way the business /anages the portfolio's risk and perfor/ance (see Notes 14 and 17 for further detail). 296 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 299
    ... fair value at each balance sheet date, reï¬,ecting /arket conditions at the reporting date. Gains and losses on re/easure/ent are included in the inco/e state/ent. Investment property £m Ledsed dssets £m Property £m Equipment £m Totdl £m Financial review Cost As dt 1 Jdnudry 2015 Additions...

  • Page 300
    ... /ove/ents As dt 31 December 2015 Accumuldted dmortisdtion dnd impdirment As dt 1 Jdnudry 2015 Disposals A/ortisation charge I/pair/ent charge Exchange and other /ove/ents As dt 31 December 2015 Net book vdlue 2014 Cost As dt 1 Jdnudry 2014 Additions and disposals Exchange and other /ove/ents As dt...

  • Page 301
    ... seg/ents as follows: 2015 £m 2014 £/ The Strategic Report Personal and Corporate Banking Africa Banking Barclaycard Barclays Non-Core Totdl net book vdlue of goodwill 3,472 725 408 - 4,605 3,471 915 427 74 4,887 Governance Goodwill Testing goodwill for i/pair/ent involves a significant...

  • Page 302
    ... one year Over one year but not /ore than five years Over five years Totdl 376 1,127 1,874 3,377 1 11 - 12 403 1,147 2,036 3,586 41 106 - 147 Total future /ini/u/ sublease pay/ents to be received under non-cancellable subleases were £1/ (2014: £99/). 300 I Barclays PLC Annual Report 2015 ho...

  • Page 303
    ... costs where an obligation exists. Additions /ade during the year relate to for/al restructuring plans and have either been utilised, or reversed, where total costs are now expected to be lower than the original provision a/ount. ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 301

  • Page 304
    ... making redress payments to customers, clients and counterparties for losses or damages associated with inappropriate judgement in the execution of our business activities. Provisions for other customer redress include £282m (2014: nil) in respect of Packaged Bank Accounts and £290m (2014: nil) in...

  • Page 305
    ... business designation of reverse repurchase and repurchase agree/ents at fair value through profit and loss, new forward starting reverse repurchase agree/ents are within the scope of IAS 39 and are recognised as derivatives on the balance sheet. ho/e.barclays/annualreport Barclays PLC Annual Report...

  • Page 306
    ... upon the Group's operating results, cash ï¬,ows or financial position in any particular period. Alterndtive Trdding Systems dnd High-Frequency Trdding The SEC, the New York State Attorney General (NYAG), the FCA and regulators in certain other jurisdictions have been investigating a range of issues...

  • Page 307
    .... In addition, BBPLC was granted conditional leniency fro/ the DOJ Antitrust Division (DOJ-AD) in connection with potential US antitrust law violations with respect to financial instru/ents that reference EURIBOR. The Strategic Report Governance Risk review Financial review Financial statements...

  • Page 308
    ...counter transactions (OTC Class); (ii) purchased USD LIBOR-linked financial instru/ents on an exchange (Exchange-Based Class); (iii) purchased USD LIBOR-linked debt securities (Debt Securities Class); (iv) purchased adjustable rate /ortgages linked to USD LIBOR (Ho/eowner Class); or (v) issued loans...

  • Page 309
    ... for the Ninth Circuit. The Strategic Report Governance Risk review Financial review Japavese Yev LIBOR Case iv SDNY A class action was co//enced in April 2012 in the SDNY against BBPLC and other Japanese Yen LIBOR panel banks by a plaintiff involved in exchange-traded derivatives. The co/plaint...

  • Page 310
    ... of issues associated with Foreign Exchange sales and trading, including electronic trading. Certain of these investigations involve /ultiple /arket participants in various countries. The Group has reached settle/ents with the CFTC, the DOJ, the New York State Depart/ent of Financial Services (NYDFS...

  • Page 311
    ... 2013, a nu/ber of civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs alleging /anipulation of Foreign Exchange /arkets under the US Sher/an Antitrust Act and New York state law and na/ing several international banks as defendants, including BBPLC. In February 2014...

  • Page 312
    ... co//ercial /ortgage-backed securities (CMBS), and such trading activity continues today. In connection with its loan sales and certain private-label securitisations, on 31 Dece/ber 2015, the Group had unresolved repurchase requests relating to loans with a principal balance of approxi/ately $2.3bn...

  • Page 313
    ...related business, including issuance and underwriting practices in pri/ary offerings of RMBS and trading practices in the secondary /arket for both RMBS and CMBS. The Group continues to respond to requests relating to the RMBS Working Group of the Financial Fraud Enforce/ent Task Force (RMBS Working...

  • Page 314
    ... /akers for certain types of derivatives and Tradeweb conspired to prevent the develop/ent of exchanges for interest rate swaps (IRS) and de/ands unspecified /oney da/ages, treble da/ages and legal fees. The plaintiff clai/s to represent a class of buy-side investors that transacted in fixed-for...

  • Page 315
    ... Bank Li/ited, a subsidiary of Barclays Africa Group Li/ited, has identified potentially fraudulent activity by certain of its custo/ers using i/port advance pay/ents to effect foreign exchange transfers fro/ South Africa to beneficiary accounts located in Asia, UK, Europe and the US. As a result...

  • Page 316
    ... None of the Group's loan capital is secured. Unddted subordindted lidbilities 5,248 16,219 21,467 5,640 15,513 21,153 Initial call date Subordinated liabilities per balance sheet 2015 2014 £m £/ Bdrcldys Bdnk PLC issued Tier One Notes (TONs) 6% Callable Perpetual Core Tier One Notes 6.86...

  • Page 317
    .../e, or on an interest pay/ent date. There are no events of default except non-pay/ent of principal or /andatory interest. Any repay/ents require the prior approval of the PRA. The Strategic Report Governance Risk review Financial review Financial statements Other All issues of undated subordinated...

  • Page 318
    ... to the financial statements Capital instruments, equity and reserves 30 Subordindted lidbilities continued Ddted subordindted lidbilities Initidl cdll ddte Mdturity ddte Subordindted lidbilities per bdldnce sheet 2015 2014 £m £/ Bdrcldys PLC issued 2.625% Fixed Rate Subordinated Callable Notes...

  • Page 319
    ... their entire invest/ent in the notes in the event the Barclays PLC consolidated CRD IV CET1 ratio (FSA October 2012 transitional state/ent) falls below 7.0%. Risk review Financial review Financial statements Shareholder information ho/e.barclays/annualreport Barclays PLC Annual Report 2015 I 317

  • Page 320
    ... require the prior consent of the PRA. â- â- â- â- â- â- All AT1 securities will be converted into ordinary shares of Barclays PLC, at a pre-deter/ined price, should the fully loaded CET1 ratio of Barclays PLC fall below 7.0%. 318 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 321
    ... £m £/ Equity dttributdble to non-controlling interest 2015 2014 £m £/ Dividends pdid to non-controlling interest 2015 2014 £m £/ Financial statements Barclays Bank PLC issued: - Preference shares - Upper Tier 2 instru/ents Barclays Africa Group Li/ited Other non-controlling interests Totdl...

  • Page 322
    ... shares until a dividend is next paid on these instru/ents or the instru/ents are redee/ed or purchased by Barclays Bank PLC. There are no restrictions on Barclays Bank PLC's ability to re/it capital to the Parent as a result of these issued instru/ents. 320 I Barclays PLC Annual Report 2015...

  • Page 323
    ...are any other non-vesting conditions - such as continuing to /ake pay/ents into a share based savings sche/e. Governance Risk review The charge for the year arising fro/ share based pay/ent sche/es was as follows: Chdrge for the yedr 2015 2014 £m £/ 2013 £/ Share Value Plan Others Total equity...

  • Page 324
    ... share based pay/ent sche/es. The total nu/ber of Barclays shares held in these e/ployee benefit trusts at 31 Dece/ber 2015 was 5.1 /illion (2014: 5.2 /illion). Dividend rights have been waived on all these shares. The total /arket value of the shares held in trust based on the year end share price...

  • Page 325
    ...environ/ents. Financial statements Governdnce The UKRF operates under trust law and is /anaged and ad/inistered on behalf of the /e/bers in accordance with the ter/s of the Trust Deed and Rules and all relevant legislation. The Corporate Trustee is Barclays Pension Funds Trustees Li/ited, a private...

  • Page 326
    Notes to the financial statements Employee benefits 35 Pensions dnd post retirement benefits continued Income stdtement chdrge 2015 £m 2014 £/ 2013 £/ Current service cost Net finance cost Past service cost Settle/ents Totdl 303 42 (434) 1 (88) 324 78 (5) (15) 382 371 55 4 (3) 427 Past ...

  • Page 327
    ... in key dssumptions 2015 Impdct on UKRF defined benefit obligdtion (Decredse)/ (Decredse)/ Incredse Incredse £bn % 2014 I/pact on UKRF defined benefit obligation (Decrease)/ (Decrease)/ Increase Increase £bn % Risk review 0.5% increase in discount rate 0.5% increase in assu/ed price inï¬,ation...

  • Page 328
    ... in 2017 depending on the deficit level at that ti/e. These deficit contributions are in addition to the regular contributions to /eet the Group's share of the cost of benefits accruing over each year. In non-valuation years, the Sche/e Actuary prepares an annual update of the funding position. The...

  • Page 329
    .../ited Barclays Private Clients International Li/ited Barclays Securities Japan Li/ited Barclays Africa Group Li/ited Barclays Capital Inc Barclays Bank Delaware England England Isle of Man Japan South Africa United States United States Banking, holding co/pany Securities dealing Banking Securities...

  • Page 330
    ...£4,369/ (2014: £4,448/). Barclays Africa Group Li/ited assets are subject to exchange control regulation deter/ined by the South African Reserve Bank (SARB). Special dividends and loans in lieu of dividends cannot be transferred without SARB approval. 37 Structured entities A structured entity is...

  • Page 331
    ...review Totdl £m As dt December 2015 Assets Trading portfolio assets Financial assets designated at fair value Derivative financial instru/ents Available for sale invest/ents Loans and advances to banks Loans and advances to custo/ers Reverse repurchase agree/ents and other si/ilar secured lending...

  • Page 332
    ... structured evtities The Group's interests in structured entities not held for the purposes of short-ter/ trading activities are set out below, su//arised by the purpose of the entities and li/ited to significant categories, based on /axi/u/ exposure to loss. 330 I Barclays PLC Annual Report 2015...

  • Page 333
    ... of interest Structured Multi-seller credit conduit portfolio progrdmmes £m £m Lending £m Mortgdgebdcked securities £m Investment funds dnd trusts £m Others £m Totdl £m The Strategic Report As dt December 2015 Trdding portfolio dssets - Debt securities - Equity securities Findncidl dssets...

  • Page 334
    ... statements Scope o onsolidation 37 Structured entities continued As at 31 Dece/ber 2015 the Group's funded exposures co/prised £1,545/ (2014: £3,591/) debt securities at fair value and £1,599/ (2014: £3,390/) a/ortised cost loans and advances. Of the £3,681/ (2014: £6,981/), £2,783/ (2014...

  • Page 335
    ...the net inco/e of the investees, not just the Group's share for the year ended 31 Dece/ber 2015, with the exception of certain undertakings for which the a/ounts are based on accounts /ade up to dates not earlier than three /onths before the balance sheet date. Risk review Associdtes 2015 £m 2014...

  • Page 336
    ... loans, business loans and credit card balances. In these transactions, the assets, interests in the assets, or beneficial interests in the cash ï¬,ows arising fro/ the assets, are transferred to a special purpose entity, which then issues interest bearing debt securities to third party investors...

  • Page 337
    ... collateral held. The fair value at the balance sheet date of collateral accepted and re-pledged to others was as follows: 2015 £m 2014 £/ Financial statements Fair value of securities accepted as collateral Of which fair value of securities re-pledged/transferred to others The full disclosure...

  • Page 338
    ... Directors of Barclays PLC and the Officers of the Group, certain direct reports of the Group Chief Executive and the heads of /ajor business units and functions. There were no /aterial related party transactions with entities under co//on directorship where a Director or other /e/ber of Key Manage...

  • Page 339
    ... of Directors and other Key Manage/ent Personnel. Risk review Financial review 2015 £m 2014 £/ Salaries and other short-ter/ benefits Pension costs Other long-ter/ benefits Share-based pay/ents E/ployer social security charges on e/olu/ents Costs recognised for dccounting purposes E/ployer...

  • Page 340
    ... share capital outstanding). At 31 Dece/ber 2015, executive Directors and officers of Barclays PLC (involving 32 persons) held options to purchase a total of 17,206 (2014: 30,398) Barclays PLC ordinary shares of 25p each at prices ranging fro/ 133.01p to 178p under Sharesave. Advdnces dnd credit...

  • Page 341
    ...The disposal group includes all assets and liabilities of Barclays Vida Y Pensiones (BVP), a co/pany offering life insurance, pension products and services in Spain, Portugal and Italy. BVP was classified as held for sale in the first half of 2015 and is expected to be sold in the first half of 2016...

  • Page 342
    ... of private MTN included within the debt securities in issue balance of £6,224/ (2014: £2,056/). The proceeds raised through these transactions were used to invest in Barclays Bank PLC Notes in each case with a ranking corresponding to the notes issued by Barclays PLC and included within the loans...

  • Page 343
    ...ited Barclaycard Funding PLC Barclays (Security Realisation) Li/ited Barclays Africa Group Holdings Li/ited Barclays Aldersgate Invest/ents Li/ited Barclays Asset Manage/ent Li/ited Barclays Bank PLC Barclays Bank Trust Co/pany Li/ited Barclays Bayard Invest/ents Trust Barclays BCL FI Trust Barclays...

  • Page 344
    ... Li/ited FIRSTPLUS Financial Group PLC Fitzroy Finance Li/ited Foltus Invest/ents Li/ited Gerrard (OMH) Li/ited Gerrard Financial Planning Li/ited Gerrard Invest/ent Manage/ent Li/ited Gerrard Manage/ent Services Li/ited Gerrard No/inees Li/ited Global Dynasty Natural Resource Private Equity Li/ited...

  • Page 345
    ... No.2 Li/ited Barclays Private Clients International Li/ited Barclays Trust Co/pany (Isle of Man) Li/ited (Sold 14/01/2016) Barclays Wealth Corporate Officers (Isle of Man) Li/ited (Sold 14/01/2016) Barclays Wealth Corporate Services (IOM) Li/ited (Sold 14/01/2016) Barclays Wealth Directors (Isle of...

  • Page 346
    ... Inc. Barclays Financial LLC Barclays Group US Inc. Barclays Insurance U.S. Inc. Barclays Invest/ent Holdings Inc. Barclays Oversight Manage/ent Inc. Barclays Receivables LLC Barclays Services Corporation Barclays Services LLC Barclays US CCP Funding LLC Barclays US Funding LLC Barclays US GPF...

  • Page 347
    .... Other related undertakings United Kingdom Barclays Africa Li/ited Barclays Al/a Mater Manage/ent Li/ited Partnership Barclays Covered Bond Funding LLP Barclays Infrastructure Investors Manage/ent LP BEIF Manage/ent Li/ited Partnership BMC (UK) Li/ited Business Growth Fund PLC Ca/perdown UK Li/ited...

  • Page 348
    ... Absa Asset Manage/ent Proprietary Li/ited Absa Bank Li/ited Absa Capital Securities Proprietary Li/ited Absa Consultants and Actuaries Proprietary Li/ited Absa Develop/ent Co/pany Holdings Proprietary Li/ited Absa Estate Agency Proprietary Li/ited Absa Financial Services Africa Holdings Proprietary...

  • Page 349
    ...JV partner directors and three non-JV partner directors. The Board are responsible for setting the co/pany strategy and budgets. Financial review Notes A Directly held by Barclays PLC B Partnership Interest C Me/bership Interest D Trust Interest E Guarantor F Preference Shares G A Preference Shares...

  • Page 350
    348 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 351
    .../ation Contents The Strategic Report Resources for shdreholders including contdct detdils for shdreholder enquiries Page Shdreholder informdtion Your Barclays shareholding Useful contact details 350 351 Governance Risk review Financial review Financial statements Shareholder information ho...

  • Page 352
    Your Barclays shareholding Shareholder infor/ation Key ddtes 5 April 2016 Final dividend pay/ent date Dividends We have declared a final dividend of 3.5 pence per share, /aking 6.5 pence in total for 2015. However, we intend to pay a dividend of 3.0 pence for both 2016 and 2017. This will help us ...

  • Page 353
    ... Step 3 Go to shdreview.co.uk Register for electronic co//unications by following the instructions on screen You will be sent an activation code in the post the next working day Financial review Shdreholder security Shareholders should be wary of any cold calls with an offer to buy or sell shares...

  • Page 354
    352 I Barclays PLC Annual Report 2015 ho/e.barclays/annualreport

  • Page 355

  • Page 356
    ... e/ployees receive their salary in a dopay account, which co/es with a debit card. E/ployees can also /anage their 'day-to-day' finances with the dopay app, which gives the/ instant and real-ti/e access to their balance. Dopay participated in the London 2014 Barclays Accelerator Progra//e. Featured...