Barclays 2015 Annual Report Download - page 175

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Balance sheet view of trading and banking books
As defined by the regulatory rules, a trading book consists of positions held for trading intent or to hedge elements of the trading book. Trading
intent must be evidenced in the basis of the strategies, policies and procedures set up by the firm to manage the position or portfolio. The table
below provides a Group-wide overview of where assets and liabilities on the Group’s balance sheet are managed within regulatory traded and
non-traded books.
The balance sheet split by trading book and banking books is shown on an IFRS scope of consolidation. The reconciliation between the accounting
and regulatory scope of consolidation is shown in table 1 of the Barclays PLC 2015 Pillar 3 Report. The reconciling items are all part of the banking book.
Balance sheet split by trading and banking books
As at 31 December 2015
Banking
booka
£m
Trading
book
£m
Total
£m
Cash and balances at central banks 49,711 – 49,711
Items in course of collection from other banks 1,011 – 1,011
Trading portfolio assets 3,355 73,993 77,348
Financial assets designated at fair value 25,263 51,567 76,830
Derivative financial instruments 296 327,413 327,709
Available for sale financial investments 90,267 – 90,267
Loans and advances to banks 39,779 1,570 41,349
Loans and advances to customers 380,406 18,811 399,217
Reverse repurchase agreements and other similar secured lending 28,187 – 28,187
Prepayments, accrued income and other assets 3,010 – 3,010
Investments in associates and joint ventures 573 – 573
Property, plant and equipment 3,468 – 3,468
Goodwill and intangible assets 8,222 – 8,222
Current tax assets 415 – 415
Deferred tax assets 4,495 – 4,495
Retirement benefit assets 836 – 836
Non-current assets classified as held for disposal 7,364 – 7,364
Total assets 646,658 473,354 1,120,012
Deposits from banks 45,344 1,736 47,080
Items in course of collection due to other banks 1,013 – 1,013
Customer accounts 401,927 16,315 418,242
Repurchase agreements and other similar secured borrowing 25,035 – 25,035
Trading portfolio liabilities – 33,967 33,967
Financial liabilities designated at fair value 7,027 84,718 91,745
Derivative financial instruments 1,699 322,553 324,252
Debt securities in issue 69,150 – 69,150
Subordinated liabilities 21,467 – 21,467
Accruals, deferred income and other liabilities 10,610 – 10,610
Provisions 4,142 – 4,142
Current tax liabilities 903 – 903
Deferred tax liabilities 122 – 122
Retirement benefit liabilities 423 – 423
Liabilities included in disposal groups classified as held for sale 5,997 – 5,997
Total liabilities 594,859 459,289 1,054,148
Included within the trading book are assets and liabilities which are included in the market risk regulatory measures. For more information on these
measures (VaR, SVaR, IRC and APR) see the risk management section on page 128 in Barclays PLC 2015 Pillar 3 Report.
Note
a The primary risk factors for banking book assets and liabilities are interest rates and, to a lesser extent, foreign 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).
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