Barclays 2015 Annual Report Download - page 185

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Capital resources
The CRR and Capital Requirements Directive (CRD) implemented Basel III within the EU (collectively known as CRD IV) on 1 January 2014. The rules
are supplemented by Regulatory Technical Standards and the PRA’s rulebook, including the implementation of transitional rules. However, rules and
guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA
and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays’ interpretation of the current rules.
Key capital ratios
As at 31 December 2015 2014
Fully Loaded CET1 11.4% 10.3%
PRA Transitional CET1a11.4% 10.2%
PRA Transitional Tier 1b,c 14.7% 13.0%
PRA Transitional Total Capitalb,c 18.6% 16.5%
Capital resources (audited)
As at 31 December 2015
£m
2014
£m
Shareholders’ equity (excluding non-controlling interests) per the balance sheet 59,810 59,567
Less: other equity instruments (recognised as AT1 capital) (5,305) (4,322)
Adjustment to retained earnings for foreseeable dividends (631) (615)
Minority interests (amount allowed in consolidated CET1) 950 1,227
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,602) (2,199)
Goodwill and intangible assets (8,234) (8,127)
Deferred tax assets that rely on future profitability excluding temporary differences (855) (1,080)
Fair value reserves related to gains or losses on cash flow hedges (1,231) (1,814)
Excess of expected losses over impairment (1,365) (1,772)
Gains or losses on liabilities at fair value resulting from own credit 127 658
Defined benefit pension fund assets (689) –
Direct and indirect holdings by an institution of own CET1 instruments (57) (25)
Other regulatory adjustments (177) (45)
Fully loaded CET1 capital 40,741 41,453
Regulatory adjustments relating to unrealised gains – (583)
PRA transitional CET1 capital 40,741 40,870
Additional Tier 1 (AT1) capital
Capital instruments and the related share premium accounts 5,305 4,322
Qualifying AT1 capital (including minority interests) issued by subsidiaries 6,718 6,870
Other regulatory adjustments and deductions (130) –
Transitional AT1 capitald 11,893 11,192
PRA transitional Tier 1 capital 52,634 52,062
Tier 2 capital
Capital instruments and the related share premium accounts 1,757 800
Qualifying Tier 2 capital (including minority interests) issued by subsidiaries 12,389 13,529
Other regulatory adjustments and deductions (253) (48)
PRA transitional total regulatory capital 66,527 66,343
Notes
a The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays’ Tier 2 Contingent Capital Notes was 13.1% based on £46.8bn of transitional CRD IV CET1
capital and £358bn RWAs.
b The PRA transitional capital is based on the PRA Rulebook and accompanying supervisory statements.
c As at 31 December 2015, Barclays’ fully loaded Tier 1 capital was £46,173m, and the fully loaded Tier 1 ratio was 12.9%. Fully loaded total regulatory capital was £62,103m and the
fully loaded total capital ratio was 17.3%. The fully loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and
assessing compliance of AT1 and Tier 2 instruments against the relevant criteria in CRD IV.
d Of the £11.9bn transitional AT1 capital, fully loaded AT1 capital used for the leverage ratio comprises the £5.3bn capital instruments and related share premium accounts, £0.3bn
qualifying minority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instruments issued by subsidiaries that are subject to grandfathering.
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