Barclays 2015 Annual Report Download - page 195

home.barclays/annualreport Barclays PLC Annual Report 2015 I 193
PCB, Barclaycard, Non-Core (Retail) and Africa Banking activities are largely funded with customer deposits. As at 31 December 2015, the loan to
deposit ratio for these businesses was 86% (2014: 89%). The Group loan to deposit ratio as at 31 December 2015 was 95% (2014: 100%).
The excess of the Investment Bank’s loans and advances over customer deposits is funded with long-term debt and equity. The Investment Bank
does not rely on customer retail deposit funding from PCB.
As at 31 December 2015, £129bn (2014: £128bn) of total customer deposits were insured through the UK Financial Services Compensation Scheme
(FSCS) and other similar schemes. In addition to these customer deposits, there were £4bn (2014: £4bn) of other liabilities insured by governments.
Although, contractually, current accounts are repayable on demand and savings accounts at short notice, the Group’s broad base of customers,
numerically and by depositor type, helps protect against unexpected fluctuations in balances. Such accounts form a stable funding base for the
Group’s operations and liquidity needs. The Group assesses the behavioural maturity of both customer assets and liabilities to identify structural
balance sheet funding gaps. Customer behaviour is determined by quantitative modelling combined with qualitative assessment taking into account
for historical experience, current customer composition, and macroeconomic projections. These behavioural profiles represent our forward looking
expectation of the run-off profile. The relatively low cash outflow within one year demonstrates that customer funding remains broadly matched with
customer assets from a behavioural perspective.
Behavioural maturity profile (Includes BAGL)
Loans and
advances to
customers
£bn
Customer
deposits
£bn
Customer
funding
surplus/
(deficit)
£bn
Behavioural maturity profile cash outflow/(inflow)
Not more
than one
year
£bn
Over one
year but
not more
than five
years
£bn
More than
five years
£bn
Total
£bn
As at 31 December 2015
Personal and Corporate Banking 218 305 87 18 3 66 87
Barclaycard 40 10 (30) (10) (10) (10) (30)
Africa Banking 30 31 1 2 1 (2) 1
Non-Core (Retail) 12 2 (10) (1) (2) (7) (10)
Total 300 348 48 9 (8) 47 48
As at 31 December 2014
Personal and Corporate Banking 217 299 82 19 3 60 82
Barclaycard 37 7 (30) (10) (10) (10) (30)
Africa Banking 35 35 – 2 (2) – –
Non-Core (Retail) 20 8 (12) – (2) (10) (12)
Total 309 349 40 11 (11) 40 40
Wholesale funding
Wholesale funding relationships are summarised below:
Assets 2015
£bn
2014
£bn Liabilities 2015 £bn
2014
£bn
Trading portfolio assets 28 37 Repurchase agreements 70 124
Reverse repurchase agreements 42 87
Reverse repurchase agreements 34 45 Trading portfolio liabilities 34 45
Derivative financial instruments 326 440 Derivative financial instruments 322 439
Liquidity pool 97 109 Less than one year wholesale debt 54 75
Other assetsa103 122
Greater than one year wholesale debt
and equity 150 157
Repurchase agreements fund reverse repurchase agreements and trading portfolio assets. Trading portfolio liabilities are settled by the remainder of
reverse repurchase agreements (see Note 19 Offsetting financial assets and liabilities for further detail on netting).
Derivative liabilities and assets are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and
the remaining portions are largely offset once netted against cash collateral received and paid.
Wholesale debt, along with the surplus of customer deposits to loans and advances to customers, is used to fund the liquidity pool. Term wholesale
debt and equity largely fund other assets.
Note
a Predominantly available for sale investments, 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.
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