UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 20-F

(Mark One)

 

¨	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

 

þ	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2014

OR

 

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

OR

 

¨	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report                         

 

Commission file numbers		Barclays PLC		1-09246
		Barclays Bank PLC		1-10257

BARCLAYS PLC

BARCLAYS BANK PLC

(Exact Names of Registrants as Specified in their Charter[s])

ENGLAND

(Jurisdiction of Incorporation or Organization)

1 CHURCHILL PLACE, LONDON E14 5HP, ENGLAND

(Address of Principal Executive Offices)

PATRICK GONSALVES, +44 (0)20 7116 2901, PATRICK.GONSALVES@BARCLAYS.COM

1 CHURCHILL PLACE, LONDON E14 5HP, ENGLAND

*(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Barclays PLC

 

Title of Each Class		Name of Each Exchange On Which Registered
25p ordinary shares		New York Stock Exchange*
American Depository Shares, each representing four 25p ordinary shares
		New York Stock Exchange
4.375% Fixed Rate Subordinated Notes due 2024
		New York Stock Exchange
2.75% Fixed Rate Senior Notes due 2019
		New York Stock Exchange

 

*	Not for trading, but in connection with the registration of American Depository Shares, pursuant to the requirements ofthe Securities and Exchange Commission.

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Barclays Bank PLC

 

Title of Each Class		Name of Each Exchange   On Which Registered
Callable Floating Rate Notes 2035		New York Stock Exchange
Non-Cumulative Callable Dollar Preference Shares, Series 2		New York Stock Exchange*
American Depository Shares, Series 2, each representing one Non-Cumulative Callable Dollar Preference Share, Series 2		New York Stock Exchange
Non-Cumulative Callable Dollar Preference Shares, Series 3		New York Stock Exchange*
American Depository Shares, Series 3, each representing one Non-Cumulative Callable Dollar Preference Share, Series 3		New York Stock Exchange
Non-Cumulative Callable Dollar Preference Shares, Series 4		New York Stock Exchange*
American Depository Shares, Series 4, each representing one Non-Cumulative Callable Dollar Preference Share, Series 4		New York Stock Exchange
Non-Cumulative Callable Dollar Preference Shares, Series 5		New York Stock Exchange*
American Depository Shares, Series 5, each representing one Non-Cumulative Callable Dollar Preference Share, Series 5		New York Stock Exchange
5.140% Lower Tier 2 Notes due October 2020		New York Stock Exchange
Floating Rate Senior Notes due December 9 2016		New York Stock Exchange
iPath® Bloomberg Commodity Index Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Agriculture Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Aluminum Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Cocoa Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Coffee Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Copper Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Cotton Subindex Total ReturnSM ETN		NYSE Arca

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iPath® Bloomberg Energy Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Grains Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Industrial Metals Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Lead Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Livestock Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Natural Gas Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Nickel Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Platinum Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Precious Metals Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Softs Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Sugar Subindex Total ReturnSM ETN		NYSE Arca
iPath® Bloomberg Tin Subindex Total ReturnSM ETN		NYSE Arca
iPath® S&P GSCI® Total Return Index ETN		NYSE Arca
iPath® S&P GSCI® Crude Oil Total Return Index ETN		NYSE Arca
iPath® CBOE S&P 500 BuyWrite IndexSM ETN		NYSE Arca
iPath® MSCI India IndexSM ETN		NYSE Arca
iPath® EUR/USD Exchange Rate ETN		NYSE Arca
iPath® GBP/USD Exchange Rate ETN		NYSE Arca
iPath® JPY/USD Exchange Rate ETN		NYSE Arca
iPath® S&P 500 VIX Short-Term FuturesTM ETN		NYSE Arca
iPath® S&P 500 VIX Mid-Term FuturesTM ETN		NYSE Arca
iPath® Inverse S&P 500 VIX Short-Term FuturesTM ETN		NYSE Arca
iPath® Long Extended Russell 1000® TR Index ETN		NYSE Arca
iPath® Long Extended Russell 2000® TR Index ETN		NYSE Arca
iPath® Long Enhanced MSCI EAFE® TR Index ETN		NYSE Arca
iPath® Long Enhanced MSCI Emerging Markets Index ETN		NYSE Arca
iPath® Short Enhanced MSCI Emerging Markets Index ETN		NYSE Arca
iPath® Long Extended S&P 500® TR Index ETN		NYSE Arca

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iPath® Global Carbon ETN		NYSE Arca
iPath® Optimized Currency Carry ETN		NYSE Arca
iPath® US Treasury Steepener ETN		NYSE Arca
iPath® US Treasury Flattener ETN		NYSE Arca
iPath® US Treasury 2-year Bull ETN		NYSE Arca
iPath® US Treasury 2-year Bear ETN		NYSE Arca
iPath® US Treasury 10-year Bull ETN		NYSE Arca
iPath® US Treasury 10-year Bear ETN		NYSE Arca
iPath® US Treasury Long Bond Bull ETN		NYSE Arca
iPath® US Treasury Long Bond Bear ETN		NYSE Arca
iPath® Pure Beta Broad Commodity ETN		NYSE Arca
iPath® Pure Beta S&P GSCI®-Weighted ETN		NYSE Arca
iPath® Pure Beta Cocoa ETN		NYSE Arca
iPath® Pure Beta Coffee ETN		NYSE Arca
iPath® Pure Beta Cotton ETN		NYSE Arca
iPath® Pure Beta Sugar ETN		NYSE Arca
iPath® Pure Beta Aluminum ETN		NYSE Arca
iPath® Pure Beta Copper ETN		NYSE Arca
iPath® Pure Beta Lead ETN		NYSE Arca
iPath® Pure Beta Nickel ETN		NYSE Arca
iPath® Pure Beta Crude Oil ETN		NYSE Arca
iPath® Seasonal Natural Gas ETN		NYSE Arca
iPath® Pure Beta Agriculture ETN		NYSE Arca
iPath® Pure Beta Grains ETN		NYSE Arca
iPath® Pure Beta Softs ETN		NYSE Arca
iPath® Pure Beta Industrial Metals ETN		NYSE Arca
iPath® Pure Beta Energy ETN		NYSE Arca
iPath® Pure Beta Livestock ETN		NYSE Arca

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iPath® Pure Beta Precious Metals ETN		NYSE Arca
iPath® US Treasury 5-year Bull ETN		NYSE Arca
iPath® US Treasury 5-year Bear ETN		NYSE Arca
iPath® S&P 500 Dynamic VIX ETN		NYSE Arca
iPath® Inverse S&P 500 VIX Short-Term FuturesTM ETN (II)		NYSE Arca
iPath® GEMS IndexTM ETN		NYSE Arca
iPath® GEMS Asia 8 ETN		NYSE Arca
iPath® Asian and Gulf Currency Revaluation ETN		NYSE Arca
iPath® S&P MLP ETN		NYSE Arca
Barclays ETN+ S&P 500® Dynamic VEQTOR™ ETN		NYSE Arca
Barclays ETN+ Shiller CAPETM ETNs		NYSE Arca
Barclays ETN+ Select MLP ETN		NYSE Arca
Barclays ETN+ FI Enhanced Europe 50 ETN		NYSE Arca
Barclays ETN+ FI Enhanced Global High Yield ETN		NYSE Arca
Barclays OFI SteelPath MLP ETN		NYSE Arca
Barclays Women in Leadership ETN		NYSE Arca
Barclays Return on Disability ETN		NYSE Arca
Barclays Inverse US Treasury Composite ETN		NASDAQ

 

*	Not for trading, but in connection with the registration of American Depository Shares, pursuant to the requirements of the Securities and Exchange Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuers’ classes of capital or common stock as of the close of the period covered by the annual report.

 

Barclays PLC		25p ordinary shares			16,498,184,168
Barclays Bank PLC		£1 ordinary shares			2,342,558,515
		£1 preference shares			1,000
		£100 preference shares			20,930
		€100 preference shares			31,856
		$0.25 preference shares			237,000,000
		$100 preference shares			58,133

Indicate by check mark if each registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes þ    No ¨

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If this report is an annual or transition report, indicate by check mark if the registrants are not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act 1934.

Yes ¨    No þ

Note—Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

Yes þ    No ¨

Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web sites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨    No ¨

Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Barclays PLC

 

Large Accelerated Filer þ		Accelerated Filer ¨		Non-Accelerated Filer ¨

Barclays Bank PLC

 

Large Accelerated Filer ¨		Accelerated Filer ¨		Non-Accelerated Filer þ

*Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ¨

International Financial Reporting Standards as issued by the International Accounting Standards Board þ

Other ¨

*If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17 ¨

Item 18 ¨

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨    No þ

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS.)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes ¨    No ¨

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SEC Form 20-F Cross reference information

 

Form 20-F item number						Page and caption references in this document*
1		Identity of Directors, Senior Management and Advisers				Not applicable
2		Offer Statistics and Expected Timetable				Not applicable
3		Key Information
		A.		Selected financial data		193, 195, 310-311, 420
		B.		Capitalization and indebtedness		Not applicable
		C.		Reason for the offer and use of proceeds		Not applicable
		D.		Risk factors		85-91
4		Information on the Company
		A.		History and development of the company		40, 289-290 (Note 36), 295 (Note 38), 306, 307, 404
		B.		Business overview		i (Market and other data), 184-189, 198, 200, 210-211, 221, 224-226 (Note 1), 238-240 (Note 15), 268-276 (Note 29)
		C.		Organizational structure		289-290 (Note 36)
		D.		Property, plants and equipment		260 (Note 21), 261-262 (Note 23), 264
4A		Unresolved staff comments				Not applicable
5		Operating and Financial Review and Prospects
		A.		Operating results		150-151, 184-189, 193-213, 224-304
		B.		Liquidity and capital resources		103, 115-116, 135, 153-177, 188-189, 238-240 (Note 15), 277-280 (Note 30), 280-281 (Note 31), 295-297 (Note 39), 301, 410
		C.		Research and development, patents and licenses, etc.		Not applicable
		D.		Trend information		–
		E.		Off-balance sheet arrangements		267 (Note 28), 290-294 (Note 37), 295-297 (Note 39)
		F.		Tabular disclosure of contractual obligations		330
		G.		Safe harbor		i (Forward-looking statements)
6		Directors, Senior Management and Employees
		A.		Directors and senior management		3-5, 319-322
		B.		Compensation		46-79, 285-288 (Note 35), 298-300 (Note 41)
		C.		Board practices		2-42, 55-67
		D.		Employees		43 (Full time employees by region), 200, 202, 204, 206, 208, 209, 211
		E.		Share ownership		46-79, 283-284 (Note 34), 298-300 (Note 41), 325-326
7		Major Shareholders and Related Party Transactions
		A.		Major shareholders		41, 318
		B.		Related party transactions		298-300 (Note 41), 400, 419 (Note r)
		C.		Interests of experts and counsel		Not applicable
8		Financial Information
		A.		Consolidated statements and other financial information		191, 214-304, 403-419
		B.		Significant changes		Not applicable
9		The Offer and Listing
		A.		Offer and listing details		310
		B.		Plan of distribution		Not applicable
		C.		Markets		310-311
		D.		Selling shareholders		Not applicable
		E.		Dilution		Not applicable
		F.		Expenses of the issue		Not applicable
10		Additional Information
		A.		Share capital		Not applicable
		B.		Memorandum and Articles of Association		40, 41, 307-309
		C.		Material contracts		77-79, 280-281 (Note 31)
		D.		Exchange controls		314
		E.		Taxation		311-314
		F.		Dividends and paying assets		Not applicable
		G.		Statement by experts		Not applicable
		H.		Documents on display		314
		I.		Subsidiary information		289-290 (Note 36)
11		Quantitative and Qualitative Disclosure about Market Risk				99-100, 143-152, 301, 367-377

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12		Description of Securities Other than Equity Securities
		A.		Debt Securities		Not applicable
		B.		Warrants and Rights		Not applicable
		C.		Other Securities		Not applicable
		D.		American Depositary Shares		315-316
13		Defaults, Dividends Arrearages and Delinquencies				Not applicable
14		Material Modifications to the Rights of Security Holders and Use of Proceeds				Not applicable
15		Controls and Procedures
		A.		Disclosure controls and procedures		318
		B.		Management’s annual report on internal control over financial reporting		37
		C.		Attestation report of the registered public accounting firm		216
		D.		Changes in internal control over financial reporting		37
16A		Audit Committee Financial Expert				9
16B		Code of Ethics				317
16C		Principal Accountant Fees and Services				15-16, 300 (Note 42), 316 (External auditor objectivity and independence: Non-Audit Services)
16D		Exemptions from the Listing Standards for Audit Committees				Not applicable
16E		Purchases of Equity Securities by the Issuer and Affiliated Purchasers				42, 280 (Share repurchase)
16F		Change in Registrant’s Certifying Accountant				Not applicable
16G		Corporate Governance				317
17		Financial Statements				Not applicable (See Item 8)
18		Financial Statements				Not applicable (See Item 8)
19		Exhibits				Exhibit Index

 

*

Captions have been included only in respect of pages with multiple sections on the same page in order to identify the relevant caption on that page covered by the corresponding Form 20-F item number.

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						Barclays PLC and Barclays Bank PLC Annual Report on Form 20-F

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The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the year ended 31 December 2014 to the corresponding twelve months of 2013 and balance sheet analysis as at 31 December 2014 with comparatives relating to 31 December 2013. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; and the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively.

The comparatives have been restated to reflect the implementation of the Group structure changes and the reallocation of elements of the Head Office results under the revised business structure.

References throughout this report to ‘provision for ongoing investigations and litigation relating to Foreign Exchange’ mean a provision of £1,250m held as at 31 December 2014 for certain aspects of ongoing investigations involving certain authorities and litigation relating to Foreign Exchange.

The information in this document does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014, which include certain information required for this Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC (2014 20-F) and which contain an unqualified audit report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

Certain non-IFRS measures

Barclays management believes that the non-International Financial Reporting Standards (non-IFRS) measures included in this document provide valuable information to readers of its financial statements because they enable the reader to identify a more consistent basis for comparing the business’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. As management reviews the adjusting items described below at a Group level, segmental results are presented excluding these items in accordance with IFRS 8; “Operating Segments”. Statutory and adjusted performance is reconciled at a Group level only. Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

– Adjusted profit before tax is the non-IFRS equivalent of profit before tax as it excludes the impact of own credit; provisions for Payment Protection Insurance (PPI) and claims management costs and interest rate hedging redress; gain on US Lehman acquisition assets; provision for ongoing investigations and litigation relating to Foreign Exchange; goodwill impairment; loss on announced sale of the Spanish business and Education, Social Housing, and Local Authority (ESHLA) valuation revision. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted profit after tax represents profit after tax excluding the post-tax impact of own credit; provisions for PPI and interest rate hedging redress; the gain on US Lehman acquisition assets; provision for ongoing investigations and litigation relating to Foreign Exchange; loss on announced sale of the Spanish business; ESHLA valuation revision and goodwill impairment. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted attributable profit represents adjusted profit after tax less profit attributable to non-controlling interests. The comparable IFRS measure is attributable profit;

– Adjusted income and adjusted total income net of insurance claims represents total income net of insurance claims excluding the impact of own credit; the gain on US Lehman acquisition assets and ESHLA valuation revision. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted net operating income represents net operating income excluding the impact of own credit; the gain on US Lehman acquisition assets and ESHLA valuation revision. A reconciliation to IFRS is presented on page 198 for the Group;

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– Adjusted total operating expenses represents operating expenses excluding the provisions for PPI and interest rate hedging redress; provision for ongoing investigations and litigation relating to Foreign Exchange; and goodwill impairment. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted litigation and conduct represents litigation and conduct excluding the provisions for PPI and interest rate hedging redress; and the provision for ongoing investigations and litigation relating to Foreign Exchange. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted cost: income ratio represents cost: income ratio excluding the impact of own credit; the provisions for PPI and interest rate hedging redress; gain on US Lehman acquisition assets; and provision for ongoing investigations and litigation relating to Foreign Exchange and ESHLA valuation revision. The comparable IFRS measure is cost: income ratio, which represents operating expenses to income net of insurance claims. A reconciliation to IFRS is presented on page 198 for the Group;

– Adjusted cost: income ratio represents cost: income ratio excluding the impact of own credit; the provision for PPI redress; the provision for interest rate hedging products redress; and goodwill impairment. The comparable IFRS measure is cost: income ratio, which represents operating expenses to income net of insurance claims. A reconciliation of the components used to calculate adjusted cost: income ratio to their corresponding IFRS measures is provided on page 198 for the Group;

– Adjusted compensation: net operating income ratio represents compensation: net operating income ratio excluding the impact of own credit; the provisions for PPI and interest rate hedging redress; gain on US Lehman acquisition assets; and provision for ongoing investigations and litigation relating to Foreign Exchange and ESHLA valuation revision. A reconciliation is provided on page 198 for the Group;

– Adjusted compensation: operating income ratio represents compensation: operating income ratio excluding the impact of credit impairment charges and other provisions; own credit; the provisions for PPI and interest rate hedging redress; gain on US Lehman acquisition assets; and provision for ongoing investigations and litigation relating to Foreign Exchange and ESHLA valuation revision. A reconciliation is provided on page 198 for the Group;

– Adjusted basic earnings per share represents adjusted attributable profit (page 212) divided by the basic weighted average number of shares in issue. The comparable IFRS measure is basic earnings per share, which represents profit after tax and non-controlling interests, divided by the basic weighted average number of shares in issue;

– Adjusted return on average shareholders’ equity represents adjusted attributable profit (page 212) divided by adjusted average equity, excluding non-controlling interests. The comparable IFRS measure is return on average shareholder’s equity, which represents profit attributable to equity holders of the parent divided by average equity, excluding non-controlling interests;

– Adjusted return on average tangible shareholders’ equity represents adjusted attributable profit (page 212) divided by average adjusted tangible equity, excluding non-controlling interests. The comparable IFRS measure is return on average tangible shareholders’ equity, which represents profit after tax and non-controlling interests, divided by average tangible equity (page 212);

– Barclays Core results are non-IFRS measures because they represent the sum of five Operating Segments, each of which is prepared in accordance with IFRS 8; “Operating Segments”: Personal and Corporate Banking, Barclaycard, Africa Banking, Investment Bank and Head Office. A reconciliation to the corresponding statutory Group measures are provided on pages 197 and 198;

– Constant currency results in Africa Banking are calculated by converting ZAR results into GBP using the average exchange rate for the year ended 31 December 2014 for the income statement and the 31 December 2014 closing exchange rate for the balance sheet and applying those rates to the results as of and for the year ended 31 December 2013, in order to eliminate the impact of movement in exchange rates between the two periods.

– Net Stable Funding Ratio (NSFR) is calculated according to the definition and methodology detailed in the standard provided by the Basel Committee on Banking Supervision. The original guidelines released in December 2010 (‘Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring’, December 2010) were revised for in January 2014 (‘Basel III: The Net Stable Funding Ratio’, January 2014). The metric is a regulatory ratio that is not yet finalised in local regulations and, as such, represent a non-IFRS measure. This definition and the methodology used to calculate this metric is subject to further revisions ahead of the implementation date and our interpretation of this calculation may not be consistent with that of other financial institutions;

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– BCBS 270 leverage exposure makes certain adjustments to Total assets under IFRS in accordance with Barclays’ understanding of the latest requirements that are expected to be included in the revised CRD IV text and guidance from regulators. The “Leverage” table on page 158 shows a reconciliation of BCBS 270 leverage exposure to total assets under IFRS;

– BCBS 270 leverage ratio represents CRD IV Tier 1 capital divided by BCBS 270 leverage exposure. See the “Leverage” table on page 158 for a reconciliation of BCBS 270 leverage exposure to Total assets under IFRS;

– The CRD IV fully loaded CET1 and estimated BCBS 270 leverage ratios excluding the impact of the sale of the Spanish business are non-IFRS measures as these metrics exclude the impact of the risk weighted assets associated with the Spanish business.

– Liquidity Coverage Ratio (LCR) is calculated according to the Commission Delegated Regulation of October 2014 that supplements Regulation (EU) 575/2013 (CRDIV) published by the European Commission in June 2013. The metric is a ratio that is not yet fully implemented in local regulations and, as such, represents a non-IFRS measure;

– Transitional CET1 ratio according to FSA October 2012. This measure is calculated by taking into account the statement of the Financial Services Authority, the predecessor of the Prudential Regulation Authority, on CRD IV transitional provisions in October 2012, assuming such provisions were applied as at 1 January 2014. This ratio is used as the relevant measure starting 1 January 2014 for purposes of determining whether the automatic write-down trigger (specified as a Transitional CET1 ratio according to FSA October 2012 of less than 7.00%) has occurred under the terms of the Contingent Capital Notes issued by Barclays Bank PLC on November 21, 2012 (CUSIP: 06740L8C2) and April 10, 2013 (CUSIP: 06739FHK0). Please refer to page 155 for a reconciliation of this measure to CRD IV CET1 ratio.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group’s future financial position, income growth, assets, impairment charges and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the Transform Programme and Group Strategy Update, run-down of assets and businesses within Barclays Non-Core, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under IFRS, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of the Group; the potential for one or more countries exiting the Eurozone; the impact of EU and US sanctions on Russia; the implementation of the Transform Programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group’s control. As a result, the Group’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in the Group’s forward-looking statements. Additional risks and factors are identified in our filings with the SEC which are available on the SEC’s website at http://www.sec.gov.

Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange plc (the LSE) or applicable law, Barclays expressly disclaims any obligation or

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undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Barclays’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has filed or may file with the SEC.

Market and other data

This document contains information, including statistical data, about certain Barclays markets and its competitive position. Except as otherwise indicated, this information is taken or derived from Datastream and other external sources. Barclays cannot guarantee the accuracy of information taken from external sources, or that, in respect of internal estimates, a third party using different methods would obtain the same estimates as Barclays.

Uses of Internet addresses

This document contains inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document.

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Contents

 

 

 

 

		|  01

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02  |

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04  |

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		|  05

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06  |

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		|  07

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08  |

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Governance: Directors’ report What we did in 2014 Board Audit Committee Report

 

 

 

		|  09

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10  |

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		|  11

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12  |

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		|  13

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14  |

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16  |

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18  |

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		|  19

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20  |

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Governance: Directors’ report What we did in 2014 Board Conduct, Operational and Reputational Risk Committee Reporta

 

 

 

 

		|  21

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22  |

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Governance: Directors’ report What we did in 2014 Board Conduct, Operational and Reputational Risk Committee Report1

 

 

 

 

		|  23

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Governance: Directors’ report What we did in 2014 Board Corporate Governance and Nominations Committee Report

 

 

 

 

24  |

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Governance: Directors’ report What we did in 2014 Board Corporate Governance and Nominations Committee Report

 

 

 

 

		|  25

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26  |

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Governance: Directors’ report What we did in 2014 Board Corporate Governance and Nominations Committee Report

 

 

 

 

		|  27

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28  |

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Governance: Directors’ report What we did in 2014 Board Corporate Governance and Nominations Committee Report

 

 

 

 

		|  29

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30  |

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Governance: Directors’ report  How we comply

 

 

 

 

		|  31

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32  |

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Governance: Directors’ report How we comply

 

 

 

 

		|  33

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34  |

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Governance: Directors’ report How we comply

 

 

 

 

		|  35

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36  |

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Governance: Directors’ report How we comply

 

 

 

 

		|  37

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38  |

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Governance: Directors’ report Other statutory information

 

 

 

 

		|  39

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40  |

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Governance: Directors’ report Other statutory information

 

 

 

 

		|  41

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42  |

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Governance People

 

 

 

 

		|  43

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44  |

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Governance People

 

 

 

 

		|  45

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Remuneration report Annual statement from the Chairman of the Board Remuneration Committee

 

 

 

 

 

46  |

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Remuneration report Annual statement from the Chairman of the Board Remuneration Committee

 

 

 

 

 

		|  47

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Remuneration report Performance, pay and distribution of earnings to key stakeholders

 

 

 

 

48  |

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Remuneration report Remuneration policy for all employees

 

 

 

 

		|  49

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50  |

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Governance: Remuneration report 2014 incentives

 

 

 

 

		|  51

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52  |

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Governance: Remuneration report 2014 incentives

 

 

 

 

		|  53

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54  |

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Governance: Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  55

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56  |

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Governance Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  57

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58  |

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		|   59

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60  |

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Governance: Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  61

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62  |

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Governance: Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  63

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64  |

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Governance: Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  65

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66  |

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Governance: Remuneration report Annual report on Directors’ remuneration

 

 

 

 

		|  67

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Additional remuneration disclosures

 

 

 

68  |

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Governance: Remuneration report Additional remuneration disclosures

 

 

 

 

		|  69

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70  |

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Governance: Remuneration report Directors’ remuneration policy

 

 

 

 

		|  71

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72  |

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Governance: Remuneration report Directors’ remuneration policy

 

 

 

 

		|  73

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74  |

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		|  75

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76  |

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		|  77

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78  |

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Remuneration report Directors’ remuneration policy

 

 

 

 

		|  79

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Governance Barclays’ implementation of the Salz Review recommendations

 

 

 

 

		|  81

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Risk review Contents

 

 

 

82  |  Barclays PLC and Barclays Bank PLC 2014 Annual Report on Form 20-F

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Risk review Contents

 

 

 

 

		|  83

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Risk review Material existing and emerging risks

 

 

 

84  |

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Risk review Material existing and emerging risks Material existing and emerging risks to the Group’s future performance

 

 

 

 

		|  85

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86  |

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Risk review Material existing and emerging risks Material existing and emerging risks to the Group’s future performance

 

 

 

 

		|  87

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88  |

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Risk review Material existing and emerging risks Material existing and emerging risks to the Group’s future performance

 

 

 

 

		|  89

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90  |

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Risk review Material existing and emerging risks Material existing and emerging risks to the Group’s future performance

 

 

 

		|  91

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Risk review Risk management

 

 

 

 

		|  93

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94  |

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Risk review Risk management

 

 

 

 

		|  95

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96  |

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Risk review Risk management Credit risk management

 

 

 

 

		|  97

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98  |

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Risk review Risk management Market risk management

 

 

 

 

		|  99

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100  |

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Risk review Risk management Funding and capital risk management

 

 

 

 

		|  101

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102  |

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Risk review Risk management Liquidity risk management

 

 

 

 

		|  103

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Risk review Risk management Operational risk management

 

 

 

104  |

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Risk review Risk management Operational risk management

 

 

 

 

		|  105

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106  |

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		|  107

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108  |

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		|  109

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110  |

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112  |

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114  |

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		|  115

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116  |

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		|  117

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118  |

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		|  119

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120  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  121

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122  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  123

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124  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  125

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126  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  127

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128  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  129

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130  |

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Risk review Risk performance Credit risk

 

 

UK CRE marked to market LTV (retail)
																		2014				2013a
As at 31 December																		%				%
Marked to market LTV:
Balance weighted																			51.2				54.9
Valuation weighteda																			35.9				40.8
Marked to market LTV – performing balances:
Balance weighted																			51.0				54.2
Valuation weighteda																			35.5				40.4
Marked to market LTV – Non-performing balances:
Balance weighted																			57.6				75.8
Valuation weighteda																			46.7				58.7
UK CRE LTV analysis
		Balances								Balances as proportion of total								Collateral held
		2014				2013				2014				2013				2014				2013
As at 31 December		£m				£m				%				%				£m				£m
Retail portfolios
<=75%			1,468				1,187				84				75				4,643				3,437
>75% and <=100%			144				225				8				14				180				269
>100% and <=125%			37				66				2				4				36				63
>125%			27				36				2				2				15				23
Unsecured balances			80				79				4				5				–				–
Total			1,756				1,593				100				100				4,874				3,792
Wholesale portfolios
<=100%			7,399				7,830				75				80				20,213				17,735
>100% and <=125%			112				132				1				1				102				126
>125%			140				165				1				2				16				44
Unassessed balancesb			1,748				1,314				18				13				–				–
Unsecured balances			526				381				5				4				–				–
Total			9,925				9,842				100				100				20,331				17,905
Group
<=100%			9,011				9,262				78				81				25,036				21,444
>100% and <=125%			149				198				1				2				139				189
>125%			167				201				1				2				30				67
Unassessed balancesb			1,748				1,314				15				11				–				–
Unsecured balances			606				460				5				4				–				–
Total			11,681				11,435				100				100				25,205				21,697

Portfolio LTVs have reduced due to appreciating commercial property values. Unsecured balances primarily relate to working capital facilities agreed to CRE companies.

Notes

a	Valuation weighted LTV for 2013 were revised to standardise the valuation weighted calculation methodology used.

b	Corporate Banking balances under £1m.

 

 

		|  131

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132  |

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Risk review Risk performance Credit risk

 

 

Wholesale Personal and Corporate Banking

The table below details Personal and Corporate Banking loans and advances which form part of the Wholesale risk portfolio.

 

Analysis of loans and advances at amortised cost
		Gross L&A				Impairment allowance				L&A net of impairment				Credit risk loans				CRLs % of gross L&A				Loan impairment charges				Loan loss  rates
		£m				£m				£m				£m				%				£m				bps
As at 31 December 2014
Banks			5,507				–				5,507				–				–				1			2
Other financial institutions			5,289				12				5,277				81				1.5				26			49
Manufacturing			6,828				34				6,794				81				1.2				(3	)		(4)
Construction			2,804				16				2,788				28				1.0				1			4
Property			13,601				193				13,408				707				5.2				36			26
Government and central bank			1,187				–				1,187				–				–				–			–
Energy and water			1,937				1				1,936				2				0.1				3			15
Wholesale and retail distribution and leisure			9,259				122				9,137				221				2.4				44			48
Business and other services			12,374				114				12,260				202				1.6				39			32
Home loansa			6,864				36				6,828				96				1.4				34			50
Cards, unsecured loans and other personal lendinga			9,567				60				9,507				15				0.2				22			23
Other			4,405				80				4,325				197				4.5				16			36
Total			79,622				668				78,954				1,630				2.0				219			28
As at 31 December 2013
Banks			3,140				–				3,140				–				–				–			–
Other financial institutions			4,910				31				4,879				143				2.9				2			4
Manufacturing			5,940				111				5,829				162				2.7				40			67
Construction			2,828				40				2,788				54				1.9				2			7
Property			13,477				82				13,395				773				5.7				78			58
Government and central bank			571				2				569				–				–				–			–
Energy and water			1,967				6				1,961				2				0.1				3			15
Wholesale and retail distribution and leisure			8,659				89				8,570				226				2.6				26			30
Business and other services			11,739				239				11,500				257				2.2				40			34
Home loans			7,606				13				7,593				34				0.4				10			13
Cards, unsecured loans and other personal lending			10,872				61				10,811				3				–				42			38
Other			5,965				27				5,938				207				3.5				21			35
Total			77,674				701				76,973				1,861				2.4				264			34

Wholesale PCB loans and advances increased £2.0.bn to £79.0bn due to higher Corporate Banking lending balances driven by an increase in bank lending.

Credit Risk Loans decreased £0.2bn to £1.6bn and loan impairment charges improved 17% to £219m due to the improving economic environment in the UK, particularly impacting Corporate which benefitted from one-off releases and lower defaults from large UK Corporate clients. This led to a decrease in the loan loss rate to 28bps (2013: 34bps).

Analysis of Wholesale balances on watch list/early warning list

Wholesale accounts that are deemed to contain heightened levels of risk are recorded on graded watch lists (Investment Bank) or early warning lists (all other businesses) comprising three categories graded in line with the perceived severity of the risk attached to the lending, and its probability of default:

 

¡

Category 1: a temporary classification for performing obligors who exhibit some unsatisfactory features;

 

¡

Category 2: performing obligors where some doubt exists, but the belief is that the obligor can meet obligations over the short term; and

 

¡

Category 3: obligors where definite concern exists with well-defined weaknesses and failure in the short term could arise should further deterioration occur. In the table below Category 3 includes impaired, non-performing and potential problem assets in line with how balances are managed and reported by the businesses.

Where an obligor’s financial health gives grounds for concern, it is immediately placed into the appropriate category. For more information please see pages 356 to 359.

Note

a

Included in the above analysis are Wealth and Investment Management exposures measured on an individual customer exposure basis.

 

 

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134  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  135

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136  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  137

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138  |

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Risk review Risk performance Credit risk

 

 

 

 

		|  139

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140  |

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Risk review Risk performance Credit risk

 

 

 

		|  141

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142  |

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Risk review Risk performance Market risk

 

 

 

 

		|  143

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144  |

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Risk review Risk performance Market risk

 

 

 

 

		|  145

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146  |

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Risk review Risk performance Market risk

 

 

 

 

		|  147

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148  |

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Risk review Risk performance Market risk

 

 

 

 

		|  149

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150  |

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Risk review Risk performance

Market risk

 

 

 

 

		|  151

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152  |

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Risk review Risk performance

Funding risk – Capital

 

 

 

		|  153

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154  |

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		|  155

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156  |

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		|  157

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158  |

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		|  159

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Risk performance Funding risk – Liquidity

 

 

 

 

160  |

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Risk review Risk performance Funding risk – Liquidity

 

 

 

 

		|  161

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162  |

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Risk review Risk performance Funding risk – Liquidity

 

 

 

 

		|  163

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164  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

 

		|  165

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166  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

 

		|  167

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168  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

 

		|  169

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170  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

 

		|  171

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172  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

 

		|  173

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174  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

		|  175

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176  |

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Risk review

Risk performance

Funding risk – Liquidity

 

 

 

		|  177

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Risk review

Risk performance

Operational risk

 

 

 

 

		|  179

 

 

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Risk review

Risk performance

Conduct and reputation risk

 

 

 

		|  181

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182  |

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Risk review

Risk performance

Conduct and reputation risk

 

 

 

		|  183

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Risk review

Supervision and regulation

    

 

 

 

184  |

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Risk review

Supervision and regulation

    

 

 

 

		|  185

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Risk review

 

 

 

 

186  |

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		|  187

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188  |

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		|  189

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Financial review

Contents

 

 

 

 

190  |

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Financial review Key Performance Indicators

 

 

 

		|  191

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192  |

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Financial review Consolidated summary income statement

 

 

 

		|  193

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Financial review

Income statement commentary

 

 

 

 

194  |

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Financial review

Consolidated summary balance sheet

 

 

 

 

		|  195

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Financial review

Balance sheet commentary

 

 

 

 

196  |

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Financial review

Analysis of results by business

All disclosures in this section are unaudited unless otherwise stated.

 

 

 

 

		|  197

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198  |

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200  |

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Financial review Analysis of results by business

 

 

 

 

		|  201

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202  |

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Financial review Analysis of results by business

 

 

 

 

		|  203

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204  |

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Financial review Analysis of results by business

 

 

 

 

		|  205

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206  |

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Financial review Analysis of results by business

 

 

 

 

		|  207

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208  |

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Financial review Analysis of results by business

 

 

 

 

		|  209

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210  |

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Financial review Analysis of results by business

 

 

 

 

		|  211

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212  |

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Financial review Analysis of results by business

 

 

 

 

		|  213

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214  |

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		|  215

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216  |

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Consolidated financial statements

Consolidated income statement

 

 

 

 

		|  217

 

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Consolidated financial statements

Consolidated statement of comprehensive income

 

 

 

 

218  |

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Consolidated financial statements

Consolidated balance sheet

 

 

 

 

		|  219

 

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Consolidated financial statements

Consolidated statement of changes in equity

 

 

 

 

220  |

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		|  221

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222  |

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Note

a   Excluding interest of £7m.

 

		|  223

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224  |

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		|  225

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226  |

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Notes to the financial statements Performance/return

 

 

 

 

		|  227

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Notes to the financial statements Performance/return

 

 

 

 

228  |

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		|  229

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Notes to the financial statements

Performance/return

 

 

 

 

230  |

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		|  231

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Notes to the financial statements

Performance/return

 

 

 

 

232  |

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		|  233

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Notes to the financial statements

Performance/return

 

 

 

 

234  |

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		|  235

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Notes to the financial statements Performance/return

 

 

 

236  |

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Notes to the financial statements Assets and liabilities held at fair value

 

 

 

 

		|  237

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Notes to the financial statements Assets and liabilities held at fair value

 

 

 

238  |

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		|  239

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Notes to the financial statements Assets and liabilities held at fair value

 

 

 

240  |

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		|  241

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Notes to the financial statements Assets and liabilities held at fair value

 

 

 

242  |

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		|  243

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Notes to the financial statements

Assets and liabilities held at fair value

 

 

 

 

244  |

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		|  245

 

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Notes to the financial statements

Assets and liabilities held at fair value

 

 

 

 

246  |

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		|  247

 

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Notes to the financial statements

Assets and liabilities held at fair value

 

 

 

 

248  |

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		|  249

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Notes to the financial statements

Assets and liabilities held at fair value

 

 

 

 

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Notes to the financial statements Financial instruments held at amortised cost

 

 

 

 

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Notes to the financial statements Non-current assets and other investments

 

 

 

 

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Non-current assets and other investments

 

 

 

 

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Notes to the financial statements Accruals, provisions, contingent liabilities and legal proceedings

 

 

 

 

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Accruals, provisions, contingent liabilities and legal proceedings

 

 

 

 

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Accruals, provisions, contingent liabilities and legal proceedings

 

 

 

 

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Notes to the financial statements Accruals, provisions, contingent liabilities and legal proceedings

 

 

 

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Notes to the financial statements

Accruals, provisions, contingent liabilities and legal proceedings

 

 

 

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Capital instruments, equity and reserves

 

 

 

 

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Notes to the financial statements

Capital instruments, equity and reserves

 

 

 

 

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Notes to the financial statements

Capital instruments, equity and reserves

 

 

 

 

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Notes to the financial statements Employee benefits

 

 

 

 

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Notes to the financial statements Employee benefits

 

 

 

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Notes to the financial statements Employee benefits

 

 

 

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Notes to the financial statements Employee benefits

 

 

 

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Notes to the financial statements Scope of consolidation

 

 

 

 

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Notes to the financial statements Scope of consolidation

 

 

 

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Notes to the financial statements

Scope of consolidation

 

 

 

 

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Notes to the financial statements Scope of consolidation

 

 

 

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Notes to the financial statements Scope of consolidation

 

 

 

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Notes to the financial statements Other disclosure matters

 

 

 

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Notes

a

Comprises the fees for the statutory audit of the subsidiaries and associated pension schemes both inside and outside Great Britain and fees for the work performed by associates of PricewaterhouseCoopers LLP in respect of the consolidated financial statements of the Company. Fees relating to the audit of the associated pension schemes were £0.2m (2013: £0.2m, 2012: £0.2m).

b	Comprises services in relation to statutory and regulatory filings. These include audit services for the review of the interim financial information under the Listing Rules of the UK listing authority.

c	Includes consultation on tax matters, tax advice relating to transactions and other tax planning and advice.

 

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Other disclosure matters

 

 

 

 

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Notes to the financial statements Other disclosure matters

 

 

 

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Shareholder Information

Shareholder enquiries

 

 

Investors who have any questions about their investment in Barclays, or about Barclays in general, may write to the Director, Investor Relations at our Head Office as follows:

 

 

 

 

Note

a  Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm, Monday to Friday.

 

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 Additional information

 

 

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Fees and Charges Payable by a Holder of ADSs

The ADR depositary collects fees for delivery and surrender of ADSs directly from investors depositing ordinary shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them.

The charges of the ADR depositary payable by investors are as follows:

 

Type of Service		ADR Depositary Actions		Fee
ADR depositary or substituting the underlying shares		Issuance of ADSs against the deposit of ordinary shares, including deposits and issuances in respect of:		$5.00 or less per 100 ADSs (or portion thereof) evidenced by the new ADSs delivered
		–   Share distributions, stock splits, rights issues,       mergers
		–   Exchange of securities or other transactions or       event or other distribution affecting the ADSs or       deposited securities
Receiving or distributing cash dividends		Distribution of cash dividends		$0.04 or less per ADSa
Selling or exercising rights		Distribution or sale of securities, the fee being in an amount equal to the fee for the execution and delivery of ADSs which would have been charged as a result of the deposit of such securities		$5.00 or less per each 100 ADSs (or portion thereof)
Withdrawing an underlying ordinary share		Acceptance of ADSs surrendered for withdrawal of deposited ordinary shares		$5.00 or less for each 100 ADSs (or portion thereof)
General depositary services, particularly those charged on an annual basis		Other services performed by the ADR depositary in administering the ADS program		No fee currently payable
Expenses of the ADR depositary		Expenses incurred on behalf of Holders in connection with:    –   Taxes and other governmental charges    –   Cable, telex and facsimile		Expenses payable at the sole discretion of the ADR depositary by billing Holders or by deducting charges from one or more cash dividends or other cash distributions
		–   Transmission/delivery
		–   Transfer or registration fees, if applicable, for       the registration of transfers or underlying       ordinary shares
		–   Expenses of the ADR depositary in connection       with the conversion of foreign currency into US       dollars (which are paid out of such foreign       currency)
		–   Any other charge payable by ADR depositary or       its agents

 

Note

a The fee in relation to the distribution of cash dividends was $0.01 per ADS in respect of the ADR depositary Contract Year running from August 11, 2013 to August 10, 2014 (the ‘2013/2014 Contract Year’). This fee was pro-rated to $0.0083 because dividend fees were not charged in respect of the September 2013 dividend. Such fees were introduced for the December 2013 dividend and also applied to the March 2014 and June 2014 dividends falling within the 2013/2014 Contract Year.

 

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Shareholder information    Additional information

 

 

Fees and Payments made by the ADR depositary to Barclays

The ADR depositary has agreed to provide Barclays with an amount based on the cash dividend fee charged on each ADS during each contract year running from August 11 of the relevant year to August 10 of the following year (a ‘Contract Year’) for expenses incurred by Barclays in connection with the ADS program (such amount being the ‘Contribution’ for the relevant Contract Year). The Contributions are paid to Barclays in two instalments each Contract Year.

The table below sets out the Contribution for the 2013/2014 Contract Year:

 

Cash Dividend Amount Collected during Contract Year		Amount provided in Contributions from the ADR depositary   for the year ended 31 December 2014

 

US$0.01 per ADS		$1,500,000
Less: pro-rated reduction as dividend fees not charged in September 2013		($165,000)
Total		$1,335,000

Under certain circumstances, including removal of the ADR depositary or termination of the ADS program by Barclays, Barclays may be charged by the ADR depositary certain fees (including in connection with depositary services, certain expenses paid on behalf of Barclays, an administrative fee, and any other reasonable fees/expenses incurred by the ADR depositary).

The ADR depositary has agreed to waive certain of its fees chargeable to Barclays with respect to standard costs associated with the administration of the ADS program.

External auditor objectivity and independence: Non-Audit Services

Our policy on the provision of services by the Group’s statutory Auditor sets out the circumstances in which the auditor may be permitted to undertake non-audit work for the Group.

The Board Audit Committee oversees compliance with the Policy and considers and, if appropriate, approves requests to use the Auditor for non-audit work. Allowable services are pre-approved up to but not including £100,000 or £25,000 in the case of certain taxation services. The Group Finance Director and the Company Secretary and their teams deal with day to day administration of the policy, facilitating requests for approval.

Details of the services that are prohibited and allowed are set out below:

Services that are prohibited include:

 –      bookkeeping;

 –      design and implementation of financial information systems;

 –      appraisal or valuation services;

 –      actuarial services;

 –      internal audit outsourcing;

 –      management and Human Resources functions;

 –      broker or dealer, investment advisor or investment banking services; and

 –      legal, expert and tax services involving advocacy.

Allowable services that the Board Audit Committee considers for approval include:

 –      statutory and regulatory audit services and regulatory non-audit services;

 –      other attest and assurance services;

 –      accountancy advice and training;

 –      risk management and controls advice;

 –      transaction support;

 –      taxation services;

 –      business support and recoveries; and

 –      translation services.

 

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NYSE Corporate Governance Statement

As our main listing is on the London Stock Exchange, we follow the UK Corporate Governance Code. However, as Barclays also has American Depositary Receipts listed on the New York Stock Exchange (NYSE), we are also subject to the NYSE’s Corporate Governance Rules (NYSE Rules). We are exempt from most of the NYSE Rules, which US domestic companies must follow, because we are a non-US company listed on the NYSE. However, we are required to provide an Annual Written Affirmation to the NYSE of our compliance with the applicable NYSE Rules and must also disclose any significant differences between our corporate governance practices and those followed by domestic US companies listed on the NYSE. Key differences between the Code and NYSE Rules are set out here:

Director Independence

NYSE Rules require the majority of the Board to be independent. The Code requires at least half of the Board (excluding the Chairman) to be independent. The NYSE Rules contain different tests from the Code for determining whether a Director is independent. We follow the Code’s recommendations as well as developing best practices among other UK public companies. The independence of our non-executive Directors is reviewed by the Board on an annual basis and it takes into account the guidance in the Code and the criteria we have established for determining independence, which are described on page 34.

Board Committees

We have a Board Corporate Governance and Nominations Committee and a Board Remuneration (rather than Compensation) Committee, both of which are broadly similar in purpose and constitution to the Committees required by the NYSE Rules and whose terms of reference comply with the Code’s requirements. The NYSE Rules state that both Committees must be composed entirely of independent Directors. As the Group Chairman was independent on appointment, the Code permits him to chair the Board Corporate Governance and Nominations Committee and be a member of the Board Remuneration Committee. Except for these appointments, both Committees are composed solely of non-executive Directors, whom the Board has determined to be independent. We comply with the NYSE Rules requirement that we have a Board Audit Committee comprised solely of independent non-executive Directors. However, we follow the Code recommendations, rather than the NYSE Rules, regarding the responsibilities of the Board Audit Committee (except for applicable mandatory responsibilities under the Sarbanes-Oxley Act), although both are broadly comparable. Although the NYSE Rules state that the Board Audit Committee is to take responsibility for risk oversight, Barclays has additional Board Committees which address different areas of risk management. To enhance Board governance of risk, a new Board committee structure was put in place in 2013, encompassing the Board Financial Risk Committee, the Board Conduct, Operational and Reputational Risk Committee and the Board Enterprise Wide Risk Committee. Each Committee has their own remit, while at the same time bringing together at Board level the entire risk profile of Barclays. A full description of each Board Committee can be found on page 94.

Corporate Governance Guidelines

The NYSE Rules require domestic US companies to adopt and disclose corporate governance guidelines. There is no equivalent recommendation in the Code but the Board Corporate Governance and Nominations Committee has developed corporate governance guidelines, ‘Corporate Governance in Barclays’, which have been approved and adopted by the Board.

Code of Ethics

The NYSE Rules require that domestic US companies adopt and disclose a code of business conduct and ethics for Directors, officers and employees. “The Barclays Way” was introduced in 2013, this is a Code of Conduct which outlines the Values and Behaviours which govern our way of working across our business globally. “The Barclays Way” has been adopted on a Group wide basis by all Directors, Officers and employees. This replaces the Code of Ethics which was previously in place for the Chief Executive and senior financial officers. “The Barclays Way” is available to view on the Barclays website at barclays.com/about-barclays/barclays-values.html

Shareholder Approval of Equity-compensation Plans

The NYSE listing standards require that shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions to those plans. We comply with UK requirements, which are similar to the NYSE standards. However, the Board does not explicitly take into consideration the NYSE’s detailed definition of what are considered ‘material revisions’.

 

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Share Capital

Substantial shareholders

As at 27 February, 2015 the Company had been notified under Rule 5 of the Disclosure and Transparency Rules (DTR) of the UKLA of the following holdings of voting rights in its shares:

2014
Holder			Number of Barclays Shares				% of total voting rights attached to issued share capitala				Number of warrants				% of total voting  rights attached to  issued share  capital
Qatar Holding LLCb			813,964,552				6.65				-				-
Blackrock Incc			822,938,075				5.02				-				-
The Capital Group Companies Incd			861,142,569				5.22				-				-

Notes

a The percentage of voting rights detailed above were as calculated at the time of the relevant disclosures made in accordance with Rule 5 of the DTR.

b Qatar Holding LLC is wholly-owned by Qatar Investment Authority.

c Total shown includes 1,408,618 contracts for difference to which voting rights are attached. On 12 January 2015 BlackRock, Inc disclosed, by way of a Schedule 13G filed with the SEC, beneficial ownership of 1,032,843,875 ordinary shares of Barclays PLC as of 31 December 2014, representing 6.3% of that class of shares.

d The Capital Group Companies Inc (CG) holds its shares via CG Management companies and funds. Part of the CG holding is held as American Depositary Receipts (ADRs) with a ratio of 1 share to every 4 ADRs.

As at 4 March 2013, the Company had been notified under Rule 5 of the DTR of the UKLA of the following holdings of voting rights in its shares:

2013
Holder			Number of Barclays Shares				% of total voting rights attached to issued share capitala				Number of warrants				% of total voting  rights attached to  issued share  capital
Qatar Holding LLCb			813,964,552				6.65				-				-
Blackrock Incc			805,969,166				7.06				-				-
The Capital Group Companies Incd			809,174,196				5.03				-				-

Notes

a The percentage of voting rights detailed above were as calculated at the time of the relevant disclosures made in accordance with Rule 5 of the DTR.

b Qatar Holding LLC is wholly-owned by Qatar Investment Authority. On 13 February 2014 Qatar Holding LLC disclosed, by way of a Schedule 13G filed with the SEC, beneficial ownership of 1,017,455,690 ordinary shares of Barclays PLC as of 31 December 2013, representing 6.31% of that class of shares.

c Total shown includes 8,003,236 contracts for difference to which voting rights are attached. On 17 January 2014 BlackRock, Inc disclosed, by way of a Schedule 13G filed with the SEC, beneficial ownership of 1,040,177,738 ordinary shares of Barclays PLC as of 31 December 2014, representing 6.5% of that class of shares.

d The Capital Group Companies Inc (CG) holds its shares via CG Management companies and funds.

As at 4 March 2013, the Company had been notified under Rule 5 of the DTR of the UKLA of the following holdings of voting rights in its shares:

2012
Holder			Number of Barclays Shares				% of total voting rights attached to issued share capitala				Number of warrants				% of total voting  rights attached to  issued share  capital
His Highness Sheikh Mansour Bin Zayed Al Nahyanb			783,509,699				6.09				-				-
Qatar Holding LLCc			813,964,552				6.65				-				-
BlackRock, Incd			805,969,166				7.06				-				-
Legal & General Group Plce			480,805,132				3.99				-				-
The Capital Group Companies Incf			492,653,250				4.02				-				-

Notes

a The percentage of voting rights detailed above were as calculated at the time of the relevant disclosures made in accordance with Rule 5 of the DTR.

b Total shown comprises (1) 758,437,618 shares that are legally owned by PCP Gulf Invest 3 Limited, which is wholly owned by Nexus Capital Investing Limited (NCIL). NCIL is in turn wholly owned by Abu Dhabi International United Investments LLC, which is in turn wholly owned by His Highness Sheikh Mansour Bin Zayed Al Nahyan (HHSM); and (2) 25,072,081 cash-settled options referencing ordinary shares that are legally owned by Yas Capital Limited (YCL), which is, in turn, wholly owned by HHSM. YCL has no right to acquire or exercise any voting rights in Barclays PLC.

c Qatar Holding LLC is wholly-owned by Qatar Investment Authority.

d Total shown includes 8,003,236 contracts for difference to which voting rights are attached.

e Legal & General Group plc’s interest is held by Legal & General Assurance (Pensions Management) Limited.

f The Capital Group Companies Inc (CG) holds its shares via CG management companies and funds.

Disclosure controls and procedures

The Chief Executive, Antony Jenkins, and the Group Finance Director, Tushar Morzaria, conducted with Group Management an evaluation of the effectiveness of the design and operation of the Group’s disclosure controls and procedures of each of Barclays PLC and Barclays Bank PLC as at 31 December 2014, which are defined as those controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the US Securities Exchange Act of 1934 is recorded, processed, summarised and reported within the time periods specified in the US Securities and Exchange Commission’s rules and forms. As of the date of the evaluation, the Chief Executive and Group Finance Director concluded that the design and operation of these disclosure controls and procedures were effective.

 

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Board of Directors

Sir David Walker, Chairman

Sir David joined the Board as a non-executive Director in September 2012 and became Chairman in November 2012. Sir David began his career with Her Majesty’s Treasury, where, with a period on secondment to the International Monetary Fund in Washington, he served until 1977. Sir David held several key positions at the Bank of England, where he became one of four Executive Directors. He was Chairman of the Securities & Investment Board and, ex officio, a nominated member of the Council of Lloyd’s. Sir David was a non-executive member of the Court of the Bank of England, a non-executive board member of the former CEGB and subsequently of National Power plc. He was formerly Chairman of Reuters Venture Capital, Vice-Chairman of the Legal and General Group plc and was Chairman of the London Investment Bankers’ Association for 4 years. Sir David was Chairman and CEO, Morgan Stanley International, and subsequently Chairman. He retired as Chairman of Morgan Stanley International in December 2005 but remained a Senior Advisor until the end of August 2012. Sir David is a member and a trustee of the Group of Thirty and previously served as Treasurer of the Group. He was Chairman of the Business Leaders’ Group of the East End charity Community Links. Sir David has completed two reports and made recommendations in respect of the private equity industry and corporate governance at financial institutions. He also co-led the independent review of the report that the FSA produced into the failure of Royal Bank of Scotland and was a member of the four-person Committee chaired by Lord Woolf (former Lord Chief Justice) into ethical business conduct at BAE Systems plc. Sir David has significant experience as a director and chairman, coupled with an extensive knowledge of the financial services industry. This, in addition to an excellent understanding and experience of boardroom and corporate governance issues, enables him to provide effective leadership to the Barclays Board. Sir David’s other current principal external appointments are Cicely Saunders Foundation (Trustee), and as Board members of Campaign for the Colleges and University of Cambridge and the Multiple Sclerosis Development Appeal.

Antony Jenkins, Chief Executive, Executive Director

Antony was appointed Group Chief Executive in August 2012. Previously Antony was Chief Executive of Barclays’ Retail and Business Banking business. He has been a member of the Group Executive Committee since 2009. Antony started his career at Barclays, where he completed the Barclays’ Management Development Programme, before going on to hold various roles in retail and corporate banking. He then moved to Citigroup, working in both London and New York, before rejoining Barclays as Chief Executive of Barclaycard. Antony has represented Barclays as a non-executive Director on the Board of Absa (now Barclays Africa Group). He was also on the Board of Visa Europe Ltd and the Board of Motability Operations Group plc. Since becoming Group Chief Executive, Antony has taken the lead in the development of Barclays’ Transform programme, including the introduction of a new purpose and values, with the aim of making Barclays the ‘Go-To’ Bank for customers and clients. Antony’s other current principal external appointments are Board of Directors of the Institute of International Finance (Member), International Advisory Panel of the Monetary Authority of Singapore (Member) and Business in the Community (Trustee Director).

Mike Ashley, Non-executive Director

Mike joined the Board as a non-executive Director in September 2013. He was formerly Head of Quality and Risk Management for KPMG Europe LLP (ELLP), which forms part of the KPMG global network, where his responsibilities included the management of professional risks and quality control. He was a member of the ELLP Board and was also KPMG UK’s designated Ethics Partner. Mike has over 20 years’ experience as an audit partner, during which he was the lead audit partner for several large financial services groups, most recently HSBC Holdings and Standard Chartered PLC, and also for the Bank of England. Mike has an in depth understanding of auditing and the associated regulatory issues, with specific experience of large, global banks. Mike’s other current principal external appointments are Institute of Chartered Accountants in England and Wales’ Ethics Standards Committee (Member), HM Treasury’s Audit Committee (Member), European Financial Reporting Advisory Group’s Technical Expert Group (Vice Chair), Charity Commission (Board Member) and Government Internal Audit Agency (Chairman).

Tim Breedon, Non-executive Director

Tim was appointed to the Board as a non-executive Director in November 2012. Tim held a number of roles at Legal & General Group plc (L&G) before joining its board as Group Director (Investments) and becoming Group Chief Executive. He was later an adviser to L&G, primarily with responsibilities in connection with Solvency II. Tim was a Director of the Association of British Insurers (ABI), and also served as its Chairman. He was also Chairman of the UK Government’s non-bank lending taskforce, an industry-led taskforce that looked at the structural and behavioural barriers to the development of alternative debt markets in the UK. Tim was a director of the Financial Reporting Council and was on the board of the Investment Management Association. Tim has over 25 years of experience in financial services and has extensive knowledge and experience of regulatory and government relationships. He brings to the Board the experience and knowledge of leading a financial services company, combined with an understanding of the UK and EU regulatory environment and risk management. His customer focus and understanding of investor issues, gained both at L&G and the ABI, is of particular relevance to Barclays. Tim’s other current principal external appointments are Ministry of Justice (Non-executive Director) and Marie Curie Cancer Care (Trustee).

Crawford Gillies, Non-executive Director

Crawford joined the Board as a non-executive Director in May 2014. Crawford has over three decades of business and management experience, initially with Bain & Company, a firm of international management consultants, where he was Managing Director Europe from 2001 to 2005. While at Bain he worked with major companies in the UK, Continental Europe and North America across multiple sectors. Since 2007 he has been on the board of Standard Life plc, where he has chaired the Remuneration Committee. He was Chairman of the law firm Hammonds, now Squire Sanders (2006 - 2009), has chaired Control Risks Group Holdings Ltd since 2007 and chaired Touch Bionics (2006 - 2011), an innovative medical device company. He joined the board of MITIE Group PLC in 2012. He has also held public sector posts in England and Scotland. He was an independent member of the Department of Trade & Industry (2002 - 2007) and chaired its Audit & Risk Committee (2003 - 2007). He is currently Chairman of Scottish Enterprise and he is a former Chairman of the Confederation of British Industry in London.

 

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Reuben Jeffery III, Non-executive Director

Reuben joined the Board in July 2009 as a non-executive Director. He is currently CEO, President and a director of Rockefeller & Co Inc. and Rockefeller Financial Services Inc. Reuben served in the US government as Under Secretary of State for Economic, Energy and Agricultural Affairs, as Chairman of the Commodity Futures Trading Commission and as a special assistant to the President on the staff of the National Security Council. Before his government service, Reuben spent 18 years at Goldman, Sachs & Co where he was managing partner of Goldman Sachs in Paris and led the firm’s European Financial Institutions Group in London. Prior to joining Goldman Sachs, Reuben was a corporate attorney with Davis Polk & Wardwell. Reuben has a broad range of financial services experience, particularly investment banking, and in addition brings extensive insight into the US political and regulatory environment. Reuben’s other current principal external appointments are International Advisory Council of the China Securities Regulatory Commission (Member), Advisory Board of Towerbrook Capital Partners LP (Member), Financial Services Volunteer Corps (Director) and the International Advisory Committee of J Rothschild Capital Management.

Wendy Lucas-Bull, Non-executive Director

Wendy was appointed to the Board as a non-executive Director in September 2013. She is currently Chairman of Barclays Africa Group Limited (formerly Absa Group Limited), one of the largest financial services groups in Africa and majority owned by Barclays. She previously served as an Executive Director of Rand Merchant Bank and became Chief Executive of FirstRand Ltd’s retail businesses following the merger of Rand Merchant Bank and First National Bank. She has held senior Board positions at the Development Bank of Southern Africa, the South African Financial Markets Advisory Board, Eskom, Aveng Ltd and Nedbank Group Limited. Wendy has also held positions on the boards of Telkom SA, Alexander Forbes Ltd, Dimension Data PLC and Anglo American Platinum Ltd. Wendy’s extensive experience provides the Board with valuable retail, commercial, asset management and investment banking expertise. Her widespread experience stems for board level positions in South African banks, having led some of South Africa’s blue chip companies, most notably as CEO of one of the largest retail banks in South Africa, serving as a senior executive of one of the major investment banks in South Africa, as well as providing consultancy services to the largest banks, financial exchanges and insurers in South Africa and internationally. As a CEO Wendy has a track record of successful financial turnaround and cultural transformation of a major South African bank. Her in-depth knowledge of banking in Africa also provides an invaluable insight into banking in the region. Wendy has led or participated in a number of conduct related consultations throughout her career, and such knowledge and experience will contribute greatly towards the discussion of culture at Barclays.

John McFarlane, Non-executive Director

John was appointed to the Board as a non-executive Director in January 2015. John is currently Chairman of Aviva plc, having joined the Aviva Board in September 2011 and becoming Chairman in July 2012. He is also Chairman of FirstGroup plc and a non-executive Director of the Westfield Group and Old Oak Holdings Ltd. Mr McFarlane has a strong track record as a CEO and subsequently as a Chairman and brings to Barclays extensive experience of investment, corporate and retail banking, as well as insurance, strategy, risk and cultural change. Mr McFarlane served as Chief Executive Officer of Australia and New Zealand Banking Group (ANZ) from 1997 to 2007 and prior to that was a group Executive Director at Standard Chartered. He has also held senior positions at Citicorp, including as Managing Director of Citicorp Investment Bank and later head of Citicorp and Citibank in the UK and Ireland. His past non-executive directorships include Royal Bank of Scotland Group and Capital Radio.

Tushar Morzaria, Group Finance Director, Executive Director

Tushar joined the Board and Executive Committee of Barclays in October 2013 as Group Finance Director. Prior to this, he was CFO, Corporate and Investment Bank at JP Morgan Chase, a role he held on the merger of the investment bank and the wholesale treasury/security services business at JP Morgan. Prior to the merger, he was CFO of the investment bank and held other various roles during his career at JP Morgan. Tushar qualified as an accountant at Coopers and Lybrand Deloitte and for most of his career he has worked in investment banking, having held various roles at SG Warburg, JP Morgan and Credit Suisse. Tushar has over 20 years of strategic financial management experience, which will prove invaluable in his role as Group Finance Director.

Dambisa Moyo, Non-executive Director

Dambisa joined the Board in May 2010 as a non-executive Director. She is an international economist and commentator on the global economy, with a background in financial services. After completing a PhD in Economics, she worked for Goldman Sachs in the debt capital markets, hedge funds coverage and global macroeconomics teams. Dambisa has also worked for the World Bank and formerly served as a non-executive Director of Lundin Petroleum AB (publ). Dambisa’s background as an economist, in particular her knowledge and understanding of global macroeconomic issues and African economic, political and social issues, provides an important contribution to the Board’s discussion of Barclays’ business and citizenship strategy. Dambisa’s other current principal external appointments are as Non-executive Director of SABMiller PLC and Barrick Gold Corporation.

Frits van Paasschen, Non-executive Director

Frits was appointed to the Board as a non-executive Director in August 2013. Frits is an experienced Director and Chief Executive Officer. He is the former CEO and President of Starwood Hotels and Resorts Worldwide Inc, one of the world’s largest hotel companies. He served as a non-executive Director for two NYSE-listed companies, Jones Apparel Group and Oakley. He previously served as the CEO and President of Coors Brewing Company and has held various senior management positions with Nike, Inc. and Disney Consumer Products.

 

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Frits’ extensive global and commercial experience and role as a CEO of an international business provides valuable strategic insight. In particular, his experience in developing and marketing brands, and a broad knowledge of enhancing business performance and the customer experience in a retail environment, is highly beneficial to many aspects of Barclays’ business.

Sir Michael Rake. Non-executive Director

Sir Michael joined the Board in January 2008 as a non-executive Director. He was appointed Senior Independent Director in October 2011 and Deputy Chairman in July 2012. Sir Michael spent over 30 years with KPMG, where he was Senior Partner of the UK firm and Chairman of KPMG International. Sir Michael is Chairman of BT Group plc and was previously Chairman of the UK Commission for Employment and Skills, Chairman of Business in the Community, Chairman of easyJet plc and a director of the Financial Reporting Council. Sir Michael has substantial financial and commercial experience gained in the UK, Continental Europe and the Middle East. He also has significant experience, both as Chairman and a board member, of listed companies. Sir Michael’s Other current principal external appointments Confederation of British Industry (President) and McGraw-Hill Financial, Inc (Director).

Diane de Saint Victor, Non-executive Director

Diane was appointed as a non-executive Director in March 2013. She is currently General Counsel and Company Secretary and a member of the Group Executive Committee of ABB Limited, the publicly listed international power and automation technologies company based in Switzerland. Her responsibilities include Head of Legal and Integrity Group. She was formerly Senior Vice President and General Counsel of The Airbus Group, formerly EADS Group, the European aerospace and defence company. Diane’s legal experience and her knowledge of regulatory and compliance matters allows her to provide a unique perspective to the Board and its Committees. Diane’s other current principal external appointment is as a Member of the Advisory Board of The World Economic Forum’s Davos Open Forum.

Sir John Sunderland, Non-executive Director

Sir John joined the Board as a non-executive Director in June 2005. He has extensive business and board level experience, having spent forty years with Cadbury Schweppes PLC, where he became Chief Executive and subsequently Chairman. Sir John has significant experience as a director of UK listed companies, and has also held a number of similar positions in trade and professional bodies, including President of the Confederation of British Industry and President of the Chartered Management Institute. Sir John is Chairman of Merlin Entertainments Group plc and was formerly a director of the Financial Reporting Council. In addition to his board level experience, Sir John brings extensive experience and knowledge of retailing and brand marketing. Sir John’s other current principal external appointments are AFC Energy plc (Non-executive Director), Reading University Council (Governor), Aston University (Chancellor) and Cambridge Education Group Limited (Chairman).

Steve Thieke, Non-executive Director

Steve was appointed to the Board as a non-executive Director in January 2014. He has four decades of experience in financial services, both in regulation and investment banking. Steve worked for the Federal Reserve Bank of New York for 20 years, where he held several senior positions in credit and capital market operations and banking supervision and later he became a non-executive director at the FSA. He has also held senior roles in investment banking and risk management with JP Morgan, where he spent ten years. He was Head of the Fixed Income Division, co-Head of Global Markets, President and Chairman of JP Morgan Securities, Inc. and Head of the Corporate Risk Management Group, retiring from JP Morgan in 1999. He has significant board level experience, both in executive and non-executive roles, including spending seven years as a director of Risk Metrics Group, where latterly he served as Chairman of the board, and nine years on the board of PNC Financial Services Corp.

Group Executive Committee

Antony Jenkins, Chief Executive, Executive Director

See above for full biography.

Tushar Morzaria, Group Finance Director, Executive Director

See above for full biography.

Robert Le Blanc, Chief Risk Officer

Robert joined Barclays in 2002 as Head of Risk Management for the Investment Bank, and has been the Chief Risk Officer for the Group since 2004. Prior to joining Barclays, Robert spent most of his career at JP Morgan in the capital markets, fixed income, emerging market and credit and risk management areas in New York and London. Robert has been a member of the Group Executive Committee since November 2009.

Michael Harte, Chief Operations and Technology Officer

Michael joined Barclays in July 2014, becoming a member of the Group Executive Committee. Before joining Barclays, Michael was Group Executive of Enterprise Services and Chief Information Officer at the Commonwealth Bank of Australia Group (CBA), where he was responsible for group-wide retail and institutional banking systems and operations, brokerage, wealth and asset management systems. Together with his team, Michael transformed CBA into one of the most respected, customer focused and technology leading banks in the world: one of only 8 AA rated banks and top ten by market capitalisation. In his earlier career, Michael held the posts of Executive Vice President, Chief Information Officer, IT and Operations and Technology posts at PNC Financial Services (2001-2006, New York) and at Citigroup (1996-2001, London and New York).

Bob Hoyt, Group General Counsel

Bob joined Barclays as Group General Counsel designate in October 2013 and became Group General Counsel in November 2013, responsible for all legal issues across Barclays. Bob is a member of Barclays’ Executive Committee. Bob joined Barclays from PNC Financial Services Group, where he was General Counsel and Chief Regulatory Affairs Officer, having previously served as Deputy General Counsel since 2009. Prior to then he held roles in public service as General Counsel at the US Department of the Treasury 2006-2009, and as Special Assistant and Associate Counsel at the White House. Bob spent much of the early part of his career in private practice, specialising in securities, litigation and corporate.

 

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Tom King, Chief Executive, Investment Bank

Tom King is Chief Executive of Corporate and Investment Banking at Barclays. He is a member of Barclays’ Executive Committee. Tom joined Barclays in December 2009 as Head of Investment Banking Division (IBD), EMEA, and Co-Head of Global Corporate Finance. In April 2012, he assumed additional responsibility for jointly overseeing the newly combined Corporate Finance/M&A team. He was appointed Deputy Head of IBD in October 2012, and became Head of IBD in March 2013. Tom was appointed Co-Chief Executive of Corporate and Investment Banking on 1 May 2013 and joined the Barclays Executive Committee, in addition to his Investment Banking responsibilities. Previously, Tom was at Citigroup where he was most recently Head of Banking for EMEA. Tom joined Salomon Brothers in 1989 and moved to London in 1999 when he was appointed Global Head of Mergers & Acquisitions. He was named Head of EMEA Investment Banking in 2005, and Head of the combined Corporate and Investment Banking business in 2008.

Irene McDermott Brown, Group Human Resources Director

Irene is Barclays’ Group Human Resources Director. After six years with BP, she joined Barclays in 2011 as HR Director for the Functions, becoming Barclays’ Interim Group Human Resources Director in October 2012 before being formally appointed to the role in July 2013, when she also joined the Group Executive Committee. Prior to BP, Irene held senior roles at Cable & Wireless and Barclays Private Clients, as well as leading her own consultancy business.

Jonathan Moulds, Group Chief Operating Officer

Jonathan joined Barclays in February 2015 as Group Chief Operating Officer for Barclays. He is a member of the Executive Committee. Jonathan began his career in Finance with Chicago Research and Trading, which was acquired by Bank of America. Jonathan remained at Bank of America Merrill Lunch for over 15 years until 2012 holding a number of positions including Head of Latin America, Canada and Europe, Head of Risk for Global Markets and Head of International Global Markets. Latterly, Jonathan was Head of Bank of America Merrill Lynch Europe and CEO of Merrill Lynch International. More broadly, Jonathan has been a Board member for bodies such as the Association of Financial Markets, Europe and the Global Markets Association. Jonathan is a renowned patron of the arts and was appointed CBE in the 2015 New Year Honours list for his services to philanthropy.

Maria Ramos, Chief Executive, Absa Group and Barclays Africa

Maria is the Chief Executive Officer of Barclays Africa Group Limited (formerly Absa), which is majority owned by Barclays. Prior to joining Absa on 1 March 2009, she was the Group Chief Executive of Transnet Limited, the state-owned South African freight transport and logistics service provider. This was after a term as Director-General of the National Treasury of South Africa (formerly the Department of Finance). She currently serves on the executive committees of the World Economic Forum’s International Business Council and Business Leadership South Africa. Maria joined the Group Executive Committee in November 2009.

Mike Roemer, Group Head of Compliance

Mike joined Barclays in January 2011 as the Head of Barclays Internal Audit, before becoming Group Head of Compliance in January 2014 and joining the Group Executive Committee. Mike joined Barclays from CIT Group where he was the Chief Auditor, reporting directly to the Board Audit Committee and having global responsibility for CIT Group’s internal audit function. Mike has 27 years’ experience in internal audit, with 23 years of that time spent at JPMorgan Chase. Mike currently serves on the Advisory Board of the Make-A-Wish Foundation of Metro New York where he is Audit Committee Chair. He also serves on the Board of Directors of Ronald McDonald House of New York, Inc. where he is also Audit Committee Chair.

Valerie Soranno Keating, CEO, Barclaycard

Valerie is the CEO of Barclaycard and has been a member of the Group Executive Committee since October 2012. She is a member of the Board of Visa Europe, chairs the Barclays Global Payments Council and is Chairman of the Board of Barclays Bank Delaware. She joined Barclaycard in 2009 after a 16 year career at American Express where she was a member of the Global Management team and held a variety of senior executive positions.

Ashok Vaswani, CEO, Personal and Corporate Banking

Ashok is responsible for the Personal and Corporate Banking division. Ashok joined Barclays in 2010, managing the credit card business across the UK, Europe and the Nordics, becoming Chairman of Entercard. He went on to manage Barclays in Africa and his most recent role is CEO for Retail and Business Banking, covering Europe, Africa and the UK. Prior to Barclays, Ashok was a Partner at Brysam Global Partners, a New York City based private equity firm focused on building retail financial service businesses in emerging markets. Ashok spent 20 years with Citigroup working in Asia, Middle East, Central Asia, Europe and North America, his last position being CEO of the Global Consumer Bank in Asia Pacific. Ashok is on the advisory board of S. P. Jain Institute of Management and has served on the advisory board of Insead Singapore and Visa Asia Pacific. He is founder director of Lend-a-Hand, a non-profit organisation focused on economic development in India. Ashok represents Barclays as a non-executive director on the board of Barclays Africa Group Limited (formerly Absa), having been appointed in February 2013. Ashok has been a member of the Group Executive Committee since October 2012.

 

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Note

a  Please note that these dates are provisional and subject to change.

 

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Shareholder information Useful contact details

 

 

Note

a  Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm Monday to Friday, excluding public holidays.

 

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Summary of Certain Share and Cash Plans and Long-Term Incentive Plans

 

 

Summary of Barclays Group share and cash plans and long-term incentive plans

Barclays operates a number of share and cash plans and long-term incentive plans. The principal plans used for awards made in or, in respect of, the 2014 performance year are shown in the table below. Awards are granted either by the plan trustee or by the Board Remuneration Committee, and are subject to the applicable plan rules. Barclays has a number of employee benefit trusts which operate with these plans. In some cases the trustee purchases shares in the market to satisfy awards; in others, new issue or treasury shares may be used to satisfy awards where the appropriate shareholder approval has been obtained.

 

 

Summary of principal share and cash plans and long-term incentive plans

 

 

Name of plan		Eligible employees		Executive Directors eligible		Delivery		Design details
Share Value Plan (SVP)		All employees (including executive Directors)		Yes		Deferred share bonus typically released in annual instalments over a three year period, dependent on future service and subject to malus provisions		–		Plan typically used for mandatory deferral of a proportion of bonus into Barclays shares where bonus is above a threshold (set annually by the Committee)
								–		This plan typically works in tandem with the CVP
								–		Deferred share bonus vests over three years in equal annual instalments dependent on future service
								–		Vesting is subject to malus, and suspension provisions and the other provisions of the rules of the plan
								–		Dividend equivalents may be released based on the number of shares under award that are released
								–		On cessation of employment, eligible leavers normally remain eligible for release (on the scheduled release dates) subject to the Committee and/or trustee discretion. For other leavers, awards will normally lapse
								–		On change of control, awards may vest at the Committee’s and/or trustee’s discretion
								–		For SVP awards made in 2015 to material Risk Takers (“MRTs”), a holding period of 6 months will apply to shares (after tax) on release
Cash Value Plan (CVP)		All employees (excluding executive Directors)		No		Deferred cash bonus paid in annual instalments over a three year period, dependent on future service and subject to malus provisions		–		Plan typically used for mandatory deferral of a proportion of bonus where bonus is above a threshold (set annually by the Committee)
								–		This plan typically works in tandem with the SVP
								–		Deferred cash bonus vests over three years in equal annual instalments dependent on future service
								–		Vesting is subject to malus, suspension provisions and the other provisions of the rules of the plan
								–		Participants may be awarded a service credit of 10% of the initial value of the award at the same time as the final instalment is paid (provided they are in active employment)
								–		Change of control and leaver provisions are as for SVP
Barclays LTIP		Selected employees (including executive Directors)		Yes		Awards over Barclays shares or over other capital instruments, subject to risk-adjusted performance conditions and malus provisions		–		Awarded on a discretionary basis with participation reviewed by the Committee
								–		Awards only vest if the risk-adjusted performance conditions are satisfied over a three year period
								–		Vesting is subject to malus, suspension provisions and the other provisions of the rules of the plan
								–		For awards made for the 2013-2015 performance period, 50% of any Barclays shares released (after payment of tax) will be subject to an additional two year holding period
								–		For awards made for the 2014-2016 performance period onwards, any Barclays shares released (after payment of tax) will be subject to an additional two year holding period

 

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Summary of Certain Share and Cash Plans and Long-Term Incentive Plans

 

 

								–		On cessation of employment, eligible leavers normally remain eligible for release (on the scheduled release dates) pro-rated for time and performance. For other leavers, awards will normally lapse
								–		On change of control, awards may vest at the Committee’s discretion
Business Unit Long-Term Incentive Plans		Selected senior employees (excluding executive Directors) within each business unit		No		Design varies by business unit. Awards made after at least three years, with additional deferral after this period. Awards typically made 50% in cash and 50% in Barclays share awards		–		Participation on a discretionary basis
								–		Risk-adjusted performance conditions vary by business unit to reflect applicable business strategy
								–		Minimum plan duration is between three and five years (depending on plan)
								–		Award is subject to malus provisions and provisions of the plan rules
								–		Participation may cease if the participant leaves Barclays other than for eligible leaver reasons
								–		No new invitations to participate under business unit long-term incentive plans are expected to be made in 2015
Sharesave		All employees in the UK and Ireland		Yes		Options over Barclays shares at a discount of 20%, with shares or cash value of savings delivered after three to five years		–		HMRC approved in the UK and approved by the Revenue Commissioners in Ireland
								–		Opportunity to purchase Barclays shares at a discount price (currently a 20% discount) set on award date with savings made over three, five or seven year term
								–		Maximum individual savings of £250 per month (€315 in Ireland)
								–		On cessation of employment, eligible leavers may exercise options and acquire shares to the extent of their savings for six months
								–		On change of control, participants may exercise options and acquire shares to the extent of their savings for six months
Sharepurchase		All employees in the UK		Yes		Barclays shares and dividend/matching shares held in trust for three to five years		–		HMRC approved plan
								–		Participants may purchase up to £1,500 of Barclays shares each tax year
								–		Barclays matches the first £600 of shares purchased by employees on a one for one basis for each tax year
								–		Dividends received are awarded as additional shares
								–		Purchased shares may be withdrawn at any time (though if removed prior to three years from award, the corresponding matching shares are forfeited)
								–		On cessation of employment, participants must withdraw shares
								–		Depending on reason for and timing of leaving, matching shares may be forfeited
								–		On change of control, participants are able to instruct the Sharepurchase trustee how to act or vote on their behalf
Global Sharepurchase		Employees in certain non-UK jurisdictions		Yes		Barclays shares and dividend/matching shares held in trust for three to five years		–		Global Sharepurchase is an extension of the Sharepurchase plan offered in the UK
								–		Operates in substantially the same way as Sharepurchase (see above)

 

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Commitments and contractual obligations

Commercial commitments include guarantees, contingent liabilities and standby facilities.

 

Commercial commitments			Amount of commitment expiration per period
			Less than one year £m				Between     one to three years £m				Between     three to five years £m				After five years £m				Total  amounts      committed  £m
As at 31 December 2014
Guarantees and letters of credit pledged as collateral security			14,275				205				23				44				14,547
Performance guarantees, acceptances and endorsements			5,414				260				61				1,042				6,777
Documentary credits and other short-term trade related transactions			976				115				-				-				1,091
Forward starting reverse repurchase agreements			13,856				-				-				-				13,856
Standby facilities, credit lines and other commitments			269,796				4,515				1,847				157				276,315
As at 31 December 2013
Guarantees and letters of credit pledged as collateral security			14,297				637				100				192				15,226
Performance guarantees, acceptances and endorsements			5,158				400				38				362				5,958
Documentary credits and other short-term trade related transactions			692				88				-				-				780
Forward starting reverse repurchase agreements			19,936				-				-				-				19,936
Standby facilities, credit lines and other commitments			250,404				2,368				1,405				678				254,855
Contractual obligations include debt securities, operating lease and purchase obligations.
Contractual obligations			Payments due by period
			Less than one year £m				Between one to three years £m				Between three to five years £m				After five years £m				Total  £m
As at 31 December 2014
Long-term debta			46,724				20,820				15,690				32,735				115,969
Operating lease obligations			444				687				566				2,036				3,733
Purchase obligations			511				371				153				208				1,243
Total			47,679				21,878				16,409				34,979				120,945
As at 31 December 2013
Long-term debta			49,873				21,716				14,558				33,930				120,077
Operating lease obligations			601				738				606				2,666				4,611
Purchase obligations			584				246				35				51				916
Total			51,058				22,700				15,199				36,647				125,604

Net cash flows from derivatives used to hedge long-term debt amount to £6.3bn (2013: £5bn).

Further information on the contractual maturity of the Group’s assets and liabilities on page 173.

 

Notes

a	Long-term debt has been prepared to reflect cash flows on an undiscounted basis, which includes interest payments.

 

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Securities

 

Securities at fair value			2014				2013				2012
As at 31 December			£m				£m				£m
Investment securities – available for sale
United Kingdom government			18,849				20,580				13,131
Other government			41,700				37,258				33,039
Other public bodies and US Agencies			6,034				8,890				4,027
Mortgage and asset backed securities			1,230				1,918				4,601
Bank and building society certificates of deposit			38				42				410
Corporate and other issuers			17,688				22,610				19,463
Debt securities			85,539				91,298				74,671
Equity securities			527				458				438
Investment securities – available for sale			86,066				91,756				75,109
Other securities – held for trading
United Kingdom government			7,450				10,361				11,144
Other government			29,720				40,690				58,876
Other public bodies and US Agencies			9,879				5,820				19,265
Mortgage and asset backed securities			7,165				10,962				11,318
Bank and building society certificates of deposit			240				182				4
Corporate and other issuers			11,544				16,545				15,701
Debt securities			65,998				84,560				116,308
Equity securities			44,576				42,659				24,519
Other securities – held for trading			110,574				127,219				140,827

Investment debt securities include government securities held as part of the Group’s treasury management portfolio for asset and liability, liquidity and regulatory purposes and are for use on a continuing basis in the activities of the Group. In addition, the Group holds as investments listed and unlisted corporate securities. Bank and building society certificates of deposit are freely negotiable and have original maturities of up to five years, but are typically held for shorter periods.

 

 

Maturities and yield of available for sale debt securities
As at 31 December 2014
			Maturing with one year								Maturing one but within five years								Maturing after five but within ten years								Maturing after ten years								Total
			Amount				Yield				Amount				Yield				Amount				Yield				Amount				Yield				Amount				Yield
			£m				%				£m				%				£m				%				£m				%				£m				%
Government			2,128				2.6%				24,142				1.4%				19,013				1.8%				15,266				2.3%				60,549				1.8%
Other public bodies and US Agencies			862				0.8%				2,569				1.3%				2,279				2.2%				324				2.2%				6,034				1.6%
Other issuers			5,084				2.0%				10,777				2.5%				2,286				2.2%				809				1.4%				18,956				2.3%
Total book value			8,074				2.0%				37,488				1.7%				23,578				1.9%				16,399				2.2%				85,539				1.9%

The yield for each range of maturities is calculated by dividing the annualised interest income prevailing at 31 December 2014 by the fair value of securities held at that date.

The annualised interest is now calculated by applying the coupon rate to the notional for all securities held at year end, previously the interest income earned in the year was applied as a proxy.

 

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Average balance sheet

Average balances are based upon monthly averages.

 

Assets													2014
					Average  balance				Interest     presented within net interest income				Interest presented     elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Loans and advances to banks		UK			48,162				377				-				377				0.8
Loans and advances to banks		Non-UK			47,375				262				-				262				0.6
Loans and advances to banksa		Total			95,537				639				-				639				0.7
Loans and advances to customers		UK			272,463				8,779				74				8,853				3.2
Loans and advances to customers		Non-UK			137,122				5,898				184				6,082				4.4
Loans and advances to customersa		Total			409,585				14,677				258				14,935				3.6
Available for sale investments		UK			74,868				1,323				-				1,323				1.8
Available for sale investments		Non-UK			11,130				292				-				292				2.6
Available for sale investments		Total			85,998				1,615				-				1,615				1.9
Reverse repurchase agreements		UK			155,170				31				589				620				0.4
Reverse repurchase agreements		Non-UK			127,670				55				287				342				0.3
Reverse repurchase agreementsb		Total			282,840				86				876				962				0.3
Other interest incomec					-				346				-				346				-
Total interest earning assets not at fair value through P&L					873,960				17,363				1,134				18,497				2.1
Less interest expense					-				(5,283)				(980)				(6,263)				-
Net interest					873,960				12,080				154				12,234				1.4
Interest earning assets at fair value through P&L		UK			57,070
Interest earning assets at fair value through P&L		Non-UK			56,477
Interest earning assets at fair value through P&L		Total			113,547
Total interest earning assets					987,507
Impairments					(6,770)
Non-interest earning assets					515,020
Total					1,495,757
Percentage of total average interest earning assets in offices outside the UK					38%

Notes

a

Loans and advances to banks and customers include all doubtful lendings, including non-accrual lendings. Interest receivable on such lendings has been included to the extent to  which either cash payments have been received or interest has been accrued in accordance with the income recognition policy of the Group.

b

Average balances for reverse repurchase agreements and cash collateral on securities borrowed have been stated on a gross basis prior to any offsetting to provide a more meaningful  comparison to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the  recognised amounts and there is an intention to settle on a net basis or to realise an asset and liability simultaneously.

c	Other interest income principally includes interest income relating to hedging activity.

 

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Assets													2013
					Average  balance				Interest presented within net interest income				Interest presented elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Loans and advances to banks		UK			51,185				383				35				418				0.8
Loans and advances to banks		Non-UK			61,204				304				1				305				0.5
Loans and advances to banksa		Total			112,389				687				36				723				0.6
Loans and advances to customers		UK			271,111				9,098				148				9,246				3.4
Loans and advances to customers		Non-UK			142,494				6,515				254				6,769				4.8
Loans and advances to customersa		Total			413,605				15,613				402				16,015				3.9
Available for sale investments		UK			73,212				1,346				-				1,346				1.8
Available for sale investments		Non-UK			14,802				458				-				458				3.1
Available for sale investments		Total			88,014				1,804				-				1,804				2.0
Reverse repurchase agreements		UK			193,303				8				715				723				0.4
Reverse repurchase agreements		Non-UK			132,488				33				342				375				0.3
Reverse repurchase agreementsb		Total			325,791				41				1,057				1,098				0.3
Other interest incomec					-				170				-				170				-
Total interest earning assets not at fair value through P&L					939,799				18,315				1,495				19,810				2.1
Less interest expense					-				(6,715)				(1,194)				(7,909)				-
Net interest					939,799				11,600				301				11,901				1.3
Interest earning assets at fair value through P&L		UK			65,534
Interest earning assets at fair value through P&L		Non-UK			75,763
Interest earning assets at fair value through P&L		Total			141,297
Total interest earning assets					1,081,096
Impairments					(8,009)
Non-interest earning assets					575,219
Total					1,648,306
Percentage of total average interest earning assets in offices outside the UK					39%

 

Notes

a

Loans and advances to banks and customers include all doubtful lendings, including non-accrual lendings. Interest receivable on such lendings has been included to the extent to  which either  cash payments have been received or interest has been accrued in accordance with the income recognition policy of the Group.

b

Average balances for reverse repurchase agreements and cash collateral on securities borrowed have been stated on a gross basis prior to any offsetting to provide a more meaningful  comparison to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the  recognised  amounts and there is an intention to settle on a net basis or to realise an asset and liability simultaneously.

c	Other interest income principally includes interest income relating to hedging activity.

 

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Assets					2012
					Average  balance				Interest presented within net interest income				Interest presented       elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Loans and advances to banks		UK			41,204				238				58				296				0.7
Loans and advances to banks		Non-UK			112,333				391				-				391				0.3
Loans and advances to banksa		Total			153,537				629				58				687				0.4
Loans and advances to customers		UK			274,381				9,185				176				9,361				3.4
Loans and advances to customers		Non-UK			143,325				7,263				50				7,313				5.1
Loans and advances to customersa		Total			417,706				16,448				226				16,674				4.0
Available for sale investments		UK			50,759				1,171				-				1,171				2.3
Available for sale investments		Non-UK			17,900				565				-				565				3.2
Available for sale investments		Total			68,659				1,736				-				1,736				2.5
Reverse repurchase agreements		UK			196,046				22				918				940				0.5
Reverse repurchase agreements		Non-UK			118,378				-				349				349				0.3
Reverse repurchase agreementsb		Total			314,424				22				1,267				1,289				0.4
Other interest incomec					-				377				-				377				-
Total interest earning assets not at fair value through P&L					954,326				19,212				1,551				20,763				2.2
Less interest expense					-				(7,558)				(1,581)				(9,139)				-
Net interest					954,326				11,654				(30)				11,624				1.2
Interest earning assets at fair value through P&L		UK			70,489
Interest earning assets at fair value through P&L		Non-UK			99,355
Interest earning assets at fair value through P&L		Total			169,844
Total interest earning assets					1,124,170
Impairments					(9,151)
Non-interest earning assets					643,736
Total					1,758,755
Percentage of total average interest earning assets in offices outside the UK					44%

 

Notes

a

Loans and advances to banks and customers include all doubtful lendings, including non-accrual lendings. Interest receivable on such lendings has been included to the extent to  which either cash payments have been received or interest has been accrued in accordance with the income recognition policy of the  Group.

b

Average balances for reverse repurchase agreements and cash collateral on securities borrowed have been stated on a gross basis prior to any offsetting to provide a more meaningful  comparison to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the  recognised amounts and there is an intention to settle on a net basis or to realise an asset and liability  simultaneously.

c	Other interest income principally includes interest income relating to hedging activity.

 

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Liabilities					2014
					Average  balance				Interest presented within net interest income				Interest presented       elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Deposits by banks		UK			41,931				89				-				89				0.2
Deposits by banks		Non-UK			15,388				110				2				112				0.7
Deposits by banks		Total			57,319				199				2				310				0.4
Customer accounts		UK			231,792				744				6				750				0.3
Customer accounts		Non-UK			92,337				729				230				959				1.0
Customer accounts		Total			324,129				1,473				236				1,709				0.5
Debt securities in issue		UK			51,218				1,315				82				1,397				2.7
Debt securities in issue		Non-UK			38,515				607				54				661				1.7
Debt securities in issue		Total			89,733				1,922				136				2,058				2.3
Subordinated liabilities		UK			19,575				1,541				-				1,541				7.9
Subordinated liabilities		Non-UK			1,151				81				-				81				7.0
Subordinated liabilities		Total			20,726				1,622				-				1,622				7.8
Repurchase agreements		UK			166,224				64				376				440				0.3
Repurchase agreements		Non-UK			126,347				9				230				239				0.2
Repurchase agreementsa		Total			292,571				73				606				679				0.2
Other interest expenseb					-				(6)								(6)				-
Total interest bearing liabilities not at fair value through P&L					784,478				5,283				980				6,263				0.8
Interest bearing liabilities at fair value through P&L		UK			37,722
Interest bearing liabilities at fair value through P&L		Non-UK			28,755
Interest bearing liabilities at fair value through P&L		Total			66,477
Total interest bearing liabilities					850,955
Interest free customer deposits		UK			65,294
Interest free customer deposits		Non-UK			15,033
Interest free customer deposits		Total			80,327
Other non-interest bearing liabilities					498,675
Shareholders’ equity					65,800
Total					1,495,757
Percentage of total average interest bearing liabilities in offices outside the UK					36%

 

Notes

a

Average balances for repurchase agreements and cash collateral on securities lent have been stated on a gross basis prior to any offsetting to provide a more meaningful comparison  to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the recognised amounts  and there is an intention to settle on a net basis or to realise an asset and liability simultaneously.

b	Other interest expense principally includes interest expense relating to hedging activity.

 

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 Additional information

 Additional financial disclosure

 

 

Liabilities					2013
					Average  balance				Interest presented within net interest income				Interest presented       elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Deposits by banks		UK			52,518				78				52				130				0.2
Deposits by banks		Non-UK			17,308				123				1				124				0.7
Deposits by banks		Total			69,826				201				53				254				0.4
Customer accounts		UK			228,046				1,285				74				1,359				0.6
Customer accounts		Non-UK			94,640				1,371				198				1,569				1.7
Customer accounts		Total			322,686				2,656				272				2,928				0.9
Debt securities in issue		UK			62,019				1,523				39				1,562				2.5
Debt securities in issue		Non-UK			42,114				653				47				700				1.7
Debt securities in issue		Total			104,133				2,176				86				2,262				2.2
Subordinated liabilities		UK			21,764				1,462				-				1,462				6.7
Subordinated liabilities		Non-UK			1,406				110				-				110				7.8
Subordinated liabilities		Total			23,170				1,572				-				1,572				6.8
Repurchase agreements		UK			205,170				59				428				487				0.2
Repurchase agreements		Non-UK			149,651				68				355				423				0.3
Repurchase agreementsa		Total			354,821				127				783				910				0.3
Other interest expenseb					-				(17)				-				(17)				-
Total interest bearing liabilities not at fair value through P&L					874,636				6,715				1,194				7,909				0.9
Interest bearing liabilities at fair value through P&L		UK			51,498
Interest bearing liabilities at fair value through P&L		Non-UK			30,333
Interest bearing liabilities at fair value through P&L		Total			81,831
Total interest bearing liabilities					956,467
Interest free customer deposits		UK			58,438
Interest free customer deposits		Non-UK			13,784
Interest free customer deposits		Total			72,222
Other non-interest bearing liabilities					558,116
Shareholders’ equity					61,501
Total					1,648,306
Percentage of total average interest bearing liabilities in offices outside the UK					35%

 

Notes

a

Average balances for repurchase agreements and cash collateral on securities lent have been stated on a gross basis prior to any offsetting to provide a more meaningful comparison  to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the recognised amounts  and there is an intention to settle on a net basis or to realise an asset and liability simultaneously.

b	Other interest expense principally includes interest expense relating to hedging activity.

 

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 Additional information

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Liabilities					2012
					Average  balance				Interest presented within net interest income				Interest presented       elsewhere				Total interest				Rate
					£m				£m				£m				£m				%
Deposits by banks		UK			62,810				97				120				217				0.3
Deposits by banks		Non-UK			19,274				160				-				160				0.8
Deposits by banks		Total			82,084				257				120				377				0.5
Customer accounts		UK			208,494				1,069				124				1,193				0.6
Customer accounts		Non-UK			88,623				1,416				-				1,416				1.6
Customer accounts		Total			297,117				2,485				124				2,609				0.9
Debt securities in issue		UK			76,429				1,821				-				1,821				2.4
Debt securities in issue		Non-UK			52,878				1,100				-				1,100				2.1
Debt securities in issue		Total			129,307				2,921				-				2,921				2.3
Subordinated liabilities		UK			21,923				1,508				-				1,508				6.9
Subordinated liabilities		Non-UK			1,345				124				-				124				9.2
Subordinated liabilities		Total			23,268				1,632				-				1,632				7.0
Repurchase agreements		UK			206,648				-				771				771				0.4
Repurchase agreements		Non-UK			167,133				2				566				568				0.3
Repurchase agreementsa		Total			373,781				2				1,337				1,339				0.4
Other interest expenseb					-				261				-				261				-
Total interest bearing liabilities not at fair value through P&L					905,557				7,558				1,581				9,139				1.0
Interest bearing liabilities at fair value through P&L		UK			56,381
Interest bearing liabilities at fair value through P&L		Non-UK			33,059
Interest bearing liabilities at fair value through P&L		Total			89,440
Total interest bearing liabilities					994,997
Interest free customer deposits		UK			52,713
Interest free customer deposits		Non-UK			10,847
Interest free customer deposits		Total			63,560
Other non-interest bearing liabilities					638,581
Shareholders’ equity					61,617
Total					1,758,755
Percentage of total average interest bearing liabilities in offices outside the UK					36%

 

Notes

a

Average balances for repurchase agreements and cash collateral on securities lent have been stated on a gross basis prior to any offsetting to provide a more meaningful comparison  to the related interest income and expense. The Group balance sheet offsets financial assets and liabilities where there is a legally enforceable right to set off the recognised amounts  and there is an intention to settle on a net basis or to realise an asset and liability simultaneously.

b	Other interest expense principally includes interest expense relating to hedging activity.

 

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 Additional information

 Additional financial disclosure

 

 

Changes in total interest – volume and rate analysis

The following tables allocate changes in interest between changes in volume and changes in interest rates for the last two years. Volume and rate variances have been calculated on the movement in the average balances and the change in the interest rates on average interest earning assets and average interest bearing liabilities. Where variances have arisen from changes in both volumes and interest rates, these have been allocated proportionately between the two.

 

Interest income					2014/2013 Change due to increase/(decrease) in:												2013/12 Change due to increase/(decrease) in:
					Total change				Volume				Rate				Total change				Volume				Rate
					£m				£m				£m				£m				£m				£m
Loans and advances to banks		UK			(41)				(24)				(17)				122				78				44
Loans and advances to banks		Non-UK			(43)				(74)				31				(86)				(217)				131
Loans and advances to banks		Total			(84)				(98)				14				36				(139)				175
Loans and advances to customers		UK			(393)				46				(439)				(115)				(112)				(3)
Loans and advances to customers		Non-UK			(687)				(249)				(438)				(544)				(42)				(502)
Loans and advances to customers		Total			(1,080)				(203)				(877)				(659)				(154)				(505)
Available for sale investments		UK			(23)				30				(53)				175				446				(271)
Available for sale investments		Non-UK			(166)				(103)				(63)				(107)				(96)				(11)
Available for sale investments		Total			(189)				(73)				(116)				68				350				(282)
Reverse repurchase agreements		UK			(103)				(150)				47				(217)				(13)				(204)
Reverse repurchase agreements		Non-UK			(33)				(14)				(19)				26				41				(15)
Reverse repurchase agreements		Total			(136)				(164)				28				(191)				28				(219)
Other interest income					176				-				176				(207)				-				(207)
Total interest receivable					(1,313)				(538)				(775)				(953)				(85)				(1,038)
Changes in total interest – volume and rate analysis
Interest expense					2014/2013 Change due to increase/(decrease) in:												2013/2012 Change due to increase/(decrease) in:
					Total change				Volume				Rate				Total change				Volume				Rate
					£m				£m				£m				£m				£m				£m
Deposits by banks		UK			(41)				(24)				(17)				(87)				(32)				(55)
Deposits by banks		Non-UK			(12)				(14)				2				(36)				(15)				(21)
Deposits by banks		Total			(53)				(38)				(15)				(123)				(47)				(76)
Customer accounts		UK			(609)				22				(631)				166				115				51
Customer accounts		Non-UK			(610)				(37)				(573)				153				99				54
Customer accounts		Total			(1,219)				(15)				(1,204)				319				214				105
Debt securities in issue		UK			(165)				(288)				123				(259)				(358)				99
Debt securities in issue		Non-UK			(39)				(61)				22				(400)				(201)				(199)
Debt securities in issue		Total			(204)				(349)				145				(659)				(559)				(100)
Subordinated liabilities		UK			79				(156)				235				(46)				(11)				(35)
Subordinated liabilities		Non-UK			(29)				(19)				(10)				(14)				6				(20)
Subordinated liabilities		Total			50				(175)				225				(60)				(5)				(55)
Repurchase agreements		UK			(47)				(99)				52				(284)				(6)				(278)
Repurchase agreements		Non-UK			(184)				(59)				(125)				(145)				(55)				(90)
Repurchase agreements		Total			(231)				(158)				(73)				(429)				(61)				(368)
Other interest expense					11				-				11				(278)				-				(278)
Total interest payable					(1,646)				(735)				(911)				(1,230)				(458)				(772)

 

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Barclays’ approach to managing risks

Contents

 

 

				Page
Barclays’ approach to managing risks
¡		Risk management strategy, governance and risk culture			340
¡		Management of credit risk			352
¡		Management of counterparty credit risk and credit risk mitigation techniques			363
¡		Management of market risk			367
¡		Management of operational risk			378
¡		Management of funding risk			382
¡		Management of reputational, conduct and environmental risks			387

 

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Barclays’ approach to managing risks

Risk management strategy, governance and risk culture

 

 

 

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Barclays’ approach to managing risks

Risk management strategy, governance and risk culture

 

 

Board oversight and flow of risk related information

 

 

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Barclays’ approach to managing risks

Risk management strategy, governance and risk culture

 

 

 

Reporting and Control

 

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Barclays’ approach to managing risks

Risk management strategy, governance and risk culture

 

 

 

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Measure relevant to strategy and risk		Link between strategy and risk profile
Profit before tax,		Fundamental economic and business indicators, which best describes shareholder focus in terms
Return on equity,		of profitability and ability to use capital resources efficiently.
Return on RWAs
Loan loss rate (LLR)		Describes the credit risk profile and whether impairment is within appetite.
Common Tier 1 and leverage ratios		Monitors capital adequacy in relation to capital plan.
Dividends		Measures the risks of being able to continue paying appropriate dividends.

 

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Barclays’ approach to managing risks

Risk management strategy, governance and risk culture

 

 

The Group-wide stress testing process begins with a detailed scenario setting process, with the FRC and BFRC agreeing the range of scenarios to be tested. The scenarios are designed to be severe but plausible, and relevant to the business. A wide range of macroeconomic parameters are defined (such as GDP, unemployment, house prices, FX and interest rates) which allows the impact of the scenarios across the wide range of products and portfolios to be assessed across the Group.

Businesses prepare detailed MTP business plans which form the baseline for the stress test assessment. The stress test process is detailed and comprehensive, using bottom-up analysis across all of our businesses including both on- and off-balance sheet positions, and combines running statistical models with expert judgement. An overview of the stress testing approach by Principal Risk is provided in the table below. As part of their stress test assessment, businesses are also required to identify potential management actions that could be taken to mitigate the impact of stress and document these within their results.

There is robust governance in place with detailed review of stress testing methodology and results both within businesses (including sign-off by business CROs and CFOs) and by Central functions.

The businesses stress test results are consolidated to form a Group view which is used for tax analysis and by Treasury to assess the stress impact on the Group capital plans. For the latter, capital management actions such as reducing dividends or redeeming certain capital instruments may be considered. The Group also maintains recovery plans which take into consideration actions to facilitate recovery from severe stress or an orderly resolution. These actions are additional to those included in the Group-wide stress testing results.

The overall stress testing results of the Group are presented for review and approval by the FRC and BFRC, and are also shared with the Treasury Committee and the Board.

Summary of methodologies for Group-wide stress testing by risk type:

 

Principal Risk		Stress testing approach
Credit risk		¡		Credit risk impairments: For retail portfolios businesses use regression models to establish a relationship between arrears movements and key macroeconomic parameters such as interest rates and unemployment, incorporating roll-rate analysis to estimate stressed levels of arrears by portfolio. In addition, combination of house price reductions and increased customer drawdowns for revolving facilities leads to higher LGD which also contributes to increased impairment levels. For wholesale portfolios the stress shocks on credit risk drivers (PDs, LGDs and EADs) are primarily calibrated using historical and expected relationships with key macro-economic parameters such as GDP, inflation and interest rates.
		¡		The scenarios include market risk shocks that are applied to determine the market value under stress of contracts that give rise to CCR. Counterparty losses, including from changes to the Credit Valuation Adjustment and from defaults, are modelled based on the impact of these shocks as well as using stressed credit risk drivers (PDs and LGDs). The same approach is used to stress the market value of assets held as available for sale or at fair value in the banking book.
		¡		Credit risk weighted assets: The impact of the scenarios is calculated via a combination of business volumes and similar factors to impairment drivers above, as well as the regulatory calculation and the level of pro-cyclicality of underlying regulatory credit risk models.
Market risk		¡		Trading book losses: All market risk factors on the balance sheet are stressed using specific market risk shocks (and are used for the CCR analysis, above). The severity of the shocks applied are dependent on the liquidity of the market under stress, e.g. illiquid or sticky positions are assumed to have a longer holding period than positions in liquid markets.
		¡		Pension fund: The funding position of pension funds are stressed, taking into account key economic drivers impacting future obligations (e.g. long-term inflation and interest rates) and the impact of the scenarios on the value of fund assets.
Funding risk		¡		The risk of a mismatch between assets and liabilities, leading to funding difficulties, is assessed. Businesses apply scenario variables to forecasts of customer loans and advances and deposits levels, taking into account management actions to mitigate the impact of the stress which may impact business volumes. The Group funding requirement under stress is then estimated and takes into account lower availability of funds in the market.
		¡		The analysis of funding risk also contributes to the estimate of stressed income and costs:
				–		Stress impact on non-interest income is primarily driven by lower projected business volumes and hence lower income from fees and commissions.
				–		Impact on net interest income is driven by stressed margins, which depend on the level of interest rates under stress as well as funding costs, and on stressed balance sheet volumes. This can be partly mitigated by management actions that may include repricing of variable rate products, taking into account interbank lending rates under stress.
				–		The impact on costs is mainly driven by business volumes and management actions to partly offset profit reductions (due to impairment increases and decreases in income) such as headcount reductions and lower performance costs.
Operational risk, conduct risk and reputation risk		¡		These Principal Risks are generally not impacted as they are not directly linked to the economic scenario. Note that operational risk, however, is included as part of the reverse stress testing framework that incorporates assessment of idiosyncratic operational risk events.
				–		Management of operational risk is described on page 379
				–		Management of conduct risk is described on page 390
				–		Management of reputation risk is described on page 388

The role of stress testing as input to businesses’ plans and setting of strategy is described in more detail in the section below. The results also feed into our internal capital adequacy assessment process (ICAAP) submission to the PRA.

 

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Barclays’ approach to managing risks Management of credit risk

 

 

 

 

Organisation and structure

 

 

 

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Barclays’ approach to managing risks Management of credit risk

 

 

Loan loss rate (bps) – Longer term trends

 

^a Restated capital to reflect the impact of IFRS10, which results in some former Exit Quadrant exposures being recorded at fair value from 2012 onwards

 

 

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Barclays’ approach to managing risks Management of credit risk

 

 

 

 

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Barclays’ approach to managing risks Management of credit risk

 

 

Monitoring weaknesses in portfolios

While the basic principles for monitoring weaknesses in wholesale and retail exposures are broadly similar, they reflect the differing nature of the assets. As a matter of policy, all facilities granted to corporate or wholesale counterparties are subject to a review on, at least, an annual basis, even when they are performing satisfactorily.

 

 

 

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Barclays’ approach to managing risks Management of credit risk

 

 

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Barclays’ approach to managing risks Management of credit risk

 

 

 

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Barclays’ approach to managing risks Management of credit risk mitigation techniques and counterparty credit risk

 

 

 

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Barclays’ approach to managing risks Management of credit risk mitigation techniques and counterparty credit risk

 

 

 

    

 

 

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Barclays’ approach to managing risks Management of credit risk mitigation techniques and counterparty credit risk

 

 

 

 

366  |

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Barclays’ approach to managing risks Management of market risk

 

 

 

 

368  |

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Barclays’ approach to managing risks Management of market risk

 

 

 

Market risk oversight and challenge is provided by business committees, Group committees, including the Market Risk Committee and Group Market Risk. The chart below gives an overview of the business control structure.

Overview of the business market risk control structure

 

 

 

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Barclays’ approach to managing risks Management of market risk

 

 

 

370  |

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Barclays’ approach to managing risks

Management of market risk

 

 

 

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Barclays’ approach to managing risks

Management of market risk

 

 

 

372  |

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Barclays’ approach to managing risks

Management of market risk

 

 

 

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Barclays’ approach to managing risks

Management of market risk

 

 

 

 

374  |

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Barclays’ approach to managing risks

Management of market risk

 

 

 

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Barclays’ approach to managing risks

Management of market risk

 

 

 

376  |

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Barclays’ approach to managing risks

Management of market risk

 

 

 

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Barclays’ approach to managing risks

Management of operational risk

 

 

Organisation and structure

 

 

 

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Barclays’ approach to managing risks

Management of operational risk

 

 

 

380  |

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Barclays’ approach to managing risks

Management of operational risk

 

 

 

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Barclays’ approach to managing risks

Management of funding risk

 

 

 

 

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Barclays’ approach to managing risks

Management of funding risk

 

 

Ongoing business management

Early signs/ Mild stress

Severe Stress

Recovery

Resolution

¡ LRA and Planning ¡ Liquidity limits ¡ Early Warning Indicators Committee

¡ Monitoring and review ¡ Low cost actions and   balance sheet optimism

¡ Activate Contingency   Funding Plan ¡ Balance sheet reduction   and business limitations

¡  Asset and liability actions   to generate additional   liquidity

¡ Ensure an orderly   resolution can be carried   out if necessary, without   adverse systemic risk or   exposing the public fund   to loss

 

 

Examples of Liquidity limits

Liquidity buffer composition

FX cash flow limits

Concentration limits

Structured Notes limits

Secured Mismatch limits

Debt Buyback limits

Off-balance sheet commitment limits

Ratings Downgrade limits

 

 

Examples of Early Warning Indicators

Change in composition of deposits

Deterioration in liquidity stress tests

Rising funding costs

Widening CDS spreads

Change in maturity profile

Repo haircut widening

 

384  |

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Barclays’ approach to managing risks

Management of funding risk

 

 

 

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Barclays’ approach to managing risks

Management of funding risk

 

 

 

386  |

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Barclays’ approach to managing risks

Management of reputation, conduct and environmental risks

 

 

 

Organisation and Structure

 

 

 

388  |

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Barclays’ approach to managing risks

Management of reputation, conduct and environmental risks

 

 

 

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Barclays’ approach to managing risks

Management of reputation, conduct and environmental risks

 

 

Organisation and Structure

 

 

 

390  |

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Barclays’ approach to managing risks

Management of reputation, conduct and environmental risks

 

 

 

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Additional information

Additional financial disclosure

 

 

Credit risk additional disclosure

This section of the report contains supplementary information that is more detailed or contains longer histories than the data presented in the credit risk management section.

A. Impairment

 

Movements in allowance for impairment by geography
			2014				2013				2012				2011				2010
			£m				£m				£m				£m				£m
Allowance for impairment as at 1 January			7,258				7,799				10,597				12,432				10,796
Effects of the adoption of IFRS 10			-				-				(1,701)				-				-
Acquisitions and disposals			13				(5)				(80)				(18)				78
Unwind of discount			(153)				(179)				(211)				(243)				(213)
Exchange and other adjustments			(1,047)				(260)				(206)				(440)				331
Amounts written off:
United Kingdom			(1,313)				(1,548)				(1,972)				(2,401)				(1,928)
Europe			(742)				(957)				(1,119)				(932)				(616)
Americas			(535)				(276)				(311)				(954)				(742)
Africa and the Middle East			(423)				(534)				(655)				(695)				(627)
Asia			(24)				(28)				(62)				(183)				(397)
Recoveries:
United Kingdom			147				119				127				159				116
Europe			27				18				31				43				22
Americas			-				-				-				-				5
Africa and the Middle East			46				63				51				56				54
Asia			1				1				3				7				4
New and increased impairment allowance:
United Kingdom			1,596				1,687				1,728				2,442				2,848
Europe			757				1,131				1,566				1,299				1,434
Americas			378				514				250				438				1,323
Africa and the Middle East			449				566				853				727				949
Asia			50				31				50				56				385
Reversals of impairment allowance:
United Kingdom			(381)				(302)				(356)				(353)				(355)
Europe			(337)				(323)				(463)				(135)				(264)
Americas			(38)				(4)				(23)				(280)				(386)
Africa and the Middle East			(45)				(45)				(70)				(113)				(128)
Asia			(8)				(9)				(16)				(50)				(56)
Recoveries:
United Kingdom			(147)				(119)				(127)				(159)				(116)
Europe			(27)				(18)				(31)				(43)				(22)
Americas			-				-				-				-				(5)
Africa and the Middle East			(46)				(63)				(51)				(56)				(54)
Asia			(1)				(1)				(3)				(7)				(4)
Allowance for impairment as at 31 December			5,455				7,258				7,799				10,597				12,432
Average loans and advances for the year			505,122				525,994				564,128				548,944				532,558

 

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Additional information

Additional financial disclosure

 

 

 

Analysis of impairment charges
			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Impairment charges:
United Kingdom			1,068				1,266				1,245				1,930				2,377
Europe			393				790				1,072				1,121				1,148
Americas			340				510				227				158				932
Africa and the Middle East			358				458				732				558				767
Asia			41				21				31				(1)				325
Impairment on loans and advances			2,200				3,045				3,307				3,766				5,549
Impairment on available for sale assets			(31)				1				40				1,860				51
Impairment on reverse repurchase agreements			(5)				8				(3)				(48)				(4)
Impairment charges			2,164				3,054				3,344				5,578				5,596
Other credit provisions charge			4				17				(4)				24				76
Impairment charges			2,168				3,071				3,340				5,602				5,672

The industry classifications in the tables below have been prepared at the level of the borrowing entity. This means that a loan to a subsidiary of a major corporation is classified by the industry in which the subsidiary operates, even though the Parent’s predominant business may be in a different industry.

 

 

Total impairment charges on loans and advances by industry
			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
United Kingdom:
Financial institutions			(9)				2				30				83				22
Manufacturing			1				44				12				41				38
Construction			8				23				25				22				77
Property			10				25				82				59				123
Energy and water			-				-				1				5				-
Wholesale and retail distribution and leisure			54				52				109				297				170
Business and other services			73				86				138				138				238
Home loans			28				38				18				66				37
Cards, unsecured and other personal lending			893				980				799				1,200				1,646
Other			10				16				31				19				26
Total United Kingdom			1,068				1,266				1,245				1,930				2,377
Overseas			1,132				1,779				2,062				1,836				3,172
Total Impairment charges			2,200				3,045				3,307				3,766				5,549

 

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Additional information

Additional financial disclosure

 

 

 

Allowance for impairment by industry
			2014								2013								2012								2011								2010
As at 31 December			£m				%				£m				%				£m				%				£m				%				£m				%
United Kingdom:
Financial institutions			9				0.2				23				0.3				411				5.3				456				4.3				447				3.6
Manufacturing			32				0.6				84				1.2				37				0.5				97				0.9				84				0.6
Construction			33				0.6				45				0.6				31				0.4				53				0.5				76				0.6
Property			140				2.6				73				1.0				118				1.5				121				1.1				131				1.0
Government and central bank			-				-				18				0.2				-				-				-				-				-				-
Energy and water			-				-				1				-				-				-				-				-				-				-
Wholesale and retail distribution and leisure			137				2.5				124				1.7				243				3.1				378				3.6				256				2.1
Business and other services			205				3.8				202				2.8				217				2.8				258				2.4				259				2.1
Home loans			123				2.3				111				1.5				129				1.7				134				1.3				85				0.7
Cards, unsecured and other personal lending			1,912				35.1				2,228				30.7				2,043				26.2				2,469				23.3				3,020				24.3
Other			60				1.1				71				1.0				41				0.5				39				0.4				71				0.6
Total United Kingdom			2,652				48.6				2,980				41.1				3,270				41.9				4,005				37.8				4,429				35.6
Overseas			2,803				51.4				4,278				58.9				4,529				58.1				6,592				62.2				8,003				64.4
Total			5,455				100.0				7,258				100.0				7,799				100.0				10,597				100.0				12,432				100.0
Amounts written off and recovered by industry
			Amounts written off																				Recoveries of amounts previously written off
			2014				2013				2012				2011				2010				2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m				£m				£m				£m				£m				£m
United Kingdom:
Financial institutions			1				13				55				67				68				11				1				4				-				2
Manufacturing			13				55				76				28				102				6				4				2				4				6
Construction			21				26				52				45				42				3				2				4				2				1
Property			19				34				95				71				86				17				1				7				3				4
Energy and water			-				1				1				3				-				-				-				-				-				-
Wholesale and retail distribution and leisure			48				78				246				229				103				13				4				13				39				6
Business and other services			59				138				200				127				198				10				19				22				6				7
Home loans			15				39				36				45				20				2				2				2				3				1
Cards, unsecured and other personal lending			994				1,127				1,184				1,739				1,250				81				82				73				102				75
Other			144				37				27				47				59				4				4				-				-				14
Total United Kingdom			1,314				1,548				1,972				2,401				1,928				147				119				127				159				116
Overseas			1,723				1,795				2,147				2,764				2,382				74				82				85				106				85
Total			3,037				3,343				4,119				5,165				4,310				221				201				212				265				201

 

Impairment ratios
			2014				2013				2012				2011				2010
			%				%				%				%				%
Impairment charges as a percentage of average loans and advances			0.44				0.58				0.59				0.69				1.04
Amounts written off (net of recoveries) as a percentage of average loans and advances			0.56				0.60				0.69				0.89				0.77
Allowance for impairment balance as a percentage of loans and advances as at 31 December			1.15				1.54				1.65				2.16				2.60

 

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Additional information

Additional financial disclosure

 

 

B. Potential credit risk loans

 

Credit risk loans summary
			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Impaired loans			6,799				10,510				11,747				17,326				26,630
Accruing loans which are contractually overdue 90 days or more as to principal or interest			1,816				1,903				2,490				3,179				4,388
Impaired and restructured loans			723				885				788				837				864
Credit risk loans			9,338				13,298				15,025				21,342				31,882
Credit risk loans			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Impaired loans:
United Kingdom			3,035				3,986				4,717				5,801				5,744
Europe			2,011				4,137				4,433				5,261				5,397
Americas			317				683				357				3,759				11,928
Africa and Middle East			1,353				1,626				2,167				2,408				3,206
Asia			83				78				73				97				355
Total			6,799				10,510				11,747				17,326				26,630
Accruing loans which are contractually overdue 90 days or more as to principal or interest:
United Kingdom			875				953				1,227				1,216				1,380
Europe			354				503				476				650				802
Americas			149				81				96				110				164
Africa and Middle East			437				364				688				1,195				2,010
Asia			1				2				3				8				32
Total			1,816				1,903				2,490				3,179				4,388
Impaired and restructured loans:
United Kingdom			559				734				615				643				662
Europe			31				13				27				60				33
Americas			90				81				116				124				141
Africa and Middle East			42				56				25				7				20
Asia			1				1				5				3				8
Total			723				885				788				837				864
Total credit risk loans:
United Kingdom			4,469				5,673				6,559				7,660				7,786
Europe			2,396				4,653				4,936				5,971				6,232
Americas			556				845				569				3,993				12,233
Africa and Middle East			1,832				2,046				2,880				3,610				5,236
Asia			85				81				81				108				395
Credit risk loans			9,338				13,298				15,025				21,342				31,882
Potential problem loans			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
United Kingdom			821				1,112				1,035				1,110				892
Europe			208				285				430				530				669
Americas			146				99				80				106				779
Africa and Middle East			306				310				314				217				335
Asia			10				2				1				9				20
Potential problem loans			1,491				1,808				1,860				1,972				2,695

 

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Additional information

Additional financial disclosure

 

 

 

			2014				2013				2012
Interest foregone on credit risk loans			£m				£m				£m
Interest income that would have been recognised under the original contractual terms
United Kingdom			195				194				245
Rest of the World			173				217				310
Total			368				411				555

 

Total impairment allowance coverage of credit risk loans			2014				2013				2012				2011				2010
As at 31 December			%				%				%				%				%
United Kingdom			59.3				52.5				49.9				52.3				56.9
Europe			50.9				53.4				52.8				48.9				44.8
Americas			89.7				77.4				83.0				53.3				24.2
Africa and Middle East			54.7				52.7				48.0				40.1				35.5
Asia			96.5				72.8				86.4				90.7				100.0
Total coverage of credit risk lending			58.4				54.6				51.9				49.7				39.0
Total impairment allowance coverage of potential credit risk loans			2014				2013				2012				2011				2010
As at 31 December			%				%				%				%				%
United Kingdom			50.1				43.9				43.1				45.7				51.0
Europe			46.9				50.3				48.6				44.9				40.5
Americas			71.1				69.3				72.7				51.9				22.7
Africa and Middle East			46.9				45.8				43.2				37.8				33.3
Asia			86.3				71.1				85.4				83.8				95.2
Total coverage of potential credit risk lending			50.4				48.0				46.2				45.5				36.0

 

396  |

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Additional information

Additional financial disclosure

 

 

C. Maturity Analysis of Loans and Advances

 

Maturity analysis of loans and advances to customers
			On demand				Not more than three months				Over three months but not more than six months				Over six months but not more than one year				Over one year but no more than three years				Over three years but not more than five years				Over five years but not more than ten years				Over ten years				Total
As at 31 December 2014			£m				£m				£m				£m				£m				£m				£m				£m				£m
United Kingdom
Corporate lending			15,773				19,881				1,898				3,339				12,569				12,253				4,774				11,144				81,631
Other lending to customers in the United Kingdom			3,974				3,595				2,309				4,574				17,686				16,350				32,634				81,441				162,563
Total United Kingdom			19,747				23,476				4,207				7,913				30,255				28,603				37,408				92,585				244,194
Europe			5,049				24,717				1,404				1,692				5,901				5,408				5,116				11,950				61,237
Americas			2,624				42,198				1,487				3,800				9,219				8,665				4,382				4,685				77,060
Africa and Middle East			4,847				2,875				2,126				2,220				8,769				5,552				6,417				7,438				40,244
Asia			491				6,103				513				692				1,609				814				170				95				10,487
Total loans and advances to customers			32,758				99,369				9,737				16,317				55,753				49,042				53,493				116,753				433,222
As at 31 December 2013
United Kingdom
Corporate lending			17,462				18,251				921				2,684				12,286				8,470				8,604				10,497				79,175
Other lending to customers in the United Kingdom			4,492				3,251				2,170				4,703				18,209				16,476				31,077				80,113				160,491
Total United Kingdom			21,954				21,502				3,091				7,387				30,495				24,946				39,681				90,610				239,666
Europe			3,216				17,365				1,510				3,923				11,336				9,553				10,085				19,509				76,497
Americas			2,525				42,697				1,461				2,379				7,687				6,039				4,833				3,694				71,315
Africa and Middle East			3,665				4,700				1,628				2,451				7,908				5,567				6,569				8,175				40,663
Asia			455				10,166				199				306				1,337				629				110				142				13,344
Total loans and advances to customers			31,815				96,430				7,889				16,446				58,763				46,734				61,278				122,130				441,485

 

Maturity analysis of loans and advances to banks
			On demand				Not more than three months				Over three months but not more than six months				Over six months but not more than one year				Over one year but no more than three years				Over three years but not more than five years				Over five years but not more than ten years				Over ten years				Total
As at 31 December 2014			£m				£m				£m				£m				£m				£m				£m				£m				£m
United Kingdom			623				6,159				327				325				38				-				-				-				7,472
Europe			2,032				10,375				68				4				314				-				-				-				12,793
Americas			1,172				10,914				893				186				18				20				24				-				13,227
Africa and Middle East			939				1,086				502				478				245				-				-				-				3,250
Asia			1,109				2,604				1,446				176				22				-				12				-				5,369
Total loans and advances to banks			5,875				31,138				3,236				1,169				637				20				36				-				42,111
As at 31 December 2013
United Kingdom			571				4,687				38				282				178				36				4				661				6,457
Europe			2,228				9,577				233				96				386				-				-				-				12,520
Americas			1,808				8,599				1				1				13				-				46				-				10,468
Africa and Middle East			840				774				220				558				88				73				-				-				2,553
Asia			1,111				5,640				481				189				-				-				13				-				7,434
Total loans and advances to banks			6,558				29,277				973				1,126				665				109				63				661				39,432

 

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Additional information

Additional financial disclosure

 

 

D. Industrial and Geographical Concentrations of Loans and Advances

 

 

Loans and advances to customers by industry			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			103,503				103,703				93,745				93,380				96,385
Manufacturing			11,849				10,632				11,907				13,264				15,096
Construction			3,767				4,245				4,625				4,931				6,173
Property			19,544				20,844				22,575				25,087				23,720
Government and central bank			7,127				4,999				4,809				6,135				5,109
Energy and water			8,557				7,547				7,638				7,425				9,240
Wholesale and retail distribution and leisure			13,635				13,288				15,070				16,818				17,886
Business and other services			22,803				20,663				24,722				27,214				27,138
Home loans			167,520				180,295				172,875				172,106				168,909
Cards, unsecured loans and other personal lending			58,914				55,806				58,863				53,783				51,724
Other			16,003				19,463				21,530				23,688				24,922
Loans and advances to customers			433,222				441,485				438,359				443,831				446,302
Loans and advances to customers in the UK			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			23,728				22,101				22,290				20,257				25,132
Manufacturing			6,274				5,411				6,078				6,282				6,744
Construction			2,957				3,195				3,108				3,444				3,683
Property			15,053				15,096				15,283				16,351				13,877
Government and central bank			276				819				198				123				80
Energy and water			2,096				1,715				2,286				1,598				2,183
Wholesale and retail distribution and leisure			9,997				9,734				9,810				10,686				11,850
Business and other services			13,944				13,052				15,971				16,731				15,430
Home loans			132,864				129,703				119,781				112,394				105,019
Cards, unsecured loans and other personal lending			28,061				30,396				31,772				29,881				28,970
Other			8,944				8,444				9,476				8,404				8,105
Loans and advances to customers in the UK			244,194				239,666				236,053				226,151				221,073
Loans and advances to customers in Europe			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			22,126				17,791				20,245				20,255				19,381
Manufacturing			1,641				2,051				2,827				3,545				4,987
Construction			193				625				663				943				1,440
Property			1,175				2,652				3,242				4,023				3,771
Government and central bank			3,759				1,583				2,458				2,167				951
Energy and water			2,612				3,119				2,376				2,453				3,621
Wholesale and retail distribution and leisure			1,105				1,524				2,588				3,134				2,938
Business and other services			1,878				2,882				2,985				5,498				6,526
Home loans			19,933				35,110				36,965				38,732				37,524
Cards, unsecured loans and other personal lending			5,226				7,146				6,346				6,875				8,348
Other			1,589				2,014				2,471				5,711				4,997
Loans and advances to customers in Europe			61,237				76,497				83,166				93,336				94,484

 

398  |

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Additional information

Additional financial disclosure

 

 

 

Loans and advances to customers in the Americas			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			49,171				49,457				43,428				46,636				45,418
Manufacturing			1,458				1,308				1,229				1,400				922
Construction			119				19				1				33				34
Property			1,542				944				686				882				806
Government and central bank			320				371				785				620				354
Energy and water			2,487				1,496				1,761				2,170				2,428
Wholesale and retail distribution and leisure			490				473				739				661				651
Business and other services			3,262				2,227				2,368				1,605				1,211
Home loans			770				783				480				566				214
Cards, unsecured loans and other personal lending			15,666				12,936				12,047				9,691				8,129
Other			1,775				1,301				1,235				1,319				1,398
Loans and advances to customers in the Americas			77,060				71,315				64,759				65,583				61,565
Loans and advances to customers in Africa and the Middle East			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			4,169				6,298				4,546				2,343				2,960
Manufacturing			1,856				1,229				1,252				1,459				1,565
Construction			403				379				829				444				961
Property			1,579				2,029				3,117				3,618				4,825
Government and central bank			997				1,090				1,368				2,796				3,271
Energy and water			645				739				822				819				520
Wholesale and retail distribution and leisure			1,831				1,378				1,833				2,170				1,968
Business and other services			3,358				2,058				2,760				3,012				3,530
Home loans			13,591				14,347				15,376				19,912				25,831
Cards, unsecured loans and other personal lending			8,605				4,043				7,540				6,521				4,933
Other			3,210				7,073				7,827				7,660				9,341
Loans and advances to customers in Africa and the Middle East			40,244				40,663				47,270				50,754				59,705
Loans and advances to customers in Asia			2014				2013				2012				2011				2010
As at 31 December			£m				£m				£m				£m				£m
Financial institutions			4,309				8,056				3,236				3,889				3,494
Manufacturing			620				633				521				578				878
Construction			95				27				24				67				55
Property			195				123				247				213				441
Government and central bank			1,775				1,136				-				429				453
Energy and water			717				478				393				385				488
Wholesale and retail distribution and leisure			212				179				100				167				479
Business and other services			361				444				638				368				441
Home loans			362				352				273				502				321
Cards, unsecured loans and other personal lending			1,356				1,285				1,158				815				1,344
Other			485				631				521				594				1,081
Loans and advances to customers in Asia			10,487				13,344				7,111				8,007				9,475

 

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Additional information

Additional financial disclosure

 

 

Interest rate sensitivity of loans and advances			2014												2013
			Fixed rate				Variable rate				Total				Fixed rate				Variable rate				Total
As at 31 December			£m				£m				£m				£m				£m				£m
Banks			12,949				29,162				42,111				13,950				25,482				39,432
Customers			134,086				299,136				433,222				131,732				309,753				441,485

 

Foreign outstandings in currencies other than the local currency of the borrower for countries where this exceeds 0.75% of total Group assets
			As % of   assets				Total   £m				Banks and other financial institutions   £m				Government and official institutions   £m				Commercial industrial and other private sectors   £m
As at 31 December 2014
United States			6.2				84,606				7,196				23,409				54,001
Germany			1.4				19,481				8,381				8,620				2,480
France			2.0				26,884				12,632				5,919				8,333
Netherlands			1.1				15,080				1,437				3,279				10,364
Cayman Islands			0.9				12,480				49				1				12,430
As at 31 December 2013
United States			6.3				82,471				7,656				15,997				58,818
Germany			2.1				27,584				6,757				5,785				15,042
France			2.9				38,350				18,038				9,422				10,890
Netherlands			1.2				15,184				3,132				4,450				7,602
Spain			1.0				12,622				9,111				1,068				2,443
As at 31 December 2012
United States			6.4				95,024				7,074				19,096				68,854
Germany			2.5				37,304				8,845				5,286				23,173
France			2.1				30,895				15,546				6,940				8,409
Japan			1.4				20,370				18,533				1,815				22
Netherlands			1.2				18,209				1,377				4,351				12,481

 

Off-Balance Sheet and other Credit Exposures			2014				2013				2012
As at 31 December			£m				£m				£m
Contingent liabilities			21,324				21,184				22,261
Commitments			291,262				275,571				272,392
Trading portfolio assets			114,717				133,069				146,352
Financial assets designated at fair value			38,300				38,968				46,629
Derivative financial instruments			439,909				350,300				485,140
Available for sale financial investments			86,066				91,756				75,109
Notional principal amounts of credit derivatives			2014				2013				2012
As at 31 December			£m				£m				£m
Credit derivatives held or issued for trading purposesa			1,183,963				1,576,184				1,768,180

Additional Related Parties disclosures

For US disclosure purposes, the aggregate emoluments of all Directors and Officers of Barclays PLC who held office during the year (2014: 33 persons, 2013: 37 persons, 2012: 28 persons) for the year ended 31st December 2014 amounted to £56.9m (2013: £70.0m, 2012: £70.6m). In addition, the aggregate amount set aside for the year ended 31st December 2014, to provide pension benefits for the Directors and Officers amounted to £0.3m (2013: £0.6m, 2012: £0.4m).

Note

a Includes credit derivatives held as economic hedges which are not designated as hedges for accounting purposes.

 

400  |

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Additional information Additional financial disclosure

 

 

 

Selected financial statistics			2014				2013				2012				2011				2010
			%				%				%				%				%
Return on average shareholders’ equitya			0.8				1.6				(0.5)				5.6				6.6
Return on average total assetsb			-				0.1				-				0.2				0.3
Average shareholders’ equity as a percentage of average total assets			4.8				4.5				4.2				3.9				4.1
			2014				2013				2012				2011				2010
Selected income statement data			£m				£m				£m				£m				£m
Continuing operations:
Interest income			17,369				18,315				19,211				20,589				20,035
Interest expense			(5,231)				(6,662)				(7,561)				(8,393)				(7,517)
Non-interest income			13,677				16,810				13,807				20,927				19,696
Operating expenses			(20,423)				(21,974)				(21,007)				(20,881)				(20,033)
Impairment charges			(2,168)				(3,071)				(3,340)				(5,602)				(5,672)
Share of post-tax results of associates and joint ventures			36				(56)				110				60				58
Profit/(loss) on disposal of subsidiaries, associates and joint ventures			(471)				6				28				(94)				81
Gain on acquisitions			-				26				2				-				129
Profit before tax			2,309				2,885				650				5,865				6,013
Profit attributable to equity holders of the Parent			528				963				(306)				3,533				4,122
			2014				2013				2012				2011				2010
Selected balance sheet data			£m				£m				£m				£m				£m
Total shareholders’ equity			63,794				63,220				59,923				63,933				60,619
Subordinated liabilities			21,685				22,249				24,422				24,870				28,499
Deposits from banks, customer accounts and debt securities in issue			572,357				574,340				587,787				592,460				586,666
Loans and advances to banks and customers			470,424				474,059				472,809				485,277				472,793
Total assets			1,358,693				1,344,201				1,512,777				1,588,555				1,523,736

 

Ratio of earnings to fixed charges – Barclays Plc
			2014				2013				2012				2011				2010
			(In £m except for ratios)
Fixed charges:
Interest expense			5,283				6,715				7,557				8,388				7,512
Rental expense			261				254				251				268				254
Total Fixed charges			5,544				6,969				7,808				8,656				7,766
Earnings:
Income before taxes and non-controlling interests			2,256				2,868				797				5,770				5,999
Less: unremitted pre-tax income of associated companies and joint ventures			(45	)			95				(113	)			(47	)			(49)
Total earnings excluding fixed charges			2,211				2,963				684				5,723				5,950
Fixed charges			5,544				6,969				7,808				8,656				7,766
Total earnings including fixed charges			7,755				9,932				8,492				14,379				13,716
Ratio of earnings to fixed charges			1.40				1.43				1.09				1.66				1.77

 

 

Notes

a  Return on average shareholders’ equity represents profit attributable to the equity holders of the parent as a percentage of average shareholders’ equity.

b  Return on average total assets represents profit attributable to the equity holders of the parent as a percentage of average total assets

 

 

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Additional information Additional financial disclosure

 

 

Ratio of earnings to combined fixed charges and preference dividends – Barclays Plc
			2014				2013				2012				2011				2010
			(In £m except for ratios)
Fixed charges, preference share dividends and similar appropriations:
Interest expense			5,283				6,715				7,557				8,388				7,512
Rental expense			261				254				251				268				254
Fixed charges			5,544				6,969				7,808				8,656				7,766
Preference share dividends and similar appropriations			443				412				466				514				594
Total fixed charges			5,987				7,381				8,274				9,170				8,360
Earnings:
Income before taxes and non-controlling interests			2,256				2,868				797				5,770				5,999
Less: unremitted pre-tax income of associated companies and joint ventures			(45	)			95				(113	)			(47	)			(49	)
Total earnings excluding fixed charges			2,211				2,963				684				5,723				5,950
Fixed charges			5,987				7,381				8,274				9,170				8,360
Total earnings including fixed charges			8,198				10,344				8,958				14,893				14,310
Ratio of earnings to fixed charges, preference share dividends and similar appropriations			1.37				1.40				1.08				1.62				1.71

 

402  |

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Barclays Bank PLC Report of independent registered public accounting firm

 

 

 

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Barclays Bank PLC

In our opinion, the accompanying consolidated balance sheets and the related consolidated income statements, statements of comprehensive income, consolidated statements of changes in equity and consolidated cash flow statements present fairly, in all material respects, the financial position of Barclays Bank PLC (“the Bank”) and its subsidiaries as at 31 December 2014 and 31 December 2013, and the results of their operations and their cash flows for each of the three years in the period ended 31 December 2014 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Notes 1 and 44 to the consolidated financial statements, the Bank changed the manner in which it offsets certain financial instruments in 2014.

PricewaterhouseCoopers LLP

London, United Kingdom

2 March 2015

 

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Barclays Bank PLC data

 

 

405 Consolidated income statement

406 Consolidated statement of comprehensive income

407 Consolidated balance sheet

408 Consolidated statement of changes in equity

410 Consolidated cash flow statement

411 Notes to the accounts

420 Financial data

 

Barclays Bank PLC is a wholly owned subsidiary of Barclays PLC, which is the Group’s ultimate parent company. The business activities of Barclays Bank PLC Group and Barclays PLC Group are fundamentally the same as the only difference is the holding company, Barclays PLC. Reporting differences between Barclays Bank PLC and Barclays PLC are driven by the holding company and resulting differences in funding structures. The significant differences are described below.

 

Instrument Type			Barclays PLC				Barclays Bank PLC			Primary reason for difference
			£m				£m
Preference shares			-				5,846			Preference shares and capital notes issued by Barclays Bank PLC are included within share capital in Barclays Bank PLC, and presented as non-controlling interests in the financial statements of Barclays PLC Group.
Other shareholders’ equity			-				485
Non-controlling interests (NCI)			6,391				2,251
Treasury shares			(84)				-			Barclays PLC shares held for the purposes of employee share schemes and for trading are recognised as available for sale investments and trading portfolio assets respectively within Barclays Bank PLC. Barclays PLC deducts these treasury shares from shareholders’ equity.
Capital Redemption Reserve (CRR)			394				24			Arising from the redemption or exchange of Barclays PLC or Barclays Bank PLC shares respectively.

Barclays Bank PLC Preference Share Exchange and Repurchase

During Q2 2014 Barclays Bank PLC preference shares with a total book value of £1.5bn were repurchased by Barclays Bank PLC as part of an overall exchange of those preference shares (together with subordinated debt instruments with a nominal value of £0.6bn), for three issuances of Barclays PLC Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, with principal amounts of $1.2bn, €1.1bn and £0.7bn. Upon completion of the exercise, Barclays Bank PLC repurchased the preference shares for cash, funded from retained earnings, at a fair value of £1.7bn. In accordance with capital maintenance rules in the Companies Act 2006, a Capital Redemption Reserve (CRR) of £16m equal to the preference share capital nominal translated at current exchange rates was established in Barclays Bank PLC. As the preference shares are presented as NCI in the financial statements of Barclays PLC, the exchange resulted in a reduction in NCI for Barclays PLC.

Barclays Bank PLC Preference Share Redemption

During Q4 2014 Barclays Bank PLC preference shares with a total book value of £0.7bn were redeemed on their first call date. The cash redemption of the preference shares by Barclays Bank PLC at a fair value of £0.8bn was funded from retained earnings. In accordance with capital maintenance rules in the Companies Act 2006, a Capital Redemption Reserve (CRR) of £8m equal to the preference share capital nominal translated at current exchange rates was established in Barclays Bank PLC. As the preference shares are presented as NCI in the financial statements of Barclays PLC, the exchange resulted in a reduction in NCI for Barclays PLC.

Barclays Bank PLC Contingent Capital Notes (CCNs)

The Group issued two series of contingent capital notes (CCNs). These were both issued by Barclays Bank PLC and pay interest and principal to the holder unless the consolidated CRD IV CET 1 ratio (FSA October 2012 transitional statement) of Barclays PLC falls below 7%, in which case they are cancelled from the consolidated perspective. The coupon payable on the CCNs is higher than a market rate of interest for a similar note without this risk.

The accounting for these instruments differs between the consolidated financial statements of Barclays PLC and Barclays Bank PLC as follows:

 

•

In the case of the 7.675% CCN issuance, the cancellation is effected by an automatic legal transfer from the holder to Barclays PLC. In these circumstances, Barclays Bank PLC remains liable to Barclays PLC. Barclays Bank PLC does not benefit from the cancellation feature although it pays a higher than market rate for a similar note, and therefore the initial fair value of the note recognised was higher than par. The difference between fair value and par is amortised to the income statement over time.

 

•

In the case of the 7.75% CCN issuance, the cancellation is directly effected in Barclays Bank PLC. For Barclays Bank PLC, the cancellation feature is separately valued from the host liability as an embedded derivative with changes in fair value reported in the income statement. The initial fair value of the host liability recognised was higher than par by the amount of the initial fair value of the derivative and the difference is amortised to the income statement over time.

 

404  |

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Barclays Bank PLC data Consolidated income statement

 

 

 

For the year ended 31 December			Notes				2014				2013				2012
							£m				£m				£m
Continuing operations
Interest income			a				17,369				18,315				19,211
Interest expense			a				(5,231)				(6,662)				(7,561)
Net interest income							12,138				11,653				11,650
Fee and commission income			b				9,850				10,500				10,213
Fee and commission expense			b				(1,662)				(1,748)				(1,677)
Net fee and commission income							8,188				8,752				8,536
Net trading income			c				3,310				6,548				3,350
Net investment income			d				1,328				680				690
Net premiums from insurance contracts							669				732				896
Other income							182				98				335
Total income							25,815				28,463				25,457
Net claims and benefits incurred on insurance contracts							(480)				(509)				(600)
Total income net of insurance claims							25,335				27,954				24,857
Credit impairment charges and other credit provisions			7				(2,168)				(3,071)				(3,340)
Net operating income							23,167				24,883				21,517
Staff costs			8				(11,005)				(12,155)				(11,467)
Infrastructure costs			e				(3,443)				(3,531)				(3,399)
Administration and general expenses			e				(3,615)				(4,288)				(3,691)
Provision for PPI redress			27				(1,270)				(1,350)				(1,600)
Provision for interest rate hedging products redress			27				160				(650)				(850)
Provision relating to foreign exchange			27				(1,250)				-				-
Operating expenses							(20,423)				(21,974)				(21,007)
Share of post-tax results of associates and joint ventures							36				(56)				110
(Loss)/profit on disposal of subsidiaries, associates and joint ventures			9				(471)				6				28
Gain on acquisitions							-				26				2
Profit before tax from continuing operations							2,309				2,885				650
Taxation			f				(1,455)				(1,577)				(617)
Profit after tax							854				1,308				33
Attributable to:
Equity holders of the Parent							528				963				(306)
Non-controlling interests			n				326				345				339
Profit after tax							854				1,308				33

The note numbers refer to the notes on pages 224 to 304, whereas the note letters refer to Barclays Bank PLC supplementary notes on pages 411 to 421.

Barclays Bank PLC supplementary notes provided on pages 411 to 421 cover the line items where there is a difference to Barclays PLC.

 

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Barclays Bank PLC data Consolidated statement of comprehensive income

 

 

For the year ended 31 December			2014				2013				2012
			£m				£m				£m
Profit after tax			854				1,308				33
Other comprehensive income/(loss) for continuing operations:
Currency translation reservea
- Currency translation differences			486				(1,767)				(1,548)
Available for sale reservea
- Net gains/(losses) from changes in fair value			5,346				(2,730)				1,237
- Net gains transferred to net profit on disposal			(619)				(145)				(549)
- Net (gains)/losses transferred to net profit due to impairment			(31)				(7)				40
- Net (gains)/losses transferred to net profit due to fair value hedging			(4,074)				2,376				474
- Changes in insurance liabilities			(94)				28				(150)
- Tax			(102)				100				(352)
Cash flow hedging reservea
- Net gains/(losses) from changes in fair value			2,687				(1,914)				1,499
- Net gains transferred to net profit			(767)				(547)				(695)
- Tax			(380)				571				(142)
Other			(19)				(37)				96
Total comprehensive income/(loss) that may be recycled to profit and loss			2,433				(4,072)				(90)
Other comprehensive income/(loss) not recycled to profit and loss:
Retirement benefit remeasurements			268				(512)				(1,553)
Deferred tax			(63)				(3)				318
Other comprehensive income/(loss) for the year			2,638				(4,587)				(1,325)
Total comprehensive income/(loss) for the year			3,492				(3,279)				(1,292)
Attributable to:
Equity holders of the Parent			3,245				(2,979)				(1,422)
Non-controlling interests			247				(300)				130
			3,492				(3,279)				(1,292)

Note

a    For further details refer to Note m.

 

406  |

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Barclays Bank PLC data Consolidated balance sheet

 

 

 

 

As at			Notes				31 December 2014 £m				31 December 2013a £m				1 January 2013 £m
Assets
Cash and balances at central banks							39,695				45,687				86,191
Items in the course of collection from other banks							1,210				1,282				1,473
Trading portfolio assets			g				114,755				133,089				146,352
Financial assets designated at fair value			14				38,300				38,968				46,629
Derivative financial instruments			j				440,076				350,460				485,140
Available for sale investments			h				86,105				91,788				75,133
Loans and advances to banks			i				42,657				39,822				42,208
Loans and advances to customers			i				427,767				434,237				430,601
Reverse repurchase agreements and other similar secured lending			22				131,753				186,779				176,522
Prepayments, accrued income and other assets							3,604				3,919				4,077
Investments in associates and joint ventures			38				711				653				633
Property, plant and equipment			23				3,786				4,216				5,754
Goodwill and intangible assets			24				8,180				7,685				7,915
Current tax assets			f				334				181				252
Deferred tax assets			10				4,130				4,807				3,559
Retirement benefit assets			35				56				133				53
Non-current assets classified as held for disposal			45				15,574				495				285
Total assets							1,358,693				1,344,201				1,512,777
Liabilities
Deposits from banks							58,390				55,615				77,345
Items in the course of collection due to other banks							1,177				1,359				1,587
Customer accounts							427,868				432,032				390,917
Repurchase agreements and other similar secured borrowing			22				124,479				196,748				217,178
Trading portfolio liabilities			13				45,124				53,464				44,794
Financial liabilities designated at fair value			17				56,972				64,796				78,561
Derivative financial instruments			j				439,320				347,118				480,987
Debt securities in issue							86,099				86,693				119,525
Subordinated liabilities			30				21,685				22,249				24,422
Accruals, deferred income and other liabilities			26				11,432				13,673				12,532
Provisions			27				4,135				3,886				2,766
Current tax liabilities			f				1,023				1,042				617
Deferred tax liabilities							255				348				341
Retirement benefit liabilities			35				1,574				1,958				1,282
Liabilities included in disposal groups classified as held for sale			45				13,115				-				-
Total liabilities							1,292,648				1,280,981				1,452,854
Total equity
Called up share capital and share premium			31				14,472				14,494				14,494
Other equity instruments			31				4,350				2,078				-
Other reserves			32				2,322				(233)				3,329
Retained earnings							42,650				44,670				39,244
Total equity excluding non-controlling interests							63,794				61,009				57,067
Non-controlling interests			n				2,251				2,211				2,856
Total equity							66,045				63,220				59,923
Total liabilities and equity							1,358,693				1,344,201				1,512,777

The note numbers refer to the notes on pages 224 to 304, whereas the note letters refer to Barclays Bank PLC supplementary note on pages 411 to 421.

These financial statements have been approved for issue by the Board of Directors on 2 March 2015.

Notes

a    The prior year has been restated to reflect the adaptation of IAS 32 revised standard.

 

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Barclays Bank PLC data Consolidated statement of changes in equity

 

 

			Called up share capital and share premiuma £m				Other equity instrumentsa £m				Available for sale reserveb £m				Cash flow hedging reserveb £m				Currency translation reserveb £m				Other reserves and other shareholders’ equitya £m				Retained earnings £m				Total £m				Non- controlling Interests £m				Total   equity   £m
Balance as at 1 January 2014			14,494				2,078				151				273				(1,142)				485				44,670				61,009				2,211				63,220
Profit after tax			-				250				-				-				-				-				278				528				326				854
Currency translation movements			-				-				-				-				560				-				-				560				(74)				486
Available for sale investments			-				-				427				-				-				-				-				427				(1)				426
Cash flow hedges			-				-				-				1,544				-				-				-				1,544				(4)				1,540
Pension remeasurement			-				-				-				-				-				-				205				205				-				205
Other			-				-				-				-				-				-				(19)				(19)				-				(19)
Total comprehensive income/(loss) for the year			-				250				427				1,544				560				-				464				3,245				247				3,492
Buyback and issue of equity instruments			(15)				2,272				-				-				-				16				(1,683)				590				-				590
Redemption of preference Shares			(7)				-				-				-				-				8				(792)				(791)				-				(791)
Other equity instruments coupons paid			-				(250)				-				-				-				-				54				(196)				-				(196)
Equity settled share schemes			-				-				-				-				-				-				693				693				-				693
Vesting of Barclays PLC shares under share-based payment schemes			-				-				-				-				-				-				(866)				(866)				-				(866)
Dividends on ordinary shares			-				-				-				-				-				-				(821)				(821)				(190)				(1,011)
Dividends on preference shares and other shareholders’ equity			-				-				-				-				-				-				(441)				(441)				-				(441)
Capital contribution from Barclays PLC			-				-				-				-				-				-				1,412				1,412				-				1,412
Other reserve movements			-				-				-				-				-				-				(40)				(40)				(17)				(57)
Balance as at 31 December 2014			14,472				4,350				578				1,817				(582)				509				42,650				63,794				2,251				66,045
Balance as at 1 January 2013			14,494				-				526				2,099				59				645				39,244				57,067				2,856				59,923
Profit after tax			-				-				-				-				-				-				963				963				345				1,308
Currency translation movements			-				-				-				-				(1,201)				-				-				(1,201)				(566)				(1,767)
Available for sale investments			-				-				(375)				-				-				-				-				(375)				(3)				(378)
Cash flow hedges			-				-				-				(1,826)				-				-				-				(1,826)				(64)				(1,890)
Pension remeasurement			-				-				-				-				-				-				(503)				(503)				(12)				(515)
Other			-				-				-				-				-				-				(37)				(37)				-				(37)
Total comprehensive (loss)/income for the year			-				-				(375)				(1,826)				(1,201)				-				423				(2,979)				(300)				(3,279)
Issue of other equity instruments			-				2,078				-				-				-				-				-				2,078				-				2,078
Equity settled share schemes			-				-				-				-				-				-				689				689				-				689
Vesting of Barclays PLC shares under share-based payment schemes			-				-				-				-				-				-				(1,047)				(1,047)				-				(1,047)
Dividends on ordinary shares			-				-				-				-				-				-				(734)				(734)				(342)				(1,076)
Dividends on preference shares and other shareholders’ equity			-				-				-				-				-				-				(471)				(471)				-				(471)
Redemption of capital instruments			-				-				-				-				-				(100)				-				(100)				-				(100)
Capital contribution from Barclays PLC			-				-				-				-				-				-				6,553				6,553				-				6,553
Other reserve movements			-				-				-				-				-				(60)				13				(47)				(3)				(50)
Balance as at 31 December 2013			14,494				2,078				151				273				(1,142)				485				44,670				61,009				2,211				63,220

Notes

a    For further details refer to Note l.

b    For further details refer to Note m.

 

408  |

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Barclays Bank PLC data Consolidated statement of changes in equity

 

 

 

			Called up share capital and share premiuma £m				Available for sale reserveb £m				Cash flow hedging reserveb £m				Currency translation reserveb £m				Other shareholder’s equitya £m				Retained earnings £m				Total £m				Non- controlling interests £m				Total  equity  £m
Published as at 1 January 2012			14,494				(130)				1,442				1,348				648				44,276				62,078				3,092				65,170
Effects of IFRS 10			-				-				-				-				-				(945)				(945)				-				(945)
Effects of IAS 19 Revised			-				-				-				-				-				(1,238)				(1,238)				-				(1,238)
Balance as at 1 January 2012			14,494				(130)				1,442				1,348				648				42,093				59,895				3,092				62,987
Profit after tax			-				-				-				-				-				(306)				(306)				339				33
Currency translation movements			-				-				-				(1,289)				-				-				(1,289)				(259)				(1,548)
Available for sale investments			-				656				-				-				-				-				656				44				700
Cash flow hedges			-				-				657				-				-				-				657				5				662
Pension remeasurement			-				-				-				-				-				(1,235)				(1,235)				-				(1,235)
Other			-				-				-				-				1				94				95				1				96
Total comprehensive (loss)/income for the year			-				656				657				(1,289)				1				(1,447)				(1,422)				130				(1,292)
Equity settled share schemes			-				-				-				-				-				717				717				-				717
Vesting of Barclays PLC shares under share-based payment schemes			-				-				-				-				-				(946)				(946)				-				(946)
Dividends paid on ordinary shares			-				-				-				-				-				(696)				(696)				(229)				(925)
Dividends on preference shares and other shareholders’ equity			-				-				-				-				-				(465)				(465)				-				(465)
Other reserve movements			-				-				-				-				(4)				(12)				(16)				(137)				(153)
Balance as at 31 December 2012			14,494				526				2,099				59				645				39,244				57,067				2,856				59,923

 

 

 

Notes

a    For further details refer to Note l.

b    For further details refer to Note m.

 

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Barclays Bank PLC data Consolidated cash flow statement

 

 

For the year ended 31 December			2014    £m				2013    £m				2012     £m
Continuing operations
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax			2,309				2,885				650
Adjustment for non-cash items:
Allowance for impairment			2,168				3,071				3,340
Depreciation, amortisation and impairment of property, plant, equipment and intangibles			1,279				1,276				1,119
Other provisions, including pensions			3,600				3,673				3,080
Net profit on disposal of investments and property, plant and equipment			(620)				(145)				(524)
Other non-cash movements			(1,699)				(2,162)				5,136
Changes in operating assets and liabilities
Net decrease/(increase) in loans and advances to banks and customers			3,538				(3,906)				(507)
Net decrease/(increase) in reverse repurchase agreements and other similar lending			55,021				(10,264)				(23,492)
Net (decrease) in deposits and debt securities in issue			(1,983)				(13,447)				(4,125)
Net (decrease)/increase in repurchase agreements and other similar borrowing			(72,269)				(20,430)				9,886
Net decrease in derivative financial instruments			2,586				811				5,699
Net decrease in trading assets			18,350				13,423				6,896
Net (decrease)/increase in trading liabilities			(8,340)				8,670				(973)
Net (increase) in financial investments			(7,156)				(6,114)				(18,764)
Net (increase)/decrease in other assets			(14,694)				125				535
Net increase/(decrease) in other liabilities			7,409				(1,190)				(1,354)
Corporate income tax paid			(1,590)				(1,558)				(1,516)
Net cash from operating activities			(12,091)				(25,282)				(14,914)
Purchase of available for sale investments			(108,639)				(92,024)				(80,797)
Proceeds from sale or redemption of available for sale investments			120,843				69,474				74,151
Purchase of property, plant and equipment			(657)				(737)				(604)
Other cash flows associated with investing activities			(886)				632				532
Net cash from investing activities			10,661				(22,655)				(6,718)
Dividends paid			(1,452)				(1,547)				(1,390)
Proceeds of borrowings and issuance of subordinated debt			826				700				2,258
Repayments of borrowings and redemption of subordinated debt			(1,100)				(1,424)				(2,680)
Net redemption of shares and other equity instruments			(1,100)				2,078				-
Capital Contribution from Barclays PLC			1,412				6,553				-
Net redemption of shares issued to non-controlling interests			-				(100)				(111)
Net cash from financing activities			(1,414)				6,260				(1,923)
Effect of exchange rates on cash and cash equivalents			(431)				198				(4,111)
Net decrease in cash and cash equivalents			(3,275)				(41,479)				(27,666)
Effects of IFRS10 on opening balance			-				-				96
Effects of IAS32 on opening balance			-				-				1,130
Cash and cash equivalents at beginning of year			81,754				123,233				149,673
Cash and cash equivalents at end of year			78,479				81,754				123,233
Cash and cash equivalents comprise:
Cash and balances at central banks			39,695				45,687				86,191
Loans and advances to banks with original maturity less than three months			36,282				35,259				34,810
Available for sale treasury and other eligible bills with original maturity less than three months			2,322				644				2,228
Trading portfolio assets with original maturity less than three months			180				164				4
			78,479				81,754				123,233

Interest received by The Group was £22,384m (2013: £23,387m) and interest paid by The Group was £9,251m (2013: £10,656m).

The Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £4,448m at 31 December 2014 (2013: £4,722m ).

For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits, and cash equivalents comprise highly liquid investments that are convertible into cash with an insignificant risk of changes in value with original maturities of three months or less. Repurchase and reverse repurchase agreements are not considered to be part of cash equivalents.

 

410  |

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Barclays Bank PLC data Notes to the accounts

 

 

 

a Net interest income

 

			2014    £m				2013    £m				2012   £m
Cash and balances with central banks			193				219				253
Available for sale investments			1,615				1,804				1,736
Loans and advances to banks			452				468				376
Loans and advances to customers			14,677				15,613				16,448
Other			432				211				398
Interest income			17,369				18,315				19,211
Deposits from banks			(204)				(201)				(257)
Customer accounts			(1,434)				(2,602)				(2,490)
Debt securities in issue			(1,915)				(2,177)				(2,921)
Subordinated liabilities			(1,611)				(1,572)				(1,632)
Other			(67)				(110)				(261)
Interest expense			(5,231)				(6,662)				(7,561)
Net interest income			12,138				11,653				11,650
Interest income includes £153m (2013: £179m, 2012: £211m) accrued on impaired loans.   Other interest income principally includes interest income relating to reverse repurchase agreements and hedging activity. Similarly, other interest expense principally includes interest expense relating to repurchase agreements and hedging activity.   Included in net interest income is hedge ineffectiveness as detailed in the Barclays Plc disclosures on page 149.   b Net fee and commission income
			2014    £m				2013    £m				2012    £m
Banking, investment management and credit related fees and commissions			9,695				10,332				10,037
Foreign exchange commission			155				168				176
Fee and commission income			9,850				10,500				10,213
Fee and commission expense			(1,662)				(1,748)				(1,677)
Net fee and commission income			8,188				8,752				8,536
c Net Trading Income
			2014    £m				2013    £m				2012    £m
Trading income			3,276				6,768				7,929
Own credit gains/(losses)			34				(220)				(4,579)
Net trading income			3,310				6,548				3,350

 

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Barclays Bank PLC data

Notes to the accounts

 

 

 

d Net investment income

 

			2014    £m				2013    £m				2012    £m
Net gain from disposal of available for sale assets			620				145				298
Dividend income			9				14				42
Net gain from financial instruments designated at fair value			233				203				233
Other investment income			466				318				117
Net investment income			1,328				680				690
e Administrative and general expenses
			2014    £m				2013    £m				2012    £m
Infrastructure costs
Property and equipment			1,570				1,610				1,656
Depreciation of property, plant and equipment			585				647				669
Operating lease rentals			594				645				622
Amortisation of intangible assets			522				480				435
Impairment of property, equipment and intangible assets			172				149				17
Total infrastructure costs			3,443				3,531				3,399
Other costs
Consultancy, legal and professional fees			1,104				1,260				1,182
Subscriptions, publications, stationery and communications			842				869				727
Marketing, advertising and sponsorship			558				583				572
Travel and accommodation			213				307				324
UK bank levy			462				504				345
Goodwill Impairment			-				79				-
Other administration and general expenses			436				686				546
Total other costs			3,615				4,288				3,696
Provision for ongoing investigations and litigation relating to Foreign Exchange			1,250				-				-
Staff costs			11,005				12,155				11,467
Provision for PPI and interest rate hedging redress			1,110				2,000				2,450
Administration and general expensesa, b			20,423				21,974				21,012
f Tax
			2014    £m				2013    £m				2012    £m
Current tax charge
Current year			1,448				2,031				565
Adjustment for prior years			(19)				156				207
			1,429				2,187				772
Deferred tax charge/(credit)
Current year			92				(96)				(68)
Adjustment for prior years			(66)				(514)				(87)
			26				(610)				(155)
Tax charge			1,455				1,577				617

 

Notes

a Total administration and general expenses of £20,423m (2013: £21,974m; 2012: £21,012m) include depreciation of property, plant and equipment of £585m (2013: £647m; 2012: £669m), amortisation of intangible assets of £522m (2013: £480m; 2012: £435m), goodwill impairment of £nil (2013: £79m; 2012: £nil) and administration and other expenses of £19,316m(2013: £20,678m; 2012: £19,908m).

b The Group has realigned outsourcing costs from administration and general expenses to staff costs in order to more appropriately reflect the nature and internal management of these costs. The net effect of these movements is to reduce administration and general expenses and, to increase staff costs by £1,060m in 2014 and £1,084m in 2013.

 

412  |

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Barclays Bank PLC data Notes to the accounts

 

 

Tax relating to each component of other comprehensive income can be found in the consolidated statement of comprehensive income which additionally includes within Other a tax charge of £19m (2013: £37m charge, 2012: £95m credit) principally relating to share based payments in 2014 and the UK rate change in 2013.

The table below shows the reconciliation between the actual tax charge and the tax charge that would result from applying the standard UK corporation tax rate to The Group’s profit before tax.

 

			2014    £m				2013    £m				2012    £m
Profit before tax from continuing operations			2,309				2,885				650
Tax charge based on the standard UK corporation tax rate of 21.5% (2013:23.25%, 2012:24.5%)			496				671				159
Effect of non-UK profits/losses at statutory tax rates different from the UK statutory tax rate			171				267				401
Non-creditable taxes			329				559				563
Non-taxable gains and income			(282)				(234)				(604)
Share based payments			21				(13)				(63)
Deferred tax assets (previously not recognised)/not recognised			(183)				409				(135)
Change in tax rates			8				(155)				(75)
Non-deductible impairment charges, loss on disposals and UK bank levy			333				118				84
Other items including non-deductible expenses			647				313				167
Adjustments in respect of prior years			(85)				(358)				120
Tax charge			1,455				1,577				617
Effective tax rate			63.0%				54.7%				95.0%
Current tax assets and liabilities Movements on current tax assets and liabilities were as follows:
							2014    £m				2013    £m
Assets							181				252
Liabilities							(1,042)				(617)
As at 1 January							(861)				(365)
Income statement							(1,429)				(2,187)
Other comprehensive income							(1)				(5)
Corporate income tax paid							1,590				1,558
Other movementsa							12				138
							(689)				(861)
Assets							334				181
Liabilities							(1,023)				(1,042)
As at 31 December							(689)				(861)

 

Note

a    Other movements include current tax amounts relating to acquisitions, disposals and exchange gains and losses.

 

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Barclays Bank PLC data Notes to the accounts

 

 

g Trading portfolio assets

 

							2014   £m				2013   £m
Debt securities and other eligible bills							66,035				84,580
Equity securities							44,576				42,659
Traded loans							2,693				1,647
Commodities							1,451				4,203
Trading portfolio assets							114,755				133,089
h Available for sale financial investments
							2014   £m				2013   £m
Debt securities and other eligible bills							85,552				91,298
Equity securities							553				490
Available for sale financial investments							86,105				91,788
i Loans and advances to banks and customers
							2014   £m				2013   £m
Gross loans and advances to banks							42,657				39,832
Less: allowance for impairment							-				(10	)
Loans and advances to banks							42,657				39,822
Gross loans and advances to customers							433,222				441,485
Less: allowance for impairment							(5,455	)			(7,248	)
Loans and advances to customers							427,767				434,237
j Derivative financial instruments
			Notional contract amount   £m				Fair value Assets   £m				Liabilities   £m
Year ended 31 December 2014
Total derivative assets/(liabilities) held for trading			32,624,342				438,437				(438,623	)
Total derivative assets/(liabilities) held for risk management			268,448				1,639				(697	)
Derivative assets/(liabilities)			32,892,790				440,076				(439,320	)
Year ended 31 December 2013
Total derivative assets/(liabilities) held for trading			41,983,266				347,715				(345,845	)
Total derivative assets/(liabilities) held for risk management			303,645				2,745				(1,273	)
Derivative assets/(liabilities)			42,286,911				350,460				(347,118	)
k Subordinated liabilities
							2014   £m				2013   £m
Undated subordinated liabilities							5,640				6,127
Dated subordinated liabilities							16,045				16,122
Total subordinated liabilities							21,685				22,249

 

414  |

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Barclays Bank PLC data Notes to the accounts

 

 

 

l Ordinary shares, share premium, and other equity

 

Called up share capital, allotted and fully paid
			Ordinary share capital				Preference share capital				Share premium				Total share capital and share premium				Other equity instruments
			£m				£m				£m				£m				£m
As at 1 January 2014			2,342				60				12,092				14,494				2,078
AT1 equity issuance			-				-				-				-				2,272
Other movements			-				(22	)			-				(22	)			-
As at 31 December 2014			2,342				38				12,092				14,472				4,350
As at 1 January 2013			2,342				60				12,092				14,494				-
AT1 equity issuance			-				-				-				-				2,078
As at 31 December 2013			2,342				60				12,092				14,494				2,078

Ordinary shares

The issued ordinary share capital of Barclays Bank PLC, as at 31 December 2014, comprised 2,342 million ordinary shares of £1 each (2013: 2,342 million).

Ordinary share capital constitutes 60% (2013: 60%) of total share capital issued.

Preference shares

The issued preference share capital of Barclays Bank PLC, as at 31 December 2014, comprised 1,000 Sterling Preference Shares of £1 each (2013: 1,000); 31,856 Euro Preference Shares of €100 each (2013: 240,000); 20,930 Sterling Preference Shares of £100 each (2013: 75,000); 58,133 US Dollar Preference Shares of $100 each (2013: 100,000); and 237 million US Dollar Preference Shares of $0.25 each (2013: 237 million).

During Q2 2014, 108,144 Euro Preference Shares of €100 each, 54,070 Sterling Preference Shares of £100 each and 41,867 US Dollar Preference Shares of $100 each were repurchased by Barclays Bank PLC as part of an overall exercise exchange of those preference shares (together with certain subordinated debt instruments of Barclays Bank PLC) for three issuances of Barclays PLC Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities.

On 15 December 2014, 100,000 Euro Preference Shares of €100 each were redeemed for cash on their first call date.

Preference share capital constitutes 40% (2013: 40%) of total share capital issued.

Sterling £1 Preference Shares

1,000 Sterling cumulative callable preference shares of £1 each (the £1 Preference Shares) were issued on 31 December 2004 at nil premium.

The £1 Preference Shares entitle the holders thereof to receive Sterling cumulative cash dividends out of distributable profits of Barclays Bank PLC, semi-annually at a rate reset semi-annually equal to the Sterling interbank offered rate for six-month sterling deposits.

Barclays Bank PLC shall be obliged to pay such dividends if: (1) it has profits available for the purpose of distribution under the Companies Act 2006 as at each dividend payment date; and (2) it is solvent on the relevant dividend payment date, provided that a capital regulations condition is satisfied on such dividend payment date. The dividends shall not be due and payable on the relevant dividend payment date except to the extent that Barclays Bank PLC could make such payment and still be solvent immediately thereafter. Barclays Bank PLC shall be considered solvent on any date if: (1) it is able to pay its debts to senior creditors as they fall due; and (2) its auditors have reported within the previous six months that its assets exceed its liabilities. If Barclays Bank PLC shall not pay, or shall pay only in part, a dividend for a period of seven days or more after the due date for payment, the holders of the £1 Preference Shares may institute proceedings for the winding-up of Barclays Bank PLC. No remedy against Barclays Bank PLC shall be available to the holder of any £1 Preference Shares for the recovery of amounts owing in respect of £1 Preference Shares other than the institution of proceedings for the winding-up of Barclays Bank PLC and/or proving in such winding-up.

On a winding-up or other return of capital (other than a redemption or purchase by Barclays Bank PLC of any of its issued shares, or a reduction of share capital, permitted by the Articles of Barclays Bank PLC and under applicable law), the assets of Barclays Bank PLC available to shareholders shall be applied in priority to any payment to the holders of ordinary shares and any other class of shares in the capital of Barclays Bank PLC then in issue ranking junior to the £1 Preference Shares on such a return of capital and pari passu on such a return of capital with the holders of any other class of shares in the capital of Barclays Bank PLC then in issue (other than any class of shares in the capital of Barclays Bank PLC then in issue ranking in priority to the £1 Preference Shares on a winding-up or other such return of capital), in payment to the holders of the £1 Preference Shares of a sum equal to the aggregate of: (1) an amount equal to the dividends accrued thereon for the then current dividend period (and any accumulated arrears thereof) to the date of the commencement of the winding-up or other such return of capital; and (2) an amount equal to £1 per £1 Preference Share. After payment of the full amount of the liquidating distributions to which they are entitled, the holders of the £1 Preference Shares will have no right or claim to any of the remaining assets of Barclays Bank PLC and will not be entitled to any further participation in such return of capital.

 

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Barclays Bank PLC data Notes to the accounts

 

 

The £1 Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, subject to the Companies Act 2006 and its Articles. Holders of the £1 Preference Shares are not entitled to receive notice of, or to attend, or vote at, any general meeting of Barclays Bank PLC.

Euro Preference Shares

140,000 Euro 4.75% non-cumulative callable preference shares of €100 each (the 4.75% Preference Shares) were issued on 15 March 2005 for a consideration of €1,383.3m (£966.7m), of which the nominal value was €14m and the balance was share premium. The 4.75% Preference Shares entitle the holders thereof to receive Euro non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, annually at a fixed rate of 4.75% per annum on the amount of €10,000 per preference share until 15 March 2020, and thereafter quarterly at a rate reset quarterly equal to 0.71% per annum above the Euro interbank offered rate for three-month Euro deposits.

The 4.75% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15 March 2020, and on each dividend payment date thereafter at €10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

Sterling Preference Shares

75,000 Sterling 6.0% non-cumulative callable preference shares of £100 each (the 6.0% Preference Shares) were issued on 22 June 2005 for a consideration of £743.7m, of which the nominal value was £7.5m and the balance was share premium. The 6.0% Preference Shares entitle the holders thereof to receive Sterling non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, annually at a fixed rate of 6.0% per annum on the amount of £10,000 per preference share until 15 December 2017, and thereafter quarterly at a rate reset quarterly equal to 1.42% per annum above the London interbank offered rate for three-month Sterling deposits.

The 6.0% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15 December 2017, and on each dividend payment date thereafter at £10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

US Dollar Preference Shares

100,000 US Dollar 6.278% non-cumulative callable preference shares of $100 each (the 6.278% Preference Shares), represented by 100,000 American Depositary Shares, Series 1, were issued on 8 June 2005 for a consideration of $995.4m (£548.1m), of which the nominal value was $10m and the balance was share premium. The 6.278% Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, semi-annually at a fixed rate of 6.278% per annum on the amount of $10,000 per preference share until 15 December 2034, and thereafter quarterly at a rate reset quarterly equal to 1.55% per annum above the London interbank offered rate for three-month US Dollar deposits.

The 6.278% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15 December 2034, and on each dividend payment date thereafter at $10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

30 million US Dollar 6.625% non-cumulative callable preference shares of $0.25 each (the 6.625% Preference Shares), represented by 30 million American Depositary Shares, Series 2, were issued on 25 and 28 April 2006 for a consideration of $727m (£406m), of which the nominal value was $7.5m and the balance was share premium. The 6.625% Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, quarterly at a fixed rate of 6.625% per annum on the amount of $25 per preference share.

The 6.625% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on any dividend payment date at $25 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

55 million US Dollar 7.1% non-cumulative callable preference shares of $0.25 each (the 7.1% Preference Shares), represented by 55 million American Depositary Shares, Series 3, were issued on 13 September 2007 for a consideration of $1,335m (£657m), of which the nominal value was $13.75m and the balance was share premium. The 7.1% Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, quarterly at a fixed rate of 7.1% per annum on the amount of $25 per preference share.

The 7.1% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole or in part, on any dividend payment date at $25 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

46 million US Dollar 7.75% non-cumulative callable preference shares of $0.25 each (the 7.75% Preference Shares), represented by 46 million American Depositary Shares, Series 4, were issued on 7 December 2007 for a consideration of $1,116m (£550m), of which the nominal value was $11.5m and the balance was share premium. The 7.75% Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, quarterly at a fixed rate of 7.75% per annum on the amount of $25 per preference share.

The 7.75% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole or in part, on any dividend payment date at $25 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

106 million US Dollar 8.125% non-cumulative callable preference shares of $0.25 each (the 8.125% Preference Shares), represented by 106 million American Depositary Shares, Series 5, were issued on 11 April 2008 and 25 April 2008 for a total consideration of $2,650m (£1,345m), of which the nominal value was $26.5m and the balance was share premium. The 8.125% Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, quarterly at a fixed rate of 8.125% per annum on the amount of $25 per preference share.

 

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Barclays Bank PLC data Notes to the accounts

 

 

 

The 8.125% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole or in part, on any dividend payment date at $25 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

No redemption or purchase of any 4.75% Preference Shares, the 6.0% Preference Shares, the 6.278% Preference Shares, the 6.625% Preference Shares, the 7.1% Preference Shares, the 7.75% Preference Shares and the 8.125% Preference Shares (together, the Preference Shares) may be made by Barclays Bank PLC without the prior approval of the UK PRA and any such redemption will be subject to the Companies Act 2006 and the Articles of Barclays Bank PLC.

On a winding-up of Barclays Bank PLC or other return of capital (other than a redemption or purchase of shares of Barclays Bank PLC, or a reduction of share capital), a holder of Preference Shares will rank in the application of assets of Barclays Bank PLC available to shareholders: (1) junior to the holder of any shares of Barclays Bank PLC in issue ranking in priority to the Preference Shares; (2) equally in all respects with holders of other preference shares and any other shares of Barclays Bank PLC in issue ranking pari passu with the Preference Shares; and (3) in priority to the holders of ordinary shares and any other shares of Barclays Bank PLC in issue ranking junior to the Preference Shares.

The holders of the 6% Callable Perpetual Core Tier One Notes and the $681m 6.86% Callable Perpetual Core Tier One Notes of Barclays Bank PLC (together, the TONs) and the holders of the 5.3304% Step-up Callable Perpetual Reserve Capital Instruments, the $533m 5.926% Step-up Callable Perpetual Reserve Capital Instruments, the 6.3688% Step-up Callable Perpetual Reserve Capital Instruments, the $347m 7.434% Step-up Callable Perpetual Reserve Capital Instruments and the 14% Step-up Callable Perpetual Reserve Capital Instruments of Barclays Bank PLC (together, the RCIs) would, for the purposes only of calculating the amounts payable in respect of such securities on a winding-up of Barclays Bank PLC, subject to limited exceptions and to the extent that the TONs and the RCIs are then in issue, rank pari passu with the holders of the most senior class or classes of preference shares then in issue in the capital of Barclays Bank PLC. Accordingly, the holders of the preference shares would rank equally with the holders of such TONs and RCIs on such a winding-up of Barclays Bank PLC (unless one or more classes of shares of Barclays Bank PLC ranking in priority to the preference shares are in issue at the time of such winding-up, in which event the holders of such TONs and RCIs would rank equally with the holders of such shares and in priority to the holders of the preference shares).

Subject to such ranking, in such event, holders of the preference shares will be entitled to receive out of assets of Barclays Bank PLC available for distributions to shareholders, liquidating distributions in the amount of €10,000 per 4.75% Preference Share, £10,000 per 6.0% Preference Share, $10,000 per 6.278% Preference Share, $25 per 6.625% Preference Share, $25 per 7.1% Preference Share, $25 per 7.75% Preference Share and $0.25 per 8.125% Preference Share, plus, in each case, an amount equal to the accrued dividend for the then current dividend period to the date of the commencement of the winding-up or other such return of capital. If a dividend is not paid in full on any preference shares on any dividend payment date, then a dividend restriction shall apply.

This dividend restriction will mean that neither Barclays Bank PLC nor Barclays PLC may (a) declare or pay a dividend (other than payment by Barclays PLC of a final dividend declared by its shareholders prior to the relevant dividend payment date, or a dividend paid by Barclays Bank PLC to Barclays PLC or to a wholly owned subsidiary) on any of their respective ordinary shares, other preference shares or other share capital or (b) redeem, purchase, reduce or otherwise acquire any of their respective share capital, other than shares of Barclays Bank PLC held by Barclays PLC or a wholly owned subsidiary, until the earlier of: (1) the date on which Barclays Bank PLC next declares and pays in full a preference dividend; and (2) the date on or by which all the preference shares are redeemed in full or purchased by Barclays Bank PLC.

Holders of the preference shares are not entitled to receive notice of, or to attend, or vote at, any general meeting of Barclays Bank PLC. Barclays Bank PLC is not permitted to create a class of shares ranking as regards participation in the profits or assets of Barclays Bank PLC in priority to the preference shares, save with the sanction of a special resolution of a separate general meeting of the holders of the preference shares (requiring a majority of not less than three-fourths of the holders of the preference shares voting at the separate general meeting) or with the consent in writing of the holders of three-fourths of the preference shares.

Except as described above, the holders of the preference shares have no right to participate in the surplus assets of Barclays Bank PLC.

Other equity instruments

Other equity instruments of £4,350m (2013: £2,078m) include Additional Tier 1 (AT1) securities issued by Barclays Bank PLC during 2013 and 2014. During 2013, there were two separate issuances of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, with principal amounts of $2bn and €1bn. During 2014, there were three issuances of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, with principal amounts of $1.21bn, €1.08bn and £0.7bn (The Bank AT1 securities).

The Bank AT1 securities were issued to Barclays PLC as part of an overall exchange of £1,527m of Barclays Bank PLC preference shares and £607m of subordinated debt instruments (Tier 1 Notes and Reserve Capital Instruments) for new AT1 securities issued by B PLC (The Group AT1 securities). Upon completion of the exercise, the preference shares and subordinated debt instruments were cancelled by Barclays Bank PLC.

The cash repurchase of the preference shares by Barclays Bank PLC at a fair value of £1,683m was funded from retained earnings. In accordance with capital maintenance rules in the Companies Act 2006, a Capital Redemption Reserve (CRR) of £16m equal to the preference share capital nominal translated at current exchange rates was established in Barclays Bank PLC.

 

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Barclays Bank PLC data Notes to the accounts

 

 

The AT1 securities are perpetual securities with no fixed maturity and qualify as AT1 instruments under CRD IV.

Other shareholders’ equity

 

			2014				2013
			£m				£m
As at 1 January			485				645
Redemption			-				(100	)
Other movements			-				(60	)
As at 31 December			485				485

Included in other shareholders’ equity are capital notes which bear interest at rates fixed periodically in advance, based on London interbank rates. These notes are repayable in each case, at the option of the Bank, in whole on any interest payment date. The Bank is not obliged to make a payment of interest on its capital notes if, in the preceding six months, a dividend has not been declared or paid on any class of shares of Barclays PLC. During 2014 no upper tier 2 capital notes were redeemed (2013: £100m).

m Reserves

Currency translation reserve

The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign operations, net of the effects of hedging.

As at 31 December 2014 there was a debit balance of £582m (2013: £1,142m debit) in the currency translation reserve. The decrease in the debit balance of £560m (2013: £1,201m decrease to a debit balance) principally reflected the strengthening of USD against GBP. The currency translation reserve movement associated with non-controlling interests was a £74m debit (2013: £566m debit) reflecting the further depreciation of ZAR against GBP.

During the year a £91m net gain (2013: £5m) from recycling of the currency translation reserve was recognised in the income statement.

Available for sale reserve

The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.

As at 31 December 2014 there was a credit balance of £578m (2013: £151m credit) in the available for sale reserve. The increase of £427m (2013: £375m decrease) principally reflected a £5,336m gains from changes in fair value on Government Bonds, predominantly held in the liquidity pool, offset by £4,074m of losses from related hedging, £620m of net gains transferred to net profit and £103m of tax.

Cash flow hedging reserve

The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when the hedged transactions affect profit or loss.

As at 31 December 2014 there was a credit balance of £1,817m (2013: £273m credit) in the cash flow hedging reserve. The increase of £1,544m (2013: £1,826m decrease) principally reflected a £2,662m increase in the fair value of interest rate swaps held for hedging purposes as interest rate forward curves decreased, partly offset by £737m gains recycled to the income statement in line with when the hedged item affects profit or loss, and £381m of tax.

n Non-controlling interests

 

			Profit attributable to Non-       Controlling interest								Equity attributable to Non-       Controlling interest								Dividends paid to Non-Controlling interest
			2014 £m				2013 £m				2014 £m				2013 £m				2014 £m				2013 £m
Barclays Africa Group Limited			320				343				2,247				2,204				189				342
Other non-controlling interests			6				2				4				7				1				-
Total			326				345				2,251				2,211				190				342

Barclays Bank PLC owns 62.3% (2013: 62.3%) of Barclays Africa Group Limited.

 

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Barclays Bank PLC data

Notes to the accounts

 

 

Summarised financial information for Barclays Africa Group Limited

Summarised financial information for Barclays Africa Group Limited, before intercompany eliminations, is set out below:

 

			Barclays Africa Group Limited   2014				Barclays Africa Group Limited   2013
			£m				£m
Income statement information
Total income net of insurance claims			3,530				3,356
Profit after tax			765				807
Total other comprehensive income for the year, after tax			(7	)			(71	)
Total comprehensive income for the year			758				736
Statement of Cash flows information
Net cash inflows			43				109
Balance sheet information
Total assets			55,378				55,616
Total liabilities			50,150				50,500
Shareholder equity			5,228				5,116

o Dividends on ordinary shares

Ordinary dividends were paid to enable Barclays PLC to fund its dividend to shareholders.

The 2014 financial statements include £821m (2013: £734m) of dividends paid. This includes the final dividend declared in relation to 2013 of £512m (2013:£373m) and interim dividends of £309m (2013: 361m), resulting in interim dividends of 13p (2013: 15p) per ordinary share and a total dividend for the year of 35p (2013: 31p) per ordinary share paid during the year.

Dividends paid on the 4.75% €100 preference shares amounted to £394.46 per share (2013: £412.32). Dividends paid on the 4.875% €100 preference shares amounted to £385.81 per share (2013: £410.72). Dividends paid on the 6.0% £100 preference shares amounted to £600.00 per share (2013: £600.00). Dividends paid on the 6.278% US$100 preference shares amounted to £383.45 per share (2013: £391.96). Dividends paid on the 6.625% US$0.25 preference shares amounted to £1.02 per share (2013: £1.06). Dividends paid on the 7.1% US$0.25 preference shares amounted to £1.09 per share (2013: £1.13). Dividends paid on the 7.75% US$0.25 preference shares amounted to £1.19 per share (2013: £1.24). Dividends paid on the 8.125% US$0.25 preference shares amounted to £1.25 per share (2013: £1.30).

Dividends paid on preference shares amounted to £441m (2013: £471m). Dividends paid on other equity instruments amounted to £252m (2013: £4m). For further detail on other equity instruments, please refer to Note i.

p Capital

The Barclays Bank PLC Group’s policies and objectives for managing capital are the same as those for the Barclays PLC Group, disclosed on pages 101 to 102.

The table below provides details of the Barclays Bank PLC Group at 31 December 2014.

 

Regulatory capital			2014				2013
			£m				£m
Fully loaded Common Equity Tier 1			41,513				40,387
PRA Transitional Common Equity Tier 1			40,870				40,207
PRA Transitional Tier 1			52,062				50,147
PRA Transitional Total Capital Resources			66,343				66,447

The capital composition of Barclays Bank PLC Group is broadly equivalent to Barclays PLC Group shown in the table on page 155.

q Segmental reporting

Segmental reporting by Barclays Bank PLC is the same as that presented in the Barclays PLC financial statements, except for:

 

–

the difference in profit before tax of £53m (2013: £17m, 2012: £148m) between Barclays PLC and Barclays Bank PLC is included in Head Office Functions and Other Operations and Investment Bank; and

 

–

the difference in total assets of £787m (2013: £573m) is represented by holdings of Barclays PLC shares held for employee share schemes and Barclays Bank Plc issued loan notes to fund the derivatives created in Barclays Plc.

r Related Parties

The aggregate emoluments of all Directors and Officers of Barclays Bank PLC who held office during the year (2014: 34 persons, 2013: 38 persons, 2012: 29 persons) for the year ended 31st December 2014 amounted to £57.0m (2013: £70.3m, 2012: £70.9m). In addition, the aggregate amount set aside by the Bank and its subsidiaries for the year ended 31st December 2014, to provide pension benefits for the Directors and Officers amounted to £0.3m (2013: £0.6m, 2012: £0.4m).

 

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Barclays Bank PLC data

Additional financial information

 

 

 

Selected financial statistics			2014				2013				2012				2011				2010
			%				%				%				%				%
Return on average shareholders’ equitya			0.8				1.6				(0.5	)			5.6				6.6
Return on average total assetsb			-				0.1				-				0.2				0.3
Average shareholders’ equity as a percentage of average total assets			4.8				4.5				4.2				3.9				4.1
			2014				2013				2012				2011				2010
Selected income statement data			£m				£m				£m				£m				£m
Continuing operations:
Interest income			17,369				18,315				19,211				20,589				20,035
Interest expense			(5,231	)			(6,662	)			(7,561	)			(8,393	)			(7,517	)
Non-interest income			13,677				16,810				13,807				20,927				19,696
Operating expenses			(20,423	)			(21,974	)			(21,007	)			(20,881	)			(20,033	)
Impairment charges			(2,168	)			(3,071	)			(3,340	)			(5,602	)			(5,672	)
Share of post-tax results of associates and joint ventures			36				(56	)			110				60				58
Profit/(loss) on disposal of subsidiaries, associates and joint ventures			(471	)			6				28				(94	)			81
Gain on acquisitions			-				26				2				-				129
Profit before tax			2,309				2,885				650				5,865				6,013
Profit attributable to equity holders of the Parent:			528				963				(306	)			3,533				4,122
			2014				2013				2012				2011				2010
Selected balance sheet data			£m				£m				£m				£m				£m
Total shareholders’ equity			63,794				63,220				59,923				63,933				60,619
Subordinated liabilities			21,685				22,249				24,422				24,870				28,499
Deposits from banks, customer accounts and debt securities in issue			572,357				574,340				587,787				581,334				574,134
Loans and advances to banks and customers			470,424				474,059				472,809				485,277				472,793
Total assets			1,358,693				1,344,201				1,512,777				1,588,555				1,523,736

 

Notes

a Return on average shareholders’ equity represents profit attributable to the equity holders of the parent as a percentage of average shareholders’ equity.

b Return on average total assets represents profit attributable to the equity holders of the parent as a percentage of average total assets.

 

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Barclays Bank PLC data

Additional financial information

 

 

Ratio of earnings to fixed charges – Barclays Bank Plc (unaudited)			2014				2013				2012				2011				2010
			(In £m except for ratios)
Ratio of earnings to fixed charges
Fixed charges
Interest expense			5,231				6,662				7,561				8,393				7,517
Rental expense			261				254				251				268				254
Total fixed charges			5,492				6,916				7,812				8,661				7,771
Earnings
Income before taxes and non-controlling interests			2,309				2,885				650				5,974				6,079
Less: unremitted pre-tax income of associated companies and joint ventures			(45	)			95				(113	)			(47	)			(49	)
Total earnings excluding fixed charges			2,264				2,980				537				5,927				6,030
Fixed charges			5,492				6,916				7,812				8,661				7,771
Total earnings including fixed charges			7,756				9,896				8,349				14,588				13,801
Ratio of earnings to fixed charges			1.41				1.43				1.07				1.68				1.78
Ratio of earnings to combined fixed charges and preference dividends – Barclays Bank Plc (unaudited)			2014				2013				2012				2011				2010
			(In £m except for ratios)
Combined fixed charges, preference share dividends and similar appropriations
Interest expense			5,231				6,662				7,561				8,393				7,517
Rental expense			261				254				251				268				254
Fixed charges			5,492				6,916				7,812				8,661				7,771
Preference share dividends and similar appropriations			443				412				466				514				594
Total fixed charges			5,935				7,328				8,278				9,175				8,365
Earnings
Income before taxes and non-controlling interests			2,309				2,885				650				5,974				6,079
Less: unremitted pre-tax income of associated companies and joint ventures			(45	)			95				(113	)			(47	)			(49	)
Total earnings excluding fixed charges			2,264				2,980				537				5,927				6,030
Fixed charges			5,935				7,328				8,278				9,175				8,365
Total earnings including fixed charges			8,199				10,308				8,815				15,102				14,395
Ratio of earnings to fixed charges, preference share dividends and similar appropriations			1.38				1.41				1.06				1.65				1.72

 

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Glossary

    

 

 

 

 

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Glossary

 

 

 

432  |

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Glossary

 

 

 

 

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Glossary

 

 

 

434  |

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Glossary

 

 

 

 

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Glossary

 

 

 

436  |

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Signatures

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.

 

 

Date March 3, 2015		Barclays PLC
		(Registrant)
		By
				/s/ Tushar Morzaria
				Tushar Morzaria, Group Finance Director

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.

 

 

Date March 3, 2015		Barclays Bank PLC
		(Registrant)
		By
				/s/ Tushar Morzaria
				Tushar Morzaria, Group Finance Director

 

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EXHIBIT INDEX

 

Exhibit		Description
1.1		Articles of Association of Barclays PLC (incorporated by reference to the Form 6-K filed on May 2nd, 2013)
1.2		Articles of Association of Barclays Bank PLC (incorporated by reference to the Form 6-K filed on May 13th, 2010)
2.1		Long Term Debt Instruments: Neither Barclays PLC nor Barclays Bank PLC is party to any single instrument relating to long-term debt pursuant to which a total amount of securities exceeding 10% of either Barclays PLC’s or Barclays Bank PLC’s total assets (on a consolidated basis) is authorised to be issued. Each of Barclays PLC and Barclays Bank PLC hereby agrees to furnish to the Securities and Exchange Commission (the “Commission”), upon its request, a copy of any instrument defining the rights of holders of its long-term debt or the rights of holders of the long-term debt of any of its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed with the Commission.
4.0		Rules of the Barclays Group Performance Share Plan (2005) (incorporated by reference to the 2006 Form 20-F filed on March 26th, 2007)
4.1		Rules of the Barclays PLC Renewed 1986 Executive Share Option Scheme (incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-153723) filed on September 29th, 2008)
4.2		Rules of the Barclays PLC Approved Incentive Share Option Plan (incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-153723) filed on September 29th, 2008)
4.3		Rules of the Barclays PLC Unapproved Incentive Share Option Plans (incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-153723) filed on September 29th, 2008)
4.4		Rules of the Barclays PLC Executive Share Award Scheme - Incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-173899) filed on May 3rd, 2011)
4.5		Rules of the Barclays Group Special Award Performance Share Plan (incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-153723) filed on September 29th, 2008)
4.6		Rules of the Barclays Group Incentive Share Plan (incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-153723) filed on September 29th, 2008)
4.7		Rules of Barclays Bank PLC 1999 Directors Deferred Compensation Plan (amended and restated, effective January 1, 2008) (incorporated by reference to Barclays Bank PLC’s Registration Statement on Form S-8 (File no. 333-149301) filed on February 19th, 2008)
4.8		Rules of Barclays Bank PLC Senior Management Deferred Compensation Plan (amended and restated, effective January 1, 2008) (incorporated by reference to Barclays Bank PLC’s Registration Statement on Form S-8 (File no. 333-149302) filed on February 19th, 2008)
4.9		Rules of the Barclays Group Share Value Plan (incorporated by reference to the 2014 Form 20-F filed on March 14th, 2014)
4.10		Rules of the Barclays PLC Long Term Incentive Plan (Incorporated by reference to the Barclays PLC Registration Statement on Form S-8 (File no. 333-173899) filed on May 3rd, 2011)
4.11		Service Contract – Antony Jenkins (incorporated by reference to the 2012 Form 20-F filed on March 13 2013)
4.12		Contract of Employment – Tushar Morzaria (Incorporated by reference to the 2014 Form 20-F filed on 14th March 2014)
4.13		Appointment Letter – Sir John Sunderland (Incorporated by reference to the 2005 Form 20-F filed on 29th March 2006)
4.14		Appointment Letter – Fulvio Conti (incorporated by reference to the 2006 Form 20-F filed on March 26, 2007)
4.15		Appointment Letter – Sir Michael Rake (incorporated by reference to the 2007 20-F filed on March 26, 2008)
4.16		Appointment Letter – Reuben Jeffery III (incorporated by reference to the 2009 Form 20-F filed on March 19, 2010)

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4.17		Appointment Letter – Dambisa Moyo (incorporated by reference to the 2010 Form 20-F filed on March 21, 2011)
4.18		Appointment Letter – Sir David Walker (incorporated by reference to the 2013 Form 20-F filed on March 13, 2013)
4.19		Appointment Letter – Tim Breedon (incorporated by reference to the 2013 Form 20-F filed on March 13, 2013)
4.20		Appointment Letter – Diane de Saint Victor (incorporated by reference to the 2013 Form 20-F filed on March 13, 2013)
4.21		Appointment Letter – Michael Ashley (Incorporated by reference to the 2014 Form 20-F filed on 14th March 2014)
4.22		Appointment Letter – Wendy Lucas-Bull (Incorporated by reference to the 2014 Form 20-F filed on 14th March 2014)
4.23		Appointment Letter – Stephen Thieke (Incorporated by reference to the 2014 Form 20-F filed on 14th March 2014)
4.24		Appointment Letter – Frits van Paasschen (Incorporated by reference to the 2014 Form 20-F filed on 14th March 2014)
4.25		Appointment Letter - Crawford Gillies
4.26		Appointment Letter - John McFarlane
7.1		Ratios of earnings to fixed charges. The calculations can be found in the Barclays Bank PLC financial data on page 421 of the Form 20-F.
7.2		Ratios of earnings to combined fixed charges, preference share dividends and similar appropriations. The calculations can be found in the Barclays Bank PLC financial data on page 421 of the Form 20-F.
7.3		Ratios of earnings to fixed charges. The calculations can be found in the Barclays PLC financial data on page 401 of the Form 20-F.
7.4		Ratios of earnings to combined fixed charges, preference share dividends and similar appropriations. The calculations can be found in the Barclays PLC financial data on page 402 of the Form 20-F.
8.1		List of subsidiaries
11.1		Code of Ethics
12.1		Certifications filed pursuant to 17 CFR 240. 13(a)-14(a)
13.1		Certifications filed pursuant to 17 CFR 240. 13(a) and 18 U.S.C 1350(a) and 1350(b)
15.1		Consent of PricewaterhouseCoopers LLP for incorporation by reference of reports in certain securities registration statements of Barclays PLC and Barclays Bank PLC.
99.1		A table setting forth the issued share capital of Barclays PLC and the Barclays PLC Group’s total shareholders’ equity, indebtedness and contingent liabilities as at 31 December 2014.
99.2		A table setting forth the issued share capital of Barclays Bank PLC and the Barclays Bank PLC Group’s total shareholders’ equity, indebtedness and contingent liabilities as at 31 December 2014.