Barclays Bank PLC data

Consolidated income statement

For the year ended 31st December

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										2007	2006		2005
									Notes	£m	£m		£m
Continuing operations
Interest income									a	25,308	21,805		17,232
Interest expense									a	(15,707)	(12,662)		(9,157)
Net interest income										9,601	9,143		8,075
Fee and commission income									b	8,682	8,005		6,430
Fee and commission expense									b	(970)	(828)		(725)
Net fee and commission income										7,712	7,177		5,705
Net trading income									c	3,759	3,632		2,321
Net investment income									c	1,216	962		858
Principal transactions										4,975	4,594		3,179
Net premiums from insurance contracts									5	1,011	1,060		872
Other income									d	224	257		178
Total income										23,523	22,231		18,009
Net claims and benefits incurred on insurance contracts									5	(492)	(575)		(645)
Total income net of insurance claims										23,031	21,656		17,364
Impairment charges									7	(2,795)	(2,154)		(1,571)
Net income										20,236	19,502		15,793
Staff costs									8	(8,405)	(8,169)		(6,318)
Administration and general expenses									9	(4,141)	(3,914)		(3,768)
Depreciation of property, plant and equipment									23	(467)	(455)		(362)
Amortisation of intangible assets									22	(186)	(136)		(79)
Operating expenses										(13,199)	(12,674)		(10,527)
Share of post-tax results of associates and joint ventures									20	42	46		45
Profit on disposal of subsidiaries, associates and joint ventures										28	323		–
Profit before tax										7,107	7,197		5,311
Tax									10	(1,981)	(1,941)		(1,439)
Profit after tax										5,126	5,256		3,872
Profit attributable to minority interests										377	342		177
Profit attributable to equity holders										4,749	4,914		3,695
										5,126	5,256		3,872

The note numbers refer to the notes on pages 182 to 265, whereas the note letters refer to those on pages 270 to 278.

Barclays Bank PLC data

Consolidated balance sheet

As at 31st December

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											2007		2006
										Notes	£m		£m
Assets
Cash and balances at central banks											5,801		6,795
Items in the course of collection from other banks											1,836		2,408
Trading portfolio assets										e	193,726		177,884
Financial assets designated at fair value:
– held on own account										13	56,629		31,799
– held in respect of linked liabilities to customers under investment contracts										13	90,851		82,798
Derivative financial instruments										14	248,088		138,353
Loans and advances to banks										15	40,120		30,926
Loans and advances to customers										15	345,398		282,300
Available for sale financial investments										f	43,256		51,952
Reverse repurchase agreements and cash collateral on securities borrowed										17	183,075		174,090
Other assets										g	5,153		5,850
Current tax assets										19	518		557
Investments in associates and joint ventures										20	377		228
Goodwill										21	7,014		6,092
Intangible assets										22	1,282		1,215
Property, plant and equipment										23	2,996		2,492
Deferred tax assets										19	1,463		764
Total assets											1,227,583		996,503
Liabilities
Deposits from banks											90,546		79,562
Items in the course of collection due to other banks											1,792		2,221
Customer accounts											295,849		256,754
Trading portfolio liabilities										e	65,402		71,874
Financial liabilities designated at fair value										24	74,489		53,987
Liabilities to customers under investment contracts										13	92,639		84,637
Derivative financial instruments										14	248,288		140,697
Debt securities in issue											120,228		111,137
Repurchase agreements and cash collateral on securities lent										17	169,429		136,956
Other liabilities										h	10,514		10,337
Current tax liabilities										19	1,311		1,020
Insurance contract liabilities, including unit-linked liabilities										26	3,903		3,878
Subordinated liabilities										27	18,150		13,786
Deferred tax liabilities										19	855		282
Provisions										28	830		462
Retirement benefit liabilities										30	1,537		1,807
Total liabilities											1,195,762		969,397
Shareholders’ equity
Called up share capital										i	2,382		2,363
Share premium account										i	10,751		9,452
Other reserves										j	(170)		(484)
Other shareholders’ equity										k	2,687		2,534
Retained earnings										j	14,222		11,556
Shareholders’ equity excluding minority interests											29,872		25,421
Minority interests										l	1,949		1,685
Total shareholders’ equity											31,821		27,106
Total liabilities and shareholders’ equity											1,227,583		996,503

The note numbers refer to the notes on pages 182 to 265, whereas the note letters refer to those on pages 270 to 278.

These financial statements have been approved for issue by the Board of Directors on 7th March 2008.

Barclays Bank PLC data

Consolidated statement of recognised income and expense

For the year ended 31st December

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										2007	2006		2005
										£m	£m		£m
Available for sale reserve:
– Net gains/(losses) from changes in fair value										389	107		(217)
– Losses transferred to net profit due to impairment										13	86		–
– Net gains transferred to net profit on disposal										(563)	(327)		(120)
– Net losses transferred to net profit due to fair value hedging										68	14		260
Cash flow hedging reserve:
– Net gains/(losses) from changes in fair value										106	(437)		(50)
– Net losses/(gains) transferred to net profit										253	(50)		(69)
Currency translation differences										54	(781)		300
Tax										54	253		50
Other										22	25		(102)
Amounts included directly in equity										396	(1,110)		52
Profit after tax										5,126	5,256		3,872
Total recognised income and expense for the year										5,522	4,146		3,924
Attributable to:
Equity holders										5,135	4,132		3,659
Minority interests										387	14		265
										5,522	4,146		3,924

Barclays Bank PLC data

Consolidated cash flow statement

For the year ended 31st December

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																2007		2006		2005
																£m		£m		£m
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax																7,107		7,197		5,311
Adjustment for non-cash items:
Allowance for impairment																2,795		2,154		1,571
Depreciation and amortisation and impairment of property, plant, equipment and intangibles																669		612		450
Other provisions, including pensions																753		558		654
Net profit from associates and joint ventures																(42)		(46)		(45)
Net profit on disposal of investments and property, plant and equipment																(862)		(778)		(530)
Net profit from disposal of associates and joint ventures																(26)		(263)		–
Net profit from disposal of subsidiaries																(2)		(60)		–
Other non-cash movements																(1,471)		1,661		1,505
Changes in operating assets and liabilities:
Net (increase) in loans and advances to banks and customers																(77,987)		(27,385)		(63,177)
Net increase in deposits and debt securities in issue																91,451		46,944		67,012
Net (increase)/decrease in derivative financial instruments																(2,144)		1,196		841
Net (increase) in trading portfolio assets																(18,245)		(18,333)		(42,585)
Net (decrease)/increase in trading liabilities																(6,472)		310		9,888
Net (increase)/decrease in financial investments																(4,379)		1,538		27,129
Net (increase)/decrease in other assets																1,296		(1,527)		(411)
Net (decrease) in other liabilities																(1,056)		(1,580)		(2,852)
Tax paid																(1,583)		(2,141)		(1,082)
Net cash from operating activities																(10,198)		10,057		3,679
Purchase of available for sale investments																(26,947)		(47,109)		(53,626)
Proceeds from sale or redemption of available for sale investments																38,423		46,069		51,114
Purchase of intangible assets																(263)		(212)		(91)
Purchase of property, plant and equipment																(1,241)		(654)		(588)
Proceeds from sale of property, plant and equipment																617		786		98
Acquisition of subsidiaries, net of cash acquired																(270)		(248)		(2,115)
Disposal of subsidiaries, net of cash disposed																383		(15)		–
Increase in investment in subsidiaries																(668)		(432)		(160)
Decrease in investment in subsidiaries																57		44		49
Acquisition of associates and joint ventures																(220)		(162)		(176)
Disposal of associates and joint ventures																145		739		40
Other cash flows associated with investing activities																–		17		23
Net cash used in investing activities																10,016		(1,177)		(5,432)
Dividends paid																(3,418)		(2,373)		(2,325)
Proceeds from borrowings and issuance of debt securities																4,625		2,493		1,179
Repayments of borrowings and redemption of debt securities																(683)		(366)		(464)
Issue of shares and other equity instruments																1,355		585		2,383
Capital injection from Barclays PLC																1,434		–		–
Net issues of shares to minority interests																199		226		20
Net cash from financing activities																3,512		565		793
Exchange (loss)/gain on foreign currency cash and cash equivalents																(654)		552		(237)
Net increase/(decrease) in cash and cash equivalents																2,676		9,997		(1,197)
Cash and cash equivalents at beginning of year																30,402		20,405		21,602
Cash and cash equivalents at end of year																33,078		30,402		20,405
Cash and cash equivalents comprise:
Cash in hand																5,801		6,795		3,506
Loans and advances to banks																40,120		30,926		31,105
Less: amounts with original maturity greater than three months																(19,376)		(15,892)		(17,987)
																20,744		15,034		13,118
Available for sale financial investments																43,256		51,952		53,703
Less: non-cash and amounts with original maturity greater than three months																(41,872)		(50,933)		(53,487)
																1,384		1,019		216
Trading portfolio assets																193,726		177,884		155,730
Less: non-cash and amounts with maturity greater than three months																(188,591)		(170,346)		(152,190)
																5,135		7,538		3,540
Other																14		16		25
																33,078		30,402		20,405

In 2005, the opening cash and cash equivalents balance was adjusted to reflect the adoption of IAS 32 and IAS 39.

Barclays Bank PLC data

Notes to the accounts

a Net interest income

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										2007	2006		2005
										£m	£m		£m
Cash and balances with central banks										145	91		9
Available for sale investments										2,580	2,811		2,272
Loans and advances to banks										1,416	903		690
Loans and advances to customers										19,559	16,290		12,944
Other										1,608	1,710		1,317
Interest income										25,308	21,805		17,232
Deposits from banks										(2,720)	(2,819)		(2,056)
Customer accounts										(4,110)	(3,076)		(2,715)
Debt securities in issue										(6,651)	(5,282)		(3,268)
Subordinated liabilities										(878)	(777)		(605)
Other										(1,348)	(708)		(513)
Interest expense										(15,707)	(12,662)		(9,157)
Net interest income										9,601	9,143		8,075

Interest income includes £113m (2006: £98m, 2005: £76m) accrued on impaired loans.

Other interest income principally includes interest income relating to reverse repurchase agreements. 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 Note 14.

b Net fee and commission income

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										2007	2006		2005
										£m	£m		£m
Fee and commission income
Brokerage fees										109	70		64
Investment management fees										1,787	1,535		1,250
Securities lending										241	185		151
Banking and credit related fees and commissions										6,367	6,031		4,805
Foreign exchange commissions										178	184		160
Fee and commission income										8,682	8,005		6,430
Brokerage fees paid										(970)	(828)		(725)
Fee and commission expense										(970)	(828)		(725)
Net fee and commission income										7,712	7,177		5,705

c Principal transactions

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										2007	2006		2005
										£m	£m		£m
Rates related business										4,162	2,866		1,732
Credit related business										(403)	766		589
Net trading income										3,759	3,632		2,321
Gain from disposal of available for sale assets/investment securities										560	307		120
Dividend income on equity investments										26	15		22
Net gain from financial instruments designated at fair value										293	447		389
Other investment income										337	193		327
Net investment income										1,216	962		858
Principal transactions										4,975	4,594		3,179

Net trading income includes the profits and losses arising both on the purchase and sale of trading instruments and from the revaluation to market value, together with the interest income and expense from these instruments and the related funding cost.

Of the total net trading income, a £756m loss (2006: £947m gain, 2005: £498m gain) was made on securities and £640m gain (2006: £480m, 2005: £340m) was earned in foreign exchange dealings.

The net gain on financial assets designated at fair value included within principal transactions was £78m (2006: £489m, 2005: £391m) of which losses of £215m (2006: £42m gain, 2005: £2m gain) were included in net trading income and gains of £293m (2006: £447m, 2005: £389m) were included in net investment income.

The net loss on financial liabilities designated at fair value included within principal transactions was £231m (2006: £920m, 2005: £666m) all of which was included within net trading income.

The net gain from widening of credit spreads relating to Barclays Capital issued notes held at fair value was £658m (2006: £nil, 2005: £nil).

d Other income

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										2007	2006		2005
										£m	£m		£m
Increase in fair value of assets held in respect of linked liabilities to customers under investment contracts										5,592	7,417		9,234
Increase in liabilities to customers under investment contracts										(5,592)	(7,417)		(9,234)
Property rentals										53	55		54
Other income										171	202		124
Other income										224	257		178

Included in other income are sub-lease receipts of £18m (2006: £18m, 2005: £18m).

Included in other income in 2007 is a loss on the part disposal of Monument credit card portfolio and gains on reinsurance transactions in 2007 and 2006.

e Trading portfolio assets

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											2007		2006
											£m		£m
Trading portfolio assets
Treasury and other eligible bills											2,094		2,960
Debt securities											152,778		140,576
Equity securities											36,342		31,565
Traded loans											1,780		1,843
Commodities											732		940
Trading portfolio assets											193,726		177,884

Barclays Bank PLC data

Notes to the accounts

f Available for sale financial investments

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											2007		2006
											£m		£m
Debt securities											38,673		47,912
Treasury bills and other eligible bills											2,723		2,420
Equity securities											1,860		1,620
Available for sale financial investments											43,256		51,952
											2007		2006
Movement in available for sale financial investments											£m		£m
At beginning of year											51,952		53,703
Exchange and other adjustments											1,499		(3,999)
Acquisitions and transfers											26,950		47,109
Disposals (sale and redemption)											(37,498)		(44,959)
Gains from changes in fair value recognised in equity											391		182
Impairment											(13)		(86)
Amortisation of discounts/premium											(25)		2
At end of year											43,256		51,952

g Other assets

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											2007		2006
											£m		£m
Sundry debtors											4,045		4,298
Prepayments											551		658
Accrued income											400		722
Reinsurance assets											157		172
Other assets											5,153		5,850

Included in the above Group balances are £4,541m (2006: £5,065m) expected to be recovered within no more than 12 months after the balance sheet date; and balances of £612m (2006: £785m) expected to be recovered more than 12 months after the balance sheet date.

Other assets comprise £3,966m (2006: £4,097m) of receivables which meet the definition of financial assets.

h Other liabilities

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											2007		2006
											£m		£m
Accruals and deferred income											6,075		6,127
Sundry creditors											4,356		4,118
Obligations under finance leases											83		92
Other liabilities											10,514		10,337

Included in the above are balances of £9,058m (2006: £9,265m) expected to be settled within no more than 12 months after the balance sheet date; and balances of £1,456m (2006: £1,072m) expected to be settled more than 12 months after the balance sheet date.

Accruals and deferred income included £102m (2006: £107m) in relation to deferred income from investment contracts and £677m (2006: £822m) in relation to deferred income from insurance contracts for the Group.

i Called up share capital

Ordinary Shares

The authorised ordinary share capital of the Bank, as at 31st December 2007, was 3,000 million (2006: 3,000 million) ordinary shares of £1 each.

During the year, the Bank issued 7 million ordinary shares with an aggregate nominal value of £7m, for cash consideration of £111m.

Preference Shares

The authorised preference share capital of Barclays Bank PLC, as at 31st December 2007, was 1,000 Preference Shares (2006: 1,000) of £1; 400,000 Preference Shares of €100 each (2006: 400,000); 400,000 Preference Shares of £100 each (2006: 400,000); 400,000 Preference Shares of US$100 each (2006: 400,000); 150 million Preference Shares of US$0.25 each (2006: 80 million).

The issued preference share capital of Barclays Bank PLC, as at 31st December 2007, comprised 1,000 (2006: 1,000) Sterling Preference Shares of £1 each; 240,000 (2006: 240,000) Euro Preference Shares of €100 each; 75,000 (2006: 75,000) Sterling Preference Shares of £100 each; 100,000 (2006: 100,000) US Dollar Preference Shares of US$100 each; 131 million (2006: 30 million) US Dollar Preference Shares of US$0.25 each.

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											2007		2006
											£m		£m
Called up share capital, allotted and fully paid
At beginning of year											2,329		2,318
Issued for cash											7		11
At end of year											2,336		2,329
Called up preference share capital, allotted and fully paid
At beginning of year											34		30
Issued for cash											12		4
At end of year											46		34
Called up share capital											2,382		2,363

Share premium

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											2007		2006
											£m		£m
At beginning of year											9,452		8,882
Ordinary shares issued for cash											104		168
Preference shares issued for cash											1,195		402
At end of year											10,751		9,452

Sterling £1 Preference Shares

1,000 Sterling cumulative callable preference shares of £1 each (the ‘£1 Preference Shares’) were issued on 31st 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 1985 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. 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 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.

Barclays Bank PLC data

Notes to the accounts

i Called up share capital (continued)

Euro Preference Shares

100,000 Euro 4.875% non-cumulative callable preference shares of €100 each (the ‘4.875% Preference Shares’) were issued on 8th December 2004 for a consideration of €993.6m (£688.4m), of which the nominal value was €10m and the balance was share premium. The 4.875% 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 4.875% per annum on the amount of €10,000 per preference share until 15th December 2014, and thereafter quarterly at a rate reset quarterly equal to 1.05% per annum above the Euro interbank offered rate for three-month Euro deposits.

The 4.875% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15th December 2014, 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.

140,000 Euro 4.75% non-cumulative callable preference shares of €100 each (the ‘4.75% Preference Shares’) were issued on 15th 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 15th 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 15th 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 22nd June 2005 for a consideration of £732.6m, 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 15th 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 15th 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 US$100 each (the ‘6.278% Preference Shares’), represented by 100,000 American Depositary Shares, Series 1, were issued on 8th June 2005 for a consideration of US$995.4m (£548.1m), of which the nominal value was US$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 US$10,000 per preference share until 15th 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 15th December 2034, and on each dividend payment date thereafter at US$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 US$0.25 each (the ‘6.625% Preference Shares’), represented by 30 million American Depositary Shares, Series 2, were issued on 25th and 28th April 2006 for a consideration of US$727m (£406m), of which the nominal value was US$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 US$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 15th September 2011, and on each dividend payment date thereafter at US$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 US$0.25 each (the ‘7.1% Preference Shares’), represented by 55 million American Depositary Shares, Series 3, were issued on 13th September 2007 for a consideration of US$1,335m (£657m), of which the nominal value was US$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 US$25 per preference share.

The 7.1% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole or in part, on 15th December 2012, and on each dividend payment date thereafter at US$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 US$0.25 each (the ‘7.75% Preference Shares’), represented by 46 million American Depositary Shares, Series 4, were issued on 7th December 2007 for a consideration of US$1,116m (£550m), of which the nominal value was US$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 US$25 per preference share.

The 7.75% Preference Shares are redeemable at the option of Barclays Bank PLC, in whole or in part, on 15th December 2013, and on each dividend payment date thereafter at US$25 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.

i Called up share capital (continued)

No redemption or purchase of any 4.875% Preference Shares, the 4.75% Preference Shares, the 6.0% Preference Shares, the 6.278% Preference Shares, the 6.625% Preference Shares, the 7.1% Preference Shares and the 7.75% Preference Shares (together the ‘Preference Shares’) may be made by Barclays Bank PLC without the prior notification to the UK FSA and any such redemption will be subject to the Companies Act 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 £400m 6% Callable Perpetual Core Tier One Notes and the US$1,000m 6.86% Callable Perpetual Core Tier One Notes of Barclays Bank PLC (together, the ‘TONs’) and the holders of the US$1,250m 8.55% Step-up Callable Perpetual Reserve Capital Instruments, the US$750m 7.375% Step-up Callable Perpetual Reserve Capital Instruments, the €850m 7.50% Step-up Callable Perpetual Reserve Capital Instruments, the £500m 5.3304% Step-up Callable Perpetual Reserve Capital Instruments, the US$1,350m 5.926% Step-up Callable Perpetual Reserve Capital Instruments, the £500m 6.3688% Step-up Callable Perpetual Reserve Capital Instruments and the US$1,250m 7.434% 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 4.875% Preference Share, €10,000 per 4.75% Preference Share, £10,000 per 6.0% Preference Share, US$10,000 per 6.278% Preference Share, US$25 per 6.625% Preference Share, US$25 per 7.1% Preference Share and US$25 per 7.75% 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.

Barclays Bank PLC data

Notes to the accounts

j Reserves

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Other reserves
									Available	Cash flow
									for sale	hedging	Translation
									reserve	reserve	reserve		Total
									£m	£m	£m		£m
At 1st January 2007									184	(230)	(438)		(484)
Net gains from changes in fair value									385	182	–		567
Net (gains)/losses transferred to net profit									(560)	198	–		(362)
Currency translation differences									–	–	29		29
Losses transferred to net profit due to impairment									13	–	–		13
Changes in insurance liabilities									22	–	–		22
Net losses transferred to net profit due to fair value hedging									68	–	–		68
Tax									(1)	(124)	102		(23)
At 31st December 2007									111	26	(307)		(170)

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Retained earnings
													Retained
													earnings
													£m
At 1st January 2007													11,556
Profit attributable to equity holders													4,749
Equity-settled share schemes													567
Tax on equity-settled shares schemes													28
Vesting of Barclays PLC shares under share-based payment schemes													(524)
Dividends paid													(3,287)
Dividends on preference shares and other shareholders’ equity													(345)
Capital injection from Barclays PLC													1,434
Other movements													44
At 31st December 2007													14,222
At 1st January 2006													8,462
Profit attributable to equity holders													4,914
Equity-settled share schemes													663
Tax on equity-settled shares schemes													96
Vesting of Barclays PLC shares under share-based payment schemes													(394)
Dividends paid													(1,964)
Dividends on preference shares and other shareholders’ equity													(329)
Other movements													108
At 31st December 2006													11,556

Transfers from the cashflow hedging reserve to the income statement were: interest income £93m loss (2006: £7m loss), interest expense £11m gain (2006: £73m gain), net trading income £100m loss (2006: £15m loss) and administration and general expenses of £16m loss (2006: £nil).

k Other shareholders’ equity

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											2007		2006
											£m		£m
At 1st January											2,534		2,490
Appropriations											8		44
Other movements											145		–
At 31st December											2,687		2,534

Included in other shareholders’ equity are:

Issuances of reserve capital instruments which bear a fixed rate of interest ranging between 7.375%-8.55% until 2010 or 2011. After these dates, in the event that the reserve capital instruments are not redeemed, they will bear interest at rates fixed periodically in advance, based on London or European interbank rates. These instruments are repayable, at the option of the Bank, in whole on any coupon payment date falling in or after June or December 2010 or 2011. The Bank may elect to defer any payment of interest on the reserve capital instruments for any period of time. Whilst such deferral is continuing, neither the Bank nor Barclays PLC may declare or pay a dividend, subject to certain exceptions, on any of its ordinary shares or preference shares.

Issuance of 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.

l Minority interests

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											2007		2006
											£m		£m
At beginning of year											1,685		1,578
Share of profit after tax											377		342
Dividend and other payments											(131)		(127)
Equity issued by subsidiaries											137		233
Available for sale reserve: net gain/(loss) from changes in fair value											1		(2)
Cash flow hedges: net loss from changes in fair value											(16)		(9)
Currency translation differences											16		(316)
Additions											27		20
Disposals											(111)		(34)
Other											(36)		–
At end of year											1,949		1,685

m Dividends

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											2007		2006
											£m		£m
On ordinary shares
Final dividend											791		730
Interim dividends											2,496		1,234
Dividends											3,287		1,964

These dividends are paid to enable Barclays PLC to fund its dividends to its shareholders and in 2007, to fund the repurchase by Barclays PLC of ordinary share capital.

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Dividends paid on preference shares amounted to £193m (2006: £174m). Dividends paid on other equity instruments as detailed in Note k amounted
to £152m (2006: £151m).

n Financial risks

The only significant financial instruments that are held by Barclays Bank PLC and not Barclays PLC are investments in Barclays PLC ordinary shares, dealt with as trading portfolio equity assets and available for sale financial investments as appropriate.

There consequently are no significant differences in exposures to market risk, credit risk, liquidity risk and the fair value of financial instruments between Barclays PLC and Barclays Bank PLC, and no differences in the manner in which these financial risks are managed. Therefore the disclosures regarding financial risks appearing in Notes 45 to 48 are in all material respects the same for Barclays Bank PLC and Barclays PLC.

o Capital

The Barclays Bank PLC Group’s policies and objectives for managing capital are the same as those for the Barclays PLC Group, disclosed in Note 50.

The table below provides details under Basel I of the Barclays Bank PLC Group capital ratios and risk weighted assets at 31st December 2007 and 2006.

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											2007		2006
											%		%
Capital Ratios
Tier 1 ratio											7.5		7.5
Risk asset ratio											11.8		11.5

											2007		2006
											£m		£m
Total risk weighted assets											353,471		297,833

The table below provides details of the regulatory capital resources of Barclays Bank PLC Group.

											2007		2006
											£m		£m
Total qualifying Tier 1 capital											26,534		22,455
Total qualifying Tier 2 capital											17,123		14,036
Total deductions											(1,889)		(2,330)
Total net capital resources											41,768		34,161