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a) Subsidiary undertakings
Details of the principal subsidiary undertakings are shown in note 44. In accordance with FRS 8, transactions or balances
between Group entities that have been eliminated on consolidation are not reported.
b) Associated undertakings and joint ventures
The Group provides certain banking and financial services for associated undertakings and joint ventures. These are conducted
on similar terms to third party transactions and are not material to the Group’s results. Details of lendings to associated
undertakings and joint ventures are set out in note 21.
Edotech Limited, an associated undertaking, has provided printing services to the Group from May 2000. The cost of these
services provided in the year was £10.7m. There were no balances outstanding at the year end.
Intelligent Processing Systems Limited (IPSL) is a joint venture between the Group, Lloyds TSB Bank PLC and Unisys Limited.
The Bank has outsourced its cheque processing services to IPSL. The cost of these core services to the Barclays Group in the
UK provided in the year was £9.5m. There were no balances outstanding at the year end.
The Group has provided IndigoSquare Limited, a Barclaycard branded internet shopping portal joint venture launched on
11th October 2000, with administrative services. The cost of transactions and the outstanding balances at the year end
included in sundry debtors are £4.9m. IndigoSquare has a licensing agreement with the Bank that permits the use of certain
trademarks owned by Barclays with the prior approval of the Bank.
Gresham Insurance Company Limited (Gresham) became an associated undertaking following the acquisition of The Woolwich.
The arrangement enables Gresham to underwrite major household insurances provided to customers of The Woolwich.
Underwriting payments made to Gresham during the year were £49.3m and balances outstanding of £9.3m are included in
sundry creditors.
Global Home Loans Limited (GHL) became a joint venture following the acquisition of The Woolwich. The Woolwich is engaged
in transactions where the origination and processing activities of its mortgages are outsourced to GHL and its subsidiaries.
The fees payable to GHL during the year were £40.4m after taking into account payments made by The Woolwich as agent of
GHL for salaries and other expenses £4.5m was owed by GHL at the year end and is included in sundry debtors.
c) Pension funds, unit trusts and investment funds
The Group provides a number of normal banking and financial services for the Barclays Bank pension funds (principally the UK
Retirement Fund), and also for unit trusts and investment funds managed by Group companies which are conducted on similar
terms to third party transactions and are not material to the Group.
d) Directors
Details of Directors’ emoluments are set out in note 57
and in the Corporate governance section. Details of
transactions between Directors and the Group are set out in note 59.
In the ordinary course of business the Bank makes loans to companies where a Director or officer is also a Director of Barclays.
These loans are made on substantially the same criteria and terms, including interest rates and collateral, as those prevailing
at the time for comparable transactions with other persons. In addition, F.I GROUP PLC, of which Hilary Cropper CBE is
Executive Chairman, provides software support and development resource capability to the Group. The total value of these
transactions for the years ending 31 December 2000, 1999 and 1998 was £15.5m, £10.3m and £9.9m respectively.
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