Definition of capital
Tier 1 (core capital))
Paid-up ordinary shares
General reserves (excluding any general reserve for credit losses which is included in Upper Tier 2capital)
Retained earnings
Current year's earnings
Foreign Currency translation reserve
Capital profits reserve (representing realised gains on the disposal of revalued assets that have notbeen transferred from asset revaluation reserves to retained earnings)
Minority interests arising from consolidation of Tier 1 capital of subsidiaries (only for Level 2
calculations )
Non-innovative residual Tier 1capital-compr ising per petual non-cumulative preference shares thatsatisfy relevant criteria hsted in APS 111
Innovative Tier 1 capital-comprising all other residualer I capital instruments that satisfy
relevant criteria' isted in APS 11