Group Reporting Changes 2007
Barclays PLC
19 June 2007
19th June 2007
BARCLAYS PLC
GROUP REPORTING CHANGES IN 2007
Barclays PLC today announces the impact of certain changes in Group structure
and reporting on 2006 and 2005 results, as advised in the Trading Update on the
24th of May.
The restatements have no impact on the Group Income Statement or Balance Sheet.
The 2006 and 2005 results for the businesses impacted are restated on pages 2 to
34 to show the effect of these changes.
Group structure changes - effective 1st January 2007
UK Retail Banking. The unsecured lending business, previously managed and
reported within Barclaycard and the Barclays Financial Planning business,
previously managed and reported within Barclays Wealth are now managed and
reported within UK Retail Banking. The changes combine these products with
related products already offered by UK Retail Banking. In the UK certain UK
Premier customers are now managed and reported within Barclays Wealth.
Barclaycard. The unsecured lending portfolio, previously managed and reported
within Barclaycard, is now managed and reported within UK Retail Banking.
International Retail and Commercial Banking - excluding Absa. A number of high
net worth customers are now managed and reported within Barclays Wealth in order
to better match client profiles to wealth services.
Barclays Wealth. In the UK and Western Europe certain Premier and high net worth
customers are now managed and reported within Barclays Wealth having been
previously reported within UK Retail Banking and International Retail and
Commercial Banking - excluding Absa.
The Barclays Financial Planning business previously managed and reported within
Barclays Wealth, is now managed and reported within UK Retail Banking. Finally
with effect from 1st January 2007 Barclays Wealth - closed life assurance
activities continues to be managed within Barclays Wealth and for reporting
purposes has been combined rather than being reported separately.
The structure and reporting remains unchanged for UK Business Banking,
International Retail and Commercial Banking- Absa, Barclays Capital, Barclays
Global Investors and Head Office Functions and Other Operations.
For further information please contact:
Investor Relations Media Relations
Mark Merson/James S Johnson Alistair Smith/Robin Tozer
+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6132/6586
The information in this announcement does not comprise statutory accounts within
the meaning of Section 240 of the Companies Act 1985 (the 'Act'). Statutory
accounts for the years ended 31st December 2006 and 31st December 2005, which
also include certain information required for the joint Annual Report on Form
20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange
Commission, have been delivered to the Registrar of Companies in accordance with
Section 242 of the Act and the group's auditors have reported on those accounts
and have given an unqualified report which does not contain a statement under
Section 237(2) or (3) of the Act.
Business analysis of profit before tax net of restatements
Group
Structure
and
2006 as disclosure 2006 2005
published changes restated restated
£m £m £m £m
UK Banking 2,578 (32) 2,546 2,236
UK Retail Banking 1,213 (32) 1,181 1,076
UK Business Banking 1,365 - 1,365 1,160
Barclaycard 382 76 458 639
International Retail and Commercial 1,270 (54) 1,216 593
Banking (IRCB)
IRCB - ex Absa 572 (54) 518 295
IRCB - Absa 698 - 698 298
Barclays Capital 2,216 - 2,216 1,431
Barclays Global Investors 714 - 714 540
Barclays Wealth 213 32 245 164
Barclays Wealth - closed life 22 (22) - -
Head office functions and other (259) - (259) (323)
operations
Profit before tax 7,136 - 7,136 5,280
UK Banking
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 4,035 432 4,467 4,213
Net fee and commission income 1,861 71 1,932 1,728
Net trading income 2 - 2 -
Net investment income 28 - 28 26
Principal transactions 30 - 30 26
Net premiums from insurance contracts 269 15 284 298
Other income 63 - 63 32
Total income 6,258 518 6,776 6,297
Net claims and benefits on insurance (35) - (35) (61)
contracts
Total income net of insurance claims 6,223 518 6,741 6,236
Impairment charges (461) (426) (887) (671)
Net income 5,762 92 5,854 5,565
Operating expenses excluding (3,263) (124) (3,387) (3,323)
amortisation of intangible assets
Amortisation of intangible assets (2) - (2) (3)
Operating expenses (3,265) (124) (3,389) (3,326)
Share of post-tax results of 5 - 5 (3)
associates and joint ventures
Profit on disposal of subsidiaries, 76 - 76 -
associates and joint ventures
Profit before tax 2,578 (32) 2,546 2,236
Cost:income ratio (1) 52% 50% 53%
Cost:net income ratio (2) 57% 58% 60%
Risk Tendency £515m £790m £665m
Return on average economic capital 38% 26% 21%
Economic profit £1,431m £1,327m £1,069m
Loans and advances to customers £123.9bn £131.0bn £125.5bn
Customer accounts £142.4bn £139.7bn £127.2bn
Staff Numbers 41,100 42,600 41,100
Total assets £139.9bn £147.6bn £138.0bn
Risk weighted assets £84.9bn £93.0bn £87.9bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims. The cost: income ratio for UK Banking for 2004
was 56%.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
UK Retail Banking
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 2,333 432 2,765 2,677
Net fee and commission income 1,219 71 1,290 1,139
Net trading income - - - -
Net investment income - - - 9
Principal transactions - - - 9
Net premiums from insurance contracts 269 15 284 298
Other income 42 - 42 15
Total income 3,863 518 4,381 4,138
Net claims and benefits on insurance (35) - (35) (61)
contracts
Total income net of insurance claims 3,828 518 4,346 4,077
Impairment charges (209) (426) (635) (494)
Net income 3,619 92 3,711 3,583
Operating expenses excluding (2,407) (124) (2,531) (2,501)
amortisation of intangible assets
Amortisation of intangible assets (1) - (1) -
Operating expenses (2,408) (124) (2,532) (2,501)
Share of post-tax results of 2 - 2 (6)
associates and joint ventures
Profit before tax 1,213 (32) 1,181 1,076
Cost:income ratio (1) 63% 58% 61%
Cost:net income ratio (2) 67% 68% 70%
Risk Tendency £225m £500m £415m
Return on average economic capital 39% 28% 26%
Economic profit £693m £589m £525m
Loans and advances to customers £67.6bn £74.7bn £72.1bn
Customer accounts £85.0bn £82.3bn £76.3bn
Staff Numbers 33,000 34,500 33,300
Total assets £74.0bn £81.7bn £78.1bn
Risk weighted assets £34.9bn £43.0bn £40.8bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
UK Business Banking
Group
2006 as structure 2006 as 2005 as
published changes published published
£m £m £m £m
Net interest income 1,702 - 1,702 1,536
Net fee and commission income 642 - 642 589
Net trading income 2 - 2 -
Net investment income 28 - 28 17
Principal transactions 30 - 30 17
Other income 21 - 21 17
Total income 2,395 - 2,395 2,159
Impairment charges (252) - (252) (177)
Net income 2,143 - 2,143 1,982
Operating expenses excluding (856) - (856) (822)
amortisation of intangible assets
Amortisation of intangible assets (1) - (1) (3)
Operating expenses (857) - (857) (825)
Share of post-tax results of 3 - 3 3
associates and joint ventures
Profit on disposal of subsidiaries, 76 - 76 -
associates and joint ventures
Profit before tax 1,365 - 1,365 1,160
Cost:income ratio (1) 36% 36% 38%
Cost:net income ratio (2) 40% 40% 42%
Risk Tendency £290m £290m £250m
Return on average economic capital 37% 37% 31%
Economic profit £738m £738m £544m
Loans and advances to customers £56.3bn £56.3bn £53.4bn
Customer accounts £57.4bn £57.4bn £50.9bn
Staff Numbers 8,100 8,100 7,800
Total assets £65.9bn £65.9bn £59.9bn
Risk weighted assets £50.0bn £50.0bn £47.1bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclaycard
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 1,843 (460) 1,383 1,231
Net fee and commission income 1,054 52 1,106 1,065
Net investment income 15 - 15 -
Net premiums from insurance 33 (15) 18 6
contracts
Total income 2,945 (423) 2,522 2,302
Net claims and benefits on (8) - (8) (3)
insurance contracts
Total income net of insurance 2,937 (423) 2,514 2,299
claims
Impairment charge and other (1,493) 426 (1,067) (753)
credit provisions
Net income 1,444 3 1,447 1,546
Operating expenses excluding (1,037) 73 (964) (891)
amortisation of intangible assets
Amortisation of intangible assets (17) - (17) (17)
Operating expenses (1,054) 73 (981) (908)
Share of post-tax results of (8) - (8) 1
associates and joint ventures
Profit before tax 382 76 458 639
Cost:income ratio (1) 36% 39% 39%
Cost:net income ratio (2) 73% 68% 59%
Risk Tendency £1,410m £1,135m £865m
Return on average economic 10% 16% 24%
capital
Economic profit £nil £137m £269m
Loans and advances to customers £25.5bn £18.2bn £16.5bn
Staff Numbers 8,600 8,500 7,700
Total assets £27.6bn £20.1bn £18.2bn
Risk weighted assets £25.2bn £17.0bn £13.6bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 1,659 (6) 1,653 1,045
Net fee and commission income 1,303 (82) 1,221 644
Net trading income 6 - 6 3
Net investment income 188 - 188 143
Principal transactions 194 - 194 146
Net premiums from insurance contracts 351 - 351 227
Other income 74 - 74 60
Total income 3,581 (88) 3,493 2,122
Net claims and benefits on insurance (244) - (244) (206)
contracts
Total income net of insurance claims 3,337 (88) 3,249 1,916
Impairment charges (167) - (167) (33)
Net income 3,170 (88) 3,082 1,883
Operating expenses excluding (2,111) 34 (2,077) (1,289)
amortisation of intangible assets
Amortisation of intangible assets (85) - (85) (47)
Operating expenses (2,196) 34 (2,162) (1,336)
Share of post-tax results of 49 - 49 46
associates and joint ventures
Profit on disposal of subsidiaries, 247 - 247 -
associates and joint ventures
Profit before tax 1,270 (54) 1,216 593
Cost:income ratio (1) 66% 67% 70%
Cost:net income ratio (2) 69% 70% 71%
Risk Tendency £220m £220m £175m
Return on average economic capital 37% 36% 17%
Economic profit £530m £493m £179m
Loans and advances to customers £53.5bn £53.2bn £49.2bn
Customer accounts £22.5bn £22.1bn £22.4bn
Staff Numbers 48,000 47,800 45,200
Total assets £68.9bn £68.6bn £63.4bn
Risk weighted assets £41.1bn £40.8bn £41.0bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking - excluding Absa
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 610 (6) 604 557
Net fee and commission income 448 (82) 366 316
Net trading income 17 - 17 31
Net investment income 66 - 66 88
Principal transactions 83 - 83 119
Net premiums from insurance contracts 111 - 111 129
Other income 20 - 20 23
Total income 1,272 (88) 1,184 1,144
Net claims and benefits on insurance (138) - (138) (162)
contracts
Total income net of insurance claims 1,134 (88) 1,046 982
Impairment charges (41) - (41) (14)
Net income 1,093 (88) 1,005 968
Operating expenses excluding (799) 34 (765) (706)
amortisation of intangible assets
Amortisation of intangible assets (9) - (9) (6)
Operating expenses (808) 34 (774) (712)
Share of post-tax results of 40 - 40 39
associates and joint ventures
Profit on disposal of subsidiaries, 247 - 247 -
associates and joint ventures
Profit before tax 572 (54) 518 295
Cost:income ratio (1) 71% 74% 73%
Cost:net income ratio (2) 74% 77% 74%
Risk Tendency £75m £75m £75m
Return on average economic capital 39% 36% 17%
Economic profit £346m £309m £89m
Loans and advances to customers £29.3bn £29.0bn £25.3bn
Customer accounts £11.4bn £11.0bn £10.2bn
Staff Numbers 14,100 13,900 12,500
Total assets £38.5bn £38.2bn £34.0bn
Risk weighted assets £20.4bn £20.1bn £20.2bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking - Absa
Group
2006 as structure 2006 as 2005 as
published changes published published
£m £m £m £m
Net interest income 1,049 - 1,049 488
Net fee and commission income 855 - 855 328
Net trading income (11) - (11) (28)
Net investment income 122 - 122 55
Principal transactions 111 - 111 27
Net premiums from insurance 240 - 240 98
contracts
Other income 54 - 54 37
Total income 2,309 - 2,309 978
Net claims and benefits on (106) - (106) (44)
insurance contracts
Total income net of insurance 2,203 - 2,203 934
claims
Impairment charges (126) - (126) (19)
Net income 2,077 - 2,077 915
Operating expenses excluding (1,312) - (1,312) (583)
amortisation of intangible assets
Amortisation of intangible assets (76) - (76) (41)
Operating expenses (1,388) - (1,388) (624)
Share of post-tax results of 9 - 9 7
associates and joint ventures
Profit before tax 698 - 698 298
Cost:income ratio (1) 63% 63% 67%
Cost:net income ratio (2) 67% 67% 37%
Risk Tendency £145m £145m £100m
Return on average economic capital 34% 34% 36%
Economic profit £184m £184m £90m
Loans and advances to customers £24.2bn £24.2bn £23.9bn
Customer accounts £11.1bn £11.1bn £12.2bn
Staff Numbers 33,900 33,900 32,700
Total assets £30.4bn £30.4bn £29.4bn
Risk weighted assets £20.7bn £20.7bn £20.8bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Capital
Group
2006 as structure 2006 as 2005 as
published changes published published
£m £m £m £m
Net interest income 1,158 - 1,158 1,065
Net fee and commission income 952 - 952 776
Net trading income 3,562 - 3,562 2,231
Net investment income 573 - 573 413
Principal transactions 4,135 - 4,135 2,644
Other income 22 - 22 20
Total income 6,267 - 6,267 4,505
Impairment charges (42) - (42) (111)
Net income 6,225 - 6,225 4,394
Operating expenses excluding (3,996) - (3,996) (2,961)
amortisation of intangible assets
Amortisation of intangible assets (13) - (13) (2)
Operating expenses (4,009) - (4,009) (2,963)
Profit before tax 2,216 - 2,216 1,431
Cost:income ratio (1) 64% 64% 66%
Cost:net income ratio (2) 64% 64% 67%
Average DVaR £37m £37m £32m
Risk Tendency £95m £95m £110m
Return on average economic capital 41% 41% 34%
Average net income generated per £560 £560 £498
member of staff ('000)
Economic profit £1,181m £1,181m £706m
Staff Numbers 13,200 13,200 9,900
Total assets £657.9bn £657.9bn £601.2bn
Risk weighted assets £137.6bn £137.6bn £116.7bn
Corporate Lending Portfolio £40.6bn £40.6bn £40.1bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Global Investors
Group
2006 as structure 2006 as 2005 as
published changes published published
£m £m £m £m
Net interest income 10 - 10 15
Net fee and commission income 1,651 - 1,651 1,297
Net trading income 2 - 2 2
Net investment income 2 - 2 4
Principal transactions 4 - 4 6
Total income 1,665 - 1,665 1,318
Operating expenses excluding (946) - (946) (775)
amortisation of intangible assets
Amortisation of intangible assets (5) - (5) (4)
Operating expenses (951) - (951) (779)
Share of post-tax results of - - - 1
associates and joint ventures
Profit before tax 714 - 714 540
Cost:income ratio (1) 57% 57% 59%
Average income generated per member £666 £666 £628
of staff ('000)
Return on average economic capital 228% 228% 248%
Economic profit £376m £376m £299m
Staff Numbers 2,700 2,700 2,300
Total assets £80.5bn £80.5bn £80.9bn
Risk weighted assets £1.4bn £1.4bn £1.5bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
Barclays Wealth
Group
structure
and
2006 as disclosure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 366 26 392 346
Net fee and commission income 665 9 674 593
Net trading income - 2 2 -
Net investment income - 154 154 264
Principal transactions - 156 156 264
Net premiums from insurance - 210 210 195
contracts
Other income 5 11 16 11
Total income 1,036 412 1,448 1,409
Net claims and benefits on insurance - (288) (288) (375)
contacts
Total income net of insurance claims 1,036 124 1,160 1,034
Impairment charges (2) - (2) (2)
Net income 1,034 124 1,158 1,032
Operating expenses excluding (817) (92) (909) (866)
amortisation of intangible assets (1)
Amortisation of intangible assets (4) - (4) (2)
Operating expenses (821) (92) (913) (868)
Profit before tax 213 32 245 164
Cost:income ratio (2) 79% 79% 84%
Cost:net income ratio (3) 79% 79% 84%
Risk Tendency £10m £10m £5m
Return on average economic capital 48% 40% 33%
Average net income per member of 138 181 167
staff (£'000)
Economic profit £144m £130m £103m
Customer accounts £25.2bn £28.3bn £25.8bn
Loans and advances to customers £5.7bn £6.2bn £5.0bn
Staff Numbers 7,800 6,600 6,200
Total assets £7.3bn £15.0bn £13.4bn
Risk weighted assets £5.7bn £6.1bn £4.3bn
Total Client Assets £93.0bn £116.1bn £97.5bn
(1)Operating expenses excluding amortisation of intangibles includes £67m and
£85m relating to endowment redress costs in 2006 and 2005 respectively.
(2)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(3)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Wealth - closed life
Group
2006 as disclosure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income (8) 8 - -
Net fee and commission income 50 (50) - -
Net trading income 2 (2) - -
Net investment income 154 (154) - -
Principal transactions 156 (156) - -
Net premiums from insurance 210 (210) - -
contracts
Other income 11 (11) - -
Total income 419 (419) - -
Net claims and benefits on (288) 288 - -
insurance contracts
Total income net of insurance 131 (131) - -
claims
Operating expenses (109) 109 - -
Profit/(loss) before tax 22 (22) - -
Cost:income ratio (1) 83%
Return on average economic (22%) - -
capital
Economic loss (£18m) - -
Staff Numbers - - -
Total assets £7.6bn - -
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
Head Office Functions and Other Operations
Group
2006 as structure 2006 2005
published changes restated restated
£m £m £m £m
Net interest income 80 - 80 160
Net fee and commission income (359) - (359) (398)
Net trading income 40 - 40 85
Net investment income 2 - 2 8
Principal transactions 42 - 42 93
Net premiums from insurance 197 - 197 146
contracts
Other income 39 - 39 24
Total income (1) - (1) 25
Impairment releases/(charges) 11 - 11 (1)
Net income 10 - 10 24
Operating expenses excluding (259) - (259) (343)
amortisation of intangible assets
Amortisation of intangible assets (10) - (10) (4)
Operating expenses (269) - (269) (347)
Loss before tax (259) - (259) (323)
Risk Tendency £10m £10m £25m
Staff Numbers 1,200 1,200 900
Total assets £7.1bn £7.1bn £9.3bn
Risk weighted assets £1.9bn £1.9bn £4.0bn
Total assets
Group
2006 as structure 2006 2005
Published changes restated restated
£m £m £m £m
UK Banking 139,902 7,674 147,576 137,981
UK Retail Banking 74,018 7,674 81,692 78,066
UK Business Banking 65,884 - 65,884 59,915
Barclaycard 27,628 (7,546) 20,082 18,236
International Retail and Commercial 68,848 (260) 68,588 63,383
Banking (IRCB)
IRCB - ex Absa 38,451 (260) 38,191 34,022
IRCB - Absa 30,397 - 30,397 29,361
Barclays Capital 657,922 - 657,922 601,193
Barclays Global Investors 80,515 - 80,515 80,900
Barclays Wealth 7,285 7,737 15,022 13,401
Barclays Wealth - closed life 7,605 (7,605) - -
Head office functions and other 7,082 7,082 9,263
operations
Total assets 996,787 - 996,787 924,357
Risk Weighted Assets
Group
2006 as structure 2006 2005
Published changes restated restated
£m £m £m £m
UK Banking 84,903 8,078 92,981 87,971
UK Retail Banking 34,942 8,078 43,020 40,845
UK Business Banking 49,961 - 49,961 47,126
Barclaycard 25,203 (8,168) 17,035 13,625
International Retail and Commercial 41,053 (236) 40,810 41,069
Banking (IRCB)
IRCB - ex Absa 20,325 (236) 20,082 20,235
IRCB - Absa 20,728 - 20,728 20,834
Barclays Capital 137,635 - 137,635 116,677
Barclays Global Investors 1,375 - 1,375 1,456
Barclays Wealth 5,744 326 6,077 4,305
Barclays Wealth - closed life - - - -
Head office functions and other 1,920 - 1,920 4,045
operations
Risk Weighted Assets 297,833 - 297,833 269,148
Profit before tax net of restatements
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
UK Banking 2,546 1,293 1,253
UK Retail Banking 1,181 581 600
UK Business Banking 1,365 712 653
Barclaycard 458 132 326
International Retail and Commercial Banking 1,216 704 512
(IRCB)
IRCB - ex Absa 518 323 195
IRCB - Absa 698 381 317
Barclays Capital 2,216 970 1,246
Barclays Global Investors 714 350 364
Barclays Wealth 245 116 129
Barclays Wealth - closed life - - -
Head office functions and other operations (259) (102) (157)
Profit before tax 7,136 3,463 3,673
UK Banking
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 4,467 2,287 2,180
Net fee and commission income 1,932 985 947
Net trading income 2 - 2
Net investment income 28 11 17
Principal transactions 30 11 19
Net premiums from insurance contracts 284 141 143
Other income 63 61 2
Total income 6,776 3,485 3,291
Net claims and benefits on insurance (35) (7) (28)
contracts
Total income net of insurance claims 6,741 3,478 3,263
Impairment charges (887) (481) (406)
Net income 5,854 2,997 2,857
Operating expenses excluding (3,387) (1,782) (1,605)
amortisation of intangible assets
Amortisation of intangible assets (2) (1) (1)
Operating expenses (3,389) (1,783) (1,606)
Share of post-tax results of associates 5 3 2
and joint ventures
Profit on disposal of subsidiaries, 76 76 -
associates and joint ventures
Profit before tax 2,546 1,293 1,253
Cost:income ratio (1) 50% 51% 49%
Cost:net income ratio (2) 58% 59% 56%
Return on average economic capital 26% 27% 24%
Economic profit £1,327m £734m £593m
Staff Numbers 42,600 42,900
Loans and advances to customers £131.0bn £127.8bn
Customer accounts £139.7bn £133.4bn
Total assets £147.6bn £142.0bn
Risk weighted assets £93.0bn £92.8bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
UK Retail Banking
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 2,765 1,407 1,358
Net fee and commission income 1,290 654 636
Net trading income - - -
Net investment income - - -
Principal transactions - - -
Net premiums from insurance contracts 284 141 143
Other income 42 42 -
Total income 4,381 2,244 2,137
Net claims and benefits on insurance (35) (7) (28)
contracts
Total income net of insurance claims 4,346 2,237 2,109
Impairment charges (635) (329) (306)
Net income 3,711 1,908 1,803
Operating expenses excluding amortisation (2,531) (1,328) (1,203)
of intangible assets
Amortisation of intangible assets (1) (1) -
Operating expenses (2,532) (1,329) (1,203)
Share of post-tax results of associates and 2 2 -
joint ventures
Profit on disposal of subsidiaries, - - -
associates and joint ventures
Profit before tax 1,181 581 600
Cost:income ratio (1) 58% 59% 57%
Cost:net income ratio (2) 68% 70% 67%
Return on average economic capital 28% 30% 26%
Economic profit £589m £323m £266m
Staff Numbers 34,500 35,000
Loans and advances to customers £74.7bn £72.2bn
Customer accounts £82.3bn £79.1bn
Total assets £81.7bn £78.5bn
Risk weighted assets £43.0bn £42.0bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
UK Business Banking
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 1,702 880 822
Net fee and commission income 642 331 311
Net trading income 2 - 2
Net investment income 28 11 17
Principal transactions 30 11 19
Other income 21 19 2
Total income 2,395 1,241 1,154
Impairment charges (252) (152) (100)
Net income 2,143 1,089 1,054
Operating expenses excluding amortisation (856) (454) (402)
of intangible assets
Amortisation of intangible assets (1) - (1)
Operating expenses (857) (454) (403)
Share of post-tax results of associates 3 1 2
and joint ventures
Profit on disposal of subsidiaries, 76 76 -
associates and joint ventures
Profit before tax 1,365 712 653
Cost:income ratio (1) 36% 37% 35%
Cost:net income ratio (2) 40% 42% 38%
Return on average economic capital 37% 39% 35%
Economic profit £738m £411m £327m
Staff Numbers 8,100 7,900
Loans and advances to customers £56.3bn £55.6bn
Customer accounts £57.4bn £54.3bn
Total assets £65.9bn £63.5bn
Risk weighted assets £50.0bn £50.8bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclaycard
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 1,383 705 678
Net fee and commission income 1,106 544 562
Net investment income 15 - 15
Net premiums from insurance contracts 18 11 7
Total income 2,522 1,260 1,262
Net claims and benefits on insurance (8) (4) (4)
contracts
Total income net of insurance claims 2,514 1,256 1,258
Impairment charge and other credit (1,067) (579) (488)
provisions
Net income 1,447 677 770
Operating expenses excluding amortisation (964) (527) (437)
of intangible assets
Amortisation of intangible assets (17) (9) (8)
Operating expenses (981) (536) (445)
Share of post-tax results of associates (8) (9) 1
and joint ventures
Profit before tax 458 132 326
Cost:income ratio (1) 39% 43% 35%
Cost:net income ratio (2) 68% 79% 58%
Return on average economic capital 16% 12% 20%
Economic profit £137m £22m £115m
Staff Numbers 8,500 8,300
Loans and advances to customers £18.2bn £17.4bn
Total assets £20.1bn £19.2bn
Risk weighted assets £17.0bn £15.7bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 1,653 809 844
Net fee and commission income 1,221 593 628
Net trading income 6 3 3
Net investment income 188 141 47
Principal transactions 194 144 50
Net premiums from insurance contracts 351 177 174
Other income 74 40 34
Total income 3,493 1,763 1,730
Net claims and benefits on insurance (244) (125) (119)
contracts
Total income net of insurance claims 3,249 1,638 1,611
Impairment charges (167) (99) (68)
Net income 3,082 1,539 1,543
Operating expenses excluding amortisation (2,077) (1,064) (1,013)
of intangible assets
Amortisation of intangible assets (85) (40) (45)
Operating expenses (2,162) (1,104) (1,058)
Share of post-tax results of associates 49 22 27
and joint ventures
Profit on disposal of subsidiaries, 247 247 -
associates and joint ventures
Profit before tax 1,216 704 512
Cost:income ratio (1) 67% 67% 66%
Cost:net income ratio (2) 70% 72% 69%
Return on average economic capital 36% 42% 28%
Economic profit £493m £324m £169m
Staff Numbers 47,800 46,800
Loans and advances to customers £53.2bn £50.2bn
Customer accounts £22.1bn £22.6bn
Total assets £68.6bn £64.9bn
Risk weighted assets £40.8bn £41.9bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking - excluding Absa
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 604 311 293
Net fee and commission income 366 181 185
Net trading income 17 5 12
Net investment income 66 37 29
Principal transactions 83 42 41
Net premiums from insurance contracts 111 61 50
Other income 20 6 14
Total income 1,184 601 583
Net claims and benefits on insurance (138) (73) (65)
contracts
Total income net of insurance claims 1,046 528 518
Impairment charges (41) (25) (16)
Net income 1,005 503 502
Operating expenses excluding amortisation (765) (441) (324)
of intangible assets
Amortisation of intangible assets (9) (5) (4)
Operating expenses (774) (446) (328)
Share of post-tax results of associates 40 19 21
and joint ventures
Profit on disposal of subsidiaries, 247 247 -
associates and joint ventures
Profit before tax 518 323 195
Cost:income ratio (1) 74% 85% 63%
Cost:net income ratio (2) 77% 89% 65%
Return on average economic capital 36% 48% 22%
Economic profit £309m £233m £76m
Staff Numbers 13,900 13,100
Loans and advances to customers £29.0bn £26.8bn
Customer accounts £11.0bn £10.5bn
Total assets £38.2bn £35.6bn
Risk weighted assets £20.1bn £21.2bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
International Retail and Commercial Banking - Absa
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 1,049 498 551
Net fee and commission income 855 412 443
Net trading income (11) (2) (9)
Net investment income 122 104 18
Principal transactions 111 102 9
Net premiums from insurance contracts 240 116 124
Other income 54 34 20
Total income 2,309 1,162 1,147
Net claims and benefits on insurance (106) (52) (54)
contracts
Total income net of insurance claims 2,203 1,110 1,093
Impairment charges (126) (74) (52)
Net income 2,077 1,036 1,041
Operating expenses excluding amortisation (1,312) (623) (689)
of intangible assets
Amortisation of intangible assets (76) (35) (41)
Operating expenses (1,388) (658) (730)
Share of post-tax results of associates 9 3 6
and joint ventures
Profit before tax 698 381 317
Cost:income ratio (1) 63% 59% 67%
Cost:net income ratio (2) 67% 64% 70%
Return on average economic capital 34% 32% 37%
Economic profit £184m £91m £93m
Staff Numbers 33,900 33,700
Loans and advances to customers £24.2bn £23.4bn
Customer accounts £11.1bn £12.1bn
Total assets £30.4bn £29.3bn
Risk weighted assets £20.7bn £20.7bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Capital
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 1,158 663 495
Net fee and commission income 952 436 516
Net trading income 3,562 1,423 2,139
Net investment income 573 296 277
Principal transactions 4,135 1,719 2,416
Other income 22 12 10
Total income 6,267 2,830 3,437
Impairment charges (42) 28 (70)
Net income 6,225 2,858 3,367
Operating expenses excluding amortisation of (3,996) (1,876) (2,120)
intangible assets
Amortisation of intangible assets (13) (12) (1)
Operating expenses (4,009) (1,888) (2,121)
Profit before tax 2,216 970 1,246
Cost:income ratio (1) 64% 67% 62%
Cost:net income ratio (2) 64% 66% 63%
Average DVaR £37 £37m £36m
Return on average economic capital 41% 36% 47%
Average net income generated per member of £560 £230 £330
staff ('000)
Economic profit £1,181m £510m £671m
Staff Numbers 13,200 10,500
Total assets £657.9bn £659.3bn
Risk weighted assets £137.6bn £130.5bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Global Investors
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 10 3 7
Net fee and commission income 1,651 814 837
Net trading income 2 1 1
Net investment income 2 2 -
Principal transactions 4 3 1
Total income 1,665 820 845
Operating expenses excluding amortisation (946) (467) (479)
of intangible assets
Amortisation of intangible assets (5) (3) (2)
Operating expenses (951) (470) (481)
Profit before tax 714 350 364
Cost:income ratio (1) 57% 57% 57%
Average income generated per member of £666 £306 £360
staff ('000)
Return on average economic capital 228% 202% 260%
Economic profit £376m £181m £195m
Staff Numbers 2,700 2,400
Total assets £80.5bn £77.3bn
Risk weighted assets £1.4bn £1.4bn
(1)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(2)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Barclays Wealth
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 392 200 192
Net fee and commission income 674 329 345
Net trading income 2 1 1
Net investment income 154 130 24
Principal transactions 156 131 25
Net Premium from Insurance contacts 210 117 93
Other income 16 11 5
Total income 1,448 788 660
Net claims and benefits from insurance (288) (206) (82)
contracts
Total Income net of insurance claims 1,160 582 578
Impairment charges (2) (1) (1)
Net income 1,158 581 577
Operating expenses excluding amortisation of (909) (463) (446)
intangible assets (1)
Amortisation of intangible assets (4) (2) (2)
Operating expenses (913) (465) (448)
Profit before tax 245 116 129
Cost:income ratio (2) 79% 80% 78%
Cost:net income ratio (3) 79% 80% 78%
Return on average economic capital 40% 30% 51%
Economic profit £130m £43m £87m
Staff Numbers 6,600 6,400
Customer accounts £28.3bn £28.0bn
Loans and advances to customers £6.2bn £5.5bn
Total assets £15.0bn £14.1bn
Risk weighted assets £6.1bn £5.2bn
Total Client Assets £116.1bn £105.9bn
(1)Operating expenses excluding amortisation of intangibles includes £67m, £34m
and £33m relating to endowment redress costs for full year 2006, half year ended
31st December 2006 and half year ended 30th June 2006 respectively.
(2)The cost:income ratio is defined as operating expenses compared to total
income net of insurance claims.
(3)The cost:net income ratio is defined as operating expenses compared to total
income net of insurance claims, less impairment charges.
Head Office Functions and Other Operations
Half-year ended
2006 31.12.06 30.06.06
£m £m £m
Net interest income 80 72 8
Net fee and commission income (359) (176) (183)
Net trading income 40 (15) 55
Net investment income 2 8 (6)
Principal transactions 42 (7) 49
Net premiums from insurance contracts 197 104 93
Other income 39 29 10
Total income (1) 22 (23)
Impairment releases/(charges) 11 35 (24)
Net income 10 57 (47)
Operating expenses excluding amortisation (259) (153) (106)
of intangible assets
Amortisation of intangible assets (10) (6) (4)
Operating expenses (269) (159) (110)
Loss before tax (259) (102) (157)
Staff Numbers 1,200 1,000
Total assets £7.1bn £9.3bn
Risk weighted assets £1.9bn £3.4bn
Restated Total Assets
Half-year ended
31.12.06 30.06.06 31.12.05
£m £m £m
UK Banking 147,576 141,970 137,981
UK Retail Banking 81,692 78,485 78,066
UK Business Banking 65,884 63,485 59,915
Barclaycard 20,082 19,155 18,236
International Retail and Commercial 68,588 64,916 63,383
Banking
International Retail and Commercial 38,191 35,616 34,022
Banking - ex Absa
International Retail and Commercial 30,397 29,300 29,361
Banking - Absa
Barclays Capital 657,922 659,328 601,193
Barclays Global Investors 80,515 77,298 80,900
Barclays Wealth 15,022 14,170 13,401
Head office functions and other 7,082 9,287 9,263
operations
Total assets 996,787 986,124 924,357
Restated Risk Weighted Assets
Half-year ended
31.12.06 30.06.06 31.12.05
£m £m £m
UK Banking 92,981 92,805 87,971
UK Retail Banking 43,020 42,021 40,845
UK Business Banking 49,961 50,784 47,126
Barclaycard 17,035 15,698 13,625
International Retail and Commercial 40,810 41,884 41,069
Banking
International Retail and Commercial 20,082 21,211 20,235
Banking - ex Absa
International Retail and Commercial 20,728 20,673 20,834
Banking - Absa
Barclays Capital 137,635 130,533 116,677
Barclays Global Investors 1,375 1,378 1,456
Barclays Wealth 6,077 5,202 4,305
Head office functions and other 1,920 3,424 4,045
operations
Risk weighted assets 297,833 290,924 269,148
Restated Business Margins
Half-year Half-year
Full-year ended ended Full-year
31.12.06 31.12.06 30.06.06 31.12.05
% % % %
UK Retail Banking assets 1.32 1.28 1.35 1.43
UK Retail Banking liabilities 2.05 2.08 2.01 2.02
UK Business Banking assets 1.92 1.98 1.86 1.87
UK Business Banking liabilities 1.46 1.48 1.44 1.46
Barclays Wealth assets 1.08 1.08 1.07 0.96
Barclays Wealth liabilities 1.10 1.12 1.08 1.04
Barclaycard assets 7.13 6.96 7.32 7.11
IRCB - ex Absa assets 1.29 1.34 1.24 1.36
IRCB - ex Absa liabilities 2.06 1.99 2.12 2.03
IRCB - Absa assets 2.95 2.46 3.45 3.52
IRCB - Absa liabilities 2.29 2.16 2.41 2.39
Average Balances
Half-year Half-year
Full-year ended ended Full-year
31.12.06 31.12.06 30.06.06 31.12.05
£m £m £m £m
UK Retail Banking assets 73,593 74,057 73,128 74,138
UK Retail Banking liabilities 76,498 78,120 74,876 71,003
UK Business Banking assets 52,018 52,933 51,103 43,985
UK Business Banking liabilities 44,839 46,007 43,671 40,545
Barclays Wealth assets 5,543 5,816 5,270 4,712
Barclays Wealth liabilities 27,744 27,694 27,523 26,136
Barclaycard assets 17,918 18,427 17,408 16,102
IRCB - ex Absa assets 27,210 28,341 26,046 22,743
IRCB - ex Absa liabilities 10,423 11,044 9,862 8,983
IRCB - Absa assets 24,388 24,548 24,228 20,225
IRCB - Absa liabilities 12,826 12,197 13,455 13,388
Restated business net interest income
Half-year Half-year
Full-year ended ended Full-year
31.12.06 31.12.06 30.06.06 31.12.05
UK Retail Banking assets 970 479 491 1,062
UK Retail Banking liabilities 1,566 819 747 1,436
UK Business Banking assets 999 527 471 823
UK Business Banking liabilities 655 343 312 592
Barclays Wealth assets 60 32 28 45
Barclays Wealth liabilities 306 158 148 273
Barclaycard assets 1,278 646 632 1,144
IRCB - ex Absa assets 349 190 160 310
IRCB - ex Absa liabilities 216 110 106 183
IRCB - Absa assets 719 305 414 308
IRCB - Absa liabilities 294 133 161 138
Business assets total net interest 4,375 2,179 2,196 3,692
income
Business liabilities total net 3,037 1,563 1,474 2,622
interest income
Business net interest income 7,412 3,742 3,670 6,314
Restated reconciliation of business net interest income to Group net interest
income
Half-year Half-year
Full-year ended ended Full-year
31.12.06 31.12.06 30.06.06 31.12.05
£m £m £m £m
Business net interest income 7,412 3,742 3,670 6,314
Other:
- Barclays Capital 1,158 663 495 1,065
- Barclays Global Investors 10 3 7 15
- Other 563 331 232 681
Group net interest income 9,143 4,739 4,404 8,075
Business net interest income is derived from the interest rate earned on average
assets or paid on average liabilities relative to the average Bank of England
base rate, local equivalents for international businesses or the rate managed by
the bank using derivatives. The margin is expressed as annualised business
interest income over the relevant average balance. Asset and liability margins
cannot be added together as they are relative to the average Bank of England
base rate, local equivalent for international businesses or the rate managed by
the bank using derivatives.
Average balances are calculated on daily averages for most UK banking operations
and monthly averages elsewhere.
Within the reconciliation of Group net interest income, there is an amount
captured as Other. This relates to: benefit of capital, including the
restatement of Reserve Capital Instruments and other capital instruments; Head
office functions and other operations; and net funding on non customer assets
and liabilities.
Restated Risk Tendency
Full-year Half-year Full-year
31.12.06 30.06.06 31.12.05
£m £m £m
UK Banking 790 705 665
UK Retail Banking 500 430 415
UK Business Banking 290 275 250
Barclaycard 1,135 1,105 865
International Retail and Commercial 220 195 175
Banking
International Retail and Commercial 75 70 75
Banking - ex Absa
International Retail and Commercial 145 125 100
Banking - Absa
Barclays Capital 95 125 110
Barclays Wealth 10 10 5
Head office functions and other operations 10 25 25
(1)
Risk Tendency 2,260 2,165 1,845
(1) Includes businesses in transition.
Restated economic capital demand (1)
Half-year ended
31.12.06 30.06.06 31.12.05
£m £m £m
UK Banking 6,000 5,850 5,850
UK Retail Banking 3,300 3,250 3,250
UK Business Banking 2,700 2,600 2,600
Barclaycard 1,950 2,150 1,900
International Retail and Commercial 1,950 1,850 1,450
Banking
International Retail and Commercial 1,200 1,150 1,150
Banking - ex Absa
International Retail and Commercial 750 700 300
Banking - Absa (2)
Barclays Capital (2) 3,750 3,600 2,900
Barclays Global Investors 150 150 150
Barclays Wealth 400 400 450
Head office functions and other operations 300 250 300
(3)
Business unit economic capital 14,500 14,250 13,000
Capital held at Group centre (4) 1,450 900 1,050
Economic capital requirement (excluding 15,950 15,150 14,050
goodwill)
Average historic goodwill and intangible 7,750 7,900 6,450
assets (5)
Total economic capital requirement (6) 23,700 23,050 20,500
(1)Year-end economic capital is calculated using a five point average over the
year and is rounded to the nearest £50m for presentation purposes. For the
half-year a three point average is used.
(2)Average economic capital demand for Absa relates to 5 months of 2005.
(3)Includes businesses in transition and capital for Head office and central
support functions.
(4)The Group's practice is to maintain an appropriate level of excess capital,
held at Group centre, which is not allocated to business units. This variance
arises as a result of capital management timing and includes capital held to
cover pension contribution risk.
(5)Average goodwill relates to purchased goodwill and intangible assets from
business acquisitions. Absa goodwill is included for 5 months of 2005. As at
31st December 2006 Absa goodwill and intangibles amounted to £1.5bn and total
goodwill and intangibles was £7.9bn.
(6)Total period-end economic capital requirement as at 31st December 2006 stood
at £25,150m (30th June 2006: £24,100m; 31st December 2005: £21,850m).
Restated economic profit generated by business
Full-year Half-year Full-year
31.12.06 30.06.06 31.12.05
£m £m £m
UK Banking 1,327 593 1,069
UK Retail Banking 589 266 525
UK Business Banking 738 327 544
Barclaycard 137 115 269
International Retail and Commercial Banking 493 169 179
International Retail and Commercial Banking 309 76 89
- ex Absa
International Retail and Commercial Banking 184 93 90
- Absa
Barclays Capital 1,181 671 706
Barclays Global Investors 376 195 299
Barclays Wealth 130 87 103
Head office functions and other operations (315) (143) (340)
3,329 1,687 2,285
Historic goodwill (739) (376) (615)
Variance to average shareholders' funds
(excluding minority interest) 114 74 82
Economic profit 2,704 1,385 1,752
Restated staff numbers
Half-year ended
31.12.06 30.06.06 31.12.05
UK Banking 42,600 42,900 41,100
UK Retail Banking 34,500 35,000 33,300
UK Business Banking 8,100 7,900 7,800
Barclaycard 8,500 8,300 7,700
International Retail and Commercial Banking 47,800 46,800 45,200
International Retail and Commercial Banking 13,900 13,100 12,500
- ex Absa
International Retail and Commercial Banking 33,900 33,700 32,700
- Absa
Barclays Capital 13,200 10,500 9,900
Barclays Global Investors 2,700 2,400 2,300
Barclays Wealth 6,600 6,400 6,200
Head office functions and other operations 1,200 1,000 900
Total Group permanent and fixed term 122,600 118,300 113,300
contract staff worldwide
Agency staff worldwide 9,100 8,700 7,000
Total including agency staff 131,700 127,000 120,300
- ENDS -
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