Final Results Part 2 of 2
Barclays PLC
13 February 2003
NOTES
1. Loans and advances to banks 2002 2001
£m £m
Banking business:
United Kingdom 11,510 7,116
Other European Union 2,154 2,278
United States 256 930
Rest of the World 1,531 1,924
15,451 12,248
Less provisions (82) (52)
15,369 12,196
Trading business 42,805 35,693
Total loans and advances to banks 58,174 47,889
Of the total loans and advances to banks, placings with banks were £48.1bn at
31st December 2002 (31st December 2001: £39.5bn). Placings with banks include
reverse repos of £41.0bn (31st December 2001: £32.0bn). The majority of the
placings have a residual maturity of less than one year.
2. Loans and advances to customers 2002 2001
. £m £m
Banking business:
United Kingdom
Financial institutions 6,158 5,616
Agriculture, forestry and fishing 1,747 1,626
Manufacturing 6,435 6,766
Construction 1,825 1,779
Property 5,695 5,600
Energy and water 1,290 1,153
Wholesale and retail distribution and leisure 7,858 7,571
Transport 2,366 1,894
Postal and communication 694 368
Business and other services 11,693 10,581
Home loans* 58,436 50,945
Other personal 21,357 19,678
Overseas customers 6,201 6,472
Finance lease receivables 4,145 4,205
Total United Kingdom 135,900 124,254
Overseas:
Other European Union 12,579 10,708
United States 6,138 6,614
Rest of the World 5,599 7,416
Total overseas offices 24,316 24,738
Banking loans and advances to customers 160,216 148,992
Less provisions (2,916) (2,664)
Less interest in suspense (78) (75)
157,222 146,253
Trading business 45,176 34,240
Total loans and advances to customers 202,398 180,493
*Excludes commercial property mortgages.
Of the total loans and advances to customers, reverse repos were £42.5bn (31st
December 2001: £29.7bn).
The UK industry classifications have been prepared at the level of the borrowing
entity. This means that a loan to the 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.
The primary growth in the UK occurred in home loans where balances increased 15%
to £58.4bn. The increase in Other personal loans is due in part to the
acquisition of the credit card business of Providian UK.
£1.4bn of the reduction in the Rest of the World balance arose from the
reorganisation of the Group's Caribbean business (see Acquisitions and disposals
on page 55).
3. Provisions for bad and doubtful debts
2002 2001
£m £m
Provisions at beginning of period 2,716 2,353
Acquisitions and disposals (11) 46
Exchange and other adjustments (77) (1)
Amounts written off
United Kingdom (950) (814)
Other European Union (31) (36)
United States (215) (94)
Rest of the World (24) (29)
(1,220) (973)
Recoveries (analysed below) 106 142
Sub-total 1,514 1,567
Provisions charged against profit:
New and increased specific provisions
United Kingdom 1,210 1,157
Other European Union 33 35
United States 404 173
Rest of the World 72 75
1,719 1,440
Less: Releases of specific provisions
United Kingdom (81) (87)
Other European Union (12) (10)
United States (10) (10)
Rest of the World (24) (26)
(127) (133)
Less: Recoveries
United Kingdom (88) (106)
Other European Union (7) (5)
United States (9) (27)
Rest of the World (2) (4)
(106) (142)
Net specific provisions charge 1,486 1,165
General provision - release (2) (16)
Net credit risk charge to profit 1,484 1,149
Provisions at end of year 2,998 2,716
Total provision for bad and doubtful debts at end of period comprise
Specific
United Kingdom 1,790 1,605
Other European Union 84 89
United States 257 89
Rest of the World 130 188
Total specific provisions 2,261 1,971
General provisions 737 745
2,998 2,716
The geographic analysis of provisions shown above is based on location of office
recording the transaction. The US charge includes specific provisions raised
against Argentinean exposures booked in the US.
The fall in the Rest of the World provisions is primarily a result of the
creation of FirstCaribbean which is now reported as an associated undertaking.
4. Other assets 2002 2001
restated
£m £m
Own shares 55 6
Balances arising from off-balance sheet
financial instruments 13,454 13,730
Shareholders' interest in long 867 884
term assurance fund
London Metal Exchange 829 1,236
warrants and other metals
trading positions
Sundry debtors 1,634 2,330
Prepayments and accrued income 2,982 2,553
19,821 20,739
Own shares represent Barclays PLC shares held in employee benefit trusts where
the Group retains the risks and rewards related to those shares.
5. Other liabilities 2002 2001
restated
£m £m
Obligations under finance leases payable 140 166
Balances arising from off-balance sheet financial 11,538 11,091
instruments
Short positions in securities 39,940 26,200
Current tax 641 589
Cash receipts from securitisation 318 605
Sundry creditors 3,987 4,279
Accruals and deferred income 4,352 4,377
Provisions for liabilities and charges 947 1,178
Dividend 788 728
62,651 49,213
Cash receipts from securitisation are in respect of the securitisation of a
portfolio of investment debt securities which did not qualify for linked
presentation under Financial Reporting Standard 5.
6. Potential credit risk lendings
The following table presents an analysis of potential credit risk
lendings.
The amounts, the geographical presentation of which is based on the
location of the office recording the transaction, are stated before deduction of
the value of security held, specific provisions carried or interest suspended.
2002 2001
restated
£m £m
Non-performing lendings
Non-accrual lendings:
United Kingdom 1,557 1,292
Other European Union 108 90
United States 744 306
Rest of the World 133 235
Accruing lendings where interest is being suspended:
United Kingdom 472 386
Other European Union 44 30
United States - -
Rest of the World 95 145
Other accruing lendings against which provisions have
been made:
United Kingdom 606 660
Other European Union 27 20
United States - 11
Rest of the World 44 43
Sub-totals:
United Kingdom 2,635 2,338
Other European Union 179 140
United States 744 317
Rest of the World 272 423
Accruing lendings 90 days overdue, against which no
provisions have been made:
United Kingdom 687 621
Other European Union 3 -
United States - -
Rest of the World - 27
Reduced rate lendings:
United Kingdom 4 4
Other European Union - -
United States - -
Rest of the World 2 1
Total non-performing lendings
United Kingdom 3,326 2,963
Other European Union 182 140
United States 744 317
Rest of the World 274 451
4,526 3,871
2002 2001
£m £m
Potential problem lendings
United Kingdom 993 968
Other European Union 2 2
United States 241 369
Rest of the World 68 63
1,304 1,402
2002 2001
% %
Provision coverage of non-performing lendings
United Kingdom 73.5 74.9
Other European Union 71.4 78.6
United States 43.7 61.8
Rest of the World 65.0 59.2
Total 68.0 72.1
Provision coverage of total potential credit risk lendings % %
United Kingdom 56.6 56.4
Other European Union 70.7 77.5
United States 33.0 28.6
Rest of the World 52.0 51.9
Total 52.8 52.9
% %
Specific provision coverage of non performing 50.0 50.9
lendings
General provision coverage of performing* 0.28 0.33
Loans
2002 2001
£m £m
Interest forgone on non-performing lendings:
Interest income that would have been recognised under 275 279
original contractual terms
Interest income included in profit (22) (50)
Interest forgone 253 229
*This is the ratio of general provisions to the gross loans and advances to
banks and customers (banking and trading)less the non performing loans.
The geographical coverage ratios reflect an allocation of general provisions.
UK non performing loans increased by £363m to £3,326m primarily reflecting
increases in the large corporate sector. This included loans to foreign
borrowers made in the UK and are spread across a number of sectors, with
telecommunications and energy being prominent. There were also additions from
UK middle market business customers.
US non performing loans increased by £427m to £744m reflecting the impact of
Argentinean exposures booked in the US and the continued difficult economic
conditions faced by the telecommunications and energy sectors. US potential
problem loans fell by £128m to £241m primarily due to the reclassification of
balances into the non performing categories.
Other European Union non performing loans increased from £140m to £182m.
However, in the Rest of the World they fell to £274m, a decrease of £177m,
primarily reflecting the completion in October 2002 of the Caribbean combination
with the Canadian Imperial Bank of Commerce.
The overall effect of these movements is that the Group coverage of non
performing loans (31st December 2001: 72.1%) fell slightly to 68.0%. The
coverage of total potential credit risk lendings at 52.8% was at a similar level
to the end of 2001(52.9%).
The ratio of specific provisions to non performing loans was 50.0% (31st
December 2001: 50.9%). The general provisions coverage ratio over performing
loans was 0.28% (31st December 2001: 0.33%). These two ratios relate the
provision balances to the relevant parts of the loan portfolio. Specific
provisions are created specifically for non performing loans, while general
provisions apply to losses on loans in the portfolio that have not yet been
identified as impaired.
7. Exposure to countries subject to International Monetary Fund (IMF)
liquidity support programmes
The table below provides data on total country exposure, which includes both
cross border and local currency obligations. Exposure includes amounts
outstanding plus commitments, and is net of provisions. The sample of countries
is based on those that make significant use of IMF liquidity support programmes,
i.e. those drawing more than Special Drawing Rights 2bn.
2002 2001
£bn £bn
Europe
Turkey 0.1 0.2
0.1 0.2
Asia
Indonesia 0.1 0.1
0.1 0.1
Latin America
Argentina 0.1 0.3
Brazil* 0.2 0.7
0.3 1.0
Total 0.5 1.3
*£0.1 billion of this total relates to local currency exposure
The total comprises: £bn £bn
Banks 0.2 0.7
Governments and sovereigns 0.1 0.1
Corporates and project financings 0.2 0.5
0.5 1.3
8. European Economic and Monetary Union (EMU)
Barclays is maintaining a prudent programme to validate and develop further its
existing plans relating to the potential membership of EMU by the UK, and to
conduct feasibility studies with selected suppliers and partners.
Barclays has contributed to the development of, and supports the conclusions
arising from, the British Bankers' Association and Association for Payment
Clearing Services' UK Banking Industry Outline Euro Blueprint published in June
2002.
Given the considerable uncertainty that continues to surround whether and when
the UK may enter, it has not been possible to draw any definitive conclusions as
to the final overall cost of preparing retail systems and operations.
Barclays incurred minimal expenditure during 2002 with respect to any decision
to introduce the euro in the UK.
9. Legal proceedings
Proceedings have been brought in the United States against a number of
defendants including Barclays following the collapse of Enron. In each case the
claims are against groups of defendants and it is not possible to estimate
Barclays possible loss, if any, in relation to them. Barclays considers the
claims against it to be without merit and is defending them vigorously.
Barclays does not expect the ultimate resolution of the Enron related claims or
the various other legal proceedings to which Barclays is party to have a
significant adverse effect on the financial position or profitability of the
Group.
10. Geographical analysis
2002 2001
restated
£m £m
Profit before tax
United Kingdom 2,898 2,680
Other European Union 351 410
United States (218) 85
Rest of the World 174 250
3,205 3,425
2002 2001
restated
Total assets £m £m
United Kingdom 302,386 266,830
Other European Union 26,126 20,278
United States 51,919 48,701
Rest of the World 22,635 20,803
403,066 356,612
The geographic presentation above is generally based on the office recording the
transaction.
Losses relating to and the assets of the South American Corporate Banking
portfolio are reflected in the US above.
11. Contingent liabilities and commitments
2002 2001
Contingent liabilities £m £m
Acceptances and endorsements 2,589 2,460
Guarantees and assets pledged as
collateral security 16,043 14,826
Other contingent liabilities 7,914 7,313
26,546 24,599
Commitments
Standby facilities, credit lines and 101,378 99,917
other commitments
12. Derivatives
The tables set out below analyse the contract or underlying principal amounts of
derivative financial instruments held for trading purposes and for the purposes
of managing the Group's structural exposures.
2002 2001
Foreign exchange derivatives £m £m
Contract or underlying principal amount
Forward foreign exchange 271,646 242,277
Currency swaps 159,132 146,297
Other exchange rate related contracts 64,399 75,114
495,177 463,688
Interest rate derivatives
Contract or underlying principal amount
Interest rate swaps 2,164,312 1,556,457
Forward rate agreements 180,043 103,447
OTC options bought and sold 592,137 502,703
Other interest rate related contracts 788,878 675,246
3,725,370 2,837,853
Credit derivatives 18,401 16,640
Equity, stock index and commodity derivatives
Contract or underlying principal amount 110,205 96,218
Other exchange rate related contracts are primarily over the counter (OTC)
options. Other interest rate related contracts are primarily exchange traded
options and futures.
Derivatives entered into as trading transactions, together with any associated
hedging thereof, are measured at fair value and the resultant profits and losses
are included in dealing profits. The tables below summarise the positive and
negative fair values of such derivatives, including an adjustment for netting
where the Group has the ability to insist on net settlement which is assured
beyond doubt, based on a legal right that would survive the insolvency of the
counterparty.
2002 2001
£m £m
Positive fair values
Foreign exchange derivatives 10,639 8,262
Interest rate derivatives 62,942 32,659
Credit derivatives 660 508
Equity, stock index and commodity derivatives 2,750 1,990
Effect of netting (60,327) (29,173)
Cash collateral meeting offset criteria (3,210) (516)
13,454 13,730
Negative fair values
Foreign exchange derivatives 11,281 7,554
Interest rate derivatives 61,332 31,432
Credit derivatives 106 161
Equity, stock index and commodity derivatives 2,778 2,031
Effect of netting (60,327) (29,173)
Cash collateral meeting offset criteria (3,632) (914)
11,538 11,091
13. Market risk
Market Risk is the risk that the Group's earnings or capital, or its ability to
meet business objectives, will be adversely affected by changes in the level or
volatility of market rates or prices such as interest rates including credit
spreads, foreign exchange rates, equity prices and commodity prices. It is
incurred as a result of both trading and asset/liability management activities.
The market risk management policies of the Group are determined by the Group
Risk Oversight Committee, which also recommends overall market risk appetite to
the Board Risk Committee. The Group's policy is that exposure to market risk
arising from trading activities should be concentrated in Barclays Capital. The
Group's banking businesses are also subject to market risk, which arises in
relation to non-trading positions, such as capital balances, demand deposits and
customer originated transactions and flows.
The Group uses a 'value at risk' measure as the primary mechanism for
controlling market risk. Daily Value at Risk (DVaR) is an estimate, with a
confidence level of 98%, of the potential loss which might arise if the current
positions were to be held unchanged for one business day. Daily losses
exceeding the DVaR figure are likely to occur, on average, only twice in every
one hundred business days. Actual outcomes are monitored regularly to test the
validity of the assumptions made in the calculation of DVaR.
Barclays Capital
In Barclays Capital, where the Group's trading activities are concentrated, the
formal process for the management of risk is through the Barclays Capital Risk
Management Committee. Day-to-day responsibility for market risk lies with the
senior management of Barclays Capital, supported by the Global Market Risk
Management Unit that operates independently of the trading areas.
DVaR is the main tool used for controlling market risk. In addition to DVaR,
there are a number of complementary techniques used to control market risk.
These include revenue loss triggers and fortnightly firm wide stress tests which
are also subject to trigger limits.
Barclays Capital uses the historical simulation method for calculating DVaR.
The length of the historical sample is two years. The interest rate DVaR
methodology maps interest rate exposures into government and non-governments
(six credit grades and interest rate swaps). This allows the measurement
process to discriminate between the market risk of holding bonds with different
credit qualities, for example AAA securities as against non-investment grade
securities. In particular, it shows the effectiveness of hedging strategies
such as shorting government bonds or swaps against non-government bond
portfolios.
The DVaR numbers shown in the table below are all based on the above
methodology.
Analysis of market risk exposures
Barclays Capital market risk exposure increased in 2002 compared to 2001, due
mainly to interest rate opportunities taken in the second half of 2002. The
year end DVaR for 2002 was £25.8m (2001: £21.3m).
DVaR
Twelve months to Twelve months to
31st December 2002 31st December 2001*
Average High** Low** Average High** Low**
Restated Restated Restated
£m £m £m £m £m £m
Interest rate risk 21.7 34.5 10.0 14.9 24.1 7.6
Credit spread risk 9.4 12.5 6.0 8.8 14.7 4.6
Foreign exchange 2.9 4.4 1.9 2.3 6.2 0.6
risk
Equities risk 3.6 5.4 2.1 3.3 6.4 2.1
Commodities risk 1.8 3.3 0.8 1.7 4.3 0.6
Diversification (16.2) (12.5)
effect
Total DvaR 23.2 35.7 13.4 18.5 25.4 11.3
* Restatements of interest rate DVaRs, total DVaRs and diversification effect
reflect the move to a methodology that identifies credit spread risk separately.
** The high (and low) DVaR figures reported for each category did not
necessarily occur on the same day as the high (and low) DVaR reported as a
whole. A corresponding diversification effect cannot be calculated and is
therefore omitted from the above table.
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' FUNDS
2002 2001
restated
£m £m
At beginning of year 14,485 13,183
Proceeds of shares issued (net of expenses) 135 210
Exchange rate translation differences (61) 3
Repurchase of ordinary shares* (546) (101)
Goodwill written back on disposals 10 -
Shares issued to the QUEST in relation to share
Option schemes for staff (48) (107)
Gain arising from transaction with third parties 206 -
Other items - (39)
Profit retained 1,024 1,336
At end of year 15,205 14,485
* Including nominal amount of £30m (2001: £5m)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
2002 2001
restated
£m £m
Profit attributable to the members of 2,230 2,446
Barclays PLC
Exchange rate translation differences (61) 3
Gain arising from transaction with third parties 206 -
Other items 8 (24)
Joint ventures and associated undertakings 2 (15)
Total recognised gains and losses relating 2,385 2,410
to the period
Prior period adjustment (23) -
(as explained on pages 55 and 56)
Total gains and losses recognised since 2,362 2,410
31st December 2001
Historical cost profits and losses
There is no material difference between profit before tax and profit retained,
as reported, and historical cost profits.
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
31.12.02 31.12.02 31.12.02 31.12.01 31.12.01 31.12.01
restated restated restated
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Assets £m £m % £m £m %
Treasury bills and other eligible
bills:
In offices in the UK 4,496 158 3.5 3,952 189 4.8
In offices outside the UK 960 66 6.9 1,114 89 8.0
Loans and advances to banks:
In offices in the UK 12,560 561 4.5 7,615 346 4.5
In offices outside the UK 5,535 161 2.9 5,827 265 4.5
Loans and advances to customers:
In offices in the UK 126,306 7,712 6.1 116,279 8,406 7.2
In offices outside the UK 25,896 1,132 4.4 23,573 1,498 6.4
Lease receivables:
In offices in the UK 4,245 209 4.9 4,384 245 5.6
In offices outside the UK 222 15 6.8 226 18 8.0
Debt securities:
In offices in the UK 40,115 1,790 4.5 36,858 2,069 5.6
In offices outside the UK 4,843 240 5.0 5,189 333 6.4
Average assets of banking business 225,178 12,044 5.3 205,017 13,458 6.6
Average assets of trading business 160,647 4,372 2.7 132,904 5,437 4.1
Total average interest earning assets 385,825 16,416 4.2 337,921 18,895 5.6
Provisions (2,808) (2,513)
Non-interest earning assets 46,753 48,796
Total average assets and 429,770 16,416 3.8 384,204 18,895 4.9
Interest income
Percentage of total average
assets in offices outside the UK 27.2% 27.5%
Average interest earning assets
and net interest income:
Banking business 225,178 6,188 2.7 205,017 5,970 2.9
Trading business 160,647 75 0.0 132,904 (387) (0.3)
Non margin interest 17 - (4) -
Total average interest earning 385,825 6,280 1.6 337,921 5,579 1.7
assets and net interest income
Total average interest earning
Assets related to:
Interest income 16,416 4.2 18,895 5.6
Interest expense (10,153) (2.6) (13,312) (3.9)
Adjustment for non margin interest 17 - (4) -
6,280 1.6 5,579 1.7
Notes
1 Loans and advances to customers and banks 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.
2 Average balances are based upon daily averages for most UK banking
operations and monthly averages elsewhere.
3 The average balance sheet does not include the retail life-fund assets
attributable to policyholders nor the related liabilities.
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
31.12.02 31.12.02 31.12.02 31.12.01 31.12.01 31.12.01
restated restated restated
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Liabilities and shareholders' funds £m £m % £m £m %
Deposits by banks:
In offices in the UK 31,880 987 3.1 27,547 1,144 4.2
In offices outside the UK 8,908 200 2.2 10,548 366 3.5
Customer accounts - demand accounts:
In offices in the UK 16,260 164 1.0 14,646 209 1.4
In offices outside the UK 1,846 27 1.5 1,734 37 2.1
Customer accounts - savings accounts:
In offices in the UK 41,722 982 2.4 37,341 1,153 3.1
In offices outside the UK 1,262 32 2.5 1,297 50 3.9
Customer accounts -
Other time deposits - retail:
In offices in the UK 40,075 1,303 3.3 38,521 1,906 4.9
In offices outside the UK 5,479 139 2.5 5,611 251 4.5
Customer accounts -
Other time deposits - wholesale:
In offices in the UK 35,607 1,175 3.3 31,474 1,316 4.2
In offices outside the UK 7,959 231 2.9 7,240 340 4.7
Debt securities in issue:
In offices in the UK 28,596 1061 3.7 30,378 1,546 5.1
In offices outside the UK 11,728 339 2.9 11,083 522 4.7
Dated and undated loan capital
and other subordinated liabilities
Principally in offices in the UK 11,012 645 5.9 9,165 601 6.6
Internal funding of trading business (42,626) (1,429) (3.4) (42,480) (1,953) (4.6)
Average liabilities of banking business 199,708 5,856 2.9 184,105 7,488 4.1
Average liabilities of trading business 162,858 4,297 2.6 134,609 5,824 4.3
Total average interest bearing 362,566 10,153 2.8 318,714 13,312 4.2
liabilities
Interest free customer deposits:
In offices in the UK 11,614 10,282
In offices outside the UK 2,132 2,151
Other non-interest bearing liabilities 38,172 38,828
Minority interests and
shareholders' funds 15,286 14,229
Total average liabilities,
shareholders'
funds and interest expense 429,770 10,153 2.4 384,204 13,312 3.5
Percentage of total average
non-capital liabilities in offices
outside the UK 25.5% 26.4%
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
2002 2001
£m £m
Net cash inflow from operating activities 7,391 3,799
Dividends received from joint ventures and 1 3
associated undertakings
Net cash outflow from returns on investment and servicing of (630) (620)
finance
Tax paid (828) (1,004)
Net cash (outflow)/inflow from capital expenditure and financial (6,756) (1,330)
investment
Net cash (outflow)/inflow from acquisitions and disposals (612) 6
Equity dividend paid (1,146) (1,014)
Net cash inflow/(outflow) before financing (2,580) (160)
Net cash inflow from financing 1,373 2,158
(Decrease)/increase in cash (1,207) 1,998
OTHER INFORMATION
Financial Summary 2002 2001 2000 1999 1998
restated restated restated restated
£m £m £m £m £m
Profit before tax 3,205 3,425 3,392 2,478 1,910
Profit after tax 2,250 2,482 2,491 1,823 1,389
Total capital resources 26,898 24,606 21,153 13,442 11,902
p P p p P
Earnings per ordinary share 33.7 36.8 40.4 29.6 22.3
Dividends per ordinary share 18.35 16.625 14.5 12.5 10.75
Net asset value per ordinary share 231 217 198 142 130
Dividend cover (times) 1.8 2.2 2.8 2.4 2.1
Risk asset ratios: % % % % %
Tier 1 ratio 8.2 7.8 7.2 7.5 7.3
Total ratio 12.8 12.5 11.0 11.3 10.6
Performance ratios
Return on average shareholders' funds: % % % % %
Pre-tax 21.0 23.9 33.8 29.2 23.8
Post-tax 14.7 17.4 24.8 21.5 17.3
Return on average total assets:
Pre-tax 0.7 0.9 1.1 1.0 0.8
Post-tax 0.5 0.6 0.8 0.7 0.6
Return on average weighted risk assets:
Pre-tax 1.9 2.2 2.6 2.2 1.7
Post-tax 1.4 1.6 1.9 1.6 1.3
Non interest income/total income 45.2 46.5 46.2 44.9 41.5*
Operating expenses/total income** 53.6 54.3 54.8 57.2 65.9
* Excluding the impact of the Finance Act 1998.
** Excluding the restructuring charges in the four years ended 31st
December 2002, Woolwich integration costs and fair value adjustments since 2000,
goodwill amortisation, the results of the former BZW businesses and the impact
of the Finance Act 1998.
PROFIT BEFORE TAX 31.12.02 30.06.02 31.12.01 30.06.01
restated restated
(half-year ended - unaudited) £m £m £m £m
Personal Financial Services 527 500 474 475
Barclays Private Clients 113 220 314 282
Barclaycard 312 316 266 254
Business Banking 622 640 519 581
Barclays Africa 57 48 62 68
Barclays Capital 223 370 325 337
Barclays Global Investors 50 60 41 37
Other operations (52) (117) (28) 19
Head office functions (70) (39) (52) (23)
Operating profit 1,782 1,998 1,921 2,030
Restructuring charge (132) (55) (108) (63)
Woolwich integration costs (48) (32) (70) (19)
Woolwich fair value adjustments (25) (26) (17) (16)
Goodwill amortisation (124) (130) (114) (115)
Exceptional items (3) - - (4)
1,450 1,755 1,612 1,813
TOTAL ASSETS
Personal Financial Services 71,871 67,877 64,314 62,433
Barclays Private Clients 14,016 14,854 13,886 13,451
Barclaycard 10,669 10,278 9,404 9,469
Business Banking 47,315 44,509 44,132 44,228
Barclays Africa 2,632 2,366 2,756 2,649
Barclays Capital 236,472 230,511 201,301 210,044
Barclays Global Investors 494 389 308 263
Other operations and
Head office functions 8,379 7,035 8,250 8,780
Goodwill 3,934 4,055 4,091 4,198
Retail life-fund assets 7,284 7,879 8,170 8,395
403,066 389,753 356,612 363,910
WEIGHTED RISK ASSETS
Personal Financial Services 41,100 38,673 36,154 35,229
Barclays Private Clients 11,713 9,856 9,197 8,682
Barclaycard 10,647 10,009 9,467 9,378
Business Banking 50,449 47,159 46,272 45,269
Barclays Africa 1,892 1,672 1,943 1,859
Barclays Capital 53,496 53,974 51,943 50,083
Barclays Global Investors 666 636 563 535
Other operations and
Head office functions 2,785 3,189 3,334 3,787
Goodwill - - - -
Retail life-fund assets - - - -
172,748 165,168 158,873 154,822
Consolidated profit and loss account by half-year (unaudited)
31.12.02 30.06.02 31.12.01 30.06.01
restated restated
£m £m £m £m
Interest receivable 6,007 6,037 6,518 6,940
Interest payable (2,935) (2,904) (3,495) (3,997)
Net interest income 3,072 3,133 3,023 2,943
Net fees and commissions receivable 1,961 1,964 1,957 1,780
Dealing profits 320 513 441 570
Other operating income 240 124 253 175
Total non-interest income 2,521 2,601 2,651 2,525
Operating income 5,593 5,734 5,674 5,468
Administration expenses - staff costs (1,877) (1,878) (1,921) (1,793)
Administration expenses - other (1,213) (1,099) (1,215) (1,088)
Depreciation and amortisation (271) (286) (273) (264)
Operating expenses (3,361) (3,263) (3,409) (3,145)
Operating profit before provisions 2,232 2,471 2,265 2,323
Provisions for bad and doubtful debts (771) (713) (651) (498)
Provisions for contingent liabilities and commitments (2) 1 1 (2)
Operating profit 1,459 1,759 1,615 1,823
Loss from joint ventures and associated
Undertakings (6) (4) (3) (6)
Exceptional items (3) - (4)
Profit on ordinary activities before tax 1,450 1,755 1,612 1,813
Tax on profit on ordinary activities (446) (509) (425) (518)
Profit on ordinary activities after tax 1,004 1,246 1,187 1,295
Minority interests (equity and non-equity) (11) (9) (11) (25)
Profit for the financial period attributable to the
members of Barclays PLC 993 1,237 1,176 1,270
Dividends (787) (419) (727) (383)
Profit retained for the financial year 206 818 449 887
Earnings per ordinary share 15.1p 18.6p 17.7p 19.1p
Dividend per ordinary share:
Interim - 6.35p - 5.75p
Final 12.0p - 10.875p -
OTHER INFORMATION
Registered office
54 Lombard Street, London, EC3P 3AH, England, United Kingdom. Tel: 020 7699
5000.
Company number: 48839.
Website
www.barclays.com
Registrar
The Registrar to Barclays PLC, PO Box 82, The Pavilions, Bridgwater Road,
Bristol, BS99 7NH
Tel: 0870 702 0196
Listing
The principal trading market for Barclays PLC ordinary shares is the London
Stock Exchange. Ordinary shares are also listed on the New York Stock Exchange
and the Tokyo Stock Exchange. Trading on the New York Stock Exchange is in the
form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary
shares of 25p each and is evidenced by an ADR. The ADR depositary is The Bank
of New York whose international telephone number is +1 (610) 312 5315, whose
domestic telephone number is 1-888-269-2377 and whose address is 22nd Floor, 101
Barclay Street, New York, NY 10286.
Filings with the SEC
Statutory accounts for the year ended 31st December 2002, which also include the
joint annual report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US
Securities and Exchange Commission (SEC), can be obtained from Corporate
Communications, Barclays Bank PLC, 200 Park Avenue, New York, NY 10166 or from
the Head of Investor Relations at Barclays registered office address shown
above, once they have been published in mid-March. Once filed with the SEC,
copies of the Form 20-F will also be available from the SEC's website
(www.sec.gov).
Results timetable
2002 preliminary results announcement: Thursday 13th February 2003
Ex dividend date: Wednesday 26th February 2003
Dividend record date: Friday 28th February 2003
2003 Annual General Meeting: Thursday 24th April 2003
Dividend payment date: Monday 28th April 2003
2003 interim results pre-close briefing: Tuesday 3rd June 2003
2003 interim results announcement: Thursday 7th August 2003
For further information, please contact: John Varley
Finance Director
+44 20 7699 5000 - Switchboard
Cathy Turner
Head of Investor Relations
+44 20 7699 3638 - Direct Line
Leigh Bruce
Corporate Communications Director
+44 20 7699 2658 - Direct Line
More information on Barclays, including the 2002 results, can be found on our
website at the following address: http://www.investor.barclays.com
This information is provided by RNS
The company news service from the London Stock Exchange
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