Pre-close Briefings with Analysts
Barclays PLC
6 December 1999
BARCLAYS PLC
PRE-CLOSE BRIEFINGS WITH ANALYSTS
Barclays PLC ('Barclays') will be meeting analysts ahead of
its close period for the year ended 31st December 1999.
In the third quarter of 1999, all the Group's businesses
continued the good performance experienced in the first half
of 1999. Key trends affecting the performance are as follows:
Net interest income: Within Retail Financial Services consumer
lending growth has continued, albeit at a slower rate than the
first half of 1999 reflecting lower market growth trends. At
30th September 1999, UK credit card receivable outstandings
were £6.1bn (30th June 1999: £5.8bn). In Corporate Banking
there has been modest growth in loans to corporates in the
United Kingdom during the third quarter of the year.
In the third quarter UK retail deposits have seen steady
growth in line with the market and at a similar rate to the
first half of the year, while UK corporate deposits remained
broadly flat.
Within Retail Financial Services in the third quarter, the
overall UK lending margin has improved slightly as a result of
a change in business mix and the overall UK deposit margin has
narrowed as a result of some pricing pressure. During the
third quarter. With in Corporate Banking, the overall UK
lending margin has been was broadly maintained and the overall
UK deposit margins have narrowed slightly as result of a
change in business mix.
Net fees and commissions: In Retail Financial Services, fees
and commissions continued to grow in the third quarter
predominantly as a result of an increase in assets under
management during 1999. In Corporate Banking improved levels
of lending and acquisition finance fees reflected continued
growth in demand from corporates in the United Kingdom. Money
transmission income levels in Corporate Banking remained flat
as a result of pricing pressure and the switch to electronic
products.
Dealing profit levels within Barclays Capital for the second
half of the year are still expected to be lower than the first
six months of 1999 as a result of an anticipated slow down in
activity in the run up to the year end; notwithstanding a good
performance in the third quarter.Barclays Capital produced
good third quarter results, following its strong performance
in the first half of the year. Dealing profits are still
expected to be somewhat lower in the second half, reflecting
an anticipated slow down in market activity in the run up to
the millenniumyear end.
Barclays Global Investors' assets under management at 31st
October were1999 were at a similar level to £433 billion at
approximately £xx0 billion at 31st October 1999 compared with
(30th June 1999 (: £434bn£434 billion at 30th June 1999). In
this four month period, underlying net new business and market
growth was offset by adverse exchange rate translation
movements as a result of net new business being offset by
foreign exchange movements.
Group total costs of the ongoing business in 1999 are expected
to be no higher than the 1998 level (£4,877 million),
excluding the restructuring charge (in respect of the
programme to reduce job numbers primarily in Retail Financial
Services and Corporate Banking.
Provisions for bad and doubtful debts: The overall Group net
charge for the second half is expected to be at a similar
level to the first half of 1999.
Weighted risk assets in the third quarter within Retail
Financial Services and Corporate Banking have continued to
grow at a similar rate to the first half 1999. Barclays
Capital continues to operate at weighted risk asset levels
between £30 billion and £35 billion.
Barclays completed its proposed £500 million share buy back
programme for the year, purchasing for cancellation 27.8
million of its ordinary shares.
In summary, Barclays continues to build on its strong first
half performance, is set to meet its objectives of growing
income and controlling costs to deliver a good performance for
the year.
The 1999 Preliminary Full Year Results will be announced on
Tuesday 15th February 2000.
For further information please contact:
Investor Relations Media Relations
Ian Roundell Leigh Bruce
0171 699 2961 0171 699 2658
Emma Savage Maria Darby
0171 699 2960 0171 699 2970
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