Barclays 2006 Annual Report Download - page 28

Financial review
Analysis of results by business
Barclays PLC
Annual Report 2006
24
UK Business Banking provides relationship banking to Barclays larger and medium business customers in the UK. Customers are served by a network
of relationship and industry sector specialist managers who provide local access to an extensive range of products and services, as well as offering
business information and support. Customers are also offered access to the products and expertise of other businesses in the Group, particularly
Barclays Capital and Barclaycard. UK Business Banking provides asset financing and leasing solutions through a specialist business.
2006 2005 2004(a)
£m £m £m
Net interest income 1,702 1,536 1,241
Net fee and commission income 642 589 706
Net trading income 2––
Net investment income 28 17 –
Principal transactions 30 17 –
Other income 21 17 14
Total income 2,395 2,159 1,961
Impairment charges (252) (177) (119)
Net income 2,143 1,982 1,842
Operating expenses excluding amortisation of intangible assets (856) (822) (759)
Amortisation of intangible assets (1) (3) (2)
Operating expenses (857) (825) (761)
Share of post-tax results of associates and joint ventures 33 3
Profit on disposal of subsidiaries, associates and joint ventures 76 – –
Profit before tax 1,365 1,160 1,084
Cost:income ratio 36% 38% 39%
Cost:net income ratio 40% 42% 41%
Risk Tendency £290m £250m £200m
Return on average economic capital 37% 31% 37%
Economic profit £738m £544m £578m
2006 2005 2004
Loans and advances to customers £56.3bn £53.4bn £40.0bn
Customer accounts £57.4bn £50.9bn £37.5bn
Total assets £65.9bn £59.9bn £42.2bn
Risk weighted assets £50.0bn £47.1bn £42.3bn
Key Facts
Total number of Business Banking customers 150,000 144,000 141,000
£2,395m 19%
Income Contribution to Group profitProfit before tax
£1,365m
UK Business Banking
Note
(a) Does not reflect the application of IAS 32, IAS 39 and IFRS 4 which became effective from 1st January 2005.