Barclays 2006 Annual Report Download - page 286

Barclays PLC
Annual Report 2006
282
Barclays Bank PLC data
Notes to the accounts
(a) Principal transactions
2006 2005 2004
£m £m £m
Rates related business 2,866 1,732 1,141
Credit related business 766 589 346
Net trading income 3,632 2,321 1,487
Gain from disposal of available for sale assets/investment securities 307 120 45
Dividend income on equity investments 15 22 17
Net gain from financial instruments designated at fair value 447 389 n/a
Income from assets backing insurance policies n/a n/a 717
Other investment income 193 327 248
Net investment income 962 858 1,027
Principal transactions 4,594 3,179 2,154
Net trading income includes the profits and losses arising both on the purchase and sale of trading instruments and from the revaluation to market
value, together with the interest income earned from these instruments and the related funding cost.
The gain/loss from disposal of available for sale assets was calculated on an instrument by instrument basis.
Of the total net trading income, £947m (2005: £498m, 2004: £556m) was earned on securities and £480m (2005: £340m, 2004: £213m) was earned
in foreign exchange dealings.
Rates related business includes fixed income, foreign exchange, commodities, emerging markets, money markets sales, trading and research, prime
services and equity products; Credit related business includes primary and secondary activities for loans and bonds for investment grade, high yield
and emerging market credits, as well as hybrid capital products, asset based finance, commercial mortgage backed securities, credit derivatives,
structured capital markets and large asset leasing.
The net gain on financial assets designated as at fair value and included within principal transactions was £489m (2005: £391m, 2004: n/a) of which
gains of £42m (2005: £2m gain, 2004: n/a) were included in net trading income and gains of £447m (2005: £389m, 2004: n/a) were included in net
investment income.
The net loss on financial liabilities designated at fair value and included within principal transactions was £920m (2005: £666m, 2004: n/a) all of
which was included within net trading income.
(b) Other income
2006 2005 2004
£m £m £m
Increase in fair value of assets held in respect of linked liabilities to customers under investment contracts 7,417 9,234 n/a
Increase in liabilities to customers under investment contracts (7,417) (9,234) n/a
Property rentals 55 54 46
Other income 202 124 94
Other income 257 178 140
(c) Trading portfolio assets
2006 2005
£m £m
Trading portfolio assets
Treasury and other eligible bills 2,960 6,081
Debt securities
United Kingdom government bonds 4,986 4,786
Other government bonds 46,845 46,426
Other mortgage-backed securities 17,032 10,290
Bank and building society certificates of deposit 14,159 15,837
Other issuers 57,554 51,028
Debt securities 140,576 128,367
Equity securities 31,565 20,299
Traded loans 1,843 408
London Metal Exchange warrants and other metals trading positions 940 575
Trading portfolio assets 177,884 155,730