Barclays 2006 Annual Report Download - page 38

Financial review
Analysis of results by business
Barclays PLC
Annual Report 2006
34
Barclays Capital is a leading global investment bank which provides large corporate, institutional and government clients with solutions to their
financing and risk management needs.
Barclays Capital services a wide variety of client needs, from capital raising and managing foreign exchange, interest rate, equity and commodity
risks, through to providing technical advice and expertise. Activities are organised into three principal areas: Rates, which includes fixed income,
foreign exchange, commodities, emerging markets, money markets, sales, trading and research, prime services and equity products; Credit, which
includes primary and secondary activities for loans and bonds for investment grade, high yield and emerging market credit, as well as hybrid capital
products, asset-based finance, commercial mortgage backed securities, credit derivatives, structured capital markets and large asset leasing; and
Private Equity. Barclays Capital includes Absa Capital, the investment banking business of Absa. Barclays Capital works closely with all other parts
of the Group to leverage synergies from client relationships and product capabilities.
2006 2005 2004(a)
£m £m £m
Net interest income 1,158 1,065 1,068
Net fee and commission income 952 776 670
Net trading income 3,562 2,231 1,463
Net investment income 573 413 302
Principal transactions 4,135 2,644 1,765
Other income 22 20 15
Total income 6,267 4,505 3.518
Impairment charge (42) (111) (106)
Net income 6,225 4,394 3,412
Operating expenses excluding amortisation of intangible assets (3,996) (2,961) (2,270)
Amortisation of intangible assets (13) (2) –
Operating expenses (4,009) (2,963) (2,270)
Profit before tax 2,216 1,431 1,142
Cost:income ratio 64% 66% 65%
Cost:net income ratio 64% 67% 67%
Compensation:net income ratio 49% 51% 50%
Risk Tendency £95m £110m £75m
Average DVaR £37.1m £32.0m £34.3m
Return on average economic capital 41% 34% 34%
Average net income generated per member of staff (’000) £560 £498 £490
Economic profit £1,181m £706m £587m
2006 2005 2004
Total assets £657.9bn £601.2bn £353.2bn
Risk weighted assets £137.6bn £116.7bn £90.1bn
Corporate lending portfolio £40.6bn £40.1bn £24.3bn
2006 2005 2004
League League League
table Issuance table Issuance table Issuance
position value position value position value
Key Facts
All international bonds (all currencies) 1st US$271.9bn 2nd US$183.6bn 3rd US$148.7bn
Sterling bonds 1st £27.3bn 1st £23.0bn 1st £18.5bn
International securitisations 2nd US$53.2bn 1st US$36.9bn 2nd US$26.9bn
US investment grade corporate bonds 7th US$6.0bn 5th US$9.9bn 10th US$4.8bn
£6,267m 31%
Income Contribution to Group profitProfit before tax
£2,216m
Note
(a) Does not reflect the application of IAS 32, IAS 39 and IFRS 4 which became effective from 1st January 2005.
Barclays Capital