Barclays 2006 Annual Report Download - page 45

Barclays PLC
Annual Report 2006 41
Operating review
1
2006/05
Barclays Wealth – closed life assurance activities profit before tax
was £22m (2005: loss £7m). The improvement was mostly due to
lower funding costs and reduced customer redress costs in 2006.
Profit before tax excluding customer redress costs was £89m
(2005: £78m).
Income grew 9% (£11m) to £131m (2005: £120m) principally due to
reduced funding costs.
Operating expenses decreased to £109m (2005: £127m). Costs relating
to redress for customers decreased to £67m (2005: £85m) whilst other
operating expenses remained steady at £42m (2005: £42m).
2005/04
Barclays Wealth – closed life assurance activities loss before tax reduced
to £7m (2004: loss of £53m), predominantly due to lower funding and
redress costs in 2005.
Profit before tax excluding customer redress costs was £78m
(2004: £44m).
Total income decreased to £495m (2004: £908m), largely due to the
application of IFRS. The decrease was offset by a broadly similar
reduction in net claims and benefits.
Operating expenses decreased 11% (£16m) to £127m (2004: £143m).
Costs relating to redress for customers decreased to £85m (2004:
£97m) and other operating expenses decreased 9% (£4m) to £42m
(2004: £46m).