Barclays 2006 Annual Report Download - page 60

Barclays PLC
Annual Report 2006
56
Financial review
Total assets and risk weighted assets
2006/05
Total assets increased 8% to £996.8bn (2005: £924.4bn). Risk weighted
assets increased 11% to £297.8bn (2005: £269.1bn). Loans and
advances to customers that have been securitised increased £5.8bn to
£24.4bn (2005: £18.6bn). The increase in risk weighted assets since
2005 reflects a rise of £18.1bn in the banking book and a rise of £10.9bn
in the trading book.
UK Retail Banking total assets increased 5% to £74.0bn (2005:
£70.4bn). This was mainly attributable to growth in mortgage balances.
Risk weighted assets increased 6% to £34.9bn (2005: £32.8bn) also
primarily reflecting the growth in mortgage balances.
UK Business Banking total assets increased 10% to £65.9bn (2005:
£59.9bn) reflecting good growth across short, medium and long term
lending products. Risk weighted assets increased 6% to £50.0bn (2005:
£47.1bn), reflecting asset growth and increased regulatory netting.
Barclaycard total assets increased 7% to £27.6bn (2005: £25.8bn)
driven by growth in lending balances in the international businesses
and FirstPlus. Risk weighted assets increased 16% to £25.2bn (2005:
£21.8bn), primarily reflecting the increase in total assets and lower
securitised balances.
International Retail and Commercial Banking-excluding Absa total
assets increased 13% to £38.5bn (2005: £34.2bn) mainly reflecting
increases in mortgage and other lending. Risk weighted assets
remained flat at £20.3bn (2005: £20.4bn), with balance sheet growth
offset by the sale of FirstCaribbean International Bank.
International Retail and Commercial Banking-Absa total assets
increased 3% to £30.4bn (2005: £29.4bn). Risk weighted assets
remained flat at £20.7bn (2005: £20.8bn). This reflects very strong
growth in Rand terms offset by a 21% decline in the value of the Rand.
In Rand terms assets grew 31% to ZAR417bn (2005: ZAR319bn)
and risk weighted assets grew 25% to ZAR284bn (2005: ZAR227bn)
due to strong growth in mortgage lending along with growth in
corporate lending.
Barclays Capital total assets increased 9% to £657.9bn (2005:
£601.2bn). This reflected continued expansion of the business with
growth in reverse repurchase agreements, debt securities and traded
equity securities. Risk weighted assets increased 18% to £137.6bn
(2005: £116.7bn) in line with risk, driven by the growth in equity
derivatives, credit derivatives and fixed income.
Barclays Global Investors total assets remained flat at £80.5bn (2005:
£80.9bn). The majority of total assets relates to asset management
products with equal and offsetting balances reflected within liabilities to
customers. Risk weighted assets decreased 7% to £1.4bn (2005: £1.5bn).
Barclays Wealth total assets increased 20% to £7.3bn (2005: £6.1bn)
reflecting strong growth in lending to high net worth, affluent and
intermediary clients. Risk weighted assets increased 39% to £5.7bn
(2005: £4.1bn) above the rate of balance sheet growth driven by
changes in the mix of lending and growth in guarantees.
Head office functions and other operations total assets decreased
24% to £7.1bn (2005: £9.3bn). Risk weighted assets decreased 53%
to £1.9bn (2005: £4.0bn).
Total assets and risk weighted assets
Total assets
2006 2005 2004(a)
£m £m £m
UK Banking 139,902 130,304 114,934
UK Retail Banking 74,018 70,389 72,768
UK Business Banking 65,884 59,915 42,166
Barclaycard 27,628 25,771 23,367
IRCB 68,848 63,556 28,505
IRCB – ex Absa 38,451 34,195 28,505
IRCB – Absa 30,397 29,361 –
Barclays Capital 657,922 601,193 353,246
Barclays Global Investors 80,515 80,900 968
Barclays Wealth 7,285 6,094 5,616
Barclays Wealth –
closed life assurances activities 7,605 7,276 6,425
Head office functions and
other operations 7,082 9,263 5,120
Total assets 996,787 924,357 538,181
Risk weighted assets
2006 2005 2004(a)
£m £m £m
UK Banking 84,903 79,929 80,467
UK Retail Banking 34,942 32,803 38,230
UK Business Banking 49,961 47,126 42,237
Barclaycard 25,203 21,752 20,188
IRCB 41,053 41,228 19,319
IRCB – ex Absa 20,325 20,394 19,319
IRCB – Absa 20,728 20,834 –
Barclays Capital 137,635 116,677 90,078
Barclays Global Investors 1,375 1,456 1,230
Barclays Wealth 5,744 4,061 4,018
Barclays Wealth –
closed life assurances activities –––
Head office functions and
other operations 1,920 4,045 3,301
Risk weighted assets 297,833 269,148 218,601
04(a) 05 06
538
924
997
0
1,000
£bn
600
800
400
200
04(a) 05 06
Risk weighted assets
219
269
298
Assets
Note
(a) 2004 figures do not reflect the applications of IAS 32, and IAS 39 and IFRS 4 which became effective from 1st January 2005.