Barclays 2009 Annual Report Download - page 78

76 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Financial review
Analysis of results by business
continued
Investment Banking and Investment Management
Barclays Wealth
Barclays Wealth focuses on private and intermediary clients worldwide.
We are the UK’s leading wealth manager by client assets. We have 7,400
staff and manage total client assets of £151bn. We have 101 offices in
25 countries across EMEA, Asia and the Americas.
What we do
Barclays Wealth provides international and private banking, fiduciary
services, investment management, and brokerage.
Barclays Wealth works closely with all other parts of the Group to
leverage synergies from client relationships and product capabilities, for
example, offering world-class investment solutions with institutional quality
products and services from Barclays Capital and Barclays Commercial Bank.
Performance
2009/08
Barclays Wealth profit before tax reduced 78% (£526m) to £145m (2008:
£671m). The reduction in profit was principally due to the sale of the closed
life assurance business in 2008 (2008: profit before tax of £104m and profit
on disposal of £326m). Results were also affected by the integration of
Lehman Brothers North American businesses (Barclays Wealth Americas),
which made a loss of £39m.
Total income net of insurance claims increased 1% (£9m) to £1,333m
(2008: £1,324m). Excluding the impact of the sale of the closed life business
and the integration of Barclays Wealth Americas, income grew 3% as growth
in the client franchise and the product offering offset the impact of adverse
economic conditions.
Net interest income increased 4% (£18m) to £504m (2008: £486m)
reflecting growth in customer lending. Average lending grew 27% to
£12.3bn (2008: £9.7bn). Assets margin reduced to 1.01% from 1.04%.
Average 2009 deposits were in line with the prior year (2008: £37.2bn) with
a stable liabilities margin of 0.96% (2008: 0.95%).
Net fee and commission income increased by 11% (£82m) to £802m
(2008: £720m) driven by Barclays Wealth Americas.
The movements in principal transactions, net premiums from insurance
contracts and net claims and benefits incurred under insurance contracts
were due to the sale of the closed life assurance business in October 2008.
Impairment charges increased 16% (£7m) to £51m (2008: £44m).
This increase reflected the impact of the current economic environment on
client liquidity and collateral values and the substantial increase in the loan
book over the last four years.
Operating expenses increased 22% to £1,138m (2008: £935m)
principally reflecting the impact of the acquisition of Barclays Wealth
Americas partially offset by the impact of the disposal of the closed life
business in 2008.
Total client assets, comprising customer accounts and client
investments were £151.3bn (31st December 2008: £145.1bn) with
underlying net new asset inflows of £3bn.
151
145
133
169
176
188
07 08
Total client assets
£bn
09
Average net income generated
per member of staff
£000
07 08
09
Performance indicators