Barclays 2010 Annual Report Download - page 54

2010
£m
2009
£m
2008
£m
Income statement information
Net interest income 533 498 405
Net fee and commission income 195 178 162
Net trading income 67 54 70
Net investment (loss)/income (1) 7 87
Other income 7 2 2
Total income 801 739 726
Impairment charges and other credit provisions (82) (121) (71)
Net income 719 618 655
Operating expenses excluding amortisation of intangible assets (600) (533) (472)
Amortisation of intangible assets (8) (5) (3)
Operating expenses (608) (538) (475)
Profit on disposal of subsidiaries, associates and joint ventures 77 24 –
Profit before tax 188 104 180
Balance sheet information
Loans and advances to customers at amortised cost £3.6bn £3.9bn £5.0bn
Customer accounts £7.0bn £6.4bn £7.3bn
Total assets £7.9bn £7.9bn £8.5bn
Risk weighted assets £8.0bn £7.6bn £8.7bn
Global Retail Banking
Barclays Africa
Barclays Africa provides retail, corporate and credit card
services across Africa and the Indian Ocean. It provides
tailored banking (including mobile banking and Sharia-
compliant products) to over 2.7m customers and has a
top 3 position in 8 of the 10 countries in which we operate.
Performance
2010
Barclays Africa profit before tax increased 81% to £188m (2009: £104m).
2010 included a one-off gain of £77m from the sale of the custody
business to Standard Chartered Bank which was partially offset by
£40m of restructuring costs. Prior year results included a one-off gain
of £24m from the sale of shares in Barclays Bank of Botswana Limited.
Excluding these one-off items, profit before tax increased 89% to £151m
(2009: £80m).
Income increased 8% to £801m (2009: £739m) as a result of
improvement across major income categories.
Net interest income increased 7% to £533m (2009: £498m) and the net
interest margin increased to 507bps (2009: 460bps). The asset margin
improved to 697bps (2009: 575bps) primarily driven by a reduction in
funding costs and changes in business mix. The liability margin decreased
to 263bps (2009: 270bps) due to margin compression.
Net fee and commission income increased 10% to £195m (2009: £178m)
primarily driven by growth in retail fee income.
Net trading income increased 24% to £67m (2009: £54m) driven by
treasury securities sales in Ghana, Kenya and Zambia.
Impairment charges decreased 32% to £82m (2009: £121m) with
impairment charges on the retail portfolio decreasing 39% to £54m
(2009: £88m) as a result of a better economic environment and improved
collections. The retail portfolio 30-day delinquency rate decreased to 2.2%
(2009: 2.7%).
Operating expenses increased 13% to £608m (2009: £538m) reflecting
£40m of restructuring costs to facilitate the consolidation of operations
and infrastructure, and an increase in staff-related costs.
Customer deposits increased 9% to £7.0bn (2009: £6.4bn). Total assets
remained flat at £7.9bn (2009: £7.9bn) and risk weighted assets increased
5% to £8.0bn (2009: £7.6bn) reflecting changes in the business mix.
Significant improvements in return on average equity to 20% (2009: 8%),
return on average tangible equity 22% (2009: 9%) and return on average
risk weighted assets to 2.2% (2009: 1.0%) were due to improved franchise
profitability achieved with moderate growth in risk weighted assets.
Financial review
Analysis of results by business continued
52 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10