Barclays 2011 Annual Report Download - page 183

£910m
profit before tax
£3,767m
total income net of insurance claims
Credit impairment charges decreased 17% to £464m reflecting improved
economic conditions in South Africa and better recoveries across the
continent, together with currency movements.
Operating expenses decreased 1% to £2,399m, primarily driven by strong
cost management, currency movements and restructuring benefits
partially offset by a one-off pension credit in 2010 and inflationary
pressures.
Total loans and advances to customers decreased 19% to £36.7bn
primarily reflecting a 16% impact from currency movements.
2010
Africa RBB profit before tax increased 27% to £804m mainly as a result
of the 16% appreciation in the average value of the Rand against Sterling.
Excluding one-off gains on disposal of £81m profit before tax increased
18% to £723m.
Income increased 12% to £3,700m primarily reflecting the impact of
currency movements.
Net interest income improved 13% to £2,033m with the net interest
margin up to 294bps. South Africa improved 15% to £1,500m reflecting
the appreciation in the average value of the Rand against Sterling.
Average customer assets increased 12% to £41.3bn primarily driven by
the appreciation of the Rand. In Rand terms, retail loans and commercial
mortgages remained stable as personal loans increased while cheque,
instalment finance and commercial property finance balances showed
a decline as a result of a slower take up of new loans by customers.
AdjustedaStatutory
2011 2010 2009 2011 2010 2009
Performance Measures
Return on average equityb, c 10.0% 9.0% 6.8% 10.0% 11.5% 7.6%
Return on average tangible equityb, d 16.6% 15.9% 15.4% 16.7% 18.2% 16.2%
Return on average risk weighted assets 1.7% 1.6% 1.6% 1.7% 1.8% 1.7%
Loan loss rate (bps) 121 119 163 121 119 163
Cost: income ratio 64% 65% 60% 64% 65% 60%
Key Facts
Number of customers 14.5m 14.4m 14.3m
Number of ATMs 10,068 9,530 9,499
Number of branches 1,354 1,321 1,347
Number of sales centres 139 222 288
Number of distribution points 1,493 1,543 1,635
Number of employees (full time equivalent)e 45,300 47,700 47,600
Notes
a Adjusted profit before tax and adjusted performance measures excludes the impact of gains on acquisitions and disposals of £2m (2010: £81m; 2009: £21m).
b Return on average equity and return on average tangible equity comparatives have been revised to use 10% of average risk weighted assets (previously 2010: 9%; 2009: 8%) in the
calculation of average equity and average tangible equity.
c The return on average equity differs from the return on the equity reported by Absa Group Ltd as the latter does not include goodwill arising from Barclays acquisition of the Absa Group
and does include other Absa Group businesses that Barclays Group reports within Barclaycard, Barclays Capital and Barclays Wealth.
d Including non-controlling interests for Absa.
e The number of employees for 2010 has been revised to include 100 employees transferred from Head Office Functions and Other Operations.
Customer asset margin increased to 312bps (2009: 304bps) primarily
as a result of the pricing of new loans and a change in the product mix
as higher margin products grew faster than low margin combined with
a reduction in funding costs.
Average customer liabilities increased 17% to £27.7bn primarily driven
by the appreciation of the Rand. Customer liability margin decreased to
225bps (2009: 250bps) due to significant competition for deposits in
South Africa and margin compression in the rest of the continent. Absa’s
hedging programme partly offset the impact of lower interest rates.
Net fee and commission income increased 18% to £1,318m mainly
reflecting the impact of exchange rate movements and volume growth
within South Africa.
Credit impairment charges decreased 18% to £562m primarily due to
lower impairment charges on the retail portfolio as a result of a better
economic environment and improved collections.
Operating expenses increased 22% to £2,418m reflecting exchange rate
movements and continued investment in growth initiatives and £40m
restructuring costs, partially offset by a one-off credit of £54m relating
to the Group’s recognition of a pension fund surplus.
Total assets increased 12% to £60.3bn mostly due to the impact of
exchange rate movements. Risk weighted assets increased 32% to
£38.4bn primarily due to the impact of exchange rate movements,
enhancements to the retail model and wholesale credit remediation plan.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 181
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