Barclays 2011 Annual Report Download - page 191

£207m
profit before tax
£1,744m
total income
Risk weighted assets increased 6% to £13.1bn. This compares to growth
in lending of 17%, with an increased level of collateral in the lending
portfolio.
Client assets increased marginally to £164.2bn (2010: £163.9bn) with
strong net new asset growth in the High Net Worth businesses offset
by market, foreign exchange and other movements.
Return on average equity increased to 10.9% (2010: 8.8%) and return
on average tangible equity up to 15.0% (2010: 12.3%) with growth in
income and profit before tax significantly higher than increased equity.
2010
Barclays Wealth profit before tax increased 14% to £163m.
Income increased 18% to £1,560m principally from growth in the High
Net Worth businesses and higher attributable net interest income from
the revised internal funds pricing mechanism.
Net interest income increased 35% to £678m, mostly due to changes in
internal funds pricing which gives credit for the behaviourally long-term
deposits held by Barclays Wealth. The net interest margin increased to
122bps (2009: 102bps). This reflects the increase in the customer liability
AdjustedaStatutory
2011 2010 2009 2011 2010 2009
Performance Measures
Return on average equityb10.9% 8.8% 7.6% 10.9% 8.8% 7.7%
Return on average tangible equityb15.0% 12.3% 10.9% 15.0% 12.3% 11.0%
Return on average risk weighted assets 1.5% 1.2% 1.1% 1.5% 1.2% 1.1%
Loan loss rate (bps) 21 29 38 21 29 38
Cost: income ratio 86% 86% 85% 86% 86% 85%
Other financial measures
Total client assets £164.2bn £163.9bn £151.2bn
Number of employees 7,700 7,700 7,400
Notes
a 2009 adjusted profit before tax and adjusted performance measures excludes the impact of profit on disposal of subsidiaries, associates and joint ventures of £1m.
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.
margin from 53bps to 87bps as well as the reduction in the customer
asset margin from 101bps to 81bps. Customer accounts grew 17% to
£44.8bn and loans and advances to customers grew 24% to £16.1bn.
Net fee and commission income increased 10% to £869m primarily driven
by higher transactional activity with High Net Worth clients.
Operating expenses increased 19% to £1,349m, principally due to the
impact of the growth in High Net Worth business revenues on staff and
infrastructure costs and the start of Barclays Wealth’s strategic
investment programme.
Total client assets, comprising customer deposits and client investments,
were £163.9bn (2009: £151.2bn) with underlying net new asset inflows of
£6bn. Risk weighted assets increased 9% to £12.4bn reflecting growth in
loans and advances, impact of exchange rate movements and collateral
management.
Stable returns on average equity and average tangible equity, reflected
the strong performance of the business offset by the cost of strategic
investment and the increase in capital allocation.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 189
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