Barclays 2014 Annual Report Download - page 235

barclays.com/annualreport Barclays PLC Annual Report 2014 I 233
Net fee and commission income reduced 10% to £2,443m due to the
launch of the revised overdraft proposition and lower transactional
income in Wealth.
Credit impairment charges improved 22% to £482m and the loan loss
rate reduced 7bps to 21bps due to the improving economic
environment in the UK, particularly impacting Corporate which
benefited from one-off releases and lower defaults from large UK
Corporate clients.
Total operating expenses reduced 7% to £5,475m reflecting savings
realised from Transform programmes relating to restructuring of the
branch network and technology improvements to increase automation.
Loans and advances to customers increased 2% to £217.0bn due to
mortgage growth and Corporate loan growth.
Total assets increased 2% to £285.0bn driven by the growth in loans
and advances to customers.
Customer deposits increased to £299.2bn (2013: £295.9bn).
RWAs increased 2% to £120.2bn primarily driven by growth in
mortgage and Corporate lending.
2013 compared to 2012
Profit before tax decreased 9% to £2,233m.
Total income increased 2% to £8,723m driven by mortgage growth,
the contribution from Barclays Direct (previously ING Direct UK,
acquired during Q113) and UK Corporate income, partially offset by
lower fee income.
Net interest income increased 3% to £5,893m driven by strong
mortgage growth and the contribution from Barclays Direct.
Net fee and commission income declined 2% to £2,723m primarily due
to lower fee income from Personal customers.
Credit impairment charges were broadly in line at £621m (2012:
£626m) and the loan loss rate reduced 2bps to 28bps, due to lower
charges against large UK Corporate clients, partially offset by the
non-recurrence of provision releases in 2012 relating to unsecured
lending and mortgages.
Total operating expenses increased 7% to £5,910m largely due to costs
to achieve Transform of £384m (2012: £nil) and an increase in UK bank
levy to £66m (2012: £49m).
Notes
a Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.
b 2012 returns calculated using average allocated equity based on CRD III RWAs and capital deductions.
2014
£m
2013
£m
2012
£m
Key facts
Average LTV of mortgage lendinga52% 56% 59%
Average LTV of new mortgage lendinga65% 64% 65%
Number of branches 1,488 1,560 1,593
Number of employees (full time equivalent) 45,600 50,100 50,500
Performance measures
Return on average tangible equityb15.8% 12.7% 15.0%
Return on average equityb11.9% 9.7% 11.1%
Cost: income ratio 62% 68% 64%
Loan loss rate (bps) 21 28 30
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