Barclays 2014 Annual Report Download - page 237

barclays.com/annualreport Barclays PLC Annual Report 2014 I 235
Credit impairment charges increased 8% to £1,183m due to asset
growth and enhanced coverage for forbearance. Delinquency rates
remained broadly stable and the loan loss rate reduced 24bps to
308bps.
Total operating expenses increased 1% to £1,874m driven by higher
costs to achieve Transform of £118m (2013: £49m), partially offset by
depreciation of average USD against GBP, VAT refunds and savings
from Transform programmes, including insourcing of services,
consolidation of sites and digitalisation.
Loans and advances to customers increased 16% to £36.6bn reflecting
growth across all geographies, including the impact of promotional
offers and the acquisition of portfolios in the US.
Total assets increased 20% to £41.3bn due to the increase in loans and
advances to customers.
Customer deposits increased 43% to £7.3bn driven by the deposits
funding strategy in the US.
RWAs increased 12% to £39.9bn primarily driven by the growth in
loans and advances to customers.
2013 compared to 2012
Profit before tax increased 2% to £1,183m.
Total income increased 8% to £4,103m reflecting net lending growth.
UK income, including both the consumer and merchant sides of
payments, increased 4% to £2,583m reflecting net lending growth and
lower funding costs. International income increased 15% to £1,520m
reflecting strong growth in the US and Germany.
Net interest income increased 7% to £2,829m driven by volume
growth. The impact of promotional offers and a change in product mix,
with growth through the US partner portfolio, were offset by lower
funding costs.
Net fee and commission income improved 8% to £1,256m due to
increased payment volumes, predominantly in the US and UK.
Credit impairment charges increased 10% to £1,096m primarily driven
by volume growth and non-recurrence of provision releases in 2012
with the loan loss rate remaining broadly stable at 332bps (2012:
328bps). Delinquency rates fell in the UK and US consumer cards
businesses.
Total operating expenses increased 10% to £1,857m reflecting net
lending growth, higher operating losses and costs to achieve Transform
of £49m (2012: £nil).
2014
£m
2013
£m
2012
£m
Key facts
30 days arrears rates – UK cards 2.5% 2.4% 2.5%
30 days arrears rates – US cards 2.1% 2.1% 2.4%
Number of employees (full time equivalent) 12,200 11,000 10,000
Performance measures
Return on average tangible equitya19.9% 19.9% 23.7%
Return on average equitya16.0% 15.5% 18.0%
Cost: income ratio 43% 45% 44%
Loan loss rate (bps) 308 332 328
Note
a 2012 returns calculated using average allocated equity based on CRD III RWAs and capital deductions.
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