Barclays 2006 Annual Report Download - page 32

Financial review
Analysis of results by business
Barclays PLC
Annual Report 2006
28
International Retail and Commercial Banking provides Barclays personal and corporate customers outside the UK with banking services.
The products and services offered to customers are tailored to meet the regulatory and commercial environments within each country. For reporting
purposes from 2005, the operations have been grouped into two components: International Retail and Commercial Banking – excluding Absa and
International Retail and Commercial Banking – Absa.
International Retail and Commercial Banking works closely with all other parts of the Group to leverage synergies from product and service
propositions.
2006 2005 2004(a)
£m £m £m
Net interest income 1,659 1,050 529
Net fee and commission income 1,303 705 288
Net trading income 63 –
Net investment income 188 143 135
Principal transactions 194 146 135
Net premiums from insurance contracts 351 227 300
Other income 74 60 25
Total income 3,581 2,188 1,277
Net claims and benefits on insurance contracts (244) (205) (390)
Total income net of insurance claims 3,337 1,983 887
Impairment charges (167) (32) (31)
Net income 3,170 1,951 856
Operating expenses excluding amortisation of intangible assets (2,111) (1,317) (616)
Amortisation of intangible assets (85) (47) (1)
Operating expenses (2,196) (1,364) (617)
Share of post-tax results of associates and joint ventures 49 46 49
Profit on disposal of subsidiaries, associates and joint ventures 247 – –
Profit before tax 1,270 633 288
Cost:income ratio 66% 69% 70%
Cost:net income ratio 69% 70% 72%
Risk Tendency £220m £175m £65m
Return on average economic capital 37% 23% 21%
Economic profit £530m £205m £111m
2006 2005 2004
Loans and advances to customers £53.5bn £49.3bn £20.7bn
Customer accounts £22.5bn £22.6bn £10.1bn
Total assets £68.9bn £63.6bn £28.5bn
Risk weighted assets £41.1bn £41.2bn £19.3bn
Key Facts
Number of international branches 1,613 1,516 830
£3,337m 18%
Income Contribution to Group profitProfit before tax
£1,270m
International Retail and Commercial Banking
Note
(a) Does not reflect the application of IAS 32, IAS 39 and IFRS 4 which became effective from 1st January 2005.