Barclays 2006 Annual Report Download - page 61

2005/04
Total assets increased 72% to £924.4bn (2004: £538.2bn). Risk
weighted assets increased 23% to £269.1bn (2004: £218.6bn). Loans
and advances to customers that have been securitised increased
£14.3bn to £18.6bn (2004: £4.3bn). The increase in risk weighted
assets since 2004 reflects a rise of £37.6bn in the banking book and
a rise of £12.9bn in the trading book.
UK Retail Banking total assets decreased 3% to £70.4bn (2004: £72.8bn).
This was mainly attributable to lower residential mortgage balances. Risk
weighted assets decreased 14% to £32.8bn (2004: £38.2bn), reflecting
lower mortgage balances and a £4.5bn securitisation of mortgage assets
in the second half of 2005, which more than offset strong growth in
non-mortgage loans.
UK Business Banking total assets increased 42% to £59.9bn
(2004: £42.2bn) due to the impact of the adoption of IAS 32 and
IAS 39 and strong growth in lending balances. Risk weighted assets
increased 12% to £47.1bn (2004: £42.3bn), the increase being lower
than asset growth, mostly as a result of £5bn securitisation of corporate
loans in the second half of 2005. The acquisition of a 51% stake in Iveco
Finance, completed in June, increased total assets and risk weighted
assets by £1.8bn.
Barclaycard total assets increased 10% to £25.8bn (2004: £23.4bn).
Risk weighted assets rose by 8% to £21.8bn (2004: £20.2bn), which
is less than the increase in assets, reflecting increased securitisation
activity during the second half of 2005.
International Retail and Commercial Banking excluding Absa total
assets increased 20% to £34.2bn (2004: £28.5bn) reflecting strong
volume growth in European mortgages and African corporate lending.
Risk weighted assets increased 6% to £20.4bn (2004: £19.3bn),
which was lower than the increase in assets, reflecting strong growth
in mortgage balances, which carry a 50% weighting, and the
securitisation of assets in Spain during the second half of 2005.
International Retail and Commercial Banking – Absa total assets were
£29.4bn and risk weighted assets £20.8bn.
Barclays Capital total assets increased 70% to £601.2bn (2004:
£353.2bn). £107.5bn of this increase was the result of the adoption of
IAS 32 and IAS 39. The underlying growth was mainly attributable to
increases in debt securities and reverse repurchase agreements as the
business continued to grow, and in derivative financial instruments as a
result of business growth and market movements. Risk weighted assets
increased 30% to £116.7bn (2004: £90.1bn). Excluding the impact of
the transfer of a number of clients from UK Business Banking and Absa
Capital from IRCB, effective 1st January 2006, the underlying growth
was 20%. This reflected trading book risk weighted assets moving in
line with risk rather than the balance sheet and the lower weighting
of fully collateralised reverse repurchase agreements.
Barclays Global Investors total assets increased £79.9bn to £80.9bn
(2004: £1.0bn) due to the impact of the adoption of IAS 32, IAS 39
and IFRS 4 and growth in asset management products reported on the
balance sheet. For the amounts related to asset management products,
equal and offsetting balances are reflected within liabilities to
customers. Risk weighted assets rose 25% to £1.5bn (2004: £1.2bn)
due to growth in the business.
Barclays Wealth total assets increased 9% to £6.1bn (2004: £5.6bn).
Risk weighted assets increased 3% to £4.1bn (2004: £4.0bn).
Head office functions and other operations total assets increased 82%
to £9.3bn (2004: £5.1bn). The increase included financial instruments
acquired for hedging purposes. Risk weighted assets increased 21% to
£4bn (2004: £3.3bn), reflecting assets held for hedging purposes.
Barclays PLC
Annual Report 2006 57
Operating review
1
Note
(a) 2004 figures do not reflect the applications of IAS 32, and IAS 39 and IFRS 4 which became effective from 1st January 2005.