Barclays 2008 Annual Report Download - page 213

3
Financial statements
4Principal transactions
2008 2007 2006
£m £m £m
Rates related business 4,751 4,162 2,848
Credit related business (3,422) (403) 766
Net trading income 1,329 3,759 3,614
Net gain from disposal of available for sale assets 212 560 307
Dividend income 196 26 15
Net gain from financial instruments designated at fair value 33 293 447
Other investment income 239 337 193
Net investment income 680 1,216 962
Principal transactions 2,009 4,975 4,576
Net trading income includes the profits and losses arising both on the purchase and sale of trading instruments and from the revaluation to fair value,
together with the interest income earned from these instruments and the related funding cost.
Of the total net trading income, a £2,096m net loss (2007: £116m loss, 2006: £1,427m gain) was made on the purchase and sale of securities and the
revaluation of both securities and derivatives. This included a £1,272m gain (2007: £640m, 2006: £480m) that was earned in foreign exchange dealings.
The net loss on financial assets designated at fair value included within principal transactions was £6,602m (2007: £78m gain, 2006: £489m gain) of
which losses of £6,635m (2007: £215m loss, 2006: £42m gain) were included in net trading income and gains of £33m (2007: £293m, 2006: £447m)
were included in net investment income.
The net gain on financial liabilities designated at fair value included within principal transactions was £3,328m (2007: £231m loss, 2006: £920m loss)
all of which was included within net trading income.
Net trading income includes the net gain from widening of credit spreads relating to Barclays Capital issued structured notes held at fair value was
£1,663m (2007: £658m, 2006: £nil).
5Insurance premiums and insurance claims and benefits
2008 2007 2006
£m £m £m
Gross premiums from insurance contracts 1,138 1,062 1,108
Premiums ceded to reinsurers (48) (51) (48)
Net premiums from insurance contracts 1,090 1,011 1,060
2008 2007 2006
£m £m £m
Gross claims and benefits incurred on insurance contracts 263 520 588
Reinsurers’ share of claims incurred (26) (28) (13)
Net claims and benefits incurredon insurance contracts 237 492 575
6Other income
2008 2007 2006
£m £m £m
(Decrease)/increase in fair value of assets held in respect of linked liabilities
to customers under investment contracts (10,422) 5,592 7,417
Decrease/(increase) in liabilities to customers under investment contracts 10,422 (5,592) (7,417)
Property rentals 73 53 55
Other income 304 135 159
Other income 377 188 214
Included in other income are sub-lease rentals of £18m (2007: £18m, 2006: £18m), and in 2008 only is a £47m gain from the Visa IPO.
Barclays PLC Annual Report 2008 211