Barclays 2008 Annual Report Download - page 299

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Financial statements
Barclays PLC Annual Report 2008 297
53 Segmental reporting (continued)
Revenue by products and services
An analysis of revenue from external customers by product or service is presented below:
As at 31st December
2008 2007 2006
£m £m £m
Net interest income
Cash and balances with central banks 174 145 91
Available for sale investments 2,355 2,580 2,811
Loans and advances to banks 1,267 1,416 903
Loans and advances to customers 23,754 19,559 16,290
Other 460 1,608 1,710
Interest income 28,010 25,308 21,805
Deposits from banks (2,189) (2,720) (2,819)
Customer accounts (6,697) (4,110) (3,076)
Debt securities in issue (5,910) (6,651) (5,282)
Subordinated liabilities (1,349) (878) (777)
Other (396) (1,339) (708)
Interest expense (16,541) (15,698) (12,662)
Net interest income 11,469 9,610 9,143
Net fee and commission income
Brokerage fees 87 109 70
Investment management fees 1,616 1,787 1,535
Securities lending 389 241 185
Banking and credit related fees and commissions 7,208 6,363 6,031
Foreign exchange commissions 189 178 184
Fee and commission income 9,489 8,678 8,005
Fee and commission expense (1,082) (970) (828)
Net fee and commission income 8,407 7,708 7,177
Principal transactions
Rates related business 4,751 4,162 2,848
Credit related business (3,422) (403) 766
Net investmest income 680 1,216 962
Principal transactions 2,009 4,975 4,576
Net premiums from insurances contracts 1,090 1,011 1,060
Net claims and benefits incurred on insurance contracts (237) (492) (575)
Other income 377 188 214
Total income net of insurance claims 23,115 23,000 21,595
Interest income
Cash and balances with central banks interest income consists of interest income from cash on deposit with central banks. Available for sale investments
interest income consists of the interest yield on debt securities, treasury bills and other eligible bills. Loans and advances to banks interest income consists
of interest income from loans and advances to other banks. Loans and advances to customers interest income consists of interest income from loans,
mortgages, advances and credit cards to customers. Other interest income principally consists of interest income relating to reverse repurchase agreements.
Interest expense
Deposits from banks interest expense consists of interest expense paid to other banks on their deposits with Barclays. Customer accounts interest
expense consists of interest expense paid to customers on their current and savings account with Barclays. Debt securities in issue interest expense
consists of interest expense paid to customers who hold Barclays debt securities in issue. Subordinated liabilities interest expense consists of interest
expense paid to customers who hold Barclays subordinated liabilities. Other interest expense principally consists of interest expense relating to
repurchase agreements and hedging activity.
Fee and commission income
Brokerage fees income consists of fees charged to facilitate transactions between buyers and sellers. The brokerage fee is charged for services such as
negotiations, sales, purchases, delivery or advice on the transaction. Investment management fees are levied on assets under management. Securities
lending fees are charged when stock is lent to third parties. Banking and credit related fees and commissions consist of fees and commissions charged on
banking and credit card transactions. Foreign exchange commissions are earned on foreign exchange transactions with customers.
Fee and commission expense
Fee and commission expense consists of fees paid to third parties to facilitate transactions between buyers and sellers. The fee is charged for services
such as negotiations, sales, purchases, delivery or advice on the transaction.