Barclays 2008 Annual Report Download - page 306

304 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Barclays Bank PLC data
Notes to the accounts
aNetinterest income
2008 2007 2006
£m£m £m
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 (6,714) (4,110) (3,076)
Debt securities in issue (5,947) (6,651) (5,282)
Subordinated liabilities (1,349) (878) (777)
Other (396) (1,348) (708)
Interest expense (16,595) (15,707) (12,662)
Netinterest income 11,415 9,601 9,143
Interest income includes £135m(2007: £113m, 2006: £98m)accrued on impaired loans.
Other interest income principally includes interest income relating to reverse repurchase agreements.Similarly,other interest expense principally includes
interest expense relating to repurchase agreements and hedging activity.
Included in net interest income is hedge ineffectiveness as detailed in Note 14.
bNetfee and commission income
2008 2007 2006
£m£m £m
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 6,367 6,031
Foreign exchange commissions 189 178 184
Fee and commission income 9,489 8,682 8,005
Fee and commission expense (1,082) (970) (828)
Netfee and commission income 8,407 7,712 7,177
cPrincipal transactions
2008 2007 2006
£m£m £m
Rates related business 4,682 4,162 2,866
Credit related business (3,422) (403) 766
Net trading income1,260 3,759 3,632
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
Netinvestment income 680 1,216 962
Principal transactions 1,940 4,975 4,594
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 gain, 2006: £480m gain)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.