Barclays 2008 Annual Report Download - page 56

54 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Global Retail and Commercial Banking
Emerging Markets
GRCB – Emerging Markets comprises our retail and commercial banking
operations, as well as our Barclaycard businesses, in 14 countries across
Africa, the Middle East and South East Asia.
What we do
GRCB – Emerging Markets serves retail and commercial banking
customers in Botswana, Egypt, Ghana, India, Kenya, Mauritius, Pakistan,
Russia, Seychelles, Tanzania, Uganda, the UAE, Zambia and Zimbabwe.
Through a network of more than 830 distribution points and
1,440 ATMs, we provide 4.2m customers and clients with a full range
of products and services. This includes current accounts, savings,
investments, mortgages and secured and unsecured lending.
Performance
2008/07
GRCB – Emerging Markets profit before tax increased 34% (£34m) to
£134m (2007: £100m). Very strong income growth, including £82m from
the Visa IPO and the sale of shares in MasterCard, absorbed the increased
investment across existing and new markets and higher impairment
charges. The number of distribution points increased 286 to 836 (2007:
550). New market entries in 2008 comprised the acquisition of Expobank
in Russia, the launch of a new business in Pakistan and the announced
acquisition of Bank Akita in Indonesia.
Income increased 91% (£486m) to £1,019m (2007: £533m),
reflecting growth in lending, deposit taking and fee-driven transactional
revenues.
Net interest income increased 93% (£297m) to £616m (2007:
£319m), loans and advances to customers increased 98% to £10.1bn
(2007: £5.1bn). The assets margin decreased 167 basis points to 4.95%
(2007: 6.62%), reflecting higher funding costs, partially offset by
improvement in the product mix. Customer accounts increased 55% to
£9.6bn (2007: £6.2bn). The deposit margin improved 142 basis points to
2.17% (2007: 0.75%), driven by a change in the product mix and a higher
return from funding the assets.
Financial review
Analysis of results by business
Key facts
2008 2007 2006
Number of distribution points 836 550 214
Average liabilities balances £7.6bn £5.1bn £4.0bn
Average asset balances £7.1bn £3.6bn £2.3bn
Highlights
£1,019 m£13 4 m
Income Profit before tax
Performance indicators
1.0
4.2
06
Number of customers m
08
214
836
06
Number of distribution points
(branches and sales centres)
08
2.0
07
550
07