Barclays 2009 Annual Report Download - page 77

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 75
Performance
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2008/07
Barclays Global Investors profit before tax decreased 19% (£139m)
to £595m (2007: £734m). Profit was impacted by the cost of provision
of selective support of liquidity products of £263m (2007: £80m) and
an 8% appreciation in the average value of the US Dollar against Sterling.
Income declined 4% (£82m) to £1,844m (2007: £1,926m).
Net fee and commission income declined 1% (£19m) to £1,917m
(2007: £1,936m). This was primarily attributable to reduced incentive fees
of £49m (2007: £198m), partially offset by increased securities lending
revenue.
Operating expenses increased 5% (£57m) to £1,249m
(2007: £1,192m). Operating expenses included charges of £263m
(2007: £80m) related to selective support of liquidity products, partially
offset by a reduction in performance related costs. The cost:income ratio
increased to 68% (2007: 62%).
The loss before tax on continuing operations increased to £346m
(2007: £119m) principally reflecting the liquidity support charge recognised
during the year.
Key points
– Gain on sale £6,331m
£1,9 0 3 m£7,079m
profit before taxtotal income net of
insurance claims
2009 2008 2007
Continuing Discontinued Continuing Discontinued Continuing Discontinued
operations operations Total operations operations Total operations operations Total
£m £m £m £m £m £m £m £m £m
Income statement information
Net interest income/(expense) 10 33 43 (38) – (38) (20) 12 (8)
Net fee and commission income (2) 1,759 1,757 1 1,916 1,917 (1) 1,937 1,936
Net trading income/(loss) 20 1 21 (4) (10) (14) – 5 5
Net investment income/(loss) 11 66 77 (29) – (29) (9) – (9)
Principal transactions 31 67 98 (33) (10) (43) (9) 5 (4)
Other income 145(2) 10 8 – 2 2
Total income 40 1,863 1,903 (72) 1,916 1,844 (30) 1,956 1,926
Operating expenses excluding
amortisation of intangible assets (17) (1,123) (1,140) (274) (960) (1,234) (89) (1,095) (1,184)
Amortisation of intangible assets – (14) (14) – (15) (15) – (8) (8)
Operating expenses (17) (1,137) (1,154) (274) (975) (1,249) (89) (1,103) (1,192)
Profit on disposal of associates
and joint ventures (1) – (1) ––––––
Profit/(loss) before tax and disposal
of discontinued operations 22 726 748 (346) 941 595 (119) 853 734
Profit on disposal of
discontinued operations – 6,331 6,331 ––––––
Profit/(loss) before tax 22 7,057 7,079 (346) 941 595 (119) 853 734
Balance sheet information
Total assets £5.4bn – £5.4bn £0.7bn £70.6bn £71.3bn £0.5bn £88.7bn £89.2bn