Barclays 2010 Annual Report Download - page 55

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£188m
profit before tax
£801m
total income
2009
Profit before tax for Barclays Africa decreased 42% to £104m (2008: £180m)
primarily due to the allocation of gains from the Visa IPO and sale of shares
in MasterCard during 2008.
Income increased 2% to £739m (2008: £726m). After adjusting for
one-off gain of £65m from the Visa IPO and sale of shares in MasterCard
during 2008, underlying income increased 12% due to strong business
growth in Egypt, Botswana and Zambia.
Net interest income increased 23% to £498m (2008: £405m) driven by
the increase in interest margins. The assets margin increased to 575bps
(2008: 464bps) mainly due to lower funding costs. The liabilities margin
increased to 270bps (2008: 233bps) mainly driven by customer pricing.
Net fee and commission income increased 10% to £178m (2008: £162m)
primarily driven by growth in retail fee income.
Net Investment income decreased £80m to £7m (2008: £87m). 2008
included a gain of £65m from the sale of shares in MasterCard and Visa.
Impairment charges increased to £121m (2008: £71m) reflecting the
impact of the economic recession across the business with continued
pressure on default rates.
Operating expenses increased 13% to £538m (2008: £475m) reflecting
continued investment in infrastructure across markets.
Profit on disposal of subsidiaries, associates and joint ventures of £24m
represented the sale of a 7% stake in the Barclays Africa Botswana
business. The residual holding of Barclays in Barclays Bank of Botswana
Limited following the sale is 68%.
Total assets decreased 7% to £7.9bn (2008: £8.5bn), and risk weighted
assets decreased 13% to £7.6bn (2008: £8.7bn) due to the business
pro-actively managing down portfolio exposures driven by a realignment
of lending strategy in light of the economic downturn and the impact of
exchange rate movements.
2010 2009 2008
Performance Measures
Return on average equity 20% 8% n/a
Return on average tangible equity 22% 9% n/a
Return on average risk weighted assets 2.2% 1.0% n/a
Loan loss rate (bps) 186 252 n/a
Cost: income ratio 76% 73% 65%
Cost: net income ratio 85% 87% 73%
Key Facts
Number of customers 2.7m 2.8m 2.6m
Number of branches 481 490 484
Number of sales centres 55 83 169
Number of distribution points 536 573 653
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 53
Strategy Risk management and governance Financial statements Shareholder informationPerformanceAbout Barclays