Barclays 2010 Annual Report Download - page 64

Investment Management
Investment Management manages the Group’s 19.9%
economic interest in BlackRock, Inc. and the residual
elements relating to Barclays Global Investors, which
was sold on 1st December 2009.
Performance
2010
Investment Management profit before tax of £67m (2009: £22m)
principally reflected dividend income from the 19.9% holding in
BlackRock, Inc., which was acquired as part of the consideration
for the sale of Barclays Global Investors on 1st December 2009.
Total assets as at 31st December 2010 of £4.6bn (2009: £5.4bn)
reflected the fair value of the Group’s investment in 37.567 million
BlackRock, Inc. shares.
The available for sale reserve impact of £1.1bn relating to this
investment as at 31st December 2010 resulted in an adverse impact
of approximately 20bps in the Core Tier 1 ratio over the year. The
offsetting appreciation in the shares’ US Dollar value against Sterling
of £0.3bn was hedged by foreign exchange instruments.
The holding was assessed for impairment by the Group as at 31st
December 2010. This analysis identified that the reduction in fair value
from the original acquisition value was not significant or prolonged in
the light of an increase in share price through the second half of the year
and ongoing price volatility and, as such, no impairment was recognised.
2009
Investment Management’s 2009 results reflect the continuing operations
of BGI. These consist of residual obligations under the cash support
arrangements and associated liquidity support charges. Profit before
tax on continuing operations for 2009 increased by £368m to £22m
(2008: £346m loss) primarily due to lower liquidity support charges.
Total assets as at 31st December 2009 of £5.4bn reflected the fair value
of the Group’s investment in 37.567 million of BlackRock, Inc. shares.
Financial review
Analysis of results by business continued
2010
£m
2009
£m
2008
£m
Income statement information
Net interest (expense)/income (6) 10 (38)
Net fee and commission income/(expense) 4 (2) 1
Net trading (loss)/income (19) 20 (4)
Net investment income/(loss) 100 11 (29)
Other (loss)/income (1) 1 (2)
Total income 78 40 (72)
Operating expenses (11) (17) (274)
Loss on disposal of subsidiaries, associates and joint ventures – (1) –
Profit before tax 67 22 (346)
Balance Sheet Information
Total assets £4.6bn £5.4bn n/a
Risk weighted assets £0.1bn £0.1bn n/a
62 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10