Barclays 2011 Annual Report Download - page 177

Returns and equity by business
Returns on average equity and average tangible equity are calculated
using profit after tax and non-controlling interests for the period, divided
by average allocated equity or tangible equity as appropriate.
Average allocated equity has been calculated as 10% (previously 9% in
2010 and 8% in 2009) of average risk weighted assets for each business,
reflecting the planning assumptions the Group uses for capital purposes,
adjusted for capital deductions, including goodwill and intangible assets.
The higher level of capital currently held, reflecting the current Core Tier 1
Notes
a Adjusted performance measures exclude the impact of own credit gains, gains on debt buy-backs, loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc.,
impairment of investment in BlackRock, Inc., provision for PPI redress, goodwill impairment and loss/gain on acquisitions and disposals.
b The return on average tangible equity for Africa RBB is calculated based on average tangible equity including amounts relating to Absa Groups’s non-controlling interests.
c Includes risk weighted assets and capital deductions in Head Office Functions and Other Operations, plus the residual balance of average shareholders’ equity and tangible equity.
Average Equity Average Tangible Equity
2011
£m
2010
£m
2009
£m
2011
£m
2010
£m
2009
£m
UK RBB 6,821 6,954 6,979 3,562 3,694 3,686
Europe RBB 2,703 2,506 2,506 2,032 1,844 1,906
Africa RBB 2,866 2,750 2,624 1,064 908 1,012
Barclaycard 4,634 4,263 3,955 3,503 3,149 2,848
Barclays Capital 20,501 22,122 22,285 19,750 21,176 21,193
Barclays Corporate 7,208 8,034 8,617 6,928 7,473 8,102
Barclays Wealth 1,724 1,647 1,575 1,259 1,179 1,107
Investment Management 359 585 9 359 585 9
Head Office Functions and Other Operationsc4,997 976 (9,105) 4,994 975 (10,521)
Group 51,813 49,837 39,445 43,451 40,983 29,342
AdjustedaStatutory
Return on Average Equity 2011
%
2010
%
2009
%
2011
%
2010
%
2009
%
UK RBB 14.9 9.9 7.5 10.6 11.4 7.5
Europe RBB (6.0) (1.0) 2.6 (21.8) (0.2) 8.4
Africa RBB 10.0 9.0 6.8 10.0 11.5 7.6
Barclaycard 17.4 12.5 11.9 6.8 12.5 11.9
Barclays Capital 10.4 13.5 13.3 10.4 13.5 13.3
Barclays Corporate 1.3 (4.1) 0.7 (1.4) (7.1) 1.4
Barclays Wealth 10.9 8.8 7.6 10.9 8.8 7.7
Investment Management 24.1 6.5 nm nm 6.5 nm
Group excluding Head Office Functions and Other Operations 9.5 8.8 9.1 2.5 8.7 9.5
Head Office Functions and Other Operations impact (2.9) (2.0) (2.2) 3.3 (1.5) (2.8)
Group 6.6 6.8 6.9 5.8 7.2 6.7
AdjustedaStatutory
Return on Average Tangible Equity 2011
%
2010
%
2009
%
2011
%
2010
%
2009
%
UK RBB 28.6 18.7 14.1 20.3 21.4 14.1
Europe RBB (7.9) (1.3) 3.4 (29.0) (0.2) 11.0
Africa RBBb16.6 15.9 15.4 16.7 18.2 16.2
Barclaycard 23.0 16.9 16.5 9.0 16.9 16.6
Barclays Capital 10.8 14.1 14.0 10.8 14.1 14.0
Barclays Corporate 1.4 (4.4) 0.8 (1.5) (7.7) 1.5
Barclays Wealth 15.0 12.3 10.9 15.0 12.3 11.0
Investment Management 24.1 6.5 nm nm 6.5 nm
Group excluding Head Office Functions and Other Operations 11.6 10.7 11.1 3.6 10.6 11.7
Head Office Functions and Other Operations impact (3.7) (2.5) (1.8) 3.3 (1.9) (2.7)
Group 7.9 8.2 9.3 6.9 8.7 9.0
capital ratio of 11.0%, is allocated to Head Office Functions and Other
Operations. The Group return on average risk weighted assets was 1.0%
(2010: 1.1%, 2009: 0.9%). Average allocated tangible equity is calculated
using the same method as average allocated equity but excludes goodwill
and intangible assets.
Comparatives throughout this document have been calculated based on
10% of risk weighted assets.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 175
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