Barclays 2012 Annual Report Download - page 211

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
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% of average risk
weighted assets for each business, adjusted for capital deductions,
including goodwill and intangible assets, reflecting the assumptions
the Group uses for capital planning purposes. The higher capital level
currently held, reflecting the Core Tier 1 capital ratio of 10.9% as at
31 December 2012, is allocated to Head Office and Other Operations.
Average allocated tangible equity is calculated using the same method
but excludes goodwill and intangible assets.
Comparatives throughout this document have been calculated based
on 10% of risk weighted assets.
Return on average equity
Adjusted Statutory
2012
%
2011
%
2010
%
2012
%
2011
%
2010
%
UKRBB 16.0 14.9 9.9 3.1 10.6 11.4
Europe RBB (8.0) (6.0) (1.0) (8.0) (21.8) (0.2)
Africa RBB 3.8 9.7 8.8 3.8 9.8 11.6
Barclaycard 22.1 17.4 12.5 15.2 6.8 12.5
Investment Bank 13.7 10.4 13.5 13.7 10.4 13.5
Corporate Banking 5.5 1.7 (3.7) (3.7) (1.0) (6.6)
Wealth and Investment Management 13.9 10.9 8.8 13.9 10.9 8.8
Group excluding Head Office and Other Operations 12.1 9.4 8.8 8.0 6.4 8.7
Head Office and Other Operations Impact (4.3) (2.8) (2.0) (9.9) (0.6) (1.5)
Group 7.8 6.6 6.8 (1.9) 5.8 7.2
Return on average tangible equity
Adjusted Statutory
2012
%
2011
%
2010
%
2012
%
2011
%
2010
%
UKRBB 30.5 28.6 18.7 5.9 20.3 21.4
Europe RBB (9.2) (7.9) (1.3) (9.2) (29.0) (0.2)
Africa RBBa7.6 16.2 15.9 7.6 16.3 18.4
Barclaycard 29.7 23.0 16.9 20.5 9.0 16.9
Investment Bank 14.2 10.8 14.1 14.2 10.8 14.1
Corporate Banking 5.8 1.8 (4.0) (3.9) (1.0) (7.2)
Wealth and Investment Management 19.2 15.0 12.3 19.2 15.0 12.3
Group excluding Head Office and Other Operations 14.2 11.5 10.8 9.5 8.0 10.7
Head Office and Other Operations Impact (5.1) (3.6) (2.6) (11.7) (1.1) (2.0)
Group 9.1 7.9 8.2 (2.2) 6.9 8.7
Average equity Average tangible equity
2012
£m
2011
£m
2010
£m
2012
£m
2011
£m
2010
£m
UKRBB 6,940 6,821 6,954 3,634 3,562 3,694
Europe RBB 2,278 2,703 2,506 1,984 2,032 1,844
Africa RBB 2,511 2,625 2,499 1,067 1,034 807
Barclaycard 4,666 4,634 4,263 3,472 3,503 3,149
Investment Bank 20,437 20,501 22,122 19,732 19,750 21,176
Corporate Banking 7,026 7,450 8,285 6,676 6,959 7,575
Wealth and Investment Management 1,961 1,723 1,647 1,415 1,259 1,179
Head Office and Other Operationsb8,939 5,356 1,561 8,939 5,352 1,559
Groupc54,758 51,813 49,837 46,919 43,451 40,983
Notes
a The return on average tangible equity for Africa RBB has been calculated based on average tangible equity including amounts relating to Absa Group’s non-
controlling interests.
b Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average shareholders’ equity and tangible equity.
c Group average shareholders’ equity and average shareholders’ tangible equity excludes the cumulative impact of own credit on retained earnings for the calculation
of adjusted performance measures.
d Certain corporate banking activities in Africa, previously reported under Africa RBB, are now included within Corporate Banking. The 2010 and 2011 comparatives
have been restated. The restatement has no impact on the Group’s overall results.
barclays.com/annualreport Barclays PLC Annual Report 2012 I 209