Barclays 2012 Annual Report Download - page 213

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2011
Income increased 3% to £4,656m driven by mortgages and personal
savings.
Net interest income increased 8% to £3,413m with the net interest
margin rising to 151bps (2010: 145bps) and risk adjusted net interest
margin up to 127bps (2010: 108bps). Customer asset margin declined
to 122bps (2010: 126bps) with average customer assets increasing 4%
to £118.5bn. Customer liability margin improved to 87bps (2010:
68bps) reflecting the increase in the cost of funds and therefore the
value generated from customer liabilities with average customer
liabilities increasing 3% to £107.8bn.
Net fee and commission income decreased 8% to £1,157m following
closure of the branch-based element of the financial planning business.
Credit impairment charges decreased 35% to £536m with annualised
loan loss rate of 44bps (2010: 70bps). Personal unsecured lending
impairment improved 44% to £311m with 90 day arrears rates on UK
personal loans improving to 1.7% (2010: 2.6%).
Operating expenses decreased 8% to £2,702m, excluding £400m
provision for PPI redress in 2011 and £123m one-off pension credit in
2010. Including these items, operating expenses increased 10% to
£3,102m.
Adjusted profit before tax improved 60% to £1,420m. Including £400m
provision for PPI redress and £100m gain on acquisition of Standard
Life Bank in 2010, profit before tax improved 3% to £1,020m.
Adjusted return on average equity improved to 14.9% (2010: 9.9%) and
adjusted return on average tangible equity improved to 28.6% (2010:
18.7%).
Total loans and advances to customers increased 5% to £121.2bn
driven by growth in mortgage balances. Average mortgage balances
increased 6% reflecting strong positive net lending. Mortgage balances
at 31 December 2011 were £107.8bn, a share by value of 9% (2010:
8%). Gross new mortgage lending increased to £17.2bn (2010:
£16.9bn), with a share by value of 12% (2010: 13%). Mortgage
redemptions decreased to £10.7bn (2010: £11.0bn), resulting in net
new mortgage lending of £6.5bn (2010: £5.9bn). Average Loan to
Value (LTV) ratio on the mortgage portfolio (including buy-to-let) on a
current valuation basis was 44% (2010: 43%). Average LTV of new
mortgage lending was 54% (2010: 52%). Total customer deposits
increased 3% to £111.8bn.
Risk weighted assets decreased 4% to £34.0bn reflecting a decrease in
unsecured lending balances partially offset by the growth in mortgage
balances.
Note
a Adjusted performance measures excludes the impact of the provision for PPI redress of £1,180m (2011: £400m; 2010: £nil) and gains on acquisitions of £nil (2011:
£nil; 2010: £100m).
AdjustedaStatutory
2012 2011 2010 2012 2011 2010
Performance Measures
Return on average equity 16.0% 14.9% 9.9% 3.1% 10.6% 11.4%
Return on average tangible equity 30.5% 28.6% 18.7% 5.9% 20.3% 21.4%
Return on average risk weighted assets 3.1% 3.0% 1.9% 0.6% 2.1% 2.2%
Loan loss rate (bps) 21 44 70 21 44 70
Cost: income ratio 61% 58% 62% 87% 67% 62%
Key Facts
90 day arrears rates – UK loans 1.3% 1.7% 2.6%
90 day arrears rates – home loans 0.3% 0.3% 0.3%
Number of UK current accounts 11.7m 11.9m 11.6m
Number of UK savings accounts 15.4m 15.1m 14.4m
Number of UK mortgage accounts 945,000 930,000 916,000
Number of Barclays Business customers 765,000 785,000 760,000
LTV of mortgage portfolio 46% 44% 43%
LTV of new mortgage lending 56% 54% 52%
Number of branches 1,593 1,625 1,658
Number of ATMs 4,166 3,629 3,345
Number of employees (full time equivalent) 34,800 34,100 34,700
barclays.com/annualreport Barclays PLC Annual Report 2012 I 211
£4,421m
total income net of insurance claims
£1,472m
adjusted profit before tax