Barclays 2012 Annual Report Download - page 217

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2011
Income improved 2% to £3,786m with good underlying growth offset
by currency movements.
Net interest income improved 3% to £1,978m with the net interest
margin remaining stable at 322bps. South Africa improved to £1,510m
due to strong liability growth and margin improvements, partially offset
by the depreciation in the average value of the Rand against Sterling
and a reduction in total advances to customers. The rest of the African
businesses declined to £468m due to Sterling appreciation and the
impact of margin compression in both retail and corporate portfolios.
Net fee and commission income declined 4% to £1,196m reflecting the
impact of currency movements partially offset by the impact of volume
growth and selected pricing increases.
Credit impairment charges decreased 17% to £466m reflecting
improved economic conditions in South Africa and better recoveries
across the continent, together with currency movements.
Operating expenses decreased 1% to £2,279m, primarily driven by
strong cost management, currency movements and restructuring
benefits partially offset by a one-off pension credit in 2010 and
inflationary pressures.
Adjusted profit before tax improved 28% to £830m reflecting business
growth in South Africa and a significant improvement in credit
impairments across the African continent offset by non-recurrence of a
pension credit of £54m in 2010. Profit before tax improved 14% to
£832m, with 2010 including a gain of £77m from the sale of the
custody business.
Customer assets decreased 20% to £34.4bn, driven by depreciation of
major African currencies against Sterling and lower volumes. Customer
asset margin was 292bps. Improvement in South Africa driven by
strong liability growth and margin improvements, partially offset by the
depreciation in the average value of the Rand against Sterling and a
reduction in total advances to customers.
Customer liabilities decreased 3% to £22.6bn driven by depreciation of
the Rand against Sterling partially offset by underlying growth in retail
and commercial deposits of 13% in South Africa. Customer liability
margin was 304bps as growth in high margin products within retail
was offset by pressures on commercial margins.
Notes
a Adjusted profit before tax and adjusted performance measures excludes the impact of profit on disposals of subsidiaries, associates and joint ventures of £nil (2011:
£2m; 2010: £81m).
b The return on average equity differs from the return on the equity reported by Absa Group Ltd as the latter does not include goodwill arising from Barclays
acquisition of the Absa Group and does include other Absa Group businesses that Barclays Group reports within Barclaycard, Investment Bank and Wealth and
Investment Management.
c Including non-controlling interests.
£3,157m
total income net of insurance claims
£468m
profit before tax
AdjustedaStatutory
2012 2011 2010 2012 2011 2010
Performance Measures
Return on average equityb, c 3.8% 9.7% 8.8% 3.8% 9.8% 11.6%
Return on average tangible equityc7.6% 16.2% 15.9% 7.6% 16.3% 18.4%
Return on average risk weighted assets 0.9% 1.7% 1.6% 0.9% 1.7% 1.9%
Loan loss rate (bps) 194 129 125 194 129 125
Cost: income ratio 65% 64% 66% 65% 64% 66%
Key Facts
90 days arrears rate – South African home loans 1.6% 3.2% 3.9%
Number of customers 13.5m 14.5m 14.4m
Number of ATMs 10,468 10,068 9,530
Number of branches 1,339 1,354 1,321
Number of sales centres 112 139 222
Number of distribution points 1,451 1,493 1,543
Number of employees (full time equivalent) 41,700 43,800 47,700
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