Barclays 2012 Annual Report Download - page 224

2012
Income improved 4% to £1,815m primarily driven by an increase in the
High Net Worth businesses.
Net interest income grew 7% to £853m reflecting growth in deposit
and lending balances in the High Net Worth businesses. Net interest
margin decreased 7bps to 122bps due to ongoing low interest rate
environment and reduced contribution from structural hedges.
Customer deposits increased 16% to £53.8bn. Loans and advances to
customers increased 13% to £21.2bn.
Net fees and commissions income remained broadly in line at £946m
(2011: £943m) despite challenging market conditions.
Operating expenses decreased 2% to £1,463m as cost control
initiatives were partially offset by the continued cost of the strategic
investment programme.
Profit before tax increased 52% to £315m and return on average equity
increased to 13.9% (2011: 10.9%).
Client assets increased 13% to £186.0bn (2011: £164.2bn) principally
reflecting increase in net new assets in High Net Worth businesses.
Risk weighted assets increased 21% to £15.8bn principally due to
growth in lending and an increased operational risk charge.
Wealth and Investment Management
2012
£m
2011
£m
2010
£m
Income Statement Information
Net interest income 853 798 678
Net fee and commission income 946 943 869
Net trading income 16 5 11
Net investment income – – 2
Other (expense)/income – (2) –
Total income 1,815 1,744 1,560
Credit impairment charges and other provisions (38) (41) (48)
Net operating income 1,777 1,703 1,512
Operating expenses (1,463) (1,493) (1,349)
Share of post-tax results of associates and joint ventures 1 (3) –
Profit before tax 315 207 163
Adjusted profit before tax 315 207 163
Balance Sheet Information
Loans and advances to customers at amortised cost £21.2bn £18.8bn £16.1bn
Customer deposits £53.8bn £46.5bn £44.8bn
Total assets £23.7bn £20.9bn £17.8bn
Risk weighted assets £15.8bn £13.1bn £12.4bn
barclays.com/annualreport222 I Barclays PLC Annual Report 2012
Financial review
Analysis of results by business continued