Barclays 2012 Annual Report Download - page 225

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
2011
Income improved 12% to £1,744m reflecting strong income growth in
the High Net Worth businesses. Net operating income improved 13%
to £1,703m with the loan loss rate reducing to 21bps (2010: 29bps).
Net interest income improved 18% to £798m as customer deposit and
loan balances have increased reflecting growth in High Net Worth client
balances and an increase in margins on deposits. Net interest margin
increased to 129bps from 122bps with average customer deposits up
£3.6bn to £44.5bn and average loans up £3.0bn to £17.5bn.
Net fee and commission income improved 9% to £943m driven by
higher transactional activity in the High Net Worth businesses.
Operating expenses increased 11% to £1,493m reflecting increase in
investment spend and related restructuring costs to support the strategic
investment programme. Includes the cost of increase in the client facing
staff and infrastructure to support the High Net Worth businesses.
Profit before tax increased 27% to £207m driven by strong income growth
partly offset by increased investment in the growth of the business.
Client assets increased marginally to £164.2bn (2010: £163.9bn) with
strong net new asset growth in the High Net Worth businesses offset
by market, foreign exchange and other movements.
Return on average equity increased to 10.9% (2010: 8.8%) and return
on average tangible equity up to 15.0% (2010: 12.3%) with growth in
income and profit before tax significantly higher than increased equity.
Risk weighted assets increased 6% to £13.1bn. This compares to
growth in lending of 17%, with an increased level of collateral in the
lending portfolio.
£1,815m
total income
£315m
profit before tax
Adjusted Statutory
2012 2011 2010 2012 2011 2010
Performance Measures
Return on average equity 13.9% 10.9% 8.8% 13.9% 10.9% 8.8%
Return on average tangible equity 19.2% 15.0% 12.3% 19.2% 15.0% 12.3%
Return on average risk weighted assets 2.0% 1.5% 1.2% 2.0% 1.5% 1.2%
Loan loss rate (bps) 17 21 29 17 21 29
Cost: income ratio 81% 86% 86% 81% 86% 86%
Other financial measures
Total client assets £186.0bn £164.2bn £163.9bn
Number of employees 7,900 8,100 7,700
barclays.com/annualreport Barclays PLC Annual Report 2012 I 223