Barclays 2013 Annual Report Download - page 257

For more information on Europe RBB
business model and strategy please
see pages 22 to 25
Notes
a Adjusted performance measures exclude the impact of goodwill impairment £nil (2012: £nil; 2011: £427m).
b Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.
AdjustedaStatutory
2013 2012 2011 2013 2012 2011
Performance Measures
Return on average tangible equity (49.6%) (14.2%) (12.6%) (49.6%) (14.2%) (33.7%)
Return on average equity (45.2%) (12.9%) (9.7%) (45.2%) (12.9%) (26.0%)
Return on average risk weighted assets (5.7%) (1.7%) (1.4%) (5.7%) (1.7%) (4.0%)
Cost: income ratio 186% 114% 114% 186% 114% 157%
Loan loss rate (bps) 75 64 43 75 64 43
Key Facts
90 day arrears rates – Home loans 0.8% 0.8% 0.7%
Average LTV of mortgage portfolio – Spainb 63% 65% 60%
Average LTV of mortgage portfolio – Italyb 60% 60% 59%
Average LTV of mortgage portfolio – Portugalb 76% 78% 70%
Number of customers 1.8m 2.0m 2.0m
Number of branches 572 923 978
Number of sales centres 61 219 250
Number of distribution points 633 1,142 1,228
Number of employees (full time equivalent) 5,900 7,500 8,100
EUR/£ – Period end 1.20 1.23 1.19
EUR/£ – Average 1.18 1.23 1.15
Customer deposits reduced by 7% to £16.3bn with customer attrition
partially offset by foreign currency movements.
Total assets reduced by 2% to £45.0bn driven by the reduction in loans
and advances to customers.
CRD III RWAs remained broadly flat at £15.9bn (2012: £15.8bn), with
a reduction in Exit Quadrant RWAs offset by changes due to the
treatment of forbearance.
2012
Income declined 29% to £708m reflecting the challenging economic
environment across Europe and non-recurrence of gains from disposal
of hedging instruments in 2011.
Net interest income declined 30% to £428m. Customer asset margin
decreased 5bps to 46bps with net interest margin down 23bps to
78bps, driven by higher funding costs partially offset by product
re-pricing. Average customer assets decreased 6% to £40.0bn driven
by active management to reduce funding mismatch. Customer liability
margin decreased 27bps to 38bps and average customer liabilities
decreased 16% to £14.8bn, reflecting competitive pressures.
Non-interest income declined 29% to £639m, reflecting lower
commissions mainly from Italy mortgage sales and lower sales of
investment products.
Credit impairment charges increased 24% to £257m due to
deterioration in credit performance across Europe, reflecting current
economic conditions. The loan loss rate increased to 64bps (2011:
43bps). 90 day arrears rate for home loans increased 19bps to 0.8%.
Adjusted operating expenses decreased 30% to £807m, reflecting
non-recurrence of 2011 restructuring charges of £189m and related
ongoing cost savings. Statutory operating expenses decreased 49% to
£807m due to the non-recurrence of the £427m goodwill impairment
write off in 2011.
Adjusted loss before tax remained flat at £343m (2011: £340m), while
statutory loss before tax decreased 55% to £343m resulting from the
non-recurrence of the 2011 goodwill impairment write off.
Loans and advances to customers decreased 8% to £39.2bn reflecting
currency movements and active management to reduce funding
mismatch.
Customer deposits increased 7% to £17.6bn, reflecting active
management to reduce funding mismatch.
Total assets reduced by 8% to £46.1bn driven by the reduction in loans
and advances to customers.
CRD III RWAs decreased 4% to £15.8bn principally due to reductions in
loans and advances to customers and currency movements, partially
offset by an increased operational risk charge and portfolio
deterioration in Spain.
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