Barclays 2013 Annual Report Download - page 266

2013
Total income of £1,839m remained broadly in line with the prior year.
Net interest income of £859m was also in line with the prior year, as
growth in deposit and lending balances, primarily in the High Net
Worth business, was offset by a 19bps decrease in net interest margin
to 104bps reflecting a change in product mix and reduced
contributions from structural hedges. Customer asset margin increased
21bps to 86bps due to lower funding rates. Average customer assets
increased 14% to £22.4bn. Customer liability margin decreased 15bps
to 97bps reflecting a change in product mix and lower funding rates.
Average customer liabilities increased 21% to £60.6bn.
Net fees and commission income increased 2% to £968m.
Credit impairment charges increased £83m to £121m, largely reflecting
the impact of deterioration in recovery values from property held as
security, primarily in Europe. H113 included a charge of £15m relating
to secured lending on Spanish property.
Adjusted operating expenses increased £241m to £1,750m largely
reflecting costs to achieve Transform of £158m and a £23m customer
remediation provision. Statutory operating expenses increased £320m
to £1,829m including goodwill impairment of £79m (2012: £nil).
For further details refer to Note 25 Goodwill and intangible assets
on pages 328 and 329.
Adjusted loss before tax of £19m moved from a profit of £274m in 2012
primarily driven by costs to achieve Transform, increased credit
impairment charges and the customer remediation provision. An
adjusting item of £79m relating to the impairment of goodwill was also
included in the statutory loss before tax of £98m (2012: profit of
£274m).
Loans and advances to customers increased 8% to £23.1bn and
customer deposits increased 18% to £63.4bn primarily driven by
growth in the High Net Worth business.
CRD III RWAs increased 4% to £16.7bn driven by reallocation of
liquidity pool assets previously held centrally, offset by improvements
to the application of collateral to credit exposures.
£1,839m
total income
Down from £1,820m in 2012
£19m
adjusted loss before tax
From a profit of £274m in 2012
Financial review
Analysis of results by business continued
Wealth and Investment Management
2013
£m
2012
£m
2011
£m
Income Statement Information
Net interest income 859 856 823
Net fee and commission income 968 948 944
Net trading income 18 16 5
Other expense (6) – (2)
Total income 1,839 1,820 1,770
Credit impairment charges and other provisions (121) (38) (41)
Net operating income 1,718 1,782 1,729
Operating expenses (excluding UK bank levy, costs to achieve Transform and goodwill impairment) (1,586) (1,505) (1,537)
UK bank levy (6) (4) (1)
Costs to achieve Transform (158) – –
Goodwill impairment (79) – –
Operating expenses (1,829) (1,509) (1,538)
Other net income/(expense) 13 1 (3)
(Loss)/profit before tax (98) 274 188
Adjusted (loss)/profit before taxa(19) 274 188
Adjusted attributable (loss)/profita,b (24) 222 166
Balance Sheet Information
Loans and advances to customers at amortised cost £23.1bn £21.3bn £18.8bn
Customer deposits £63.4bn £53.8bn £46.5bn
Total assetsc£37.6bn £24.5bn £20.8bn
Risk weighted assets – CRD IIIc£16.7bn £16.1bn £13.1bn
Risk weighted assets – CRD IV fully loadedc£17.3bn
Notes
a Adjusted profit before tax excludes the impact of goodwill impairment of £79m (2012: £nil; 2011: £nil).
b Adjusted attributable profit represents profit after tax excluding non-controlling interests’ share of those profits.
c 2013 total assets and risk weighted assets include an allocation of liquidity pool assets previously held centrally.
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264 Barclays PLC Annual Report 2013