Barclays 2014 Annual Report Download - page 246

244 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Analysis of results by business
Financial review
Margins analysis
Year ended 31 December 2014 Year ended 31 December 2013
Net interest
income
£m
Average
customer
assets
£m
Net
interest
margin
%
Net interest
income
£m
Average
customer
assets
£m
Net
interest
margin
%
Personal and Corporate Banking 6,298 210,026 3.00 5,893 202,497 2.91
Barclaycard 3,044 34,776 8.75 2,829 31,459 8.99
Africa Banking 2,093 35,153 5.95 2,245 38,640 5.81
Total Personal and Corporate Banking,
Barclaycard and Africa Banking 11,435 279,955 4.08 10,967 272,596 4.02
Investment Bank 647 393
Head Office and Other Operations (216) (67)
Barclays Core 11,866 11,293
Barclays Non-Core 214 307
Group net interest income 12,080 11,600
Total PCB, Barclaycard and Africa Banking net interest income
increased 4% to £11.4bn due to an increase in average customer assets
to £280.0bn (2013: £272.6bn) with growth in PCB mortgages and
Barclaycard, partially offset by reductions in Africa Banking as the ZAR
depreciated against GBP. Net interest margin increased 6bps to 4.08%
primarily due to higher savings margins in PCB, and in Africa following
the rise in the South African benchmark interest rate and the
favourable impact of higher deposit margins. This was partially offset
by a decrease in Barclaycard due to the impact of promotional offers
and a change in product mix, partially offset by lower funding costs.
Group net interest income increased to £12.1bn (2013: £11.6bn)
including structural hedge contributions of £1.6bn (2013: £1.6bn).
Equity structural hedge income increased as the weighted average life
of the hedge was extended. This was offset by lower product structural
hedges driven by the maintenance of the hedge in a continuing low
rate environment.