Barclays.comBarclays 2010 financial overview
This summary is taken from Barclays 2010 Interim Results announcement.
"Against the backdrop of subdued economic and market activity and the sovereign debt storm of the second quarter, we have delivered good growth in income and profits during the first half of the year, and, at the same time as lending a further £18bn to UK households and businesses, we have kept the regulatory balance sheet under tight control. The twin benefits of a broadly based set of banking activities - both by geography and business line - and sound risk management lie behind these results.
"We recognise our wider social responsibility as an enabler of economic growth and prosperity, and our actions are - and will continue to be - informed by this duty. The period ahead will be one of great importance to the future of the industry as the final shape of the reform agenda starts to solidify. We will engage fully in that dialogue, whilst keeping our eyes firmly on the needs and interests of our customers and clients."
John Varley, Group Chief Executive
Group profit before tax of £3,947m, up 44%
- Income of £16,581m, up 8%
- Impairment charges of £3,080m, down 32%, giving a loan loss rate of 118bps (full year 2009: 156bps), with a sharp decrease in impairment at Barclays Capital partially offset by an increase in impairment in Barclays Corporate in Spain
- Net income of £13,501m, up 25%
- Operating expenses of £9,720m, up 21%, reflecting continued investment in the build-out of Barclays Capital and Barclays Wealth, increased regulatory costs, increased charges relating to prior year compensation deferrals, adverse impact of currency exchange rate movements and restructuring charges in Barclays Corporate
- Positive net income:cost “jaws” of 4%
- Returns on average shareholders’ equity of 9.8% (2009: 9.4%), on average tangible shareholders’ equity of 12.0% (2009: 13.0%) and on average risk weighted assets of 1.5% (2009: 1.0%)
Key measures of Group’s financial strength:
- Core Tier 1 ratio of 10.0% (31st December 2009: 10.0%) and Tier 1 capital ratio of 13.2% (31st December 2009: 13.0%)
- Adjusted gross leverage of 20x (31st December 2009: 20x)
- Group liquidity pool up £33bn to £160bn (31st December 2009: £127bn)
Barclays Capital profit before tax more than trebled to £3,400m (2009: £1,047m)
- Includes gain of £851m on own credit (2009: loss of £893m)
- Excluding effect of own credit, profit before tax of £2,549m (2009: £1,940m)
Global Retail Banking (GRB) profit before tax of £901m (2009: £845m)
- Income of £5,134m (2009: £5,207m), reflecting weak economic growth and further margin compression
- Impairment charges of £1,518m (2009: £1,647m)
- Net income of £3,616m (2009: £3,560m)
Absa profit before tax of £318m (2009: £259m), largely reflecting appreciation in the average value of the Rand against Sterling
Barclays Corporate loss of £377m (2009: profit of £152m)
- Profit before tax of £379m (2009: £369m) in UK & Ireland operation
- More than offset by losses of £756m (2009: £217m) within Continental Europe and New Markets, reflecting an increase in corporate impairment in Spain of £433m and restructuring costs in New Markets of £93m
Gross new lending to UK households and businesses of £18bn during the first half, plus a further £7bn through the acquisition of Standard Life Bank
Second interim dividend of 1.0p per share, making 2.0p for the half year.
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