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Place de cotation: Londres SETS
(Grande-Bretagne)
Barclays is one of the largest
financial services groups in the United Kingdom.If you'd like to find out
more about us, you've come to the right place.
20 February 2007 -
Barclays Barclays PLC Results for the year to 31st December 2006
“Barclays had an excellent
year in 2006. We delivered outstanding performance in Barclays Capital
and Barclays Global Investors. Momentum has accelerated in UK Retail Banking
and Absa has outperformed our acquisition business plan delivering very
strong growth. Conditions in UK cards and consumer loans were difficult
but Barclaycard UK consumer credit performance is beginning to improve.
We are well positioned to deliver further growth in the years ahead.”John
Varley, Group Chief Executive
Excellent financial results
reflect the successful execution of strategy:
- Income up 25% to £21,595m
- Profit before tax up 35%
to £7,136m
- Earnings per share up
32% to 71.9p
- Dividend per share up
17% to 31.0p
In UK Retail Banking accelerated
income momentum drove very strong profit growth.
UK Banking delivered a further
three percentage points underlying improvement in the cost:income ratio;
the six percentage point target for 2005-2007 has been achieved a year
ahead of schedule; we still target a further two percentage point improvement
in 2007.
Outstanding growth in Barclays
Capital was driven by continued expansion of the business, the success
of past investment and the focus of our client driven model.
Barclays Global Investors
delivered another year of excellent growth. Assets under management increased
US$301bn to US$1.8trn.
Absa’s first full year contribution
was well ahead of the acquisition business plan.
Barclaycard profits were
affected by industrywide impairment pressures in UK cards and unsecured
loans; UK consumer credit performance is beginning to improve.
Approximately 50% of profits
came from outside the UK.
Income growth of 25% was
well ahead of expense growth of 20%. Expense growth reflected significant
investment in organic growth across the business and performance related
costs.
Profit before tax excluding
gains on business disposals of £323m increased 29% to £6,813m
and earnings per share increased 23% to 66.8p.
Strong income momentum going
into 2007.
2005
Results Announcement
"bARCLAYS DELIVERED STRONG
AND BROADLY BASED PROFIT GROWTH IN 2005. FORTY PERCENT OF OUR PROFITS CAME
FROM OUTSIDE THE UK AS OUR
WHOLESALE AND INTERNATIONAL BUSINESSES PERFORMED PARTICULARLY WELL AND
AS WE STARTED TO BENEFIT FROM THE aBSA ACQUISITION. fiE MADE GOOD PROGRESS
IN THE UK, AND ARE WELL POSITIONED ACROSS THE GROUP FOR FURTHER GROWTH
IN 2006."
JOHN ffARLEY, GROUP ¢HIEF
eXECUTIVE
sUmmarffi oF Keffi inFormation1
GROUP rESULTS 2005 2004
$ ¢HANGE £M £M
tOTAL INCOME NET OF INSURANCE
CLAIMS 17,333 14,108 23
iMPAIRMENT CHARGE AND OTHER
CREDIT PROVISIONS (1,571) (1,093) 44
oPERATING EXPENSES (10,527)
(8,536) 23
PROFIT BEFORE TAX 5,280
4,580 15
PROFIT ATTRIBUTABLE TO MINORITY
INTERESTS (394) (47) 738
PROFIT ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT 3,447 3,254 6
eCONOMIC PROFIT 1,752 1,568
12
eARNINGS PER SHARE 54.4P
51.0P 7
PROPOSED FULL YEAR DIVIDEND
PER SHARE 26.6P 24.0P 11
POST-TAX RETURN ON AVERAGE
SHAREHOLDERS' EQUITY 21.1$ 21.7$
£M £M $ ¢HANGE
sUMMARY OF DIVISIONAL PROFIT
BEFORE TAX2
UK bANKING 2,455 2,265 8
UK rETAIL bANKING 1,027
963 7
UK bUSINESS bANKING 1,428
1,302 10
bARCLAYS ¢APITAL 1,272
1,020 25
bARCLAYS GLOBAL iNVESTORS
542 336 61
fiEALTH mANAGEMENT 172 110
56
bARCLAYCARD 687 843 (19)
iNTERNATIONAL rETAIL AND
¢OMMERCIAL bANKING (ir¢b) 690 293 135
ir¢b - EX aBSA 355
293 21
ir¢b - aBSA 335 - -
PerForman¢e sUmmarffi
• tHE FINANCIAL RESULTS
REFLECT PROGRESS IN IMPLEMENTING OUR STRATEGY:
- tOTAL INCOME1 UP 23$ TO
£17,333M
- PROFIT BEFORE TAX UP 15$
TO £5,280M
- eARNINGS PER SHARE UP
7$ TO 54.4P
- dIVIDEND PER SHARE UP
11$ TO 26.6P
- eCONOMIC PROFIT UP 12$
TO £1,752M
- rETURN ON AVERAGE SHAREHOLDERS'
EQUITY OF 21$.
• UK bANKING PRODUCED GOOD
PROFIT2 GROWTH, UP 8$ TO £2,455M, AND OUTPERFORMED ITS PRODUCTIVITY
TARGET FOR 2005 WITH THE
COST:INCOME1 RATIO IMPROVING BY THREE PERCENTAGE POINTS VERSUS THE TARGET
OF
TWO PERCENTAGE POINTS. UK
rETAIL bANKING DELIVERED AN IMPROVEMENT IN PROFITS DRIVEN BY HIGHER
INCOME AND LOWER COSTS AND
UK bUSINESS bANKING MAINTAINED STRONG GROWTH.
• bARCLAYS ¢APITAL
MAINTAINED ITS EXCELLENT PERFORMANCE, WITH PROFIT2 RISING 25$ TO £1,272M.
PROFIT
GROWTH REFLECTED THE SUCCESS
OF PAST INVESTMENTS AND HIGHER CUSTOMER DRIVEN REVENUES ACROSS A BROAD
RANGE OF ASSET CLASSES.
tHE RATE OF PROFIT GROWTH EXCEEDED THE RATE OF GROWTH IN CAPITAL CONSUMPTION.
• bARCLAYS GLOBAL iNVESTORS
ACHIEVED OUTSTANDING RESULTS, WITH PROFIT2 UP 61$ TO £542M, AND DELIVERED
A
STRONG INVESTMENT PERFORMANCE.
nET NEW ASSETS UNDER MANAGEMENT WERE Us$88BN.
• fiEALTH mANAGEMENT PROFIT2
GREW SIGNIFICANTLY, UP 56$ TO £172M. tHIS REFLECTED BALANCE SHEET
GROWTH ACROSS THE BUSINESS,
HIGHER ASSETS UNDER MANAGEMENT AND CLIENT ACTIVITY, AND DISCIPLINED COST
CONTROL.
• bARCLAYCARD PROFIT2 FELL
19$ TO £687M. sTRONG INCOME1 GROWTH WAS OFFSET BY A SIGNIFICANT RISE
IN
IMPAIRMENT CHARGES, PRINCIPALLY
IN THE UK CARD PORTFOLIOS. bARCLAYCARD PROFITS WERE ALSO ADVERSELY
IMPACTED BY HIGHER COSTS,
MAINLY AS A RESULT OF INVESTMENT IN bARCLAYCARD Us (PREVIOUSLY JUNIPER),
WHICH IS PERFORMING ON PLAN.
• iNTERNATIONAL rETAIL AND
¢OMMERCIAL bANKING EXCLUDING aBSA ACHIEVED VERY STRONG GROWTH WITH
PROFIT2 UP 21$ TO £355M.
tHERE WERE PARTICULARLY GOOD PERFORMANCES IN eUROPEAN MORTGAGES,
aFRICAN CORPORATE LENDING
AND IN THE sPANISH BUSINESS.
• aBSA'S PERFORMANCE WAS
EXCELLENT, REFLECTING GOOD BALANCE SHEET GROWTH, STRONG LEVELS OF CUSTOMER
ACTIVITY AND A BENIGN CREDIT
ENVIRONMENT. aBSA'S CONTRIBUTION TO PROFIT2 WAS £335M REFLECTING
FIVE
MONTHS OF OWNERSHIP AND
THE ANNUALISED RETURN ON INVESTMENT BEFORE HEDGING AND FUNDING COSTS IN
THIS PERIOD WAS 13$.
• tHE GROUP'S RESULTS ALSO
REFLECT THE BENEFITS REALISED FROM OTHER RECENT ACQUISITIONS, INCLUDING
bANCO
fflARAGOZANO IN sPAIN, GERRARD
IN THE UK, bARCLAYCARD Us AND THE iVECO FINANCE BUSINESS.
• GROUP INCOME GROWTH1 EXCLUDING
aBSA, OF 16$, WAS VERY STRONG AND WELL DIVERSIFIED BY BUSINESS,
INCOME TYPE AND GEOGRAPHY.
nON-INTEREST INCOME1 EXCLUDING aBSA ROSE 20$ AND REPRESENTED OVER
HALF OF TOTAL INCOME1.
• tHE INCREASE IN OPERATING
EXPENSES EXCLUDING aBSA WAS IN LINE WITH COMPARABLE INCOME1 GROWTH. tHE
INCREASE WAS DRIVEN BY SIGNIFICANT
INVESTMENT DIRECTED TO THE GLOBAL PRODUCT BUSINESSES, HIGHER
PERFORMANCE RELATED EXPENSES,
THE EXPANSION OF iNTERNATIONAL rETAIL AND ¢OMMERCIAL bANKING AND
HEAD OFFICE RELOCATION COSTS.
tHIS WAS PARTLY OFFSET BY A STRONG FOCUS ON COST CONTROL AND BY GOOD
PROGRESS ON UK bANKING PRODUCTIVITY
GOALS.
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