Reporting Changes in 2006

Barclays PLC 16 June 2006 16th June 2006 BARCLAYS PLC GROUP REPORTING CHANGES IN 2006 Barclays PLC today announces the impact of certain changes in Group structure and reporting on 2005 and 2004 results, as advised in the conference call for the Trading Update on 25th May 2006. Barclays has realigned a number of reportable business segments based on the reorganisation of certain portfolios to better reflect the type of client served, the nature of the products offered and the associated risks and rewards. The Group's policy for the internal cost of funding and the segmental disclosure of risk weighted assets was also revised with effect from 1st January 2006. The restatements have no impact on the Group Income Statement or Balance Sheet. The 2005 and 2004 results for all the businesses are restated on pages 4 to 37 to show the effects of all of these changes. Group structure changes - effective 1st January 2006 UK Retail Banking comprises Personal Customers, Local Business (formerly Small Business), UK Premier and Home Finance (formerly Mortgages). A number of smaller business clients previously within UK Business Banking are now managed and reported within UK Retail Banking. UK Business Banking comprises Larger Business and Medium Business including Asset and Sales Finance. A number of financial institution, large corporate and property clients previously within UK Business Banking are now managed by and reported in Barclays Capital. A number of smaller business clients previously within UK Business Banking are now managed and reported within UK Retail Banking. Certain portfolios have been reclassified as businesses in transition and are now managed and reported in Head office functions and other operations. Barclays Capital has added a number of financial institutions, large corporates and property companies previously managed within UK Business Banking and International Retail and Commercial Banking - Absa. International Retail and Commercial Banking - Absa. The majority of Absa Corporate and Merchant Banking has been relaunched as Absa Capital and is being managed and reported in Barclays Capital. Head office functions and other operations. Certain lending portfolios previously managed within UK Business Banking have been reclassified as businesses in transition. These businesses are now centrally managed with the objective of maximising the recovery from these assets. The structure remains unchanged for: Barclays Global Investors; Wealth Management; Wealth Management - closed life assurance activities; Barclaycard and; International Retail and Commercial Banking excluding Absa. Changes to internal cost of funding - effective 1st January 2006 All transactions between the businesses are conducted on an arm's length basis. Internal charges and transfer pricing adjustments are reflected in the performance of each business. Head office functions and other operations contains a centralised Treasury function which manages the Group's capital base, generating a net interest income. Previously the net interest income was allocated to the businesses based on the level of economic capital held by each business as a proportion of that held by the Group, which ensured a nil net interest income result in Treasury. The allocation is now determined by applying Treasury's effective rate of return on capital to the average economic capital held by each business. In 2005 this had the effect of retaining a greater proportion of Treasury income within Head office functions and other operations, reflecting the capital and goodwill balances held centrally. This approach has been applied to all businesses. There is no change to the Group's net interest income as previously reported. Changes to risk weighted assets by business - effective 1st January 2006 Under the Group's securitisation programme, certain portfolios of loans and advances to customers and other assets subject to securitisation or similar risk transfer are adjusted in calculating the Group's risk weighted assets. With effect from 1st January 2006 the costs associated with each securitisation, which were previously held centrally, will be allocated to the relevant businesses. The regulatory capital adjustments arising from the securitisation programme will be attributed to the business which bears the costs. This approach has been applied to all businesses. There is no change to the Group's total risk weighted assets as previously reported. For further information please contact: Investor Relations Media Relations -------------------- ----------------- Mark Merson/James S Johnson Stephen Whitehead/Jason Nisse +44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6060/6223 The information in this announcement does not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985 (the 'Act'). Statutory accounts for the year ended 31 December 2005, which also include certain information required for the joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission, have been delivered to the Registrar of Companies in accordance with Section 242 of the Act. International Financial Reporting Standards The Group has applied International Financial Reporting Standards (IFRS) from 1st January 2004, with the exception of the standards relating to financial instruments and insurance contracts which are applied only with effect from 1st January 2005. Therefore the impacts of adopting IAS 32, IAS 39 and IFRS 4 are not included in the 2004 comparatives in accordance with IFRS 1 and financial instruments and insurance contracts are accounted for under UK GAAP in 2004. The results for 2005 are therefore not entirely comparable to those for 2004 in affected areas. For a fuller disclosure of the transitional impacts of IFRS, please refer to the 2005 Annual Report, which contains re-measurement and reclassification reconciliations in the Notes to the Accounts. A summary of the Group's significant accounting policies can also be found in the 2005 Annual Report. The financial information in this announcement has been prepared in accordance with these accounting policies. Dashes have been used to indicate where changes in policy cause an item to be not applicable and where there is no amount to report. Business analysis of profit before tax net of restatements Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m UK Banking 2,455 (82) (173) 2,200 2,086 -------- -------- -------- -------- -------- UK Retail Banking 1,027 (35) 48 1,040 1,002 UK Business Banking 1,428 (47) (221) 1,160 1,084 -------- -------- -------- -------- -------- Barclays Capital 1,272 (33) 192 1,431 1,142 Barclays Global Investors 542 (2) - 540 336 Wealth Management 172 (6) - 166 108 Wealth Management - closed life assurance activities (6) (1) - (7) (53) Barclaycard 687 (47) - 640 830 International Retail and Commercial Banking 690 (18) (39) 633 288 -------- -------- -------- -------- -------- International Retail and Commercial Banking - ex Absa 355 (20) - 335 288 International Retail and Commercial Banking - Absa1,2 335 2 (39) 298 - -------- -------- -------- -------- -------- Head office functions and other operations (532) 189 20 (323) (157) -------- -------- -------- -------- -------- Profit before tax 5,280 - - 5,280 4,580 -------- -------- -------- -------- -------- Post-tax return on average shareholders' equity 21.1% 21.1% 21.7% Cost:income ratio3 61% 61% 61% Cost:net income ratio4 67% 67% 66% 1 Period from 27th July until 31st December 2005. 2 In 2005, International Retail and Commercial Banking - Absa bore an internal charge equivalent to Barclays cost of funding the acquisition of the business. The net impact of this policy in 2005 was similar to that reflected in this document, resulting in a modest change in internal cost of funding relative to that experienced by other businesses. 3 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 4 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. UK Banking Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 3,990 (82) (164) 3,744 3,348 Net fee and commission income 1,776 - (56) 1,720 1,855 -------- -------- -------- -------- -------- Net trading income - - - - - Net investment income 31 - (5) 26 - -------- -------- -------- -------- -------- Principal transactions 31 - (5) 26 - Net premiums from insurance contracts 280 - - 280 249 Other income 26 - 7 33 43 -------- -------- -------- -------- -------- Total income 6,103 (82) (218) 5,803 5,495 Net claims and benefits on insurance contracts (58) - - (58) (46) -------- -------- -------- -------- -------- Total income net of insurance claims 6,045 (82) (218) 5,745 5,449 Impairment charge and other credit provisions (344) - 17 (327) (188) -------- -------- -------- -------- -------- Net income 5,701 (82) (201) 5,418 5,261 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (3,240) - 28 (3,212) (3,220) Amortisation of intangible assets (3) - - (3) (2) -------- -------- -------- -------- -------- Operating expenses (3,243) - 28 (3,215) (3,222) Share of post-tax results of associates and joint ventures (3) - - (3) 5 Profit on disposal of associates and joint ventures - - - - 42 -------- -------- -------- -------- -------- Profit before tax 2,455 (82) (173) 2,200 2,086 -------- -------- -------- -------- -------- Cost:income ratio1 54% 56% 59% Cost:net income ratio2 57% 59% 61% Return on average economic capital 33% 33% 35% Loans and advances to customers Â£129.1bn Â£118.2bn Â£106.7bn Customer accounts Â£133.6bn Â£129.7bn Â£111.1bn Staff numbers 39,900 39,800 41,700 Total assets Â£141.2bn Â£130.3bn Â£114.9bn Risk weighted assets Â£94.2bn Â£79.9bn Â£80.5bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. UK Retail Banking Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 2,174 (35) 69 2,208 2,107 Net fee and commission income 1,112 - 19 1,131 1,149 -------- -------- -------- -------- -------- Net trading income - - - - - Net investment income 9 - - 9 - -------- -------- -------- -------- -------- Principal transactions 9 - - 9 - Net premiums from insurance contracts 280 - - 280 249 Other income 17 - (1) 16 29 -------- -------- -------- -------- -------- Total income 3,592 (35) 87 3,644 3,534 Net claims and benefits on insurance contracts (58) - - (58) (46) -------- -------- -------- -------- -------- Total income net of insurance claims 3,534 (35) 87 3,586 3,488 Impairment charge and other credit provisions (142) - (8) (150) (69) -------- -------- -------- -------- -------- Net income 3,392 (35) 79 3,436 3,419 Operating expenses (2,359) - (31) (2,390) (2,461) Share of post-tax results of associates and joint ventures (6) - - (6) 2 Profit on disposal of associates and joint ventures - - - - 42 -------- -------- -------- -------- -------- Profit before tax 1,027 (35) 48 1,040 1,002 -------- -------- -------- -------- -------- Cost:income ratio1 67% 67% 71% Cost:net income ratio2 70% 70% 72% Return on average economic capital 34% 35% 32% Loans and advances to customers Â£63.6bn Â£64.8bn Â£66.7bn Customer accounts Â£77.6bn Â£78.8bn Â£73.6bn Staff numbers 31,900 32,000 34,500 Total assets Â£69.2bn Â£70.4bn Â£72.7bn Risk weighted assets Â£32.3bn Â£32.8bn Â£38.2bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. UK Business Banking Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 1,816 (47) (233) 1,536 1,241 Net fee and commission income 664 - (75) 589 706 -------- -------- -------- -------- -------- Net trading income - - - - - Net investment income 22 - (5) 17 - -------- -------- -------- -------- -------- Principal transactions 22 - (5) 17 - Other income 9 - 8 17 14 -------- -------- -------- -------- -------- Total income 2,511 (47) (305) 2,159 1,961 Impairment charge and other credit provisions (202) - 25 (177) (119) -------- -------- -------- -------- -------- Net income 2,309 (47) (280) 1,982 1,842 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (881) - 59 (822) (759) Amortisation of intangible assets (3) - - (3) (2) -------- -------- -------- -------- -------- Operating expenses (884) - 59 (825) (761) Share of post-tax results of associates and joint ventures 3 - - 3 3 -------- -------- -------- -------- -------- Profit before tax 1,428 (47) (221) 1,160 1,084 -------- -------- -------- -------- -------- Cost:income ratio1 35% 38% 39% Cost:net income ratio2 38% 42% 41% Return on average economic capital 32% 31% 37% Loans and advances to customers Â£65.5bn Â£53.4bn Â£40.0bn Customer accounts Â£56.0bn Â£50.9bn Â£37.5bn Staff numbers 8,000 7,800 7,200 Total assets Â£72.0bn Â£59.9bn Â£42.2bn Risk weighted assets Â£61.9bn Â£47.1bn Â£42.3bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Barclays Capital Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 926 (33) 172 1,065 1,068 Net fee and commission income 724 - 52 776 670 -------- -------- -------- -------- -------- Net trading income 2,194 - 37 2,231 1,463 Net investment income 401 - 12 413 302 -------- -------- -------- -------- -------- Principal transactions 2,595 - 49 2,644 1,765 Other income 25 - (5) 20 15 -------- -------- -------- -------- -------- Total income 4,270 (33) 268 4,505 3,518 Impairment charge and other credit provisions (103) - (8) (111) (106) -------- -------- -------- -------- -------- Net income 4,167 (33) 260 4,394 3,412 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (2,894) - (67) (2,961) (2,270) Amortisation of intangible assets (1) - (1) (2) - -------- -------- -------- -------- -------- Operating expenses (2,895) - (68) (2,963) (2,270) -------- -------- -------- -------- -------- Profit before tax 1,272 (33) 192 1,431 1,142 -------- -------- -------- -------- -------- Cost:income ratio1 68% 66% 65% Cost:net income ratio2 69% 67% 67% Return on average economic capital 34% 34% 34% Average net income per member of staff ('000) Â£496 Â£498 Â£490 Staff numbers 9,000 9,900 7,900 Total assets Â£581.9bn Â£601.2bn Â£353.2bn Risk weighted assets Â£96.1bn Â£116.7bn Â£90.1bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Barclays Global Investors Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 17 (2) - 15 5 Net fee and commission income 1,297 - - 1,297 882 -------- -------- -------- -------- -------- Net trading income 2 - - 2 3 Net investment income 4 - - 4 3 -------- -------- -------- -------- -------- Principal transactions 6 - - 6 6 Other income - - - - - -------- -------- -------- -------- -------- Total income 1,320 (2) - 1,318 893 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (775) - - (775) (555) Amortisation of intangible assets (4) - - (4) (1) -------- -------- -------- -------- -------- Operating expenses (779) - - (779) (556) Share of post-tax results of associates and joint ventures 1 - - 1 (2) Profit on disposal of associates and joint ventures - - - - 1 -------- -------- -------- -------- -------- Profit before tax 542 (2) - 540 336 -------- -------- -------- -------- -------- Cost:income ratio1 59% 59% 62% Return on average economic capital 248% 248% 166% Average income per member of staff ('000) 629 Â£628 Â£464 Staff numbers 2,300 2,300 1,900 Total assets Â£80.9bn Â£80.9bn Â£1.0bn Risk weighted assets Â£1.7bn Â£1.5bn Â£1.2bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. Wealth Management Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 335 (6) - 329 301 Net fee and commission income 589 - - 589 529 -------- -------- -------- -------- -------- Net trading income - - - - - Net investment income 5 - - 5 - -------- -------- -------- -------- -------- Principal transactions 5 - - 5 - Other income (1) - - (1) 7 -------- -------- -------- -------- -------- Total income 928 (6) - 922 837 Impairment charge and other credit provisions (2) - - (2) 1 -------- -------- -------- -------- -------- Net income 926 (6) - 920 838 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (752) - - (752) (729) Amortisation of intangible assets (2) - - (2) (1) -------- -------- -------- -------- -------- Operating expenses (754) - - (754) (730) -------- -------- -------- -------- -------- Profit before tax 172 (6) - 166 108 -------- -------- -------- -------- -------- Cost:income ratio1 81% 82% 87% Cost:net income ratio2 81% 82% 87% Return on average economic capital 38% 38% 31% Loans and advances to customers Â£4.7bn Â£4.7bn Â£4.1bn Customer accounts Â£23.1bn Â£23.1bn Â£21.3bn Staff numbers 7,200 7,200 7,200 Total assets Â£6.1bn Â£6.1bn Â£5.6bn Risk weighted assets Â£4.5bn Â£4.1bn Â£4.0bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Wealth Management - closed life assurance activities Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest expense (13) (1) - (14) (54) Net fee and commission income 44 - - 44 - -------- -------- -------- -------- -------- Net trading income - - - - - Net investment income 259 - - 259 596 -------- -------- -------- -------- -------- Principal transactions 259 - - 259 596 Net premiums from insurance contracts 195 - - 195 362 Other income 11 - - 11 4 -------- -------- -------- -------- -------- Total income 496 (1) - 495 908 Net claims and benefits on insurance contracts (375) - - (375) (818) -------- -------- -------- -------- -------- Total income net of insurance claims 121 (1) - 120 90 Operating expenses (127) - - (127) (143) -------- -------- -------- -------- -------- Loss before tax (6) (1) - (7) (53) -------- -------- -------- -------- -------- Return on average economic capital (3)% (3)% (53)% Total assets Â£7.3bn Â£7.3bn Â£6.4bn Barclaycard Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 1,773 (47) - 1,726 1,587 Net fee and commission income 972 - - 972 790 Net premiums from insurance contracts 24 - - 24 22 -------- -------- -------- -------- -------- Total income 2,769 (47) - 2,722 2,399 Net claims and benefits on insurance contracts (7) - - (7) (5) -------- -------- -------- -------- -------- Total income net of insurance claims 2,762 (47) - 2,715 2,394 Impairment charge and other credit provisions (1,098) - - (1,098) (761) -------- -------- -------- -------- -------- Net income 1,664 (47) - 1,617 1,633 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (961) - - (961) (804) Amortisation of intangible assets (17) - - (17) (3) -------- -------- -------- -------- -------- Operating expenses (978) - - (978) (807) Share of post-tax results of associates and joint ventures 1 - - 1 4 -------- -------- -------- -------- -------- Profit before tax 687 (47) - 640 830 -------- -------- -------- -------- -------- Cost:income ratio1 35% 36% 34% Cost:net income ratio2 59% 60% 49% Return on average economic capital 16% 16% 24% Loans and advances to customers Â£24.0bn Â£24.0bn Â£22.3bn Staff numbers 7,800 7,800 6,700 Total assets Â£25.8bn Â£25.8bn Â£23.4bn Risk weighted assets Â£20.4bn Â£21.8bn Â£20.2bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Banking Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 1,096 (18) (28) 1,050 529 Net fee and commission income 711 - (6) 705 288 -------- -------- -------- -------- -------- Net trading income 40 - (37) 3 - Net investment 150 - (7) 143 135 income -------- -------- -------- -------- -------- Principal transactions 190 - (44) 146 135 Net premiums from insurance 227 - - 227 300 contracts Other income 62 - (2) 60 25 -------- -------- -------- -------- -------- Total income 2,286 (18) (80) 2,188 1,277 Net claims and benefits on insurance contracts (205) - - (205) (390) -------- -------- -------- -------- -------- Total income net of insurance claims 2,081 (18) (80) 1,983 887 Impairment charge and other credit provisions (33) - 1 (32) (31) -------- -------- -------- -------- -------- Net income 2,048 (18) (79) 1,951 856 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (1,356) - 39 (1,317) (616) Amortisation of intangible assets (48) - 1 (47) (1) -------- -------- -------- -------- -------- Operating expenses (1,404) - 40 (1,364) (617) Share of post-tax results of associates and joint ventures 46 - - 46 49 -------- -------- -------- -------- -------- Profit before tax 690 (18) (39) 633 288 -------- -------- -------- -------- -------- Cost:income ratio1 67% 69% 70% Cost:net income ratio2 69% 70% 72% Return on average economic capital 23% 23% 21% Loans and advances to customers Â£54.3bn Â£49.3bn Â£20.7bn Customer accounts Â£33.4bn Â£22.6bn Â£10.1bn Staff numbers 46,200 45,400 12,100 Total assets Â£73.6bn Â£63.6bn Â£28.5bn Risk weighted assets Â£50.1bn Â£41.2bn Â£19.3bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Banking - excluding Absa Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest income 582 (20) - 562 529 Net fee and commission income 377 - - 377 288 -------- -------- -------- -------- -------- Net trading income 31 - - 31 - Net investment income 88 - - 88 135 -------- -------- -------- -------- -------- Principal transactions 119 - - 119 135 Net premiums from insurance contracts 129 - - 129 300 Other income 23 - - 23 25 -------- -------- -------- -------- -------- Total income 1,230 (20) - 1,210 1,277 Net claims and benefits on insurance contracts (161) - - (161) (390) -------- -------- -------- -------- -------- Total income net of insurance claims 1,069 (20) - 1,049 887 Impairment charge and other credit provisions (13) - - (13) (31) -------- -------- -------- -------- -------- Net income 1,056 (20) - 1,036 856 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (734) - - (734) (616) Amortisation of intangible assets (6) - - (6) (1) -------- -------- -------- -------- -------- Operating expenses (740) - - (740) (617) Share of post-tax results of associates and joint ventures 39 - - 39 49 -------- -------- -------- -------- -------- Profit before tax 355 (20) - 335 288 -------- -------- -------- -------- -------- Cost:income ratio1 69% 71% 70% Cost:net income ratio2 70% 71% 72% Return on average economic capital 20% 20% 21% Loans and advances to customers Â£25.4bn Â£25.4bn Â£20.7bn Customer accounts Â£10.4bn Â£10.4bn Â£10.1bn Staff numbers 12,700 12,700 12,100 Total assets Â£34.2bn Â£34.2bn Â£28.5bn Risk weighted assets Â£21.6bn Â£20.4bn Â£19.3bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Banking - Absa1 Changes to internal Group 2005 as cost of structure 2005 published funding2 changes restated Â£m Â£m Â£m Â£m Net interest income 514 2 (28) 488 Net fee and commission income 334 - (6) 328 -------- -------- -------- -------- Net trading income 9 - (37) (28) Net investment income 62 - (7) 55 -------- -------- -------- -------- Principal transactions 71 - (44) 27 Net premiums from insurance contracts 98 - - 98 Other income 39 - (2) 37 -------- -------- -------- -------- Total income 1,056 2 (80) 978 Net claims and benefits on insurance contracts (44) - - (44) -------- -------- -------- -------- Total income net of insurance claims 1,012 2 (80) 934 Impairment charge and other credit provisions (20) - 1 (19) -------- -------- -------- -------- Net income 992 2 (79) 915 -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (622) - 39 (583) Amortisation of intangible assets (42) - 1 (41) -------- -------- -------- -------- Operating expenses (664) - 40 (624) -------- -------- -------- -------- Share of post-tax results of associates and joint ventures 7 - - 7 -------- -------- -------- -------- Profit before tax 335 2 (39) 298 -------- -------- -------- -------- Cost:income ratio3 66% 67% Cost:net income ratio4 67% 68% Return on average economic capital 33% 36% Loans and advances to customers Â£28.9bn Â£23.9bn Customer accounts Â£23.0bn Â£12.2bn Staff numbers 33,500 32,700 Total assets Â£39.4bn Â£29.4bn Risk weighted assets Â£28.4bn Â£20.8bn 1 Period from 27th July until 31st December 2005. 2 In 2005, International Retail and Commercial Banking - Absa bore an internal charge equivalent to Barclays cost of funding the acquisition of the business. The net impact of this policy in 2005 was similar to that reflected in this document, resulting in a modest change in internal cost of funding relative to that experienced by other businesses. 3 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 4 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Head office functions and other operations Changes to internal Group 2005 as cost of structure 2005 2004 published funding changes restated restated Â£m Â£m Â£m Â£m Â£m Net interest (expense)/ income (49) 189 20 160 49 Net fee and commission expense (408) - 10 (398) (167) -------- -------- -------- -------- -------- Net trading income 85 - - 85 21 Net investment income 8 - - 8 (9) -------- -------- -------- -------- -------- Principal transactions 93 - - 93 12 Net premiums from insurance contracts 146 - - 146 109 Other income 24 - - 24 37 -------- -------- -------- -------- -------- Total income (194) 189 30 25 40 Impairment release/ (charge) and other credit provisions 9 - (10) (1) (8) -------- -------- -------- -------- -------- Net loss/ (income) (185) 189 20 24 32 -------- -------- -------- -------- -------- Operating expenses excluding amortisation of intangible assets (343) - - (343) (177) Amortisation of intangible assets (4) - - (4) (14) -------- -------- -------- -------- -------- Operating expenses (347) - - (347) (191) -------- -------- -------- -------- -------- Profit on disposal of associates and joint ventures 2 -------- -------- -------- -------- -------- Loss before tax (532) 189 20 (323) (157) -------- -------- -------- -------- -------- Staff numbers 900 900 900 Total assets Â£7.7bn Â£9.3bn Â£5.1bn Risk weighted assets Â£2.2bn Â£4.0bn Â£3.3bn Risk weighted assets Group 2005 as Impact of structure 2005 2004 Published securitisation changes restated restated Â£m Â£m Â£m Â£m Â£m UK Banking 94,195 2,467 (16,733) 79,929 80,467 --------- --------- --------- --------- --------- UK Retail Banking 32,298 (684) 1,189 32,803 38,230 UK Business Banking 61,897 3,151 (17,922) 47,126 42,237 --------- --------- --------- --------- --------- Barclays Capital 96,095 (306) 20,888 116,677 90,078 Barclays Global Investors 1,659 (203) - 1,456 1,230 Wealth Management 4,467 (406) - 4,061 4,018 Wealth - - - - - Management - closed life assurance activities Barclaycard 20,438 1,314 - 21,752 20,188 --------- --------- --------- --------- --------- International Retail and Commercial Banking 50,071 (2,866) (5,977) 41,228 19,319 --------- --------- --------- --------- --------- International Retail and Commercial Banking - ex Absa 21,637 (1,243) - 20,394 19,319 --------- --------- --------- --------- --------- International Retail and Commercial Banking - 28,434 (1,623) (5,977) 20,834 - Absa --------- --------- --------- --------- --------- Head office functions and other operations 2,223 - 1,822 4,045 3,301 --------- --------- --------- --------- --------- Risk weighted assets 269,148 - - 269,148 218,601 --------- --------- --------- --------- --------- Business analysis of profit before tax net of restatements Half-year ended --------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m UK Banking 2,200 1,062 1,138 -------- -------- -------- UK Retail Banking 1,040 492 548 UK Business Banking 1,160 570 590 -------- -------- -------- Barclays Capital 1,431 681 750 Barclays Global Investors 540 299 241 Wealth Management 166 82 84 Wealth Management - closed life assurance (7) (4) (3) activities Barclaycard 640 294 346 International Retail and Commercial Banking 633 459 174 -------- -------- -------- International Retail and Commercial Banking - ex Absa 335 161 174 International Retail and Commercial Banking - Absa1 298 298 - -------- -------- -------- Head office functions and other operations (323) (283) (40) -------- -------- -------- Profit before tax 5,280 2,590 2,690 -------- -------- -------- 1 Period from 27th July until 31st December 2005. UK Banking Half-year ended ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 3,744 1,960 1,784 Net fee and commission income 1,720 879 841 -------- -------- -------- Net trading income - 2 (2) Net investment income 26 9 17 -------- -------- -------- Principal transactions 26 11 15 Net premiums from insurance contracts 280 139 141 Other income 33 13 20 -------- -------- -------- Total income 5,803 3,002 2,801 Net claims and benefits on insurance contracts (58) (25) (33) -------- -------- -------- Total income net of insurance claims 5,745 2,977 2,768 Impairment charge and other credit provisions (327) (188) (139) -------- -------- -------- Net income 5,418 2,789 2,629 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (3,212) (1,728) (1,484) Amortisation of intangible assets (3) (2) (1) -------- -------- -------- Operating expenses (3,215) (1,730) (1,485) Share of post-tax results of associates and joint ventures (3) 3 (6) -------- -------- -------- Profit before tax 2,200 1,062 1,138 -------- -------- -------- Cost:income ratio1 56% 58% 54% Cost:net income ratio2 59% 62% 57% Return on average economic capital 33% 33% 33% Loans and advances to customers Â£118.2bn Â£117.1bn Customer accounts Â£129.7bn Â£126.8bn Staff numbers 39,800 40,600 Total assets Â£130.3bn Â£129.1bn Risk weighted assets Â£79.9bn Â£83.6bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. UK Retail Banking Half-year ended ---------------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 2,208 1,158 1,050 Net fee and commission income 1,131 572 559 -------- -------- -------- Net trading income - - - Net investment income 9 - 9 -------- -------- -------- Principal transactions 9 - 9 Net premiums from insurance contracts 280 139 141 Other income 16 4 12 -------- -------- -------- Total income 3,644 1,873 1,771 Net claims and benefits on insurance contracts (58) (25) (33) -------- -------- -------- Total income net of insurance claims 3,586 1,848 1,738 Impairment charge and other credit provisions (150) (75) (75) -------- -------- -------- Net income 3,436 1,773 1,663 Operating expenses (2,390) (1,282) (1,108) Share of post-tax results of associates and joint ventures (6) 1 (7) -------- -------- -------- Profit before tax 1,040 492 548 -------- -------- -------- Cost:income ratio1 67% 69% 64% Cost:net income ratio2 70% 72% 67% Return on average economic capital 35% 37% 33% Loans and advances to customers Â£64.8bn Â£66.0bn Customer accounts Â£78.8bn Â£75.4bn Staff numbers 32,000 33,000 Total assets Â£70.4bn Â£71.5bn Risk weighted assets Â£32.8bn Â£37.1bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. UK Business Banking Half-year ended ---------------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 1,536 802 734 Net fee and commission income 589 307 282 -------- -------- -------- Net trading income - 2 (2) Net investment income 17 9 8 -------- -------- -------- Principal transactions 17 11 6 Other income 17 9 8 -------- -------- -------- Total income 2,159 1,129 1,030 Impairment charge and other credit provisions (177) (113) (64) -------- -------- -------- Net income 1,982 1,016 966 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (822) (446) (376) Amortisation of intangible assets (3) (2) (1) -------- -------- -------- Operating expenses (825) (448) (377) Share of post-tax results of associates and joint ventures 3 2 1 -------- -------- -------- Profit before tax 1,160 570 590 -------- -------- -------- Cost:income ratio1 38% 40% 37% Cost:net income ratio2 42% 44% 39% Return on average economic capital 31% 30% 33% Loans and advances to customers Â£53.4bn Â£51.1bn Customer accounts Â£50.9bn Â£51.4bn Staff numbers 7,800 7,600 Total assets Â£59.9bn Â£57.6bn Risk weighted assets Â£47.1bn Â£46.5bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Barclays Capital Half-year ended ---------------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 1,065 540 525 Net fee and commission income 776 403 373 -------- -------- -------- Net trading income 2,231 1,116 1,115 Net investment income 413 253 160 -------- -------- -------- Principal transactions 2,644 1,369 1,275 Other income 20 12 8 -------- -------- -------- Total income 4,505 2,324 2,181 Impairment charge and other credit provisions (111) (59) (52) -------- -------- -------- Net income 4,394 2,265 2,129 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (2,961) (1,583) (1,378) Amortisation of intangible assets (2) (1) (1) -------- -------- -------- Operating expenses (2,963) (1,584) (1,379) -------- -------- -------- Profit before tax 1,431 681 750 -------- -------- -------- Cost:income ratio1 66% 68% 63% Cost:net income ratio2 67% 70% 65% Return on average economic capital 34% 30% 38% Average net income per member of staff ('000) Â£498 Â£242 Â£259 Staff numbers 9,900 8,400 Total assets Â£601.2bn Â£573.1bn Risk weighted assets Â£116.7bn Â£107.2bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Barclays Global Investors Half-year ended ------------------------ 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 15 9 6 Net fee and commission income 1,297 727 570 -------- -------- -------- Net trading income 2 - 2 Net investment income 4 - 4 -------- -------- -------- Principal transactions 6 - 6 Other income - - - -------- -------- -------- Total income 1,318 736 582 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (775) (435) (340) Amortisation of intangible assets (4) (2) (2) -------- -------- -------- Operating expenses (779) (437) (342) Share of post-tax results of associates and joint ventures 1 - 1 Profit on disposal of associates and joint ventures - - - -------- -------- -------- Profit before tax 540 299 241 -------- -------- -------- Cost:income ratio1 59% 59% 59% Return on average economic capital 248% 282% 214% Average income per member of staff ('000) Â£628 Â£330 Â£298 Staff numbers 2,300 2,100 Total assets Â£80.9bn Â£68.9bn Risk weighted assets Â£1.5bn Â£1.4bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. Wealth Management Half-year ended ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 329 169 160 Net fee and commission income 589 306 283 -------- -------- -------- Net trading income - - - Net investment income 5 - 5 -------- -------- -------- Principal transactions 5 - 5 Other income (1) - (1) -------- -------- -------- Total income 922 475 447 Impairment charge and other credit provisions (2) (1) (1) -------- -------- -------- Net income 920 474 446 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (752) (391) (361) Amortisation of intangible assets (2) (1) (1) -------- -------- -------- Operating expenses (754) (392) (362) -------- -------- -------- Profit before tax 166 82 84 -------- -------- -------- Cost:income ratio1 82% 83% 81% Cost:net income ratio2 82% 83% 81% Return on average economic capital 38% 42% 35% Loans and advances to customers Â£4.7bn Â£4.4bn Customer accounts Â£23.1bn Â£22.5bn Staff numbers 7,200 7,200 Total assets Â£6.1bn Â£5.8bn Risk weighted assets Â£4.1bn Â£4.5bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Wealth Management - closed life Half-year ended assurance activities ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest (expense)/income (14) 2 (16) Net fee and commission income 44 26 18 -------- -------- -------- Net trading income - - - Net investment income 259 144 115 -------- -------- -------- Principal transactions 259 144 115 Net premiums from insurance contracts 195 95 100 Other income 11 10 1 -------- -------- -------- Total income 495 277 218 Net claims and benefits on insurance contracts (375) (208) (167) -------- -------- -------- Total income net of insurance claims 120 69 51 Operating expenses (127) (73) (54) -------- -------- -------- Loss before tax (7) (4) (3) -------- -------- -------- Return on average economic capital (3)% 11% (18)% Total assets Â£7.3bn Â£6.7bn Barclaycard Half-year ended ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 1,726 896 830 Net fee and commission income 972 518 454 Net premiums from insurance contracts 24 14 10 -------- -------- -------- Total income 2,722 1,428 1,294 Net claims and benefits on insurance contracts (7) (5) (2) -------- -------- -------- Total income net of insurance claims 2,715 1,423 1,292 Impairment charge and other credit provisions (1,098) (590) (508) -------- -------- -------- Net income 1,617 833 784 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (961) (531) (430) Amortisation of intangible assets (17) (8) (9) -------- -------- -------- Operating expenses (978) (539) (439) Share of post-tax results of associates and joint ventures 1 - 1 -------- -------- -------- Profit before tax 640 294 346 -------- -------- -------- Cost:income ratio1 36% 38% 34% Cost:net income ratio2 60% 65% 56% Return on average economic capital 16% 14% 18% Loans and advances to customers Â£24.0bn Â£23.1bn Staff numbers 7,800 7,200 Total assets Â£25.8bn Â£24.2bn Risk weighted assets Â£21.8bn Â£21.3bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Half-year ended Banking ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 1,050 776 274 Net fee and commission income 705 534 171 -------- -------- -------- Net trading income 3 (3) 6 Net investment income 143 76 67 -------- -------- -------- Principal transactions 146 73 73 Net premiums from insurance contracts 227 167 60 Other income 60 46 14 -------- -------- -------- Total income 2,188 1,596 592 Net claims and benefits on insurance contracts (205) (120) (85) -------- -------- -------- Total income net of insurance claims 1,983 1,476 507 Impairment charge and other credit provisions (32) (24) (8) -------- -------- -------- Net income 1,951 1,452 499 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (1,317) (974) (343) Amortisation of intangible assets (47) (45) (2) -------- -------- -------- Operating expenses (1,364) (1,019) (345) Share of post-tax results of associates and joint ventures 46 26 20 -------- -------- -------- Profit before tax 633 459 174 -------- -------- -------- Cost:income ratio1 69% 69% 68% Cost:net income ratio2 70% 70% 69% Return on average economic capital 23% 24% 22% Loans and advances to customers Â£49.3bn Â£21.7bn Customer accounts Â£22.6bn Â£9.6bn Staff numbers 45,400 12,400 Total assets Â£63.6bn Â£30.0bn Risk weighted assets Â£41.2bn Â£18.9bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Half-year ended Banking - excluding Absa ----------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest income 562 288 274 Net fee and commission income 377 206 171 -------- -------- -------- Net trading income 31 25 6 Net investment income 88 21 67 -------- -------- -------- Principal transactions 119 46 73 Net premiums from insurance contracts 129 69 60 Other income 23 9 14 -------- -------- -------- Total income 1,210 618 592 Net claims and benefits on insurance contracts (161) (76) (85) -------- -------- -------- Total income net of insurance claims 1,049 542 507 Impairment charge and other credit provisions (13) (5) (8) -------- -------- -------- Net income 1,036 537 499 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (734) (391) (343) Amortisation of intangible assets (6) (4) (2) -------- -------- -------- Operating expenses (740) (395) (345) Share of post-tax results of associates and joint ventures 39 19 20 -------- -------- -------- Profit before tax 335 161 174 -------- -------- -------- Cost:income ratio1 71% 73% 68% Cost:net income ratio2 71% 74% 69% Return on average economic capital 20% 17% 22% Loans and advances to customers Â£25.4bn Â£21.7bn Customer accounts Â£10.4bn Â£9.6bn Staff numbers 12,700 12,400 Total assets Â£34.2bn Â£30.0bn Risk weighted assets Â£20.4bn Â£18.9bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. International Retail and Commercial Banking - Absa Period from 27th July until 31st December 2005 Â£m Net interest income 488 Net fee and commission income 328 -------- Net trading income (28) Net investment income 55 -------- Principal transactions 27 Net premiums from insurance contracts 98 Other income 37 -------- Total income 978 Net claims and benefits on insurance contracts (44) -------- Total income net of insurance claims 934 Impairment charge and other credit provisions (19) -------- Net income 915 -------- Operating expenses excluding amortisation of intangible assets (583) Amortisation of intangible assets (41) -------- Operating expenses (624) Share of post-tax results of associates and joint ventures 7 -------- Profit before tax 298 -------- Cost:income ratio1 67% Cost:net income ratio2 68% Return on average economic capital 36% Loans and advances to customers Â£23.9bn Customer accounts Â£12.2bn Staff numbers 32,700 Total assets Â£29.4bn Risk weighted assets Â£20.8bn 1 The cost:income ratio is defined as operating expenses compared to total income net of insurance claims. 2 The cost:net income ratio is defined as operating expenses compared to total income net of insurance claims, less impairment charges. Head office functions and Half-year ended other operations ---------------------------- 2005 31.12.05 30.06.05 Â£m Â£m Â£m Net interest (expense)/income 160 23 137 Net fee and commission expense (398) (228) (170) -------- -------- -------- Net trading income 85 30 55 Net investment income 8 3 5 -------- -------- -------- Principal transactions 93 33 60 Net premiums from insurance contracts 146 86 60 Other income 24 17 7 -------- -------- -------- Total income 25 (69) 94 Impairment release/(charge) and other credit provisions (1) (3) 2 -------- -------- -------- Net income/(loss) 24 (72) 96 -------- -------- -------- Operating expenses excluding amortisation of intangible assets (343) (208) (135) Amortisation of intangible assets (4) (3) (1) -------- -------- -------- Operating expenses (347) (211) (136) -------- -------- -------- Loss before tax (323) (283) (40) -------- -------- -------- Staff numbers 900 900 Total assets Â£9.3bn Â£12.4bn Risk weighted assets Â£4.0bn Â£5.6bn Restated business margins Margin Full-year Half-year Full-year 31.12.05 30.06.05 31.12.04 % % % UK Retail Banking assets 0.92 0.83 0.78 UK Retail Banking liabilities 1.99 2.01 2.14 UK Business Banking assets 1.87 1.87 1.56 UK Business Banking liabilities 1.46 1.54 1.58 Wealth Management assets 0.99 0.98 0.97 Wealth Management liabilities 1.04 1.06 1.07 Barclaycard assets 6.59 6.48 6.84 ------- ------- ------- Barclaycard assets - cards 7.96 7.56 7.34 Barclaycard assets - loans 4.96 5.15 6.27 ------- ------- ------- International Retail and Commercial Banking assets-ex Absa 1.51 1.42 1.75 International Retail and Commercial Banking liabilities-ex Absa 1.49 1.54 1.43 International Retail and Commercial Banking assets-Absa1 1.97 - - International Retail and Commercial Banking liabilities-Absa1 1.89 - - Average balances Full-year Half-year Full-year 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Retail Banking assets 66,165 66,511 65,539 UK Retail Banking liabilities 73,473 72,072 69,653 UK Business Banking assets 43,985 42,059 36,764 UK Business Banking liabilities 40,545 39,234 37,442 Wealth Management assets 4,395 4,229 3,580 Wealth Management liabilities 23,430 22,603 21,141 Barclaycard assets 24,246 23,759 21,609 ------- ------- ------- Barclaycard assets - cards 13,180 13,126 11,560 Barclaycard assets - loans 11,066 10,633 10,049 ------- ------- ------- International Retail and Commercial Banking assets-ex Absa 22,889 22,327 17,884 International Retail and Commercial Banking liabilities-ex Absa 9,540 9,633 8,987 International Retail and Commercial Banking assets-Absa1 24,134 - - International Retail and Commercial Banking liabilities-Absa1 16,791 - - Business assets total average balance 185,814 158,885 145,376 Business liabilities total average balance 163,779 143,542 137,223 1 This reflects the five month post acquisition period on an annualised basis. Restated business net interest income Full-year Half-year Full-year 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Retail Banking assets 609 273 510 UK Retail Banking liabilities 1,462 718 1,493 UK Business Banking assets 823 390 574 UK Business Banking liabilities 592 300 590 Wealth Management assets 43 21 35 Wealth Management liabilities 244 120 227 Barclaycard assets 1,598 770 1,478 ------- ------- ------- Barclaycard assets - cards 1,049 496 848 Barclaycard assets - loans 549 274 630 ------- ------- ------- International Retail and Commercial Banking assets-ex Absa 345 159 314 International Retail and Commercial Banking liabilities-ex Absa 142 74 128 International Retail and Commercial Banking assets-Absa1 206 - - International Retail and Commercial Banking liabilities-Absa1 138 - - Business assets total net interest income 3,624 1,613 2,911 Business liabilities total net interest income 2,578 1,212 2,438 ------- ------- ------- Business net interest income 6,202 2,825 5,349 ------- ------- ------- Restated reconciliation of business net interest income to Group net interest income Full-year Half-year Full-year 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m Business net interest income 6,202 2,825 5,349 Other: - Barclays Capital 1,065 525 1,068 - Barclays Global Investors 15 6 5 - Other 793 344 411 ------- ------- ------- Group net interest income 8,075 3,700 6,833 ------- ------- ------- Business net interest income is derived from the interest rate earned on average assets or paid on average liabilities relative to the average Bank of England base rate, local equivalents for international businesses or the rate managed by the bank using derivatives. The margin is expressed as annualised business interest income over the relevant average balance. Asset and liability margins cannot be added together as they are relative to the average Bank of England base rate, local equivalent for international businesses or the rate managed by the bank using derivatives. Average balances are calculated on daily averages for most UK banking operations and monthly averages elsewhere. Within the reconciliation of Group net interest income, there is an amount captured as Other. This relates to: benefit of capital, including the restatement of Reserve Capital Instruments and other capital instruments; Head office functions and other operations; net funding on non customer assets and liabilities; and Wealth Management - closed life assurance activities. 1 Period from 27th July until 31st December 2005. Restated Risk Tendency 2005 2005 2004 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Banking 430 400 360 -------- -------- -------- UK Retail Banking 180 170 160 UK Business Banking 250 230 200 -------- -------- -------- Barclays Capital 110 80 75 Wealth Management 5 5 5 Barclaycard 1,100 980 860 International Retail and Commercial Banking 175 75 65 -------- -------- -------- International Retail and Commercial Banking - ex Absa 75 75 65 International Retail and Commercial Banking - Absa 100 - - -------- -------- -------- Head office functions and other operations1 25 35 30 -------- -------- -------- Risk Tendency 1,845 1,575 1,395 -------- -------- -------- 1 Comprises businesses in transition. Restated total assets 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Banking 130,304 129,093 114,934 -------- -------- -------- UK Retail Banking 70,389 71,476 72,768 UK Business Banking 59,915 57,617 42,166 -------- -------- -------- Barclays Capital 601,193 573,131 353,246 Barclays Global Investors 80,900 68,877 968 Wealth Management 6,094 5,843 5,616 Wealth Management - closed life assurance activities 7,276 6,653 6,425 Barclaycard 25,771 24,166 23,367 International Retail and Commercial Banking 63,556 29,985 28,505 -------- -------- -------- International Retail and Commercial Banking - ex Absa 34,195 29,985 28,505 International Retail and Commercial Banking - Absa 29,361 - - -------- -------- -------- Head office functions and other operations 9,263 12,375 5,120 -------- -------- -------- Total assets 924,357 850,123 538,181 -------- -------- -------- Restated risk weighted assets 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Banking 79,929 83,554 80,467 -------- -------- -------- UK Retail Banking 32,803 37,129 38,230 UK Business Banking 47,126 46,425 42,237 -------- -------- -------- Barclays Capital 116,677 107,201 90,078 Barclays Global Investors 1,456 1,408 1,230 Wealth Management 4,061 4,457 4,018 Wealth Management - closed life assurance activities - - - Barclaycard 21,752 21,335 20,188 International Retail and Commercial Banking 41,228 18,900 19,319 -------- -------- -------- International Retail and Commercial Banking - ex Absa 20,394 18,900 19,319 International Retail and Commercial Banking - Absa 20,834 - - -------- -------- -------- Head office functions and other operations 4,045 5,551 3,301 -------- -------- -------- Risk weighted assets 269,148 242,406 218,601 -------- -------- -------- Restated economic capital demand1 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Banking 4,950 4,800 4,350 -------- -------- -------- UK Retail Banking 2,350 2,300 2,250 UK Business Banking 2,600 2,500 2,100 -------- -------- -------- Barclays Capital2 2,900 2,700 2,350 Barclays Global Investors 150 150 150 Wealth Management 400 400 300 Wealth Management - closed life assurance activities 50 50 100 Barclaycard 2,800 2,650 2,450 International Retail and Commercial Banking 1,450 1,100 1,000 -------- -------- -------- International Retail and Commercial Banking - ex Absa 1,150 1,100 1,000 International Retail and Commercial Banking - Absa2 300 - - -------- -------- -------- Head office functions and other operations3 300 250 250 -------- -------- -------- Business unit economic capital 13,000 12,100 10,950 Capital held at Group centre4 1,050 1,600 1,400 -------- -------- -------- Economic capital requirement (excluding goodwill) 14,050 13,700 12,350 Average historic goodwill and intangible assets5 6,450 5,800 5,600 -------- -------- -------- Total economic capital requirement6 20,500 19,500 17,950 -------- -------- -------- 1 Year-end economic capital is calculated using a five point average over the year. For the half-year a three point average is used. 2 Average economic capital demand for Absa relates to 5 months of 2005. As at 31st December 2005 the capital demand amounted to Â£950m. 3 Includes businesses in transition and capital for Head office and central support functions. 4 The Group's practice is to maintain an appropriate level of excess capital, held at Group centre, which is not allocated to business units. This variance arises as a result of capital management timing and includes capital held to cover pension contribution risk. 5 Average goodwill relates to purchased goodwill and intangible assets from business acquisitions. Absa goodwill is included for 5 months of 2005. As at 31st December 2005 Absa goodwill and intangibles amounted to Â£1.8bn and total goodwill and intangibles was Â£7.9bn. 6 Total period-end economic capital requirement as at 31st December 2005 stood at Â£21,850m (30th June 2005: Â£20,750m; 31st December 2004: Â£18,700m). Restated economic profit generated by Full-year Half-year Full-year business 31.12.05 30.06.05 31.12.04 Â£m Â£m Â£m UK Banking 1,130 553 1,086 -------- -------- -------- UK Retail Banking 586 270 508 UK Business Banking 544 283 578 -------- -------- -------- Barclays Capital 706 383 587 Barclays Global Investors 299 129 195 Wealth Management 109 49 70 Wealth Management - closed life assurance activities (7) (8) (77) Barclaycard 183 115 350 International Retail and Commercial Banking 229 70 111 -------- -------- -------- International Retail and Commercial Banking - ex Absa 115 70 111 International Retail and Commercial Banking - Absa1 114 - - -------- -------- -------- Head office functions and other operations (364) (17) (140) -------- -------- -------- 2,285 1,274 2,182 Historic goodwill (615) (275) (533) Variance to average shareholders' funds (excluding minority interest) 82 5 (81) -------- -------- -------- Economic profit 1,752 1,004 1,568 -------- -------- -------- 1 Period from 17th July to 31st December 2005. Restated staff numbers 31.12.05 30.06.05 31.12.04 UK Banking 39,800 40,600 41,700 -------- -------- -------- UK Retail Banking 32,000 33,000 34,500 UK Business Banking 7,800 7,600 7,200 -------- -------- -------- Barclays Capital 9,900 8,400 7,900 Barclays Global Investors 2,300 2,100 1,900 Wealth Management 7,200 7,200 7,200 Barclaycard 7,800 7,200 6,700 International Retail and Commercial Banking 45,400 12,400 12,100 -------- -------- -------- International Retail and Commercial Banking - ex Absa 12,700 12,400 12,100 International Retail and Commercial Banking - Absa 32,700 - - -------- -------- -------- Head office functions and other operations 900 900 900 -------- -------- -------- Total Group permanent and fixed term contract staff worldwide 113,300 78,800 78,400 -------- -------- -------- Agency staff worldwide 7,000 4,300 4,300 -------- -------- -------- Total including agency staff 120,300 83,100 82,700 -------- -------- -------- - ENDS - This information is provided by RNS The company news service from the London Stock Exchange

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