19th Feb 2008 14:00
Barclays Bank PLC19 February 2008 Barclays Bank PLC Results Announcement 31st December 2007 Barclays Bank PLC 19th February 2008 BARCLAYS BANK PLC Barclays Bank PLC and its subsidiary undertakings (taken together, the "Group")is a major global financial services provider engaged in retail and commercialbanking, credit cards, investment banking, wealth management and investmentmanagement services. The whole of the issued ordinary share capital of BarclaysBank PLC is beneficially owned by Barclays PLC, which is the ultimate holdingcompany of the Group. Barclays PLC, one of the largest financial servicescompanies in the world by market capitalisation has a wide public shareholderbase and its ordinary shares are listed on the London, Tokyo and New York StockExchanges (the latter in the form of American Depositary Shares evidenced byAmerican Depositary Receipts). The Directors report the following results of the Barclays Bank PLC Group forthe year ended 31st December 2007: CONSOLIDATED INCOME STATEMENT 2007 2006 £m £mContinuing operations -------- --------Interest income 25,308 21,805Interest expense (15,707) (12,662) -------- --------Net interest income 9,601 9,143 -------- --------Fee and commission income 8,682 8,005Fee and commission expense (970) (828) -------- --------Net fee and commission income 7,712 7,177 -------- --------Net trading income 3,759 3,632Net investment income 1,216 962 -------- --------Principal transactions 4,975 4,594Net premiums from insurance contracts 1,011 1,060Other income 224 257 -------- --------Total income 23,523 22,231Net claims and benefits incurred on insurance (492) (575)contracts -------- --------Total income net of insurance claims 23,031 21,656Impairment charges and other credit provisions (2,795) (2,154) -------- --------Net income 20,236 19,502 -------- --------Staff costs (8,405) (8,169) Administration and general expenses (4,141) (3,914) Depreciation of property, plant and equipment (467) (455)Amortisation of intangible assets (186) (136) -------- --------Operating expenses (13,199) (12,674)Share of post-tax results of associates and joint 42 46venturesProfit on disposal of subsidiaries, associates and 28 323joint ventures -------- --------Profit before tax 7,107 7,197Tax (1,981) (1,941) -------- --------Profit after tax 5,126 5,256 -------- -------- Profit attributable to minority interests 377 342Profit attributable to equity holders 4,749 4,914 -------- -------- 5,126 5,256 -------- -------- The information in this announcement, which was approved by the Board ofDirectors on 18th February 2008, does not comprise statutory accounts for theyear ended 31st December 2007 or 31st December 2006, within the meaning ofSection 240 of the Companies Act 1985 (the 'Act'). Statutory accounts for theyear ended 31st December 2007 will be delivered to the Registrar of Companiesin accordance with Section 242 of the Act. Statutory accounts for the year ended31st December 2006 have been delivered to the Registrar of Companies and theGroup's auditors have reported on those accounts and have given an unqualifiedreport which does not contain a statement under Section 237(2) or (3) of theAct. CONSOLIDATED BALANCE SHEET 2007 2006 £m £mAssetsCash and balances at central banks 5,801 6,795Items in the course of collection from other banks 1,836 2,408Trading portfolio assets 193,726 177,884Financial assets designated at fair value: - held on own account 56,629 31,799 - held in respect of linked liabilities to customers under investment contracts 90,851 82,798Derivative financial instruments 248,088 138,353Loans and advances to banks 40,120 30,926Loans and advances to customers 345,398 282,300Available for sale financial investments 43,256 51,952Reverse repurchase agreements and cash collateral on securities borrowed 183,075 174,090Other assets 5,153 5,850Current tax assets 518 557Investments in associates and joint ventures 377 228Goodwill 7,014 6,092Intangible assets 1,282 1,215Property, plant and equipment 2,996 2,492Deferred tax assets 1,463 764 ----------- ---------Total assets 1,227,583 996,503 ----------- --------- CONSOLIDATED BALANCE SHEET 2007 2006 £m £mLiabilitiesDeposits from banks 90,546 79,562Items in the course of collection due to other 1,792 2,221banksCustomer accounts 295,849 256,754Trading portfolio liabilities 65,402 71,874Financial liabilities designated at fair value 74,489 53,987Liabilities to customers under investment 92,639 84,637contractsDerivative financial instruments 248,288 140,697Debt securities in issue 120,228 111,137Repurchase agreements and cash collateral on 169,429 136,956securities lentOther liabilities 10,514 10,337Current tax liabilities 1,311 1,020Insurance contract liabilities, including 3,903 3,878unit-linked liabilitiesSubordinated liabilities 18,150 13,786Deferred tax liabilities 855 282Provisions 830 462Retirement benefit liabilities 1,537 1,807 ----------- ---------Total liabilities 1,195,762 969,397 ----------- --------- Shareholders' equityCalled up share capital 2,382 2,363Share premium account 10,751 9,452Other reserves (170) (484)Other shareholders' funds 2,687 2,534Retained earnings 14,222 11,556 ----------- ---------Shareholders' equity excluding minority interests 29,872 25,421Minority interests 1,949 1,685 ----------- ---------Total shareholders' equity 31,821 27,106 ----------- --------- ----------- ---------Total liabilities and shareholders' equity 1,227,583 996,503 ----------- --------- CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE 2007 2006 £m £mNet movements in available for sale reserve (93) (120)Net movements in cash flow hedging reserve 359 (487)Net movements in currency translation reserve 54 (781)Tax 54 253Other movements 22 25 -------- --------Amounts included directly in equity 396 (1,110)Profit after tax 5,126 5,256 -------- --------Total recognised income and expense 5,522 4,146 -------- -------- Attributable to:Equity holders 5,135 4,132Minority interests 387 14 -------- -------- 5,522 4,146 -------- -------- The consolidated statement of recognised income and expense reflects all itemsof income and expense for the period, including items taken directly to equity.Movements in individual reserves are shown including amounts which relate tominority interests; the impact of such amounts is then reflected in the amountattributable to such interests. Movements in individual reserves are also shownon a pre-tax basis with any related tax recorded on the separate tax line. The available for sale reserve reflects gains or losses arising from the changein fair value of available for sale financial assets except for items recordedin the income statement which are: impairment losses; gains or lossestransferred to the income statement due to fair value hedge accounting; andforeign exchange gains or losses on monetary items such as debt securities. Whenan available for sale asset is impaired or derecognised, the cumulative gain orloss previously recognised in the available for sale reserve is transferred tothe income statement. The transfer of net gains to the income statement,primarily on disposal of assets, was partially offset by the recognition of netunrealised gains from changes in fair value. Cash flow hedging aims to minimise exposure to variability in cash flows that isattributable to a particular risk associated with a recognised asset orliability or a highly probable forecast transaction that could affect profit orloss. The portion of the gain or loss on the hedging instrument that is deemedto be an effective hedge is recognised in the cash flow hedging reserve. Thegains and losses deferred in this reserve will be transferred to the incomestatement in the same period or periods during which the hedged item isrecognised in the income statement. The movement in 2007 reflects the transferof net losses to the income statement and the recognition of net unrealisedgains from changes in the fair value of the hedging instruments. Exchange differences arising on the net investments in foreign operations andeffective hedges of net investments are recognised in the currency translationreserve and transferred to the income statement on the disposal of the netinvestment. The movement in 2007 primarily reflects the impact of changes in thevalue of the Euro on net investments partially offset by the impact of changesin the value of the US Dollar on net investments and other currency movements onnet investments which are hedged on a post-tax basis. The Euro and US Dollar netinvestments are economically hedged through Euro-denominated and USDollar-denominated preference share capital, which is not revalued foraccounting purposes. CONSOLIDATED CASH FLOW STATEMENT 2007 2006 £m £mNet cash flow from operating activities (8,764) 10,057Net cash flow from investing activities 10,016 (1,177)Net cash flow from financing activities 2,078 565Effects of exchange rate on cash and cash (654) 552equivalents -------- --------Net (decrease)/increase in cash and cash 2,676 9,997equivalentsCash and cash equivalents at beginning of 30,402 20,405period -------- --------Cash and cash equivalents at end of period 33,078 30,402 -------- -------- NOTES 1. Authorised share capital Ordinary shares The authorised ordinary share capital of Barclays Bank PLC at 31st December 2007was 3,000 million (2006: 3,000 million) ordinary shares of £1 each. Preference shares 2007 2006 '000 '000Authorised share capital - shares of £1 each 1 1Authorised share capital - shares of £100 each 400 400Authorised share capital - shares of US$0.25 each 150,000 80,000Authorised share capital - shares of US$100 each 400 400Authorised share capital - shares of €100 each 400 400 2. Issued share capital Ordinary shares The issued ordinary share capital of Barclays Bank PLC at 31st December 2007comprised 2,336 million (2006: 2,329 million) ordinary shares of £1 each. The whole of the issued ordinary share capital of Barclays Bank PLC isbeneficially owned by Barclays PLC. Preference shares The issued preference share capital of Barclays Bank PLC at 31st December 2007comprised £46m (2006: £34m) of preference shares of the following denominations: 2007 2006 '000 '000Issued and fully paid shares of £1 each 1 1Issued and fully paid shares of £100 each 75 75Issued and fully paid shares of US$0.25 each 131,000 30,000Issued and fully paid shares of US$100 each 100 100Issued and fully paid shares of €100 each 240 240 3. Staff numbers On a full time equivalent basis the total permanent and fixed term contractstaff at 31st December 2007 was 134,900 (2006: 122,600). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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