20th Feb 2007 14:00
Barclays Bank PLC20 February 2007 Barclays Bank PLC Results Announcement 31st December 2006 BARCLAYS BANK PLC Barclays PLC has a wide public shareholder base and its ordinary shares arelisted on the London Stock Exchange, the Tokyo Stock Exchange and the New YorkStock Exchange (in the form of American Depositary Shares evidenced by AmericanDepositary Receipts). Barclays PLC is the holding company of Barclays Bank PLCand is the beneficial owner of all the ordinary shares of Barclays Bank PLC.Barclays Bank PLC conducts banking activities, is the holding company for allother subsidiaries in the Barclays Group and issues debt securities andpreference shares. Therefore, with the exception of differences arising fromthe different ownership and equity structures of Barclays PLC and Barclays BankPLC, the consolidated financial statements of the groups headed by each parentcompanies are the same. BARCLAYS BANK PLC IS A WHOLLY OWNED SUBSIDIARY OF BARCLAYS PLC The Directors report the following results of the Barclays Bank PLC Group forthe year ended 31st December 2006: CONSOLIDATED INCOME STATEMENT 2006 2005 £m £mContinuing operations -------- --------Interest income 21,805 17,232Interest expense (12,662) (9,157) -------- --------Net interest income 9,143 8,075 -------- --------Fee and commission income 8,005 6,430Fee and commission expense (828) (725) -------- --------Net fee and commission income 7,177 5,705 -------- --------Net trading income 3,632 2,321Net investment income 962 858 -------- --------Principal transactions 4,594 3,179Net premiums from insurance contracts 1,060 872Other income 257 178 -------- --------Total income 22,231 18,009Net claims and benefits paid on insurance contracts (575) (645) -------- --------Total income net of insurance claims 21,656 17,364Impairment charges (2,154) (1,571) -------- --------Net income 19,502 15,793 -------- --------Staff costs (8,169) (6,318)Administration and general expenses (3,914) (3,768)Depreciation of property, plant and equipment (455) (362)Amortisation of intangible assets (136) (79) -------- --------Operating expenses (12,674) (10,527)Share of post-tax results of associates and jointventures 46 45Profit on disposal of subsidiaries, associates andjoint ventures 323 - -------- --------Profit before tax 7,197 5,311Tax (1,941) (1,439) -------- --------Profit after tax 5,256 3,872 -------- -------- Profit attributable to minority interests 342 177Profit attributable to equity holders 4,914 3,695 -------- -------- 5,256 3,872 -------- -------- The information in this announcement, which was approved by the Board ofDirectors on 19th February 2007, does not comprise statutory accounts within themeaning of Section 240 of the Companies Act 1985 (the 'Act'). Statutory accountswill be delivered to the Registrar of Companies in accordance with Section 242of the Act. CONSOLIDATED BALANCE SHEET As at 2006 2005 £m £mAssetsCash and balances at central banks 6,795 3,506Items in the course of collection from otherbanks 2,408 1,901Trading portfolio assets 177,884 155,730Financial assets designated at fair value: - held on own account 31,799 12,904 - held in respect of linked liabilities to customers under investment contracts 82,798 83,193Derivative financial instruments 138,353 136,823Loans and advances to banks 30,926 31,105Loans and advances to customers 282,300 268,896Available for sale financial investments 51,952 53,703Reverse repurchase agreements and cash collateral on securities borrowed 174,090 160,398Other assets 5,850 4,734Current tax assets 557 -Investments in associates and joint ventures 228 546Goodwill 6,092 6,022Intangible assets 1,215 1,269Property, plant and equipment 2,492 2,754Deferred tax assets 764 686 -------- --------Total assets 996,503 924,170 -------- -------- CONSOLIDATED BALANCE SHEET As at 2006 2005 £m £mLiabilitiesDeposits from banks 79,562 75,127Items in the course of collection due to otherbanks 2,221 2,341Customer accounts 256,754 238,684Trading portfolio liabilities 71,874 71,564Financial liabilities designated at fair value 53,987 33,385Liabilities to customers under investmentcontracts 84,637 85,201Derivative financial instruments 140,697 137,971Debt securities in issue 111,137 103,328Repurchase agreements and cash collateral onsecurities lent 136,956 121,178Other liabilities 10,337 11,131Current tax liabilities 1,020 747Insurance contract liabilities, includingunit-linked liabilities 3,878 3,767Subordinated liabilities 13,786 12,463Deferred tax liabilities 282 700Provisions 462 517Retirement benefit liabilities 1,807 1,823 -------- --------Total liabilities 969,397 899,927 -------- -------- Shareholders' equityCalled up share capital 2,363 2,348Share premium account 9,452 8,882Other reserves (484) 483Other shareholders' funds 2,534 2,490Retained earnings 11,556 8,462 -------- --------Shareholders' equity excluding minority interests 25,421 22,665Minority interests 1,685 1,578 -------- --------Total shareholders' equity 27,106 24,243 -------- -------- -------- --------Total liabilities and shareholders' equity 996,503 924,170 -------- -------- CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE 2006 2005 £m £mNet movements in available for sale reserve (120) (77)Net movements in cash flow hedging reserve (487) (119)Net movements in currency translation reserve (781) 300Tax 253 50Other movements 25 (102) -------- --------Amounts included directly in equity (1,110) 52Profit after tax 5,256 3,872 -------- --------Total recognised income and expense 4,146 3,924 -------- -------- Attributable to:Equity holders 4,132 3,659Minority interests 14 265 -------- -------- 4,146 3,924 -------- -------- The consolidated statement of recognised income and expense reflects all itemsof income and expense for the year, 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 gross 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 movement in 2006 reflects the transfer of net realisedgains partially offset by the transfer of impairment losses and the recognitionof net unrealised 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. Themovement in 2006 primarily reflects net unrealised losses from changes in thefair value of the hedging instruments. The gains and losses deferred in thisreserve will be transferred to the income statement in the same period orperiods during which the hedged item is recognised in the income statement. 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 the year primarily reflects the impact of changes inthe value of the Rand on the minority interest in Absa Group Limited and changesin the value of the US Dollar on net investments. The net investments areeconomically hedged through US Dollar-denominated preference share capital,which is not revalued for accounting purposes. CONSOLIDATED CASH FLOW STATEMENT 2006 2005 £m £mNet cash flow from operating activities 10,057 3,679Net cash flow from investing activities (1,177) (5,432)Net cash flow from financing activities 565 793Exchange loss/(gain) on foreign currency cash and cash equivalents 552 (237) --------- ---------Net increase/(decrease) in cash and cash equivalents 9,997 (1,197)Cash and cash equivalents at beginning of period 20,405 21,602 --------- ---------Cash and cash equivalents at end of period 30,402 20,405 --------- --------- In order to provide more relevance to users and to enhance the comparability ofits financial statement presentation, the Group has changed certainclassifications within the cash flow statement in 2006. Certain activities which were categorised as operating activities have beenreclassified as financing activities and investing activities. These changeshave increased net cash from operating activities by £14,147m in 2005, with acorresponding decrease in net cash used in investing activities of £111m anddecrease in net cash from financing activities of £14,036m. The amounts of cashand cash equivalents in 2005 have not been affected by the changes. NOTES 1. Authorised share capital Ordinary shares The authorised ordinary share capital of Barclays Bank PLC at 31st December 2006was 3,000 million (2005: 3,000 million) ordinary shares of £1 each. Preference shares 2006 2005 '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 80,000 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 2006comprised 2,329 million (2005: 2,318 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 2006comprised £34m (2005: £30m) of preference shares of the following denominations: 2006 2005 '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$100 each 100 100Issued and fully paid shares of €100 each 240 240Issued and fully paid shares of US$0.25 each 30,000 - 3. Staff numbers On a full time equivalent basis the total permanent and contract staff at 31stDecember 2006 was 122,600 (2005: 113,300). Additionally agency staff totalled9,100 (2005: 7,000). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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