24th May 2007 07:02
Barclays PLC24 May 2007 24th May 2007 BARCLAYS PLC TRADING UPDATE "Barclays has had a strong start to the year. We continued to deliverdouble-digit profit growth on top of the outstanding performance in 2006 andmade further significant investments across our businesses." John Varley, Group Chief Executive Barclays profit before tax for the first quarter of 2007 was 15 per cent aheadof the first quarter of 2006. Excluding gains from the sale and leaseback ofproperty, profit before tax grew 10 per cent. Performance was particularlystrong at Barclays Capital, which had its best quarter ever. Business Commentary Global Retail and Commercial Banking UK Retail Banking delivered good growth in profit before tax. Growth in netinterest income, reflecting a strong deposit performance, was moderated by lowernet fees and commissions and other income. Market share of net new mortgagescontinued to improve. In UK Business Banking strong growth in profit before taxwas driven by continued good income growth. We are on track to report a furthertwo percentage point cost:income ratio improvement in UK Banking in 2007. Profit before tax at Barclaycard improved on the run rate of the second half of2006: income and expenses were broadly stable and the impairment charge waslower. Barclaycard US is on track to be profitable in 2007. Barclaycardcompleted the Monument credit card portfolio sale on 4th April 2007. International Retail and Commercial Banking - excluding Absa profit grewstrongly, excluding the contribution of FirstCaribbean International Bank, whichwas sold at the end of 2006. Income growth was strong and we continued to investin the distribution network and infrastructure. International Retail andCommercial Banking - Absa delivered a very strong increase in profit before taxin Rand terms, driven by very strong growth in loans and good growth indeposits. Profit before tax in Sterling declined slightly owing to Randdepreciation. Investment Banking and Investment Management At Barclays Capital very strong profit growth was driven by broadly based incomecontributions across asset classes and regions, with excellent results incommodities, equities and mortgage products. The rate of profit growth washigher than the rate of growth in average DVaR. The acquisition of EquiFirstcompleted on 30th March 2007. Barclays Global Investors delivered good growth in US Dollar income and profit.Profit before tax in Sterling saw a slight decline due to the depreciation ofthe US Dollar. The acquisition of Indexchange Investment AG completed on 8thFebruary 2007. Barclays Wealth delivered strong profit growth, driven by increased client fundsand greater transaction volumes. Investment continued in client facing staff andinfrastructure to drive future performance. Capital At 31st March 2007 Barclays Tier 1 Capital ratio was broadly in line with itstargeted ratio of 7.25%. Barclays completed its second parallel run under Basel II and reaffirms itsexpectation of a modest reduction in capital requirements. - ENDS - Notes 1. Key trends set out above, unless stated otherwise, relate to the three months to 31st March 2007, and are compared to the corresponding three months of 2006.2. Trends in income are expressed after the deduction of 'net claims and benefits on insurance contracts'.3. There have been a number of changes to the Group structure and reporting for 2007. The businesses impacted are: UK Retail Banking, Barclaycard, International Retail and Commercial Banking and Barclays Wealth. There is no change to Group profit. Details of this restatement will be published ahead of the Interim results. The above narrative refers to the Group structure prior to this restatement. Trading Update conference call and webcast details The Group Finance Director's briefing will be available as a live conferencecall at 09.00 (BST) on Thursday, 24th May 2007. The telephone number for UKcallers is 0845 359 0170 (+44 (0) 20 3003 2648 for all other locations), withthe access code 'Barclays Trading Update'. The briefing will also be availableas a live audio webcast on the Investor Relations website at:www.investorrelations.barclays.com and a recording will be posted on the websitelater. Timetable 2007 Interim Results Announcement Thursday, 2nd August 2007Ex Dividend Date Wednesday, 15th August 2007Dividend Record Date Friday, 17th August 2007Dividend Payment Date Monday, 1st October 2007 All dates are provisional and subject to change. For further information please contact Investor Relations Media RelationsMark Merson/James S Johnson Stephen Whitehead/Alistair Smith+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6060/6132 Forward Looking Statements This document contains certain forward-looking statements within the meaning ofSection 21E of the US Securities Exchange Act of 1934, as amended, and Section27A of the US Securities Act of 1933, as amended, with respect to certain of theGroup's plans and its current goals and expectations relating to its futurefinancial condition and performance. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. Forward-looking statements sometimes use words such as 'aim','anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal','believe', or other words of similar meaning. Examples of forward-lookingstatements include, among others, statements regarding the Group's futurefinancial position, income growth, impairment charges, business strategy,projected levels of growth in the banking and financial markets, projectedcosts, estimates of capital expenditures, and plans and objectives for futureoperations. By their nature, forward-looking statements involve risk anduncertainty because they relate to future events and circumstances, including,but not limited to, the further development of standards and interpretationsunder International Financial Reporting Standards (IFRS) applicable to past,current and future periods, evolving practices with regard to the interpretationand application of standards under IFRS, as well as UK domestic and globaleconomic and business conditions, market related risks such as changes ininterest rates and exchange rates, the policies and actions of governmental andregulatory authorities, changes in legislation, progress in the integration ofAbsa into the Group's business and the achievement of synergy targets related toAbsa, the outcome of pending and future litigation, the success of futureacquisitions and other strategic transactions and the impact of competition - anumber of which factors are beyond the Group's control. As a result, the Group'sactual future results may differ materially from the plans, goals, andexpectations set forth in the Group's forward-looking statements. Any forward-looking statements made by or on behalf of Barclays speak only as ofthe date they are made. Barclays does not undertake to update forward-lookingstatements to reflect any changes in Barclays expectations with regard theretoor any changes in events, conditions or circumstances on which any suchstatement is based. The reader should, however, consult any additionaldisclosures that Barclays has made or may make in documents it has filed or mayfile with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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