29th Nov 2005 07:01
Barclays PLC29 November 2005 29th November 2005 BARCLAYS PLC TRADING UPDATE "Barclays continues to deliver strong profit growth. The contributions are wellspread by business line and we expect 2005 full year earnings per share to bebroadly in line with market consensus." John Varley, Group Chief Executive Individual Business Commentary UK Banking continued to perform well and is making significant progress towardsachieving its productivity targets. UK Business Banking performed strongly asbalance sheet growth continued to drive income. UK Retail Banking delivered goodprofit growth from a combination of a modest rise in revenues and strong costcontrol. Barclays Capital delivered very strong profit growth driven by higher clientrelated activity and increasing contributions from credit products, commoditiesand the US businesses. Operating expenses increased broadly in line with incomegrowth reflecting continued investment in the business and higher performancerelated costs. Barclays Global Investors continued its excellent performance reflecting goodnet new asset inflows in the active and iShares businesses and strong investmentresults. Operating expenses increased as a result of significant investment inthe business and performance related costs. Wealth Management delivered very strong growth, with income driven by higherassets under management, good growth in loans and deposits and higher clienttransaction volumes. Operating expenses increased modestly, with efficiencysavings offset by increased investment in the business and higher restructuringcosts. Barclaycard trends in the third quarter remained consistent with the first half.Income growth was good in UK cards and loans and very strong in Internationalcards. Average UK extended credit card balances remained broadly flat relativeto the first half whilst average UK loan balances continued to grow modestly.Operating expenses increased mainly as a result of the Juniper acquisition. Therate of growth in impairment charges for the nine months to end September wasconsistent with first half trends. Combined with continued investment in thebusiness, this more than offset the growth in income. International Retail and Commercial Banking performed strongly. Income wasdriven by strong balance growth in the European mortgage businesses, Africancorporate lending and a good performance by the Spanish funds business.Operating expenses increased in line with the rate of income growth reflectingcontinuing investment. Absa has reported strong results for the half year ended 30th September 2005.The performance was driven by good balance sheet growth, higher levels ofcustomer activity and the benign credit environment. Group Income Organic income growth was strong and broadly based. Business level net interest margins have remained broadly stable relative to thefirst half of 2005. Group Operating Expenses Organic operating expenses increased broadly in line with the rate of incomegrowth. The increase was primarily attributable to continued investment in theglobal product businesses, performance related expenses, the expansion ofInternational Retail and Commercial Banking and head office relocation costs. Risk Management Wholesale and corporate credit conditions remained steady and potential creditrisk loan balances were stable versus the first half position. Retail potentialcredit risk loan balances increased modestly in the third quarter. Delinquencylevels in UK cards continued to trend slightly higher and the rate of increasein impairment was consistent with the first half. UK consumer loans impairmentrose at a slower rate than UK cards. Mortgage impairment was negligible. Average DVaR in Barclays Capital remained consistent with the first half of2005. 2005 Outlook Barclays is expecting a rate of income growth for the full year broadly in linewith that achieved in the first half, with a similar rate of expense growth,excluding the impact of Absa. Organic cost growth in the second half of 2005will reflect continued expansion and investment in the business and higherlevels of marketing, information technology and performance related expenditure. We continue to expect overall impairment charges, excluding Absa, to beapproximately in line with the last published Risk Tendency. Barclays expects 2005 full year earnings per share to be broadly in line withmarket consensus. - ENDS - Notes 1. Key trends set out above, unless stated otherwise, relate to the nine months to 30th September 2005, and are compared to the corresponding nine months of 2004. 2. Trends in income are expressed after the deduction of 'net claims and benefits on insurance contracts'. 3. Individual business trends are reported excluding the impact of Absa. 4. Absa earnings will be consolidated into Barclays from 27th July 2005. The reported results for Absa in the Barclays accounts will include hedging and funding costs and a charge for the amortisation of intangible assets. Trading Update conference call and webcast details The Group Finance Director's briefing will be available as a live conferencecall at 09.00 (GMT) on Tuesday, 29th November 2005. The telephone number for UKcallers is 0845 301 4020 (+44 (0) 20 7663 4861 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.co.uk and a recording will be posted on thewebsite later. Timetable2005 Preliminary Results Announcement Tuesday, 21st February 2006Ex Dividend Date Wednesday, 1st March 2006Dividend Record Date Friday, 3rd March 20062006 Annual General Meeting Thursday, 27th April 2006Dividend Payment Date Friday, 28th April 20062006 Interim Results Announcement Thursday, 3rd August 2006 All dates are provisional and subject to change. For further information please contact Investor Relations Media RelationsMark Merson/James S Johnson Chris Tucker/Jo Thethi+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6223/6217 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 and uncertainty becausethey relate to future events and circumstances, including, but not limited to,the further development of standards and interpretations under IFRS applicableto past, current and future periods, evolving practices with regard to theinterpretation and application of standards under IFRS, as well as UK domesticand global economic and business conditions, market related risks such aschanges in interest rates and exchange rates, the policies and actions ofgovernmental and regulatory authorities, changes in legislation, the outcome ofpending and future litigation, and the impact of competition - a number of whichfactors are beyond the Group's control. As a result, the Group's actual futureresults may differ materially from the plans, goals, and expectations set forthin the Group's forward-looking statements. Any forward-looking statements madeby or on behalf of Barclays speak only as of the date they are made. Barclaysdoes not undertake to update forward-looking statements to reflect any changesin Barclays expectations with regard thereto or any changes in events,conditions or circumstances on which any such statement is based. The readershould, however, consult any additional disclosures that Barclays has made ormay make in documents it has filed or may file with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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