25th May 2006 07:01
Barclays PLC25 May 2006 25th May 2006 Barclays PLC Trading Update Continued Strong Momentum "Barclays performed very strongly in the first quarter. High levels of activitywith our customers and clients enabled us to deliver excellent profit growth. Wecontinue to benefit from our strategy of geographical and productdiversification. I look forward to another year of strong growth". John Varley, Group Chief Executive Barclays reports continued very strong profit momentum across the Group. Theperformance of UK Retail Banking continued to improve, and there has beenexcellent growth in Wholesale and Institutional and very strong growth inInternational Retail and Commercial Banking and Wealth Management. Cost growthwas driven by continued investment in organic development, performance relatedpay and the inclusion of Absa. As expected, impairment in Barclaycard in the UKcontinued to increase. Business Commentary UK Retail Banking income grew faster than the rate achieved for the full year2005, underpinned by improvements in customer service, product promotion andsales productivity. We are accelerating the pace of investment in restructuringand operational infrastructure in 2006 to bring forward further improvements inoperating efficiency and customer service. UK Business Banking performedsatisfactorily with continued strong growth in the balance sheet. We remain ontrack to report a 2% cost:income ratio improvement in UK Banking in 2006. Barclays Capital delivered excellent growth in both income and profit reflectingthe success of recent investment, particularly in currencies, commodities andequities. Our performance was at the top end of the comparable peer group.Market risk, as measured by average DVaR, remained slightly below the 2005 yearend level. Excellent income growth at Barclays Global Investors was driven by prior periodasset inflows and strong investment performance. We generated strong flows ofnet new assets across the business in the first quarter of 2006 and continued toinvest in product development and infrastructure to support the growth of thebusiness. Wealth Management delivered very strong income growth, driven by increases inclient funds and greater transaction volumes. We are accelerating investment inclient facing professionals and infrastructure to facilitate future growth. Last year's trends continued at Barclaycard; very strong income growth wasoffset by higher impairment charges in UK credit cards and consumer loans and byinvestment in the business. The rate of growth in impairment at Barclaycard wassimilar to the impairment trend for the full year 2005. International Retail and Commercial Banking maintained very strong underlyingmomentum across the business. Absa delivered profit growth ahead of plan andsynergies are beginning to be delivered. Capital The disposal of our stake in FirstCaribbean, announced on 13th March 2006, isexpected to complete in late 2006. In recognition of historically low yields on property, we have taken action torealise gains in part of our freehold property portfolio. These will ariseprincipally in UK Banking, where the gains are expected to be reinvested in thebusiness. Strong balance sheet growth and continued investment in the business resulted ina brisk rate of increase in risk weighted assets. Barclays continues to target ayear end Tier 1 capital ratio of about 7.25%. Outlook Based on current trends and market conditions, Barclays expects full year 2006income, impairment and expenses to be significantly ahead of the current marketconsensus, with the rate of income growth to be broadly in line with the rate ofexpense growth. - ENDS - Notes 1. Key trends set out above, unless stated otherwise, relate to the three months to 31st March 2006, and are compared to the corresponding three months of 2005. 2. Trends in income are expressed after the deduction of 'net claims and benefits on insurance contracts'. 3. Absa earnings are consolidated into Barclays from 27th July 2005. The reported results for Absa in the Barclays accounts 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 (BST) on Thursday, 25th May 2006. The telephone number for UKcallers is 0845 358 0087 (+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.com and a recording will be posted on the websitelater. Timetable 2006 Interim Results Announcement Thursday, 3rd August 2006Ex Dividend Date Wednesday, 16th August 2006Dividend Record Date Friday, 18th August 2006Dividend Payment Date Monday, 2nd October 2006 All dates are provisional and subject to change. For further information please contact Investor Relations Media Relations Mark 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 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, progress in theintegration of Absa into the Group's business and the achievement of synergytargets related to Absa, the outcome of pending and future litigation, and theimpact of competition - a number of which factors are beyond the Group'scontrol. As a result, the Group's actual future results may differ materiallyfrom the plans, goals, and expectations set forth in the Group's forward-lookingstatements. Any forward-looking statements made by or on behalf of Barclaysspeak only as of the date they are made. Barclays does not undertake to updateforward-looking statements to reflect any changes in Barclays expectations withregard thereto or any changes in events, conditions or circumstances on whichany such statement 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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