27th Nov 2007 07:01
Barclays PLC27 November 2007 27th November 2007 Barclays PLC Trading Update "The diversification of our profits in recent years, together with theinvestments we have made in businesses both inside and outside the UK, isserving us well in 2007. Our performance in the nine months to the end ofSeptember was supported by good underlying growth in Global Retail andCommercial Banking, and by resilience in Investment Banking and InvestmentManagement in the face of turbulent market conditions in the second half." John Varley, Group Chief Executive Business Commentary Global Retail and Commercial BankingIn UK Retail Banking we have delivered good growth in profit before tax afterexcluding the impact of settlements on overdraft fees from prior years,reflecting good growth in mortgages and customer deposits. Impairmentperformance in unsecured credit continued to improve and charges remainednegligible in mortgages. Barclays Commercial Bank (formerly UK Business Banking)also saw good growth in profit before tax. This was driven by good growth inincome, with expenses growing broadly in line with income and impairment risingat a slower rate than in the first half. UK Banking remains on course to achieveits targeted full year cost:income ratio improvement of two percentage points,excluding the impact of settlements on overdraft fees. Profit before tax at Barclaycard grew strongly, excluding the loss on theMonument credit card disposal in 2007 and property gains in 2006. Income andexpense trends were broadly in line with the first half of 2007 and impairmentcharges continued to improve. Barclaycard US performed well and is on track tobe profitable in 2007. Income growth in International Retail and Commercial Banking - excluding Absawas very strong. We continued to invest in the expansion of the distributionnetwork and in infrastructure. Good profit growth in Western Europe and EmergingMarkets was offset by the impact of the disposal of FirstCaribbean InternationalBank and property gains in 2006, and further investment in infrastructure.International Retail and Commercial Banking - Absa reported strong growth inprofit before tax in Rand terms, driven by very strong growth in loans and gooddeposit growth. There was a decline in profit before tax in Sterling due to Randdepreciation. Investment Banking and Investment ManagementWe provided a trading update in respect of the performance of Barclays Capitalfor the ten months ended 31st October 2007 on 15th November 2007. At Barclays Global Investors strong growth in income and profit before tax in USDollars translated into good growth in profit before tax in Sterling terms. Wecontinued to invest in people and infrastructure. Excellent profit growth at Barclays Wealth was driven by higher transactionalincome and strong inflows of client deposits and invested assets. We continuedto invest in client facing staff and related infrastructure to support futuregrowth. CapitalWe continue to buy back shares to neutralise the dilutive effect of shareissuance in August 2007. As at close of business 26th November 2007, we hadpurchased for cancellation 280m shares at an average price of 603p per share. Weexpect the year end Tier 1 ratio to be in line with our target of 7.25%.Barclays liquidity remains strong and we continue to see good inflows ofdeposits. 2007 outlookBarclays expects 2007 earnings per share to be broadly in line with the currentmarket consensus. - ENDS - Notes 1. Key trends in the income statement set out above, unless stated otherwise, relate to the nine months to 30th September 2007, and are compared to the corresponding nine months of 2006. Balance sheet references relate to 30th September 2007 and are compared to the balance sheet as at 31st December 2006. 2. Trends in income are expressed after the deduction of 'net claims and benefits on insurance contracts'. 3. UK Business Banking has been renamed Barclays Commercial Bank. 4. As at close of business 26th November 2007, the market consensus derived by Barclays Investor Relations for 2007 PBT was £7,099m and for 2007 earnings per share was 68.8p. Trading Update conference call and webcast detailsThe Group Finance Director's briefing will be available as a live conferencecall at 09.00 (GMT) on Tuesday, 27th November 2007. The telephone number for UKcallers is 0845 301 4070 (+44 (0) 20 8322 2723 for all other locations), withthe access code 'Barclays Results'. The briefing will also be available as alive audio webcast on the Investor Relations website at:www.investorrelations.barclays.com and a recording will be posted on the websitelater. Timetable2007 Preliminary Results Announcement Tuesday, 19th February 2008Ex Dividend Date Wednesday, 5th March 2008Dividend Record Date Friday, 7th March 20082008 Annual General Meeting Thursday, 24th April 2008Dividend Payment Date Friday 25th April 2008 All dates are provisional and subject to change. For further information please contact Investor Relations Media RelationsMark Merson/John McIvor Alistair Smith/Robin Tozer+44 (0) 20 7116 5752/2929 +44 (0) 20 7116 6132/6586 Forward Looking StatementsThis 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, UK domestic and global economic and business conditions, theeffects of continued volatility in credit markets, market related risks such aschanges in interest rates and exchange rates, the policies and actions ofgovernmental and regulatory authorities, changes in legislation, the furtherdevelopment of standards and interpretations under International FinancialReporting Standards (IFRS) applicable to past, current and future periods,evolving practices with regard to the interpretation and application ofstandards under IFRS, progress in the integration of Absa into the Group'sbusiness and the achievement of synergy targets related to Absa, the outcome ofpending and future litigation, the success of future acquisitions and otherstrategic transactions and the impact of competition - a number of which factorsare beyond the Group's control. As a result, the Group's actual future resultsmay differ materially from the plans, goals, and expectations set forth in theGroup'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:
Barclays