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The Group’s operating profit increased by 26% to £3,290m
(1999 £2,607m). The 2000 result is after accounting for
£232m of restructuring costs (1999 £344m) and a profit after
fair value amortisation of £64m reported by The Woolwich
from 25th October 2000. Earnings per share increased by
39% to 163.3p from 117.5p.
Retail Financial Services performed strongly with a 30%
increase in operating profit to £1,710m (1999 £1,312m).
Retail customers and Wealth Management profits rose 27%
and 22% to £1,124m and £522m respectively. The Woolwich’s
operating profit contribution was £64m for the last two
months of the year following the acquisition. Total costs
were held flat at £2,294m, excluding two months costs of
The Woolwich of £98m.
Barclaycard operating profit increased 4% to £418m (1999
£401m). Net interest income improved by 12% benefiting
from continued strong growth in average UK extended credit
balances. Net fees and commissions increased 9% as a result
of growth in UK transaction volumes.
Corporate Banking operating profit increased 13% to £1,070m
(1999 £947m). Net interest income rose by 6% reflecting
growth in average customer lending balances. Net fees and
commissions increased by 9% as a result of growing in lending
related fees. Costs excluding strategic investment fell by 6%.
Barclays Capital operating profit increased 30% to £403m
(1999 £311m) reflecting continued strong performances in
both the Rates and the Credit businesses. The growth in
profits was achieved despite difficult market conditions in
the second half of 2000.
Barclays Global Investors operating profit increased 51% to
£65m (1999 £43m) in a year of major investments and flat
or declining markets in most parts of the business. Total assets
under management grew to £550bn (1999 £486bn).
Total provisions for bad and doubtful debts rose by £196m, or
32%, to £817m, mainly as a result of higher levels of new and
increased provisions reflecting strong volume growth in Retail
Financial Services and Barclaycard.
The restructuring charge of £232m for 2000 primarily relates
to Retail Financial Services, Corporate Banking and Service
Provision. The staff cost charge of £171m is in respect of 4,800
job reductions, 2,700 of which were achieved in 2000.
Non-performing lendings increased by £768m of which
The Woolwich accounted for £592m. Potential problem
lendings increased by £0.4bn reflecting overseas exposures
held by both Barclays Capital and Corporate Banking.
Excluding the impact of The Woolwich, non-performing
lendings coverage has increased from 76.4% to 81.2% while
the coverage of total potential problem lendings has
marginally fallen from 60.0% to 58.1%.
The exceptional profit of £214m included a £186m profit
on the sale of the Dial business in June 2000 and £18m profit
on the sale of Barclays Property Investment in October 2000.
Shareholders’ funds increased by a net £4,687m before
favourable exchange differences resulting from shares issued
in respect of The Woolwich acquisition (£3,359m) and profit
retentions of £1,546m after allowing for a 24% increase
in dividends to £927m. A further £311m of buy-backs were
completed in the year. Risk weighted assets increased by
£31bn or 27% to £147bn of which £19bn (13%) related to The
Woolwich. The tier 1 ratio reduced from 7.5% to 7.2% and the
total risk asset ratio was 11.0% from 11.3% at the end of 1999.
Total assets increased by £61bn in 2000, and included £37bn
of assets and £4.1bn of goodwill in respect of The Woolwich.
In 1999, Group profit before tax increased by 30% to £2,455m.
The 1999 profit was after charging £344m for restructuring
and a £75m provision for the possible cost of redress to
personal pension customers. The 1998 profit was after
charging £76m in respect of the settlement of the Atlantic
litigation and £40m from the impact of taxation changes
arising under the Finance Act.
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