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Business Performance1 |
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Barclays is an international financial services group engaged primarily in banking, investment banking and asset management. In terms of market capitalisation, Barclays is one of the largest financial services groups in the UK. The Group also operates in many other countries and is a leading provider of global services to multinational corporations and financial institutions in the world’s main financial centres.
Personal Financial Services
Personal Financial Services provides a wide range of products and services to 14 million personal customers throughout the UK, including current accounts, savings, mortgages, consumer loans and general insurance. These are available to customers through integrated channels comprising the branch network, automated teller machines, telephone banking and online banking.
Within Personal Financial Services, the principal goal has been to do more business with more customers. This has been achieved by building broader and deeper relationships with the existing customer base as well as attracting new customers. There has also been a focus on increasing risk adjusted returns and continuing to strengthen the quality of the lending portfolio.
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| Performance highlights |
2003
£m |
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2002
£m |
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Operating income |
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3,109 |
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2,919 |
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Goodwill amortisation |
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(151 |
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(151 |
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Other operating expenses |
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(1,839 |
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(1,714 |
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Operating expenses |
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(1,990 |
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(1,865 |
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Provisions for bad and doubtful debts |
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(303 |
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(334 |
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Operating profit |
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816 |
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720 |
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Profit from associated undertakings |
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6 |
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3 |
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Exceptional items |
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(1 |
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(11 |
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Profit on ordinary activities before tax |
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821 |
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712 |
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Personal Financial Services operating profit increased 13% to £816m (2002: £720m). Operating income was up 7% at £3,109m (2002: £2,919m). Operating expenses rose 7% to £1,990m (2002: £1,865m), with almost two-thirds of the increase attributable to the pensions charge and higher strategic investment spend. Provisions decreased 9% to £303m (2002: £334m) as both the portfolio and risk processes improved. Stronger lending and deposit volumes and active margin management helped drive income momentum. This was reinforced by broadly based operating income growth across the main businesses: general insurance up 32%; consumer finance up 15%; mortgages up 10%; and current accounts and savings up 2%. Income from independent financial advice fell 28%. The market share of net new mortgage lending in the UK was 2% (2002: 9%). The interest spread on new mortgage business increased. The number of Openplan customers in the UK grew to 2.6 million. Barclays branded savings was one of the leaders in new business generation with average deposit balances rising 19%.
Note
1 In the Results Announcement 2003 the analysis of results by business excludes goodwill amortisation and exceptional items, and separately identifies restructuring costs.
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