| Barclaycard | ||
| 2005 | 2004 | |
| £m | £m | |
| Total income (b) | 2,762 | 2,407 |
| Impairment charge(c) | (1,098) | (761) |
| Operating expenses | (978) | (807) |
| Associates and joint ventures(d) | 1 | 4 |
| Profit before tax | 687 | 843 |
Barclaycard profit before tax fell 19% to £687m (2004: £843m) driven by higher levels of impairment in the UK and continued investment in the International business. Income(b) growth of 15% reflected good performances by the UK cards and loans businesses and very strong international growth. Operating expenses rose 21%, reflecting continued heavy investment in the business, particularly internationally. Barclaycard US, formerly Juniper, grew strongly in line with plans, and cards in Spain and Germany performed strongly.
Notes
- Economic profit is defined in the Chairman's statement.
- Total income net of insurance claims.
- Includes other credit provisions.
- Share of post-tax results of associates and joint ventures (together with profit on disposal of associates and joint ventures, where relevant).
- Profit before tax.
- Operating expenses compared to total income net of insurance claims.
- Absa has changed its financial year-end to 31st December to conform with Barclays, the comparable period comprises unaudited results for the nine months ended 31st December 2004.
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