| Barclays Capital | ||
|---|---|---|
| 2005 | 2004 | |
| £m | £m | |
| Total income | 4,270 | 3,375 |
| Impairment charge(c) | (103) | (102) |
| Operating expenses | (2,895) | (2,253) |
| Profit before tax | 1,272 | 1,020 |
Barclays Capital continued its very strong growth of recent years, with profit before tax in 2005 rising 25% to £1,272m (2004: £1,020m). Income growth of 27% was broadly based across products and geographies. The year also saw continued investment in building Barclays Capital's scale and diversity in terms of geography, products and people. As a result of investment and the profit performance, operating expenses grew 28%. Barclays uses ‘value at risk' as the primary mechanism for measuring market risk. We call this DVaR (Daily Value at Risk). In 2005, market risk was well controlled with DVaR falling 6% to £32m as a result of increased diversification.
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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