| International Retail and Commercial Banking | ||
| 2005 | 2004 | |
| £m | £m | |
| Total income (b) | 2,081 | 892 |
| Impairment charge(c) | (33) | (31) |
| Operating expenses | (1,404) | (617) |
| Associates and joint ventures(d) | 46 | 49 |
| Profit before tax | 690 | 293 |
International Retail and Commercial Banking (IRCB) was transformed by the acquisition of Absa. IRCB excluding Absa increased profit before tax 21% to £355m (2004: £293m). Income(b) growth of 20% reflected strong balance sheet growth in Europe and Africa. Operating expenses grew in line with income(b) as we accelerated the integration of Banco Zaragozano. Excluding integration costs, Barclays Spain increased profit before tax 25% to £156m (2004: £125m).
We completed the acquisition of a majority stake in Absa Group Limited in July 2005. Absa Group Limited reported 28% growth in profit(e) to R7,031m for the nine-month period to 31st December 2005(g). For the five month period of Barclays ownership, Absa contributed £335m to profit before tax and the performance of Absa is well ahead of the business plan that underpinned the acquisition.
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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