Barclays’ Global Retail Banking (GRB) unit has
posted profit before tax of £1.83bn ($2.95bn) for the 12 months to
31 December, marginally ahead of the £1.82bn reported the previous
year.
At group level, Barclays reported a profit
before tax for fiscal 2010 of £6.06bn, up 32% year-on-year.
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Profit after tax rose 30% to £4.55bn.
Impairment charges fell by 30% to £5.67bn,
giving a loan loss rate of 118 basis points (2009: 156 basis
points).
Total assets increased 8% to £1.49trn.
In the UK, Barclays’ retail unit reported
profit before tax of £989m.
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By GlobalDataAlthough this represented a 31% increase
year-on-year (2009: £710m), it was the units second-lowest profit
of the past seven years (see table).
UK retail net interest income rose by 11.3% in
fiscal 2010 to £3.16bn; less positive was a 3.4% fall in net fees
and commission to £1.25bn.
Barclays reported strong retail performances
in Africa – profit before tax rose 81% to £188m – and at its
Barclaycard cards unit.
Barclaycard profit before tax rose 9% to £791m
(2009: £727m), largely as a result of lower impairment charges.
In South Africa, Barclays’ Absa unit increased
profit before tax by 20% to £616m.
But Barclays’ GRB unit in Western Europe
plunged to a loss of £139m compared with a profit before tax of
£280m in 2009.
Income at the unit fell 12% as a result of
margin pressure while operating expenses rose by 16%, partly as a
result of Barclays continuing to grow its Western European branch
network.
In 2010, Barclays’ branch network in Western
Europe increased by 8% or 101 outlets to 1,363 units.
By contrast, Barclays’ UK branch network
contracted, for the 10th successive year (see
table).
Barclays ended 2010 with a UK network of 1,658
branches, a net reduction of 40 outlets year-on-year.
Since 2000, when it operated 2,129 branches,
Barclays has closed more than 1 in 5 of its UK outlets.
By contrast, Spanish rival Santander’s network
continues to grow. In 2010, its UK branch numbers increased from
1,322 units to 1,416.
That figure will rise further when Santander
rebrands 318 outlets it agreed to acquire from Royal Bank of
Scotland last year.
Santander reported an 11% increase in UK pre-tax
profits for fiscal 2010 to £2.3bn.
