Barclays has posted a full year profit before tax of £5.88bn
($9.26bn) for the 12 months to 31 December, down only 3% from the
year ago period.
On an underlying basis, Barclays pre-tax profit dipped by only
2% to £5.59bn.
Barclays’ retail banking performance was hammered by losses in
Western Europe and over £1bn of provisions relating to redress for
Payment Protection Insurance (PPI) miss-selling.
Profit before tax at Barclays retail division fell by 25.2% to
£1.83bn. Stripping out the provisions for PPI redress and goodwill
impairments resulted in a 48% increase in underlying retail profit
before tax to £3.3bn.
Barclays retail highlights included a strong performance at its
UK unit. Profit before tax increased by 3.1% to £1.02bn.
Barclays UK retail banking adjusted profit
before tax improved 60% to £1.42bn.
Other UK retail highlights included:
- credit impairment charges decreased by 35%
- personal unsecured lending impairments improved
by 44% to £311m;
- total loans and advances to customers increased
by 5% to £121.2bn driven by growth in mortgage balances;
- gross new mortgage lending of £17.2bn (2010:
£16.9bn), although Barclays’ UK retail mortgages market share
slipped by 1 percentage point to 12%, and
- Total UK current account numbers increased by a
net 300,000 during 2011 to 11.9m.
Barclays continued its decade long policy of
shrinking the size of its UK branch network.
In 2011, Barclays shuttered a net 33 branches
in the UK, ending the year with 1,625 outlets. Barclays’ has now
axed almost one-in-four of its UK branch network since 2000 when
branch numbers exceeded 2,120.
Elsewhere, the growing importance of Barclays’
retail division in Africa was highlighted by continued branch
expansion and profits growth.
Barclays ended 2011 with 1,354 branches in
Africa, up a net 33 during the year.
African retail banking profit before tax
increased by 13.2% to £910m.
Less positive was a 4% fall in African
deposits during 2011 to £30.1bn.
European retail losses
Barclays posted a loss before tax of
£661m (2010: -£139m) at its European retail business
unit, having taken a hit of £427m relating to Spanish goodwill
impairments and restructuring charges of £189m.
European retail deposits fell sharply by 13%
to £16.4bn while Barclays’ drive to scale back its retail
operations in the region resulted in a 13% fall in its branch
network from 1,120 to 978 outlets.
Profit before tax at the credit card unit
Barclaycard fell by 29% to £561m during fiscal 2011.
On an underlying basis, Barclaycard profit
before tax soared by 53% to £1.21bn.
Barclays said that the UK-based Egg retail
card assets acquired from Citigroup and the MBNA corporate card
portfolio acquired during the first half of 2011 delivered
Other Barclaycard highlights included a 25%
fall in credit impairment charges to £1.26bn.
Group wide, Barclays’ cost-income ratio
remained flat year-on-year at 64% in fiscal 2011.
Barclays’ Core Tier 1 ratio increased by 20
basis points to 11.0%
Total assets increased by 4.9% in fiscal 2011