Salz Review - Wall Street Journal

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213
Salz Review
An Independent Review of Barclays’ Business Practices
Profits
Barclays’ Profit before Tax (PBT) by Business, 1993-2012 313
£bn
10
5
0
0.7
Barclaycard
UK Retail & Business Banking
IRCB
Absa
Barclays Wealth
Barclays Corporate
2.3
2.5
1.9 2.0
1.7 1.9
Barclays Capital
Investment Management
Head Office and other ops.
5.3
4.6
3.8
3.4 3.4 3.2
7.1
7.1
3.5
6.4
5.7
3.2
4.8
1.1
0.3
0.3
0.3
4.1
0.2
-0.1
-1.1
-5
Notes: International Retail and Commercial Banking (IRCB) includes Europe RBB and Africa RBB; Profit Before Tax
from continuing operations only; Excludes own credit earnings / (charges) of £1.7 billion in 2008, £(1.8) billion in 2009,
£0.4 billion in 2010, £2.7 billion in 2011 and £(4.6) billion in 2012; No consistent breakdown by business available
prior to 2000
Sources: Barclays Finance, Barclays annual reports
Caution is needed in analysing revenues, compensation, profit and return ratios at business
unit level, as this requires broad, and sometimes bank-specific, assumptions dependent on
the organisational structure and transfer pricing arrangements. This is affected, for
example, by shared costs incurred at central level, such as group management and IT, or by
funding costs, which can also be considered as ‘shared’, as all business units benefit from
the same group-wide credit rating. Finally, revenues from clients or activities can be
considered as ‘shared’ between business units when the product designer and the seller
belong to different business units, or the success of one business unit depends on the
existence of another.
313 Excluding own credit.