Barclays plc - Annual Report 2008 - Financial statements - The Group

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Notes to the accounts For the year ended 31st December 2008 1 Dividends per share As announced on 13th October 2008, the Board of Barclays has concluded that it would not be appropriate to recommend the payment of a final dividend for 2008. The final dividend for 2007 of £1,485m is accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31st December 2008. 2 Net interest income 2008 2007 2006 £m £m £m Cash and balances with central banks 174 145 91 Available for sale investments 2,355 2,580 2,811 Loans and advances to banks 1,267 1,416 903 Loans and advances to customers 23,754 19,559 16,290 Other 460 1,608 1,710 Interest income 28,010 25,308 21,805 Deposits from banks (2,189) (2,720) (2,819) Customer accounts (6,697) (4,110) (3,076) Debt securities in issue (5,910) (6,651) (5,282) Subordinated liabilities (1,349) (878) (777) Other (396) (1,339) (708) Interest expense (16,541) (15,698) (12,662) Net interest income 11,469 9,610 9,143 Interest income includes £135m (2007: £113m, 2006: £98m) accrued on impaired loans. Other interest income principally includes interest income relating to reverse repurchase agreements. Similarly, other interest expense principally includes interest expense relating to repurchase agreements and hedging activity. Included in net interest income is hedge ineffectiveness as detailed in Note 14. 3 Net fee and commission income 2008 2007 2006 £m £m £m Fee and commission income Brokerage fees 87 109 70 Investment management fees 1,616 1,787 1,535 Securities lending 389 241 185 Banking and credit related fees and commissions 7,208 6,363 6,031 Foreign exchange commissions 189 178 184 Fee and commission income 9,489 8,678 8,005 Fee and commission expense (1,082) (970) (828) Net fee and commission income 8,407 7,708 7,177 210 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08
4 Principal transactions 2008 2007 2006 £m £m £m Rates related business 4,751 4,162 2,848 Credit related business (3,422) (403) 766 Net trading income 1,329 3,759 3,614 Net gain from disposal of available for sale assets 212 560 307 Dividend income 196 26 15 Net gain from financial instruments designated at fair value 33 293 447 Other investment income 239 337 193 Net investment income 680 1,216 962 Principal transactions 2,009 4,975 4,576 Net trading income includes the profits and losses arising both on the purchase and sale of trading instruments and from the revaluation to fair value, together with the interest income earned from these instruments and the related funding cost. Of the total net trading income, a £2,096m net loss (2007: £116m loss, 2006: £1,427m gain) was made on the purchase and sale of securities and the revaluation of both securities and derivatives. This included a £1,272m gain (2007: £640m, 2006: £480m) that was earned in foreign exchange dealings. The net loss on financial assets designated at fair value included within principal transactions was £6,602m (2007: £78m gain, 2006: £489m gain) of which losses of £6,635m (2007: £215m loss, 2006: £42m gain) were included in net trading income and gains of £33m (2007: £293m, 2006: £447m) were included in net investment income. The net gain on financial liabilities designated at fair value included within principal transactions was £3,328m (2007: £231m loss, 2006: £920m loss) all of which was included within net trading income. Net trading income includes the net gain from widening of credit spreads relating to Barclays Capital issued structured notes held at fair value was £1,663m (2007: £658m, 2006: £nil). 5 Insurance premiums and insurance claims and benefits 2008 2007 2006 £m £m £m Gross premiums from insurance contracts 1,138 1,062 1,108 Premiums ceded to reinsurers (48) (51) (48) Net premiums from insurance contracts 1,090 1,011 1,060 3 2008 2007 2006 £m £m £m Gross claims and benefits incurred on insurance contracts 263 520 588 Reinsurers’ share of claims incurred (26) (28) (13) Net claims and benefits incurred on insurance contracts 237 492 575 6 Other income Financial statements 2008 2007 2006 £m £m £m (Decrease)/increase in fair value of assets held in respect of linked liabilities to customers under investment contracts (10,422) 5,592 7,417 Decrease/(increase) in liabilities to customers under investment contracts 10,422 (5,592) (7,417) Property rentals 73 53 55 Other income 304 135 159 Other income 377 188 214 Included in other income are sub-lease rentals of £18m (2007: £18m, 2006: £18m), and in 2008 only is a £47m gain from the Visa IPO. Barclays PLC Annual Report 2008 211
Page 1 and 2: Financial statements Presentation o
Page 3 and 4: Independent Auditors’ report Inde
Page 5 and 6: Consolidated accounts Barclays PLC
Page 7 and 8: ) financial assets, loans to custom
Page 9 and 10: 11. Collateral and netting The Grou
Page 11 and 12: 17. Issued debt and equity securiti
Page 13 and 14: 24. Taxes, including deferred taxes
Page 15 and 16: The following IFRIC interpretations
Page 17 and 18: Consolidated balance sheet As at 31
Page 19 and 20: Consolidated cash flow statement Fo
Page 21: Statement of recognised income and
Page 25 and 26: 9 Administration and general expens
Page 27 and 28: 12 Trading portfolio 2008 2007 £m
Page 29 and 30: 14 Derivative financial instruments
Page 31 and 32: 16 Available for sale financial inv
Page 33 and 34: 20 Investments in associates and jo
Page 35 and 36: 22 Intangible assets 2008 Internall
Page 37 and 38: 24 Financial liabilities designated
Page 39 and 40: 26 Insurance assets and liabilities
Page 41 and 42: 27 Subordinated liabilities (contin
Page 43 and 44: 27 Subordinated liabilities (contin
Page 45 and 46: 29 Securitisations The Group was pa
Page 47 and 48: 30 Retirement benefit obligations (
Page 53 and 54: 31 Ordinary shares, share premium,
Page 55 and 56: 32 Reserves (continued) Retained ea
Page 57 and 58: 34 Contingent liabilities and commi
Page 59 and 60: 37 Leasing The Group is both lessor
Page 61 and 62: 39 Acquisitions The Group made the
Page 63 and 64: 39 Acquisitions (continued) (c) Exp
Page 65 and 66: 42 Other entities There are a numbe
Page 67 and 68: 43 Related party transactions and D
Page 69 and 70: 43 Related party transactions and D
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45 Share-based payments (continued)
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45 Share-based payments (continued)
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47 Credit risk (continued) Whilst t
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47 Credit risk (continued) Credit r
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47 Credit risk (continued) Credit r
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47 Credit risk (continued) All loan
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47 Credit risk (continued) Loans an
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47 Credit risk (continued) Renegoti
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47 Credit risk (continued) Reverse
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48 Market risk (continued) To furth
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48 Market risk (continued) Foreign
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49 Liquidity risk (continued) Year-
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49 Liquidity risk (continued) At 31
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50 Fair value of financial instrume
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52 Capital Management (continued) R
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53 Segmental reporting (continued)
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53 Segmental reporting (continued)
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Barclays Bank PLC data Consolidated
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c Principal transactions (continued
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f Other income 2008 2007 2006 £m
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k Called up share capital (continue
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l Reserves Other reserves Available
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Barclays Bank PLC data Financial Da
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Barclays plc - Annual Report 2008 - Financial statements - The Group

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