2011
Head Office Functions and Other Operations adjusted loss before tax increased 46% to £1,106m, principally as a result of a £325m charge arising from the UK bank levy that came into force during 2011. Profit before tax improved significantly to £2,709m (2010: loss of £368m), reflecting own credit gains and gains on debt buy-backs.
Total income improved to £3,504m (2010: £213m). Own credit gains, increased to £2,708m (2010: £391m) and gains on debt buy-backs of £1,130m (2010: £nil) were recognised resulting from the retirement of Tier 1 capital, which will not qualify as Tier 1 capital under Basel 3. This was partially offset by the non-recurrence in 2011 of £265m income from currency translation reserves following the repatriation of capital from overseas operations that was recognised in 2010.
Operating expenses increased to £773m (2010: £579m) principally due to the UK bank levy of £325m and higher Financial Services Compensation Scheme (FSCS) costs, partially offset by non recurrence of a 2010 provision of £194m in relation to resolution of the investigation into Barclays compliance with US economic sanctions. The loss on disposal of £23m reflects losses from currency translation reserves recognised in the income statement following the disposal of Barclays Bank Russia.
Total assets increased 33% to £27.8bn due to purchases of government bonds to support the Group’s hedging and liquidity management activities.
2010
Head Office Functions and Other Operations adjusted loss before tax decreased £962m to a loss of £759m. The results for 2009 reflected a net gain on debt buy-backs of £1,164m, while 2010 benefited notably from a significant decrease in the costs of the central funding activity and a reclassification of profit from the currency translation reserve. Loss before tax reduced significantly to £368m (2010: loss of £2,370m), primarily due to own credit gains of £391m (2009: loss of £1,820m).
Net operating income increased to £211m (2009: loss of £1,808m) principally reflecting own credit movements, significant decrease in the costs of the central funding activity as the money market dislocations eased and recognition in the income statement of £265m of profit from the currency translation reserve, offset by increases in fees for structured capital market activities.
Operating expenses increased to £579m (2009: £570m) principally due to payment of a £194m settlement to US regulators in resolution of the investigation into Barclays compliance with US economic sanctions, partially offset by a reduction in the bank payroll tax charge to £96m (2009: £225m) and a reduction of £59m in Financial Services Compensation Scheme charges.
Total assets increased to £20.9bn (2009: £6.4bn), largely due to a £7.4bn net increase in gilts held for the equity structural hedge and £6.8bn of covered bonds and other notes.
|
|
2011 |
2010 |
2009 | ||||||||
| |||||||||||
|
Total income net of insurance claims (excluding own credit and gains on debt buy-backs) |
(334) |
(178) |
(1,136) | ||||||||
|
Own credit |
2,708 |
391 |
(1,820) | ||||||||
|
Gains on debt buy-backs and extinguishments |
1,130 |
– |
1,164 | ||||||||
|
Total income net of insurance claims |
3,504 |
213 |
(1,792) | ||||||||
|
Credit impairment release/(charge) and other provisions |
1 |
(2) |
(16) | ||||||||
|
Net operating income/(loss) |
3,505 |
211 |
(1,808) | ||||||||
|
Operating expenses (excluding UK bank levy) |
(448) |
(579) |
(570) | ||||||||
|
UK bank levy |
(325) |
– |
– | ||||||||
|
Operating expenses |
(773) |
(579) |
(570) | ||||||||
|
Share of post-tax results of associates and joint ventures |
– |
– |
1 | ||||||||
|
Profit on disposal of associates and joint ventures |
(23) |
– |
7 | ||||||||
|
Profit/(loss) before taxa |
2,709 |
(368) |
(2,370) | ||||||||
|
|
|
|
| ||||||||
|
Adjusted loss before taxb |
(1,106) |
(759) |
(1,721) | ||||||||
|
|
|
|
| ||||||||
|
Balance Sheet Information and key facts |
|
|
| ||||||||
|
Total assets |
£27.8bn |
£20.9bn |
£6.4bn | ||||||||
|
£2.4bn |
£0.6bn |
£0.9bn | |||||||||
|
Number of employees (full time equivalent)c |
1,400 |
1,400 |
1,500 | ||||||||
