Press Release

Group profit before tax for the nine months ended 30th September 2010 was £4,274m up 4% (2009: £4,107m).

Excluding movements on own credit, gains on acquisitions and disposals and gains on debt buy-backs, profit before tax increased 6% to £4,236m (2009: £3,978m). Income increased 2% to £22,872m (2009: £22,358m) in part reflecting the subdued macroeconomic environment. Impairment charges improved 31% to £4,298m (2009: £6,214m), while operating expenses increased 18% to £14,476m (2009: £12,233m). The increase in operating expenses principally reflected continuing increased investment in the Group’s businesses of £917m, increased regulatory charges and infrastructure costs of £599m and increased pension charges of £224m.

Profit before tax for Q3 was £327m which included an own credit charge of £947m. Excluding own credit, profit before tax improved to £1,274m in Q3 from £1,174m in Q2, with a decrease in profit at Barclays Capital more than offset by an increase across other businesses.

Performance Summary:

  • Group profit before tax for the year-to-date of £4,274m up 4% (2009: £4,107m).
  • Profit before tax for Q3 excluding own credit of £1,274m, up from £1,174m for Q2.
  • Income for the year-to-date of £22,872m up 2% (2009: £22,358m).
  • Impairment of £4,298m down 31% (2009: £6,214m) giving a year-to-date annualised loan loss rate of 110bps (2009: 151bps).
  • Net income of £18,574m up 15% (2009: £16,144m).
  • Operating expenses of £14,476m up 18% (2009: £12,233m) reflecting continued investment in the businesses.
  • Annualised net interest margin for GRB, Barclays Corporate, Barclays Wealth and Absa up slightly versus the first half.
  • Core Tier One ratio of 10.0%.
  • Wholesale term issuance of £28bn in first nine months and strong liquidity maintained.
  • Increased gross new lending to UK households and businesses of £35bn, including Standard Life Bank (2009: £26.1bn).
  • Third interim dividend of 1.0p per share, making 3.0p for the year-to-date.

Date: 09.11.2010

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