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FURTHER ANALYSIS OF PROFIT AND
LOSS ACCOUNT AND PRO FORMA DISCLOSURE
|
|
2001 |
|
2000
Pro forma |
|
2000 |
|
|
£m |
|
£m |
|
£m |
| Interest receivable |
|
13,513 |
|
13,546 |
|
11,799 |
| Interest payable |
|
(7,374) |
|
(8,006) |
|
(6,639) |
| Profit on repurchase of
loan capital |
|
-
 |
|
2
|
|
2
|
| Net interest income |
|
6,139 |
|
5,542 |
|
5,162 |
| |
|
|
|
|
|
|
| Net fees and commissions
receivable |
|
3,758 |
|
3,597 |
|
3,369 |
| Dealing profits |
|
1,011 |
|
677 |
|
677 |
| Other operating income |
|
452 |
|
432 |
|
397 |
| Total non-interest income |
|
5,221 |
|
4,706 |
|
4,443 |
| Operating income |
|
11,360 |
|
10,248 |
|
9,605 |
| |
|
|
|
|
|
|
| Administration expenses -
staff costs |
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(3,578) |
|
(3,189) |
|
(3,047) |
| Administration expenses -
other |
|
(2,181) |
|
(2,135) |
|
(1,900) |
| Depreciation and
amortisation |
|
(308) |
|
(294) |
|
(256) |
| Operating expenses |
|
(6,067)
|
|
(5,618)
|
|
(5,203)
|
|
|
5,293 |
|
4,630 |
|
4,402 |
| Provisions for bad and
doubtful debts |
|
(1,149) |
|
(850) |
|
(817) |
| Provisions for contingent
liabilities and commitments |
|
(1) |
|
1 |
|
1 |
| Loss from joint ventures
and associated undertakings |
|
(9)
|
|
(10)
|
|
(8)
|
| Operating profit |
|
4,134 |
|
3,771 |
|
3,578 |
| Restructuring charge |
|
(171) |
|
(232) |
|
(232) |
| Woolwich integration costs |
|
(89) |
|
(7) |
|
(7) |
| Woolwich fair value
adjustments |
|
(33) |
|
(6) |
|
(6) |
| Goodwill amortisation |
|
(229) |
|
(219) |
|
(51) |
| Exceptional items |
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(4)
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|
-
|
|
214
|
| Profit on ordinary
activities before tax |
|
3,608
|
|
3,307
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|
3,496
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| |
|
|
|
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|
|
| Earnings per ordinary
share before restructuring charge, integration costs, Woolwich fair value
adjustments, goodwill amortisation and exceptional items |
|
174.1p |
|
158.1p |
|
164.0p |
|
|
|
|
|
|
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| Post-tax return on average
shareholders' funds (on a consistent basis with earnings per share
above) |
|
20.2% |
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21.2% |
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25.3% |
The above results for 31st
December 2001 and 2000 are based on the operating profit shown on the Consolidated
profit and loss account (page 10 of the PDF) before
charging for costs directly associated with the integration of Woolwich plc,
Woolwich fair value adjustments, goodwill amortisation and the restructuring
charge.
The pro forma 2000 comparatives
are based on the assumption that the acquisition of Woolwich plc took place on
1st January 2000. Further details of the pro forma adjustments are provided
below.
Woolwich fair value adjustments
consist of £35m net interest charge (2000: £7m) and £2m of credit to
operating expenses (2000: £1m).
Basis of preparation of further analysis of results
The further analysis of the results for 31st December 2001 and 2000 presents operating profit before the restructuring charge, costs associated with the integration of Woolwich plc, Woolwich fair value adjustments and goodwill amortisation. Barclays believes that identifying operating profit before charging these items assists in the understanding of underlying profit trends in the results.
Basis of preparation of pro forma results
In addition to the adjustments above, the acquisition of Woolwich plc on 25th October 2000 has had a material impact on the Group's results. Therefore, in order to facilitate the comparison of results in 2001 to those in 2000 pro forma results have been prepared for the year ended 31st December 2000 on the assumption that the acquisition of Woolwich plc, and the disposal of certain other businesses, had taken place on 1st January 2000.
Pro forma earnings per share and post-tax return on average shareholders' funds have been calculated on a similar basis to the pro forma results.
The pro forma results for the year ended 31st December 2000 have been prepared on the following basis:
Changes in accounting policies and
accounting estimates
The results for Woolwich plc have been restated using Barclays Group accounting policies. This has resulted in mortgage incentives and software costs, previously capitalised and amortised, being expensed as incurred. The results for Woolwich plc have been adjusted to reflect the Barclays depreciation rates and other accounting estimates.
Adjustment to reflect net funding of the acquisition of Woolwich plc
Interest received has been reduced by £128m in the year to 31st December 2000 to reflect interest foregone had the cash element of the acquisition been paid on 1st January 2000. This is based on the assumption that the amount would have been deposited at the internal transfer price of cash, which is calculated based on an average of one-month sterling LIBOR over the period.
Results of businesses disposed of
The results of any businesses disposed of during 2000 by either Barclays or Woolwich plc have been eliminated, together with any profits or losses on disposal. Proceeds of £286m are assumed to have been received on 1st January 2000 and interest received adjusted on the same basis as for the funding adjustment above. Acquisitions and disposals in 2001 are not considered material and consequently no adjustment is made in the pro forma presentation.
Goodwill amortisation.
Amortisation of £206m per year based on goodwill balance of £4,121m over its estimated economic life of 20 years has been included in the pro forma accounts for 2000.
Costs of acquisition
Incremental costs incurred by Woolwich plc in relation to the acquisition have not been included.
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