Banking group Barclays said today first-quarter adjusted profit before tax was £2.445bn, up 22%, driven by strong performances in both Retail and Business Banking and Corporate and Investment Banking.
The non-Investment Bank businesses showing significant growth in adjusted profits.
Statutory loss before tax was £475m (2011: £1.655bn profit), reflecting £2.62bn own credit reversal and an additional provision of £300m for Payment Protection Insurance (PPI) redress.
Adjusted return on average shareholders' equity increased to 12.2% (2011: 10.2%) and adjusted return on average tangible shareholders' equity increased to 14.3% (2011: 12.3%).
Excluding own credit, total income increased 5% to £8,138m. Investment Bank income was £3,464m (2011: £3,366m), up 3% on Q1 2011, and 91% on Q4 2011.
Credit impairment charge of £778m improved 16%, with an annualised loan loss rate of 63bps (2011: 76bps).
Excluding PPI provision, operating expenses increased 2% to £4,949m, reflecting an increase in non-performance costs, with performance costs remaining flat. Adjusted cost to income ratio improved to 61% (2011: 62%).
Core Tier 1 ratio remained strong at 10.9% (31 December 2011: 11.0%), with Core Tier 1 capital broadly flat and risk weighted assets increasing 1% to £394bn.
Raised £12bn of term funding, with term funding maturities of £27bn for full year 2012.
Net asset value per share of 445p (31st December 2011: 456p) and net tangible asset value per share of 381p (31st December 2011: 391p) impacted by the own credit reversal.
First quarter dividend is 1p per share (2011: 1p).
Bob Diamond, CEO, said: "Barclays first quarter results are an encouraging start to the year and demonstrate continued progress across our execution priorities. We achieved an adjusted return on equity that exceeded 12%, driven by strong results in UK RBB, Barclaycard, and Wealth and Investment Management and improved performances in Corporate and Investment Banking. Our rock solid capital, funding and liquidity positions remain a source of competitive advantage and enabled us to fund a substantial proportion of our 2012 term funding requirements.
The environment in which we operate remains unpredictable but we have a proven ability to adapt and grow our businesses in the face of external change. We will be proactive and seek to lead the agenda on recovery and resolution planning, which is a critical step to eradicate "too big to fail", while continuing to remain closely engaged with regulatory agencies and governments. Our strong mix of businesses, emphasis on serving customers and clients, and our focus on execution give me confidence in delivering on our return targets for shareholders."
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