“A bank is a place where they lend you an umbrella in

fair weather and ask for it back when it begins to rain.”

Submitted to
Sir Riaz Ahmed

Submitted by
Rida Musleh
Ammarah Irfan
 Vision and Strategy
Barclays strategy is to achieve good growth through time by diversifying its business base and
increasing its presence in markets and segments that are growing rapidly.

This is driven by the Group’s ambition to become one of a handful of universal banks leading the
global financial services industry, helping customers and clients throughout the world achieve
their goals.

The strategy is based on the principles of earn, invest and grow.

Supporting this are four strategic priorities:

 Build the best bank

 Accelerate the growth of global businesses
 Develop retail and commercial banking activities in selected countries outside the UK
 Enhance operational excellence.
“Banks have an obligation to extend credit to
households and businesses, enabling them to create
growth and jobs - it is their prime social purpose."

History of Barclays
Barclays Bank is one of the leading operations in the UK financial sector with exposure to
Europe, North America, the Middle East, Latin America, Australia, Asia and Africa. During the
ongoing economic crisis Barclays Bank is one of the few UK operations to turn down state
funding from the UK government which has ultimately given directors more control over the
future direction of the company.

The history of Barclays Bank can be traced back to 1690 when John Feame and Thomas Gould
began trading in Lombard Street London under the name of Goldsmith bankers. When James
Barclay joined the operation in 1736 the name Barclays became associated with the company
although it was not until 1896 that the company became known as Barclays bank. Like so many
of the UK clearing banks trading today, Barclays Bank acquired many smaller operations over
the years and extended its business tentacles into all areas of the UK and worldwide financial
system.

The company has become embroiled in a number of controversial subjects such as aggressive
investment trading, tax avoidance schemes and close relationships with large investors in the
Middle East. However, despite worries regarding the UK financial sector Barclays Bank was one
of the few self funding operations which was not forced to go cap in hand to the UK government.
Many believe that Barclays Bank will emerge from the ongoing economic crisis as one of the
stronger European and worldwide banking organizations trading today.

History in Pakistan
The State Bank of Pakistan in December 2007 granted Barclays the licence to operate in the
country.

Barclays Bank Pakistan commenced operations in July 2008. It serves its customers and clients
across the country through a network of 30 ATMs and 15 branches, including five branches in
Lahore, four in Karachi, and one in Islamabad and two in Rawalpindi. The Barclays network has
extended its presence to the rural centre of Mangla, Rawat and Akora Khattak with a branch in
each of these locations.

In Pakistan, the Barclays businesses include: 

 Retail banking: offers customers a range of personal accounts, investment options,

consumer loans and Bancassurance
 Premier banking: provides preferential banking services to eligible customers
 Corporate banking: offers business banking services tailored to meet the needs of
corporate clients, including cash management, loans, savings and risk management,
supported by a dedicated Relationship Manager.
Barclays operates in over 50 countries and employs 147,500
people.

Barclays provides financial services to more than 48 million

customers in over 50 countries worldwide.

Chief Executive Bob Diamond said:

 "We have made a
good start in 2011
in a challenging
external
environment and
we are making
good progress on
execution in line
with our strategic priorities."

Key facts
Barclays is a major global financial services provider engaged in retail banking, credit cards,
corporate and investment banking and wealth management with an extensive international
presence in Europe, the Americas, Africa and Asia.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries
and employs 147,500 people. Barclays moves, lends, invests and protects
money for customers and clients worldwide.

Structure of Barclays
Barclays is made up of two ‘Clusters’:

 Global Retail Banking

 Corporate and Investment Banking and Wealth Management

Each of which has a number of Business Units.

The third major area of the business is Group Centre , which comprises all our essential support
functions.  

Barclays leadership
Barclays Group Chairman is Marcus Agius, and the Chief Executive is Robert E. Diamond, Jr.
They are supported by Barclays Executive Committee and the Board of Directors.  

Global presence
Barclays Group headquarters is at 1 Churchill Place in London, UK, but it has operations all over
the world, with products and services to meet the needs of customers and clients in local markets.
Management report:
“The conventional definition of management is
getting work done through people, but real
management is developing people through work.”

Company Information
As Champions of local business, Barclays Bank provides great value to their Stratford upon
Avon business customers by offering services and a comprehensive range of tailored business
banking products and accounts to more than 700,000 businesses typically
with a turn over less than £1 million. 

 Barclays Bank support businesses with:

 Named business manager, Stratford upon Avon based allocated to the clients business.
 Nationwide programs of practical and FREE seminars to help people start in business and
then go on to grow them.  In 2006, around 600 events took place, supporting over 10,000
individuals.
  Barclays Trading Places’ Awards, recognizing people overcoming adversity to set up in
business
 Give start-ups standard banking transactions free for up to 18 months.  Wide range of free
advice and information -Starting & Running Your Business CD-ROM; consultations with
a panel of legal, accountancy & marketing experts; Business Opportunity Profiles &
Business Information Factsheets; Legal & tax helpline

Bank Annual Reports

Containing over 29,000 Annual reports sourced directly from over 23,000 banks and financials
institutions; Bankers' Almanac Due Diligence Repository is a single, comprehensive source of
key banking documents.

Containing documents essential for conducting KYC checks on bank counterparties including:

 Over 29,000 Annual Reports from over 23,000 banks

 Bank Licences
 USA PATRIOT/Foreign Bank Certification
 Corporate Governance Documents
 AML policies
 Wolfsberg Group* Anti-Money Laundering Questionnaire
 160,000 documents from over 23,000 institutions

Cash management:

Making & Receiving Payments, Barclays can offer a range of solutions that would make
receiving and making payments in Pakistan and overseas easier and effective.   Collection
Services   Comprehensive receivables management solutions
Barclays Bank Plc, Pakistan (Barclays) understands key business concerns, especially when
operating and sustaining a profitable business in today's tough environment:
 
 Receivables Management - ensuring efficiency and effective receivables management to
ensure optimal utilization of funds
  Cost Management - reducing interest costs and maximizing float gains through optimal
utilization of funds and effective receivables management.

  Barclays Collections Solution leverage Barclays expertise and extensive network covering over
3,000 locations across the country, using various strategic and business alliances.   The main
platform for our Collection Solutions includes the following:
 Extensive Coverage
They have developed an extensive network using our correspondent banks and other
strategic alliances across the country to help you manage your collections in a more
efficient and timely manner, across the country
 Comprehensive MI Services
Barclays understand the importance of timely information about cash flows. Barclays
offer comprehensive MI services as part of collections solutions to help in managing cash
flows more effectively by matching payables with receivables. Barclays internet banking
platform provides visibility on a real time basis, giving you greater control of your cash.
 Cash In Transit (CIT)
Under this product Barclays offer cash pick up services using an armored
vehicle through strategic alliances  

Collection Services are

 Courier pick-up service, which is available for cheques, POs and DDs from office,
dealers' and distributors' offices.
 Clearing of instruments whether local or foreign currency through the clearing houses,
directly by Barclays or through correspondent bank network.
 Data capture of information pertaining to collection of Cash/Instruments and provision of
a Daily MI (Pre and Post Clearing Information).
 Multi Level Reconciliation.

 
Cash, Local Bank Cheques, Demand Drafts, Pay Orders and Faster Payments through Bank to
Bank settlement
All instruments, except those paid in at the branch on which they are drawn, must go through the
local clearing house. This normally takes 3 working days. Using our strategic alliances with
other banking and non banking financial institutions Barclays can reduce the cycle time to
between 24-48 hours.
II. Quicker Payments
Using our alliances for Rupee payments in Pakistan, Barclays offer to send high volume
payments that will reach beneficiary account with other bank on the same day.
III. Tax Payments
Tax payments will be processed on the same day and an electronic copy of the Computerized
Payment Receipt (CPR) will also be provided the same day.
IV. International Payments
a. Outbound International Payments/Outward Remittances
Providing a flexible means of sending funds overseas, the service has been specially
designed to meet business needs in terms of cost and speed. Payments are sent using an
electronic bank-to-bank transfer, which is suitable for both urgent and less time critical
payments and enables the secure transfer of funds from Pakistan to overseas beneficiaries,
seamlessly.
b. Inbound International Payments/Inward Remittances
Benefit from a range of cross-border payment services designed to meet individual business
needs. An inbound international payment is also an electronic bank-to-bank transfer and the
fastest and most secure method of receiving funds from overseas.
If wish to receive funds in this way, customer should ensure that the overseas payer has their
full banking details. Customers should always provide the payer with IBAN (International
Bank Account Number) and Barclays SWIFTBIC (Bank Identifier Code) which is
BARCPKKA.
  Customers can also benefit from reporting services via SWIFT using our MT940 & MT 942
channels to receive statements and keep track of account activity.  
V. Local & International Dividend Payments
End to end dividend payment solution. With daily MI services giving pre and post clearing status
of dividend warrants.
VI. Royalty/Technical Payments
A dedicated SBP Desk will help with Royalty/Technical agreements with the Central Bank to
enable International and Domestic Royalty Payments.
VII. Structured Payroll Solution
End to end salary solution with numerous benefits to management and employees.
VIII. Corporate Utility Bill Payments
Barclays accepts utility bill payments and provides confirmation of payments, offering ease of
payment.
IX. FCY Clearing Services
International Bank Cheques for FCY Payments
X. State of the Art Electronic Banking Platform
Using Barclays E-Banking platform customers can make payments ranging from simple online
transactions via Internet banking to Bulk Cheque Printing powered by dual system integration. A
dedicated channel manager will be available to help integrate systems along with dedicated
relationship and relationship support managers to help customize solutions to help in manage
working capital in amore efficient manner.

 Wealth management
Barclays Wealth is a leading global wealth manager, and the UK’s largest, with total client assets
of £164bn, as at 31 December 2010. With offices in over 20 countries, Barclays Wealth focuses
on private and intermediary clients worldwide, providing international and private banking,
investment management, fiduciary services and brokerage.

The board of directors:

Marcus Agius

Group Chairman

Robert E.Diamond, Jr

Chief Executive, Barclays PLC

Chris Lucas

Group Finance Director

David Booth

Non-Executive Director

Sir Richard Broadbent

Deputy Chairman and Senior Independent Director

Alison Carnwath

Non-Executive Director

Fulvio Conti

Non-Executive Director

Simon Fraser

Non-Executive Director

Reuben Jeffery III

Non-Executive Director
 Sir Andrew Likierman

Non-Executive Director

Dambisa Moyo

Non-Executive Director

Sir Michael Rake

Non-Executive Director

Sir John Sunderland

Non-Executive Director

Financial report of 2010:

Group profit before tax of £3,947m, up 44%

 Income of £16,581m, up 8%
 Impairment charges of £3,080m, down 32%, giving a loan loss rate of 118bps (full year
2009: 156bps), with a sharp decrease in impairment at Barclays Capital partially offset by
an increase in impairment in Barclays Corporate in Spain
 Net income of £13,501m, up 25%
 Operating expenses of £9,720m, up 21%, reflecting continued investment in the build-out
of Barclays Capital and Barclays Wealth, increased regulatory costs, increased charges
relating to prior year compensation deferrals, adverse impact of currency exchange rate
movements and restructuring charges in Barclays Corporate
 Positive net income: cost “jaws” of 4%
 Returns on average shareholders’ equity of 9.8% (2009: 9.4%), on average tangible
shareholders’ equity of 12.0% (2009: 13.0%) and on average risk weighted assets of
1.5% (2009: 1.0%)

Key measures of Group’s financial strength:

 Core Tier 1 ratio of 10.0% (31st December 2009: 10.0%) and Tier 1 capital ratio of
13.2% (31st December 2009: 13.0%)
  Adjusted gross leverage of 20x (31st December 2009: 20x)
 Group liquidity pool up £33bn to £160bn
(31st December 2009: £127bn)

Barclays Capital profit before tax more than trebled

to £3,400m (2009: £1,047m)

 Includes gain of £851m on own credit

(2009: loss of £893m)
 Excluding effect of own credit, profit before
tax of £2,549m (2009: £1,940m)

Global Retail Banking (GRB) profit before tax of £901m (2009: £845m)

 Income of £5,134m (2009: £5,207m), reflecting weak economic growth and further
margin compression
 Impairment charges of £1,518m (2009: £1,647m)
 Net income of £3,616m (2009: £3,560m)

Absa profit before tax of £318m (2009: £259m), largely reflecting appreciation in the average
value of the Rand against Sterling

Barclays Corporate loss of £377m (2009: profit of £152m)

 Profit before tax of £379m (2009: £369m) in UK & Ireland operation

 More than offset by losses of £756m (2009: £217m) within Continental Europe and New
Markets, reflecting an increase in corporate impairment in Spain of £433m and
restructuring costs in New Markets of £93m

Gross new lending to UK households and businesses of £18bn during the first half, plus a further
£7bn through the acquisition of Standard Life Bank

Second inter dividend of 1.0p per share, making 2.0p for the half year.
 

 
 Products and
brands

“The conventional definition of management is getting

work done through people, but real management is
developing people through work.”
 Products and Services

Barclays is a global financial services provider,

engaged in retail and commercial banking, credit
cards, investment banking, wealth management
and investment management services all over the
world.
From basic accounts in developing markets to financial expertise in high street branches,
Barclays services include credit cards, insurance, loans, mortgages and more.

Online Banking

Personal Banking

Premier Banking

Barclaycard

Online banking
Internet banking is really straightforward to use and security precautions mean your money is
always kept safe.

Convenient Online Banking

 Online Banking is free and it's open round the clock, putting in control of money.
Customers can pay bills, transfer money and check your statements. It can even register
for Online Statements for a cleaner and greener way to organize finances.

Easy internet banking

 It's easy to use Online Banking – Barclays have got help all the way through and
helpdesk is on hand for any questions customers may have.

Secure Online Banking

 Barclays are using the most advanced security systems to keep your safe.

Personal Banking
If customers are looking for top end banking in Pakistan, Barclays newly-launched general
banking service offers great choice and it's easy to switch or apply. And if customers are looking
to buy property in Pakistan, Barclays Mortgage is a great place to start.
If you are looking for best in class financial solutions, Barclays is
the answer.  

Premiere card
The Barclays Premier Credit Card is offered exclusively to Premier Life customers
and is designed to give the freedom and flexibility need for your lifestyle.

Barclays Premier Credit Card key benefits:

 No annual fee
 Preferential purchase rate – 13.9% APR (typical variable)
 0% interest for 12 months on balance transfers (2.5% fee applies)
 Customized credit limits
 Exclusive offers, events and experiences
 Online account servicing
 24/7 support no matter where you are in the world

Barclay card
As a leading payment provider, Barclaycard makes and takes payments across the US, Europe
and Africa. They’ve gone from a UK credit card brand to one that’s known for global payments.

One in five credit cards issued in the UK is a Barclaycard, and were the first company in the UK
to provide an online banking facility.

Barclays have a specialist business that caters for organizations of every size, and are in a
position to make paying for anything, anywhere, simpler than it’s ever been.

Classic VISA Debit Card

The Barclays Classic Debit Card is extremely versatile and simple to use, and is valid both in
Pakistan and overseas. Barclays Classic Debit Card brings just about everything within your
reach, be it that exquisite gift for a dear one or that irresistible outfit for yourself debit card
gives you unmatched point of sale limits and ATM withdrawal limits. What's more, debit card is
a Visa Card, giving the flexibility of usage in Pakistan as well as abroad. In addition VISA provides
one of the world’s largest global ATM networks, offering cash access in local currency in over
170 countries.   Features and benefits  

 Worldwide access
Access bank account at over 3,000 1LINK/MNET ATMs in Pakistan and over a million
ATMs overseas.
 High limits
Withdraw up to Rs 50,000 per day at ATMs and enjoy a purchase limit of up to Rs 75,000
per day.
 Convenient shopping worldwide and locally
Access bank account at over 29 million merchant acceptance locations and over a
million ATMs.
 Assistance anytime, anywhere
Avail of comprehensive VISA Global Customer Assistance Service (GCAS) whenever
people travel overseas.
 Offers in Pakistan
Classic Debit Card comes with unique privileges.

Corporate and business banking

Barclays provides a range of financial services to business customers all over the world, offering,
when appropriate, specialist advice and products to meet their diverse demands.

Products and services for corporate and business customers include:

 Support for businesses of any size – from microenterprises to multinationals

 Online banking
 Savings and investments
 Card services
 Risk management
 Access to services from Barclays Investment Banking and Investment Management
portfolio
 Leveraged finance
 International trading
 Business loans.
Investment banking
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive
business model, Barclays Capital provides large corporate, government and institutional clients
with a full spectrum of solutions to their strategic advisory, financing and risk management
needs. Barclays Capital has offices around the world, employs over 25,000 people and has the
global reach, advisory services and distribution power to meet the needs of issuers and investors
worldwide.

Deposits and Liquidity

  Barclays Commercial Saver Accounts PKR and FCY (USD, GBP, EUR)

 Easy to access savings account(s) offering unrestricted access to your funds and tiered
rates of interest.

  Barclays Commercial Term Deposit PKR and FCY (USD, GBP, EUR)

 Make money grow with Barclays Commercial Term Deposit

  Benefits

 Easy access to funds without loss of interest

 No restrictions on deposits or withdrawals while you can earn on your Saver account
 Online management in real time environment

  Details

 Tiered rates of interest

 Interest paid monthly, accrued daily

 Manage via

 Barclays E-Banking Platform

 Phone/Relationship Manager
 Branch
Barclays Capital

”Too many of us look upon Americans as dollar

chasers. This is a cruel libel, even if it is reiterated
thoughtlessly by the Americans themselves.”

Working Capital and Trade Solutions

Overdraft Facilities Short Term Finance Facility Subject to internal Credit Approvals &
Guidelines     Trade Finance I. Trade Finance a flexible short term borrowing facility linked to a
specific trade (import/export) transaction.
A. Import and Export Finance
Trade Loans are an important and well established mode of financing and is particularly
well suited to wholesalers and manufacturers. Trade loans can be used either for regular one
off purchases of goods and raw materials (import loan) or in the case of an export loan,
financing can be provided until payment from the sales of goods is received.
 B. Export Refinance
The Export Refinance (ERF) Scheme was introduced by the State bank of Pakistan with an
aim to boost exports of non-traditional items in Pakistan. The scheme is bifurcated in two
parts i.e. Part I (where finance is given, on a case to case and on a pre and post shipment
basis) & Part II (where an exporter may avail the export finance limit based on the previous
years export performance)1.

C. FCY Import & Export Loans under FE-25:

These are trade loans extended in foreign currency.
  II. Letter of Credit Discounting: By discounting a Letter of Credit you can obtain money due to
you under a Letter of Credit. This service is for exporters making sales on credit terms and use
Letters of Credit as the means of settlement. Letter of Credit Discounting will improve cash flow
positions because you will receive the payment from us once your buyer has accepted the
necessary documents. By discounting your Letters of Credit you will not have to wait until a
future date to receive your payment. Subject to internal Credit approvals & guidelines
FCY Import Loans will be considered on a case to case basis   Trade Services Making trade
more efficient, easier and safe to help you trade confidently.  
A. Bonds & Guarantees:
To help you meet your buyer’s or supplier’s demands Barclays can issue a range of bonds
and guarantees.

When selling overseas a bank guarantee or bond is a common request. The guarantee
provides a means of securing performance or other obligations set out under the terms of a
contract. Here Barclays will act as the guarantor for the seller. Alternatively, when availing
services or purchasing goods, the seller may require a guarantee to secure receivables. This
is common for utility companies across the country that supply to manufacturing facilities.
Here Barclays will act as the guarantor for the buyer and will pay the supplier a specific
sum, usually upon receipt of a written demand, for the goods and/or services provided.
 
B. Letters of Credit
 
  Export Letters of Credit: This is a conditional payment guarantee for you, issued
by buyer’s bank on their behalf. Payment is conditional upon presenting all
compliant documents. An Export Letter of Credit enables an exporter to
substitute buyer credit with that of the buyer's bank, providing greater assurance
of payment.

 
Barclays can also arrange to provide confirmations should have concerns about buyer's
bank or buyer's country. By adding confirmation, Barclays will have added our
assurance and acceptance to Letter of Credit.
 
 Import Letters of Credit
This is a conditional payment guarantee issued by Barclays on customers’
behalf. It secures payment to supplier provided Barclays conform to the
timeframe and documentary terms set forth under the Letter of Credit. This
investment allows negotiating more freely and on more favorable terms such as
longer credit terms or a reduction in costs.
 
Barclays can also arrange to provide confirmations should supplier have reservations
about the LC issuing bank or with country risk. By adding confirmation Barclays will
have added acceptance to Letter of Credit.
 
C. Collections – Get faster payments for your exports; Assure
to the quality of imports.
 
 Export Collections: Allowing a greater security for payments against exports;
export collection facilities provide reassurance, particularly when dealing with
new trading partners and enable you to predict and manage cash flows more
effectively.
Here, people will need to send a set of documents relating to exported goods to
Barclays and Barclays will forward these to the importer’s bank along with a
collection schedule to receive payment from the importer's bank. People can the
request payment immediately either at sight (when present the collection) or on
an agreed date in the future.
 Import Collections: This trade service gives greater assurance of the quality of
imports. Supplier will send us a set of documents allowing you to access the
traded goods. This usually comes via their bankers, accompanied by a bill of
exchange and an invoice drawn on business.
As per the exporter's request will then pay at sight (when documents are
presented) or at an agreed date in the future.

 
D. Open Account Trading
 More and more corporate have shifted from trading under Doc Credits to trading on an
Open Account Basis. It is now estimated that over 80% of global trade is conducted on an
open account basis. Led by large corporate, this form of trade saves costs and time and is
being adopted by more and more corporate across the world. Barclays in country trade
specialists are here to facilitate the timely end-to-end execution of Open Account
transactions.
 
E. Dedicated SBP DESK
From aiding in approvals for international remittances to the registration of agreements, the
SBP Desk will be available for people. Barclays in country trade specialists and dedicated
relationship managers are available to help provide information, guidance and to structure
trade transactions more effectively.

  Other Services MI Services Daily Statements (also available via MT 940 and 942)

SWOT Analysis
Strengths
 Barclays has a widespread global presence, allowing it to spread risk and enjoy economies of
scale.
 The Barclays brand is well-established historically and continually promoted, for example
through sponsorship of Premier League football.
 Barclays is particularly associated with innovation. It brought out the first credit card in 1966,
and has continued to develop cards, most recently the One Pulse card combing Oyster, cashless
and credit functions for London-based customers.
 The opening of several new flagship branches along with a refurbishment programmed can be
seen as an attempt to refocus on customer demands for a strong presence on the high street
(see threats).
Weaknesses
 Services provided in Zimbabwe to individuals
connected with Zanu PF have generated
controversy and raised questions about
Barclays’ ethical position: investors are
increasingly concerned about ethics.

 Large bonuses for Directors have attracted

unwanted attention from commentators, and it has been speculated that the bank’s reluctance
to take financing from the UK government is because that would end its autonomy with regard
to bonuses.

 Plans to expand in Asia were limited when Barclays were outbid for ABN Amro in 2006, and
alternative expansion plans have had to be adopted.

 The bank does not plan to pay dividends on its shares until the second half of 2009, making
them less attractive to investors.

Opportunities
 Barclays was keen to acquire some of Lehman’s assets prior to its collapse: after the collapse,
they have been able to negotiate a better deal with liquidators which also allowed them to be
very selective in which parts of the business they acquired
 The bank’s strategy is to offer a full portfolio of services worldwide, providing a wide range of
cross-selling opportunities.
 Asia is still considered an opportunity for Barclays’ expansion, and operations are being set up in
a number of locations.
 Welfare provision has decreased in many countries because of the cost to governments, and
Barclays sees self-provision as an increasing trend that it can utilise.
 The court recently found that Barclays banking charges, which had been challenged legally,
were enforceable, thus repayment is not necessary and charges can continue to be enforced.

Threats
 If the economic downturn is prolonged, acquisition of Lehman’s assets could prove to be a
mistake.
 Barclays has been accused of moving loss-making investments associated with the sub-prime
market from its accounts to those of other investors, and there is a risk it may be sued.
 While offering a wide range of services provides opportunities, there is also the threat that
customers may prefer to go to suppliers who present a more specialized approach.
 Barclays acquired a reputation for closing branches because of a high incidence of this in 2000,
and competitors have been able to position themselves as more consumer-friendly through a
strategy of keeping branches open.
 The Asia expansion is seen as risky given that Barclays are in a less strong position than banking
industry leaders regarding capitalization, and this may detract investors.

Financial
Report
Finance is the art of passing currency from hand to hand
“

until it finally disappears.”

Annual Report 2010

Note 2010 2009 2008
For the year ended 31st December
s £m £m £m

Continuing operations        

Interest income 2 20,035 21,236 28,010

Interest expense 2 (7,512) (9,318) (16,541)

Net interest income   12,523 11,918 11,469

Fee and commission income 3 10,368 9,946 7,573

Fee and commission expense 3 (1,497) (1,528) (1,082)

Net fee and commission income   8,871 8,418 6,491

Net trading income 4 8,078 7,001 1,339

Net investment income 5 1,477 56 680

Net premiums from insurance contracts   1,137 1,172 1,090

Gains on debt buy-backs and extinguishments   – 1,249 24

Other income   118 140 343

Total income   32,204 29,954 21,436

Net claims and benefits incurred on insurance contracts   (764) (831) (237)
 Note 2010 2009 2008
For the year ended 31st December
s £m £m £m

Total income net of insurance claims   31,440 29,123 21,199

Impairment charges and other credit provisions 6 (5,672) (8,071) (5,419)

Net income   25,768 21,052 15,780

(11,916
Staff costs 7 (9,948) (7,204)
)

Administration and general expenses 8 (6,585) (5,560) (5,193)

Depreciation of property, plant and equipment 20 (790) (759) (606)

Amortisation of intangible assets 19 (437) (447) (276)

Impairment of goodwill 19 (243) (1) (112)

(19,971 (16,715
Operating expenses   (13,391)
) )

Share of post-tax results of associates and joint ventures   58 34 14

Profit on disposal of subsidiaries, associates and joint ventures 33 81 188 327

Gain on acquisitions 35 129 26 2,406

Profit before tax from continuing operations   6,065 4,585 5,136

Tax 9 (1,516) (1,074) (453)

Profit after tax from continuing operations   4,549 3,511 4,683

Profit for the year from discontinued operations, including gain

34 – 6,777 604
on disposal

Profit after tax   4,549 10,288 5,287

Profit attributable to equity holders of the Parent from:        

Continuing operations   3,564 2,628 3,795

Discontinued operations   – 6,765 587

Total   3,564 9,393 4,382

Profit attributable to non-controlling interests 31 985 895 905

 Note 2010 2009 2008
For the year ended 31st December
s £m £m £m

Earnings per share   p p p

Basic earnings per share 10 30.4 86.2 59.3

Basic earnings per share – continuing operations 10 30.4 24.1 51.4

Basic earnings per share – discontinued operations 10 – 62.1 7.9

Diluted earnings per share 10 28.5 81.6 57.5

Diluted earnings per share – continuing operations 10 28.5 22.7 49.8

Diluted earnings per share – discontinued operations 10 – 58.9 7.7

Interim dividend per ordinary share   3.0 1.0 11.5

Final dividend per ordinary share 11 2.5 1.5 –

    £m £m £m

Interim dividend paid 11 355 113 906

Final dividend 11 298 176 –