Barclays Wealth remains confident it is on
track to deliver its 2013 business targets despite a drop in profit
before tax in the first six months of 2011.
Barclays Wealth chief executive Tom Kalaris
reiterated that by 2013 the UK wealth manager wants to have net
revenues of £2.3bn, a cost income ratio of <80% and a return on
average equity (RoE) of 17-18%.
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The pre-tax profit of Barclays’ wealth arm for
the first half of this year stood at £88m ($143m) as at 30 June,
down 7% compared to £95m for the same period a year earlier.
The bank said that the results were offset by
increased investment in the growth of its business.
AUM and business investment
up
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By GlobalDataTotal client assets, including customer
deposits and client investments, reached £170bn as at 30 June 2011,
compared to £164bn at the end of the second half of 2010.
Net new money stood at £4bn, representing a 3%
increase since 31 December.
Barclays’ RoE was 10%, unchanged since 2010,
and below its 2013 commitment to bringing to RoE to 13% by
2013.
Barclays’ investment programme aimed at
growing its wealth segment, Project Gamma, received £44m worth of
investments compared to £33m a year earlier. In April the bank said
it would invest £100m this year in the Gamma project.
Project Gamma is Barclays’s £350m investment
in its technology, people and platforms which is aimed at making
it one of the world’s top three wealth managers in the
next four to five years.
