Barclays’ wealth and investment management unit reported a 52% increase in full-year profit before tax (PBT) to £315m ($491m) and a 13% increase in client assets to £186bn ($290bn).

The results were principally driven by a raise in net new assets in the high net worth (HNW) business, the bank said.

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The UK bank also reported total income growth of 4% to £1,815m ($2,830m). Return on average equity improved slightly from 10.9% in 2011 to 13.9% in 2012.

The wealth unit’s cost-income ratio in 2012 was 81%, lower than the 86% in 2011. Group chief executive, Antony Jenkins, said today that the aim is to deliver a group-wide cost-income ratio in the mid 50s by 2015.

 

Review highlights wealth as "high-return"

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Alongside the results, Barclays delivered the results of its strategic review, Transform, which included announcing the closure of its controversial structured capital markets (SCM) unit.

Barclays strongly denied any link between the SCM unit and its wealth business.

The review also underlined the bank’s continued investment in high-return businesses, including wealth, UK mortgages and Barclaycard. Further announcements about the level of investment are expected when its half year results are published, the bank said.

There was no indication how this investment would impact its current £350m ($545m) investment programme Gamma.

 

Making Barclays the ‘go-to’ bank: Jenkins

The bank launched Gamma in April 2010 with the aim of growing its wealth segment and making the bank one of the world’s top three wealth managers in the next four to five years.

In 2013, Gamma will celebrate its third anniversary which will be accompanied by further investments to be determined towards the middle of this year.

In the full-year announcement, Jenkins said the group wants to establish Barclays as one of the world’s leading wealth and investment advisers.

"Becoming a ‘go-to’ bank is a 5 to 10 years journey. […] It may seem long to some of you, but it’s realistic," he said.