People, markets and performance Group performance – Making a today business by business difference Pages 2-3 Business review Corporate Pages 5-11 responsibility Earn, invest and grow Page 16 Group Chief Executive’s review Page 4

Annual Review Delivering growth

Marcus Agius Chairman Barclays PLC

arclays had an excellent 2006. tax increased from £2.5bn to £7.1bn during for most of his career. He will succeed Profit before tax rose by 35%, his time with the Group and Barclays would Naguib Kheraj who will be leaving the Board with outstanding performances not be in the strong position it is today on 31st March 2007. Naguib has made an from Barclays Capital and without his contribution. I look forward to outstanding contribution to Barclays, for Barclays Global Investors. Of working with the Board and the executive 2006 was an which we are most grateful. We wish him particular note is the continued team to build on this platform and continue well for the future. Bturnaround in UK Retail Banking, which this to take Barclays forward. excellent year year delivered very strong growth along Responsible banking with UK Business Banking. We also saw a Corporate governance with a total A key objective of the Board is for Barclays very strong performance from Absa, in its As Chairman, it is my responsibility to to be a leader in the area of corporate first full year contribution and are ahead ensure that the highest standards of shareholder responsibility. 2006 saw significant of plan in delivering the income and cost corporate governance are in place and I am progress towards this objective. synergies from the acquisition. committed to maintaining Barclays strong return of 25% We continued to give high priority to Profit before tax at reputation in this area. financial inclusion and improving access decreased as good income growth was 2006 saw a number of Board changes. to banking services and affordable credit. offset by higher impairment charges On the executive side, Frits Seegers joined The number of UK Cash Card accounts and increased costs from the continued Barclays as a Director and Chief Executive designed for low income and vulnerable development of the international of Global Retail and Commercial Banking people increased by 22% to 464,000, businesses. We started to see in the second in July. Gary Hoffman, who was Chairman while Absa remains the leading bank half of 2006 the benefit of the actions taken of UK Banking and of Barclaycard, was provider of Mzansi basic bank accounts to address the deterioration in the UK appointed as Group Vice Chairman. and launched an innovative new service consumer credit environment. He is accountable for a range of issues, to help beneficiaries of social grants. The Group declared a final dividend including corporate responsibility, public In terms of environmental management, for the year of 20.5p per share, making policy and equality and diversity. David Barclays UK operations are now carbon a total payment for the year of 31p, Roberts, previously Chief Executive of neutral. Our involvement in the Business an increase of 17%. We delivered a International Retail and Commercial nine years. Bob Steel resigned as a Leaders’ Initiative on Human Rights total shareholder return (share price Banking, left Barclays at the end of the year. Director, following his appointment as continues and we retain membership appreciation plus reinvested dividend I would like to thank David for his significant Under Secretary of the Treasury of the of the Dow Jones Sustainability and payments) of 25% for the year. contribution to the Group. United States of America. FTSE4Good ethical indices. We achieved The strong performance for the year On the non-executive side, Finally, Chris Lucas will be joining the third position in the Business in the is a tribute to the immense contribution joined the Board as previously reported. Group and the Board on 1st April 2007 Community Corporate Responsibility Index. made by my predecessor, , Fulvio is Chief Executive Officer of SpA, as Group Finance Director. Chris was Full details are contained in our eighth initially as Chief Executive and the Italian energy group. Sir David Arculus previously with PricewaterhouseCoopers Corporate Responsibility report, and at subsequently as Chairman. Profit before retired from the Board after serving for and has worked across financial services www.barclays.com/corporateresponsibility.

Increase in income 25% Rise in profit before tax 35% Earnings per share up 32% Full year dividend per share up 17% £21,595m £7,136m 71.9 p 31.0 p 2 Barclays today Barclays PLC Annual Review 2006

2006 was a year A genuinely new Barclays today of success for our idea for credit cards mortgage business in the UK Woolwich Flexi-Rate™ Page 5 Page 7

Canada Barclays Capital BGI

USA Barclaycard John Varley Group Chief Executive Barclays PLC Barclays Capital BGI

We are committed to building a leading universal The Caribbean Mexico bank and we’re already one of the largest Barclays Capital financial services companies in the world by market capitalisation. Brazil Barclays Capital Operating in over 50 countries and employing 123,000 people, we move, lend, invest and protect money for over 27 million customers and clients the world over. Our business purpose is to help our customers and clients achieve their objectives. Our goal is Argentina to deliver top quartile total shareholder return Barclays Capital relative to our peers, consistently over time.

Global Retail and Commercial Banking

Frits Seegers Chief Executive Global Retail and Commercial Banking

UK Banking – Profit before tax £2,578m Barclaycard International Retail and Commercial Banking (IRCB) UK Retail Banking UK Business Banking Chief Executive Steve Booysen Absa Deanna Oppenheimer Chris Grigg Leo Salom Western Europe Chief Executive Chief Executive Ahmed Khizer Khan Emerging Markets

Profit before tax Profit before tax Profit before tax Profit before tax £1,213 m £1,365m £382m £1,270m • Personal Customers • Larger Business • UK Cards and Loans • Absa • Home Finance • Medium Business • Barclaycard Business • Western Europe • UK Premier • Asset and Sales Finance • Barclaycard International • Emerging Markets • Local Business

Cover Chairman’s statement 12 Summary financial statement 17 Summary corporate governance report Contents 2 Barclays today 12 Independent auditors’ statement 18 Summary remuneration report 4 Group Chief Executive’s review 14 Board and Executive Committee 20 Shareholder support 5 Business review 16 Corporate responsibility review Barclays PLC Annual Review 2006 Barclays today 3

Investing for Sponsoring a state- The largest multi- A commitment to future growth of-the-art sports and commodity exchange- delivering world-class New markets entertainment arena traded product on the products and services Page 8 in New York market Barclays Wealth iPath Page 11 Page 9 Page 10

Sweden Barclaycard

Norway UK Barclaycard UK Banking and all other businesses

Isle of Man Barclays Wealth Denmark Ireland China Barclaycard UK Banking Barclays Capital Netherlands Barclays Capital Barclays Capital Jersey/Guernsey Germany Japan BGI Barclays Wealth Barclaycard Barclays Capital France Switzerland Barclays Capital BGI IRCB Barclays Capital BGI South Korea Barclays Capital Luxembourg BGI Barclays Wealth Barclays Capital Barclays Capital Spain Italy Taiwan Barclaycard Barclaycard Barclays Capital Portugal Monaco IRCB IRCB Barclaycard Barclays Wealth Barclays Capital Barclays Capital Cyprus Hong Kong Barclays Wealth IRCB Barclays Wealth Barclays Capital Malta Barclays Barclays Capital Wealth BGI Gibraltar Barclays Wealth Barclays Wealth Barclays Wealth Thailand United Arab Emirates Egypt Barclays Capital India Barclaycard Barclaycard Barclaycard IRCB IRCB Barclays Capital IRCB Uganda Barclays Wealth Barclays Capital IRCB Malaysia Kenya Barclays Capital Ghana Barclaycard IRCB IRCB Barclays Wealth Nigeria Barclays Wealth Tanzania Seychelles Singapore IRCB Barclaycard Angola Barclaycard Barclays Wealth IRCB IRCB Barclays Capital Zambia BGI Indonesia Barclaycard Barclays Wealth Mauritius Barclays Capital IRCB Barclaycard Botswana IRCB Barclaycard Mozambique IRCB IRCB Australia South Africa Zimbabwe Barclays Capital Barclaycard IRCB BGI IRCB Barclays Capital Barclays Wealth

Full Annual Report Investment Banking and Please note that this Annual Review and Summary Financial Statement does not contain sufficient information to allow a full understanding of the Investment Management results of the Group and the state of affairs of the Company or of the Group. For further information consult the President Barclays PLC and Chief Executive Annual Report 2006. Investment Banking and Investment Management You can obtain a copy of the Annual Report 2006 and may also elect to receive all future Annual Reports, free of charge, by telephoning our Registrar on Barclays Capital Barclays Global Investors (BGI) Barclays Wealth 0870 609 4535 or you can view a copy Grant Kvalheim Blake Grossman Tom Kalaris on our Investor Relations website at: Jerry del Missier Chief Executive Chief Executive www.investorrelations.barclays.com Co-Presidents The Annual Report 2006 contains the Directors’ report, the Remuneration report, and the Auditors’ report and the audited accounts. Profit before tax Profit before tax Profit before tax The Auditors’ report on the full accounts for the year ended m m m 31st December 2006 was unqualified and did not include a statement under £2,216 £714 £213 sections 237(2) (accounting records or returns inadequate or accounts not •Rates • Asset Management • International and Private Banking agreeing with records and returns) or • Credit • Financial Planning 237(3) (failure to obtain necessary • Private Equity • Investment Services information and explanations) of the • Absa Capital • Brokerage UK Companies Act 1985.

This document contains certain forward-looking statements within the meaning of growth in the banking and financial markets, projected costs, estimates of capital achievement of synergy targets related to Absa, the outcome of pending and future Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A expenditures, and plans and objectives for future operations. litigation, and the impact of competition – a number of which factors are beyond the of the US Securities Act of 1933, as amended, with respect to certain of the Group’s By their nature, forward-looking statements involve risk and uncertainty because Group’s control. As a result, the Group’s actual future results may differ materially from plans and its current goals and expectations relating to its future financial condition they relate to future events and circumstances, including, but not limited to, the further the plans, goals, and expectations set forth in the Group’s forward-looking statements. and performance. These forward-looking statements can be identified by the fact that development of standards and interpretations under IFRS applicable to past, current Any forward-looking statements made by or on behalf of Barclays speak only as of the they do not relate only to historical or current facts. Forward-looking statements and future periods, evolving practices with regard to the interpretation and application date they are made. Barclays does not undertake to update forward-looking sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, of standards under IFRS, as well as UK domestic and global economic and business statements to reflect any changes in Barclays expectations with regard thereto or any ‘plan’, ‘goal’, ‘believe’, or other words of similar meaning. Examples of forward-looking conditions, market related risks such as changes in interest rates and exchange rates, changes in events, conditions or circumstances on which any such statement is based. statements include, among others, statements regarding the Group’s future financial the policies and actions of governmental and regulatory authorities, changes in The reader should, however, consult any additional disclosures that Barclays has made position, income growth, impairment charges, business strategy, projected levels of legislation, progress in the integration of Absa into the Group’s business and the or may make in documents it has filed or may file with the SEC. 4 Group Chief Executive’s review

Financial highlights Income Profit before tax Earnings per share Dividend per share Year end share price £m £m pence pence pence 730 31.0 71.9 7,136 611 26.6 21,595 54.4 5,280 17,333

05 06 05 06 05 06 05 06 05 06 Group Chief Executive’s review

Delivering on our strategy

John Varley Group Chief Executive Barclays PLC

start this review by thanking the world in another. This GRCB structure risk weighted assets and the associated 123,000 employees of the Barclays mirrors the organisation of Investment consumption of capital; and income Group, whose dedication and creativity Banking and Investment Management growth exceeded cost growth by five helped us achieve record results in under Bob Diamond, which includes percentage points. 2006. Our strategy of ‘earn, invest and our strategy of Barclays Capital, Barclays Global Investors grow’ continued to deliver very strong and Barclays Wealth, and also gives a single Outlook Igrowth in profits. Our ambition is to earn, invest and point of strategic direction and control to a We enter 2007 with strong income become one of the handful of universal group of global businesses which enjoy momentum in Barclays, driven by high banks leading the global financial services grow continued substantial synergies. levels of customer activity and good risk industry. I believe the universal banking control. The global economic outlook model is helping us drive the higher growth to deliver strong Group performance continues to be positive and we are well for shareholders that I set out to achieve We made substantial progress on our positioned to capture further growth in three years ago, by providing us with new growth in profits strategic priorities and delivered record the years ahead. options in products, services and markets. financial results. Profit before tax increased In our business, strategy simply 35% to £7,136m. Earnings per share rose stated is anticipation followed by service: 32% to 71.9p, and economic profit was up It’s your choice we anticipate the needs of customers and 54% to £2,704m. We increased the total clients. We then serve them, by helping dividend payout to 31p, a rise of 17%. them achieve their goals. Income grew 25% to £21,595m, well The needs of customers and clients are ahead of expense growth of 20%. The changing. The drivers of change include: growth was broadly based by business and the privatisation of welfare; wealth geography, reflecting momentum in each generation and wealth transfer; explosive business. Approximately half our profits growth in demand for banking products in came from outside the UK, up from about emerging markets; the securitisation of 30% in 2003. assets and cash flows; the use of Operating expenses increased 20% to derivatives in risk management; the £12,674m. The Group cost:income ratio significant growth in the use of credit cards improved two percentage points to 59%. for payment and borrowing; and the Impairment charges rose 37% to An increasing number of shareholders opportunity for capital markets and private £2,154m. The increase was mostly are choosing to communicate via email equity to fund infrastructure development attributable to the challenging credit and manage their Barclays shareholding around the world. environment in UK unsecured retail online by logging onto Barclays e-view. To capitalise on these sources lending which was partly due to the This year we are updating our of growth, I have put a new continued rise in the level of Articles of Association to allow us to structure in place by creating personal insolvencies. In the second communicate with you electronically Global Retail and Commercial half of 2006, as a result of a number by putting shareholder documents on Banking (GRCB) under the of management actions, flows into our website. This is as a result of the leadership of Frits Seegers, who joined delinquency decreased and arrears balances Companies Act 2006, which allows Barclays in July 2006. GRCB brings declined across the UK cards and unsecured companies to provide their Annual together: UK Banking, International Retail loans portfolios. We therefore believe that Report and Annual Review electronically and Commercial Banking and Barclaycard. we passed the worst in Barclaycard UK rather than by post. Later this year we GRCB gives Barclays a single point of impairment in the second half of 2006. will write to ask you if you would like to strategic direction and control to these When I look at these results, I am pleased continue to receive the Annual Review by businesses, thereby increasing our to see increased productivity in our use of post or if you would prefer to access it on capability to drive growth and synergies capital, risk and costs. Return on average the internet. This gives you greater choice globally and to enter new markets. shareholders’ funds improved four about the documents you receive and We believe this will enable us to percentage points to 25%; profits grew how you receive them. replicate success from one part of the much faster than Daily Value at Risk and Barclays PLC Annual Review 2006 Business review 5

Income up 7% Profit before tax up 17%Contribution to Group profit Performance 2006 2005 £m £m Income 3,828 3,586 m m % Impairment charge (209) (150) Operating expenses (2,408) (2,390) Associates and £3,828 £1,213 17 joint ventures 2 (6) Profit before tax 1,213 1,040

Global Retail and Commercial Banking UK Retail Banking

Building the best retail bank in the UK

Deanna Oppenheimer Chief Executive UK Retail Banking

ur UK Retail Banking We have taken full advantage of business provides a wide favourable market conditions this year range of products and growing our market share across a More mortgages services to personal and number of product areas. smaller (local) business the UK retail bank 2006 was a year of real success for our customers, including The year in review mortgage business. We invested more in Ocurrent accounts, savings and investment transformation is We believe that the UK Retail Banking marketing and advertising our range of products, Woolwich branded mortgages transformation is well under way. Profit products, as well as launching pioneering and general insurance. More affluent well under way before tax increased 17%, and a 7% rise in new ones like ’s new 10-year customers are provided with investment total income to £3,828m reflects growth in fixed rate and Lifetime Tracker mortgages. products and advice through Premier deposits, mortgage and loan balances as It was great to see our products banking. 33,000 people are employed in well as current accounts which increased featuring so regularly in the Best Buy this business providing customer service by 375,000 during the year. Costs tables in the national newspapers – in May and developing products. We have remained steady at £2,408m with gains we were included in ten different tables in registered higher levels of employee from the sale and leaseback of property the same weekend. satisfaction, and strengthened our being substantially reinvested in the The Woolwich also won the Your Money management team in the year. business to improve customer service. magazine award for Best Mortgage Our strategy in the UK is simple: to One of our key priorities in 2006 was Provider, and the Your Mortgage award for become the best retail bank in the country. improving the performance of our mortgage Best First Time Buyer Mortgage Lender. We will aim to do this by putting customers business. In February 2006 we took back at the heart of our business, improving control of the servicing of our mortgage our operations and levels of service, and book, and since then we have made Need a bigger place? developing new products that meet our significant improvements in our processes; Or just a better mortgage deal? customers’ needs in a changing world. online customers every day. Achieving our for example, the average time taken to get a We are also extending our online and ultimate goal will take time, but we have mortgage offer out to a customer has been telephone banking, so that customers can accelerated the rate of investment in the last cut considerably. We have also put a bank with us in the way that best suits year, and the business has made excellent renewed effort behind marketing our them – we already service around 480,000 progress during that time. mortgages and developed new products – see ‘making more of mortgages’. The result has been a significant rise in new lending, and a greater share of net lending in the mortgage market. Our average savings book has also grown this year, up 8% on 2005. Here too we have introduced new products, and attracted an extra 180,000 savings accounts during the year. The number of household insurance policies increased by 2 Year Fixed Rate Mortgage 34% to 825,000. UK Retail Banking has also worked hard at building links with other parts of the Group, both to develop new business opportunities, and to ensure that customers with wider needs get the best possible service from us. For example, we now have a new A part of this programme is the full process for referring Premier banking integration of the Woolwich network into customers to Barclays Wealth, which can Barclays-branded branches, which will offer more complex financial planning and take place during 2007. The aim behind investment advice. this is to give both sets of customers a The ongoing programme to enhance better service, with more modern branches the branch network continued in 2006. in the most convenient locations. As the 200 branches were refurbished during the programme gets under way we are year, and there are now award-winning ensuring that we communicate fully to all self-service terminals in over 400 branches. customers affected by the changes. 6 Business review Barclays PLC Annual Review 2006

Income up 11% Profit before tax up 18% Contribution to Group profit Performance 2006 2005 £m £m Income 2,395 2,159 m m % Impairment charge (252) (177) Operating expenses (857) (825) Associates and £2,395 £1,365 19 joint ventures 79 3 Profit before tax 1,365 1,160

Global Retail and Commercial Banking UK Business Banking

Continued strong growth

Chris Grigg Chief Executive UK Business Banking

K Business Banking provides medium business clients a product set relationship banking to larger of greater flexibility and depth, notably and medium business in the areas of foreign exchange and Cash management customers via a network of derivative solutions. Compared to 2005, relationship and industry our relationship we increased our foreign exchange solutions sector specialists. Additionally, derivative business with medium UBarclays Asset and Sales Finance – a strength provides business customers by 200% specialist division within UK Business in 2006. Banking – provides asset financing and the fuel to improve We continue to hold a strong position leasing solutions. Our relationships with in asset finance, and Business Moneyfacts other parts of the Barclays Group, notably and deliver voted us ‘Best Leasing and Asset Finance Barclays Capital, enable customers to Provider’ for the sixth year running. Iveco benefit from our international and capital greater value Finance, the commercial vehicle finance markets expertise. business we bought in 2005, helped Our ambition is to be the number one for customers cement this position by performing well December 2006 saw global telecoms commercial bank in the UK. We will do this and contributing £23m. provider BT migrate its cash management by putting the customer first in all that we mandate for its UK Group operations to do: ensuring that our operations, industry Barclays in what was one of the largest UK knowledge, service levels and product cash management deals of recent years. range are wholly relevant to meeting The mandate is for five years and customers’ needs. includes all areas of payments and collections, liquidity management, The year in review electronic reporting and systems Leveraging good market conditions, UK integration. BT will utilise Barclays suite Business Banking had another year of of payment and cash management strong growth in 2006. Profit before tax solutions, and access the combined increased by 18% to £1,365m, and income expertise of Barclays Multinational rose 11% on the back of good balance Corporate and International Trade and sheet growth. Costs increased 4% – Cash teams. reflecting higher volumes and the recruitment of front line staff – with approximately half the gains from sale and Operationally, we have continued to leaseback of property being reinvested in develop our technology platform, with the business to improve customer service. 2006 investment increasing substantially We maintained our market share of compared to 2005. Testament to this, primary customer relationships, improved our Gadbrook Park service centre – which our cost:income ratio by two percentage provides support for Electronic Banking, points to 36% and made a 19% Payments, and Cash Management contribution to Group profit. solutions to all UK Business Banking Strong affiliation with customers remains customers – was awarded ‘Employer of the the bedrock of our approach. We worked Year’ in the 2006 National Business Awards. hard throughout the year to strengthen our To continue to improve customer service capability to serve by investing in talent at all and efficiency, we are in the process of levels of the business. consolidating our medium business Consequently, during 2006 our larger servicing and operations sites to a smaller business customers have consistently number of centres of excellence. ranked Barclays as number one in the Looking ahead, we will continue to invest market for Relationship Director and significantly in operations, technology and Relationship Support Manager satisfaction talent to ensure that our offering remains and industry knowledge. We increased the relevant to customers. number of customers we serve from We will drive sustainable financial 144,000 in 2005 to 150,000 in 2006. performance by expanding into new markets Building closer links with Barclays and increasing our share of those where we Capital enabled us to offer larger and Relationship Director, Alison McGregor at the Kwik-Fit outlet in Paisley, Scotland believe we have a competitive advantage. Barclays PLC Annual Review 2006 Business review 7

Income up 8% Profit before tax down 40% Contribution to Group profit Performance 2006 2005 £m £m Income 2,937 2,715 m m % Impairment charge (1,493) (1,098) Operating expenses (1,054) (978) Associates and £2,937 £382 5 joint ventures (8) 1 Profit before tax 382 640

Global Retail and Commercial Banking Barclaycard

Accelerating international growth

Antony Jenkins Chief Executive Barclaycard

ur Barclaycard business is a businesses and has an increasing presence higher impairment charges and increased impairment in the second half of 2006. multi-brand credit card and in the United States, employing 8,600 costs from the continued development There has also been a review of some consumer loans business people globally. of the international businesses. Income grew partnerships businesses and lending to which also processes card We now have more than 17.3 million 8% to £2,937m broadly reflecting increased higher risk customers. An operational review payments for retailers and cards in issue, and see the future in terms consumer lending and growth internationally. is also under way, to improve efficiency and merchants and issues credit of continued global expansion. Impairment charges increased 36% to enhance Barclaycard’s ability to provide the Oand charge cards to corporate customers £1,493m. The increase was driven by a rise in best service to customers, wherever they and the UK Government. The year in review delinquent balances and increased numbers are in the world. Barclaycard was the UK’s first credit card, 2006 was a year of contrasts, with a tough of bankruptcies and Individual Voluntary We published our own report, ‘Exercising launched 40 years ago. Since then it has environment in the UK, but more positive Arrangements. As a result of management Responsibility in Lending’ and improved become one of the most successful and market conditions elsewhere. Profit before action to tighten lending criteria and improve the quantity and clarity of our product international cards in the world. Barclaycard tax decreased 40% to £382m as good collections, the flows of new delinquencies information, so that customers can make is one of Europe’s leading credit card income growth was more than offset by have reduced, levels of arrears balances have better and more informed decisions about declined and credit performance is ™ improving. Costs increased 8% to £1,054m Introducing Flexi-Rate largely as a result of continued investment in Barclaycard US and the development of UK partnerships. Our international markets are at the heart three out of every of our growth strategy. We now have cards in issue in over 16 countries around the four new cards world. Three out of every four new cards we issue are now outside the UK. The number we issue are now of Barclaycard customers in these markets grew by 53% last year. But each of these outside the UK markets is different, and the key to our success has been to adapt our strategy to local conditions. In the US, we have launched partnerships with US Airways, Travelocity, Jo-Ann Stores and Barnes and Noble, the world’s largest bookseller. By contrast, our approach in many continental European countries has been to collaborate with partner banks to develop new opportunities: one of our most successful deals has been ‘Entercard’, the Scandinavian joint venture we launched with Swedbank in 2005. Entercard launched their accounts. Of the five awards won by its first new product in 2006, backed by an Barclaycard this year, we are particularly extensive television, internet, and billboard proud of the one won by Barclaycard advertising campaign in Sweden. In 2006 we Horizons for the best corporate responsibility also established a new card deal with Caja programme. Horizons is a unique Asturias, the Spanish savings bank. programme to help disadvantaged lone As the consumer lending market in the parents make the transition out of debt The new Barclaycard Flexi-Rate™ is a of their credit. Taking out a Flexi-Rate™ UK changes, Barclaycard is repositioning its and poverty. genuinely new idea for credit cards in the card enables customers to control their business to achieve sustainable, profitable We extended our portfolio of joint UK, giving customers an in-built incentive interest rate and with the right repayment growth. Higher borrowing by UK consumers, venture partnerships in the UK, adding to to manage their finances responsibly. behaviour this could be as low as 9.9%. lower disposable household incomes and a the successful existing agreement with Sky. Flexi-Rate™ charges a lower interest Flexi-Rate™ won two awards at the tougher regulatory environment have seen We have also just signed a pioneering new rate to those customers who pay off a 2007 Credit Card Awards – Best New Barclaycard take a number of actions. The deal to develop a combined Barclaycard higher proportion of their balance, Credit Card Product of the year and Best business focused on tighter lending criteria and Oyster card – the electronic travelcard encouraging a quicker repayment of Industry Innovation of the Year. and improved collections throughout 2006 used by millions of Londoners every day. balances and reducing the overall cost and, as a consequence, we believe we Barclaycard now has over 110 co-branded passed the worst in Barclaycard UK cards in issue in the UK and internationally. 8 Business review Barclays PLC Annual Review 2006

Income up 68% Profit before tax up 101% Contribution to Group profit Performance 2006 2005 £m £m Income 3,337 1,983 m m % Impairment charge (167) (32) Operating expenses (2,196) (1,364) Associates and £3,337 £1,270 18 joint ventures 296 46 Profit before tax 1,270 633

Global Retail and Commercial Banking International Retail and Commercial Banking

Investing for future growth

Steve Booysen Absa Leo Salom Western Europe Ahmed Khizer Khan Emerging Markets

performed strongly, driven by the continued realisation of benefits from Banco Zaragozano, together with good growth in mortgages and assets under management. Collaboration with Barclays Capital enables us to offer our corporate customers in Spain a range of products and advisory services at every stage of their development. Another notable Spanish success has been a range of new mortgage products designed specially for non- residents buying holiday properties. In Italy the Banca Woolwich mortgage business had a very good year, we opened ten new branches and are about to expand our network further with 35 new branches set to open by the end of 2007. We are also expanding our network in Portugal where over 30 new branches opened in 2006. At the same time we have developed a number of special products and services for small and medium sized businesses. In France we have successfully completed the integration of ING Ferri acquired in 2005.

Emerging Markets We see significant potential in emerging markets, which for us include Africa (excluding Absa), the Middle East, India and Indian Ocean. We have established Dubai as a regional headquarters for this growing business. Our long history and experience in Africa nternational Retail and Commercial The year in review Absa is opening up important new opportunities Banking provides Barclays personal and Profit before tax increased £637m to An important task this year was the for us across the continent, and in many corporate customers outside the UK £1,270m reflecting the inclusion of a full integration of Absa, with its 8.3m customers cases we will be able to draw on Absa’s with banking services. The products year’s contribution from International and 34,000 employees, into the Barclays local expertise in commercial, retail and and services offered to customers are Retail and Commercial Banking – Absa of Group. We have made excellent progress investment banking. For example, we are tailored to meet the regulatory and £698m and a gain on the disposal of the with the integration programme and the launching a number of new and innovative Icommercial environments within each interest in FirstCaribbean International Bank realisation of synergy benefits, which are products in our other African markets, country. The business operates in Africa of £247m. well ahead of plan. In 2006, 753m Rand of including mortgages in Ghana and (including Absa), Spain, Portugal, Italy, Excluding Absa and the disposal gain, synergies have been delivered, 453m Rand Botswana, a student account in Uganda, France and the Middle East. International profit before tax was £325m (2005: in excess of the 300m Rand target originally and the ‘La Riba’ Islamic current account Retail and Commercial Banking employs £335m).This reflected good growth in communicated for the period. International in Kenya. We also opened 16 new branches 48,000 people across the world. continental Europe offset by a decline Retail and Commercial Banking – Absa during the year. One of the central elements of Barclays in profits in Africa caused by higher contributed £698m profit before tax to the We are already one of the fastest overall strategy is to grow the proportion impairment, and increased costs reflecting Group in 2006 with a strong performance growing and most profitable banks in Egypt of our earnings generated outside the UK. a step change in the rate of organic from its banking operations spread across and we will soon be offering commercial The acquisition of Absa in 2005 was a investment in the business. all business segments. banking in Qatar which will be our most significant step forward in this respect and Income grew to £3,337m and costs significant expansion in the Middle East the Group’s non-UK profits have now risen increased to £2,196m both largely due to a Western Europe for 30 years. We are also expanding across to approximately 50%, from 30% in 2003. full year’s contribution from International We are making good progress in Europe, Asia with plans to open new branches in International Retail and Commercial Retail and Commercial Banking – Absa. with new branches opening and new India in 2007, and have launched a new Banking contributed significantly to this. products launched. Barclays Spain structured deposit account in Mauritius. Barclays PLC Annual Review 2006 Business review 9

Income up 39% Profit before tax up 55% Contribution to Group profit Performance 2006 2005 £m £m Income 6,267 4,505 m m % Impairment charge (42) (111) Operating expenses (4,009) (2,963) £6,267 £2,216 31 Profit before tax 2,216 1,431

Investment Banking and Investment Management Barclays Capital

Record profits spread across products and geographies

Grant Kvalheim and Jerry del Missier Co-Presidents Barclays Capital

arclays Capital is the world’s globally, including US Equity Derivatives fastest growing investment bank House of the Year (Derivatives Week), Euro providing large corporate, Bond House of the Year (IFR) and Structured Barclays in Brooklyn institutional and government Products House of the Year (Risk magazine). clients with solutions to their Our close relationships with the other In January 2007 Barclays announced a financing and risk management businesses within the Investment Banking strategic marketing partnership with the Nets Bneeds. Profit before tax has almost doubled and Investment Management division basketball team that includes the 20-year since 2004 and net income has trebled over allowed us to benefit from synergies. naming rights to the the last five years. Our deliberate focus on We have doubled our sales of structured Barclays Center, the areas with the most opportunity has been products to Barclays Wealth clients. planned centrepiece rewarded with almost 100% growth in our We are collaborating with Barclays Global of the Atlantic Yards key asset classes over the last three years. Investors on the iPath exchange traded development in In the same timeframe the number of note programme which issued over Brooklyn, New York. employees has grown from 5,900 to 13,200 US$1bn in its first six months. We have This is the planned including over 400 graduates last year. joined forces with Absa in South Africa, new world-class Our people are based close to their clients and together we have already brought the home of the Nets. in 26 countries around the world. largest-ever syndicated loan and the The Barclays Center will feature The year in review a state-of-the-art Barclays Capital turned in a record entertainment performance in 2006. Profit before tax and sports arena, increased 55% to £2,216m, and net designed by Frank income rose by 42%, with good growth Gehry, which geographically and across the product we have been will seat up to range. Return on economic capital was 41%, 20,000 people. which was seven percentage points higher the fastest growing than 2005 and the ratio of compensation costs to net income improved to 49% from investment bank 51% last year. Costs increased 35% but revenue grew faster, so that the ratio of costs since the turn of to net income improved to 64% (2005: 67%). We continued to broaden and deepen the century our client base. Commodities revenues were up 66%, fixed income up 42%, and equities up 139%. Leveraged finance transactions were up 62%, and fees and commissions second-largest convertible bond issue to from bond and loan issuance and private the South African market. equity transactions also grew. We also expect growth across our Our success continues to be recognised key markets with additional great externally. We received more than 40 awards opportunities outside the world’s largest economies, reaping the benefit of our investments in Best Trading Company Mexico, China, India and the Middle East. We also expect to Barclays Capital was recently voted ‘Best see growth across our key asset Trading Company’ in Europe’s carbon classes as we build on our emissions trading scheme by Environmental reputation for innovating and Finance magazine. finding new opportunities in More than 900 companies took part in the market. the annual survey, nominating the leading We will continue to do more brokers, dealers and advisers in emissions business with our clients, allowances, weather derivatives and reflecting the nature of our renewable energy certificates. trusted partnerships and the increase in their activities. 10 Business review Barclays PLC Annual Review 2006

Income up 26% Profit before tax up 32% Contribution to Group profit Performance 2006 2005 £m £m Income 1,665 1,318 m m % Operating expenses (951) (779) Associates and £1,665 £714 10 joint ventures – 1 Profit before tax 714 540

Investment Banking and Investment Management Barclays Global Investors

One of the largest institutional asset managers in the world

Blake Grossman Chief Executive Barclays Global Investors

arclays Global Investors (BGI) Income growth of 26% reflects increases Our Fixed Income division launched several is now one of the largest in management fees and revenue from new products during the year, including a institutional asset managers in securities lending offset by lower incentive synthetic collateralised debt obligation the world. In the past six years it fees. Costs rose 22%, due to continued platform. We also set up a new Strategic has grown client assets under our success to date investment in people, new products and Solutions Group, which will focus on more management by over US$1.0trn, technology as well as a result of higher effective construction and delivery of multi- Band now manages funds for some has been built on an performance-related pay. product solutions to address a broad range 2,900 clients in 52 countries, employing During 2006, we launched a number of of client needs. 2,700 people. understanding of new exchange-traded products, including BGI was named Best Overall Transitions Our success to date has been built on an S&P global sector funds, iPath exchange- Manager by Global Investor magazine, in-depth understanding of the three pillars the three pillars of traded notes, Dow Jones sub-sector funds Global Exchange-Traded Fund Provider of of fund performance – risk, return and cost and various commodity products such the Year by Global Pension magazine, – but we have also gained a reputation for performance – risk, as gold, silver and oil. In October we Fund Manager of the year in Australia the skilled application of meticulous announced the acquisition of Indexchange by Standard & Poor’s and European quantitative investment analysis. return and cost Investment AG, Germany’s leading provider Asset Management Firm of the Year by One of our real strengths has always of exchange-traded funds. Financial News. been in structured investing, where we apply our experience and expertise to develop new products, or create tailor- made investments for particular clients’ needs. Our services in this area include guidance on asset allocation and a framework for using hedge funds, as well as standard investment services such as securities lending and cash management. Through the iShares™ brand we are the market leader in exchange-traded funds, a market that is predicted to reach US$2trn by 2011. Looking ahead, we are continuing to SM focus our resources on areas where we The iPath to success already have a competitive advantage, notably exchange-traded funds and active BGI was one of the first movers in the product management, which currently Exchange Traded Funds (ETFs) market. account for around 39% of our assets, ETFs are index funds which are bought but over 70% of our profits. and sold through stock exchanges. We are also investing aggressively in Their flexibility enables investors to buy businesses and initiatives that we expect to and sell shares through any brokerage be high-growth in the future, which include firm or financial adviser. The market has alternative investments and fixed income. grown from US$5bn to over US$500bn Looking more broadly at the market in in the last ten years, and we still manage which we operate, we see a continued more funds than anyone else – a total of trend towards greater consolidation as US$287bn at the end of 2006. In June, breadth and scale become increasingly BGI and Barclays Capital teamed up to important. At the same time, the exchange- create and sell iPath exchange-traded traded funds market is also becoming more notes, providing access to difficult to competitive, and attracting new players. reach markets. In the six months since launch, iPath The year in review has over US$1.1bn in assets, including the 2006 was another very good year for BGI. largest multi-commodity exchange- Profit before tax increased 32% to £714m traded product on the market: iPath Dow reflecting strong income growth and higher Jones – AIG Commodity Index Total Return operating margins. Assets under ETN with US$835m in assets. management are now more than US$1.8trn. Barclays PLC Annual Review 2006 Business review 11

Income up 12% Profit before tax up 28% Contribution to Group profit Performance 2006 2005 £m £m Income 1,036 922 m m % Impairment charge (2) (2) Operating expenses (821) (754) £1,036 £213 3 Profit before tax 213 166

Investment Banking and Investment Management Barclays Wealth

Our mission: to be the premier European wealth manager

Tom Kalaris Chief Executive Barclays Wealth

arclays Wealth is the UK’s leading under management increasing by over Barclays Global Investors product suite, wealth manager in terms of 68% to £10.1bn. By leveraging Barclays and our relationship with Barclays Capital assets under management and scale and expertise, we can access the enables us to provide clients with the largest retail multi-manager. world’s leading investment managers to institutional-quality products and capital In Barclays Stockbrokers we demographic and create portfolios flexible enough to meet market solutions. We launched over 300 lead the UK market for each individual client’s investment needs. such products in 2006, giving clients Bexecution-only retail brokerage with economic factors We were placed top of the influential access to equities, currencies, commodities over 400,000 accounts. Private Asset Managers’ (PAM) 2006 and interest rates, hedge funds and mutual We craft solutions to meet the needs make the wealth league table, ranking Barclays Wealth as funds in a bespoke and risk controlled way. of our affluent, high net worth and the UK’s leading wealth manager for the 2006 also saw the launch of Investment intermediary clients. Core service offerings management second year in succession. In addition, Notes – tradable structured products listed include private banking, financial planning, Barclays Stockbrokers was voted Broker on the London Stock Exchange. These are asset management, stockbroking, offshore market particularly of the Year in 2006 by both Investors designed for retail investors who want banking and wealth structuring. Chronicle and Shares magazine, and the exposure to more volatile markets, while Our 7,800 people are based in 81 attractive UK private bank was acclaimed Euromoney’s retaining an element of capital protection at locations spread across 18 countries and ‘Best private bank for entrepreneurs’. maturity. Eight Investment Notes have been our mission is: ‘To be the premier European A key differentiator is our ability to introduced to date, with regular launches Wealth Manager, attracting clients through collaborate with other areas of the Barclays planned throughout 2007 and beyond. world-class products, innovative solutions Group. We have unique access to the and outstanding service’. We are investing to develop Barclays Wealth into a truly global and client-centric business committed to the delivery of excellence. Launching Barclays Wealth We are doing this by the application of simple principles: developing outstanding products, hiring the best people and leveraging the strong synergies that exist with Barclays Capital, Barclays Global Investors and UK Retail Banking. Demographic and economic factors continue to make the global market for wealth management particularly attractive. As part of a wider investment in the business, 2006 saw the launch The industry is extraordinarily fragmented of a new corporate identity for Barclays Wealth. This brought four with no one organisation having more distinct business areas under the same integrated, corporate than a 4% market share. With the benefit identity – private banking, investment services, financial planning of the financial strength and global and brokerage. reputation of the Barclays name, together As the business undergoes rapid transformation, it is vital that with the solid foundations laid down in Barclays Wealth builds a clearer market positioning demonstrating 2006, there is an enormous opportunity our commitment to delivering world-class products and services for Barclays Wealth to make a significant to our clients. This distinct new visual identity builds on the value impact in 2007. of core pillars of our brand – the financial strength and global reputation of Barclays name and the innovative thinking and The year in review product of Barclays Capital and Barclays Global Investors. Profit before tax grew strongly to £213m, At the heart of Barclays Wealth is an ability to understand our representing an increase of 28% on 2005. clients' needs in relation to their wealth, and this is exemplified in Total client assets rose to £93bn on the our advertising. By posing the question: ‘Wealth. What’s it to you?’ back of excellent new net asset flows and the campaign builds on the simple but key insight that everyone strong market growth. Income increased has a unique attitude towards wealth – personal dreams, goals by 12% to £1,036m and once again and ambitions. This was further supported by the launch of the our cost:income ratio improved by Barclays Wealth Insights, the first in a series of quarterly reports three percentage points. developed in conjunction with the Economist Intelligence Unit A particular highlight in 2006 was the that aim to provide a definitive picture of what being wealthy rapid growth seen in our Barclays Multi- means in the 21st century. Manager portfolio service with assets 12 Summary Financial Statement and auditors’ statement Barclays PLC Annual Review 2006

Summary Financial Statement Summary consolidated income statement For the year ended 31st December

2006 2005 £m £m Notes

Net interest income 9,143 8,075 A Other income Net fee and commission income 7,177 5,705 Includes net trading income, net investment income, Other incomeA 5,850 4,198 net premiums from insurance contracts. 22,170 Dividends Total income 17,978 The financial statements for the year ended 31st December 2006 Net claims and benefits incurred on insurance contracts (575) (645) do not reflect these dividends, which will be accounted for in shareholders’ funds as an appropriation of retained profits for the Total income net of insurance claims 21,595 17,333 year ending 31st December 2007. The financial statements to Impairment charges (2,154) (1,571) 31st December 2006 include the 2005 final dividend of £1,105m. 19,441 C Earnings per share Net income 15,762 Profit attributable to equity holders of the parent divided by the Operating expenses (12,674) (10,527) average number of shares outstanding during the year. Share of post-tax results of associates and joint ventures 46 45 323 D Diluted earnings per share Profit on disposal of subsidiaries, associates and joint ventures – Profit attributable to equity holders of the parent adjusted for the 7,136 effect of conversion of options granted over certain subsidiary Profit before tax 5,280 entities’ shares divided by the weighted average number of shares Tax (1,941) (1,439) adjusted assuming conversion of all dilutive potential shares. Profit after tax 5,195 3,841

Profit attributable to minority interests 624 394 Profit attributable to equity holders of the parent 4,571 3,447 5,195 3,841

Dividends

Interim dividend 10.50p (2005: 9.20p) £666m £582m Proposed final dividendB 20.50p (2005: 17.40p) £1,307m £1,105m Earnings per shareC 71.9p 54.4p Diluted earnings per shareD 69.8p 52.6p

The Summary consolidated income statement and the Summary consolidated balance sheet on pages 12 and 13 were approved by the Board of Directors on 8th March 2007 and signed on its behalf by .

Independent auditors’ statement to the members of Barclays PLC

We have examined the Summary Financial Statement, which report to you our opinion on the consistency of the summary with the summary financial statement. comprises the summary consolidated income statement, the financial statement within the Annual Review with the full annual This statement, including the opinion, has been prepared for summary consolidated balance sheet, and the summary financial statements, the Remuneration report, and its and only for the company’s members as a body in accordance remuneration report set out on pages 12 and 13 and 18 and 19. compliance with the relevant requirements of section 251 of the with section 251 of the Companies Act 1985 and for no other Companies Act 1985 and the regulations made thereunder. purpose. We do not, in giving this opinion, accept or assume Respective responsibilities of Directors and auditors We also read the other information contained in the Annual responsibility for any other purpose or to any other person The Directors are responsible for preparing the Annual Review in Review and consider the implications for our report if we become to whom this statement is shown or into whose hands it may accordance with United Kingdom law. Our responsibility is to aware of any apparent misstatements or material inconsistencies come save where expressly agreed by our prior consent in writing. Barclays PLC Annual Review 2006 Summary Financial Statement and auditors’ statement 13

Summary consolidated balance sheet As at 31st December

2006 2005 £m £m Notes

AssetsA A Assets Cash and other short-term funds 9,753 5,807 Cash, loans and advances, investments and physical and Trading and financial assets designated at fair value 292,464 251,820 intangible assets which represent the business of the Group. Derivative financial instruments 138,353 136,823 B Liabilities Loans and advances to banks 30,926 31,105 Deposits and customer accounts and other amounts due to Loans and advances to customers 282,300 268,896 outside parties. Available for sale financial investments 51,703 53,497 C Shareholders’ Equity Reverse repurchase agreements and cash collateral on The residual interest of shareholders in the reported amounts of 174,090 the assets of the business after deduction of the claims securities borrowed 160,398 represented by liabilities. Property, plant and equipment 2,492 2,754 Other assets 14,706 13,257 D Minority interests The interests of others in certain subsidiaries of the Group, for Total assets 996,787 924,357 example . LiabilitiesB Deposits and items in the course of collection due to banks 81,783 77,468 Customer accounts 256,754 238,684 Trading and financial liabilities designated at fair value 125,861 104,949 Liabilities to customers under investment contracts 84,637 85,201 Derivative financial instruments 140,697 137,971 Debt securities in issue 111,137 103,328 Repurchase agreements and cash collateral on securities lent 136,956 121,178 Insurance contract liabilities, including unit-linked liabilities 3,878 3,767 Subordinated liabilities 13,786 12,463 Other liabilities 13,908 14,918 Total liabilities 969,397 899,927 Shareholders’ equityC Shareholders’ equity excluding minority interests 19,799 17,426 Minority interestsD 7,591 7,004 Total shareholders’ equity 27,390 24,430 Total liabilities and shareholders’ equity 996,787 924,357

Basis of opinion Opinion We conducted our work in accordance with Bulletin 1999/6, In our opinion the summary financial statement is consistent ‘The auditors’ statement on the Summary Financial Statement’ with the full annual financial statements and the Remuneration PricewaterhouseCoopers LLP issued by the Auditing Practices Board. Our report on the report of Barclays PLC for the year ended 31st December 2006 Chartered Accountants and Company’s full annual financial statements describes the basis of and complies with the applicable requirements of section 251 of Registered Auditors our audit opinion on those financial statements and the the Companies Act 1985, and the regulations made thereunder. 8th March 2007 Remuneration report. 14 Board and Executive Committee Barclays PLC Annual Review 2006

Board and Executive Committee

Marcus Agius Leigh Clifford Dr Danie Cronjé Sir Chairman Age 60 Non-executive Director Age 59 Non-executive Director Age 60 Non-executive Director Age 63 Marcus joined the Board on 1st September 2006 Leigh joined the Board on 1st October 2004. Leigh Danie joined the Board on 1st September 2005 Sir Andrew joined the Board on 1st September and succeeded Matthew Barrett as Chairman has been a Director of Rio Tinto PLC since 1994 following the acquisition by Barclays of a majority 2004. He was previously Managing Director, from 1st January 2007. Marcus is the senior non- and Rio Tinto Limited since 1995 and was stake in Absa, where he is Chairman. Danie joined Financial Management, Reporting and Audit and executive Director of the BBC and was Chairman appointed Chief Executive of the Rio Tinto Group Absa in 1987 and was formerly Deputy Chief Head of the Government Accountancy Service of Lazard in London and a Deputy Chairman of in 2000. He held various roles at Rio Tinto since Executive and Group Chief Executive until 1997. at HM Treasury. He is Professor of Management Lazard LLC until 31st December 2006. He was joining in 1970, including Managing Director of He joined Volkskas in 1975 and held various Practice in Accounting at the London Business formerly Chairman of BAA PLC, a position he Rio Tinto Limited and Chief Executive of the Energy positions in Volkskas Merchant Bank and School and a non-executive Director of the held from 2002 until 20th December 2006. Group. He was a member of the Coal Industry Volkskas Group. Danie will retire as Chairman of Bank of England. Sir Andrew was formerly a Marcus is Trustee to the Board of the Royal Botanic Advisory Board of the International Energy Agency Absa on 1st July 2007 and will leave the Absa non-executive Director and Chairman of MORI Gardens, Kew and Chairman of The Foundation for a number of years and its Chairman from 1998 Board on 31st July 2007. He is a member of the Group Limited. He is also a non-executive Director and Friends of the Royal Botanic Gardens, Kew. to 2000. He was formerly a Director of Freeport- Board Risk Committee. 5 and Vice Chairman of the Tavistock and Portman From 1st January 2007, Marcus became McMoran Copper & Gold Inc. He is a member of NHS Trust and non-executive Chairman of Applied Chairman of the Board Corporate Governance the Board HR and Remuneration Committee. 3 Professor Dame Sandra Dawson Intellectual Capital PLC. Sir Andrew is a member of and Nominations Committee and a member Non-executive Director Age 60 the Board Audit and Board Risk Committees. 7 of the Board HR and Remuneration Committee. 1 Fulvio Conti Sandra joined the Board in March 2003. She is Non-executive Director Age 59 currently KPMG Professor of Management Studies Sir Nigel Rudd, DL Sir Richard Broadbent Fulvio joined the Board on 1st April 2006. Fulvio is at the University of Cambridge and has been Deputy Chairman Senior Independent Director Chief Executive Officer and General Manager of Master of Sidney Sussex College, Cambridge Non-executive Director Age 60 Non-executive Director Age 53 Enel SpA, the Italian energy group, a position since 1999. She is also a Trustee of Oxfam and Sir Nigel joined the Board in February 1996 and Sir Richard joined the Board in September 2003. he has held since May 2005. He became Chief a member of the UK-India Round Table. Until was appointed Deputy Chairman on 1st September He was appointed Senior Independent Director on Financial Officer of Enel SpA in 1999. Fulvio was September 2006, Sandra was Director of the 2004. He is non-executive Chairman of Pendragon 1st September 2004. Sir Richard is Chairman of formerly Chief Financial Officer and General Judge Business School at Cambridge, a position PLC and Alliance Boots PLC and a non-executive Arriva PLC and was previously the Executive Manager of Telecom Italia and between 1996 and she had held since 1995. Sandra has held a range Director of BAe Systems PLC and Sappi Limited. Chairman of HM Customs and Excise from 2000 1998 was General Manager and Chief Financial of non-executive posts in organisations including He is a member of the Board Corporate to 2003. He was formerly a member of the Group Officer of Ferrovie dello Stato, the Italian national Rand Europe (UK), JP Morgan Fleming Claverhouse Governance and Nominations Committee and, Executive Committee of Schroders PLC and a railway. From 1991 to 1993 he was head of the Investment Trust and Riverside Mental Health until 31st December 2006, was Chairman of the non-executive Director of the Securities Institute. accounting, finance, and control department of Trust. She was also a member of the Senior Board HR and Remuneration Committee. Sir Nigel Sir Richard is Chairman of the Board Risk Montecatini and was subsequently in charge of Salaries Review Board. She is a member of the also chairs the Group’s Brand and Reputation Committee and, from 1st January 2007, Chairman finance at Montedison-Compart, overseeing the Board Audit Committee. 6 Committee. 8 of the Board HR and Remuneration Committee. financial restructuring of the group. Fulvio is a He is also a member of the Board Corporate member of the Board Audit Committee. 4 Governance and Nominations Committee. 2

1 2 3 4 5 67 8 Barclays PLC Annual Review 2006 Board and Executive Committee 15

Stephen Russell John Varley Gary Hoffman Chris Lucas Non-executive Director Age 61 Group Chief Executive; Executive Director and Group Vice Chairman Group Finance Director (from 1st April 2007); Stephen joined the Board in October 2000 on member of Executive Committee Age 50 Executive Director Executive Director and member of Executive completion of the acquisition of Woolwich plc. John was appointed as Group Chief Executive on Age 46 Committee from 1st April 2007 Age 46 Stephen was Chief Executive of Boots Group PLC 1st September 2004, prior to which he had been Gary was appointed as Group Vice Chairman Chris will join the Group and the Board from from 2000 until 2003, having worked for Boots Group Deputy Chief Executive from 1st January in July 2006. He was formerly Chairman of UK 1st April 2007 and will succeed Naguib Kheraj as since 1967. Stephen is a trustee of St. John’s 2004. He held the position of Group Finance Banking and of Barclaycard and prior to that was Group Finance Director. Chris joins Barclays from Ambulance and Tommy’s the Baby Charity and is Director from 2000 until the end of 2003. John Chief Executive of Barclaycard. He joined the Board PricewaterhouseCoopers, where he was UK Head on the Council of Nottingham University. Stephen joined the Executive Committee in September on 1st January 2004. As Group Vice Chairman, of Financial Services and Global Head of Banking is Chairman of the Board Audit Committee and is 1996 and was appointed to the Board in June Gary is accountable on the Board for a range of and Capital Markets. He was Global Relationship a member of the Board Risk and Board Corporate 1998. He was Chief Executive of Retail Financial responsibilities including Corporate Responsibility, Partner for Barclays for the 1999-2004 financial Governance and Nominations Committees. 9 Services from 1998 to 2000 and Chairman of the Public Policy, Equality and Diversity, leading the years and subsequently held similar roles for Asset Management Division from 1995 to 1998. Group’s response to the FSA’s Treating Customers other global financial services organisations. Sir John Sunderland He is Chairman of Business Action on Fairly initiative, chairing the Group’s Governance Chris has worked across financial services for Non-executive Director Age 61 Homelessness, President of the Employers’ Forum and Control Committee and franchise health with most of his career, including three years in Sir John joined the Board on 1st June 2005. He has on Disability and a member of the International customers, employees and communities. Gary New York as Head of the US Banking Audit been Chairman of Cadbury Schweppes PLC since Advisory Panel of the Monetary Authority of joined the Group in 1982. Gary is also a non- Practice of PricewaterhouseCoopers. 15 May 2003. Sir John joined Cadbury Schweppes Singapore. John is also a non-executive Director executive Director of Trinity Mirror PLC. 13 in 1968 and was appointed Chief Executive in of AstraZeneca PLC and a Director of Ascot Frederik (Frits) Seegers September 1996. He is Deputy President of the Racecourse. 11 Naguib Kheraj Chief Executive, Global Retail and Commercial CBI, having retired as President on 31st December Group Finance Director; Executive Director Banking; Executive Director and member 2006, and is a former President of both ISBA (the Robert E Diamond Jr and member of Executive Committee Age 42 of Executive Committee Age 48 Incorporated Society of British Advertisers) and the President, Barclays PLC and CEO, Investment Naguib was appointed as Group Finance Director Frits was appointed as Chief Executive of Global Food and Drink Federation. Sir John is a Director of Banking and Investment Management and joined the Board on 1st January 2004. He had Retail and Commercial Banking and became an the Financial Reporting Council, an Adviser to CVC Executive Director and member previously held the positions of Chief Executive of executive Director on 10th July 2006. He is Capital Partners, an Advisory Board Member of of Executive Committee Age 55 Barclays Private Clients, Deputy Chairman of responsible for all Barclays retail and commercial Ian Jones & Partners and of Marakon Associates Bob was appointed President of Barclays PLC and Barclays Global Investors, Global Head of banking operations globally, including UK Banking and an Association Member of BUPA. He is a became an executive Director on 1st June 2005. Investment Banking and Global Chief Operating (Retail and Business), International Retail and member of the Board HR and Remuneration and He is responsible for the Investment Banking Officer at Barclays Capital. He joined the Executive Commercial Banking and Barclaycard. He is also Board Corporate Governance and Nominations and Investment Management business for the Committee in March 2003. Before joining Barclays, a non-executive Director of Absa Group Limited. Committees. 10 Group. He has been a member of the Executive he was a Managing Director and held the post of Frits joined the Board from Citigroup, where he Committee since September 1997. He joined Chief Financial Officer for Europe at Salomon previously held a number of senior positions, most Barclays in July 1996 from CSFB where he was Brothers. Naguib is also a non-executive Director of recently CEO Global Consumer Group with a remit Vice-Chairman and Head of Global Fixed Income Absa Group Limited. Naguib will leave the Board on covering all retail operations in Europe, Middle East and Foreign Exchange. 12 31st March 2007 and will be succeeded by Chris and Africa. He was also a member of the Citigroup Lucas as Group Finance Director. 14 Operating Committee and the Citigroup Management Committee. 16

Paul Idzik Chief Operating Officer; Member of Executive Committee Age 46 Paul joined the Executive Committee and became Chief Operating Officer in November 2004. He is also Chairman of the Group Operating Committee. Paul was formerly Chief Operating Officer of Barclays Capital. He joined Barclays Capital in August 1999 following a career with Booz Allen & Hamilton, where he was a partner and senior member of the Financial Institutions Practice. 17

91011 12 13 14 15 16 17 16 Corporate responsibility review Barclays PLC Annual Review 2006

Corporate responsibility review Responsible banking

We regard corporate responsibility as embodied Corporate responsibility is integrated in our their payments. In Ghana, working with the in the concept of ‘responsible banking’. Based on risk framework through a specific Board traditional Susu banking system, we are the values enshrined in our Guiding Principles, Governance Standard. supporting 80,000 market traders. responsible banking means making informed, reasoned and ethical decisions in everything responsible banking Ethical Indices Responsible lending we do. Our Guiding Principles of Winning We are a member of the Dow Jones We extended the use of summary information Together, Customer Focus, The Best People, means making Sustainability and FTSE4Good ethical on credit card and personal loan applications Pioneering and Trusted describe how we expect indices, and were ranked in 3rd position in and statements to help our customers make our employees to behave with external informed, reasoned, the Business in the Community Corporate informed personal decisions, worked to increase stakeholders and each other. Responsibility Index. In the Carbon Disclosure data sharing with other banks and introduced We make our greatest contribution to society ethical decisions Project, we were ranked in the top 50 of global our Flexi-rate card, offering lower rates to by being a successful and responsible business FT500 companies. customers repaying more of their balance. – by helping our customers meet their financial goals through providing products and services Our customers Environment and climate change that contribute to economic growth, and in We are committed to providing excellent Our UK operations are now carbon-neutral and sustaining healthy financial systems around products and services in accordance with our we are offsetting part of our residual emissions the world. ten established principles for treating customers through community-based sustainable energy Our priorities have been informed by broad fairly. The year saw continued progress in schemes in Africa and India. Our businesses in dialogue with investors, non-governmental improving the level of customer service in South Africa and France achieved ISO14001 organisations, customers, our employees and UK Retail Banking. Across our other businesses, accreditation for their environmental politicians. We focus on the following areas: strong levels of customer and client satisfaction management systems. have been sustained. Barclays Capital remained the most active • Our customers trader of carbon in the EU Emissions Trading • Financial inclusion Financial inclusion Scheme and our Natural Resources Team • Responsible lending Our focus is on improving access to banking financed over 2,600 megawatts of renewable • Environment and climate change and affordable credit in the UK and in Africa. generation capacity. • Supply chain management We increased the number of our Cash Card We contributed to the revision of the Equator • Our employees accounts in the UK by 85,000 to 464,000 and Principles, which require banks to undertake • Community investment remain the largest private sector supporter of detailed environmental and social assessments UK credit unions. in international project financing, and updated Governance In South Africa, Absa opened another our internal guidance to cover over 50 different The Group Chief Executive has primary 13 portable branches, which bring banking industry sectors. Barclays remains the only bank responsibility for embedding ‘responsible services to disadvantaged areas. The Mzansi participating in the Business Leader’s Initiative banking’. The Brand and Reputation Committee, basic bank account showed strong growth and on Human Rights. chaired by the Deputy Chairman, manages Absa’s AllPay and Sekulula services are enabling issues of reputational significance to the Group. 2.3 million social grant beneficiaries to access Supply chain management In 2006, we introduced our Corporate Responsibility Supplier Questionnaire and have, Financing to date, reviewed some 60 of our higher risk suppliers, accounting for approximately £1.5bn renewable of our supply chain spend. energy Our employees Our annual Employee Opinion Survey showed further improvements. 87% of employees Barclays UK operations are now carbon participated, with employee engagement neutral, with over 50% of our requirements improving from 72% to 76%. being supplied from renewable energy We signed an Equality Charter with Amicus in sources – reducing our carbon emissions by the UK. 21% of our senior managers are female 80,000 tonnes in 2007. Over the next five and 6% are from an ethnic minority background. years we plan to increase UK energy Good progress was recorded by Absa, with the efficiency by another 20%, through number of black managers increasing. investment in energy-efficient technology. Visit www.barclays.com/climatechange Community investment for more information. A new global approach has been launched Providing project finance for renewable under the theme of ‘Banking on brighter energy complements Barclays Climate futures’, focusing on financial inclusion Change strategy. Barclays provided £60m of and complementing our business strategy. secured debt finance and hedging facilities to An example of the programme is Barclaycard the 65 megawatt Scout Moor wind farm in Horizons, a three year, £3m investment with Lancashire, the largest project-financed four national partners, aiming to support onshore wind deal in the UK and Ireland 50,000 disadvantaged single parents. signed during 2006. Overall, Barclays Natural Resources Team Further information has provided long-term finance for over 2,600 The Barclays Corporate Responsibility Report megawatts of renewable generating capacity, provides further details on how Barclays fulfils including onshore wind farms, landfill gas its responsibilities to customers, employees, extraction plants, small-scale hydroelectric the environment and the wider community. projects, biomass plants and bio-diesel The 2006 report will be available from conversion plants. 26th April 2007 at the AGM and at www.barclays.com/corporateresponsibility Barclays PLC Annual Review 2006 Summary corporate governance report 17

Summary corporate governance report An open and accountable business

Combined Code on Corporate How do you assess the performance of Balance of non-executive and executive Directors Governance the Board? Chairman For the year ended 31st December 2006, we We carry out an annual review of the Board’s 1 have complied with the provisions set out in effectiveness. This covers the performance of the section 1 of the UK Combined Code on good corporate Board, Board Committees and individual Directors. Corporate Governance (the Code). Some of For 2006, we asked an independent third party to Independent Executive the ways we have applied the principles of the help with the review. It involved each Director non-executive governance is Directors Directors Code in 2006 are described below. You can find filling in a detailed questionnaire, which was 5 our full Corporate Governance Report for 2006 more than just a followed up by an interview to go through their 9 in our 2006 Annual Report, which is available views in more detail. We discussed the results of online at www.investorrelations.barclays.com, statement of the review at our Board meeting in December along with all of the documents we 2006 and decided that we are continuing to mention below. compliance operate effectively. We agreed on some areas for improvement in 2007, including arranging some What does good corporate governance additional training on risk issues and making sure Board allocation of time mean to Barclays? there is enough time at Board meetings for a Other Good corporate governance is more than just a Directors. We also set out what we expect of thorough discussion and exchange of ideas. 11% statement of compliance. We aim to set the executive Directors in their role as Directors, We have put together an action plan to deliver highest standards throughout our organisation rather than in their role as managers these improvements in 2007. Governance Strategy & Risk Formulation and and in everything we do. It is a key part of my of the business. 15% Implementation role as Chairman to maintain the highest Monitoring standards of corporate governance and I What did the Board and Committees 40% inherited a strong legacy from my predecessor do in 2006? as Chairman, Matthew Barrett. The Board and each of its main Committees Financial and Our corporate governance framework, have an annual programme of business. This Operational ‘Corporate Governance in Barclays’, is a is agreed at the start of each year. The chart Performance 34% comprehensive statement of our values and opposite shows how the Board spent its time Marcus Agius how we put them into practice at Barclays. during 2006. Some specific responsibilities Chairman We review this framework annually to make have been delegated to Board Committees. 8th March 2007 sure it remains relevant. Each Board Committee has Terms of Reference, which set out what they are responsible for. How do you decide who becomes A short description of what each Committee a Director? does is set out opposite. Our Board Corporate Governance and Nominations Committee reviews the balance How do you make sure that Directors Our committees and composition of our Board and its main have all the information they need to Committees regularly. This is to make sure we carry out their role? Board Audit Committee have the right balance of Directors and a good It is part of my role as Chairman to make sure Reviews accounting policies and the mix of skills and experience to support our that Directors receive accurate, timely and clear contents of financial reports. Monitors strategy. It also looks at whether we need to information. This is to help the Board take sound disclosure controls and procedures and our refresh the Board and Committees by decisions, monitor effectively and provide internal control environment. Considers the appointing new members. You can find details advice to promote the success of the Group. adequacy and scope of the external and of who is on the Board on pages 14 to 15, As Chairman I work closely with the Company internal audit. Oversees the relationship with along with details of the Board Committees the Secretary to make sure that information flows our external auditors. Directors are members of. The chart opposite to Directors at the right time. During 2006, we shows the current balance of Directors on launched a Directors’ Intranet, which allows Board HR and Remuneration Committee the Board. Directors to access electronic copies of Board Sets the policy for executive Directors’ and We review the independence of our non- papers, reports, minutes and other key senior executives’ remuneration. Approves executive Directors each year and consider all of documents quickly and securely via a dedicated individual remuneration awards. Agrees our non-executive Directors to be independent. private network. All Directors can also make use changes to senior executive incentive and You can find more details of our review of of the services of the Company Secretary and his benefits plans. Governs employee share independence in the 2006 Annual Report. team. Independent professional advice is also schemes. Looks at strategic HR issues. available, on request, at the Company’s expense. What is the Board’s role? All new Directors go through a Board Corporate Governance and The Board is responsible to shareholders for comprehensive induction programme when Nominations Committee creating and sustaining shareholder value they join the Board or a Board Committee. Reviews the composition of Board. through the management of the Group’s This programme is discussed with the Director Recommends appointment of new Directors. businesses. To do this, we meet regularly in advance so that it suits their individual needs. Considers succession plans for Chairman throughout the year and have a formal Extra training and updates for Directors are also and Group Chief Executive positions. Monitors schedule of matters that only the Board can arranged on an ongoing basis. We started a corporate governance issues. Oversees the deal with. two-year programme of business training for annual Board performance review. We have delegated responsibility for the day non-executive Directors in 2006 and some to day management of the Group to the Group further sessions are planned for 2007. Board Risk Committee Chief Executive, who is supported by the We also aim to hold some of our Board Approves total level of risk we are prepared Executive Committee. meetings away from our global headquarters. to take (risk appetite). Sets limits for We have a ‘Charter of Expectations’ which This allows Directors to meet our front line individual types of risk, e.g. credit risk, sets out the role profiles for each of the main staff and see our operations at first hand. market risk. Monitors our risk profile. positions on the Board. This includes my role Non-executive Directors also make site Obtains assurance that principal risks have as Chairman, plus the roles of the Deputy visits individually and can contact senior been properly identified and are being Chairman, the Senior Independent Director, management directly on particular areas appropriately managed. Committee Chairmen and non-executive of interest. 18 Summary remuneration report Barclays PLC Annual Review 2006

Summary remuneration report

Remuneration report • ensure, both internally and externally, that in share plans that we have operated in This is our Summary remuneration report for remuneration policies and programmes are previous years. No options were granted to 2006, presented by Sir Richard Broadbent, transparent, well communicated, easily executive Directors under these plans in 2006. Chairman of the Board HR and Remuneration understood and aligned with the interests Robert E Diamond Jr is also a participant in the Committee. You can find our full Remuneration Barclays policy is to of shareholders. BGI Equity Ownership Plan. His participation report in our 2006 Annual Report, available dates back to before he became a Director online at www.investorrelations.barclays.com use reward to drive The graph below shows the value, at of Barclays. Shareholders will be asked to approve the 31st December 2006, of £100 invested in All eligible employees, including executive full Remuneration report at the 2007 AGM. a high-performance Barclays on 31st December 2001 compared with Directors, can take part in our Sharesave and Important context to the report and the the value of £100 invested in the FTSE 100 Index. Sharepurchase plans. Both are ‘all-employee’ disclosures that follow is provided below. culture It shows that, at the end of 2006, a hypothetical share plans approved by HM Revenue £100 invested in Barclays on 31st December and Customs. • Barclays performed very strongly in 2006 2001 would have generated a total return of You can find full details of the share plans with profit before tax up 35% and economic £58, compared with a gain of £41 if invested in that we have operated and continue to operate, profit up 54%. This performance has been the FTSE 100 Index. Barclays, therefore, and executive Directors’ involvement in them, recognised in the remuneration decisions at outperformed the FTSE100 Index for this period. in our full Remuneration report. all levels coupled with strong performance differentiation. How do you set the reward levels for What fees are paid to the executive Directors? non-executive Directors? • The performance of Barclays Capital, BGI We review the main parts of the reward package The Board reviews the fees paid to non- and Barclays Wealth was particularly strong, for executive Directors annually. We compare executive Directors annually. Non-executive enabling the double benefit of delivering them to packages on offer at other companies Directors receive an annual base fee of £65,000. competitive bonus levels and providing an similar to Barclays and also to the packages They may also receive additional fees for increased share of profit to shareholders, offered in the markets where we are competing Chairmanship or membership of the main Board evidenced by compensation ratios reducing to attract the best talent. This includes looking Committees. This is to reflect the additional relative to 2005 and in line with the lower end at the reward packages offered by other leading time and responsibility they are asked to of the market range. international banks and financial services commit to when they are appointed to these companies. We consider reward levels across Committees. From the base fee of £65,000, • In the course of 2006, the Committee the Group when we set the remuneration for £20,000 is used each year to buy Barclays approved significant numbers of strategic executive Directors. shares, which the non-executive Directors must hires, including at Board level, ensuring We also have access to independent hold until they retire from the Board. their remuneration was in line with the advisers. Kepler Associates have been appointed appropriate marketplace. It did this alongside to advise us on remuneration matters. What are the terms of Directors’ its active oversight of Barclays talent agenda. contracts? What makes up the reward package for We have service contracts in place with the Barclays Remuneration Policy remains executive Directors? Chairman and the executive Directors. These unchanged, including the commitment to The reward package for executive Directors is contracts do not have a fixed term. They provide transparency and to policies and programmes made up of four main parts: for a notice period from the Group of one year that serve well the interests of shareholders. and normally for retirement at age 65. • Base salary; Our policy is that executive Directors’ What is your remuneration policy? contracts should allow for termination with Barclays policy is to use reward to drive a high- Total Shareholder Return • Annual Performance Bonus, 75% of which is contractual notice from the Group, except in performance culture. Outstanding performance cash and 25% of which is deferred in the circumstances of gross misconduct. In such will therefore attract outstanding reward. This Value (£) Barclays PLC form of Barclays shares through the cases, notice is not given. When we consider applies to all reward policies and practices for all FTSE 100 Index Executive Share Award Scheme (ESAS); payments in the event of termination, our employees in the Group, including executive 200 approach is to take account of the individual Directors. The aims of the Barclays policy are to: 158 • Performance Share Plan (PSP), which is an circumstances. This includes the reason for 150 127 allocation of free shares that are released termination, contractual obligations and share 117 141 • incentivise excellence in and balance between 100 after three years, subject to performance and pension plan rules. 100 95 123 both short-term (one year) and longer-term 78 conditions; and Non-executive Directors have letters of 100 102 (three years plus) performance such that 92 appointment, rather than service contracts. 70 the Group financial goals and the goal of 50 • Pension and other benefits. These letters set out the terms of their achieving top quartile total shareholder Source: Datastream appointment, including the time commitment 0 return (TSR) are met and sustained; 0102 0304 05 06 Each part has an important role to play. Together, expected of them. They provide for a notice Year ended 31st December the potential remuneration from the Annual period of six months from the Group. • enable the Group to attract and retain people Performance Bonus and PSP is greater than the of proven ability, experience and skills in the other elements. Both are subject to performance What did Directors earn in 2006? pools in which we compete for talent; Chief Executive and typical Executive Director* conditions, which means the majority of the total The 2006 annual remuneration of the Chairman reward is at risk and is not fixed. The balance of and Directors is set out on page 19. • encourage behaviour consistent with PSP Maximum Base salary (fixed) reward at risk is different for Robert E Diamond Jr, (at risk) 20% Barclays Guiding Principles which leads to 30% as his reward arrangements reflect general excellence and the appropriate balance in practice in the investment banking and financial performance, governance, controls, investment management industry. risk management, customer service, people The chart to the left shows the balance management, brand and reputation between fixed reward and reward at risk for Maximum management; Annual a typical executive Director (excluding pension Performance Maximum Annual and benefits). • promote attention to maximising personal Bonus – shares Performance Bonus Sir Richard Broadbent (at risk) 12.5% – cash (at risk) 37.5% contribution, contribution to the business in Do executive Directors take part in any Chairman which the individual works and contribution other share plans? Board HR and Remuneration Committee to the Group overall; and * The total maximum reward at risk for Robert E Diamond Jr is 98%. Executive Directors may still hold options 8th March 2007 Barclays PLC Annual Review 2006 Summary remuneration report 19

2006 Annual RemunerationA

Directors’ aggregate emoluments and other benefits 2006 2005 £m £m Aggregate emoluments 32.0 17.3 Gains made on the exercise of share options 5.5 0.3 Amounts paid under long-term incentive schemes – – Actual pension contributions to money purchase scheme (2006: one Director, £11,414 and 2005: two Directors, £114,856) – 0.1 Notional pension contributions to money purchase scheme (2006: no Directors and 2005: no Directors) – – 37.5 17.7 As at 31st December 2006, four Directors were accruing retirement benefits under a defined benefit scheme (2005: four Directors).

Directors’ individual remuneration Executive Share Award Annual Scheme ESAS Salary cash 2006 2005C and fees BenefitsB bonus Total Total 2006D 2005 £000 £000 £000 £000 £000 £000 £000 Chairman Matthew W BarrettE 650 50 – 700 704 – – Executive Directors John VarleyF 888 15 1,613 2,516 2,249 699 601 Robert E Diamond JrG 250 17 10,425 10,692 4,528 4,518 1,896 Gary HoffmanF 625 14 469 1,108 1,074 203 244 Naguib KherajF,H 650 165 1,750 2,565 1,451 – 358 David RobertsF,I 575 11 1,500 2,086 1,336 – 358 Frits SeegersF,J 336 94 1,200 1,630 – 520 – Non-executive DirectorsK Marcus AgiusL 22 – – 22 – – – Sir Richard Broadbent 147 – – 147 123 – – Leigh Clifford 76 – – 76 60 – – Fulvio ContiM 54 – – 54 – – – Dr Danie Cronjé 326 – – 326 132 – – Professor Dame Sandra Dawson 81 – – 81 71 – – Sir Andrew Likierman 96 – – 96 86 – – Sir Nigel Rudd 200 – – 200 179 – – Stephen Russell 137 – – 137 127 – – Sir John Sunderland 81 – – 81 40 – – Former Directors Sir David ArculusN 28 – – 28 83 – – Robert SteelO 62 – – 62 39 – –

Notes

A Emoluments include amounts, if any, payable by subsidiary undertakings. Amounts payable to Dr Danie Cronjé G Robert E Diamond Jr joined the Board on 1st June 2005. The amount shown in the ‘2005 Total’ column is for the include an amount of ZAR3,114,800 (£249,829) in respect of his Chairmanship of Absa Group Limited (2005: period from that date to 31st December 2005. The remuneration for 2006 for Robert E Diamond Jr was based ZAR1,193,275 (£109,734) and ZAR37,913 (£3,486) of benefits). on the strong performance of Barclays Capital, Barclays Global Investors and Barclays Wealth, both on an B The Chairman and executive Directors receive benefits in kind, which may include life and disability cover, the absolute and industry relative basis and given significant upward movement in market reference points. The use of a Company owned vehicle or cash equivalent, medical insurance and tax advice. Benefits are provided composition of this package remains consistent with the composition of remuneration shown on page 127 of on similar terms to other senior executives. No Director has an expense allowance. the full Remuneration report. C Total remuneration for 2005 includes any amounts waived by way of Special Company Contribution H Naguib Kheraj received an allowance of 23% of base salary (£149,500) in lieu of pension contributions (2005: (Bonus Sacrifice). £115,000). This amount is included in the amount shown in the column for ‘Benefits’. D The amounts shown for ESAS represent the value of shares to be recommended for an award under ESAS in I David Roberts ceased to be a Director on 31st December 2006. His service contract provides for a notice period 2007 for each executive Director, including a maximum potential 30% bonus share element. of 12 months or contractual pay in lieu of notice for 12 months, subject to mitigation if alternative employment is found during the period of pay in lieu of notice. Contractual pay on termination includes base salary E Matthew W Barrett retired as Chairman on 31st December 2006. No additional payments were due to (£600,000), £150,000 in respect of pension benefit entitlement and a bonus capped at 100% of base salary Matthew W Barrett on his retirement. (£600,000), totalling up to £1,350,000, payable in 2007, subject to mitigation. The notice period commenced F John Varley is a Director of Ascot Authority (Holdings) Limited and British Grolux Investments Limited, for on 1st January 2007. which he received fees of £26,000 and £7,500 respectively in 2006 (2005: £24,648 and £6,000 respectively). J Frits Seegers was appointed as an executive Director on 10th July 2006. In addition to the amount shown in the John Varley is a non-executive Director of AstraZeneca plc for which he received fees of £21,075 in 2006 (2005: column for ‘Salary and Fees’, Frits Seegers received a cash payment of £3,408,000 in July 2006 in recognition of £nil). John Varley is also a member of the International Advisory Panel of the Monetary Authority of Singapore forfeited share awards and benefits from his previous employment. In addition, in August 2006 Frits Seegers for which he received fees of US$10,000 in 2006 (2005: £nil). John Varley is Chairman of Business Action on received an award under ESAS over 802,208 Barclays shares in recognition of forfeited share awards and benefits. Homelessness and President of the Employers’ Forum on Disability for which he receives no fees. Gary Hoffman This is shown in the ESAS table on page 136 of the full Remuneration report and is not included in the ESAS is a Director of Visa (Europe) Limited, for which he receives no fee and Trinity Mirror plc, for which he received column in the table above. Bonus shares are not applicable to this award. Frits Seegers also received an allowance fees of £50,000 in 2006 (2005: £39,521). David Roberts was a non-executive Director of BAA PLC during the of 25% of base salary (£84,028) in lieu of pension contributions. This amount is included in the amount shown in period March 2006 to June 2006, for which he received fees of £14,333 (2005: £nil). Naguib Kheraj is a member the column for ‘Benefits’. of the Board of Governors of the Institute of Ismaili Studies and Chairman of the National Committee of the Aga Khan Foundation (UK) for which he receives no fees. Naguib Kheraj and (from 23rd October 2006) Frits Seegers K Fees to non-executive Directors include an amount of £20,000 per annum which, after tax, is used to buy are non-executive Directors of Absa Group Limited and Absa Bank Limited. David Roberts was a non-executive Barclays shares. Further details are provided on page 140 of the full Remuneration report. Director of Absa Group Limited and Absa Bank Limited until 23rd October 2006. They have each waived their L Marcus Agius was appointed as non-executive Director on 1st September 2006. fees, which were paid to Barclays. Their respective fees were ZAR425,100 (£34,096), ZAR75,400 (£6,048) M Fulvio Conti was appointed as non-executive Director on 1st April 2006. and ZAR381,367 (£30,588) (2005: ZAR161,033 (£14,809) for Naguib Kheraj, ZAR140,366 (£12,908) for David Roberts and £nil for Frits Seegers). N Sir David Arculus resigned from the Board on 27th April 2006. O Robert Steel resigned from the Board on 11th October 2006. 20 Shareholder support Barclays PLC Annual Review 2006

The easier way to get your Manage your portfolio online shareholder information Specialist stockbroker services at More detail, Shareholder www.investorrelations.barclays.com www.sharestore.barclays.co.uk more data Annual Report support and Corporate Responsibility Report, available in print and online, at www.investorrelations.barclays.com

Help Buying and selling 2007 diary Barclays Shareholder Helpline A full range of dealing services for buying or The share price Although we go to great lengths to stick Within the UK: 0870 609 4535 selling Barclays shares is available through Information on the Barclays share price to the dates published here, please note From overseas: +44 121 415 7004 Barclays Stockbrokers. is available on the Barclays website at that all future announcement and dividend www.investorrelations.barclays.com, dates are provisional and subject to change. Email Telephone dealing on Teletext and may also be obtained by [email protected] Within the UK: 0845 604 0077 calling 0900 1353 653 (calls within the 9 March 2007 From overseas: +44 141 352 3943 UK are charged at 60p per minute). On record date for payment of the 2006 Registrar final dividend The Registrar to Barclays PLC Barclays Stockbrokers The Causeway www.stockbrokers.barclays.com or call If you move house 4 April Worthing 0845 601 7788 from within the UK Final date for joining or leaving the BN99 6DA Please remember to tell the Registrar if dividend reinvestment plan for the 2006 Barclays Sharestore you are moving house. In future, when final dividend Textphone If you hold your shares in Barclays you write to tell the Registrar that you Contact the Registrar direct, without the Sharestore you are only able to deal have moved house, you must enclose 26 April need for an intermediate operator. through Barclays Stockbrokers. a copy of your Barclays dividend tax Annual General Meeting For the special internet dealing service voucher. This is important to protect Within the UK: 0870 600 3950 for Barclays Sharestore members visit the security of your shareholding. 27 April From overseas: +44 121 415 7028 www.sharestore.barclays.co.uk Final dividend for 2006 to be paid

Online The value of stocks and shares and the 2 August Shareholder information is available at income from them can fall as well as rise Interim results for 2007 announced www.investorrelations.barclays.com and you may not get back the full amount you originally invested. If you are unsure 17 August about dealing in shares and other equity On record date for payment of the 2007 investments you should contact your interim dividend financial adviser. 7 September Sharegift Final date for joining or leaving the Sharegift, the charity share donation dividend reinvestment plan for the 2007 scheme, is a free service for shareholders interim dividend wanting to give shares to charitable causes. Further information can be obtained at 1 October www.sharegift.org or from the Barclays Interim dividend for 2007 to be paid Shareholder Helpline.

Personal information security Electronic communication Some definitions used in this Review Don’t forget Please be vigilant about your personal A growing number of shareholders receive • ‘Income’ refers to total income net of information security, whether it be bank their Barclays communications electronically insurance claims, unless otherwise statements, credit card bills or information and are discovering the convenience of specified. about your shareholding. Ensure your bank using the internet and email to find out • ‘Cost:income ratio’ is defined as account and shareholder reference numbers about their shareholdings and Barclays. operating expenses compared to total are kept safe and your details up to date. income net of insurance claims. Barclays e-view Barclays Sharestore An easy and convenient online service to: Barclays Sharestore is a convenient way • access your Barclays shareholding details to hold your Barclays shares electronically, and check sales, purchases or transfers; without a certificate. Each year you will be • view dividend information including sent a statement of your shareholding. electronic tax vouchers; To apply, call the Barclays Shareholder • change your address and/or bank Helpline for a Sharestore Application Form. details online; Transferring into Sharestore is free. • receive your shareholder documents (like this Annual Review) electronically; The Barclays Dividend • send your voting instructions for the AGM. Reinvestment Plan A straightforward and cost effective way You can apply for e-view online using your of using your dividends to build your Shareholder Reference Number: shareholding in Barclays. Contact the • go to www.eviewsignup.co.uk Barclays Shareholder Helpline for details • register for electronic communications or download the application form from by following the on-screen instructions. www.shareview.info/barclays/amend • you will be sent an access number in the post the next day.

Extracts from this Annual Review are available, free of charge, on Audio version audio cassette and CD by calling the Barclays Shareholder Helpline.

Within the UK: 0870 609 4535 From overseas: +44 121 415 7004 This Review is printed on Revive 100 Offset made from 100% FSC certified recycled fibre sourced from de-inked post- consumer waste. The printer and manufacturing mill are both These audio versions will also be available at the AGM. credited with ISO 14001 Environmental Management Systems Standard and both are FSC certified.

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