People, markets and performance Group performance – Making a Barclays 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 Barclaycard 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, Fulvio Conti 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, Matthew Barrett, Fulvio is Chief Executive Officer of Enel 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 Barclays Wealth 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 Antony Jenkins 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 Barclays Center 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 Bob Diamond 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