For the year, the cost to net income ratio improved by 1% to 63%

Barclays Global Investors

Profit before tax increased 3% to £734 million and income rose 16% on a jump in management fees and in securities lending revenues.

The 8% depreciation in the U.S. dollar served to trim both income and profit growth in 2007.

Operation costs in the review period further increased by 25% as more emphasis was put in the expansion of in on many products and platforms.

In 2007, assets under management jumped from US$265 billion to US$2.1 trillion. The figure also included net new assets of US$86 billion.

Barclays Wealth

PBT for Barclays Wealth spiked 25% to £307 million as income rose 11% on increased
client funds and greater transaction volumes.

Total client assets increased 14% to £133 billion in the period.

Credit Market Impairment Charges

Barclays realized subprime related losses of £1.63 billion last year. Impairment charges and other credit provisions rose 30% to £2.79 billion.

Charges relating to US sub-prime mortgages and other credit market exposures were £782 million.

UK Retail Banking and Barclaycard successfully managed to reduce flows into delinquency and arrears balances in UK cards and unsecured loans.

Outlook

Barclays is currently establishing four year performance goals from 2008 to 2011 that are meant to ensure compound annual growth in economic profit in the range of 5% and 10% or £9.3 billion to £10.6 billion of aggregate economic profit.