Assets under management at Barclays Wealth
rose less than 2% to £153.5bn ($243bn) in the first half of 2010
but have increased 15% compared to the half year ending 30 June
2009.
Barclays said operating expenses increased 20%
to £635m principally due to the impact of growth in high net worth
business revenues on staff and infrastructure costs and the start
of Barclays Wealth’s strategic investment programme in its global
technology platform.
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The £350m investment programme cost £33m in
the first half of 2010 and is expected to increase to £80m for the
second half of 2010.
Modest £3bn asset inflows
The world’s tenth largest private bank,
according to PBI’s Global Index, had net new
asset inflows of £3bn, signalling that its plan to double
client-facing staff numbers and its technology upgrade is starting
to pay off.
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By GlobalDataBarclays’ net asset inflows were modest
compared to Credit Suisse which saw inflows of CHF13.8bn ($13.2)
for the second quarter of 2010.
Barclays Wealth’s profit before tax increased
27% to £95m compared to the half year ending 30 June 2009. Net
income increased to £730m up from £602m compared to the half year
ending 30 June 2009.
The results follow news that Barclays Wealth
has made its first break into the Japanese wealth management market
following the completion of a joint venture (JV) deal with Sumitomo
Mitsui Banking Corporation (SMBC) and SMBC-owned securities company
Nikko Cordial Securities.
