Barclays
PLC
2023 Results
Announcement
31 December 2023
Results Announcement
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Page
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Notes
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1
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Performance Highlights
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2
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Group Finance Director's
Review
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8
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Results by Business
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•Barclays
UK
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10
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•Barclays
International
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13
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•Head
Office
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18
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Quarterly Results
Summary
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19
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Quarterly Results by
Business
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20
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Performance Management
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•Margins
and Balances
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26
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•Remuneration
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27
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Risk Management
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•Risk
Management and Principle Risks
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29
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•Credit
Risk
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30
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•Market
Risk
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50
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•Treasury
and Capital Risk
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51
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Condensed Consolidated Financial
Statements
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60
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Financial Statement
Notes
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65
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Appendix: Non-IFRS Performance
Measures
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69
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Shareholder Information
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78
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BARCLAYS PLC, 1 CHURCHILL PLACE,
LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000.
COMPANY NO. 48839.
Notes
This document contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No. 596/2014 (as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018, as
amended).
The terms Barclays and Group refer
to Barclays PLC together with its subsidiaries. Unless otherwise
stated, the income statement analysis compares the twelve months
ended 31 December 2023 to the corresponding twelve months of 2022
and balance sheet analysis as at 31 December 2023 with comparatives
relating to 31 December 2022. The abbreviations '£m' and '£bn'
represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations '$m' and '$bn' represent millions
and thousands of millions of US Dollars respectively; and the
abbreviations '€m' and '€bn' represent millions and thousands of
millions of Euros respectively.
There are a number of key
judgement areas, for example impairment calculations, which are
based on models and which are subject to ongoing adjustment and
modifications. Reported numbers reflect best estimates and
judgements at the given point in time.
Relevant terms that
are used in this document but are not defined
under applicable regulatory guidance or International Financial
Reporting Standards (IFRS) are explained in the results glossary,
which can be accessed at home.barclays/investor-relations
The information in this
announcement, which was approved by the Board of Directors on 19
February 2024, does not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. Statutory
accounts for the year ended 31 December 2023, which contain an
unmodified audit report under Section 495 of the Companies Act 2006
(which does not make any statements under Section 498 of the
Companies Act 2006) will be delivered to the Registrar of Companies
in accordance with Section 441 of the Companies Act
2006.
These results will be furnished on
Form 6-K to the US Securities and Exchange Commission (SEC) as soon
as practicable following its publication. Once furnished to the
SEC, a copy of the Form 6-K will be available from the SEC's
website at www.sec.gov
Barclays is a frequent issuer in
the debt capital markets and regularly meets with investors via
formal roadshows and other ad hoc meetings. Consistent with its
usual practice, Barclays expects that from time to time over the
coming quarter it will meet with investors globally to discuss
these results and other matters relating to the
Group.
Non-IFRS performance measures
Barclays' management believes that
the non-IFRS performance measures included in this document provide
valuable information to the readers of the financial statements as
they enable the reader to identify a more consistent basis for
comparing the businesses' performance between financial periods and
provide more detail concerning the elements of performance which
the managers of these businesses are most directly able to
influence or are relevant for an assessment of the Group. They also
reflect an important aspect of the way in which operating targets
are defined and performance is monitored by Barclays' management.
However, any non-IFRS performance measures in this document are not
a substitute for IFRS measures and readers should consider the IFRS
measures as well. Refer to the appendix on pages 69 to 76 for
definitions and calculations of non-IFRS performance measures
included throughout this document, and reconciliations to the most
directly comparable IFRS measures.
Forward-looking statements
This document contains certain
forward-looking statements within the meaning of Section 21E of the
US Securities Exchange Act of 1934, as amended, and Section 27A of
the US Securities Act of 1933, as amended, with respect to the
Group. Barclays cautions readers that no forward-looking statement
is a guarantee of future performance and that actual results or
other financial condition or performance measures could differ
materially from those contained in the forward-looking statements.
Forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward-looking
statements sometimes use words such as 'may', 'will', 'seek',
'continue', 'aim', 'anticipate', 'target', 'projected', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other
words of similar meaning. Forward-looking statements can be made in
writing but also may be made verbally by directors, officers and
employees of the Group (including during management presentations)
in connection with this document. Examples of forward-looking
statements include, among others, statements or guidance regarding
or relating to the Group's future financial position, business
strategy, income levels, costs, assets and liabilities, impairment
charges, provisions, capital, leverage and other regulatory ratios,
capital distributions (including policy on dividends and share
buybacks), return on tangible equity, projected levels of growth in
banking and financial markets, industry trends, any commitments and
targets (including environmental, social and governance (ESG)
commitments and targets), plans and objectives for future
operations and other statements that are not historical or current
facts. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements speak only as at the date on which they
are made. Forward-looking statements may be affected by a number of
factors, including, without limitation: changes in legislation,
regulations, governmental and regulatory policies, expectations and
actions, voluntary codes of practices and the interpretation
thereof, changes in IFRS and other accounting standards, including
practices with regard to the interpretation and application thereof
and emerging and developing ESG reporting standards; the outcome of
current and future legal proceedings and regulatory investigations;
the Group's ability along with governments and other stakeholders
to measure, manage and mitigate the impacts of climate change
effectively; environmental, social and geopolitical risks and
incidents, pandemics and similar events beyond the Group's control;
the impact of competition in the banking and financial services
industry; capital, liquidity, leverage and other regulatory rules
and requirements applicable to past, current and future periods;
UK, US, Eurozone and global macroeconomic and business conditions,
including inflation; volatility in credit and capital markets;
market related risks such as changes in interest rates and foreign
exchange rates; reforms to benchmark interest rates and indices;
higher or lower asset valuations; changes in credit ratings of any
entity within the Group or any securities issued by it; changes in
counterparty risk; changes in consumer behaviour; the direct and
indirect consequences of the conflicts in Ukraine and the Middle
East on European and global macroeconomic conditions, political
stability and financial markets; political elections; developments
in the UK's relationship with the European Union (EU); the risk of
cyberattacks, information or security breaches, technology failures
or other operational disruptions and any subsequent impacts on the
Group's reputation, business or operations; the Group's ability to
access funding; and the success of acquisitions, disposals and
other strategic transactions. A number of these factors are beyond
the Group's control. As a result, the Group's actual financial
position, results, financial and non-financial metrics or
performance measures or its ability to meet commitments and targets
may differ materially from the statements or guidance set forth in
the Group's forward-looking statements. In setting its targets and
outlook for the period 2024-2026, Barclays has made certain
assumptions about the macro-economic environment, including,
without limitation, inflation, interest and unemployment rates, the
different markets and competitive conditions in which Barclays
operates, and its ability to grow certain businesses and achieve
costs savings and other structural actions. Additional risks and
factors which may impact the Group's future financial condition and
performance are identified in Barclays PLC's filings with the SEC
(including, without limitation, Barclays PLC's Annual Report on
Form 20-F for the financial year ended 31 December 2023), which are
available on the SEC's website at www.sec.gov
Subject to Barclays PLC's
obligations under the applicable laws and regulations of any
relevant jurisdiction (including, without limitation, the UK and
the US) in relation to disclosure and ongoing information, we
undertake no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Performance Highlights
In 2023 Barclays delivered a
return on tangible equity (RoTE) of 10.6%
excluding Q423
structural cost actions1, with total
capital distributions of £3.0bn2, equivalent to c.19.4p
per share
C. S. Venkatakrishnan, Group
Chief Executive, commented
"In 2023 Barclays delivered solid performance against a mixed
macroeconomic backdrop, meeting its financial targets. Our strong
13.8% Common Equity Tier 1 (CET1) ratio enables us to deliver
increased total capital distributions of £3.0bn to shareholders, up
c.37% on 2022, which includes a further share buyback of £1.0bn.
Our new three-year plan, which we will be announcing at the
Investor Update today, is designed to further improve Barclays'
operational and financial performance, driving higher returns, and
predictable, attractive shareholder
distributions"
|
•Group
FY23 RoTE of 10.6% and earnings per share
(EPS) of 32.4p, excluding £0.9bn of Q423
structural cost actions
•Total capital distributions of
£3.0bn announced in relation to 2023, up c.37% on 2022, reflecting
a total dividend of 8.0p and total share buybacks of £1.75bn for
2023. This includes our intention to initiate a further share
buyback of up to £1.0bn
•Group
net interest income (NII) of £12.7bn, up
20% year-on-year, with Barclays UK NII of £6.4bn, up 9% year-on-year,
delivering a Barclays UK net interest margin (NIM) of
3.13%
•Group
cost: income ratio of 63% excluding Q423
structural cost actions
•Group
FY23 loan loss rate (LLR) of 46bps
•CET1
ratio of 13.8% and tangible net asset
value (TNAV) per share of 331p
2023 Key financial metrics:
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Statutory
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Excluding Q423 structural cost actions
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Income
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Profit before tax
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Attributable profit/(loss)
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LLR
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TNAV per share
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CET1 ratio
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Total capital return
|
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Cost: income ratio
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RoTE
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EPS
|
FY23
|
£25.4bn
|
£6.6bn
|
£4.3bn
|
46bps
|
331p
|
13.8%
|
£3.0bn
|
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63%
|
10.6%
|
32.4p
|
Q423
|
£5.6bn
|
£0.1bn
|
£(0.1)bn
|
54bps
|
|
71%
|
5.1%
|
4.2p
|
2023 Performance highlights:
•Group statutory RoTE was
9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including
£0.9bn of structural cost actions in Q423, taking total structural
cost actions for 2023 to £1.0bn
-Group income was £25.4bn, up 2%
year-on-year
-Group total operating expenses
were £16.9bn, an increase of 1% year-on-year
•Excluding the impacts of Q423 structural cost actions and the
Over-issuance of Securities in the prior
year3:
-Group RoTE of 10.6% (2022:
11.6%) with profit before tax of £7.5bn (2022:
£7.7bn)
-Group income of £25.4bn, up
3% year-on-year:
-Barclays UK
income increased 5% to £7.6bn, driven by NII growth from higher
rates, including higher structural hedge income
-Corporate and
Investment Bank (CIB) income decreased 4% to £12.6bn, driven by
lower client activity in both Global Markets and Investment
Banking, partially offset by a strong performance in Corporate
driven by Transaction Banking
-Consumer Cards and Payments
(CC&P) income increased 18% to £5.3bn
reflecting higher balances in US cards and favourability from
higher rates and client balance growth in Private
Bank
-Group total operating expenses were
£16.0bn, up 2% year-on-year.
Cost: income ratio of 63% as the Group delivered
positive cost: income jaws of 1%
1
|
The impact of the Q423 structural cost actions was £0.9bn. At
Q323 Results the Group highlighted it was evaluating actions to
reduce structural costs to help drive future returns. Given the
materiality of these actions in Q423, certain 2023 performance
measures included in this document exclude the impact of Q423
structural cost actions. Page 6 includes a reconciliation of FY23
financial results excluding the impact of Q423 structural cost
actions. Total 2023 structural cost actions were £1.0bn (Q323 YTD:
£0.1bn).
|
2
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Includes total dividends and share buybacks announced in
relation to 2023. Total dividend for 2023 of 8.0p per share
comprises the 2.7p 2023 half-year dividend and the 5.3p full-year
dividend for 2023. Total share buybacks announced in relation to
2023 include the £750m buyback announced at H123 and a further
share buyback of up to £1.0bn announced
today.
|
3
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Excluding £0.3bn income gain and £1.0bn
litigation and conduct charge in 2022 from the Over-issuance
of Securities under Barclays Bank PLC's US shelf registration
statements on Form F-3 filed with the SEC in 2018 and 2019. Page 6
includes a reconciliation of financial results excluding the impact
of the Over-issuance of Securities in the prior
year
|
2023 Performance highlights (continued):
•Credit impairment charges were £1.9bn (2022:
£1.2bn) with an LLR of 46bps (2022:
30bps):
-Barclays UK
credit impairment charges were £0.3bn (2022: £0.3bn) with an LLR of
14bps (2022: 13bps), consistent with low delinquencies in UK cards
and a high quality mortgage lending portfolio
-CC&P credit
impairment charges increased to £1.5bn (2022: £0.8bn) with an LLR
of 354bps (2022: 175bps), driven by higher delinquencies in US
cards, which was anticipated and led to higher coverage
ratios
•CET1 ratio of 13.8% (2022: 13.9%), with
risk weighted assets (RWAs) of £342.7bn (December 2022: £336.5bn)
and TNAV per share of 331p (December 2022: 295p)
Q423 Performance highlights:
•Excluding the impacts of Q423 structural cost
actions1:
-Group RoTE was 5.1%
(Q422: 8.9%) with profit before tax of
£1.0bn (Q422: £1.3bn)
-Group income was £5.6bn down 3%
year-on-year:
-Barclays UK income was
9% lower, with NII broadly stable and net
fees, commissions and other income down 41% reflecting one-off items and the transfer of
Wealth Management & Investments (WM&I) to CC&P during
Q223
-CC&P was 6% higher, driven by balance growth in US cards and
the transfer of WM&I, partially offset by lower Payments
income
-CIB income was 7% lower, reflecting decline in Global Markets against
a record Q4222
-Group total operating expenses were
£4.0bn, broadly stable
year-on-year
•Credit impairment charges
were £0.6bn (Q422: £0.5bn), with an LLR
of 54bps (Q422: 49bps)
Impact of £0.9bn structural cost actions in
Q423
•To help
drive future returns, Barclays has taken £0.9bn of structural cost actions in Q423 which are
expected to result in gross cost savings of c.£0.5bn in 2024,
with an expected payback period3 of
less than 2 years
•Structural cost actions include
initiatives across people, property and infrastructure, with the
allocation by business and type as follows:
-£0.2bn in
Barclays UK, £0.2bn in CIB, £0.1bn in CC&P and £0.5bn in Head
Office
-£0.3bn related
to People, £0.2bn related to Property and £0.4bn related to
Infrastructure
1
|
Q423 structural cost actions of £0.9bn.
|
2
|
Period covering 2014-2023. Pre 2014 data was not restated
following re-segmentation in 2016.
|
3
|
Payback period is the length of time to recoup the cost from
the structural cost actions.
|
New Operating Divisions
•Subsequent to FY23 reporting, Barclays will be managed and
reported via five focused operating divisions:
-Barclays UK
-Barclays UK Corporate
Bank
-Barclays Private Bank and Wealth
Management
-Barclays Investment
Bank
-Barclays US Consumer
Bank
•Barclays
segmental reporting will reflect these five operating divisions, in
addition to Head Office, from Q124. Further detail is provided in
the 20 February 2024 Investor Update
•This
resegmentation will provide an enhanced and more granular
disclosure of the performance of each of these operating divisions,
alongside more accountability from an operational and management
standpoint
•Barclays
2021, 2022 and 2023 segmental performance, including Head Office,
has been re-presented to reflect these new
operating divisions. A resegmentation document may be accessed via
the Barclays website at:
home.barclays/investor-relations
Revised Group Financial Targets and
Outlook:
•Returns: targeting RoTE of
greater than 10% in 2024 and c.10.5% excluding inorganic activity,
with a greater than 12% target in 2026
•Capital
returns: plan to return at least
£10bn of capital to shareholders between 2024 and 2026, through
dividends and share buybacks, with a continued preference for
buybacks. Plan to keep total dividend stable at 2023 level in
absolute terms, with progressive dividend per share growth driven
through share count reduction as a result of increased share
buybacks. Dividends will continue to be paid semi-annually. This
multiyear plan is subject to supervisory and Board approval,
anticipated financial performance and our published CET1 ratio
target range of 13-14%
•Income: targeting Barclays
Group NII excluding Barclays Investment Bank and Head Office of
c.£10.7bn, of which Barclays UK NII of c.£6.1bn, in
20241. Targeting Group total income of c.£30bn in
2026
•Costs:
targeting Group cost: income ratio of c.63% in
2024. Targeting total Group operating expenses of c.£17.0bn and a
Group cost: income ratio of high 50s in percentage terms in 2026.
This includes c.£1bn of gross efficiency savings in 2024 and total
gross efficiency savings of c.£2bn by 2026
•Impairment: continue to
expect an LLR of 50-60bps through the cycle
•Capital: expect to continue
to operate within the CET1 ratio target range of 13-14%
-Targeting Barclays Investment
Bank RWAs of c.50% of Group RWAs in 2026
-Impact of regulatory change on
RWAs in line with prior guidance, expected to be at lower end of
5-10% of Group RWAs. This includes c.£16bn RWAs expected in H224
due to Barclays US Consumer Bank moving to Internal Ratings-Based
(IRB) models
1
|
This excludes the impact of Tesco Bank acquisition, which is
expected to generate annualised NII of c.£400m in the first year
post-completion. See Other Matters on page 9 for further details of the
acquisition.
|
Barclays Group results
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Barclays UK
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
Corporate and Investment
Bank
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Consumer, Cards and
Payments
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
Barclays International
|
17,918
|
17,867
|
-
|
|
3,754
|
3,862
|
(3)
|
Head Office
|
(127)
|
(170)
|
25
|
|
52
|
(31)
|
|
Total income
|
25,378
|
24,956
|
2
|
|
5,598
|
5,801
|
(3)
|
Operating costs
|
(16,714)
|
(14,957)
|
(12)
|
|
(4,735)
|
(3,748)
|
(26)
|
UK bank levy
|
(180)
|
(176)
|
(2)
|
|
(180)
|
(176)
|
(2)
|
Litigation and conduct
|
(37)
|
(1,597)
|
98
|
|
(5)
|
(79)
|
94
|
Total operating expenses
|
(16,931)
|
(16,730)
|
(1)
|
|
(4,920)
|
(4,003)
|
(23)
|
Other net
(expenses)/income
|
(9)
|
6
|
|
|
(16)
|
10
|
|
Profit before impairment
|
8,438
|
8,232
|
3
|
|
662
|
1,808
|
(63)
|
Credit impairment
charges
|
(1,881)
|
(1,220)
|
(54)
|
|
(552)
|
(498)
|
(11)
|
Profit before tax
|
6,557
|
7,012
|
(6)
|
|
110
|
1,310
|
(92)
|
Tax (charge)/credit
|
(1,234)
|
(1,039)
|
(19)
|
|
23
|
33
|
(30)
|
Profit after tax
|
5,323
|
5,973
|
(11)
|
|
133
|
1,343
|
(90)
|
Non-controlling
interests
|
(64)
|
(45)
|
(42)
|
|
(25)
|
(22)
|
(14)
|
Other equity instrument
holders
|
(985)
|
(905)
|
(9)
|
|
(219)
|
(285)
|
23
|
Attributable profit/(loss)
|
4,274
|
5,023
|
(15)
|
|
(111)
|
1,036
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average tangible
shareholders' equity
|
9.0%
|
10.4%
|
|
|
(0.9)%
|
8.9%
|
|
Average tangible shareholders'
equity (£bn)
|
47.4
|
48.3
|
|
|
48.9
|
46.7
|
|
Cost: income ratio
|
67%
|
67%
|
|
|
88%
|
69%
|
|
Loan loss rate (bps)
|
46
|
30
|
|
|
54
|
49
|
|
Basic earnings per
share
|
27.7p
|
30.8p
|
|
|
(0.7)p
|
6.5p
|
|
Dividend per share
|
8.0p
|
7.25p
|
|
|
|
|
|
Share buyback announced
(£m)
|
1,750
|
1,000
|
|
|
|
|
|
Total payout equivalent per
share
|
c.19.4p
|
c.13.4p
|
|
|
|
|
|
Basic weighted average number of
shares (m)
|
15,445
|
16,333
|
(5)
|
|
15,092
|
15,828
|
(5)
|
Period end number of shares
(m)
|
15,155
|
15,871
|
(5)
|
|
15,155
|
15,871
|
(5)
|
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
Balance sheet and capital
management1
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised
cost
|
399.5
|
405.4
|
398.8
|
Loans and advances at amortised
cost impairment coverage ratio
|
1.4%
|
1.4%
|
1.4%
|
Total assets
|
1,477.5
|
1,591.7
|
1,513.7
|
Deposits at amortised
cost
|
538.8
|
561.3
|
545.8
|
Tangible net asset value per
share
|
331p
|
316p
|
295p
|
Common equity tier 1
ratio
|
13.8%
|
14.0%
|
13.9%
|
Common equity tier 1
capital
|
47.3
|
48.0
|
46.9
|
Risk weighted assets
|
342.7
|
341.9
|
336.5
|
UK leverage ratio
|
5.2%
|
5.0%
|
5.3%
|
UK leverage exposure
|
1,168.3
|
1,202.4
|
1,130.0
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool
(£bn)
|
298.1
|
335.0
|
318.0
|
Liquidity coverage
ratio2
|
161%
|
159%
|
156%
|
Net stable funding
ratio3
|
138%
|
138%
|
137%
|
Loan: deposit ratio
|
74%
|
72%
|
73%
|
1
|
Refer to pages 55 to 59 for further information on how capital, RWAs and
leverage are calculated.
|
2
|
The liquidity coverage ratio (LCR) is now shown on an average
basis, based on the average of the last 12 spot month end ratios.
Prior period LCR comparatives have been updated for
consistency.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Reconciliation of financial results excluding adjusting
items1
Year ended
|
31.12.23
|
|
|
|
31.12.22
|
|
|
|
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
7,587
|
-
|
7,587
|
|
7,259
|
-
|
7,259
|
|
5
|
Corporate and Investment
Bank
|
12,610
|
-
|
12,610
|
|
13,368
|
292
|
13,076
|
|
(4)
|
Consumer, Cards and
Payments
|
5,308
|
-
|
5,308
|
|
4,499
|
-
|
4,499
|
|
18
|
Barclays International
|
17,918
|
-
|
17,918
|
|
17,867
|
292
|
17,575
|
|
2
|
Head Office
|
(127)
|
-
|
(127)
|
|
(170)
|
-
|
(170)
|
|
25
|
Total income
|
25,378
|
-
|
25,378
|
|
24,956
|
292
|
24,664
|
|
3
|
Barclays UK
|
(4,393)
|
(168)
|
(4,225)
|
|
(4,260)
|
-
|
(4,260)
|
|
1
|
Corporate and Investment
Bank
|
(8,335)
|
(188)
|
(8,147)
|
|
(7,630)
|
-
|
(7,630)
|
|
(7)
|
Consumer, Cards and
Payments
|
(3,243)
|
(118)
|
(3,125)
|
|
(2,731)
|
-
|
(2,731)
|
|
(14)
|
Barclays International
|
(11,578)
|
(306)
|
(11,272)
|
|
(10,361)
|
-
|
(10,361)
|
|
(9)
|
Head Office
|
(743)
|
(453)
|
(290)
|
|
(336)
|
-
|
(336)
|
|
14
|
Total operating costs
|
(16,714)
|
(927)
|
(15,787)
|
|
(14,957)
|
-
|
(14,957)
|
|
(6)
|
UK bank levy
|
(180)
|
-
|
(180)
|
|
(176)
|
-
|
(176)
|
|
(2)
|
Litigation and conduct
|
(37)
|
-
|
(37)
|
|
(1,597)
|
(966)
|
(631)
|
|
94
|
Total operating expenses
|
(16,931)
|
(927)
|
(16,004)
|
|
(16,730)
|
(966)
|
(15,764)
|
|
(2)
|
Other net
(expenses)/income
|
(9)
|
-
|
(9)
|
|
6
|
-
|
6
|
|
|
Profit before impairment
|
8,438
|
(927)
|
9,365
|
|
8,232
|
(674)
|
8,906
|
|
5
|
Credit impairment
charges
|
(1,881)
|
-
|
(1,881)
|
|
(1,220)
|
-
|
(1,220)
|
|
(54)
|
Profit before tax
|
6,557
|
(927)
|
7,484
|
|
7,012
|
(674)
|
7,686
|
|
(3)
|
Attributable profit
|
4,274
|
(739)
|
5,013
|
|
5,023
|
(552)
|
5,575
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Average tangible shareholders'
equity (£bn)
|
47.4
|
|
47.4
|
|
48.3
|
|
48.3
|
|
|
Return on average tangible shareholders'
equity
|
9.0%
|
|
10.6%
|
|
10.4%
|
|
11.6%
|
|
|
Cost: income ratio
|
67%
|
|
63%
|
|
67%
|
|
64%
|
|
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and
impact of the Over-issuance of Securities in
2022.
|
Reconciliation of financial results excluding adjusting
items1
Three months ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
1,792
|
-
|
1,792
|
|
1,970
|
-
|
1,970
|
|
(9)
|
Corporate and Investment
Bank
|
2,390
|
-
|
2,390
|
|
2,576
|
-
|
2,576
|
|
(7)
|
Consumer, Cards and
Payments
|
1,364
|
-
|
1,364
|
|
1,286
|
-
|
1,286
|
|
6
|
Barclays International
|
3,754
|
-
|
3,754
|
|
3,862
|
-
|
3,862
|
|
(3)
|
Head Office
|
52
|
-
|
52
|
|
(31)
|
-
|
(31)
|
|
|
Total income
|
5,598
|
-
|
5,598
|
|
5,801
|
-
|
5,801
|
|
(3)
|
Barclays UK
|
(1,153)
|
(168)
|
(985)
|
|
(1,108)
|
-
|
(1,108)
|
|
11
|
Corporate and Investment
Bank
|
(2,134)
|
(188)
|
(1,946)
|
|
(1,796)
|
-
|
(1,796)
|
|
(8)
|
Consumer, Cards and
Payments
|
(925)
|
(118)
|
(807)
|
|
(747)
|
-
|
(747)
|
|
(8)
|
Barclays International
|
(3,059)
|
(306)
|
(2,753)
|
|
(2,543)
|
-
|
(2,543)
|
|
(8)
|
Head Office
|
(523)
|
(453)
|
(70)
|
|
(97)
|
-
|
(97)
|
|
28
|
Total operating costs
|
(4,735)
|
(927)
|
(3,808)
|
|
(3,748)
|
-
|
(3,748)
|
|
(2)
|
UK bank levy
|
(180)
|
-
|
(180)
|
|
(176)
|
-
|
(176)
|
|
(2)
|
Litigation and conduct
|
(5)
|
-
|
(5)
|
|
(79)
|
-
|
(79)
|
|
94
|
Total operating expenses
|
(4,920)
|
(927)
|
(3,993)
|
|
(4,003)
|
-
|
(4,003)
|
|
-
|
Other net
(expenses)/income
|
(16)
|
-
|
(16)
|
|
10
|
-
|
10
|
|
|
Profit before impairment
|
662
|
(927)
|
1,589
|
|
1,808
|
-
|
1,808
|
|
(12)
|
Credit impairment
charges
|
(552)
|
-
|
(552)
|
|
(498)
|
-
|
(498)
|
|
(11)
|
Profit before tax
|
110
|
(927)
|
1,037
|
|
1,310
|
-
|
1,310
|
|
(21)
|
Attributable (loss)/profit
|
(111)
|
(739)
|
628
|
|
1,036
|
-
|
1,036
|
|
(39)
|
|
|
|
|
|
|
|
|
|
|
Average tangible shareholders'
equity (£bn)
|
48.9
|
|
48.9
|
|
46.7
|
|
46.7
|
|
|
Return on average tangible shareholders'
equity
|
(0.9)%
|
|
5.1%
|
|
8.9%
|
|
8.9%
|
|
|
Cost: income ratio
|
88%
|
|
71%
|
|
69%
|
|
69%
|
|
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and
impact of the Over-issuance of Securities in 2022
|
Group Finance Director's Review
2023 Group performance
•Barclays delivered a profit before tax of
£6,557m (2022: £7,012m), RoTE of 9.0% (2022: 10.4%) and EPS of
27.7p (2022: 30.8p)
•Group income increased 2% to £25,378m
primarily driven by the net benefit from the higher interest rate
environment, including continued structural hedge income, and
higher balances in US cards, partially offset by the non-repeat of
the prior year income from hedging arrangements related to the
Over-issuance of Securities and lower income in Global Markets and
Investment Banking
•Group total operating expenses increased to
£16,931m (2022: £16,730m)
-Group operating
expenses excluding litigation and conduct charges increased to
£16,894m (2022: £15,133m) driven by:
-£927m of
structural cost actions in Q423 supporting
the Group's structural transformation and updated strategic
priorities, bringing total structural cost actions for FY23 to
£1,046m (2022: £151m)
-the impact of
business growth and the Kensington Mortgage Company (KMC)
acquisition in Barclays UK, as well as investments in resilience
and controls
-the impact of
inflation on the Group was more than offset by efficiency
savings
-Litigation and
conduct charges decreased to £37m (2022: £1,597m). Prior year
charges included £966m of costs related to the Over-issuance of
Securities, £282m of customer remediation costs relating to legacy
loan portfolios in CC&P and £165m related to the Devices
Settlements1
•Credit impairment charges were £1,881m (2022:
£1,220m), driven by higher delinquencies in US cards, which
was anticipated and led to higher coverage ratios. Total coverage
ratio remains strong at 1.4% (December 2022: 1.4%)
•The effective tax rate (ETR) was 18.8% (2022:
14.8%). The 2023 ETR includes tax relief
on payments made under Additional Tier 1 (AT1) instruments and on
holdings of inflation-linked government bonds
•Attributable profit was £4,274m (2022:
£5,023m)
•Total assets decreased to £1,477.5bn (December
2022: £1,513.7bn) reflecting a decrease in derivatives
driven by lower market volatility and a decrease in the forward
interest rates, and a reduction in the liquidity pool primarily
driven by lower customer deposits in Barclays UK reflecting broader
market trends. This was partially offset by an increase in trading
securities and client balances as we facilitate client demand in
Global Markets
•TNAV per share increased to 331p (December
2022: 295p) including: EPS of 27.7p, positive cash flow
hedge reserve movements of 22p, and 8p from the reduction in share
count following share buybacks of £1.25bn completed in 2023. This
was partially offset by an 8p reduction from dividends paid during
2023 and net negative other reserve movements
Group capital and leverage
•The CET1 ratio decreased to 13.8%
(December 2022: 13.9%) as RWAs increased by £6.2bn to £342.7bn
partially offset by an increase in CET1 capital of £0.4bn to
£47.3bn:
-c.125bps
increase from 2023 attributable profit, including the c.25bps
negative impact of structural cost actions, of which c.10bps are
offset in other capital movements
-c.70bps
decrease driven by returns to shareholders including the 8p per
share total dividend and £1.25bn of share buybacks announced with
FY22 and H123 results
-c.10bps
decrease from other capital movements, including the impact of
regulatory change on 1 January 2023 relating to IFRS 9 transitional
relief, the impact of the KMC acquisition, and movements in other
regulatory capital deductions
-c.50bps
decrease as a result of a £13.2bn increase in RWAs excluding the
impact of foreign exchange movements, primarily driven by higher
CIB and CC&P RWAs
-An £8.2bn
decrease in RWAs as a result of foreign exchange movements was
offset by a £1.1bn decrease in CET1 capital due to a decrease in
the currency translation reserve
•The UK leverage ratio decreased
to 5.2% (December 2022: 5.3%) primarily due to a £38.3bn increase
in leverage exposure to £1,168.3bn, largely driven by an increase
in trading portfolio assets within Global Markets
1
|
Refers to the settlements with the SEC and Commodity Futures
Trading Commission (CFTC) in connection with their investigations
of the use of unauthorised devices for business
communications.
|
Group funding and liquidity
•The liquidity metrics remain well
above regulatory requirements, underpinned by well-diversified
sources of funding, a stable global deposit franchise and a highly
liquid balance sheet
•The liquidity pool was £298.1bn
(December 2022: £318.0bn). The decrease in the liquidity pool was
driven by a reduction in wholesale funding, a slight reduction in
overall deposits, with a decrease in Barclays UK deposits being
largely offset by growth in Corporate deposits, and changes in
business funding consumption
•The average1 Liquidity
Coverage Ratio (LCR) increased to 161% (December 2022: 156%),
equivalent to a surplus of £117.7bn (December 2022:
£114.4bn)
•Total deposits remained largely
stable at £538.8bn (December 2022: £545.8bn)
•The average2 Net
Stable Funding Ratio (NSFR) was 138% (December 2022: 137%), which
represents a £167.1bn (December 2022: £155.6bn) surplus above the
100% regulatory requirement
•Wholesale funding outstanding, excluding repurchase
agreements, was £176.8bn (December 2022: £184.0bn)
•The
Group issued £14.1bn equivalent of minimum requirement for own
funds and eligible liabilities (MREL) instruments from Barclays PLC
(the Parent company) during 2023. The Group has a strong MREL
position with a ratio of 33.6%, which is in excess of the
regulatory requirement of 30.1% plus a confidential, institution
specific, Prudential Regulation Authority (PRA) buffer
Other matters
•KMC
acquisition: on 1 March 2023,
Barclays completed the acquisition of UK specialist mortgage lender
KMC, including a portfolio of mortgages totalling £2.2bn with an
RWA impact of £0.8bn
•Combination of the Private
Bank and Barclays UK Wealth business: on 1 May 2023, WM&I was transferred from Barclays UK to
CC&P, creating a combined Private Bank and Wealth Management
business. The combination seeks to improve customer and client
experience and create business synergies:
-The business transferred
includes c.£28bn of invested assets,
generating annualised income of c.£0.2bn
•Purchase of Tesco
Bank: Barclays announced on 9
February 2024 that Barclays Bank UK PLC has entered into an
agreement with Tesco Personal Finance plc (operating using the
trading name "Tesco Bank") to acquire its retail banking business,
which includes credit cards, unsecured personal loans, deposits and
the operating infrastructure. Additionally, upon completion,
Barclays Bank UK PLC will enter into a long-term, exclusive
strategic partnership with Tesco Stores Limited for an initial
period of 10 years to market and distribute credit cards, unsecured
personal loans and deposits using the Tesco brand, as well as
explore other opportunities to offer financial services to Tesco
customers. The transaction involves the acquisition of
approximately £8.3bn of unsecured lending balances, including
approximately £4.2bn of gross credit card receivables and £4.1bn of
gross unsecured personal loans, together with approximately £6.7bn
in customer deposits. The acquisition is expected to reduce
Barclays' CET1 ratio by c.30bps on completion, which is expected to
occur in H224, subject to court sanction and regulatory
approvals
•Sale of German consumer
finance business: Barclays is
currently engaged in a process to sell its German consumer finance
business (comprising credit cards, unsecured personal loans and
deposits), currently included within CC&P, as part of our
ambition to simplify Barclays and support our focus on growing our
key businesses. Any sale is expected to complete in 2024 and would
be expected to be accretive to Barclays' CET1 ratio
•Barclays Payments
business: going forward, Barclays
will separate its issuing and merchant acquiring Payments
businesses, moving the issuing business to the UK Corporate Bank
and the merchant acquiring business to Head Office. Barclays has a
UK market leading position in merchant acquiring, and continued
investment into our propositions, particularly for Small and Medium
Sized Enterprise (SME) clients, and leveraging greater scale are
important. Barclays is considering various options to achieve this
and has commenced a review of strategic partnership opportunities
for the business. In connection with this, related goodwill and
intangible assets of c.£0.3bn have been written down as structural
cost actions, predominantly within Head Office
•Disposal of Italian retail
mortgages: Barclays is in
discussions with respect to the disposal of its Italian retail
mortgage book currently in Head Office. Should the disposal occur,
it would be expected to generate a loss on sale but to be broadly
neutral to Barclays' CET1 ratio as a result of a reduction in
RWAs
•US credit card model
migration to IRB: Barclays expects
to migrate US credit card models from standardised to IRB in H224.
This is a result of the PRA objective requiring banks using IRB
modelling to apply it to at least 85% of their credit risk RWAs.
This is expected to result in an increase in RWAs of c.£16bn in
H224. Outside of US cards, Barclays is not expecting any further
material impact from model migrations of current portfolios and has
a number of planned mitigating actions
•FCA motor finance
review: in January 2024, the UK
Financial Conduct Authority (FCA) announced that it was appointing
a skilled person to undertake a review of the historical use of
discretionary commission arrangements and sales in the motor
finance market across several firms. The FCA plans to set out next
steps on this matter by the end of September 2024
Anna Cross, Group Finance Director
1
|
Represents average of the last 12 spot month end
ratios.
|
2
|
Represents average of the last four spot quarter end
ratios.
|
Results by Business
Barclays UK
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
6,431
|
5,893
|
9
|
|
1,575
|
1,600
|
(2)
|
Net fee, commission and other
income
|
1,156
|
1,366
|
(15)
|
|
217
|
370
|
(41)
|
Total income
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
Operating costs
|
(4,393)
|
(4,260)
|
(3)
|
|
(1,153)
|
(1,108)
|
(4)
|
UK bank levy
|
(30)
|
(26)
|
(15)
|
|
(30)
|
(26)
|
(15)
|
Litigation and conduct
|
8
|
(41)
|
|
|
(4)
|
(13)
|
69
|
Total operating expenses
|
(4,415)
|
(4,327)
|
(2)
|
|
(1,187)
|
(1,147)
|
(3)
|
Other net income
|
-
|
-
|
|
|
-
|
1
|
|
Profit before impairment
|
3,172
|
2,932
|
8
|
|
605
|
824
|
(27)
|
Credit impairment
charges
|
(304)
|
(286)
|
(6)
|
|
(37)
|
(157)
|
76
|
Profit before tax
|
2,868
|
2,646
|
8
|
|
568
|
667
|
(15)
|
Attributable profit
|
1,962
|
1,877
|
5
|
|
382
|
474
|
(19)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
19.2%
|
18.7%
|
|
|
14.9%
|
18.7%
|
|
Average allocated tangible equity
(£bn)
|
10.2
|
10.0
|
|
|
10.2
|
10.2
|
|
Cost: income ratio
|
58%
|
60%
|
|
|
66%
|
58%
|
|
Loan loss rate (bps)
|
14
|
13
|
|
|
7
|
27
|
|
Net interest margin
|
3.13%
|
2.86%
|
|
|
3.07%
|
3.10%
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
UK mortgage balances
(£bn)
|
160.9
|
162.2
|
|
|
|
|
|
Mortgage gross lending flow
(£bn)
|
22.7
|
30.3
|
|
|
|
|
|
Average loan to value of mortgage
portfolio1
|
54%
|
50%
|
|
|
|
|
|
Average loan to value of new
mortgage lending1
|
63%
|
68%
|
|
|
|
|
|
Number of branches
|
306
|
481
|
|
|
|
|
|
Mobile banking active customers
(m)
|
11.0
|
10.5
|
|
|
|
|
|
30 day arrears rate - Barclaycard
Consumer UK
|
0.9%
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at
amortised cost
|
202.8
|
205.1
|
|
|
|
|
|
Total assets
|
293.1
|
313.2
|
|
|
|
|
|
Customer deposits at amortised
cost
|
241.1
|
258.0
|
|
|
|
|
|
Loan: deposit ratio
|
92%
|
87%
|
|
|
|
|
|
Risk weighted assets
|
73.5
|
73.1
|
|
|
|
|
|
Period end allocated tangible
equity
|
10.2
|
10.1
|
|
|
|
|
|
1
|
Average loan to value (LTV) of mortgages is balance weighted
and reflects both residential and buy-to-let (BTL) mortgage
portfolios within the Home Loans portfolio.
|
Analysis of Barclays UK
|
Year ended
|
|
Three months
ended
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Personal Banking
|
4,729
|
4,540
|
4
|
|
1,067
|
1,229
|
(13)
|
Barclaycard Consumer UK
|
964
|
1,093
|
(12)
|
|
242
|
269
|
(10)
|
Business Banking
|
1,894
|
1,626
|
16
|
|
483
|
472
|
2
|
Total income
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
|
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
|
|
|
Personal Banking
|
(170)
|
(167)
|
(2)
|
|
35
|
(120)
|
|
Barclaycard Consumer UK
|
(162)
|
30
|
|
|
(73)
|
(12)
|
|
Business Banking
|
28
|
(149)
|
|
|
1
|
(25)
|
|
Total credit impairment charges
|
(304)
|
(286)
|
(6)
|
|
(37)
|
(157)
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
|
|
|
|
Personal Banking
|
170.1
|
169.7
|
|
|
|
|
|
Barclaycard Consumer UK
|
9.7
|
9.2
|
|
|
|
|
|
Business Banking
|
23.0
|
26.2
|
|
|
|
|
|
Total loans and advances to customers at amortised
cost
|
202.8
|
205.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised
cost
|
|
|
|
|
|
|
|
Personal Banking
|
185.4
|
195.6
|
|
|
|
|
|
Barclaycard Consumer UK
|
-
|
-
|
|
|
|
|
|
Business Banking
|
55.7
|
62.4
|
|
|
|
|
|
Total customer deposits at amortised cost
|
241.1
|
258.0
|
|
|
|
|
|
Barclays UK delivered a RoTE of 19.2%
(20.4% excluding Q423 structural cost
actions) supported by the higher
interest rate environment and the continued investment in our
transformation into a next-generation, digitised consumer
bank.
2023 compared to 2022
Income statement
•Profit before tax increased 8% to £2,868m with
a RoTE of 19.2% (2022: 18.7%)
•Total income increased 5% to £7,587m.
NII increased 9% to £6,431m with a NIM of 3.13% (2022: 2.86%), as
higher interest rates and associated structural hedge benefit
outweighed mortgage margin pressure and adverse deposit dynamics
reflecting wider market trends. Net fee, commission and other
income decreased 15% to £1,156m including the impact of the
transfer of WM&I to CC&P
-Personal
Banking income increased 4% to £4,729m, driven by higher interest
rates, partially offset by mortgage margin compression and
movements in deposit volumes and mix resulting from cost of living
pressures and customers searching for yield
-Barclaycard
Consumer UK income decreased 12% to £964m as higher customer spend
volumes were more than offset by lower interest earning lending
balances following repayments and ongoing prudent risk
management
-Business
Banking income increased 16% to £1,894m driven by higher interest
rates, partially offset by lower government scheme lending as
repayments continue and lower deposit volumes
•Total operating expenses increased 2% to
£4,415m, including £168m impact from Q423 structural cost
actions. Excluding the impact of Q423 structural cost actions,
operating expenses decreased 2%, driven by the transfer of WM&I
to CC&P partially offset by the impact of inflation and the
acquisition of KMC. Ongoing efficiency savings continue to be
reinvested, including in our transformation programme to support
sustainable improvement to the cost: income ratio over the longer
term
•Credit impairment charges increased to £304m
(2022: £286m), consistent with low delinquencies in UK cards
and a high quality mortgage lending portfolio. UK cards 30 and 90
day arrears remained low at 0.9% (Q422: 0.9%) and 0.2% (Q422: 0.2%)
respectively. The UK cards total coverage ratio was 6.8% (December
2022: 7.6%)
Balance sheet
•Loans and advances to customers at amortised
cost decreased by 1% to £202.8bn (December 2022: £205.1bn),
primarily reflecting continued repayment of government scheme
lending in Business Banking, subdued mortgage lending amid lower
market demand, partially offset by the acquisition of
KMC
•Customer deposits at amortised cost decreased
7% to £241.1bn (December 2022: £258.0bn). Primarily driven
by reduced current account balances in Personal and Business
Banking, reflecting broader market trends. The loan: deposit ratio
increased to 92% (December 2022: 87%)
•RWAs increased to £73.5bn (December 2022:
£73.1bn), primarily due to the acquisition of KMC, broadly
offset by reduction across lending portfolios
Barclays International
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
6,197
|
4,927
|
26
|
|
1,458
|
1,465
|
-
|
Net trading income
|
5,878
|
7,709
|
(24)
|
|
720
|
1,169
|
(38)
|
Net fee, commission and other
income
|
5,843
|
5,231
|
12
|
|
1,576
|
1,228
|
28
|
Total income
|
17,918
|
17,867
|
-
|
|
3,754
|
3,862
|
(3)
|
Operating costs
|
(11,578)
|
(10,361)
|
(12)
|
|
(3,059)
|
(2,543)
|
(20)
|
UK bank levy
|
(136)
|
(133)
|
(2)
|
|
(136)
|
(133)
|
(2)
|
Litigation and conduct
|
(47)
|
(1,503)
|
97
|
|
(7)
|
(67)
|
90
|
Total operating expenses
|
(11,761)
|
(11,997)
|
2
|
|
(3,202)
|
(2,743)
|
(17)
|
Other net
(expenses)/income
|
(2)
|
28
|
|
|
(14)
|
5
|
|
Profit before impairment
|
6,155
|
5,898
|
4
|
|
538
|
1,124
|
(52)
|
Credit impairment
charges
|
(1,548)
|
(933)
|
(66)
|
|
(511)
|
(328)
|
(56)
|
Profit before tax
|
4,607
|
4,965
|
(7)
|
|
27
|
796
|
(97)
|
Attributable
profit/(loss)
|
3,025
|
3,844
|
(21)
|
|
(124)
|
625
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
8.2%
|
10.2%
|
|
|
(1.3)%
|
6.4%
|
|
Average allocated tangible equity
(£bn)
|
37.0
|
37.6
|
|
|
37.1
|
38.9
|
|
Cost: income ratio
|
66%
|
67%
|
|
|
85%
|
71%
|
|
Loan loss rate (bps)
|
87
|
54
|
|
|
114
|
75
|
|
Net interest margin
|
5.78%
|
5.02%
|
|
|
5.43%
|
5.71%
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at
amortised cost
|
126.8
|
133.7
|
|
|
|
|
|
Loans and advances to banks at
amortised cost
|
8.4
|
8.7
|
|
|
|
|
|
Debt securities at amortised
cost
|
39.0
|
27.2
|
|
|
|
|
|
Loans and advances at amortised cost
|
174.2
|
169.6
|
|
|
|
|
|
Trading portfolio
assets
|
174.6
|
133.8
|
|
|
|
|
|
Derivative financial instrument
assets
|
255.2
|
301.7
|
|
|
|
|
|
Financial assets at fair value
through the income statement
|
203.7
|
210.5
|
|
|
|
|
|
Cash collateral and settlement
balances
|
103.6
|
107.7
|
|
|
|
|
|
Other assets
|
254.8
|
258.0
|
|
|
|
|
|
Total assets
|
1,166.1
|
1,181.3
|
|
|
|
|
|
Deposits at amortised
cost
|
297.7
|
287.6
|
|
|
|
|
|
Derivative financial instrument
liabilities
|
249.8
|
288.9
|
|
|
|
|
|
Loan: deposit ratio
|
58%
|
59%
|
|
|
|
|
|
Risk weighted assets
|
259.1
|
254.8
|
|
|
|
|
|
Period end allocated tangible
equity
|
37.6
|
36.8
|
|
|
|
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
2,551
|
1,949
|
31
|
|
530
|
548
|
(3)
|
Net trading income
|
6,056
|
7,733
|
(22)
|
|
763
|
1,201
|
(36)
|
Net fee, commission and other
income
|
4,003
|
3,686
|
9
|
|
1,097
|
827
|
33
|
Total income
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Operating costs
|
(8,335)
|
(7,630)
|
(9)
|
|
(2,134)
|
(1,796)
|
(19)
|
UK bank levy
|
(129)
|
(126)
|
(2)
|
|
(129)
|
(126)
|
(2)
|
Litigation and conduct
|
6
|
(1,189)
|
|
|
(3)
|
(55)
|
95
|
Total operating expenses
|
(8,458)
|
(8,945)
|
5
|
|
(2,266)
|
(1,977)
|
(15)
|
Other net
(expenses)/income
|
(3)
|
2
|
|
|
(6)
|
2
|
|
Profit before impairment
|
4,149
|
4,425
|
(6)
|
|
118
|
601
|
(80)
|
Credit impairment
charges
|
(23)
|
(119)
|
81
|
|
(23)
|
(41)
|
44
|
Profit before tax
|
4,126
|
4,306
|
(4)
|
|
95
|
560
|
(83)
|
Attributable
profit/(loss)
|
2,667
|
3,364
|
(21)
|
|
(61)
|
454
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
8.4%
|
10.2%
|
|
|
(0.8)%
|
5.4%
|
|
Average allocated tangible equity
(£bn)
|
31.7
|
32.8
|
|
|
31.6
|
33.7
|
|
Cost: income ratio
|
67%
|
67%
|
|
|
95%
|
77%
|
|
Loan loss rate (bps)
|
2
|
9
|
|
|
7
|
13
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at
amortised cost
|
87.8
|
90.5
|
|
|
|
|
|
Loans and advances to banks at
amortised cost
|
7.4
|
8.1
|
|
|
|
|
|
Debt securities at amortised
cost
|
38.9
|
27.2
|
|
|
|
|
|
Loans and advances at amortised cost
|
134.1
|
125.8
|
|
|
|
|
|
Trading portfolio
assets
|
174.5
|
133.7
|
|
|
|
|
|
Derivative financial instrument
assets
|
255.1
|
301.6
|
|
|
|
|
|
Financial assets at fair value
through the income statement
|
203.6
|
210.5
|
|
|
|
|
|
Cash collateral and settlement
balances
|
102.9
|
106.9
|
|
|
|
|
|
Other assets
|
205.4
|
222.6
|
|
|
|
|
|
Total assets
|
1,075.6
|
1,101.1
|
|
|
|
|
|
Deposits at amortised
cost
|
217.7
|
205.8
|
|
|
|
|
|
Derivative financial instrument
liabilities
|
249.7
|
288.9
|
|
|
|
|
|
Risk weighted assets
|
216.8
|
215.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
FICC
|
4,845
|
5,695
|
(15)
|
|
724
|
976
|
(26)
|
Equities
|
2,373
|
3,149
|
(25)
|
|
431
|
440
|
(2)
|
Global Markets
|
7,218
|
8,844
|
(18)
|
|
1,155
|
1,416
|
(18)
|
Advisory
|
593
|
768
|
(23)
|
|
171
|
197
|
(13)
|
Equity capital markets
|
219
|
166
|
32
|
|
38
|
40
|
(5)
|
Debt capital markets
|
1,148
|
1,281
|
(10)
|
|
301
|
243
|
24
|
Investment Banking fees
|
1,960
|
2,215
|
(12)
|
|
510
|
480
|
6
|
Corporate lending
|
475
|
(231)
|
|
|
40
|
(128)
|
|
Transaction banking
|
2,957
|
2,540
|
16
|
|
685
|
808
|
(15)
|
Corporate
|
3,432
|
2,309
|
49
|
|
725
|
680
|
7
|
Total income
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
3,646
|
2,979
|
22
|
|
928
|
918
|
1
|
Net fee, commission, trading and
other income
|
1,662
|
1,520
|
9
|
|
436
|
368
|
18
|
Total income
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
Operating costs
|
(3,243)
|
(2,731)
|
(19)
|
|
(925)
|
(747)
|
(24)
|
UK bank levy
|
(7)
|
(7)
|
-
|
|
(7)
|
(7)
|
-
|
Litigation and conduct
|
(53)
|
(314)
|
83
|
|
(4)
|
(12)
|
67
|
Total operating expenses
|
(3,303)
|
(3,052)
|
(8)
|
|
(936)
|
(766)
|
(22)
|
Other net
income/(expenses)
|
1
|
26
|
(96)
|
|
(8)
|
3
|
|
Profit before impairment
|
2,006
|
1,473
|
36
|
|
420
|
523
|
(20)
|
Credit impairment
charges
|
(1,525)
|
(814)
|
(87)
|
|
(488)
|
(287)
|
(70)
|
Profit before tax
|
481
|
659
|
(27)
|
|
(68)
|
236
|
|
Attributable
profit/(loss)
|
358
|
480
|
(25)
|
|
(63)
|
171
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
6.7%
|
10.0%
|
|
|
(4.5)%
|
13.0%
|
|
Average allocated tangible equity
(£bn)
|
5.3
|
4.8
|
|
|
5.5
|
5.2
|
|
Cost: income ratio
|
62%
|
68%
|
|
|
69%
|
60%
|
|
Loan loss rate (bps)
|
354
|
175
|
|
|
449
|
245
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
US cards 30 day arrears
rate
|
2.9%
|
2.2%
|
|
|
|
|
|
US cards customer FICO score
distribution
|
|
|
|
|
|
|
|
<660
|
12%
|
11%
|
|
|
|
|
|
>660
|
88%
|
89%
|
|
|
|
|
|
Total number of payments
clients
|
402k
|
395k
|
|
|
|
|
|
Value of payments processed
(£bn)1
|
324
|
307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at
amortised cost
|
39.0
|
43.2
|
|
|
|
|
|
Total assets
|
90.5
|
80.2
|
|
|
|
|
|
Deposits at amortised
cost
|
80.0
|
81.8
|
|
|
|
|
|
Risk weighted assets
|
42.3
|
38.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
International Cards and Consumer
Bank
|
3,569
|
2,913
|
23
|
|
944
|
860
|
10
|
Private Bank
|
1,190
|
1,014
|
17
|
|
306
|
285
|
7
|
Payments
|
549
|
572
|
(4)
|
|
114
|
141
|
(19)
|
Total income
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
1
|
Includes £311bn (2022: £296bn) of merchant acquiring
payments.
|
Barclays International delivered a RoTE of 8.2% (8.8% excluding Q423 structural cost actions of
£306m) despite the reduced banking
industry fee pool and lower client activity in Global Markets.
Excluding Q423 structural cost actions, CIB delivered a RoTE of
8.9%, reflecting the benefits of income
diversification and investment in sustainable growth, and CC&P
delivered a RoTE of 8.6%, reflecting the
impact of higher impairment charges, partially offset by balance
growth and increased income from the continued investment in the
business. Barclays International has a diverse income profile
across businesses and geographies including a significant presence
in the US.
2023 compared to 2022
Income statement
•Barclays International RoTE was 8.2% (2022:
10.2%) with a profit before tax of £4,607m (2022: £4,965m)
including £306m (CIB: £188m, CC&P: £118m) of Q423 structural
cost actions. CIB delivered a RoTE of 8.4% (2022: 10.2%) and
CC&P 6.7% (2022: 10.0%)
-Total income
was broadly flat at £17,918m, prior year included a £292m income
impact from hedging arrangements related to the Over-issuance of
securities
-Total operating
expenses decreased 2% to £11,761m including £306m of structural
cost actions in Q423. Prior year included £966m of litigation and
conduct charges relating to the Over-issuance of
securities
•Excluding the impact of Q423 structural cost
actions and the Over-issuance of Securities in the prior
year1:
-Total income
increased to £17,918m (2022: 17,575m)
-CIB income
decreased 4% to £12,610m (2022: £13,076m)
-Global Markets
income decreased 16% to £7,218m against a record prior year
comparative2. FICC income decreased 15% to £4,845m,
reflecting lower market volatility and client activity. Equities
income decreased 17% to £2,373m, driven by
a decline in derivatives income reflecting less volatile equity
market conditions.
-Investment
Banking fees decreased 12% to £1,960m due to the reduced fee pool
across the industry3. Advisory decreased 23% and Debt
capital markets decreased 10%, while Equity capital markets
increased 32%
-Within
Corporate, Transaction banking income increased 16% to £2,957m
driven by improved deposit margins in the higher interest rate
environment with stable deposit balances. Corporate lending income
increased to £475m (2022: £231m loss) mainly driven by lower costs
of hedging and lower fair value losses on leverage finance lending
net of mark to market gains on related hedges
-CC&P income
increased 18% to £5,308m
-International
Cards and Consumer Bank income increased 23% to £3,569m reflecting
higher cards balances and improved margins, including the Gap Inc.
portfolio acquisition in Q222
-Private Bank
income increased 17% to £1,190m, due to the transfer of WM&I
from Barclays UK, client balance growth and improved deposits
margin in the higher rate environment
-Payments income
decreased 4% to £549m driven by margin
compression
-Total operating
expenses increased 4% to £11,455m
-CIB total
operating expenses increased 4% to
£8,270m, reflecting investment in talent and technology, and the
impact of inflation, partially offset by the non-repeat of prior
year litigation and conduct charges mainly relating to Device
Settlements4 and efficiency savings
-CC&P total
operating expenses increased 4% to
£3,185m, driven by higher investment spend
to support growth, mainly in marketing and partnership costs, the
transfer of WM&I from Barclays UK, and the impact of inflation,
partially offset by the non-repeat of prior year litigation and
conduct charges mainly relating to customer remediation costs and
efficiency savings
•Credit impairment charges were
£1,548m (2022: £933m)
-CIB credit
impairment charges were £23m (2022: £119m), driven by single name
charges, partially offset by the benefit of credit
protection
-CC&P credit
impairment charges increased to £1,525m (2022: £814m), driven by
higher delinquencies in US cards, which was anticipated and led to
higher coverage ratios. 30 and 90 day arrears at 2.9% (Q422: 2.2%)
and 1.5% (Q422: 1.2%) respectively. The US cards total coverage
ratio was 10.2% (December 2022: 8.1%)
1
|
The Over-issuance of Securities in the prior year impacted
Equities within Global markets, CIB and Barclays International
only.
|
2
|
Period covering 2014-2023. Pre 2014 data was not restated
following re-segmentation in 2016.
|
3
|
Data source: Dealogic for the period covering 1 January to 31
December 2023.
|
4
|
Refers to the settlements with the SEC and CFTC in connection
with their investigations of the use of unauthorised devices for
business communications.
|
Balance sheet
•Loans and advances at
amortised cost increased £4.6bn to
£174.2bn driven by increased
investment in debt securities in Treasury. In addition, there has
been balance growth in CC&P which was offset by net loan
repayments in CIB and transfer to held for sale of the German
consumer finance business
•Trading portfolio assets increased £40.8bn to
£174.6bn driven by an increase in debt and equity securities
as we facilitate client demand in Global Markets
•Derivative assets and liabilities decreased
£46.5bn and £39.1bn to £255.2bn and £249.8bn respectively
reflecting lower market volatility and a decrease in the forward
interest rates
•Financial assets at fair value through the
income statement decreased £6.8bn to £203.7bn driven by
increased secured lending which was more than offset by trade
optimisations
•Deposits at amortised cost increased £10.1bn
to £297.7bn driven by increased deposits in CIB
•RWAs increased to £259.1bn (December 2022:
£254.8bn) driven by higher CC&P RWAs
Head Office
|
Year ended
|
|
Three months
ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
81
|
(248)
|
|
|
106
|
(324)
|
|
Net fee, commission and other
income
|
(208)
|
78
|
|
|
(54)
|
293
|
|
Total income
|
(127)
|
(170)
|
25
|
|
52
|
(31)
|
|
Operating costs
|
(743)
|
(336)
|
|
|
(523)
|
(97)
|
|
UK bank levy
|
(14)
|
(17)
|
18
|
|
(14)
|
(17)
|
18
|
Litigation and conduct
|
2
|
(53)
|
|
|
6
|
1
|
|
Total operating expenses
|
(755)
|
(406)
|
(86)
|
|
(531)
|
(113)
|
|
Other net
(expenses)/income
|
(7)
|
(22)
|
68
|
|
(2)
|
4
|
|
Loss before impairment
|
(889)
|
(598)
|
(49)
|
|
(481)
|
(140)
|
|
Credit impairment
charges
|
(29)
|
(1)
|
|
|
(4)
|
(13)
|
69
|
Loss before tax
|
(918)
|
(599)
|
(53)
|
|
(485)
|
(153)
|
|
Attributable loss
|
(713)
|
(698)
|
(2)
|
|
(369)
|
(63)
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Average allocated tangible equity
(£bn)
|
0.2
|
0.7
|
|
|
1.6
|
(2.4)
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Total assets
|
18.3
|
19.2
|
|
|
|
|
|
Risk weighted assets
|
10.2
|
8.6
|
|
|
|
|
|
Period end allocated tangible
equity
|
2.3
|
(0.2)
|
|
|
|
|
|
2023 compared to 2022
Income statement
•Loss before tax was £918m (2022:
£599m) including £453m Q423 structural cost actions
•Total income was an expense of £127m (2022:
£170m) primarily reflecting hedge accounting and treasury
items
•Total operating expenses increased to £755m
(2022: £406m) primarily driven by £453m of Q423 structural cost actions
partially offset by lower litigation and conduct charges
-Head Office
structural cost actions principally include the software
intangibles impairment related to the merchant acquiring business
(c.£260m), and the Canary Wharf office lease exit
(c.£140m)
Balance sheet
•RWAs were £10.2bn (December 2022:
£8.6bn) primarily driven by methodology and policy updates,
and increases in non-customer assets
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
3,139
|
3,247
|
3,270
|
3,053
|
|
2,741
|
3,068
|
2,422
|
2,341
|
Net fee, commission and other
income
|
2,459
|
3,011
|
3,015
|
4,184
|
|
3,060
|
2,883
|
4,286
|
4,155
|
Total income
|
5,598
|
6,258
|
6,285
|
7,237
|
|
5,801
|
5,951
|
6,708
|
6,496
|
Operating costs
|
(4,735)
|
(3,949)
|
(3,919)
|
(4,111)
|
|
(3,748)
|
(3,939)
|
(3,682)
|
(3,588)
|
UK bank levy
|
(180)
|
-
|
-
|
-
|
|
(176)
|
-
|
-
|
-
|
Litigation and conduct
|
(5)
|
-
|
(33)
|
1
|
|
(79)
|
339
|
(1,334)
|
(523)
|
Total operating expenses
|
(4,920)
|
(3,949)
|
(3,952)
|
(4,110)
|
|
(4,003)
|
(3,600)
|
(5,016)
|
(4,111)
|
Other net
(expenses)/income
|
(16)
|
9
|
3
|
(5)
|
|
10
|
(1)
|
7
|
(10)
|
Profit before impairment
|
662
|
2,318
|
2,336
|
3,122
|
|
1,808
|
2,350
|
1,699
|
2,375
|
Credit impairment
charges
|
(552)
|
(433)
|
(372)
|
(524)
|
|
(498)
|
(381)
|
(200)
|
(141)
|
Profit before tax
|
110
|
1,885
|
1,964
|
2,598
|
|
1,310
|
1,969
|
1,499
|
2,234
|
Tax credit/(charges)
|
23
|
(343)
|
(353)
|
(561)
|
|
33
|
(249)
|
(209)
|
(614)
|
Profit after tax
|
133
|
1,542
|
1,611
|
2,037
|
|
1,343
|
1,720
|
1,290
|
1,620
|
Non-controlling
interests
|
(25)
|
(9)
|
(22)
|
(8)
|
|
(22)
|
(2)
|
(20)
|
(1)
|
Other equity instrument
holders
|
(219)
|
(259)
|
(261)
|
(246)
|
|
(285)
|
(206)
|
(199)
|
(215)
|
Attributable (loss)/profit
|
(111)
|
1,274
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average tangible
shareholders' equity
|
(0.9)%
|
11.0%
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
Average tangible shareholders'
equity (£bn)
|
48.9
|
46.5
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
Cost: income ratio
|
88%
|
63%
|
63%
|
57%
|
|
69%
|
60%
|
75%
|
63%
|
Loan loss rate (bps)
|
54
|
42
|
37
|
52
|
|
49
|
36
|
20
|
15
|
Basic earnings per
share
|
(0.7)p
|
8.3p
|
8.6p
|
11.3p
|
|
6.5p
|
9.4p
|
6.4p
|
8.4p
|
Basic weighted average number of
shares (m)
|
15,092
|
15,405
|
15,523
|
15,770
|
|
15,828
|
16,148
|
16,684
|
16,682
|
Period end number of shares
(m)
|
15,155
|
15,239
|
15,556
|
15,701
|
|
15,871
|
15,888
|
16,531
|
16,762
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital
management1
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at
amortised cost
|
333.3
|
339.6
|
337.4
|
343.6
|
|
343.3
|
346.3
|
337.2
|
325.8
|
Loans and advances to banks at
amortised cost
|
9.5
|
11.5
|
10.9
|
11.0
|
|
10.0
|
12.5
|
12.5
|
11.4
|
Debt securities at amortised
cost
|
56.7
|
54.3
|
53.1
|
48.9
|
|
45.5
|
54.8
|
46.1
|
34.5
|
Loans and advances at amortised cost
|
399.5
|
405.4
|
401.4
|
403.5
|
|
398.8
|
413.7
|
395.8
|
371.7
|
Loans and advances at amortised
cost impairment coverage ratio
|
1.4%
|
1.4%
|
1.4%
|
1.4%
|
|
1.4%
|
1.4%
|
1.4%
|
1.5%
|
Total assets
|
1,477.5
|
1,591.7
|
1,549.7
|
1,539.1
|
|
1,513.7
|
1,726.9
|
1,589.2
|
1,496.1
|
Deposits at amortised
cost
|
538.8
|
561.3
|
554.7
|
555.7
|
|
545.8
|
574.4
|
568.7
|
546.5
|
Tangible net asset value per
share
|
331p
|
316p
|
291p
|
301p
|
|
295p
|
286p
|
297p
|
294p
|
Common equity tier 1
ratio
|
13.8%
|
14.0%
|
13.8%
|
13.6%
|
|
13.9%
|
13.8%
|
13.6%
|
13.8%
|
Common equity tier 1
capital
|
47.3
|
48.0
|
46.6
|
46.0
|
|
46.9
|
48.6
|
46.7
|
45.3
|
Risk weighted assets
|
342.7
|
341.9
|
336.9
|
338.4
|
|
336.5
|
350.8
|
344.5
|
328.8
|
UK leverage ratio
|
5.2%
|
5.0%
|
5.1%
|
5.1%
|
|
5.3%
|
5.0%
|
5.1%
|
5.0%
|
UK leverage exposure
|
1,168.3
|
1,202.4
|
1,183.7
|
1,168.9
|
|
1,130.0
|
1,232.1
|
1,151.2
|
1,123.5
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
Group liquidity pool
(£bn)
|
298.1
|
335.0
|
330.7
|
333.0
|
|
318.0
|
325.8
|
342.5
|
319.8
|
Liquidity coverage
ratio2
|
161%
|
159%
|
157%
|
157%
|
|
156%
|
156%
|
157%
|
159%
|
Net stable funding
ratio3
|
138%
|
138%
|
139%
|
139%
|
|
137%
|
|
|
|
Loan: deposit ratio
|
74%
|
72%
|
72%
|
73%
|
|
73%
|
72%
|
70%
|
68%
|
1
|
Refer to pages 55 to 59 for further information on how capital, RWAs and
leverage are calculated.
|
2
|
The Liquidity Coverage Ratio is based on the average of the
last 12 spot month end ratios. Prior period LCR comparatives have
been updated for consistency.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,575
|
1,578
|
1,660
|
1,618
|
|
1,600
|
1,561
|
1,393
|
1,339
|
Net fee, commission and other
income
|
217
|
295
|
301
|
343
|
|
370
|
355
|
331
|
310
|
Total income
|
1,792
|
1,873
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
Operating costs
|
(1,153)
|
(1,058)
|
(1,090)
|
(1,092)
|
|
(1,108)
|
(1,069)
|
(1,085)
|
(998)
|
UK bank levy
|
(30)
|
-
|
-
|
-
|
|
(26)
|
-
|
-
|
-
|
Litigation and conduct
|
(4)
|
9
|
5
|
(2)
|
|
(13)
|
(3)
|
(16)
|
(9)
|
Total operating expenses
|
(1,187)
|
(1,049)
|
(1,085)
|
(1,094)
|
|
(1,147)
|
(1,072)
|
(1,101)
|
(1,007)
|
Other net
income/(expenses)
|
-
|
-
|
-
|
-
|
|
1
|
(1)
|
-
|
-
|
Profit before impairment
|
605
|
824
|
876
|
867
|
|
824
|
843
|
623
|
642
|
Credit impairment
charges
|
(37)
|
(59)
|
(95)
|
(113)
|
|
(157)
|
(81)
|
-
|
(48)
|
Profit before tax
|
568
|
765
|
781
|
754
|
|
667
|
762
|
623
|
594
|
Attributable profit
|
382
|
531
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at
amortised cost
|
202.8
|
204.9
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
Total assets
|
293.1
|
299.9
|
304.8
|
308.6
|
|
313.2
|
316.8
|
318.8
|
317.2
|
Customer deposits at amortised
cost
|
241.1
|
243.2
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
Loan: deposit ratio
|
92%
|
92%
|
90%
|
90%
|
|
87%
|
86%
|
85%
|
85%
|
Risk weighted assets
|
73.5
|
73.2
|
73.0
|
74.6
|
|
73.1
|
73.2
|
72.2
|
72.7
|
Period end allocated tangible
equity
|
10.2
|
10.1
|
10.1
|
10.3
|
|
10.1
|
10.1
|
9.9
|
10.1
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
14.9%
|
21.0%
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
Average allocated tangible equity
(£bn)
|
10.2
|
10.1
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
Cost: income ratio
|
66%
|
56%
|
55%
|
56%
|
|
58%
|
56%
|
64%
|
61%
|
Loan loss rate (bps)
|
7
|
10
|
17
|
20
|
|
27
|
14
|
-
|
9
|
Net interest margin
|
3.07%
|
3.04%
|
3.22%
|
3.18%
|
|
3.10%
|
3.01%
|
2.71%
|
2.62%
|
Analysis of Barclays UK
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal Banking
|
1,067
|
1,165
|
1,244
|
1,253
|
|
1,229
|
1,212
|
1,077
|
1,022
|
Barclaycard Consumer UK
|
242
|
238
|
237
|
247
|
|
269
|
283
|
265
|
276
|
Business Banking
|
483
|
470
|
480
|
461
|
|
472
|
421
|
382
|
351
|
Total income
|
1,792
|
1,873
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
35
|
(85)
|
(92)
|
(28)
|
|
(120)
|
(26)
|
(42)
|
21
|
Barclaycard Consumer UK
|
(73)
|
29
|
(35)
|
(83)
|
|
(12)
|
2
|
84
|
(44)
|
Business Banking
|
1
|
(3)
|
32
|
(2)
|
|
(25)
|
(57)
|
(42)
|
(25)
|
Total credit impairment charges
|
(37)
|
(59)
|
(95)
|
(113)
|
|
(157)
|
(81)
|
-
|
(48)
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
170.1
|
172.3
|
173.3
|
173.6
|
|
169.7
|
168.7
|
167.1
|
166.5
|
Barclaycard Consumer UK
|
9.7
|
9.6
|
9.3
|
9.0
|
|
9.2
|
9.0
|
8.8
|
8.4
|
Business Banking
|
23.0
|
23.0
|
24.2
|
25.6
|
|
26.2
|
27.4
|
30.0
|
32.4
|
Total loans and advances to customers at amortised
cost
|
202.8
|
204.9
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised
cost
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
185.4
|
186.1
|
191.1
|
194.3
|
|
195.6
|
197.3
|
197.0
|
196.6
|
Barclaycard Consumer UK
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
Business Banking
|
55.7
|
57.1
|
58.7
|
60.0
|
|
62.4
|
63.7
|
64.5
|
63.7
|
Total customer deposits at amortised cost
|
241.1
|
243.2
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,458
|
1,655
|
1,730
|
1,354
|
|
1,465
|
1,497
|
1,029
|
936
|
Net trading income
|
720
|
1,461
|
1,278
|
2,419
|
|
1,169
|
1,328
|
2,766
|
2,446
|
Net fee, commission and other
income
|
1,576
|
1,326
|
1,432
|
1,509
|
|
1,228
|
1,240
|
1,321
|
1,442
|
Total income
|
3,754
|
4,442
|
4,440
|
5,282
|
|
3,862
|
4,065
|
5,116
|
4,824
|
Operating costs
|
(3,059)
|
(2,816)
|
(2,747)
|
(2,956)
|
|
(2,543)
|
(2,776)
|
(2,537)
|
(2,505)
|
UK bank levy
|
(136)
|
-
|
-
|
-
|
|
(133)
|
-
|
-
|
-
|
Litigation and conduct
|
(7)
|
(10)
|
(33)
|
3
|
|
(67)
|
396
|
(1,319)
|
(513)
|
Total operating expenses
|
(3,202)
|
(2,826)
|
(2,780)
|
(2,953)
|
|
(2,743)
|
(2,380)
|
(3,856)
|
(3,018)
|
Other net
(expenses)/income
|
(14)
|
3
|
6
|
3
|
|
5
|
10
|
5
|
8
|
Profit before impairment
|
538
|
1,619
|
1,666
|
2,332
|
|
1,124
|
1,695
|
1,265
|
1,814
|
Credit impairment
charges
|
(511)
|
(358)
|
(275)
|
(404)
|
|
(328)
|
(295)
|
(209)
|
(101)
|
Profit before tax
|
27
|
1,261
|
1,391
|
1,928
|
|
796
|
1,400
|
1,056
|
1,713
|
Attributable
(loss)/profit
|
(124)
|
848
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at
amortised cost
|
126.8
|
130.8
|
126.6
|
131.0
|
|
133.7
|
137.0
|
126.7
|
113.9
|
Loans and advances to banks at
amortised cost
|
8.4
|
10.3
|
9.7
|
9.8
|
|
8.7
|
11.0
|
11.3
|
10.2
|
Debt securities at amortised
cost
|
39.0
|
36.4
|
35.2
|
30.8
|
|
27.2
|
36.2
|
29.3
|
20.7
|
Loans and advances at amortised cost
|
174.2
|
177.5
|
171.5
|
171.6
|
|
169.6
|
184.2
|
167.3
|
144.8
|
Trading portfolio
assets
|
174.6
|
155.4
|
165.1
|
137.7
|
|
133.8
|
126.3
|
126.9
|
134.1
|
Derivative financial instrument
assets
|
255.2
|
280.4
|
264.9
|
256.6
|
|
301.7
|
415.7
|
343.5
|
288.8
|
Financial assets at fair value
through the income statement
|
203.7
|
238.3
|
232.2
|
245.0
|
|
210.5
|
244.7
|
209.3
|
203.8
|
Cash collateral and settlement
balances
|
103.6
|
136.0
|
123.9
|
125.5
|
|
107.7
|
163.3
|
128.5
|
132.0
|
Other assets
|
254.8
|
285.5
|
268.8
|
275.0
|
|
258.0
|
257.2
|
275.1
|
255.5
|
Total assets
|
1,166.1
|
1,273.1
|
1,226.4
|
1,211.4
|
|
1,181.3
|
1,391.4
|
1,250.6
|
1,159.0
|
Deposits at amortised
cost
|
297.7
|
318.2
|
305.0
|
301.6
|
|
287.6
|
313.2
|
307.4
|
286.1
|
Derivative financial instrument
liabilities
|
249.8
|
268.3
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.2
|
Loan: deposit ratio
|
58%
|
56%
|
56%
|
57%
|
|
59%
|
59%
|
54%
|
51%
|
Risk weighted assets
|
259.1
|
259.2
|
254.6
|
255.1
|
|
254.8
|
269.3
|
263.8
|
245.1
|
Period end allocated tangible
equity
|
37.6
|
37.1
|
36.7
|
36.8
|
|
36.8
|
38.8
|
38.0
|
35.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
(1.3)%
|
9.2%
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
Average allocated tangible equity
(£bn)
|
37.1
|
36.8
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
Cost: income ratio
|
85%
|
64%
|
63%
|
56%
|
|
71%
|
59%
|
75%
|
63%
|
Loan loss rate (bps)
|
114
|
78
|
63
|
94
|
|
75
|
62
|
49
|
28
|
Net interest margin
|
5.43%
|
5.98%
|
5.85%
|
5.87%
|
|
5.71%
|
5.58%
|
4.41%
|
4.15%
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
530
|
700
|
856
|
465
|
|
548
|
606
|
410
|
385
|
Net trading income
|
763
|
1,503
|
1,353
|
2,437
|
|
1,201
|
1,344
|
2,738
|
2,450
|
Net fee, commission and other
income
|
1,097
|
879
|
953
|
1,074
|
|
827
|
871
|
885
|
1,103
|
Total income
|
2,390
|
3,082
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
Operating costs
|
(2,134)
|
(2,015)
|
(1,984)
|
(2,202)
|
|
(1,796)
|
(2,043)
|
(1,870)
|
(1,921)
|
UK bank levy
|
(129)
|
-
|
-
|
-
|
|
(126)
|
-
|
-
|
-
|
Litigation and conduct
|
(3)
|
7
|
(1)
|
3
|
|
(55)
|
498
|
(1,314)
|
(318)
|
Total operating expenses
|
(2,266)
|
(2,008)
|
(1,985)
|
(2,199)
|
|
(1,977)
|
(1,545)
|
(3,184)
|
(2,239)
|
Other net
(expenses)/income
|
(6)
|
2
|
1
|
-
|
|
2
|
-
|
-
|
-
|
Profit before impairment
|
118
|
1,076
|
1,178
|
1,777
|
|
601
|
1,276
|
849
|
1,699
|
Credit impairment
(charges)/releases
|
(23)
|
20
|
13
|
(33)
|
|
(41)
|
(46)
|
(65)
|
33
|
Profit before tax
|
95
|
1,096
|
1,191
|
1,744
|
|
560
|
1,230
|
784
|
1,732
|
Attributable
(loss)/profit
|
(61)
|
721
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at
amortised cost
|
87.8
|
87.9
|
84.8
|
89.2
|
|
90.5
|
93.6
|
86.5
|
79.5
|
Loans and advances to banks at
amortised cost
|
7.4
|
9.6
|
9.0
|
9.2
|
|
8.1
|
10.2
|
10.0
|
9.4
|
Debt securities at amortised
cost
|
38.9
|
36.3
|
35.1
|
30.7
|
|
27.2
|
36.2
|
29.3
|
20.7
|
Loans and advances at amortised cost
|
134.1
|
133.8
|
128.9
|
129.1
|
|
125.8
|
140.0
|
125.8
|
109.6
|
Trading portfolio
assets
|
174.5
|
155.3
|
165.0
|
137.6
|
|
133.7
|
126.1
|
126.7
|
134.0
|
Derivative financial instruments
assets
|
255.1
|
280.4
|
264.8
|
256.5
|
|
301.6
|
415.5
|
343.4
|
288.7
|
Financial assets at fair value
through the income statement
|
203.6
|
238.2
|
232.1
|
244.9
|
|
210.5
|
244.6
|
209.2
|
203.8
|
Cash collateral and settlement
balances
|
102.9
|
135.2
|
122.5
|
124.7
|
|
106.9
|
162.6
|
127.7
|
131.2
|
Other assets
|
205.4
|
237.2
|
224.6
|
230.3
|
|
222.6
|
220.6
|
237.2
|
222.5
|
Total assets
|
1,075.6
|
1,180.1
|
1,137.9
|
1,123.1
|
|
1,101.1
|
1,309.4
|
1,170.0
|
1,089.8
|
Deposits at amortised
cost
|
217.7
|
236.9
|
225.5
|
221.0
|
|
205.8
|
229.5
|
229.5
|
214.7
|
Derivative financial instrument
liabilities
|
249.7
|
268.3
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.1
|
Risk weighted assets
|
216.8
|
219.2
|
216.5
|
216.8
|
|
215.9
|
230.6
|
227.6
|
213.5
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
(0.8)%
|
9.2%
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
Average allocated tangible equity
(£bn)
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
Cost: income ratio
|
95%
|
65%
|
63%
|
55%
|
|
77%
|
55%
|
79%
|
57%
|
Loan loss rate (bps)
|
7
|
(6)
|
(4)
|
10
|
|
13
|
13
|
20
|
(12)
|
Net interest margin
|
3.00%
|
3.65%
|
3.98%
|
3.95%
|
|
3.73%
|
3.56%
|
2.88%
|
2.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
FICC
|
724
|
1,147
|
1,186
|
1,788
|
|
976
|
1,546
|
1,529
|
1,644
|
Equities
|
431
|
675
|
563
|
704
|
|
440
|
246
|
1,411
|
1,052
|
Global Markets
|
1,155
|
1,822
|
1,749
|
2,492
|
|
1,416
|
1,792
|
2,940
|
2,696
|
Advisory
|
171
|
80
|
130
|
212
|
|
197
|
150
|
236
|
185
|
Equity capital markets
|
38
|
62
|
69
|
50
|
|
40
|
42
|
37
|
47
|
Debt capital markets
|
301
|
233
|
273
|
341
|
|
243
|
341
|
281
|
416
|
Investment Banking fees
|
510
|
375
|
472
|
603
|
|
480
|
533
|
554
|
648
|
Corporate lending
|
40
|
172
|
168
|
95
|
|
(128)
|
(181)
|
(47)
|
125
|
Transaction banking
|
685
|
713
|
773
|
786
|
|
808
|
677
|
586
|
469
|
Corporate
|
725
|
885
|
941
|
881
|
|
680
|
496
|
539
|
594
|
Total income
|
2,390
|
3,082
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
928
|
955
|
874
|
889
|
|
918
|
891
|
619
|
551
|
Net fee, commission, trading and
other income
|
436
|
405
|
404
|
417
|
|
368
|
353
|
464
|
335
|
Total income
|
1,364
|
1,360
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
Operating costs
|
(925)
|
(801)
|
(763)
|
(754)
|
|
(747)
|
(733)
|
(667)
|
(584)
|
UK bank levy
|
(7)
|
-
|
-
|
-
|
|
(7)
|
-
|
-
|
-
|
Litigation and conduct
|
(4)
|
(17)
|
(32)
|
-
|
|
(12)
|
(102)
|
(5)
|
(195)
|
Total operating expenses
|
(936)
|
(818)
|
(795)
|
(754)
|
|
(766)
|
(835)
|
(672)
|
(779)
|
Other net
(expenses)/income
|
(8)
|
1
|
5
|
3
|
|
3
|
10
|
5
|
8
|
Profit before impairment
|
420
|
543
|
488
|
555
|
|
523
|
419
|
416
|
115
|
Credit impairment
charges
|
(488)
|
(378)
|
(288)
|
(371)
|
|
(287)
|
(249)
|
(144)
|
(134)
|
(Loss)/profit before tax
|
(68)
|
165
|
200
|
184
|
|
236
|
170
|
272
|
(19)
|
Attributable
(loss)/profit
|
(63)
|
127
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at
amortised cost
|
39.0
|
42.9
|
41.7
|
41.8
|
|
43.2
|
43.4
|
40.2
|
34.4
|
Total assets
|
90.5
|
93.0
|
88.5
|
88.3
|
|
80.2
|
82.0
|
80.6
|
69.2
|
Deposits at amortised
cost
|
80.0
|
81.3
|
79.5
|
80.6
|
|
81.8
|
83.7
|
77.9
|
71.4
|
Risk weighted assets
|
42.3
|
39.9
|
38.1
|
38.2
|
|
38.9
|
38.7
|
36.2
|
31.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated
tangible equity
|
(4.5)%
|
9.6%
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
Average allocated tangible equity
(£bn)
|
5.5
|
5.3
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
Cost: income ratio
|
69%
|
60%
|
62%
|
58%
|
|
60%
|
67%
|
62%
|
88%
|
Loan loss rate (bps)
|
449
|
321
|
255
|
332
|
|
245
|
211
|
132
|
145
|
Net interest margin
|
8.44%
|
8.88%
|
8.25%
|
8.42%
|
|
8.40%
|
8.41%
|
6.68%
|
6.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
International Cards and Consumer
Bank
|
944
|
890
|
835
|
900
|
|
860
|
824
|
691
|
538
|
Private Bank
|
306
|
331
|
295
|
258
|
|
285
|
270
|
245
|
214
|
Payments
|
114
|
139
|
148
|
148
|
|
141
|
150
|
147
|
134
|
Total income
|
1,364
|
1,360
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
|
|
|
|
|
|
|
|
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
106
|
14
|
(120)
|
81
|
|
(324)
|
10
|
-
|
66
|
Net fee, commission and other
income
|
(54)
|
(71)
|
4
|
(87)
|
|
293
|
(40)
|
(132)
|
(43)
|
Total income
|
52
|
(57)
|
(116)
|
(6)
|
|
(31)
|
(30)
|
(132)
|
23
|
Operating costs
|
(523)
|
(75)
|
(82)
|
(63)
|
|
(97)
|
(94)
|
(60)
|
(85)
|
UK bank levy
|
(14)
|
-
|
-
|
-
|
|
(17)
|
-
|
-
|
-
|
Litigation and conduct
|
6
|
1
|
(5)
|
-
|
|
1
|
(54)
|
1
|
(1)
|
Total operating expenses
|
(531)
|
(74)
|
(87)
|
(63)
|
|
(113)
|
(148)
|
(59)
|
(86)
|
Other net
(expenses)/income
|
(2)
|
6
|
(3)
|
(8)
|
|
4
|
(10)
|
2
|
(18)
|
Loss before impairment
|
(481)
|
(125)
|
(206)
|
(77)
|
|
(140)
|
(188)
|
(189)
|
(81)
|
Credit impairment
(charges)/releases
|
(4)
|
(16)
|
(2)
|
(7)
|
|
(13)
|
(5)
|
9
|
8
|
Loss before tax
|
(485)
|
(141)
|
(208)
|
(84)
|
|
(153)
|
(193)
|
(180)
|
(73)
|
Attributable loss
|
(369)
|
(105)
|
(159)
|
(80)
|
|
(63)
|
(173)
|
(170)
|
(292)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
18.3
|
18.7
|
18.5
|
19.1
|
|
19.2
|
18.7
|
19.8
|
19.9
|
Risk weighted assets
|
10.2
|
9.5
|
9.3
|
8.8
|
|
8.6
|
8.2
|
8.6
|
11.0
|
Period end allocated tangible
equity
|
2.3
|
1.0
|
(1.5)
|
0.2
|
|
(0.2)
|
(3.5)
|
1.1
|
3.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity
(£bn)
|
1.6
|
(0.4)
|
(0.6)
|
0.2
|
|
(2.4)
|
(0.4)
|
1.7
|
3.6
|
Performance Management
Margins and balances
|
|
Year ended
31.12.23
|
Year ended
31.12.22
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
6,431
|
205,667
|
3.13
|
5,893
|
205,972
|
2.86
|
Corporate and Investment
Bank
|
1,991
|
54,600
|
3.65
|
1,796
|
56,008
|
3.21
|
Consumer, Cards and
Payments
|
3,646
|
42,910
|
8.50
|
2,979
|
39,193
|
7.60
|
Barclays International
|
5,637
|
97,510
|
5.78
|
4,775
|
95,201
|
5.02
|
Barclays Group
|
12,068
|
303,177
|
3.98
|
10,668
|
301,173
|
3.54
|
Other1
|
641
|
|
|
(96)
|
|
|
Total Barclays Group net interest income
|
12,709
|
|
|
10,572
|
|
|
1
|
Other comprises net interest income from Global Markets within Barclays International and Head
Office including hedge accounting.
|
The Barclays Group NIM has
increased 44bps from 3.54% in 2022 to 3.98% in 2023, driven by the higher interest rate
environment and continued structural hedge
income momentum across the Group as well as higher balances in
CC&P including the Gap Inc. portfolio acquisition, partially
offset by product dynamics in deposits and mortgages.
The Group's combined product and
equity structural hedge notional amount at 31 December 2023 was £246bn (Dec
2022: £263bn), with an average duration of
close to 2.5 years. Gross structural hedge
contributions of £3,623m (Q422: £2,196m) and net
structural hedge contributions of £(8,209)m (Q422: £(1,544)m) are included in Group net interest income.
Gross structural hedge contributions represent the absolute level
of interest earned from the fixed receipts on swaps in the
structural hedge, while the net structural hedge contributions
represent the net interest earned on the difference between the
structural hedge rate and prevailing floating rates.
Quarterly analysis
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
Q422
|
Net interest income
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
1,575
|
1,578
|
1,660
|
1,618
|
1,600
|
Corporate and Investment
Bank
|
409
|
491
|
540
|
551
|
556
|
Consumer, Cards and
Payments
|
928
|
955
|
874
|
889
|
918
|
Barclays International
|
1,337
|
1,446
|
1,414
|
1,440
|
1,474
|
Barclays Group
|
2,912
|
3,024
|
3,074
|
3,058
|
3,074
|
|
|
|
|
|
|
Average customer assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
203,646
|
205,693
|
207,073
|
206,241
|
204,941
|
Corporate and Investment
Bank
|
54,089
|
53,290
|
54,417
|
56,612
|
59,146
|
Consumer, Cards and
Payments
|
43,623
|
42,678
|
42,503
|
42,840
|
43,319
|
Barclays International
|
97,712
|
95,968
|
96,920
|
99,452
|
102,465
|
Barclays Group
|
301,358
|
301,661
|
303,993
|
305,693
|
307,406
|
|
|
|
|
|
|
Net interest margin
|
%
|
%
|
%
|
%
|
%
|
Barclays UK
|
3.07
|
3.04
|
3.22
|
3.18
|
3.10
|
Corporate and Investment
Bank
|
3.00
|
3.65
|
3.98
|
3.95
|
3.73
|
Consumer, Cards and
Payments
|
8.44
|
8.88
|
8.25
|
8.42
|
8.40
|
Barclays International
|
5.43
|
5.98
|
5.85
|
5.87
|
5.71
|
Barclays Group
|
3.83
|
3.98
|
4.06
|
4.06
|
3.97
|
Remuneration
Deferred bonuses are payable only
once an employee meets certain conditions, including a specified
period of future service. This creates a timing difference between
the communication of the bonus pool and the charges that are
recognised in the income statement which are reconciled in the
table below to show the charge for performance costs. Refer to the
Remuneration Report on pages 191 to 229 of the Barclays PLC Annual
Report 2023 for further detail on remuneration. The table below
includes the other elements of compensation and staff
costs.
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
|
£m
|
£m
|
% Change
|
Incentive awards granted:
|
|
|
|
Current year bonus
|
1,202
|
1,241
|
3
|
Deferred bonus
|
543
|
549
|
1
|
Total incentive awards granted
|
1,745
|
1,790
|
3
|
|
|
|
|
Reconciliation of incentive awards granted to income
statement charge:
|
|
|
|
Less: deferred bonuses granted but
not charged in current year
|
(384)
|
(388)
|
1
|
Add: current year charges for
deferred bonuses from previous years
|
390
|
399
|
2
|
Other differences between
incentive awards granted and income statement charge
|
(1)
|
35
|
|
Income statement charge for performance
costs
|
1,750
|
1,836
|
5
|
|
|
|
|
Other income statement charges:
|
|
|
|
Salaries
|
5,120
|
4,732
|
(8)
|
Social security costs
|
755
|
714
|
(6)
|
Post-retirement
benefits1
|
539
|
563
|
4
|
Other compensation
costs
|
555
|
504
|
(10)
|
Total compensation costs2
|
8,719
|
8,349
|
(4)
|
|
|
|
|
Other resourcing costs
|
|
|
|
Outsourcing
|
601
|
607
|
1
|
Redundancy and
restructuring3
|
452
|
(7)
|
|
Temporary staff costs
|
91
|
113
|
19
|
Other
|
154
|
190
|
19
|
Total other resourcing costs
|
1,298
|
903
|
(44)
|
|
|
|
|
Total staff costs
|
10,017
|
9,252
|
(8)
|
|
|
|
|
Group compensation costs as a % of total
income
|
34.4
|
33.5
|
|
Group staff costs as a % of total income
|
39.5
|
37.1
|
|
One of the primary considerations
for performance costs are Group and business level returns,
alongside other financial and non-financial measures, including
strategic delivery, risk and conduct, aligning colleague,
shareholder and wider stakeholder interests.
1
|
Post-retirement benefits charge includes £371m (2022: £313m) in respect
of defined contribution schemes and £168m
(2022: £250m) in respect of defined
benefit schemes.
|
2
|
£860m (2022: £604m) of Group compensation cost was capitalised as
internally generated software and excluded from the Staff cost
disclosed above.
|
3
|
Redundancy and restructuring cost included £340m relating to
structural cost actions taken in Q4 2023.
|
Deferred bonuses have been awarded and are expected to be charged to
the income statement in the years outlined in the table that
follows:
Year in which income statement charge is expected to be taken
for deferred bonuses awarded to date1
|
Actual
|
|
Expected1, 2
|
|
Year ended
|
Year ended
|
|
Year ended
|
2025 and
|
|
31.12.22
|
31.12.23
|
|
31.12.24
|
beyond
|
|
£m
|
£m
|
|
£m
|
£m
|
Deferred bonuses from 2020 and earlier bonus
pools
|
185
|
53
|
|
-
|
-
|
Deferred bonuses from 2021 bonus
pool
|
214
|
150
|
|
77
|
14
|
Deferred bonuses from 2022 bonus
pool
|
161
|
187
|
|
132
|
82
|
Deferred bonuses from 2023 bonus
pool
|
-
|
159
|
|
152
|
174
|
Income statement charge for deferred
bonuses
|
560
|
549
|
|
361
|
270
|
1
|
The actual amount charged depends upon whether conditions
have been met and may vary compared with the above
expectation.
|
2
|
Does not include the impact of grants which will be made in
2024 and beyond.
|
Charging of deferred bonus
profile1
Grant date
|
Expected payment date(s)2 and percentage of the
deferred bonus paid
|
Year
|
Income statement charge % profile of 2023
onwards3,4
|
March 2024
|
|
2023
|
33%
|
|
|
2024
|
31%
|
|
March 2025 (33.3%)
|
2025
|
21%
|
|
March 2026 (33.3%)
|
2026
|
13%
|
|
March 2027 (33.3%)
|
2027
|
2%
|
1
|
Represents a typical vesting schedule for deferred awards.
Certain awards may be subject to a 3, 4, 5 or 7 year deferral in
line with regulatory requirements.
|
2
|
Share awards may be subject to an additional holding
period.
|
3
|
The income statement charge is based on the period over which
conditions are met.
|
4
|
Income statement charge profile % disclosed as a percentage
of the award excluding lapse.
|
Risk Management
Risk management and principal risks
The roles and responsibilities of
the business groups, Risk and Compliance in the management of risk
in the Group are defined in the Enterprise Risk Management
Framework. The purpose of the framework is to identify the
principal risks of the Group, the process by which the Group sets
its appetite for these risks in its business activities, and the
consequent limits which it places on related risk
taking.
The framework identifies nine
principal risks: credit risk, market risk, treasury and capital
risk, climate risk, operational risk, model risk, compliance risk,
reputation risk and legal risk. Further detail on the Group's
principal risks and material existing and emerging risks and how
such risks are managed is available in the Barclays PLC Annual
Report 2023, which can be accessed
at
home.barclays/annualreport.
The following section gives an
overview of credit risk, market risk, and treasury and capital risk
for the period.
Credit Risk
Loans and advances at amortised cost by
geography
Total loans and advances at
amortised cost in the credit risk performance section includes
loans and advances at amortised cost to banks and loans and
advances at amortised cost to customers.
The table below presents a product
and geographical breakdown by stages of loans and advances at
amortised cost. Also included are stage allocation of debt
securities and off-balance sheet loan commitments and financial
guarantee contracts by gross exposure, impairment allowance and
coverage ratio as at 31 December 2023.
Impairment allowance under IFRS 9
considers both the drawn and the undrawn counterparty exposure. For
retail portfolios, the total impairment allowance is allocated to
gross loans and advances to the extent allowance does not exceed
the drawn exposure and any excess is reported on the liabilities
side of the balance sheet as a provision. For corporate portfolios,
impairment allowance on undrawn exposure is reported on the
liability side of the balance sheet as a provision.
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
146,001
|
19,123
|
1,812
|
166,936
|
|
43
|
77
|
112
|
232
|
Retail credit cards
|
8,094
|
2,128
|
198
|
10,420
|
|
111
|
492
|
107
|
710
|
Retail other
|
6,832
|
1,252
|
264
|
8,348
|
|
56
|
117
|
144
|
317
|
Corporate
loans1
|
54,257
|
8,673
|
1,692
|
64,622
|
|
191
|
214
|
346
|
751
|
Total UK
|
215,184
|
31,176
|
3,966
|
250,326
|
|
401
|
900
|
709
|
2,010
|
Retail mortgages
|
4,201
|
346
|
612
|
5,159
|
|
7
|
28
|
316
|
351
|
Retail credit cards
|
22,315
|
3,450
|
1,522
|
27,287
|
|
412
|
1,138
|
1,226
|
2,776
|
Retail other
|
1,637
|
91
|
229
|
1,957
|
|
3
|
1
|
32
|
36
|
Corporate loans
|
58,248
|
4,629
|
862
|
63,739
|
|
96
|
200
|
252
|
548
|
Total Rest of the World
|
86,401
|
8,516
|
3,225
|
98,142
|
|
518
|
1,367
|
1,826
|
3,711
|
Total loans and advances at amortised cost
|
301,585
|
39,692
|
7,191
|
348,468
|
|
919
|
2,267
|
2,535
|
5,721
|
Debt securities at amortised
cost
|
52,869
|
3,907
|
-
|
56,776
|
|
11
|
16
|
-
|
27
|
Total loans and advances at amortised cost including debt
securities
|
354,454
|
43,599
|
7,191
|
405,244
|
|
930
|
2,283
|
2,535
|
5,748
|
Off-balance sheet loan commitments
and financial guarantee contracts2
|
374,063
|
24,208
|
1,037
|
399,308
|
|
173
|
287
|
44
|
504
|
Total3,4
|
728,517
|
67,807
|
8,228
|
804,552
|
|
1,103
|
2,570
|
2,579
|
6,252
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
|
%
|
%
|
%
|
%
|
Retail mortgages
|
145,958
|
19,046
|
1,700
|
166,704
|
|
-
|
0.4
|
6.2
|
0.1
|
Retail credit cards
|
7,983
|
1,636
|
91
|
9,710
|
|
1.4
|
23.1
|
54.0
|
6.8
|
Retail other
|
6,776
|
1,135
|
120
|
8,031
|
|
0.8
|
9.3
|
54.5
|
3.8
|
Corporate
loans1
|
54,066
|
8,459
|
1,346
|
63,871
|
|
0.4
|
2.5
|
20.4
|
1.2
|
Total UK
|
214,783
|
30,276
|
3,257
|
248,316
|
|
0.2
|
2.9
|
17.9
|
0.8
|
Retail mortgages
|
4,194
|
318
|
296
|
4,808
|
|
0.2
|
8.1
|
51.6
|
6.8
|
Retail credit cards
|
21,903
|
2,312
|
296
|
24,511
|
|
1.8
|
33.0
|
80.6
|
10.2
|
Retail other
|
1,634
|
90
|
197
|
1,921
|
|
0.2
|
1.1
|
14.0
|
1.8
|
Corporate loans
|
58,152
|
4,429
|
610
|
63,191
|
|
0.2
|
4.3
|
29.2
|
0.9
|
Total Rest of the World
|
85,883
|
7,149
|
1,399
|
94,431
|
|
0.6
|
16.1
|
56.6
|
3.8
|
Total loans and advances at amortised cost
|
300,666
|
37,425
|
4,656
|
342,747
|
|
0.3
|
5.7
|
35.3
|
1.6
|
Debt securities at amortised
cost
|
52,858
|
3,891
|
-
|
56,749
|
|
-
|
0.4
|
-
|
-
|
Total loans and advances at amortised cost including debt
securities
|
353,524
|
41,316
|
4,656
|
399,496
|
|
0.3
|
5.2
|
35.3
|
1.4
|
Off-balance sheet loan commitments
and financial guarantee contracts2
|
373,890
|
23,921
|
993
|
398,804
|
|
-
|
1.2
|
4.2
|
0.1
|
Total3,4
|
727,414
|
65,237
|
5,649
|
798,300
|
|
0.2
|
3.8
|
31.3
|
0.8
|
1
|
Includes Business Banking, which has a gross exposure of
£15.2bn and an impairment allowance of £431m. This comprises £99m
impairment allowance on £9.8bn Stage 1 exposure, £81m on £4.1bn
Stage 2 exposure and £251m on £1.3bn Stage 3 exposure. Excluding
this, total coverage for corporate loans in UK is
0.6%.
|
2
|
Excludes loan commitments and financial guarantees of £16.5bn
carried at fair value and includes exposures relating to financial
assets classified as assets held for sale.
|
3
|
Other financial assets subject to impairment not included in
the table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of £183.6bn and
impairment allowance of £151m. This comprises £16m impairment
allowance on £182.8bn Stage 1 exposure, £2m on £0.6bn Stage 2
exposure and £133m on £140m Stage 3 exposure.
|
4
|
The annualised loan loss rate is 46bps after applying the
total impairment charge of £1,881m.
|
Assets held for sale
During 2023, gross loans and
advances and related impairment allowances for the German consumer
finance business portfolio were reclassified from loans and
advances to customers to assets held for sale in the balance sheet.
Disclosures relating to assets held for sale are provided in the
credit risk tables, primarily where the disclosure is relevant to
the measurement of these financial assets.
For further details on assets held
for sale, see Note 40 to the financial statements in Barclays PLC
Annual Report 2023.
Loans and advances to customers classified as assets held for
sale
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
As at 31.12.231
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
Retail credit cards
|
1,621
|
15
|
0.9
|
|
445
|
41
|
9.2
|
|
92
|
68
|
73.9
|
|
2,158
|
124
|
5.7
|
Retail other
|
1,561
|
20
|
1.3
|
|
288
|
32
|
11.1
|
|
84
|
60
|
71.4
|
|
1,933
|
112
|
5.8
|
Total Rest of the World
|
3,182
|
35
|
1.1
|
|
733
|
73
|
10.0
|
|
176
|
128
|
72.7
|
|
4,091
|
236
|
5.8
|
1
|
In 2022, total gross exposure of £4.3bn and impairment
allowance of £296m was included in loans and advances at amortised
cost which has now been classified as assets held for sale. This
comprises £37m ECL on £3.1bn Stage 1 exposure, £141m on £1.0bn
Stage 2 exposure and £118m on £153m Stage 3
exposure
|
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
145,821
|
17,735
|
1,481
|
165,037
|
|
21
|
49
|
58
|
128
|
Retail credit cards
|
7,119
|
2,569
|
251
|
9,939
|
|
127
|
493
|
137
|
757
|
Retail other
|
8,202
|
1,197
|
293
|
9,692
|
|
72
|
138
|
145
|
355
|
Corporate
loans1
|
55,187
|
12,528
|
2,008
|
69,723
|
|
317
|
264
|
360
|
941
|
Total UK
|
216,329
|
34,029
|
4,033
|
254,391
|
|
537
|
944
|
700
|
2,181
|
Retail mortgages
|
7,851
|
465
|
933
|
9,249
|
|
8
|
24
|
356
|
388
|
Retail credit cards
|
22,669
|
3,880
|
1,129
|
27,678
|
|
331
|
1,127
|
818
|
2,276
|
Retail other
|
5,268
|
271
|
427
|
5,966
|
|
28
|
28
|
163
|
219
|
Corporate loans
|
56,704
|
4,290
|
564
|
61,558
|
|
144
|
160
|
182
|
486
|
Total Rest of the World
|
92,492
|
8,906
|
3,053
|
104,451
|
|
511
|
1,339
|
1,519
|
3,369
|
Total loans and advances at amortised cost
|
308,821
|
42,935
|
7,086
|
358,842
|
|
1,048
|
2,283
|
2,219
|
5,550
|
Debt securities
|
41,724
|
3,805
|
-
|
45,529
|
|
9
|
33
|
-
|
42
|
Total loans and advances at amortised cost including debt
securities
|
350,545
|
46,740
|
7,086
|
404,371
|
|
1,057
|
2,316
|
2,219
|
5,592
|
Off-balance sheet loan commitments
and financial guarantee contracts2
|
372,945
|
30,694
|
1,180
|
404,819
|
|
245
|
315
|
23
|
583
|
Total3,4
|
723,490
|
77,434
|
8,266
|
809,190
|
|
1,302
|
2,631
|
2,242
|
6,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
%
|
%
|
%
|
%
|
Retail mortgages
|
145,800
|
17,686
|
1,423
|
164,909
|
|
-
|
0.3
|
3.9
|
0.1
|
Retail credit cards
|
6,992
|
2,076
|
114
|
9,182
|
|
1.8
|
19.2
|
54.6
|
7.6
|
Retail other
|
8,130
|
1,059
|
148
|
9,337
|
|
0.9
|
11.5
|
49.5
|
3.7
|
Corporate
loans1
|
54,870
|
12,264
|
1,648
|
68,782
|
|
0.6
|
2.1
|
17.9
|
1.3
|
Total UK
|
215,792
|
33,085
|
3,333
|
252,210
|
|
0.2
|
2.8
|
17.4
|
0.9
|
Retail mortgages
|
7,843
|
441
|
577
|
8,861
|
|
0.1
|
5.2
|
38.2
|
4.2
|
Retail credit cards
|
22,338
|
2,753
|
311
|
25,402
|
|
1.5
|
29.0
|
72.5
|
8.2
|
Retail other
|
5,240
|
243
|
264
|
5,747
|
|
0.5
|
10.3
|
38.2
|
3.7
|
Corporate loans
|
56,560
|
4,130
|
382
|
61,072
|
|
0.3
|
3.7
|
32.3
|
0.8
|
Total Rest of the World
|
91,981
|
7,567
|
1,534
|
101,082
|
|
0.6
|
15.0
|
49.8
|
3.2
|
Total loans and advances at amortised cost
|
307,773
|
40,652
|
4,867
|
353,292
|
|
0.3
|
5.3
|
31.3
|
1.5
|
Debt securities
|
41,715
|
3,772
|
-
|
45,487
|
|
-
|
0.9
|
-
|
0.1
|
Total loans and advances at amortised cost including debt
securities
|
349,488
|
44,424
|
4,867
|
398,779
|
|
0.3
|
5.0
|
31.3
|
1.4
|
Off-balance sheet loan commitments
and financial guarantee contracts2
|
372,700
|
30,379
|
1,157
|
404,236
|
|
0.1
|
1.0
|
1.9
|
0.1
|
Total3,4
|
722,188
|
74,803
|
6,024
|
803,015
|
|
0.2
|
3.4
|
27.1
|
0.8
|
1
|
Includes Business Banking, which has a gross exposure of
£18.1bn and an impairment allowance of £519m. This comprises £149m
impairment allowance on £10.5bn Stage 1 exposure, £121m on £6.0bn
Stage 2 exposure and £249m on £1.6bn Stage 3 exposure. Excluding
this, total coverage for corporate loans in UK is
0.8%.
|
2
|
Excludes loan commitments and financial guarantees of £14.9bn
carried at fair value.
|
3
|
Other financial assets subject to impairment not included in
the table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of £180.1bn and
impairment allowance of £163m. This comprises £10m impairment
allowance on £178.4bn Stage 1 exposure, £9m on £1.5bn Stage 2
exposure and £144m on £149m Stage 3 exposure.
|
4
|
The annualised loan loss rate is 30bps after applying the
total impairment charge of £1,220m.
|
Loans and advances at amortised cost by
product
The table below presents a product
breakdown by stages of loans and advances at amortised cost. Also
included is a breakdown of Stage 2 past due balances.
|
|
Stage 2
|
|
|
As at 31.12.23
|
Stage 1
|
Not past due
|
<=30 days past due
|
>30 days past due
|
Total
|
Stage 3
|
Total
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
150,202
|
16,834
|
1,971
|
664
|
19,469
|
2,424
|
172,095
|
Retail credit cards
|
30,409
|
4,858
|
392
|
328
|
5,578
|
1,720
|
37,707
|
Retail other
|
8,469
|
1,094
|
126
|
123
|
1,343
|
493
|
10,305
|
Corporate loans
|
112,505
|
12,960
|
179
|
163
|
13,302
|
2,554
|
128,361
|
Total
|
301,585
|
35,746
|
2,668
|
1,278
|
39,692
|
7,191
|
348,468
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
50
|
73
|
20
|
12
|
105
|
428
|
583
|
Retail credit cards
|
523
|
1,257
|
166
|
207
|
1,630
|
1,333
|
3,486
|
Retail other
|
59
|
82
|
18
|
18
|
118
|
176
|
353
|
Corporate loans
|
287
|
399
|
8
|
7
|
414
|
598
|
1,299
|
Total
|
919
|
1,811
|
212
|
244
|
2,267
|
2,535
|
5,721
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
150,152
|
16,761
|
1,951
|
652
|
19,364
|
1,996
|
171,512
|
Retail credit cards
|
29,886
|
3,601
|
226
|
121
|
3,948
|
387
|
34,221
|
Retail other
|
8,410
|
1,012
|
108
|
105
|
1,225
|
317
|
9,952
|
Corporate loans
|
112,218
|
12,561
|
171
|
156
|
12,888
|
1,956
|
127,062
|
Total
|
300,666
|
33,935
|
2,456
|
1,034
|
37,425
|
4,656
|
342,747
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
-
|
0.4
|
1.0
|
1.8
|
0.5
|
17.7
|
0.3
|
Retail credit cards
|
1.7
|
25.9
|
42.3
|
63.1
|
29.2
|
77.5
|
9.2
|
Retail other
|
0.7
|
7.5
|
14.3
|
14.6
|
8.8
|
35.7
|
3.4
|
Corporate loans
|
0.3
|
3.1
|
4.5
|
4.3
|
3.1
|
23.4
|
1.0
|
Total
|
0.3
|
5.1
|
7.9
|
19.1
|
5.7
|
35.3
|
1.6
|
As at 31.12.22
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
153,672
|
15,990
|
1,684
|
526
|
18,200
|
2,414
|
174,286
|
Retail credit cards
|
29,788
|
5,731
|
284
|
434
|
6,449
|
1,380
|
37,617
|
Retail other
|
13,470
|
1,232
|
104
|
132
|
1,468
|
720
|
15,658
|
Corporate loans
|
111,891
|
16,552
|
159
|
107
|
16,818
|
2,572
|
131,281
|
Total
|
308,821
|
39,505
|
2,231
|
1,199
|
42,935
|
7,086
|
358,842
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
29
|
53
|
11
|
9
|
73
|
414
|
516
|
Retail credit cards
|
458
|
1,334
|
100
|
186
|
1,620
|
955
|
3,033
|
Retail other
|
100
|
118
|
22
|
26
|
166
|
308
|
574
|
Corporate loans
|
461
|
401
|
13
|
10
|
424
|
542
|
1,427
|
Total
|
1,048
|
1,906
|
146
|
231
|
2,283
|
2,219
|
5,550
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
153,643
|
15,937
|
1,673
|
517
|
18,127
|
2,000
|
173,770
|
Retail credit cards
|
29,330
|
4,397
|
184
|
248
|
4,829
|
425
|
34,584
|
Retail other
|
13,370
|
1,114
|
82
|
106
|
1,302
|
412
|
15,084
|
Corporate loans
|
111,430
|
16,151
|
146
|
97
|
16,394
|
2,030
|
129,854
|
Total
|
307,773
|
37,599
|
2,085
|
968
|
40,652
|
4,867
|
353,292
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
-
|
0.3
|
0.7
|
1.7
|
0.4
|
17.1
|
0.3
|
Retail credit cards
|
1.5
|
23.3
|
35.2
|
42.9
|
25.1
|
69.2
|
8.1
|
Retail other
|
0.7
|
9.6
|
21.2
|
19.7
|
11.3
|
42.8
|
3.7
|
Corporate loans
|
0.4
|
2.4
|
8.2
|
9.3
|
2.5
|
21.1
|
1.1
|
Total
|
0.3
|
4.8
|
6.5
|
19.3
|
5.3
|
31.3
|
1.5
|
Movement in gross exposures and impairment allowance
including provisions for loan commitments and financial
guarantees
The following tables present a
reconciliation of the opening to the closing balance of the
exposure and impairment allowance.
Transfers between stages in the
tables have been reflected as if they had taken place at the
beginning of the year. 'Net drawdowns, repayments, net
re-measurement and movements due to exposure and risk parameter
changes' includes additional drawdowns and partial repayments from
existing facilities. Additionally, the below tables do not include
other financial assets subject to impairment such as debt
securities at amortised cost, cash collateral and settlement
balances, financial assets at fair value through other
comprehensive income and other assets.
The movements are measured over a
12-month period.
Loans and advances at amortised cost
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
153,672
|
29
|
18,200
|
73
|
2,414
|
414
|
174,286
|
516
|
Transfers from Stage 1 to Stage
2
|
(9,557)
|
(2)
|
9,557
|
2
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage
1
|
6,052
|
22
|
(6,052)
|
(22)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(453)
|
-
|
(530)
|
(13)
|
983
|
13
|
-
|
-
|
Transfers from Stage 3
|
26
|
1
|
122
|
2
|
(148)
|
(3)
|
-
|
-
|
Business activity in the
period1
|
23,329
|
13
|
978
|
7
|
26
|
11
|
24,333
|
31
|
Refinements to models used for
calculation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(11,505)
|
(8)
|
(1,136)
|
65
|
(502)
|
27
|
(13,143)
|
84
|
Final repayments
|
(10,837)
|
(3)
|
(1,666)
|
(9)
|
(328)
|
(15)
|
(12,831)
|
(27)
|
Disposals2
|
(525)
|
(2)
|
(4)
|
-
|
(2)
|
-
|
(531)
|
(2)
|
Write-offs
|
-
|
-
|
-
|
-
|
(19)
|
(19)
|
(19)
|
(19)
|
As at 31 December 2023
|
150,202
|
50
|
19,469
|
105
|
2,424
|
428
|
172,095
|
583
|
|
|
|
|
|
|
|
|
|
Retail credit cards
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
29,788
|
458
|
6,449
|
1,620
|
1,380
|
955
|
37,617
|
3,033
|
Transfers from Stage 1 to Stage
2
|
(2,406)
|
(68)
|
2,406
|
68
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage
1
|
2,900
|
590
|
(2,900)
|
(590)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(678)
|
(27)
|
(874)
|
(374)
|
1,552
|
401
|
-
|
-
|
Transfers from Stage 3
|
54
|
32
|
31
|
18
|
(85)
|
(50)
|
-
|
-
|
Business activity in the
period
|
2,775
|
60
|
332
|
116
|
29
|
25
|
3,136
|
201
|
Refinements to models used for
calculation3
|
-
|
(28)
|
-
|
37
|
-
|
11
|
-
|
20
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(162)
|
(465)
|
649
|
797
|
(47)
|
998
|
440
|
1,330
|
Final repayments
|
(241)
|
(14)
|
(70)
|
(21)
|
(26)
|
(19)
|
(337)
|
(54)
|
Transfers to assets held for
sale4
|
(1,621)
|
(15)
|
(445)
|
(41)
|
(92)
|
(68)
|
(2,158)
|
(124)
|
Disposals2
|
-
|
-
|
-
|
-
|
(186)
|
(115)
|
(186)
|
(115)
|
Write-offs
|
-
|
-
|
-
|
-
|
(805)
|
(805)
|
(805)
|
(805)
|
As at 31 December 2023
|
30,409
|
523
|
5,578
|
1,630
|
1,720
|
1,333
|
37,707
|
3,486
|
1
|
Business activity in the year reported within Retail
mortgages includes an acquisition of Kensington Mortgage Company in
UK Mortgages of £2.4bn.
|
2
|
The £531m of disposals reported within Retail mortgages
relate to transfer of facilities to a non-consolidated special
purpose vehicle for the purpose of securitisation. The £186m of
disposals reported within Retail credit cards include debt sales
undertaken during the year.
|
3
|
Refinements to models used for calculation reported within
Retail credit cards include a £88m movement in UK Cards, £43m
movement in US Cards and £(111)m movement in German consumer
finance business. These reflect model enhancements made during the
year. Barclays continually reviews the output of models to
determine accuracy of the ECL calculation including review of model
monitoring, external benchmarking and experience of model operation
over an extended period of time. This helps to ensure that the
models used continue to reflect the risks inherent across the
businesses.
|
4
|
Transfers to assets held for sale reported within Retail
credit cards relate to the German consumer finance business
portfolio.
|
Loans and advances at amortised cost
|
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Retail other
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
13,470
|
100
|
1,468
|
166
|
720
|
308
|
15,658
|
574
|
Transfers from Stage 1 to Stage
2
|
(1,179)
|
(13)
|
1,179
|
13
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage
1
|
463
|
36
|
(463)
|
(36)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(549)
|
(4)
|
(154)
|
(44)
|
703
|
48
|
-
|
-
|
Transfers from Stage 3
|
33
|
3
|
9
|
4
|
(42)
|
(7)
|
-
|
-
|
Business activity in the
period
|
7,302
|
27
|
197
|
23
|
28
|
21
|
7,527
|
71
|
Refinements to models used for
calculation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(4,163)
|
(57)
|
(247)
|
31
|
(146)
|
115
|
(4,556)
|
89
|
Final repayments
|
(5,347)
|
(13)
|
(358)
|
(7)
|
(421)
|
(44)
|
(6,126)
|
(64)
|
Transfers to assets held for
sale1
|
(1,561)
|
(20)
|
(288)
|
(32)
|
(84)
|
(60)
|
(1,933)
|
(112)
|
Disposals2
|
-
|
-
|
-
|
-
|
(134)
|
(74)
|
(134)
|
(74)
|
Write-offs
|
-
|
-
|
-
|
-
|
(131)
|
(131)
|
(131)
|
(131)
|
As at 31 December 2023
|
8,469
|
59
|
1,343
|
118
|
493
|
176
|
10,305
|
353
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
111,891
|
461
|
16,818
|
424
|
2,572
|
542
|
131,281
|
1,427
|
Transfers from Stage 1 to Stage
2
|
(6,172)
|
(45)
|
6,172
|
45
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage
1
|
5,592
|
108
|
(5,592)
|
(108)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(758)
|
(10)
|
(1,011)
|
(27)
|
1,769
|
37
|
-
|
-
|
Transfers from Stage 3
|
195
|
16
|
403
|
22
|
(598)
|
(38)
|
-
|
-
|
Business activity in the
period
|
23,213
|
43
|
933
|
29
|
205
|
29
|
24,351
|
101
|
Refinements to models used for
calculation3
|
-
|
(61)
|
-
|
174
|
-
|
-
|
-
|
113
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes4
|
2,079
|
(179)
|
(1,618)
|
(73)
|
(667)
|
405
|
(206)
|
153
|
Final repayments
|
(23,149)
|
(43)
|
(2,689)
|
(46)
|
(406)
|
(65)
|
(26,244)
|
(154)
|
Disposals2
|
(386)
|
(3)
|
(114)
|
(26)
|
(108)
|
(99)
|
(608)
|
(128)
|
Write-offs
|
-
|
-
|
-
|
-
|
(213)
|
(213)
|
(213)
|
(213)
|
As at 31 December 2023
|
112,505
|
287
|
13,302
|
414
|
2,554
|
598
|
128,361
|
1,299
|
1
|
Transfers to assets held for sale reported within Retail
other relate to the German consumer finance business
portfolio.
|
2
|
The £134m of disposals reported within Retail other include
£64m part sale of Wealth portfolio in Italy and £70m of debt sales
undertaken during the year. The £608m of disposals reported within
Corporate loans relate to debt sales undertaken during the
year.
|
3
|
Refinements to models used for calculation reported within
Corporate loans include a £93m movement in Corporate and Investment
Bank and £20m movement in Barclaycard Payments. These reflect model
enhancements made during the year. Barclays continually reviews the
output of models to determine accuracy of the ECL calculation
including review of model monitoring, external benchmarking and
experience of model operation over an extended period of time. This
helps to ensure that the models used continue to reflect the risks
inherent across the businesses.
|
4
|
'Net drawdowns, repayments, net re-measurement and movements
due to exposure and risk parameter changes' reported within
Corporate loans also include assets of £0.8bn derecognised due to
payment received on defaulted loans from government guarantees
issued under government's Bounce Back Loans
Scheme.
|
Reconciliation of ECL movement to impairment charge/(release)
for the period
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
23
|
32
|
33
|
88
|
Retail credit cards
|
80
|
51
|
1,366
|
1,497
|
Retail other
|
(21)
|
(16)
|
133
|
96
|
Corporate loans
|
(171)
|
16
|
368
|
213
|
ECL movements excluding assets held for sale, disposals and
write-offs1
|
(89)
|
83
|
1,900
|
1,894
|
ECL movement on loan commitments
and other financial guarantees
|
(72)
|
(28)
|
21
|
(79)
|
ECL movement on other financial
assets
|
6
|
(7)
|
(11)
|
(12)
|
ECL movement on debt
securities
|
2
|
(17)
|
-
|
(15)
|
Recoveries and
reimbursements2
|
4
|
(4)
|
(73)
|
(73)
|
Total exchange and other
adjustments
|
|
|
|
166
|
Total income statement charge for the
period
|
|
|
|
1,881
|
1
|
In 2023, gross write-offs amounted to £1,168m (2022: £1,620m) and
post write-off recoveries amounted to £44m
(2022: £64m). Net write-offs represent
gross write-offs less post write-off recoveries and amounted to
£1,124m (2022: £1,556m).
|
2
|
Recoveries and reimbursements include £29m for reimbursements expected to be received under
the arrangement where Group has entered into financial guarantee
contracts which provide credit protection over certain assets with
third parties and cash recoveries of previously written off amounts
of £44m.
|
Loan commitments and financial guarantees
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
11,714
|
-
|
450
|
-
|
6
|
-
|
12,170
|
-
|
Net transfers between
stages
|
(62)
|
-
|
53
|
-
|
9
|
-
|
-
|
-
|
Business activity in the
period
|
4,184
|
-
|
-
|
-
|
-
|
-
|
4,184
|
-
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(7,669)
|
-
|
(11)
|
-
|
(11)
|
-
|
(7,691)
|
-
|
Limit management and final
repayments
|
(391)
|
-
|
(44)
|
-
|
-
|
-
|
(435)
|
-
|
As at 31 December 2023
|
7,776
|
-
|
448
|
-
|
4
|
-
|
8,228
|
-
|
|
|
|
|
|
|
|
|
|
Retail credit cards1
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
144,957
|
50
|
5,435
|
83
|
228
|
-
|
150,620
|
133
|
Net transfers between
stages
|
448
|
61
|
(538)
|
(61)
|
90
|
-
|
-
|
-
|
Business activity in the
period
|
19,098
|
16
|
224
|
13
|
1
|
-
|
19,323
|
29
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(5,863)
|
(59)
|
(1,769)
|
53
|
(101)
|
-
|
(7,733)
|
(6)
|
Limit management and final
repayments
|
(13,849)
|
(9)
|
(545)
|
(34)
|
(76)
|
-
|
(14,470)
|
(43)
|
As at 31 December 2023
|
144,791
|
59
|
2,807
|
54
|
142
|
-
|
147,740
|
113
|
|
|
|
|
|
|
|
|
|
Retail other1
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
10,427
|
5
|
520
|
-
|
80
|
-
|
11027
|
5
|
Net transfers between
stages
|
(171)
|
-
|
140
|
-
|
31
|
-
|
-
|
-
|
Business activity in the
period
|
1,639
|
-
|
1
|
-
|
4
|
-
|
1,644
|
-
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
(1,690)
|
1
|
(93)
|
2
|
(59)
|
-
|
(1,842)
|
3
|
Limit management and final
repayments
|
(1,598)
|
-
|
(33)
|
-
|
(12)
|
-
|
(1,643)
|
-
|
As at 31 December 2023
|
8,607
|
6
|
535
|
2
|
44
|
-
|
9,186
|
8
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
205,847
|
190
|
24,289
|
232
|
866
|
23
|
231,002
|
445
|
Net transfers between
stages
|
2,416
|
23
|
(2,423)
|
(23)
|
7
|
-
|
-
|
-
|
Business activity in the
period
|
54,807
|
27
|
2,271
|
43
|
39
|
2
|
57,117
|
72
|
Net drawdowns, repayments, net
re-measurement and movement due to exposure and risk parameter
changes
|
3,556
|
(106)
|
97
|
25
|
206
|
24
|
3,859
|
(57)
|
Limit management and final
repayments
|
(53,737)
|
(26)
|
(3,816)
|
(46)
|
(271)
|
(5)
|
(57,824)
|
(77)
|
As at 31 December 2023
|
212,889
|
108
|
20,418
|
231
|
847
|
44
|
234,154
|
383
|
1.
|
Loan commitments reported within Retail credit cards and
Retail other also include financial assets classified as held for
sale
|
Management adjustments to models for
impairment
Management adjustments to
impairment models are applied in order to factor in certain
conditions or changes in policy that are not fully incorporated
into the impairment models, or to reflect additional facts and
circumstances at the period end. Management adjustments are
reviewed and incorporated into future model development where
applicable.
Management adjustments are
captured through "Economic uncertainty" and "Other" adjustments,
and are presented by product and geography below:
Management adjustments to models for impairment
allowance presented by product and
geography1
|
Impairment allowance pre management
adjustments2
|
Economic uncertainty adjustments
|
Other adjustments
|
Management adjustments
|
Total impairment allowance3
|
Proportion of Management adjustments to total impairment
allowance
|
|
|
(a)
|
(b)
|
(a+b)
|
|
|
As at 31 December 2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
54
|
57
|
121
|
178
|
232
|
76.7
|
Retail credit cards
|
700
|
45
|
(9)
|
36
|
736
|
4.9
|
Retail other
|
251
|
9
|
62
|
71
|
322
|
22.0
|
Corporate loans
|
761
|
71
|
10
|
81
|
842
|
9.6
|
Total UK
|
1,766
|
182
|
184
|
366
|
2,132
|
17.2
|
Retail mortgages
|
354
|
-
|
(3)
|
(3)
|
351
|
(0.9)
|
Retail credit cards
|
2,855
|
-
|
8
|
8
|
2,863
|
0.3
|
Retail other
|
45
|
-
|
(6)
|
(6)
|
39
|
(15.4)
|
Corporate loans
|
828
|
16
|
(4)
|
12
|
840
|
1.4
|
Total Rest of the World
|
4,082
|
16
|
(5)
|
11
|
4,093
|
0.3
|
Total
|
5,848
|
198
|
179
|
377
|
6,225
|
6.1
|
Debt securities at amortised
cost
|
27
|
-
|
-
|
-
|
27
|
-
|
Total including debt securities at amortised
cost
|
5,875
|
198
|
179
|
377
|
6,252
|
6.0
|
|
|
|
|
|
|
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
39
|
4
|
85
|
89
|
128
|
69.5
|
Retail credit cards
|
679
|
93
|
32
|
125
|
804
|
15.5
|
Retail other
|
257
|
23
|
80
|
103
|
360
|
28.6
|
Corporate loans
|
682
|
249
|
166
|
415
|
1,097
|
37.8
|
Total UK
|
1,657
|
369
|
363
|
732
|
2,389
|
30.6
|
Retail mortgages
|
388
|
-
|
-
|
-
|
388
|
-
|
Retail credit cards
|
2,307
|
-
|
55
|
55
|
2,362
|
2.3
|
Retail other
|
198
|
2
|
19
|
21
|
219
|
9.6
|
Corporate loans
|
1,058
|
(54)
|
(229)
|
(283)
|
775
|
(36.5)
|
Total Rest of the World
|
3,951
|
(52)
|
(155)
|
(207)
|
3,744
|
(5.5)
|
Total
|
5,608
|
317
|
208
|
525
|
6,133
|
8.6
|
Debt securities at amortised
cost
|
42
|
-
|
-
|
-
|
42
|
-
|
Total including debt securities at amortised
cost
|
5,650
|
317
|
208
|
525
|
6,175
|
8.5
|
1
|
Positive values reflect an increase in impairment allowance
and negative values reflect a reduction in the impairment
allowance.
|
2
|
Includes £5.2bn (2022: £4.8bn) of modelled ECL, £0.4bn (2022:
£0.4bn) of individually assessed impairments and £0.3bn (2022:
£0.5bn) ECL from non-modelled exposures and debt
securities.
|
3
|
Total impairment allowance consists of ECL stock on drawn and
undrawn exposure.
|
Economic uncertainty adjustments presented by
stage
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31 December 2023
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
12
|
32
|
13
|
57
|
Retail credit cards
|
8
|
37
|
-
|
45
|
Retail other
|
3
|
6
|
-
|
9
|
Corporate loans
|
48
|
12
|
11
|
71
|
Total UK
|
71
|
87
|
24
|
182
|
Retail mortgages
|
-
|
-
|
-
|
-
|
Retail credit cards
|
-
|
-
|
-
|
-
|
Retail other
|
-
|
-
|
-
|
-
|
Corporate loans
|
4
|
12
|
-
|
16
|
Total Rest of the World
|
4
|
12
|
-
|
16
|
Total
|
75
|
99
|
24
|
198
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
1
|
3
|
-
|
4
|
Retail credit cards
|
17
|
76
|
-
|
93
|
Retail other
|
7
|
15
|
1
|
23
|
Corporate loans
|
189
|
60
|
-
|
249
|
Total UK
|
214
|
154
|
1
|
369
|
Retail mortgages
|
-
|
-
|
-
|
-
|
Retail credit cards
|
-
|
-
|
-
|
-
|
Retail other
|
-
|
2
|
-
|
2
|
Corporate loans
|
(8)
|
(46)
|
-
|
(54)
|
Total Rest of the World
|
(8)
|
(44)
|
-
|
(52)
|
Total
|
206
|
110
|
1
|
317
|
Economic uncertainty adjustments
Models have been developed with
data from non-inflationary periods establishing a relationship
between input variables and customer delinquency based on past
behaviour. As such there is a risk that the modelled output fails
to capture the appropriate response to changes in macroeconomic
variables including higher interest rates and continuing
inflationary stress with modelled impairment provisions impacted by
uncertainty.
This uncertainty continues to be
captured in two ways. Firstly, customer uncertainty: the
identification of customers and clients who may be more vulnerable
to economic instability; and secondly, model uncertainty: to
capture the impact from model limitations and sensitivities to
specific macroeconomic parameters which are applied at a portfolio
level.
Economic uncertainty adjustments
have decreased from last year following the re-build of UK cards
and certain CIB impairment models which better capture the
macroeconomic outlook. Furthermore, adjustments have been
reassessed to capture affordability headwinds in UK retail
lending.
The balance as at 31 December 2023 is £198m (2022: £317m) and
includes:
Customer and client uncertainty provisions of £166m (2022:
£423m):
•UK retail lending includes adjustments
applied to customers considered most vulnerable to affordability
pressures.
•Retail mortgages (UK) £25m (2022: £4m):
The increase primarily reflects the risk of borrowers refinancing
onto higher rates in the medium term.
•Retail credit cards (UK) £45m (2022: £93m): The reduction
reflects the re-build of UK cards impairment models which better
capture sensitivity to movements in interest rates and
inflation.
•Retail other (UK) £9m (2022: £23m): The reduction
reflects customer resilience to affordability headwinds.
•Corporate loans £87m (2022: £301m):
This includes an adjustment of £71m in UK to reflect possible cross
default risk on Barclays' lending in respect of clients who have
taken bounce back loans and £16m in Rest of the World (ROW) to
provide for downside uncertainties on European Corporates
reflecting recent changes in the macroeconomic outlook.
The reduction of £(214)m in UK and
ROW is informed by retirement of an adjustment for high risk
sectors following a granular credit risk assessment, and re-build
of certain CIB impairment models which more appropriately capture
downside risk.
Model uncertainty provisions of £32m (2022:
£(106)m):
•Retail mortgages (UK) £32m (2022: nil): This includes an
adjustment to correct for higher recovery expectations impacted by
model oversensitivity to certain macroeconomic
variables.
•Corporate loans £nil (2022: £(106)m):
The adjustment held in the previous year to correct for model
oversensitivity has been retired following the re-build of certain
CIB impairment models which more appropriately capture the
macroeconomic outlook.
Other adjustments
Other adjustments are operational
in nature and are expected to remain in place until they can be
reflected in the underlying models. These adjustments result from
data limitations and model performance related issues identified
through model monitoring and other established governance
processes.
Other adjustments of £179m (2022: £208m)
includes:
Adjustments for definition of
default (DOD) under the Capital Requirements Regulation and model
monitoring in Retail mortgages, Retail other and Corporate
loans.
•Retail mortgages (UK) £121m (2022: £85m): The increase
reflects re-sizing of an adjustment for DOD and an ECL provision
for Kensington Mortgages which was acquired during the
year.
•Retail credit cards:
-UK
£(9)m (2022:
£32m): The reduction is informed by retirement of
operational adjustments following the re-build of UK cards
impairment models.
-ROW £8m (2022:
£55m): The reduction is informed by
retirement of an adjustment in US cards for high-risk account
management (HRAM) accounts following model remediation during the
year.
•Retail other:
-UK £62m (2022:
£80m): The underlying adjustments
were re-sized and remain broadly in line with the previous
year.
-ROW, £(6)m (2022:
£19m): The reduction is informed by
the German consumer finance business portfolio classified as assets
held for sale.
•Corporate loans:
-UK £10m (2022:
£166m): The reduction is informed
by retirement of model monitoring adjustments in CIB following the
re-build of certain impairment models. Further, operational
adjustments have been introduced during the year to remediate
conservative modelled recovery expectations in the ESHLA
portfolio.
-ROW £(4)m (2022:
£(229)m): The previously held
adjustments linked to model monitoring and ECL sensitivity
to the macroeconomic variable for Federal Tax Receipts have been
retired following the re-build of certain CIB impairment
models.
Measurement uncertainty
Scenarios used to calculate the
Group's ECL charge were refreshed in Q423 with the Baseline
scenario reflecting the latest consensus macroeconomic forecasts
available at the time of the scenario refresh. In the Baseline
scenario, whilst UK and US economies avoid a recession, GDP growth
remains weak in the coming quarters and beyond as restrictive
monetary policies, which impact economies with a lag, continue to
restrain growth. Having peaked in 2022, consumer price inflation in
key regions continues to ease over 2023 and 2024. The UK and US
unemployment rates rise to 4.8% and 4.4% respectively over 2024 and
then stabilise. With the significant decline in inflationary
pressures, major central banks refrain from further interest rate
increases. UK house prices continue to decline in 2024 before
stabilising and resuming the upward trend from 2025. The housing
market in the US remains more resilient, with house prices
continuing to grow.
In the Downside 2 scenario,
inflationary pressures are assumed to intensify again, mainly
driven by strong wage growth. Central banks raise rates further,
with the UK bank rate and the US federal fund rate each reaching
8.5% in Q324. High interest rates suddenly bring stress into the
financial and non-financial system, causing joblessness to spike
and triggering a housing markets crisis and central banks are
forced cut interest rates aggressively. Falling demand reduces UK
and US GDP and headline inflation drops to close to zero. In the
Upside 2 scenario, tighter and more productive labour markets help
to accelerate economic growth whilst keeping inflationary pressures
under control. With inflation quickly returning to target, central
banks lower interest rates, further stimulating aggregate demand
and GDP growth.
The methodology for estimating
scenario probability weights involves simulating a range of future
paths for UK and US GDP using historical data with the five
scenarios mapped against the distribution of these future paths.
The median is centred around the Baseline with scenarios further
from the Baseline attracting a lower weighting before the five
weights are normalised to total 100%. The increases in the Downside
scenario weightings reflected a reduction in GDP stress severity in
the Downside scenarios which brought the GDP of these scenarios
closer to the Baseline. The increases in the Upside scenario
weightings were driven by the improvement in actual GDP and the
Baseline scenario, bringing the Baseline scenario closer to the
Upside scenarios. For further details see page 42.
The economic uncertainty
adjustments of £0.2bn (2022: £0.3bn) have been applied as overlays
to the modelled ECL output. These adjustments consist of a customer
and client uncertainty provision of £0.2bn (2022: £0.4bn) which has
been applied to customers and clients considered most vulnerable to
affordability pressures, and a model uncertainty adjustment of
£0.0bn (2022: £(0.1)bn).
The following tables show the key
macroeconomic variables used in the five scenarios (5 year annual
paths) and the probability weights applied to each
scenario.
Macroeconomic variables used in the calculation of
ECL
|
As at 31.12.23
|
2023
|
2024
|
2025
|
2026
|
2027
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK GDP1
|
0.5
|
0.3
|
1.2
|
1.6
|
1.6
|
UK
unemployment2
|
4.2
|
4.7
|
4.7
|
4.8
|
5.0
|
UK HPI3
|
(3.3)
|
(5.1)
|
0.7
|
3.1
|
5.3
|
UK bank rate
|
4.7
|
4.9
|
4.1
|
3.8
|
3.5
|
US GDP1
|
2.4
|
1.3
|
1.7
|
1.9
|
1.9
|
US
unemployment4
|
3.7
|
4.3
|
4.3
|
4.3
|
4.3
|
US HPI5
|
5.4
|
3.4
|
3.0
|
3.3
|
3.3
|
US federal funds rate
|
5.1
|
5.0
|
3.9
|
3.8
|
3.8
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK GDP1
|
0.5
|
(1.5)
|
(2.6)
|
2.4
|
1.6
|
UK
unemployment2
|
4.2
|
5.2
|
7.9
|
6.3
|
5.5
|
UK HPI3
|
(3.3)
|
(19.3)
|
(16.8)
|
14.5
|
12.4
|
UK bank rate
|
4.7
|
6.6
|
1.3
|
1.0
|
1.0
|
US GDP1
|
2.4
|
(0.6)
|
(2.0)
|
3.1
|
2.0
|
US
unemployment4
|
3.7
|
5.2
|
7.2
|
5.9
|
5.2
|
US HPI5
|
5.4
|
(6.5)
|
(5.7)
|
7.2
|
6.4
|
US federal funds rate
|
5.1
|
6.3
|
1.8
|
1.5
|
1.5
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK GDP1
|
0.5
|
(0.6)
|
(0.7)
|
2.0
|
1.6
|
UK
unemployment2
|
4.2
|
4.9
|
6.3
|
5.6
|
5.2
|
UK HPI3
|
(3.3)
|
(12.4)
|
(8.3)
|
8.7
|
8.8
|
UK bank rate
|
4.7
|
5.8
|
2.7
|
2.5
|
2.3
|
US GDP1
|
2.4
|
0.3
|
(0.2)
|
2.5
|
1.9
|
US
unemployment4
|
3.7
|
4.7
|
5.8
|
5.1
|
4.8
|
US HPI5
|
5.4
|
(1.7)
|
(1.4)
|
5.2
|
4.8
|
US federal funds rate
|
5.1
|
5.7
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK GDP1
|
0.5
|
2.4
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
4.2
|
3.9
|
3.5
|
3.6
|
3.6
|
UK HPI3
|
(3.3)
|
7.8
|
7.6
|
4.5
|
5.6
|
UK bank rate
|
4.7
|
4.3
|
2.7
|
2.5
|
2.5
|
US GDP1
|
2.4
|
2.8
|
3.1
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.5
|
3.6
|
3.6
|
3.6
|
US HPI5
|
5.4
|
6.1
|
4.3
|
4.5
|
4.6
|
US federal funds rate
|
5.1
|
4.3
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK GDP1
|
0.5
|
1.4
|
2.5
|
2.3
|
2.0
|
UK
unemployment2
|
4.2
|
4.3
|
4.1
|
4.2
|
4.3
|
UK HPI3
|
(3.3)
|
1.2
|
4.1
|
3.8
|
5.4
|
UK bank rate
|
4.7
|
4.6
|
3.4
|
3.3
|
3.0
|
US GDP1
|
2.4
|
2.0
|
2.4
|
2.4
|
2.4
|
US
unemployment4
|
3.7
|
3.9
|
3.9
|
4.0
|
4.0
|
US HPI5
|
5.4
|
4.7
|
3.7
|
3.9
|
3.9
|
US federal funds rate
|
5.1
|
4.7
|
3.5
|
3.3
|
3.3
|
1
|
Average Real GDP seasonally adjusted change in
year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate
16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative
to prior year end.
|
As at 31.12.22
|
2022
|
2023
|
2024
|
2025
|
2026
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK GDP1
|
3.3
|
(0.8)
|
0.9
|
1.8
|
1.9
|
UK
unemployment2
|
3.7
|
4.5
|
4.4
|
4.1
|
4.2
|
UK HPI3
|
8.4
|
(4.7)
|
(1.7)
|
2.2
|
2.2
|
UK bank rate
|
1.8
|
4.4
|
4.1
|
3.8
|
3.4
|
US GDP1
|
1.8
|
0.5
|
1.2
|
1.5
|
1.5
|
US
unemployment4
|
3.7
|
4.3
|
4.7
|
4.7
|
4.7
|
US HPI5
|
11.2
|
1.8
|
1.5
|
2.3
|
2.4
|
US federal funds rate
|
2.1
|
4.8
|
3.6
|
3.1
|
3.0
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK GDP1
|
3.3
|
(3.4)
|
(3.8)
|
2.0
|
2.3
|
UK
unemployment2
|
3.7
|
6.0
|
8.4
|
8.0
|
7.4
|
UK HPI3
|
8.4
|
(18.3)
|
(18.8)
|
(7.7)
|
8.2
|
UK bank rate
|
1.8
|
7.3
|
7.9
|
6.6
|
5.5
|
US GDP1
|
1.8
|
(2.7)
|
(3.4)
|
2.0
|
2.6
|
US
unemployment4
|
3.7
|
6.0
|
8.5
|
8.1
|
7.1
|
US HPI5
|
11.2
|
(3.1)
|
(4.0)
|
(1.9)
|
4.8
|
US federal funds rate
|
2.1
|
6.6
|
6.9
|
5.8
|
4.6
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK GDP1
|
3.3
|
(2.1)
|
(1.5)
|
1.9
|
2.1
|
UK
unemployment2
|
3.7
|
5.2
|
6.4
|
6.0
|
5.8
|
UK HPI3
|
8.4
|
(11.7)
|
(10.6)
|
(2.8)
|
5.2
|
UK bank rate
|
1.8
|
5.9
|
6.1
|
5.3
|
4.6
|
US GDP1
|
1.8
|
(1.1)
|
(1.1)
|
1.7
|
2.1
|
US
unemployment4
|
3.7
|
5.1
|
6.6
|
6.4
|
5.9
|
US HPI5
|
11.2
|
(0.7)
|
(1.3)
|
0.2
|
3.6
|
US federal funds rate
|
2.1
|
5.8
|
5.4
|
4.4
|
3.9
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK GDP1
|
3.3
|
2.8
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
3.7
|
3.5
|
3.4
|
3.4
|
3.4
|
UK HPI3
|
8.4
|
8.7
|
7.5
|
4.4
|
4.2
|
UK bank rate
|
1.8
|
3.1
|
2.6
|
2.5
|
2.5
|
US GDP1
|
1.8
|
3.3
|
3.5
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.3
|
3.3
|
3.3
|
3.3
|
US HPI5
|
11.2
|
5.8
|
5.1
|
4.5
|
4.5
|
US federal funds rate
|
2.1
|
3.6
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK GDP1
|
3.3
|
1.0
|
2.3
|
2.4
|
2.1
|
UK
unemployment2
|
3.7
|
4.0
|
3.9
|
3.8
|
3.8
|
UK HPI3
|
8.4
|
1.8
|
2.9
|
3.3
|
3.2
|
UK bank rate
|
1.8
|
3.5
|
3.3
|
3.0
|
2.8
|
US GDP1
|
1.8
|
1.9
|
2.3
|
2.2
|
2.2
|
US
unemployment4
|
3.7
|
3.8
|
4.0
|
4.0
|
4.0
|
US HPI5
|
11.2
|
3.8
|
3.3
|
3.4
|
3.4
|
US federal funds rate
|
2.1
|
3.9
|
3.4
|
3.0
|
3.0
|
1
|
Average Real GDP seasonally adjusted change in
year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate
16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative
to prior year end.
|
Scenario probability weighting
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
%
|
%
|
%
|
%
|
%
|
As at 31.12.23
|
|
|
|
|
|
Scenario probability
weighting
|
13.8
|
24.7
|
32.7
|
18.3
|
10.8
|
As at 31.12.22
|
|
|
|
|
|
Scenario probability
weighting
|
10.9
|
23.1
|
39.4
|
17.6
|
9.0
|
Specific bases show the most
extreme position of each variable in the context of the
downside/upside scenarios, for example, the highest unemployment
for downside scenarios, average unemployment for baseline scenarios
and lowest unemployment for upside scenarios. GDP and HPI downside
and upside scenario data represents the lowest and highest
cumulative position relative to the start point, in the 20 quarter
period.
Macroeconomic variables (specific
bases)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.23
|
%
|
%
|
%
|
%
|
%
|
UK GDP2
|
13.4
|
9.6
|
1.1
|
(1.3)
|
(4.1)
|
UK
unemployment3
|
3.5
|
3.9
|
4.7
|
6.5
|
8.3
|
UK HPI4
|
23.8
|
11.5
|
0.1
|
(22.5)
|
(35.0)
|
UK bank rate
|
2.5
|
3.0
|
4.2
|
6.8
|
8.5
|
US GDP2
|
15.1
|
12.3
|
1.8
|
0.6
|
(1.7)
|
US
unemployment3
|
3.4
|
3.5
|
4.2
|
5.9
|
7.5
|
US HPI4
|
27.4
|
23.5
|
3.7
|
0.4
|
(7.6)
|
US federal funds rate
|
2.8
|
3.3
|
4.3
|
6.8
|
8.5
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK GDP2
|
13.9
|
9.4
|
1.4
|
(3.2)
|
(6.8)
|
UK
unemployment3
|
3.4
|
3.6
|
4.2
|
6.6
|
8.5
|
UK HPI4
|
37.8
|
21.0
|
1.2
|
(17.9)
|
(35.0)
|
UK bank rate
|
0.5
|
0.5
|
3.5
|
6.3
|
8.0
|
US GDP2
|
14.1
|
9.6
|
1.3
|
(2.5)
|
(6.3)
|
US
unemployment3
|
3.3
|
3.6
|
4.4
|
6.7
|
8.6
|
US HPI4
|
35.0
|
27.5
|
3.8
|
3.7
|
0.2
|
US federal funds rate
|
0.1
|
0.1
|
3.3
|
6.0
|
7.0
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment
= UK unemployment rate 16-year+; UK HI = Halifax All Houses, All
Buyers Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index. 20 quarter period starts from Q123 (2022:
Q122).
|
2
|
Maximum growth relative to Q422 (2022: Q421), based on 20
quarter period in Upside scenarios; 5-year yearly average CAGR in
Baseline; minimum growth relative to Q422 (2022: Q421), based on 20
quarter period in Downside scenarios.
|
3
|
Lowest quarter in 20 quarter period in Upside scenarios;
5-year average in Baseline; highest quarter 20 quarter period in
Downside scenarios.
|
4
|
Maximum growth relative to Q422 (2022: Q421), based on 20
quarter period in Upside scenarios; 5-year quarter end CAGR in
Baseline; minimum growth relative to Q422 (2022: Q421), based on 20
quarter period in Downside scenarios.
|
Average basis represents the
average quarterly value of variables in the 20 quarter period with
GDP and HPI based on yearly average and quarterly CAGRs
respectively.
Macroeconomic variables (5-year
averages)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.23
|
%
|
%
|
%
|
%
|
%
|
UK GDP2
|
2.4
|
1.7
|
1.1
|
0.6
|
0.1
|
UK
unemployment3
|
3.7
|
4.2
|
4.7
|
5.2
|
5.8
|
UK HPI4
|
4.4
|
2.2
|
0.1
|
(1.7)
|
(3.5)
|
UK bank rate
|
3.3
|
3.8
|
4.2
|
3.6
|
2.9
|
US GDP2
|
2.8
|
2.3
|
1.8
|
1.4
|
0.9
|
US
unemployment3
|
3.6
|
3.9
|
4.2
|
4.8
|
5.4
|
US HPI4
|
5.0
|
4.3
|
3.7
|
2.4
|
1.2
|
US federal funds rate
|
3.6
|
4.0
|
4.3
|
3.9
|
3.2
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK GDP2
|
3.0
|
2.2
|
1.4
|
0.7
|
-
|
UK
unemployment3
|
3.5
|
3.8
|
4.2
|
5.4
|
6.7
|
UK HPI4
|
6.6
|
3.9
|
1.2
|
(2.6)
|
(6.4)
|
UK bank rate
|
2.5
|
2.9
|
3.5
|
4.7
|
5.8
|
US GDP2
|
2.9
|
2.1
|
1.3
|
0.7
|
-
|
US
unemployment3
|
3.4
|
3.9
|
4.4
|
5.5
|
6.7
|
US HPI4
|
6.2
|
5.0
|
3.8
|
2.5
|
1.2
|
US federal funds rate
|
2.8
|
3.1
|
3.3
|
4.3
|
5.2
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment
= UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All
Buyers Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index.
|
2
|
5-year yearly average CAGR, starting 2022 (2022:
2021).
|
3
|
5-year average. Period based on 20 quarters from Q123 (2022:
Q122).
|
4
|
5-year quarter end CAGR, starting Q422 (2022:
Q421).
|
ECL under 100% weighted scenarios for modelled
portfolios
The table below shows the modelled
ECL assuming each of the five modelled scenarios are 100% weighted
with the dispersion of results around the Baseline, highlighting
the impact on exposure and ECL across the scenarios. Model exposure
uses exposure at default (EAD) values and is not directly
comparable to gross exposure used in prior disclosures.
|
Scenarios
|
As at 31 December 2023
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
145,226
|
147,415
|
146,653
|
145,405
|
142,543
|
138,925
|
Retail credit
cards2
|
66,512
|
66,459
|
66,482
|
66,497
|
66,580
|
66,580
|
Retail
other2
|
8,749
|
8,915
|
8,841
|
8,758
|
8,631
|
8,479
|
Corporate loans
|
175,282
|
179,567
|
177,923
|
175,903
|
172,328
|
167,541
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
9
|
4
|
5
|
7
|
11
|
22
|
Retail credit
cards2
|
562
|
529
|
545
|
561
|
584
|
605
|
Retail
other2
|
32
|
31
|
32
|
32
|
32
|
31
|
Corporate loans
|
275
|
243
|
257
|
270
|
298
|
318
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
-
|
-
|
-
|
-
|
-
|
-
|
Retail credit cards
|
0.8
|
0.8
|
0.8
|
0.8
|
0.9
|
0.9
|
Retail other
|
0.4
|
0.3
|
0.4
|
0.4
|
0.4
|
0.4
|
Corporate loans
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.2
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
20,615
|
17,769
|
18,702
|
20,149
|
23,836
|
28,822
|
Retail credit
cards2
|
7,076
|
6,897
|
6,976
|
7,064
|
7,183
|
7,387
|
Retail
other2
|
1,382
|
1,216
|
1,290
|
1,373
|
1,500
|
1,653
|
Corporate loans
|
24,374
|
19,919
|
21,621
|
23,763
|
27,445
|
32,375
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
41
|
23
|
27
|
34
|
59
|
123
|
Retail credit
cards2
|
1,684
|
1,554
|
1,609
|
1,668
|
1,775
|
1,922
|
Retail
other2
|
85
|
72
|
78
|
84
|
95
|
105
|
Corporate loans
|
663
|
509
|
565
|
633
|
782
|
1,031
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.4
|
Retail credit cards
|
23.8
|
22.5
|
23.1
|
23.6
|
24.7
|
26.0
|
Retail other
|
6.2
|
5.9
|
6.0
|
6.1
|
6.3
|
6.4
|
Corporate loans
|
2.7
|
2.6
|
2.6
|
2.7
|
2.8
|
3.2
|
Stage 3 Model Exposure (£m)3
|
|
|
|
|
|
|
Retail mortgages
|
1,672
|
1,672
|
1,672
|
1,672
|
1,672
|
1,672
|
Retail credit
cards2
|
1,827
|
1,827
|
1,827
|
1,827
|
1,827
|
1,827
|
Retail
other2
|
164
|
164
|
164
|
164
|
164
|
164
|
Corporate loans
|
3,436
|
3,436
|
3,436
|
3,436
|
3,436
|
3,436
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
333
|
308
|
316
|
325
|
351
|
393
|
Retail credit
cards2
|
1,315
|
1,279
|
1,296
|
1,313
|
1,341
|
1,366
|
Retail
other2
|
95
|
94
|
94
|
95
|
96
|
97
|
Corporate
loans4
|
77
|
71
|
73
|
75
|
82
|
89
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
19.9
|
18.4
|
18.9
|
19.4
|
21.0
|
23.5
|
Retail credit cards
|
72.0
|
70.0
|
70.9
|
71.9
|
73.4
|
74.8
|
Retail other
|
57.9
|
57.3
|
57.3
|
57.9
|
58.5
|
59.1
|
Corporate
loans4
|
2.2
|
2.1
|
2.1
|
2.2
|
2.4
|
2.6
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
383
|
335
|
348
|
366
|
421
|
538
|
Retail credit
cards2
|
3,561
|
3,362
|
3,450
|
3,542
|
3,700
|
3,893
|
Retail
other2
|
212
|
197
|
204
|
211
|
223
|
233
|
Corporate
loans4
|
1,015
|
823
|
895
|
978
|
1,162
|
1,438
|
Total Model ECL
|
5,171
|
4,717
|
4,897
|
5,097
|
5,506
|
6,102
|
Reconciliation to total ECL
|
£m
|
Total weighted model
ECL
|
5,171
|
ECL from individually assessed
exposures4
|
401
|
ECL from non-modelled exposures
and others
|
276
|
ECL from debt securities at
amortised cost
|
27
|
ECL from post model management
adjustments
|
377
|
Of which: ECL from economic uncertainty
adjustments
|
198
|
Total ECL
|
6,252
|
1
|
Model exposures are allocated to a stage based on an
individual scenario rather than a probability-weighted approach as
required for Barclays reported impairment allowances. As a result,
it is not possible to back solve the final reported weighted ECL
from individual scenarios given balances may be assigned to a
different stage dependent on the scenario.
|
2
|
Model exposures and ECL reported within Retail credit cards
and Retail other exclude the German consumer finance business
portfolio which has now been classified as assets held for
sale.
|
3
|
Model exposures allocated to Stage 3 does not change in any
of the scenarios as the transition criteria relies only on an
observable evidence of default as at 31 December 2023 and not on
macroeconomic scenario.
|
4
|
Material corporate loan defaults are individually assessed
across different recovery strategies. As a result, ECL of £401m is
reported as an individually assessed impairment in the
reconciliation table.
|
The use of five scenarios with
associated weightings results in a total weighted ECL uplift from
the Baseline ECL of 1.5%.
Retail mortgages: Total
weighted ECL of £383m represents a 4.6% increase over the Baseline
ECL (£366m) with coverage ratios remaining steady across the Upside
scenarios, Baseline and Downside 1 scenario. Under the Downside 2
scenario, total ECL increases to £538m driven by a significant fall
in UK HPI.
Retail credit cards: Total
weighted ECL of £3,561m is broadly aligned to the Baseline ECL
(£3,542m). Total ECL increases to £3,893m under the Downside 2
scenario, driven by an increase in UK and US unemployment
rate.
Retail other: Total weighted
ECL of £212m is aligned to the Baseline ECL (£211m). Total ECL
increases to £233m under the Downside 2 scenario, largely driven by
an increase in UK unemployment rate.
Corporate loans: Total
weighted ECL of £1,015m represents a 3.8% increase over the
Baseline ECL (£978m). Total ECL increases to £1,438m under the
Downside 2 scenario, driven by a decrease in UK and US
GDP.
|
Scenarios
|
As at 31 December 2022
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
144,701
|
147,754
|
146,873
|
145,322
|
142,599
|
138,619
|
Retail credit cards
|
67,204
|
67,622
|
67,352
|
67,080
|
66,908
|
66,636
|
Retail other
|
12,282
|
12,428
|
12,341
|
12,235
|
12,111
|
11,986
|
Corporate loans
|
155,794
|
163,699
|
161,070
|
157,710
|
150,435
|
138,226
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
7
|
3
|
3
|
4
|
9
|
30
|
Retail credit cards
|
509
|
493
|
503
|
512
|
517
|
521
|
Retail other
|
52
|
45
|
49
|
52
|
54
|
55
|
Corporate loans
|
341
|
259
|
290
|
325
|
397
|
443
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
-
|
-
|
-
|
-
|
-
|
-
|
Retail credit cards
|
0.8
|
0.7
|
0.7
|
0.8
|
0.8
|
0.8
|
Retail other
|
0.4
|
0.4
|
0.4
|
0.4
|
0.4
|
0.5
|
Corporate loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
0.3
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
18,723
|
15,670
|
16,551
|
18,102
|
20,825
|
24,805
|
Retail credit cards
|
7,611
|
6,551
|
7,118
|
7,691
|
8,313
|
9,062
|
Retail other
|
1,559
|
1,386
|
1,485
|
1,601
|
1,741
|
1,881
|
Corporate loans
|
24,935
|
16,858
|
19,550
|
23,031
|
30,432
|
42,837
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
33
|
15
|
18
|
23
|
45
|
151
|
Retail credit cards
|
1,624
|
1,361
|
1,487
|
1,624
|
1,811
|
2,032
|
Retail other
|
124
|
96
|
109
|
124
|
144
|
160
|
Corporate loans
|
610
|
399
|
470
|
569
|
816
|
1,303
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
0.6
|
Retail credit cards
|
21.3
|
20.8
|
20.9
|
21.1
|
21.8
|
22.4
|
Retail other
|
8.0
|
6.9
|
7.3
|
7.7
|
8.3
|
8.5
|
Corporate loans
|
2.4
|
2.4
|
2.4
|
2.5
|
2.7
|
3.0
|
Stage 3 Model Exposure (£m)2
|
|
|
|
|
|
|
Retail mortgages
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
Retail credit cards
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
Retail other
|
216
|
216
|
216
|
216
|
216
|
216
|
Corporate loans
|
2,891
|
2,891
|
2,891
|
2,891
|
2,891
|
2,891
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
332
|
311
|
317
|
323
|
347
|
405
|
Retail credit cards
|
880
|
861
|
871
|
881
|
893
|
902
|
Retail other
|
132
|
129
|
131
|
132
|
134
|
136
|
Corporate
loans3
|
70
|
66
|
68
|
70
|
78
|
85
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
21.4
|
20.0
|
20.4
|
20.8
|
22.3
|
26.1
|
Retail credit cards
|
65.0
|
63.6
|
64.3
|
65.1
|
66.0
|
66.6
|
Retail other
|
61.1
|
59.7
|
60.6
|
61.1
|
62.0
|
63.0
|
Corporate
loans3
|
2.4
|
2.3
|
2.4
|
2.4
|
2.7
|
2.9
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
372
|
329
|
338
|
350
|
401
|
586
|
Retail credit cards
|
3,013
|
2,715
|
2,861
|
3,017
|
3,221
|
3,455
|
Retail other
|
308
|
270
|
289
|
308
|
332
|
351
|
Corporate
loans3
|
1,021
|
724
|
828
|
964
|
1,291
|
1,831
|
Total Model ECL
|
4,714
|
4,038
|
4,316
|
4,639
|
5,245
|
6,223
|
Reconciliation to total ECL
|
£m
|
Total weighted model
ECL
|
4,714
|
ECL from individually assessed
exposures3
|
434
|
ECL from non-modelled exposures
and others
|
460
|
ECL from debt securities at
amortised cost
|
42
|
ECL from post model management
adjustments
|
525
|
Of which: ECL from economic uncertainty
adjustments
|
317
|
Total ECL
|
6,175
|
1
|
Model exposures are allocated to a stage based on an
individual scenario rather than a probability-weighted approach, as
required for Barclays reported impairment allowances. As a result,
it is not possible to back solve the final reported weighted ECL
from individual scenarios given balances may be assigned to a
different stage dependent on the scenario.
|
2
|
Model exposures allocated to Stage 3 does not change in any
of the scenarios as the transition criteria relies only on an
observable evidence of default as at 31 December 2022 and not on
macroeconomic scenario.
|
3
|
Material corporate loan defaults are individually assessed
across different recovery strategies. As a result, ECL of £434m is
reported as an individually assessed impairment in the
reconciliation table.
|
Analysis of specific portfolios and asset
types
Secured home loans
The UK home loan portfolio
primarily comprises first lien mortgages and accounts for
95% (December 2022: 93%) of the Group's total home loans
balance.
|
Barclays UK
|
Home loans principal portfolios
|
As at 31.12.23
|
As at 31.12.22
|
Gross loans and advances
(£m)
|
163,639
|
162,380
|
90 day arrears rate, excluding
recovery book (%)
|
0.2
|
0.1
|
Annualised gross charge-off rates
- 180 days past due (%)
|
0.5
|
0.5
|
Recovery book proportion of
outstanding balances (%)
|
0.6
|
0.5
|
Recovery book impairment coverage
ratio (%)1
|
7.2
|
5.2
|
|
|
|
Average marked to market LTV
|
|
|
Balance weighted %
|
53.6
|
50.4
|
Valuation weighted %
|
40.0
|
37.3
|
|
|
|
New lending
|
Year ended 31.12.23
|
Year ended 31.12.22
|
New home loan bookings
(£m)
|
22,669
|
30,307
|
New home loan proportion > 90%
LTV (%)
|
0.6
|
2.8
|
Average LTV on new home loans:
balance weighted (%)
|
62.6
|
68.1
|
Average LTV on new home loans:
valuation weighted (%)
|
53.8
|
59.6
|
1
|
Recovery Book Impairment Coverage Ratio excludes
KMC.
|
Home loans principal portfolios - distribution of balances by
LTV1
|
Distribution of balances
|
Distribution of impairment allowance
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Barclays UK
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
As at 31.12.23
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
73.5
|
10.4
|
0.9
|
84.8
|
8.5
|
16.2
|
26.7
|
51.4
|
-
|
0.2
|
3.8
|
0.1
|
>75% and <=90%
|
12.3
|
1.2
|
0.1
|
13.6
|
7.4
|
16.7
|
12.8
|
36.9
|
0.1
|
1.9
|
27.9
|
0.4
|
>90% and <=100%
|
1.5
|
0.1
|
-
|
1.6
|
1.2
|
2.5
|
3.6
|
7.3
|
0.1
|
2.6
|
63.3
|
0.6
|
>100%
|
-
|
-
|
-
|
-
|
0.3
|
0.7
|
3.4
|
4.4
|
1.0
|
12.1
|
100.0
|
12.4
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
78.8
|
10.5
|
0.8
|
90.1
|
10.2
|
30.8
|
33.2
|
74.2
|
-
|
0.2
|
2.9
|
0.1
|
>75% and <=90%
|
8.8
|
0.5
|
-
|
9.3
|
3.9
|
9.7
|
5.2
|
18.8
|
-
|
1.4
|
30.8
|
0.1
|
>90% and <=100%
|
0.6
|
-
|
-
|
0.6
|
0.3
|
0.3
|
2.4
|
3.0
|
-
|
1.5
|
85.0
|
0.4
|
>100%
|
-
|
-
|
-
|
-
|
0.1
|
0.6
|
3.3
|
4.0
|
0.4
|
21.4
|
64.9
|
13.1
|
1
|
Portfolio marked to market based on the most updated
valuation including recovery book balances. Updated valuations
reflect the application of the latest HPI available as at 31
December 2023.
|
New home loans bookings in 2023
decreased 25% to £22.7bn (2022: 30.3bn) and the 90 day arrears rate
increased to 0.2% (2022: 0.1%), mainly driven by economic
conditions that resulted in general mortgage market suppression,
including higher mortgage payments as rates continued to rise and
increased cost of living factors in line with inflation in
2023.
Head Office: Italian home
loans and advances at amortised cost reduced to £3.6bn (2022: £4.5bn) and
continue to run-off since new bookings ceased in 2016. The
portfolio is secured on residential property with an average
balance weighted mark to market LTV of 55.6% (2022: 58.8%). 90-day
arrears increased to 2.4% (2022:
1.2%) due to deterioration caused by
affordability stress related to rising inflation and interest
rates. The gross charge-off rate was broadly stable at 0.7% (2022: 0.6%).
Retail credit cards and Retail other
The principal portfolios listed
below accounted for 91% (December 2022:
87%) of the Group's total retail credit
cards and retail other.
Principal portfolios
|
Gross exposure
|
30 day arrears rate, excluding recovery
book
|
90 day arrears rate, excluding recovery
book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
As at 31.12.23
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
10,420
|
0.9
|
0.2
|
1.4
|
1.3
|
UK personal loans
|
3,641
|
1.5
|
0.6
|
1.3
|
1.0
|
Barclays Partner
Finance
|
2,344
|
0.6
|
0.3
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
27,286
|
2.9
|
1.5
|
2.3
|
2.3
|
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
9,939
|
0.9
|
0.2
|
3.7
|
3.6
|
UK personal loans
|
4,023
|
1.4
|
0.6
|
4.1
|
3.8
|
Barclays Partner
Finance
|
2,612
|
0.5
|
0.2
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
25,554
|
2.2
|
1.2
|
2.4
|
2.3
|
German consumer finance
business
|
4,269
|
1.7
|
0.7
|
0.7
|
0.6
|
Retail Credit Cards and Retail Other held for
sale
|
Gross exposure
|
30 day arrears rate, excluding recovery
book
|
90 day arrears rate, excluding recovery
book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
As at 31.12.23
|
£m
|
%
|
%
|
%
|
%
|
Barclays International
|
|
|
|
|
|
German consumer finance
business
|
4,094
|
1.7
|
0.8
|
1.0
|
1.0
|
UK cards: 30 day and 90 day
arrears rates remained stable at 0.9%
(2022: 0.9%) and 0.2% (2022: 0.2%)
respectively. Total exposure increased from £9.9bn to £10.4bn due
to growth in spend and promotional balances. Both the gross and net
write off rates decreased by 2.3% driven by the impact of a
strategy change in 2022 to align the point of charge off and write
off in that year and lower charge off rates in 2023.
UK personal loans: 30 and 90
day arrears rates have remained broadly stable at 1.5% (2022: 1.4%)
and 0.6% (2022: 0.6%) respectively. Both the gross and net write
off rates decreased by 2.8%, driven by the impact of a strategy
change in 2022 to align the point of charge off and write off in
that year and by the impact of large bulk sales in 2022 which
reduced the flow to write off in 2023.
Barclays Partner Finance: 30
and 90 day arrears rates increased marginally to 0.6% (2022: 0.5%)
and 0.3% (2022: 0.2%) respectively as the weighting of lower risk
customers with larger balances reduced. Total exposure fell to
£2.3bn (2022: £2.6bn) due to a strategic decision to reduce the
number of active partner businesses. Annualised gross and net write
off rates remained stable.
US cards: 30 and 90 day
arrears rates increased to 2.9% (2022: 2.2%) and 1.5% (2022: 1.2%)
respectively due to an anticipated higher flow into and through
delinquency, as rates returned to pre-pandemic levels. Write off
rates remained broadly stable at 2.3%.
German consumer finance business: Gross exposure decreased 4% following business
reprioritisation and discontinuation of Open Market loans
originations. 30 and 90 day arrears rates remained stable and
write-off rates increased due to the impact of accepting higher
loan amount applications during 2022, which has since been
discontinued.
Market Risk
Analysis of management value at risk (VaR)
The table below shows the total
management VaR on a diversified basis by asset class. Total
management VaR includes all trading positions in Barclays Bank
Group and it is calculated with a one-day holding period. VaR
limits are applied to total management VaR and by asset class.
Additionally, the market risk management function applies VaR
sub-limits to material businesses and trading desks.
Management VaR (95%) by asset class
|
Year ended
31.12.23
|
|
Year ended
31.12.22
|
|
Average
|
High
|
Low
|
|
Average
|
High
|
Low
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Credit risk
|
40
|
57
|
22
|
|
25
|
71
|
8
|
Interest rate risk
|
15
|
25
|
9
|
|
13
|
23
|
4
|
Equity risk
|
6
|
10
|
3
|
|
10
|
29
|
4
|
Basis risk
|
13
|
25
|
8
|
|
12
|
24
|
4
|
Spread risk
|
9
|
14
|
5
|
|
7
|
11
|
3
|
Foreign exchange risk
|
4
|
9
|
1
|
|
8
|
25
|
2
|
Commodity risk
|
-
|
1
|
-
|
|
-
|
1
|
-
|
Inflation risk
|
6
|
11
|
2
|
|
6
|
17
|
3
|
Diversification
effect1
|
(51)
|
|
|
|
(45)
|
|
|
Total management VaR
|
42
|
60
|
24
|
|
36
|
73
|
13
|
1
|
Diversification effects recognise that forecast losses from
different assets or businesses are unlikely to occur concurrently,
hence the expected aggregate loss is lower than the sum of the
expected losses from each area. Historical correlations between
losses are taken into account in making these assessments. The high
and low VaR figures reported for each category did not necessarily
occur on the same day as the high and low VaR reported as a whole.
Consequently, a diversification effect balance for the high and low
VaR figures would not be meaningful and is therefore omitted from
the above table.
|
Average Management VaR increased
17% to £42m (2022: £36m) and the range
narrowed. The increase was driven by the impact of funded, fair
value leverage loan exposure in Investment Banking since Q4 2022,
partially offset by lower market volatility and credit spread
levels in 2023 as geopolitical tensions eased, relative to 2022,
inflation declined and the pace of interest rate rises moderated.
Management VaR declined in 2023 from a high of £73m in November 2022,
driven by a reduction in the size of the funded, fair value
leverage loan exposure in Investment Banking.
Treasury and Capital Risk
The Group
has established a comprehensive set of policies, standards and
controls for managing its liquidity risk; together these set out
the requirements for Barclays' liquidity risk framework. The
liquidity risk framework meets the PRA standards and enables
Barclays to maintain liquidity resources that are sufficient in
amount and quality, and a funding profile that is appropriate to
meet the Group's Liquidity Risk Appetite. The liquidity risk
framework is delivered via a combination of policy formation,
review and challenge, governance, analysis, stress testing, limit
setting and monitoring.
Liquidity risk stress testing
The Internal Liquidity Stress
Tests (ILST) measure the potential contractual and contingent
stress outflows under a range of scenarios, which are then used to
determine the size of the liquidity pool that is immediately
available to meet anticipated outflows if a stress occurs. The
short-term scenarios include a 30 day Barclays-specific stress
event, a 90 day market-wide stress event and a 30 day combined
scenario consisting of both a Barclays specific and market-wide
stress event. The Group also runs a liquidity stress test which
measures the anticipated outflows over a 12 month market-wide
scenario.
The LCR requirement takes into
account the relative stability of different sources of funding and
potential incremental funding requirements in a stress. The LCR is
designed to promote short-term resilience of a bank's liquidity
risk profile by holding sufficient high quality liquid assets to
survive an acute stress scenario lasting for 30 days.
As at 31 December 2023 the average
LCR was 161% (December 2022: 156%). The Group held eligible liquid
assets in excess of 100% of net stress outflows as measured
according to both its internal ILST and external regulatory
requirements.
Liquidity coverage ratio1
|
As at 31.12.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
LCR Eligible High Quality Liquid
Assets (HQLA)
|
310
|
320
|
Net stress outflows
|
192
|
206
|
Surplus
|
118
|
114
|
|
|
|
Liquidity coverage ratio
|
161%
|
156%
|
1
|
Liquidity Coverage Ratio is now shown on an average basis,
based on the average of the last 12 spot month end ratios. The
HQLA, Net Stress outflow, and Surplus balances in the table above
are average month end balances for the past 12 months. Prior period
HQLA, Net Stress Outflows, Surplus & LCR comparatives have been
updated for consistency.
|
Net Stable Funding Ratio
The external NSFR metric requires
banks to maintain a stable funding profile taking into account both
on and certain off balance sheet exposures over a medium to long
term period. The ratio is defined as the Available Stable Funding
(capital and certain liabilities which are treated as stable
sources of funding) relative to the Required Stable Funding (a
measure of assets on the balance sheet and certain off balance
sheet exposures which may require longer term funding). The NSFR
(average of last four quarter ends) as at 31 December 2023 was
138%, which was a surplus above requirements of £167bn.
Net Stable Funding Ratio1
|
As at 31.12.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
Total Available Stable
Funding
|
607
|
576
|
Total Required Stable
Funding
|
440
|
421
|
Surplus
|
167
|
155
|
|
|
|
Net Stable Funding Ratio
|
138%
|
137%
|
1
|
Represents average of the last four spot quarter end
ratios.
|
As part of the liquidity risk
appetite, Barclays establishes minimum LCR, NSFR and internal
liquidity stress test limits. The Group plans to maintain its
surplus to the internal and regulatory requirements at an efficient
level. Risks to market funding conditions, the Group's liquidity
position and funding profile are assessed continuously, and actions
are taken to manage the size of the liquidity pool and the funding
profile as appropriate.
Composition of the Group liquidity pool
|
|
|
|
|
|
|
|
|
LCR eligible1 High Quality Liquid Assets
(HQLA)
|
|
Liquidity pool
|
|
Cash
|
Level 1
|
Level 2A
|
Level 2B
|
Total
|
|
2023
|
2022
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Cash and deposits with central
banks2
|
211
|
-
|
-
|
-
|
211
|
|
232
|
263
|
|
|
|
|
|
|
|
|
|
Government bonds3
|
|
|
|
|
|
|
|
|
AAA to AA-
|
-
|
40
|
5
|
-
|
45
|
|
48
|
39
|
A+ to A-
|
-
|
1
|
1
|
-
|
2
|
|
1
|
3
|
BBB+ to BBB-
|
-
|
1
|
-
|
-
|
1
|
|
1
|
-
|
Total government bonds
|
-
|
42
|
6
|
-
|
48
|
|
50
|
42
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Government Guaranteed Issuers,
PSEs and GSEs
|
-
|
4
|
-
|
-
|
4
|
|
5
|
6
|
International Organisations and
MDBs
|
-
|
3
|
-
|
-
|
3
|
|
3
|
2
|
Covered bonds
|
-
|
3
|
3
|
-
|
6
|
|
7
|
5
|
Other
|
-
|
-
|
-
|
2
|
2
|
|
1
|
-
|
Total other
|
-
|
10
|
3
|
2
|
15
|
|
16
|
13
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2023
|
211
|
52
|
9
|
2
|
274
|
|
298
|
|
Total as at 31 December 2022
|
248
|
31
|
15
|
1
|
295
|
|
|
318
|
1
|
The LCR eligible HQLA is adjusted for operational
restrictions upon consolidation under Article 8 of the Liquidity
Coverage Ratio section of the PRA rulebook (CRR) such as trapped
liquidity within Barclays subsidiaries. It also reflects
differences in eligibility of assets between the LCR and Barclays'
Liquidity Pool.
|
2
|
Includes cash held at central banks and surplus cash at
central banks related to payment schemes. Over 99% (December 2022:
over 99%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
3
|
Of which over 80% (December 2022: over 79%) comprised UK, US,
French, German, Japanese, Swiss and Dutch
securities.
|
The Group liquidity pool
decreased to £298bn as at December 2023 (December 2022: £318bn) driven by a
reduction in wholesale funding, a slight reduction in overall
deposits, with a decrease in Barclays UK deposits being largely
offset by growth in Corporate Bank deposits, and changes in
business funding consumption.
In 2023,
the month-end liquidity pool ranged from £298bn to £342bn (2022:
£309bn to £359bn), and the month-end average balance was £328bn
(2022: £331bn). The liquidity pool is held unencumbered and
represents readily accessible funds to meet potential cash outflows
during stress periods.
As at 31 December 2023, 59%
(December 2022: 60%) of the liquidity pool was located in Barclays
Bank PLC, 22% (December 2022: 25%) in Barclays Bank UK PLC and 11%
(December 2022: 9%) in Barclays Bank Ireland PLC. The residual
portion of the liquidity pool is held outside of these entities,
predominantly in US subsidiaries, to meet entity-specific stress
outflows and local regulatory requirements. To the extent the use
of this residual portion of the liquidity pool is restricted due to
local regulatory requirements, it is assumed to be unavailable to
the rest of the Group in calculating the LCR.
The composition of the pool is
subject to limits set by the Board and the independent liquidity
risk, credit risk and market risk functions. In addition, the
investment of the liquidity pool is monitored for concentration by
issuer, currency and asset type. Given returns generated by these
highly liquid assets, the risk and reward profile is continuously
managed.
Deposit funding
|
As at 31.12.23
|
|
As at 31.12.22
|
|
Loans and advances, debt securities at amortised
cost
|
Deposits at amortised cost
|
Loan: deposit ratio1
|
|
Loan: deposit ratio1
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
Barclays UK
|
221
|
241
|
92
|
|
87
|
Barclays International
|
174
|
298
|
58
|
|
59
|
Head Office
|
4
|
|
|
|
|
Barclays Group
|
399
|
539
|
74
|
|
73
|
1
|
The loan: deposit ratio is calculated as loans and advances
at amortised cost and debt securities at amortised cost divided by
deposits at amortised cost.
|
Funding structure and funding relationships
The basis for liquidity risk
management is a funding structure that reduces the probability of a
liquidity stress leading to an inability to meet funding
obligations as they fall due. The Group's overall funding strategy
is to develop a diversified funding base (geographically, by type
and by counterparty) and maintain access to a variety of
alternative funding sources, to provide protection against
unexpected fluctuations, while minimising the cost of
funding.
Within this, the Group aims to
align the sources and uses of funding. As such, retail and
corporate loans and advances are largely funded by deposits in the
relevant entities, with the surplus primarily funding the liquidity
pool. The majority of reverse repurchase agreements are matched by
repurchase agreements. Derivative liabilities and assets are
largely matched. A substantial proportion of balance sheet
derivative positions qualify for counterparty netting and the
remaining portions are largely offset when netted against cash
collateral received and paid. Wholesale debt and equity is used to
fund residual assets.
These funding relationships as at
31 December 2023 are summarised below:
|
As at 31.12.23
|
As at 31.12.22
|
|
|
As at 31.12.23
|
As at 31.12.22
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
Loans and advances at amortised
cost1
|
386
|
385
|
|
Deposits at amortised
cost
|
539
|
546
|
Group liquidity pool
|
298
|
318
|
|
<1 Year wholesale
funding
|
59
|
73
|
|
|
|
|
>1 Year wholesale
funding
|
118
|
111
|
Reverse repurchase agreements,
trading portfolio assets, cash collateral and settlement
balances
|
435
|
412
|
|
Repurchase agreements, trading
portfolio liabilities, cash collateral and settlement
balances
|
380
|
370
|
Derivative financial
instruments
|
257
|
302
|
|
Derivative financial
instruments
|
250
|
290
|
Other
assets2
|
101
|
97
|
|
Other liabilities
|
59
|
55
|
|
|
|
|
Equity
|
72
|
69
|
Total assets
|
1,477
|
1,514
|
|
Total liabilities and equity
|
1,477
|
1,514
|
1
|
Adjusted for liquidity pool debt securities reported at
amortised cost of £18bn (December 2022: £14bn).
|
2
|
Other assets include fair value assets that are not part of
reverse repurchase agreements or trading portfolio assets, and
other asset categories.
|
Composition of wholesale funding
Wholesale funding outstanding
(excluding repurchase agreements) was £176.8bn (December 2022: £184.0bn). In 2023, the Group issued £14.1bn of MREL
eligible instruments from Barclays PLC (the Parent company) in a
range of tenors and currencies.
Our operating companies also
access wholesale funding markets to maintain their stable and
diversified funding bases. Barclays Bank PLC continued to issue in
the shorter-term and medium-term notes markets. In addition,
Barclays Bank UK PLC continued to issue in the shorter-term markets
and maintains active secured funding programmes.
Wholesale funding of £58.6bn (December 2022: £72.5bn) matures in less than one year, representing
33% (December 2022: 39%) of total wholesale funding outstanding.
This includes £18.7bn (December 2022: £15.0bn) related to term
funding1.
Maturity profile of wholesale
funding1,2
|
<1
|
1-3
|
3-6
|
6-12
|
<1
|
1-2
|
2-3
|
3-4
|
4-5
|
>5
|
|
|
month
|
months
|
months
|
months
|
year
|
years
|
years
|
years
|
years
|
years
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Barclays PLC (the Parent company)
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured (public
benchmark)
|
1.2
|
-
|
0.3
|
-
|
1.5
|
5.5
|
9.7
|
5.9
|
4.7
|
20.0
|
47.3
|
Senior unsecured (privately
placed)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1.0
|
1.0
|
Subordinated liabilities
|
-
|
-
|
-
|
0.4
|
0.4
|
-
|
1.5
|
-
|
1.5
|
5.8
|
9.2
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and
commercial paper
|
0.6
|
9.7
|
8.6
|
7.5
|
26.4
|
1.3
|
-
|
-
|
-
|
-
|
27.7
|
Asset backed commercial
paper
|
2.4
|
8.2
|
1.0
|
-
|
11.6
|
-
|
-
|
-
|
-
|
-
|
11.6
|
Senior unsecured (public
benchmark)
|
-
|
-
|
1.0
|
-
|
1.0
|
-
|
-
|
-
|
-
|
-
|
1.0
|
Senior unsecured (privately
placed)3
|
1.4
|
1.6
|
2.9
|
8.5
|
14.4
|
12.1
|
8.4
|
5.2
|
7.0
|
21.1
|
68.2
|
Asset backed securities
|
-
|
-
|
0.1
|
1.0
|
1.1
|
1.2
|
0.5
|
-
|
0.1
|
3.1
|
6.0
|
Subordinated liabilities
|
-
|
0.1
|
-
|
0.2
|
0.3
|
0.2
|
0.3
|
0.1
|
-
|
0.4
|
1.3
|
Barclays Bank UK PLC (including
subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and
commercial paper
|
1.9
|
-
|
-
|
-
|
1.9
|
-
|
-
|
-
|
-
|
-
|
1.9
|
Senior unsecured (public
benchmark)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.2
|
0.2
|
Covered bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.5
|
0.2
|
0.7
|
1.4
|
Total as at 31 December 2023
|
7.5
|
19.6
|
13.9
|
17.6
|
58.6
|
20.3
|
20.4
|
11.7
|
13.5
|
52.3
|
176.8
|
Of which secured
|
2.4
|
8.2
|
1.1
|
1.0
|
12.7
|
1.2
|
0.5
|
0.5
|
0.3
|
3.8
|
19.0
|
Of which unsecured
|
5.1
|
11.4
|
12.8
|
16.6
|
45.9
|
19.1
|
19.9
|
11.2
|
13.2
|
48.5
|
157.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2022
|
11.1
|
26.5
|
16.4
|
18.5
|
72.5
|
22.4
|
16.9
|
14.5
|
9.7
|
48.0
|
184.0
|
Of which secured
|
4.9
|
6.7
|
1.3
|
0.2
|
13.1
|
1.8
|
0.7
|
0.5
|
1.0
|
2.1
|
19.2
|
Of which unsecured
|
6.2
|
19.8
|
15.1
|
18.3
|
59.4
|
20.6
|
16.2
|
14.0
|
8.7
|
45.9
|
164.8
|
1
|
The composition of wholesale funds comprises the balance
sheet reported financial liabilities at fair value, debt securities
in issue and subordinated liabilities. It does not include
participation in the central bank facilities reported within
repurchase agreements and other similar secured
borrowing.
|
2
|
Term funding comprises public benchmark and privately placed
senior unsecured notes, covered bonds, asset-backed securities and
subordinated debt where the original maturity of the instrument is
more than 1 year.
|
3
|
Includes structured notes of £54.7bn, of which £11.5bn
matures within one year.
|
Regulatory minimum requirements
Capital
The Group's Overall Capital
Requirement for CET1 increased to 12.0%, following the latest PRA
Individual Capital Requirement (ICR) notice and comprises a 4.5%
Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5%
Global Systemically Important Institution (G-SII) buffer, a 2.6%
Pillar 2A requirement and a 0.9% Countercyclical Capital Buffer
(CCyB).
The Group's CCyB is based on the
buffer rate applicable for each jurisdiction in which the Group has
exposures. Following the Financial Policy Committee (FPC)
announcement on 5 July 2022, the UK CCyB increased from 1% to 2%
with effect from 5 July 2023. The buffer rates set by other
national authorities for non-UK exposures are not currently
material.
The Group's updated Pillar 2A
requirement increased by 25bps to 4.6% of which at least 56.25%
needs to be met with CET1 capital, equating to 2.6% of RWAs. The
Pillar 2A requirement, based on a point in time assessment, has
been set as a proportion of RWAs and is subject to at least annual
review.
The Group's CET1 target ratio of
13-14% takes into account headroom above requirements which
includes a confidential institution-specific PRA buffer. The Group
remains above its minimum capital regulatory requirements including
the PRA buffer.
Leverage
The Group is subject to a UK
leverage ratio requirement of 4.1%. This
comprises the 3.25% minimum requirement, a
G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer
(CCLB) of 0.3%. The Group is also required
to disclose an average UK leverage ratio which is based on capital
on the last day of each month in the quarter and an exposure
measure for each day in the quarter.
MREL
The Group is required to meet the
higher of: (i) two times the sum of 8% Pillar 1 and 4.6% Pillar 2A
equating to 25.2% of RWAs; and (ii) 6.75% of leverage exposures. In
addition, the higher of regulatory capital and leverage buffers
apply. CET1 capital cannot be counted towards both MREL and the
buffers, meaning that the buffers, including the above mentioned
confidential institution-specific PRA buffer, will effectively be
applied above MREL requirements.
In the disclosures that follow,
references to CRR, as amended by CRR II, mean the capital
regulatory requirements, as they form part of domestic law by
virtue of the European Union (Withdrawal) Act 2018, as
amended.
Capital ratios1,2
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
CET1
|
13.8%
|
14.0%
|
13.9%
|
T1
|
17.7%
|
17.5%
|
17.9%
|
Total regulatory
capital
|
20.1%
|
20.0%
|
20.8%
|
MREL ratio as a percentage of
total RWAs
|
33.6%
|
33.4%
|
33.5%
|
|
|
|
|
Own funds and eligible liabilities
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the
balance sheet
|
71,204
|
68,315
|
68,292
|
Less: other equity instruments
(recognised as AT1 capital)
|
(13,259)
|
(11,857)
|
(13,284)
|
Adjustment to retained earnings
for foreseeable ordinary share dividends
|
(795)
|
(497)
|
(787)
|
Adjustment to retained earnings
for foreseeable repurchase of shares
|
-
|
(223)
|
-
|
Adjustment to retained earnings
for foreseeable other equity coupons
|
(43)
|
(45)
|
(37)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments
(PVA)
|
(1,901)
|
(1,630)
|
(1,726)
|
Goodwill and intangible
assets
|
(7,790)
|
(8,243)
|
(8,224)
|
Deferred tax assets that rely on
future profitability excluding temporary differences
|
(1,630)
|
(1,480)
|
(1,500)
|
Fair value reserves related to
gains or losses on cash flow hedges
|
3,707
|
6,421
|
7,237
|
Excess of expected losses over
impairment
|
(296)
|
(292)
|
(119)
|
Gains or losses on liabilities at
fair value resulting from own credit
|
136
|
(142)
|
(620)
|
Defined benefit pension fund
assets
|
(2,654)
|
(2,960)
|
(3,430)
|
Direct and indirect holdings by an
institution of own CET1 instruments
|
(20)
|
(20)
|
(20)
|
Adjustment under IFRS 9
transitional arrangements
|
288
|
290
|
700
|
Other regulatory
adjustments
|
357
|
321
|
396
|
CET1 capital
|
47,304
|
47,958
|
46,878
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related
share premium accounts
|
13,263
|
11,857
|
13,284
|
Other regulatory adjustments and
deductions
|
(60)
|
(60)
|
(60)
|
AT1 capital
|
13,203
|
11,797
|
13,224
|
|
|
|
|
T1 capital
|
60,507
|
59,755
|
60,102
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related
share premium accounts
|
7,966
|
8,126
|
9,000
|
Qualifying T2 capital (including
minority interests) issued by subsidiaries
|
569
|
757
|
1,095
|
Credit risk adjustments (excess of
impairment over expected losses)
|
-
|
58
|
35
|
Other regulatory adjustments and
deductions
|
(160)
|
(160)
|
(160)
|
Total regulatory capital
|
68,882
|
68,536
|
70,072
|
|
|
|
|
Less : Ineligible T2 capital
(including minority interests) issued by subsidiaries
|
(569)
|
(757)
|
(1,095)
|
Eligible liabilities
|
46,995
|
46,477
|
43,851
|
|
|
|
|
Total own funds and eligible
liabilities3
|
115,308
|
114,256
|
112,828
|
|
|
|
|
Total RWAs
|
342,717
|
341,868
|
336,518
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR II non-compliant capital instruments.
|
2
|
The fully loaded CET1 ratio, as is relevant for assessing
against the conversion trigger in Barclays PLC AT1 securities, was
13.7%, with £47.0bn of CET1 capital and £342.7bn of RWAs calculated
without applying the transitional arrangements of the CRR as
amended by CRR II.
|
3
|
As at 31 December 2023, the Group's MREL requirement,
excluding the PRA buffer, was to hold £103.0bn of own funds and
eligible liabilities equating to 30.1% of RWAs. The Group remains
above its MREL regulatory requirement including the PRA
buffer.
|
Movement in CET1 capital
|
Three months ended 31.12.23
|
Twelve months ended 31.12.23
|
|
£m
|
£m
|
Opening CET1 capital
|
47,958
|
46,878
|
|
|
|
Profit for the period attributable
to equity holders
|
108
|
5,259
|
Own credit relating to derivative
liabilities
|
41
|
49
|
Ordinary share dividends paid and
foreseen
|
(298)
|
(1,218)
|
Purchased and foreseeable share
repurchase
|
-
|
(1,250)
|
Other equity coupons paid and
foreseen
|
(217)
|
(991)
|
(Decrease)/increase in retained regulatory capital generated
from earnings
|
(366)
|
1,849
|
|
|
|
Net impact of share
schemes
|
140
|
104
|
Fair value through other
comprehensive income reserve
|
276
|
194
|
Currency translation
reserve
|
(738)
|
(1,101)
|
Other reserves
|
(6)
|
(42)
|
Decrease in other qualifying reserves
|
(328)
|
(845)
|
|
|
|
Pension remeasurements within
reserves
|
(328)
|
(855)
|
Defined benefit pension fund asset
deduction
|
306
|
776
|
Net impact of pensions
|
(22)
|
(79)
|
|
|
|
Additional value adjustments
(PVA)
|
(271)
|
(175)
|
Goodwill and intangible
assets
|
453
|
434
|
Deferred tax assets that rely on
future profitability excluding those arising from temporary
differences
|
(150)
|
(130)
|
Excess of expected loss over
impairment
|
(4)
|
(177)
|
Adjustment under IFRS 9
transitional arrangements
|
(2)
|
(412)
|
Other regulatory
adjustments
|
36
|
(39)
|
Increase/(decrease) in regulatory capital due to adjustments
and deductions
|
62
|
(499)
|
|
|
|
Closing CET1 capital
|
47,304
|
47,304
|
CET1 capital increased £0.4bn to
£47.3bn (December 2022: £46.9bn).
£5.3bn of capital generated from
profit, including the impacts of structural cost actions, was
partially offset by distributions of £3.5bn comprising:
•£1.25bn of share buybacks
announced with FY22 and H123 results
•£1.2bn of ordinary share dividend
paid and foreseen reflecting £0.4bn interim dividend paid and a
£0.8bn accrual towards the FY23 dividend
•£1.0bn of equity coupons paid and
foreseen
Other significant movements in the
period were:
•£1.1bn decrease in the currency
translation reserve driven by the strengthening of GBP against
USD
•£0.4bn decrease in IFRS 9
transitional relief primarily due to the relief applied to the
pre-2020 impairment charge reducing to 0% in 2023 from 25% in 2022
and the relief applied to the post-2020 impairment charge reducing
to 50% in 2023 from 75% in 2022
•£0.2bn increase in PVA, which
includes an increase for price uncertainty within corporate loans,
including the leveraged finance loan portfolio
•£0.4bn increase primarily driven
by intangible impairment structural cost actions. The impact of
this was capital neutral with the offsetting decrease within
attributable profit.
RWAs by risk type and business
|
|
Credit risk1
|
|
Counterparty credit risk
|
|
Market Risk
|
|
Operational risk
|
Total RWAs
|
|
STD
|
IRB
|
|
STD
|
IRB
|
Settlement Risk
|
CVA
|
|
STD
|
IMA
|
|
|
|
As at 31.12.23
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays UK
|
10,472
|
50,761
|
|
178
|
-
|
-
|
94
|
|
274
|
-
|
|
11,715
|
73,494
|
Corporate and Investment
Bank
|
40,315
|
65,499
|
|
18,775
|
22,033
|
159
|
3,260
|
|
14,625
|
25,222
|
|
26,887
|
216,775
|
Consumer, Cards and
Payments
|
28,218
|
5,515
|
|
182
|
55
|
-
|
38
|
|
2
|
638
|
|
7,631
|
42,279
|
Barclays International
|
68,533
|
71,014
|
|
18,957
|
22,088
|
159
|
3,298
|
|
14,627
|
25,860
|
|
34,518
|
259,054
|
Head Office
|
3,881
|
6,963
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(675)
|
10,169
|
Barclays Group
|
82,886
|
128,738
|
|
19,135
|
22,088
|
159
|
3,392
|
|
14,901
|
25,860
|
|
45,558
|
342,717
|
As at 30.09.231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
11,731
|
49,928
|
|
160
|
-
|
-
|
90
|
|
215
|
-
|
|
11,054
|
73,178
|
Corporate and Investment
Bank
|
38,869
|
69,467
|
|
17,983
|
21,784
|
123
|
3,108
|
|
17,542
|
23,253
|
|
27,093
|
219,222
|
Consumer, Cards and
Payments
|
28,613
|
3,987
|
|
191
|
51
|
-
|
42
|
|
2
|
535
|
|
6,527
|
39,948
|
Barclays International
|
67,482
|
73,454
|
|
18,174
|
21,835
|
123
|
3,150
|
|
17,544
|
23,788
|
|
33,620
|
259,170
|
Head Office
|
4,116
|
6,213
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(809)
|
9,520
|
Barclays Group
|
83,329
|
129,595
|
|
18,334
|
21,835
|
123
|
3,240
|
|
17,759
|
23,788
|
|
43,865
|
341,868
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
6,836
|
54,752
|
|
167
|
-
|
-
|
72
|
|
233
|
-
|
|
11,023
|
73,083
|
Corporate and Investment
Bank
|
35,738
|
75,413
|
|
16,814
|
21,449
|
80
|
3,093
|
|
13,716
|
22,497
|
|
27,064
|
215,864
|
Consumer, Cards and
Payments
|
27,882
|
3,773
|
|
214
|
46
|
-
|
61
|
|
-
|
388
|
|
6,559
|
38,923
|
Barclays International
|
63,620
|
79,186
|
|
17,028
|
21,495
|
80
|
3,154
|
|
13,716
|
22,885
|
|
33,623
|
254,787
|
Head Office
|
2,636
|
6,843
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(831)
|
8,648
|
Barclays Group
|
73,092
|
140,781
|
|
17,195
|
21,495
|
80
|
3,226
|
|
13,949
|
22,885
|
|
43,815
|
336,518
|
1
|
From Q323 credit risk RWAs of £9.8bn relating to deferred tax
assets, have been reclassified from IRB to STD with no impact to
total RWAs.
|
Movement analysis of RWAs
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Opening RWAs (as at 31.12.22)
|
213,873
|
41,996
|
36,834
|
43,815
|
336,518
|
Book size
|
(1,338)
|
2,122
|
3,325
|
1,743
|
5,852
|
Acquisitions and
disposals
|
688
|
-
|
-
|
-
|
688
|
Book quality
|
1,512
|
(136)
|
-
|
-
|
1,376
|
Model updates
|
(2,600)
|
-
|
1,200
|
-
|
(1,400)
|
Methodology and policy
|
5,175
|
2,700
|
-
|
-
|
7,875
|
Foreign exchange
movements1
|
(5,686)
|
(1,908)
|
(598)
|
-
|
(8,192)
|
Total RWA movements
|
(2,249)
|
2,778
|
3,927
|
1,743
|
6,199
|
Closing RWAs (as at 31.12.23)
|
211,624
|
44,774
|
40,761
|
45,558
|
342,717
|
1
|
Foreign exchange movements does not include the impact of
foreign exchange for modelled market risk or operational
risk
|
Overall RWAs increased £6.2bn to
£342.7bn (December 2022: £336.5bn).
Credit risk RWAs decreased
£2.2bn:
•A £1.3bn decrease in book size
within CIB and mortgages within Barclays UK, partially offset by
higher credit card balances within CC&P
•A £1.5bn increase in book quality
RWAs primarily driven by changes in risk parameters and HPI refresh
within Barclays UK
•A £2.6bn decrease in model
updates primarily driven by capital LGD model update for the
mortgage portfolio to reflect the significant decrease in
repossession volume during and post the COVID pandemic
•A £5.2bn increase in methodology
and policy primarily driven by the recalibration of the post model
adjustment (PMA) introduced to address the IRB roadmap changes and
a change in treatment of non-credit obligation exposures
•A £5.7bn decrease as a result of
foreign exchange movements primarily due to the strengthening of
GBP against USD
Counterparty Credit risk RWAs
increased £2.8bn:
•A £2.1bn increase in book size
primarily due to increased trading activity within CIB
•A £2.7bn increase in methodology
and policy due to a recalibration of the PMA introduced to address
the IRB roadmap changes and a change in treatment of certain
securities financing transactions collateral
•A £1.9bn decrease as a result of
foreign exchange movements primarily due to the strengthening of
GBP against USD
Market risk RWAs increased
£3.9bn:
•A £3.3bn increase in book size
primarily due to increased trading activity within CIB
•A £1.2bn increase in model
updates to capture incremental risk arising from Stressed Value at
Risk (SVaR), measured on a 10-day basis
Operational risk RWAs increase
£1.7bn:
•A £1.7bn increase in book size
primarily driven by the inclusion of higher 2023 CC&P and
Barclays UK income compared to 2020
Leverage ratios1,2
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
£m
|
£m
|
£m
|
UK leverage
ratio3
|
5.2%
|
5.0%
|
5.3%
|
T1 capital
|
60,507
|
59,755
|
60,102
|
UK leverage exposure
|
1,168,275
|
1,202,417
|
1,129,973
|
Average UK leverage
ratio
|
4.8%
|
4.6%
|
4.8%
|
Average T1 capital
|
60,343
|
58,661
|
60,865
|
Average UK leverage
exposure
|
1,266,880
|
1,262,290
|
1,280,972
|
1
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
2
|
Fully loaded UK leverage ratio was 5.2%, with £60.2bn of T1
capital and £1,168.0bn of leverage
exposure. Fully loaded average UK leverage ratio was 4.7% with £60.0bn of T1
capital and £1,266.6bn of leverage
exposure. Fully loaded UK leverage ratios are calculated without
applying the transitional arrangements of the CRR as amended by CRR
II.
|
3
|
Although the leverage ratio is expressed in terms of T1
capital, the leverage ratio buffers and 75% of the minimum
requirement must be covered solely with CET1 capital. The CET1
capital held against the 0.53% G-SII ALRB
was £6.1bn and against the 0.3% CCLB was £3.5bn.
|
The UK leverage ratio decreased to
5.2% (December 2022: 5.3%) primarily due to a £38.3bn increase in
leverage exposure to £1,168.3bn, largely driven by an increase in
trading portfolio assets within Global Markets.
Condensed Consolidated Financial Statements
Condensed consolidated income statement
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Interest and similar
income
|
35,075
|
19,096
|
Interest and similar
expense
|
(22,366)
|
(8,524)
|
Net interest income
|
12,709
|
10,572
|
Fee and commission
income
|
10,121
|
9,637
|
Fee and commission
expense
|
(3,592)
|
(3,038)
|
Net fee and commission income
|
6,529
|
6,599
|
Net trading income
|
5,945
|
8,049
|
Net investment income
|
61
|
(434)
|
Other income
|
134
|
170
|
Total income
|
25,378
|
24,956
|
|
|
|
Staff costs
|
(10,017)
|
(9,252)
|
Infrastructure, administration and
general expenses
|
(6,877)
|
(5,881)
|
Litigation and conduct
|
(37)
|
(1,597)
|
Operating expenses
|
(16,931)
|
(16,730)
|
|
|
|
Share of post-tax results of
associates and joint ventures
|
(9)
|
6
|
Profit before impairment
|
8,438
|
8,232
|
Credit impairment charges
|
(1,881)
|
(1,220)
|
Profit before tax
|
6,557
|
7,012
|
Tax charge
|
(1,234)
|
(1,039)
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Attributable to:
|
|
|
Equity holders of the
parent
|
4,274
|
5,023
|
Other equity instrument
holders
|
985
|
905
|
Total equity holders of the parent
|
5,259
|
5,928
|
Non-controlling
interests
|
64
|
45
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Earnings per share
|
|
|
Basic earnings per ordinary
share
|
27.7p
|
30.8p
|
Diluted earnings per ordinary
share
|
26.9p
|
29.8p
|
Condensed consolidated statement of comprehensive
income
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Other comprehensive income/(loss) that may be recycled to
profit or loss:1
|
|
|
Currency translation
reserve
|
(1,101)
|
2,032
|
Fair value through other
comprehensive income reserve
|
197
|
(1,421)
|
Cash flow hedging
reserve
|
3,528
|
(6,382)
|
Other comprehensive income/(loss) that may be recycled to
profit
|
2,624
|
(5,771)
|
|
|
|
Other comprehensive (loss)/income not recycled to profit or
loss:1
|
|
|
Retirement benefit
remeasurements
|
(855)
|
(281)
|
Fair value through other
comprehensive income reserve
|
(3)
|
228
|
Own credit
|
(710)
|
1,463
|
Other comprehensive (loss)/income not recycled to
profit
|
(1,568)
|
1,410
|
|
|
|
Other comprehensive income/(loss) for the
period
|
1,056
|
(4,361)
|
|
|
|
Total comprehensive income for the period
|
6,379
|
1,612
|
|
|
|
Attributable to:
|
|
|
Equity holders of the
parent
|
6,315
|
1,567
|
Non-controlling
interests
|
64
|
45
|
Total comprehensive income for the period
|
6,379
|
1,612
|
Condensed consolidated balance sheet
|
|
As at 31.12.23
|
As at 31.12.22
|
Assets
|
£m
|
£m
|
Cash and balances at central
banks
|
224,634
|
256,351
|
Cash collateral and settlement
balances
|
108,889
|
112,597
|
Debt securities at amortised
cost
|
56,749
|
45,487
|
Loans and advances at amortised
cost to banks
|
9,459
|
10,015
|
Loans and advances at amortised
cost to customers
|
333,288
|
343,277
|
Reverse repurchase agreements and
other similar secured lending at amortised cost
|
2,594
|
776
|
Trading portfolio assets
|
174,605
|
133,813
|
Financial assets at fair value
through the income statement
|
206,651
|
213,568
|
Derivative financial
instruments
|
256,836
|
302,380
|
Financial assets at fair value
through other comprehensive income
|
71,836
|
65,062
|
Investments in associates and joint
ventures
|
879
|
922
|
Goodwill and intangible
assets
|
7,794
|
8,239
|
Property, plant and
equipment
|
3,417
|
3,616
|
Current tax assets
|
121
|
385
|
Deferred tax assets
|
5,960
|
6,991
|
Retirement benefit
assets
|
3,667
|
4,743
|
Assets included in a disposal group
classified as held for sale
|
3,916
|
-
|
Other assets
|
6,192
|
5,477
|
Total assets
|
1,477,487
|
1,513,699
|
|
|
|
Liabilities
|
|
|
Deposits at amortised cost from
banks
|
14,472
|
19,979
|
Deposits at amortised cost from
customers
|
524,317
|
525,803
|
Cash collateral and settlement
balances
|
94,084
|
96,927
|
Repurchase agreements and other
similar secured borrowings at amortised cost
|
41,601
|
27,052
|
Debt securities in issue
|
96,825
|
112,881
|
Subordinated liabilities
|
10,494
|
11,423
|
Trading portfolio
liabilities
|
58,669
|
72,924
|
Financial liabilities designated at
fair value
|
297,539
|
271,637
|
Derivative financial
instruments
|
250,044
|
289,620
|
Current tax liabilities
|
529
|
580
|
Deferred tax liabilities
|
22
|
16
|
Retirement benefit
liabilities
|
266
|
264
|
Provisions
|
1,584
|
1,544
|
Liabilities included in a disposal
group classified as held for sale
|
3,164
|
-
|
Other liabilities
|
12,013
|
13,789
|
Total liabilities
|
1,405,623
|
1,444,439
|
|
|
|
Equity
|
|
|
Called up share capital and share
premium
|
4,288
|
4,373
|
Other reserves
|
(77)
|
(2,192)
|
Retained earnings
|
53,734
|
52,827
|
Shareholders' equity attributable to ordinary shareholders of
the parent
|
57,945
|
55,008
|
Other equity instruments
|
13,259
|
13,284
|
Total equity excluding non-controlling
interests
|
71,204
|
68,292
|
Non-controlling
interests
|
660
|
968
|
Total equity
|
71,864
|
69,260
|
|
|
|
Total liabilities and equity
|
1,477,487
|
1,513,699
|
Condensed consolidated statement of changes in
equity
|
|
Called up share capital and share
premium1,2
|
Other equity instruments3
|
Other reserves4
|
Retained earnings
|
Total
|
Non-controlling interests
|
Total equity
|
Year ended 31.12.23
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2023
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
Profit after tax
|
-
|
985
|
-
|
4,274
|
5,259
|
64
|
5,323
|
Currency translation
movements
|
-
|
-
|
(1,101)
|
-
|
(1,101)
|
-
|
(1,101)
|
Fair value through other
comprehensive income reserve
|
-
|
-
|
194
|
-
|
194
|
-
|
194
|
Cash flow hedges
|
-
|
-
|
3,528
|
-
|
3,528
|
-
|
3,528
|
Retirement benefit
remeasurements
|
-
|
-
|
-
|
(855)
|
(855)
|
-
|
(855)
|
Own credit
|
-
|
-
|
(710)
|
-
|
(710)
|
-
|
(710)
|
Total comprehensive income for the period
|
-
|
985
|
1,911
|
3,419
|
6,315
|
64
|
6,379
|
Employee share schemes and hedging
thereof
|
124
|
-
|
-
|
497
|
621
|
-
|
621
|
Issue and redemption of other
equity instruments
|
-
|
(30)
|
-
|
(38)
|
(68)
|
(312)
|
(380)
|
Other equity instruments coupons
paid
|
-
|
(985)
|
-
|
-
|
(985)
|
-
|
(985)
|
Vesting of employee share
schemes
|
-
|
-
|
(8)
|
(506)
|
(514)
|
-
|
(514)
|
Dividends paid
|
-
|
-
|
-
|
(1,210)
|
(1,210)
|
(64)
|
(1,274)
|
Repurchase of shares
|
(209)
|
-
|
209
|
(1,257)
|
(1,257)
|
-
|
(1,257)
|
Other movements
|
-
|
5
|
3
|
2
|
10
|
4
|
14
|
Balance as at 31 December 2023
|
4,288
|
13,259
|
(77)
|
53,734
|
71,204
|
660
|
71,864
|
Year ended 31.12.22
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2022
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
Profit after tax
|
-
|
905
|
-
|
5,023
|
5,928
|
45
|
5,973
|
Currency translation
movements
|
-
|
-
|
2,032
|
-
|
2,032
|
-
|
2,032
|
Fair value through other
comprehensive income reserve
|
-
|
-
|
(1,193)
|
-
|
(1,193)
|
-
|
(1,193)
|
Cash flow hedges
|
-
|
-
|
(6,382)
|
-
|
(6,382)
|
-
|
(6,382)
|
Retirement benefit
remeasurements
|
-
|
-
|
-
|
(281)
|
(281)
|
-
|
(281)
|
Own credit
|
-
|
-
|
1,463
|
-
|
1,463
|
-
|
1,463
|
Total comprehensive income for the period
|
-
|
905
|
(4,080)
|
4,742
|
1,567
|
45
|
1,612
|
Employee share schemes and hedging
thereof
|
70
|
-
|
-
|
476
|
546
|
-
|
546
|
Issue and redemption of other
equity instruments
|
-
|
1,032
|
-
|
28
|
1,060
|
(20)
|
1,040
|
Other equity instruments coupons
paid
|
-
|
(905)
|
-
|
-
|
(905)
|
-
|
(905)
|
Disposal of Absa holding
|
-
|
-
|
(84)
|
84
|
-
|
-
|
-
|
Vesting of employee share
schemes
|
-
|
-
|
5
|
(485)
|
(480)
|
-
|
(480)
|
Dividends paid
|
-
|
-
|
-
|
(1,028)
|
(1,028)
|
(45)
|
(1,073)
|
Repurchase of shares
|
(233)
|
-
|
233
|
(1,508)
|
(1,508)
|
-
|
(1,508)
|
Own credit realisation
|
-
|
-
|
(36)
|
36
|
-
|
-
|
-
|
Other movements
|
-
|
(7)
|
-
|
(5)
|
(12)
|
(1)
|
(13)
|
Balance as at 31 December 2022
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
1
|
As at 31 December 2023, Called up share capital comprises
15,155m (December 2022: 15,871m) ordinary shares of 25p each.
|
2
|
For the period ended 31 December 2023, Barclays PLC executed
two share buy-backs totalling £1250m.
Accordingly, it repurchased and cancelled 837m shares. The nominal value of £209m has been transferred from Share capital to
Capital redemption reserve within Other reserves. For the year
ended 31 December 2022, two share buybacks were executed, totalling
£1,500m. Accordingly, Barclays PLC
repurchased and cancelled 931m shares. The
nominal value of £233m was transferred
from Share capital to Capital redemption reserve within Other
reserves.
|
3
|
Other equity instruments of £13,259m
(December 2022: £13,284m) comprise AT1
securities issued by Barclays PLC. There were three issuances in the form of Fixed Rate Resetting
Perpetual Subordinated Contingent Convertible Securities for
£3,140m (net of £10m issuance costs) and two
redemption of £3,170m (net of £11m
issuance costs, transferred to retained earnings on redemption) for
the period ended 31 December 2023. During the period ended 31
December 2022, there were three issuances
in the form of Fixed Rate Resetting Perpetual Subordinated
Contingent Convertible Securities, for £3,158m, which includes issuance costs of £9m and two redemptions
totalling £2,126m.
|
4
|
See Note 10 Other reserves.
|
Condensed consolidated cash flow statement
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit before tax
|
6,557
|
7,012
|
Adjustment for non-cash
items
|
15,250
|
(8,514)
|
Net decrease/(increase) in loans
and advances at amortised cost
|
10,947
|
(24,949)
|
Net (decrease)/increase in
deposits at amortised cost
|
(6,958)
|
26,349
|
Net (decrease)/increase in debt
securities in issue
|
(19,640)
|
9,210
|
Changes in other operating assets
and liabilities
|
(6,247)
|
21,811
|
Corporate income tax
paid
|
(836)
|
(688)
|
Net cash from operating activities
|
(927)
|
30,231
|
Net cash from investing activities
|
(23,414)
|
(21,673)
|
Net cash from financing
activities1
|
(1,389)
|
696
|
Effect of exchange rates on cash
and cash equivalents
|
(5,053)
|
10,330
|
Net (decrease)/increase in cash and cash
equivalents
|
(30,783)
|
19,584
|
Cash and cash equivalents at
beginning of the period
|
278,790
|
259,206
|
Cash and cash equivalents at end of the
period
|
248,007
|
278,790
|
1
|
Issuance and redemption of debt securities included in
financing activities relate to instruments that qualify as eligible
liabilities and satisfy regulatory requirements for MREL
instruments which came into effect during 2019.
|
Financial Statement Notes
1.Tax
The tax charge for 2023 was
£1,234m (2022: £1,039m), representing an effective tax rate (ETR)
of 18.8% (2022: 14.8%). Included in the 2023 tax charge is a credit
in respect of payments made on AT1 instruments that are classified
as equity for accounting purposes and tax relief on holdings of
inflation-linked government bonds.
|
As at 31.12.23
|
As at 31.12.22
|
Deferred tax assets and liabilities
|
£m
|
£m
|
UK
|
4,081
|
4,925
|
USA
|
1,359
|
1,576
|
Other territories
|
520
|
490
|
Deferred tax assets
|
5,960
|
6,991
|
Deferred tax
liabilities
|
(22)
|
(16)
|
|
|
|
Analysis of deferred tax assets
|
|
|
Temporary differences
|
4,212
|
5,345
|
Tax losses
|
1,748
|
1,646
|
Deferred tax assets
|
5,960
|
6,991
|
2.Earnings per share
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit attributable to ordinary
equity holders of the parent
|
4,274
|
5,023
|
|
|
|
|
m
|
m
|
Basic weighted average number of
shares in issue
|
15,445
|
16,333
|
Number of potential ordinary
shares
|
450
|
534
|
Diluted weighted average number of shares
|
15,895
|
16,867
|
|
|
|
|
p
|
p
|
Basic earnings per ordinary
share
|
27.7
|
30.8
|
Diluted earnings per ordinary
share
|
26.9
|
29.8
|
3.Dividends on ordinary shares
It is Barclays' policy to declare
and pay dividends on a semi-annual basis. The 2023 full year
dividend of 5.3p per ordinary share will be paid on 3 April 2024 to
the shareholders on the Share Register on 1 March 2024. A half year
dividend for 2023 of 2.7p (H122: 2.25p) per ordinary share was paid
on 15 September 2023.
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
Per share
|
Total
|
Per share
|
Total
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
Full year dividend paid during
period
|
5.00
|
793
|
4.00
|
664
|
Interim dividend paid during the
period
|
2.70
|
417
|
2.25
|
364
|
Total dividend
|
7.70
|
1,210
|
6.25
|
1,028
|
The Directors have confirmed their
intention to initiate a share buyback of up to £1.0bn after the
balance sheet date. The proposed share buyback is expected to
commence in the first quarter of 2024. The financial statements for
the year ended 31 December 2023 do not reflect the impact of the
proposed share buyback, which will be accounted for as and when
shares are repurchased by the Company. Dividends and share buybacks
are funded out of distributable reserves.
4.Fair value of financial instruments
This section should be read in
conjunction with Note 17, Fair value of financial instruments of
the Barclays PLC Annual Report 2023 which provides more detail
about accounting policies adopted, valuation methodologies used in
calculating fair value and the valuation control framework which
governs oversight of valuations. There have been no changes in the
accounting policies adopted or the valuation methodologies
used.
Valuation
The following table shows the
Group's assets and liabilities that are held at fair value
disaggregated by valuation technique (fair value hierarchy) and
balance sheet classification:
|
Valuation technique using
|
|
|
Quoted market prices
|
Observable inputs
|
Significant unobservable inputs
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio
assets
|
94,658
|
73,438
|
6,509
|
174,605
|
Financial assets at fair value
through the income statement
|
5,831
|
192,571
|
8,249
|
206,651
|
Derivative financial
instruments
|
107
|
253,189
|
3,540
|
256,836
|
Financial assets at fair value
through other comprehensive income
|
30,247
|
40,511
|
1,078
|
71,836
|
Investment property
|
-
|
-
|
2
|
2
|
Total assets
|
130,843
|
559,709
|
19,378
|
709,930
|
|
|
|
|
|
Trading portfolio
liabilities
|
(29,274)
|
(29,027)
|
(368)
|
(58,669)
|
Financial liabilities designated
at fair value
|
(117)
|
(296,200)
|
(1,222)
|
(297,539)
|
Derivative financial
instruments
|
(81)
|
(245,310)
|
(4,653)
|
(250,044)
|
Total liabilities
|
(29,472)
|
(570,537)
|
(6,243)
|
(606,252)
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
Trading portfolio
assets
|
62,478
|
64,855
|
6,480
|
133,813
|
Financial assets at fair value
through the income statement
|
5,720
|
198,723
|
9,125
|
213,568
|
Derivative financial
instruments
|
10,054
|
287,152
|
5,174
|
302,380
|
Financial assets at fair value
through other comprehensive income
|
20,704
|
44,347
|
11
|
65,062
|
Investment property
|
-
|
-
|
5
|
5
|
Total assets
|
98,956
|
595,077
|
20,795
|
714,828
|
|
|
|
|
|
Trading portfolio
liabilities
|
(44,128)
|
(28,740)
|
(56)
|
(72,924)
|
Financial liabilities designated
at fair value
|
(133)
|
(270,454)
|
(1,050)
|
(271,637)
|
Derivative financial
instruments
|
(10,823)
|
(272,434)
|
(6,363)
|
(289,620)
|
Total liabilities
|
(55,084)
|
(571,628)
|
(7,469)
|
(634,181)
|
5.Subordinated liabilities
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Opening balance as at 1
January
|
11,423
|
12,759
|
Issuances
|
1,523
|
1,477
|
Redemptions
|
(2,239)
|
(2,679)
|
Other
|
(213)
|
(134)
|
Closing balance
|
10,494
|
11,423
|
Issuances of £1,523m comprise
£1,180m USD 7.119% Fixed-to-Floating Rate Subordinated Callable
Notes issued externally by Barclays PLC, £315m USD Floating Rate
Notes and £28m JPY Floating Rate Notes issued externally by
Barclays subsidiaries.
Redemptions of £2,239m comprise
£1,345m EUR 2% Fixed Rate Subordinated Notes, £599m partial
repurchase of USD 4.375% Fixed Rate Subordinated Notes issued
externally by Barclays PLC, £194m USD Floating Rate Notes and £28m
JPY Floating Rate notes issued externally by Barclays subsidiaries,
£43m EUR Subordinated Floating Rate Notes and £30m USD Junior
Undated Floating Rate Notes issued externally by Barclays Bank
PLC.
Other movements predominantly
comprise foreign exchange movements and fair value hedge
adjustments.
6.Provisions
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Customer redress
|
295
|
378
|
Legal, competition and regulatory
matters
|
99
|
159
|
Redundancy and
restructuring
|
397
|
136
|
Undrawn contractually committed
facilities and guarantees
|
504
|
583
|
Sundry provisions
|
289
|
288
|
Total
|
1,584
|
1,544
|
7.Retirement benefits
As at 31 December 2023, the
Group's IAS 19 net pension surplus across all schemes was £3.4bn
(December 2022: £4.5bn). The UK Retirement Fund (UKRF), which is
the Group's main scheme, had an IAS 19 net pension surplus of
£3.6bn (December 2022: £4.7bn). The decrease in the UKRF
surplus during the year was driven by lower corporate bond yields
and the assets underperforming the discount rate.
The UKRF annual funding update as
at 30 September 2023 showed a surplus of £2.03bn compared to
£1.97bn at the 30 September 2022 triennial actuarial valuation. The
improvement was mainly due to asset returns outperforming the
change in liabilities.
8.Other reserves
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Currency translation
reserve
|
3,671
|
4,772
|
Fair value through other
comprehensive income reserve
|
(1,366)
|
(1,560)
|
Cash flow hedging
reserve
|
(3,707)
|
(7,235)
|
Own credit reserve
|
(240)
|
467
|
Other reserves and treasury
shares
|
1,565
|
1,364
|
Total
|
(77)
|
(2,192)
|
Currency translation reserve
The currency translation reserve
represents the cumulative gains and losses on the retranslation of
the Group's net investment in foreign operations, net of the
effects of hedging.
As at 31 December 2023, there was
a cumulative gain of £3,671m (December 2022: £4,772m gain) in the
currency translation reserve, a loss during the period of £1,110m
(2022: gain of £2,032m) partially offset by a tax credit of £9m
(2022: nil). This principally reflects the strengthening of GBP
against USD and EUR during 2023, in contrast to the weakening of
GBP against USD and EUR during 2022.
Fair value through other comprehensive income
reserve
The fair value through other
comprehensive income reserve represents the total of unrealised
gains and losses on fair value through other comprehensive income
investments since initial recognition.
As at 31 December 2023, there was
a cumulative loss of £1,366m (December 2022: £1,560m loss) in the
reserve, a gain during the period of £194m (2022: loss of £1,277m).
This is principally driven by a gain of £299m (2022: loss of
£1,836m) from the increase in fair value of bonds (net of hedges)
due to decreasing bond yields (as against increase in the yields in
2022) across currencies. It is partially offset by a net gain of
£26m transferred to the income statement (2022: loss of £111m
transferred to the income statement and gain of £84m transferred to
retained earnings on the sale of a 14.90% equity stake in Absa
Group Limited), a tax charge of £78m (2022: tax credit of £523m)
and impairment of £1m.
Cash flow hedging reserve
The cash flow hedging reserve
represents the cumulative gains and losses on effective cash flow
hedging instruments that will be recycled to the income statement
when the hedged transactions affect profit or loss.
As at 31 December 2023, there was
a cumulative loss of £3,707m (December 2022: £7,235m loss) in the
cash flow hedging reserve, a gain during the period of £3,528m,
which partially reversed the loss during 2022 of £6,382m. This
principally reflects a £4,447m gain driven by the fair value
movement of interest rate swaps held for hedging purposes as major
interest rate forward curves decreased (in contrast to the increase
in interest rate forward curves in 2022), as well as fair value
gains on currency swaps. This was offset by £423m of losses (2022:
£339m) transferred to the income statement, driven by accumulated
losses on interest rate swaps offset by gains on cross currency
swaps, and a tax charge of £1,342m (2022: credit of
£2,331m).
Own credit reserve
The own credit reserve reflects
the cumulative own credit gains and losses on financial liabilities
at fair value. Amounts in the own credit reserve are not recycled
to profit or loss in future periods.
As at 31 December 2023, there was
a cumulative loss of £240m (December 2022: £467m gain) in the own
credit reserve, a loss of £707m during the period 2022: gain of
£1,427m). This principally reflects a £983m loss (2022: gain of
£2,091m) from the tightening of credit spreads (in contrast to the
widening of spreads in 2022) partially offset by tax credit of
£273m (2022: tax charge of £616m) and own credit realisation of
£3m.
Other reserves and treasury shares
Other reserves relate to redeemed
ordinary and preference shares issued by the Group. Treasury shares
relate to Barclays PLC shares held principally in relation to the
Group's various share schemes.
As at 31 December 2023, there was
a balance of £1,565m (December 2022: £1,364m gain). This
principally reflects an increase of £209m (December 2022: increase
of £233m) due to the repurchase of 837m shares (December 2022:
931m) as part of the share buybacks conducted in 2023 offset by a
£8m movement (December 2022: £5m movement) in the treasury shares
balance held in relation to employee share schemes.
Appendix: Non-IFRS Performance Measures
The Group's management believes
that the non-IFRS performance measures included in this document
provide valuable information to the readers of the financial
statements, as they enable the reader to identify a more consistent
basis for comparing the businesses' performance between financial
periods, and provide more detail concerning the elements of
performance which the managers of these businesses are most
directly able to influence or are relevant for an assessment of the
Group. They also reflect an important aspect of the way in which
operating targets are defined and performance is monitored by
management.
However, any non-IFRS performance
measures in this document are not a substitute for IFRS measures
and readers should consider the IFRS measures as well.
Non-IFRS performance measures glossary
Measure
|
Definition
|
Loan: deposit ratio
|
Total loans and advances at
amortised cost divided by total deposits at amortised cost. The
components of the calculation have been included on page
53.
|
Attributable profit
|
Profit after tax attributable to
ordinary shareholders of the parent.
|
Period end tangible equity refers to:
|
Period end tangible shareholders'
equity (for Barclays Group)
|
Shareholders' equity attributable
to ordinary shareholders of the parent, adjusted for the deduction
of intangible assets and goodwill.
|
Period end allocated tangible
equity (for businesses)
|
Allocated tangible equity is
calculated as 13.5% (2022: 13.5%) of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets, reflecting
the assumptions the Barclays Group uses for capital planning
purposes. Head Office allocated tangible equity represents the
difference between the Barclays Group's tangible shareholders'
equity and the amounts allocated to businesses.
|
Average tangible equity refers to:
|
Average tangible shareholders'
equity (for Barclays Group)
|
Calculated as the average of the
previous month's period end tangible shareholders' equity and the
current month's period end tangible shareholders' equity. The
average tangible shareholders' equity for the period is the average
of the monthly averages within that period.
|
Average allocated tangible equity
(for businesses)
|
Calculated as the average of the
previous month's period end allocated tangible equity and the
current month's period end allocated tangible equity. The average
allocated tangible equity for the period is the average of the
monthly averages within that period.
|
Return on tangible equity (RoTE) refers to:
|
Return on average tangible
shareholders' equity (for Barclays Group)
|
Group attributable profit, as a
proportion of average tangible shareholders' equity. The components
of the calculation have been included on pages 70 to 71.
|
Return on average allocated
tangible equity (for businesses)
|
Business attributable profit, as a
proportion of that business's average allocated tangible equity.
The components of the calculation have been included on pages
70 to 72.
|
Operating expenses excluding
litigation and conduct
|
A measure of total operating
expenses excluding litigation and conduct charges.
|
Operating costs
|
A measure of total operating
expenses excluding litigation and conduct charges and UK bank
levy.
|
Cost: income ratio
|
Total operating expenses divided
by total income.
|
Loan loss rate
|
Quoted in basis points and
represents total impairment charges divided by total gross loans
and advances held at amortised cost at the balance sheet
date.
|
Net interest margin
|
Net interest income divided by the
sum of average customer assets. The components of the calculation
have been included on page 26.
|
Tangible net asset value per
share
|
Calculated by dividing
shareholders' equity, excluding non-controlling interests and other
equity instruments, less goodwill and intangible assets, by the
number of issued ordinary shares. The components of the calculation
have been included on page 77.
|
Profit before impairment
|
Calculated by excluding credit
impairment charges or releases from profit before tax.
|
Structural cost actions
|
Cost actions taken to improve
future financial performance.
|
Performance measures excluding the
impact of Q423 structural cost actions
|
Calculated by excluding the impact
of Q423 structural cost actions from performance measures. The
components of the calculations for Barclays Group and businesses
have been included on pages 6 to 7 and
pages 73 to 74 respectively.
|
Performance measures excluding the
impact of the Over-issuance of Securities
|
Calculated by excluding the impact
of the Over-issuance of Securities from performance measures. The
components of the calculations for Barclays Group and businesses
have been included on pages 6 to 7 and
page 75 respectively.
|
Returns
|
Year ended
31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable
profit/(loss)
|
1,962
|
2,667
|
358
|
3,025
|
(713)
|
4,274
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average equity
|
14.0
|
31.7
|
6.1
|
37.8
|
4.0
|
55.8
|
Average goodwill and
intangibles
|
(3.8)
|
-
|
(0.8)
|
(0.8)
|
(3.8)
|
(8.4)
|
Average tangible equity
|
10.2
|
31.7
|
5.3
|
37.0
|
0.2
|
47.4
|
|
|
|
|
|
|
|
Return on average tangible equity
|
19.2%
|
8.4%
|
6.7%
|
8.2%
|
n/m
|
9.0%
|
|
Year ended
31.12.22
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable
profit/(loss)
|
1,877
|
3,364
|
480
|
3,844
|
(698)
|
5,023
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average equity
|
13.6
|
32.8
|
5.7
|
38.5
|
4.3
|
56.4
|
Average goodwill and
intangibles
|
(3.6)
|
-
|
(0.9)
|
(0.9)
|
(3.6)
|
(8.1)
|
Average tangible equity
|
10.0
|
32.8
|
4.8
|
37.6
|
0.7
|
48.3
|
|
|
|
|
|
|
|
Return on average tangible equity
|
18.7%
|
10.2%
|
10.0%
|
10.2%
|
n/m
|
10.4%
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders'
equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable
(loss)/profit
|
(111)
|
1,274
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders'
equity
|
57.1
|
55.1
|
55.4
|
55.9
|
|
54.9
|
56.8
|
57.1
|
56.9
|
Average goodwill and
intangibles
|
(8.2)
|
(8.6)
|
(8.7)
|
(8.3)
|
|
(8.2)
|
(8.2)
|
(8.1)
|
(8.1)
|
Average tangible shareholders' equity
|
48.9
|
46.5
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders'
equity
|
(0.9)%
|
11.0%
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable profit
|
382
|
531
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated
equity
|
14.1
|
14.0
|
14.2
|
13.9
|
|
13.7
|
13.5
|
13.6
|
13.7
|
Average goodwill and
intangibles
|
(3.9)
|
(3.9)
|
(4.0)
|
(3.6)
|
|
(3.5)
|
(3.6)
|
(3.6)
|
(3.6)
|
Average allocated tangible equity
|
10.2
|
10.1
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.9%
|
21.0%
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
Barclays International
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable
(loss)/profit
|
(124)
|
848
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated
equity
|
37.6
|
37.6
|
38.0
|
38.1
|
|
39.9
|
40.1
|
38.2
|
36.0
|
Average goodwill and
intangibles
|
(0.5)
|
(0.8)
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
37.1
|
36.8
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(1.3)%
|
9.2%
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable
(loss)/profit
|
(61)
|
721
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated
equity
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
Average goodwill and
intangibles
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
Average allocated tangible equity
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(0.8)%
|
9.2%
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable
(loss)/profit
|
(63)
|
127
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated
equity
|
6.0
|
6.1
|
6.2
|
6.3
|
|
6.2
|
6.1
|
5.5
|
5.2
|
Average goodwill and
intangibles
|
(0.5)
|
(0.8)
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
5.5
|
5.3
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(4.5)%
|
9.6%
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding the impact of Q423 structural
cost actions
|
Year ended
31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Total operating
expenses
|
(4,415)
|
(8,458)
|
(3,303)
|
(11,761)
|
(755)
|
(16,931)
|
Q423 structural cost
actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Total operating expenses excluding Q423 structural cost
actions
|
(4,247)
|
(8,270)
|
(3,185)
|
(11,455)
|
(302)
|
(16,004)
|
|
|
|
|
|
|
|
Total income
|
7,587
|
12,610
|
5,308
|
17,918
|
(127)
|
25,378
|
|
|
|
|
|
|
|
Cost: income ratio excluding Q423 structural cost
actions
|
56%
|
66%
|
60%
|
64%
|
n/m
|
63%
|
|
|
|
|
|
|
|
Profit/(loss) before
tax
|
2,868
|
4,126
|
481
|
4,607
|
(918)
|
6,557
|
Pre-tax impact of Q423 structural
cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Profit/(loss) before tax excluding Q423 structural cost
actions
|
3,036
|
4,314
|
599
|
4,913
|
(465)
|
7,484
|
|
|
|
|
|
|
|
Attributable
profit/(loss)
|
1,962
|
2,667
|
358
|
3,025
|
(713)
|
4,274
|
Post-tax impact of Q423 structural
cost actions
|
(122)
|
(140)
|
(100)
|
(240)
|
(376)
|
(739)
|
Attributable profit/(loss) excluding the impact of Q423
structural cost actions
|
2,084
|
2,807
|
458
|
3,265
|
(337)
|
5,013
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average tangible equity
|
10.2
|
31.7
|
5.3
|
37.0
|
0.2
|
47.4
|
|
|
|
|
|
|
|
Return on average tangible equity excluding Q423 structural
cost actions
|
20.4%
|
8.9%
|
8.6%
|
8.8%
|
n/m
|
10.6%
|
|
|
|
|
|
|
|
Basic weighted average number of
shares (m)
|
|
|
|
|
|
15,445
|
Basic earnings per share
|
|
|
|
|
|
32.4p
|
Performance measures excluding the impact of Q423 structural
cost actions (continued)
|
Three months ended
31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Total operating
expenses
|
(1,187)
|
(2,266)
|
(936)
|
(3,202)
|
(531)
|
(4,920)
|
Q423 structural cost
actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Total operating expenses excluding Q423 structural cost
actions
|
(1,019)
|
(2,078)
|
(818)
|
(2,896)
|
(78)
|
(3,993)
|
|
|
|
|
|
|
|
Total income
|
1,792
|
2,390
|
1,364
|
3,754
|
52
|
5,598
|
|
|
|
|
|
|
|
Cost: income ratio excluding Q423 structural cost
actions
|
57%
|
87%
|
60%
|
77%
|
n/m
|
71%
|
|
|
|
|
|
|
|
Profit/(loss) before
tax
|
568
|
95
|
(68)
|
27
|
(485)
|
110
|
Pre-tax impact of Q423 structural
cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Profit/(loss) before tax excluding Q423 structural cost
actions
|
736
|
283
|
50
|
333
|
(32)
|
1,037
|
|
|
|
|
|
|
|
Attributable
profit/(loss)
|
382
|
(61)
|
(63)
|
(124)
|
(369)
|
(111)
|
Post-tax impact of Q423 structural
cost actions
|
(122)
|
(140)
|
(100)
|
(240)
|
(376)
|
(739)
|
Attributable profit excluding the impact of Q423 structural
cost actions
|
504
|
79
|
37
|
116
|
7
|
628
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average tangible equity
|
10.2
|
31.6
|
5.5
|
37.1
|
1.6
|
48.9
|
|
|
|
|
|
|
|
Return on average tangible equity excluding Q423 structural
cost actions
|
19.7%
|
1.0%
|
2.6%
|
1.3%
|
n/m
|
5.1%
|
|
|
|
|
|
|
|
Basic weighted average number of
shares (m)
|
|
|
|
|
|
15,092
|
Basic earnings per share
|
|
|
|
|
|
4.2p
|
Reconciliation of financial results excluding adjusting
items1
Year ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
%
change
|
Income
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
12,610
|
-
|
12,610
|
|
13,368
|
292
|
13,076
|
|
(4)
|
of which:
|
|
|
|
|
|
|
|
|
|
FICC
|
4,845
|
-
|
4,845
|
|
5,695
|
-
|
5,695
|
|
(15)
|
Equities
|
2,373
|
-
|
2,373
|
|
3,149
|
292
|
2,857
|
|
(17)
|
Global Markets
|
7,218
|
-
|
7,218
|
|
8,844
|
292
|
8,552
|
|
(16)
|
Consumer, Cards and Payments
|
5,308
|
-
|
5,308
|
|
4,499
|
-
|
4,499
|
|
18
|
Barclays International
|
17,918
|
-
|
17,918
|
|
17,867
|
292
|
17,575
|
|
2
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
Corporate and Investment
Bank
|
(8,458)
|
(188)
|
(8,270)
|
|
(8,945)
|
(966)
|
(7,979)
|
|
(4)
|
Consumer, Cards and
Payments
|
(3,303)
|
(118)
|
(3,185)
|
|
(3,052)
|
-
|
(3,052)
|
|
(4)
|
Barclays International
|
(11,761)
|
(306)
|
(11,455)
|
|
(11,997)
|
(966)
|
(11,031)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
%
change
|
Income
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
2,390
|
-
|
2,390
|
|
2,576
|
-
|
2,576
|
|
(7)
|
of which:
|
|
|
-
|
|
|
|
|
|
|
FICC
|
724
|
-
|
724
|
|
976
|
-
|
976
|
|
(26)
|
Equities
|
431
|
-
|
431
|
|
440
|
-
|
440
|
|
(2)
|
Global Markets
|
1,155
|
-
|
1,155
|
|
1,416
|
-
|
1,416
|
|
(18)
|
Consumer, Cards and Payments
|
2,390
|
-
|
2,390
|
|
2,576
|
-
|
2,576
|
|
(7)
|
Barclays International
|
3,754
|
-
|
3,754
|
|
3,862
|
-
|
3,862
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
Corporate and Investment
Bank
|
(2,266)
|
(188)
|
(2,078)
|
|
(1,977)
|
-
|
(1,977)
|
|
(15)
|
Consumer, Cards and
Payments
|
(936)
|
(118)
|
(818)
|
|
(766)
|
-
|
(766)
|
|
(22)
|
Barclays International
|
(3,202)
|
(306)
|
(2,896)
|
|
(2,743)
|
-
|
(2,743)
|
|
(17)
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and
impact of the Over-issuance of Securities in
2022.
|
Notable Items
|
|
|
|
|
Year ended
31.12.23
|
Year ended
31.12.22
|
£m
|
Profit before tax
|
Attributable profit
|
Profit before tax
|
Attributable profit
|
Statutory
|
6,557
|
4,274
|
7,012
|
5,023
|
Net impact from the Over-issuance
of Securities
|
-
|
-
|
(674)
|
(552)
|
Customer remediation costs on
legacy loan portfolios
|
-
|
-
|
(282)
|
(228)
|
Settlements in principle in
respect of industry-wide
devices investigations by SEC and
CFTC
|
-
|
-
|
(165)
|
(165)
|
Other litigation and
conduct
|
(37)
|
(17)
|
(184)
|
(167)
|
Structural cost actions
|
(1,046)
|
(826)
|
(151)
|
(123)
|
Re-measurement of UK
DTAs
|
-
|
-
|
-
|
(346)
|
Excluding the impact of notable items
|
7,640
|
5,117
|
8,468
|
6,604
|
|
|
|
|
|
|
Three months ended
31.12.23
|
Three months ended
31.12.22
|
£m
|
Profit before tax
|
Attributable loss
|
Profit before tax
|
Attributable profit
|
Statutory
|
110
|
(111)
|
1,310
|
1,036
|
Net impact from the Over-issuance
of Securities
|
-
|
-
|
-
|
-
|
Other litigation and
conduct
|
(5)
|
(4)
|
(79)
|
(70)
|
Structural cost actions
|
(927)
|
(739)
|
(74)
|
(63)
|
Excluding the impact of notable items
|
1,042
|
632
|
1,463
|
1,169
|
The Group's management believes that the non-IFRS performance
measures excluding notable items, included in the table above,
provide valuable information to enable users of the financial
statements to assess the performance of the Group. The notable
items are separately identified within the Group's results
disclosures which, when excluded from Barclays' statutory
financials, provide an underlying profit and loss performance of
the Group and enables consistent comparison of performance from one
period to another.
These non-IFRS performance
measures excluding notable items are included as a reference point
only and are not incorporated within any of the key financial
metrics used in our Group Targets, which
are measured on a statutory basis.
Tangible net asset value per share
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Total equity excluding
non-controlling interests
|
71,204
|
68,292
|
Other equity
instruments
|
(13,259)
|
(13,284)
|
Goodwill and
intangibles
|
(7,794)
|
(8,239)
|
Tangible shareholders' equity attributable to ordinary
shareholders of the parent
|
50,151
|
46,769
|
|
|
|
|
m
|
m
|
Shares in issue
|
15,155
|
15,871
|
|
|
|
|
p
|
p
|
Tangible net asset value per share
|
331
|
295
|
Shareholder Information
Results timetable1
|
|
|
Date
|
|
|
Ex-dividend date
|
|
|
29 February 2024
|
|
Dividend record date
|
|
|
1 March 2024
|
|
Cut off time of 5:00pm (UK time)
for the receipt of Dividend Reinvestment Programme (DRIP)
Application Form Mandate
|
|
11 March 2024
|
|
Dividend payment date
|
|
|
3 April 2024
|
|
Q1 2024 Results
Announcement
|
|
|
25 April 2024
|
|
|
|
|
|
|
|
For qualifying US and Canadian
resident ADR holders, the 2023 full year dividend of 5.3p per
ordinary share becomes 21.2p per ADS
(representing four shares). The
ex-dividend, dividend record and dividend payment dates for ADR
holders are as shown above
|
|
A DRIP is provided by Equiniti
Financial Services Limited. The DRIP enables the Company's
shareholders to elect to have their cash dividend payments used to
purchase the Company's shares. More information can be
found at
www.shareview.co.uk/info/drip
|
|
DRIP participants will usually
receive their additional ordinary shares (in lieu of a cash
dividend) three to four days after the dividend payment
date
|
|
Barclays PLC ordinary shares ISIN
code: GB0031348658
|
|
Barclays PLC ordinary shares TIDM
Code: BARC
|
|
|
|
|
Year ended
|
Year ended
|
|
|
|
Exchange rates2
|
31.12.23
|
31.12.22
|
%
Change3
|
|
|
Period end - USD/GBP
|
1.28
|
1.21
|
6%
|
|
|
YTD average - USD/GBP
|
1.24
|
1.24
|
-
|
|
|
3 month average -
USD/GBP
|
1.24
|
1.17
|
6%
|
|
|
Period end - EUR/GBP
|
1.15
|
1.13
|
2%
|
|
|
YTD average - EUR/GBP
|
1.15
|
1.17
|
(2)%
|
|
|
3 month average -
EUR/GBP
|
1.15
|
1.15
|
-
|
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
Barclays PLC (p)
|
153.78
|
158.52
|
|
|
|
Barclays PLC number of shares
(m)
|
15,155
|
15,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
|
Marina Shchukina +44 (0) 20 7116
2526
|
Tom Hoskin +44 (0) 20 7116
4755
|
|
|
|
|
More information on Barclays can
be found on our website:
home.barclays
|
|
|
|
|
|
|
|
Registered office
|
|
|
|
|
|
1 Churchill Place, London, E14
5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number:
48839.
|
|
|
|
|
|
|
|
Registrar
|
|
|
|
|
|
Equiniti, Aspect House, Spencer
Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
|
|
Tel: +44 (0)371 384 2055 (UK and
International telephone number)4.
|
|
|
|
|
|
|
|
American Depositary Receipts (ADRs)
|
|
|
|
|
|
EQ Shareowner Services
|
|
P.O. Box 64504
|
|
St. Paul, MN 55164-0504
|
|
United States of
America
|
|
shareowneronline.com
|
|
|
|
|
Toll Free Number: +1
800-990-1135
|
|
|
|
|
|
Outside the US +1
651-453-2128
|
|
|
|
|
|
|
|
|
|
|
|
Delivery of ADR certificates and
overnight mail
|
|
|
|
|
|
EQ Shareowner Services, 1110
Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100,
USA.
|
|
1
|
Note that these dates are provisional and subject to
change.
|
2
|
The average rates shown above are derived from daily spot
rates during the year.
|
3
|
The change is the impact to GBP reported
information.
|
4
|
Lines open 8.30am to 5.30pm (UK time), Monday to Friday,
excluding UK public holidays in England and
Wales.
|