Barclays PLC
Results Announcement
31 December 2019
Table of Contents
Results Announcement
|
Page
|
Notes
|
1
|
Performance
Highlights
|
2-3
|
Group
Chief Executive Officer's Review
|
4
|
Group
Finance Director's Review
|
5-6
|
Results by Business
|
|
●
|
Barclays
UK
|
7-9
|
●
|
Barclays International
|
10-13
|
●
|
Head
Office
|
14
|
Quarterly Results Summary
|
15
|
Quarterly Results by Business
|
16-21
|
Performance Management
|
|
●
|
Margins and Balances
|
22
|
●
|
Remuneration
|
23-24
|
Risk Management
|
|
●
|
Risk Management and Principal Risks
|
25
|
●
|
Credit Risk
|
26-36
|
●
|
Market Risk
|
37
|
●
|
Treasury and Capital Risk
|
38-47
|
Statement of Directors' Responsibilities
|
48
|
Condensed Consolidated Financial Statements
|
49-53
|
Financial Statement Notes
|
54-61
|
Appendix:
Non-IFRS Performance Measures
|
62-71
|
Shareholder
Information
|
72
|
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM.
TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.
Notes
The terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the year ended 31 December 2019 to the
corresponding 12 months of 2018 and balance sheet analysis as at 31
December 2019 with comparatives relating to 31 December 2018. 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
that can be accessed at home.barclays/investor-relations/reports-and-events/latest-financial-results.
The information in this announcement, which was approved by the
Board of Directors on 12 February 2020, does not comprise
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31
December 2019, which contain an unmodified audit
report under Section 495 of the Companies Act 2006
(which did 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 as a Form 6-K to the US
Securities and Exchange Commission (SEC) as soon as practicable
following their publication. Once furnished with 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 road-shows 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 62 to 71 for further information and
calculations of non-IFRS performance measures included throughout
this document, and 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. These 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 members of the management of the
Group (including, without limitation, during management
presentations to financial analysts) 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, income growth, assets, impairment
charges, provisions, business strategy, capital, leverage and other
regulatory ratios, payment of dividends (including dividend payout
ratios and expected payment strategies), projected levels of growth
in the banking and financial markets, projected costs or savings,
any commitments and targets, estimates of capital expenditures,
plans and objectives for future operations, projected employee
numbers, IFRS impacts and other statements that are not historical
fact. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
The forward-looking statements speak only as at the date on which
they are made and such statements may be affected by changes in
legislation, the development of standards and interpretations under
IFRS, including evolving practices with regard to the
interpretation and application of accounting and regulatory
standards, the outcome of current and future legal proceedings and
regulatory investigations, future levels of conduct provisions, the
policies and actions of governmental and regulatory authorities,
geopolitical risks and the impact of competition. In addition,
factors including (but not limited to) the following may have an
effect: capital, leverage and other regulatory rules applicable to
past, current and future periods; UK, US, Eurozone and global
macroeconomic and business conditions; the effects of any
volatility in credit markets; market related risks such as changes
in interest rates and foreign exchange rates; effects of changes in
valuation of credit market exposures; changes in valuation of
issued securities; volatility in capital markets; changes in credit
ratings of any entity within the Group or any securities issued by
such entities; the potential for one or more countries exiting the
Eurozone; instability as a result of the exit by the UK from the
European Union and the disruption that may subsequently result in
the UK and globally; and the success of future acquisitions,
disposals and other strategic transactions. A number of these
influences and factors are beyond the Group's control. As a result,
the Group's actual financial position, future results, dividend
payments, capital, leverage or other regulatory ratios or other
financial and non-financial metrics or performance measures may
differ materially from the statements or guidance set forth in the
Group's forward-looking statements. Additional risks and factors
which may impact the Group's future financial condition and
performance are identified in our filings with the SEC (including,
without limitation, our Annual Report on Form 20-F for the fiscal
year ended 31 December 2019), which are available on the SEC's
website at www.sec.gov.
Subject to our 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
Barclays delivered improved returns and increased distributions to
shareholders, with Group earnings per share of 24.4p and a return
on tangible equity of 9.0% (both excluding litigation and conduct),
and a total dividend of 9.0p
●
|
Group return on tangible equity (RoTE) improved year-on-year to
9.0%1 (2018:
8.5%), in line with the 2019 target. This represents the third
consecutive year of improved year-on-year RoTE performance for the
Group2
|
●
|
The Group continues to target >10% RoTE1.
However, given global macroeconomic uncertainty and the current low
interest rate environment, it has become more challenging to
achieve this in 2020. Notwithstanding these headwinds, the Group
believes it can achieve a meaningful improvement in returns in
2020
|
●
|
Group statutory profit before tax was £4.4bn (2018:
£3.5bn) and, excluding litigation and conduct, was £6.2bn
(2018: £5.7bn). Statutory earnings per share (EPS) were 14.3p
(2018: 9.4p) and, excluding litigation and
conduct were 24.4p (2018: 21.9p)
|
●
|
Common equity tier 1 (CET1) ratio was 13.8%, with the Group target
remaining c.13.5%
|
●
|
Delivering attractive capital returns to shareholders remains a key
priority, whilst also continuing to improve RoTE on a sustainable
basis and investing in business growth
|
Returns1
Group RoTE target of >10% over time
|
●
|
Group profit before tax of £6.2bn (2018: £5.7bn) and EPS
of 24.4p (2018: 21.9p)
|
-
|
Barclays UK RoTE of 17.5% (2018: 16.7%)
|
-
|
Barclays International RoTE of 9.3% (2018: 8.7%)
|
|
-
|
Corporate and Investment Bank (CIB) RoTE of 8.0% (2018:
7.1%)
|
|
-
|
Consumer, Cards and Payments (CC&P) RoTE of 15.9% (2018:
17.3%)
|
Cost efficiency1
Cost: income ratio of <60% over time
|
●
|
Group operating expenses were in line with the 2019 guidance of
less than £13.6bn1.
All operating businesses generated positive cost: income jaws and
the Group delivered positive jaws for the third consecutive
year1
|
●
|
The 2019 cost: income ratio was 63%1 (2018:
66%), reflecting disciplined cost management as cost efficiencies
were partially offset by continued investment
|
●
|
Cost control remains a priority and management continues to target
a cost: income ratio of <60% over time
|
Capital and dividends
CET1 ratio target of c.13.5%3
|
●
|
Group CET1 ratio of 13.8% (December 2018: 13.2%)
|
●
|
Total dividend for 2019 of 9.0p, up from 6.5p in 2018
|
●
|
The Group capital returns policy remains unchanged, incorporating
progressive ordinary dividends, supplemented with share buybacks as
and when appropriate
|
●
|
Group profit before tax was £4.4bn (2018: £3.5bn),
including an additional provision for Payment Protection Insurance
(PPI) of £1,400m (2018: £400m). Profit before tax,
excluding litigation and conduct, was £6.2bn (2018:
£5.7bn). Income increased
2%, while operating expenses decreased 2%, resulting in an improved
cost: income ratio of 63% (2018: 66%), with both Barclays UK and
Barclays International delivering positive cost: income
jaws1.
Credit impairment charges increased to £1.9bn (2018:
£1.5bn). The 2019 charge includes the impact of macroeconomic
scenario updates and an overall reduction in unsecured gross
exposures. Prior year comparatives included the impact of
favourable macroeconomic scenario updates and a £150m charge
regarding the anticipated economic uncertainty in the
UK
|
●
|
Barclays UK profit before tax was £1.0bn (2018: £2.0bn)
and, excluding litigation and conduct, was £2.6bn (2018:
£2.4bn). Income was
stable, as ongoing margin pressure was offset by continued growth
in mortgages and deposits. Operating expenses decreased 2% as cost
efficiencies were partially offset by planned investment and
inflation, driving an improved cost: income ratio of 55% (2018:
56%). Credit metrics improved marginally in UK
cards
|
●
|
Barclays International profit before tax was £4.1bn (2018:
£3.8bn) and, excluding litigation and conduct, was £4.2bn
(2018: £3.9bn), driven by income growth of 5% in CIB and 4% in
CC&P. Operating expenses decreased 2% due to cost efficiencies
partially offset by continued investment. Credit metrics were
stable in US cards
|
●
|
Tangible net asset value (TNAV) per share was 262p (December 2018:
262p) as 14.3p of
statutory EPS was offset by dividend payments totalling 7p per
share and net negative reserve movements. Excluding litigation and
conduct of 10p per share, EPS was 24.4p
|
1
|
Excluding litigation and conduct.
|
2
|
Excluding litigation and conduct and material items in
2017.
|
3
|
Group RoTE target based on an assumed CET1 ratio at the target of
c.13.5%.
|
Barclays Group results
|
|
for the year ended
|
31.12.19
|
31.12.18
|
|
|
£m
|
£m
|
% Change
|
Total income
|
21,632
|
21,136
|
2
|
Credit impairment charges
|
(1,912)
|
(1,468)
|
(30)
|
Net operating income
|
19,720
|
19,668
|
-
|
Operating costs
|
(13,359)
|
(13,627)
|
2
|
UK bank levy
|
(226)
|
(269)
|
16
|
Operating expenses
|
(13,585)
|
(13,896)
|
2
|
Guaranteed Minimum Pensions (GMP) charge
|
-
|
(140)
|
|
Litigation and conduct
|
(1,849)
|
(2,207)
|
16
|
Total operating expenses
|
(15,434)
|
(16,243)
|
5
|
Other net income
|
71
|
69
|
3
|
Profit before tax
|
4,357
|
3,494
|
25
|
Tax charge1
|
(1,003)
|
(911)
|
(10)
|
Profit after tax
|
3,354
|
2,583
|
30
|
Non-controlling interests
|
(80)
|
(234)
|
66
|
Other equity instrument holders
|
(813)
|
(752)
|
(8)
|
Attributable profit
|
2,461
|
1,597
|
54
|
|
|
|
|
Performance measures
|
|
|
|
Return on average tangible shareholders' equity
|
5.3%
|
3.6%
|
|
Average tangible shareholders' equity (£bn)
|
46.6
|
44.1
|
|
Cost: income ratio
|
71%
|
77%
|
|
Loan loss rate (bps)
|
55
|
44
|
|
Basic earnings per share
|
14.3p
|
9.4p
|
|
Dividend per share
|
9.0p
|
6.5p
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
|
|
|
Profit before tax
|
6,206
|
5,701
|
9
|
Attributable profit
|
4,194
|
3,733
|
12
|
Return on average tangible shareholders' equity
|
9.0%
|
8.5%
|
|
Cost: income ratio
|
63%
|
66%
|
|
Basic earnings per share
|
24.4p
|
21.9p
|
|
|
|
|
|
Balance sheet and capital
management3
|
£bn
|
£bn
|
|
Tangible net asset value per share
|
262p
|
262p
|
|
Common equity tier 1 ratio
|
13.8%
|
13.2%
|
|
Common equity tier 1 capital
|
40.8
|
41.1
|
|
Risk weighted assets
|
295.1
|
311.9
|
|
Average UK leverage ratio
|
4.5%
|
4.5%
|
|
UK leverage ratio
|
5.1%
|
5.1%
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool (£bn)
|
211
|
227
|
|
Liquidity coverage ratio
|
160%
|
169%
|
|
Loan: deposit ratio
|
82%
|
83%
|
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to Additional Tier 1 (AT1) instruments has been recognised
in the tax charge of the income statement, whereas it was
previously recorded in retained earnings. Comparatives have been
restated, reducing the tax charge for FY18 by £211m. This
change does not impact EPS or return on average tangible
shareholders' equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
3
|
Refer to pages 41 to 46 for further information on how capital,
Risk Weighted Assets (RWAs) and leverage are
calculated.
|
Group Chief Executive Officer's Review
"2019 was another year of progress for Barclays, continuing the
positive momentum across our business and allowing us to increase
returns to shareholders.
Excluding litigation and conduct, profit before tax was up 9% to
£6.2bn, and Group return on tangible equity improved to 9.0%
for the year, in line with our target for 2019.
Disciplined cost management and income growth resulted in a cost:
income ratio of 63%, excluding litigation and conduct, and we saw
positive jaws across all operating businesses, allowing us to
continue investment in our service to customers and clients,
including future growth opportunities, as well as improving
profitability.
Barclays is a British universal bank, with a well-balanced mix of
consumer and wholesale businesses, across geographies and
currencies: this helps us deliver year-on-year improvements in
profitability during a period of macroeconomic
uncertainty.
We continue to believe that it is appropriate to target a return
greater than 10%, and we are managing our business to achieve that.
However, given the low interest rate environment, it has become
more challenging to achieve that target in 2020. Nonetheless,
Barclays is confident of further improving returns meaningfully
this year.
Looking ahead, we will extend our customer reach by using our
current strengths - our brand, our existing digital proposition,
our universal banking model, and leading market positions. We will
accelerate our digital journey, and continue to play a leading role
in capturing innovation and bringing it to life, at scale, for
millions of customers and clients. In this way, we will invest for
growth in areas that are less capital intensive, further
diversifying the Group without limiting our commitment to the
businesses we already have.
Through continued cost discipline, we will also create the capacity
to make targeted investments across our business.
With continued strong capital generation and a CET1 ratio of 13.8%,
we are pleased to be able to deliver improved returns to
shareholders, and have declared a total dividend of 9 pence per
share - up from 6.5p in 2018, and three times that of
2017.
We expect future earnings to drive increased returns to
shareholders, as we anticipate a significant reduction in charges
related to litigation and conduct from this year onwards. We intend
to pay a progressive ordinary dividend supplemented with additional
cash returns to shareholders, including share buybacks, as and when
appropriate.
I look forward to delivering for all of our stakeholders in 2020
and beyond."
James E Staley, Group Chief Executive Officer
Group Finance Director's Review
Group performance
●
|
RoTE, excluding litigation and conduct, increased to 9.0% (2018:
8.5%), in line with the 2019 target. EPS, excluding litigation and
conduct, increased to 24.4p (2018: 21.9p). Statutory EPS was 14.3p
(2018: 9.4p)
|
●
|
Profit before tax was £4,357m (2018: £3,494m), including
an additional provision for PPI of £1,400m (2018: £400m).
Excluding litigation and conduct, profit before tax was
£6,206m (2018: £5,701m), with higher income and lower
operating expenses partially offset by increased year-on-year
credit impairment charges. The 4% appreciation of average USD
against GBP positively impacted income and profits and adversely
impacted credit impairment charges and operating
expenses
|
●
|
Total income increased 2% to £21,632m. Barclays UK income was
stable, as ongoing margin pressure and continued reduced risk
appetite in UK cards were offset by mortgage and deposit balance
growth. Barclays International income increased 5%, with CIB income
up 5% and CC&P income up 4%. Within CIB, Markets income
increased due to continued market share gains1,
while Banking fees income was stable and a reduction in Corporate
lending income was partially offset by an increase in Transaction
banking income. Higher CC&P income reflected growth in US
co-branded cards and payments partnerships
|
●
|
Credit impairment charges increased to £1,912m (2018:
£1,468m). The 2019 charge includes the impact of
macroeconomic scenario updates and an overall reduction in
unsecured gross exposures. Prior year comparatives included the
impact of favourable macroeconomic scenario updates and a
£150m charge regarding the anticipated economic uncertainty in
the UK
|
●
|
Operating expenses decreased to £13,585m (2018: £13,896m)
in line with 2019 guidance, as cost efficiencies were partially
offset by continued investment. Barclays UK and Barclays
International each generated positive cost: income jaws, resulting
in the Group cost: income ratio, excluding litigation and conduct,
reducing to 63% (2018: 66%)
|
●
|
Total operating expenses of £15,434m (2018: £16,243m)
included litigation and conduct charges of £1,849m (2018:
£2,207m)
|
●
|
The effective tax rate was 23.0% (2018: 26.1%). Excluding
litigation and conduct, the effective tax rate was 18.0% (2018:
17.2%). The Group's effective tax rate for future periods is
expected to remain around 20%, excluding litigation and
conduct
|
●
|
Attributable profit was £2,461m (2018: £1,597m).
Excluding litigation and conduct, attributable profit was
£4,194m (2018: £3,733m), generating an RoTE of 9.0%
(2018: 8.5%) and EPS of 24.4p (2018: 21.9p)
|
Group capital and leverage
●
|
The
CET1 ratio increased to 13.8%
(December 2018: 13.2%)
|
|
-
|
CET1
capital decreased by £0.3bn
to £40.8bn. This was driven by underlying profit generation of
£5.0bn offset by dividends paid and foreseen of £2.4bn,
the additional provision for PPI of £1.4bn, pension deficit
reduction contribution payments of £0.5bn, a decrease in
the currency translation reserve of £0.5bn, mainly driven by
the depreciation of period end USD against GBP, and a loss on the
redemption of Additional Tier 1 (AT1) securities of
£0.4bn
|
|
-
|
Risk
Weighted Assets (RWAs) decreased by £16.8bn to £295.1bn
primarily driven by the reduction in the Group's operational risk
RWAs, as well as the depreciation of period end USD against
GBP
|
●
|
The
average UK leverage ratio remained stable at 4.5% (December 2018:
4.5%) primarily driven by a net increase in AT1 capital, offset by
a modest increase in leverage exposure to £1,143bn (December
2018: £1,110bn). The UK leverage ratio also remained stable at
5.1% (December 2018: 5.1%)
|
1
|
Data Source: Coalition, FY19 Preliminary Competitor Analysis.
Market share represents Barclays share of the total industry
Revenue Pool. Analysis is based on Barclays internal business
structure and internal revenues.
|
Group funding and liquidity
●
|
The liquidity pool, at £211bn (December 2018: £227bn),
reflects the Group's prudent approach to liquidity management. The
liquidity coverage ratio (LCR) remained well above the 100%
regulatory requirement at 160% (December 2018: 169%), equivalent to
a surplus of £78bn (December 2018: £90bn). The liquidity
pool, LCR and surplus have been managed down through the course of
the year, supporting increased business funding requirements while
maintaining a prudent liquidity position
|
●
|
Wholesale funding outstanding, excluding repurchase agreements, was
£147.1bn (December 2018: £154.0bn). The Group issued
£8.6bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company). The Group is well advanced in its MREL issuance
plans, with a Barclays PLC MREL ratio of 31.2% as at 31 December
2019 relative to an estimated requirement (including requisite
buffers) of 31.3% by 1 January 2022. This requirement increased
from 29.9% as at 30 June 2019, due to the revision of the Group's
Pillar 2A requirement, following the removal of the Group's
operational risk RWAs floor
|
Other matters
●
|
As at 31 December 2019, the Group held a provision of £1.2bn
against the cost of PPI redress and associated processing costs.
Q319 saw an exceptional level of claims and information requests
received in advance of the complaint deadline of 29 August 2019. Of
the greater than 2 million items outstanding at Q319, materially
all have now been processed into Barclays' systems and 52% of the
items processed have been resolved. Based on resolution of
complaints during Q419, the observed outcomes support the level of
provision. Further information can be found on pages 57 to
58
|
●
|
The latest triennial actuarial valuation of the UK Retirement Fund
(UKRF), with an effective date of 30 September 2019, has been
completed and showed a funding deficit of £2.3bn compared to a
£7.9bn funding deficit in the previous triennial valuation
(effective date 30 September 2016). Barclays and the UKRF Trustee
have agreed a revised recovery plan including lower deficit
reduction contributions. Further information can be found on page
59
|
Dividends / capital returns
●
|
A half year dividend of 3.0p was paid on 23 September 2019.
Barclays declares a full year dividend of 6.0p per share, resulting
in a total dividend of 9.0p per share for 2019 (up from 6.5p in
2018)
|
●
|
The Group's existing capital returns policy as set out in the FY18
results announcement remains unchanged:
|
|
"Barclays understands the importance of delivering attractive cash
returns to shareholders. Barclays is therefore committed to
maintaining an appropriate balance between total cash returns to
shareholders, investment in the business and maintaining a strong
capital position. Going forward, Barclays intends to pay a
progressive ordinary dividend, taking into account these objectives
and the earnings outlook of the Group. It is also the Board's
intention to supplement the ordinary dividends with additional cash
returns, including share buybacks, to shareholders as and when
appropriate"
|
Outlook and guidance
●
|
The Group continues to target >10% RoTE1.
However, given global macroeconomic uncertainty and the current low
interest rate environment, it has become more challenging to
achieve this in 2020. Notwithstanding these headwinds, the Group
believes it can achieve a meaningful improvement in returns in
2020
|
Tushar Morzaria, Group Finance Director
1
|
Excluding litigation and conduct.
|
Results by Business
Barclays UK
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
5,888
|
6,028
|
(2)
|
Net fee, commission and other income
|
1,465
|
1,355
|
8
|
Total income
|
7,353
|
7,383
|
-
|
Credit impairment charges
|
(712)
|
(826)
|
14
|
Net operating income
|
6,641
|
6,557
|
1
|
Operating costs
|
(3,996)
|
(4,075)
|
2
|
UK bank levy
|
(41)
|
(46)
|
11
|
Operating expenses
|
(4,037)
|
(4,121)
|
2
|
Litigation and conduct
|
(1,582)
|
(483)
|
|
Total operating expenses
|
(5,619)
|
(4,604)
|
(22)
|
Other net income
|
-
|
3
|
|
Profit before tax
|
1,022
|
1,956
|
(48)
|
Attributable profit1
|
281
|
1,198
|
(77)
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
193.7
|
187.6
|
|
Total assets
|
257.8
|
249.7
|
|
Customer deposits at amortised cost
|
205.5
|
197.3
|
|
Loan: deposit ratio
|
96%
|
96%
|
|
Risk weighted assets
|
74.9
|
75.2
|
|
Period end allocated tangible equity
|
10.3
|
10.2
|
|
|
|
|
|
Key facts
|
|
|
|
Average loan to value of mortgage portfolio2
|
51%
|
49%
|
|
Average loan to value of new mortgage lending2
|
68%
|
65%
|
|
Number of branches
|
963
|
1,058
|
|
Mobile banking active customers
|
8.4m
|
7.3m
|
|
30 day arrears rate - Barclaycard Consumer UK
|
1.7%
|
1.8%
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
2.7%
|
11.9%
|
|
Average allocated tangible equity (£bn)
|
10.3
|
10.0
|
|
Cost: income ratio
|
76%
|
62%
|
|
Loan loss rate (bps)
|
36
|
43
|
|
Net interest margin
|
3.09%
|
3.23%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct3
|
£m
|
£m
|
|
Profit before tax
|
2,604
|
2,439
|
7
|
Attributable profit
|
1,813
|
1,670
|
9
|
Return on average allocated tangible equity
|
17.5%
|
16.7%
|
|
Cost: income ratio
|
55%
|
56%
|
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Average loan to value of mortgages is balance weighted and reflects
both residential and buy-to-let (BTL) mortgage portfolios within
the Home Loans portfolio. The prior period has been updated to
align to this basis of preparation.
|
3
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays UK
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
Personal Banking
|
4,009
|
4,006
|
-
|
Barclaycard Consumer UK
|
1,992
|
2,104
|
(5)
|
Business Banking
|
1,352
|
1,273
|
6
|
Total income
|
7,353
|
7,383
|
-
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
Personal Banking
|
(195)
|
(173)
|
(13)
|
Barclaycard Consumer UK
|
(472)
|
(590)
|
20
|
Business Banking
|
(45)
|
(63)
|
29
|
Total credit impairment charges
|
(712)
|
(826)
|
14
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
Personal Banking
|
151.9
|
146.0
|
|
Barclaycard Consumer UK
|
14.7
|
15.3
|
|
Business Banking
|
27.1
|
26.3
|
|
Total loans and advances to customers at amortised
cost
|
193.7
|
187.6
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
Personal Banking
|
159.2
|
154.0
|
|
Barclaycard Consumer UK
|
-
|
-
|
|
Business Banking
|
46.3
|
43.3
|
|
Total customer deposits at amortised cost
|
205.5
|
197.3
|
|
The income environment in 2019 was challenging for Barclays UK
and the additional PPI provision of £1.4bn (2018: £0.4bn)
impacted full year profit before tax. Nevertheless, the business
continued to deliver strong growth in balances, increasing mortgage
lending by £6.4bn and growing deposits by £8.2bn.
Barclays UK also delivered positive cost: income jaws, leading to
an improvement in the cost: income ratio (excluding litigation and
conduct) as cost efficiencies outweighed continued
investment.
2019 compared to 2018
Income statement
●
|
Profit before tax, excluding litigation and conduct, increased 7%
to £2,604m and RoTE increased to 17.5% (2018: 16.7%)
reflecting the resilience of the business in a challenging income
environment. Including litigation and conduct charges of
£1,582m (2018: £483m), profit before tax was £1,022m
(2018: £1,956m)
|
●
|
Total income was stable at £7,353m (2018: £7,383m). A 2%
reduction in net interest income to £5,888m (resulting in a
lower net interest margin (NIM) of 3.09% (2018: 3.23%)) reflected
higher refinancing activity by mortgage customers, lower interest
earning lending (IEL) balances in UK cards and the mix effect from
growth in secured lending. Net fee, commission and other income
increased 8% to £1,465m, due to increased debt sales and the
impact of treasury operations
|
|
-
|
Personal Banking income was stable at £4,009m (2018:
£4,006m), reflecting ongoing mortgage margin pressure, offset
by mortgage and deposit balance growth, improved deposit margins
and treasury operations
|
|
-
|
Barclaycard Consumer UK income decreased 5% to £1,992m
reflecting a continued reduced risk appetite and reduced borrowing
by customers, which resulted in a lower level of IEL balances,
partially offset by increased debt sales
|
|
-
|
Business Banking income increased 6% to £1,352m driven by
deposit growth, with improved deposit margins, and the
non-recurrence of client remediation in 2018
|
●
|
Credit impairment charges decreased 14% to £712m
reflecting the non-recurrence of a £100m specific charge
in Q418 relating to the impact of anticipated economic uncertainty
in the UK. Unsecured gross exposures were lower as a result of
increased debt sales and an improved risk profile, both principally
in UK cards. The 30 and 90 day arrears rates in UK cards decreased
to 1.7% (Q418: 1.8%) and 0.8% (Q418: 0.9%)
respectively
|
●
|
Operating expenses decreased 2% to £4,037m as cost
efficiencies were partially offset by planned investment and
inflation. The cost: income ratio, excluding litigation and
conduct, was 55% (2018: 56%)
|
Balance sheet
●
|
Loans and advances to customers at amortised cost increased 3% to
£193.7bn reflecting £6.4bn of mortgage
growth
|
●
|
Customer deposits at amortised cost increased 4% to £205.5bn
demonstrating franchise strength across both Personal and Business
Banking
|
●
|
RWAs were stable at £74.9bn (2018: £75.2bn) as a
reduction in UK cards (reflecting increased debt sales, lower IEL
balances and an improved risk profile) was offset by growth in
mortgages
|
Barclays International
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
3,941
|
3,815
|
3
|
Net trading income
|
4,199
|
4,450
|
(6)
|
Net fee, commission and other income
|
6,535
|
5,761
|
13
|
Total income
|
14,675
|
14,026
|
5
|
Credit impairment charges
|
(1,173)
|
(658)
|
(78)
|
Net operating income
|
13,502
|
13,368
|
1
|
Operating costs
|
(9,163)
|
(9,324)
|
2
|
UK bank levy
|
(174)
|
(210)
|
17
|
Operating expenses
|
(9,337)
|
(9,534)
|
2
|
Litigation and conduct
|
(116)
|
(127)
|
9
|
Total operating expenses
|
(9,453)
|
(9,661)
|
2
|
Other net income
|
69
|
68
|
1
|
Profit before tax
|
4,118
|
3,775
|
9
|
Attributable profit1
|
2,816
|
2,599
|
8
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
132.8
|
127.2
|
|
Trading portfolio assets
|
113.3
|
104.0
|
|
Derivative financial instrument assets
|
228.9
|
222.1
|
|
Financial assets at fair value through the income
statement
|
128.4
|
144.7
|
|
Cash collateral and settlement balances
|
79.4
|
74.3
|
|
Other assets
|
178.6
|
189.8
|
|
Total assets
|
861.4
|
862.1
|
|
Deposits at amortised cost
|
210.0
|
197.2
|
|
Derivative financial instrument liabilities
|
228.9
|
219.6
|
|
Loan: deposit ratio
|
63%
|
65%
|
|
Risk weighted assets
|
209.2
|
210.7
|
|
Period end allocated tangible equity
|
29.6
|
29.9
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
9.0%
|
8.4%
|
|
Average allocated tangible equity (£bn)
|
31.2
|
31.0
|
|
Cost: income ratio
|
64%
|
69%
|
|
Loan loss rate (bps)
|
86
|
50
|
|
Net interest margin
|
4.07%
|
4.11%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
Profit before tax
|
4,234
|
3,902
|
9
|
Attributable profit
|
2,906
|
2,705
|
7
|
Return on average allocated tangible equity
|
9.3%
|
8.7%
|
|
Cost: income ratio
|
64%
|
68%
|
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Income statement information
|
£m
|
£m
|
% Change
|
FICC
|
3,364
|
2,863
|
17
|
Equities
|
1,887
|
2,037
|
(7)
|
Markets
|
5,251
|
4,900
|
7
|
Advisory
|
776
|
708
|
10
|
Equity capital markets
|
329
|
300
|
10
|
Debt capital markets
|
1,430
|
1,523
|
(6)
|
Banking fees
|
2,535
|
2,531
|
-
|
Corporate lending
|
765
|
878
|
(13)
|
Transaction banking
|
1,680
|
1,627
|
3
|
Corporate
|
2,445
|
2,505
|
(2)
|
Other1
|
-
|
(171)
|
|
Total income
|
10,231
|
9,765
|
5
|
Credit impairment (charges)/releases
|
(157)
|
150
|
|
Net operating income
|
10,074
|
9,915
|
2
|
Operating costs
|
(6,882)
|
(7,093)
|
3
|
UK bank levy
|
(156)
|
(188)
|
17
|
Operating expenses
|
(7,038)
|
(7,281)
|
3
|
Litigation and conduct
|
(109)
|
(68)
|
(60)
|
Total operating expenses
|
(7,147)
|
(7,349)
|
3
|
Other net income
|
28
|
27
|
4
|
Profit before tax
|
2,955
|
2,593
|
14
|
Attributable profit2
|
1,980
|
1,781
|
11
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
92.0
|
86.4
|
|
Trading portfolio assets
|
113.3
|
104.0
|
|
Derivative financial instrument assets
|
228.8
|
222.1
|
|
Financial assets at fair value through the income
statement
|
127.7
|
144.2
|
|
Cash collateral and settlement balances
|
78.5
|
73.4
|
|
Other assets
|
155.3
|
160.4
|
|
Total assets
|
795.6
|
790.5
|
|
Deposits at amortised cost
|
146.2
|
136.3
|
|
Derivative financial instrument liabilities
|
228.9
|
219.6
|
|
Risk weighted assets
|
171.5
|
170.9
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
7.6%
|
6.9%
|
|
Average allocated tangible equity (£bn)
|
25.9
|
26.0
|
|
Cost: income ratio
|
70%
|
75%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct3
|
£m
|
£m
|
|
Profit before tax
|
3,064
|
2,661
|
15
|
Attributable profit
|
2,064
|
1,843
|
12
|
Return on average allocated tangible equity
|
8.0%
|
7.1%
|
|
Cost: income ratio
|
69%
|
75%
|
|
1
|
From 2019, treasury items previously included in Other have been
allocated to businesses.
|
2
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
3
|
Refer to pages 62 to 71 for more information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
2,822
|
2,731
|
3
|
Net fee, commission, trading and other income
|
1,622
|
1,530
|
6
|
Total income
|
4,444
|
4,261
|
4
|
Credit impairment charges
|
(1,016)
|
(808)
|
(26)
|
Net operating income
|
3,428
|
3,453
|
(1)
|
Operating costs
|
(2,281)
|
(2,231)
|
(2)
|
UK bank levy
|
(18)
|
(22)
|
18
|
Operating expenses
|
(2,299)
|
(2,253)
|
(2)
|
Litigation and conduct
|
(7)
|
(59)
|
88
|
Total operating expenses
|
(2,306)
|
(2,312)
|
-
|
Other net income
|
41
|
41
|
-
|
Profit before tax
|
1,163
|
1,182
|
(2)
|
Attributable profit1
|
836
|
818
|
2
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
40.8
|
40.8
|
|
Total assets
|
65.8
|
71.6
|
|
Deposits at amortised cost
|
63.8
|
60.9
|
|
Risk weighted assets
|
37.7
|
39.8
|
|
|
|
|
|
Key facts
|
|
|
|
30 day arrears rate - Barclaycard US
|
2.7%
|
2.7%
|
|
US cards customer FICO score distribution
|
|
|
|
<660
|
14%
|
14%
|
|
>660
|
86%
|
86%
|
|
Total number of Barclaycard payments clients
|
c.376,000
|
c.374,000
|
|
Value of payments processed (£bn)2
|
354
|
344
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
15.8%
|
16.5%
|
|
Average allocated tangible equity (£bn)
|
5.3
|
5.0
|
|
Cost: income ratio
|
52%
|
54%
|
|
Loan loss rate (bps)
|
234
|
185
|
|
|
|
|
|
Performance measures excluding
litigation and conduct3
|
£m
|
£m
|
|
Profit before tax
|
1,170
|
1,241
|
(6)
|
Attributable profit
|
842
|
862
|
(2)
|
Return on average allocated tangible equity
|
15.9%
|
17.3%
|
|
Cost: income ratio
|
52%
|
53%
|
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Includes £272bn of merchant acquiring payments.
|
3
|
Refer to pages 62 to 71 for more information and calculations of
performance measures excluding litigation and conduct.
|
Barclays International continued to make good progress on its
strategy in 2019, with an improved performance in CIB and in
CC&P. CIB delivered an RoTE of 8.0%, up 0.9%, with both Markets
and Banking improving their market share1,2 and
demonstrating a disciplined approach to costs. CC&P delivered
an RoTE of 15.9% reflecting continued growth in US co-branded cards
and payments partnerships.
2019 compared to 2018
Income statement
●
|
Profit before tax, excluding litigation and conduct, increased 9%
to £4,234m with an RoTE of 9.3% (2018: 8.7%), reflecting
returns in the CIB of 8.0% (2018: 7.1%) and CC&P of 15.9%
(2018: 17.3%)
|
●
|
The 4% appreciation of average USD against GBP positively impacted
income and profits, and adversely impacted credit impairment
charges and operating expenses
|
●
|
Total income increased to £14,675m (2018:
£14,026m)
|
|
-
|
CIB income increased 5% to £10,231m
|
|
|
-
|
Markets income increased 7% to £5,251m reflecting further
gains in market share in a declining revenue
pool1.
FICC income increased 17% to £3,364m reflecting a strong
performance in rates and growth in securitised products. Equities
income decreased 7% to £1,887m driven by equity derivatives,
which were impacted by reduced client activity. Included in Markets
was a £180m gain related to the Tradeweb position and a net
loss of £77m due to the impact of treasury operations and
hedging counterparty risk
|
|
|
-
|
Banking fees income was stable at £2,535m. The business
continued to gain market share in a declining fee
pool2
|
|
|
-
|
Within Corporate, Transaction banking income increased 3% to
£1,680m reflecting growth in deposits. This was offset by a
decrease in Corporate lending income to £765m (2018:
£878m). Excluding mark-to-market movements on loan hedges,
Corporate lending income was broadly stable
|
|
-
|
CC&P income increased 4% to £4,444m reflecting growth in
US co-branded cards and payments partnerships
|
●
|
Credit impairment charges increased to £1,173m (2018:
£658m)
|
|
-
|
CIB credit impairment charges increased to £157m (2018:
release of £150m) due to the non-recurrence of favourable
macroeconomic scenario updates and single name recoveries in
2018
|
|
-
|
CC&P credit impairment charges increased to £1,016m (2018:
£808m), reflecting the non-recurrence of favourable US
macroeconomic scenario updates in 2018, as well as higher unsecured
gross exposures due to balance growth in cards. Credit metrics
remained stable, with 30 and 90 day arrears rates in US cards of
2.7% (Q418: 2.7%) and 1.4% (Q418: 1.4%) respectively
|
●
|
Operating expenses decreased 2% to £9,337m
|
|
-
|
CIB operating expenses decreased 3% to £7,038m as cost
efficiencies were partially offset by continued
investment
|
|
-
|
CC&P operating expenses increased 2% to £2,299m reflecting
continued investment
|
Balance sheet
●
|
Loans and advances increased £5.6bn to £132.8bn mainly
due to an increase in debt securities
|
●
|
Trading portfolio assets increased £9.3bn to £113.3bn due
to increased trading activity, principally relating to the Equities
business
|
●
|
Derivative financial instrument assets and liabilities increased
£6.8bn to £228.9bn and £9.3bn to £228.9bn
respectively driven by a decrease in major interest rate curves,
partially offset by a decrease in foreign exchange
volumes
|
●
|
Financial assets at fair value through the income statement
decreased £16.3bn to £128.4bn driven by a focus on
capital-efficient secured financing
|
●
|
Other assets decreased £11.2bn to £178.6bn predominantly
due to a reduction in cash at central banks held as part of the
liquidity pool
|
●
|
Deposits at amortised cost increased £12.8bn to £210.0bn
due to increased deposits within CIB including the broadening of
the business across Europe
|
●
|
RWAs decreased to £209.2bn (December 2018: £210.7bn)
driven predominantly by depreciation of USD against
GBP
|
1
|
Data Source: Coalition, FY19 Preliminary Competitor Analysis.
Market share represents Barclays share of the total industry
Revenue Pool. Analysis is based on Barclays internal business
structure and internal revenues.
|
2
|
Data Source: Dealogic, for the period covering 1 January to 31
December 2019.
|
Head Office
|
Year ended
|
Year ended
|
|
31.12.19
|
31.12.18
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
(422)
|
(781)
|
46
|
Net fee, commission and other income
|
26
|
508
|
(95)
|
Total income
|
(396)
|
(273)
|
(45)
|
Credit impairment (charges)/releases
|
(27)
|
16
|
|
Net operating income
|
(423)
|
(257)
|
(65)
|
Operating costs
|
(200)
|
(228)
|
12
|
UK bank levy
|
(11)
|
(13)
|
15
|
Operating expenses
|
(211)
|
(241)
|
12
|
GMP charge
|
-
|
(140)
|
|
Litigation and conduct
|
(151)
|
(1,597)
|
91
|
Total operating expenses
|
(362)
|
(1,978)
|
82
|
Other net income/(expenses)
|
2
|
(2)
|
|
Loss before tax
|
(783)
|
(2,237)
|
65
|
Attributable loss1
|
(636)
|
(2,200)
|
71
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Total assets
|
21.0
|
21.5
|
|
Risk weighted assets
|
11.0
|
26.0
|
|
Period end allocated tangible equity
|
5.6
|
4.9
|
|
|
|
|
|
Performance measures
|
|
|
|
Average allocated tangible equity (£bn)
|
5.1
|
3.1
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
Loss before tax
|
(632)
|
(640)
|
1
|
Attributable loss
|
(525)
|
(642)
|
18
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
2019 compared to 2018
Income statement
●
|
Loss before tax, excluding litigation and conduct was £632m
(2018: £640m). Including litigation and conduct charges of
£151m (2018: £1,597m), loss before tax was £783m
(2018: £2,237m), which reflected the non-recurrence of the
£1,420m Residential Mortgage Backed Securities settlement in
2018
|
●
|
Total income was an expense of £396m (2018: £273m), which
included the funding costs of legacy capital instruments, treasury
items and hedge accounting expenses, partially offset by the
recognition of dividends on Barclays' stake in Absa Group Limited.
The increase in income expense was mainly due to the non-recurrence
of a £155m one-off gain in 2018 from the settlement of
receivables relating to the Lehman Brothers
acquisition
|
Balance sheet
●
|
Average allocated tangible equity increased to £5.1bn (2018:
£3.1bn) mainly due to excess capital held in Head Office as a
result of the Group's average CET1 ratio for 2019 being above the
13.0% used in the allocation of equity to the
businesses
|
●
|
RWAs decreased to £11.0bn (December 2018: £26.0bn) mainly
driven by the removal of the Group's operational risk RWAs
floor
|
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
2,344
|
2,445
|
2,360
|
2,258
|
|
2,296
|
2,388
|
2,190
|
2,188
|
Net fee, commission and other income
|
2,957
|
3,096
|
3,178
|
2,994
|
|
2,777
|
2,741
|
3,386
|
3,170
|
Total income
|
5,301
|
5,541
|
5,538
|
5,252
|
|
5,073
|
5,129
|
5,576
|
5,358
|
Credit impairment charges
|
(523)
|
(461)
|
(480)
|
(448)
|
|
(643)
|
(254)
|
(283)
|
(288)
|
Net operating income
|
4,778
|
5,080
|
5,058
|
4,804
|
|
4,430
|
4,875
|
5,293
|
5,070
|
Operating costs
|
(3,308)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,624)
|
(3,329)
|
(3,310)
|
(3,364)
|
UK bank levy
|
(226)
|
-
|
-
|
-
|
|
(269)
|
-
|
-
|
-
|
Operating expenses
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,893)
|
(3,329)
|
(3,310)
|
(3,364)
|
GMP charge
|
-
|
-
|
-
|
-
|
|
(140)
|
-
|
-
|
-
|
Litigation and conduct
|
(167)
|
(1,568)
|
(53)
|
(61)
|
|
(60)
|
(105)
|
(81)
|
(1,961)
|
Total operating expenses
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
(4,093)
|
(3,434)
|
(3,391)
|
(5,325)
|
Other net income/(expenses)
|
20
|
27
|
27
|
(3)
|
|
37
|
20
|
(7)
|
19
|
Profit/(loss) before tax
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
1,461
|
1,895
|
(236)
|
Tax charge1
|
(189)
|
(269)
|
(297)
|
(248)
|
|
(75)
|
(192)
|
(386)
|
(258)
|
Profit/(loss) after tax
|
908
|
(23)
|
1,234
|
1,235
|
|
299
|
1,269
|
1,509
|
(494)
|
Non-controlling interests
|
(42)
|
(4)
|
(17)
|
(17)
|
|
(83)
|
(43)
|
(55)
|
(53)
|
Other equity instrument holders
|
(185)
|
(265)
|
(183)
|
(180)
|
|
(230)
|
(176)
|
(175)
|
(171)
|
Attributable
profit/(loss)1
|
681
|
(292)
|
1,034
|
1,038
|
|
(14)
|
1,050
|
1,279
|
(718)
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
5.9%
|
(2.4%)
|
9.0%
|
9.2%
|
|
(0.1%)
|
9.4%
|
11.8%
|
(6.5%)
|
Average tangible shareholders' equity (£bn)
|
46.4
|
48.4
|
46.2
|
45.2
|
|
44.3
|
44.6
|
43.5
|
44.2
|
Cost: income ratio
|
70%
|
88%
|
64%
|
63%
|
|
81%
|
67%
|
61%
|
99%
|
Loan loss rate (bps)
|
60
|
52
|
56
|
54
|
|
77
|
30
|
35
|
36
|
Basic earnings/(loss) per share
|
3.9p
|
(1.7p)
|
6.0p
|
6.1p
|
|
(0.1p)
|
6.1p
|
7.5p
|
(4.2p)
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Profit before tax
|
1,264
|
1,814
|
1,584
|
1,544
|
|
434
|
1,566
|
1,976
|
1,725
|
Attributable profit
|
803
|
1,233
|
1,074
|
1,084
|
|
48
|
1,135
|
1,338
|
1,212
|
Return on average tangible shareholders' equity
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
0.4%
|
10.2%
|
12.3%
|
11.0%
|
Cost: income ratio
|
67%
|
59%
|
63%
|
62%
|
|
79%
|
65%
|
59%
|
63%
|
Basic earnings per share
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
0.3p
|
6.6p
|
7.8p
|
7.1p
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital
management3
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
1,140.2
|
1,290.4
|
1,232.8
|
1,193.5
|
|
1,133.3
|
1,170.8
|
1,149.6
|
1,142.2
|
Tangible net asset value per share
|
262p
|
274p
|
275p
|
266p
|
|
262p
|
260p
|
259p
|
251p
|
Common equity tier 1 ratio
|
13.8%
|
13.4%
|
13.4%
|
13.0%
|
|
13.2%
|
13.2%
|
13.0%
|
12.7%
|
Common equity tier 1 capital
|
40.8
|
41.9
|
42.9
|
41.4
|
|
41.1
|
41.7
|
41.4
|
40.2
|
Risk weighted assets
|
295.1
|
313.3
|
319.1
|
319.7
|
|
311.9
|
316.2
|
319.3
|
317.9
|
Average UK leverage ratio
|
4.5%
|
4.6%
|
4.7%
|
4.6%
|
|
4.5%
|
4.6%
|
4.6%
|
4.6%
|
Average UK leverage exposure
|
1,142.8
|
1,171.2
|
1,134.6
|
1,105.5
|
|
1,110.0
|
1,119.0
|
1,081.8
|
1,089.9
|
UK leverage ratio
|
5.1%
|
4.8%
|
5.1%
|
4.9%
|
|
5.1%
|
4.9%
|
4.9%
|
4.8%
|
UK leverage exposure
|
1,007.7
|
1,099.8
|
1,079.4
|
1,065.0
|
|
998.6
|
1,063.5
|
1,030.1
|
1,030.8
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
211
|
226
|
238
|
232
|
|
227
|
213
|
214
|
207
|
Liquidity coverage ratio
|
160%
|
151%
|
156%
|
160%
|
|
169%
|
161%
|
154%
|
147%
|
Loan: deposit ratio
|
82%
|
82%
|
82%
|
80%
|
|
83%
|
83%
|
83%
|
84%
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
3
|
Refer to pages 41 to 46 for further information on how capital,
RWAs and leverage are calculated.
|
Quarterly Results by Business
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,478
|
1,503
|
1,438
|
1,469
|
|
1,513
|
1,529
|
1,493
|
1,493
|
Net fee, commission and other income
|
481
|
343
|
333
|
308
|
|
350
|
367
|
343
|
295
|
Total income
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
1,896
|
1,836
|
1,788
|
Credit impairment charges
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
(115)
|
(214)
|
(201)
|
Net operating income
|
1,769
|
1,745
|
1,541
|
1,586
|
|
1,567
|
1,781
|
1,622
|
1,587
|
Operating costs
|
(1,023)
|
(952)
|
(1,022)
|
(999)
|
|
(1,114)
|
(988)
|
(968)
|
(1,005)
|
UK bank levy
|
(41)
|
-
|
-
|
-
|
|
(46)
|
-
|
-
|
-
|
Operating expenses
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
(1,160)
|
(988)
|
(968)
|
(1,005)
|
Litigation and conduct
|
(58)
|
(1,480)
|
(41)
|
(3)
|
|
(15)
|
(54)
|
(3)
|
(411)
|
Total operating expenses
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
(1,175)
|
(1,042)
|
(971)
|
(1,416)
|
Other net (expenses)/income
|
-
|
-
|
(1)
|
1
|
|
(2)
|
1
|
5
|
(1)
|
Profit/(loss) before tax
|
647
|
(687)
|
477
|
585
|
|
390
|
740
|
656
|
170
|
Attributable profit/(loss)1
|
438
|
(907)
|
328
|
422
|
|
241
|
510
|
473
|
(26)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
186.7
|
185.3
|
184.3
|
Total assets
|
257.8
|
257.9
|
259.0
|
253.1
|
|
249.7
|
252.0
|
245.9
|
235.2
|
Customer deposits at amortised cost
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
195.8
|
194.3
|
192.0
|
Loan: deposit ratio
|
96%
|
97%
|
97%
|
96%
|
|
96%
|
96%
|
96%
|
96%
|
Risk weighted assets
|
74.9
|
76.8
|
76.2
|
76.6
|
|
75.2
|
74.8
|
75.0
|
72.5
|
Period end allocated tangible equity
|
10.3
|
10.4
|
10.3
|
10.5
|
|
10.2
|
10.1
|
10.2
|
9.8
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
17.0%
|
(34.9%)
|
12.7%
|
16.3%
|
|
9.6%
|
20.1%
|
18.8%
|
(1.1%)
|
Average allocated tangible equity (£bn)
|
10.3
|
10.4
|
10.3
|
10.4
|
|
10.1
|
10.1
|
10.1
|
9.8
|
Cost: income ratio
|
57%
|
132%
|
60%
|
56%
|
|
63%
|
55%
|
53%
|
79%
|
Loan loss rate (bps)
|
38
|
20
|
47
|
40
|
|
61
|
24
|
45
|
43
|
Net interest margin
|
3.03%
|
3.10%
|
3.05%
|
3.18%
|
|
3.20%
|
3.22%
|
3.22%
|
3.27%
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Profit before tax
|
705
|
793
|
518
|
588
|
|
405
|
794
|
659
|
581
|
Attributable profit
|
481
|
550
|
358
|
424
|
|
253
|
558
|
474
|
385
|
Return on average allocated tangible equity
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
10.1%
|
22.0%
|
18.8%
|
15.7%
|
Cost: income ratio
|
54%
|
52%
|
58%
|
56%
|
|
62%
|
52%
|
53%
|
56%
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays UK
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal Banking
|
1,064
|
1,035
|
946
|
964
|
|
998
|
1,021
|
1,015
|
972
|
Barclaycard Consumer UK
|
533
|
472
|
497
|
490
|
|
522
|
551
|
504
|
527
|
Business Banking
|
362
|
339
|
328
|
323
|
|
343
|
324
|
317
|
289
|
Total income
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
1,896
|
1,836
|
1,788
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(71)
|
(36)
|
(36)
|
(52)
|
|
(44)
|
(8)
|
(49)
|
(72)
|
Barclaycard Consumer UK
|
(108)
|
(49)
|
(175)
|
(140)
|
|
(250)
|
(88)
|
(139)
|
(113)
|
Business Banking
|
(11)
|
(16)
|
(19)
|
1
|
|
(2)
|
(19)
|
(26)
|
(16)
|
Total credit impairment charges
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
(115)
|
(214)
|
(201)
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
151.9
|
150.1
|
147.3
|
145.9
|
|
146.0
|
145.4
|
143.6
|
142.1
|
Barclaycard Consumer UK
|
14.7
|
14.9
|
15.1
|
15.0
|
|
15.3
|
15.3
|
15.2
|
15.2
|
Business Banking
|
27.1
|
28.2
|
26.7
|
26.6
|
|
26.3
|
26.0
|
26.5
|
27.0
|
Total loans and advances to customers at amortised
cost
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
186.7
|
185.3
|
184.3
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
159.2
|
157.9
|
156.3
|
154.1
|
|
154.0
|
153.4
|
152.9
|
151.9
|
Barclaycard Consumer UK
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
Business Banking
|
46.3
|
45.4
|
44.6
|
43.2
|
|
43.3
|
42.4
|
41.4
|
40.1
|
Total customer deposits at amortised cost
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
195.8
|
194.3
|
192.0
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
965
|
1,059
|
1,017
|
900
|
|
984
|
965
|
853
|
1,013
|
Net trading income
|
929
|
1,110
|
1,016
|
1,144
|
|
837
|
1,103
|
1,094
|
1,416
|
Net fee, commission and other income
|
1,558
|
1,581
|
1,870
|
1,526
|
|
1,400
|
1,222
|
1,760
|
1,379
|
Total income
|
3,452
|
3,750
|
3,903
|
3,570
|
|
3,221
|
3,290
|
3,707
|
3,808
|
Credit impairment charges
|
(329)
|
(352)
|
(247)
|
(245)
|
|
(354)
|
(143)
|
(68)
|
(93)
|
Net operating income
|
3,123
|
3,398
|
3,656
|
3,325
|
|
2,867
|
3,147
|
3,639
|
3,715
|
Operating costs
|
(2,240)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,441)
|
(2,277)
|
(2,306)
|
(2,300)
|
UK bank levy
|
(174)
|
-
|
-
|
-
|
|
(210)
|
-
|
-
|
-
|
Operating expenses
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,651)
|
(2,277)
|
(2,306)
|
(2,300)
|
Litigation and conduct
|
(86)
|
-
|
(11)
|
(19)
|
|
(33)
|
(32)
|
(47)
|
(15)
|
Total operating expenses
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
(2,684)
|
(2,309)
|
(2,353)
|
(2,315)
|
Other net income
|
17
|
21
|
13
|
18
|
|
32
|
12
|
11
|
13
|
Profit before tax
|
640
|
1,137
|
1,223
|
1,118
|
|
215
|
850
|
1,297
|
1,413
|
Attributable profit/(loss)1
|
397
|
799
|
832
|
788
|
|
(21)
|
687
|
926
|
1,007
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
132.8
|
138.1
|
134.8
|
130.9
|
|
127.2
|
132.4
|
125.5
|
117.5
|
Trading portfolio assets
|
113.3
|
119.4
|
120.0
|
117.2
|
|
104.0
|
124.6
|
116.5
|
114.9
|
Derivative financial instrument assets
|
228.9
|
286.0
|
243.8
|
217.3
|
|
222.1
|
214.8
|
228.2
|
214.1
|
Financial assets at fair value through the income
statement
|
128.4
|
158.0
|
154.7
|
153.5
|
|
144.7
|
147.8
|
141.2
|
150.6
|
Cash collateral and settlement balances
|
79.4
|
112.5
|
101.3
|
97.8
|
|
74.3
|
94.3
|
91.5
|
82.6
|
Other assets
|
178.6
|
195.6
|
196.8
|
202.3
|
|
189.8
|
186.3
|
183.6
|
186.9
|
Total assets
|
861.4
|
1,009.6
|
951.4
|
919.0
|
|
862.1
|
900.2
|
886.5
|
866.6
|
Deposits at amortised cost
|
210.0
|
217.6
|
212.0
|
215.5
|
|
197.2
|
200.3
|
191.0
|
167.2
|
Derivative financial instrument liabilities
|
228.9
|
283.3
|
243.0
|
213.5
|
|
219.6
|
213.7
|
224.9
|
210.8
|
Loan: deposit ratio
|
63%
|
63%
|
64%
|
61%
|
|
65%
|
66%
|
66%
|
70%
|
Risk weighted assets
|
209.2
|
223.1
|
214.8
|
216.1
|
|
210.7
|
214.6
|
218.0
|
214.2
|
Period end allocated tangible equity
|
29.6
|
31.4
|
30.2
|
30.6
|
|
29.9
|
30.2
|
30.5
|
30.0
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
5.1%
|
9.9%
|
10.7%
|
10.4%
|
|
(0.3%)
|
8.8%
|
11.8%
|
13.4%
|
Average allocated tangible equity (£bn)
|
30.9
|
32.2
|
31.1
|
30.5
|
|
31.3
|
31.1
|
31.4
|
30.1
|
Cost: income ratio
|
72%
|
61%
|
63%
|
62%
|
|
83%
|
70%
|
63%
|
61%
|
Loan loss rate (bps)
|
96
|
99
|
72
|
73
|
|
107
|
41
|
22
|
31
|
Net interest margin
|
4.29%
|
4.10%
|
3.91%
|
3.99%
|
|
3.98%
|
3.87%
|
4.03%
|
4.57%
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Profit before tax
|
726
|
1,137
|
1,234
|
1,137
|
|
248
|
882
|
1,344
|
1,428
|
Attributable profit
|
461
|
801
|
840
|
804
|
|
13
|
713
|
960
|
1,019
|
Return on average allocated tangible equity
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
0.2%
|
9.2%
|
12.2%
|
13.6%
|
Cost: income ratio
|
70%
|
61%
|
62%
|
62%
|
|
82%
|
69%
|
62%
|
60%
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
FICC
|
726
|
816
|
920
|
902
|
|
570
|
688
|
736
|
869
|
Equities
|
409
|
494
|
517
|
467
|
|
375
|
471
|
601
|
590
|
Markets
|
1,135
|
1,310
|
1,437
|
1,369
|
|
945
|
1,159
|
1,337
|
1,459
|
Advisory
|
202
|
221
|
221
|
132
|
|
242
|
151
|
168
|
147
|
Equity capital markets
|
56
|
86
|
104
|
83
|
|
53
|
55
|
90
|
102
|
Debt capital markets
|
322
|
381
|
373
|
354
|
|
330
|
313
|
446
|
434
|
Banking fees
|
580
|
688
|
698
|
569
|
|
625
|
519
|
704
|
683
|
Corporate lending
|
202
|
195
|
216
|
152
|
|
243
|
197
|
198
|
240
|
Transaction banking
|
397
|
424
|
444
|
415
|
|
412
|
416
|
385
|
414
|
Corporate
|
599
|
619
|
660
|
567
|
|
655
|
613
|
583
|
654
|
Other
|
-
|
-
|
-
|
-
|
|
(74)
|
(56)
|
(44)
|
3
|
Total income
|
2,314
|
2,617
|
2,795
|
2,505
|
|
2,151
|
2,235
|
2,580
|
2,799
|
Credit impairment (charges)/releases
|
(30)
|
(31)
|
(44)
|
(52)
|
|
(35)
|
3
|
23
|
159
|
Net operating income
|
2,284
|
2,586
|
2,751
|
2,453
|
|
2,116
|
2,238
|
2,603
|
2,958
|
Operating costs
|
(1,691)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(1,835)
|
(1,712)
|
(1,773)
|
(1,773)
|
UK bank levy
|
(156)
|
-
|
-
|
-
|
|
(188)
|
-
|
-
|
-
|
Operating expenses
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(2,023)
|
(1,712)
|
(1,773)
|
(1,773)
|
Litigation and conduct
|
(79)
|
(4)
|
(7)
|
(19)
|
|
(23)
|
(32)
|
-
|
(13)
|
Total operating expenses
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
(2,046)
|
(1,744)
|
(1,773)
|
(1,786)
|
Other net income
|
1
|
12
|
3
|
12
|
|
15
|
4
|
5
|
3
|
Profit before tax
|
359
|
882
|
887
|
827
|
|
85
|
498
|
835
|
1,175
|
Attributable profit/(loss)1
|
193
|
609
|
596
|
582
|
|
(84)
|
431
|
600
|
834
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
92.0
|
95.8
|
92.1
|
90.6
|
|
86.4
|
93.3
|
87.8
|
81.3
|
Trading portfolio assets
|
113.3
|
119.3
|
119.9
|
117.2
|
|
104.0
|
124.5
|
116.5
|
114.9
|
Derivative financial instruments assets
|
228.8
|
286.0
|
243.7
|
217.3
|
|
222.1
|
214.8
|
228.1
|
214.2
|
Financial assets at fair value through the income
statement
|
127.7
|
157.3
|
154.1
|
152.9
|
|
144.2
|
147.3
|
140.7
|
150.2
|
Cash collateral and settlement balances
|
78.5
|
111.6
|
100.4
|
96.9
|
|
73.4
|
93.3
|
90.6
|
81.1
|
Other assets
|
155.3
|
171.5
|
168.1
|
163.2
|
|
160.4
|
153.8
|
151.6
|
159.8
|
Total assets
|
795.6
|
941.5
|
878.3
|
838.1
|
|
790.5
|
827.0
|
815.3
|
801.5
|
Deposits at amortised cost
|
146.2
|
152.1
|
145.4
|
151.4
|
|
136.3
|
137.6
|
130.3
|
107.6
|
Derivative financial instrument liabilities
|
228.9
|
283.2
|
242.9
|
213.5
|
|
219.6
|
213.7
|
224.9
|
210.9
|
Risk weighted assets
|
171.5
|
184.9
|
175.9
|
176.6
|
|
170.9
|
175.9
|
180.4
|
181.3
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
3.0%
|
9.1%
|
9.2%
|
9.3%
|
|
(1.3%)
|
6.6%
|
9.1%
|
13.0%
|
Average allocated tangible equity (£bn)
|
25.8
|
26.9
|
25.8
|
25.1
|
|
26.0
|
25.9
|
26.4
|
25.6
|
Cost: income ratio
|
83%
|
66%
|
67%
|
65%
|
|
95%
|
78%
|
69%
|
64%
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Profit before tax
|
438
|
886
|
894
|
846
|
|
108
|
530
|
835
|
1,188
|
Attributable profit/(loss)
|
251
|
614
|
601
|
598
|
|
(57)
|
456
|
600
|
844
|
Return on average allocated tangible equity
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
(0.9%)
|
7.0%
|
9.1%
|
13.2%
|
Cost: income ratio
|
80%
|
65%
|
67%
|
65%
|
|
94%
|
77%
|
69%
|
63%
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
717
|
720
|
720
|
665
|
|
664
|
691
|
699
|
677
|
Net fee, commission, trading and other income
|
421
|
413
|
388
|
400
|
|
406
|
364
|
428
|
332
|
Total income
|
1,138
|
1,133
|
1,108
|
1,065
|
|
1,070
|
1,055
|
1,127
|
1,009
|
Credit impairment charges
|
(299)
|
(321)
|
(203)
|
(193)
|
|
(319)
|
(146)
|
(91)
|
(252)
|
Net operating income
|
839
|
812
|
905
|
872
|
|
751
|
909
|
1,036
|
757
|
Operating costs
|
(549)
|
(570)
|
(575)
|
(587)
|
|
(606)
|
(565)
|
(533)
|
(527)
|
UK bank levy
|
(18)
|
-
|
-
|
-
|
|
(22)
|
-
|
-
|
-
|
Operating expenses
|
(567)
|
(570)
|
(575)
|
(587)
|
|
(628)
|
(565)
|
(533)
|
(527)
|
Litigation and conduct
|
(7)
|
4
|
(4)
|
-
|
|
(10)
|
-
|
(47)
|
(2)
|
Total operating expenses
|
(574)
|
(566)
|
(579)
|
(587)
|
|
(638)
|
(565)
|
(580)
|
(529)
|
Other net income
|
16
|
9
|
10
|
6
|
|
17
|
8
|
6
|
10
|
Profit before tax
|
281
|
255
|
336
|
291
|
|
130
|
352
|
462
|
238
|
Attributable profit1
|
204
|
190
|
236
|
206
|
|
63
|
256
|
326
|
173
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
40.8
|
42.3
|
42.7
|
40.3
|
|
40.8
|
39.1
|
37.7
|
36.2
|
Total assets
|
65.8
|
68.1
|
73.1
|
80.9
|
|
71.6
|
73.2
|
71.2
|
65.1
|
Deposits at amortised cost
|
63.8
|
65.5
|
66.6
|
64.1
|
|
60.9
|
62.7
|
60.7
|
59.6
|
Risk weighted assets
|
37.7
|
38.2
|
38.9
|
39.5
|
|
39.8
|
38.7
|
37.6
|
32.9
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
15.9%
|
14.2%
|
17.8%
|
15.4%
|
|
4.8%
|
19.8%
|
26.2%
|
15.6%
|
Average allocated tangible equity (£bn)
|
5.1
|
5.3
|
5.3
|
5.4
|
|
5.3
|
5.2
|
5.0
|
4.5
|
Cost: income ratio
|
50%
|
50%
|
52%
|
55%
|
|
60%
|
54%
|
51%
|
52%
|
Loan loss rate (bps)
|
273
|
283
|
180
|
182
|
|
290
|
138
|
90
|
263
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Profit before tax
|
288
|
251
|
340
|
291
|
|
140
|
352
|
509
|
240
|
Attributable profit
|
210
|
187
|
239
|
206
|
|
70
|
257
|
360
|
175
|
Return on average allocated tangible equity
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
5.4%
|
19.9%
|
28.9%
|
15.7%
|
Cost: income ratio
|
50%
|
50%
|
52%
|
55%
|
|
59%
|
54%
|
47%
|
52%
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
Q218
|
Q118
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
(99)
|
(117)
|
(95)
|
(111)
|
|
(201)
|
(106)
|
(156)
|
(318)
|
Net fee, commission and other income
|
(11)
|
62
|
(41)
|
16
|
|
190
|
49
|
189
|
80
|
Total income
|
(110)
|
(55)
|
(136)
|
(95)
|
|
(11)
|
(57)
|
33
|
(238)
|
Credit impairment (charges)/releases
|
(4)
|
(8)
|
(3)
|
(12)
|
|
7
|
4
|
(1)
|
6
|
Net operating (expenses)/income
|
(114)
|
(63)
|
(139)
|
(107)
|
|
(4)
|
(53)
|
32
|
(232)
|
Operating costs
|
(45)
|
(59)
|
(44)
|
(52)
|
|
(69)
|
(64)
|
(36)
|
(59)
|
UK bank levy
|
(11)
|
-
|
-
|
-
|
|
(13)
|
-
|
-
|
-
|
Operating expenses
|
(56)
|
(59)
|
(44)
|
(52)
|
|
(82)
|
(64)
|
(36)
|
(59)
|
GMP charge
|
-
|
-
|
-
|
-
|
|
(140)
|
-
|
-
|
-
|
Litigation and conduct
|
(23)
|
(88)
|
(1)
|
(39)
|
|
(12)
|
(19)
|
(31)
|
(1,535)
|
Total operating expenses
|
(79)
|
(147)
|
(45)
|
(91)
|
|
(234)
|
(83)
|
(67)
|
(1,594)
|
Other net income/(expenses)
|
3
|
6
|
15
|
(22)
|
|
7
|
7
|
(23)
|
7
|
Loss before tax
|
(190)
|
(204)
|
(169)
|
(220)
|
|
(231)
|
(129)
|
(58)
|
(1,819)
|
Attributable loss1
|
(154)
|
(184)
|
(126)
|
(172)
|
|
(234)
|
(147)
|
(120)
|
(1,699)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
21.0
|
22.9
|
22.4
|
21.4
|
|
21.5
|
18.6
|
17.2
|
40.4
|
Risk weighted assets
|
11.0
|
13.4
|
28.1
|
27.0
|
|
26.0
|
26.8
|
26.3
|
31.2
|
Period end allocated tangible equity
|
5.6
|
5.5
|
7.0
|
4.5
|
|
4.9
|
4.2
|
3.6
|
3.0
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
5.2
|
5.8
|
4.8
|
4.3
|
|
2.9
|
3.4
|
2.0
|
4.3
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Loss before tax
|
(167)
|
(116)
|
(168)
|
(181)
|
|
(219)
|
(110)
|
(27)
|
(284)
|
Attributable loss
|
(139)
|
(118)
|
(124)
|
(144)
|
|
(218)
|
(136)
|
(96)
|
(192)
|
1
|
From 2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
|
2
|
Refer to pages 62 to 71 for further information and calculations of
performance measures excluding litigation and conduct.
|
Performance Management
Margins and balances
|
|
|
|
|
|
|
|
Year ended 31.12.19
|
Year ended 31.12.181
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
5,888
|
190,849
|
3.09
|
6,028
|
186,881
|
3.23
|
Barclays International2
|
4,021
|
98,824
|
4.07
|
3,966
|
96,434
|
4.11
|
Total Barclays UK and Barclays International
|
9,909
|
289,673
|
3.42
|
9,994
|
283,315
|
3.53
|
Other3
|
(502)
|
|
|
(932)
|
|
|
Total Barclays Group
|
9,407
|
|
|
9,062
|
|
|
1
|
The Group's treasury results are reported directly within Barclays
UK and Barclays International from Q218 following ring-fencing,
resulting in gains and losses made on certain activities being
recognised as Other income, rather than in Net interest
income.
|
2
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
3
|
Other includes Head Office and non-lending related investment
banking businesses not included in Barclays International
margins.
|
The Group NIM decreased 11bps to 3.42% and Barclays UK NIM
decreased 14bps to 3.09%, primarily reflecting increased
refinancing activity by mortgage customers and competitive
pressure, lower IEL in UK cards and the mix effect from growth in
secured lending.
The Group combined product and equity structural hedge notional as
at 31 December 2019 was £171bn, with an average duration of
2.5 to 3 years. Group net interest income includes gross structural
hedge contributions of £1.8bn (2018: £1.7bn) and net
structural hedge contributions of £0.5bn (2018: £0.8bn).
Gross structural hedge contributions represent the absolute level
of interest earned from the fixed receipts on the basket of 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 for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Three months ended 31.12.19
|
£m
|
£m
|
%
|
Barclays UK
|
1,478
|
193,610
|
3.03
|
Barclays International1
|
1,036
|
95,819
|
4.29
|
Total Barclays UK and Barclays International
|
2,514
|
289,429
|
3.45
|
|
|
|
|
Three months ended 30.09.19
|
|
|
|
Barclays UK
|
1,503
|
192,262
|
3.10
|
Barclays International1
|
1,038
|
100,589
|
4.10
|
Total Barclays UK and Barclays International
|
2,541
|
292,851
|
3.44
|
|
|
|
|
Three months ended 30.06.19
|
|
|
|
Barclays UK
|
1,438
|
189,172
|
3.05
|
Barclays International1
|
980
|
100,645
|
3.91
|
Total Barclays UK and Barclays International
|
2,418
|
289,817
|
3.35
|
|
|
|
|
Three months ended 31.03.19
|
|
|
|
Barclays UK
|
1,469
|
187,570
|
3.18
|
Barclays International1
|
967
|
98,313
|
3.99
|
Total Barclays UK and Barclays International
|
2,436
|
285,883
|
3.46
|
|
|
|
|
Three months ended 31.12.18
|
|
|
|
Barclays UK
|
1,513
|
187,813
|
3.20
|
Barclays International1
|
994
|
99,137
|
3.98
|
Total Barclays UK and Barclays International
|
2,507
|
286,950
|
3.47
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
Remuneration
Deferred bonuses are payable only once an employee meets certain
conditions, including a specified period of 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 85-123 of the
Barclays PLC Annual Report 2019 for further detail on remuneration.
The table below includes the other elements of compensation and
staff costs.
|
Year ended
|
Year ended
|
|
|
31.12.19
|
31.12.18
|
|
|
£m
|
£m
|
% Change
|
Incentive awards granted:
|
|
|
|
Current year bonus
|
1,008
|
1,067
|
6
|
Deferred bonus
|
429
|
515
|
17
|
Commissions and other incentives
|
53
|
67
|
21
|
Total incentive awards granted
|
1,490
|
1,649
|
10
|
|
|
|
|
Reconciliation of incentive awards granted to income statement
charge:
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(293)
|
(359)
|
18
|
Add: current year charges for deferred bonuses from previous
years
|
308
|
299
|
(3)
|
Other differences between incentive awards granted and income
statement charge
|
(48)
|
(33)
|
(45)
|
Income statement charge for performance costs
|
1,457
|
1,556
|
6
|
|
|
|
|
Other income statement charges:
|
|
|
|
Salaries
|
4,332
|
4,200
|
(3)
|
Social security costs
|
573
|
558
|
(3)
|
Post-retirement benefits1
|
501
|
619
|
19
|
Other compensation costs
|
480
|
413
|
(16)
|
Total compensation
costs2
|
7,343
|
7,346
|
-
|
|
|
|
|
Other resourcing costs:
|
|
|
|
Outsourcing
|
433
|
594
|
27
|
Redundancy and restructuring
|
132
|
133
|
1
|
Temporary staff costs
|
256
|
386
|
34
|
Other
|
151
|
170
|
11
|
Total other resourcing costs
|
972
|
1,283
|
24
|
|
|
|
|
Total staff costs
|
8,315
|
8,629
|
4
|
|
|
|
|
Group compensation costs as a % of
total income3
|
33.9
|
34.1
|
|
Group staff costs as a % of total
income3
|
38.4
|
40.2
|
|
1
|
Post-retirement benefits charge includes £270m (2018:
£236m) in respect of defined contribution schemes and
£231m (2018: £383m) in respect of defined benefit
schemes.
|
2
|
£439m (2018: £296m) of Group
compensation was capitalised as internally
generated software.
|
3
|
Comparative excludes a GMP charge of £140m.
|
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
|
2021 and
|
|
31.12.18
|
31.12.19
|
|
31.12.20
|
beyond
|
|
£m
|
£m
|
|
£m
|
£m
|
Deferred bonuses from 2016 and earlier bonus pools
|
169
|
56
|
|
7
|
-
|
Deferred bonuses from 2017 bonus pool
|
130
|
83
|
|
39
|
6
|
Deferred bonuses from 2018 bonus pool
|
156
|
169
|
|
98
|
59
|
Deferred bonuses from 2019 bonus pool
|
-
|
136
|
|
129
|
121
|
Income statement charge for deferred bonuses
|
455
|
444
|
|
273
|
186
|
1
|
The actual amount charged depends upon whether conditions have been
met and will vary compared with the above expectation.
|
2
|
Does not include the impact of grants which will be made in 2020
and beyond.
|
Charging of deferred bonus
profile1
|
Grant date
|
Expected payment
date(s)2
|
Year
|
Income statement charge profile of
2019 awards3,4
|
March 2020
|
|
2019
|
35%
|
|
|
2020
|
34%
|
|
March 2021 (33.3%)
|
2021
|
21%
|
|
March 2022 (33.3%)
|
2022
|
9%
|
|
March 2023 (33.3%)
|
2023
|
1%
|
1
|
Represents a typical vesting schedule for deferred awards. Certain
awards may be subject to 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 including 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 identified
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 eight principal
risks: credit risk; market risk; treasury and capital risk;
operational risk; conduct risk; reputation risk; model risk; and
legal risk. Further detail on these risks and how they are managed
is available in the Barclays PLC Annual Report 2019 or online
at home.barclays/annualreport. The
risks associated with the process of the UK withdrawal from the
European Union continue to be closely monitored. Impairment stock
as at 31 December 2019 continues to include an adjustment of
£150m representing the anticipated impact of the economic
uncertainty in the UK.
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 stage
The table below presents an analysis of loans and advances at
amortised cost by gross exposure, impairment allowance, impairment
charge and coverage ratio by stage allocation and business segment
as at 31 December 2019. Also included are off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio by stage allocation as at
31 December 2019.
Impairment allowance under IFRS 9 considers both the drawn and the
undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to the drawn exposure to the
extent that the allowance does not exceed the exposure as ECL is
not reported separately. Any excess is reported on the liability
side of the balance sheet as a provision. For wholesale portfolios,
the impairment allowance on the undrawn exposure is reported on the
liability side of the balance sheet as a provision.
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
143,097
|
23,198
|
2,446
|
168,741
|
|
198
|
1,277
|
974
|
2,449
|
166,292
|
Barclays International
|
27,886
|
4,026
|
1,875
|
33,787
|
|
352
|
774
|
1,359
|
2,485
|
31,302
|
Head Office
|
4,803
|
500
|
826
|
6,129
|
|
5
|
36
|
305
|
346
|
5,783
|
Total Barclays Group retail
|
175,786
|
27,724
|
5,147
|
208,657
|
|
555
|
2,087
|
2,638
|
5,280
|
203,377
|
Barclays UK
|
27,891
|
2,397
|
1,124
|
31,412
|
|
16
|
38
|
108
|
162
|
31,250
|
Barclays International1
|
92,615
|
8,113
|
1,615
|
102,343
|
|
136
|
248
|
447
|
831
|
101,512
|
Head Office
|
2,974
|
-
|
37
|
3,011
|
|
-
|
-
|
35
|
35
|
2,976
|
Total Barclays Group wholesale
|
123,480
|
10,510
|
2,776
|
136,766
|
|
152
|
286
|
590
|
1,028
|
135,738
|
Total loans and advances at amortised cost
|
299,266
|
38,234
|
7,923
|
345,423
|
|
707
|
2,373
|
3,228
|
6,308
|
339,115
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
321,140
|
19,185
|
935
|
341,260
|
|
97
|
170
|
55
|
322
|
340,938
|
Total3
|
620,406
|
57,419
|
8,858
|
686,683
|
|
804
|
2,543
|
3,283
|
6,630
|
680,053
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
Year ended 31.12.19
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss rate
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
Barclays UK
|
0.1
|
5.5
|
39.8
|
1.5
|
|
|
661
|
|
39
|
|
Barclays International
|
1.3
|
19.2
|
72.5
|
7.4
|
|
|
999
|
|
296
|
|
Head Office
|
0.1
|
7.2
|
36.9
|
5.6
|
|
|
27
|
|
44
|
|
Total Barclays Group retail
|
0.3
|
7.5
|
51.3
|
2.5
|
|
|
1,687
|
|
81
|
|
Barclays UK
|
0.1
|
1.6
|
9.6
|
0.5
|
|
|
33
|
|
11
|
|
Barclays International1
|
0.1
|
3.1
|
27.7
|
0.8
|
|
|
113
|
|
11
|
|
Head Office
|
-
|
-
|
94.6
|
1.2
|
|
|
-
|
|
-
|
|
Total Barclays Group wholesale
|
0.1
|
2.7
|
21.3
|
0.8
|
|
|
146
|
|
11
|
|
Total loans and advances at amortised cost
|
0.2
|
6.2
|
40.7
|
1.8
|
|
|
1,833
|
|
53
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
-
|
0.9
|
5.9
|
0.1
|
|
|
71
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
8
|
|
|
|
Total4
|
0.1
|
4.4
|
37.1
|
1.0
|
|
|
1,912
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual customer exposure basis.
|
2
|
Excludes loan commitments and financial guarantees of £17.7bn
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
£149.3bn and impairment allowance of £24m. This comprises
£12m Expected Credit Loss (ECL) on £148.5bn stage 1
assets, £2m on £0.8bn stage 2 fair value through other
comprehensive income assets, cash collateral and settlement
balances and £10m on £10m stage 3 other
assets.
|
4
|
The loan loss rate is 55bps after applying the total impairment
charge of £1,912m.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.18
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
134,911
|
25,279
|
3,040
|
163,230
|
|
183
|
1,389
|
1,152
|
2,724
|
160,506
|
Barclays International
|
26,714
|
4,634
|
1,830
|
33,178
|
|
352
|
965
|
1,315
|
2,632
|
30,546
|
Head Office
|
6,510
|
636
|
938
|
8,084
|
|
9
|
47
|
306
|
362
|
7,722
|
Total Barclays Group retail
|
168,135
|
30,549
|
5,808
|
204,492
|
|
544
|
2,401
|
2,773
|
5,718
|
198,774
|
Barclays UK
|
22,824
|
4,144
|
1,272
|
28,240
|
|
16
|
70
|
117
|
203
|
28,037
|
Barclays International1
|
87,344
|
8,754
|
1,382
|
97,480
|
|
128
|
244
|
439
|
811
|
96,669
|
Head Office
|
2,923
|
-
|
41
|
2,964
|
|
-
|
-
|
38
|
38
|
2,926
|
Total Barclays Group wholesale
|
113,091
|
12,898
|
2,695
|
128,684
|
|
144
|
314
|
594
|
1,052
|
127,632
|
Total loans and advances at amortised cost
|
281,226
|
43,447
|
8,503
|
333,176
|
|
688
|
2,715
|
3,367
|
6,770
|
326,406
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
309,989
|
22,126
|
684
|
332,799
|
|
99
|
150
|
22
|
271
|
332,528
|
Total3
|
591,215
|
65,573
|
9,187
|
665,975
|
|
787
|
2,865
|
3,389
|
7,041
|
658,934
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.18
|
|
Year ended 31.12.18
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss rate
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
|
bps
|
|
Barclays UK
|
0.1
|
5.5
|
37.9
|
1.7
|
|
|
830
|
|
51
|
|
Barclays International
|
1.3
|
20.8
|
71.9
|
7.9
|
|
|
844
|
|
254
|
|
Head Office
|
0.1
|
7.4
|
32.6
|
4.5
|
|
|
15
|
|
19
|
|
Total Barclays Group retail
|
0.3
|
7.9
|
47.7
|
2.8
|
|
|
1,689
|
|
83
|
|
Barclays UK
|
0.1
|
1.7
|
9.2
|
0.7
|
|
|
74
|
|
26
|
|
Barclays International1
|
0.1
|
2.8
|
31.8
|
0.8
|
|
|
(142)
|
|
-
|
|
Head Office
|
-
|
-
|
92.7
|
1.3
|
|
|
(31)
|
|
-
|
|
Total Barclays Group wholesale
|
0.1
|
2.4
|
22.0
|
0.8
|
|
|
(99)
|
|
-
|
|
Total loans and advances at amortised cost
|
0.2
|
6.2
|
39.6
|
2.0
|
|
|
1,590
|
|
48
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
-
|
0.7
|
3.2
|
0.1
|
|
|
(125)
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
3
|
|
|
|
Total4
|
0.1
|
4.4
|
36.9
|
1.1
|
|
|
1,468
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual customer exposure basis.
|
2
|
Excludes loan commitments and financial guarantees of £11.7bn
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
£129.9bn and impairment allowance of £12m. This comprises
£10m ECL on £129.3bn stage 1 assets and £2m on
£0.6bn stage 2 fair value through other comprehensive income
assets.
|
4
|
The loan loss rate is 44bps after applying the total impairment
charge of £1,468m.
|
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
|
|
Stage 2
|
|
|
As at 31.12.19
|
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
|
Home loans
|
135,713
|
14,733
|
1,585
|
725
|
17,043
|
2,155
|
154,911
|
Credit cards, unsecured loans and other retail lending
|
46,012
|
9,759
|
496
|
504
|
10,759
|
3,409
|
60,180
|
Wholesale loans
|
117,541
|
9,374
|
374
|
684
|
10,432
|
2,359
|
130,332
|
Total
|
299,266
|
33,866
|
2,455
|
1,913
|
38,234
|
7,923
|
345,423
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
22
|
37
|
14
|
13
|
64
|
346
|
432
|
Credit cards, unsecured loans and other retail lending
|
542
|
1,597
|
159
|
251
|
2,007
|
2,335
|
4,884
|
Wholesale loans
|
143
|
284
|
9
|
9
|
302
|
547
|
992
|
Total
|
707
|
1,918
|
182
|
273
|
2,373
|
3,228
|
6,308
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
135,691
|
14,696
|
1,571
|
712
|
16,979
|
1,809
|
154,479
|
Credit cards, unsecured loans and other retail lending
|
45,470
|
8,162
|
337
|
253
|
8,752
|
1,074
|
55,296
|
Wholesale loans
|
117,398
|
9,090
|
365
|
675
|
10,130
|
1,812
|
129,340
|
Total
|
298,559
|
31,948
|
2,273
|
1,640
|
35,861
|
4,695
|
339,115
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
-
|
0.3
|
0.9
|
1.8
|
0.4
|
16.1
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
1.2
|
16.4
|
32.1
|
49.8
|
18.7
|
68.5
|
8.1
|
Wholesale loans
|
0.1
|
3.0
|
2.4
|
1.3
|
2.9
|
23.2
|
0.8
|
Total
|
0.2
|
5.7
|
7.4
|
14.3
|
6.2
|
40.7
|
1.8
|
|
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
130,066
|
15,672
|
1,672
|
862
|
18,206
|
2,476
|
150,748
|
Credit cards, unsecured loans and other retail lending
|
45,785
|
11,262
|
530
|
437
|
12,229
|
3,760
|
61,774
|
Wholesale loans
|
105,375
|
12,177
|
360
|
475
|
13,012
|
2,267
|
120,654
|
Total
|
281,226
|
39,111
|
2,562
|
1,774
|
43,447
|
8,503
|
333,176
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
31
|
56
|
13
|
13
|
82
|
351
|
464
|
Credit cards, unsecured loans and other retail lending
|
528
|
1,895
|
169
|
240
|
2,304
|
2,511
|
5,343
|
Wholesale loans
|
129
|
300
|
16
|
13
|
329
|
505
|
963
|
Total
|
688
|
2,251
|
198
|
266
|
2,715
|
3,367
|
6,770
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
130,035
|
15,616
|
1,659
|
849
|
18,124
|
2,125
|
150,284
|
Credit cards, unsecured loans and other retail lending
|
45,257
|
9,367
|
361
|
197
|
9,925
|
1,249
|
56,431
|
Wholesale loans
|
105,246
|
11,877
|
344
|
462
|
12,683
|
1,762
|
119,691
|
Total
|
280,538
|
36,860
|
2,364
|
1,508
|
40,732
|
5,136
|
326,406
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
-
|
0.4
|
0.8
|
1.5
|
0.5
|
14.2
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
1.2
|
16.8
|
31.9
|
54.9
|
18.8
|
66.8
|
8.6
|
Wholesale loans
|
0.1
|
2.5
|
4.4
|
2.7
|
2.5
|
22.3
|
0.8
|
Total
|
0.2
|
5.8
|
7.7
|
15.0
|
6.2
|
39.6
|
2.0
|
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. An
explanation of the terms 12-month Expected Credit Losses (ECL),
lifetime ECL and credit-impaired is included in the Barclays PLC
Annual Report 2019 on page 259. This disclosure has been enhanced
in 2019 to provide further granularity by product. Transfers
between stages in the tables have been reflected as if they had
taken place at the beginning of the year. 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
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
|
|
|
|
|
|
|
|
As at 1 January 2019
|
130,066
|
31
|
18,206
|
82
|
2,476
|
351
|
150,748
|
464
|
Transfers from Stage 1 to Stage 2
|
(9,051)
|
(1)
|
9,051
|
1
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
8,000
|
28
|
(8,000)
|
(28)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(199)
|
-
|
(510)
|
(15)
|
709
|
15
|
-
|
-
|
Transfers from Stage 3
|
43
|
2
|
294
|
3
|
(337)
|
(5)
|
-
|
-
|
Business activity in the year
|
24,935
|
3
|
734
|
2
|
3
|
-
|
25,672
|
5
|
Changes to models used for calculation1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes
|
(6,931)
|
(38)
|
(843)
|
27
|
(214)
|
24
|
(7,988)
|
13
|
Final repayments
|
(10,427)
|
(2)
|
(1,827)
|
(4)
|
(454)
|
(13)
|
(12,708)
|
(19)
|
Disposals2
|
(723)
|
(1)
|
(62)
|
(4)
|
(2)
|
-
|
(787)
|
(5)
|
Write-offs3
|
-
|
-
|
-
|
-
|
(26)
|
(26)
|
(26)
|
(26)
|
As at 31 December
20194
|
135,713
|
22
|
17,043
|
64
|
2,155
|
346
|
154,911
|
432
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
As at 1 January 2019
|
45,785
|
528
|
12,229
|
2,304
|
3,760
|
2,511
|
61,774
|
5,343
|
Transfers from Stage 1 to Stage 2
|
(3,604)
|
(72)
|
3,604
|
72
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
4,522
|
701
|
(4,522)
|
(701)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(857)
|
(21)
|
(1,264)
|
(448)
|
2,121
|
469
|
-
|
-
|
Transfers from Stage 3
|
144
|
103
|
28
|
14
|
(172)
|
(117)
|
-
|
-
|
Business activity in the year
|
9,664
|
120
|
704
|
123
|
89
|
39
|
10,457
|
282
|
Changes to models used for calculation1
|
-
|
16
|
-
|
(110)
|
-
|
(7)
|
-
|
(101)
|
Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes
|
(5,975)
|
(779)
|
351
|
806
|
373
|
1,836
|
(5,251)
|
1,863
|
Final repayments
|
(3,667)
|
(54)
|
(371)
|
(53)
|
(290)
|
(74)
|
(4,328)
|
(181)
|
Disposals2
|
-
|
-
|
-
|
-
|
(777)
|
(627)
|
(777)
|
(627)
|
Write-offs3
|
-
|
-
|
-
|
-
|
(1,695)
|
(1,695)
|
(1,695)
|
(1,695)
|
As at 31 December
20194
|
46,012
|
542
|
10,759
|
2,007
|
3,409
|
2,335
|
60,180
|
4,884
|
1
|
Changes to models used for calculation include a £101m
movement in Credit cards, unsecured loans and other retail lending
and a £28m movement in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
reviews the output of models to determine accuracy of the ECL
calculation including reviews of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the businesses.
|
2
|
The £787m movement of gross loans and advances disposed of
across Home Loans relates to the sale of a portfolio of mortgages
from the Italian loan book. The £777m disposal reported within
Credit cards, unsecured loans and other retail lending portfolio
relates to debt sales undertaken during the year. Finally,
disposals of £2,285m within Wholesales loans relate to the
sale of debt securities as part of the Group's Treasury
operations.
|
3
|
In 2019, gross write-offs amounted to £1,883m (2018:
£1,891m) and post write-off recoveries amounted to £124m
(2018: £195m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £1,759m (2018:
£1,696m).
|
4
|
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
£149.3bn (December 2018: £129.9bn) and impairment
allowance of £24m (December 2018: £12m). This comprises
£12m ECL (December 2018: £10m) on £148.5bn Stage 1
assets (December 2018: £129.3bn), £2m (December 2018:
£2m) on £0.8bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2018: £0.6bn) and £10m (December 2018:
£nil) on £10m Stage 3 other assets (December 2018:
£nil).
|
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
|
Wholesale loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2019
|
105,375
|
129
|
13,012
|
329
|
2,267
|
505
|
120,654
|
963
|
Transfers from Stage 1 to Stage 2
|
(3,419)
|
(11)
|
3,419
|
11
|
-
|
-
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
5,213
|
84
|
(5,213)
|
(84)
|
-
|
-
|
-
|
-
|
Transfers to Stage 3
|
(501)
|
(2)
|
(650)
|
(19)
|
1,151
|
21
|
-
|
-
|
Transfers from Stage 3
|
473
|
35
|
205
|
25
|
(678)
|
(60)
|
-
|
-
|
Business activity in the year
|
40,837
|
51
|
1,757
|
27
|
31
|
-
|
42,625
|
78
|
Changes to models used for calculation1
|
-
|
(9)
|
-
|
(19)
|
-
|
-
|
-
|
(28)
|
Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes
|
5,929
|
(104)
|
321
|
85
|
122
|
334
|
6,372
|
315
|
Final repayments
|
(34,081)
|
(30)
|
(2,419)
|
(53)
|
(372)
|
(91)
|
(36,872)
|
(174)
|
Disposals2
|
(2,285)
|
-
|
-
|
-
|
-
|
-
|
(2,285)
|
-
|
Write-offs3
|
-
|
-
|
-
|
-
|
(162)
|
(162)
|
(162)
|
(162)
|
As at 31 December
20194
|
117,541
|
143
|
10,432
|
302
|
2,359
|
547
|
130,332
|
992
|
|
|
|
|
|
|
|
|
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
£m
|
Home loans
|
(1)
|
Credit cards, unsecured loans and other retail lending
|
1,863
|
Wholesale loans
|
191
|
ECL movement excluding assets derecognised due to disposals and
write-offs
|
2,053
|
Post write-off recoveries
|
(124)
|
Exchange and other adjustments5
|
(96)
|
Impairment release on loan commitments and financial
guarantees
|
71
|
Impairment charge on other financial assets4
|
8
|
As at 31 December 2019
|
|
|
|
|
|
|
|
1,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Changes to models used for calculations include a £101m
movement in Credit cards, unsecured loans and other retail lending
and a £28m movement in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
reviews the output of models to determine accuracy of the ECL
calculation including reviews of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the businesses.
|
2
|
The £787m movement of gross loans and advances disposed of
across Home Loans relates to the sale of a portfolio of mortgages
from the Italian loan book. The £777m disposal reported within
Credit cards, unsecured loans and other retail lending portfolio
relates to debt sales undertaken during the year. Finally,
disposals of £2,285m within Wholesales loans relate to the
sale of debt securities as part of the Group's Treasury
operations.
|
3
|
In 2019, gross write-offs amounted to £1,883m (2018:
£1,891m) and post write-off recoveries amounted to £124m
(2018: £195m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £1,759m (2018:
£1,696m).
|
4
|
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
£149.3bn (December 2018: £129.9bn) and impairment
allowance of £24m (December 2018: £12m). This comprises
£12m ECL (December 2018: £10m) on £148.5bn Stage 1
assets (December 2018: £129.3bn), £2m (December 2018:
£2m) on £0.8bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2018: £0.6bn) and £10m (December 2018:
£nil) on £10m Stage 3 other assets (December 2018:
£nil).
|
5
|
Includes foreign exchange and interest and fees in
suspense.
|
Loan commitments and financial guarantees
|
|
|
|
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
|
|
|
|
|
|
|
|
As at 1 January 2019
|
6,948
|
-
|
546
|
-
|
13
|
-
|
7,507
|
-
|
Net transfers between stages
|
(39)
|
-
|
47
|
-
|
(8)
|
-
|
-
|
-
|
Business activity in the year
|
2,848
|
-
|
-
|
-
|
-
|
-
|
2,848
|
-
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
1
|
-
|
(40)
|
-
|
-
|
-
|
(39)
|
-
|
Final repayments
|
(216)
|
-
|
(53)
|
-
|
(1)
|
-
|
(270)
|
-
|
As at 31 December 2019
|
9,542
|
-
|
500
|
-
|
4
|
-
|
10,046
|
-
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
|
|
|
As at 1 January 2019
|
124,611
|
41
|
9,016
|
65
|
267
|
20
|
133,894
|
126
|
Net transfers between stages
|
117
|
44
|
(1,082)
|
(43)
|
965
|
(1)
|
-
|
-
|
Business activity in the year
|
14,619
|
2
|
218
|
1
|
6
|
6
|
14,843
|
9
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(1,151)
|
(48)
|
(1,172)
|
54
|
(874)
|
(9)
|
(3,197)
|
(3)
|
Final repayments
|
(12,437)
|
(4)
|
(742)
|
(6)
|
(114)
|
(2)
|
(13,293)
|
(12)
|
As at 31 December 2019
|
125,759
|
35
|
6,238
|
71
|
250
|
14
|
132,247
|
120
|
|
|
|
|
|
|
|
|
|
Wholesale loans
|
|
|
|
|
|
|
|
|
As at 1 January 2019
|
178,430
|
58
|
12,564
|
85
|
404
|
2
|
191,398
|
145
|
Net transfers between stages
|
(875)
|
7
|
580
|
(8)
|
295
|
1
|
-
|
-
|
Business activity in the year
|
53,685
|
22
|
2,779
|
22
|
16
|
-
|
56,480
|
44
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(487)
|
(1)
|
1,190
|
36
|
232
|
41
|
935
|
76
|
Final repayments
|
(44,914)
|
(24)
|
(4,666)
|
(36)
|
(266)
|
(3)
|
(49,846)
|
(63)
|
As at 31 December 2019
|
185,839
|
62
|
12,447
|
99
|
681
|
41
|
198,967
|
202
|
Measurement uncertainty
The measurement of ECL involves complexity and judgement, including
estimation of probabilities of default (PD), loss given default
(LGD), a range of unbiased future economic scenarios, estimation of
expected lives, estimation of exposures at default (EAD) and
assessing significant increases in credit risk.
The Group uses a five-scenario model to calculate ECL. An external
consensus forecast is assembled from key sources, including HM
Treasury (short and medium term forecasts), Bloomberg (based on
median of economic forecasts) and the Urban Land Institute (for US
House Prices), which forms the Baseline scenario. In addition, two
adverse scenarios (Downside 1 and Downside 2) and two favourable
scenarios (Upside 1 and Upside 2) are derived, with associated
probability weightings. The adverse scenarios are calibrated to a
similar severity to internal stress tests, whilst also considering
IFRS 9 specific sensitivities and non-linearity. Downside 2 is
benchmarked to the Bank of England's annual cyclical scenarios and
to the most severe scenario from Moody's inventory, but is not
designed to be the same. The favourable scenarios are calibrated to
be symmetric to the adverse scenarios, subject to a ceiling
calibrated to relevant recent favourable benchmark scenarios. All
scenarios are regenerated at a minimum annually. The scenarios
include eight economic variables, (GDP, unemployment, House Price
Index (HPI) and base rates in both the UK and US markets), and
expanded variables using statistical models based on historical
correlations. The upside and downside shocks are designed to evolve
over a five-year stress horizon, with all five scenarios converging
to a steady state after approximately eight years.
Scenario weights
The methodology for estimating probability weights for each of the
scenarios involves a comparison of the distribution of key historic
UK and US macroeconomic variables against the forecast paths of the
five scenarios. The methodology works such that the Baseline
(reflecting current consensus outlook) has the highest weight and
the weights of adverse and favourable scenarios depend on the
deviation from the Baseline; the further from the Baseline, the
smaller the weight. This is reflected in the table below where the
probability weights of the scenarios as of 31 December 2019 are
shown. A single set of five scenarios is used across all portfolios
and all five weights are normalised to equate to 100%. The same
scenarios and weights that are used in the estimation of expected
credit losses are also used for Barclays internal planning
purposes. The impacts across the portfolios are different because
of the sensitivities of each of the portfolios to specific
macroeconomic variables, for example, mortgages are highly
sensitive to house prices and base rates, credit cards and
unsecured consumer loans are highly sensitive to
unemployment.
The tables below show the macroeconomic variables for each scenario
and the respective scenario weights. Note that in order to provide
additional transparency, 5-year average data tables and UK/US base
rate metrics have been included.
Scenario probability weighting
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.19
|
%
|
%
|
%
|
%
|
%
|
Scenario probability weighting
|
10.1
|
23.1
|
40.8
|
22.7
|
3.3
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
Scenario probability weighting
|
9.0
|
24.0
|
41.0
|
23.0
|
3.0
|
The weights of Upside 2 and Downside 2 have increased slightly
reflecting the small decrease in dispersion in the scenarios. The
impact on ECL is immaterial.
Macroeconomic variables used in the
calculation of ECL (specific bases)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.19
|
%
|
%
|
%
|
%
|
%
|
UK GDP2
|
4.2
|
2.9
|
1.6
|
0.2
|
(4.7)
|
UK unemployment3
|
3.4
|
3.8
|
4.2
|
5.7
|
8.7
|
UK HPI4
|
46.0
|
32.0
|
3.1
|
(8.2)
|
(32.4)
|
UK bank rate3
|
0.5
|
0.5
|
0.7
|
2.8
|
4.0
|
US GDP2
|
4.2
|
3.3
|
1.9
|
0.4
|
(3.4)
|
US unemployment3
|
3.0
|
3.5
|
3.9
|
5.3
|
8.5
|
US HPI4
|
37.1
|
23.3
|
3.0
|
0.5
|
(19.8)
|
US federal funds rate3
|
1.5
|
1.5
|
1.7
|
3.0
|
3.5
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
UK GDP2
|
4.5
|
3.1
|
1.7
|
0.3
|
(4.1)
|
UK unemployment3
|
3.4
|
3.9
|
4.3
|
5.7
|
8.8
|
UK HPI4
|
46.4
|
32.6
|
3.2
|
(0.5)
|
(32.1)
|
UK bank rate3
|
0.8
|
0.8
|
1.0
|
2.5
|
4.0
|
US GDP2
|
4.8
|
3.7
|
2.1
|
0.4
|
(3.3)
|
US unemployment3
|
3.0
|
3.4
|
3.7
|
5.2
|
8.4
|
US HPI4
|
36.9
|
30.2
|
4.1
|
-
|
(17.4)
|
US federal funds rate3
|
2.3
|
2.3
|
2.7
|
3.0
|
3.5
|
Macroeconomic variables used in the
calculation of ECL (5-year averages)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.19
|
%
|
%
|
%
|
%
|
%
|
UK GDP
|
3.2
|
2.4
|
1.6
|
0.8
|
(0.7)
|
UK unemployment
|
3.5
|
3.9
|
4.2
|
5.4
|
7.7
|
UK HPI
|
7.9
|
5.7
|
3.1
|
(1.1)
|
(6.5)
|
UK bank rate
|
0.5
|
0.5
|
0.7
|
2.5
|
3.7
|
US GDP
|
3.5
|
2.8
|
1.9
|
1.0
|
(0.5)
|
US unemployment
|
3.1
|
3.6
|
3.9
|
5.0
|
7.5
|
US HPI
|
6.5
|
4.3
|
3.0
|
1.3
|
(3.7)
|
US federal funds rate
|
1.6
|
1.7
|
1.7
|
2.9
|
3.4
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
UK GDP
|
3.4
|
2.6
|
1.7
|
0.9
|
(0.6)
|
UK unemployment
|
3.7
|
4.0
|
4.3
|
5.1
|
7.9
|
UK HPI
|
7.9
|
5.8
|
3.2
|
0.9
|
(6.4)
|
UK bank rate
|
0.8
|
0.8
|
1.0
|
2.3
|
3.7
|
US GDP
|
3.7
|
3.0
|
2.1
|
1.1
|
(0.5)
|
US unemployment
|
3.1
|
3.5
|
3.7
|
4.7
|
7.4
|
US HPI
|
6.5
|
5.4
|
4.1
|
2.4
|
(2.6)
|
US federal funds rate
|
2.3
|
2.3
|
2.7
|
3.0
|
3.4
|
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
|
Highest annual growth in Upside scenarios; 5-year average in
Baseline; lowest annual growth in Downside scenarios.
|
3
|
Lowest yearly average in Upside scenarios; 5-year average in
Baseline; highest yearly average in Downside
scenarios.
|
4
|
Cumulative growth (trough to peak) in Upside scenarios; 5-year
average in Baseline; cumulative fall (peak-to-trough) in Downside
scenarios.
|
Over the year, the macroeconomic baseline variables have worsened
in the US, in part due to the trade dispute with China. Baseline
expectations for the US federal funds rate have also moved lower
from 2.7% to 1.7% averaged over the first five years. Macroeconomic
baseline variables in the UK have remained fairly flat with a small
decrease in bank rates driven by market expectations of lower
interest rates in the next few years. The other scenarios are
generally unchanged from 2018, with the exception of UK HPI in the
Downside 1 scenario where the cumulative fall in house prices now
represents a more severe fall of 8.2% versus 0.5% in
2018.
Analysis of specific portfolios and asset types
Secured home loans
The UK home loan portfolio (excluding
Wealth) primarily comprises first lien home
loans and accounts for 92%
(December 2018: 91%) of the Group's total home loans
balance.
Home loans principal
portfolios1
|
|
|
Barclays UK
|
|
|
As at
31.12.19
|
As at
31.12.18
|
Gross loans and advances (£m)
|
|
|
143,259
|
136,517
|
90 day arrears rate, excluding recovery book (%)
|
|
|
0.2
|
0.2
|
Annualised gross charge-off rate - 180 days past due
(%)
|
|
|
0.6
|
0.7
|
Recovery book proportion of outstanding balances (%)
|
|
|
0.5
|
0.6
|
Recovery book impairment coverage ratio (%)
|
|
|
5.3
|
2.9
|
|
|
|
|
|
Average marked to market
LTV1
|
|
|
|
|
Balance weighted (%)
|
|
|
51.1
|
48.8
|
Valuation weighted (%)
|
|
|
37.3
|
35.8
|
|
|
|
|
|
New lending
|
|
|
Year ended 31.12.19
|
Year ended 31.12.18
|
New bookings (£m)
|
|
|
25,530
|
23,473
|
New home loans proportion > 90% LTV (%)
|
|
|
4.2
|
1.8
|
Average LTV on new home loans: balance weighted (%)
|
|
|
67.9
|
65.4
|
Average LTV on new home loans: valuation weighted (%)
|
|
|
60.0
|
57.4
|
1
|
2018 metrics have been restated to align with the current
methodology for the classification of delinquent balances and the
inclusion of past maturity balances.
|
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 31.12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
76.0
|
10.7
|
0.7
|
87.4
|
4.2
|
15.4
|
28.5
|
48.1
|
-
|
0.1
|
2.2
|
-
|
>75% and <=90%
|
10.4
|
0.7
|
-
|
11.1
|
2.7
|
11.5
|
12.6
|
26.8
|
-
|
0.9
|
19.7
|
0.1
|
>90% and <=100%
|
1.3
|
0.1
|
-
|
1.4
|
0.8
|
2.5
|
4.9
|
8.2
|
-
|
1.8
|
54.4
|
0.3
|
>100%
|
0.1
|
-
|
-
|
0.1
|
0.2
|
4.1
|
12.6
|
16.9
|
0.2
|
8.7
|
107.4
|
9.0
|
As at 31.12.18
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
77.9
|
11.9
|
0.8
|
90.6
|
3.3
|
26.7
|
20.9
|
50.9
|
-
|
0.1
|
1.3
|
-
|
>75% and <=90%
|
8.0
|
0.6
|
-
|
8.6
|
1.6
|
11.8
|
8.7
|
22.1
|
-
|
1.0
|
12.7
|
0.1
|
>90% and <=100%
|
0.6
|
0.1
|
-
|
0.7
|
0.3
|
3.0
|
4.4
|
7.7
|
-
|
1.7
|
44.5
|
0.5
|
>100%
|
-
|
0.1
|
-
|
0.1
|
-
|
10.0
|
9.3
|
19.3
|
-
|
5.9
|
88.5
|
10.8
|
1
|
Portfolio mark 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
2019.
|
The UK home loans portfolio:
|
●
|
Gross loans and advances increased by £6.7bn (4.9%) following
increases across both Residential (3.0%) and Buy to Let (BTL)
(17.6%)
|
|
●
|
Owner-occupied interest-only home loans comprised 23.4% (2018:
26.3%) of total balances
|
|
●
|
The average balance weighted LTV on owner occupied loans increased
to 50.2% (2018: 47.9%) with average completion LTVs remaining
higher than for the existing portfolio
|
|
●
|
BTL home loans comprised 13.6% (2018: 12.1%) of total balances. The
average balance weighted LTV increased to 56.5% (2018: 55.4%)
driven by average completion LTVs remaining higher than for the
existing book
|
The value of new bookings increased across both the owner-occupied
and BTL portfolios, 9.2% and 6.5% respectively. High LTV lending
booked in 2019 increased driven by market conditions.
Head Office: Italian home
loans and advances at amortised cost reduced to £6.0bn (2018:
£7.9bn) 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 64.4% (2018: 61.8%).
90-day arrears increased to 1.8% (2018: 1.4%), a function of the
balance reduction associated with the sale of £787m assets in
Q3 2019, gross charge-off rates remained stable at 0.8% (2018:
0.8%).
Credit cards, unsecured loans and other retail
lending
The principal portfolios listed below accounted for 87% (December
2018: 86%) of the Group's total credit cards, unsecured loans
and other retail lending.
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 31.12.19
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
16,457
|
1.7
|
0.8
|
1.6
|
1.6
|
UK personal loans
|
6,139
|
2.1
|
1.0
|
3.2
|
2.9
|
Barclays International
|
|
|
|
|
|
US cards
|
22,041
|
2.7
|
1.4
|
4.5
|
4.4
|
Barclays Partner Finance
|
4,134
|
0.9
|
0.3
|
1.7
|
1.7
|
Germany consumer lending
|
3,558
|
1.7
|
0.7
|
2.1
|
1.3
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
17,285
|
1.8
|
0.9
|
1.9
|
1.5
|
UK personal loans
|
6,335
|
2.3
|
1.1
|
1.9
|
1.5
|
Barclays International
|
|
|
|
|
|
US cards
|
22,178
|
2.7
|
1.4
|
3.6
|
3.4
|
Barclays Partner Finance
|
4,216
|
1.1
|
0.4
|
1.7
|
1.7
|
Germany consumer lending
|
3,400
|
1.9
|
0.8
|
2.7
|
2.0
|
UK cards: Following the
introduction of payment reminders both 30 and 90 day arrears rates
reduced by 0.1%. The annualised gross write-off rate reduced to
1.6% (2018: 1.9%), reflecting lower levels of delinquency and
contractual charge-offs through 2019, albeit with increased debt
sales from the recovery book.
UK personal loans: 30 and
90 day arrears rates reduced by 0.2% and 0.1% respectively,
reflecting a continued improvement in lending quality over the past
2 years, coupled with improvements in collections effectiveness.
Write-off rates increased significantly reflecting higher
charge-offs in 2018.
US cards: 30 and 90-day
arrears rates remained stable. The annualised gross and net
write-off rates increased to 4.5% (2018: 3.6%) and 4.4% (2018:
3.4%) respectively, primarily driven by an increase in charge-offs
in 2018. The percentage of write-offs to charge-offs was stable
year on year.
Barclays Partner Finance: Improvement in 30 and 90 days arrears was
driven by better arrears management and improved customer
selection. Annualised write-off rates remained
flat.
Germany consumer lending: Improvement in 30 and 90 days arrears was
driven by better collections performance across all products.
The annualised write-off rates improved in line with
expectations.
Market Risk
Analysis of management value at risk (VaR)
The table below shows the total management VaR on a diversified
basis by risk factor. Total management VaR includes all trading
positions in CIB and Treasury and it is calculated with a one-day
holding period.
Limits are applied against each risk factor VaR as well as total
management VaR, which are then cascaded further by risk managers to
each business.
Management VaR (95%) by asset
class1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31.12.19
|
|
Year ended 31.12.18
|
|
Average
|
High2
|
Low2
|
|
Average
|
High2
|
Low2
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Credit risk
|
12
|
17
|
8
|
|
11
|
16
|
8
|
Interest rate risk
|
6
|
11
|
3
|
|
8
|
19
|
3
|
Equity risk
|
10
|
22
|
5
|
|
7
|
14
|
4
|
Basis risk
|
8
|
11
|
6
|
|
6
|
8
|
4
|
Spread risk
|
4
|
5
|
3
|
|
6
|
9
|
3
|
Foreign exchange risk
|
3
|
5
|
2
|
|
3
|
7
|
2
|
Commodity risk
|
1
|
2
|
-
|
|
1
|
2
|
-
|
Inflation risk
|
2
|
3
|
1
|
|
3
|
4
|
2
|
Diversification effect2
|
(23)
|
n/a
|
n/a
|
|
(24)
|
n/a
|
n/a
|
Total management VaR
|
23
|
29
|
17
|
|
21
|
27
|
15
|
Average management VaR increased by 10% to £23m in 2019 (2018:
£21m) and remained relatively stable during the period. The
increase in average management VaR in 2019 was driven by a small
increase in equity risk and credit risk, partially offset by a
slight decrease in interest rate risk compared to
2018.
1
|
Excludes Barclays Africa Group Limited from 23 July
2018.
|
2
|
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.
|
Treasury and Capital Risk
The Group has a comprehensive Key Risk Control Framework for
managing its liquidity risk. The Liquidity Framework meets the PRA
standards and is designed 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 (LRA). The
Liquidity Framework is delivered via a combination of policy
formation, review and governance, analysis, stress testing, limit
setting and monitoring.
Liquidity risk stress testing
As at 31 December 2019, the Group held eligible liquid assets in
excess of 100% of net stress outflows to its internal and external
regulatory requirements. The short-term stress scenarios comprise 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.
Liquidity coverage ratio
|
|
|
|
As at 31.12.19
|
As at 31.12.18
|
|
£bn
|
£bn
|
Eligible liquidity buffer
|
206
|
219
|
Net stress outflows
|
(128)
|
(129)
|
Surplus
|
78
|
90
|
|
|
|
Liquidity coverage ratio
|
160%
|
169%
|
The Group plans to maintain its surplus to the internal and
regulatory stress requirements at an efficient level, while
continuously assessing risks to market funding conditions and its
liquidity position, and taking actions to manage the size of the
liquidity pool as appropriate.
Composition of the Group liquidity pool
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
As at 31.12.18
|
|
|
Liquidity pool
|
Liquidity pool of which CRR LCR
eligible3
|
Liquidity pool
|
|
|
Cash
|
Level 1
|
Level 2A
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Cash and deposits with central
banks1
|
|
153
|
150
|
-
|
-
|
181
|
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
|
AAA to AA-
|
|
31
|
-
|
26
|
-
|
27
|
BBB+ to BBB-
|
|
5
|
-
|
4
|
2
|
4
|
Other LCR ineligible government bonds
|
|
-
|
-
|
-
|
-
|
1
|
Total government bonds
|
|
36
|
-
|
30
|
2
|
32
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Government guaranteed issuers, PSEs and GSEs
|
|
9
|
-
|
8
|
1
|
6
|
International organisations and MDBs
|
|
7
|
-
|
7
|
-
|
5
|
Covered bonds
|
|
6
|
-
|
5
|
-
|
3
|
Total other
|
|
22
|
-
|
20
|
1
|
14
|
|
|
|
|
|
|
|
Total as at 31 December 2019
|
|
211
|
150
|
50
|
3
|
227
|
Total as at 31 December 2018
|
|
227
|
176
|
40
|
1
|
|
1
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 98% (December 2018: over
99%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
2
|
Of which over 67% (December 2018: over 71%) comprised UK, US,
French, German, Swiss and Dutch securities.
|
3
|
The LCR eligible liquidity pool is adjusted for trapped liquidity
and other regulatory deductions. It also incorporates other CRR (as
amended by CRR II) qualifying assets that are not eligible under
Barclays' internal risk appetite.
|
The Group liquidity pool was £211bn as at 31 December 2019
(December 2018: £227bn). During the year, the month-end
liquidity pool ranged from £211bn to £256bn (December
2018: £207bn to £243bn), and the month-end average
balance was £235bn (December 2018: £225bn). The liquidity
pool is held unencumbered and is not used to support payment or
clearing requirements. Such requirements are treated as part of our
regular business funding. The liquidity pool is intended to offset
stress outflows, and comprises the above cash and unencumbered
assets.
As at 31 December 2019, 67% (December 2018: 70%) of the liquidity
pool was located in Barclays Bank PLC, 20% (December 2018: 20%) in
Barclays Bank UK PLC and 6% (December 2018: 2%) 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.
Deposit funding
|
|
|
|
|
|
|
As at 31.12.19
|
|
As at 31.12.18
|
|
Loans and advances at amortised cost
|
Deposits at amortised cost
|
Loan: deposit ratio1
|
|
Loan: deposit ratio1
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
Barclays UK
|
198
|
206
|
96%
|
|
96%
|
Barclays International
|
133
|
210
|
63%
|
|
65%
|
Head Office
|
8
|
-
|
|
|
-
|
Barclays Group
|
339
|
416
|
82%
|
|
83%
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost divided by deposits at amortised cost.
|
Composition of wholesale funding
Wholesale funding outstanding (excluding repurchase agreements) was
£147.1bn (December 2018: £154.0bn). In 2019, the Group
issued £8.6bn of MREL eligible instruments from Barclays PLC
(the Parent company) in a range of tenors and
currencies.
Barclays Bank PLC continued to issue in the shorter-term markets
and Barclays Bank UK PLC issued in the shorter-term and secured
markets, helping to maintain their stable and diversified funding
bases.
Wholesale funding of £40.6bn (December 2018: £46.7bn)
matures in less than one year, representing 28% (December 2018:
30%) of total wholesale funding outstanding. This includes
£16.3bn (December 2018: £19.1bn) related to term
funding2.
Although not a requirement, the liquidity pool exceeded wholesale
funding maturing in less than one year by £170bn (December
2018: £180bn).
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)
|
-
|
-
|
0.8
|
0.3
|
1.1
|
4.2
|
0.9
|
8.2
|
4.5
|
14.2
|
33.1
|
Senior unsecured (privately placed)
|
-
|
-
|
-
|
-
|
-
|
0.2
|
-
|
0.1
|
0.1
|
0.5
|
0.9
|
Subordinated liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1.0
|
6.7
|
7.7
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
1.1
|
4.2
|
3.6
|
7.3
|
16.2
|
0.9
|
0.5
|
0.1
|
-
|
-
|
17.7
|
Asset backed commercial paper
|
1.6
|
4.9
|
0.7
|
-
|
7.2
|
-
|
-
|
-
|
-
|
-
|
7.2
|
Senior unsecured (public benchmark)
|
0.6
|
-
|
-
|
-
|
0.6
|
2.9
|
0.1
|
-
|
1.1
|
0.3
|
5.0
|
Senior unsecured (privately placed)3
|
1.1
|
1.5
|
2.4
|
5.9
|
10.9
|
5.7
|
4.8
|
3.9
|
4.0
|
20.9
|
50.2
|
Asset backed securities
|
-
|
0.4
|
0.6
|
-
|
1.0
|
-
|
0.2
|
0.6
|
0.9
|
2.1
|
4.8
|
Subordinated liabilities
|
-
|
0.2
|
0.1
|
0.9
|
1.2
|
5.0
|
3.3
|
0.1
|
-
|
0.9
|
10.5
|
Other
|
0.1
|
-
|
-
|
-
|
0.1
|
-
|
-
|
0.3
|
-
|
1.2
|
1.6
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
-
|
0.4
|
0.2
|
0.2
|
0.8
|
-
|
-
|
-
|
-
|
-
|
0.8
|
Covered bonds
|
-
|
-
|
1.0
|
-
|
1.0
|
0.9
|
2.3
|
1.8
|
-
|
1.1
|
7.1
|
Asset backed securities
|
-
|
-
|
-
|
0.5
|
0.5
|
-
|
-
|
-
|
-
|
-
|
0.5
|
Total as at 31 December 2019
|
4.5
|
11.6
|
9.4
|
15.1
|
40.6
|
19.8
|
12.1
|
15.1
|
11.6
|
47.9
|
147.1
|
Of which secured
|
1.6
|
5.3
|
2.3
|
0.5
|
9.7
|
0.9
|
2.5
|
2.4
|
0.9
|
3.2
|
19.6
|
Of which unsecured
|
2.9
|
6.3
|
7.1
|
14.6
|
30.9
|
18.9
|
9.6
|
12.7
|
10.7
|
44.7
|
127.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2018
|
2.5
|
15.9
|
8.2
|
20.1
|
46.7
|
16.7
|
16.8
|
10.4
|
13.2
|
50.2
|
154.0
|
Of which secured
|
2.0
|
3.7
|
1.1
|
3.6
|
10.4
|
2.7
|
1.2
|
2.6
|
1.9
|
3.7
|
22.5
|
Of which unsecured
|
0.5
|
12.2
|
7.1
|
16.5
|
36.3
|
14.0
|
15.6
|
7.8
|
11.3
|
46.5
|
131.5
|
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 £42.9bn, of which £8.3bn
matures within one year.
|
Capital
The Group's Overall Capital Requirement for CET1 is 12.1%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 3.0% Pillar 2A requirement and a 0.6%
Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 28 November 2018,
the Financial Policy Committee (FPC) set the CCyB rate for UK
exposures at 1%. The buffer rates set by other national authorities
for non-UK exposures are not currently material. Overall, this
results in a 0.6% CCyB for the Group for Q419. On 16 December 2019,
the FPC announced its intention to increase the CCyB rate for UK
exposures from 1% to 2%. This will take effect from December 2020
and based on current UK exposures, is expected to increase the
Group's CCyB to approximately 1.1%.
The Group's Pillar 2A requirement as per the PRA's Individual
Capital Requirement is 5.4% of which at least 56.25% needs to be
met with CET1 capital, equating to approximately 3.0% of RWAs.
Certain elements of the Pillar 2A requirement are a fixed quantum
whilst others are a proportion of RWAs, based on a point in time
assessment. The Pillar 2A requirement is subject to at least annual
review.
On 27 June 2019, CRR II came into force amending CRR. As an
amending regulation, the existing provisions of CRR apply unless
they are amended by CRR II.
Certain provisions took immediate effect and these primarily relate
to MREL. Amendments within the capital risk section include changes
to qualifying criteria for CET1, AT1 and Tier 2 instruments, the
inclusion of additional holdings eligible for deduction, an
amendment to the treatment of deferred tax assets and the
introduction of requirements for MREL. Grandfathering and
transitional provisions relating to MREL have also been
introduced. Other CRR II amendments are expected to take
effect from 28 June 2021.
Certain aspects of CRR II are dependent on final technical
standards to be issued by the European Banking Authority (EBA) and
adopted by the European Commission as well as UK implementation of
the rules. The disclosures in the following section reflect
Barclays' interpretation of the current rules and
guidance.
Capital
ratios1,2,3
|
As at
|
As at
|
As at
|
31.12.19
|
30.09.19
|
31.12.18
|
CET1
|
13.8%
|
13.4%
|
13.2%
|
Tier 1 (T1)
|
17.7%
|
17.0%
|
17.0%
|
Total regulatory capital
|
21.6%
|
21.1%
|
20.7%
|
|
|
|
|
Capital resources
|
£bn
|
£bn
|
£bn
|
Total equity excluding non-controlling interests per the balance
sheet
|
64.4
|
66.2
|
62.6
|
Less: other equity instruments (recognised as AT1
capital)
|
(10.9)
|
(10.9)
|
(9.6)
|
Adjustment to retained earnings for foreseeable
dividends
|
(1.1)
|
(0.7)
|
(0.7)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1.7)
|
(1.9)
|
(1.7)
|
Goodwill and intangible assets
|
(8.1)
|
(8.1)
|
(8.0)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(0.5)
|
(0.3)
|
(0.5)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(1.0)
|
(1.5)
|
(0.7)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
0.3
|
-
|
(0.1)
|
Defined benefit pension fund assets
|
(1.6)
|
(2.0)
|
(1.3)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(0.1)
|
(0.1)
|
(0.1)
|
Adjustment under IFRS 9 transitional arrangements
|
1.1
|
1.1
|
1.3
|
Other regulatory adjustments
|
(0.1)
|
(0.1)
|
-
|
CET1 capital
|
40.8
|
41.9
|
41.1
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
10.9
|
10.9
|
9.6
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
0.7
|
0.8
|
2.4
|
Other regulatory adjustments and deductions
|
(0.1)
|
(0.1)
|
(0.1)
|
AT1 capital
|
11.4
|
11.5
|
11.9
|
|
|
|
|
T1 capital
|
52.2
|
53.4
|
53.0
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
7.7
|
8.3
|
6.6
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
4.0
|
4.7
|
5.3
|
Other regulatory adjustments and deductions
|
(0.3)
|
(0.3)
|
(0.3)
|
Total regulatory capital
|
63.6
|
66.1
|
64.6
|
|
|
|
|
Total RWAs
|
295.1
|
313.3
|
311.9
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II
applicable as at the reporting date. This includes IFRS 9
transitional arrangements and the grandfathering of CRR and 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 13.5%,
with £39.7bn of CET1 capital and £295.0bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II applicable as at the reporting
date.
|
3
|
The Barclays PLC CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays Bank PLC T2 Contingent Capital
Notes, was 13.8%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR,
including the IFRS 9 transitional arrangements. The benefit of the
Financial Services Authority (FSA) October 2012 interpretation of
the transitional provisions, relating to the implementation of CRD
IV, expired in December 2017.
|
Movement in CET1 capital
|
Three months
|
Year
|
ended
|
ended
|
31.12.19
|
31.12.19
|
£bn
|
£bn
|
Opening CET1 capital
|
41.9
|
41.1
|
|
|
|
Profit for the period attributable to equity holders
|
0.9
|
3.3
|
Own credit relating to derivative liabilities
|
-
|
0.1
|
Dividends paid and foreseen
|
(0.6)
|
(2.4)
|
Increase in retained regulatory capital generated from
earnings
|
0.3
|
1.0
|
|
|
|
Net impact of share schemes
|
0.2
|
0.3
|
Fair value through other comprehensive income reserve
|
(0.2)
|
0.1
|
Currency translation reserve
|
(1.3)
|
(0.5)
|
Other reserves
|
-
|
(0.4)
|
Decrease in other qualifying reserves
|
(1.3)
|
(0.5)
|
|
|
|
Pension remeasurements within reserves
|
(0.5)
|
(0.2)
|
Defined benefit pension fund asset deduction
|
0.4
|
(0.3)
|
Net impact of pensions
|
-
|
(0.5)
|
|
|
|
Additional value adjustments (PVA)
|
0.1
|
-
|
Goodwill and intangible assets
|
-
|
(0.1)
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(0.2)
|
-
|
Adjustment under IFRS 9 transitional arrangements
|
-
|
(0.2)
|
Decrease in regulatory capital due to adjustments and
deductions
|
(0.1)
|
(0.3)
|
|
|
|
Closing CET1 capital
|
40.8
|
40.8
|
|
|
|
CET1 capital decreased £0.3bn to £40.8bn (December 2018:
£41.1bn).
£3.3bn of capital generated from profits was partially offset
by £2.4bn of regulatory dividends paid and foreseen including
£0.8bn of AT1 coupons paid. Other movements in the period
were:
|
●
|
A £0.5bn decrease in the currency translation reserve mainly
driven by the depreciation of period end USD against
GBP
|
|
●
|
A £0.5bn decrease as a result of movements relating to
pensions, largely due to scheduled deficit reduction contribution
payments of £0.25bn in April 2019 and September
2019
|
|
●
|
A £0.4bn loss on the redemption of AT1 securities
|
|
●
|
A £0.2bn decrease in the IFRS 9 transitional add back
primarily due to the change in the phasing of transitional relief
from 95% in 2018 to 85% in 2019
|
RWAs by risk type and business
|
|
Credit risk
|
|
Counterparty credit risk
|
|
Market risk
|
|
Operational risk
|
Total RWAs
|
|
Std
|
IRB
|
|
Std
|
IRB
|
Settlement risk
|
CVA
|
|
Std
|
IMA
|
|
|
|
As at 31.12.19
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Barclays UK
|
5.2
|
57.5
|
|
0.2
|
-
|
-
|
-
|
|
0.2
|
-
|
|
11.8
|
74.9
|
Corporate
and Investment Bank
|
25.7
|
62.1
|
|
12.1
|
16.9
|
0.3
|
2.5
|
|
12.8
|
17.6
|
|
21.5
|
171.5
|
Consumer,
Cards and Payments
|
27.2
|
2.7
|
|
0.1
|
-
|
-
|
-
|
|
-
|
0.1
|
|
7.6
|
37.7
|
Barclays International
|
52.9
|
64.8
|
|
12.2
|
16.9
|
0.3
|
2.5
|
|
12.8
|
17.7
|
|
29.1
|
209.2
|
Head Office
|
5.1
|
5.8
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
0.1
|
11.0
|
Barclays Group
|
63.2
|
128.1
|
|
12.4
|
16.9
|
0.3
|
2.5
|
|
13.0
|
17.7
|
|
41.0
|
295.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
4.1
|
60.4
|
|
0.3
|
-
|
-
|
-
|
|
0.2
|
-
|
|
11.8
|
76.8
|
Corporate
and Investment Bank
|
27.4
|
69.3
|
|
12.9
|
17.4
|
0.1
|
4.0
|
|
15.6
|
16.6
|
|
21.6
|
184.9
|
Consumer,
Cards and Payments
|
28.3
|
2.4
|
|
0.1
|
-
|
-
|
-
|
|
-
|
0.1
|
|
7.3
|
38.2
|
Barclays International
|
55.7
|
71.7
|
|
13.0
|
17.4
|
0.1
|
4.0
|
|
15.6
|
16.7
|
|
28.9
|
223.1
|
Head Office
|
5.3
|
6.3
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
1.8
|
13.4
|
Barclays Group
|
65.1
|
138.4
|
|
13.3
|
17.4
|
0.1
|
4.0
|
|
15.8
|
16.7
|
|
42.5
|
313.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
3.3
|
59.7
|
|
0.2
|
-
|
-
|
0.1
|
|
0.1
|
-
|
|
11.8
|
75.2
|
Corporate
and Investment Bank
|
26.1
|
64.8
|
|
9.8
|
14.9
|
0.2
|
3.3
|
|
13.9
|
16.2
|
|
21.7
|
170.9
|
Consumer,
Cards and Payments
|
29.5
|
2.2
|
|
0.1
|
0.1
|
-
|
-
|
|
-
|
0.6
|
|
7.3
|
39.8
|
Barclays International
|
55.6
|
67.0
|
|
9.9
|
15.0
|
0.2
|
3.3
|
|
13.9
|
16.8
|
|
29.0
|
210.7
|
Head Office
|
4.3
|
5.8
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
15.9
|
26.0
|
Barclays Group
|
63.2
|
132.5
|
|
10.1
|
15.0
|
0.2
|
3.4
|
|
14.0
|
16.8
|
|
56.7
|
311.9
|
Movement analysis of RWAs
|
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Opening RWAs (as at 31.12.18)
|
195.6
|
28.8
|
30.8
|
56.7
|
311.9
|
Book size
|
-
|
3.9
|
(1.0)
|
(1.5)
|
1.4
|
Acquisitions and disposals
|
(0.8)
|
-
|
-
|
-
|
(0.8)
|
Book quality
|
(2.9)
|
0.3
|
-
|
-
|
(2.6)
|
Model updates
|
1.5
|
0.5
|
-
|
-
|
2.0
|
Methodology and policy
|
0.8
|
(1.4)
|
0.9
|
(14.2)
|
(13.9)
|
Foreign exchange movements1
|
(2.9)
|
-
|
-
|
-
|
(2.9)
|
Closing RWAs (as at 31.12.19)
|
191.3
|
32.1
|
30.7
|
41.0
|
295.1
|