UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
July
29, 2020
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No
x
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b):
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
EXHIBIT
INDEX
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BARCLAYS
PLC
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(Registrant)
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Date:
July 29, 2020
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By: /s/
Garth Wright
--------------------------------
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Garth
Wright
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Assistant
Secretary
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Barclays PLC
Interim Results Announcement
30 June
2020
Table of Contents
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Results Announcement
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Page
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Notes
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1
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Performance
Highlights
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2
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Group
Chief Executive Officer’s Review
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4
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Group
Finance Director’s Review
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5
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Results
by Business
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● Barclays UK
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7
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● Barclays
International
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10
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● Head Office
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14
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Quarterly
Results Summary
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15
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Quarterly
Results by Business
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16
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Performance Management
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● Margins and
Balances
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22
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Risk Management
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● Risk Management and
Principal Risks
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23
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● Credit Risk
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25
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● Market Risk
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42
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● Treasury and
Capital Risk
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43
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Statement
of Directors’ Responsibilities
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55
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Independent
Review Report to Barclays PLC
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56
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Condensed
Consolidated Financial Statements
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57
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Financial
Statement Notes
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63
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Appendix: Non-IFRS
Performance Measures
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88
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Shareholder
Information
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98
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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 six months ended 30 June 2020 to the
corresponding six months of 2019 and balance sheet analysis as at
30 June 2020 with comparatives relating to 31 December 2019 and 30
June 2019. 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 28 July 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
contained 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) have been 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 88 to 97 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; direct and
indirect impacts of the coronavirus (COVID-19) pandemic;
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 and our 2020 Interim
Results Announcement for the six months ended 30 June 2020 filed on
Form 6-K), 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
Open for business during the COVID-19 pandemic, helping support the
economy
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COVID-19 support
Supporting
customers, business, the community, and our colleagues
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● c.600k payment
holidays1 provided to
customers, including c.121k in UK mortgages, c.157k in UK credit
cards, c.106k in UK personal loans and point of sale finance, and
c.216k in US credit cards
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● Provided
c.£22bn of COVID-19 support for UK businesses, including
enabling c.£7.7bn of government backed
Bounce Back Loans1, lending
c.£2.5bn under the CBILS programmes1,2 and facilitating c.£11.7bn of
commercial paper issuance1
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● Helped businesses
and institutions to access the global capital markets, including
raising c.£620bn of new issuance in the second
quarter
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● £45m of the
£100m Community Aid Package distributed to charities and 817
branches remained open throughout the COVID-19 pandemic, over
three-quarters of the branch network
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● 70k of 88k
colleagues working from home
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Diversified business model delivered a resilient operating
performance in H120
Despite the impacts of the COVID-19 pandemic, Barclays delivered a
H120 Group profit before tax of £1.3bn (H119: £3.0bn),
resulting in a return on tangible equity (RoTE) of 2.9% (H119:
9.1%) and earnings per share (EPS) of 4.0p (H119: 12.1p).
Pre-provision profits (profit before tax excluding credit
impairment charges) increased 27% to £5.0bn, while credit
impairment charges increased to £3.7bn (H119:
£0.9bn)
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Income
Strong
CIB income offsetting challenges in Barclays UK and
CC&P
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Group income of £11.6bn up 8% versus prior year
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● Corporate and Investment Bank (CIB) income of
£6.9bn up 31% versus prior year driven by a standout
performance in Markets
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● Consumer, Cards and Payments (CC&P) income
of £1.7bn down 21% versus prior year primarily due to
lower balances and consumer spending volumes
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● Barclays UK income of £3.2bn down 11%
versus prior year reflecting lower interest rates and UK
cards balances, COVID-19 customer support actions and the removal
of certain fees
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Costs
Improved
cost: income ratio
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Group total operating expenses of £6.6bn down 4% versus prior
year
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● Cost efficiencies
and cost discipline contributed to positive cost: income jaws of
12% resulting in an improved cost: income ratio of 57% (H119:
64%)
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Credit impairment charges
Increased
impairment provisioning driving higher coverage ratios across
portfolios
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Credit impairment charges increased to £3.7bn (H119:
£0.9bn), including £1.6bn in Q220
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● The charge reflects
£0.6bn in respect of single name wholesale loan charges in the
period and £2.4bn impact from revised IFRS 9
scenarios
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● Impairment coverage
ratio for the unsecured consumer lending portfolio increased to
12.0% (FY19: 8.1%). Coverage for exposures to selected industry
sectors regarded as particularly vulnerable to the COVID-19
pandemic increased to 4.0% (FY19: 2.3%)
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Capital, liquidity and TNAV
Strong
capital and liquidity position
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Common equity tier 1 (CET1) ratio of 14.2% (December 2019:
13.8%)
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● The increase over
the first half of the year reflects profits, regulatory measures
and cancellation of the full year 2019 dividend payment, partially
offset by higher Risk Weighted Assets (RWAs)
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● Headroom of 3.0%
above revised Maximum Distributable Amount (MDA) hurdle, which has
reduced to 11.2%3
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● Tangible net asset
value (TNAV) per share increased to 284p (December 2019:
262p)
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Group outlook
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Group outlook
Given
the uncertain economic outlook and low interest rate environment,
the second half of the year is expected to continue to be
challenging
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● Income in Barclays
UK and CC&P is expected to gradually recover from Q220 levels,
but certain headwinds, including from the low interest rate
environment, are likely to persist into 2021
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● After a strong
performance in H120 the CIB franchise is well positioned for the
future
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● Impairment in H220
is expected to remain above the level experienced in recent years,
but to be below the H120 impairment charge assuming no change in
macroeconomic forecasts
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● Continued focus on
cost discipline, but short-term headwinds remain from spend on
COVID-19 initiatives
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● In H220 there may
be headwinds to the CET1 ratio from procyclical effects on RWAs,
and reduced benefit from transitional relief on IFRS 9
impairment
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● The Board will
decide on future dividends and its capital returns policy at
FY20
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1
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Payment holiday data as at 22 July 2020. Business lending and
commercial paper issuance data as at 27 July 2020.
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2
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The Coronavirus Business Interruption Loan Scheme (CBILS) and the
Coronavirus Large Business Interruption Loan Scheme programmes
(together the CBILS programmes).
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3
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Barclays’ MDA hurdle reduced to
11.2% in July 2020, and will fluctuate through the cycle given
recent regulatory changes.
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Barclays Group results
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for the half year ended
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30.06.20
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30.06.19
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£m
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£m
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% Change
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Total income
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11,621
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10,790
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8
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Credit impairment charges
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(3,738)
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(928)
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Net operating income
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7,883
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9,862
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(20)
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Operating expenses
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(6,563)
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(6,758)
|
3
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Litigation and conduct
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(30)
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(114)
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74
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|
Total operating expenses
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(6,593)
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(6,872)
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4
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|
Other net (expenses)/income
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(18)
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24
|
|
|
Profit before tax
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1,272
|
3,014
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(58)
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|
Tax charge
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(113)
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(545)
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79
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|
Profit after tax
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1,159
|
2,469
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(53)
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|
Non-controlling interests
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(37)
|
(34)
|
(9)
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|
Other equity instrument holders
|
(427)
|
(363)
|
(18)
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Attributable profit
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695
|
2,072
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(66)
|
|
|
|
|
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Performance measures
|
|
|
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Return on average tangible shareholders' equity
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2.9%
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9.1%
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Average tangible shareholders' equity (£bn)
|
48.6
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45.7
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Cost: income ratio
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57%
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64%
|
|
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Loan loss rate (bps)
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207
|
54
|
|
|
Basic earnings per share
|
4.0p
|
12.1p
|
|
|
Dividend per share
|
-
|
3.0p
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
|
|
|
|
Profit before tax
|
1,302
|
3,128
|
(58)
|
|
Attributable profit
|
710
|
2,158
|
(67)
|
|
Return on average tangible shareholders' equity
|
2.9%
|
9.4%
|
|
|
Cost: income ratio
|
56%
|
63%
|
|
|
Basic earnings per share
|
4.1p
|
12.6p
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet and capital
management2
|
£bn
|
£bn
|
£bn
|
|
Tangible net asset value per share
|
284p
|
262p
|
275p
|
|
Common equity tier 1 ratio
|
14.2%
|
13.8%
|
13.4%
|
|
Common equity tier 1 capital
|
45.4
|
40.8
|
42.9
|
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Risk weighted assets
|
319.0
|
295.1
|
319.1
|
|
Average UK leverage ratio
|
4.7%
|
4.5%
|
4.7%
|
|
UK leverage ratio
|
5.2%
|
5.1%
|
5.1%
|
|
|
|
|
|
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Funding and liquidity
|
|
|
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Group liquidity pool (£bn)
|
298
|
211
|
238
|
|
Liquidity coverage ratio
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186%
|
160%
|
156%
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|
Loan: deposit ratio
|
76%
|
82%
|
82%
|
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1
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Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
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2
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Refer to pages 48 to 53 for further information on how capital,
RWAs and leverage are calculated.
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Group
Chief Executive Officer’s Review
“This has been a period focussed on supporting our customers,
clients and the UK economy through the COVID-19 pandemic –
providing the people and businesses that we serve with a bridge to
recovery in every way we can.
Since late March, we have helped to deliver around £22bn of
vitally important COVID-19 government support measures to UK
businesses to help fund them, including 250k government backed
Bounce Back Loans totalling c.£7.7bn, c.£2.5bn under the
CBILS programmes and c.£11.7bn of commercial paper
issuance.1
To help consumers with their short-term household finances more
than 600k payment
holidays1
have been provided along with other fee waivers and support
measures. We have also already distributed £45m of our
£100m Community Aid Package to COVID-19 related charities in
the UK, US and India to help rebuild communities.
Our CIB is taking a leading role helping clients to access capital
markets to raise equity and debt, underwriting c.£620bn of new
issuance in the quarter. In the equity capital markets, where we
are a UK leader and broker to 40 of the FTSE 100 and FTSE 250
companies, we supported UK companies to raise £4.0bn as they
navigate this crisis.
I remain very proud of the dedication and diligence of our 88k
colleagues who have been working extremely hard to help our clients
and customers through these tough times, playing our full part in
the recovery efforts and delivering support at scale.
The reason that we have been able to support the economy as
extensively as we have and remain financially resilient is because
of our diversified universal banking model. Our strength in
diversification has delivered pre-provision profits of £5.0bn
and, even after impairment, we remain profitable. Income increased
8% to £11.6bn for the half, with total costs down 4% to
£6.6bn resulting in positive jaws of 12%, and an improved cost
to income ratio of 57% versus prior year.
In our CIB, income increased 31% to £6.9bn driven by strong
performance in our Markets business, particularly in FICC (up 83%)
and Equities (up 26%), and an 8% increase in Banking fees income
through continued momentum in both debt and equity capital
markets.
Our consumer business income decreased by 11% in Barclays UK and
21% in CC&P as a result of the lower interest rate environment,
fewer interest earning balances, reduced payments activity and
action to provide support for customers.
Credit impairment charges increased to £3.7bn in the first
half due to the forecast impact of COVID-19. However, our improved
pre-impairment performance ensured that we still delivered
£1.3bn profit before tax for the first half of 2020, post
impairment.
In the quarter Group total income decreased 4% year-on-year to
£5.3bn, with total costs down 6% to £3.3bn. Following our
£1.6bn quarterly credit impairment charge, profit before tax
was £359m, and Group RoTE was 0.7%, with EPS of
0.5p.
Our CET1 ratio stands at 14.2% which underscores the strength of
our balance sheet. Although we will remain well capitalised and
ahead of our minimum requirements, we may experience stronger
capital headwinds in the second half of the year. The Board will
decide on future dividends and capital returns at the year-end
2020.
While the remainder of 2020 will be challenging, our diversified
model means we can remain financially resilient and continue to
support our customers and clients.”
James E Staley, Group Chief Executive Officer
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1
|
Payment holiday data as at 22 July 2020. Business lending and
commercial paper issuance data as at 27 July 2020.
|
Group Finance Director’s Review
Group performance
|
●
|
Statutory
RoTE was 2.9% (H119: 9.1%) and statutory EPS was 4.0p (H119:
12.1p)
|
|
●
|
Profit
before tax was £1,272m (H119: £3,014m). Excluding
litigation and conduct, profit before tax was £1,302m (H119:
£3,128m), as positive operating leverage from an 8% increase
in income and 3% reduction in operating expenses was offset by
materially higher credit impairment charges
|
|
●
|
Pre-provision
profits increased 27% to £5,010m, benefitting from the
Group’s diversified business model, as strong performance in
CIB more than offset income headwinds in Barclays UK and
CC&P
|
|
●
|
Total
income increased 8% to £11,621m. Barclays UK income decreased
11% due to ongoing margin pressure, including COVID-19 customer
support actions, base rate reductions, lower UK cards interest
earning lending (IEL) and overdraft balances, as well as lower
income due to the removal of certain fees in overdrafts and UK
cards. Barclays International income increased 16%, with CIB income
up 31% and CC&P income down 21%. Within CIB, Markets income
increased due to a strong performance across FICC and Equities.
Banking fees income increased reflecting a strong performance in
debt and equity capital markets, while there was a reduction in
Corporate income driven by fair value losses, margin compression
and carry costs on hedges. CC&P income decreased primarily as a
result of lower balances on co-branded cards and a c.£100m
valuation loss on Barclays’ preference shares in Visa
Inc.
|
|
●
|
Credit
impairment charges increased to £3,738m (H119: £928m).
This increase primarily reflects £591m in respect of single
name wholesale loan charges and £2.4bn impact from revised
IFRS 9 scenarios (the “COVID-19 scenarios”) reflecting
forecast deterioration in macroeconomic variables (including a
prolonged period of heightened UK and US unemployment), partially
offset by the estimated impact of central bank, government and
other support measures
|
|
●
|
Operating
expenses decreased 3% to £6,563m reflecting cost efficiencies
and continued cost discipline in the current environment. The Group
delivered positive cost: income jaws of 11% which resulted in the
Group cost: income ratio, excluding litigation and conduct,
reducing to 56% (H119: 63%). The Group accrued compensation costs
reflective of business performance, resulting in a compensation:
income ratio of 32.2% (H119: 34.4%)
|
|
●
|
The
effective tax rate was 8.9% (H119: 18.1%). This reflects the tax
benefit recognised for a re-measurement of UK deferred tax assets
as a result of the UK corporation tax rate being maintained at 19%.
The Group’s effective tax rate for the full year is expected
to be around 20%, excluding litigation and conduct
|
|
●
|
Attributable
profit was £695m (H119: £2,072m). Excluding litigation
and conduct, attributable profit was £710m (H119:
£2,158m), generating a RoTE of 2.9% (H119: 9.4%) and EPS of
4.1p (H119: 12.6p)
|
|
●
|
Total
assets increased to £1,385bn (December 2019: £1,140bn),
primarily due to a £78bn increase in derivative assets (with a
corresponding increase in derivative liabilities), £52bn
increase in cash collateral and settlement balances, and £26bn
increase in financial assets at fair value through the income
statement. The low interest rate environment has resulted in
significant decreases in forward interest rate curves which coupled
with increased client activity and the appreciation of period end
USD against GBP has resulted in rising asset values. Loans and
advances have also increased by £16bn, which reflects the
£7.1bn of lending under the government backed Bounce Back Loan
Scheme (BBLS) and the CBILS which Barclays UK has provided to
support businesses through the COVID-19 pandemic
|
|
●
|
TNAV
per share increased to 284p (December 2019: 262p) reflecting 4.0p
of statutory EPS and positive reserve movements, including
retirement benefit re-measurements and currency translation
reserves
|
Group capital and leverage
|
●
|
The
CET1 ratio increased to 14.2% (December 2019: 13.8%)
|
|
|
–
|
CET1
capital increased by £4.6bn to £45.4bn reflecting
resilient capital generation through £4.9bn of profits after
tax, excluding credit impairment charges and a £1.0bn increase
due to the cancellation of the full year 2019 dividend
|
|
|
–
|
Impairment
charges of £3.7bn before tax were partially offset by a
£1.3bn increase in IFRS 9 transitional relief after tax, which
was driven by £1.2bn in Q220 due to both the new impairment
charges and the implementation of new regulatory measures which
allow for 100% relief on increases in stage 1 and stage 2
impairment throughout 2020 and 2021
|
|
|
–
|
RWAs
increased by £23.9bn to £319.0bn primarily due to higher
market volatility and client activity within CIB as well as a
reduction in credit quality, partially offset by lower CC&P
balances
|
|
●
|
The
average UK leverage ratio increased to 4.7% (December 2019: 4.5%)
primarily driven by the increase in CET1 capital. The average
leverage exposure increased to £1,149bn (December 2019:
£1,143bn)
|
|
●
|
The UK
leverage ratio increased to 5.2% (December 2019: 5.1%) primarily
driven by the increase in CET1 capital, partially offset by an
increase in leverage exposure. The leverage exposure increased by
£63bn to £1,071bn, primarily driven by an increase in
IFRS total assets, partially offset by the Prudential Regulation
Authority’s (PRA) early adoption of CRR II settlement
netting
|
Group funding and liquidity
|
●
|
The
liquidity pool was £298bn (December 2019: £211bn) and the
liquidity coverage ratio (LCR) remained significantly above the
100% regulatory requirement at 186% (December 2019: 160%),
equivalent to a surplus of £135bn (December 2019: £78bn).
The increase in the liquidity pool, LCR and surplus is driven by a
12% growth in customer deposits and actions to maintain a prudent
funding and liquidity position in the current
environment
|
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£181.9bn (December 2019: £147.1bn). The Group issued
£4.8bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year. The Group is well advanced in its
MREL issuance plans, with a Barclays PLC MREL ratio of 32.4% as at
30 June 2020 (December 2019: 31.2%) relative to an estimated
requirement (including requisite buffers) of c.29.7% by 1 January
2022
|
Other matters
|
●
|
As at
30 June 2020, the Group held a provision of £774m relating to
Payment Protection Insurance (PPI). Since the provision increase in
2019, 70% of the items outstanding as at 30 September 2019 have
been resolved (including invalid items) and observations from these
resolved complaints continue to support the provision
level
|
Dividends and capital returns
|
●
|
In
response to a request from the PRA, and to preserve additional
capital for use in serving Barclays customers and clients through
the extraordinary challenges presented by the COVID-19 pandemic,
the Board agreed to cancel the 6.0p per ordinary share full year
2019 dividend. The Board also decided that for 2020 Barclays would
suspend its current capital returns policy and accordingly will not
undertake any interim ordinary share dividend payments, regulatory
accruals of ordinary share dividends, or share buybacks. The Board
will decide on future dividends and its capital returns policy at
year-end 2020
|
Outlook and guidance
|
●
|
Given
the uncertain economic outlook and low interest rate environment,
the second half of the year is expected to continue to be
challenging
|
|
|
–
|
Income
in Barclays UK and CC&P is expected to gradually recover from
Q220 levels, but certain headwinds including from the low interest
rate environment, are likely to persist into 2021
|
|
|
–
|
The CIB
performance in the first half benefitted from increased issuance
activity and trading volumes, with the franchise well positioned
for the future
|
|
|
–
|
Impairment
in H220 is expected to remain above the level experienced in recent
years, but to be below the H120 credit impairment charge assuming
no change in macroeconomic forecasts
|
|
●
|
Continued
focus on cost discipline, but short-term headwinds remain from
spend on COVID-19 initiatives
|
|
●
|
In H220
there may be headwinds to the Group’s CET1 ratio from
procyclical effects on RWAs, and reduced benefit from transitional
relief on IFRS 9 impairment. However, the Group’s CET1 ratio
will continue to be managed to maintain an appropriate headroom
above the MDA hurdle
|
|
●
|
The
Group continues to target a RoTE1 of >10% and cost:
income ratio of <60% over time, but targets remain subject to
change depending on the evolution of the COVID-19
pandemic
|
Tushar Morzaria, Group Finance Director
|
1
|
Excluding litigation and conduct.
|
Results by Business
|
Barclays UK
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
2,637
|
2,907
|
(9)
|
|
Net fee, commission and other income
|
534
|
641
|
(17)
|
|
Total income
|
3,171
|
3,548
|
(11)
|
|
Credit impairment charges
|
(1,064)
|
(421)
|
|
|
Net operating income
|
2,107
|
3,127
|
(33)
|
|
Operating expenses
|
(2,041)
|
(2,021)
|
(1)
|
|
Litigation and conduct
|
(11)
|
(44)
|
75
|
|
Total operating expenses
|
(2,052)
|
(2,065)
|
1
|
|
Other net income
|
13
|
-
|
|
|
Profit before tax
|
68
|
1,062
|
(94)
|
|
Attributable profit
|
52
|
750
|
(93)
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
202.0
|
193.7
|
189.1
|
|
Total assets
|
287.6
|
257.8
|
259.0
|
|
Customer deposits at amortised cost
|
225.7
|
205.5
|
200.9
|
|
Loan: deposit ratio
|
92%
|
96%
|
97%
|
|
Risk weighted assets
|
77.9
|
74.9
|
76.2
|
|
Period end allocated tangible equity
|
10.3
|
10.3
|
10.3
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
Key facts
|
30.06.20
|
30.06.19
|
|
|
Average loan to value of mortgage portfolio1
|
52%
|
50%
|
|
|
Average loan to value of new mortgage lending1
|
68%
|
67%
|
|
|
Number of branches
|
904
|
972
|
|
|
Mobile banking active customers
|
8.7m
|
7.9m
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
2.0%
|
1.8%
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
1.0%
|
14.5%
|
|
|
Average allocated tangible equity (£bn)
|
10.2
|
10.3
|
|
|
Cost: income ratio
|
65%
|
58%
|
|
|
Loan loss rate (bps)
|
101
|
43
|
|
|
Net interest margin
|
2.69%
|
3.11%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
% Change
|
|
Profit before tax
|
79
|
1,106
|
(93)
|
|
Attributable profit
|
60
|
782
|
(92)
|
|
Return on average allocated tangible equity
|
1.2%
|
15.1%
|
|
|
Cost: income ratio
|
64%
|
57%
|
|
|
1
|
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.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays UK
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Personal Banking
|
1,794
|
1,910
|
(6)
|
|
Barclaycard Consumer UK
|
803
|
987
|
(19)
|
|
Business Banking
|
574
|
651
|
(12)
|
|
Total income
|
3,171
|
3,548
|
(11)
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
Personal Banking
|
(264)
|
(88)
|
|
|
Barclaycard Consumer UK
|
(697)
|
(315)
|
|
|
Business Banking
|
(103)
|
(18)
|
|
|
Total credit impairment charges
|
(1,064)
|
(421)
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
|
Personal Banking
|
154.9
|
151.9
|
147.3
|
|
Barclaycard Consumer UK
|
11.5
|
14.7
|
15.1
|
|
Business Banking
|
35.6
|
27.1
|
26.7
|
|
Total loans and advances to customers at amortised
cost
|
202.0
|
193.7
|
189.1
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
Personal Banking
|
169.6
|
159.2
|
156.3
|
|
Barclaycard Consumer UK
|
0.1
|
-
|
-
|
|
Business Banking
|
56.0
|
46.3
|
44.6
|
|
Total customer deposits at amortised cost
|
225.7
|
205.5
|
200.9
|
Barclays
UK continued to support customers during H120, increasing lending
by £8.3bn, predominantly through £7.1bn of BBLS and
CBILS. Customer deposits grew by £20.2bn, reflecting the
impact from payment holidays, lower customer spending levels and
the deposit of BBLS and CBILS loan proceeds, demonstrating
franchise strength. Digital investment continues to transform
customer interactions, providing continuity of service and
resilience through the lockdown. During H120 Barclays UK provided
c.350k payment holidays to customers across material portfolios.
These comprised £0.7bn UK cards balances (5% of the
portfolio), £0.6bn UK personal loan balances (11% of the
portfolio), and £14.9bn mortgage balances (10% of the
portfolio).
Income statement – H120 compared to H119
|
●
|
Profit
before tax, excluding litigation and conduct, was £79m (H119:
£1,106m). RoTE was 1.2% (H119: 15.1%) reflecting a challenging
operating environment
|
|
●
|
Total
income decreased 11% to £3,171m. Net interest income reduced
9% to £2,637m (resulting in a lower net interest margin (NIM)
of 2.69% (H119: 3.11%)) reflecting COVID-19 customer support
actions, the interval between Q120 base rate reductions and deposit
re-pricing, as well as ongoing lower UK cards IEL and overdraft
balances. Net fee, commission and other income decreased 17% to
£534m, due to the removal of certain fees in overdrafts and UK
cards, and planned lower debt sales
|
|
|
–
|
Personal
Banking income decreased 6% to £1,794m, reflecting deposit
margin compression, COVID-19 customer support actions, and lower
overdraft balances and fees
|
|
|
–
|
Barclaycard
Consumer UK income decreased 19% to £803m as reduced borrowing
and spend levels by customers resulted in a lower level of IEL
balances, as well as planned lower debt sales
|
|
|
–
|
Business
Banking income decreased 12% to £574m due to deposit margin
compression, lower transactional fee volumes as a result of
COVID-19 and related customer support actions, partially offset by
lending and deposit balance growth
|
|
●
|
Credit
impairment charges increased to £1,064m (H119: £421m)
reflecting forecast deterioration in macroeconomic variables in the
COVID-19 scenarios, partially offset by the estimated impact of
central bank, government and other support measures
|
|
●
|
Operating
expenses increased 1% to £2,041m as efficiency savings were
more than offset by COVID-19 pandemic related costs
|
Balance sheet – 30 June 2020 compared to 31 December
2019
|
●
|
Loans
and advances to customers at amortised cost increased 4% to
£202.0bn predominantly through £7.1bn of BBLS and CBILS
lending, £1.9bn of mortgage growth and the £2.2bn
transfer of the Barclays Partner Finance portfolio from Barclays
International1 with effect from 1
April 2020, partially offset by lower UK cards
balances
|
|
●
|
Customer
deposits at amortised cost increased 10% to £225.7bn due to
lower spending levels, the impact of payment holidays, as well as
the deposit of BBLS and CBILS loan proceeds
|
|
●
|
RWAs
increased to £77.9bn (December 2019: £74.9bn) principally
driven by the transfer of the Barclays Partner Finance
portfolio1
and growth in mortgages
|
|
1
|
Refer to Segmental reporting note page 64 for further information.
The 2019 comparative figures have not been restated.
|
|
Barclays International
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
1,845
|
1,917
|
(4)
|
|
Net trading income
|
4,020
|
2,160
|
86
|
|
Net fee, commission and other income
|
2,789
|
3,396
|
(18)
|
|
Total income
|
8,654
|
7,473
|
16
|
|
Credit impairment charges
|
(2,619)
|
(492)
|
|
|
Net operating income
|
6,035
|
6,981
|
(14)
|
|
Operating expenses
|
(4,405)
|
(4,641)
|
5
|
|
Litigation and conduct
|
(11)
|
(30)
|
63
|
|
Total operating expenses
|
(4,416)
|
(4,671)
|
5
|
|
Other net income
|
10
|
31
|
(68)
|
|
Profit before tax
|
1,629
|
2,341
|
(30)
|
|
Attributable profit
|
997
|
1,620
|
(38)
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
138.1
|
132.8
|
134.8
|
|
Trading portfolio assets
|
109.5
|
113.3
|
120.0
|
|
Derivative financial instrument assets
|
306.8
|
228.9
|
243.8
|
|
Financial assets at fair value through the income
statement
|
154.3
|
128.4
|
154.7
|
|
Cash collateral and settlement balances
|
130.8
|
79.4
|
101.3
|
|
Other assets
|
236.3
|
178.6
|
196.8
|
|
Total assets
|
1,075.8
|
861.4
|
951.4
|
|
Deposits at amortised cost
|
241.2
|
210.0
|
212.0
|
|
Derivative financial instrument liabilities
|
307.6
|
228.9
|
243.0
|
|
Loan: deposit ratio
|
57%
|
63%
|
64%
|
|
Risk weighted assets
|
231.2
|
209.2
|
214.8
|
|
Period end allocated tangible equity
|
31.6
|
29.6
|
30.2
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
Performance measures
|
30.06.20
|
30.06.19
|
|
|
Return on average allocated tangible equity
|
6.2%
|
10.5%
|
|
|
Average allocated tangible equity (£bn)
|
32.4
|
30.8
|
|
|
Cost: income ratio
|
51%
|
63%
|
|
|
Loan loss rate (bps)
|
368
|
72
|
|
|
Net interest margin
|
3.67%
|
3.95%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
|
Profit before tax
|
1,640
|
2,371
|
(31)
|
|
Attributable profit
|
1,005
|
1,644
|
(39)
|
|
Return on average allocated tangible equity
|
6.2%
|
10.7%
|
|
|
Cost: income ratio
|
51%
|
62%
|
|
|
1
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
Corporate and Investment Bank
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
FICC
|
3,326
|
1,822
|
83
|
|
Equities
|
1,238
|
984
|
26
|
|
Markets
|
4,564
|
2,806
|
63
|
|
Advisory
|
239
|
353
|
(32)
|
|
Equity capital markets
|
247
|
187
|
32
|
|
Debt capital markets
|
881
|
727
|
21
|
|
Banking fees
|
1,367
|
1,267
|
8
|
|
Corporate lending
|
172
|
368
|
(53)
|
|
Transaction banking
|
830
|
859
|
(3)
|
|
Corporate
|
1,002
|
1,227
|
(18)
|
|
Total income
|
6,933
|
5,300
|
31
|
|
Credit impairment charges
|
(1,320)
|
(96)
|
|
|
Net operating income
|
5,613
|
5,204
|
8
|
|
Operating expenses
|
(3,370)
|
(3,479)
|
3
|
|
Litigation and conduct
|
(3)
|
(26)
|
88
|
|
Total operating expenses
|
(3,373)
|
(3,505)
|
4
|
|
Other net income
|
3
|
15
|
(80)
|
|
Profit before tax
|
2,243
|
1,714
|
31
|
|
Attributable profit
|
1,514
|
1,178
|
29
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
104.9
|
92.0
|
92.1
|
|
Trading portfolio assets
|
109.3
|
113.3
|
119.9
|
|
Derivative financial instrument assets
|
306.7
|
228.8
|
243.7
|
|
Financial assets at fair value through the income
statement
|
153.7
|
127.7
|
154.1
|
|
Cash collateral and settlement balances
|
129.7
|
78.5
|
100.4
|
|
Other assets
|
205.5
|
155.3
|
168.1
|
|
Total assets
|
1,009.8
|
795.6
|
878.3
|
|
Deposits at amortised cost
|
173.9
|
146.2
|
145.4
|
|
Derivative financial instrument liabilities
|
307.6
|
228.9
|
242.9
|
|
Risk weighted assets
|
198.3
|
171.5
|
175.9
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
Performance measures
|
30.06.20
|
30.06.19
|
|
|
Return on average allocated tangible equity
|
11.0%
|
9.3%
|
|
|
Average allocated tangible equity (£bn)
|
27.7
|
25.5
|
|
|
Cost: income ratio
|
49%
|
66%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
|
Profit before tax
|
2,246
|
1,740
|
29
|
|
Attributable profit
|
1,516
|
1,199
|
26
|
|
Return on average allocated tangible equity
|
11.0%
|
9.4%
|
|
|
Cost: income ratio
|
49%
|
66%
|
|
|
1
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
Consumer, Cards and Payments
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
1,176
|
1,385
|
(15)
|
|
Net fee, commission, trading and other income
|
545
|
788
|
(31)
|
|
Total income
|
1,721
|
2,173
|
(21)
|
|
Credit impairment charges
|
(1,299)
|
(396)
|
|
|
Net operating income
|
422
|
1,777
|
(76)
|
|
Operating expenses
|
(1,035)
|
(1,162)
|
11
|
|
Litigation and conduct
|
(8)
|
(4)
|
|
|
Total operating expenses
|
(1,043)
|
(1,166)
|
11
|
|
Other net income
|
7
|
16
|
(56)
|
|
(Loss)/profit before tax
|
(614)
|
627
|
|
|
Attributable (loss)/profit
|
(517)
|
442
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
33.2
|
40.8
|
42.7
|
|
Total assets
|
66.0
|
65.8
|
73.1
|
|
Deposits at amortised cost
|
67.3
|
63.8
|
66.6
|
|
Risk weighted assets
|
32.9
|
37.7
|
38.9
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
Key facts
|
30.06.20
|
30.06.19
|
|
|
30 day arrears rate – Barclaycard US
|
2.4%
|
2.4%
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
<660
|
14%
|
14%
|
|
|
>660
|
86%
|
86%
|
|
|
Total number of Barclaycard payments clients
|
c.368,000
|
383,382
|
|
|
Value of payments processed (£bn)1
|
156
|
174
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
(21.9%)
|
16.6%
|
|
|
Average allocated tangible equity (£bn)
|
4.7
|
5.3
|
|
|
Cost: income ratio
|
61%
|
54%
|
|
|
Loan loss rate (bps)
|
714
|
176
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
% Change
|
|
(Loss)/profit before tax
|
(606)
|
631
|
|
|
Attributable (loss)/profit
|
(511)
|
445
|
|
|
Return on average allocated tangible equity
|
(21.7%)
|
16.7%
|
|
|
Cost: income ratio
|
60%
|
53%
|
|
|
1
|
Includes £124bn (H119: £135bn) of merchant acquiring
payments.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
Barclays
International continued to support its customers and clients
through the COVID-19 pandemic by providing or facilitating lending,
through the range of support programmes which have been introduced,
as well as enabling the raising of debt and equity financing in the
capital markets. Support actions, including over 200k payment
holidays, have also been introduced to help customers and clients
through the difficulties they may be experiencing. Despite the
challenging operating environment, Barclays International delivered
a RoTE of 6.2%, excluding litigation and conduct, reflecting the
benefits of a diversified business model.
Income statement – H120 compared to H119
|
●
|
Profit
before tax, excluding litigation and conduct, decreased 31% to
£1,640m with a RoTE of 6.2% (H119: 10.7%), reflecting a RoTE
of 11.0% (H119: 9.4%) in CIB and (21.7)% (H119: 16.7%) in
CC&P
|
|
●
|
Total
income increased to £8,654m (H119: £7,473m)
|
|
|
–
|
CIB
income increased 31% to £6,933m
|
|
|
|
–
|
Markets
income of £4,564m (H119: £2,806m) was the best ever first
half of the year on a comparable basis1. FICC income
increased 83% to £3,326m driven by strong performances in
macro and credit, reflecting increased client activity and spread
widening. Equities income increased 26% to £1,238m driven by
cash and derivatives due to higher levels of client activity and
volatility. This Markets performance reflected an increase in
market share in Q1202
|
|
|
|
–
|
Banking
fees income increased 8% to £1,367m due to a strong
performance in debt and equity capital markets, representing the
best ever first half of the year on a comparable basis for these
businesses1, partially offset by
lower fee income in advisory which was impacted by a reduced fee
pool3
|
|
|
|
–
|
Within
Corporate, Transaction banking income decreased 3% to £830m as
deposit balance growth was more than offset by margin compression.
Corporate lending income decreased by 53% to £172m reflecting
the impact of c.£180m of losses on fair value lending
positions and c.£50m of losses on mark-to-market and carry
costs on related hedges in H120
|
|
|
–
|
CC&P
income decreased 21% to £1,721m as the impacts of the COVID-19
pandemic resulted in lower balances on co-branded cards, margin
compression and reduced payments activity. Q220 included a
c.£100m valuation loss on Barclays’ preference shares in
Visa Inc. resulting from the Q220 Supreme Court ruling concerning
charges paid by merchants
|
|
●
|
Credit
impairment charges increased to £2,619m (H119:
£492m)
|
|
|
–
|
CIB
credit impairment charges increased to £1,320m (H119:
£96m), reflecting £591m in respect of single name
wholesale loan charges and impacts from the COVID-19 scenarios,
partially offset by the estimated impact of central bank,
government and other support measures
|
|
|
–
|
CC&P
credit impairment charges increased to £1,299m (H119:
£396m) reflecting forecast deterioration in macroeconomic
variables in the COVID-19 scenarios, partially offset by the
estimated impact of central bank, government and other support
measures
|
|
●
|
Operating
expenses decreased 5% to £4,405m
|
|
|
–
|
CIB
operating expenses decreased 3% to £3,370m due to cost
efficiencies and discipline in the current environment
|
|
|
–
|
CC&P
operating expenses decreased 11% to £1,035m reflecting cost
efficiencies and lower marketing spend due to the impacts of the
COVID-19 pandemic
|
Balance sheet – 30 June 2020 compared to 31 December
2019
|
●
|
Loans
and advances increased £5.3bn to £138.1bn due to
increased lending within CIB, partially offset by lower card
balances in CC&P
|
|
●
|
Derivative
financial instrument assets and liabilities increased £77.9bn
to £306.8bn and £78.7bn to £307.6bn respectively
driven by a decrease in major interest rate curves and increased
trading volumes
|
|
●
|
Cash
collateral and settlements increased £51.4bn to £130.8bn
predominantly due to increased activity
|
|
●
|
Financial
assets at fair value through the income statement increased
£25.9bn to £154.3bn driven by increased secured
lending
|
|
●
|
Other
assets increased £57.7bn to £236.3bn predominantly due to
an increase in cash at central banks and securities within the
liquidity pool
|
|
●
|
Deposits
at amortised cost increased £31.2bn to £241.2bn due to
CIB clients increasing liquidity
|
|
●
|
RWAs
increased to £231.2bn (December 2019: £209.2bn) primarily
due to increased market volatility, client activity and a reduction
in credit quality within CIB, partially offset by lower CC&P
balances
|
|
1
|
Period covering Q114 – Q220. Pre 2014 financials were not
restated following re-segmentation in Q116.
|
|
2
|
Data Source: Coalition, Q120 Competitor Analysis. Market share
represents Barclays share of the total industry Revenue Pool.
Analysis is based on Barclays internal business structure and
internal revenues.
|
|
3
|
Data source: Dealogic for the period covering 1 January to 30 June
2020.
|
|
Head Office
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
(259)
|
(206)
|
(26)
|
|
Net fee, commission and other income
|
55
|
(25)
|
|
|
Total income
|
(204)
|
(231)
|
12
|
|
Credit impairment charges
|
(55)
|
(15)
|
|
|
Net operating income
|
(259)
|
(246)
|
(5)
|
|
Operating expenses
|
(117)
|
(96)
|
(22)
|
|
Litigation and conduct
|
(8)
|
(40)
|
80
|
|
Total operating expenses
|
(125)
|
(136)
|
8
|
|
Other net expenses
|
(41)
|
(7)
|
|
|
Loss before tax
|
(425)
|
(389)
|
(9)
|
|
Attributable loss
|
(354)
|
(298)
|
(19)
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
As at 30.06.19
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
21.7
|
21.0
|
22.4
|
|
Risk weighted assets
|
9.9
|
11.0
|
28.1
|
|
Period end allocated tangible equity
|
7.4
|
5.6
|
7.0
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
Performance measures
|
30.06.20
|
30.06.19
|
|
|
Average allocated tangible equity (£bn)
|
6.0
|
4.6
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
|
Loss before tax
|
(417)
|
(349)
|
(19)
|
|
Attributable loss
|
(355)
|
(268)
|
(32)
|
Income statement – H120 compared to H119
|
●
|
Loss
before tax, excluding litigation and conduct, was £417m (H119:
£349m). Including litigation and conduct charges of £8m
(H119: £40m), loss before tax was £425m (H119:
£389m)
|
|
●
|
Total
income was an expense of £204m (H119: £231m), which
included mark-to-market losses on legacy investments, treasury
items and funding costs of legacy capital instruments, partially
offset by hedge accounting gains and recognition of dividends on
Barclays’ stake in Absa Group Limited
|
|
●
|
Credit
impairment charges increased to £55m (H119: £15m) due to
impacts from the COVID-19 scenarios on the Italian home loan
portfolio, partially offset by the estimated impact of central
bank, government and other support measures
|
|
●
|
Operating expenses
were £117m (H119: £96m), which included £45m of
charitable donations from Barclays’ COVID-19 Community Aid
Package
|
|
●
|
Other
net expenses were £41m (H119: £7m), which included a fair
value loss on an investment in an associate
|
Balance sheet – 30 June 2020 compared to 31 December
2019
|
●
|
RWAs
decreased to £9.9bn (December 2019: £11.0bn) driven by
the reduction in value of Barclays’ stake in Absa Group
Limited
|
|
1
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
Quarterly Results Summary
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Net interest income
|
1,892
|
2,331
|
|
2,344
|
2,445
|
2,360
|
2,258
|
|
2,296
|
2,388
|
|
Net fee, commission and other income
|
3,446
|
3,952
|
|
2,957
|
3,096
|
3,178
|
2,994
|
|
2,777
|
2,741
|
|
Total income
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
5,073
|
5,129
|
|
Credit impairment charges
|
(1,623)
|
(2,115)
|
|
(523)
|
(461)
|
(480)
|
(448)
|
|
(643)
|
(254)
|
|
Net operating income
|
3,715
|
4,168
|
|
4,778
|
5,080
|
5,058
|
4,804
|
|
4,430
|
4,875
|
|
Operating costs
|
(3,310)
|
(3,253)
|
|
(3,308)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,624)
|
(3,329)
|
|
UK bank levy
|
-
|
-
|
|
(226)
|
-
|
-
|
-
|
|
(269)
|
-
|
|
Operating expenses
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,893)
|
(3,329)
|
|
Guaranteed Minimum Pensions (GMP) charge
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(140)
|
-
|
|
Litigation and conduct
|
(20)
|
(10)
|
|
(167)
|
(1,568)
|
(53)
|
(61)
|
|
(60)
|
(105)
|
|
Total operating expenses
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
(4,093)
|
(3,434)
|
|
Other net (expenses)/income
|
(26)
|
8
|
|
20
|
27
|
27
|
(3)
|
|
37
|
20
|
|
Profit before tax
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
1,461
|
|
Tax charge
|
(42)
|
(71)
|
|
(189)
|
(269)
|
(297)
|
(248)
|
|
(75)
|
(192)
|
|
Profit/(loss) after tax
|
317
|
842
|
|
908
|
(23)
|
1,234
|
1,235
|
|
299
|
1,269
|
|
Non-controlling interests
|
(21)
|
(16)
|
|
(42)
|
(4)
|
(17)
|
(17)
|
|
(83)
|
(43)
|
|
Other equity instrument holders
|
(206)
|
(221)
|
|
(185)
|
(265)
|
(183)
|
(180)
|
|
(230)
|
(176)
|
|
Attributable profit/(loss)
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
(14)
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
0.7%
|
5.1%
|
|
5.9%
|
(2.4%)
|
9.0%
|
9.2%
|
|
(0.1%)
|
9.4%
|
|
Average tangible shareholders' equity (£bn)
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
44.3
|
44.6
|
|
Cost: income ratio
|
62%
|
52%
|
|
70%
|
88%
|
64%
|
63%
|
|
81%
|
67%
|
|
Loan loss rate (bps)
|
179
|
223
|
|
60
|
52
|
56
|
54
|
|
77
|
30
|
|
Basic earnings/(loss) per share
|
0.5p
|
3.5p
|
|
3.9p
|
(1.7p)
|
6.0p
|
6.1p
|
|
(0.1p)
|
6.1p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Profit before tax
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
434
|
1,566
|
|
Attributable profit
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
48
|
1,135
|
|
Return on average tangible shareholders' equity
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
0.4%
|
10.2%
|
|
Cost: income ratio
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
79%
|
65%
|
|
Basic earnings per share
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
0.3p
|
6.6p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital
management2
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Total assets
|
1,385.1
|
1,444.3
|
|
1,140.2
|
1,290.4
|
1,232.8
|
1,193.5
|
|
1,133.3
|
1,170.8
|
|
Tangible net asset value per share
|
284p
|
284p
|
|
262p
|
274p
|
275p
|
266p
|
|
262p
|
260p
|
|
Common equity tier 1 ratio
|
14.2%
|
13.1%
|
|
13.8%
|
13.4%
|
13.4%
|
13.0%
|
|
13.2%
|
13.2%
|
|
Common equity tier 1 capital
|
45.4
|
42.5
|
|
40.8
|
41.9
|
42.9
|
41.4
|
|
41.1
|
41.7
|
|
Risk weighted assets
|
319.0
|
325.6
|
|
295.1
|
313.3
|
319.1
|
319.7
|
|
311.9
|
316.2
|
|
Average UK leverage ratio
|
4.7%
|
4.5%
|
|
4.5%
|
4.6%
|
4.7%
|
4.6%
|
|
4.5%
|
4.6%
|
|
Average UK leverage exposure
|
1,148.7
|
1,176.2
|
|
1,142.8
|
1,171.2
|
1,134.6
|
1,105.5
|
|
1,110.0
|
1,119.0
|
|
UK leverage ratio
|
5.2%
|
4.5%
|
|
5.1%
|
4.8%
|
5.1%
|
4.9%
|
|
5.1%
|
4.9%
|
|
UK leverage exposure
|
1,071.1
|
1,178.7
|
|
1,007.7
|
1,099.8
|
1,079.4
|
1,065.0
|
|
998.6
|
1,063.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
|
Group liquidity (£bn)
|
298
|
237
|
|
211
|
226
|
238
|
232
|
|
227
|
213
|
|
Liquidity coverage ratio
|
186%
|
155%
|
|
160%
|
151%
|
156%
|
160%
|
|
169%
|
161%
|
|
Loan: deposit ratio
|
76%
|
79%
|
|
82%
|
82%
|
82%
|
80%
|
|
83%
|
83%
|
|
1
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
2
|
Refer to pages 48 to 53 for further information on how capital,
RWAs and leverage are calculated.
|
Quarterly Results by Business
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Net interest income
|
1,225
|
1,412
|
|
1,478
|
1,503
|
1,438
|
1,469
|
|
1,513
|
1,529
|
|
Net fee, commission and other income
|
242
|
292
|
|
481
|
343
|
333
|
308
|
|
350
|
367
|
|
Total income
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
1,896
|
|
Credit impairment charges
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
(115)
|
|
Net operating income
|
884
|
1,223
|
|
1,769
|
1,745
|
1,541
|
1,586
|
|
1,567
|
1,781
|
|
Operating costs
|
(1,018)
|
(1,023)
|
|
(1,023)
|
(952)
|
(1,022)
|
(999)
|
|
(1,114)
|
(988)
|
|
UK bank levy
|
-
|
-
|
|
(41)
|
-
|
-
|
-
|
|
(46)
|
-
|
|
Operating expenses
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
(1,160)
|
(988)
|
|
Litigation and conduct
|
(6)
|
(5)
|
|
(58)
|
(1,480)
|
(41)
|
(3)
|
|
(15)
|
(54)
|
|
Total operating expenses
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
(1,175)
|
(1,042)
|
|
Other net income/(expenses)
|
13
|
-
|
|
-
|
-
|
(1)
|
1
|
|
(2)
|
1
|
|
(Loss)/profit before tax
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
390
|
740
|
|
Attributable (loss)/profit
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
241
|
510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
186.7
|
|
Total assets
|
287.6
|
267.5
|
|
257.8
|
257.9
|
259.0
|
253.1
|
|
249.7
|
252.0
|
|
Customer deposits at amortised cost
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
195.8
|
|
Loan: deposit ratio
|
92%
|
96%
|
|
96%
|
97%
|
97%
|
96%
|
|
96%
|
96%
|
|
Risk weighted assets
|
77.9
|
77.7
|
|
74.9
|
76.8
|
76.2
|
76.6
|
|
75.2
|
74.8
|
|
Period end allocated tangible equity1
|
10.3
|
10.3
|
|
10.3
|
10.4
|
10.3
|
10.5
|
|
10.2
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity1
|
(4.8%)
|
6.9%
|
|
17.0%
|
(34.9%)
|
12.7%
|
16.3%
|
|
9.6%
|
20.1%
|
|
Average allocated tangible equity (£bn)1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
10.1
|
10.1
|
|
Cost: income ratio
|
70%
|
60%
|
|
57%
|
132%
|
60%
|
56%
|
|
63%
|
55%
|
|
Loan loss rate (bps)
|
111
|
96
|
|
38
|
20
|
47
|
40
|
|
61
|
24
|
|
Net interest margin
|
2.48%
|
2.91%
|
|
3.03%
|
3.10%
|
3.05%
|
3.18%
|
|
3.20%
|
3.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
(Loss)/profit before tax
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
405
|
794
|
|
Attributable (loss)/profit
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
253
|
558
|
|
Return on average allocated tangible equity1
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
10.1%
|
22.0%
|
|
Cost: income ratio
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
62%
|
52%
|
|
1
|
Q120 has been restated to reflect allocated tangible equity being
calculated as 13.0% of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays UK
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Personal Banking
|
826
|
968
|
|
1,064
|
1,035
|
946
|
964
|
|
998
|
1,021
|
|
Barclaycard Consumer UK
|
367
|
436
|
|
533
|
472
|
497
|
490
|
|
522
|
551
|
|
Business Banking
|
274
|
300
|
|
362
|
339
|
328
|
323
|
|
343
|
324
|
|
Total income
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
1,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(130)
|
(134)
|
|
(71)
|
(36)
|
(36)
|
(52)
|
|
(44)
|
(8)
|
|
Barclaycard Consumer UK
|
(396)
|
(301)
|
|
(108)
|
(49)
|
(175)
|
(140)
|
|
(250)
|
(88)
|
|
Business Banking
|
(57)
|
(46)
|
|
(11)
|
(16)
|
(19)
|
1
|
|
(2)
|
(19)
|
|
Total credit impairment charges
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
(115)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Personal Banking
|
154.9
|
153.4
|
|
151.9
|
150.1
|
147.3
|
145.9
|
|
146.0
|
145.4
|
|
Barclaycard Consumer UK
|
11.5
|
13.6
|
|
14.7
|
14.9
|
15.1
|
15.0
|
|
15.3
|
15.3
|
|
Business Banking
|
35.6
|
28.7
|
|
27.1
|
28.2
|
26.7
|
26.6
|
|
26.3
|
26.0
|
|
Total loans and advances to customers at amortised
cost
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
186.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
169.6
|
161.4
|
|
159.2
|
157.9
|
156.3
|
154.1
|
|
154.0
|
153.4
|
|
Barclaycard Consumer UK
|
0.1
|
-
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
Business Banking
|
56.0
|
46.1
|
|
46.3
|
45.4
|
44.6
|
43.2
|
|
43.3
|
42.4
|
|
Total customer deposits at amortised cost
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
195.8
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Net interest income
|
847
|
998
|
|
965
|
1,059
|
1,017
|
900
|
|
984
|
965
|
|
Net trading income
|
1,660
|
2,360
|
|
929
|
1,110
|
1,016
|
1,144
|
|
837
|
1,103
|
|
Net fee, commission and other income
|
1,503
|
1,286
|
|
1,558
|
1,581
|
1,870
|
1,526
|
|
1,400
|
1,222
|
|
Total income
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
3,221
|
3,290
|
|
Credit impairment charges
|
(1,010)
|
(1,609)
|
|
(329)
|
(352)
|
(247)
|
(245)
|
|
(354)
|
(143)
|
|
Net operating income
|
3,000
|
3,035
|
|
3,123
|
3,398
|
3,656
|
3,325
|
|
2,867
|
3,147
|
|
Operating costs
|
(2,186)
|
(2,219)
|
|
(2,240)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,441)
|
(2,277)
|
|
UK bank levy
|
-
|
-
|
|
(174)
|
-
|
-
|
-
|
|
(210)
|
-
|
|
Operating expenses
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,651)
|
(2,277)
|
|
Litigation and conduct
|
(11)
|
-
|
|
(86)
|
-
|
(11)
|
(19)
|
|
(33)
|
(32)
|
|
Total operating expenses
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
(2,684)
|
(2,309)
|
|
Other net income
|
4
|
6
|
|
17
|
21
|
13
|
18
|
|
32
|
12
|
|
Profit before tax
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
215
|
850
|
|
Attributable profit/(loss)
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
(21)
|
687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
138.1
|
167.0
|
|
132.8
|
138.1
|
134.8
|
130.9
|
|
127.2
|
132.4
|
|
Trading portfolio assets
|
109.5
|
101.6
|
|
113.3
|
119.4
|
120.0
|
117.2
|
|
104.0
|
124.6
|
|
Derivative financial instrument assets
|
306.8
|
341.5
|
|
228.9
|
286.0
|
243.8
|
217.3
|
|
222.1
|
214.8
|
|
Financial assets at fair value through the income
statement
|
154.3
|
188.4
|
|
128.4
|
158.0
|
154.7
|
153.5
|
|
144.7
|
147.8
|
|
Cash collateral and settlement balances
|
130.8
|
153.2
|
|
79.4
|
112.5
|
101.3
|
97.8
|
|
74.3
|
94.3
|
|
Other assets
|
236.3
|
201.5
|
|
178.6
|
195.6
|
196.8
|
202.3
|
|
189.8
|
186.3
|
|
Total assets
|
1,075.8
|
1,153.2
|
|
861.4
|
1,009.6
|
951.4
|
919.0
|
|
862.1
|
900.2
|
|
Deposits at amortised cost
|
241.2
|
263.3
|
|
210.0
|
217.6
|
212.0
|
215.5
|
|
197.2
|
200.3
|
|
Derivative financial instrument liabilities
|
307.6
|
338.8
|
|
228.9
|
283.3
|
243.0
|
213.5
|
|
219.6
|
213.7
|
|
Loan: deposit ratio
|
57%
|
63%
|
|
63%
|
63%
|
64%
|
61%
|
|
65%
|
66%
|
|
Risk weighted assets
|
231.2
|
237.9
|
|
209.2
|
223.1
|
214.8
|
216.1
|
|
210.7
|
214.6
|
|
Period end allocated tangible equity1
|
31.6
|
33.1
|
|
29.6
|
31.4
|
30.2
|
30.6
|
|
29.9
|
30.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity1
|
5.6%
|
6.8%
|
|
5.1%
|
9.9%
|
10.7%
|
10.4%
|
|
(0.3%)
|
8.8%
|
|
Average allocated tangible equity (£bn)1
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
31.3
|
31.1
|
|
Cost: income ratio
|
55%
|
48%
|
|
72%
|
61%
|
63%
|
62%
|
|
83%
|
70%
|
|
Loan loss rate (bps)
|
284
|
377
|
|
96
|
99
|
72
|
73
|
|
107
|
41
|
|
Net interest margin
|
3.43%
|
3.93%
|
|
4.29%
|
4.10%
|
3.91%
|
3.99%
|
|
3.98%
|
3.87%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Profit before tax
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
248
|
882
|
|
Attributable profit
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
13
|
713
|
|
Return on average allocated tangible equity1
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
0.2%
|
9.2%
|
|
Cost: income ratio
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
82%
|
69%
|
|
1
|
Q120 has been restated to reflect allocated tangible equity being
calculated as 13.0% of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
FICC
|
1,468
|
1,858
|
|
726
|
816
|
920
|
902
|
|
570
|
688
|
|
Equities
|
674
|
564
|
|
409
|
494
|
517
|
467
|
|
375
|
471
|
|
Markets
|
2,142
|
2,422
|
|
1,135
|
1,310
|
1,437
|
1,369
|
|
945
|
1,159
|
|
Advisory
|
84
|
155
|
|
202
|
221
|
221
|
132
|
|
242
|
151
|
|
Equity capital markets
|
185
|
62
|
|
56
|
86
|
104
|
83
|
|
53
|
55
|
|
Debt capital markets
|
463
|
418
|
|
322
|
381
|
373
|
354
|
|
330
|
313
|
|
Banking fees
|
732
|
635
|
|
580
|
688
|
698
|
569
|
|
625
|
519
|
|
Corporate lending
|
61
|
111
|
|
202
|
195
|
216
|
152
|
|
243
|
197
|
|
Transaction banking
|
381
|
449
|
|
397
|
424
|
444
|
415
|
|
412
|
416
|
|
Corporate
|
442
|
560
|
|
599
|
619
|
660
|
567
|
|
655
|
613
|
|
Other
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(74)
|
(56)
|
|
Total income
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
2,151
|
2,235
|
|
Credit impairment (charges)/releases
|
(596)
|
(724)
|
|
(30)
|
(31)
|
(44)
|
(52)
|
|
(35)
|
3
|
|
Net operating income
|
2,720
|
2,893
|
|
2,284
|
2,586
|
2,751
|
2,453
|
|
2,116
|
2,238
|
|
Operating costs
|
(1,680)
|
(1,690)
|
|
(1,691)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(1,835)
|
(1,712)
|
|
UK bank levy
|
-
|
-
|
|
(156)
|
-
|
-
|
-
|
|
(188)
|
-
|
|
Operating expenses
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(2,023)
|
(1,712)
|
|
Litigation and conduct
|
(3)
|
-
|
|
(79)
|
(4)
|
(7)
|
(19)
|
|
(23)
|
(32)
|
|
Total operating expenses
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
(2,046)
|
(1,744)
|
|
Other net income
|
3
|
-
|
|
1
|
12
|
3
|
12
|
|
15
|
4
|
|
Profit before tax
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
85
|
498
|
|
Attributable profit/(loss)
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
(84)
|
431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
104.9
|
128.2
|
|
92.0
|
95.8
|
92.1
|
90.6
|
|
86.4
|
93.3
|
|
Trading portfolio assets
|
109.3
|
101.5
|
|
113.3
|
119.3
|
119.9
|
117.2
|
|
104.0
|
124.5
|
|
Derivative financial instruments assets
|
306.7
|
341.4
|
|
228.8
|
286.0
|
243.7
|
217.3
|
|
222.1
|
214.8
|
|
Financial assets at fair value through the income
statement
|
153.7
|
187.8
|
|
127.7
|
157.3
|
154.1
|
152.9
|
|
144.2
|
147.3
|
|
Cash collateral and settlement balances
|
129.7
|
152.2
|
|
78.5
|
111.6
|
100.4
|
96.9
|
|
73.4
|
93.3
|
|
Other assets
|
205.5
|
171.4
|
|
155.3
|
171.5
|
168.1
|
163.2
|
|
160.4
|
153.8
|
|
Total assets
|
1,009.8
|
1,082.5
|
|
795.6
|
941.5
|
878.3
|
838.1
|
|
790.5
|
827.0
|
|
Deposits at amortised cost
|
173.9
|
198.4
|
|
146.2
|
152.1
|
145.4
|
151.4
|
|
136.3
|
137.6
|
|
Derivative financial instrument liabilities
|
307.6
|
338.7
|
|
228.9
|
283.2
|
242.9
|
213.5
|
|
219.6
|
213.7
|
|
Risk weighted assets
|
198.3
|
201.7
|
|
171.5
|
184.9
|
175.9
|
176.6
|
|
170.9
|
175.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity1
|
9.6%
|
12.5%
|
|
3.0%
|
9.1%
|
9.2%
|
9.3%
|
|
(1.3%)
|
6.6%
|
|
Average allocated tangible equity (£bn)1
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
26.0
|
25.9
|
|
Cost: income ratio
|
51%
|
47%
|
|
83%
|
66%
|
67%
|
65%
|
|
95%
|
78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Profit before tax
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
108
|
530
|
|
Attributable profit/(loss)
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
(57)
|
456
|
|
Return on average allocated tangible equity1
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
(0.9%)
|
7.0%
|
|
Cost: income ratio
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
94%
|
77%
|
|
1
|
Q120 has been restated to reflect allocated tangible equity being
calculated as 13.0% of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Net interest income
|
513
|
663
|
|
717
|
720
|
720
|
665
|
|
664
|
691
|
|
Net fee, commission, trading and other income
|
181
|
364
|
|
421
|
413
|
388
|
400
|
|
406
|
364
|
|
Total income
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
1,070
|
1,055
|
|
Credit impairment charges
|
(414)
|
(885)
|
|
(299)
|
(321)
|
(203)
|
(193)
|
|
(319)
|
(146)
|
|
Net operating income
|
280
|
142
|
|
839
|
812
|
905
|
872
|
|
751
|
909
|
|
Operating costs
|
(506)
|
(529)
|
|
(549)
|
(570)
|
(575)
|
(587)
|
|
(606)
|
(565)
|
|
UK bank levy
|
-
|
-
|
|
(18)
|
-
|
-
|
-
|
|
(22)
|
-
|
|
Operating expenses
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
(628)
|
(565)
|
|
Litigation and conduct
|
(8)
|
-
|
|
(7)
|
4
|
(4)
|
-
|
|
(10)
|
-
|
|
Total operating expenses
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
(638)
|
(565)
|
|
Other net income
|
1
|
6
|
|
16
|
9
|
10
|
6
|
|
17
|
8
|
|
(Loss)/profit before tax
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
130
|
352
|
|
Attributable (loss)/profit
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
63
|
256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
33.2
|
38.8
|
|
40.8
|
42.3
|
42.7
|
40.3
|
|
40.8
|
39.1
|
|
Total assets
|
66.0
|
70.7
|
|
65.8
|
68.1
|
73.1
|
80.9
|
|
71.6
|
73.2
|
|
Deposits at amortised cost
|
67.3
|
64.9
|
|
63.8
|
65.5
|
66.6
|
64.1
|
|
60.9
|
62.7
|
|
Risk weighted assets
|
32.9
|
36.2
|
|
37.7
|
38.2
|
38.9
|
39.5
|
|
39.8
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity1
|
(20.2%)
|
(23.5%)
|
|
15.9%
|
14.2%
|
17.8%
|
15.4%
|
|
4.8%
|
19.8%
|
|
Average allocated tangible equity (£bn)1
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
5.3
|
5.2
|
|
Cost: income ratio
|
74%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
60%
|
54%
|
|
Loan loss rate (bps)
|
455
|
846
|
|
273
|
283
|
180
|
182
|
|
290
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
(Loss)/profit before tax
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
140
|
352
|
|
Attributable (loss)/profit
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
70
|
257
|
|
Return on average allocated tangible equity1
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
5.4%
|
19.9%
|
|
Cost: income ratio
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
59%
|
54%
|
|
1
|
Q120 has been restated to reflect allocated tangible equity being
calculated as 13.0% of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Net interest income
|
(180)
|
(79)
|
|
(99)
|
(117)
|
(95)
|
(111)
|
|
(201)
|
(106)
|
|
Net fee, commission and other income
|
41
|
14
|
|
(11)
|
62
|
(41)
|
16
|
|
190
|
49
|
|
Total income
|
(139)
|
(65)
|
|
(110)
|
(55)
|
(136)
|
(95)
|
|
(11)
|
(57)
|
|
Credit impairment (charges)/releases
|
(30)
|
(25)
|
|
(4)
|
(8)
|
(3)
|
(12)
|
|
7
|
4
|
|
Net operating expenses
|
(169)
|
(90)
|
|
(114)
|
(63)
|
(139)
|
(107)
|
|
(4)
|
(53)
|
|
Operating costs
|
(106)
|
(11)
|
|
(45)
|
(59)
|
(44)
|
(52)
|
|
(69)
|
(64)
|
|
UK bank levy
|
-
|
-
|
|
(11)
|
-
|
-
|
-
|
|
(13)
|
-
|
|
Operating expenses
|
(106)
|
(11)
|
|
(56)
|
(59)
|
(44)
|
(52)
|
|
(82)
|
(64)
|
|
GMP charge
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(140)
|
-
|
|
Litigation and conduct
|
(3)
|
(5)
|
|
(23)
|
(88)
|
(1)
|
(39)
|
|
(12)
|
(19)
|
|
Total operating expenses
|
(109)
|
(16)
|
|
(79)
|
(147)
|
(45)
|
(91)
|
|
(234)
|
(83)
|
|
Other net (expenses)/income
|
(43)
|
2
|
|
3
|
6
|
15
|
(22)
|
|
7
|
7
|
|
Loss before tax
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
(231)
|
(129)
|
|
Attributable loss
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
(234)
|
(147)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Total assets
|
21.7
|
23.6
|
|
21.0
|
22.9
|
22.4
|
21.4
|
|
21.5
|
18.6
|
|
Risk weighted assets
|
9.9
|
10.0
|
|
11.0
|
13.4
|
28.1
|
27.0
|
|
26.0
|
26.8
|
|
Period end allocated tangible equity1
|
7.4
|
6.0
|
|
5.6
|
5.5
|
7.0
|
4.5
|
|
4.9
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)1
|
6.4
|
5.6
|
|
5.2
|
5.8
|
4.8
|
4.3
|
|
2.9
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Loss before tax
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
(219)
|
(110)
|
|
Attributable loss
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
(218)
|
(136)
|
|
1
|
Q120 has been restated to reflect allocated tangible equity being
calculated as 13.0% of RWAs for each business, adjusted for capital
deductions, excluding goodwill and intangible assets.
|
|
2
|
Refer to pages 88 to 97 for further information and calculations of
performance measures excluding litigation and conduct.
|
Performance Management
|
Margins and balances
|
|
|
|
|
|
|
|
|
Half year ended 30.06.20
|
Half year ended 30.06.19
|
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
Barclays UK
|
2,637
|
197,023
|
2.69
|
2,907
|
188,377
|
3.11
|
|
Barclays International1
|
1,848
|
101,286
|
3.67
|
1,947
|
99,478
|
3.95
|
|
Total Barclays UK and Barclays International
|
4,485
|
298,309
|
3.02
|
4,854
|
287,855
|
3.40
|
|
Other2
|
(262)
|
|
|
(236)
|
|
|
|
Total Barclays Group
|
4,223
|
|
|
4,618
|
|
|
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
|
2
|
Other includes Head Office and non-lending related investment
banking businesses not included in Barclays International
margins.
|
The
Group’s combined product and equity structural hedge notional
as at 30 June 2020 was £174bn, with an average duration of 2.5
to 3 years. Group net interest income includes gross structural
hedge contributions of £0.9bn (H119: £0.9bn) and net
structural hedge contributions of £0.6bn (H119: £0.2bn).
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.
The
Group net interest margin decreased 38bps to 3.02%. Barclays UK net
interest margin decreased 42bps to 2.69% reflecting COVID-19
customer support actions, the customer communications interval
between Q120 base rate reductions and deposit re-pricing, as well
as a change in business mix due to balance growth in Mortgages and
ongoing lower UK cards IEL and overdraft balances. Barclays
International net interest margin decreased 28bps to 3.67%
reflecting a change in the business mix of lower cards balances and
increased lending in the CIB.
|
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
Three months ended 30.06.20
|
£m
|
£m
|
%
|
|
Barclays UK
|
1,225
|
199,039
|
2.48
|
|
Barclays International1
|
868
|
101,706
|
3.43
|
|
Total Barclays UK and Barclays International
|
2,093
|
300,745
|
2.80
|
|
|
|
|
|
|
Three months ended 31.03.20
|
|
|
|
|
Barclays UK
|
1,412
|
195,204
|
2.91
|
|
Barclays International1
|
980
|
100,171
|
3.93
|
|
Total Barclays UK and Barclays International
|
2,392
|
295,375
|
3.26
|
|
|
|
|
|
|
Three months ended 31.12.19
|
|
|
|
|
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
|
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
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 firm are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the Group, the
process by which the Group sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking.
The
framework identifies eight principal risks: credit risk; market
risk; treasury and capital risk; operational risk; model risk;
conduct risk; reputation risk; and legal risk. Further detail on
these risks and how they are managed is available in the Barclays
PLC Annual Report 2019 (pages 127 to 146) or online at home.barclays/annualreport. There have been
no significant changes to these principal risks or previously
identified material existing and emerging risks in the period, save
that details of an additional material risk identified in H120
which potentially impacts more than one principal risk are set out
below.
The
following section also gives an overview of credit risk, market
risk, and treasury and capital risk for the period.
Risks relating to the impact of COVID-19
The
COVID-19 pandemic has had, and continues to have, a material impact
on businesses around the world and the economic environments in
which they operate. There are a number of factors associated with
the pandemic and its impact on global economies that could have a
material adverse effect on (among other things) the profitability,
capital and liquidity of financial institutions such as
Barclays.
The
COVID-19 pandemic has caused disruption to the Group’s
customers, suppliers and staff globally. Most jurisdictions in
which the Group operates have implemented severe restrictions on
the movement of their respective populations, with a resultant
significant impact on economic activity in those jurisdictions.
These restrictions are being determined by the governments of
individual jurisdictions (including through the implementation of
emergency powers) and impacts (including the timing of
implementation and any subsequent lifting of restrictions) may vary
from jurisdiction to jurisdiction. It remains unclear how this will
evolve through 2020 (including whether there will be subsequent
waves of the COVID-19 pandemic and whether and in what manner
previously lifted restrictions will be re-imposed) and the Group
continues to monitor the situation closely. However, despite the
COVID-19 contingency plans established by the Group, its ability to
conduct business may be adversely affected by disruptions to its
infrastructure, business processes and technology services,
resulting from the unavailability of staff due to illness or the
failure of third parties to supply services. This may cause
significant customer detriment, costs to reimburse losses incurred
by the Group’s customers, potential litigation costs
(including regulatory fines, penalties and other sanctions), and
reputational damage.
In many
of the jurisdictions in which the Group operates, schemes have been
initiated by central banks, national governments and regulators to
provide financial support to parts of the economy most impacted by
the COVID-19 pandemic. These schemes have been designed and
implemented at pace, meaning lenders (including Barclays) continue
to address operational issues which have arisen in connection with
the implementation of the schemes, including resolving the
interaction between the schemes and existing law and regulation. In
addition, the details of how these schemes will impact the
Group’s customers and therefore the impact on the Group
remains uncertain at this stage. However, certain actions (such as
the introduction of payment holidays for certain consumer lending
products or the cancellation or waiver of fees associated with
certain products) may negatively impact the effective interest rate
earned on certain of the Group’s portfolios and lower fee
income being earned on certain products. Lower interest rates
globally will negatively impact net interest income earned on
certain of the Group’s portfolios. Both of these factors may
in turn negatively impact the Group’s profitability.
Furthermore, the introduction of, and participation in,
central-bank supported loan and other financing schemes introduced
as a result of the COVID-19 pandemic may negatively impact the
Group’s RWAs, level of impairment and, in turn, capital
position (particularly when any transitional relief applied to the
calculation of RWAs and impairment expires). This may be
exacerbated if the Group is required by any government or regulator
to offer forbearance or additional financial relief to
borrowers.
As
these schemes and other financial support schemes provided by
national governments (such as job retention and furlough schemes)
expire, are withdrawn or are no longer supported, the Group may
experience a higher volume of defaults and delinquencies in certain
portfolios and may initiate collection and enforcement actions to
recover defaulted debts. Where defaulting borrowers are harmed by
the Group’s conduct, this may give rise to civil legal
proceedings, including class actions, regulatory censure,
potentially significant fines and other sanctions, and reputational
damage. Other legal disputes may also arise between the Group and
defaulting borrowers relating to matters such as breaches or
enforcement of legal rights or obligations arising under loan and
other credit agreements. Adverse findings in any such matters may
result in the Group’s rights not being enforced as intended.
For further details on legal risk and legal, competition and
regulatory matters, refer to Note 20 on page 81.
The
actions taken by various governments and central banks, in
particular in the United Kingdom and the United States, may
indicate a view on the potential severity of any economic downturn
and post recovery environment, which from a commercial, regulatory
and risk perspective could be significantly different to past
crises and persist for a prolonged period. The COVID-19 pandemic
has led to a weakening in gross domestic product (GDP) in most
jurisdictions in which the Group operates and an expectation of
higher unemployment and lower house prices in those same
jurisdictions. These factors all have a significant impact on the
modelling of expected credit losses (ECL) by the Group. As a
result, the Group has experienced higher ECLs during the first half
of 2020 compared to prior periods and this trend may continue in
the second half of 2020. The economic environment remains uncertain
and future impairment charges may be subject to further volatility
(including from changes to macroeconomic variable forecasts)
depending on the longevity of the COVID-19 pandemic and related
containment measures, as well as the longer term effectiveness of
central bank, government and other support measures. For further
details on macroeconomic variables used in the calculation of ECLs,
refer to page 32. In addition, ECLs may be adversely impacted by
increased levels of default for single name exposures in certain
sectors directly impacted by the COVID-19 pandemic (such as the oil
and gas, retail, airline, and hospitality and leisure
sectors).
Furthermore,
the Group relies on models to support a broad range of business and
risk management activities, including informing business decisions
and strategies, measuring and limiting risk, valuing exposures
(including the calculation of impairment), conducting stress
testing and assessing capital adequacy. Models are, by their
nature, imperfect and incomplete representations of reality because
they rely on assumptions and inputs, and so they may be subject to
errors affecting the accuracy of their outputs and/or misused. This
may be exacerbated when dealing with unprecedented scenarios, such
as the COVID-19 pandemic, due to the lack of reliable historical
reference points and data. For further details on model risk, refer
to page 136 of the Barclays PLC Annual Report 2019.
The
disruption to economic activity globally caused by the COVID-19
pandemic could adversely impact the Group’s other assets such
as goodwill and intangibles, and the value of Barclays PLC’s
investments in subsidiaries. It could also impact the Group’s
income due to lower lending and transaction volumes due to
volatility or weakness in the capital markets. Other potential
risks include credit rating migration which could negatively impact
the Group’s RWAs and capital position, and potential
liquidity stress due to (among other things) increased customer
drawdowns, notwithstanding the significant initiatives that
governments and central banks have put in place to support funding
and liquidity. Furthermore, a significant increase in the
utilisation of credit cards by Barclaycard customers could have a
negative impact on the Group’s RWAs and capital
position.
Central
bank and government actions and other support measures taken in
response to the COVID-19 pandemic may also create restrictions in
relation to capital. For example, on 31 March 2020 in response to a
request from the PRA and to preserve additional capital for use in
serving Barclays’ customers and clients, the Board agreed to
cancel the 6.0p per ordinary share full year 2019 dividend that was
due for payment on 3 April 2020. In addition, the Board decided
that for 2020 Barclays PLC will not undertake any interim ordinary
share dividend payments, accrual of ordinary share dividends, or
share buybacks. Restrictions imposed by governments and/or
regulators may further limit management’s flexibility in
managing the business and taking action in relation to capital
distributions and capital allocation.
Any and
all such events mentioned above could have a material adverse
effect on the Group’s business, financial condition, results
of operations, prospects, liquidity, capital position and credit
ratings (including potential credit rating agency changes of
outlooks or ratings), as well as on the Group’s customers,
employees and suppliers.
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 30
June 2020. 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 30 June
2020.
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 30.06.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
147,369
|
26,022
|
2,613
|
176,004
|
|
327
|
1,672
|
1,129
|
3,128
|
172,876
|
|
Barclays International
|
17,714
|
6,200
|
1,838
|
25,752
|
|
427
|
1,335
|
1,400
|
3,162
|
22,590
|
|
Head Office
|
4,649
|
660
|
916
|
6,225
|
|
8
|
54
|
354
|
416
|
5,809
|
|
Total Barclays Group retail
|
169,732
|
32,882
|
5,367
|
207,981
|
|
762
|
3,061
|
2,883
|
6,706
|
201,275
|
|
Barclays UK
|
28,658
|
5,562
|
1,131
|
35,351
|
|
24
|
88
|
133
|
245
|
35,106
|
|
Barclays International
|
76,750
|
38,205
|
2,571
|
117,526
|
|
237
|
802
|
934
|
1,973
|
115,553
|
|
Head Office
|
2,977
|
-
|
38
|
3,015
|
|
-
|
-
|
37
|
37
|
2,978
|
|
Total Barclays Group
wholesale1
|
108,385
|
43,767
|
3,740
|
155,892
|
|
261
|
890
|
1,104
|
2,255
|
153,637
|
|
Total loans and advances at amortised cost
|
278,117
|
76,649
|
9,107
|
363,873
|
|
1,023
|
3,951
|
3,987
|
8,961
|
354,912
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
284,807
|
63,327
|
1,569
|
349,703
|
|
122
|
571
|
48
|
741
|
348,962
|
|
Total3
|
562,924
|
139,976
|
10,676
|
713,576
|
|
1,145
|
4,522
|
4,035
|
9,702
|
703,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
|
Half year ended 30.06.20
|
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss
rate4
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.2
|
6.4
|
43.2
|
1.8
|
|
|
875
|
|
100
|
|
|
Barclays International
|
2.4
|
21.5
|
76.2
|
12.3
|
|
|
1,230
|
|
961
|
|
|
Head Office
|
0.2
|
8.2
|
38.6
|
6.7
|
|
|
55
|
|
178
|
|
|
Total Barclays Group retail
|
0.4
|
9.3
|
53.7
|
3.2
|
|
|
2,160
|
|
209
|
|
|
Barclays UK
|
0.1
|
1.6
|
11.8
|
0.7
|
|
|
102
|
|
58
|
|
|
Barclays International
|
0.3
|
2.1
|
36.3
|
1.7
|
|
|
910
|
|
156
|
|
|
Head Office
|
-
|
-
|
97.4
|
1.2
|
|
|
-
|
|
-
|
|
|
Total Barclays Group
wholesale1
|
0.2
|
2.0
|
29.5
|
1.4
|
|
|
1,012
|
|
131
|
|
|
Total loans and advances at amortised cost
|
0.4
|
5.2
|
43.8
|
2.5
|
|
|
3,172
|
|
175
|
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
-
|
0.9
|
2.0
|
0.2
|
|
|
409
|
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
157
|
|
|
|
|
Total4
|
0.2
|
3.2
|
37.6
|
1.4
|
|
|
3,738
|
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures that are
managed on a collective basis. The net impact is a difference in
total exposure of £1,195m of balances reported as wholesale
loans on page 27 in the Loans and advances at amortised cost by
product disclosure.
|
|
2
|
Excludes loan commitments and
financial guarantees of £7.4bn 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
£215.6bn and impairment allowance of £176m. This
comprises £37m ECL on £209.2bn stage 1 assets, £24m
on £6.3bn stage 2 fair value through other comprehensive
income assets, cash collateral and settlement balances and
£115m on £115m stage 3 other assets.
|
|
4
|
H120 loan impairment charge represents six months of impairment
charge, annualised to calculate the loan loss rate. The loan loss
rate for H120 is 207bps after applying the total impairment charge
of £3,738m.
|
|
|
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 International
|
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
wholesale1
|
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
rate4
|
|
|
|
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 International
|
0.1
|
3.1
|
27.7
|
0.8
|
|
|
113
|
|
11
|
|
|
Head Office
|
-
|
-
|
94.6
|
1.2
|
|
|
-
|
|
-
|
|
|
Total Barclays Group
wholesale1
|
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 basis, and excludes Business Banking exposures that are
managed on a collective basis. The net impact is a difference in
total exposure of £6,434m of balances reported as wholesale
loans on page 27 in the Loans and advances at amortised cost by
product disclosure.
|
|
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 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.
|
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 30.06.20
|
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
|
134,612
|
17,464
|
1,765
|
1,042
|
20,271
|
2,258
|
157,141
|
|
Credit cards, unsecured loans and other retail lending
|
35,829
|
11,825
|
361
|
557
|
12,743
|
3,463
|
52,035
|
|
Wholesale loans
|
107,676
|
39,631
|
3,291
|
713
|
43,635
|
3,386
|
154,697
|
|
Total
|
278,117
|
68,920
|
5,417
|
2,312
|
76,649
|
9,107
|
363,873
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home loans
|
22
|
47
|
15
|
21
|
83
|
397
|
502
|
|
Credit cards, unsecured loans and other retail lending
|
768
|
2,515
|
146
|
286
|
2,947
|
2,535
|
6,250
|
|
Wholesale loans
|
233
|
812
|
80
|
29
|
921
|
1,055
|
2,209
|
|
Total
|
1,023
|
3,374
|
241
|
336
|
3,951
|
3,987
|
8,961
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
134,590
|
17,417
|
1,750
|
1,021
|
20,188
|
1,861
|
156,639
|
|
Credit cards, unsecured loans and other retail lending
|
35,061
|
9,310
|
215
|
271
|
9,796
|
928
|
45,785
|
|
Wholesale loans
|
107,443
|
38,837
|
3,193
|
684
|
42,714
|
2,331
|
152,488
|
|
Total
|
277,094
|
65,564
|
5,158
|
1,976
|
72,698
|
5,120
|
354,912
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
-
|
0.3
|
0.8
|
2.0
|
0.4
|
17.6
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.1
|
21.3
|
40.4
|
51.3
|
23.1
|
73.2
|
12.0
|
|
Wholesale loans
|
0.2
|
2.0
|
3.0
|
4.1
|
2.1
|
31.2
|
1.4
|
|
Total
|
0.4
|
4.9
|
4.8
|
14.5
|
5.2
|
43.8
|
2.5
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
|
|
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
|
Total
customers on payment holidays amounted to £21.9bn in balances,
of which 69% are in Stage 1. If these customers moved from Stage 1
to Stage 2, it would result in an estimated ECL impact of
£214m. Staging criteria are broadly consistent with the
criteria outlined in the Barclays PLC Annual Report
2019.
Loans and advances at amortised cost by selected
sectors
The
table below presents a breakdown of loans and advances at amortised
cost and the impairment allowance, with gross exposure and stage
allocation for selected industry sectors within the wholesale loans
portfolio. The industry sectors have been selected based upon the
level of management focus they have received following the onset of
the COVID-19 pandemic.
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 30.06.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Air travel
|
1,018
|
462
|
69
|
1,549
|
|
-
|
14
|
25
|
39
|
|
Hospitality and leisure
|
3,567
|
3,600
|
236
|
7,403
|
|
18
|
121
|
75
|
214
|
|
Oil and gas
|
1,427
|
2,389
|
407
|
4,223
|
|
19
|
99
|
185
|
303
|
|
Retail
|
2,954
|
2,260
|
297
|
5,511
|
|
37
|
46
|
101
|
184
|
|
Shipping
|
355
|
369
|
6
|
730
|
|
1
|
8
|
3
|
12
|
|
Transportation
|
818
|
358
|
119
|
1,295
|
|
4
|
21
|
46
|
71
|
|
Total
|
10,139
|
9,438
|
1,134
|
20,711
|
|
79
|
309
|
435
|
823
|
|
Total of Wholesale exposures
|
9%
|
22%
|
33%
|
13%
|
|
34%
|
34%
|
41%
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
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
|
|
Air travel
|
194
|
31
|
26
|
251
|
|
-
|
-
|
24
|
24
|
|
Hospitality and leisure
|
4,321
|
851
|
199
|
5,371
|
|
8
|
18
|
29
|
55
|
|
Oil and gas
|
2,539
|
612
|
136
|
3,287
|
|
8
|
24
|
47
|
79
|
|
Retail
|
3,395
|
777
|
207
|
4,379
|
|
11
|
24
|
85
|
120
|
|
Shipping
|
357
|
52
|
7
|
416
|
|
1
|
-
|
3
|
4
|
|
Transportation
|
873
|
82
|
89
|
1,044
|
|
5
|
5
|
54
|
64
|
|
Total
|
11,679
|
2,405
|
664
|
14,748
|
|
33
|
71
|
242
|
346
|
|
Total of Wholesale exposures
|
10%
|
23%
|
28%
|
11%
|
|
23%
|
24%
|
44%
|
35%
|
The
coverage ratio for selected sectors has increased from 2.3% as at
31 December 2019 to 4.0% as at 30 June 2020. Exposure to UK
commercial real estate of £9.0bn, excluding government backed
schemes, was in line with 31 December 2019 (£9.1bn). Coverage
increased from 0.56% to 0.85% in the period.
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 ECL, lifetime ECL and
credit-impaired is included in the Barclays PLC Annual Report 2019
on page 259. Transfers between stages in the table have been
reflected as if they had taken place at the beginning of the year.
The movements are measured over a 6-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
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2020
|
135,713
|
22
|
17,043
|
64
|
2,155
|
346
|
154,911
|
432
|
|
Transfers from Stage 1 to Stage 2
|
(7,161)
|
(1)
|
7,161
|
1
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 1
|
2,985
|
7
|
(2,985)
|
(7)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(99)
|
-
|
(288)
|
(8)
|
387
|
8
|
-
|
-
|
|
Transfers from Stage 3
|
24
|
-
|
112
|
1
|
(136)
|
(1)
|
-
|
-
|
|
Business activity in the year
|
9,928
|
1
|
277
|
1
|
-
|
-
|
10,205
|
2
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(2,752)
|
(6)
|
(355)
|
32
|
(2)
|
62
|
(3,109)
|
88
|
|
Final repayments
|
(4,026)
|
(1)
|
(694)
|
(1)
|
(137)
|
(9)
|
(4,857)
|
(11)
|
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Write-offs1
|
-
|
-
|
-
|
-
|
(9)
|
(9)
|
(9)
|
(9)
|
|
As at 30 June 20202
|
134,612
|
22
|
20,271
|
83
|
2,258
|
397
|
157,141
|
502
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2020
|
46,012
|
542
|
10,759
|
2,007
|
3,409
|
2,335
|
60,180
|
4,884
|
|
Transfers from Stage 1 to Stage 2
|
(6,228)
|
(124)
|
6,228
|
124
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 13
|
2,977
|
465
|
(2,977)
|
(465)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(261)
|
(12)
|
(796)
|
(325)
|
1,057
|
337
|
-
|
-
|
|
Transfers from Stage 3
|
36
|
10
|
62
|
9
|
(98)
|
(19)
|
-
|
-
|
|
Business activity in the year
|
3,645
|
45
|
215
|
44
|
15
|
6
|
3,875
|
95
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes3
|
(6,800)
|
(128)
|
(410)
|
1,595
|
136
|
814
|
(7,074)
|
2,281
|
|
Final repayments
|
(2,059)
|
(22)
|
(155)
|
(22)
|
(125)
|
(36)
|
(2,339)
|
(80)
|
|
Disposals4
|
(1,493)
|
(8)
|
(183)
|
(20)
|
(86)
|
(57)
|
(1,762)
|
(85)
|
|
Write-offs1
|
-
|
-
|
-
|
-
|
(845)
|
(845)
|
(845)
|
(845)
|
|
As at 30 June 20202
|
35,829
|
768
|
12,743
|
2,947
|
3,463
|
2,535
|
52,035
|
6,250
|
|
1
|
In H120, gross write-offs amounted to £953m (H119: £951m)
and post write-off recoveries amounted to £15m (H119:
£73m). Net write-offs represent gross write-offs less post
write-off recoveries and amounted to £938m (H119:
£878m).
|
|
2
|
Other financial assets subject to impairment excluded from the
tables 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
£215.6bn (December 2019: £149.3bn) and impairment
allowance of £176m (December 2019: £24m). This comprises
£37m ECL (December 2019: £12m) on £209.2bn Stage 1
assets (December 2019: £148.5m), £24m (December 2019:
£2m) on £6.3bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: £0.8bn) and £115m (December 2019:
£10m) on £115m Stage 3 other assets (December 2019:
£10m).
|
|
3
|
Transfers and risk parameter changes include a £253m net
release in ECL arising from a reclassification of £2.4bn gross
loans and advances from Stage 2 to Stage 1 in Credit cards,
unsecured loans and other retail lending resulting from a review of
probability of default models in the period. Barclays continually
reviews the output of models to determine appropriateness of the
ECL calculation, including reviews of model monitoring, external
benchmarking and experience of model operation over an extended
period of time.
|
|
4
|
Disposals reported within Credit cards, unsecured loans and other
retail lending portfolio include sale of motor financing business
within the Barclays Partner Finance business.
|
|
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 2020
|
117,541
|
143
|
10,432
|
302
|
2,359
|
547
|
130,332
|
992
|
|
Transfers from Stage 1 to Stage 2
|
(27,187)
|
(63)
|
27,187
|
63
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 1
|
2,076
|
20
|
(2,076)
|
(20)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(832)
|
(3)
|
(653)
|
(44)
|
1,485
|
47
|
-
|
-
|
|
Transfers from Stage 3
|
251
|
9
|
250
|
7
|
(501)
|
(16)
|
-
|
-
|
|
Business activity in the year
|
23,797
|
22
|
4,316
|
213
|
42
|
12
|
28,155
|
247
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
15,311
|
124
|
5,831
|
415
|
360
|
601
|
21,502
|
1,140
|
|
Final repayments
|
(23,281)
|
(19)
|
(1,643)
|
(15)
|
(260)
|
(37)
|
(25,184)
|
(71)
|
|
Disposals
|
-
|
-
|
(9)
|
-
|
-
|
-
|
(9)
|
-
|
|
Write-offs1
|
-
|
-
|
-
|
-
|
(99)
|
(99)
|
(99)
|
(99)
|
|
As at 30 June 20202
|
107,676
|
233
|
43,635
|
921
|
3,386
|
1,055
|
154,697
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
£m
|
|
Home loans
|
|
|
|
|
|
|
|
79
|
|
Credit cards, unsecured loans and other retail lending
|
|
2,296
|
|
Wholesale loans
|
|
1,316
|
|
ECL movement excluding assets derecognised due to disposals and
write-offs
|
|
3,691
|
|
Recoveries and reimbursements3
|
|
(294)
|
|
Exchange and other adjustments4
|
|
(225)
|
|
Impairment charge on loan commitments and other financial
guarantees
|
|
409
|
|
Impairment charge on other financial assets2
|
|
157
|
|
As at 30 June 2020
|
|
|
|
|
|
|
|
3,738
|
|
1
|
In H120, gross write-offs amounted to £953m (H119: £951m)
and post write-off recoveries amounted to £15m (H119:
£73m). Net write-offs represent gross write-offs less post
write-off recoveries and amounted to £938m (H119:
£878m).
|
|
2
|
Other financial assets subject to impairment excluded from the
tables 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
£215.6bn (December 2019: £149.3bn) and impairment
allowance of £176m (December 2019: £24m). This comprises
£37m ECL (December 2019: £12m) on £209.2bn Stage 1
assets (December 2019: £148.5m), £24m (December 2019:
£2m) on £6.3bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: £0.8bn) and £115m (December 2019:
£10m) on £115m Stage 3 other assets (December 2019:
£10m).
|
|
3
|
Recoveries and reimbursements includes a net gain in relation to
reimbursements from financial guarantee contracts held with third
parties of £279m and post write off recoveries of
£15m.
|
|
4
|
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
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2020
|
9,542
|
-
|
500
|
-
|
4
|
-
|
10,046
|
-
|
|
Net transfers between stages
|
(93)
|
-
|
93
|
-
|
-
|
-
|
-
|
-
|
|
Business activity in the year
|
136
|
-
|
-
|
-
|
-
|
-
|
136
|
-
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(875)
|
-
|
(6)
|
-
|
(1)
|
-
|
(882)
|
-
|
|
Limit management
|
(117)
|
-
|
(16)
|
-
|
-
|
-
|
(133)
|
-
|
|
As at 30 June 2020
|
8,593
|
-
|
571
|
-
|
3
|
-
|
9,167
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2020
|
125,759
|
35
|
6,238
|
71
|
250
|
14
|
132,247
|
120
|
|
Net transfers between stages
|
(4,914)
|
39
|
4,613
|
(38)
|
301
|
(1)
|
-
|
-
|
|
Business activity in the year
|
4,012
|
2
|
94
|
1
|
1
|
1
|
4,107
|
4
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
9,357
|
(4)
|
248
|
123
|
(312)
|
8
|
9,293
|
127
|
|
Limit management
|
(5,402)
|
(1)
|
(277)
|
(1)
|
(34)
|
(3)
|
(5,713)
|
(5)
|
|
As at 30 June 2020
|
128,812
|
71
|
10,916
|
156
|
206
|
19
|
139,934
|
246
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale loans
|
|
|
|
|
|
|
|
|
|
As at 1 January 2020
|
185,839
|
62
|
12,447
|
99
|
681
|
41
|
198,967
|
202
|
|
Net transfers between stages
|
(38,868)
|
(22)
|
37,836
|
15
|
1,032
|
7
|
-
|
-
|
|
Business activity in the year
|
24,882
|
7
|
3,389
|
30
|
107
|
-
|
28,378
|
37
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
11,805
|
11
|
1,026
|
289
|
(221)
|
(19)
|
12,610
|
281
|
|
Limit management
|
(36,256)
|
(7)
|
(2,858)
|
(18)
|
(239)
|
-
|
(39,353)
|
(25)
|
|
As at 30 June 2020
|
147,402
|
51
|
51,840
|
415
|
1,360
|
29
|
200,602
|
495
|
Measurement uncertainty
The
Group uses a five-scenario model to calculate ECL. Absent the
conditions surrounding the COVID-19 pandemic, a Baseline scenario
is typically generated based on an external consensus forecast
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). 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
typically calibrated to a similar severity to internal stress
tests, whilst also considering IFRS 9 specific sensitivities and
non-linearity Downside 2 is typically 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 generally calibrated to be
symmetric to the adverse scenarios, subject to a ceiling calibrated
to relevant recent favourable benchmark scenarios. 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. To calculate ECL
a probability weight is assigned to each scenario.
Following
the onset of the COVID-19 pandemic, the Group generated a Baseline
scenario in March 2020 that reflected the most recent economic
forecasts available in the market (combined with internal
assumptions) and estimated impacts from significant support
measures taken by Barclays, central banks and governments across
the Group’s key markets. This scenario assumed a strong
contraction in GDP and a sharp rise in unemployment in 2020 across
both the UK and US, and required a recalibration of probability
weights. This scenario was superseded by a further revised Baseline
scenario generated in June 2020, based broadly on the latest
economic forecasts which recognise some impacts from the various
support measures still in place across the Group’s key
markets. Upside and downside scenarios were also regenerated in
June 2020 (together with the revised Baseline scenario, the
“COVID-19 scenarios”). The downside scenarios reflect
slower economic growth than the Baseline with social distancing
measures continuing to drag GDP. Economic growth begins to recover
later in 2020 in Downside 1 but only in 2021 in the Downside 2
scenario. The upside scenarios reflect a faster rebound in economic
growth than the Baseline with a sharp decrease in infection rates
and an almost fully reopened economy. Scenario weights were also
revised in June 2020 with greater weight being applied to the tail
scenarios (Upside 2 and Downside 2). This reflects the significant
range of uncertainty in the economic environment compared to
previous quarters given the conditions surrounding the COVID-19
pandemic.
The
economic environment remains uncertain and future impairment
charges may be subject to further volatility (including from
changes to macroeconomic variable forecasts) depending on the
longevity of the COVID-19 pandemic and related containment
measures, as well as the longer term effectiveness of central bank,
government and other support measures.
The
tables below show the key macroeconomic variables used in the
COVID-19 Baseline scenario and the probability weights applied to
each respective scenario.
|
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
|
2020
|
2021
|
2022
|
Expected Worst Point
|
|
As at 30.06.20
|
%
|
%
|
%
|
%
|
|
UK GDP1
|
(8.7)
|
6.1
|
2.9
|
(51.4)
|
|
UK unemployment2
|
6.6
|
6.5
|
4.4
|
8.0
|
|
UK HPI3
|
0.6
|
2.0
|
-
|
(1.5)
|
|
UK bank rate
|
0.2
|
0.1
|
0.1
|
0.1
|
|
US GDP1
|
(4.2)
|
4.4
|
(0.3)
|
(30.4)
|
|
US unemployment4
|
9.3
|
7.6
|
5.5
|
13.4
|
|
US HPI5
|
1.1
|
1.8
|
(0.8)
|
(1.9)
|
|
US federal funds rate
|
0.5
|
0.3
|
0.3
|
0.3
|
|
|
|
|
|
|
|
As at 31.03.20
|
|
|
|
|
|
UK GDP1
|
(8.0)
|
6.3
|
1.3
|
(51.5)
|
|
UK unemployment2
|
6.7
|
4.5
|
3.7
|
8.0
|
|
UK HPI3
|
(3.5)
|
2.6
|
2.7
|
(6.5)
|
|
UK bank rate
|
0.1
|
0.3
|
0.3
|
0.1
|
|
US GDP1
|
(6.4)
|
4.4
|
3.2
|
(45.0)
|
|
US unemployment4
|
12.9
|
7.5
|
3.8
|
17.0
|
|
US HPI5
|
-
|
0.7
|
0.8
|
(0.3)
|
|
US federal funds rate
|
0.3
|
0.3
|
0.3
|
0.3
|
|
1
|
Average Real GDP seasonally adjusted change in year (31.03.20 based
on Barclays Global Economic Forecasts); expected worst point is the
minimum seasonally adjusted quarterly annualised rate.
|
|
2
|
Average UK unemployment rate 16-year+.
|
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end; worst point is based on
cumulative drawdown in year relative to prior year
end.
|
|
4
|
Average US civilian unemployment rate 16-year+.
|
|
5
|
Change in average yearly US HPI = FHFA house price index, relative
to prior year end; worst point is based on cumulative drawdown in
year relative to prior year end. (31.03.20 based on QoQ average
growth rates).
|
|
Scenario probability weighting
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
|
%
|
%
|
%
|
%
|
%
|
|
As at 30.06.20
|
|
|
|
|
|
|
Scenario probability weighting
|
20.3
|
22.4
|
25.4
|
17.5
|
14.4
|
|
As at 31.03.20
|
|
|
|
|
|
|
Scenario probability weighting
|
5.0
|
20.8
|
46.7
|
21.0
|
6.5
|
|
As at 31.12.19
|
|
|
|
|
|
|
Scenario probability weighting
|
10.1
|
23.1
|
40.8
|
22.7
|
3.3
|
|
Macroeconomic variables (specific
bases)1
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
As at 30.06.20
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP2
|
32.7
|
26.4
|
5.4
|
1.6
|
1.2
|
|
UK unemployment3
|
3.5
|
3.6
|
4.9
|
9.6
|
10.9
|
|
UK HPI4
|
45.3
|
27.2
|
2.3
|
(15.0)
|
(33.4)
|
|
UK bank rate3
|
0.1
|
0.1
|
0.2
|
0.3
|
0.2
|
|
US GDP2
|
19.1
|
13.5
|
3.3
|
2.0
|
(3.1)
|
|
US unemployment3
|
4.1
|
4.4
|
6.3
|
15.4
|
18.7
|
|
US HPI4
|
32.3
|
20.9
|
2.3
|
(8.8)
|
(19.7)
|
|
US federal funds rate3
|
0.3
|
0.3
|
0.3
|
0.4
|
0.4
|
|
|
|
|
|
|
|
|
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 30.06.19
|
|
|
|
|
|
|
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
|
|
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. Forecast period based on 20 quarters from
Q3 2020.
|
|
2
|
Upside scenario is the highest annual average growth rate based on
seasonally adjusted quarterly annualised rate; 5-year average in
Baseline; downside is the lowest annual average growth rate based
on seasonally adjusted quarterly annualised rate.
|
|
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.
|
|
Macroeconomic variables (5-year
averages)1
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
As at 30.06.20
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP
|
8.9
|
7.2
|
5.4
|
5.2
|
2.8
|
|
UK unemployment
|
4.0
|
4.3
|
4.9
|
6.2
|
7.2
|
|
UK HPI
|
7.8
|
5.0
|
2.3
|
(1.4)
|
(5.5)
|
|
UK bank rate
|
0.4
|
0.3
|
0.2
|
0.1
|
0.1
|
|
US GDP
|
5.9
|
4.4
|
3.3
|
2.7
|
1.8
|
|
US unemployment
|
4.4
|
5.1
|
6.3
|
8.4
|
10.9
|
|
US HPI
|
5.8
|
3.9
|
2.3
|
(0.5)
|
(3.1)
|
|
US federal funds rate
|
0.6
|
0.5
|
0.3
|
0.3
|
0.3
|
|
|
|
|
|
|
|
|
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 30.06.19
|
|
|
|
|
|
|
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. For GDP and HPI, numbers represent average
of seasonally adjusted quarterly annualised rates. Forecast period
based on 20 quarters from Q3 2020.
|
The
following table provides a breakdown of the key drivers of the
Group’s loan impairment charge.
|
Drivers of loan impairment charge
|
|
|
|
|
|
Q120
|
Q220
|
Total
|
|
|
£m
|
£m
|
£m
|
|
Impairment charge generated using scenarios before
COVID-19
|
370
|
424
|
794
|
|
Single name wholesale loan charges
|
405
|
186
|
591
|
|
Loan impairment charge prior to impact of COVID-19
scenarios
|
775
|
610
|
1,385
|
|
|
|
|
|
|
Impact of COVID-19 scenarios and weights
|
1,190
|
1,163
|
2,353
|
|
Specific charge in respect of exposures to selected
sectors
|
300
|
(150)
|
150
|
|
Incorporation of provision for UK economic uncertainty
|
(150)
|
-
|
(150)
|
|
Total loan impairment charge
|
2,115
|
1,623
|
3,738
|
The
impact of the COVID-19 scenarios and weighting adjustments has
resulted in a £2,353m increase in ECL from the pre-COVID
scenarios, primarily driven by forecasts for a prolonged period of
UK and US unemployment.
Estimated
effects from the significant support measures provided by Barclays,
central banks and governments across the Group’s key markets
as a result of the COVID-19 pandemic have been factored into the
calculation of the Group’s loan impairment
charge.
The
£300m provision taken in Q120 in respect of oil price risk has
been released given the Q2 rebound in oil prices and residual risk
on the energy sector has been recognised in a Q2 charge of
c.£150m under the COVID-19 scenarios and weights. A specific
charge of £150m in respect of exposures to selected sectors
represents additional provisions taken in Q220 in response to the
current slowdown, in particular in the hospitality and retail
sectors.
The
£150m provision for UK economic uncertainty held at the
year-end was incorporated within the updated scenarios in
Q1.
ECL under 100% weighted scenarios for modelled
portfolios
The
table below shows the ECL assuming scenarios have been 100%
weighted. Model exposures are allocated to a stage based on the
individual scenario rather than through a probability-weighted
approach as required for Barclays reported impairment allowances.
As a result, it is not possible to back solve to the final reported
weighted ECL from the individual scenarios as a balance may be
assigned to a different stage dependent on the scenario. Model
exposure uses exposure at default (EAD) values and is not directly
comparable to gross exposure used in prior disclosures. For Credit
cards, unsecured loans and other retail lending, an average EAD
measure is used (12 month or lifetime, depending on stage
allocation in each scenario). Therefore, the model exposure
movement into Stage 2 is higher than the corresponding Stage 1
reduction.
All ECL
using a model is included, with the exception of Treasury assets
(£30m of ECL), non-modelled exposures and management
adjustments.
Model
exposures allocated to Stage 3 do not change in any of the
scenarios as the transition criteria relies only on observable
evidence of default as at 30 June 2020 and not on macroeconomic
scenarios.
The
Downside 2 scenario represents a global recession with substantial
falls in both UK and US GDP. Unemployment in UK and US markets
rises to 11% and 19% respectively and there are substantial falls
in asset prices including housing.
Under
the Downside 2 scenario, model exposure moves between stages as the
economic environment weakens. This can be seen in the movement of
£50bn of model exposure into Stage 2 between the Weighted and
Downside 2 scenario. ECL increases in Stage 2 predominantly due to
unsecured portfolios as economic conditions
deteriorate.
|
|
Scenarios
|
|
As at 30.06.20
|
Weighted
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
125,380
|
128,154
|
127,314
|
126,404
|
122,433
|
112,937
|
|
Credit cards, unsecured loans and other retail lending
|
58,303
|
63,114
|
62,525
|
61,361
|
58,654
|
55,410
|
|
Wholesale loans
|
122,594
|
144,825
|
145,491
|
140,318
|
115,054
|
93,598
|
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
15
|
7
|
8
|
10
|
25
|
273
|
|
Credit cards, unsecured loans and other retail lending
|
592
|
558
|
612
|
636
|
665
|
649
|
|
Wholesale loans
|
293
|
330
|
317
|
293
|
283
|
271
|
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
-
|
-
|
-
|
-
|
-
|
0.2
|
|
Credit cards, unsecured loans and other retail lending
|
1.0
|
0.9
|
1.0
|
1.0
|
1.1
|
1.2
|
|
Wholesale loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
20,058
|
17,284
|
18,124
|
19,034
|
23,005
|
32,501
|
|
Credit cards, unsecured loans and other retail lending
|
23,620
|
14,746
|
17,298
|
21,270
|
26,748
|
32,457
|
|
Wholesale loans
|
67,528
|
45,296
|
44,631
|
49,804
|
75,067
|
96,523
|
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
75
|
48
|
48
|
55
|
70
|
194
|
|
Credit cards, unsecured loans and other retail lending
|
3,715
|
2,124
|
2,643
|
3,527
|
4,950
|
6,562
|
|
Wholesale loans
|
2,385
|
1,378
|
1,484
|
1,873
|
3,349
|
4,790
|
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
0.4
|
0.3
|
0.3
|
0.3
|
0.3
|
0.6
|
|
Credit cards, unsecured loans and other retail lending
|
15.7
|
14.4
|
15.3
|
16.6
|
18.5
|
20.2
|
|
Wholesale loans
|
3.5
|
3.0
|
3.3
|
3.8
|
4.5
|
5.0
|
|
Stage 3 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
1,750
|
1,750
|
1,750
|
1,750
|
1,750
|
1,750
|
|
Credit cards, unsecured loans and other retail lending
|
2,928
|
2,928
|
2,928
|
2,928
|
2,928
|
2,928
|
|
Wholesale loans1
|
1,864
|
1,864
|
1,864
|
1,864
|
1,864
|
1,864
|
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
330
|
271
|
273
|
315
|
380
|
465
|
|
Credit cards, unsecured loans and other retail lending
|
2,346
|
2,277
|
2,309
|
2,345
|
2,392
|
2,449
|
|
Wholesale loans1
|
91
|
80
|
83
|
93
|
96
|
109
|
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
18.9
|
15.5
|
15.6
|
18.0
|
21.7
|
26.6
|
|
Credit cards, unsecured loans and other retail lending
|
80.1
|
77.8
|
78.9
|
80.1
|
81.7
|
83.6
|
|
Wholesale loans1
|
4.9
|
4.3
|
4.5
|
5.0
|
5.2
|
5.8
|
|
Total Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
420
|
326
|
329
|
380
|
475
|
932
|
|
Credit cards, unsecured loans and other retail lending
|
6,653
|
4,959
|
5,564
|
6,508
|
8,007
|
9,660
|
|
Wholesale loans1
|
2,769
|
1,788
|
1,884
|
2,259
|
3,728
|
5,170
|
|
Total Model ECL
|
9,842
|
7,073
|
7,777
|
9,147
|
12,210
|
15,762
|
|
1
|
Material wholesale loan defaults are individually assessed across
different recovery strategies.
|
|
Reconciliation to total ECL
|
|
|
|
|
|
£m
|
|
Total model ECL
|
|
|
|
|
|
9,842
|
|
ECL from individually assessed impairments on stage 3
loans
|
1,026
|
|
ECL from non-modelled and other management
adjustments1
|
(1,166)
|
|
Total ECL
|
|
|
|
|
|
9,702
|
|
1
|
Management adjustments of £1.2bn materially reflect estimated
impacts from the significant support measures provided by Barclays,
central banks and governments across the Group’s key markets
as a result of the COVID-19 pandemic. Some impacts from these
support measures are recognised in the COVID-19 scenarios used to
calculate modelled ECL. However, given the uncertain economic
environment and the unprecedented policy response to the pandemic,
management have reviewed the output of the models across key
portfolios to assess the appropriateness of the total ECL and to
more fully estimate the impact given the longevity of support
measures. Such assessments are inherently uncertain and actual
credit losses may differ from the ECL depending on the evolution of
the COVID-19 pandemic.
|
The
dispersion of results around the Baseline is an indication of
uncertainty around future projections. The disclosure highlights
the results of the alternative scenarios enabling the reader to
understand the extent of the impact on exposure and ECL from the
upside/downside scenarios. Consequently, the use of five scenarios
with associated weightings results in a total weighted ECL uplift
from the Baseline ECL of 8%.
|
|
Scenarios
|
|
As at 31.12.19
|
Weighted
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
137,929
|
139,574
|
138,992
|
138,249
|
136,454
|
132,505
|
|
Credit cards, unsecured loans and other retail lending
|
68,619
|
69,190
|
69,012
|
68,388
|
68,309
|
67,015
|
|
Wholesale loans
|
160,544
|
162,717
|
162,058
|
161,111
|
157,720
|
143,323
|
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
6
|
4
|
5
|
5
|
7
|
19
|
|
Credit cards, unsecured loans and other retail lending
|
505
|
490
|
495
|
495
|
511
|
528
|
|
Wholesale loans
|
209
|
162
|
174
|
188
|
271
|
297
|
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Credit cards, unsecured loans and other retail lending
|
0.7
|
0.7
|
0.7
|
0.7
|
0.7
|
0.8
|
|
Wholesale loans
|
0.1
|
0.1
|
0.1
|
0.1
|
0.2
|
0.2
|
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
16,889
|
15,245
|
15,826
|
16,570
|
18,364
|
22,314
|
|
Credit cards, unsecured loans and other retail lending
|
13,406
|
11,449
|
12,108
|
13,075
|
15,663
|
19,615
|
|
Wholesale loans
|
15,947
|
13,773
|
14,433
|
15,380
|
18,770
|
33,168
|
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
41
|
33
|
34
|
36
|
47
|
170
|
|
Credit cards, unsecured loans and other retail lending
|
1,844
|
1,412
|
1,562
|
1,771
|
2,384
|
4,285
|
|
Wholesale loans
|
414
|
285
|
323
|
374
|
579
|
1,427
|
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
0.8
|
|
Credit cards, unsecured loans and other retail lending
|
13.8
|
12.3
|
12.9
|
13.5
|
15.2
|
21.8
|
|
Wholesale loans
|
2.6
|
2.1
|
2.2
|
2.4
|
3.1
|
4.3
|
|
Stage 3 Model Exposure (£m)
|
|
|
|
|
|
|
|
Home loans
|
1,670
|
1,670
|
1,670
|
1,670
|
1,670
|
1,670
|
|
Credit cards, unsecured loans and other retail lending
|
3,008
|
3,008
|
3,008
|
3,008
|
3,008
|
3,008
|
|
Wholesale loans1
|
1,489
|
1,489
|
1,489
|
1,489
|
1,489
|
1,489
|
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
268
|
262
|
264
|
266
|
272
|
316
|
|
Credit cards, unsecured loans and other retail lending
|
2,198
|
2,154
|
2,174
|
2,195
|
2,235
|
2,292
|
|
Wholesale loans1
|
118
|
111
|
114
|
117
|
127
|
128
|
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
|
Home loans
|
16.0
|
15.7
|
15.8
|
15.9
|
16.3
|
18.9
|
|
Credit cards, unsecured loans and other retail lending
|
73.1
|
71.6
|
72.3
|
73.0
|
74.3
|
76.2
|
|
Wholesale loans1
|
7.9
|
7.4
|
7.6
|
7.9
|
8.5
|
8.6
|
|
Total Model ECL (£m)
|
|
|
|
|
|
|
|
Home loans
|
315
|
299
|
303
|
307
|
326
|
505
|
|
Credit cards, unsecured loans and other retail lending
|
4,547
|
4,056
|
4,231
|
4,461
|
5,130
|
7,105
|
|
Wholesale loans1
|
741
|
558
|
611
|
679
|
977
|
1,852
|
|
Total Model ECL
|
5,603
|
4,913
|
5,145
|
5,447
|
6,433
|
9,462
|
|
1
|
Material wholesale loan defaults are individually assessed across
different recovery strategies.
|
|
Reconciliation to total
ECL1
|
|
|
|
|
|
£m
|
|
Total model ECL
|
|
|
|
|
|
5,603
|
|
ECL from individually assessed impairments on stage 3
loans
|
419
|
|
ECL from non-modelled and other management adjustments
|
608
|
|
Total ECL
|
|
|
|
|
|
6,630
|
|
1
|
The table has been re-presented to separately show the impact of
individually assessed impairments of £419m. This was included
in the Barclays PLC Annual Report 2019 with non-modelled and other
adjustments of £268m. Non-modelled and other adjustments are
now disclosed within the other management adjustments category of
£608m.
|
Analysis of specific portfolios and asset types
Secured home loans
The UK
home loan portfolio primarily comprises first lien mortgages and
accounts for 92% (December 2019: 92%) of the Group’s total
home loans balance.
|
Home loans principal portfolios
|
|
|
Barclays UK
|
|
|
|
As at
30.06.20
|
As at
31.12.19
|
|
Gross loans and advances (£m)
|
|
|
145,205
|
143,259
|
|
90 day arrears rate, excluding recovery book (%)
|
|
|
0.2
|
0.2
|
|
Annualised gross charge-off rate - 180 days past due
(%)
|
|
|
0.5
|
0.6
|
|
Recovery book proportion of outstanding balances (%)
|
|
|
0.6
|
0.5
|
|
Recovery book impairment coverage ratio (%)
|
|
|
3.5
|
5.3
|
|
|
|
|
|
|
|
Average marked to market LTV
|
|
|
|
|
|
Balance weighted (%)
|
|
|
51.5
|
51.1
|
|
Valuation weighted (%)
|
|
|
37.5
|
37.3
|
|
|
|
|
|
|
|
New lending
|
|
|
Half year ended 30.06.20
|
Half year ended 30.06.19
|
|
New home loan completions (£m)
|
|
|
9,977
|
11,097
|
|
New home loans proportion > 90% LTV (%)
|
|
|
3.7
|
3.9
|
|
Average LTV on new home loans: balance weighted (%)
|
|
|
68.4
|
67.1
|
|
Average LTV on new home loans: valuation weighted (%)
|
|
|
60.0
|
58.9
|
|
Home loans principal portfolios
– distribution of balances by LTV1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 30.06.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
73.3
|
12.3
|
0.6
|
86.2
|
10.4
|
22.4
|
32.0
|
64.8
|
-
|
0.1
|
2.5
|
-
|
|
>75% and <=90%
|
11.5
|
1.0
|
-
|
12.5
|
3.0
|
13.7
|
9.0
|
25.7
|
-
|
0.7
|
14.6
|
0.1
|
|
>90% and <=100%
|
1.1
|
0.1
|
-
|
1.2
|
0.4
|
1.6
|
2.0
|
4.0
|
-
|
1.0
|
26.5
|
0.2
|
|
>100%
|
0.1
|
-
|
-
|
0.1
|
0.1
|
1.3
|
4.1
|
5.5
|
0.1
|
2.8
|
39.6
|
3.0
|
|
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
|
|
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 30 June
2020.
|
|
2
|
The average LTV of the customers taking payment holidays is 57%. Of
the customers taking payment holidays, 35% of customers are in less
than 60% LTV bucket, 40% in 60%-80% LTV bucket and 25% in greater
than 80% LTV bucket.
|
The
change in impairment coverage by loan to value ratio in the period
is due to the impact of the change in economic assumptions and
scenario weights, reflecting the COVID-19 crisis. This has
resulted in a redistribution of the impairment stock by loan to
value segment for the UK Mortgage portfolio with no change in
overall impairment coverage for this portfolio.
During
H120, a total of 120k payment holidays were provided to customers.
At 30 June 2020, the book value of the portfolio where payment
holidays have been granted was £14.9bn, representing 10.3% of
the portfolio.
Head Office: Italian home loans and advances at amortised
cost remained broadly stable at £6.1bn (2019: £6.0bn).
The portfolio is secured on residential property with an average
balance weighted mark to market LTV of 63.1% (2019: 64.4%). 90-day
arrears remained broadly stable at 1.9% (2019: 1.8%), gross
charge-off rates increased slightly to 1.1% (2019:
0.8%).
Credit cards, unsecured loans and other retail lending
The
principal portfolios listed below accounted for 86% (December 2019:
87%) 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 30.06.20
|
£m
|
%
|
%
|
%
|
%
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
|
13,639
|
2.0
|
1.0
|
2.6
|
2.6
|
|
UK personal loans
|
5,526
|
2.4
|
1.4
|
2.9
|
2.7
|
|
Barclays Partner Finance1
|
2,286
|
0.8
|
0.4
|
1.2
|
1.2
|
|
Barclays International
|
|
|
|
|
|
|
US cards
|
19,505
|
2.4
|
1.4
|
5.1
|
5.1
|
|
Germany consumer lending
|
3,570
|
1.6
|
0.8
|
1.0
|
0.9
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
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 Finance1
|
4,134
|
0.9
|
0.3
|
1.7
|
1.7
|
|
Germany consumer lending
|
3,558
|
1.7
|
0.7
|
2.1
|
1.3
|
|
1
|
On 1 April 2020, the Barclays Partner Finance business moved from
Barclays International to Barclays UK. The 2019 comparative figures
have not been restated.
|
UK cards: 30 and 90 day arrears rates increased by 0.3% and
0.2% respectively. The majority of the increase was driven by a
£2.8bn reduction in balances, and prior to payment holidays
being initiated, lower collections capacity in the first few weeks
of the COVID-19 related lockdown. During H120, a total of 151k
payment holidays were provided to customers. At 30 June 2020, the
book value of the portfolio where payment holidays have been
granted was £664m, representing 4.9% of the
portfolio.
UK personal loans: 30 and 90 day arrears rates increased by
0.3% and 0.4% respectively, driven by a 10% reduction in overall
balances, coupled with lower collections capacity prior to payment
holidays being initiated in the first few weeks of the COVID-19
related lockdown. During H120, a total of 74k payment holidays were
provided to customers. At 30 June 2020, the book value of the
portfolio where payment holidays have been granted was £609m,
representing 11.0% of the portfolio.
Barclays Partner Finance: The marginal improvement in the 30
day arrears rate was primarily a result of the sale of the motor
financing business, and since the introduction of payment holidays,
lower flows into delinquency. 90 day arrears rate slightly worsened
as prior to payment holidays being initiated, there was lower
collections capacity in the first few weeks of the COVID-19 related
lockdown. During H120, a total of 13k payment holidays were
provided to customers. At 30 June 2020, the book value of the
portfolio where payment holidays have been granted was £43m,
representing 1.9% of the portfolio.
US cards: 30 day arrears rate decreased due to payment
holidays granted to customers impacted by COVID-19 which reduced
the delinquency entrance rate and overall flow through delinquency.
During H120, a total of 213k payment holidays were provided to
customers. At 30 June 2020, the book value of the portfolio where
payment holidays have been granted was £567m, representing
2.9% of the portfolio.
Germany consumer lending: The improvement in the 30 day
arrears rate was primarily driven by payment deferrals offered by
Germany in Q220. During H120, a total of 8k payment holidays were
provided to customers. At 30 June 2020, the book value of the
portfolio where payment holidays have been granted was £98m,
representing 2.7% of the portfolio.
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 class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30.06.20
|
|
Half year ended 31.12.19
|
|
Half year ended 30.06.19
|
|
|
Average
|
High1
|
Low1
|
|
Average
|
High1
|
Low1
|
|
Average
|
High1
|
Low1
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Credit risk
|
22
|
38
|
10
|
|
13
|
17
|
11
|
|
11
|
14
|
8
|
|
Interest rate risk
|
9
|
17
|
6
|
|
7
|
11
|
5
|
|
5
|
9
|
3
|
|
Equity risk
|
15
|
35
|
6
|
|
11
|
22
|
5
|
|
9
|
16
|
5
|
|
Basis risk
|
10
|
16
|
7
|
|
9
|
11
|
7
|
|
8
|
9
|
6
|
|
Spread risk
|
5
|
9
|
3
|
|
4
|
5
|
3
|
|
4
|
5
|
3
|
|
Foreign exchange risk
|
5
|
7
|
2
|
|
3
|
5
|
2
|
|
3
|
5
|
2
|
|
Commodity risk
|
1
|
1
|
-
|
|
1
|
2
|
-
|
|
1
|
1
|
-
|
|
Inflation risk
|
1
|
2
|
1
|
|
1
|
2
|
1
|
|
2
|
3
|
2
|
|
Diversification effect1
|
(33)
|
n/a
|
n/a
|
|
(24)
|
n/a
|
n/a
|
|
(22)
|
n/a
|
n/a
|
|
Total management VaR
|
35
|
57
|
18
|
|
25
|
29
|
18
|
|
21
|
26
|
17
|
|
1
|
Diversification effects recognise that forecast losses from
different assets or businesses are unlikely to occur concurrently,
hence the expected aggregate loss is lower than the sum of the
expected losses from each area. Historical correlations between
losses are taken into account in making these assessments. The high
and low VaR figures reported for each category did not necessarily
occur on the same day as the high and low VaR reported as a whole.
Consequently, a diversification effect balance for the high and low
VaR figures would not be meaningful and is therefore omitted from
the above table.
|
Average
management VaR increased 40% to £35m in H120 (H219: £25m)
as elevated market volatility resulted in an increase in credit and
equity risk.
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
The
liquidity risk stress assessment measures the potential contractual
and contingent stress outflows under a range of scenarios, which
are then used to determine the size of the liquidity pool that is
immediately available to meet anticipated outflows if a stress
occurs. The short-term scenarios include a 30 day Barclays-specific
stress event, a 90 day market-wide stress event and a 30 day
combined scenario consisting of both a Barclays specific and
market-wide stress event. The Group also runs a long-term liquidity
stress test, which measures the anticipated outflows over a 12
month market-wide scenario.
The CRR
(as amended by CRR II) Liquidity Coverage ratio (LCR) requirement
takes into account the relative stability of different sources of
funding and potential incremental funding requirements in a stress.
The LCR is designed to promote short-term resilience of a
bank’s liquidity risk profile by holding sufficient high
quality liquid assets to survive an acute stress scenario lasting
for 30 days.
As at
30 June 2020, the Group held eligible liquid assets in excess of
100% of net stress outflows to its internal and external regulatory
requirements.
|
Liquidity coverage ratio
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
£bn
|
£bn
|
|
Eligible liquidity buffer
|
291
|
206
|
|
Net stress outflows
|
(156)
|
(128)
|
|
Surplus
|
135
|
78
|
|
|
|
|
|
Liquidity coverage ratio
|
186%
|
160%
|
The
Group plans to maintain its surplus to the internal and regulatory
stress requirements at an efficient level, while considering risks
to market funding conditions and its liquidity position. The
continuous reassessment of these risks may lead to execution of
appropriate actions to resize the liquidity pool. Given the
heightened uncertainty in the current environment, the Group has
taken actions to maintain its liquidity surplus at an elevated
level. Over time, and as risks dissipate, it is likely the
liquidity surplus will fall back from its current elevated
level.
|
Composition of the Group liquidity pool
|
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
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
|
200
|
196
|
-
|
-
|
153
|
|
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
|
AAA to AA-
|
41
|
-
|
39
|
1
|
31
|
|
A+ to A-
|
23
|
-
|
17
|
6
|
2
|
|
BBB+ to BBB-
|
5
|
-
|
5
|
-
|
3
|
|
Total government bonds
|
69
|
-
|
61
|
7
|
36
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Government guaranteed issuers, PSEs and GSEs
|
11
|
-
|
9
|
1
|
9
|
|
International organisations and MDBs
|
9
|
-
|
9
|
-
|
7
|
|
Covered bonds
|
8
|
-
|
6
|
2
|
6
|
|
Other
|
1
|
-
|
-
|
-
|
-
|
|
Total other
|
29
|
-
|
24
|
3
|
22
|
|
|
|
|
|
|
|
|
Total as at 30 June 2020
|
298
|
196
|
85
|
10
|
211
|
|
Total as at 31 December 2019
|
211
|
150
|
50
|
3
|
|
|
1
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 99% (December 2019: over
98%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
|
2
|
Of which over 80% (December 2019: over 67%) comprised UK, US,
French, German, Japanese, 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 increased to £298bn as at 30 June 2020
(December 2019: £211bn) driven by a 12% growth in customer
deposit and actions to maintain a prudent funding and liquidity
position in the current environment. During H120, the month-end
liquidity pool ranged from £218bn to £306bn (H219:
£211bn to £256bn), and the month-end average balance was
£257bn (H219: £235bn). 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
30 June 2020, 65% (December 2019: 67%) of the liquidity pool was
located in Barclays Bank PLC, 21% (December 2019: 20%) in Barclays
Bank UK PLC and 6% (December 2019: 6%) in Barclays Bank Ireland
PLC. The residual portion of the liquidity pool is held outside of
these entities, predominantly in US subsidiaries, to meet
entity-specific stress outflows and local regulatory requirements.
To the extent the use of this residual portion of the liquidity
pool is restricted due to local regulatory requirements, it is
assumed to be unavailable to the rest of the Group in calculating
the LCR.
The
composition of the pool is subject to limits set by the Board and
the independent liquidity risk, credit risk and market risk
functions. In addition, the investment of the liquidity pool is
monitored for concentration by issuer, currency and asset type.
Given returns generated by these highly liquid assets, the risk and
reward profile is continuously managed.
|
Deposit funding
|
|
|
|
|
|
|
|
As at 30.06.20
|
|
As at 31.12.19
|
|
|
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
|
208
|
226
|
92%
|
|
96%
|
|
Barclays International
|
138
|
241
|
57%
|
|
63%
|
|
Head Office
|
9
|
-
|
|
|
|
|
Barclays Group
|
355
|
467
|
76%
|
|
82%
|
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost divided by deposits at amortised cost.
|
Funding structure and funding relationships
The
basis for liquidity risk management is a funding structure that
reduces the probability of a liquidity stress leading to an
inability to meet funding obligations as they fall due. The
Group’s overall funding strategy is to develop a diversified
funding base (geographically, by type and by counterparty) and
maintain access to a variety of alternative funding sources, to
provide protection against unexpected fluctuations, while
minimising the cost of funding.
Within
this, the Group aims to align the sources and uses of funding. As
such, retail and corporate loans and advances are largely funded by
deposits in the relevant entities, with the surplus primarily
funding the liquidity pool. The majority of reverse repurchase
agreements are matched by repurchase agreements. Derivative
liabilities and assets are largely matched. A substantial
proportion of balance sheet derivative positions qualify for
counterparty netting and the remaining portions are largely offset
when netted against cash collateral received and paid. Wholesale
debt and equity is used to fund residual assets.
These
funding relationships as at 30 June 2020 are summarised
below:
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
As at 30.06.20
|
As at 31.12.19
|
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
|
Loans and advances at amortised cost1
|
347
|
335
|
|
Deposits at amortised cost
|
467
|
416
|
|
Group liquidity pool
|
298
|
211
|
|
<1 Year wholesale funding
|
70
|
41
|
|
|
|
|
|
>1 Year wholesale funding
|
112
|
106
|
|
Reverse repurchase agreements, trading portfolio assets, cash
collateral and settlement balances
|
383
|
298
|
|
Repurchase agreements, trading portfolio liabilities, cash
collateral and settlement balances
|
306
|
247
|
|
Derivative financial instruments
|
307
|
229
|
|
Derivative financial instruments
|
308
|
229
|
|
Other assets2
|
50
|
67
|
|
Other liabilities
|
52
|
35
|
|
|
|
|
|
Equity
|
70
|
66
|
|
Total assets
|
1,385
|
1,140
|
|
Total liabilities and equity
|
1,385
|
1,140
|
|
1
|
Adjusted for liquidity pool debt securities reported at amortised
cost of £8bn (December 2019: £4bn).
|
|
2
|
Other assets include fair value assets that are not part of reverse
repurchase agreements or trading portfolio assets, and other asset
categories.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£181.9bn (December 2019: £147.1bn). In H120, the Group
issued £4.8bn of MREL eligible instruments from Barclays PLC
(the Parent company) in a range of tenors and
currencies.
Our
operating companies also access wholesale funding markets to
maintain their stable and diversified funding bases. Barclays Bank
PLC continued to issue in the shorter-term and medium-term notes
markets, and also issued a $1.75bn two-year senior bond in May. In
addition, Barclays Bank UK PLC continued to issue in the
shorter-term markets.
Wholesale
funding of £69.6bn (December 2019: £40.6bn) matures in
less than one year, representing 38% (December 2019: 28%) of total
wholesale funding outstanding. This includes £25.0bn (December
2019: £16.3bn) related to term funding2. Although not a
requirement, the liquidity pool exceeded wholesale funding maturing
in less than one year by £228bn (December 2019:
£170bn).
|
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)
|
-
|
0.3
|
-
|
2.6
|
2.9
|
2.8
|
5.2
|
7.2
|
6.3
|
14.0
|
38.4
|
|
Senior unsecured (privately placed)
|
-
|
-
|
-
|
0.1
|
0.1
|
0.2
|
-
|
0.3
|
-
|
0.5
|
1.1
|
|
Subordinated liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1.0
|
7.6
|
8.6
|
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
3.9
|
9.8
|
10.4
|
6.2
|
30.3
|
0.9
|
0.4
|
0.1
|
-
|
-
|
31.7
|
|
Asset backed commercial paper
|
3.2
|
3.9
|
1.6
|
0.3
|
9.0
|
-
|
-
|
-
|
-
|
-
|
9.0
|
|
Senior unsecured (public benchmark)
|
-
|
-
|
-
|
3.1
|
3.1
|
1.6
|
0.1
|
1.2
|
-
|
1.7
|
7.7
|
|
Senior unsecured (privately placed)3
|
0.6
|
3.2
|
2.5
|
4.6
|
10.9
|
6.8
|
6.6
|
4.6
|
5.8
|
22.8
|
57.5
|
|
Asset backed securities
|
0.5
|
-
|
0.1
|
-
|
0.6
|
0.6
|
1.1
|
0.4
|
0.3
|
1.6
|
4.6
|
|
Subordinated liabilities
|
-
|
0.2
|
0.9
|
4.9
|
6.0
|
1.3
|
2.4
|
-
|
0.1
|
1.5
|
11.3
|
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
3.7
|
1.3
|
0.2
|
0.1
|
5.3
|
-
|
-
|
-
|
-
|
-
|
5.3
|
|
Covered bonds
|
-
|
-
|
-
|
0.9
|
0.9
|
2.3
|
1.7
|
-
|
-
|
1.3
|
6.2
|
|
Asset backed securities
|
0.5
|
-
|
-
|
-
|
0.5
|
-
|
-
|
-
|
-
|
-
|
0.5
|
|
Total as at 30 June 2020
|
12.4
|
18.7
|
15.7
|
22.8
|
69.6
|
16.5
|
17.5
|
13.8
|
13.5
|
51.0
|
181.9
|
|
Of which secured
|
4.2
|
3.9
|
1.7
|
1.2
|
11.0
|
2.9
|
2.8
|
0.4
|
0.3
|
2.9
|
20.3
|
|
Of which unsecured
|
8.2
|
14.8
|
14.0
|
21.6
|
58.6
|
13.6
|
14.7
|
13.4
|
13.2
|
48.1
|
161.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
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 £48.5bn, of which £8.9bn
matures within one year.
|
Credit ratings
In
addition to monitoring and managing key metrics related to the
financial strength of the Group, Barclays also solicits independent
credit ratings from Standard & Poor’s Global (S&P),
Moody’s, Fitch, and Rating and Investment Information
(R&I). These ratings assess the creditworthiness of the Group,
its subsidiaries and its branches, and are based on reviews of a
broad range of business and financial attributes including capital
strength, profitability, funding, liquidity, asset quality,
strategy and governance.
|
Barclays Bank PLC
|
Standard & Poor's
|
Moody's
|
Fitch
|
|
Long-term
|
A / Negative
|
A1 / Stable
|
A+ / RWN1
|
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
|
|
Barclays Bank UK PLC
|
|
|
|
|
Long-term
|
A / Negative
|
A1 / Negative
|
A+ / Negative
|
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
|
|
Barclays PLC
|
|
|
|
|
Long-term
|
BBB / Negative
|
Baa2 /Stable
|
A / RWN1
|
|
Short-term
|
A-2
|
P-2
|
F1
|
In January 2020, Moody’s upgraded the long-term ratings of
Barclays PLC and Barclays Bank PLC by one notch to Baa2 and A1
respectively, due to their view that the earnings profile of the
entities has improved. This followed the positive outlooks that had
been placed on these entities in May 2019 and the outlooks reverted
to stable in the most recent action. In November 2019,
Moody’s revised the outlook on Barclays Bank UK PLC to
negative from stable, alongside other UK peers following a negative
revision to the UK sovereign outlook.
In April 2020, Fitch revised the outlooks of Barclays PLC and
Barclays Bank PLC to Rating Watch Negative (RWN) from stable, while
the outlook for Barclays Bank UK PLC was revised to negative from
stable, alongside UK peers, to reflect the downside risks to their
credit profiles resulting from the economic and financial market
implications of the COVID-19 outbreak. In May 2020, Fitch
maintained the ratings of Barclays PLC and Barclays Bank PLC on
RWNs whilst affirming the rating of Barclays Bank UK
PLC.
In April 2020, S&P affirmed all ratings for Barclays PLC,
Barclays Bank PLC and Barclays Bank UK PLC, whilst revising the
outlooks for Barclays and its subsidiaries to negative from stable,
alongside many European peers, to reflect economic and market
stress triggered by the COVID-19 pandemic.
Barclays also solicits issuer ratings from R&I and the ratings
of A- for Barclays PLC and A for Barclays Bank PLC were affirmed in
November 2019 with stable outlooks.
A credit rating downgrade could result in outflows to meet
collateral requirements on existing contracts. Outflows related to
credit rating downgrades are included in the LRA stress scenarios
and a portion of the liquidity pool is held against this risk.
Credit ratings downgrades could also result in reduced funding
capacity and increased funding costs.
The contractual collateral requirement following one- and two-notch
long-term and associated short-term downgrades across all credit
rating agencies, would result in outflows of £2bn and
£5bn respectively, and are provided for in determining an
appropriate liquidity pool size given the Group’s liquidity
risk appetite. These numbers do not assume any management or
restructuring actions that could be taken to reduce posting
requirements. These outflows do not include the potential liquidity
impact from loss of unsecured funding, such as from money market
funds, or loss of secured funding capacity. However, unsecured and
secured funding stresses are included in the LRA stress scenarios
and a portion of the liquidity pool is held against these
risks.
Capital
The
Group’s Overall Capital Requirement for CET1 is 11.2%
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 2.7% Pillar 2A requirement and a 0.0%
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 11 March 2020,
the Financial Policy Committee set the CCyB rate for UK exposures
at 0% with immediate effect. The buffer rates set by other national
authorities for non-UK exposures are not currently material.
Overall, this results in a 0.0% CCyB for the Group.
The
Group’s Pillar 2A requirement as per the PRA’s
Individual Capital Requirement applicable from 23 July 2020 has
been revised to 4.8% of
which at least 56.25% needs to be met with CET1 capital, equating
to approximately 2.7% of RWAs. The Pillar 2A requirement is
subject to at least annual review and has been set as a nominal
capital amount. This is based on a point in time assessment and the
requirement (when expressed as a proportion of RWAs) will change
depending on the total RWAs at each reporting
period.
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 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.
On 27
June 2020, CRR was further amended to accelerate specific CRR II
measures and implement a new IFRS 9 transitional relief
calculation. Previously due to be implemented in June 2021, the
accelerated measures primarily relate to the CRR leverage
calculation to include additional settlement netting and limited
changes to the calculation of RWAs. For UK leverage calculations,
the PRA early adopted the CRR II settlement netting measure in
April 2020.
The
IFRS 9 transitional arrangements have been extended by two years
and a new modified calculation has been introduced. 100%
relief will be applied to increases in stage 1 and stage 2
provisions from 1 January 2020 throughout 2020 and 2021; 75% in
2022; 50% in 2023; 25% in 2024 with no relief applied from
2025. The phasing out of transitional relief on the “day
1” impact of IFRS 9 as well as increases in stage 1 and stage
2 provisions between 1 January 2018 and 31 December 2019 under the
modified calculation remain unchanged and continue to be subject to
70% transitional relief throughout 2020; 50% for 2021; 25% for 2022
and with no relief applied from 2023.
Also
impacting own funds from 30 June 2020 until 31 December 2020
inclusive are amendments to the regulatory technical standards on
prudential valuation which include an increase to diversification
factors applied to certain additional valuation
adjustments.
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
|
|
30.06.20
|
31.03.20
|
31.12.19
|
|
CET1
|
14.2%
|
13.1%
|
13.8%
|
|
Tier 1 (T1)
|
17.8%
|
16.6%
|
17.7%
|
|
Total regulatory capital
|
21.7%
|
20.4%
|
21.6%
|
|
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
|
Total equity excluding non-controlling interests per the balance
sheet
|
68,304
|
68,369
|
64,429
|
|
Less: other equity instruments (recognised as AT1
capital)
|
(10,871)
|
(10,871)
|
(10,871)
|
|
Adjustment to retained earnings for foreseeable
dividends
|
(44)
|
(49)
|
(1,096)
|
|
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
|
Additional value adjustments (PVA)
|
(1,517)
|
(1,847)
|
(1,746)
|
|
Goodwill and intangible assets
|
(8,154)
|
(8,197)
|
(8,109)
|
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(444)
|
(294)
|
(479)
|
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(1,914)
|
(1,709)
|
(1,002)
|
|
Gains or losses on liabilities at fair value resulting from own
credit
|
(233)
|
(389)
|
260
|
|
Defined benefit pension fund assets
|
(2,094)
|
(3,603)
|
(1,594)
|
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
|
Adjustment under IFRS 9 transitional arrangements
|
2,459
|
1,215
|
1,126
|
|
Other regulatory adjustments
|
(62)
|
(57)
|
(55)
|
|
CET1 capital
|
45,380
|
42,518
|
40,813
|
|
|
|
|
|
|
AT1 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
10,871
|
10,871
|
10,871
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
691
|
753
|
687
|
|
Other regulatory adjustments and deductions
|
(80)
|
(130)
|
(130)
|
|
AT1 capital
|
11,482
|
11,494
|
11,428
|
|
|
|
|
|
|
T1 capital
|
56,862
|
54,012
|
52,241
|
|
|
|
|
|
|
T2 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
9,028
|
8,423
|
7,650
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
3,396
|
4,013
|
3,984
|
|
Credit risk adjustments (excess of impairment over expected
losses)
|
36
|
196
|
16
|
|
Other regulatory adjustments and deductions
|
(160)
|
(250)
|
(250)
|
|
Total regulatory capital
|
69,162
|
66,394
|
63,641
|
|
|
|
|
|
|
Total RWAs
|
318,987
|
325,631
|
295,131
|
|
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 £42.9bn of CET1 capital and £318.0bn 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 14.2%. 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
|
Six months
|
|
ended
|
ended
|
|
30.06.20
|
30.06.20
|
|
£m
|
£m
|
|
Opening CET1 capital
|
42,518
|
40,813
|
|
|
|
|
|
Profit for the period attributable to equity holders
|
296
|
1,122
|
|
Own credit relating to derivative liabilities
|
172
|
3
|
|
Dividends paid and foreseen
|
(201)
|
625
|
|
Increase in retained regulatory capital generated from
earnings
|
267
|
1,750
|
|
|
|
|
|
Net impact of share schemes
|
344
|
288
|
|
Fair value through other comprehensive income reserve
|
399
|
(378)
|
|
Currency translation reserve
|
223
|
1,220
|
|
Other reserves
|
3
|
(3)
|
|
Increase in other qualifying reserves
|
969
|
1,127
|
|
|
|
|
|
Pension remeasurements within reserves
|
(1,345)
|
645
|
|
Defined benefit pension fund asset deduction
|
1,509
|
(500)
|
|
Net impact of pensions
|
164
|
145
|
|
|
|
|
|
Additional value adjustments (PVA)
|
330
|
229
|
|
Goodwill and intangible assets
|
43
|
(45)
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(150)
|
35
|
|
Adjustment under IFRS 9 transitional arrangements
|
1,244
|
1,333
|
|
Other regulatory adjustments
|
(5)
|
(7)
|
|
Increase in regulatory capital due to adjustments and
deductions
|
1,462
|
1,545
|
|
|
|
|
|
Closing CET1 capital
|
45,380
|
45,380
|
|
|
|
|
CET1
capital increased £4.6bn to £45.4bn (December 2019:
£40.8bn).
£1.1bn
of capital generated from profits, and a £1.0bn increase due
to the cancellation of the full year 2019 dividend were partially
offset by £0.4bn of AT1 coupons paid. Other movements in the
period were:
|
●
|
A
£0.4bn decrease in the fair value through other comprehensive
income reserve driven by a decrease in the Absa Group Limited share
price
|
|
●
|
A
£1.2bn increase in the currency translation reserve mainly
driven by the appreciation of period end USD against
GBP
|
|
●
|
A
£0.1bn increase as a result of movements in pensions, largely
due to an additional £250m investment by the UKRF in
non-transferrable listed senior fixed rate notes, backed by UK
gilts
|
|
●
|
A
£0.2bn increase due to a reduction in PVA which includes the
temporary increase to diversification factors applied to certain
additional valuation adjustments
|
|
●
|
A
£1.3bn increase in the IFRS 9 transitional relief after tax
which was driven by £1.2bn in Q220 following new impairment
charges and the implementation of new regulatory measures which
allow for 100% relief on increases in stage 1 and stage 2
impairment throughout 2020 and 2021
|
|
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 30.06.20
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays UK
|
7,428
|
58,048
|
|
359
|
-
|
-
|
48
|
|
122
|
-
|
|
11,851
|
77,856
|
|
Corporate
and Investment Bank
|
27,032
|
77,983
|
|
11,879
|
20,472
|
218
|
3,871
|
|
12,830
|
22,638
|
|
21,387
|
198,310
|
|
Consumer,
Cards and Payments
|
21,901
|
3,168
|
|
157
|
46
|
-
|
27
|
|
-
|
95
|
|
7,539
|
32,933
|
|
Barclays International
|
48,933
|
81,151
|
|
12,036
|
20,518
|
218
|
3,898
|
|
12,830
|
22,733
|
|
28,926
|
231,243
|
|
Head Office
|
3,578
|
6,183
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
127
|
9,888
|
|
Barclays Group
|
59,939
|
145,382
|
|
12,395
|
20,518
|
218
|
3,946
|
|
12,952
|
22,733
|
|
40,904
|
318,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.03.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
5,835
|
59,451
|
|
311
|
-
|
-
|
28
|
|
202
|
-
|
|
11,851
|
77,678
|
|
Corporate
and Investment Bank
|
30,620
|
71,993
|
|
15,611
|
19,756
|
1,022
|
3,309
|
|
14,036
|
24,010
|
|
21,390
|
201,747
|
|
Consumer,
Cards and Payments
|
25,205
|
3,085
|
|
132
|
31
|
-
|
21
|
|
-
|
151
|
|
7,536
|
36,161
|
|
Barclays International
|
55,825
|
75,078
|
|
15,743
|
19,787
|
1,022
|
3,330
|
|
14,036
|
24,161
|
|
28,926
|
237,908
|
|
Head Office
|
3,706
|
6,212
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
127
|
10,045
|
|
Barclays Group
|
65,366
|
140,741
|
|
16,054
|
19,787
|
1,022
|
3,358
|
|
14,238
|
24,161
|
|
40,904
|
325,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
5,189
|
57,455
|
|
235
|
-
|
-
|
23
|
|
178
|
-
|
|
11,821
|
74,901
|
|
Corporate
and Investment Bank
|
25,749
|
62,177
|
|
12,051
|
16,875
|
276
|
2,470
|
|
12,854
|
17,626
|
|
21,475
|
171,553
|
|
Consumer,
Cards and Payments
|
27,209
|
2,706
|
|
92
|
37
|
-
|
11
|
|
-
|
103
|
|
7,532
|
37,690
|
|
Barclays International
|
52,958
|
64,883
|
|
12,143
|
16,912
|
276
|
2,481
|
|
12,854
|
17,729
|
|
29,007
|
209,243
|
|
Head Office
|
5,104
|
5,754
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
129
|
10,987
|
|
Barclays Group
|
63,251
|
128,092
|
|
12,378
|
16,912
|
276
|
2,504
|
|
13,032
|
17,729
|
|
40,957
|
295,131
|
|
Movement analysis of RWAs
|
|
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Opening RWAs (as at 31.12.19)
|
191,343
|
32,070
|
30,761
|
40,957
|
295,131
|
|
Book size
|
(1,161)
|
3,786
|
10,064
|
(53)
|
12,636
|
|
Acquisitions and disposals
|
(33)
|
-
|
-
|
-
|
(33)
|
|
Book quality
|
6,502
|
491
|
-
|
-
|
6,993
|
|
Model updates
|
1,846
|
182
|
-
|
-
|
2,028
|
|
Methodology and policy
|
1,881
|
548
|
(5,140)
|
-
|
(2,711)
|
|
Foreign exchange movements1
|
4,943
|
-
|
-
|
-
|
4,943
|
|
Closing RWAs (as at 30.06.20)
|
205,321
|
37,077
|
35,685
|
40,904
|
318,987
|
|
1
|
Foreign exchange movements does not include foreign exchange for
counterparty credit risk or market risk.
|
RWA
increased £23.9bn to £319.0bn:
|
●
|
Book
size increased RWAs £12.6bn primarily due to higher market
volatility and an increase in client activity compared to year-end
2019
|
|
●
|
Book
quality increased RWAs £7.0bn due to a reduction in credit
quality primarily within CIB
|
|
●
|
Model
updates increased RWAs £2.0bn primarily due to modelled risk
weights recalibrations
|
|
●
|
Methodology
and policy decreased RWAs £2.7bn primarily due to the removal
of a Risk Not In VaR (RNIV) and the reduction in capital
requirements related to VaR backtesting exceptions
|
|
●
|
Foreign
exchange movements increased RWAs £4.9bn due to the
appreciation of period end USD against GBP
|
Leverage ratio and exposures
The
Group is subject to a leverage ratio requirement of 3.8% as at 30
June 2020. This comprises the 3.25% minimum requirement, a G-SII
additional leverage ratio buffer (G-SII ALRB) of 0.53% and a
countercyclical leverage ratio buffer (CCLB) of 0.0%. Although the
leverage ratio is expressed in terms of T1 capital, 75% of the
minimum requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was £6.0bn.
The
Group is required to disclose an average UK leverage ratio which is
based on capital on the last day of each month in the quarter and
an exposure measure for each day in the quarter. The Group is also
required to disclose a UK leverage ratio based on capital and
exposure on the last day of the quarter. Both approaches exclude
qualifying claims on central banks from the leverage exposures and
include the PRA’s early adoption of CRR II settlement
netting.
|
Leverage ratios1,2
|
As at
30.06.20
|
As at
31.03.20
|
As at
31.12.19
|
|
£m
|
£m
|
£m
|
|
Average UK leverage ratio
|
4.7%
|
4.5%
|
4.5%
|
|
Average T1 capital3
|
54,548
|
53,274
|
51,823
|
|
Average UK leverage exposure
|
1,148,720
|
1,176,198
|
1,142,819
|
|
|
|
|
|
|
UK leverage ratio
|
5.2%
|
4.5%
|
5.1%
|
|
|
|
|
|
|
CET1 capital
|
45,380
|
42,518
|
40,812
|
|
AT1 capital
|
10,791
|
10,741
|
10,741
|
|
T1 capital3
|
56,171
|
53,259
|
51,553
|
|
|
|
|
|
|
UK leverage exposure
|
1,071,138
|
1,178,708
|
1,007,721
|
|
|
|
|
|
|
UK leverage exposure
|
|
|
|
|
Accounting assets
|
|
|
|
|
Derivative financial instruments
|
307,258
|
342,120
|
229,236
|
|
Derivative cash collateral
|
77,063
|
85,321
|
56,589
|
|
Securities financing transactions (SFTs)
|
160,015
|
185,725
|
111,307
|
|
Loans and advances and other assets
|
840,781
|
831,130
|
743,097
|
|
Total IFRS assets
|
1,385,117
|
1,444,296
|
1,140,229
|
|
|
|
|
|
|
Regulatory consolidation adjustments
|
(1,982)
|
(4,841)
|
(1,170)
|
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
|
Derivatives netting
|
(279,151)
|
(309,585)
|
(207,756)
|
|
Adjustments to cash collateral
|
(67,718)
|
(70,758)
|
(48,464)
|
|
Net written credit protection
|
14,442
|
19,994
|
13,784
|
|
Potential future exposure (PFE) on derivatives
|
123,468
|
126,503
|
119,118
|
|
Total derivatives adjustments
|
(208,959)
|
(233,846)
|
(123,318)
|
|
|
|
|
|
|
SFTs adjustments
|
21,226
|
34,271
|
18,339
|
|
|
|
|
|
|
Regulatory deductions and other adjustments
|
(18,297)
|
(14,615)
|
(11,984)
|
|
|
|
|
|
|
Weighted off-balance sheet commitments
|
108,436
|
102,499
|
105,289
|
|
|
|
|
|
|
Qualifying central bank claims
|
(173,033)
|
(149,056)
|
(119,664)
|
|
|
|
|
|
|
Settlement netting
|
(41,370)
|
-
|
-
|
|
|
|
|
|
|
UK leverage
exposure2
|
1,071,138
|
1,178,708
|
1,007,721
|
|
1
|
Fully loaded average UK leverage ratio was
4.6%, with £53.0bn of T1 capital and £1,147bn of leverage
exposure. Fully loaded UK leverage ratio was 5.0%, with
£53.7bn of T1 capital and £1,069bn of leverage exposure.
Fully loaded UK leverage ratios are calculated without applying the
transitional arrangements of the CRR as amended by CRR II
applicable as at the reporting date.
|
|
2
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR II
applicable as at the reporting date.
|
|
3
|
T1 capital is calculated in line with the PRA Handbook.
|
The
average UK leverage ratio increased to 4.7% (December 2019: 4.5%),
driven by an increase in T1 capital. The leverage exposure
increased by £6bn to £1,149bn, primarily driven by SFTs
and loans and advances and other assets, partially offset by the
PRA’s early adoption of CRR II settlement
netting.
The UK
leverage ratio increased to 5.2% (December 2019: 5.1%), driven by
an increase in T1 capital. The UK leverage exposure increased by
£63bn to £1,071bn, primarily driven by SFTs and loans and
advances and other assets, partially offset by the PRA’s
early adoption of CRR II settlement netting.
The
Group also discloses a CRR leverage ratio1 within its
additional regulatory disclosures prepared in accordance with EBA
guidelines on disclosure under Part Eight of the CRR (see Barclays
PLC Pillar 3 Report H1 2020, expected to be published on 14 August
2020 and which will be available at home.barclays/investor-relations/reports-and-events/latest-financial-results).
|
1
|
CRR leverage ratio as amended by CRR II applicable as at the
reporting date.
|
MREL
CRR II
requirements relating to own funds and eligible liabilities came
into effect from 27 June 2019. Eligible liabilities have been
calculated reflecting the Group’s interpretation of the
current rules and guidance. Certain aspects of CRR II are dependent
on final technical standards to be issued by the EBA and adopted by
the European Commission as well as UK implementation of the
rules.
The
Group is required to meet the higher of: (i) the MREL set by the
Bank of England; and (ii) the requirements in CRR II, both of which
have RWA and leverage based requirements. MREL is subject to phased
implementation and will be fully implemented by 1 January 2022, at
which time the Group’s indicative MREL is expected to be two
times the sum of its Pillar 1 and Pillar 2A requirements, as set by
the Bank of England. In addition, CET1 capital cannot be counted
towards both MREL and the capital buffers, meaning that the buffers
will effectively be applied above both the Pillar 1 and Pillar 2A
requirements relating to own funds and eligible liabilities. The
Bank of England will review the MREL calibration by the end of
2020, including assessing the proposal for Pillar 2A
recapitalisation, which may drive a different 1 January 2022 MREL
than currently proposed.
|
Own funds and eligible liabilities
ratios1
|
As at
30.06.20
|
As at
31.03.20
|
As at
31.12.19
|
|
CET1 capital
|
14.2%
|
13.1%
|
13.8%
|
|
AT1 capital instruments and related share premium
accounts2
|
3.4%
|
3.3%
|
3.6%
|
|
T2 capital instruments and related share premium
accounts2
|
2.8%
|
2.6%
|
2.5%
|
|
Eligible liabilities
|
12.0%
|
10.3%
|
11.2%
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
32.4%
|
29.3%
|
31.2%
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
0.2%
|
0.2%
|
0.2%
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1.1%
|
1.2%
|
1.3%
|
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
33.7%
|
30.7%
|
32.8%
|
|
|
|
|
|
|
Own funds and eligible
liabilities1
|
£m
|
£m
|
£m
|
|
CET1 capital
|
45,380
|
42,518
|
40,813
|
|
AT1 capital instruments and related share premium
accounts2
|
10,791
|
10,741
|
10,741
|
|
T2 capital instruments and related share premium
accounts2
|
8,904
|
8,369
|
7,416
|
|
Eligible liabilities
|
38,308
|
33,674
|
33,025
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
103,383
|
95,302
|
91,995
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
691
|
753
|
687
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
3,396
|
4,013
|
3,984
|
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
107,470
|
100,068
|
96,666
|
|
|
|
|
|
|
Total RWAs1
|
318,987
|
325,631
|
295,131
|
|
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
|
Includes other AT1 capital regulatory adjustments and deductions of
£80m (December 2019: £130m), and other T2 credit risk
adjustments and deductions of £124m (December 2019:
£234m).
|
Statement of Directors’ Responsibilities
The
Directors (the names of whom are set out below) are required to
prepare the financial statements on a going concern basis unless it
is not appropriate to do so. In making this assessment, the
directors have considered information relating to present and
future conditions. Each of
the Directors confirm that to the best of their knowledge, the
condensed consolidated interim financial statements set out on
pages 57 to 62 have been prepared in accordance with International
Accounting Standard 34, ‘Interim Financial Reporting’,
as adopted by the European Union (EU), and that the interim
management report herein includes a fair review of the information
required by Disclosure and Transparency Rules 4.2.7R and 4.2.8R
namely:
|
●
|
an indication of important events that have occurred during the six
months ended 30 June 2020 and their impact on the condensed
consolidated interim financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year
|
|
●
|
any related party transactions in the six months ended 30 June 2020
that have materially affected the financial position or performance
of Barclays during that period and any changes in the related party
transactions described in the last Annual Report that could have a
material effect on the financial position or performance of
Barclays in the six months ended 30 June 2020
|
Signed
on 28 July 2020 on behalf of the Board by
|
James E Staley
|
Tushar Morzaria
|
|
Group
Chief Executive
|
Group
Finance Director
|
Barclays
PLC Board of Directors:
|
Chairman
Nigel Higgins
|
Executive Directors
James E Staley
Tushar Morzaria
|
Non-executive Directors
Mike Ashley
Tim Breedon CBE
Sir Ian Cheshire
Mary Anne Citrino
Mohamed A. El-Erian
Dawn Fitzpatrick
Mary Francis CBE
Crawford Gillies
Brian Gilvary
Diane Schueneman
|
Independent Review Report to Barclays PLC
Conclusion
We have
been engaged by the company to review the condensed set of
financial statements in the Interim Results Announcement for the
six months ended 30 June 2020 which comprises:
|
●
|
the
condensed consolidated income statement and condensed consolidated
statement of comprehensive income for the period then
ended;
|
|
●
|
the
condensed consolidated balance sheet as at 30 June
2020;
|
|
●
|
the
condensed consolidated statement of changes in equity for the
period then ended;
|
|
●
|
the
condensed consolidated cash flow statement for the period then
ended; and
|
|
●
|
the
related explanatory notes
|
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the
Interim Results Announcement for the six months ended 30 June 2020
is not prepared, in all material respects, in accordance with IAS
34 Interim Financial
Reporting as adopted by the EU and the Disclosure Guidance
and Transparency Rules (“the DTR”) of the UK’s
Financial Conduct Authority (“the UK
FCA”).
Scope of review
We
conducted our review in accordance with International Standard on
Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by
the Auditing Practices Board for use in the UK. A review of interim
financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other
information contained in the Interim Results Announcement and
consider whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
Directors’ responsibilities
The
Interim Results Announcement is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the Interim Results Announcement in accordance with the
DTR of the UK FCA.
As
disclosed in Note 1, Basis of preparation, the annual financial
statements of the Barclays Group are prepared in accordance with
International Financial Reporting Standards as adopted by the EU.
The directors are responsible for preparing the condensed set of
financial statements included in the Interim Results Announcement
in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our
responsibility is to express to the company a conclusion on the
condensed set of financial statements in the Interim Results
Announcement based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This
report is made solely to the company in accordance with the terms
of our engagement to assist the company in meeting the requirements
of the DTR of the UK FCA. Our review has been undertaken so that we
might state to the company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Michelle Hinchliffe
for and on behalf of KPMG LLP
Chartered Accountants
15
Canada Square
London,
E14 5GL
28 July
2020
Condensed Consolidated Financial Statements
|
Condensed consolidated income statement (unaudited)
|
|
|
|
Half year ended
|
Half year ended
|
|
|
|
30.06.20
|
30.06.19
|
|
|
Notes1
|
£m
|
£m
|
|
Interest and similar income
|
|
6,437
|
7,496
|
|
Interest and similar expense
|
|
(2,214)
|
(2,878)
|
|
Net interest income
|
|
4,223
|
4,618
|
|
Fee and commission income
|
3
|
4,399
|
4,484
|
|
Fee and commission expense
|
3
|
(1,090)
|
(1,150)
|
|
Net fee and commission income
|
3
|
3,309
|
3,334
|
|
Net trading income
|
|
4,198
|
2,124
|
|
Net investment income
|
|
(136)
|
662
|
|
Other income
|
|
27
|
52
|
|
Total income
|
|
11,621
|
10,790
|
|
Credit impairment charges
|
|
(3,738)
|
(928)
|
|
Net operating income
|
|
7,883
|
9,862
|
|
|
|
|
|
|
Staff costs
|
4
|
(4,053)
|
(4,264)
|
|
Infrastructure, administration and general expenses
|
5
|
(2,510)
|
(2,494)
|
|
Litigation and conduct
|
|
(30)
|
(114)
|
|
Operating expenses
|
|
(6,593)
|
(6,872)
|
|
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
(31)
|
14
|
|
Profit on disposal of subsidiaries, associates and joint
ventures
|
|
13
|
10
|
|
Profit before tax
|
|
1,272
|
3,014
|
|
Tax charge
|
6
|
(113)
|
(545)
|
|
Profit after tax
|
|
1,159
|
2,469
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
695
|
2,072
|
|
Other equity instrument holders
|
|
427
|
363
|
|
Total equity holders of the parent
|
|
1,122
|
2,435
|
|
Non-controlling interests
|
7
|
37
|
34
|
|
Profit after tax
|
|
1,159
|
2,469
|
|
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
8
|
4.0
|
12.1
|
|
Diluted earnings per ordinary share
|
8
|
3.9
|
11.9
|
|
1
|
For notes to the Financial Statements see pages 63 to
87.
|
|
Condensed consolidated statement of comprehensive income
(unaudited)
|
|
|
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
|
30.06.20
|
30.06.19
|
|
|
Notes1
|
£m
|
£m
|
|
Profit after tax
|
|
1,159
|
2,469
|
|
|
|
|
|
|
Other comprehensive income/(loss) that
may be recycled to profit or loss:2
|
|
|
|
Currency translation reserve
|
18
|
1,220
|
177
|
|
Fair value through other comprehensive income reserve
|
18
|
137
|
380
|
|
Cash flow hedging reserve
|
18
|
912
|
528
|
|
Other
|
18
|
(6)
|
-
|
|
Other comprehensive income that may be recycled to
profit
|
|
2,263
|
1,085
|
|
|
|
|
|
|
Other comprehensive income/(loss) not
recycled to profit or loss:2
|
|
|
|
Retirement benefit remeasurements
|
15
|
645
|
(140)
|
|
Fair value through other comprehensive income reserve
|
18
|
(515)
|
125
|
|
Own credit
|
18
|
496
|
44
|
|
Other comprehensive income not recycled to profit
|
|
626
|
29
|
|
|
|
|
|
|
Other comprehensive income for the period
|
|
2,889
|
1,114
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
4,048
|
3,583
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
4,011
|
3,549
|
|
Non-controlling interests
|
|
37
|
34
|
|
Total comprehensive income for the period
|
|
4,048
|
3,583
|
|
1
|
For notes to the Financial Statements see pages 63 to
87.
|
|
2
|
Reported net of tax.
|
|
Condensed consolidated balance sheet (unaudited)
|
|
|
|
As at
|
As at
|
|
|
|
30.06.20
|
31.12.19
|
|
Assets
|
Notes1
|
£m
|
£m
|
|
Cash and balances at central banks
|
|
194,452
|
150,258
|
|
Cash collateral and settlement balances
|
|
134,945
|
83,256
|
|
Loans and advances at amortised cost
|
12
|
354,912
|
339,115
|
|
Reverse repurchase agreements and other similar secured
lending
|
|
22,224
|
3,379
|
|
Trading portfolio assets
|
|
110,062
|
114,195
|
|
Financial assets at fair value through the income
statement
|
|
158,975
|
133,086
|
|
Derivative financial instruments
|
10
|
307,258
|
229,236
|
|
Financial assets at fair value through other comprehensive
income
|
|
79,764
|
65,750
|
|
Investments in associates and joint ventures
|
|
720
|
721
|
|
Goodwill and intangible assets
|
|
8,163
|
8,119
|
|
Property, plant and equipment
|
|
4,239
|
4,215
|
|
Current tax assets
|
|
556
|
412
|
|
Deferred tax assets
|
6
|
2,671
|
3,290
|
|
Retirement benefit assets
|
15
|
2,848
|
2,108
|
|
Other assets
|
|
3,328
|
3,089
|
|
Total assets
|
|
1,385,117
|
1,140,229
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits at amortised cost
|
12
|
466,913
|
415,787
|
|
Cash collateral and settlement balances
|
|
112,907
|
67,341
|
|
Repurchase agreements and other similar secured
borrowing
|
|
19,144
|
14,517
|
|
Debt securities in issue
|
|
103,970
|
76,369
|
|
Subordinated liabilities
|
13
|
19,886
|
18,156
|
|
Trading portfolio liabilities
|
|
51,606
|
36,916
|
|
Financial liabilities designated at fair value
|
|
221,460
|
204,326
|
|
Derivative financial instruments
|
10
|
307,891
|
229,204
|
|
Current tax liabilities
|
|
322
|
313
|
|
Deferred tax liabilities
|
6
|
23
|
23
|
|
Retirement benefit liabilities
|
15
|
371
|
348
|
|
Other liabilities
|
|
8,471
|
8,505
|
|
Provisions
|
14
|
2,612
|
2,764
|
|
Total liabilities
|
|
1,315,576
|
1,074,569
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called up share capital and share premium
|
16
|
4,620
|
4,594
|
|
Other reserves
|
18
|
6,996
|
4,760
|
|
Retained earnings
|
|
45,817
|
44,204
|
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
57,433
|
53,558
|
|
Other equity instruments
|
17
|
10,871
|
10,871
|
|
Total equity excluding non-controlling interests
|
|
68,304
|
64,429
|
|
Non-controlling interests
|
7
|
1,237
|
1,231
|
|
Total equity
|
|
69,541
|
65,660
|
|
|
|
|
|
|
Total liabilities and equity
|
|
1,385,117
|
1,140,229
|
|
1
|
For notes to the Financial Statements see pages 63 to
87.
|
|
Condensed consolidated statement of changes in equity
(unaudited)
|
|
|
Called up share capital and share
premium1
|
Other equity
instruments1
|
Other reserves1
|
Retained earnings
|
Total
|
Non-controlling
interests2
|
Total equity
|
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Balance as at 1 January 2020
|
4,594
|
10,871
|
4,760
|
44,204
|
64,429
|
1,231
|
65,660
|
|
Profit after tax
|
-
|
427
|
-
|
695
|
1,122
|
37
|
1,159
|
|
Currency translation movements
|
-
|
-
|
1,220
|
-
|
1,220
|
-
|
1,220
|
|
Fair value through other comprehensive income reserve
|
-
|
-
|
(378)
|
-
|
(378)
|
-
|
(378)
|
|
Cash flow hedges
|
-
|
-
|
912
|
-
|
912
|
-
|
912
|
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
645
|
645
|
-
|
645
|
|
Own credit
|
-
|
-
|
496
|
-
|
496
|
-
|
496
|
|
Other
|
-
|
-
|
-
|
(6)
|
(6)
|
-
|
(6)
|
|
Total comprehensive income for the period
|
-
|
427
|
2,250
|
1,334
|
4,011
|
37
|
4,048
|
|
Equity settled share schemes
|
26
|
-
|
-
|
603
|
629
|
-
|
629
|
|
Other equity instruments coupons paid
|
-
|
(427)
|
-
|
-
|
(427)
|
-
|
(427)
|
|
Vesting of shares under employee share schemes
|
-
|
-
|
(14)
|
(327)
|
(341)
|
-
|
(341)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(37)
|
(37)
|
|
Other movements
|
-
|
-
|
-
|
3
|
3
|
6
|
9
|
|
Balance as at 30 June 2020
|
4,620
|
10,871
|
6,996
|
45,817
|
68,304
|
1,237
|
69,541
|
|
|
|
|
|
|
|
|
|
|
Half year ended 31.12.19
|
|
|
|
|
|
|
|
|
Balance as at 1 July 2019
|
4,494
|
12,123
|
6,403
|
44,556
|
67,576
|
1,221
|
68,797
|
|
Profit after tax
|
-
|
450
|
-
|
389
|
839
|
46
|
885
|
|
Currency translation movements
|
-
|
-
|
(721)
|
-
|
(721)
|
-
|
(721)
|
|
Fair value through other comprehensive income reserve
|
-
|
-
|
(434)
|
-
|
(434)
|
-
|
(434)
|
|
Cash flow hedges
|
-
|
-
|
(186)
|
-
|
(186)
|
-
|
(186)
|
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
(54)
|
(54)
|
-
|
(54)
|
|
Own credit
|
-
|
-
|
(296)
|
-
|
(296)
|
-
|
(296)
|
|
Other
|
-
|
-
|
-
|
16
|
16
|
-
|
16
|
|
Total comprehensive income for the period
|
-
|
450
|
(1,637)
|
351
|
(836)
|
46
|
(790)
|
|
Issue of new ordinary shares
|
23
|
-
|
-
|
-
|
23
|
-
|
23
|
|
Equity settled share schemes
|
77
|
-
|
-
|
237
|
314
|
-
|
314
|
|
Issue and exchange of other equity instruments
|
-
|
(1,266)
|
-
|
(406)
|
(1,672)
|
-
|
(1,672)
|
|
Other equity instruments coupons paid
|
-
|
(450)
|
-
|
-
|
(450)
|
-
|
(450)
|
|
Vesting of shares under employee share schemes
|
-
|
-
|
(6)
|
(20)
|
(26)
|
-
|
(26)
|
|
Dividends paid
|
-
|
-
|
-
|
(517)
|
(517)
|
(46)
|
(563)
|
|
Other movements
|
-
|
14
|
-
|
3
|
17
|
10
|
27
|
|
Balance as at 31 December 2019
|
4,594
|
10,871
|
4,760
|
44,204
|
64,429
|
1,231
|
65,660
|
|
1
|
Details of share capital, other equity instruments and other
reserves are shown on pages 78 to 80.
|
|
2
|
Details of non-controlling interests are shown on page
67.
|
|
Condensed consolidated statement of changes in equity
(unaudited)
|
|
|
Called up share capital and share
premium1
|
Other equity
instruments1
|
Other reserves1
|
Retained earnings
|
Total
|
Non-controlling
interests2
|
Total equity
|
|
Half year ended 30.06.19
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Balance as at 1 January 2019
|
4,311
|
9,632
|
5,153
|
43,460
|
62,556
|
1,223
|
63,779
|
|
Profit after tax
|
-
|
363
|
-
|
2,072
|
2,435
|
34
|
2,469
|
|
Currency translation movements
|
-
|
-
|
177
|
-
|
177
|
-
|
177
|
|
Fair value through other comprehensive income reserve
|
-
|
-
|
505
|
-
|
505
|
-
|
505
|
|
Cash flow hedges
|
-
|
-
|
528
|
-
|
528
|
-
|
528
|
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
(140)
|
(140)
|
-
|
(140)
|
|
Own credit
|
-
|
-
|
44
|
-
|
44
|
-
|
44
|
|
Total comprehensive income for the period
|
-
|
363
|
1,254
|
1,932
|
3,549
|
34
|
3,583
|
|
Issue of new ordinary shares
|
159
|
-
|
-
|
-
|
159
|
-
|
159
|
|
Equity settled share schemes
|
24
|
-
|
-
|
241
|
265
|
-
|
265
|
|
Issue and exchange of other equity instruments
|
-
|
2,504
|
-
|
-
|
2,504
|
-
|
2,504
|
|
Other equity instruments coupons paid
|
-
|
(363)
|
-
|
-
|
(363)
|
-
|
(363)
|
|
Vesting of shares under employee share schemes
|
-
|
-
|
(4)
|
(384)
|
(388)
|
-
|
(388)
|
|
Dividends paid
|
-
|
-
|
-
|
(684)
|
(684)
|
(34)
|
(718)
|
|
Other movements
|
-
|
(13)
|
-
|
(9)
|
(22)
|
(2)
|
(24)
|
|
Balance as at 30 June 2019
|
4,494
|
12,123
|
6,403
|
44,556
|
67,576
|
1,221
|
68,797
|
|
1
|
Details of share capital, other equity instruments and other
reserves are shown on pages 78 to 80.
|
|
2
|
Details of non-controlling interests are shown on page
67.
|
|
Condensed consolidated cash flow statement (unaudited)
|
|
|
|
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
£m
|
£m
|
|
Profit before tax
|
1,272
|
3,014
|
|
Adjustment for non-cash items
|
(1,112)
|
(297)
|
|
Net increase in loans and advances at amortised cost
|
(19,431)
|
(11,333)
|
|
Net increase in deposits at amortised cost
|
51,126
|
18,758
|
|
Net increase in debt securities in issue
|
24,183
|
8,529
|
|
Changes in other operating assets and liabilities
|
4,757
|
(15,487)
|
|
Corporate income tax paid
|
(351)
|
(260)
|
|
Net cash from operating activities
|
60,444
|
2,924
|
|
Net cash from investing activities
|
(11,599)
|
(17,075)
|
|
Net cash from financing activities
|
3,133
|
(610)
|
|
Effect of exchange rates on cash and cash equivalents
|
7,814
|
652
|
|
Net increase/(decrease) in cash and cash equivalents
|
59,792
|
(14,109)
|
|
Cash and cash equivalents at beginning of the period
|
183,387
|
211,166
|
|
Cash and cash equivalents at end of the period
|
243,179
|
197,057
|
Financial Statement Notes
These
condensed consolidated interim financial statements for the six
months ended 30 June 2020 have been prepared in accordance with the
DTR of the UK FCA and with IAS 34, Interim Financial Reporting, as
published by the International Accounting Standards Board (IASB)
and adopted by the EU. The condensed consolidated interim financial
statements should be read in conjunction with the annual financial
statements for the year ended 31 December 2019, which have been
prepared in accordance with IFRSs as published by the IASB and as
adopted by the EU.
The
accounting policies and methods of computation used in these
condensed consolidated interim financial statements are the same as
those used in the Barclays PLC Annual Report 2019.
The
financial statements are prepared on a going concern basis, as the
Directors are satisfied that the Group and parent company have the
resources to continue in business for the foreseeable future. In
making this assessment, the Directors have considered a wide range
of information relating to present and future conditions, including
future projections of profitability, cash flows, capital
requirements and capital resources. The future conditions
considered included an assessment of internally generated stress
scenarios assuming a prolonged economic stress and impact on the
future operational and financial performance of the
Group.
The
Credit risk disclosures on pages 25 to 39 form part of these
interim financial statements.
|
Analysis of results by business
|
|
|
|
|
|
|
Barclays
UK
|
Barclays
International
|
Head
Office
|
Barclays
Group
|
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
£m
|
|
Total income
|
3,171
|
8,654
|
(204)
|
11,621
|
|
Credit impairment charges
|
(1,064)
|
(2,619)
|
(55)
|
(3,738)
|
|
Net operating income/(expenses)
|
2,107
|
6,035
|
(259)
|
7,883
|
|
Operating expenses
|
(2,041)
|
(4,405)
|
(117)
|
(6,563)
|
|
Litigation and conduct
|
(11)
|
(11)
|
(8)
|
(30)
|
|
Total operating expenses
|
(2,052)
|
(4,416)
|
(125)
|
(6,593)
|
|
Other net income/(expenses)1
|
13
|
10
|
(41)
|
(18)
|
|
Profit/(loss) before tax
|
68
|
1,629
|
(425)
|
1,272
|
|
|
|
|
|
|
|
As at 30.06.20
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
287.6
|
1,075.8
|
21.7
|
1,385.1
|
|
|
Barclays
UK
|
Barclays
International
|
Head
Office
|
Barclays
Group
|
|
Half year ended 30.06.19
|
£m
|
£m
|
£m
|
£m
|
|
Total income
|
3,548
|
7,473
|
(231)
|
10,790
|
|
Credit impairment charges
|
(421)
|
(492)
|
(15)
|
(928)
|
|
Net operating income/(expenses)
|
3,127
|
6,981
|
(246)
|
9,862
|
|
Operating expenses
|
(2,021)
|
(4,641)
|
(96)
|
(6,758)
|
|
Litigation and conduct
|
(44)
|
(30)
|
(40)
|
(114)
|
|
Total operating expenses
|
(2,065)
|
(4,671)
|
(136)
|
(6,872)
|
|
Other net income/(expenses)1
|
-
|
31
|
(7)
|
24
|
|
Profit/(loss) before tax
|
1,062
|
2,341
|
(389)
|
3,014
|
|
|
|
|
|
|
|
As at 31.12.19
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
257.8
|
861.4
|
21.0
|
1,140.2
|
|
1
|
Other net income/(expenses) represents the share of post-tax
results of associates and joint ventures, profit (or loss) on
disposal of subsidiaries, associates and joint ventures and gains
on acquisitions.
|
On 1
April 2020, assets of £2.2bn relating to the Barclays Partner
Finance business were moved from Barclays International to Barclays
UK, with net operating income of £19m and loss before tax of
£5m subsequently recognised in Barclays UK in Q220. In the
half year ended 30 June 2019, Barclays Partner Finance generated
net operating income of £76m and profit before tax of
£23m. The 2019 comparative figures have not been
restated.
|
Split of income by geographic region1
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
£m
|
£m
|
|
UK
|
5,989
|
5,873
|
|
Europe
|
1,199
|
788
|
|
Americas
|
3,776
|
3,591
|
|
Africa and Middle East
|
20
|
40
|
|
Asia
|
637
|
498
|
|
Total
|
11,621
|
10,790
|
|
1
|
The geographical analysis is now based on the location of office
where the transactions are recorded, whereas in the prior year it
was based on counterparty location. The approach was changed at
year-end 2019 and is better aligned to the geographical view of the
business following the implementation of structural reform. Prior
year comparatives have been restated.
|
3.
Net fee and commission income
Fee and
commission income is disaggregated below and includes a total for
fees in scope of IFRS 15, Revenue from Contracts with
Customers:
|
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
£m
|
|
Fee type
|
|
|
|
|
|
Transactional
|
386
|
1,157
|
-
|
1,543
|
|
Advisory
|
79
|
306
|
1
|
386
|
|
Brokerage and execution
|
102
|
685
|
-
|
787
|
|
Underwriting and syndication
|
-
|
1,468
|
-
|
1,468
|
|
Other
|
38
|
115
|
2
|
155
|
|
Total revenue from contracts with customers
|
605
|
3,731
|
3
|
4,339
|
|
Other non-contract fee income
|
-
|
60
|
-
|
60
|
|
Fee and commission income
|
605
|
3,791
|
3
|
4,399
|
|
Fee and commission expense
|
(148)
|
(940)
|
(2)
|
(1,090)
|
|
Net fee and commission income
|
457
|
2,851
|
1
|
3,309
|
|
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
|
Half year ended 30.06.19
|
£m
|
£m
|
£m
|
£m
|
|
Fee type
|
|
|
|
|
|
Transactional
|
523
|
1,353
|
-
|
1,876
|
|
Advisory
|
88
|
406
|
-
|
494
|
|
Brokerage and execution
|
101
|
536
|
-
|
637
|
|
Underwriting and syndication
|
-
|
1,240
|
-
|
1,240
|
|
Other
|
45
|
131
|
7
|
183
|
|
Total revenue from contracts with customers
|
757
|
3,666
|
7
|
4,430
|
|
Other non-contract fee income
|
-
|
54
|
-
|
54
|
|
Fee and commission income
|
757
|
3,720
|
7
|
4,484
|
|
Fee and commission expense
|
(187)
|
(957)
|
(6)
|
(1,150)
|
|
Net fee and commission income
|
570
|
2,763
|
1
|
3,334
|
Transactional
fees are service charges on deposit accounts, cash management
services and transactional processing fees. This includes
interchange and merchant fee income generated from credit and bank
card usage.
Advisory
fees are generated from asset management services and advisory
services related to mergers, acquisitions and financial
restructuring.
Brokerage
and execution fees are earned for executing client transactions
with exchanges and over-the-counter markets and assisting clients
in clearing transactions.
Underwriting and syndication fees are earned for the distribution
of client equity or debt securities and the arrangement and
administration of a loan syndication. This includes commitment fees
to provide loan financing.
|
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
Compensation costs
|
£m
|
£m
|
|
Current year bonus charges
|
476
|
456
|
|
Deferred bonus charge
|
269
|
226
|
|
Commissions and other incentives
|
4
|
34
|
|
Performance costs
|
749
|
716
|
|
Salaries
|
2,153
|
2,195
|
|
Social security costs
|
317
|
315
|
|
Post-retirement benefits
|
268
|
251
|
|
Other compensation costs
|
254
|
232
|
|
Total compensation costs
|
3,741
|
3,709
|
|
|
|
|
|
Other resourcing costs
|
|
|
|
Outsourcing
|
175
|
257
|
|
Redundancy and restructuring
|
39
|
49
|
|
Temporary staff costs
|
58
|
173
|
|
Other
|
40
|
76
|
|
Total other resourcing costs
|
312
|
555
|
|
|
|
|
|
Total staff costs
|
4,053
|
4,264
|
|
|
|
|
|
Barclays Group compensation costs as a % of total
income
|
32.2
|
34.4
|
No
material awards have yet been granted in relation to the 2020 bonus
pool as decisions regarding incentive awards are not taken by the
Remuneration Committee until the performance for the full year can
be assessed. The current year bonus charge for the first six months
represents an accrual for estimated costs in accordance with
accounting requirements.
5.
Infrastructure, administration and general expenses
|
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
Infrastructure costs
|
£m
|
£m
|
|
Property and equipment
|
757
|
691
|
|
Depreciation and amortisation
|
751
|
729
|
|
Lease payments
|
26
|
21
|
|
Impairment of property, equipment and intangible
assets
|
32
|
29
|
|
Total infrastructure costs
|
1,566
|
1,470
|
|
|
|
|
|
Administration and general expenses
|
|
|
|
Consultancy, legal and professional fees
|
270
|
284
|
|
Marketing and advertising
|
158
|
212
|
|
Other administration and general expenses
|
516
|
528
|
|
Total administration and general expenses
|
944
|
1,024
|
|
|
|
|
|
Total infrastructure, administration and general
expenses
|
2,510
|
2,494
|
The tax
charge for H120 was £113m (H119: £545m), representing an
effective tax rate of 8.9% (H119: 18.1%). The effective tax rate
for H120 was lower than H119, reflecting the tax benefit recognised
for the re-measurement of UK deferred tax assets through the income
statement as a result of the UK corporation tax rate being
maintained at 19%.
Included
in the tax charge is a credit of £112m (H119: £96m) in
respect of payments made on AT1 instruments that are classified as
equity for accounting purposes.
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
Deferred tax assets and liabilities
|
£m
|
£m
|
|
USA
|
2,168
|
2,052
|
|
UK
|
-
|
818
|
|
Other territories
|
503
|
420
|
|
Deferred tax assets
|
2,671
|
3,290
|
|
Deferred tax liabilities
|
(23)
|
(23)
|
|
|
|
|
|
Analysis of deferred tax assets
|
|
|
|
Temporary differences
|
2,174
|
2,767
|
|
Tax losses
|
497
|
523
|
|
Deferred tax assets
|
2,671
|
3,290
|
7.
Non-controlling interests
|
|
Profit attributable to
non-controlling interests
|
|
Equity attributable to
non-controlling interests
|
|
|
Half year ended
|
Half year ended
|
|
As at
|
As at
|
|
|
30.06.20
|
30.06.19
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays Bank PLC issued:
|
|
|
|
|
|
|
- Preference shares
|
28
|
27
|
|
529
|
529
|
|
- Upper T2 instruments
|
9
|
7
|
|
691
|
691
|
|
Other non-controlling interests
|
-
|
-
|
|
17
|
11
|
|
Total
|
37
|
34
|
|
1,237
|
1,231
|
|
|
Half year ended
|
Half year ended
|
|
|
30.06.20
|
30.06.19
|
|
|
£m
|
£m
|
|
Profit attributable to ordinary equity holders of the
parent
|
695
|
2,072
|
|
|
|
|
|
|
m
|
m
|
|
Basic weighted average number of shares in issue
|
17,294
|
17,178
|
|
Number of potential ordinary shares
|
319
|
200
|
|
Diluted weighted average number of shares
|
17,613
|
17,378
|
|
|
|
|
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
4.0
|
12.1
|
|
Diluted earnings per ordinary share
|
3.9
|
11.9
|
9.
Dividends on ordinary shares
In
response to a request from the PRA, and to preserve additional
capital for use in serving Barclays customers and clients through
the extraordinary challenges presented by the COVID-19 pandemic,
the Board agreed to cancel the 6.0p per ordinary share full year
2019 dividend. The Board also decided that for 2020 Barclays would
suspend its current capital returns policy and accordingly will not
undertake any interim ordinary share dividend payments, regulatory
accruals of ordinary share dividends, or share buybacks. The Board
will decide on future dividends and its capital returns policy at
year-end 2020.
|
|
Half year ended 30.06.20
|
Half year ended 30.06.19
|
|
|
Per share
|
Total
|
Per share
|
Total
|
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
|
Full year dividend paid during period
|
-
|
-
|
4.0
|
684
|
|
10. Derivative financial instruments
|
|
|
|
|
|
|
Contract notional amount
|
|
Fair value
|
|
|
|
Assets
|
Liabilities
|
|
As at 30.06.20
|
£m
|
|
£m
|
£m
|
|
Foreign exchange derivatives
|
5,730,348
|
|
67,755
|
(68,502)
|
|
Interest rate derivatives
|
44,652,771
|
|
199,378
|
(191,435)
|
|
Credit derivatives
|
906,573
|
|
6,739
|
(6,955)
|
|
Equity and stock index and commodity derivatives
|
1,072,400
|
|
33,186
|
(40,120)
|
|
Derivative assets/(liabilities) held for trading
|
52,362,092
|
|
307,058
|
(307,012)
|
|
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
|
Derivatives designated as cash flow hedges
|
57,497
|
|
55
|
(10)
|
|
Derivatives designated as fair value hedges
|
126,692
|
|
145
|
(822)
|
|
Derivatives designated as hedges of net investments
|
709
|
|
-
|
(47)
|
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
184,898
|
|
200
|
(879)
|
|
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
52,546,990
|
|
307,258
|
(307,891)
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
Foreign exchange derivatives
|
4,999,865
|
|
56,576
|
(57,021)
|
|
Interest rate derivatives
|
35,098,216
|
|
142,325
|
(135,759)
|
|
Credit derivatives
|
825,516
|
|
8,215
|
(8,086)
|
|
Equity and stock index and commodity derivatives
|
1,187,513
|
|
21,947
|
(27,751)
|
|
Derivative assets/(liabilities) held for trading
|
42,111,110
|
|
229,063
|
(228,617)
|
|
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
|
Derivatives designated as cash flow hedges
|
67,773
|
|
7
|
(1)
|
|
Derivatives designated as fair value hedges
|
112,457
|
|
136
|
(586)
|
|
Derivatives designated as hedges of net investments
|
1,145
|
|
30
|
-
|
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
181,375
|
|
173
|
(587)
|
|
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
42,292,485
|
|
229,236
|
(229,204)
|
The
IFRS netting posted against derivative assets was £67bn
including £8bn of cash collateral netted (December 2019:
£37bn including £4bn cash collateral netted) and
£67bn for liabilities including £11bn of cash collateral
netted (December 2019: £37bn including £5bn of cash
collateral netted). Derivative asset exposures would be £283bn
(December 2019: £209bn) lower than reported under IFRS if
netting were permitted for assets and liabilities with the same
counterparty or for which the Group holds cash collateral of
£46bn (December 2019: £33bn). Similarly, derivative
liabilities would be £286bn (December 2019: £212bn) lower
reflecting counterparty netting and cash collateral placed of
£49bn (December 2019: £36bn). In addition, non-cash
collateral of £5bn (December 2019: £6bn) was held in
respect of derivative assets and £4bn (December 2019:
£3bn) was placed in respect of derivative liabilities.
Collateral amounts are limited to net on balance sheet exposure so
as to not include over-collateralisation.
11.
Fair value of financial instruments
This
section should be read in conjunction with Note 17, Fair value of
financial instruments of the Barclays PLC Annual Report 2019 and
Note 1, Basis of preparation on page 63, which provides more detail
about accounting policies adopted, valuation methodologies used in
calculating fair value and the valuation control framework which
governs oversight of valuations. There have been no changes in the
accounting policies adopted or the valuation methodologies
used.
Valuation
The
following table shows the Group’s assets and liabilities that
are held at fair value disaggregated by valuation technique (fair
value hierarchy) and balance sheet classification:
|
|
Valuation technique using
|
|
|
|
|
Quoted market prices
|
Observable inputs
|
Significant unobservable inputs
|
|
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
Total
|
|
As at 30.06.20
|
£m
|
£m
|
£m
|
|
£m
|
|
Trading portfolio assets
|
49,460
|
57,524
|
3,078
|
|
110,062
|
|
Financial assets at fair value through the income
statement
|
1,877
|
148,046
|
9,052
|
|
158,975
|
|
Derivative financial instruments
|
8,761
|
290,749
|
7,748
|
|
307,258
|
|
Financial assets at fair value through other comprehensive
income
|
20,657
|
58,760
|
347
|
|
79,764
|
|
Investment property
|
-
|
-
|
10
|
|
10
|
|
Total assets
|
80,755
|
555,079
|
20,235
|
|
656,069
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(32,411)
|
(19,195)
|
-
|
|
(51,606)
|
|
Financial liabilities designated at fair value
|
(123)
|
(220,968)
|
(369)
|
|
(221,460)
|
|
Derivative financial instruments
|
(8,445)
|
(290,514)
|
(8,932)
|
|
(307,891)
|
|
Total liabilities
|
(40,979)
|
(530,677)
|
(9,301)
|
|
(580,957)
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
Trading portfolio assets
|
60,352
|
51,579
|
2,264
|
|
114,195
|
|
Financial assets at fair value through the income
statement
|
10,445
|
114,141
|
8,500
|
|
133,086
|
|
Derivative financial instruments
|
5,439
|
220,642
|
3,155
|
|
229,236
|
|
Financial assets at fair value through other comprehensive
income
|
18,755
|
46,566
|
429
|
|
65,750
|
|
Investment property
|
-
|
-
|
13
|
|
13
|
|
Total assets
|
94,991
|
432,928
|
14,361
|
|
542,280
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(20,977)
|
(15,939)
|
-
|
|
(36,916)
|
|
Financial liabilities designated at fair value
|
(82)
|
(203,882)
|
(362)
|
|
(204,326)
|
|
Derivative financial instruments
|
(5,305)
|
(219,910)
|
(3,989)
|
|
(229,204)
|
|
Total liabilities
|
(26,364)
|
(439,731)
|
(4,351)
|
|
(470,446)
|
The
following table shows the Group’s Level 3 assets and
liabilities that are held at fair value disaggregated by product
type:
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|
|
£m
|
£m
|
£m
|
£m
|
|
Interest rate derivatives
|
4,153
|
(3,772)
|
605
|
(812)
|
|
Foreign exchange derivatives
|
655
|
(588)
|
291
|
(298)
|
|
Credit derivatives
|
193
|
(456)
|
539
|
(342)
|
|
Equity derivatives
|
2,730
|
(4,099)
|
1,711
|
(2,528)
|
|
Commodity derivatives
|
17
|
(17)
|
9
|
(9)
|
|
Corporate debt
|
516
|
-
|
521
|
-
|
|
Reverse repurchase and repurchase agreements
|
-
|
(175)
|
-
|
(167)
|
|
Non-asset backed loans
|
8,271
|
-
|
6,811
|
-
|
|
Asset backed securities
|
740
|
-
|
756
|
-
|
|
Equity cash products
|
1,146
|
-
|
1,228
|
-
|
|
Private equity investments
|
880
|
(15)
|
899
|
(19)
|
|
Other1
|
934
|
(179)
|
991
|
(176)
|
|
Total
|
20,235
|
(9,301)
|
14,361
|
(4,351)
|
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, issued debt, commercial paper,
government sponsored debt and investment property.
|
Assets and liabilities reclassified between Level 1 and Level
2
During
the period, there were no material transfers between Level 1 and
Level 2 (period ended December 2019: no material transfers between
Level 1 and Level 2).
Level 3 movement analysis.
The following table
summarises the movements in the balances of Level 3 assets and
liabilities during the period. The table shows gains and losses and
includes amounts for all financial assets and liabilities that are
held at fair value transferred to and from Level 3 during the
period. Transfers have been reflected as if they had taken place at
the beginning of the
year
Asset
and liability moves between Level 2 and Level 3 are primarily due
to i) an increase or decrease in observable market activity related
to an input or ii) a change in the significance of the unobservable
input, with assets and liabilities classified as Level 3 if an
unobservable input is deemed significant.
|
Level 3 movement analysis
|
|
|
As at 01.01.20
|
Purchases
|
Sales
|
Issues
|
Settle-
ments
|
Total gains and losses in the period recognised in the income
statement
|
Total gains or losses recognised in OCI
|
Transfers
|
As at 30.06.20
|
|
Trading income
|
Other income
|
In
|
Out
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Corporate debt
|
120
|
25
|
-
|
-
|
-
|
(26)
|
-
|
-
|
4
|
(17)
|
106
|
|
Non-asset backed loans
|
974
|
1,926
|
(740)
|
-
|
(4)
|
(111)
|
-
|
-
|
97
|
(320)
|
1,822
|
|
Asset backed securities
|
656
|
249
|
(224)
|
-
|
(76)
|
(12)
|
-
|
-
|
41
|
(11)
|
623
|
|
Equity cash products
|
392
|
2
|
(4)
|
-
|
-
|
(67)
|
-
|
-
|
28
|
(4)
|
347
|
|
Other
|
122
|
48
|
-
|
-
|
-
|
2
|
-
|
-
|
8
|
-
|
180
|
|
Trading portfolio assets
|
2,264
|
2,250
|
(968)
|
-
|
(80)
|
(214)
|
-
|
-
|
178
|
(352)
|
3,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
5,494
|
1,050
|
(270)
|
-
|
(410)
|
381
|
-
|
-
|
-
|
(58)
|
6,187
|
|
Equity cash products
|
835
|
14
|
-
|
-
|
-
|
(22)
|
(28)
|
-
|
-
|
-
|
799
|
|
Private equity investments
|
900
|
19
|
(6)
|
-
|
(2)
|
2
|
(44)
|
-
|
23
|
(12)
|
880
|
|
Other
|
1,271
|
1,870
|
(2,017)
|
-
|
(18)
|
(8)
|
64
|
-
|
24
|
-
|
1,186
|
|
Financial assets at fair value through the income
statement
|
8,500
|
2,953
|
(2,293)
|
-
|
(430)
|
353
|
(8)
|
-
|
47
|
(70)
|
9,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
343
|
79
|
-
|
-
|
(157)
|
-
|
-
|
(3)
|
-
|
-
|
262
|
|
Asset backed securities
|
86
|
-
|
(1)
|
-
|
-
|
1
|
-
|
(1)
|
-
|
-
|
85
|
|
Assets at fair value through other comprehensive
income
|
429
|
79
|
(1)
|
-
|
(157)
|
1
|
-
|
(4)
|
-
|
-
|
347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
13
|
-
|
(1)
|
-
|
-
|
-
|
(2)
|
-
|
2
|
(2)
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued debt
|
(146)
|
-
|
-
|
(3)
|
-
|
-
|
-
|
-
|
(22)
|
14
|
(157)
|
|
Other
|
(216)
|
-
|
1
|
-
|
-
|
(10)
|
2
|
-
|
-
|
11
|
(212)
|
|
Financial liabilities designated at fair value
|
(362)
|
-
|
1
|
(3)
|
-
|
(10)
|
2
|
-
|
(22)
|
25
|
(369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
(206)
|
18
|
-
|
-
|
10
|
268
|
1
|
-
|
300
|
(10)
|
381
|
|
Foreign exchange derivatives
|
(7)
|
-
|
-
|
-
|
(12)
|
89
|
-
|
-
|
5
|
(8)
|
67
|
|
Credit derivatives
|
198
|
(258)
|
11
|
-
|
(376)
|
151
|
1
|
-
|
2
|
8
|
(263)
|
|
Equity derivatives
|
(819)
|
(448)
|
(1)
|
-
|
17
|
(90)
|
-
|
-
|
(5)
|
(23)
|
(1,369)
|
|
Commodity derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Net derivative financial
instruments1
|
(834)
|
(688)
|
10
|
-
|
(361)
|
418
|
2
|
-
|
302
|
(33)
|
(1,184)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
10,010
|
4,594
|
(3,252)
|
(3)
|
(1,028)
|
548
|
(6)
|
(4)
|
507
|
(432)
|
10,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £7,748m and
derivative financial liabilities were
£8,932m.
|
|
Level 3 movement analysis
|
|
|
As at 01.01.19
|
Purchases
|
Sales
|
Issues
|
Settle-
ments
|
Total gains and losses in the period recognised in the income
statement
|
Transfers
|
As at 30.06.19
|
|
Trading income
|
Other income
|
In
|
Out
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Government and government sponsored debt
|
14
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
(14)
|
2
|
|
Corporate debt
|
388
|
70
|
(24)
|
-
|
(31)
|
14
|
-
|
32
|
(74)
|
375
|
|
Non-asset backed loans
|
2,263
|
1,235
|
(1,260)
|
-
|
(19)
|
12
|
-
|
19
|
(90)
|
2,160
|
|
Asset backed securities
|
664
|
81
|
(127)
|
-
|
-
|
5
|
-
|
16
|
(29)
|
610
|
|
Equity cash products
|
136
|
48
|
(13)
|
-
|
-
|
(2)
|
-
|
116
|
(20)
|
265
|
|
Other
|
148
|
-
|
-
|
-
|
(1)
|
(10)
|
-
|
-
|
(1)
|
136
|
|
Trading portfolio assets
|
3,613
|
1,436
|
(1,424)
|
-
|
(51)
|
19
|
-
|
183
|
(228)
|
3,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
5,688
|
2
|
-
|
-
|
(295)
|
248
|
-
|
-
|
(9)
|
5,634
|
|
Equity cash products
|
559
|
9
|
-
|
-
|
(10)
|
4
|
178
|
-
|
-
|
740
|
|
Private equity investments
|
1,071
|
21
|
(73)
|
-
|
(1)
|
-
|
43
|
-
|
(148)
|
913
|
|
Other
|
2,064
|
2,334
|
(2,619)
|
-
|
(2)
|
17
|
9
|
24
|
(840)
|
987
|
|
Financial assets at fair value through the income
statement
|
9,382
|
2,366
|
(2,692)
|
-
|
(308)
|
269
|
230
|
24
|
(997)
|
8,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
353
|
48
|
-
|
-
|
(55)
|
-
|
-
|
-
|
(218)
|
128
|
|
Asset backed securities
|
-
|
40
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
40
|
|
Equity cash products
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
|
Financial assets at fair value through other comprehensive
income
|
355
|
88
|
-
|
-
|
(55)
|
-
|
-
|
-
|
(218)
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
9
|
-
|
-
|
-
|
-
|
-
|
(1)
|
-
|
-
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(3)
|
-
|
-
|
-
|
-
|
2
|
-
|
(5)
|
-
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit, commercial paper and other money market
instruments
|
(10)
|
-
|
-
|
-
|
1
|
-
|
(1)
|
(11)
|
-
|
(21)
|
|
Issued debt
|
(251)
|
-
|
-
|
(16)
|
1
|
5
|
-
|
(3)
|
1
|
(263)
|
|
Other
|
(19)
|
-
|
-
|
-
|
-
|
-
|
(1)
|
-
|
-
|
(20)
|
|
Financial liabilities designated at fair value
|
(280)
|
-
|
-
|
(16)
|
2
|
5
|
(2)
|
(14)
|
1
|
(304)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
22
|
(3)
|
-
|
-
|
76
|
116
|
-
|
(107)
|
145
|
249
|
|
Foreign exchange derivatives
|
7
|
-
|
-
|
-
|
(12)
|
(41)
|
-
|
(51)
|
17
|
(80)
|
|
Credit derivatives
|
1,050
|
(63)
|
4
|
-
|
(3)
|
86
|
-
|
2
|
3
|
1,079
|
|
Equity derivatives
|
(607)
|
(122)
|
(5)
|
-
|
23
|
89
|
-
|
(16)
|
292
|
(346)
|
|
Net derivative financial
instruments1
|
472
|
(188)
|
(1)
|
-
|
84
|
250
|
-
|
(172)
|
457
|
902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
13,548
|
3,702
|
(4,117)
|
(16)
|
(328)
|
545
|
227
|
16
|
(985)
|
12,592
|
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £5,701m and
derivative financial liabilities were £4,799m.
|
Unrealised gains and losses on Level 3 financial assets and
liabilities
The
following table discloses the unrealised gains and losses
recognised in the period arising on Level 3 financial assets and
liabilities held at the period end.
|
|
Half year ended 30.06.20
|
Half year ended 30.06.19
|
|
|
Income statement
|
Other
compre-
hensive
income
|
Total
|
Income statement
|
Other
compre-
hensive
income
|
Total
|
|
|
Trading income
|
Other income
|
Trading income
|
Other income
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Trading portfolio assets
|
(177)
|
-
|
-
|
(177)
|
21
|
-
|
-
|
21
|
|
Financial assets at fair value through the income
statement
|
397
|
(53)
|
-
|
344
|
253
|
205
|
-
|
458
|
|
Financial assets at fair value through other comprehensive
income
|
-
|
-
|
(2)
|
(2)
|
-
|
-
|
-
|
-
|
|
Investment properties
|
-
|
(2)
|
-
|
(2)
|
-
|
(1)
|
-
|
(1)
|
|
Trading portfolio liabilities
|
-
|
-
|
-
|
-
|
2
|
-
|
-
|
2
|
|
Financial liabilities designated at fair value
|
(16)
|
(1)
|
-
|
(17)
|
6
|
-
|
-
|
6
|
|
Net derivative financial instruments
|
248
|
-
|
-
|
248
|
212
|
-
|
-
|
212
|
|
Total
|
452
|
(56)
|
(2)
|
394
|
494
|
204
|
-
|
698
|
Valuation techniques and sensitivity analysis
Sensitivity
analysis is performed on products with significant unobservable
inputs (Level 3) to generate a range of reasonably possible
alternative valuations. The sensitivity methodologies applied take
account of the nature of valuation techniques used, as well as the
availability and reliability of observable proxy and historical
data and the impact of using alternative models.
Current
year valuation and sensitivity methodologies are consistent with
those described within Note 17, Fair value of financial
instruments in the
Barclays PLC Annual Report 2019.
|
Sensitivity analysis of valuations using unobservable
inputs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
Favourable changes
|
Unfavourable changes
|
Favourable changes
|
Unfavourable changes
|
|
|
Income statement
|
Equity
|
Income statement
|
Equity
|
Income statement
|
Equity
|
Income statement
|
Equity
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Interest rate derivatives
|
138
|
-
|
(255)
|
-
|
44
|
-
|
(127)
|
-
|
|
Foreign exchange derivatives
|
7
|
-
|
(11)
|
-
|
5
|
-
|
(7)
|
-
|
|
Credit derivatives
|
127
|
-
|
(109)
|
-
|
73
|
-
|
(47)
|
-
|
|
Equity derivatives
|
151
|
-
|
(158)
|
-
|
114
|
-
|
(119)
|
-
|
|
Commodity derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Corporate debt
|
23
|
-
|
(23)
|
-
|
11
|
-
|
(16)
|
-
|
|
Non-asset backed loans
|
253
|
4
|
(558)
|
(4)
|
214
|
8
|
(492)
|
(8)
|
|
Equity cash products
|
164
|
-
|
(206)
|
-
|
123
|
-
|
(175)
|
-
|
|
Private equity investments
|
236
|
-
|
(269)
|
-
|
205
|
-
|
(235)
|
-
|
|
Other1
|
2
|
-
|
(2)
|
-
|
1
|
-
|
(1)
|
-
|
|
Total
|
1,101
|
4
|
(1,591)
|
(4)
|
790
|
8
|
(1,219)
|
(8)
|
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £5,701m and
derivative financial liabilities were
£4,799m.
|
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, issued debt, commercial paper,
government sponsored debt and investment property.
|
The
effect of stressing unobservable inputs to a range of reasonably
possible alternatives, alongside considering the impact of using
alternative models, would be to increase fair values by up to
£1,105m (December 2019: £798m) or to decrease fair values
by up to £1,595m (December 2019: £1,227m) with
substantially all the potential effect impacting profit and loss
rather than reserves.
Significant unobservable inputs
The
valuation techniques and significant unobservable inputs for assets
and liabilities recognised at fair value and classified as Level 3
are consistent with Note 17, Fair value of financial instruments in
the Barclays PLC Annual Report 2019. The description of the
significant unobservable inputs and the sensitivity of fair value
measurement of the instruments categorised as Level 3 assets or
liabilities to increases in significant unobservable inputs is also
found in Note 17, Fair value of financial instruments of the
Barclays PLC Annual Report 2019.
Fair value adjustments
Key
balance sheet valuation adjustments are quantified
below:
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Exit price adjustments derived from market bid-offer
spreads
|
(575)
|
(429)
|
|
Uncollateralised derivative funding
|
(181)
|
(57)
|
|
Derivative credit valuation adjustments
|
(378)
|
(135)
|
|
Derivative debit valuation adjustments
|
149
|
155
|
|
●
|
Exit
price adjustments derived from market bid-offer spreads increased
by £146m to £575m as a result of movements in market bid
offer spreads
|
|
●
|
Uncollateralised
derivative funding increased by £124m to £181m as a
result of widening input funding spreads and an update to
methodology
|
|
●
|
Derivative credit
valuation adjustments increased by £243m to £378m as a
result of widening input counterparty credit spreads
|
|
●
|
Derivative debit
valuation adjustments decreased by £6m to £149m as a
result of widening input Barclays Bank PLC credit spreads and an
update to methodology
|
Portfolio exemption
The
Group uses the portfolio exemption in IFRS 13, Fair Value
Measurement to measure the fair value of groups of financial assets
and liabilities. Instruments are measured using the price that
would be received to sell a net long position (i.e. an asset) for a
particular risk exposure or to transfer a net short position (i.e.
a liability) for a particular risk exposure in an orderly
transaction between market participants at the balance sheet date
under current market conditions. Accordingly, the Group measures
the fair value of the group of financial assets and liabilities
consistently with how market participants would price the net risk
exposure at the measurement date.
Unrecognised gains as a result of the use of valuation models using
unobservable inputs
The
amount that has yet to be recognised in income that relates to the
difference between the transaction price (the fair value at initial
recognition) and the amount that would have arisen had valuation
models using unobservable inputs been used on initial recognition,
less amounts subsequently recognised, is £114m (December 2019:
£113m) for financial instruments measured at fair value and
£254m (December 2019: £255m) for financial instruments
carried at amortised cost. There are additions of £12m
(December 2019: £41m) and amortisation and releases of
£11m (December 2019: £69m) for financial instruments
measured at fair value and additions of £6m (December 2019:
£7m) and amortisation and releases of £7m (December 2019:
£14m) for financial instruments carried at amortised
cost.
Third party credit enhancements
Structured
and brokered certificates of deposit issued by the Group are
insured up to $250,000 per depositor by the Federal Deposit
Insurance Corporation (FDIC) in the United States. The FDIC is
funded by premiums that Barclays and other banks pay for deposit
insurance coverage. The carrying value of these issued certificates
of deposit that are designated under the IFRS 9 fair value option
includes this third party credit enhancement. The on balance sheet
value of these brokered certificates of deposit amounted to
£3,162m (December 2019: £3,218m).
Comparison of carrying amounts and fair values for assets and
liabilities not held at fair value
Valuation
methodologies employed in calculating the fair value of financial
assets and liabilities measured at amortised cost are consistent
with the Barclays PLC Annual Report 2019 disclosure.
The
following table summarises the fair value of financial assets and
liabilities measured at amortised cost on the Group’s balance
sheet.
|
|
As at 30.06.20
|
As at 31.12.19
|
|
|
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
|
Financial assets
|
£m
|
£m
|
£m
|
£m
|
|
Loans and advances at amortised cost
|
354,912
|
353,369
|
339,115
|
337,510
|
|
Reverse repurchase agreements and other similar secured
lending
|
22,224
|
22,224
|
3,379
|
3,379
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Deposits at amortised cost
|
(466,913)
|
(466,986)
|
(415,787)
|
(415,807)
|
|
Repurchase agreements and other similar secured
borrowing
|
(19,144)
|
(19,144)
|
(14,517)
|
(14,517)
|
|
Debt securities in issue
|
(103,970)
|
(104,576)
|
(76,369)
|
(78,512)
|
|
Subordinated liabilities
|
(19,886)
|
(21,422)
|
(18,156)
|
(18,863)
|
|
12. Loans and advances and deposits at amortised cost
|
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Loans and advances at amortised cost to banks
|
10,013
|
9,624
|
|
Loans and advances at amortised cost to customers
|
320,582
|
311,739
|
|
Debt securities at amortised cost
|
24,317
|
17,752
|
|
Total loans and advances at amortised cost
|
354,912
|
339,115
|
|
|
|
|
|
Deposits at amortised cost from banks
|
17,390
|
15,402
|
|
Deposits at amortised cost from customers
|
449,523
|
400,385
|
|
Total deposits at amortised cost
|
466,913
|
415,787
|
|
13. Subordinated liabilities
|
|
|
Half year ended
|
Year ended
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
18,156
|
20,559
|
|
Issuances
|
580
|
1,352
|
|
Redemptions
|
(296)
|
(3,248)
|
|
Other
|
1,446
|
(507)
|
|
Closing balance
|
19,886
|
18,156
|
Issuances
of £580m comprises £500m 3.75% Fixed Rate Resetting
Subordinated Callable Notes issued externally by Barclays PLC and
£80m USD Floating Rate Notes issued externally by a Barclays
subsidiary.
Redemptions
of £296m comprises £266m USD Floating Rate Notes and
£30m USD Fixed Rate Notes issued externally by Barclays
subsidiaries.
Other
movements predominantly include foreign exchange movements and fair
value hedge adjustments.
|
14. Provisions
|
|
|
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
PPI redress
|
774
|
1,155
|
|
Other customer redress
|
372
|
420
|
|
Legal, competition and regulatory matters
|
269
|
376
|
|
Redundancy and restructuring
|
104
|
143
|
|
Undrawn contractually committed facilities and
guarantees
|
741
|
322
|
|
Onerous contracts
|
23
|
42
|
|
Sundry provisions
|
329
|
306
|
|
Total
|
2,612
|
2,764
|
PPI redress
As at
30 June 2020, Barclays had recognised cumulative provisions
totalling £11bn (December 2019: £11bn). Utilisation of
the cumulative provisions to date is £10.2bn (December 2019:
£9.8bn), leaving a residual provision of £0.8bn (December
2019: £1.2bn). This represents Barclays best estimate as at 30
June 2020 based on the information available.
The
current provision reflects the estimated cost of PPI redress
attributable to claims and information requests from customers,
Claims Management Companies and the Official Receiver in relation
to bankrupt individuals.
Q3 2019
saw an exceptional level of claims and information requests
received in advance of the complaint deadline of 29 August 2019.
All the items outstanding at Q3 2019, greater than two million in
total, have now been processed into Barclays’ systems. 70% of
these have been resolved including invalid items.
It is
possible that the eventual cumulative provision will differ from
the current estimate. The table below shows the predicted level of
valid claims and the impact of a 1% increase or decrease in the
percentage of valid volumes on the outstanding claims at 30 June
2020:
|
Validity
assumptions1
|
Total volumes assumed
valid2
|
Sensitivity on the remaining volumes
|
|
%
|
£m
|
|
Claims received
|
21%
|
1% = £3m
|
|
Information requests received
|
7%
|
1% = £2m
|
Final
agreement has yet to be reached in relation to claims received from
the Official Receiver, however we do not expect any further
exposure from these claims to be material in the context of the
total provision.
|
1
|
Total valid claims and information requests received, excluding
those for which no PPI policy exists, claims from the Official
Receiver in relation to bankrupt individuals and responses to
proactive mailing. The sensitivity has been calculated to show the
impact a 1% increase or decrease in the volume of unresolved valid
claims would have on the provision level.
|
|
2
|
Based on the observed data from September 2019 to June
2020.
|
As at
30 June 2020, the Group’s IAS 19 pension surplus across all
schemes was £2.5bn (December 2019: £1.8bn). The UK
Retirement Fund (UKRF), which is the Group’s main scheme, had
an IAS 19 pension surplus of £2.8bn (December 2019:
£2.1bn). The movement for the UKRF was driven by higher than
assumed asset returns and lower than expected long-term price
inflation, partially offset by a decrease in the discount
rate.
UKRF funding valuations
The
last triennial actuarial valuation of the UKRF had an effective
date of 30 September 2019 and was completed in February 2020. This
valuation showed a funding deficit of £2.3bn and a funding
level of 94.0%. A revised deficit recovery plan was agreed with
deficit reduction contributions required from Barclays Bank PLC of
£500m in 2019, £500m in 2020, £700m in 2021,
£294m in 2022 and £286m in 2023. The deficit reduction
contributions are in addition to the regular contributions to meet
the Group’s share of the cost of benefits accruing over each
year.
On 12
June 2020, Barclays Bank PLC paid the £500m deficit reduction
contribution agreed for 2020 and at the same time the UKRF
subscribed for non-transferrable listed senior fixed rate notes for
£750m, backed by UK gilts (the Senior Notes). These Senior
Notes entitle the UKRF to semi-annual coupon payments for five
years, and full repayment in cash in three equal tranches in 2023,
2024, and at final maturity in 2025. The Senior Notes were issued
by Heron Issuer Number 2 Limited (Heron 2), an entity that is
consolidated within the Group under IFRS 10. As a result of the
investment in Senior Notes, the regulatory capital impact of the
£500m deficit reduction contribution paid on 12 June 2020
takes effect in 2023, 2024 and 2025 on maturity of the notes. The
£250m additional investment by the UKRF in the Senior Notes
has a positive capital impact in 2020 which is reduced equally in
2023, 2024 and 2025 on the maturity of the notes. Heron 2 acquired
a total of £750m of gilts from Barclays Bank PLC for cash to
support payments on the Senior Notes.
The
next triennial actuarial valuation of the UKRF is due to be
completed in 2023 with an effective date of 30 September
2022.
16.
Called up share capital
Called
up share capital comprised 17,345m (December 2019: 17,322m)
ordinary shares of 25p each. The increase was due to the issuance
of shares under employee share schemes.
|
|
Ordinary share capital
|
Share premium
|
Total share capital and share premium
|
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
|
Opening balance as at 1 January
|
4,331
|
263
|
4,594
|
|
Movement
|
5
|
21
|
26
|
|
Closing balance
|
4,336
|
284
|
4,620
|
|
17. Other equity instruments
|
|
|
Half year ended
|
Year ended
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
10,871
|
9,632
|
|
Issuances
|
-
|
3,500
|
|
Redemptions
|
-
|
(2,262)
|
|
Other
|
-
|
1
|
|
Closing balance
|
10,871
|
10,871
|
Other equity instruments of £10,871m (December 2019: £10,871m) include AT1 securities issued by Barclays
PLC. There have been no issuances or redemptions in the
period.
The AT1 securities are perpetual securities with no fixed maturity
and are structured to qualify as AT1 instruments under prevailing
capital rules applicable as at the relevant issue date. AT1
securities are undated and are redeemable, at the option of
Barclays PLC, in whole at the initial call date, or on any fifth
anniversary after the initial call date. In addition, the AT1
securities are redeemable, at the option of Barclays PLC, in whole
in the event of certain changes in the tax or regulatory treatment
of the securities. Any redemptions require the prior consent of the
PRA.
All
Barclays PLC AT1 securities will be converted into ordinary shares
of Barclays PLC, at a pre-determined price, should the fully loaded
CET1 ratio of the Group fall below 7%.
|
18. Other reserves
|
|
|
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Currency translation reserve
|
4,564
|
3,344
|
|
Fair value through other comprehensive income reserve
|
(565)
|
(187)
|
|
Cash flow hedging reserve
|
1,914
|
1,002
|
|
Own credit reserve
|
123
|
(373)
|
|
Other reserves and treasury shares
|
960
|
974
|
|
Total
|
6,996
|
4,760
|
Currency translation reserve
The
currency translation reserve represents the cumulative gains and
losses on the retranslation of the Group’s net investment in
foreign operations, net of the effects of hedging.
As at
30 June 2020, there was a credit balance of £4,564m (December
2019: £3,344m credit) in the currency translation reserve. The
£1,220m credit movement principally reflects the strengthening
of period end USD exchange rate against GBP.
Fair value through other comprehensive income reserve
The
fair value through other comprehensive income reserve represents
the unrealised change in the fair value through other comprehensive
income investments since initial recognition.
As at
30 June 2020, there was a debit balance of £565m (December
2019: £187m debit) in the fair value through other
comprehensive income reserve. The loss of £378m is principally
driven by a loss of £515m due to a decrease in the Absa Group
Limited share price and £150m of net gains transferred to the
income statement. This is partially offset by a gain of £307m
from the increase in fair value of bonds due to decreasing bond
yields.
Cash flow hedging reserve
The
cash flow hedging reserve represents the cumulative gains and
losses on effective cash flow hedging instruments that will be
recycled to the income statement when the hedged transactions
affect profit or loss.
As at
30 June 2020, there was a credit balance of £1,914m (December
2019: £1,002m credit) in the cash flow hedging reserve. The
increase of £912m principally reflects a £1,458m increase
in the fair value of interest rate swaps held for hedging purposes
as major interest rate forward curves decreased. This is partially
offset by £197m of gains transferred to the income statement
and a tax charge of £358m.
Own credit reserve
The own
credit reserve reflects the cumulative own credit gains and losses
on financial liabilities at fair value. Amounts in the own credit
reserve are not recycled to profit or loss in future
periods.
As at
30 June 2020, there was a credit balance of £123m (December
2019: £373m debit) in the own credit reserve. The movement of
£496m principally reflects a £845m gain from the widening
of Barclays’ funding spreads. This is partially offset by
other activity of £209m and a tax charge of
£144m.
Other reserves and treasury shares
Other reserves relate to redeemed ordinary and preference shares
issued by the Group. Treasury shares relate to Barclays PLC shares
held principally in relation to the Group’s various share
schemes.
As at 30 June 2020, there was a credit balance of
£960m (December 2019:
£974m credit) in other
reserves and treasury shares. The decrease of
£14m is due to an increase
in treasury shares held in relation to employee share
schemes.
|
19. Contingent liabilities and commitments
|
|
|
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
Contingent liabilities
|
£m
|
£m
|
|
Guarantees and letters of credit pledged as collateral
security
|
16,225
|
17,606
|
|
Performance guarantees, acceptances and endorsements
|
6,739
|
6,921
|
|
Total
|
22,964
|
24,527
|
|
|
|
|
|
Commitments
|
|
|
|
Documentary credits and other short-term trade related
transactions
|
1,162
|
1,291
|
|
Standby facilities, credit lines and other commitments
|
332,969
|
333,164
|
|
Total
|
334,131
|
334,455
|
In
addition to the above, Note 20, Legal, competition and regulatory
matters details out further contingent liabilities where it is not
practicable to disclose an estimate of the potential financial
effect on Barclays.
20.
Legal, competition and regulatory matters
Members
of the Group face legal, competition and regulatory challenges,
many of which are beyond our control. The extent of the impact of
these matters cannot always be predicted but may materially impact
our operations, financial results, condition and prospects. Matters
arising from a set of similar circumstances can give rise to either
a contingent liability or a provision, or both, depending on the
relevant facts and circumstances.
The
recognition of provisions in relation to such matters involves
critical accounting estimates and judgments in accordance with the
relevant accounting policies as described in Note 14, Provisions.
We have not disclosed an estimate of the potential financial impact
or effect on the Group of contingent liabilities where it is not
currently practicable to do so. Various matters detailed in this
note seek damages of an unspecified amount. While certain matters
specify the damages claimed, such claimed amounts do not
necessarily reflect the Group’s potential financial exposure
in respect of those matters.
Matters
are ordered under headings corresponding to the financial
statements in which they are disclosed.
1.
Barclays
PLC and Barclays Bank PLC
Investigations into certain advisory services agreements and other
matters and civil action
FCA proceedings
In
2008, Barclays Bank PLC and Qatar Holdings LLC entered into two
advisory service agreements (the Agreements). The Financial Conduct
Authority (FCA) conducted an investigation into whether the
Agreements may have related to Barclays PLC’s capital
raisings in June and November 2008 (the Capital Raisings) and
therefore should have been disclosed in the announcements or public
documents relating to the Capital Raisings. In 2013, the FCA issued
warning notices (the Notices) finding that Barclays PLC and
Barclays Bank PLC acted recklessly and in breach of certain
disclosure-related listing rules, and that Barclays PLC was also in
breach of Listing Principle 3. The financial penalty provided in
the Notices is £50m. Barclays PLC and Barclays Bank PLC
continue to contest the findings. Following the conclusion of the
Serious Fraud Office (SFO) proceedings against certain former
Barclays executives resulting in their acquittals, the FCA
proceedings, which were stayed, have resumed. All charges brought
by the SFO against Barclays PLC and Barclays Bank PLC in relation
to the Agreements were dismissed in 2018.
Civil action
PCP
Capital Partners LLP and PCP International Finance Limited (PCP)
are seeking damages of approximately £1.6bn from Barclays Bank
PLC for fraudulent misrepresentation and deceit, arising from
alleged statements made by Barclays Bank PLC to PCP in relation to
the terms on which securities were to be issued to potential
investors, allegedly including PCP, in the November 2008 capital
raising. Barclays Bank PLC is defending the claim and trial
commenced in June 2020.
Investigations into LIBOR and other benchmarks and related civil
actions
Regulators
and law enforcement agencies, including certain competition
authorities, from a number of governments have conducted
investigations relating to Barclays Bank PLC’s involvement in
allegedly manipulating certain financial benchmarks, such as LIBOR.
The SFO has closed its investigation with no action to be taken
against the Group. Various individuals and corporates in a range of
jurisdictions have threatened or brought civil actions against the
Group and other banks in relation to the alleged manipulation of
LIBOR and/or other benchmarks. Certain actions remain
pending.
USD LIBOR civil actions
The
majority of the USD LIBOR cases, which have been filed in various
US jurisdictions, have been consolidated for pre-trial purposes in
the US District Court in the Southern District of New York (SDNY).
The complaints are substantially similar and allege, among other
things, that Barclays PLC, Barclays Bank PLC, Barclays Capital Inc.
(BCI) and other financial institutions individually and
collectively violated provisions of the US Sherman Antitrust Act
(Antitrust Act), the US Commodity Exchange Act (CEA), the US
Racketeer Influenced and Corrupt Organizations Act (RICO), the
Securities Exchange Act of 1934 and various state laws by
manipulating USD LIBOR rates.
Putative
class actions and individual actions seek unspecified damages with
the exception of three lawsuits, in which the plaintiffs are
seeking a combined total of approximately $900m in actual damages
and additional punitive damages against all defendants, including
Barclays Bank PLC. Some of the lawsuits also seek trebling of
damages under the Antitrust Act and RICO. Barclays has previously
settled certain claims. Two of the class action settlements where
Barclays has paid $20m and $7.1m, respectively, remain subject to
final court approval and/or the right of class members to opt out
of the settlement to file their own claims.
Sterling LIBOR civil actions
In
2016, two putative class actions filed in the SDNY against Barclays
Bank PLC, BCI and other Sterling LIBOR panel banks alleging, among
other things, that the defendants manipulated the Sterling LIBOR
rate in violation of the Antitrust Act, CEA and RICO, were
consolidated. The defendants’ motion to dismiss the claims
was granted in December 2018. The plaintiffs have appealed the
dismissal.
Japanese Yen LIBOR civil actions
In
2012, a putative class action was filed in the SDNY against
Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a
lead plaintiff involved in exchange-traded derivatives and members
of the Japanese Bankers Association’s Euroyen Tokyo Interbank
Offered Rate (Euroyen TIBOR) panel. The complaint alleges, among
other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates
and breaches of the CEA and the Antitrust Act. In 2014, the court
dismissed the plaintiff’s antitrust claims in full, but the
plaintiff’s CEA claims remain pending.
In
2015, a second putative class action, making similar allegations to
the above class action, was filed in the SDNY against Barclays PLC,
Barclays Bank PLC and BCI. In 2017, this action was dismissed in
full and the plaintiffs appealed the dismissal. The appellate court
reversed the dismissal and the matter has been remanded to the
lower court.
SIBOR/SOR civil action
In
2016, a putative class action was filed in the SDNY against
Barclays PLC, Barclays Bank PLC, BCI and other defendants, alleging
manipulation of the Singapore Interbank Offered Rate (SIBOR) and
Singapore Swap Offer Rate (SOR). In October 2018, the court
dismissed all claims against Barclays PLC, Barclays Bank PLC and
BCI. The plaintiffs have appealed the dismissal.
ICE LIBOR civil actions
In
2019, several putative class actions have been filed in the SDNY
against Barclays PLC, Barclays Bank PLC, BCI, other financial
institution defendants and Intercontinental Exchange Inc. and
certain of its affiliates (ICE), asserting antitrust claims that
defendants manipulated USD LIBOR through defendants’
submissions to ICE. These actions have been consolidated. The
defendants’ motion to dismiss was granted in March 2020. The
plaintiffs have appealed the dismissal.
Non-US benchmarks civil actions
Legal
proceedings (which include the claims referred to below in
‘Local authority civil actions concerning LIBOR’) have
been brought or threatened against Barclays Bank PLC (and, in
certain cases, Barclays Bank UK PLC) in the UK in connection with
alleged manipulation of LIBOR, EURIBOR and other benchmarks.
Proceedings have also been brought in a number of other
jurisdictions in Europe and Israel. Additional proceedings in other
jurisdictions may be brought in the future.
Foreign Exchange investigations and related civil
actions
In
2015, the Group reached settlements totalling approximately $2.38bn
with various US federal and state authorities and the FCA in
relation to investigations into certain sales and trading practices
in the Foreign Exchange market. Under the related plea agreement
with the US Department of Justice (DoJ), which received final court
approval in January 2017, the Group agreed to a term of probation
of three years, which expired in January 2020. The Group also
continues to provide relevant information to certain
authorities.
The
European Commission is one of a number of authorities still
conducting an investigation into certain trading practices in
Foreign Exchange markets. The European Commission announced two
settlements in May 2019 and the Group paid penalties totalling
approximately €210m. In June 2019, the Swiss Competition
Commission announced two settlements and the Group paid penalties
totalling approximately CHF 27m. The financial impact of the
ongoing matters is not expected to be material to the Group’s
operating results, cash flows or financial position.
A
number of individuals and corporates in a range of jurisdictions
have also threatened or brought civil actions against the Group and
other banks in relation to alleged manipulation of Foreign Exchange
markets, and may do so in the future. Certain actions remain
pending.
FX opt out civil action
In
2018, Barclays Bank PLC and BCI settled a consolidated action filed
in the SDNY, alleging manipulation of Foreign Exchange markets
(Consolidated FX Action), for a total amount of $384m. Also in
2018, a group of plaintiffs who opted out of the Consolidated FX
Action filed a complaint in the SDNY against Barclays PLC, Barclays
Bank PLC, BCI and other defendants. Some of the plaintiff’s
claims were dismissed in May 2020.
Retail basis civil action
In
2015, a putative class action was filed against several
international banks, including Barclays PLC and BCI, on behalf of a
proposed class of individuals who exchanged currencies on a retail
basis at bank branches (Retail Basis Claims). The SDNY has ruled
that the Retail Basis Claims are not covered by the settlement
agreement in the Consolidated FX Action. The Court subsequently
dismissed all Retail Basis Claims against the Group and all other
defendants. The plaintiffs have filed an amended
complaint.
State law FX civil action
In
2017, the SDNY dismissed consolidated putative class actions
brought under federal and various state laws on behalf of proposed
classes of (i) stockholders of Exchange Traded Funds and others who
purportedly were indirect investors in FX instruments, and (ii)
investors who traded FX instruments through FX dealers or brokers
not alleged to have manipulated Foreign Exchange Rates. Barclays
Bank PLC and BCI have settled the claim, which is subject to court
approval.
Non-US FX civil actions
In
addition to the actions described above, legal proceedings have
been brought or are threatened against Barclays PLC, Barclays Bank
PLC, BCI and Barclays Execution Services Limited (BX) in connection
with alleged manipulation of Foreign Exchange in the UK, a number
of other jurisdictions in Europe, Israel and Australia and
additional proceedings may be brought in the future.
Metals investigations and related civil actions
Barclays
Bank PLC previously provided information to the DoJ, the US
Commodity Futures Trading Commission and other authorities in
connection with investigations into metals and metals-based
financial instruments.
A
number of US civil complaints, each on behalf of a proposed class
of plaintiffs, have been consolidated and transferred to the SDNY.
The complaints allege that Barclays Bank PLC and other members of
The London Gold Market Fixing Ltd. manipulated the prices of gold
and gold derivative contracts in violation of US antitrust and
other federal laws. This consolidated putative class action remains
pending. A separate US civil complaint by a proposed class of
plaintiffs against a number of banks, including Barclays Bank PLC,
BCI and BX, alleging manipulation of the price of silver in
violation of the CEA, the Antitrust Act and state antitrust and
consumer protection laws, has been dismissed as against the
Barclays entities. The plaintiffs have the option to seek the
court’s permission to appeal.
Civil
actions have also been filed in Canadian courts against Barclays
PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and BCI on
behalf of proposed classes of plaintiffs alleging manipulation of
gold and silver prices.
US residential mortgage related civil actions
There
are various pending civil actions relating to US Residential
Mortgage-Backed Securities (RMBS), including four actions arising
from unresolved repurchase requests submitted by Trustees for
certain RMBS, alleging breaches of various loan-level
representations and warranties (R&Ws) made by Barclays Bank PLC
and/or a subsidiary acquired in 2007 (the Acquired Subsidiary). The
unresolved repurchase requests received as at 31 December 2019 had
an original unpaid principal balance of approximately $2.1bn. The
Trustees have also alleged that the relevant R&Ws may have been
breached with respect to a greater (but unspecified) amount of
loans than previously stated in the unresolved repurchase
requests.
These
repurchase actions are ongoing. In one repurchase action, the New
York Court of Appeals held that claims related to certain R&Ws
are time-barred. Barclays Bank PLC has reached a settlement to
resolve two of the repurchase actions, which is subject to final
court approval. The financial impact of the settlement is not
expected to be material to the Group’s operating results,
cash flows or financial position. The remaining two repurchase
actions are pending.
Government and agency securities civil actions and related
matters
Certain
governmental authorities are conducting investigations into
activities relating to the trading of certain government and agency
securities in various markets. The Group provided information in
cooperation with such investigations. Civil actions have also been
filed on the basis of similar allegations, as described
below.
Treasury auction securities civil actions
Consolidated
putative class action complaints filed in US federal court against
Barclays Bank PLC, BCI and other financial institutions under the
Antitrust Act and state common law allege that the defendants (i)
conspired to manipulate the US Treasury securities market and/or
(ii) conspired to prevent the creation of certain platforms by
boycotting or threatening to boycott such trading platforms. The
defendants have filed a motion to dismiss.
In
addition, certain plaintiffs have filed a related, direct action
against BCI and certain other financial institutions, alleging that
defendants conspired to fix and manipulate the US Treasury
securities market in violation of the Antitrust Act, the CEA and
state common law.
Supranational, Sovereign and Agency bonds civil
actions
Civil
antitrust actions have been filed in the SDNY and Federal Court of
Canada in Toronto against Barclays Bank PLC, BCI, BX, Barclays
Capital Securities Limited and, with respect to the civil action
filed in Canada only, Barclays Capital Canada,
Inc. and other financial
institutions alleging that the defendants conspired to fix prices
and restrain competition in the market for US dollar-denominated
Supranational, Sovereign and Agency bonds.
In one
of the actions filed in the SDNY, the court granted the
defendants’ motion to dismiss the plaintiffs’
complaint, which the plaintiffs have appealed. The plaintiffs have
voluntarily dismissed the other SDNY action.
Variable Rate Demand Obligations civil actions
Civil
actions have been filed against Barclays Bank PLC and BCI and other
financial institutions alleging the defendants conspired or
colluded to artificially inflate interest rates set for Variable
Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with
interest rates that reset on a periodic basis, most commonly
weekly. Two actions in state court have been filed by private
plaintiffs on behalf of the states of Illinois and California. Two
putative class action complaints, which have been consolidated,
have been filed in the SDNY.
Government bond civil actions
In a
putative class action filed in the SDNY in 2019, plaintiffs alleged
that BCI and certain other bond dealers conspired to fix the prices
of US government sponsored entity bonds in violation of US
antitrust law. BCI agreed to a settlement of $87m, which received
final court approval in June 2020. Separately, various entities in
Louisiana, including the Louisiana Attorney General and the City of
Baton Rouge, have filed complaints against Barclays Bank PLC and
other financial institutions making similar allegations as the
class action plaintiffs.
In
2018, a separate putative class action against various financial
institutions including Barclays PLC, Barclays Bank PLC, BCI,
Barclays Bank Mexico, S.A., and certain other subsidiaries of the
Group was consolidated in the SDNY. The plaintiffs asserted
antitrust and state law claims arising out of an alleged conspiracy
to fix the prices of Mexican Government bonds. Barclays PLC has
settled the claim for $5.7m, which is subject to court
approval.
BDC Finance L.L.C.
In
2008, BDC Finance L.L.C. (BDC) filed a complaint in the NY Supreme
Court, demanding damages of $298m, alleging that Barclays Bank PLC
had breached a contract in connection with a portfolio of total
return swaps governed by an ISDA Master Agreement (collectively,
the Agreement). Following a trial on certain liability issues, the
court ruled in December 2018 that Barclays Bank PLC was not a
defaulting party, which was affirmed on appeal. Barclays Bank
PLC’s counterclaim against BDC remains pending.
In
2011, BDC’s investment advisor, BDCM Fund Adviser, L.L.C. and
its parent company, Black Diamond Capital Holdings, L.L.C. also
sued Barclays Bank PLC and BCI in Connecticut State Court for
unspecified damages allegedly resulting from Barclays Bank
PLC’s conduct relating to the Agreement, asserting claims for
violation of the Connecticut Unfair Trade Practices Act and
tortious interference with business and prospective business
relations. This case is currently stayed.
Civil actions in respect of the US Anti-Terrorism Act
There
are a number of civil actions, on behalf of more than 4,000
plaintiffs, filed in US federal courts in the US District Court in
the Eastern District of New York (EDNY) and SDNY against Barclays
Bank PLC and a number of other banks. The complaints generally
allege that Barclays Bank PLC and those banks engaged in a
conspiracy to facilitate US dollar-denominated transactions for the
Government of Iran and various Iranian banks, which in turn funded
acts of terrorism that injured or killed plaintiffs or
plaintiffs’ family members. The plaintiffs seek to recover
damages for pain, suffering and mental anguish under the provisions
of the US Anti-Terrorism Act, which allow for the trebling of any
proven damages.
The
court granted the defendants’ motion to dismiss three actions
in the EDNY. Plaintiffs have appealed in one action. The court also
granted the defendants’ motion to dismiss another action in
the SDNY. The remaining actions are stayed pending decisions in
these cases.
Interest rate swap and credit default swap US civil
actions
Barclays
PLC, Barclays Bank PLC and BCI, together with other financial
institutions that act as market makers for interest rate swaps
(IRS) are named as defendants in several antitrust class actions
which were consolidated in the SDNY in 2016. The complaints allege
the defendants conspired to prevent the development of exchanges
for IRS and demand unspecified money damages.
In
2018, trueEX LLC filed an antitrust class action in the SDNY
against a number of financial institutions including Barclays PLC,
Barclays Bank PLC and BCI based on similar allegations with respect
to trueEX LLC’s development of an IRS platform. In 2017, Tera
Group Inc. filed a separate civil antitrust action in the SDNY
claiming that certain conduct alleged in the IRS cases also caused
the plaintiff to suffer harm with respect to the Credit Default
Swaps market. In November 2018 and July 2019, respectively, the
court dismissed certain claims in both cases for unjust enrichment
and tortious interference but denied motions to dismiss the federal
and state antitrust claims, which remain pending.
Odd-lot corporate bonds antitrust class action
In
2020, BCI, together with other financial institutions, were named
as defendants in a putative class action. The complaint alleges a
conspiracy to boycott developing electronic trading platforms for
odd-lots and price fixing. Plaintiffs demand unspecified money
damages.
2.
Barclays
PLC, Barclays Bank PLC and Barclays Bank UK PLC
Investigation into collections and recoveries relating to unsecured
lending
Since
February 2018, the FCA has been investigating whether the Group
implemented effective systems and controls with respect to
collections and recoveries and whether it paid due
consideration to the interests of customers in default and
arrears. The FCA investigation is at an advanced
stage.
HM Revenue & Customs (HMRC) assessments concerning UK Value
Added Tax
In
2018, HMRC issued notices that have the effect of removing certain
overseas subsidiaries that have operations in the UK from
Barclays’ UK VAT group, in which group supplies between
members are generally free from VAT. The notices have retrospective
effect and correspond to assessments of £181m (inclusive of
interest), of which Barclays would expect to attribute an amount of
approximately £128m to Barclays Bank UK PLC and £53m to
Barclays Bank PLC. HMRC’s decision has been appealed to the
First Tier Tribunal (Tax Chamber).
Local authority civil actions concerning LIBOR
Following
settlement by Barclays Bank PLC of various
governmental investigations concerning certain benchmark
interest rate submissions referred to above in
‘Investigations into LIBOR and other benchmarks and related
civil actions’, in the UK, certain local authorities have
brought claims against Barclays Bank PLC (and, in certain cases,
Barclays Bank UK PLC) asserting that they entered into loans in
reliance on misrepresentations made by Barclays Bank PLC in respect
of its conduct in relation to LIBOR. Barclays has applied to strike
out the claims.
General
The
Group is engaged in various other legal, competition and regulatory
matters in the UK, the US and a number of other overseas
jurisdictions. It is subject to legal proceedings brought by and
against the Group which arise in the ordinary course of business
from time to time, including (but not limited to) disputes in
relation to contracts, securities, debt collection, consumer
credit, fraud, trusts, client assets, competition, data management
and protection, money laundering, financial crime, employment,
environmental and other statutory and common law
issues.
The
Group is also subject to enquiries and examinations, requests for
information, audits, investigations and legal and other proceedings
by regulators, governmental and other public bodies in connection
with (but not limited to) consumer protection measures, compliance
with legislation and regulation, wholesale trading activity and
other areas of banking and business activities in which the Group
is or has been engaged. The Group is cooperating with the relevant
authorities and keeping all relevant agencies briefed as
appropriate in relation to these matters and others described in
this note on an ongoing basis.
At the
present time, Barclays PLC does not expect the ultimate resolution
of any of these other matters to have a material adverse effect on
the Group’s financial position. However, in light of the
uncertainties involved in such matters and the matters specifically
described in this note, there can be no assurance that the outcome
of a particular matter or matters (including formerly active
matters or those matters arising after the date of this note) will
not be material to Barclays PLC’s results, operations or cash
flow for a particular period, depending on, among other things, the
amount of the loss resulting from the matter(s) and the amount of
profit otherwise reported for the reporting period.
21.
Related party transactions
Related
party transactions in the half year ended 30 June 2020 were similar
in nature to those disclosed in the Barclays PLC Annual Report
2019. No related party transactions that have taken place in the
half year ended 30 June 2020 have materially affected the financial
position or the performance of the Group during this
period.
22.
Barclays PLC parent company balance sheet
|
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
|
Assets
|
£m
|
£m
|
|
Investment in subsidiaries
|
61,488
|
59,546
|
|
Loans and advances to subsidiaries
|
28,254
|
28,850
|
|
Financial assets at fair value through the income
statement
|
16,246
|
10,348
|
|
Derivative financial instruments
|
116
|
58
|
|
Other assets
|
37
|
2
|
|
Total assets
|
106,141
|
98,804
|
|
|
|
|
|
Liabilities
|
|
|
|
Deposits at amortised cost
|
534
|
500
|
|
Debt securities in issue
|
31,417
|
30,564
|
|
Subordinated liabilities
|
8,669
|
7,656
|
|
Financial liabilities designated at fair value
|
8,206
|
3,498
|
|
Other liabilities
|
112
|
119
|
|
Total liabilities
|
48,938
|
42,337
|
|
|
|
|
|
Equity
|
|
|
|
Called up share capital
|
4,336
|
4,331
|
|
Share premium account
|
284
|
263
|
|
Other equity instruments
|
10,865
|
10,865
|
|
Other reserves
|
394
|
394
|
|
Retained earnings
|
41,324
|
40,614
|
|
Total equity
|
57,203
|
56,467
|
|
|
|
|
|
Total liabilities and equity
|
106,141
|
98,804
|
Investment in subsidiaries
The
investment in subsidiaries of £61,488m (December 2019:
£59,546m) predominantly relates to investments in Barclays
Bank PLC and Barclays Bank UK PLC, as well as holdings of their AT1
securities of £10,843m (December 2019: £10,843m). The
increase of £1,942m during the period was predominantly driven
by capital contributions into Barclays Bank PLC totalling
£1,500m and Barclays Bank UK PLC totalling £220m.
Barclays PLC considers the carrying value of its investment in
subsidiaries to be fully recoverable.
Financial assets and liabilities designated at fair
value
Financial
liabilities designated at fair value of £8,206m (December
2019: £3,498m) comprises issuances during the period of $300m
Zero Coupon Callable Notes, $1,750m Fixed-to-Floating Rate Senior
Notes, $1,000m Fixed Rate Resetting Senior Callable Notes and
€2,000m Reset Notes. The proceeds raised through these
transactions were used to invest in subsidiaries of Barclays PLC
which are included within the financial assets designated at fair
value through the income statement balance of £16,246m
(December 2019: £10,348m).
Subordinated liabilities
During
H120, Barclays PLC issued £500m of Fixed Rate Resetting
Subordinated Callable Notes, which is included within the
subordinated liabilities balance of £8,669m (December 2019:
£7,656m).
Other equity instruments
Other
equity instruments comprises AT1 securities issued by Barclays PLC.
There have been no new issuances or redemptions during the
period.
Management of internal investments, loans and advances
Barclays
PLC retains the discretion to manage the nature of its internal
investments in subsidiaries according to their regulatory and
business needs. Barclays PLC may invest capital and funding into
Barclays Bank PLC, Barclays Bank UK PLC and other Group
subsidiaries such as Barclays Execution Services Limited and the US
Intermediate Holding Company (IHC).
Appendix: Non-IFRS Performance Measures
The
Group’s management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the
businesses’ performance between financial periods, and
provide more detail concerning the elements of performance which
the managers of these businesses are most directly able to
influence or are relevant for an assessment of the Group. They also
reflect an important aspect of the way in which operating targets
are defined and performance is monitored by
management.
However,
any non-IFRS performance measures in this document are not a
substitute for IFRS measures and readers should consider the IFRS
measures as well.
Non-IFRS performance measures glossary
|
Measure
|
Definition
|
|
Loan:
deposit ratio
|
Loans
and advances at amortised cost divided by deposits at amortised
cost. The components of the calculation have been included on page
44.
|
|
Period
end allocated tangible equity
|
Allocated tangible
equity is calculated as 13.0% (2019: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office allocated tangible equity
represents the difference between the Group’s tangible
shareholders’ equity and the amounts allocated to
businesses.
|
|
Average
tangible shareholders’ equity
|
Calculated as the
average of the previous month’s period end tangible equity
and the current month’s period end tangible equity. The
average tangible shareholders’ equity for the period is the
average of the monthly averages within that period.
|
|
Average
allocated tangible equity
|
Calculated as the
average of the previous month’s period end allocated tangible
equity and the current month’s period end allocated tangible
equity. The average allocated tangible equity for the period is the
average of the monthly averages within that period.
|
|
Return
on average tangible shareholders’ equity
|
Annualised profit
after tax attributable to ordinary equity holders of the parent, as
a proportion of average shareholders’ equity excluding
non-controlling interests and other equity instruments adjusted for
the deduction of intangible assets and goodwill. The components of
the calculation have been included on page 89.
|
|
Return
on average allocated tangible equity
|
Annualised profit
after tax attributable to ordinary equity holders of the parent, as
a proportion of average allocated tangible equity. The components
of the calculation have been included on page 89.
|
|
Cost:
income ratio
|
Total
operating expenses divided by total income.
|
|
Loan
loss rate
|
Quoted
in basis points and represents total annualised impairment charges
divided by gross loans and advances held at amortised cost at the
balance sheet date. The components of the calculation have been
included on page 25.
|
|
Net
interest margin
|
Annualised net
interest income divided by the sum of average customer assets. The
components of the calculation have been included on page
22.
|
|
Tangible net asset
value per share
|
Calculated by
dividing shareholders’ equity, excluding non-controlling
interests and other equity instruments, less goodwill and
intangible assets, by the number of issued ordinary shares. The
components of the calculation have been included on page
97.
|
|
Performance
measures excluding litigation and conduct
|
Calculated by
excluding litigation and conduct charges from performance measures.
The components of the calculations have been included on pages 90
to 97.
|
|
Pre-provision
profits
|
Calculated by
excluding credit impairment charges from profit before tax. The
components of the calculation have been included on pages 90 to
92.
|
|
Pre-provision
profits excluding litigation and conduct
|
Calculated by
excluding credit impairment charges, and litigation and conduct
charges from profit before tax. The components of the calculation
have been included on pages 90 to 92.
|
Returns
Return
on average tangible equity is calculated as profit after tax
attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.0% (2019: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office average allocated tangible
equity represents the difference between the Group’s average
tangible shareholders’ equity and the amounts allocated to
businesses.
|
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
|
Half year ended 30.06.20
|
£m
|
|
£bn
|
|
%
|
|
Barclays UK
|
52
|
|
10.2
|
|
1.0
|
|
Corporate and Investment Bank
|
1,514
|
|
27.7
|
|
11.0
|
|
Consumer, Cards and Payments
|
(517)
|
|
4.7
|
|
(21.9)
|
|
Barclays International
|
997
|
|
32.4
|
|
6.2
|
|
Head Office
|
(354)
|
|
6.0
|
|
n/m
|
|
Barclays Group
|
695
|
|
48.6
|
|
2.9
|
|
|
|
|
|
|
|
|
Half year ended 30.06.19
|
|
|
|
|
|
|
Barclays UK
|
750
|
|
10.3
|
|
14.5
|
|
Corporate and Investment Bank
|
1,178
|
|
25.5
|
|
9.3
|
|
Consumer, Cards and Payments
|
442
|
|
5.3
|
|
16.6
|
|
Barclays International
|
1,620
|
|
30.8
|
|
10.5
|
|
Head Office
|
(298)
|
|
4.6
|
|
n/m
|
|
Barclays Group
|
2,072
|
|
45.7
|
|
9.1
|
|
Performance measures excluding litigation and conduct
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30.06.20
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(2,052)
|
(3,373)
|
(1,043)
|
(4,416)
|
(125)
|
(6,593)
|
|
Impact of litigation and conduct
|
11
|
3
|
8
|
11
|
8
|
30
|
|
Operating expenses
|
(2,041)
|
(3,370)
|
(1,035)
|
(4,405)
|
(117)
|
(6,563)
|
|
|
|
|
|
|
|
|
|
Total income
|
3,171
|
6,933
|
1,721
|
8,654
|
(204)
|
11,621
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
64%
|
49%
|
60%
|
51%
|
n/m
|
56%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
68
|
2,243
|
(614)
|
1,629
|
(425)
|
1,272
|
|
Impact of litigation and conduct
|
11
|
3
|
8
|
11
|
8
|
30
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
79
|
2,246
|
(606)
|
1,640
|
(417)
|
1,302
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
52
|
1,514
|
(517)
|
997
|
(354)
|
695
|
|
Post-tax impact of litigation and conduct
|
8
|
2
|
6
|
8
|
(1)
|
15
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
60
|
1,516
|
(511)
|
1,005
|
(355)
|
710
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.8
|
27.7
|
5.4
|
33.1
|
9.9
|
56.8
|
|
Average goodwill and intangibles
|
(3.6)
|
-
|
(0.7)
|
(0.7)
|
(3.9)
|
(8.2)
|
|
Average tangible shareholders' equity
|
10.2
|
27.7
|
4.7
|
32.4
|
6.0
|
48.6
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
1.2%
|
11.0%
|
(21.7%)
|
6.2%
|
n/m
|
2.9%
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,294
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
4.1p
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
|
Profit before tax
|
|
|
|
|
|
1,272
|
|
Impact of credit impairment charges
|
|
|
|
|
|
3,738
|
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
5,010
|
|
Impact of litigation and conduct
|
|
|
|
|
|
30
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
5,040
|
|
|
Half year 30.06.19
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(2,065)
|
(3,505)
|
(1,166)
|
(4,671)
|
(136)
|
(6,872)
|
|
Impact of litigation and conduct
|
44
|
26
|
4
|
30
|
40
|
114
|
|
Operating expenses
|
(2,021)
|
(3,479)
|
(1,162)
|
(4,641)
|
(96)
|
(6,758)
|
|
|
|
|
|
|
|
|
|
Total income
|
3,548
|
5,300
|
2,173
|
7,473
|
(231)
|
10,790
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
57%
|
66%
|
53%
|
62%
|
n/m
|
63%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
1,062
|
1,714
|
627
|
2,341
|
(389)
|
3,014
|
|
Impact of litigation and conduct
|
44
|
26
|
4
|
30
|
40
|
114
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
1,106
|
1,740
|
631
|
2,371
|
(349)
|
3,128
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
750
|
1,178
|
442
|
1,620
|
(298)
|
2,072
|
|
Post-tax impact of litigation and conduct
|
32
|
21
|
3
|
24
|
30
|
86
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
782
|
1,199
|
445
|
1,644
|
(268)
|
2,158
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.9
|
25.5
|
6.4
|
31.9
|
7.9
|
53.7
|
|
Average goodwill and intangibles
|
(3.6)
|
-
|
(1.1)
|
(1.1)
|
(3.3)
|
(8.0)
|
|
Average tangible shareholders' equity
|
10.3
|
25.5
|
5.3
|
30.8
|
4.6
|
45.7
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
15.1%
|
9.4%
|
16.7%
|
10.7%
|
n/m
|
9.4%
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,178
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
12.6p
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
|
Profit before tax
|
|
|
|
|
|
3,014
|
|
Impact of credit impairment charges
|
|
|
|
|
|
928
|
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
3,942
|
|
Impact of litigation and conduct
|
|
|
|
|
|
114
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
4,056
|
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Cost: income ratio
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Total operating expenses
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
(4,093)
|
(3,434)
|
|
Impact of litigation and conduct
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
105
|
|
Operating expenses
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(4,033)
|
(3,329)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
5,073
|
5,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
79%
|
65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
1,461
|
|
Impact of litigation and conduct
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
105
|
|
Profit before tax excluding litigation and conduct
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
434
|
1,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
(14)
|
1,050
|
|
Post-tax impact of litigation and conduct
|
16
|
(1)
|
|
122
|
1,525
|
40
|
46
|
|
62
|
85
|
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
48
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Average shareholders' equity
|
58.4
|
55.2
|
|
54.5
|
56.4
|
54.0
|
53.2
|
|
52.2
|
52.5
|
|
Average goodwill and intangibles
|
(8.2)
|
(8.2)
|
|
(8.1)
|
(8.0)
|
(7.8)
|
(8.0)
|
|
(7.9)
|
(7.9)
|
|
Average tangible shareholders' equity
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
44.3
|
44.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
0.4%
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
17,294
|
17,278
|
|
17,200
|
17,192
|
17,178
|
17,111
|
|
17,075
|
17,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
0.3p
|
6.6p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Profit before tax
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
1,461
|
|
Impact of credit impairment charges
|
1,623
|
2,115
|
|
523
|
461
|
480
|
448
|
|
643
|
254
|
|
Profit before tax excluding credit impairment charges
|
1,982
|
3,028
|
|
1,620
|
707
|
2,011
|
1,931
|
|
1,017
|
1,715
|
|
Impact of litigation and conduct
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
105
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
2,002
|
3,038
|
|
1,787
|
2,275
|
2,064
|
1,992
|
|
1,077
|
1,820
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Cost: income ratio
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Total operating expenses
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
(1,175)
|
(1,042)
|
|
Impact of litigation and conduct
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
15
|
54
|
|
Operating expenses
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
(1,160)
|
(988)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
1,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
62%
|
52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit before tax
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
390
|
740
|
|
Impact of litigation and conduct
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
15
|
54
|
|
(Loss)/profit before tax excluding litigation and
conduct
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
405
|
794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable (loss)/profit
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
241
|
510
|
|
Post-tax impact of litigation and conduct
|
5
|
3
|
|
43
|
1,457
|
30
|
2
|
|
12
|
48
|
|
(Loss)/profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
253
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Average allocated equity
|
13.9
|
13.7
|
|
13.8
|
13.9
|
13.8
|
13.9
|
|
13.6
|
13.7
|
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
|
(3.5)
|
(3.5)
|
(3.5)
|
(3.5)
|
|
(3.5)
|
(3.6)
|
|
Average allocated tangible equity
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
10.1
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
10.1%
|
22.0%
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Cost: income ratio
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Total operating expenses
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
(2,684)
|
(2,309)
|
|
Impact of litigation and conduct
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
33
|
32
|
|
Operating expenses
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,651)
|
(2,277)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
3,221
|
3,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
82%
|
69%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
215
|
850
|
|
Impact of litigation and conduct
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
33
|
32
|
|
Profit before tax excluding litigation and conduct
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
248
|
882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
(21)
|
687
|
|
Post-tax impact of litigation and conduct
|
8
|
-
|
|
64
|
2
|
8
|
16
|
|
34
|
26
|
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
13
|
713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Average allocated equity
|
34.2
|
31.9
|
|
31.9
|
33.3
|
32.1
|
31.6
|
|
32.4
|
32.5
|
|
Average goodwill and intangibles
|
(0.7)
|
(0.7)
|
|
(1.0)
|
(1.1)
|
(1.0)
|
(1.1)
|
|
(1.1)
|
(1.3)
|
|
Average allocated tangible equity
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
31.3
|
31.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
0.2%
|
9.2%
|
|
Corporate and Investment Bank
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Cost: income ratio
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Total operating expenses
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
(2,046)
|
(1,744)
|
|
Impact of litigation and conduct
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
23
|
32
|
|
Operating expenses
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(2,023)
|
(1,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
2,151
|
2,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
94%
|
77%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
85
|
498
|
|
Impact of litigation and conduct
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
23
|
32
|
|
Profit before tax excluding litigation and conduct
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
108
|
530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
(84)
|
431
|
|
Post-tax impact of litigation and conduct
|
2
|
-
|
|
58
|
5
|
5
|
16
|
|
27
|
25
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
(57)
|
456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Average allocated equity
|
29.1
|
26.2
|
|
25.9
|
26.9
|
25.8
|
25.2
|
|
26.0
|
26.2
|
|
Average goodwill and intangibles
|
(0.1)
|
-
|
|
(0.1)
|
-
|
-
|
(0.1)
|
|
-
|
(0.2)
|
|
Average allocated tangible equity
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
26.0
|
25.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
(0.9%)
|
7.0%
|
|
Consumer, Cards and Payments
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Cost: income ratio
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Total operating expenses
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
(638)
|
(565)
|
|
Impact of litigation and conduct
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
10
|
-
|
|
Operating expenses
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
(628)
|
(565)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
1,070
|
1,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
59%
|
54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit before tax
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
130
|
352
|
|
Impact of litigation and conduct
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
10
|
-
|
|
(Loss)/profit before tax excluding litigation and
conduct
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
140
|
352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable (loss)/profit
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
63
|
256
|
|
Post-tax impact of litigation and conduct
|
6
|
-
|
|
6
|
(3)
|
3
|
-
|
|
7
|
1
|
|
(Loss)/profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
70
|
257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
Average allocated equity
|
5.1
|
5.7
|
|
6.0
|
6.4
|
6.3
|
6.4
|
|
6.4
|
6.3
|
|
Average goodwill and intangibles
|
(0.6)
|
(0.7)
|
|
(0.9)
|
(1.1)
|
(1.0)
|
(1.0)
|
|
(1.1)
|
(1.1)
|
|
Average allocated tangible equity
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
5.3
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
5.4%
|
19.9%
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Q318
|
|
Profit before tax
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Loss before tax
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
(231)
|
(129)
|
|
Impact of litigation and conduct
|
3
|
5
|
|
23
|
88
|
1
|
39
|
|
12
|
19
|
|
Loss before tax excluding litigation and conduct
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
(219)
|
(110)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
|
Attributable loss
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
(234)
|
(147)
|
|
Post-tax impact of litigation and conduct
|
3
|
(4)
|
|
15
|
66
|
2
|
28
|
|
16
|
11
|
|
Attributable loss excluding litigation and conduct
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
(218)
|
(136)
|
|
Tangible net asset value per share
|
As at
|
As at
|
As at
|
|
|
30.06.20
|
31.12.19
|
31.06.19
|
|
|
£m
|
£m
|
£m
|
|
Total equity excluding non-controlling interests
|
68,304
|
64,429
|
67,576
|
|
Other equity instruments
|
(10,871)
|
(10,871)
|
(12,123)
|
|
Goodwill and intangibles
|
(8,163)
|
(8,119)
|
(7,993)
|
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
49,270
|
45,439
|
47,460
|
|
|
|
|
|
|
|
m
|
m
|
m
|
|
Shares in issue
|
17,345
|
17,322
|
17,245
|
|
|
|
|
|
|
|
p
|
p
|
p
|
|
Tangible net asset value per share
|
284
|
262
|
275
|
Shareholder Information
|
|
|
|
|
|
|
|
|
Results timetable1
|
|
|
Date
|
|
|
|
|
Q320 Results Announcement
|
|
|
23 October 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change3
|
|
Exchange rates2
|
30.06.20
|
31.12.19
|
30.06.19
|
|
31.12.19
|
30.06.19
|
|
Period end - USD/GBP
|
1.24
|
1.33
|
1.27
|
|
(7%)
|
(2%)
|
|
6 month average - USD/GBP
|
1.26
|
1.26
|
1.29
|
|
-
|
(2%)
|
|
3 month average - USD/GBP
|
1.24
|
1.29
|
1.29
|
|
(4%)
|
(4%)
|
|
Period end - EUR/GBP
|
1.10
|
1.18
|
1.12
|
|
(7%)
|
(2%)
|
|
6 month average - USD/GBP
|
1.14
|
1.14
|
1.15
|
|
-
|
(1%)
|
|
3 month average - EUR/GBP
|
1.13
|
1.16
|
1.14
|
|
(3%)
|
(1%)
|
|
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
|
|
Barclays PLC (p)
|
114.42
|
179.64
|
149.80
|
|
|
|
|
Barclays PLC number of shares (m)
|
17,345
|
17,322
|
17,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
|
Chris Manners +44 (0) 20 7773 2136
|
Tom Hoskin +44 (0) 20 7116 4755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More information on Barclays can be found on our website:
home.barclays.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered office
|
|
|
|
|
|
|
|
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
|
|
|
|
|
|
|
|
|
|
|
Registrar
|
|
|
|
|
|
|
|
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
|
|
|
Tel: 0371 384 20554
from the UK or +44 121 415 7004 from
overseas.
|
|
|
|
|
|
|
|
|
|
|
American Depositary Receipts (ADRs)
|
|
|
|
|
|
|
|
J.P.Morgan Chase Bank, N.A
|
|
StockTransfer@equiniti.com
|
|
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128
(outside the US and Canada) or +1 866 700 1652 (for the
hearing
|
|
impaired).
|
|
J.P.Morgan Chase Bank N.A., Shareowner Services, PO Box 64504, St
Paul, MN 55164-0504, USA.
|
|
|
|
|
|
|
|
|
|
Delivery of ADR certificates and overnight mail
|
|
|
|
|
|
|
|
J.P.Morgan Chase Bank N.A., Shareowner Services, 1110 Centre Pointe
Curve, Suite 101, Mendota Heights, MN 55120, USA.
|
|
1
|
Note that these dates are provisional and subject to
change.
|
|
2
|
The average rates shown above are derived from daily spot rates
during the year.
|
|
3
|
The change is the impact to GBP reported information.
|
|
4
|
Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
|
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