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:
October 23, 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
Q3 2020 Results Announcement
30
September 2020
Performance Highlights
Open for business during the COVID-19 pandemic, helping support the
economy
COVID-19 support
Supporting
our customers, clients, communities, and colleagues
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●
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Provided over 640k
payment holidays to customers, c.£25bn of COVID-19 support to
UK businesses1 and helped
businesses and institutions access global capital markets
including
underwriting over
£1tn of new issuance2 in Q220 and Q320.
Also waived c.£100m of interest and fees to customers, and
committed to a £100m COVID-19 Community Aid
Package
|
Diversified business model delivered a resilient operating
performance Q320 YTD
Despite the pandemic, Barclays delivered a Q320 YTD Group profit
before tax of £2.4bn (Q319 YTD: £3.3bn, included a
Payment Protection Insurance (PPI) provision of £1.4bn), a
return on tangible equity (RoTE) of 3.6% (Q319 YTD: 5.1%), earnings
per share (EPS) of 7.6p (Q319 YTD: 10.4p) and a common equity tier
1 (CET1) ratio of 14.6% (December 2019: 13.8%)
Income
Diversified
income streams with strong Q320 YTD CIB income offsetting
challenges in Barclays UK and CC&P
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Group income of £16.8bn up 3% versus prior year
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●
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Barclays International income of £12.4bn, up 11% versus prior
year
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-
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Corporate and Investment Bank (CIB) income of £9.8bn, up
24% driven by strong Markets income reflecting wider spreads
and market share gains3
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|
-
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Consumer, Cards and Payments (CC&P) income of £2.6bn, down
21% driven by lower balances, margin compression and reduced
payments activity
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●
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Barclays UK income of £4.7bn down 12% versus prior year
reflecting lower interest rates and unsecured lending balances,
COVID-19 customer support actions and the removal of certain
fees
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Credit impairment charges
Increased
impairment provisioning driving higher coverage ratios across
portfolios
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Group credit impairment charges increased to £4.3bn (Q319 YTD:
£1.4bn) reflecting the impact from revised IFRS 9
scenarios and £0.7bn in respect of single name wholesale loan
charges
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●
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Impairment
coverage ratio for the unsecured consumer lending and wholesale
portfolios increased to 12.2% (FY19: 8.1%) and 1.5% (FY19: 0.8%)
respectively
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Costs4
Improved
cost: income ratio
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Group
operating expenses of £10.0bn down 1% versus prior
year
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●
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Cost
efficiencies and cost discipline contributed to positive cost:
income jaws of 4% resulting in an improved cost: income ratio of
59% (Q319 YTD: 62%)
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Capital, liquidity and TNAV
Strong
capital and liquidity position
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CET1
ratio of 14.6%, a YTD increase of 80bps
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●
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The
increase over the first nine months of the year reflects profits,
regulatory measures and cancellation of the full year 2019 dividend
payment, partially offset by a YTD increase in Risk Weighted Assets
(RWAs)
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●
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Headroom
of 3.3% above Maximum Distributable Amount (MDA) hurdle of
11.3%5
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●
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The
Group liquidity pool was £327bn (December 2019: £211bn)
and the liquidity coverage ratio (LCR) was 181% (December 2019:
160%)
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●
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Tangible
net asset value (TNAV) per share increased to 275p (December 2019:
262p)
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Q320 performance
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Q320
Barclays UK and CC&P income improved from Q220, whilst CIB
remains strong year on year
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Q320 Group profit before tax of £1.1bn (Q319: £0.2bn),
resulting in a RoTE of 5.1% (Q319: (2.4%)) and EPS of 3.5p (Q319:
(1.7p))
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●
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Q320 Group income of £5.2bn, down 6% versus prior
year
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●
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Q320 Barclays International income of £3.8bn, up 1% versus
prior year
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-
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Q320 CIB income of £2.9bn, up 11% versus prior year
driven by a 29% increase in Markets income, but down 12% versus
prior quarter
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-
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Q320 CC&P income of £0.9bn, down 23% versus prior year but
up 26% versus prior quarter improved from the Q220 low point
reflecting recovery in US cards spend, deposit repricing, UK
merchant acquiring volumes, and the non-recurrence of a £100m
valuation loss in Barclays’ preference shares in Visa
Inc.
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●
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Q320 Barclays UK income of £1.6bn, down 16% versus prior year
but up 6% versus prior quarter improved from the Q220 low
point with Q320 net interest margin (NIM) stable at 2.51% (Q220:
2.48%)
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●
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Q320 Group credit impairment charge of £0.6bn, up 32% versus
prior year but down 63% versus prior quarter
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●
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Q320 Group operating expenses of
£3.4bn4, up 3% versus prior
year and 2% versus prior quarter
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●
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CET1 ratio of 14.6%, an increase of 40bps in Q320 mainly due to
lower RWAs
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1
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Total payment holidays granted as at 30 September 2020, business
lending and commercial paper issuance data as at 19 October
2020.
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2
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Across Equity and Debt Capital Markets.
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3
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Data source: Coalition, H120 Competitor Analysis. Market share
represents Barclays share of the total industry Revenue Pool.
Analysis is based on Barclays internal business structure and
internal revenues.
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4
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Excluding litigation and conduct.
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5
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Barclays’ MDA hurdle will fluctuate depending on the total
RWAs at each reporting period and any future regulatory
changes.
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Group outlook
Outlook
remains uncertain and subject to change depending on the evolution
and persistence of the COVID-19 pandemic and the outcome of Brexit
negotiations
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Income
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●
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Certain
headwinds to income in Barclays UK are expected to persist in 2021
including the low interest rate environment
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●
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The
drivers of CC&P income are showing signs of recovery but the
outlook remains uncertain
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●
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After a
strong Q320 YTD CIB performance driven by Markets, the franchise is
well positioned for the future
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Impairment
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●
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Provided
macroeconomic assumptions remain consistent with expectations, we
expect the H220 impairment charge to be materially below that of
H120 and it is likely that the full year 2021 impairment charge
will be below that of 2020
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Costs
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●
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The
Group expects FY20 costs, excluding litigation and conduct, to be
broadly flat versus FY19. However, the Group will be evaluating
actions to reduce structural costs, which could result in
additional charges, the timing and size of which remain to be
determined
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Capital
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●
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The
Group remains in a strong capital position and is confident of its
capital generation capacity over time, acknowledging likely
headwinds to the CET1 ratio from procyclical effects on RWAs and
reduced benefit from transitional relief on IFRS 9
impairment
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●
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The
Board recognises the importance of capital returns to shareholders
and will provide an update on its policy and dividends at FY20
results
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Barclays Group results
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for the nine months ended
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30.09.20
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30.09.19
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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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16,825
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16,331
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3
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Credit impairment charges
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(4,346)
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(1,389)
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Net operating income
|
12,479
|
14,942
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(16)
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Operating expenses
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(9,954)
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(10,051)
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1
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Litigation and conduct
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(106)
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(1,682)
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94
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Total operating expenses
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(10,060)
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(11,733)
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14
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Other net income
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-
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51
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|
Profit before tax
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2,419
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3,260
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(26)
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Tax charge
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(441)
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(814)
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46
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Profit after tax
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1,978
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2,446
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(19)
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Non-controlling interests
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(41)
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(38)
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(8)
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Other equity instrument holders
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(631)
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(628)
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-
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Attributable profit
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1,306
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1,780
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(27)
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|
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Performance measures
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|
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Return on average tangible shareholders' equity
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3.6%
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5.1%
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Average tangible shareholders' equity (£bn)
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48.5
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46.6
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Cost: income ratio
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60%
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72%
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Loan loss rate (bps)
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164
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53
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Basic earnings per share
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7.6p
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10.4p
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Dividend per share
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-
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3.0p
|
|
|
|
|
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Performance measures excluding
litigation and conduct1
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|
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Profit before tax
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2,525
|
4,942
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(49)
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Attributable profit
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1,378
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3,391
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(59)
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Return on average tangible shareholders' equity
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3.8%
|
9.7%
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Cost: income ratio
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59%
|
62%
|
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Basic earnings per share
|
8.0p
|
19.7p
|
|
|
|
|
|
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As at 30.09.20
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As at 31.12.19
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As at 30.09.19
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Balance sheet and capital
management2
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£bn
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£bn
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£bn
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Loans and advances at amortised cost
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344.4
|
339.1
|
345.1
|
Deposits at amortised cost
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494.6
|
415.8
|
420.6
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Tangible net asset value per share
|
275p
|
262p
|
274p
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Common equity tier 1 ratio
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14.6%
|
13.8%
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13.4%
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Common equity tier 1 capital
|
45.5
|
40.8
|
41.9
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Risk weighted assets
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310.7
|
295.1
|
313.3
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Average UK leverage ratio
|
5.1%
|
4.5%
|
4.6%
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UK leverage ratio
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5.2%
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5.1%
|
4.8%
|
|
|
|
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Funding and liquidity
|
|
|
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Group liquidity pool (£bn)
|
327
|
211
|
226
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Liquidity coverage ratio
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181%
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160%
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151%
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Loan: deposit ratio
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70%
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82%
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82%
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1
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Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
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2
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Refer to pages 29 to 35 for further information on how capital,
RWAs and leverage are calculated.
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Group Chief Executive Officer’s Review
“In this historically challenging year for our customers and
clients we have continued to provide huge support to help people
through the social and economic impact of the COVID-19 pandemic.
This remains a priority, alongside maintaining the financial
integrity of the firm and keeping our colleagues safe.
For customers, we have provided over 640,000 payment holidays
globally1,
and this is in addition to some £100m of income foregone in
the form of waived overdraft interest and banking charges for our
UK customers and business banking clients.
We have now delivered some £25bn through the government
support measures to UK businesses.1 This includes
296,000 Bounce Back Loans totalling £9.2bn, around £3bn
under the CBILS programmes2, and £12.4bn
through the Covid Corporate Financing Facility.1 In addition, we have
helped businesses and institutions to access global capital
markets, including underwriting over £1tn of new issuance in
Q220 and Q320.3
Our £100m Community Aid Package is making a positive
difference for thousands of people via hundreds of charities we
have supported which are mitigating the impact of COVID-19,
including donations to NHS hospital charities, Age UK and
Mind.
This support is made partly possible because we have a resilient
and diversified business model which means we remain profitable as
we weather this crisis, with strong income performance in our CIB
more than offsetting headwinds in our consumer
businesses.
In the first nine months Group income increased 3% to £16.8bn
with pre-provision profits4 increasing 9% to
£6.9bn.
Our impairment charges now total £4.3bn, with an additional
£608m taken in Q320, a figure down 63% on the previous
quarter. We expect the impairment charge in the second half of the
year to be materially lower than the first half.
Group profit before tax for the first nine months was £2.4bn,
with the Group remaining profitable in each quarter so
far.
In Barclays International, CIB income increased 24% to £9.8bn
with Markets income up 52% mainly reflecting wider spreads and
market share gains.5 Profit before tax in
the CIB increased 25% to £3.2bn.
Our CC&P business returned to profitability in the third
quarter with profit before tax of £165m, reducing the year to
date loss before tax to £449m, which included impairment
charges of £1.5bn.
Barclays UK also returned to profitability in the third quarter,
with profit before tax of £196m, as economic activity
recovered from the spring low point and impairment charges reduced.
For the first nine months Barclays UK delivered profit before tax
of £264m. Income headwinds in Barclays UK are expected to
persist into 2021 including the low interest rate
environment.
Group costs excluding litigation and conduct are down 1% at
£10.0bn, resulting in positive cost to income jaws of 4%, and
an improved cost to income ratio of 59%.
Group RoTE was 3.6% including 10.5% for the CIB; and 2.2% for
Barclays UK. The Group generated EPS of 7.6 pence.
In the third quarter Group income was £5.2bn and Group profit
before tax increased to £1.1bn due to the non-recurrence of
the 2019 PPI provision.
Our CET1 ratio increased 40bps in the quarter to 14.6%, more than
300 basis points above our regulatory minimum. The Board recognises
the importance of capital returns to shareholders and will provide
an update on its policy and dividends at full year
results.”
James E Staley, Group Chief Executive Officer
1
|
Total payment holidays granted as at 30 September 2020, business
lending and commercial paper issuance data as at 19 October
2020.
|
2
|
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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Across Equity and Debt Capital Markets.
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4
|
Excluding litigation and conduct.
|
5
|
Data source: Coalition, H120 Competitor Analysis Market share
represents Barclays share of the total industry Revenue Pool.
Analysis is based on Barclays internal business structure and
internal revenues.
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Group Finance Director’s Review
Group performance
●
|
Statutory
RoTE was 3.6% (Q319 YTD: 5.1%) and statutory EPS was 7.6p (Q319
YTD: 10.4p)
|
●
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Profit
before tax was £2,419m (Q319 YTD: £3,260m). Excluding
litigation and conduct, profit before tax was £2,525m (Q319
YTD: £4,942m), as positive operating leverage from a 3%
increase in income and 1% reduction in operating expenses was
offset by materially higher credit impairment charges
|
●
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Pre-provision
profits1
increased 9% to £6,871m, benefitting from the Group’s
diversified business model, as strong performance in CIB more than
offset income headwinds in Barclays UK and CC&P
|
●
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Total
income increased 3% to £16,825m. Barclays UK income decreased
12%. Barclays International income increased 11%, with CIB income
up 24% and CC&P income down 21%
|
●
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Credit
impairment charges increased to £4,346m (Q319 YTD:
£1,389m). This increase was primarily driven by the 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, and
£746m in respect of single name wholesale loan charges in
CIB
|
●
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Operating
expenses decreased 1% to £9,954m reflecting cost efficiencies
and continued cost discipline in the current environment. The Group
delivered positive cost: income jaws of 4% which resulted in the
Group cost: income ratio, excluding litigation and conduct,
reducing to 59% (Q319 YTD: 62%)
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●
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The
effective tax rate was 18.2% (Q319 YTD: 25.0%). 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
|
●
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Attributable
profit was £1,306m (Q319 YTD: £1,780m). Excluding
litigation and conduct, attributable profit was £1,378m (Q319
YTD: £3,391m), generating a RoTE of 3.8% (Q319 YTD: 9.7%) and
EPS of 8.0p (Q319 YTD: 19.7p)
|
●
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Total
assets increased to £1,422bn (December 2019: £1,140bn),
primarily due to a £91bn increase in cash and balances at
central banks, £67bn increase in derivative assets and
£50bn increase in financial assets at fair value through the
income statement. This is due to the low interest rate environment,
increased client activity and the appreciation of period end USD
against GBP
|
●
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Loans
and advances at amortised cost increased by £5bn to
£344bn, which reflects the £9.7bn 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 and £3.2bn of mortgage growth. This was
partially offset by lower card balances
|
●
|
Deposits
at amortised cost increased by £79bn to £495bn, primarily
due to CIB clients increasing liquidity, lower consumer spending
levels and precautionary balance build
|
●
|
TNAV
per share increased to 275p (December 2019: 262p) reflecting 7.6p
of statutory EPS and positive reserve movements, including
retirement benefit re-measurements and currency translation
reserves
|
Barclays UK
●
|
Profit
before tax, excluding litigation and conduct, was £300m (Q319
YTD: £1,899m). RoTE was 2.5% (Q319 YTD: 17.2%) reflecting a
challenging operating environment and materially higher credit
impairment charges
|
●
|
Total
income decreased 12% to £4,721m. Net interest income reduced
11% to £3,917m with a NIM of 2.63% (Q319 YTD: 3.10%). Net fee,
commission and other income decreased 18% to
£804m
|
|
-
|
Personal
Banking income decreased 11% to £2,627m, reflecting deposit
margin compression, COVID-19 customer support actions, and lower
unsecured lending balances, partially offset by deposit balance
growth and transfer of Barclays Partner Finance (BPF) from Barclays
International in Q220
|
|
-
|
Barclaycard
Consumer UK income decreased 20% to £1,165m as reduced
borrowing and spend levels by customers resulted in a lower level
of interest earning lending (IEL) balances, as well as planned
lower debt sales
|
|
-
|
Business
Banking income decreased 6% to £929m due to deposit margin
compression, lower transactional fee volumes as a result of
COVID-19 and related customer support actions, partially offset by
balance growth
|
●
|
Credit
impairment charges increased to £1,297m (Q319 YTD: £522m)
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. As at 30
September 2020, 30 and 90 day arrears rates in UK cards were 1.7%
(Q319: 1.7%) and 0.8% (Q319: 0.8%) respectively
|
●
|
Operating
expenses increased 5% to £3,136m as efficiency savings were
more than offset by higher servicing and financial assistance
costs, as well as the transfer of BPF and further
investment
|
●
|
Loans
and advances to customers at amortised cost increased 5% to
£203.9bn predominantly through £9.7bn of BBLS and CBILS
lending, £3.2bn of mortgage growth and the £2.2bn
transfer of BPF, partially offset by £4.0bn lower UK cards
balances
|
●
|
Customer
deposits at amortised cost increased 13% to £232.0bn due to
lower customer spending and precautionary balance
build
|
●
|
RWAs
increased to £76.2bn (December 2019: £74.9bn) driven by
the transfer of BPF and growth in mortgages, partially offset by a
reduction in consumer loans
|
1
|
Excluding litigation and conduct.
|
Barclays International
●
|
Profit
before tax, excluding litigation and conduct, decreased 19% to
£2,833m with a RoTE of 7.6% (Q319 YTD: 10.4%), reflecting a
RoTE of 10.5% (Q319 YTD: 9.3%) in CIB and (9.9)% (Q319 YTD: 15.8%)
in CC&P
|
●
|
Total
income increased to £12,435m (Q319 YTD:
£11,223m)
|
|
-
|
CIB
income increased 24% to £9,838m
|
|
|
-
|
Markets
income of £6,255m (Q319 YTD: £4,116m) was the best ever
Q3 YTD on a comparable basis1 reflecting an
increase in market share in the first half of the year2. FICC income
increased 64% to £4,326m driven by strong performances in
macro and credit, mainly reflecting wider spreads. Equities income
increased 31% to £1,929m driven by derivatives and cash due to
higher levels of client activity and volatility
|
|
|
-
|
Banking
fees income increased 1% to £1,977m as a strong performance in
equity and debt capital markets, representing the best ever Q3 YTD
on a comparable basis for these businesses1, was offset by lower
fee income in advisory which was impacted by a reduced fee
pool3
|
|
|
-
|
Within
Corporate, Transaction banking income decreased 6% to £1,202m
as deposit balance growth was more than offset by margin
compression. Corporate lending income decreased by 28% to
£404m reflecting c.£210m of losses on fair value lending
positions and on mark-to-market and carry costs on related hedges
in Q320 YTD
|
|
-
|
CC&P
income decreased 21% to £2,597m 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 £2,989m (Q319 YTD:
£844m)
|
|
-
|
CIB
credit impairment charges increased to £1,507m (Q319 YTD:
£127m), reflecting £746m in respect of single name
wholesale loan charges and the impact from updates to forecast
macroeconomic variables, partially offset by the estimated impact
of central bank, government and other support measures
|
|
-
|
CC&P
credit impairment charges increased to £1,482m (Q319 YTD:
£717m) reflecting the impact from updates to forecast
macroeconomic variables, partially offset by the estimated impact
of central bank, government and other support measures. As at 30
September 2020, 30 and 90 day arrears in US cards were 2.3% (Q319:
2.6%) and 1.1% (Q319: 1.3%) respectively
|
●
|
Operating
expenses decreased 4% to £6,632m
|
|
-
|
CIB
operating expenses decreased 2% to £5,086m due to cost
efficiencies and discipline in the current environment
|
|
-
|
CC&P
operating expenses decreased 11% to £1,546m reflecting cost
efficiencies, lower marketing spend due to the impacts of the
COVID-19 pandemic and transfer of BPF to Barclays UK in
Q220
|
●
|
RWAs
increased to £224.7bn (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 – Q320. Pre 2014 financials were not
restated following re-segmentation in Q116.
|
2
|
Data source: Coalition, H120 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
September 2020.
|
Head Office
●
|
Loss
before tax, excluding litigation and conduct, was £608m (Q319
YTD: £465m)
|
●
|
Total
income was an expense of £331m (Q319 YTD: £286m), which
included treasury items and hedge accounting, mark-to-market losses on legacy
investments and funding costs of legacy capital instruments,
partially offset by the recognition of dividends on Barclays’
stake in Absa Group Limited
|
●
|
Credit
impairment charges increased to £60m (Q319 YTD: £23m) 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 £186m (Q319 YTD: £155m), which included £73m of
charitable donations from Barclays’ COVID-19 Community Aid
Package
|
●
|
Other
net expenses were £31m (Q319 YTD: £1m), which included a
fair value loss on an investment in an associate
|
●
|
RWAs
decreased to £9.8bn (December 2019: £11.0bn) driven by
the reduction in value of Barclays’ stake in Absa Group
Limited
|
Group capital and leverage
●
|
The
CET1 ratio increased to 14.6% (December 2019: 13.8%)
|
|
-
|
CET1
capital increased by £4.7bn to £45.5bn reflecting
resilient capital generation through £6.3bn of profits after
tax, excluding credit impairment charges and a £1.0bn increase
due to the cancellation of the full year 2019 dividend. The CET1
capital increase also reflects new regulatory measures implemented
in June 2020 for IFRS 9 transitional relief and prudent
valuation
|
|
-
|
RWAs
increased by £15.6bn to £310.7bn primarily due to higher
market volatility and client activity within CIB as well as a
reduction in credit quality, partially offset by lower consumer
lending
|
●
|
The
average UK leverage ratio increased to 5.1% (December 2019: 4.5%)
primarily driven by the increase in CET1 capital. The average
leverage exposure decreased by £32bn to £1,111bn
(December 2019: £1,143bn) largely driven by the Prudential
Regulation Authority’s (PRA) early adoption of CRR II
settlement netting
|
Group funding and liquidity
●
|
The
liquidity pool was £327bn (December 2019: £211bn) and the
LCR remained significantly above the 100% regulatory requirement at
181% (December 2019: 160%), equivalent to a surplus of £143bn
(December 2019: £78bn). The increase in the liquidity pool,
LCR and surplus is driven by a 19% 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
£175.3bn (December 2019: £147.1bn). The Group issued
£6.6bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year to date. The Group is well advanced
in its MREL issuance plans, with a Barclays PLC MREL ratio of 32.8%
as at 30 September 2020 (December 2019: 31.2%) relative to an
estimated requirement (including requisite buffers) of c.29.9% by 1
January 2022
|
Other matters
●
|
As at
30 September 2020, the Group held a provision of £300m
relating to PPI. Since the provision increase to £1.4bn in
Q319, 96% of the items outstanding as at 30 September 2019 have
been resolved (including invalid items and claims from the Official
Receiver with whom we reached an agreement in Q320). Observations
from these resolved complaints continue to support the provision
level
|
Group outlook and targets
Outlook
remains uncertain and subject to change depending on the evolution
and persistence of the COVID-19 pandemic and the outcome of Brexit
negotiations
Income
|
●
|
Certain
headwinds to income in Barclays UK are expected to persist in 2021
including the low interest rate environment
|
●
|
The
drivers of CC&P income are showing signs of recovery but the
outlook remains uncertain
|
●
|
After a
strong Q320 YTD CIB performance driven by Markets, the franchise is
well positioned for the future
|
Impairment
|
●
|
Provided
macroeconomic assumptions remain consistent with expectations, we
expect the H220 impairment charge to be materially below that of
H120 and it is likely that the full year 2021 impairment charge
will be below that of 2020
|
Costs
|
●
|
The
Group expects FY20 costs, excluding litigation and conduct, to be
broadly flat versus FY19. However, the Group will be evaluating
actions to reduce structural costs, which could result in
additional charges, the timing and size of which remain to be
determined
|
Capital
|
●
|
The
Group remains in a strong capital position and is confident of its
capital generation capacity over time, acknowledging likely
headwinds to the CET1 ratio from procyclical effects on RWAs and
reduced benefit from transitional relief on IFRS 9
impairment
|
●
|
The
Board recognises the importance of capital returns to shareholders
and will provide an update on its policy and dividends at FY20
results
|
Targets
|
●
|
The
Group continues to target a RoTE of >10%1 and cost: income
ratio of <60% over time, but targets remain subject to change
depending on the evolution and persistence of the COVID-19 pandemic
and the outcome of Brexit negotiations
|
Tushar Morzaria, Group Finance Director
1
|
Excluding litigation and conduct.
|
Results by Business
Barclays UK
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
3,917
|
4,410
|
(11)
|
Net fee, commission and other income
|
804
|
984
|
(18)
|
Total income
|
4,721
|
5,394
|
(12)
|
Credit impairment charges
|
(1,297)
|
(522)
|
|
Net operating income
|
3,424
|
4,872
|
(30)
|
Operating expenses
|
(3,136)
|
(2,973)
|
(5)
|
Litigation and conduct
|
(36)
|
(1,524)
|
98
|
Total operating expenses
|
(3,172)
|
(4,497)
|
29
|
Other net income
|
12
|
-
|
|
Profit before tax
|
264
|
375
|
(30)
|
Attributable profit/(loss)
|
165
|
(157)
|
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
203.9
|
193.7
|
193.2
|
Total assets
|
294.5
|
257.8
|
257.9
|
Customer deposits at amortised cost
|
232.0
|
205.5
|
203.3
|
Loan: deposit ratio
|
91%
|
96%
|
97%
|
Risk weighted assets
|
76.2
|
74.9
|
76.8
|
Period end allocated tangible equity
|
10.0
|
10.3
|
10.4
|
|
|
|
|
|
Nine months ended
|
Nine months ended
|
|
Performance measures
|
30.09.20
|
30.09.19
|
|
Return on average allocated tangible equity
|
2.2%
|
(2.0%)
|
|
Average allocated tangible equity (£bn)
|
10.2
|
10.4
|
|
Cost: income ratio
|
67%
|
83%
|
|
Loan loss rate (bps)
|
81
|
35
|
|
Net interest margin
|
2.63%
|
3.10%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
Profit before tax
|
300
|
1,899
|
(84)
|
Attributable profit
|
190
|
1,332
|
(86)
|
Return on average allocated tangible equity
|
2.5%
|
17.2%
|
|
Cost: income ratio
|
66%
|
55%
|
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays UK
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
Personal Banking
|
2,627
|
2,945
|
(11)
|
Barclaycard Consumer UK
|
1,165
|
1,459
|
(20)
|
Business Banking
|
929
|
990
|
(6)
|
Total income
|
4,721
|
5,394
|
(12)
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
Personal Banking
|
(312)
|
(124)
|
|
Barclaycard Consumer UK
|
(803)
|
(364)
|
|
Business Banking
|
(182)
|
(34)
|
|
Total credit impairment charges
|
(1,297)
|
(522)
|
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
155.7
|
151.9
|
150.1
|
Barclaycard Consumer UK
|
10.7
|
14.7
|
14.9
|
Business Banking
|
37.5
|
27.1
|
28.2
|
Total loans and advances to customers at amortised
cost
|
203.9
|
193.7
|
193.2
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
Personal Banking
|
173.2
|
159.2
|
157.9
|
Barclaycard Consumer UK
|
0.1
|
-
|
-
|
Business Banking
|
58.7
|
46.3
|
45.4
|
Total customer deposits at amortised cost
|
232.0
|
205.5
|
203.3
|
Barclays International
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
2,668
|
2,976
|
(10)
|
Net trading income
|
5,548
|
3,270
|
70
|
Net fee, commission and other income
|
4,219
|
4,977
|
(15)
|
Total income
|
12,435
|
11,223
|
11
|
Credit impairment charges
|
(2,989)
|
(844)
|
|
Net operating income
|
9,446
|
10,379
|
(9)
|
Operating expenses
|
(6,632)
|
(6,923)
|
4
|
Litigation and conduct
|
(39)
|
(30)
|
(30)
|
Total operating expenses
|
(6,671)
|
(6,953)
|
4
|
Other net income
|
19
|
52
|
(63)
|
Profit before tax
|
2,794
|
3,478
|
(20)
|
Attributable profit
|
1,779
|
2,419
|
(26)
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
128.0
|
132.8
|
138.1
|
Trading portfolio assets
|
122.3
|
113.3
|
119.4
|
Derivative financial instrument assets
|
295.9
|
228.9
|
286.0
|
Financial assets at fair value through the income
statement
|
178.2
|
128.4
|
158.0
|
Cash collateral and settlement balances
|
121.8
|
79.4
|
112.5
|
Other assets
|
261.7
|
178.6
|
195.6
|
Total assets
|
1,107.9
|
861.4
|
1,009.6
|
Deposits at amortised cost
|
262.4
|
210.0
|
217.6
|
Derivative financial instrument liabilities
|
293.3
|
228.9
|
283.3
|
Loan: deposit ratio
|
49%
|
63%
|
63%
|
Risk weighted assets
|
224.7
|
209.2
|
223.1
|
Period end allocated tangible equity
|
30.5
|
29.6
|
31.4
|
|
|
|
|
|
Nine months ended
|
Nine months ended
|
|
Performance measures
|
30.09.20
|
30.09.19
|
|
Return on average allocated tangible equity
|
7.5%
|
10.3%
|
|
Average allocated tangible equity (£bn)
|
31.8
|
31.2
|
|
Cost: income ratio
|
54%
|
62%
|
|
Loan loss rate (bps)
|
300
|
80
|
|
Net interest margin
|
3.71%
|
4.00%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
Profit before tax
|
2,833
|
3,508
|
(19)
|
Attributable profit
|
1,808
|
2,445
|
(26)
|
Return on average allocated tangible equity
|
7.6%
|
10.4%
|
|
Cost: income ratio
|
53%
|
62%
|
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
Corporate and Investment Bank
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Income statement information
|
£m
|
£m
|
% Change
|
FICC
|
4,326
|
2,638
|
64
|
Equities
|
1,929
|
1,478
|
31
|
Markets
|
6,255
|
4,116
|
52
|
Advisory
|
329
|
574
|
(43)
|
Equity capital markets
|
369
|
273
|
35
|
Debt capital markets
|
1,279
|
1,108
|
15
|
Banking fees
|
1,977
|
1,955
|
1
|
Corporate lending
|
404
|
563
|
(28)
|
Transaction banking
|
1,202
|
1,283
|
(6)
|
Corporate
|
1,606
|
1,846
|
(13)
|
Total income
|
9,838
|
7,917
|
24
|
Credit impairment charges
|
(1,507)
|
(127)
|
|
Net operating income
|
8,331
|
7,790
|
7
|
Operating expenses
|
(5,086)
|
(5,191)
|
2
|
Litigation and conduct
|
(6)
|
(30)
|
80
|
Total operating expenses
|
(5,092)
|
(5,221)
|
2
|
Other net income
|
4
|
27
|
(85)
|
Profit before tax
|
3,243
|
2,596
|
25
|
Attributable profit
|
2,141
|
1,787
|
20
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
96.8
|
92.0
|
95.8
|
Trading portfolio assets
|
122.2
|
113.3
|
119.3
|
Derivative financial instrument assets
|
295.9
|
228.8
|
286.0
|
Financial assets at fair value through the income
statement
|
177.9
|
127.7
|
157.3
|
Cash collateral and settlement balances
|
121.0
|
78.5
|
111.6
|
Other assets
|
228.9
|
155.3
|
171.5
|
Total assets
|
1,042.7
|
795.6
|
941.5
|
Deposits at amortised cost
|
195.6
|
146.2
|
152.1
|
Derivative financial instrument liabilities
|
293.2
|
228.9
|
283.2
|
Risk weighted assets
|
193.3
|
171.5
|
184.9
|
|
|
|
|
|
Nine months ended
|
Nine months ended
|
|
Performance measures
|
30.09.20
|
30.09.19
|
|
Return on average allocated tangible equity
|
10.5%
|
9.2%
|
|
Average allocated tangible equity (£bn)
|
27.2
|
25.9
|
|
Cost: income ratio
|
52%
|
66%
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
Profit before tax
|
3,249
|
2,626
|
24
|
Attributable profit
|
2,145
|
1,813
|
18
|
Return on average allocated tangible equity
|
10.5%
|
9.3%
|
|
Cost: income ratio
|
52%
|
66%
|
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
Consumer, Cards and Payments
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
1,694
|
2,105
|
(20)
|
Net fee, commission, trading and other income
|
903
|
1,201
|
(25)
|
Total income
|
2,597
|
3,306
|
(21)
|
Credit impairment charges
|
(1,482)
|
(717)
|
|
Net operating income
|
1,115
|
2,589
|
(57)
|
Operating expenses
|
(1,546)
|
(1,732)
|
11
|
Litigation and conduct
|
(33)
|
-
|
|
Total operating expenses
|
(1,579)
|
(1,732)
|
9
|
Other net income
|
15
|
25
|
(40)
|
(Loss)/profit before tax
|
(449)
|
882
|
|
Attributable (loss)/profit
|
(362)
|
632
|
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
31.2
|
40.8
|
42.3
|
Total assets
|
65.2
|
65.8
|
68.1
|
Deposits at amortised cost
|
66.8
|
63.8
|
65.5
|
Risk weighted assets
|
31.4
|
37.7
|
38.2
|
|
|
|
|
|
Nine months ended
|
Nine months ended
|
|
Performance measures
|
30.09.20
|
30.09.19
|
|
Return on average allocated tangible equity
|
(10.6%)
|
15.8%
|
|
Average allocated tangible equity (£bn)
|
4.6
|
5.3
|
|
Cost: income ratio
|
61%
|
52%
|
|
Loan loss rate (bps)
|
577
|
213
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
(Loss)/profit before tax
|
(416)
|
882
|
|
Attributable (loss)/profit
|
(337)
|
632
|
|
Return on average allocated tangible equity
|
(9.9%)
|
15.8%
|
|
Cost: income ratio
|
60%
|
52%
|
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Head Office
|
Nine months ended
|
Nine months ended
|
|
30.09.20
|
30.09.19
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
(307)
|
(323)
|
5
|
Net fee, commission and other income
|
(24)
|
37
|
|
Total income
|
(331)
|
(286)
|
(16)
|
Credit impairment charges
|
(60)
|
(23)
|
|
Net operating income
|
(391)
|
(309)
|
(27)
|
Operating expenses
|
(186)
|
(155)
|
(20)
|
Litigation and conduct
|
(31)
|
(128)
|
76
|
Total operating expenses
|
(217)
|
(283)
|
23
|
Other net expenses
|
(31)
|
(1)
|
|
Loss before tax
|
(639)
|
(593)
|
(8)
|
Attributable loss
|
(638)
|
(482)
|
(32)
|
|
|
|
|
|
As at 30.09.20
|
As at 31.12.19
|
As at 30.09.19
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Total assets
|
19.3
|
21.0
|
22.9
|
Risk weighted assets
|
9.8
|
11.0
|
13.4
|
Period end allocated tangible equity
|
7.1
|
5.6
|
5.5
|
|
|
|
|
|
Nine months ended
|
Nine months ended
|
|
Performance measures
|
30.09.20
|
30.09.19
|
|
Average allocated tangible equity (£bn)
|
6.5
|
5.0
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
% Change
|
Loss before tax
|
(608)
|
(465)
|
(31)
|
Attributable loss
|
(620)
|
(386)
|
(61)
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Net interest income
|
2,055
|
1,892
|
2,331
|
|
2,344
|
2,445
|
2,360
|
2,258
|
|
2,296
|
Net fee, commission and other income
|
3,149
|
3,446
|
3,952
|
|
2,957
|
3,096
|
3,178
|
2,994
|
|
2,777
|
Total income
|
5,204
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
5,073
|
Credit impairment charges
|
(608)
|
(1,623)
|
(2,115)
|
|
(523)
|
(461)
|
(480)
|
(448)
|
|
(643)
|
Net operating income
|
4,596
|
3,715
|
4,168
|
|
4,778
|
5,080
|
5,058
|
4,804
|
|
4,430
|
Operating costs
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,308)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,624)
|
UK bank levy
|
-
|
-
|
-
|
|
(226)
|
-
|
-
|
-
|
|
(269)
|
Operating expenses
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(3,893)
|
Guaranteed Minimum Pensions (GMP) charge
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(140)
|
Litigation and conduct
|
(76)
|
(20)
|
(10)
|
|
(167)
|
(1,568)
|
(53)
|
(61)
|
|
(60)
|
Total operating expenses
|
(3,467)
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
(4,093)
|
Other net income/(expenses)
|
18
|
(26)
|
8
|
|
20
|
27
|
27
|
(3)
|
|
37
|
Profit before tax
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
Tax charge
|
(328)
|
(42)
|
(71)
|
|
(189)
|
(269)
|
(297)
|
(248)
|
|
(75)
|
Profit/(loss) after tax
|
819
|
317
|
842
|
|
908
|
(23)
|
1,234
|
1,235
|
|
299
|
Non-controlling interests
|
(4)
|
(21)
|
(16)
|
|
(42)
|
(4)
|
(17)
|
(17)
|
|
(83)
|
Other equity instrument holders
|
(204)
|
(206)
|
(221)
|
|
(185)
|
(265)
|
(183)
|
(180)
|
|
(230)
|
Attributable profit/(loss)
|
611
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
5.1%
|
0.7%
|
5.1%
|
|
5.9%
|
(2.4%)
|
9.0%
|
9.2%
|
|
(0.1%)
|
Average tangible shareholders' equity (£bn)
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
44.3
|
Cost: income ratio
|
67%
|
62%
|
52%
|
|
70%
|
88%
|
64%
|
63%
|
|
81%
|
Loan loss rate (bps)
|
69
|
179
|
223
|
|
60
|
52
|
56
|
54
|
|
77
|
Basic earnings/(loss) per share
|
3.5p
|
0.5p
|
3.5p
|
|
3.9p
|
(1.7p)
|
6.0p
|
6.1p
|
|
(0.1p)
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit before tax
|
1,223
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
434
|
Attributable profit
|
668
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
48
|
Return on average tangible shareholders' equity
|
5.5%
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
0.4%
|
Cost: income ratio
|
65%
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
79%
|
Basic earnings per share
|
3.9p
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
0.3p
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital
management2
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Loans and advances at amortised cost
|
344.4
|
354.9
|
374.1
|
|
339.1
|
345.1
|
339.3
|
330.7
|
|
326.4
|
Total assets
|
1,421.7
|
1,385.1
|
1,444.3
|
|
1,140.2
|
1,290.4
|
1,232.8
|
1,193.5
|
|
1,133.3
|
Deposits at amortised cost
|
494.6
|
466.9
|
470.7
|
|
415.8
|
420.6
|
413.6
|
412.7
|
|
394.8
|
Tangible net asset value per share
|
275p
|
284p
|
284p
|
|
262p
|
274p
|
275p
|
266p
|
|
262p
|
Common equity tier 1 ratio
|
14.6%
|
14.2%
|
13.1%
|
|
13.8%
|
13.4%
|
13.4%
|
13.0%
|
|
13.2%
|
Common equity tier 1 capital
|
45.5
|
45.4
|
42.5
|
|
40.8
|
41.9
|
42.9
|
41.4
|
|
41.1
|
Risk weighted assets
|
310.7
|
319.0
|
325.6
|
|
295.1
|
313.3
|
319.1
|
319.7
|
|
311.9
|
Average UK leverage ratio
|
5.1%
|
4.7%
|
4.5%
|
|
4.5%
|
4.6%
|
4.7%
|
4.6%
|
|
4.5%
|
Average UK leverage exposure
|
1,111.1
|
1,148.7
|
1,176.2
|
|
1,142.8
|
1,171.2
|
1,134.6
|
1,105.5
|
|
1,110.0
|
UK leverage ratio
|
5.2%
|
5.2%
|
4.5%
|
|
5.1%
|
4.8%
|
5.1%
|
4.9%
|
|
5.1%
|
UK leverage exposure
|
1,095.1
|
1,071.1
|
1,178.7
|
|
1,007.7
|
1,099.8
|
1,079.4
|
1,065.0
|
|
998.6
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
Group liquidity (£bn)
|
327
|
298
|
237
|
|
211
|
226
|
238
|
232
|
|
227
|
Liquidity coverage ratio
|
181%
|
186%
|
155%
|
|
160%
|
151%
|
156%
|
160%
|
|
169%
|
Loan: deposit ratio
|
70%
|
76%
|
79%
|
|
82%
|
82%
|
82%
|
80%
|
|
83%
|
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
2
|
Refer to pages 29 to 35 for further information on how capital,
RWAs and leverage are calculated.
|
Quarterly Results by Business
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Net interest income
|
1,280
|
1,225
|
1,412
|
|
1,478
|
1,503
|
1,438
|
1,469
|
|
1,513
|
Net fee, commission and other income
|
270
|
242
|
292
|
|
481
|
343
|
333
|
308
|
|
350
|
Total income
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
Credit impairment charges
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
Net operating income
|
1,317
|
884
|
1,223
|
|
1,769
|
1,745
|
1,541
|
1,586
|
|
1,567
|
Operating costs
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,023)
|
(952)
|
(1,022)
|
(999)
|
|
(1,114)
|
UK bank levy
|
-
|
-
|
-
|
|
(41)
|
-
|
-
|
-
|
|
(46)
|
Operating expenses
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
(1,160)
|
Litigation and conduct
|
(25)
|
(6)
|
(5)
|
|
(58)
|
(1,480)
|
(41)
|
(3)
|
|
(15)
|
Total operating expenses
|
(1,120)
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
(1,175)
|
Other net (expenses)/income
|
(1)
|
13
|
-
|
|
-
|
-
|
(1)
|
1
|
|
(2)
|
Profit/(loss) before tax
|
196
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
390
|
Attributable profit/loss
|
113
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
241
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Loans and advances to customers at amortised cost
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
Total assets
|
294.5
|
287.6
|
267.5
|
|
257.8
|
257.9
|
259.0
|
253.1
|
|
249.7
|
Customer deposits at amortised cost
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
Loan: deposit ratio
|
91%
|
92%
|
96%
|
|
96%
|
97%
|
97%
|
96%
|
|
96%
|
Risk weighted assets
|
76.2
|
77.9
|
77.7
|
|
74.9
|
76.8
|
76.2
|
76.6
|
|
75.2
|
Period end allocated tangible equity
|
10.0
|
10.3
|
10.3
|
|
10.3
|
10.4
|
10.3
|
10.5
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
4.5%
|
(4.8%)
|
6.9%
|
|
17.0%
|
(34.9%)
|
12.7%
|
16.3%
|
|
9.6%
|
Average allocated tangible equity (£bn)
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
10.1
|
Cost: income ratio
|
72%
|
70%
|
60%
|
|
57%
|
132%
|
60%
|
56%
|
|
63%
|
Loan loss rate (bps)
|
43
|
111
|
96
|
|
38
|
20
|
47
|
40
|
|
61
|
Net interest margin
|
2.51%
|
2.48%
|
2.91%
|
|
3.03%
|
3.10%
|
3.05%
|
3.18%
|
|
3.20%
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit/(loss) before tax
|
221
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
405
|
Attributable profit/(loss)
|
130
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
253
|
Return on average allocated tangible equity
|
5.2%
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
10.1%
|
Cost: income ratio
|
71%
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
62%
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays UK
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Analysis of total income
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Personal Banking
|
833
|
826
|
968
|
|
1,064
|
1,035
|
946
|
964
|
|
998
|
Barclaycard Consumer UK
|
362
|
367
|
436
|
|
533
|
472
|
497
|
490
|
|
522
|
Business Banking
|
355
|
274
|
300
|
|
362
|
339
|
328
|
323
|
|
343
|
Total income
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(48)
|
(130)
|
(134)
|
|
(71)
|
(36)
|
(36)
|
(52)
|
|
(44)
|
Barclaycard Consumer UK
|
(106)
|
(396)
|
(301)
|
|
(108)
|
(49)
|
(175)
|
(140)
|
|
(250)
|
Business Banking
|
(79)
|
(57)
|
(46)
|
|
(11)
|
(16)
|
(19)
|
1
|
|
(2)
|
Total credit impairment charges
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
(296)
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Personal Banking
|
155.7
|
154.9
|
153.4
|
|
151.9
|
150.1
|
147.3
|
145.9
|
|
146.0
|
Barclaycard Consumer UK
|
10.7
|
11.5
|
13.6
|
|
14.7
|
14.9
|
15.1
|
15.0
|
|
15.3
|
Business Banking
|
37.5
|
35.6
|
28.7
|
|
27.1
|
28.2
|
26.7
|
26.6
|
|
26.3
|
Total loans and advances to customers at amortised
cost
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
187.6
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
173.2
|
169.6
|
161.4
|
|
159.2
|
157.9
|
156.3
|
154.1
|
|
154.0
|
Barclaycard Consumer UK
|
0.1
|
0.1
|
-
|
|
-
|
-
|
-
|
-
|
|
-
|
Business Banking
|
58.7
|
56.0
|
46.1
|
|
46.3
|
45.4
|
44.6
|
43.2
|
|
43.3
|
Total customer deposits at amortised cost
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
197.3
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Net interest income
|
823
|
847
|
998
|
|
965
|
1,059
|
1,017
|
900
|
|
984
|
Net trading income
|
1,528
|
1,660
|
2,360
|
|
929
|
1,110
|
1,016
|
1,144
|
|
837
|
Net fee, commission and other income
|
1,430
|
1,503
|
1,286
|
|
1,558
|
1,581
|
1,870
|
1,526
|
|
1,400
|
Total income
|
3,781
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
3,221
|
Credit impairment charges
|
(370)
|
(1,010)
|
(1,609)
|
|
(329)
|
(352)
|
(247)
|
(245)
|
|
(354)
|
Net operating income
|
3,411
|
3,000
|
3,035
|
|
3,123
|
3,398
|
3,656
|
3,325
|
|
2,867
|
Operating costs
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,240)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,441)
|
UK bank levy
|
-
|
-
|
-
|
|
(174)
|
-
|
-
|
-
|
|
(210)
|
Operating expenses
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,651)
|
Litigation and conduct
|
(28)
|
(11)
|
-
|
|
(86)
|
-
|
(11)
|
(19)
|
|
(33)
|
Total operating expenses
|
(2,255)
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
(2,684)
|
Other net income
|
9
|
4
|
6
|
|
17
|
21
|
13
|
18
|
|
32
|
Profit before tax
|
1,165
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
215
|
Attributable profit/(loss)
|
782
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Loans and advances at amortised cost
|
128.0
|
138.1
|
167.0
|
|
132.8
|
138.1
|
134.8
|
130.9
|
|
127.2
|
Trading portfolio assets
|
122.3
|
109.5
|
101.6
|
|
113.3
|
119.4
|
120.0
|
117.2
|
|
104.0
|
Derivative financial instrument assets
|
295.9
|
306.8
|
341.5
|
|
228.9
|
286.0
|
243.8
|
217.3
|
|
222.1
|
Financial assets at fair value through the income
statement
|
178.2
|
154.3
|
188.4
|
|
128.4
|
158.0
|
154.7
|
153.5
|
|
144.7
|
Cash collateral and settlement balances
|
121.8
|
130.8
|
153.2
|
|
79.4
|
112.5
|
101.3
|
97.8
|
|
74.3
|
Other assets
|
261.7
|
236.3
|
201.5
|
|
178.6
|
195.6
|
196.8
|
202.3
|
|
189.8
|
Total assets
|
1,107.9
|
1,075.8
|
1,153.2
|
|
861.4
|
1,009.6
|
951.4
|
919.0
|
|
862.1
|
Deposits at amortised cost
|
262.4
|
241.2
|
263.3
|
|
210.0
|
217.6
|
212.0
|
215.5
|
|
197.2
|
Derivative financial instrument liabilities
|
293.3
|
307.6
|
338.8
|
|
228.9
|
283.3
|
243.0
|
213.5
|
|
219.6
|
Loan: deposit ratio
|
49%
|
57%
|
63%
|
|
63%
|
63%
|
64%
|
61%
|
|
65%
|
Risk weighted assets
|
224.7
|
231.2
|
237.9
|
|
209.2
|
223.1
|
214.8
|
216.1
|
|
210.7
|
Period end allocated tangible equity
|
30.5
|
31.6
|
33.1
|
|
29.6
|
31.4
|
30.2
|
30.6
|
|
29.9
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.2%
|
5.6%
|
6.8%
|
|
5.1%
|
9.9%
|
10.7%
|
10.4%
|
|
(0.3%)
|
Average allocated tangible equity (£bn)
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
31.3
|
Cost: income ratio
|
60%
|
55%
|
48%
|
|
72%
|
61%
|
63%
|
62%
|
|
83%
|
Loan loss rate (bps)
|
112
|
284
|
377
|
|
96
|
99
|
72
|
73
|
|
107
|
Net interest margin
|
3.79%
|
3.43%
|
3.93%
|
|
4.29%
|
4.10%
|
3.91%
|
3.99%
|
|
3.98%
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit before tax
|
1,193
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
248
|
Attributable profit
|
803
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
13
|
Return on average allocated tangible equity
|
10.5%
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
0.2%
|
Cost: income ratio
|
59%
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
82%
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
FICC
|
1,000
|
1,468
|
1,858
|
|
726
|
816
|
920
|
902
|
|
570
|
Equities
|
691
|
674
|
564
|
|
409
|
494
|
517
|
467
|
|
375
|
Markets
|
1,691
|
2,142
|
2,422
|
|
1,135
|
1,310
|
1,437
|
1,369
|
|
945
|
Advisory
|
90
|
84
|
155
|
|
202
|
221
|
221
|
132
|
|
242
|
Equity capital markets
|
122
|
185
|
62
|
|
56
|
86
|
104
|
83
|
|
53
|
Debt capital markets
|
398
|
463
|
418
|
|
322
|
381
|
373
|
354
|
|
330
|
Banking fees
|
610
|
732
|
635
|
|
580
|
688
|
698
|
569
|
|
625
|
Corporate lending
|
232
|
61
|
111
|
|
202
|
195
|
216
|
152
|
|
243
|
Transaction banking
|
372
|
381
|
449
|
|
397
|
424
|
444
|
415
|
|
412
|
Corporate
|
604
|
442
|
560
|
|
599
|
619
|
660
|
567
|
|
655
|
Other
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(74)
|
Total income
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
2,151
|
Credit impairment charges
|
(187)
|
(596)
|
(724)
|
|
(30)
|
(31)
|
(44)
|
(52)
|
|
(35)
|
Net operating income
|
2,718
|
2,720
|
2,893
|
|
2,284
|
2,586
|
2,751
|
2,453
|
|
2,116
|
Operating costs
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,691)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(1,835)
|
UK bank levy
|
-
|
-
|
-
|
|
(156)
|
-
|
-
|
-
|
|
(188)
|
Operating expenses
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(2,023)
|
Litigation and conduct
|
(3)
|
(3)
|
-
|
|
(79)
|
(4)
|
(7)
|
(19)
|
|
(23)
|
Total operating expenses
|
(1,719)
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
(2,046)
|
Other net income
|
1
|
3
|
-
|
|
1
|
12
|
3
|
12
|
|
15
|
Profit before tax
|
1,000
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
85
|
Attributable profit/(loss)
|
627
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
(84)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Loans and advances at amortised cost
|
96.8
|
104.9
|
128.2
|
|
92.0
|
95.8
|
92.1
|
90.6
|
|
86.4
|
Trading portfolio assets
|
122.2
|
109.3
|
101.5
|
|
113.3
|
119.3
|
119.9
|
117.2
|
|
104.0
|
Derivative financial instruments assets
|
295.9
|
306.7
|
341.4
|
|
228.8
|
286.0
|
243.7
|
217.3
|
|
222.1
|
Financial assets at fair value through the income
statement
|
177.9
|
153.7
|
187.8
|
|
127.7
|
157.3
|
154.1
|
152.9
|
|
144.2
|
Cash collateral and settlement balances
|
121.0
|
129.7
|
152.2
|
|
78.5
|
111.6
|
100.4
|
96.9
|
|
73.4
|
Other assets
|
228.9
|
205.5
|
171.4
|
|
155.3
|
171.5
|
168.1
|
163.2
|
|
160.4
|
Total assets
|
1,042.7
|
1,009.8
|
1,082.5
|
|
795.6
|
941.5
|
878.3
|
838.1
|
|
790.5
|
Deposits at amortised cost
|
195.6
|
173.9
|
198.4
|
|
146.2
|
152.1
|
145.4
|
151.4
|
|
136.3
|
Derivative financial instrument liabilities
|
293.2
|
307.6
|
338.7
|
|
228.9
|
283.2
|
242.9
|
213.5
|
|
219.6
|
Risk weighted assets
|
193.3
|
198.3
|
201.7
|
|
171.5
|
184.9
|
175.9
|
176.6
|
|
170.9
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
9.5%
|
9.6%
|
12.5%
|
|
3.0%
|
9.1%
|
9.2%
|
9.3%
|
|
(1.3%)
|
Average allocated tangible equity (£bn)
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
26.0
|
Cost: income ratio
|
59%
|
51%
|
47%
|
|
83%
|
66%
|
67%
|
65%
|
|
95%
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit before tax
|
1,003
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
108
|
Attributable profit/(loss)
|
629
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
(57)
|
Return on average allocated tangible equity
|
9.5%
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
(0.9%)
|
Cost: income ratio
|
59%
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
94%
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Net interest income
|
518
|
513
|
663
|
|
717
|
720
|
720
|
665
|
|
664
|
Net fee, commission, trading and other income
|
358
|
181
|
364
|
|
421
|
413
|
388
|
400
|
|
406
|
Total income
|
876
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
1,070
|
Credit impairment charges
|
(183)
|
(414)
|
(885)
|
|
(299)
|
(321)
|
(203)
|
(193)
|
|
(319)
|
Net operating income
|
693
|
280
|
142
|
|
839
|
812
|
905
|
872
|
|
751
|
Operating costs
|
(511)
|
(506)
|
(529)
|
|
(549)
|
(570)
|
(575)
|
(587)
|
|
(606)
|
UK bank levy
|
-
|
-
|
-
|
|
(18)
|
-
|
-
|
-
|
|
(22)
|
Operating expenses
|
(511)
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
(628)
|
Litigation and conduct
|
(25)
|
(8)
|
-
|
|
(7)
|
4
|
(4)
|
-
|
|
(10)
|
Total operating expenses
|
(536)
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
(638)
|
Other net income
|
8
|
1
|
6
|
|
16
|
9
|
10
|
6
|
|
17
|
Profit/(loss) before tax
|
165
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
130
|
Attributable profit/(loss)
|
155
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Loans and advances at amortised cost
|
31.2
|
33.2
|
38.8
|
|
40.8
|
42.3
|
42.7
|
40.3
|
|
40.8
|
Total assets
|
65.2
|
66.0
|
70.7
|
|
65.8
|
68.1
|
73.1
|
80.9
|
|
71.6
|
Deposits at amortised cost
|
66.8
|
67.3
|
64.9
|
|
63.8
|
65.5
|
66.6
|
64.1
|
|
60.9
|
Risk weighted assets
|
31.4
|
32.9
|
36.2
|
|
37.7
|
38.2
|
38.9
|
39.5
|
|
39.8
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.7%
|
(20.2%)
|
(23.5%)
|
|
15.9%
|
14.2%
|
17.8%
|
15.4%
|
|
4.8%
|
Average allocated tangible equity (£bn)
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
5.3
|
Cost: income ratio
|
61%
|
74%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
60%
|
Loan loss rate (bps)
|
211
|
455
|
846
|
|
273
|
283
|
180
|
182
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit/(loss) before tax
|
190
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
140
|
Attributable profit/(loss)
|
174
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
70
|
Return on average allocated tangible equity
|
16.5%
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
5.4%
|
Cost: income ratio
|
58%
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
59%
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Income statement information
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Net interest income
|
(48)
|
(180)
|
(79)
|
|
(99)
|
(117)
|
(95)
|
(111)
|
|
(201)
|
Net fee, commission and other income
|
(79)
|
41
|
14
|
|
(11)
|
62
|
(41)
|
16
|
|
190
|
Total income
|
(127)
|
(139)
|
(65)
|
|
(110)
|
(55)
|
(136)
|
(95)
|
|
(11)
|
Credit impairment (charges)/releases
|
(5)
|
(30)
|
(25)
|
|
(4)
|
(8)
|
(3)
|
(12)
|
|
7
|
Net operating expenses
|
(132)
|
(169)
|
(90)
|
|
(114)
|
(63)
|
(139)
|
(107)
|
|
(4)
|
Operating costs
|
(69)
|
(106)
|
(11)
|
|
(45)
|
(59)
|
(44)
|
(52)
|
|
(69)
|
UK bank levy
|
-
|
-
|
-
|
|
(11)
|
-
|
-
|
-
|
|
(13)
|
Operating expenses
|
(69)
|
(106)
|
(11)
|
|
(56)
|
(59)
|
(44)
|
(52)
|
|
(82)
|
GMP charge
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
(140)
|
Litigation and conduct
|
(23)
|
(3)
|
(5)
|
|
(23)
|
(88)
|
(1)
|
(39)
|
|
(12)
|
Total operating expenses
|
(92)
|
(109)
|
(16)
|
|
(79)
|
(147)
|
(45)
|
(91)
|
|
(234)
|
Other net income/(expenses)
|
10
|
(43)
|
2
|
|
3
|
6
|
15
|
(22)
|
|
7
|
Loss before tax
|
(214)
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
(231)
|
Attributable loss
|
(284)
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
(234)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Total assets
|
19.3
|
21.7
|
23.6
|
|
21.0
|
22.9
|
22.4
|
21.4
|
|
21.5
|
Risk weighted assets
|
9.8
|
9.9
|
10.0
|
|
11.0
|
13.4
|
28.1
|
27.0
|
|
26.0
|
Period end allocated tangible equity
|
7.1
|
7.4
|
6.0
|
|
5.6
|
5.5
|
7.0
|
4.5
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
7.6
|
6.4
|
5.6
|
|
5.2
|
5.8
|
4.8
|
4.3
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Loss before tax
|
(191)
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
(219)
|
Attributable loss
|
(265)
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
(218)
|
1
|
Refer to pages 40 to 49 for further information and calculations of
performance measures excluding litigation and conduct.
|
Performance Management
Margins and balances
|
|
|
|
|
|
|
|
Nine months ended 30.09.20
|
Nine months ended 30.09.19
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
3,917
|
199,048
|
2.63
|
4,410
|
189,994
|
3.10
|
Barclays International1
|
2,686
|
96,799
|
3.71
|
2,985
|
99,862
|
4.00
|
Total Barclays UK and Barclays International
|
6,603
|
295,847
|
2.98
|
7,395
|
289,856
|
3.41
|
Other2
|
(325)
|
|
|
(332)
|
|
|
Total Barclays Group
|
6,278
|
|
|
7,063
|
|
|
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 September 2020 was £181bn, with an average duration
of 2.5 to 3 years. Group net interest income includes gross
structural hedge contributions of £1.3bn (Q319 YTD:
£1.4bn)
and net
structural hedge contributions of £0.9bn (Q319 YTD:
£0.4bn). Gross structural hedge contributions represent the
absolute level of interest earned from the fixed receipts on the
basket of swaps in the structural hedge, while the net structural
hedge
contributions
represent the net interest earned on the difference between the
structural hedge rate and prevailing floating rates.
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Three months ended 30.09.20
|
£m
|
£m
|
%
|
Barclays UK
|
1,280
|
203,089
|
2.51
|
Barclays International1
|
838
|
88,032
|
3.79
|
Total Barclays UK and Barclays International
|
2,118
|
291,121
|
2.89
|
|
|
|
|
Three months ended 30.06.20
|
|
|
|
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
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
Credit Risk
Loans and advances at amortised cost by stage
The
table below presents an analysis of loans and advances at amortised
cost by gross exposure, impairment allowance, impairment charge and
coverage ratio by stage allocation and business segment as at 30
September 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 September 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 30.09.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
149,393
|
25,846
|
2,704
|
177,943
|
|
329
|
1,563
|
1,150
|
3,042
|
174,901
|
Barclays International
|
16,866
|
5,366
|
1,691
|
23,923
|
|
412
|
1,296
|
1,275
|
2,983
|
20,940
|
Head Office
|
4,519
|
668
|
871
|
6,058
|
|
8
|
53
|
352
|
413
|
5,645
|
Total Barclays Group retail
|
170,778
|
31,880
|
5,266
|
207,924
|
|
749
|
2,912
|
2,777
|
6,438
|
201,486
|
Barclays UK
|
30,540
|
3,887
|
1,138
|
35,565
|
|
58
|
98
|
143
|
299
|
35,266
|
Barclays International
|
74,789
|
31,775
|
2,422
|
108,986
|
|
129
|
793
|
1,002
|
1,924
|
107,062
|
Head Office
|
595
|
-
|
34
|
629
|
|
-
|
-
|
33
|
33
|
596
|
Total Barclays Group
wholesale1
|
105,924
|
35,662
|
3,594
|
145,180
|
|
187
|
891
|
1,178
|
2,256
|
142,924
|
Total loans and advances at amortised cost
|
276,702
|
67,542
|
8,860
|
353,104
|
|
936
|
3,803
|
3,955
|
8,694
|
344,410
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
282,551
|
65,407
|
1,500
|
349,458
|
|
138
|
751
|
46
|
935
|
348,523
|
Total3
|
559,253
|
132,949
|
10,360
|
702,562
|
|
1,074
|
4,554
|
4,001
|
9,629
|
692,933
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.20
|
|
Period ended 30.09.20
|
|
|
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
|
6.0
|
42.5
|
1.7
|
|
|
966
|
|
73
|
|
Barclays International
|
2.4
|
24.2
|
75.4
|
12.5
|
|
|
1,423
|
|
795
|
|
Head Office
|
0.2
|
7.9
|
40.4
|
6.8
|
|
|
60
|
|
132
|
|
Total Barclays Group retail
|
0.4
|
9.1
|
52.7
|
3.1
|
|
|
2,449
|
|
157
|
|
Barclays UK
|
0.2
|
2.5
|
12.6
|
0.8
|
|
|
174
|
|
65
|
|
Barclays International
|
0.2
|
2.5
|
41.4
|
1.8
|
|
|
954
|
|
117
|
|
Head Office
|
-
|
-
|
97.1
|
5.2
|
|
|
-
|
|
-
|
|
Total Barclays Group
wholesale1
|
0.2
|
2.5
|
32.8
|
1.6
|
|
|
1,128
|
|
104
|
|
Total loans and advances at amortised cost
|
0.3
|
5.6
|
44.6
|
2.5
|
|
|
3,577
|
|
135
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
-
|
1.1
|
3.1
|
0.3
|
|
|
627
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
142
|
|
|
|
Total4
|
0.2
|
3.4
|
38.6
|
1.4
|
|
|
4,346
|
|
|
|
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 £701m of balances reported as wholesale
loans on page 25 in the Loans and advances at amortised cost by
product disclosure.
|
2
|
Excludes loan commitments and financial guarantees of £8.6bn
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
£197.8bn and impairment allowance of £161m. This
comprises £13m ECL on £192.1bn stage 1 assets, £38m
on £5.6bn stage 2 fair value through other comprehensive
income assets, other assets, cash collateral and settlement
balances and £110m on £112m stage 3 other
assets.
|
4
|
Q320 YTD loan impairment charge represents nine months of
impairment charge, annualised to calculate the loan loss rate. The
loan loss rate for Q320 YTD is 164bps after applying the total
impairment charge of £4,346m.
|
|
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 25 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 30.09.20
|
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
|
135,995
|
17,262
|
1,843
|
969
|
20,074
|
2,234
|
158,303
|
Credit cards, unsecured loans and other retail lending
|
33,815
|
11,005
|
483
|
273
|
11,761
|
3,344
|
48,920
|
Wholesale loans
|
106,892
|
31,887
|
3,275
|
545
|
35,707
|
3,282
|
145,881
|
Total
|
276,702
|
60,154
|
5,601
|
1,787
|
67,542
|
8,860
|
353,104
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
20
|
62
|
11
|
12
|
85
|
392
|
497
|
Credit cards, unsecured loans and other retail lending
|
754
|
2,461
|
164
|
173
|
2,798
|
2,423
|
5,975
|
Wholesale loans
|
162
|
821
|
92
|
7
|
920
|
1,140
|
2,222
|
Total
|
936
|
3,344
|
267
|
192
|
3,803
|
3,955
|
8,694
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
135,975
|
17,200
|
1,832
|
957
|
19,989
|
1,842
|
157,806
|
Credit cards, unsecured loans and other retail lending
|
33,061
|
8,544
|
319
|
100
|
8,963
|
921
|
42,945
|
Wholesale loans
|
106,730
|
31,066
|
3,183
|
538
|
34,787
|
2,142
|
143,659
|
Total
|
275,766
|
56,810
|
5,334
|
1,595
|
63,739
|
4,905
|
344,410
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
-
|
0.4
|
0.6
|
1.2
|
0.4
|
17.5
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
2.2
|
22.4
|
34.0
|
63.4
|
23.8
|
72.5
|
12.2
|
Wholesale loans
|
0.2
|
2.6
|
2.8
|
1.3
|
2.6
|
34.7
|
1.5
|
Total
|
0.3
|
5.6
|
4.8
|
10.7
|
5.6
|
44.6
|
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
|
The
number of customers who remain on payment holidays granted in
response to the pandemic continues to fall. Across the
Group’s material portfolios as at 30 September 2020,
c.£4.4bn of UK mortgage, c.£0.1bn of UK credit card and
c.£0.1bn of US credit card lending remained on payment
holidays.
Measurement uncertainty
Scenarios
used to calculate the Group’s ECL charge were reviewed and
updated in September 2020 with the Baseline scenario reflecting the
latest consensus economic forecasts. Changes in the consensus
Baseline forecasts since June 2020 include a more prolonged period
of high unemployment in the UK but faster reduction in US
unemployment levels in the short term. Economic growth in the UK
and the US begins to recover in 2021 in the downside scenarios. In
the upside scenarios, the strong rebound in UK and US GDP continues
into the end of 2020, following the bounce-back in growth in Q320
and, subsequently, the projections stay above the year on year
growth rates seen in the Baseline for a prolonged period of time
before finally reverting to the long term run rate. This reflects
the assumption of a potential vaccine being available in the first
half of 2021 and pent up savings being deployed into a more certain
consumer environment to drive significant growth. Scenario weights
have been updated to reflect the latest economics.
As a
result of government and Barclays support measures put in place to
support customers and clients, significant credit deterioration has
not yet occurred. This support is causing a timing difference
between economic drivers such as GDP and unemployment rates, and
the resultant impairment defaults. This is expected to delay the
effects of distress and therefore increases uncertainty on the
timing of the stress and the realisation of defaults. The Q320
review did not identify any new information to substantiate a
change in the level of expected credit losses on non-defaulted
positions from that recognised at H120. This has led to the
maintenance of coverage levels and staging mix whilst recognising
the associated ECL charge on defaults that have arisen in the
quarter.
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 consensus macroeconomic variables used in
the Q320 Baseline scenario and the probability weights applied to
each scenario.
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
2020
|
2021
|
2022
|
Expected
Worst Point
|
As at 30.09.20
|
%
|
%
|
%
|
%
|
UK GDP1
|
(10.3)
|
6.2
|
3.3
|
(59.8)
|
UK unemployment2
|
5.5
|
6.9
|
6.2
|
8.1
|
UK HPI3
|
0.4
|
1.5
|
1.4
|
(0.9)
|
UK bank rate
|
0.2
|
(0.1)
|
(0.1)
|
(0.1)
|
US GDP1
|
(4.4)
|
3.8
|
3.0
|
(32.9)
|
US unemployment4
|
8.4
|
6.9
|
5.6
|
13.0
|
US HPI5
|
1.8
|
1.8
|
2.9
|
0.7
|
US federal funds rate
|
0.5
|
0.3
|
0.3
|
0.1
|
|
|
|
|
|
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
|
1
|
Average Real GDP seasonally adjusted change in year; 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.
|
Scenario probability weighting
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
%
|
%
|
%
|
%
|
%
|
As at 30.09.20
|
|
|
|
|
|
Scenario probability weighting
|
20.1
|
21.6
|
23.5
|
19.2
|
15.6
|
As at 30.06.20
|
|
|
|
|
|
Scenario probability weighting
|
20.3
|
22.4
|
25.4
|
17.5
|
14.4
|
As at 31.12.19
|
|
|
|
|
|
Scenario probability weighting
|
10.1
|
23.1
|
40.8
|
22.7
|
3.3
|
Treasury and Capital Risk
Composition of the Group liquidity pool
|
|
As at 30.09.20
|
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
|
248
|
243
|
-
|
-
|
153
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
AAA to AA-
|
32
|
-
|
31
|
1
|
31
|
A+ to A-
|
18
|
-
|
11
|
7
|
2
|
BBB+ to BBB-
|
2
|
-
|
2
|
-
|
3
|
Total government bonds
|
52
|
-
|
44
|
8
|
36
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Government guaranteed issuers, PSEs and GSEs
|
10
|
-
|
8
|
1
|
9
|
International organisations and MDBs
|
8
|
-
|
8
|
-
|
7
|
Covered bonds
|
8
|
-
|
6
|
2
|
6
|
Other
|
1
|
-
|
-
|
-
|
-
|
Total other
|
27
|
-
|
22
|
3
|
22
|
|
|
|
|
|
|
Total as at 30 September 2020
|
327
|
243
|
66
|
11
|
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 77% (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 £327bn as at 30 September
2020 (December 2019: £211bn) driven by a 19% growth in
customer deposit and actions to maintain a prudent funding and
liquidity position in the current environment. 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.
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.
Capital
The
Group’s Overall Capital Requirement for CET1 is 11.3%
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 2.8% 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 is 5.0% of which at least 56.25%
needs to be met with CET1 capital, equating to approximately 2.8%
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.
On 22
April 2020, the regulatory technical standards on prudent valuation
were amended to include an increase to diversification factors
applied to certain additional valuation adjustments. The
amendments will also impact own funds and will apply until 31
December 2020 inclusive.
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
|
30.09.20
|
30.06.20
|
31.12.19
|
CET1
|
14.6%
|
14.2%
|
13.8%
|
Tier 1 (T1)
|
18.7%
|
17.8%
|
17.7%
|
Total regulatory capital
|
22.5%
|
21.7%
|
21.6%
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the balance
sheet
|
67,816
|
68,304
|
64,429
|
Less: other equity instruments (recognised as AT1
capital)
|
(12,012)
|
(10,871)
|
(10,871)
|
Adjustment to retained earnings for foreseeable
dividends
|
(65)
|
(44)
|
(1,096)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,241)
|
(1,517)
|
(1,746)
|
Goodwill and intangible assets
|
(8,154)
|
(8,154)
|
(8,109)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(422)
|
(444)
|
(479)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(1,745)
|
(1,914)
|
(1,002)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
717
|
(233)
|
260
|
Defined benefit pension fund assets
|
(1,785)
|
(2,094)
|
(1,594)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
Adjustment under IFRS 9 transitional arrangements
|
2,512
|
2,459
|
1,126
|
Other regulatory adjustments
|
(62)
|
(62)
|
(55)
|
CET1 capital
|
45,509
|
45,380
|
40,813
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
12,012
|
10,871
|
10,871
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
622
|
691
|
687
|
Other regulatory adjustments and deductions
|
(80)
|
(80)
|
(130)
|
AT1 capital
|
12,554
|
11,482
|
11,428
|
|
|
|
|
T1 capital
|
58,063
|
56,862
|
52,241
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
9,451
|
9,028
|
7,650
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
2,516
|
3,396
|
3,984
|
Credit risk adjustments (excess of impairment over expected
losses)
|
36
|
36
|
16
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(250)
|
Total regulatory capital
|
69,906
|
69,162
|
63,641
|
|
|
|
|
Total RWAs
|
310,727
|
318,987
|
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 13.9%,
with £43.0bn of CET1 capital and £309.8bn 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 14.6%. 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
|
Nine months
|
ended
|
ended
|
30.09.20
|
30.09.20
|
£m
|
£m
|
Opening CET1 capital
|
45,380
|
40,813
|
|
|
|
Profit for the period attributable to equity holders
|
815
|
1,937
|
Own credit relating to derivative liabilities
|
16
|
19
|
Dividends paid and foreseen
|
(225)
|
400
|
Increase in retained regulatory capital generated from
earnings
|
606
|
2,356
|
|
|
|
Net impact of share schemes
|
(268)
|
20
|
Fair value through other comprehensive income reserve
|
173
|
(205)
|
Currency translation reserve
|
(716)
|
504
|
Other reserves
|
(3)
|
(6)
|
(Decrease) / increase in other qualifying reserves
|
(814)
|
313
|
|
|
|
Pension remeasurements within reserves
|
(323)
|
322
|
Defined benefit pension fund asset deduction
|
309
|
(191)
|
Net impact of pensions
|
(14)
|
131
|
|
|
|
Additional value adjustments (PVA)
|
276
|
505
|
Goodwill and intangible assets
|
-
|
(45)
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
22
|
57
|
Adjustment under IFRS 9 transitional arrangements
|
53
|
1,386
|
Other regulatory adjustments
|
-
|
(7)
|
Increase in regulatory capital due to adjustments and
deductions
|
351
|
1,896
|
|
|
|
Closing CET1 capital
|
45,509
|
45,509
|
|
|
|
CET1
capital increased £4.7bn to £45.5bn (December 2019:
£40.8bn).
£1.9bn
of capital generated from profits, and a £1.0bn increase due
to the cancellation of the full year 2019 dividend were partially
offset by £0.6bn of AT1 coupons paid. Other significant
movements in the period were:
●
|
A
£0.5bn increase in the currency translation reserve mainly
driven by the appreciation of period end USD and EUR against
GBP
|
●
|
A
£0.5bn increase due to a reduction in PVA which includes the
temporary increase to diversification factors applied to certain
additional valuation adjustments
|
●
|
A
£1.4bn increase in the IFRS 9 transitional relief after tax,
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 30.09.20
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays UK
|
7,350
|
56,373
|
|
369
|
-
|
-
|
100
|
|
125
|
-
|
|
11,851
|
76,168
|
Corporate
and Investment Bank
|
24,800
|
76,464
|
|
11,628
|
20,645
|
106
|
2,545
|
|
13,043
|
22,709
|
|
21,388
|
193,328
|
Consumer,
Cards and Payments
|
20,597
|
2,921
|
|
168
|
47
|
-
|
35
|
|
-
|
75
|
|
7,538
|
31,381
|
Barclays International
|
45,397
|
79,385
|
|
11,796
|
20,692
|
106
|
2,580
|
|
13,043
|
22,784
|
|
28,926
|
224,709
|
Head Office
|
3,701
|
6,022
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
127
|
9,850
|
Barclays Group
|
56,448
|
141,780
|
|
12,165
|
20,692
|
106
|
2,680
|
|
13,168
|
22,784
|
|
40,904
|
310,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.06.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 31.12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
(4,793)
|
1,963
|
10,031
|
(53)
|
7,148
|
Acquisitions and disposals
|
(119)
|
-
|
-
|
-
|
(119)
|
Book quality
|
9,792
|
1,112
|
-
|
-
|
10,904
|
Model updates
|
1,933
|
(50)
|
-
|
-
|
1,883
|
Methodology and policy
|
(1,879)
|
548
|
(4,840)
|
-
|
(6,171)
|
Foreign exchange movements1
|
1,951
|
-
|
-
|
-
|
1,951
|
Total RWA movements
|
6,885
|
3,573
|
5,191
|
(53)
|
15,596
|
Closing RWAs (as at 30.09.20)
|
198,228
|
35,643
|
35,952
|
40,904
|
310,727
|
1
|
Foreign exchange movements do not include foreign exchange for
counterparty credit risk or market risk.
|
Overall RWAs increased £15.6bn mainly driven by:
Credit risk RWAs increased £6.9bn mainly due to:
|
●
|
Book size decreased RWAs £4.8bn primarily due to a reduction
in lending activities, repayments and lower IEL
balances
|
●
|
Book quality increased RWAs £9.8bn mainly due to a reduction
in credit quality primarily within CIB
|
●
|
Model updates increased RWAs £1.9bn primarily due to modelled
risk weight recalibrations
|
●
|
Methodology and policy decreased RWAs £1.9bn primarily due the
application of revised SME discount factors following the early
adoption of specific CRR II measures
|
●
|
FX increased RWAs £2.0bn due to the appreciation of period end
USD against GBP
|
Counterparty credit risk RWAs increased £3.6bn mainly due
to:
|
●
|
Book size increased RWAs £2.0bn primarily due to an increase
in trading activities across SFTs and derivatives
|
●
|
Book quality increased RWAs £1.1bn primarily due to a
reduction in credit quality within CIB
|
Market risk RWAs increased £5.2bn mainly due to:
|
●
|
Book size increased RWAs £10.0bn primarily due to an increase
in trading activities and higher market volatility
|
●
|
Methodology and policy decreased RWAs £4.8bn primarily due to
the removal of a Risk Not In VaR (RNIV) and a reduction in pre
COVID-19 VaR back testing exceptions
|
Leverage ratio and exposures
The
Group is subject to a leverage ratio requirement of 3.8% as at 30
September 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 £5.8bn.
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
30.09.20
|
As at
30.06.20
|
As at
31.12.19
|
£m
|
£m
|
£m
|
Average UK leverage ratio
|
5.1%
|
4.7%
|
4.5%
|
Average T1 capital3
|
56,690
|
54,548
|
51,823
|
Average UK leverage exposure
|
1,111,052
|
1,148,720
|
1,142,819
|
|
|
|
|
UK leverage ratio
|
5.2%
|
5.2%
|
5.1%
|
|
|
|
|
CET1 capital
|
45,509
|
45,380
|
40,813
|
AT1 capital
|
11,932
|
10,791
|
10,741
|
T1 capital3
|
57,441
|
56,171
|
51,554
|
|
|
|
|
UK leverage exposure
|
1,095,097
|
1,071,138
|
1,007,721
|
|
|
|
|
UK leverage exposure
|
|
|
|
Accounting assets
|
|
|
|
Derivative financial instruments
|
296,551
|
307,258
|
229,236
|
Derivative cash collateral
|
67,034
|
77,063
|
56,589
|
Securities financing transactions (SFTs)
|
178,736
|
160,015
|
111,307
|
Loans and advances and other assets
|
879,348
|
840,781
|
743,097
|
Total IFRS assets
|
1,421,669
|
1,385,117
|
1,140,229
|
|
|
|
|
Regulatory consolidation adjustments
|
(1,943)
|
(1,982)
|
(1,170)
|
|
|
|
|
Derivatives adjustments
|
|
|
|
Derivatives netting
|
(269,441)
|
(279,151)
|
(207,756)
|
Adjustments to cash collateral
|
(58,298)
|
(67,718)
|
(48,464)
|
Net written credit protection
|
15,890
|
14,442
|
13,784
|
Potential future exposure (PFE) on derivatives
|
122,426
|
123,468
|
119,118
|
Total derivatives adjustments
|
(189,423)
|
(208,959)
|
(123,318)
|
|
|
|
|
SFTs adjustments
|
20,274
|
21,226
|
18,339
|
|
|
|
|
Regulatory deductions and other adjustments
|
(18,011)
|
(18,297)
|
(11,984)
|
|
|
|
|
Weighted off-balance sheet commitments
|
110,749
|
108,436
|
105,289
|
|
|
|
|
Qualifying central bank claims
|
(205,451)
|
(173,033)
|
(119,664)
|
|
|
|
|
Settlement netting
|
(42,767)
|
(41,370)
|
-
|
|
|
|
|
UK leverage
exposure2
|
1,095,097
|
1,071,138
|
1,007,721
|
1
|
Fully loaded average UK leverage ratio was
4.9%, with £54.2bn of T1 capital and £1,109bn of leverage
exposure. Fully loaded UK leverage ratio was 5.0%, with
£54.9bn of T1 capital and £1,093bn 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 5.1% (December 2019: 4.5%),
driven by an increase in T1 capital. The leverage exposure
decreased by £32bn to £1,111bn, primarily driven 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
£87bn to £1,095bn, primarily driven by an increase in
SFTs of £67bn. Loans, advances and other assets increase of
£136bn was broadly offset by qualifying central bank claims
and 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 Q3 2020, expected to be published on 23 October
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
30.09.20
|
As at
30.06.20
|
As at
31.12.19
|
CET1 capital
|
14.6%
|
14.2%
|
13.8%
|
AT1 capital instruments and related share premium
accounts2
|
3.8%
|
3.4%
|
3.6%
|
T2 capital instruments and related share premium
accounts2
|
3.0%
|
2.8%
|
2.5%
|
Eligible liabilities
|
11.3%
|
12.0%
|
11.2%
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
32.8%
|
32.4%
|
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
|
0.8%
|
1.1%
|
1.3%
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
33.8%
|
33.7%
|
32.8%
|
|
|
|
|
Own funds and
eligible liabilities1
|
£m
|
£m
|
£m
|
CET1 capital
|
45,509
|
45,380
|
40,813
|
AT1 capital instruments and related share premium
accounts2
|
11,932
|
10,791
|
10,741
|
T2 capital instruments and related share premium
accounts2
|
9,327
|
8,904
|
7,416
|
Eligible liabilities
|
35,209
|
38,308
|
33,025
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
101,977
|
103,383
|
91,995
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
622
|
691
|
687
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
2,516
|
3,396
|
3,984
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
105,115
|
107,470
|
96,666
|
|
|
|
|
Total RWAs1
|
310,727
|
318,987
|
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).
|
Condensed Consolidated Financial Statements
Condensed consolidated income statement
|
|
|
Nine months ended
|
Nine months ended
|
|
|
30.09.20
|
30.09.19
|
|
|
£m
|
£m
|
Total income
|
|
16,825
|
16,331
|
Credit impairment charges
|
|
(4,346)
|
(1,389)
|
Net operating income
|
|
12,479
|
14,942
|
Operating expenses excluding litigation and conduct
|
|
(9,954)
|
(10,051)
|
Litigation and conduct
|
|
(106)
|
(1,682)
|
Operating expenses
|
|
(10,060)
|
(11,733)
|
Other net income
|
|
-
|
51
|
Profit before tax
|
|
2,419
|
3,260
|
Tax charge
|
|
(441)
|
(814)
|
Profit after tax
|
|
1,978
|
2,446
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
1,306
|
1,780
|
Other equity instrument holders
|
|
631
|
628
|
Total equity holders of the parent
|
|
1,937
|
2,408
|
Non-controlling interests
|
|
41
|
38
|
Profit after tax
|
|
1,978
|
2,446
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
Basic earnings per ordinary share
|
|
7.6
|
10.4
|
Condensed consolidated balance sheet
|
|
|
As at
|
As at
|
|
|
30.09.20
|
31.12.19
|
Assets
|
|
£m
|
£m
|
Cash and balances at central banks
|
|
240,973
|
150,258
|
Cash collateral and settlement balances
|
|
125,413
|
83,256
|
Loans and advances at amortised cost
|
|
344,410
|
339,115
|
Reverse repurchase agreements and other similar secured
lending
|
|
15,436
|
3,379
|
Trading portfolio assets
|
|
122,741
|
114,195
|
Financial assets at fair value through the income
statement
|
|
182,760
|
133,086
|
Derivative financial instruments
|
|
296,551
|
229,236
|
Financial assets at fair value through other comprehensive
income
|
|
71,289
|
65,750
|
Investments in associates and joint ventures
|
|
741
|
721
|
Goodwill and intangible assets
|
|
8,163
|
8,119
|
Current tax assets
|
|
630
|
412
|
Deferred tax assets
|
|
2,929
|
3,290
|
Other assets
|
|
9,633
|
9,412
|
Total assets
|
|
1,421,669
|
1,140,229
|
|
|
|
|
Liabilities
|
|
|
|
Deposits at amortised cost
|
|
494,593
|
415,787
|
Cash collateral and settlement balances
|
|
112,532
|
67,341
|
Repurchase agreements and other similar secured
borrowing
|
|
20,972
|
14,517
|
Debt securities in issue
|
|
98,688
|
76,369
|
Subordinated liabilities
|
|
20,259
|
18,156
|
Trading portfolio liabilities
|
|
51,075
|
36,916
|
Financial liabilities designated at fair value
|
|
249,322
|
204,326
|
Derivative financial instruments
|
|
293,446
|
229,204
|
Current tax liabilities
|
|
454
|
313
|
Deferred tax liabilities
|
|
-
|
23
|
Other liabilities
|
|
11,271
|
11,617
|
Total liabilities
|
|
1,352,612
|
1,074,569
|
|
|
|
|
Equity
|
|
|
|
Called up share capital and share premium
|
|
4,630
|
4,594
|
Other reserves
|
|
5,349
|
4,760
|
Retained earnings
|
|
45,825
|
44,204
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
55,804
|
53,558
|
Other equity instruments
|
|
12,012
|
10,871
|
Total equity excluding non-controlling interests
|
|
67,816
|
64,429
|
Non-controlling interests
|
|
1,241
|
1,231
|
Total equity
|
|
69,057
|
65,660
|
|
|
|
|
Total liabilities and equity
|
|
1,421,669
|
1,140,229
|
Condensed consolidated statement of changes in equity
|
|
Called up share capital and share premium
|
Other equity instruments
|
Other reserves
|
Retained earnings
|
Total
|
Non-controlling interests
|
Total equity
|
Nine months ended 30.09.20
|
£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
|
-
|
631
|
-
|
1,306
|
1,937
|
41
|
1,978
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
322
|
322
|
-
|
322
|
Other
|
-
|
-
|
604
|
(7)
|
597
|
-
|
597
|
Total comprehensive income for the period
|
-
|
631
|
604
|
1,621
|
2,856
|
41
|
2,897
|
Equity settled share schemes
|
36
|
-
|
-
|
338
|
374
|
-
|
374
|
Issue and exchange of other equity instruments
|
-
|
1,142
|
-
|
-
|
1,142
|
-
|
1,142
|
Other equity instruments coupons paid
|
-
|
(631)
|
-
|
-
|
(631)
|
-
|
(631)
|
Vesting of shares under employee share schemes
|
-
|
-
|
(15)
|
(339)
|
(354)
|
-
|
(354)
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(40)
|
(40)
|
Other movements
|
-
|
(1)
|
-
|
1
|
-
|
9
|
9
|
Balance as at 30 September 2020
|
4,630
|
12,012
|
5,349
|
45,825
|
67,816
|
1,241
|
69,057
|
|
|
|
|
|
|
|
|
Three months ended 30.09.20
|
|
|
|
|
|
|
|
Balance as at 1 July 2020
|
4,620
|
10,871
|
6,996
|
45,817
|
68,304
|
1,237
|
69,541
|
Profit after tax
|
-
|
204
|
-
|
611
|
815
|
4
|
819
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
(323)
|
(323)
|
-
|
(323)
|
Other
|
-
|
-
|
(1,646)
|
(1)
|
(1,647)
|
-
|
(1,647)
|
Total comprehensive income for the period
|
-
|
204
|
(1,646)
|
287
|
(1,155)
|
4
|
(1,151)
|
Equity settled share schemes
|
10
|
-
|
-
|
(265)
|
(255)
|
-
|
(255)
|
Issue and exchange of other equity instruments
|
-
|
1,142
|
-
|
-
|
1,142
|
-
|
1,142
|
Other equity instruments coupons paid
|
-
|
(204)
|
-
|
-
|
(204)
|
-
|
(204)
|
Vesting of shares under employee share schemes
|
-
|
-
|
(1)
|
(12)
|
(13)
|
-
|
(13)
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(3)
|
(3)
|
Other movements
|
-
|
(1)
|
-
|
(2)
|
(3)
|
3
|
-
|
Balance as at 30 September 2020
|
4,630
|
12,012
|
5,349
|
45,825
|
67,816
|
1,241
|
69,057
|
|
As at
|
As at
|
|
30.09.20
|
31.12.19
|
Other reserves
|
£m
|
£m
|
Currency translation reserve
|
3,848
|
3,344
|
Fair value through other comprehensive income reserve
|
(392)
|
(187)
|
Cash flow hedging reserve
|
1,745
|
1,002
|
Own credit reserve
|
(811)
|
(373)
|
Other reserves and treasury shares
|
959
|
974
|
Total
|
5,349
|
4,760
|
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.
|
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 41.
|
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 41.
|
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 23.
|
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
49.
|
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 42
to 49.
|
Pre-provision
profits
|
Calculated by
excluding credit impairment charges from profit before tax. The
components of the calculation have been included on pages 42 to
44.
|
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 42 to 44.
|
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
|
Nine months ended 30.09.20
|
£m
|
|
£bn
|
|
%
|
Barclays UK
|
165
|
|
10.2
|
|
2.2
|
Corporate and Investment Bank
|
2,141
|
|
27.2
|
|
10.5
|
Consumer, Cards and Payments
|
(362)
|
|
4.6
|
|
(10.6)
|
Barclays International
|
1,779
|
|
31.8
|
|
7.5
|
Head Office
|
(638)
|
|
6.5
|
|
n/m
|
Barclays Group
|
1,306
|
|
48.5
|
|
3.6
|
|
|
|
|
|
|
Nine months ended 30.09.19
|
|
|
|
|
|
Barclays UK
|
(157)
|
|
10.4
|
|
(2.0)
|
Corporate and Investment Bank
|
1,787
|
|
25.9
|
|
9.2
|
Consumer, Cards and Payments
|
632
|
|
5.3
|
|
15.8
|
Barclays International
|
2,419
|
|
31.2
|
|
10.3
|
Head Office
|
(482)
|
|
5.0
|
|
n/m
|
Barclays Group
|
1,780
|
|
46.6
|
|
5.1
|
Performance measures excluding litigation and conduct
|
|
|
|
|
|
|
|
|
Nine months ended 30.09.20
|
|
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
|
(3,172)
|
(5,092)
|
(1,579)
|
(6,671)
|
(217)
|
(10,060)
|
Impact of litigation and conduct
|
36
|
6
|
33
|
39
|
31
|
106
|
Operating expenses
|
(3,136)
|
(5,086)
|
(1,546)
|
(6,632)
|
(186)
|
(9,954)
|
|
|
|
|
|
|
|
Total income
|
4,721
|
9,838
|
2,597
|
12,435
|
(331)
|
16,825
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
66%
|
52%
|
60%
|
53%
|
n/m
|
59%
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
Profit/(loss) before tax
|
264
|
3,243
|
(449)
|
2,794
|
(639)
|
2,419
|
Impact of litigation and conduct
|
36
|
6
|
33
|
39
|
31
|
106
|
Profit/(loss) before tax excluding litigation and
conduct
|
300
|
3,249
|
(416)
|
2,833
|
(608)
|
2,525
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
Attributable profit/(loss)
|
165
|
2,141
|
(362)
|
1,779
|
(638)
|
1,306
|
Post-tax impact of litigation and conduct
|
25
|
4
|
25
|
29
|
18
|
72
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
190
|
2,145
|
(337)
|
1,808
|
(620)
|
1,378
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
13.7
|
27.2
|
5.2
|
32.4
|
10.5
|
56.6
|
Average goodwill and intangibles
|
(3.5)
|
-
|
(0.6)
|
(0.6)
|
(4.0)
|
(8.1)
|
Average tangible shareholders' equity
|
10.2
|
27.2
|
4.6
|
31.8
|
6.5
|
48.5
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
2.5%
|
10.5%
|
(9.9%)
|
7.6%
|
n/m
|
3.8%
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,298
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
8.0p
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
Profit before tax
|
|
|
|
|
|
2,419
|
Impact of credit impairment charges
|
|
|
|
|
|
4,346
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
6,765
|
Impact of litigation and conduct
|
|
|
|
|
|
106
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
6,871
|
|
Nine months ended 30.09.19
|
|
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
|
(4,497)
|
(5,221)
|
(1,732)
|
(6,953)
|
(283)
|
(11,733)
|
Impact of litigation and conduct
|
1,524
|
30
|
-
|
30
|
128
|
1,682
|
Operating expenses
|
(2,973)
|
(5,191)
|
(1,732)
|
(6,923)
|
(155)
|
(10,051)
|
|
|
|
|
|
|
|
Total income
|
5,394
|
7,917
|
3,306
|
11,223
|
(286)
|
16,331
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
55%
|
66%
|
52%
|
62%
|
n/m
|
62%
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
Profit/(loss) before tax
|
375
|
2,596
|
882
|
3,478
|
(593)
|
3,260
|
Impact of litigation and conduct
|
1,524
|
30
|
-
|
30
|
128
|
1,682
|
Profit/(loss) before tax excluding litigation and
conduct
|
1,899
|
2,626
|
882
|
3,508
|
(465)
|
4,942
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
Attributable (loss)/profit
|
(157)
|
1,787
|
632
|
2,419
|
(482)
|
1,780
|
Post-tax impact of litigation and conduct
|
1,489
|
26
|
-
|
26
|
96
|
1,611
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
1,332
|
1,813
|
632
|
2,445
|
(386)
|
3,391
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
13.9
|
25.9
|
6.4
|
32.3
|
8.4
|
54.6
|
Average goodwill and intangibles
|
(3.5)
|
-
|
(1.1)
|
(1.1)
|
(3.4)
|
(8.0)
|
Average tangible shareholders' equity
|
10.4
|
25.9
|
5.3
|
31.2
|
5.0
|
46.6
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
17.2%
|
9.3%
|
15.8%
|
10.4%
|
n/m
|
9.7%
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,192
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
19.7p
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
Profit before tax
|
|
|
|
|
|
3,260
|
Impact of credit impairment charges
|
|
|
|
|
|
1,389
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
4,649
|
Impact of litigation and conduct
|
|
|
|
|
|
1,682
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
6,331
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Cost: income ratio
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Total operating expenses
|
(3,467)
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
(4,093)
|
Impact of litigation and conduct
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
Operating expenses
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
(4,033)
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
5,204
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
5,073
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
65%
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
79%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
Impact of litigation and conduct
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
Profit before tax excluding litigation and conduct
|
1,223
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
434
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
611
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
(14)
|
Post-tax impact of litigation and conduct
|
57
|
16
|
(1)
|
|
122
|
1,525
|
40
|
46
|
|
62
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
668
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Average shareholders' equity
|
56.4
|
58.4
|
55.2
|
|
54.5
|
56.4
|
54.0
|
53.2
|
|
52.2
|
Average goodwill and intangibles
|
(8.1)
|
(8.2)
|
(8.2)
|
|
(8.1)
|
(8.0)
|
(7.8)
|
(8.0)
|
|
(7.9)
|
Average tangible shareholders' equity
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
5.5%
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
17,298
|
17,294
|
17,278
|
|
17,200
|
17,192
|
17,178
|
17,111
|
|
17,075
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
3.9p
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
0.3p
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Profit before tax
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
374
|
Impact of credit impairment charges
|
608
|
1,623
|
2,115
|
|
523
|
461
|
480
|
448
|
|
643
|
Profit before tax excluding credit impairment charges
|
1,755
|
1,982
|
3,028
|
|
1,620
|
707
|
2,011
|
1,931
|
|
1,017
|
Impact of litigation and conduct
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
60
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
1,831
|
2,002
|
3,038
|
|
1,787
|
2,275
|
2,064
|
1,992
|
|
1,077
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Cost: income ratio
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Total operating expenses
|
(1,120)
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
(1,175)
|
Impact of litigation and conduct
|
25
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
15
|
Operating expenses
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
(1,160)
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
1,863
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
71%
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
196
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
390
|
Impact of litigation and conduct
|
25
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
15
|
Profit/(loss) before tax excluding litigation and
conduct
|
221
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
405
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
113
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
241
|
Post-tax impact of litigation and conduct
|
17
|
5
|
3
|
|
43
|
1,457
|
30
|
2
|
|
12
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
130
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
253
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Average allocated equity
|
13.7
|
13.9
|
13.7
|
|
13.8
|
13.9
|
13.8
|
13.9
|
|
13.6
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
(3.6)
|
|
(3.5)
|
(3.5)
|
(3.5)
|
(3.5)
|
|
(3.5)
|
Average allocated tangible equity
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
5.2%
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
10.1%
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Cost: income ratio
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Total operating expenses
|
(2,255)
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
(2,684)
|
Impact of litigation and conduct
|
28
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
33
|
Operating expenses
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
(2,651)
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
3,781
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
3,221
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
59%
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
82%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
1,165
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
215
|
Impact of litigation and conduct
|
28
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
33
|
Profit before tax excluding litigation and conduct
|
1,193
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
782
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
(21)
|
Post-tax impact of litigation and conduct
|
21
|
8
|
-
|
|
64
|
2
|
8
|
16
|
|
34
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
803
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Average allocated equity
|
31.2
|
34.2
|
31.9
|
|
31.9
|
33.3
|
32.1
|
31.6
|
|
32.4
|
Average goodwill and intangibles
|
(0.6)
|
(0.7)
|
(0.7)
|
|
(1.0)
|
(1.1)
|
(1.0)
|
(1.1)
|
|
(1.1)
|
Average allocated tangible equity
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
31.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
10.5%
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
0.2%
|
Corporate and Investment Bank
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Cost: income ratio
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Total operating expenses
|
(1,719)
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
(2,046)
|
Impact of litigation and conduct
|
3
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
23
|
Operating expenses
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
(2,023)
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
2,151
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
59%
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
94%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
1,000
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
85
|
Impact of litigation and conduct
|
3
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
23
|
Profit before tax excluding litigation and conduct
|
1,003
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
627
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
(84)
|
Post-tax impact of litigation and conduct
|
2
|
2
|
-
|
|
58
|
5
|
5
|
16
|
|
27
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
629
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
(57)
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Average allocated equity
|
26.4
|
29.1
|
26.2
|
|
25.9
|
26.9
|
25.8
|
25.2
|
|
26.0
|
Average goodwill and intangibles
|
-
|
(0.1)
|
-
|
|
(0.1)
|
-
|
-
|
(0.1)
|
|
-
|
Average allocated tangible equity
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
26.0
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
9.5%
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
(0.9%)
|
Consumer, Cards and Payments
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Cost: income ratio
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Total operating expenses
|
(536)
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
(638)
|
Impact of litigation and conduct
|
25
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
10
|
Operating expenses
|
(511)
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
(628)
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
876
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
1,070
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
58%
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
59%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
165
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
130
|
Impact of litigation and conduct
|
25
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
10
|
Profit/(loss) before tax excluding litigation and
conduct
|
190
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
140
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
155
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
63
|
Post-tax impact of litigation and conduct
|
19
|
6
|
-
|
|
6
|
(3)
|
3
|
-
|
|
7
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
174
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
Average allocated equity
|
4.8
|
5.1
|
5.7
|
|
6.0
|
6.4
|
6.3
|
6.4
|
|
6.4
|
Average goodwill and intangibles
|
(0.6)
|
(0.6)
|
(0.7)
|
|
(0.9)
|
(1.1)
|
(1.0)
|
(1.0)
|
|
(1.1)
|
Average allocated tangible equity
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
16.5%
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
5.4%
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Q418
|
Profit before tax
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
Loss before tax
|
(214)
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
(231)
|
Impact of litigation and conduct
|
23
|
3
|
5
|
|
23
|
88
|
1
|
39
|
|
12
|
Loss before tax excluding litigation and conduct
|
(191)
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
(219)
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable loss
|
(284)
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
(234)
|
Post-tax impact of litigation and conduct
|
19
|
3
|
(4)
|
|
15
|
66
|
2
|
28
|
|
16
|
Attributable loss excluding litigation and conduct
|
(265)
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
(218)
|
Tangible net asset value per share
|
As at
|
As at
|
As at
|
|
30.09.20
|
31.12.19
|
30.09.19
|
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests
|
67,816
|
64,429
|
66,197
|
Other equity instruments
|
(12,012)
|
(10,871)
|
(10,860)
|
Goodwill and intangibles
|
(8,163)
|
(8,119)
|
(8,068)
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
47,641
|
45,439
|
47,269
|
|
|
|
|
|
m
|
m
|
m
|
Shares in issue
|
17,353
|
17,322
|
17,269
|
|
|
|
|
|
p
|
p
|
p
|
Tangible net asset value per share
|
275
|
262
|
274
|
Shareholder Information
|
|
|
|
|
|
|
Results timetable1
|
|
|
Date
|
|
|
|
2020 Full Year Results and Annual Report
|
|
|
25 February 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change3
|
Exchange rates2
|
30.09.20
|
30.06.20
|
30.09.19
|
|
30.06.20
|
30.09.19
|
Period end - USD/GBP
|
1.29
|
1.24
|
1.23
|
|
4%
|
5%
|
YTD average - USD/GBP
|
1.27
|
1.26
|
1.27
|
|
1%
|
-
|
3 month average - USD/GBP
|
1.29
|
1.24
|
1.23
|
|
4%
|
5%
|
Period end - EUR/GBP
|
1.10
|
1.10
|
1.13
|
|
-
|
(3%)
|
YTD average - EUR/GBP
|
1.13
|
1.14
|
1.13
|
|
(1%)
|
-
|
3 month average - EUR/GBP
|
1.11
|
1.13
|
1.11
|
|
(2%)
|
-
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
|
Barclays PLC (p)
|
97.61
|
114.42
|
150.40
|
|
|
|
Barclays PLC number of shares (m)
|
17,353
|
17,345
|
17,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Notes
The
terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the nine months ended 30 September 2020 to the
corresponding nine months of 2019 and balance sheet analysis as at
30 September 2020 with comparatives relating to 31 December 2019
and 30 September 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 22 October 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 40 to 49 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 (EU) (including the outcome of negotiations concerning the
UK’s future trading and security relationship with the EU)
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.