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 |
· |
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 |
Group income of £16.8bn up 3% versus prior year |
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Barclays International income of £12.4bn, up 11% versus prior year |
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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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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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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 |
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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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 |
Group operating expenses of £10.0bn down 1% versus prior year |
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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 |
CET1 ratio of 14.6%, a YTD increase of 80bps |
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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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Headroom of 3.3% above Maximum Distributable Amount (MDA) hurdle of 11.3%5 |
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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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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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Q320 Group income of £5.2bn, down 6% versus prior year |
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Q320 Barclays International income of £3.8bn, up 1% versus prior year |
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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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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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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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Q320 Group credit impairment charge of £0.6bn, up 32% versus prior year but down 63% versus prior quarter |
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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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CET1 ratio of 14.6%, an increase of 40bps in Q320 mainly due to lower RWAs |
1 |
Total payment holidays granted as at 30 September 2020, business lending and commercial paper issuance data as at 19 October 2020. |
2 |
Across Equity and Debt Capital Markets. |
3 |
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. |
4 |
Excluding litigation and conduct. |
5 |
Barclays' MDA hurdle will fluctuate depending on the total RWAs at each reporting period and any future regulatory changes. |
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 |
Income |
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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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The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain |
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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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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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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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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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The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends at FY20 results |
Barclays Group results |
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for the nine months ended |
30.09.20 |
30.09.19 |
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|
£m |
£m |
% Change |
Total income |
16,825 |
16,331 |
3 |
Credit impairment charges |
(4,346) |
(1,389) |
|
Net operating income |
12,479 |
14,942 |
(16) |
Operating expenses |
(9,954) |
(10,051) |
1 |
Litigation and conduct |
(106) |
(1,682) |
94 |
Total operating expenses |
(10,060) |
(11,733) |
14 |
Other net income |
- |
51 |
|
Profit before tax |
2,419 |
3,260 |
(26) |
Tax charge |
(441) |
(814) |
46 |
Profit after tax |
1,978 |
2,446 |
(19) |
Non-controlling interests |
(41) |
(38) |
(8) |
Other equity instrument holders |
(631) |
(628) |
- |
Attributable profit |
1,306 |
1,780 |
(27) |
|
|
|
|
Performance measures |
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|
|
Return on average tangible shareholders' equity |
3.6% |
5.1% |
|
Average tangible shareholders' equity (£bn) |
48.5 |
46.6 |
|
Cost: income ratio |
60% |
72% |
|
Loan loss rate (bps) |
164 |
53 |
|
Basic earnings per share |
7.6p |
10.4p |
|
Dividend per share |
- |
3.0p |
|
|
|
|
|
Performance measures excluding litigation and conduct1 |
|
|
|
Profit before tax |
2,525 |
4,942 |
(49) |
Attributable profit |
1,378 |
3,391 |
(59) |
Return on average tangible shareholders' equity |
3.8% |
9.7% |
|
Cost: income ratio |
59% |
62% |
|
Basic earnings per share |
8.0p |
19.7p |
|
|
|
|
|
|
As at 30.09.20 |
As at 31.12.19 |
As at 30.09.19 |
Balance sheet and capital management2 |
£bn |
£bn |
£bn |
Loans and advances at amortised cost |
344.4 |
339.1 |
345.1 |
Deposits at amortised cost |
494.6 |
415.8 |
420.6 |
Tangible net asset value per share |
275p |
262p |
274p |
Common equity tier 1 ratio |
14.6% |
13.8% |
13.4% |
Common equity tier 1 capital |
45.5 |
40.8 |
41.9 |
Risk weighted assets |
310.7 |
295.1 |
313.3 |
Average UK leverage ratio |
5.1% |
4.5% |
4.6% |
UK leverage ratio |
5.2% |
5.1% |
4.8% |
|
|
|
|
Funding and liquidity |
|
|
|
Group liquidity pool (£bn) |
327 |
211 |
226 |
Liquidity coverage ratio |
181% |
160% |
151% |
Loan: deposit ratio |
70% |
82% |
82% |
1 |
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. |
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). |
3 |
Across Equity and Debt Capital Markets. |
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. |
Group Finance Director's Review
Group performance
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Statutory RoTE was 3.6% (Q319 YTD: 5.1%) and statutory EPS was 7.6p (Q319 YTD: 10.4p) |
· |
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 |
· |
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 |
· |
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% |
· |
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 |
· |
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%) |
· |
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 |
· |
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) |
· |
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 |
· |
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 |
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· |
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 |
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- |
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 |
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- |
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 |
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- |
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 |
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· |
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 |
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· |
Customer deposits at amortised cost increased 13% to £232.0bn due to lower customer spending and precautionary balance build |
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· |
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 |
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· |
Total income increased to £12,435m (Q319 YTD: £11,223m) |
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- |
CIB income increased 24% to £9,838m |
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|
|
- |
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 |
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|
- |
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 |
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|
- |
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 |
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- |
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 |
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· |
Credit impairment charges increased to £2,989m (Q319 YTD: £844m) |
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- |
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 |
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- |
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 |
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· |
Operating expenses decreased 4% to £6,632m |
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- |
CIB operating expenses decreased 2% to £5,086m due to cost efficiencies and discipline in the current environment |
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- |
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 |
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· |
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%) |
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|
- |
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% |
1 |
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.
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