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BARC Barclays Plc

183.20
1.68 (0.93%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Barclays Plc LSE:BARC London Ordinary Share GB0031348658 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  1.68 0.93% 183.20 183.48 183.52 185.68 182.82 183.32 54,857,915 16:35:20
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Commercial Banks, Nec 25.38B 5.26B 0.3470 5.29 27.81B

Barclays PLC Half Yearly Report (3675U)

29/07/2015 7:02am

UK Regulatory


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TIDMBARC

RNS Number : 3675U

Barclays PLC

29 July 2015

Barclays PLC

Results Announcement

30 June 2015

Table of Contents

 
 Results Announcement 
 Performance Highlights 
 Executive Chairman's Review 
 Group Finance Director's Review 
 Results by Business 
 
   *    Personal and Corporate Banking 
 
   *    Barclaycard 
 
   *    Africa Banking 
 
   *    Investment Bank 
 
   *    Head Office 
 
   *    Barclays Non-Core 
 Quarterly Results Summary 
 Quarterly Core Results by Business 
 Performance Management 
 
   *    Returns and equity by business 
 
   *    Margins and balances 
 Risk Management 
 
   *    Overview 
 
   *    Funding Risk - Liquidity 
 
   *    Funding Risk - Capital 
 
   *    Credit Risk 
 
   *    Market Risk 
 Statement of Directors' Responsibilities 
 Independent Auditors' Review Report to Barclays PLC 
 Condensed Consolidated Financial Statements 
 Financial Statement Notes 
 Shareholder Information 
 
 

BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839

Notes

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the six months to 30 June 2015 to the corresponding six months of 2014 and balance sheet analysis as at 30 June with comparatives relating to 31 December 2014. The abbreviations 'GBPm' and 'GBPbn' 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 'EURm' and 'EURbn' represent millions and thousands of millions of Euros respectively.

Comparatives pre Q214 have been restated to reflect the implementation of the Group structure changes and the reallocation of elements of the Head Office results under the revised business structure. These restatements were detailed in our announcement on 10 July 2014, accessible at http://www.barclays.com/barclays-investor-relations/results-and-reports.

References throughout this document to 'provisions for ongoing investigations and litigation primarily relating to Foreign Exchange' means 'provisions held for certain aspects of ongoing investigations involving certain authorities and litigation primarily relating to Foreign Exchange.'

Adjusted profit before tax, adjusted attributable profit and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant but not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; goodwill impairment; provisions for UK customer redress; gain on US Lehman acquisition assets; provisions for ongoing investigations and litigation primarily relating to Foreign Exchange; loss on sale of the Spanish business; Education, Social Housing, and Local Authority (ESHLA) valuation revision; and gain on valuation of a component of the defined retirement benefit liability. As management reviews adjusting items at a Group level, results by business are presented excluding these items. The reconciliation of adjusted to statutory performance is done at a Group level only.

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 www.Barclays.com/results.

The information in this announcement, which was approved by the Board of Directors on 28 July 2015 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified 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 SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website www.barclays.com/investorrelations and from the SEC's website at http://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.

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. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, run-down of assets and businesses within Barclays Non-Core, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers 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. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, 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 (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued 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 entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implementation of the strategic cost programme; 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 future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations 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 2014), which are available on the SEC's website at http://www.sec.gov.

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Performance Highlights

Continued progress on our strategy:

-- 11% growth in Group adjusted profit before tax to GBP3,729m reflecting improvements in all Core operating businesses. Group adjusted return on average shareholders' equity increased to 7.7% (H114: 6.5%)

-- Solid return on average equity performance across the businesses resulted in an increase in Core return on average equity to 11.1% (H114: 11.0%), driven by a 10% increase in profit before tax to GBP4,241m through positive cost to income jaws, with an increase in average allocated equity of GBP6bn to GBP47bn

-- Further run down of the Non-Core business, with risk weighted assets (RWAs) decreasing to GBP57bn (December 2014: GBP75bn). Non-Core dilution of the Group's return on average equity was 3.4% (2014: 4.5%), having reduced average allocated equity by GBP4bn to GBP10bn

-- Strong progress on capital and leverage, with the fully loaded common equity tier 1 (CET1) ratio increasing to 11.1% (December 2014: 10.3%) and the leverage ratio increasing to 4.1% (December 2014: 3.7%), achieving our 2016 targets

-- A 7% reduction in total adjusted operating expenses to GBP8,262m and a 5% reduction in operating expenses excluding costs to achieve to GBP7,946m, driven by savings from strategic cost programmes

-- Progress on legacy litigation and conduct matters, with settlements of GBP1,608m reached with a number of authorities in Q215 in relation to industry-wide investigations into certain sales and trading practices in the Foreign Exchange market and an industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark

-- Net tangible asset value per share decreased to 279p (December 2014: 285p) as profit generated for the period was more than offset by dividend distributions and the impact of changes in major forward interest rates and currency movements on reserves

-- Statutory profit before tax increased 25% to GBP3,114m, which included a net loss in adjusting items of GBP615m (H114: GBP848m)

Material adjusting items:

-- Additional provisions of GBP800m (H114: GBPnil) were made in H115 for ongoing investigations and litigation primarily relating to Foreign Exchange, taking the total provisions to GBP2,050m

-- Additional UK customer redress provisions of GBP1,032m (H114: GBP900m) were taken based on an updated estimate of future redress and associated costs. This included an additional provision of GBP850m recognised in Q215

-- A GBP496m (H114: GBPnil) gain on US Lehman acquisition assets was recognised in Q215 reflecting a settlement to resolve outstanding litigation with the Trustee of Lehman Brothers Inc.

-- A GBP429m (H114: GBPnil) gain was recognised in Q115 as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions

-- A GBP118m (H114: GBPnil) loss was recognised in Q115 primarily relating to accumulated currency translation reserves recycled upon the completion of the Spanish business sale

 
Barclays Group results                      Adjusted                       Statutory 
                                  ============================  ================================ 
for the six months ended          30.06.15  30.06.14              30.06.15    30.06.14 
                                      GBPm      GBPm  % Change        GBPm        GBPm  % Change 
================================  ========  ========  ========  ==========  ==========  ======== 
Total income net of insurance 
 claims                             12,982    13,332       (3)      13,888      13,384         4 
Credit impairment charges 
 and other provisions                (973)   (1,086)        10       (973)     (1,086)        10 
================================  ========  ========  ========  ==========  ==========  ======== 
Net operating income                12,009    12,246       (2)      12,915      12,298         5 
Operating expenses                 (7,812)   (8,172)         4     (7,383)     (8,172)        10 
Litigation and conduct               (134)     (211)        36     (1,966)     (1,111)      (77) 
================================  ========  ========  ========  ==========  ==========  ======== 
Operating expenses excluding 
 costs to achieve                  (7,946)   (8,383)         5     (9,349)     (9,283)       (1) 
Costs to achieve                     (316)     (494)        36       (316)       (494)        36 
================================  ========  ========  ========  ==========  ==========  ======== 
Total operating expenses           (8,262)   (8,877)         7     (9,665)     (9,777)         1 
Other net expenses                    (18)      (20)        10       (136)        (20) 
================================  ========  ========  ========  ==========  ==========  ======== 
Profit before tax                    3,729     3,349        11       3,114       2,501        25 
Tax charge(1)                      (1,077)   (1,109)         3     (1,006)       (895)      (12) 
================================  ========  ========  ========  ==========  ==========  ======== 
Profit after tax                     2,652     2,240        18       2,108       1,606        31 
Non-controlling interests            (338)     (390)        13       (338)       (390)        13 
Other equity interests(2)            (159)      (90)      (77)       (159)        (90)      (77) 
================================  ========  ========  ========  ==========  ==========  ======== 
Attributable profit                  2,155     1,760        22       1,611       1,126        43 
 
Performance measures 
================================  ========  ========  ========  ==========  ==========  ======== 
Return on average tangible 
 shareholders' equity(2)              9.1%      7.5%                  6.9%        4.9% 
Average tangible shareholders' 
 equity (GBPbn)                         48        47                    48          47 
Return on average shareholders' 
 equity(2)                            7.7%      6.5%                  5.9%        4.2% 
Average shareholders' equity 
 (GBPbn)                                56        55                    56          54 
Cost: income ratio                     64%       67%                   70%         73% 
Loan loss rate (bps)                    40        45                    40          45 
 
Basic earnings per share(2)          13.1p     10.9p                  9.9p        7.0p 
Dividend per share                    2.0p      2.0p                  2.0p        2.0p 
 
Balance sheet and leverage                                        30.06.15    31.12.14 
================================  ========  ========  ========  ==========  ==========  ======== 
Net tangible asset value 
 per share                                                            279p        285p 
Net asset value per share                                             328p        335p 
Leverage exposure                                               GBP1,139bn  GBP1,233bn 
 
Capital management                                                30.06.15    31.12.14 
================================  ========  ========  ========  ==========  ==========  ======== 
CRD IV fully loaded 
Common equity tier 1 ratio                                           11.1%       10.3% 
Common equity tier 1 capital                                     GBP42.0bn   GBP41.5bn 
Tier 1 capital                                                   GBP46.5bn   GBP46.0bn 
Risk weighted assets                                              GBP377bn    GBP402bn 
Leverage ratio                                                        4.1%        3.7% 
 
Funding and liquidity                                             30.06.15    31.12.14 
================================  ========  ========  ========  ==========  ==========  ======== 
Group liquidity pool                                              GBP145bn    GBP149bn 
Estimated CRD IV liquidity 
 coverage ratio                                                       121%        124% 
Loan: deposit ratio(3)                                                 88%         89% 
 
Adjusted profit reconciliation for the                            30.06.15    30.06.14 
 six months ended 
====================================================  ========  ==========  ==========  ======== 
Adjusted profit before tax                                           3,729       3,349 
Own credit                                                             410          52 
Gain on US Lehman acquisition 
 assets                                                                496           - 
Gain on valuation of a component of the 
 defined retirement benefit liability                                  429           - 
Provisions for ongoing investigations and litigation 
 primarily relating to Foreign Exchange                              (800)           - 
Provisions for UK customer 
 redress                                                           (1,032)       (900) 
Loss on sale of the Spanish 
 business                                                            (118)           - 
Statutory profit before 
 tax                                                                 3,114       2,501 
 
 
 1   The effective tax rate for H115 is the expected full year rate 
      adjusted for the impact of significant one-off items. The tax 
      impacts of such items, which include adjusting items and the 
      UK bank levy, are recognised in the period in which they occur. 
 2   The profit after tax attributable to other equity holders of 
      GBP159m (H114: GBP90m) is offset by a tax credit recorded in 
      reserves of GBP32m (H114: GBP19m). The net amount of GBP127m 
      (H114: GBP71m), along with non-controlling interests (NCI) is 
      deducted from profit after tax in order to calculate earnings 
      per share, return on average tangible shareholders' equity and 
      return on average shareholders' equity. 
 3   Loan: deposit ratio for PCB, Barclaycard, Africa Banking and 
      Non-Core retail. 
 
 
 Barclays Core and Non-Core             Barclays Core                  Barclays Non-Core 
 results for the six 
  months ended                  30.06.15   30.06.14              30.06.15   30.06.14 
                                    GBPm       GBPm   % Change       GBPm       GBPm   % Change 
=============================  =========  =========  =========  =========  =========  ========= 
 Total income net of 
  insurance claims                12,940     12,674          2         42        658       (94) 
 Credit impairment charges 
  and other provisions             (936)      (937)          -       (37)      (149)         75 
=============================  =========  =========  =========  =========  =========  ========= 
 Net operating income             12,004     11,737          2          5        509       (99) 
 Operating expenses              (7,359)    (7,314)        (1)      (453)      (860)         47 
 Litigation and conduct             (89)      (177)         50       (45)       (33)       (36) 
 Costs to achieve                  (293)      (453)         35       (23)       (41)         44 
=============================  =========  =========  =========  =========  =========  ========= 
 Total operating expenses        (7,741)    (7,944)          3      (521)      (934)         44 
 Other net (expenses)/income        (22)         47                     4       (66) 
=============================  =========  =========  =========  =========  =========  ========= 
 Profit/(loss) before 
  tax                              4,241      3,840         10      (512)      (491)        (4) 
 Tax (charge)/credit             (1,250)    (1,233)        (1)        173        124         40 
=============================  =========  =========  =========  =========  =========  ========= 
 Profit/(loss) after 
  tax                              2,991      2,607         15      (339)      (367)          8 
 Non-controlling interests         (306)      (315)          3       (32)       (75)         57 
 Other equity interests            (128)       (68)       (88)       (31)       (22)       (41) 
=============================  =========  =========  =========  =========  =========  ========= 
 Attributable profit/(loss)        2,557      2,224         15      (402)      (464)         13 
 
 Performance measures 
=============================  =========  =========  =========  =========  =========  ========= 
 Return on average tangible 
  equity(1)                        13.4%      13.5%                (4.3%)     (6.0%) 
 Average allocated tangible 
  equity (GBPbn)                      39         33                    10         14 
 Return on average equity(1)       11.1%      11.0%                (3.4%)     (4.5%) 
 Average allocated equity 
  (GBPbn)                             47         41                    10         14 
 Period end allocated 
  equity (GBPbn)                      47         42                     8         13 
 Cost: income ratio                  60%        63%                   n/m        n/m 
 Loan loss rate (bps)                 44         46                    10         45 
 Basic earnings per share 
  contribution                     15.5p      13.8p                (2.4p)     (2.9p) 
 
 Capital management             30.06.15   31.12.14              30.06.15   31.12.14 
=============================  =========  =========  =========  =========  =========  ========= 
 Risk weighted assets           GBP320bn   GBP327bn               GBP57bn    GBP75bn 
 Leverage exposure              GBP973bn   GBP956bn              GBP166bn   GBP277bn 
 
 
 
                                            30.06.15  30.06.14 
Income by business                              GBPm      GBPm  % Change 
==========================================  ========  ========  ======== 
Personal and Corporate Banking                 4,384     4,361         1 
Barclaycard                                    2,357     2,124        11 
Africa Banking                                 1,858     1,773         5 
Investment Bank                                4,299     4,257         1 
Head Office                                       42       159      (74) 
==========================================  ========  ========  ======== 
Barclays Core                                 12,940    12,674         2 
Barclays Non-Core                                 42       658      (94) 
==========================================  ========  ========  ======== 
Barclays Group adjusted total income          12,982    13,332       (3) 
 
                                            30.06.15  30.06.14 
Profit/(loss) before tax by business            GBPm      GBPm  % Change 
==========================================  ========  ========  ======== 
Personal and Corporate Banking                 1,528     1,468         4 
Barclaycard                                      795       764         4 
Africa Banking                                   540       484        12 
Investment Bank                                1,440     1,058        36 
Head Office                                     (62)        66 
==========================================  ========  ========  ======== 
Barclays Core                                  4,241     3,840        10 
Barclays Non-Core                              (512)     (491)       (4) 
==========================================  ========  ========  ======== 
Barclays Group adjusted profit before tax      3,729     3,349        11 
 
 
 
 1   Return on average equity and average tangible equity for Barclays 
      Non-Core represents its impact on the Group, being the difference 
      between Barclays Group returns and Barclays Core returns. This 
      does not represent the return on average equity and average 
      tangible equity of the Non-Core business. 
 

Executive Chairman's Review

"The results reported today represent continued good progress for the business.

Group profits are up on both an adjusted and statutory basis, and our core franchises have performed well. Non-Core rundown continues, costs remain under control, and we continue to seek to put conduct issues behind us. We announced settlements with certain authorities in the first half in respect of Foreign Exchange and ISDAFIX, although there is more to resolve. I am pleased that our CET1 and leverage ratios are now above 11% and 4% respectively. These are satisfactory, although we will continue to build capital in the medium-term, balancing the need to fund growth with the need to strengthen the ratios.

Barclays today has a good portfolio of businesses. However, we need to accelerate the execution of the strategy. There is more that can be done to deliver better returns for shareholders, faster, and that work has begun under three Group priorities which I have established since becoming Executive Chairman earlier this month.

Our first priority is to deliver on our strategy, with increased focus on our core franchises: what we are good at, where we are good at it and what is financially compelling to us.

That means aligning our effort and investment behind our key franchises of UK personal and commercial banking, investment banking in Europe and the US, our cards business, and on Africa. We will also act quickly to curtail activity which is marginal or which will not deliver the return on equity we require.

A sensibly planned faster run-down of Barclays Non-Core will be implemented, resulting in it having around GBP20bn of RWAs in 2017 when we expect to reintegrate it into the Core.

I am personally pleased with recent progress in the Investment Bank. It has generated a double-digit return in H1, and the challenge for the team is to convert this performance into sustainable economic returns through subsequent periods.

The second major priority of the group is to accelerate the delivery of shareholder value.

It was particularly pleasing this half to a see strong recovery in earnings, broadly flat costs on a statutory basis, a CET1 ratio that has risen above 11% for the first time and a leverage ratio above 4%, both achieving our 2016 targets.

However, the Group return on equity is 5.9% on a statutory basis, well short of our cost of equity, and our cost-income ratio is 70%, which is high for our business mix.

We need to accelerate growth in earnings, return on equity, and capital generation. To do this, we intend to grow revenues at least in line with the market, reduce our Group cost-income ratio into the mid 50s, accrete and deploy capital wisely, and thereby over time achieve a Group return on equity above our cost of equity.

The Board has concluded that it is appropriate to plan for a 6.5p dividend for 2015, the same level as 2014, as we focus on improving the returns of the business and accelerating the implementation of the strategy, while maintaining capital strength. Over time, rather than targeting a particular payout ratio range, we will aim to maintain a sustainable and progressive dividend policy, recognising the importance of dividend yield in delivering returns to shareholders.

I am not issuing new targets for the Group, but can confirm that we will adhere to our remaining targets. Now that we have achieved an 11% CET1 ratio, we would like this to continue to improve over time so that we reach our end state.

The third priority is to instil a high performance ethic and process across the Group, underpinned by an enhanced values driven culture. We need to be much more customer and client orientated in our approach, to streamline and eliminate unnecessary and cumbersome bureaucracy, and to embed direct accountability for activities within our businesses. Crucially we must do this in a way which is consistent with our values, and with strong controls in place, so that we build this business in the right way.

There is a lot we can do to accelerate our progress and the work has already begun."

John McFarlane, Executive Chairman

Group Finance Director's Review

Income statement

Group performance

-- Adjusted profit before tax increased 11% to GBP3,729m reflecting improvements in all Core operating businesses

-- Adjusted income decreased 3% to GBP12,982m as Non-Core income reduced GBP616m to GBP42m. This was partially offset by Core income increasing 2% to GBP12,940m

   --     Impairment reduced 10% to GBP973m, with the Group loan loss rate improving 5bps to 40bps 

-- Adjusted total operating expenses were down 7% to GBP8,262m as a result of savings from strategic cost programmes, particularly in Non-Core and the Investment Bank. Costs to achieve were GBP316m (H114: GBP494m) and litigation and conduct charges were GBP134m (H114: GBP211m)

-- Statutory profit before tax was GBP3,114m (H114: GBP2,501m) which also included an additional GBP1,032m (H114: GBP900m) of provisions for UK customer redress, a GBP496m gain (H114: GBPnil) on US Lehman acquisition assets, GBP800m (H114: GBPnil) of additional provisions for ongoing investigations and litigation primarily relating to Foreign Exchange, a GBP429m (H114: GBPnil) gain on the valuation of a component of the defined retirement benefit liability, a GBP118m (H114: GBPnil) loss on the sale of the Spanish business and an own credit gain of GBP410m (H114: GBP52m)

-- The effective tax rate on adjusted profit before tax decreased to 28.9% (H114: 33.1%) and on statutory profit before tax decreased to 32.3% (H114: 35.8%). The reduction reflects the expected full year rate adjusted for the impact of significant one-off items, including adjusting items and the UK bank levy, which is recognised in the period in which they occur

-- Adjusted attributable profit was GBP2,155m (H114: GBP1,760m) resulting in an adjusted return on average shareholders' equity of 7.7% (H114: 6.5%)

Core performance

-- Profit before tax increased 10% to GBP4,241m with improvements of 36% to GBP1,440m in the Investment Bank, 12% to GBP540m in Africa Banking, 4% to GBP1,528m in Personal and Corporate Banking (PCB) and 4% to GBP795m in Barclaycard

   --     Income increased 2% to GBP12,940m 

- Barclaycard income increased 11% to GBP2,357m reflecting growth in US cards and Business Solutions

- Africa Banking income increased 5% to GBP1,858m reflecting strong growth in Retail and Business Banking (RBB) due to the continued progress on the retail banking turnaround in South Africa

- PCB income increased 1% to GBP4,384m due to good growth in Corporate, partially offset by a reduction in Personal income due to mortgage margin pressure

- Net interest income in PCB, Barclaycard and Africa Banking increased 7% to GBP5,975m driven by lending and deposit growth and margin improvement in PCB, and volume growth in Barclaycard and Africa Banking. Net interest margin increased 11bps to 4.17%

- Investment Bank income increased 1% to GBP4,299m reflecting an improvement in Macro income due to higher income in rates and currency products, and an increase in Equities income, partially offset by lower Banking and Credit income

-- Credit impairment charges were in line at GBP936m (H114: GBP937m). This reflected lower impairments in PCB due to the improving UK economic environment resulting in lower default rates and charges in Corporate, offset by an increase of 5% in Barclaycard which was accompanied by loans and advances growth of 11% from June 2014. The loan loss rate reduced 2bps to 44bps

-- Total operating expenses decreased 3% to GBP7,741m, reflecting savings from strategic cost programmes, principally in the Investment Bank and lower costs to achieve of GBP293m (2014: GBP453m). Barclaycard total operating expenses increased 19% to GBP1,017m primarily due to continued investment in business growth and the impact of one-off items, including certain marketing costs and the non-recurrence of a H114 VAT refund

-- Attributable profit increased 15% to GBP2,557m, while average allocated equity increased GBP6bn to GBP47bn as capital was redeployed from Non-Core, resulting in an increase in Core return on average equity to 11.1% (H114: 11.0%)

Non-Core performance

   --     Loss before tax increased to GBP512m (H114: GBP491m) reflecting: 

- A reduction in income of GBP616m to GBP42m following assets and securities run-down, business disposals including the impact of the sale of the Spanish business, and fair value losses on the Education, Social Housing, and Local Authority (ESHLA) portfolio of GBP175m (H114: GBP29m)

- An improvement in impairment to GBP37m (H114: GBP149m) primarily reflecting the sale of the Spanish business and higher recoveries in Europe

- A 44% reduction in total operating expenses to GBP521m due to savings from strategic cost programmes, the sale of the Spanish business and reduced costs to achieve

-- Non-Core return on average equity dilution was 3.4% (H114: 4.5%) reflecting a reduction in average allocated equity to GBP10bn (H114: GBP14bn). Period end allocated equity reduced to GBP8bn (December 2014: GBP11bn)

Balance sheet and capital

Balance sheet

-- Total assets decreased 12% to GBP1,197bn compared to 31 December 2014, primarily due to reductions in derivatives and reverse repurchase agreements

- Total loans and advances increased GBP5bn to GBP475bn as a net GBP8bn increase in settlement and cash collateral balances was partially offset by a GBP3bn decrease due to the run-down of European retail assets within Non-Core

-- Customer accounts increased GBP11bn to GBP438bn primarily due to a GBP12bn increase within the Investment Bank as a result of higher settlement balances, partially offset by a GBP2bn decrease in Non-Core due to the run-down of the business

-- Total shareholders' equity including non-controlling interests was GBP65.6bn (December 2014: GBP66.0bn). Excluding non-controlling interests, shareholders' equity was GBP59.3bn (December 2014: GBP59.6bn) reflecting a reduction in other reserves of GBP1.4bn including a GBP0.6bn decrease in the cash flow hedging reserve, due to the impact of forward interest rate movements, and a GBP0.5bn decrease in the currency translation reserve as GBP strengthened against ZAR, EUR and USD. This was partially offset by a GBP0.7bn increase in share capital and share premium, due to the issuance of shares under employee share schemes and scrip dividends, and an increase of GBP0.4bn in retained earnings due to generated profit of GBP1.8bn offset by GBP0.7bn of dividends paid and GBP0.7bn of shares vesting in relation to employee share schemes

-- Net asset value and net tangible asset value per share decreased to 328p (December 2014: 335p) and 279p (December 2014: 285p) respectively as profit generated for the period was more than offset by the overall decrease in shareholders' equity as detailed above

Leverage exposure

   --     Leverage exposure decreased GBP94bn to GBP1,139bn driven by: 

- Securities Financing Transactions decreased by GBP40bn, primarily due to IFRS reverse repurchase agreements reducing GBP39bn to GBP93bn. This was driven by reductions in matched book trading as the balance sheet was deleveraged

- The Potential Future Exposure (PFE) on derivatives decreased GBP19bn to GBP160bn, mainly as a result of continued legacy portfolio run down and optimisation including trade compressions and tear-ups

- Derivative leverage exposure, excluding PFE, decreased GBP26bn partly due to a decrease in IFRS assets of GBP99bn to GBP341bn, offset by a decrease in derivative netting of GBP87bn to GBP308bn. These decreases were primarily due to increases in major forward rate curves and continued legacy portfolio run down

Capital ratios

-- The fully loaded CRD IV CET1 ratio increased to 11.1% (December 2014: 10.3%) due to a GBP25bn reduction in RWAs to GBP377bn and an increase in the fully loaded CRD IV CET1 capital of GBP0.5bn to GBP42.0bn

- The increase in CET1 capital was driven by GBP1.8bn profits after absorbing adjusting items. After further adjusting for the impacts of own credit and regulatory dividends paid and foreseen, capital generated from earnings increased CET1 capital by GBP0.3bn

- The reduction in RWAs was primarily driven by the reduction in Non-Core of GBP19bn to GBP57bn including the sale of the Spanish business, run-down of legacy structured and credit products, and a GBP7bn reduction in the Investment Bank driven by risk reduction in the trading book

-- The leverage ratio increased to 4.1% (December 2014: 3.7%) driven by a decrease in the leverage exposure to GBP1,139bn (December 2014: GBP1,233bn)

Funding and liquidity

-- The Group continued to maintain surpluses to its internal and regulatory requirements in H115 with a liquidity pool of GBP145bn (December 2014: GBP149bn). The Liquidity Coverage Ratio (LCR) decreased to 121% (December 2014: 124%), equivalent to a surplus of GBP26bn (December 2014: GBP30bn). The surpluses were built to position the Group for outflows associated with credit rating changes as a result of credit rating agencies' assessment of sovereign support. Whilst the ratings changes occurred during Q215, the expected funding impacts had not fully materialised by the end of H115

-- Wholesale funding outstanding excluding repurchase agreements was GBP157bn (December 2014: GBP171bn). The Group issued GBP6bn of term funding net of early redemptions during H115, of which GBP3bn was in senior unsecured debt issued by the holding company, Barclays PLC. These proceeds have been used to subscribe for senior unsecured debt at Barclays Bank PLC, the operating company. This demonstrates further progress on the transition towards a holding company capital and funding model

Other matters

-- Provisions of GBP484m (December 2014: GBP1,690m) are held for Legal, Competition and Regulatory matters

- Additional provisions of GBP800m (H114: GBPnil) were made for ongoing investigations and litigation primarily relating to Foreign Exchange, taking the total provisions recognised to GBP2,050m. Settlements of GBP1,608m were reached in Q215 with a number of authorities in relation to industry-wide investigations into certain sales and trading practices in the Foreign Exchange market and an industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark

-- Additional UK customer redress provisions of GBP1,032m (H114: GBP900m) were recognised including GBP850m in Q215. This includes additional charges for PPI redress based on an updated estimate of future redress costs of GBP750m (H114: GBP900m), GBP600m of which was recognised in Q215. As at June 2015 the PPI redress provision held was GBP1,268m (December 2014: GBP1,059m)

-- A GBP496m (H114: GBPnil) gain on US Lehman acquisition assets was recognised in Q215. Barclays has reached a settlement with the Securities Investor Protection Act Trustee for Lehman Brothers Inc. (LBI) to resolve outstanding litigation between the parties relating to the acquisition of most of the assets of LBI in September 2008

-- A GBP429m (H114: GBPnil) gain was recognised in Q115 as the valuation of a component of the defined retirement benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with statutory provisions

-- A GBP118m (H114: GBPnil) loss was recognised in Q115 primarily relating to accumulated currency translation reserves recycled upon the completion of the Spanish business sale

Dividends

-- The Board recognises the importance of paying returns to shareholders by way of dividends and expects to deliver, over time, a dividend that is sustainable and progressive rather than targeting a particular payout ratio range

-- For 2015, the Board has concluded that it is appropriate to plan for a 6.5p distribution, the same level as 2014, while we focus on improving the returns of the business and accelerating the implementation of the strategy whilst maintaining capital strength

   --     A second interim dividend of 1p will be paid on 14 September 2015 

Barclays Non-Core Guidance

-- We have made significant progress in running down Barclays Non-Core since it was established as a separate unit in 2014. Non-Core RWAs have been reduced from GBP110bn in December 2013 to GBP57bn, resulting in an equity allocation of GBP8.3bn as at June 2015, 15% of the Group total and down from GBP15.1bn as at December 2013

-- We now have greater visibility as to the options available to us in order to reduce Non-Core's influence on the Group's financial results through lower capital requirements and operating losses. We therefore plan to reduce Non-Core RWAs to around GBP20bn by the end of 2017, at which point we expect the Non-Core unit will be reintegrated into the Core business where it will continue to be managed down. This revised guidance replaces previous guidance of reducing Non-Core RWAs to GBP45bn at the end of 2016

Tushar Morzaria, Group Finance Director

Results by Business

 
Personal and Corporate Banking                Half year       Half year 
                                                  ended           ended 
                                               30.06.15        30.06.14             YoY 
Income statement information                       GBPm            GBPm        % Change 
=======================================  ==============  ==============  ============== 
Net interest income                               3,203           3,057               5 
Net fee, commission and other income              1,181           1,304             (9) 
=======================================  ==============  ==============  ============== 
Total income                                      4,384           4,361               1 
Credit impairment charges and other 
 provisions                                       (178)           (230)              23 
=======================================  ==============  ==============  ============== 
Net operating income                              4,206           4,131               2 
Operating expenses                              (2,466)         (2,525)               2 
Litigation and conduct                             (25)            (29)              14 
Costs to achieve                                  (139)           (115)            (21) 
Total operating expenses                        (2,630)         (2,669)               1 
Other net (expenses)/income                        (48)               6 
=======================================  ==============  ==============  ============== 
Profit before tax                                 1,528           1,468               4 
Attributable profit                               1,102           1,039               6 
 
                                         As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                         GBPbn           GBPbn           GBPbn 
=======================================  ==============  ==============  ============== 
Loans and advances to customers at 
 amortised cost                                   217.5           217.0           216.7 
Total assets                                      289.9           285.0           268.1 
Customer deposits                                 298.5           299.2           298.3 
Risk weighted assets                              120.6           120.2           117.9 
 
                                              Half year       Half year 
                                                  ended           ended 
Key facts                                      30.06.15        30.06.14 
=======================================                                  ============== 
Average LTV of mortgage lending(1)                  51%             55% 
Average LTV of new mortgage lending(1)              62%             64% 
Client assets(2)                             GBP142.6bn      GBP151.3bn 
Number of branches                                1,448           1,546 
 
Performance measures 
=======================================  ==============  ==============  ============== 
Return on average tangible equity                 16.4%           16.1% 
Average allocated tangible equity 
 (GBPbn)                                           13.6            13.0 
Return on average equity                          12.3%           12.1% 
Average allocated equity (GBPbn)                   18.1            17.3 
Cost: income ratio                                  60%             61% 
Loan loss rate (bps)                                 16              21 
 
                                                                                    YoY 
Analysis of total income                           GBPm            GBPm        % Change 
=======================================  ==============  ==============  ============== 
Personal                                          2,014           2,053             (2) 
Corporate                                         1,877           1,768               6 
Wealth                                              493             540             (9) 
=======================================  ==============  ==============  ============== 
Total income                                      4,384           4,361               1 
 
                                         As at 30.06.15  As at 31.12.14  As at 30.06.14 
Analysis of loans and advances to                 GBPbn           GBPbn           GBPbn 
 customers at amortised cost 
=======================================  ==============  ==============  ============== 
Personal                                          137.8           136.8           135.9 
Corporate                                          66.0            65.1            64.8 
Wealth                                             13.7            15.1            16.0 
=======================================  ==============  ==============  ============== 
Total loans and advances to customers 
 at amortised cost                                217.5           217.0           216.7 
 
Analysis of customer deposits 
=======================================  ==============  ==============  ============== 
Personal                                          146.3           145.8           141.6 
Corporate                                         120.3           122.2           123.7 
Wealth                                             31.9            31.2            33.0 
=======================================  ==============  ==============  ============== 
Total customer deposits                           298.5           299.2           298.3 
 
 
 
 1   Average LTV of mortgage lending and new mortgage lending calculated 
      on the balance weighted basis. 
 2   Includes assets managed or administered by Barclays on behalf 
      of clients including assets under management (AUM), custody assets, 
      assets under administration, and Wealth client deposits and client 
      lending. 
 

Personal and Corporate Banking

Income statement - H115 compared to H114

-- Profit before tax increased 4% to GBP1,528m with a return on average equity of 12.3% (H114: 12.1%). Total operating expenses reduced due to increased automation and the net closure of 98 branches. Operating expenses were also impacted by investment in digital and the customer experience across multiple channels. Impairment reduced due to the improving economic environment in the UK

-- PCB results were significantly impacted by GBP171m of charges in Wealth relating to customer redress in the US and the announced disposal of the US business. Income was impacted by GBP29m, operating expenses by GBP87m of which GBP56m were costs to achieve, and other net expenses included a GBP55m loss on sale

   --     Total income increased 1% to GBP4,384m 

- Personal income reduced 2% to GBP2,014m due to mortgage margin pressure from existing customer rate switching and lower fee income, partially offset by balance growth and improved savings margins

- Corporate income increased 6% to GBP1,877m with balance growth in both average lending and deposits, and improved deposits margins, partially offset by lending margin compression

- Wealth income reduced 9% to GBP493m primarily as a result of the impact of customer redress in the US

- Net interest income increased 5% to GBP3,203m driven by margin improvement, lending and deposit growth and the launch of a revised overdraft proposition in H214, which recognises the majority of overdraft income as net interest income as opposed to fee income

- Net interest margin improved 5bps to 3.01% due to higher deposit margins within Corporate and Personal. This was partially offset by the impact of mortgage margin pressure from existing customer rate switching

- Net fee, commission and other income reduced 9% to GBP1,181m due to the launch of the revised overdraft proposition in H214 and the impact of customer redress in the US

-- Credit impairment charges improved 23% to GBP178m and the loan loss rate reduced 5bps to 16bps due to the improving economic environment in the UK, particularly impacting Corporate which benefited from lower defaults of large UK Corporate clients

-- Total operating expenses reduced 1% to GBP2,630m. This reflected savings realised from strategic cost programmes relating to restructuring of the branch network and technology improvements to increase automation, partially offset by costs to achieve of GBP56m relating to the announced disposal of the US Wealth business

-- Client assets decreased GBP8.7bn to GBP142.6bn primarily due to the announced disposal of the US Wealth business and ongoing strategic market exits

Balance sheet - 30 June 2015 compared to 31 December 2014

-- Loans and advances to customers increased GBP0.5bn to GBP217.5bn due to growth in mortgages and Corporate lending

-- Total assets increased GBP4.9bn to GBP289.9bn primarily driven by an increase in the allocation of liquidity pool assets and the growth in loans and advances to customers

   --     Customer deposits decreased GBP0.7bn to GBP298.5bn 

-- RWAs increased GBP0.4bn to GBP120.6bn primarily driven by growth in mortgages and Corporate lending

 
Barclaycard                                 Half year       Half year 
                                                ended           ended 
                                             30.06.15        30.06.14             YoY 
Income statement information                     GBPm            GBPm        % Change 
=====================================  ==============  ==============  ============== 
Net interest income                             1,704           1,500              14 
Net fee, commission and other income              653             624               5 
=====================================  ==============  ==============  ============== 
Total income                                    2,357           2,124              11 
Credit impairment charges and other 
 provisions                                     (563)           (537)             (5) 
=====================================  ==============  ==============  ============== 
Net operating income                            1,794           1,587              13 
Operating expenses                              (961)           (822)            (17) 
Costs to achieve                                 (56)            (36)            (56) 
Total operating expenses                      (1,017)           (858)            (19) 
Other net income                                   18              35            (49) 
=====================================  ==============  ============== 
Profit before tax                                 795             764               4 
Attributable profit                               566             539               5 
 
                                       As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                       GBPbn           GBPbn           GBPbn 
=====================================  ==============  ==============  ============== 
Loans and advances to customers at 
 amortised cost                                  36.9            36.6            33.2 
Total assets                                     41.9            41.3            36.2 
Customer deposits                                 7.7             7.3             5.9 
Risk weighted assets                             40.3            39.9            37.7 
 
                                            Half year       Half year 
                                                ended           ended 
Key facts                                    30.06.15        30.06.14 
=====================================  ==============  ==============  ============== 
30 day arrears rates - UK cards                  2.4%            2.4% 
30 day arrears rates - US cards                  1.9%            1.9% 
Total number of Barclaycard consumer 
 customers                                      29.9m           27.8m 
Total number of Barclaycard business 
 clients                                      343,000         352,000 
Value of payments processed                  GBP145bn        GBP124bn 
 
Performance measures 
=====================================  ==============  ==============  ============== 
Return on average tangible equity               22.9%           23.6% 
Average allocated tangible equity 
 (GBPbn)                                          5.0             4.6 
Return on average equity                        18.2%           18.9% 
Average allocated equity (GBPbn)                  6.3             5.7 
Cost: income ratio                                43%             40% 
Loan loss rate (bps)                              293             311 
 

Barclaycard

Income statement - H115 compared to H114

-- Profit before tax increased 4% to GBP795m. The diversified consumer and merchant business model led to income growth of 11% to GBP2,357m with substantial business growth in US cards. The continued focus on risk management is reflected in stable 30-day delinquency rates and a falling loan loss rate. Although total operating expenses increased, this was a result of continued investment for growth, as loans and advances increased 11% from June 2014 and the customer base increased across all geographies over the same period. Return on average equity continued to be strong at 18.2% (H114: 18.9%)

-- Total income increased 11% to GBP2,357m driven by business growth in US cards and the appreciation of average USD against GBP, partially offset by the impact of rate capping from European Interchange Fee Regulation

-- Net interest income increased 14% to GBP1,704m driven by business growth, whilst the net interest margin was maintained at 9.05% (H114: 9.05%)

-- Net fee, commission and other income increased 5% to GBP653m due to growth in US cards and Business Solutions, partially offset by the impact of changes to European Interchange Fee Regulation

-- Credit impairment charges increased 5% to GBP563m with loans and advances growth of 11% to GBP36.9bn over the same period. Delinquency rates remained stable and the loan loss rate improved 18bps to 293bps

-- Total operating expenses increased 19% to GBP1,017m due to continued investment in business growth, higher costs to achieve, the appreciation of average USD against GBP and the impact of one-off items, including certain marketing costs and the non-recurrence of a VAT refund in H114

Balance sheet - 30 June 2015 compared to 31 December 2014

   --     Loans and advances to customers increased 1% to GBP36.9bn with balance growth in US cards 

-- Total assets increased 1% to GBP41.9bn mainly due to the increase in loans and advances to customers

   --     Customer deposits increased 5% to GBP7.7bn driven by the deposits funding strategy in the US 

-- RWAs increased GBP0.4bn to GBP40.3bn primarily driven by growth in loans and advances to customers

 
Africa Banking                                Half year       Half year 
                                                  ended           ended 
                                               30.06.15        30.06.14             YoY 
Income statement information                       GBPm            GBPm        % Change 
=======================================  ==============  ==============  ============== 
Net interest income                               1,068           1,007               6 
Net fee, commission and other income                871             850               2 
=======================================  ==============  ==============  ============== 
Total income                                      1,939           1,857               4 
Net claims and benefits incurred 
 under insurance contracts                         (81)            (84)               4 
=======================================  ==============  ==============  ============== 
Total income net of insurance claims              1,858           1,773               5 
Credit impairment charges and other 
 provisions                                       (193)           (196)               2 
=======================================  ==============  ==============  ============== 
Net operating income                              1,665           1,577               6 
Operating expenses                              (1,116)         (1,082)             (3) 
Costs to achieve                                   (13)            (17)              24 
Total operating expenses                        (1,129)         (1,099)             (3) 
Other net income                                      4               6            (33) 
=======================================  ==============  ==============  ============== 
Profit before tax                                   540             484              12 
Attributable profit                                 208             181              15 
 
                                         As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                         GBPbn           GBPbn           GBPbn 
=======================================  ==============  ==============  ============== 
Loans and advances to customers at 
 amortised cost                                    33.8            35.2            33.8 
Total assets                                       54.0            55.5            52.4 
Customer deposits                                  34.4            35.0            33.2 
Risk weighted assets                               36.4            38.5            36.5 
 
Constant currency(1) 
=======================================  ==============  ==============  ============== 
Loans and advances to customers at 
 amortised cost                                    33.8            33.2            32.1 
Total assets                                       54.0            52.2            49.9 
Customer deposits                                  34.4            33.1            31.6 
Risk weighted assets                               36.4            36.3            34.7 
 
                                              Half year       Half year 
                                                  ended           ended 
Key facts                                      30.06.15        30.06.14 
=======================================  ==============  ==============  ============== 
Average LTV of mortgage lending(2)                  59%             61% 
Average LTV of new mortgage lending(2)              76%             75% 
 
Performance measures 
=======================================  ==============  ==============  ============== 
Return on average tangible equity                 14.0%           13.3% 
Average allocated tangible equity 
 (GBPbn)                                            3.0             2.7 
Return on average equity                          10.3%            9.6% 
Average allocated equity (GBPbn)                    4.0             3.8 
Cost: income ratio                                  61%             62% 
Loan loss rate (bps)                                105             110 
 
 
       Constant currency results are calculated by converting ZAR results 
   1    into GBP using the 30 June 2015 exchange rate for the balance 
        sheet to eliminate the impact of movement in the exchange rate 
        between the reporting periods. 
 2     Calculated on the balance weighted basis. 
 

Africa Banking

Income statement - H115 compared to H114

-- Based on average rates, ZAR depreciated against GBP by 2% in H115 against H114. The deterioration was not a significant contributor to the movement in the reported income statement results of Africa Banking; therefore, the discussion of business performance below is based on reported results in GBP

-- Profit before tax increased 12% to GBP540m reflecting strong growth in Retail and Business Banking (RBB) due to the continued progress on the retail banking turnaround in South Africa. Performance in South Africa also showed good growth in corporate banking and Wealth, Investment Management and Insurance (WIMI), partially offset by lower trading performance. Performance outside of South Africa showed strong growth in trading performance and WIMI, partially offset by a small reduction in growth in corporate banking

   --     Total income net of insurance claims increased 5% to GBP1,858m 

- Net interest income increased 6% to GBP1,068m driven by higher average loans and advances to customers in Corporate and Investment Banking (CIB) and growth in customer deposits in the South African RBB and Corporate businesses. Net interest margin increased 10bps to 5.97% as CIB continued the strategy of replacing swaps with currency matched funding. This has resulted in an improvement in net interest income and a reduction in hedging income recognised in net fee, commission and other income

- Net fee, commission and other income increased 2% to GBP871m mainly reflecting increased transactional revenue in South Africa, partially offset by lower hedging income

-- Credit impairment charges were broadly in line at GBP193m (H114: GBP196m) and the loan loss rate improved 5bps to 105bps driven by reduced impairments in the South Africa mortgages portfolio and business banking, partially offset by increased impairments in CIB and additional coverage on performing loans

-- Total operating expenses increased 3% to GBP1,129m reflecting inflationary impacts on staff costs and increased investment spend on key initiatives, partially offset by savings from strategic cost programmes mainly in property and technology

Balance sheet - 30 June 2015 compared to 31 December 2014

-- Based on closing rates, ZAR depreciated against GBP by 6% at 30 June 2015 against 31 December 2014. The deterioration was a significant contributor to the movement in the reported balance sheet results of Africa Banking; therefore, the discussion of business performance below is based on results on a constant currency basis

-- Loans and advances to customers increased 2% to GBP33.8bn driven by strong CIB growth in South Africa and growth in RBB, which included a modest reduction in the South Africa mortgages portfolio

-- Total assets increased 3% to GBP54.0bn primarily due to the increase in loans and advances to customers and banks

-- Customer deposits increased 4% to GBP34.4bn reflecting strong growth in the RBB South Africa and Corporate businesses

-- RWAs increased GBP0.1bn to GBP36.4bn primarily driven by growth in loans and advances to customers

 
Investment Bank                                    Half year       Half year 
                                                       ended           ended 
                                                    30.06.15        30.06.14             YoY 
Income statement information                            GBPm            GBPm        % Change 
============================================  ==============  ==============  ============== 
Net interest income                                      276             334            (17) 
Net trading income                                     2,423           2,137              13 
Net fee, commission and other income                   1,600           1,786            (10) 
============================================  ==============  ==============  ============== 
Total income                                           4,299           4,257               1 
Credit impairment (charges)/releases 
 and other provisions                                    (1)              26 
============================================  ==============  ==============  ============== 
Net operating income                                   4,298           4,283               - 
Operating expenses                                   (2,738)         (2,848)               4 
Litigation and conduct                                  (57)            (95)              40 
Costs to achieve                                        (63)           (282)              78 
Total operating expenses                             (2,858)         (3,225)              11 
Profit before tax                                      1,440           1,058              36 
Attributable profit                                      761             435              75 
 
                                              As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                              GBPbn           GBPbn           GBPbn 
============================================  ==============  ==============  ============== 
Loans and advances to banks and customers 
 at amortised cost(1)                                  123.1           106.3           117.2 
Trading portfolio assets                                81.8            94.8           101.2 
Derivative financial instrument assets                 118.5           152.6           104.2 
Derivative financial instrument liabilities            127.7           160.6           109.5 
Reverse repurchase agreements and 
 other similar secured lending                          58.4            64.3            83.0 
Total assets                                           420.1           455.7           446.2 
Risk weighted assets                                   115.3           122.4           123.9 
 
                                                   Half year       Half year 
                                                       ended           ended 
Performance measures                                30.06.15        30.06.14 
============================================  ==============  ==============  ============== 
Return on average tangible equity                      10.9%            6.0% 
Average allocated tangible equity 
 (GBPbn)                                                14.2            14.7 
Return on average equity                               10.2%            5.7% 
Average allocated equity (GBPbn)                        15.1            15.4 
Cost: income ratio                                       66%             76% 
 
 
 
                                              YoY 
Analysis of total income    GBPm   GBPm  % Change 
                           =====  =====  ======== 
Investment banking fees    1,135  1,174       (3) 
Lending                      205    169        21 
=========================         =====  ======== 
Banking                    1,340  1,343         - 
Credit                       546    616      (11) 
Equities                   1,235  1,220         1 
Macro                      1,178  1,056        12 
=========================  =====  =====  ======== 
Markets                    2,959  2,892         2 
=========================  =====  =====  ======== 
Banking & Markets          4,299  4,235         2 
Other                          -     22 
Total income               4,299  4,257         1 
 
 
 1   As at 30 June 2015 loans and advances included GBP99.1bn (December 
      2014: GBP86.4bn) of loans and advances to customers, including 
      settlement balances of GBP40.4bn (December 2014: GBP25.8bn) and 
      cash collateral of GBP28.6bn (December 2014: GBP32.2bn) and loans 
      and advances to banks of GBP24.0bn (December 2014: GBP19.9bn), 
      including settlement balances of GBP5.9bn (December 2014: GBP2.7bn) 
      and cash collateral of GBP6.4bn (December 2014: GBP6.9bn). 
 

Investment Bank

Income statement - H115 compared to H114

-- Profit before tax increased 36% to GBP1,440m. The Investment Bank continued to build on its origination led strategy, whilst the re-sized Macro business benefited from increased market volatility in H115 reflecting uncertainty around Greece and the Eurozone. Higher income as well as a continued focus on driving cost savings and RWA efficiencies resulted in a return on average equity of 10.2% (H114: 5.7%)

   --     Total income increased 1% to GBP4,299m 

- Banking income was in line at GBP1,340m (H114: GBP1,343m). Investment banking fee income decreased 3% to GBP1,135m driven by lower equity underwriting and financial advisory fees. Lending income increased 21% to GBP205m due to lower fair value losses on hedges

   -    Markets income increased 2% to GBP2,959m 

- Equities increased 1% to GBP1,235m due to higher income in equity financing and cash equities, partially offset by lower income in equity derivatives

- Macro increased 12% to GBP1,178m due to higher income in rates and currency products, reflecting increased market volatility

- Credit decreased 11% to GBP546m driven by lower income in distressed credit and securitised products, partially offset by increased income in credit flow trading

   --     Credit impairment charges were GBP1m (H114: release of GBP26m) 

-- Total operating expenses decreased 11% to GBP2,858m reflecting lower costs to achieve, a reduction in compensation costs and savings from strategic cost programmes including business restructuring, system decommissioning and a reduction in real estate infrastructure

Balance sheet - 30 June 2015 compared to 31 December 2014

-- Derivative financial instrument assets and liabilities decreased 22% to GBP118.5bn and 20% to GBP127.7bn respectively, due to increases in major forward rate curves

   --     Trading portfolio assets decreased 14% to GBP81.8bn due to a decrease in equity securities 

-- Total assets decreased 8% to GBP420.1bn due to a decrease in derivative financial instrument assets, trading portfolio assets and reverse repurchase agreements, partially offset by an increase in settlement balances within loans and advances to customers and banks

   --     RWAs decreased 6% to GBP115.3bn primarily driven by risk reductions in the trading book 
 
Head Office                                Half year       Half year 
                                               ended           ended 
                                            30.06.15        30.06.14 
Income statement information                    GBPm            GBPm 
====================================  ==============  ============== 
Total income                                      42             159 
Credit impairment charges and other 
 provisions                                      (1)               - 
====================================  ==============  ============== 
Net operating income                              41             159 
Operating expenses                              (78)            (37) 
Litigation and conduct                           (7)            (54) 
Costs to achieve                                (22)             (2) 
 
Total operating expenses                       (107)            (93) 
Other net income                                   4               - 
====================================  ==============  ============== 
(Loss)/profit before tax                        (62)              66 
Attributable (loss)/profit                      (80)              30 
 
                                      As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                      GBPbn           GBPbn           GBPbn 
====================================  ==============  ==============  ============== 
Total assets                                    52.6            49.1            43.3 
Risk weighted assets                             7.5             5.6             7.6 
 

Head Office

Income statement - H115 compared to H114

   --     Loss before tax of GBP62m moved from a profit of GBP66m in H114 

-- Total income decreased GBP117m to GBP42m due to the non-recurrence of net gains from foreign exchange recycling arising from the restructure of Group subsidiaries and gains resulting from a liability management exercise in H114

-- Total operating expenses increased GBP14m to GBP107m due to costs relating to structural reform and an increase in costs to achieve, partially offset by the non-recurrence of H114 litigation and conduct charges

Balance sheet - 30 June 2015 compared to 31 December 2014

-- Total assets increased GBP3.5bn to GBP52.6bn reflecting additional cash held to meet daily treasury operational settlements

-- RWAs increased GBP1.9bn to GBP7.5bn primarily due to reallocations of Group-wide market and operational risk

 
Barclays Non-Core                                  Half year       Half year 
                                                       ended           ended 
                                                    30.06.15        30.06.14             YoY 
Income statement information                            GBPm            GBPm        % Change 
============================================  ==============  ==============  ============== 
Net interest income                                      128             183            (30) 
Net trading income                                     (250)             116 
Net fee, commission and other income                     331             514            (36) 
============================================  ==============  ==============  ============== 
Total income                                             209             813            (74) 
Net claims and benefits incurred 
 under insurance contracts                             (167)           (155)             (8) 
============================================  ==============  ==============  ============== 
Total income net of insurance claims                      42             658            (94) 
Credit impairment charges and other 
 provisions                                             (37)           (149)              75 
============================================  ==============  ==============  ============== 
Net operating income                                       5             509            (99) 
Operating expenses                                     (453)           (860)              47 
Litigation and conduct                                  (45)            (33)            (36) 
Costs to achieve                                        (23)            (41)              44 
Total operating expenses                               (521)           (934)              44 
Other net income/(expenses)                                4            (66) 
============================================  ==============  ==============  ============== 
Loss before tax                                        (512)           (491)             (4) 
Attributable loss                                      (402)           (464)              13 
 
                                              As at 30.06.15  As at 31.12.14  As at 30.06.14 
Balance sheet information                              GBPbn           GBPbn           GBPbn 
============================================  ==============  ==============  ============== 
Loans and advances to banks and customers 
 at amortised cost(1)                                   53.9            63.9            75.5 
Loans and advances to customers at 
 fair value                                             17.0            18.7            17.0 
Trading portfolio assets                                11.6            15.9            22.9 
Derivative financial instrument assets                 220.9           285.4           227.0 
Derivative financial instrument liabilities            213.6           277.1           215.0 
Reverse repurchase agreements and 
 other similar secured lending                          15.6            49.3            86.8 
Total assets                                           338.2           471.5           468.6 
Customer deposits                                       19.6            21.6            28.6 
Risk weighted assets                                    56.6            75.3            87.5 
Leverage exposure                                      166.3           277.5           381.7 
 
                                                   Half year       Half year 
                                                       ended           ended 
Performance measures                                30.06.15        30.06.14 
============================================  ==============  ==============  ============== 
Return on average tangible equity(2)                  (4.3%)          (6.0%) 
Average allocated tangible equity 
 (GBPbn)                                                 9.7            14.2 
Return on average equity(2)                           (3.4%)          (4.5%) 
Average allocated equity (GBPbn)                         9.8            14.5 
Period end allocated equity (GBPbn)                      8.3            12.7 
 
                                                                                         YoY 
Analysis of total income net of insurance               GBPm            GBPm        % Change 
 claims 
============================================  ==============  ==============  ============== 
Businesses                                               275             546            (50) 
Securities and Loans                                   (115)             153 
Derivatives                                            (118)            (41) 
============================================  ==============  ==============  ============== 
Total income net of insurance claims                      42             658            (94) 
 
 
 
 1   As at 30 June 2015 loans and advances included GBP42.7bn (December 
      2014: GBP51.6bn) of loans and advances to customers (including 
      settlement balances of GBP1.0bn (December 2014: GBP1.6bn) and 
      cash collateral of GBP18.0bn (December 2014: GBP22.1bn) and loans 
      and advances to banks of GBP11.2bn (December 2014: GBP12.3bn) 
      (including settlement balances of GBP0.2bn (December 2014: GBP0.3bn) 
      and cash collateral of GBP10.5bn (December 2014: GBP11.3bn)). 
 2   Return on average equity and average tangible equity for Barclays 
      Non-Core represents its impact on the Group, being the difference 
      between Barclays Group returns and Barclays Core returns. This 
      does not represent the return on average equity and average tangible 
      equity of the Non-Core business. 
 

Barclays Non-Core

Income statement - H115 compared to H114

-- Loss before tax increased 4% to GBP512m. Barclays Non-Core (BNC) continued to make good progress in exiting and running down businesses, securities and derivative assets during H115. RWAs reduced a further GBP18.7bn to GBP56.6bn from December 2014

   --     Total income net of insurance claims reduced 94% to GBP42m 

- Businesses income reduced 50% to GBP275m due to the impact of the sale of the Spanish business and the sale and run-down of legacy portfolio assets

- Securities and loans income reduced GBP268m to an expense of GBP115m primarily due to fair value losses on the ESHLA portfolio of GBP175m (H114: GBP29m) and the active run-down of securities, partially offset by a GBP91m release of a litigation provision

- Derivatives income reduced GBP77m to an expense of GBP118m reflecting the active run-down of the portfolios and fair value movements

-- Credit impairment charges reduced 75% to GBP37m due to the sale of the Spanish business and higher recoveries in Europe

-- Total operating expenses improved 44% to GBP521m reflecting savings from the exit of the Spanish, UAE, commodities, and several principal investment businesses

Balance sheet - 30 June 2015 compared to 31 December 2014

-- Loans and advances to banks and customers reduced 16% to GBP53.9bn due to a reduction in Europe retail driven by the run-off of assets and a reduction in cash collateral balances

-- Trading portfolio assets reduced 27% to GBP11.6bn due to the sale and run-down of legacy portfolio assets

-- Derivative financial instrument assets and liabilities both decreased 23% to GBP220.9bn and GBP213.6bn respectively, driven by increases in major forward rate curves and the unwinding of trade positions

-- Total assets decreased 28% to GBP338.2bn with reduced derivative financial assets, reverse repurchase agreements and other similar secured lending, loans and advances to banks and customers, and trading portfolio assets

-- Leverage exposure reduced 40% to GBP166.3bn driven by a reduction in derivatives and reverse repurchase agreements

-- RWAs decreased GBP18.7bn to GBP56.6bn including the sale of the Spanish business and run down of legacy structured and credit products. Period end allocated equity decreased GBP2.7bn to GBP8.3bn

Quarterly Results Summary

 
Barclays results by quarter          Q215  Q115(1)     Q414     Q314     Q214     Q114     Q413  Q313(2) 
                                     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Adjusted basis 
Total income net of insurance 
 claims                             6,552    6,430    6,018    6,378    6,682    6,650    6,639    6,445 
Credit impairment charges 
 and other provisions               (496)    (477)    (573)    (509)    (538)    (548)    (718)    (722) 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                6,056    5,953    5,445    5,869    6,144    6,102    5,921    5,723 
Operating expenses                (3,897)  (3,915)  (3,942)  (3,879)  (4,042)  (4,130)  (4,500)  (4,223) 
Litigation and conduct               (77)     (57)    (140)     (98)    (146)     (65)    (277)     (39) 
Costs to achieve                    (196)    (120)    (339)    (332)    (254)    (240)    (468)    (101) 
UK bank levy                            -        -    (462)        -        -        -    (504)        - 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses          (4,170)  (4,092)  (4,883)  (4,309)  (4,442)  (4,435)  (5,749)  (4,363) 
Other net (expenses)/income          (37)       19        1       30     (46)       26       19       25 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Adjusted profit before 
 tax                                1,849    1,880      563    1,590    1,656    1,693      191    1,385 
 
Adjusting items 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Own credit                            282      128     (62)       44     (67)      119     (95)    (211) 
Gain on US Lehman acquisition 
 assets                               496        -        -      461        -        -        -        - 
ESHLA valuation revision                -        -    (935)        -        -        -        -        - 
Gain on valuation of a 
 component of the defined 
 retirement benefit liability           -      429        -        -        -        -        -        - 
Provisions for ongoing 
 investigations and litigation 
 primarily relating to Foreign 
 Exchange                               -    (800)    (750)    (500)        -        -        -        - 
Provisions for UK customer 
 redress                            (850)    (182)    (200)     (10)    (900)        -        -        - 
Goodwill impairment                     -        -        -        -        -        -     (79)        - 
Loss on sale of the Spanish 
 business                               -    (118)     (82)    (364)        -        -        -        - 
Statutory profit/(loss) 
 before tax                         1,777    1,337  (1,466)    1,221      689    1,812       17    1,174 
Tax (charge)/credit                 (394)    (612)       85    (601)    (298)    (597)    (531)    (446) 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Statutory profit/(loss) 
 after tax                          1,383      725  (1,381)      620      391    1,215    (514)      728 
 
Attributable to: 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Ordinary equity holders 
 of the parent                      1,146      465  (1,679)      379      161      965    (642)      511 
Other equity holders                   79       80       80       80       41       49        -        - 
Non-controlling interests             158      180      218      161      189      201      128      217 
 
Balance sheet information           GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total assets                      1,196.7  1,416.4  1,357.9  1,365.7  1,314.9  1,362.1  1,343.6      n/a 
Risk weighted assets                376.7    395.9    401.9    412.9    411.1    436.3    442.5      n/a 
 
Adjusted performance measures 
--------------------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
Return on average tangible 
 shareholders' equity                9.1%     9.0%     1.7%     7.1%     7.5%     7.6%   (3.4%)     6.7% 
Average tangible shareholders' 
 equity (GBPbn)                      47.7     48.7     48.9     47.6     47.5     47.2     47.1     43.5 
Return on average shareholders' 
 equity                              7.8%     7.7%     1.5%     6.1%     6.4%     6.5%   (2.9%)     5.7% 
Average shareholders' equity 
 (GBPbn)                             56.0     57.0     57.1     55.6     55.3     54.8     54.9     51.3 
Cost: income ratio                    64%      64%      81%      68%      66%      67%      87%      68% 
Loan loss rate (bps)                   41       37       48       42       44       45       59       58 
Basic earnings/(loss) per 
 share                               6.5p     6.6p     1.3p     5.2p     5.4p     5.5p   (2.8p)     5.4p 
 
Statutory performance measures 
--------------------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
Return on average tangible 
 shareholders' equity                9.8%     4.0%  (13.8%)     3.4%     1.4%     8.4%   (5.5%)     4.8% 
Average tangible shareholders' 
 equity (GBPbn)                      47.2     48.1     48.3     46.8     46.7     46.4     46.3     42.8 
Return on average shareholders' 
 equity                              8.4%     3.4%  (11.8%)     2.9%     1.2%     7.2%   (4.7%)     4.0% 
Average shareholders' equity 
 (GBPbn)                             55.5     56.3     56.4     54.8     54.5     54.0     54.1     50.6 
Cost: income ratio                    68%      71%     116%      70%      81%      66%      89%      70% 
Basic earnings/(loss) per 
 share                               7.0p     2.9p  (10.2p)     2.4p     1.0p     6.0p   (4.5p)     3.8p 
 
 
 
 1   Q115 adjusted total operating expenses and profit before tax 
      has been revised to account for the reclassification of GBP32m 
      of charges relating to UK customer redress to aid comparability 
      with Q215. 
 2   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. Balance sheet comparative figures have also been 
      restated from Q413 to adopt the offsetting amendments to IAS32, 
      Financial Instruments: Presentation; therefore no Q313 comparative 
      is available. 
 
 
Barclays Core                      Q215  Q115(1)     Q414     Q314     Q214     Q114     Q413  Q313(2) 
Income statement information       GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income net of insurance 
 claims                           6,520    6,420    5,996    6,008    6,397    6,277    6,189    6,076 
Credit impairment charges 
 and other provisions             (488)    (448)    (571)    (492)    (456)    (481)    (542)    (554) 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income              6,032    5,972    5,425    5,516    5,941    5,796    5,647    5,522 
Operating expenses              (3,663)  (3,696)  (3,614)  (3,557)  (3,602)  (3,710)  (4,045)  (3,758) 
Litigation and conduct             (41)     (48)     (56)     (16)    (136)     (43)     (69)     (18) 
Costs to achieve                  (184)    (109)    (298)    (202)    (237)    (216)    (365)     (84) 
UK bank levy                          -        -    (371)        -        -        -    (395)        - 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses        (3,888)  (3,853)  (4,339)  (3,775)  (3,975)  (3,969)  (4,874)  (3,860) 
Other net (expenses)/income        (39)       17        9        6       27       20       15       15 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit before tax                 2,105    2,136    1,095    1,747    1,993    1,847      788    1,677 
Attributable profit               1,273    1,284      638    1,002    1,171    1,053      601    1,009 
 
Balance sheet information         GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total assets                      858.5    949.6    886.5    899.3    846.3    863.7    832.4      n/a 
Risk weighted assets              320.1    331.1    326.6    331.9    323.6    330.3    332.6      n/a 
 
Performance measures 
==============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average tangible 
 equity                           13.3%    13.5%     7.0%    11.5%    13.8%    13.2%     7.6%    15.1% 
Average allocated tangible 
 equity (GBPbn)                    38.6     38.5     37.0     35.2     34.0     32.2     31.4     26.7 
Return on average equity          11.0%    11.1%     5.8%     9.5%    11.3%    10.7%     6.2%    11.8% 
Average allocated equity 
 (GBPbn)                           46.7     46.7     45.0     43.0     41.6     39.6     38.9     34.2 
Cost: income ratio                  60%      60%      72%      63%      62%      63%      79%      64% 
 
 
 1   Q115 adjusted total operating expenses and profit before tax 
      has been revised to account for the reclassification of GBP32m 
      of charges relating to UK customer redress to aid comparability 
      with Q215. 
 2   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. Balance sheet comparative figures have also been 
      restated from Q413 to adopt the offsetting amendments to IAS32, 
      Financial Instruments: Presentation; therefore no Q313 comparative 
      is available. 
 
 
Barclays Non-Core                   Q215    Q115    Q414    Q314    Q214    Q114     Q413  Q313(1) 
Income statement information        GBPm    GBPm    GBPm    GBPm    GBPm    GBPm     GBPm     GBPm 
--------------------------------  ======  ======  ======  ======  ======  ======  =======  ======= 
Businesses                           153     122     228     327     245     301      322      354 
Securities and Loans                (42)    (73)   (142)     106      66      87      121       60 
Derivatives                         (79)    (39)    (64)    (63)    (26)    (15)        7     (46) 
--------------------------------  ------  ------  ------  ------  ------  ------  -------  ------- 
Total income net of insurance 
 claims                               32      10      22     370     285     373      450      368 
Credit impairment charges 
 and other provisions                (8)    (29)     (2)    (17)    (82)    (67)    (176)    (168) 
================================  ======  ======  ======  ======  ======  ======  =======  ======= 
Net operating income/(expense)        24    (19)      20     353     203     306      274      200 
Operating expenses                 (234)   (219)   (329)   (321)   (441)   (419)    (456)    (464) 
Litigation and conduct              (36)     (9)    (83)    (82)    (10)    (23)    (208)     (21) 
Costs to achieve                    (12)    (11)    (41)   (130)    (17)    (24)    (103)     (17) 
UK bank levy                           -       -    (91)       -       -       -    (109)        - 
================================  ======  ======  ======  ======  ======  ======  =======  ======= 
Total operating expenses           (282)   (239)   (544)   (533)   (468)   (466)    (876)    (502) 
Other net income/(expense)             2       2     (8)      23    (72)       6        4       10 
================================  ======  ======  ======  ======  ======  ======  =======  ======= 
Loss before tax                    (256)   (256)   (532)   (157)   (337)   (154)    (598)    (292) 
Attributable loss                  (203)   (199)   (448)   (173)   (294)   (171)    (997)    (274) 
 
Balance sheet information          GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn    GBPbn    GBPbn 
================================  ======  ======  ======  ======  ======  ======  =======  ======= 
Loans and advances to banks 
 and customers at amortised 
 cost                               53.9    65.6    63.9    64.5    75.5    83.4     81.9      n/a 
Loans and advances to customers 
 at fair value                      17.0    18.5    18.7    18.1    17.0    17.5     17.6      n/a 
Trading portfolio assets            11.6    14.6    15.9    19.2    22.9    29.4     30.7      n/a 
Derivative financial instrument 
 assets                            220.9   301.9   285.4   249.6   227.0   231.5    239.3      n/a 
Derivative financial instrument 
 liabilities                       213.6   295.6   277.1   240.0   215.0   220.9    228.3      n/a 
Reverse repurchase agreements 
 and other similar secured 
 lending                            15.6    42.8    49.3    73.9    86.8    98.3    104.7      n/a 
Total assets                       338.2   466.8   471.5   466.5   468.6   498.4    511.2      n/a 
Customer deposits                   19.6    20.5    21.6    22.2    28.6    30.7     29.3      n/a 
Risk weighted assets                56.6    64.8    75.3    81.0    87.5   106.0    109.9      n/a 
 
Performance measures 
================================  ======  ======  ======  ======  ======  ======  =======  ======= 
Return on average tangible 
 equity(2)                        (4.2%)  (4.5%)  (5.3%)  (4.4%)  (6.3%)  (5.6%)  (11.0%)   (8.4%) 
Average allocated tangible 
 equity (GBPbn)                      9.1    10.2    11.9    12.4    13.5    15.0     15.7     16.8 
Return on average equity(2)       (3.2%)  (3.4%)  (4.3%)  (3.4%)  (4.9%)  (4.2%)   (9.1%)   (6.1%) 
Average allocated equity 
 (GBPbn)                             9.3    10.3    12.1    12.6    13.7    15.2     16.0     17.1 
Period end allocated equity 
 (GBPbn)                             8.3     9.7    11.0    12.1    12.7    14.9     15.1     16.3 
 
 
 1   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. Balance sheet comparative figures have also been 
      restated from Q413 to adopt the offsetting amendments to IAS32, 
      Financial Instruments: Presentation; therefore no Q313 comparative 
      is available. 
 2   Return on average equity and average tangible equity for Barclays 
      Non-Core represents its impact on the Group, being the difference 
      between Barclays Group returns and Barclays Core returns. This 
      does not represent the return on average equity and average tangible 
      equity of the Non-Core business. 
 
 
 Personal and Corporate             Q215   Q115(1)      Q414      Q314      Q214      Q114      Q413   Q313(2) 
  Banking 
 Income statement information       GBPm      GBPm      GBPm      GBPm      GBPm      GBPm      GBPm      GBPm 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total income                      2,210     2,174     2,231     2,236     2,188     2,173     2,166     2,252 
 Credit impairment charges 
  and other provisions              (99)      (79)     (123)     (129)      (95)     (135)     (169)     (153) 
==============================  ========  ========  ========  ========  ========  ========  ========  ======== 
 Net operating income              2,111     2,095     2,108     2,107     2,093     2,038     1,997     2,099 
 Operating expenses              (1,232)   (1,234)   (1,204)   (1,222)   (1,247)   (1,278)   (1,371)   (1,313) 
 Litigation and conduct             (23)       (2)      (15)      (10)       (9)      (20)      (17)       (5) 
 Costs to achieve                   (97)      (42)     (195)      (90)      (58)      (57)     (219)      (73) 
 UK bank levy                          -         -      (70)         -         -         -      (66)         - 
==============================  ========  ========  ========  ========  ========  ========  ========  ======== 
 Total operating expenses        (1,352)   (1,278)   (1,484)   (1,322)   (1,314)   (1,355)   (1,673)   (1,391) 
 Other net (expenses)/income        (50)         2         4         4         1         5         3         1 
==============================  ========  ========  ========  ========  ========  ========  ========  ======== 
 Profit before tax                   709       819       628       789       780       688       327       709 
 Attributable profit                 500       602       441       578       559       480       281       518 
 
 Balance sheet information         GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn 
==============================  ========  ========  ========  ========  ========  ========  ========  ======== 
 Loans and advances 
  to customers at amortised 
  cost                             217.5     219.0     217.0     215.7     216.7     215.5     212.2     210.1 
 Total assets                      289.9     294.1     285.0     275.7     268.1     271.5     278.5     278.3 
 Customer deposits                 298.5     298.1     299.2     295.9     298.3     297.2     295.9     289.3 
 Risk weighted assets              120.6     122.5     120.2     120.0     117.9     116.1     118.3       n/a 
 
 Performance measures 
==============================  ========  ========  ========  ========  ========  ========  ========  ======== 
 Return on average tangible 
  equity                           14.9%     17.8%     13.3%     17.8%     17.5%     14.7%      8.6%     15.4% 
 Average allocated tangible 
  equity (GBPbn)                    13.6      13.6      13.4      13.1      12.9      13.1      13.1      13.5 
 Return on average equity          11.2%     13.4%     10.0%     13.4%     13.1%     11.1%      6.5%     11.8% 
 Average allocated equity 
  (GBPbn)                           18.1      18.1      17.8      17.5      17.2      17.4      17.4      17.6 
 Cost: income ratio                  61%       59%       67%       59%       60%       62%       77%       62% 
 Loan loss rate (bps)                 18        14        22        23        17        25        31        28 
 
 Analysis of total income           GBPm      GBPm      GBPm      GBPm      GBPm      GBPm      GBPm      GBPm 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Personal                          1,005     1,009     1,045     1,061     1,027     1,026     1,037     1,033 
 Corporate                           970       907       922       902       889       879       866       956 
 Wealth                              235       258       264       273       272       268       263       263 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total income                      2,210     2,174     2,231     2,236     2,188     2,173     2,166     2,252 
 
 Analysis of loans and 
  advances to customers 
  at amortised cost                GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn     GBPbn 
------------------------------  ========  ========  ========  ========  ========  ========  ========  ======== 
 Personal                          137.8     137.5     136.8     136.5     135.9     134.9     133.8     132.7 
 Corporate                          66.0      66.5      65.1      63.1      64.8      64.2      62.5      62.5 
 Wealth                             13.7      15.0      15.1      16.1      16.0      16.4      15.9      14.9 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total loans and advances 
  to customers at amortised 
  cost                             217.5     219.0     217.0     215.7     216.7     215.5     212.2     210.1 
 
 Analysis of customer 
  deposits 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Personal                          146.3     145.3     145.8     143.0     141.6     141.3     140.5     139.2 
 Corporate                         120.3     120.9     122.2     120.7     123.7     120.9     118.5     114.5 
 Wealth                             31.9      31.9      31.2      32.2      33.0      35.0      36.9      35.6 
------------------------------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total customer deposits           298.5     298.1     299.2     295.9     298.3     297.2     295.9     289.3 
 
 
 1   Q115 adjusted total operating expenses and profit before tax 
      has been revised to account for the reclassification of GBP32m 
      of charges relating to UK customer redress to aid comparability 
      with Q215. 
 2   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. 
 
 
 Barclaycard                      Q215    Q115    Q414    Q314    Q214    Q114    Q413   Q313(1) 
 Income statement information     GBPm    GBPm    GBPm    GBPm    GBPm    GBPm    GBPm      GBPm 
------------------------------  ------  ------  ------  ------  ------  ------  ------  -------- 
 Total income                    1,222   1,135   1,109   1,123   1,082   1,042   1,034     1,050 
 Credit impairment charges 
  and other provisions           (273)   (290)   (362)   (284)   (268)   (269)   (266)     (290) 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Net operating income              949     845     747     839     814     773     768       760 
 Operating expenses              (496)   (465)   (456)   (449)   (420)   (402)   (446)     (442) 
 Litigation and conduct              -       -       -       -       -       -    (11)      (13) 
 Costs to achieve                 (31)    (25)    (50)    (32)    (23)    (13)    (38)       (6) 
 UK bank levy                        -       -    (29)       -       -       -    (22)         - 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Total operating expenses        (527)   (490)   (535)   (481)   (443)   (415)   (517)     (461) 
 Other net income                    7      11       1       4      25      10       5        12 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Profit before tax                 429     366     213     362     396     368     256       311 
 Attributable profit               307     259     137     262     285     254     169       214 
 
 Balance sheet information       GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn     GBPbn 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Loans and advances 
  to customers at amortised 
  cost                            36.9    36.8    36.6    34.8    33.2    31.9    31.5      30.4 
 Total assets                     41.9    42.4    41.3    38.9    36.2    35.0    34.4      33.4 
 Customer deposits                 7.7     8.0     7.3     6.5     5.9     5.8     5.1       4.7 
 Risk weighted assets             40.3    39.9    39.9    38.6    37.7    36.4    35.7       n/a 
 
 Performance measures 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Return on average tangible 
  equity                         24.9%   21.0%   11.2%   21.8%   24.7%   22.6%   16.1%     20.2% 
 Average allocated tangible 
  equity (GBPbn)                   5.0     5.0     4.9     4.8     4.6     4.5     4.2       4.2 
 Return on average equity        19.7%   16.6%    9.0%   17.5%   19.7%   18.2%   12.7%     15.9% 
 Average allocated equity 
  (GBPbn)                          6.3     6.3     6.2     6.0     5.8     5.6     5.3       5.4 
 Cost: income ratio                43%     43%     48%     43%     41%     40%     50%       44% 
 Loan loss rate (bps)              283     305     374     309     309     325     320       360 
 
 
 1   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. 
 
 
 Africa Banking                   Q215    Q115    Q414    Q314    Q214    Q114    Q413   Q313(1) 
 Income statement information     GBPm    GBPm    GBPm    GBPm    GBPm    GBPm    GBPm      GBPm 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Total income net of 
  insurance claims                 910     948     963     928     895     878     980     1,004 
 Credit impairment charges 
  and other provisions           (103)    (90)    (79)    (74)   (100)    (96)   (104)     (101) 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Net operating income              807     858     884     854     795     782     876       903 
 Operating expenses              (557)   (559)   (590)   (572)   (545)   (537)   (616)     (605) 
 Litigation and conduct              -       -     (1)     (1)       -       -       -         - 
 Costs to achieve                  (7)     (6)    (23)    (11)     (8)     (9)    (15)       (2) 
 UK bank levy                        -       -    (45)       -       -       -    (42)         - 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Total operating expenses        (564)   (565)   (659)   (584)   (553)   (546)   (673)     (607) 
 Other net income                    2       2       3       2       2       4       -         3 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Profit before tax                 245     295     228     272     244     240     203       299 
 Attributable profit                96     112      88      91      78     103      30       104 
 
 Balance sheet information       GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn     GBPbn 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Loans and advances 
  to customers at amortised 
  cost                            33.8    35.7    35.2    34.5    33.8    35.0    34.9      36.5 
 Total assets                     54.0    57.8    55.5    54.6    52.4    54.1    54.9      57.3 
 Customer deposits                34.4    35.0    35.0    33.4    33.2    34.0    34.6      35.4 
 Risk weighted assets             36.4    39.3    38.5    37.9    36.5    36.6    38.0       n/a 
 
 Performance measures 
==============================  ======  ======  ======  ======  ======  ======  ======  ======== 
 Return on average tangible 
  equity                         13.2%   14.7%   11.9%   13.1%   11.3%   15.5%    4.2%     14.1% 
 Average allocated tangible 
  equity (GBPbn)                   2.9     3.1     2.9     2.8     2.8     2.7     2.8       3.0 
 Return on average equity         9.7%   10.8%    8.7%    9.5%    8.1%   11.1%    3.0%     10.0% 
 Average allocated equity 
  (GBPbn)                          3.9     4.1     4.0     3.8     3.8     3.7     4.0       4.1 
 Cost: income ratio                62%     60%     68%     63%     62%     62%     69%       60% 
 Loan loss rate (bps)              112      94      83      79     111     104     105       104 
 
 Constant currency(2) 
 Income statement information     GBPm    GBPm    GBPm    GBPm    GBPm    GBPm 
==============================  ======  ======  ======  ======  ======  ====== 
 Total income net of 
  insurance claims                 910     913     919     906     870     851 
 Credit impairment charges 
  and other provisions           (103)    (87)    (75)    (71)    (97)    (93) 
==============================  ======  ======  ======  ======  ======  ====== 
 Net operating income              807     826     844     835     773     758 
 Operating expenses              (557)   (539)   (564)   (559)   (530)   (521) 
 Litigation and conduct              -       -     (1)     (1)       -       - 
 Costs to achieve                  (7)     (6)    (22)    (10)     (9)     (8) 
 UK bank levy                        -       -    (45)       -       -       - 
==============================  ======  ======  ======  ======  ======  ====== 
 Total operating expenses        (564)   (545)   (632)   (570)   (539)   (529) 
 Other net income                    2       2       3       1       2       4 
==============================  ======  ======  ======  ======  ======  ====== 
 Profit before tax                 245     283     215     266     236     233 
 Attributable profit                96     107      83      88      80      99 
 
 Balance sheet information       GBPbn   GBPbn   GBPbn   GBPbn   GBPbn   GBPbn 
==============================  ======  ======  ======  ======  ======  ====== 
 Loans and advances 
  to customers at amortised 
  cost                            33.8    33.7    33.2    33.1    32.1    32.1 
 Total assets                     54.0    54.6    52.2    52.2    49.9    49.7 
 Customer deposits                34.4    33.0    33.1    32.0    31.6    31.3 
 Risk weighted assets             36.4    37.0    36.3    36.3    34.7    33.6 
 
 
 1   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. 
 2   Constant currency results are calculated by converting ZAR results 
      into GBP using the average exchange rate for the three months 
      ended 30 June 2015 for the income statement and the 30 June 2015 
      closing exchange rate for the balance sheet to eliminate the 
      impact of movement in exchange rates between the reporting periods. 
 
 
Investment Bank                           Q215     Q115     Q414     Q314     Q214     Q114     Q413  Q313(1) 
Income statement information              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
===================================== 
Investment banking fees                    586      549      527      410      661      513      571      526 
Lending                                    122       83      111      137       66      103       68       42 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Banking                                    708      632      638      547      727      616      639      568 
Credit                                     272      274      173      255      270      346      231      308 
Equities                                   616      619      431      395      629      591      421      524 
Macro                                      554      624      424      470      504      552      494      457 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Markets                                  1,442    1,517    1,028    1,120    1,403    1,489    1,146    1,289 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Banking & Markets                        2,150    2,149    1,666    1,667    2,130    2,105    1,785    1,857 
Other                                        -        -        -      (2)       24      (2)      (3)      (6) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                             2,150    2,149    1,666    1,665    2,154    2,103    1,782    1,851 
Credit impairment (charges)/releases 
 and other provisions                     (12)       11      (7)      (5)        7       19      (6)     (10) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                     2,138    2,160    1,659    1,660    2,161    2,122    1,776    1,841 
Operating expenses                     (1,328)  (1,410)  (1,351)  (1,305)  (1,357)  (1,491)  (1,575)  (1,373) 
Litigation and conduct                    (13)     (44)     (33)      (1)     (85)     (10)     (31)        - 
Costs to achieve                          (32)     (31)     (22)     (70)    (152)    (130)     (71)      (3) 
UK bank levy                                 -        -    (218)        -        -        -    (236)        - 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses               (1,373)  (1,485)  (1,624)  (1,376)  (1,594)  (1,631)  (1,913)  (1,376) 
Profit/(loss) before 
 tax                                       765      675       35      284      567      491    (137)      465 
Attributable profit/(loss)                 417      344    (150)      112      204      231     (74)      283 
 
Balance sheet information                GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances to 
 banks and customers 
 at amortised cost                       123.1    134.4    106.3    123.1    117.2    129.7    104.5      n/a 
Trading portfolio assets                  81.8     99.1     94.8     98.8    101.2    101.2     96.6      n/a 
Derivative financial 
 instrument assets                       118.5    175.9    152.6    131.4    104.2     99.9    108.7      n/a 
Derivative financial 
 instrument liabilities                  127.7    186.0    160.6    137.6    109.5    106.7    116.6      n/a 
Reverse repurchase agreements 
 and other similar secured 
 lending                                  58.4     58.0     64.3     82.8     83.0     86.6     78.2      n/a 
Total assets                             420.1    509.6    455.7    488.4    446.2    469.4    438.0      n/a 
Risk weighted assets                     115.3    123.0    122.4    127.9    123.9    125.2    124.4      n/a 
 
Performance measures 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average tangible 
 equity                                  12.2%     9.7%   (3.9%)     3.3%     5.6%     6.4%   (2.1%)     7.5% 
Average allocated tangible 
 equity (GBPbn)                           13.9     14.5     14.7     14.2     14.8     14.7     14.4     15.1 
Return on average equity                 11.5%     9.1%   (3.7%)     3.1%     5.3%     6.1%   (2.0%)     7.2% 
Average allocated equity 
 (GBPbn)                                  14.8     15.4     15.6     15.0     15.5     15.4     15.1     15.7 
Cost: income ratio                         64%      69%      97%      83%      74%      78%     107%      74% 
 
 
 1   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. Balance sheet comparative figures have also been 
      restated from Q413 to adopt the offsetting amendments to IAS32, 
      Financial Instruments: Presentation; therefore no Q313 comparative 
      is available. 
 
 
Head Office                             Q215   Q115   Q414   Q314   Q214   Q114   Q413  Q313(1) 
Income statement information            GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm     GBPm 
=====================================  =====  =====  =====  =====  =====  =====  =====  ======= 
Total income/(expenses)                   28     14     27     56     78     81    227     (81) 
Credit impairment (charges)/releases 
 and other provisions                    (1)      -      -      -      -      -      3        - 
=====================================  =====  =====  =====  =====  =====  =====  =====  ======= 
Net operating income/(expenses)           27     14     27     56     78     81    230     (81) 
Operating expenses                      (50)   (28)   (11)    (9)   (34)    (3)   (37)     (25) 
Litigation and conduct                   (5)    (2)    (8)    (4)   (42)   (12)   (10)        - 
Costs to achieve                        (17)    (5)    (8)      -      5    (7)   (22)        - 
UK bank levy                               -      -    (9)      -      -      -   (29)        - 
=====================================  =====  =====  =====  =====  =====  =====  =====  ======= 
Total operating expenses                (72)   (35)   (36)   (13)   (71)   (22)   (98)     (25) 
Other net income/(expenses)                2      2      -    (3)    (1)      1      7      (1) 
=====================================  =====  =====  =====  =====  =====  =====  =====  ======= 
(Loss)/profit before 
 tax                                    (43)   (19)    (9)     40      6     60    139    (107) 
Attributable (loss)/profit              (47)   (33)    122   (41)     45   (15)    192    (110) 
 
Balance sheet information              GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn    GBPbn 
=====================================  =====  =====  =====  =====  =====  =====  =====  ======= 
Total assets                            52.6   45.7   49.1   41.5   43.3   33.7   26.6      n/a 
Risk weighted assets                     7.5    6.3    5.6    7.5    7.6   16.0   16.2      n/a 
Average allocated tangible 
 equity                                  3.2    2.3    1.1    0.3  (1.1)  (2.8)  (3.1)    (9.1) 
Average allocated equity                 3.6    2.8    1.4    0.7  (0.7)  (2.5)  (2.9)    (8.6) 
 
 
 1   RWAs are on a CRD IV fully loaded basis. CRD IV rules came into 
      effect in Q413; therefore no Q313 comparative is available. Average 
      allocated equity and tangible equity are shown on an estimated 
      CRD IV basis. Balance sheet comparative figures have also been 
      restated from Q413 to adopt the offsetting amendments to IAS32, 
      Financial Instruments: Presentation; therefore no Q313 comparative 
      is available. 
 

Performance Management

Returns and equity by business

Returns on average equity and average tangible equity are calculated as profit for the period attributable to ordinary equity holders of the parent (adjusted for the tax credit recorded in reserves in respect of interest payments on other equity instruments) divided by average allocated equity or average allocated tangible equity for the period as appropriate, excluding non-controlling and other equity interests for businesses, apart from Africa Banking (see below). Allocated equity has been calculated as 10.5% of CRD IV fully loaded risk weighted assets for each business, adjusted for CRD IV fully loaded capital deductions, including goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office equity includes the unallocated Group equity arising from the difference between the CRD IV CET1 ratio and 10.5%. Allocated tangible equity is calculated using the same method, but excludes goodwill and intangible assets.

For Africa Banking, the equity used for return on average equity is Barclays' share of the statutory equity of the BAGL entity (together with that of the Barclays Egypt and Zimbabwe businesses which remain outside the BAGL corporate entity), as well as the Barclays' goodwill on acquisition of these businesses. The tangible equity for return on tangible equity uses the same basis, but excludes both the Barclays' goodwill on acquisition and the goodwill and intangibles held within the BAGL statutory equity.

 
                                      Half year ended  Half year ended 
                                             30.06.15         30.06.14 
Return on average tangible equity                   %                % 
====================================  ===============  =============== 
Personal and Corporate Banking                  16.4%            16.1% 
Barclaycard                                     22.9%            23.6% 
Africa Banking                                  14.0%            13.3% 
Investment Bank                                 10.9%             6.0% 
====================================  ===============  =============== 
Barclays Core excluding Head Office             14.9%            12.6% 
Head Office impact(1)                          (1.5%)             0.9% 
====================================  ===============  =============== 
Barclays Core                                   13.4%            13.5% 
Barclays Non-Core impact(1)                    (4.3%)           (6.0%) 
====================================  ===============  =============== 
Barclays Group adjusted total                    9.1%             7.5% 
 
                                      Half year ended  Half year ended 
                                             30.06.15         30.06.14 
Return on average equity                            %% 
====================================  =============== ============== 
Personal and Corporate Banking                  12.3%            12.1% 
Barclaycard                                     18.2%            18.9% 
Africa Banking                                  10.3%             9.6% 
Investment Bank                                 10.2%             5.7% 
====================================  ===============  =============== 
Barclays Core excluding Head Office             12.3%            10.5% 
Head Office impact(1)                          (1.2%)             0.5% 
====================================  ===============  =============== 
Barclays Core                                   11.1%            11.0% 
Barclays Non-Core impact(1)                    (3.4%)           (4.5%) 
====================================  ===============  =============== 
Barclays Group adjusted total                    7.7%             6.5% 
 
 
                                         Half year ended  Half year ended 
Profit/(loss) attributable to ordinary          30.06.15         30.06.14 
equity holders of the parent                        GBPm             GBPm 
=======================================  ===============  =============== 
Personal and Corporate Banking                     1,114            1,044 
Barclaycard                                          570              540 
Africa Banking                                       208              181 
Investment Bank                                      774              441 
Head Office                                         (83)               31 
=======================================  ===============  =============== 
Barclays Core                                      2,583            2,237 
Barclays Non-Core                                  (396)            (458) 
=======================================  ===============  =============== 
Barclays Group adjusted total                      2,187            1,779 
 
 
 1   Return on average equity and average tangible equity for Head 
      Office and Barclays Non-Core represents their impact on Barclays 
      Core and the Group respectively. This does not represent the 
      return on average equity and average tangible equity of Head 
      Office or the Non-Core business. 
 
 
                                    Half year ended  Half year ended 
                                           30.06.15         30.06.14 
Average allocated tangible equity             GBPbn            GBPbn 
==================================  ===============  =============== 
Personal and Corporate Banking                 13.6             13.0 
Barclaycard                                     5.0              4.6 
Africa Banking                                  3.0              2.7 
Investment Bank                                14.2             14.7 
Head Office(1)                                  2.7            (1.9) 
==================================  ===============  =============== 
Barclays Core                                  38.5             33.1 
Barclays Non-Core                               9.7             14.2 
==================================  ===============  =============== 
Barclays Group adjusted total                  48.2             47.3 
 
                                    Half year ended  Half year ended 
                                           30.06.15         30.06.14 
Average allocated equity                      GBPbn            GBPbn 
==================================  ===============  =============== 
Personal and Corporate Banking                 18.1             17.3 
Barclaycard                                     6.3              5.7 
Africa Banking                                  4.0              3.8 
Investment Bank                                15.1             15.4 
Head Office(1)                                  3.2            (1.6) 
==================================  ===============  =============== 
Barclays Core                                  46.7             40.6 
Barclays Non-Core                               9.8             14.5 
==================================  ===============  =============== 
Barclays Group adjusted total                  56.5             55.1 
 
                                     As at 30.06.15   As at 31.12.14 
Period end allocated equity                   GBPbn            GBPbn 
==================================  ===============  =============== 
Personal and Corporate Banking                 17.9             17.9 
Barclaycard                                     6.3              6.2 
Africa Banking                                  3.9              4.0 
Investment Bank                                13.7             14.7 
Head Office(1)                                  5.2              2.1 
==================================  ===============  =============== 
Barclays Core                                  47.0             44.9 
Barclays Non-Core                               8.3             11.0 
==================================  ===============  =============== 
Barclays Group adjusted total                  55.3             55.9 
 
 
 1   Based on risk weighted assets and capital deductions in Head 
      Office and Other Operations, plus the residual balance of average 
      ordinary shareholders' equity and tangible ordinary shareholders' 
      equity. 
 
 
Margins and balances 
                                Half year ended 30.06.15               Half year ended 30.06.14 
                          =====================================  ===================================== 
                                          Average                                Average 
                          Net interest   customer  Net interest  Net interest   customer  Net interest 
                                income     assets        margin        income     assets        margin 
                                  GBPm       GBPm             %          GBPm       GBPm             % 
========================  ============  =========  ============  ============  =========  ============ 
Personal and Corporate 
 Banking                         3,203    214,906          3.01         3,057    208,160          2.96 
Barclaycard                      1,704     37,967          9.05         1,500     33,410          9.05 
Africa Banking                   1,068     36,096          5.97         1,007     34,574          5.87 
========================  ============  =========  ============  ============  =========  ============ 
Total Personal and 
 Corporate Banking, 
 Barclaycard and Africa 
 Banking                         5,975    288,969          4.17         5,564    276,144          4.06 
Investment Bank                    276                                    334 
Head Office                      (178)                                      1 
========================  ============  =========  ============  ============  =========  ============ 
Core                             6,073                                  5,899 
Barclays Non-Core                  128                                    183 
========================  ============  =========  ============  ============  =========  ============ 
Total net interest 
 income                          6,201                                  6,082 
 
   --     Total PCB, Barclaycard and Africa Banking NII increased 7% to 5,975m due to: 

- An increase in average customer assets to GBP289.0bn (2014: GBP276.1bn) with growth in PCB Mortgages, Barclaycard, and Africa Banking

- Net interest margin increased 11bps to 4.17% primarily due to higher deposits margins within Personal and Corporate Banking, partially offset by the impact of mortgage margin pressure from existing customer rate switching and lower Corporate debt margins. Group NII increased to GBP6.2bn (2014: GBP6.1bn) including net structural hedge contributions of GBP0.7bn (2014: GBP0.8bn)

-- Net interest margin by business reflects movements in the Group's internal funding rates which are based on the cost to the Group of alternative funding in wholesale markets. The internal funding rate prices intra-group funding and liquidity to appropriately give credit to businesses with net surplus liquidity and to charge those businesses in need of alternative funding at a rate that is driven by prevailing market rates and includes a term premium

 
Quarterly analysis for PCB, Barclaycard 
 and Africa Banking: 
                                                 Quarter ended 30.06.15 
                                          ===================================== 
                                                          Average 
                                          Net interest   customer  Net interest 
                                                income     assets        margin 
                                                  GBPm       GBPm             % 
========================================  ============  =========  ============ 
Personal and Corporate Banking                   1,602    215,069          2.99 
Barclaycard                                        883     38,025          9.31 
Africa Banking                                     521     35,610          5.87 
========================================  ============  =========  ============ 
Total Personal and Corporate Banking, 
 Barclaycard and Africa Banking                  3,006    288,704          4.18 
 
                                                 Quarter ended 31.03.15 
========================================  ===================================== 
Personal and Corporate Banking                   1,601    214,645          3.02 
Barclaycard                                        821     37,909          8.78 
Africa Banking(1)                                  547     36,603          6.06 
========================================  ============  =========  ============ 
Total Personal and Corporate Banking, 
 Barclaycard and Africa Banking                  2,969    289,157          4.18 
 
                                                 Quarter ended 31.12.14 
========================================  ===================================== 
Personal and Corporate Banking                   1,619    212,444          3.02 
Barclaycard                                        757     36,932          8.13 
Africa Banking                                     546     36,465          5.94 
========================================  ============  =========  ============ 
Total Personal and Corporate Banking, 
 Barclaycard and Africa Banking                  2,922    285,841          4.06 
 
                                                 Quarter ended 30.09.14 
========================================  ===================================== 
Personal and Corporate Banking                   1,622    210,859          3.05 
Barclaycard                                        787     35,308          8.84 
Africa Banking                                     540     35,026          6.12 
========================================  ============  =========  ============ 
Total Personal and Corporate Banking, 
 Barclaycard and Africa Banking                  2,949    281,193          4.16 
 
 
 1    Q115 Net Interest Income has been revised by GBP14m to accurately 
       reflect the classification of income across financial statement 
       line items. 
 

Risk Management

Risk management and principal risks

Barclays risk management responsibilities are laid out in the Enterprise Risk Management Framework (ERMF), which creates clear ownership and accountability, with the purpose that the Group's most significant risk exposures are understood and managed in accordance with agreed risk appetite, and that there is regular reporting of both risk exposures and the operating effectiveness of controls. It includes those risks incurred by Barclays that are foreseeable, continuous, and material enough to merit establishing specific bank-wide control frameworks. These are known as Key Risks and are grouped into five Principal Risks: Credit Risk; Market Risk; Funding Risk; Operational Risk; and Conduct Risk.

Further detail on these risks and how they are managed is available from the 2014 Annual Report and Accounts or online at www.barclays.com/investorrelations. For 2015, reputation risk has been recognised as a Key Risk within conduct risk given the close alignment between them and the fact that as separate Principal Risks they had a common Principal Risk Officer. There has been no other significant change to the Key Risks, risk management or principal uncertainties during the period or expected for the remaining six months of the financial year.

While the risks to the Eurozone have receded slightly following the recent agreement for a bailout of Greece, should this agreement falter the potential for a default by Greece and subsequent Euro exit would re-emerge, which could disrupt capital markets as well as local markets and adversely impact Barclays' performance where it has larger asset and funding positions, e.g. Italy and Portugal.

The following section gives an overview of the performance in Funding Risk - Liquidity, Funding Risk - Capital, Credit Risk and Market Risk for the period.

Funding & liquidity

Whilst Barclays has a comprehensive framework for managing the Group's liquidity risks, liquidity risk is managed separately at Barclays Africa Group Limited (BAGL) due to local currency and funding requirements. Unless stated otherwise, all disclosures in this section exclude BAGL, which is reported on a stand-alone basis. Adjusting for local requirements, BAGL's liquidity risk is managed on a consistent basis to Barclays Group.

Liquidity stress testing

 
Compliance with internal and regulatory stress          Barclays' LRA (30 day Barclays specific  Estimated CRDIV LCR 
tests                                                                           requirement)(1) 
===============================================  ==============================================  =================== 
                                                                                          GBPbn                GBPbn 
Eligible liquidity buffer                                                                   145                  150 
Net stress outflows                                                                         122                  124 
===============================================  ==============================================  =================== 
Surplus                                                                                      23                   26 
 
Liquidity pool as a percentage of anticipated 
 net outflows as at 30 June 2015                                                           119%                 121% 
===============================================  ==============================================  =================== 
Liquidity pool as a percentage of anticipated 
 net outflows as at 31 December 2014                                                       124%                 124% 
 

Barclays manages the Group's liquidity position against the Group's internally defined Liquidity Risk Appetite (LRA) and regulatory metrics, such as the Individual Liquidity Guidance (ILG) provided by the PRA, and the CRD IV Liquidity Coverage Ratio (LCR). As at 30 June 2015, the Group held eligible liquid assets significantly in excess of 100% of net stress outflows for both the 30 day Barclays-specific LRA and the LCR. The surpluses were built to position the Group for outflows associated with credit rating changes as a result of revised assessment of sovereign support. Whilst the ratings changes occurred during Q215, the expected funding impacts had not fully materialised by the end of H115.

Barclays estimated its Net Stable Funding Ratio (NSFR) at 106% (2014: 102%) based on the final NSFR guidelines published by the BCBS in October 2014.

 
 1   Of the three stress scenarios monitored as part of the LRA, the 
      30 day Barclays specific scenario results in the lowest ratio 
      at 119% (2014: 124%). This compares to 149% (2014: 135%) under 
      the 90 day market-wide scenario and 121% (2014: 127%) under the 
      30 day combined scenario. 
 

Funding Risk - Liquidity

 
Composition of the Group Liquidity 
 Pool 
                                               Liquidity         Liquidity    Liquidity pool           Liquidity 
                                         pool 30.06.2015           pool of    of which CRDIV     pool 31.12.2014 
                                                                     which    LCR-eligible(2) 
                                                           PRA eligible(1) 
                                        ================  ================  ==================  ================ 
                                                                               Level     Level 
                                                                                   1        2A 
As at 30.06.2015                                   GBPbn             GBPbn     GBPbn     GBPbn             GBPbn 
                                        ================  ================  ========  ========  ================ 
Cash and deposits with central 
 banks(3)                                             31                28        28         1                37 
 
Government bonds(4) 
AAA rated                                             74                73        73         -                73 
AA+ to AA- rated                                       9                 8         9         -                12 
Other government bonds                                 3                 2         -         2                 - 
======================================  ================  ================  ========  ========  ================ 
Total Government bonds                                86                83        82         2                85 
 
Other 
Supranational bonds and multilateral 
 development banks                                     7                 3         7         -                 9 
Agencies and agency mortgage-backed 
 securities                                           15                 -         9         6                11 
Covered bonds (rated AA- and 
 above)                                                3                 -         3         -                 3 
Other                                                  3                 -         -         -                 4 
======================================  ================  ================  ========  ========  ================ 
Total other                                           28                 3        19         6                27 
 
Total as at 30 June 2015                             145               114       129         9 
======================================  ================  ================  ========  ======== 
Total as at 31 December 2014                         149               122       136         7 
 

Barclays manages the liquidity pool on a centralised basis. The liquidity pool is held unencumbered and is not used to support payment or clearing requirements. As at 30 June 2015, 93% (2014: 92%) of the liquidity pool was located in Barclays Bank PLC and was available to meet liquidity needs across the Barclays Group. The residual liquidity pool is held predominantly within Barclays Capital Inc. The portion of the liquidity pool outside of Barclays Bank PLC is held primarily against entity-specific stressed outflows and regulatory requirements.

 
Deposit funding 
                                               As at 30.06.2015           As at 31.12.14 
                                      ==================================  ============== 
Funding of loans and advances             Loans and              Loan to         Loan to 
 to customers                              advances   Customer   deposit         deposit 
 (including BAGL)                      to customers   deposits     ratio           ratio 
                                              GBPbn      GBPbn         %               % 
====================================  -------------  ---------  --------  ============== 
Personal and Corporate banking                  217        298 
Barclaycard                                      37          8 
Africa Banking                                   34         34 
Non-Core retail                                  18          7 
====================================  =============  =========  ========  ============== 
Total Retail funding                            306        347        88              89 
 
Investment Bank, Non-core wholesale 
 and Head Office                                 37         14 
Trading settlement balances 
 and collateral                                  88         77 
====================================  =============  =========  ========  ============== 
Total                                           431        438        98             100 
 

PCB, Barclaycard, Africa Banking and Non-Core retail are largely funded by customer deposits. The loan to deposit ratio for these businesses was 88% (2014: 89%). The customer deposits in excess of loans and advances are primarily used to fund liquidity buffer requirements for these businesses. The Investment Bank is funded with wholesale liabilities and does not rely on customer deposit funding from these businesses. The loan to deposit ratio for the Group was 98% (2014: 100%).

 
 1   GBP114bn (2014: GBP122bn) of the liquidity pool is PRA eligible 
      as per BIPRU 12.7. In addition, there are GBP12bn (2014: GBP12bn) 
      of Level 2 assets available, as per the PRA's announcement in 
      August 2013 that certain assets specified by PRA as Level 2 assets 
      can be used on a transitional basis. 
 2   The LCR-eligible assets presented in this table represent only 
      those assets which are also eligible for the Group liquidity 
      pool and do not include any Level 2B assets as defined by the 
      CRDIV Delegated Act. 
 3   Of which over 95% (2014: over 95%) was placed with the Bank of 
      England, US Federal Reserve, European Central Bank, Bank of Japan 
      and Swiss National Bank. 
 4   Of which over 90% (2014: over 95%) are comprised of UK, US, Japanese, 
      French, German, Danish, Swiss and Dutch securities. 
 

Wholesale funding

 
Funding of other assets 
As at 30.06.15 
Assets                             GBPbn  Liabilities                       GBPbn 
=================================  =====  ================================  ===== 
 
Trading Portfolio Assets              33  Repurchase agreements                85 
Reverse repurchase agreements         52 
 
Reverse repurchase agreements         41  Trading Portfolio Liabilities        41 
 
Derivative Financial Instruments     340  Derivative Financial Instruments    342 
 
                                          Less than 1 year wholesale 
Liquidity pool (1)                   105   debt                                68 
Other unencumbered assets                 Greater than 1 year wholesale 
 (2)                                 115   debt and equity                    150 
 

-- Trading portfolio assets are largely funded by repurchase agreements with 57% (2014: 54%) secured against highly liquid assets(3) (.) The weighted average maturity of these repurchase agreements secured against less liquid assets was 77 days (2014: 56 days)

-- The majority of reverse repurchase agreements are matched by repurchase agreements. As at 30 June 2015, 55% (2014: 66%) of matched book activity was secured against highly liquid assets(3) . The remainder of reverse repurchase agreements are used to settle trading portfolio liabilities

-- Derivative assets and liabilities are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset once netted against cash collateral received and paid

-- The Group liquidity pool is primarily funded by wholesale debt with the remainder being funded by customer deposits and other assets are largely matched by term wholesale debt and equity

 
 1   The portion of the liquidity pool estimated to be funded by wholesale 
      funds. 
 2   Predominantly available for sale investments, trading portfolio 
      assets, financial assets designated at fair value and loans and 
      advances to banks. 
 3   Highly liquid assets are limited to government bonds, US agency 
      securities and US agency mortgage-backed securities. 
 

Composition of wholesale funding(1)

In preparation for a Single Point of Entry resolution model, the Group has started to issue debt capital and term senior unsecured funding out of Barclays PLC, the holding company. The Group expects to refinance most debt capital and term senior unsecured debt out of Barclays PLC over time.

Maturity profile

 
                                     Over     Over 
                                      one    three  Over six      Over                       Over two 
                                    month   months    months      nine                          years 
                                  but not  but not   but not    months             Over one   but not 
                                     more     more      more   but not             year but      more 
                        Not more     than     than      than      more  Sub-total  not more      than      Over 
                        than one    three      six      nine  than one  less than  than two      five      five 
                           month   months   months    months      year   one year     years     years     years  Total 
                           GBPbn    GBPbn    GBPbn     GBPbn     GBPbn      GBPbn     GBPbn     GBPbn     GBPbn  GBPbn 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Barclays PLC 
Senior unsecured 
 (Public Benchmark)            -        -        -         -         -          -         -       2.5       2.0    4.5 
Subordinated 
 liabilities                   -        -        -         -         -          -         -       0.8         -    0.8 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Barclays Bank PLC 
Deposits from Banks         11.4      6.3      1.2       0.7       0.5       20.1       0.5         -       0.4   21.0 
Certificates of 
 Deposit and 
 Commercial Paper            1.1      6.2      6.3       4.2       2.3       20.1       0.8       1.8       0.7   23.4 
Asset Backed 
 Commercial Paper            3.2      1.9      0.6         -         -        5.7         -         -         -    5.7 
Senior unsecured 
 (Public benchmark)            -      1.0        -       1.3         -        2.3       4.8       5.4       3.6   16.1 
Senior unsecured 
 (Privately placed)(2)       1.8      1.7      2.0       2.1       2.7       10.3       6.9      11.4      10.5   39.1 
Covered bonds/ABS              -      1.1      0.2       0.9       1.1        3.3       4.1       6.2       4.0   17.6 
Subordinated 
 liabilities                   -        -        -         -         -          -         -       3.0      15.3   18.3 
Other(3)                     2.9      0.9      1.1       1.0       0.2        6.1       1.7       1.1       1.6   10.5 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Total as at 30.06.15        20.4     19.1     11.4      10.2       6.8       67.9      18.8      32.2      38.1  157.0 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Of which secured             4.7      3.8      1.5       1.4       1.3       12.7       4.4       6.3       4.1   27.5 
Of which unsecured          15.7     15.3      9.9       8.8       5.5       55.2      14.4      25.9      34.0  129.5 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Total as at 31.12.14        16.8     23.2     14.4      13.5       7.5       75.4      14.0      36.6      45.4  171.4 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
Of which secured             5.3      7.8      1.7       1.9       0.3       17.0       2.7       7.6       6.0   33.3 
Of which unsecured          11.5     15.4     12.7      11.6       7.2       58.4      11.3      29.0      39.4  138.1 
======================  ========  =======  =======  ========  ========  =========  ========  ========  ========  ===== 
 

Outstanding wholesale funding includes GBP39bn (2014: GBP45bn) of privately placed senior unsecured notes in issue. These notes are issued through a variety of distribution channels including intermediaries and private banks. Although not a requirement, the liquidity pool exceeded wholesale funding maturing in less than one year by GBP77bn (2014: GBP74bn).

The average maturity of wholesale funding net of the liquidity pool was at least 120 months (2014: 105 months).

Term financing

The Group issued GBP6bn of term funding net of early redemptions during H115. Barclays has GBP9bn of term funding maturing in the remainder of 2015 and GBP13bn in 2016(4) .

The Group expects to issue more public wholesale debt in the remainder of 2015, in order to maintain a stable and diverse funding base by type, currency and distribution channel.

 
 1   The composition of wholesale funds comprises the balance sheet 
      reported Deposits from Banks, Financial liabilities at Fair Value, 
      Debt Securities in Issue and Subordinated Liabilities, excluding 
      cash collateral and settlement balances. It also does not include 
      collateral swaps, including participation in the Bank of England's 
      Funding for Lending Scheme. 
 2   Includes structured notes of GBP33bn, GBP9bn of which matures 
      within one year. 
 3   Primarily comprised of fair value deposits GBP5bn and secured 
      financing of physical gold GBP4bn. 
 4   Includes GBP1bn of bilateral secured funding in 2015 and GBP1bn 
      in 2016. 
 

Credit rating

 
Barclays Bank PLC         Standard        Moody's       Fitch 
                          & Poor's 
--------------------  ------------  -------------  ---------- 
 
Long Term (Outlook)    A- (Stable)    A2 (Stable)  A (Stable) 
Short Term                     A-2            P-1          F1 
Standalone rating(1)          bbb+           baa2           a 
 
Barclays PLC              Standard        Moody's       Fitch 
                          & Poor's 
--------------------  ------------  -------------  ---------- 
 
Long Term (Outlook)   BBB (Stable)  Baa3 (Stable)  A (Stable) 
Short Term                     A-2            P-3          F1 
 

During Q215 all three credit rating agencies took industry-wide rating actions driven by their assessment of sovereign support and/or methodology updates. S&P downgraded the long- and short-term senior unsecured ratings of Barclays Bank PLC by one notch from A/A-1 to A-/A-2. This was driven by the removal of two notches of sovereign support, partially offset by a one notch uplift to reflect "Additional Loss Absorbing Capacity". Moody's downgraded the long- and short-term senior unsecured debt ratings of Barclays PLC from A3/P-2 to Baa3/P-3 due to the removal of three sovereign support notches with no methodology driven uplift. Fitch affirmed both Barclays and Barclays Bank PLC's senior unsecured ratings at A/F1. Barclays' standalone credit ratings have not been impacted by these actions. The outlook on all credit ratings is now stable.

Barclays Africa Group Limited

-- Liquidity risk is managed separately at BAGL due to local currency, funding and regulatory requirements

-- In addition to the Group liquidity pool, BAGL held GBP7bn (2014: GBP7bn) of liquidity pool assets against BAGL-specific anticipated stressed outflows. The liquidity pool consists of South African government bonds and Treasury bills

   --     The BAGL loan to deposit ratio was 100% (2014: 102%) 

-- As at 30 June 2015, BAGL had GBP10bn of wholesale funding outstanding (2014: GBP9bn), of which GBP5bn matures in less than one year (2014: GBP5bn)

 
 1   Refers to Standard & Poor's Stand-Alone Credit Profile (SACP), 
      Moody's Baseline Credit Assessment (BCA) and Fitch's Viability 
      Rating (VR). 
 

Funding Risk - Capital

CRD IV capital

The Capital Requirements Regulation and Capital Requirements Directive implemented Basel 3 within the EU (collectively known as CRD IV) on 1 January 2014. The rules are supplemented by Regulatory Technical Standards and the PRA's rulebook, including the implementation of transitional rules. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.

 
Capital ratios                                          As at     As at     As at 
                                                     30.06.15  31.03.15  31.12.14 
===================================================  ========  ========  ======== 
Fully loaded Common Equity Tier 1                       11.1%     10.6%     10.3% 
PRA Transitional Common Equity Tier 1(1,2)              11.1%     10.6%     10.2% 
PRA Transitional Tier 1(3,4)                            14.0%     13.3%     13.0% 
PRA Transitional Total Capital(3,4)                     17.4%     16.8%     16.5% 
 
Capital resources                                        GBPm      GBPm      GBPm 
===================================================  ========  ========  ======== 
Total equity (excluding non-controlling 
 interests) per the balance sheet                      59,281    60,693    59,567 
Less: Other equity instruments (recognised 
 as AT1 capital)                                      (4,325)   (4,323)   (4,322) 
Adjustment to retained earnings for foreseeable 
 dividends                                              (731)     (981)     (615) 
 
Minority interests (amount allowed in consolidated 
 CET1)                                                  1,200     1,249     1,227 
 
Other regulatory adjustments and deductions: 
Additional value adjustments (PVA)                    (1,506)   (1,984)   (2,199) 
Goodwill and intangible assets                        (8,145)   (8,255)   (8,127) 
Deferred tax assets that rely on future 
 profitability excluding temporary differences        (1,132)   (1,180)   (1,080) 
Fair value reserves related to gains or 
 losses on cash flow hedges                           (1,185)   (2,029)   (1,814) 
Excess of expected losses over impairment             (1,536)   (1,727)   (1,772) 
Gains or losses on liabilities at fair value 
 resulting from own credit                                127       497       658 
Direct and indirect holdings by an institution 
 of own CET1 instruments                                 (57)      (56)      (25) 
Other regulatory adjustments                                1      (72)      (45) 
===================================================  ========  ========  ======== 
Fully loaded CET1 capital                              41,992    41,833    41,453 
Regulatory adjustments relating to unrealised 
 gains(1)                                                   -         -     (583) 
===================================================  ========  ========  ======== 
PRA Transitional CET1 capital                          41,992    41,833    40,870 
 
Additional Tier 1 (AT1) capital 
Capital instruments and related share premium 
 accounts                                               4,325     4,323     4,322 
Qualifying AT1 capital (including minority 
 interests) issued by subsidiaries                      6,666     6,815     6,870 
Other regulatory adjustments and deductions             (130)     (130)         - 
===================================================  ========  ========  ======== 
Transitional Additional Tier 1 capital                 10,861    11,008    11,192 
===================================================  ========  ========  ======== 
PRA Transitional Tier 1 capital                        52,853    52,841    52,062 
 
Tier 2 (T2) capital 
Capital instruments and related share premium 
 accounts                                                 792       840       800 
Qualifying T2 capital (including minority 
 interests) issued by subsidiaries                     12,268    13,126    13,529 
Other regulatory adjustments and deductions             (254)     (254)      (48) 
===================================================  ========  ========  ======== 
PRA Transitional total regulatory capital              65,659    66,553    66,343 
 
Risk weighted assets                                  376,683   395,899   401,900 
 
 
 
 1   The transitional regulatory adjustment for unrealised gains is 
      no longer applicable from 1 January 2015 resulting in CET 1 capital 
      on a fully loaded basis being equal to that on a transitional 
      basis. 
 2   The CRD IV CET1 ratio (FSA October 2012 transitional statement) 
      as applicable to Barclays' Tier 2 Contingent Capital Notes was 
      12.7% based on GBP47.9bn of transitional CRD IV CET1 capital 
      and GBP376.7bn of RWAs. 
 3   The PRA transitional capital is based on guidance provided in 
      policy statement PS 7/13 on strengthening capital standards published 
      in December 2013. 
 4   As at 30 June 2015, Barclays' fully loaded Tier 1 capital was 
      GBP46,468m, and the fully loaded Tier 1 ratio was 12.3%. Fully 
      loaded total regulatory capital was GBP60,913m and the fully 
      loaded total capital ratio was 16.2%. The fully loaded Tier 1 
      capital and total capital measures are calculated without applying 
      the transitional provisions set out in CRD IV and assessing compliance 
      of AT1 and T2 instruments against the relevant criteria in CRD 
      IV. 
 
 
Movement in Common Equity Tier 1 (CET1) capital         Three months  Six months 
                                                               ended       ended 
                                                            30.06.15    30.06.15 
                                                                GBPm        GBPm 
------------------------------------------------------  ------------  ---------- 
Opening CET1 capital                                          41,833      41,453 
 
Profit for the period                                          1,225       1,770 
Movement in own credit                                         (370)       (531) 
Movement in dividends                                          (559)       (989) 
------------------------------------------------------  ------------  ---------- 
Retained regulatory capital generated from earnings              296         250 
 
Movement in reserves - net impact of share schemes               293         313 
Movement in available for sale reserves                        (240)       (295) 
Movement in currency translation reserves                    (1,276)       (463) 
Movement in retirement benefits                                  220        (94) 
Other reserves movements                                          16        (18) 
------------------------------------------------------  ------------  ---------- 
Movement in other qualifying reserves                          (987)       (557) 
 
Minority interests                                              (49)        (27) 
Additional value adjustments (PVA)                               478         693 
Goodwill and intangible assets                                   110        (18) 
Deferred tax assets that rely on future profitability 
 excluding those arising from temporary differences               48        (52) 
Excess of expected loss over impairment                          191         236 
Direct and indirect holdings by an institution of 
 own CET1 instruments                                            (1)        (32) 
Other regulatory adjustments                                      73          46 
------------------------------------------------------  ------------  ---------- 
Movement in regulatory adjustments and deductions                850         846 
 
Closing CET1 capital                                          41,992      41,992 
 

-- Fully loaded CRD IV CET1 ratio increased in H115 to 11.1% (December 2014; 10.3%) reflecting an increase in CET1 capital of GBP0.5bn to GBP42.0bn and decrease in RWAs of GBP25.2bn to GBP377bn

-- Capital generated from earnings increased CET1 capital by GBP0.3bn after absorbing adjusting items, own credit and dividends paid and foreseen. Other material movements in CET1 capital were:

- GBP0.6bn decrease in other qualifying reserves largely due to a GBP0.5bn decrease in the currency translation reserve as GBP strengthened against EUR, USD and ZAR

- GBP0.8bn increase due to lower regulatory adjustments and deductions largely as a result of a GBP0.7bn decrease in the PVA deduction, which includes a tax credit of GBP0.4bn applied in Q2 and GBP0.3bn reductions across Non-Core

-- Transitional total capital decreased by GBP0.7bn to GBP65.7bn largely due to capital redemptions in the period of $225m fixed rate subordinated notes and GBP265m fixed rate guaranteed perpetual subordinated notes (T2 capital). Further decreases were as a result of higher capital deductions for holdings in own paper and ineligible minority interest

 
Risk weighted assets by risk type and business 
                                        Counterparty                  Operational    Total 
                         Credit risk     credit risk     Market risk         risk     RWAs 
                                      ==============                  ===========  ======= 
                        Std      IRB     Std     IRB     Std     IMA 
 
As at 30.06.15         GBPm     GBPm    GBPm    GBPm    GBPm    GBPm         GBPm     GBPm 
===================  ======  =======  ======  ======  ======  ======  ===========  ======= 
Personal and 
 Corporate Banking   31,687   71,481     268     859     108       -       16,176  120,579 
Barclaycard          16,149   18,624       -       -       -       -        5,505   40,278 
Africa Banking        8,003   20,749      18     416     306   1,266        5,604   36,362 
Investment Bank       4,501   36,117  15,263  11,412  12,656  15,718       19,621  115,288 
Head Office             487    3,071     102      87       1   1,695        2,104    7,547 
===================  ======  =======  ======  ======  ======  ======  ===========  ======= 
Total Core           60,827  150,042  15,651  12,774  13,071  18,679       49,010  320,054 
Barclays Non-Core     7,300   13,761   2,532  13,267   1,226  10,893        7,650   56,629 
===================  ======  =======  ======  ======  ======  ======  ===========  ======= 
Total RWAs           68,127  163,803  18,183  26,041  14,297  29,572       56,660  376,683 
 
As at 31.12.14 
                             =======  ======  ======  ======  ======  ===========  ======= 
Personal and 
 Corporate Banking   32,657   70,080     238   1,049      26       -       16,176  120,226 
Barclaycard          15,910   18,492       -       -       -       -        5,505   39,907 
Africa Banking        9,015   21,794      10     562     948     588        5,604   38,521 
Investment Bank       5,773   36,829  13,739  11,781  18,179  16,480       19,621  122,402 
Head Office             506    2,912     234      62       7     521        1,326    5,568 
===================  ======  =======  ======  ======  ======  ======  ===========  ======= 
Total Core           63,861  150,107  14,221  13,454  19,160  17,589       48,232  326,624 
Barclays Non-Core    10,679   19,416   3,023  18,406   2,236  13,088        8,428   75,276 
===================  ======  =======  ======  ======  ======  ======  ===========  ======= 
Total RWAs           74,540  169,523  17,244  31,860  21,396  30,677       56,660  401,900 
 
 
Movement analysis of risk weighted assets 
                               Credit  Counterparty    Market  Operational 
                                 risk        credit   risk(2)         risk 
                                            risk(1)                         Total 
Risk weighted assets            GBPbn         GBPbn     GBPbn        GBPbn  GBPbn 
=============================  ======  ============  ========  ===========  ===== 
As at 1 January 2015            244.0          49.1      52.1         56.7  401.9 
Book size                         3.0         (6.1)     (4.4)            -  (7.5) 
Acquisitions and disposals      (9.6)             -     (0.3)            -  (9.9) 
Book quality                    (1.7)         (0.7)       0.7            -  (1.7) 
Model updates                   (1.7)         (1.3)     (2.3)            -  (5.3) 
Methodology and policy            1.9           3.2     (1.9)            -    3.2 
Foreign exchange movement(3)    (4.1)             -         -            -  (4.1) 
Other                             0.1             -         -            -    0.1 
=============================  ======  ============  ========  ===========  ===== 
As at 30 June 2015              231.9          44.2      43.9         56.7  376.7 
 

RWAs decreased GBP25.2bn to GBP376.7bn:

-- Book size decreased RWAs by GBP7.5bn, due to risk reductions in the Investment Bank and Non-Core trading books, offset by increased PCB loans and advances to customers

-- Acquisitions and disposals decreased RWAs by GBP9.9bn, primarily driven by disposals in Non-Core, including the sale of the Spanish business

-- Book quality improved, resulting in a RWA reduction of GBP1.7bn, primarily driven by changes in risk profile within PCB and Non-Core

-- Model updates decreased RWAs by GBP5.3bn, following the implementation of diversification benefits across advanced general and specific market risk, as well as a recalibration of a credit risk model within the Investment Bank and Non-Core

-- Methodology and policy changes increased RWAs by GBP3.2bn, due to the capture of an extended margin period of risk for securities financing transactions within the Investment Bank

-- Foreign exchange movements decreased RWAs by GBP4.1bn, as GBP appreciated against ZAR, USD and EUR

 
 1   RWAs in relation to default fund contributions are included in 
      counterparty credit risk. 
 2   RWAs in relation to CVA (GBP13.3bn) are included in market risk. 
 3   Foreign exchange movements do not include movements for counterparty 
      credit risk or market risk. 
 

Leverage ratio requirements

In January 2014, the Basel Committee finalised its revised standards (BCBS 270) for calculating the Basel 3 leverage ratio. The European Commission has implemented the amendments into the CRR via a delegated act which came into force from January 2015. The leverage calculation below uses the end-point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure as adopted by a European Union delegated act.

Barclays does not believe that there is a material difference between the BCBS 270 leverage exposure previously disclosed and a leverage exposure calculated in accordance with the delegated act.

At 30 June 2015 Barclays leverage ratio was 4.1%, which exceeds the expected minimum fully loaded requirement outlined by the Financial Policy Committee (FPC)(1) of 3.7%, comprising the 3% minimum requirement, and the fully phased-in G-SII buffer.

 
Leverage exposure and ratio 
                                                     As at     As at     As at 
                                                  30.06.15  31.03.15  31.12.14 
Leverage exposure                                    GBPbn     GBPbn     GBPbn 
===============================================  =========  ========  ======== 
 
Accounting assets 
Derivative financial instruments                       341       480       440 
Cash collateral                                         60        80        73 
Reverse repurchase agreements                           93       124       132 
Loans and advances and other assets                    703       732       713 
===============================================  =========  ========  ======== 
Total IFRS assets                                    1,197     1,416     1,358 
 
Regulatory consolidation adjustments                   (5)       (8)       (8) 
 
Derivatives adjustments 
Derivatives netting                                  (308)     (436)     (395) 
Adjustments to cash collateral                        (47)      (63)      (53) 
Net written credit protection                           20        25        27 
Potential Future Exposure (PFE) on derivatives         160       176       179 
===============================================  =========  ========  ======== 
Total derivatives adjustments                        (175)     (298)     (242) 
 
Securities financing transactions (SFTs) 
 adjustments                                            24        46        25 
 
Regulatory deductions and other adjustments           (14)      (15)      (15) 
Weighted off-balance sheet commitments                 112       114       115 
 
Total fully loaded leverage exposure                 1,139     1,255     1,233 
 
Fully loaded CET1 capital                             42.0      41.8      41.5 
Fully loaded AT1 capital                               4.5       4.5       4.6 
===============================================  =========  ========  ======== 
Fully loaded Tier 1 capital                           46.5      46.3      46.0 
 
Fully loaded leverage ratio                           4.1%      3.7%      3.7% 
 

During H115 leverage exposure decreased GBP94bn to GBP1,139bn:

-- SFTs decreased by GBP40bn, primarily due to a reduction in IFRS reverse repurchase agreements of GBP39bn to GBP93bn, driven by reductions in matched book trading as a result of balance sheet deleveraging

-- Total derivative exposures(2) decreased GBP45bn primarily due to a GBP19bn reduction in the PFE and a GBP19bn net reduction in IFRS derivatives and cash collateral.

- The PFE on derivatives decreased GBP19bn to GBP160bn, mainly as a result of continued legacy portfolio run down and optimisation including trade compressions and tear-ups

- Other derivatives exposures decreased GBP19bn to GBP46bn, driven by a net decrease in IFRS derivatives, primarily due to increases in major forward rate curves and continued legacy portfolio run down

- Net written credit protection decreased GBP7bn to GBP20bn primarily due to a reduction in business activity and improved portfolio netting

-- Loans and advances and other assets decreased by GBP10bn to GBP703bn primarily driven by a reduction in trading portfolio assets

 
 1   In July 2015 the PRA set out a consultation on how it proposes 
      to implement the FPC recommendations in the UK. The PRA is expected 
      to publish a policy statement, finalised rules and supervisory 
      statements by the end of 2015. 
 2   Total derivative exposures include IFRS derivative financial 
      instruments, cash collateral and total derivatives adjustments. 
 

Credit Risk

Analysis of loans and advances to customers and banks

 
Loans and advances at amortised cost net of impairment allowances, 
 by industry sector and geography 
 
                                                                Africa 
                                 United                     and Middle 
As at 30.06.15                  Kingdom  Europe  Americas         East    Asia    Total 
                                   GBPm    GBPm      GBPm         GBPm    GBPm     GBPm 
=============================  ========  ======  ========  ===========  ======  ======= 
Banks                             7,092  12,377    14,510        2,617   4,374   40,970 
Other financial institutions     24,091  20,546    52,379        2,873   5,910  105,799 
Home loans                      133,491  17,476       695       12,450     229  164,341 
Cards, unsecured loans and 
 other personal lending          27,863   4,691    15,628        8,561   1,413   58,156 
Construction and property        18,207   1,035     1,612        1,909     326   23,089 
Other                            41,403  13,266    11,228       12,052   4,963   82,912 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
Net loans and advances to 
 customers and banks            252,147  69,391    96,052       40,462  17,215  475,267 
Impairment allowance              2,484   1,091       581          957      80    5,193 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
Gross loans and advances 
 to customers and banks         254,631  70,482    96,633       41,419  17,295  480,460 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
 
Loans and advances at FV         16,472     405       666        1,002       1   18,546 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
 
As at 31.12.14 
=============================  ========  ======  ========  ===========  ======  ======= 
Banks                             6,900  12,611    12,917        2,499   5,338   40,265 
Other financial institutions     23,685  22,114    49,160        4,123   4,306  103,388 
Home loans                      132,775  19,713       769       13,356     361  166,974 
Cards, unsecured loans and 
 other personal lending          28,061   5,226    15,666        8,605   1,356   58,914 
Construction and property        17,837   1,175     1,655        1,888     287   22,842 
Other                            39,757  11,972     9,621       12,020   4,125   77,495 
=============================  ========  ======  ========  ===========  ======  ======= 
Net loans and advances to 
 customers and banks            249,015  72,811    89,788       42,491  15,773  469,878 
Impairment allowance              2,653   1,219       499        1,001      83    5,455 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
Gross loans and advances 
 to customers and banks         251,668  74,030    90,287       43,492  15,856  475,333 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
 
Loans and advances at FV         17,627   1,041       894          635       1   20,198 
-----------------------------  --------  ------  --------  -----------  ------  ------- 
 
 
Analysis of retail and wholesale loans and advances 
 and impairment 
                                                                            CRLs 
                                                                            % of                     Loan 
                          Gross  Impairment         L&A net       Credit   gross  Loan impairment    loss 
As at 30.06.15              L&A   allowance   of impairment   risk loans     L&A       charges(1)   rates 
                           GBPm        GBPm            GBPm         GBPm       %             GBPm     bps 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Personal & Corporate 
 Banking                137,311         730         136,581        1,486     1.1              125      18 
Africa Banking           20,414         649          19,765        1,029     5.0              154     152 
Barclaycard              38,689       1,759          36,930        1,735     4.5              563     293 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Barclays Core           196,414       3,138         193,276        4,250     2.2              842      86 
 
Barclays Non-Core        17,625         420          17,205        1,077     6.1               51      58 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Total Group Retail      214,039       3,558         210,481        5,327     2.5              893      84 
 
Investment Bank         123,094          31         123,063           56       -              (6)     (1) 
Personal & Corporate 
 Banking                 86,395         835          85,560        1,846     2.1               54      13 
Africa Banking           16,548         243          16,305          642     3.9               39      48 
Head Office and 
 Other Operations         3,169           -           3,169            4     0.1                1       6 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Barclays Core           229,206       1,109         228,097        2,548     1.1               88       8 
 
Barclays Non-Core        37,215         526          36,689          754     2.0             (24)    (13) 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Total Group Wholesale   266,421       1,635         264,786        3,302     1.2               64       5 
 
Group Total             480,460       5,193         475,267        8,629     1.8              957      40 
 
Traded Loans              2,048         n/a           2,048 
Loans and advances 
 designated at fair 
 value                   18,546         n/a          18,546 
======================  =======  ==========  ============== 
Loans and advances 
 held at fair value      20,594         n/a          20,594 
 
Total loans and 
 advances               501,054       5,193         495,861 
 
As at 31.12.14 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Personal & Corporate 
 Banking(2)             136,544         766         135,778        1,582     1.2              215      16 
Africa Banking           21,334         681          20,653        1,093     5.1              295     138 
Barclaycard              38,376       1,815          36,561        1,765     4.6            1,183     308 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Barclays Core           196,254       3,262         192,992        4,440     2.3            1,693      86 
 
Barclays Non-Core        20,259         428          19,831        1,209     6.0              151      75 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Total Group Retail      216,513       3,690         212,823        5,649     2.6            1,844      85 
 
Investment Bank         106,377          44         106,333           71     0.1             (14)     (1) 
Personal & Corporate 
 Banking(2)              88,192         873          87,319        2,112     2.4              267      30 
Africa Banking           16,312         246          16,066          665     4.1               54      33 
Head Office and 
 Other Operations         3,240           -           3,240            -       -                -       - 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Barclays Core           214,121       1,163         212,958        2,848     1.3              307      14 
 
Barclays Non-Core        44,699         602          44,097          841     1.9               53      12 
======================  =======  ==========  ==============  ===========  ======  ===============  ====== 
Total Group Wholesale   258,820       1,765         257,055        3,689     1.4              360      14 
 
Group Total             475,333       5,455         469,878        9,338     2.0            2,204      46 
 
Traded Loans              2,693         n/a           2,693 
Loans and advances 
 designated at fair 
 value                   20,198         n/a          20,198 
======================  =======  ==========  ============== 
Loans and advances 
 held at fair value      22,891         n/a          22,891 
 
Total loans and 
 advances               498,224       5,455         492,769 
 

-- Loans and advances to customers and banks at amortised cost net of impairment increased to GBP475.3bn (2014: GBP469.9bn)

- Investment Bank increased by GBP16.7bn to GBP123.1bn reflecting a net increase in cash collateral and settlement balances driven principally by higher trading volumes

- Non-Core decreased by GBP10.0bn to GBP53.9bn due to a net reduction in cash collateral and settlements and the run off of assets in Europe

 
 1   Excludes impairment charges on available for sale investments 
      and reverse repurchase agreements. H115 impairment charges represent 
      six months charge, whereas December 2014 impairment charges represent 
      12 months charge. 
 2   UK Business Banking has been reclassified from Retail to Wholesale 
      in line with how the business is now managed. 2014 figures have 
      been restated to reflect this, with net loans and advances of 
      GBP8.4bn, credit risk loans of GBP482m and impairment charges 
      of GBP48m being reclassified to Wholesale. 
 
 
 Analysis of potential credit risk loans and 
  coverage ratios 
                                            CRLs                  PPLs                  PCRLs 
                                    ====================  ====================  ==================== 
                                        As at      As at      As at      As at      As at      As at 
                                     30.06.15   31.12.14   30.06.15   31.12.14   30.06.15   31.12.14 
                                         GBPm       GBPm       GBPm       GBPm       GBPm       GBPm 
==================================  =========  =========  =========  =========  =========  ========= 
 Personal & Corporate Banking(1)        1,486      1,582        151        143      1,637      1,725 
 Africa Banking                         1,029      1,093        170        161      1,199      1,254 
 Barclaycard                            1,735      1,765        217        227      1,952      1,992 
==================================  =========  =========  =========  =========  =========  ========= 
 Barclays Core                          4,250      4,440        538        531      4,788      4,971 
 
 Barclays Non-Core                      1,077      1,209         24         26      1,101      1,234 
==================================  =========  =========  =========  =========  =========  ========= 
 Total Group Retail                     5,327      5,649        562        557      5,889      6,205 
 
 Investment Bank                           56         71        270        107        326        178 
 Personal & Corporate Banking(1)        1,846      2,112        498        614      2,344      2,726 
 Africa Banking                           642        665         66         94        708        759 
 Head Office and Other Operations           4          -          -          -          4          - 
==================================  =========  =========  =========  =========  =========  ========= 
 Barclays Core                          2,548      2,848        834        815      3,382      3,663 
 
 Barclays Non-Core                        754        841         29        119        783        960 
==================================  =========  =========  =========  =========  =========  ========= 
 Total Group Wholesale                  3,302      3,689        863        934      4,165      4,623 
 
 Group Total                            8,629      9,338      1,425      1,491     10,054     10,828 
 
                                         Impairment           CRL coverage          PCRL coverage 
                                          allowance 
                                    ====================  ====================  ==================== 
                                        As at      As at      As at      As at      As at      As at 
                                     30.06.15   31.12.14   30.06.15   31.12.14   30.06.15   31.12.14 
                                         GBPm       GBPm          %          %          %          % 
==================================  =========  =========  =========  =========  =========  ========= 
 Personal & Corporate Banking(1)          730        766       49.1       48.4       44.6       44.4 
 Africa Banking                           649        681       63.1       62.3       54.1       54.3 
 Barclaycard                            1,759      1,815      101.4      102.8       90.1       91.1 
==================================  =========  =========  =========  =========  =========  ========= 
 Barclays Core                          3,138      3,262       73.8       73.5       65.5       65.6 
 
 Barclays Non-Core                        420        428       39.0       35.4       38.1       34.7 
==================================  =========  =========  =========  =========  =========  ========= 
 Total Group Retail                     3,558      3,690       66.8       65.3       60.4       59.5 
 
 Investment Bank                           31         44       55.4       62.0        9.5       24.7 
 Personal & Corporate Banking(1)          835        873       45.2       41.3       35.6       32.0 
 Africa Banking                           243        246       37.9       37.0       34.3       32.4 
 Head Office and Other Operations           -          -          -          -          -          - 
==================================  =========  =========  =========  =========  =========  ========= 
 Barclays Core                          1,109      1,163       43.5       40.8       32.8       31.7 
 
 Barclays Non-Core                        526        602       69.8       71.6       67.2       62.7 
==================================  =========  =========  =========  =========  =========  ========= 
 Total Group Wholesale                  1,635      1,765       49.5       47.8       39.3       38.2 
 
 Group Total                            5,193      5,455       60.2       58.4       51.7       50.4 
 

- Credit Risk Loans (CRLs) decreased 8% to GBP8.6bn with a 10% decrease to GBP3.3bn in wholesale portfolios and 6% to GBP5.3bn in retail portfolios. This is primarily driven by reductions in PCB and Non-Core Europe due to improving economic conditions

 
 1   UK Business Banking has been reclassified from Retail to Wholesale 
      in line with how the business is now managed. 2014 figures have 
      been restated to reflect this, with credit risk loans of GBP482m, 
      PPLs of GBP32m and PCRLs of GBP514m being reclassified to Wholesale. 
 

Analysis of forbearance programmes

 
                                         Balances             Impairment         Allowance coverage 
                                                               allowance 
                                   ====================  ====================  ===================== 
                                       As at      As at      As at      As at       As at      As at 
                                    30.06.15   31.12.14   30.06.15   31.12.14    30.06.15   31.12.14 
                                        GBPm       GBPm       GBPm       GBPm           %          % 
=================================  =========  =========  =========  =========  ==========  ========= 
 Personal & Corporate Banking(1)       1,744      2,011         45         46         2.6        2.3 
 Africa Banking                          268        299         36         45        13.4       15.1 
 Barclaycard                             805        972        285        394        35.4       40.5 
=================================  =========  =========  =========  =========  ==========  ========= 
 Barclays Core                         2,817      3,282        366        485        13.0       14.8 
 
 Barclays Non-Core                       365        419         40         49        11.0       11.7 
=================================  =========  =========  =========  =========  ==========  ========= 
 Total Retail                          3,182      3,701        406        534        12.8       14.4 
 
 Investment Bank                         174        106         13         10         7.5        9.4 
 Personal & Corporate Banking(1)       1,841      1,830        291        255        15.8       13.9 
 Africa Banking                          152        132         11          7         7.2        5.3 
=================================  =========  =========  =========  =========  ==========  ========= 
 Barclays Core                         2,167      2,068        315        272        14.5       13.2 
 
 Barclays Non-Core                       265        651        104        271        39.2       41.6 
=================================  =========  =========  =========  =========  ==========  ========= 
 Total Wholesale                       2,432      2,719        419        543        17.2       20.0 
 
 Group Total                           5,614      6,420        825      1,077        14.7       16.8 
 

-- Retail balances on forbearance reduced by 14% to GBP3.2bn primarily due to PCB and Barclaycard

- PCB: UK home loans decreased, principally due to a reduction in the proportion of accounts meeting the Mortgage Current Account reserve forbearance classification criteria

- Barclaycard: Reduction primarily due to an asset sale in Q115 and updated entry criteria for forbearance programmes, which reduced inflows in the UK cards portfolio

-- Wholesale balances on forbearance reduced by 11% to GBP2.4bn due to a reduction in Non-Core. Core balances on forbearance rose by 5% to GBP2.2bn reflecting small increases in all businesses

Analysis of specific core portfolios/businesses

Secured home loans

-- The principal home loan portfolios listed below primarily comprise first lien mortgages and account for 87% (2014: 86%) of total home loans in the Group's retail core portfolios

 
Home loans principal portfolios 
                                                                                     Recoveries 
                                             90 day   Non performing   Annualised    proportion   Recoveries 
                                           arrears,       proportion        gross            of   impairment 
                           Gross loans    excluding   of outstanding   charge-off   outstanding     coverage 
                          and advances   recoveries         balances        rates      balances        ratio 
As at 30.06.15                    GBPm            %                %            %             %            % 
=======================  =============  ===========  ===============  ===========  ============  =========== 
 PCB - UK                      127,551          0.2              0.6          0.4           0.4          8.9 
 Africa - South Africa          11,046          0.7              4.2          1.7           3.5         27.7 
 
As at 31.12.14 
=======================  =============  ===========  ===============  ===========  ============  =========== 
 PCB - UK                      126,668          0.2              0.6          0.4           0.4          8.3 
 Africa - South Africa          11,513          0.7              4.8          1.9           4.1         31.1 
 
 
 1   UK Business Banking forbearance has been reclassified from Retail 
      to Wholesale, in line with the way the business is now managed. 
      2014 balances of GBP240m and impairment allowances of GBP30m 
      have been restated to reflect this. 
 
 
Home loans principal portfolios - distribution 
 of balances by LTV(1) 
                                                      PCB - UK         Africa - South 
                                                                           Africa 
                                                 30.06.15  31.12.14  30.06.15  31.12.14 
                                                        %         %         %         % 
===============================================  ========  ========  ========  ======== 
<=75%                                                90.7      90.2      76.7      74.6 
>75% and <=80%                                        4.0       4.2       7.2       7.7 
>80% and <=85%                                        2.2       2.3       5.7       5.9 
>85% and <=90%                                        1.5       1.4       3.8       4.3 
>90% and <=95%                                        0.9       1.0       2.4       2.5 
>95% and <=100%                                       0.3       0.4       1.5       1.5 
>100%                                                 0.4       0.5       2.7       3.5 
 
Portfolio Marked To Market LTV: 
Balance weighted %                                   51.0      51.6      58.5      59.9 
Valuation weighted %                                 39.1      39.8      39.4      40.2 
 
For > 100% LTV: 
===============================================  ========  ========  ========  ======== 
Balances GBPm                                         528       641       294       390 
Marked to market collateral GBPm                      439       558       247       324 
Average LTV: Balance weighted %                     126.2     120.9     122.5     124.2 
Average LTV: Valuation weighted %                   120.2     114.8     118.8     120.3 
% Balances in Recovery Book                           5.0       4.4      34.8      37.1 
 

-- PCB - UK: Arrears and charge-off rates remained steady, reflecting the continuing low base rate and benign economic conditions. Balance weighted LTV reduced to 51.0% (2014: 51.6%) as average house prices increased. This increase also contributed to a reduction in home loans that have LTV >100% of 18% to GBP528m

-- Africa - South Africa: The decrease in non-performing balances to 4.2% (2014: 4.8%) was due to a further reduction in the recoveries book and continued strong performance of new lending. Balances with >100% LTV reduced 25% to GBP294m as the recoveries book decreased, and average house price appreciated

 
Home loans principal portfolios - new lending 
                                               PCB - UK         Africa - South 
                                                                    Africa 
                                          ==================  ================== 
                                          30.06.15  30.06.14  30.06.15  30.06.14 
========================================  ========  ========  ========  ======== 
New bookings (GBPm)(2)                       9,549    10,162       811       763 
New mortgages proportion above 
 85% LTV (%)                                   8.3       5.0      39.2      32.9 
Average LTV on new mortgages: balance 
 weighted (%)                                 62.3      64.4      75.1      75.0 
Average LTV on new mortgages: valuation 
 weighted (%)                                 53.6      57.2      66.2      65.6 
 

-- PCB - UK: New lending during H115 reduced by 6%, in line with the reduction in market activity in the prime residential segment. The increase in mortgages with LTV above 85% to 8.3% (2014: 5.0%) reflected increased appetite for higher LTV lending in the UK as confidence in the housing market improved

-- Africa - South Africa: The proportion of new home loans with LTV above 85% increased to 39.2% (2014: 32.9%) due to a revised strategy which allows a greater proportion of higher LTV loans to be booked for lower risk customers

Exposures to interest only home loans

-- The Group provides interest-only mortgages to customers, mainly in the UK. Interest-only mortgages account for GBP51bn (2014: GBP51bn) of the total balance of GBP128bn (2014: GBP127bn) of UK home loans. This comprised GBP41bn (2014: GBP42bn) to owner-occupied customers, and GBP10bn (2014: GBP9bn) to buy-to-let customers.

-- Of the GBP41bn exposure to owner-occupied customers, GBP35bn (2014: GBP35bn) was interest-only, with the remaining GBP6bn (2014: GBP7bn) representing the interest-only component of Part and Part(3) mortgages.

 
Exposure to interest only owner-occupied home 
 loans                                             As at     As at 
                                                30.06.15  31.12.14 
----------------------------------------------  --------  -------- 
Interest only balances (GBPm)                     34,855    35,328 
Total Impairment Coverage (bps)                       10         8 
Marked to market LTV: Balance weighted %            47.5      48.7 
Marked to market LTV: Valuation weighted %          36.8      37.6 
 
 
 1   Portfolio marked to market based on the most updated valuation 
      including recoveries balances. Updated valuations reflect the 
      application of the latest house price index available in the 
      country as at 30 June 2015. 
 2   2014 new bookings for South Africa Home Loan was revised to include 
      new advances to existing customers. 
 3   A Part and Part Home Loan is a product in which part of the loan 
      is interest only and part is amortising. Analysis excludes the 
      interest only portion of the part and part book which contributes 
      GBP6.4bn (2014: GBP6.6bn) to the total interest-only balance 
      of GBP41.1bn (2014: GBP41.9bn). Total exposure on the part and 
      part book is GBP9.1bn (2014: GBP9.8bn) and represents 7% of total 
      UK home loans portfolio. 
 

Credit cards, overdrafts and unsecured loans

-- The principal portfolios listed below accounted for 94% (2014: 94%) of the Group's total credit cards, overdrafts and unsecured loans

 
                                                                                    Recoveries 
                                                30 Day       90 Day   Annualised    Proportion   Recoveries 
                                    Gross     Arrears,     Arrears,        Gross            of   Impairment 
                                    Loans    excluding    excluding   Charge-off   Outstanding     Coverage 
Principal Portfolios         and Advances   recoveries   recoveries        Rates      Balances        Ratio 
As at 30.06.15                       GBPm            %            %            %             %            % 
--------------------------  =============  ===========  ===========  ===========  ============  =========== 
 Barclaycard 
 UK cards(1)                       17,378          2.4          1.2          5.6           5.3         85.4 
 US cards(1)                       14,299          1.9          0.9          3.9           2.1         88.2 
 Barclays Partner Finance           3,734          1.4          0.6          2.3           2.5         80.6 
 Germany cards                      1,300          2.6          1.0          3.8           3.0         81.9 
 Iberia cards                         901          6.0          2.6          8.0           6.2         84.2 
 Personal & Corporate 
  Banking 
 UK personal loans                  5,232          1.8          0.7          3.0           7.9         75.1 
 UK overdrafts                        839          5.0          3.7          8.0          11.4         87.4 
 Africa Banking 
 South Africa cards                 2,278          9.4          5.2          5.4           6.6         74.8 
 South Africa personal 
  loans                               972          5.9          3.0          7.8           8.0         72.5 
 
As at 31.12.14 
--------------------------  -------------  -----------  -----------  -----------  ------------  ----------- 
 Barclaycard 
 UK cards(1)                       17,447          2.5          1.2          4.3           4.9         87.6 
 US cards(1)                       14,005          2.1          1.0          3.7           1.8         87.1 
 Barclays Partner Finance           3,399          1.5          0.7          2.4           2.7         76.8 
 Germany cards                      1,355          2.5          1.1          3.8           3.4         82.8 
 Iberia cards                         968          6.0          2.5          8.2           6.3         84.9 
 Personal & Corporate 
  Banking 
 UK personal loans                  4,953          2.0          0.9          3.4          10.0         76.3 
 UK overdrafts                        902          5.8          4.0          7.1          11.0         89.9 
 Africa Banking 
 South Africa cards                 2,364          8.1          4.6          7.6           5.9         75.7 
 South Africa personal 
  loans                               993          5.4          2.6          8.1           7.8         70.8 
 

-- UK cards: Primary driver for the increased charge-off rate to 5.6% (2014: 4.3%) was debt sale activity on legacy forbearance plans, which required early acceleration of accounts to charge-off prior to sale. The decrease in recovery coverage ratio was due to recent improvements in cash recoveries and further refinements to modelled impairment methodologies, including the use of more granular account segmentation

-- US cards: Arrears rates remained stable due to a strategy focused on high quality customers and low risk partnerships

-- UK personal loans: Arrears and charge-off rates fell despite a 5% growth in gross loans and advances and reflected the benign economic conditions

-- Barclays Partner Finance: The increase in recoveries impairment coverage was due to a reclassification of management adjustments to the impairment allowance that were previously held at the portfolio level, to the recoveries segment. The overall coverage remains unchanged

-- South Africa cards: Increased arrears in part reflected the growth of bookings in 2014 in line with business strategy, as well as seasonal trends. The level of arrears was in line with the same period in 2014

 
 1   For UK and US cards, outstanding recoveries balances for acquired 
      portfolios recognised at fair value (which have no related impairment 
      allowance) have been excluded from the recoveries impairment 
      coverage ratio. Losses have been recognised where related to 
      additional spend from acquired accounts in the period post acquisition. 
 

Group exposures to Eurozone countries

-- The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to monitor events closely while taking coordinated steps to mitigate the risks associated with the challenging economic environment

-- During H115 the Group's net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece decreased by GBP17.7bn to GBP25.6bn primarily due to a GBP13.2bn reduction in Spain following the sale of Spanish business

-- As at 30 June 2015, the local net funding deficit in Italy was EUR4.8bn (2014: EUR9.9bn) and the deficit in Portugal was EUR1.7bn (2014: EUR1.9bn). The net funding surplus in Spain was EUR3.3bn (2014: EUR4.3bn)

-- The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of particular management focus. The basis of preparation is consistent with that described in the 2014 Annual Report

-- The net exposure provides the most appropriate measure of the credit risk to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments

 
                                                                                     Net         Gross    Contingent 
                                                                     Other    on-balance    on-balance   liabilities 
                               Financial             Residential    retail         Sheet         sheet           and 
                Sovereign   institutions  Corporate    mortgages   lending      exposure      exposure   commitments 
As at 30.06.15       GBPm           GBPm       GBPm         GBPm      GBPm          GBPm          GBPm          GBPm 
==============  =========  =============  =========  ===========  ========  ============  ============  ============ 
Spain                 173            697      1,099           15       311         2,295         9,285         1,865 
Italy               1,333            426        972       11,895       832        15,458        21,899         2,468 
Portugal               36             28        350        2,641     1,105         4,160         4,420         1,365 
Ireland                38          2,101      1,247           61        51         3,498         7,077         2,208 
Cyprus                 26              7         44           17        31           125           379            22 
Greece                  6              5         15            6         3            35           972             - 
==============  =========  =============  =========  ===========  ========  ============  ============  ============ 
Total               1,612          3,264      3,727       14,635     2,333        25,571        44,032         7,928 
 
As at 31.12.14 
==============  =========  =============  =========  ===========  ========  ============  ============  ============ 
Spain                 108         14,043      1,149           12       248        15,560        24,873         2,863 
Italy               1,716            485      1,128       13,530     1,114        17,973        25,967         3,033 
Portugal              105              7        531        2,995     1,207         4,845         5,050         1,631 
Ireland                37          3,175      1,453           43        50         4,758         9,445         2,070 
Cyprus                 28             12         61            6        16           123           707            26 
Greece                  1             11         15            -         -            27         1,279             - 
==============  =========  =============  =========  ===========  ========  ============  ============  ============ 
Total               1,995         17,733      4,337       16,586     2,635        43,286        67,321         9,623 
 

Market Risk

Analysis of Management VaR

-- The table below shows the total Management VaR on a diversified basis by risk factor. Total Management VaR includes all trading positions in the Investment Bank, Non-Core, Africa Banking and Head Office

-- Limits are applied against each risk factor VaR as well as total Management VaR, which are then cascaded further by risk managers to each business

 
Management VaR (95%) by asset 
 class 
Six months ended          30.06.15                31.12.14                30.06.14 
                   Daily  High(1)  Low(1)  Daily  High(1)  Low(1)  Daily  High(1)  Low(1) 
                     Avg                     Avg                     Avg 
                    GBPm     GBPm    GBPm   GBPm     GBPm    GBPm   GBPm     GBPm    GBPm 
=================  =====  =======  ======  =====  =======  ======  =====  =======  ====== 
Credit risk           10       13       8     10       13       9     12       15       9 
Interest rate 
 risk                  7       12       4     12       17       7     10       14       6 
Spread risk            3        6       2      4        5       3      5        8       3 
Basis risk             3        4       3      3        5       2      6        8       4 
Equity risk            9       17       5     10       15       6     12       23       8 
Commodity risk         2        2       1      2        3       1      3        8       2 
Foreign exchange 
 risk                  3        5       1      4       23       1      4        6       2 
Inflation risk         3        5       2      2        3       2      3        4       2 
Diversification 
 effect             (22)        -       -   (26)        -       -   (32)        -       - 
=================  =====  =======  ======  =====  =======  ======  =====  =======  ====== 
Total Management 
 VaR                  18       25      13     21       36      17     23       31      18 
 
   --     With the exception of Interest Rate Risk, all asset class VaRs remained stable during H115 

-- Average Interest Rate Risk Management VaR decreased by 42% to GBP7m, as certain positions included within the liquidity pool were transferred to Head Office Treasury banking book. These high quality and liquid banking book assets are now reported as non-traded market risk exposures to ensure consistent management of the liquidity pool

-- This decrease together with a reduction in exposure in Non-Core led to a fall in total Management VaR of 14% to GBP18m

Analysis of net interest income sensitivity

The table below shows sensitivity analysis on the pre-tax net interest income for the non-trading financial assets and financial liabilities held at 31 May 2015 and 31 December 2014

 
Net interest income sensitivity (AEaR) by 
 business 
============================================================== 
                                 Personal 
                              & Corporate 
                                  Banking  Barclaycard  Africa  Non-core  Other(4)  Total 
Period ended 31.05.15(2,3)           GBPm         GBPm    GBPm      GBPm      GBPm   GBPm 
===========================  ============  ===========  ======  ========  ========  ===== 
+200bps                               302         (28)      20        19      (87)    226 
+100bps                               150         (15)      10        10      (62)     93 
-100bps                             (392)           16     (4)         -        63  (317) 
-200bps                             (442)           19     (4)       (1)        64  (364) 
 
Period ended 31.12.14(3) 
===========================  ============  ===========  ======  ========  ========  ===== 
+200bps                               464         (59)      26         6      (97)    340 
+100bps                               239         (27)      13         3      (58)    170 
-100bps                             (426)           26     (9)       (1)        26  (384) 
-200bps                             (430)           29    (17)       (1)        39  (380) 
 

-- In PCB, the reduction in NII sensitivity was due to increased hedging of certain deposit products exposure to interest rate changes

 
 1   The high and low DVaR figures reported for each category did 
      not necessarily occur on the same day as the high and low DVaR 
      reported as a whole. Consequently a diversification effect balance 
      for the high and low DVaR figures would not be meaningful and 
      is therefore omitted from the above table. 
 2   Based on May 2015 data, being the latest available. 
 3   Excluding investment banking operations. 
 4   Excluding the banking book assets of the liquidity pool held 
      in Head Office. 
 

Statement of Directors' Responsibilities

The Directors (who are listed below) confirm that the condensed consolidated interim financial statements set out on pages 51 to 89 have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R and 4.2.8R namely:

-- An indication of important events that have occurred during the six months ended 30 June 2015 and their impact on the condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year

-- Material related party transactions in the six months ended 30 June 2015 and any material changes in the related party transactions described in the last Annual Report

Signed on behalf of the Board by

John McFarlane Tushar Morzaria

Executive Chairman Group Finance Director

Barclays PLC Board of Directors:

 
 Executive Directors                         Non-executive Directors 
  John McFarlane (Executive Chairman)         Mike Ashley 
  Tushar Morzaria (Group Finance Director)    Tim Breedon 
                                              Crawford Gillies 
                                              Reuben Jeffery 
                                              Wendy Lucas-Bull 
                                              Dambisa Moyo 
                                              Frits van Paasschen 
                                              Sir Michael Rake 
                                              Diane de Saint Victor 
                                              Diane Schueneman 
                                              Steve Thieke 
 

Independent Auditors' Review Report to Barclays PLC

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed the condensed consolidated interim financial statements, defined below, in the interim results announcement of Barclays PLC for the six months ended 30 June 2015. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

This conclusion is to be read in the context of what we say in the remainder of this report.

What we have reviewed

The condensed consolidated interim financial statements, which are prepared by Barclays PLC, comprise:

   --     the condensed consolidated Balance Sheet as at 30 June 2015; 
   --     the condensed consolidated Income Statement for the six months ended 30 June 2015; 
   --     the condensed consolidated statement of Comprehensive Income for the period then ended; 
   --     the condensed consolidated statement of Cash Flows for the period then ended; 
   --     the condensed consolidated statement of Changes in Equity for the period then ended; and 
   --     the related notes to the condensed consolidated interim financial statements. 

As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed consolidated interim financial statements included in the interim results announcement have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

What a review of condensed consolidated financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the interim results announcement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial statements.

Responsibilities for the condensed consolidated interim financial statements and the review

Our responsibilities and those of the directors(1,2)

The interim results announcement, including the condensed consolidated interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the results announcement in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express to the company a conclusion on the condensed consolidated interim financial statements in the interim results announcement based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

28 July 2015

London, United Kingdom

 
 1   The maintenance and integrity of the Barclays website is the 
      responsibility of the directors; the work carried out by the 
      auditors does not involve consideration of these matters and, 
      accordingly, the auditors accept no responsibility for any changes 
      that may have occurred to the financial statements since they 
      were initially presented on the website. 
 2   Legislation in the United Kingdom governing the preparation and 
      dissemination of financial statements may differ from legislation 
      in other jurisdictions. 
 

Condensed Consolidated Financial Statements

 
Condensed consolidated income statement (unaudited) 
                                                           Half year  Half year 
                                                               ended      ended 
Continuing operations                                       30.06.15   30.06.14 
                                                 Notes(1)       GBPm       GBPm 
===============================================  ========  =========  ========= 
Net interest income                                            6,201      6,082 
Net fee and commission income                                  4,004      4,256 
Net trading income                                             2,660      2,575 
Net investment income                                            923        356 
Net premiums from insurance contracts                            351        336 
Other income                                                     (3)         19 
===============================================  ========  =========  ========= 
Total income                                                  14,136     13,624 
Net claims and benefits incurred on insurance 
 contracts                                                     (248)      (240) 
===============================================  ========  =========  ========= 
Total income net of insurance claims                          13,888     13,384 
Credit impairment charges and other provisions                 (973)    (1,086) 
===============================================  ========  =========  ========= 
Net operating income                                          12,915     12,298 
 
Staff costs                                         2        (4,864)    (5,730) 
Infrastructure costs                                3        (1,590)    (1,568) 
Administration and general expenses                 3        (3,211)    (2,479) 
Operating expenses                                           (9,665)    (9,777) 
 
Loss on disposal of undertakings and share 
 of results of associates and joint ventures                   (136)       (20) 
===============================================  ========  =========  ========= 
Profit before tax                                              3,114      2,501 
Tax                                                 4        (1,006)      (895) 
===============================================  ========  =========  ========= 
Profit after tax                                               2,108      1,606 
 
Attributable to: 
===============================================  ========  =========  ========= 
Ordinary equity holders of the parent:                         1,611      1,126 
Other equity holders(2)                                          159         90 
-----------------------------------------------  --------  ---------  --------- 
Total equity holders of the parent(2)                          1,770      1,216 
Non-controlling interests                           5            338        390 
===============================================  ========  =========  ========= 
Profit after tax                                               2,108      1,606 
 
Earnings per share from continuing operations 
===============================================  ========  =========  ========= 
Basic earnings per ordinary share(2)                6           9.9p       7.0p 
Diluted earnings per ordinary share(2)              6           9.7p       7.0p 
 
 
 1   For notes to the Financial Statements see pages 56 to 89. 
 2   The profit after tax attributable to other equity holders of 
      GBP159m (H114: GBP90m) is offset by a tax credit recorded in 
      reserves of GBP32m (H114: GBP19m). The net amount of GBP127m 
      (H114: GBP71m), along with non-controlling interests (NCI) is 
      deducted from profit after tax in order to calculate earnings 
      per share. 
 
 
Condensed consolidated statement of comprehensive income (unaudited) 
 
                                                           Half year  Half year 
                                                               ended      ended 
Continuing operations                                       30.06.15   30.06.14 
                                                 Notes(1)       GBPm       GBPm 
===============================================  ========  =========  ========= 
Profit after tax                                               2,108      1,606 
 
Other comprehensive (loss)/income that may 
 be recycled to profit or loss: 
===============================================  ========  =========  ========= 
Currency translation reserve                        15         (590)    (1,056) 
Available for sale reserve                          15         (294)        341 
Cash flow hedge reserve                             15         (646)        254 
Other                                                             41       (53) 
===============================================  ========  =========  ========= 
Other comprehensive loss that may be recycled 
 to profit or loss                                           (1,489)      (514) 
 
Other comprehensive (loss)/income not recycled 
 to profit or loss: 
Retirement benefit remeasurements                   12          (93)        236 
 
Other comprehensive loss for the period                      (1,582)      (278) 
 
Comprehensive income for the period                              526      1,328 
===============================================  ========  =========  ========= 
 
Attributable to: 
===============================================  ========  =========  ========= 
Equity holders of the parent                                     325      1,064 
Non-controlling interests                                        201        264 
===============================================  ========  =========  ========= 
Total comprehensive income for the period                        526      1,328 
===============================================  ========  =========  ========= 
 
 
 1    For notes, see pages 56 to 89. 
 
 
 Condensed consolidated balance sheet (unaudited) 
                                                           As at       As at 
 Assets                                                 30.06.15    31.12.14 
                                            Notes(1)        GBPm        GBPm 
=========================================  =========  ==========  ========== 
 Cash and balances at central banks                       33,341      39,695 
 Items in the course of collection 
  from other banks                                         1,227       1,210 
 Trading portfolio assets                                 98,048     114,717 
 Financial assets designated at fair 
  value                                                   33,335      38,300 
 Derivative financial instruments              8         341,312     439,909 
 Available for sale investments                           96,210      86,066 
 Loans and advances to banks                              44,548      42,111 
 Loans and advances to customers                         430,719     427,767 
 Reverse repurchase agreements and 
  other similar secured lending                           93,138     131,753 
 Prepayments, accrued income and other 
  assets                                                   3,778       3,607 
 Investments in associates and joint 
  ventures                                                   577         711 
 Property, plant and equipment                             3,620       3,786 
 Goodwill                                                  4,832       4,887 
 Intangible assets                                         3,357       3,293 
 Current and deferred tax assets               4           4,490       4,464 
 Retirement benefit assets                     12             33          56 
 Non-current assets classified as held 
  for sale                                                 4,154      15,574 
=========================================  =========  ==========  ========== 
 Total assets                                          1,196,719   1,357,906 
 
 Liabilities 
=========================================  =========  ==========  ========== 
 Deposits from banks                                      55,978      58,390 
 Items in the course of collection 
  due to other banks                                       1,539       1,177 
 Customer accounts                                       438,270     427,704 
 Repurchase agreements and other similar 
  secured borrowing                                       85,092     124,479 
 Trading portfolio liabilities                            41,818      45,124 
 Financial liabilities designated at 
  fair value                                              51,284      56,972 
 Derivative financial instruments              8         342,964     439,320 
 Debt securities in issue                                 75,525      86,099 
 Subordinated liabilities                      10         19,664      21,153 
 Accruals, deferred income and other 
  liabilities                                             11,838      11,423 
 Provisions                                    11          3,287       4,135 
 Current and deferred tax liabilities          4             885       1,283 
 Retirement benefit liabilities                12          1,091       1,574 
 Non-current liabilities classified 
  as held for sale                                         1,909      13,115 
=========================================  =========  ==========  ========== 
 Total liabilities                                     1,131,144   1,291,948 
 
 Equity 
=========================================  =========  ==========  ========== 
 Called up share capital and share 
  premium                                      13         21,523      20,809 
 Other reserves                                15          1,334       2,724 
 Retained earnings                                        32,099      31,712 
=========================================  =========  ==========  ========== 
 Shareholders' equity attributable 
  to ordinary shareholders of parent                      54,956      55,245 
 Other equity instruments                      14          4,325       4,322 
=========================================  =========  ==========  ========== 
 Total equity excluding non-controlling 
  interests                                               59,281      59,567 
 Non-controlling interests                     5           6,294       6,391 
=========================================  =========  ==========  ========== 
 Total equity                                             65,575      65,958 
=========================================  =========  ==========  ========== 
 Total liabilities and equity                          1,196,719   1,357,906 
 
 
 1    For notes, see pages 56 to 89. 
 
 
Condensed consolidated statement of changes in equity (unaudited) 
                                   Called 
                                 up share 
                                  capital            Other 
                                and share           equity         Other   Retained           Non-controlling    Total 
                               premium(1)   instruments(1)   reserves(1)   earnings    Total     interests(2)   equity 
Half year ended 30.06.15             GBPm             GBPm          GBPm       GBPm     GBPm             GBPm     GBPm 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 1 January 2015          20,809            4,322         2,724     31,712   59,567            6,391   65,958 
Profit after tax                        -              159             -      1,611    1,770              338    2,108 
Currency translation 
 movements                              -                -         (463)          -    (463)            (127)    (590) 
Available for sale 
 investments                            -                -         (295)          -    (295)                1    (294) 
Cash flow hedges                        -                -         (634)          -    (634)             (12)    (646) 
Retirement benefit 
 remeasurements                         -                -             -       (94)     (94)                1     (93) 
Other                                   -                -             -         41       41                -       41 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 for the year                           -              159       (1,392)      1,558      325              201      526 
Issue of new ordinary shares          118                -             -          -      118                -      118 
Issue of shares under 
 employee 
 share schemes                        596                -             -        303      899                -      899 
Other equity instruments 
 coupons paid                           -            (159)             -         32    (127)                -    (127) 
Treasury shares                         -                -             2      (706)    (704)                -    (704) 
Dividends paid                          -                -             -      (746)    (746)            (301)  (1,047) 
Other reserve movements                 -                3             -       (54)     (51)                3     (48) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 30 June 2015            21,523            4,325         1,334     32,099   59,281            6,294   65,575 
 
Half year ended 31.12.14 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 1 July 2014             20,655            4,326         (154)     33,241   58,068            6,957   65,025 
Profit/(loss) after tax                 -              160             -    (1,300)  (1,140)              379    (761) 
Currency translation 
 movements                              -                -         1,501          -    1,501               41    1,542 
Available for sale 
 investments                            -                -            69          -       69                3       72 
Cash flow hedges                        -                -         1,284          -    1,284                2    1,286 
Retirement benefit 
 remeasurements                         -                -             -       (32)     (32)                1     (31) 
Other                                   -                -             -         10       10                1       11 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 for the period                         -              160         2,854    (1,322)    1,692              427    2,119 
Issue of new ordinary shares           86                -             -          -       86                -       86 
Issue of shares under 
 employee 
 share schemes                         68                -             -        314      382                -      382 
Other equity instruments 
 coupons paid                           -            (160)             -         35    (125)                -    (125) 
Redemption of preference 
 shares                                 -                -             -      (104)    (104)            (687)    (791) 
Treasury shares                         -                -            24       (91)     (67)                -     (67) 
Dividends paid                          -                -             -      (329)    (329)            (297)    (626) 
Other reserve movements                 -              (4)             -       (32)     (36)              (9)     (45) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 31 December 
 2014                              20,809            4,322         2,724     31,712   59,567            6,391   65,958 
 
Half year ended 30.06.14 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 1 January 2014          19,887            2,063           249     33,186   55,385            8,564   63,949 
Profit after tax                        -               90             -      1,126    1,216              390    1,606 
Currency translation 
 movements                              -                -         (941)          -    (941)            (115)  (1,056) 
Available for sale 
 investments                            -                -           345          -      345              (4)      341 
Cash flow hedges                        -                -           260          -      260              (6)      254 
Retirement benefit 
 remeasurements                         -                -             -        237      237              (1)      236 
Other                                   -                -             -       (53)     (53)                -     (53) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 for the year                           -               90         (336)      1,310    1,064              264    1,328 
Issue of new ordinary shares           64                -             -          -       64                -       64 
Issue of shares under 
 employee 
 share schemes                        704                -             -        379    1,083                -    1,083 
Issue and exchange of equity 
 instruments                            -            2,263             -      (155)    2,108          (1,527)      581 
Other equity instruments 
 coupons paid                           -             (90)             -         19     (71)                -     (71) 
Treasury shares                         -                -          (67)      (775)    (842)                -    (842) 
Dividends paid                          -                -             -      (728)    (728)            (334)  (1,062) 
Other reserve movements                 -                -             -          5        5             (10)      (5) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance at 30 June 2014            20,655            4,326         (154)     33,241   58,068            6,957   65,025 
 
 
 
 
 1   Details of Share Capital, Other Equity Instruments and Other 
      Reserves are shown on page 71. 
 2   Details of Non-controlling Interests are shown on page 59. 
 
 
 Condensed consolidated cash flow statement (unaudited) 
                                                           Half year ended   Half year ended 
 Continuing operations                                            30.06.15          30.06.14 
                                                                      GBPm              GBPm 
========================================================  ================  ================ 
 Profit before tax                                                   3,114             2,501 
 Adjustment for non-cash items                                       2,998             1,760 
 Changes in operating assets and liabilities                         6,976           (3,082) 
 Corporate income tax paid                                           (929)             (586) 
========================================================  ================  ================ 
 Net cash from operating activities                                 12,159               593 
 Net cash from investing activities                               (13,569)             7,463 
 Net cash from financing activities                                (1,582)           (2,202) 
 Effect of exchange rates on cash and cash equivalents               (255)           (1,380) 
========================================================  ================  ================ 
 Net (decrease)/increase in cash and cash equivalents              (3,247)             4,474 
 Cash and cash equivalents at beginning of the period               78,479            81,754 
========================================================  ================  ================ 
 Cash and cash equivalents at end of the period                     75,232            86,228 
 

Financial Statement Notes

   1.            Basis of preparation 

These condensed consolidated interim financial statements for the six months ended 30 June 2015 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 Interim Financial Reporting, as adopted by the European Union. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with IFRSs as adopted by the European Union.

The accounting policies and methods of computation used in these condensed consolidated interim financial statements are the same as those used in the 2014 Annual Report.

Future accounting developments

During July 2015 the IASB confirmed the deferral of the effective date of IFRS 15 Revenue from Contracts with Customers by one year to 1 January 2018.

For further information on future accounting changes, refer to the Barclays 2014 Annual Report.

Going concern

The Directors confirm they are satisfied that the Group has adequate resources to continue in business for the foreseeable future. They confirm that it is appropriate to adopt the going concern basis for preparing accounts and there are no material uncertainties.

   2.            Staff costs 
 
                                                      Half year  Half year 
                                                          ended      ended 
                                                       30.06.15   30.06.14 
Compensation costs                                         GBPm       GBPm 
====================================================  =========  ========= 
Deferred bonus charge                                       472        573 
Current year bonus charges                                  456        430 
Sales commissions, commitments and other incentives          66        111 
====================================================  =========  ========= 
Performance costs                                           994      1,114 
Salaries                                                  2,503      2,510 
Social security costs                                       307        363 
Post retirement benefits                                  (163)        327 
Other compensation costs                                    217        296 
====================================================  =========  ========= 
Total compensation costs                                  3,858      4,610 
 
Other resourcing costs 
====================================================  =========  ========= 
Outsourcing                                                 543        532 
Redundancy and restructuring                                 71        253 
Temporary staff costs                                       316        263 
Other                                                        76         72 
====================================================  =========  ========= 
Total other resourcing costs                              1,006      1,120 
 
Total staff costs                                         4,864      5,730 
 

Total staff costs decreased 15% to GBP4,864m:

-- Group performance costs reduced 11% to GBP994m primarily reflecting lower deferred bonus charges

-- A gain in post retirement benefits of GBP163m (H114: GBP327m expense) due to a GBP429m (H114:GBPnil) credit recognised in Q115 as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions

-- Other resourcing costs decreased 10% to GBP1,006m primarily due to a reduction in redundancy and restructuring costs of 72% to GBP71m due to one-off restructurings in H114

As a result Group compensation: adjusted net operating income ratio reduced to 32% (2014: 38%).

No awards have yet been granted in relation to the 2015 bonus pool as decisions regarding incentive awards are not taken by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge for the first six months represents an accrual for estimated costs in accordance with accounting requirements.

   3.            Administration and general expenses 
 
                                                             Half year               Half year 
                                                                 ended                   ended 
                                                              30.06.15                30.06.14 
                                                                  GBPm                    GBPm 
-----------------------------------------------------------  ---------  ---------------------- 
Infrastructure costs 
Property and equipment                                             714                     727 
Depreciation of property, plant and equipment                      279                     292 
Operating lease rentals                                            228                     288 
Amortisation of intangible assets                                  315                     251 
Impairment of property, equipment and intangible 
 assets                                                             54                      10 
-----------------------------------------------------------  ---------  ---------------------- 
Total infrastructure costs                                       1,590                   1,568 
 
Other costs 
Consultancy, legal and professional fees                           493                     729 
Subscriptions, publications, stationery and communications         409                     378 
Marketing, advertising and sponsorship                             267                     260 
Travel and accommodation                                           113                      97 
Provisions for ongoing investigations and litigation               800                       - 
 primarily relating to Foreign Exchange 
Provisions for UK customer redress                               1,032                     900 
Other administration and general expenses                           97                     115 
-----------------------------------------------------------  ---------  ---------------------- 
Total other costs                                                3,211                   2,479 
 
Total administration and general expenses                        4,801                   4,047 
 

Administration and general expenses have increased 19% to GBP4,801m primarily driven by an increase in provisions for ongoing investigations and litigation primarily relating to Foreign Exchange. This was partially offset by savings from strategic cost programmes across infrastructure costs.

   4.            Tax 
 
                                            Assets           Liabilities 
                                      ==================  ================== 
Current and deferred tax assets and 
 liabilities                          30.06.15  31.12.14  30.06.15  31.12.14 
                                          GBPm      GBPm      GBPm      GBPm 
====================================  ========  ========  ========  ======== 
Current tax                                459       334     (689)   (1,021) 
Deferred tax                             4,031     4,130     (196)     (262) 
====================================  ========  ========  ========  ======== 
Total                                    4,490     4,464     (885)   (1,283) 
 

The deferred tax asset of GBP4,031m (2014: GBP4,130m) mainly relates to amounts in the US and UK.

The tax charge for H115 was GBP1,006m (2014: GBP895m), representing an effective tax rate of 32.3% (2014: 35.8%). The effective tax rate is higher than the UK statutory tax rate of 20.25% (2014: 21.5%) mainly due to profits outside of the UK taxed at higher local statutory tax rates, non-creditable taxes, non-deductible expenses and changes in non-UK tax rates, partially offset by the effect of non-taxable gains and income, changes in measurement of deferred tax assets and other items.

The UK Summer Budget introduced a number of changes impacting banks. These changes have not yet been substantively enacted and are therefore not reflected in H115 results.

   5.                  Non-controlling interests 
 
                              Profit attributable to non-controlling          Equity attributable to non-controlling 
                                                           interests                                       interests 
                        ============================================  ============================================== 
                              Half year ended        Half year ended 
                                     30.06.15               30.06.14          As at 30.06.15          As at 31.12.14 
                                         GBPm                   GBPm                    GBPm                    GBPm 
======================  =====================  =====================  ======================  ====================== 
Barclays Bank PLC 
Issued: 
- Preference shares                       172                    237                   3,654                   3,654 
- Upper Tier 2 
 instruments                                1                      1                     487                     486 
Barclays Africa Group 
 Limited                                  165                    149                   2,149                   2,247 
Other non-controlling 
 interests                                  -                      3                       4                       4 
======================  =====================  =====================  ======================  ====================== 
Total                                     338                    390                   6,294                   6,391 
 

Equity attributable to non-controlling interest decreased 2% to GBP6,294m mainly driven by the depreciation of ZAR against GBP.

   6.           Earnings per share 
 
                                                        Half Year  Half Year 
                                                            Ended      Ended 
                                                         30.06.15   30.06.14 
                                                             GBPm       GBPm 
======================================================  =========  --------- 
Profit attributable to ordinary equity holders of 
 the parent from continuing operations                      1,611      1,126 
Tax credit on profit after tax attributable to other 
 equity holders                                                32         19 
Profit attributable to equity holders of the parent 
 from continuing operations including dilutive impact 
 on convertible options                                     1,643      1,145 
======================================================  =========  --------- 
Basic weighted average number of shares in issue           16,678     16,296 
Number of potential ordinary shares                           345        127 
======================================================  =========  --------- 
Diluted weighted average number of shares                  17,023     16,423 
 
Basic earnings per ordinary share(1)                         9.9p       7.0p 
Diluted earnings per ordinary share(1)                       9.7p       7.0p 
 
   7.            Dividends on ordinary shares 

It is Barclays policy to declare and pay dividends on a quarterly basis. The first interim dividend for 2015 of 1p per share was paid on 15 June 2015. The Board has decided to pay on 14 September 2015, a second interim dividend for 2015 of 1p per ordinary share to shareholders on the share register on 7 August 2015, making a total for H115 of 2p (H114: 2p).

 
                                           Half year ended     Half year ended 
                                                  30.06.15            30.06.14 
                                        ==================  ================== 
 Dividends paid during the period        Per share   Total   Per share   Total 
                                             Pence    GBPm       Pence    GBPm 
======================================  ==========  ======  ==========  ====== 
 Final dividend paid during period            3.5p     578        3.5p     564 
 Interim dividends paid during period         1.0p     168        1.0p     164 
======================================  ==========  ======  ==========  ====== 
 

For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the second interim dividend on 14 September 2015 to ADR holders on the record at close of business on 7 August 2015.

 
 1   The profit after tax attributable to other equity holders of 
      GBP159m (H114: GBP90m) is offset by a tax credit recorded in 
      reserves of GBP32m (H114: GBP19m). The net amount of GBP127m 
      (H114: GBP71m), along with non-controlling interests (NCI) is 
      deducted from profit after tax in order to calculate earnings 
      per share. 
 
   8.           Derivative financial instruments 
 
                                                     Contract 
                                                     notional 
                                                       amount       Fair value 
                                                               ==================== 
As at 30.06.15                                                  Assets  Liabilities 
                                                         GBPm     GBPm         GBPm 
=================================================  ==========  =======  =========== 
Foreign exchange derivatives                        3,613,760   56,725     (61,705) 
Interest rate derivatives                          23,653,217  241,937    (234,009) 
Credit derivatives                                  1,076,180   18,343     (16,677) 
Equity and stock index and commodity derivatives      933,049   23,316     (30,006) 
=================================================  ==========  =======  =========== 
Derivative assets/(liabilities) held for 
 trading                                           29,276,206  340,321    (342,397) 
 
Derivatives in Hedge Accounting Relationships 
=================================================  ==========  =======  =========== 
Derivatives designated as cash flow hedges            135,758      180         (69) 
Derivatives designated as fair value hedges           154,444      747        (484) 
Derivatives designated as hedges of net 
 investments                                            4,033       64         (14) 
=================================================  ==========  =======  =========== 
Derivative assets/(liabilities) designated 
 in hedge accounting relationships                    294,235      991        (567) 
 
Total recognised derivative assets/(liabilities)   29,570,441  341,312    (342,964) 
 
As at 31.12.14 
=================================================  ==========  =======  =========== 
Foreign exchange derivatives                        3,758,858   74,433     (79,281) 
Interest rate derivatives                          26,570,719  308,343    (299,881) 
Credit derivatives                                  1,183,963   23,507     (22,367) 
Equity and stock index and commodity derivatives    1,110,802   31,987     (37,094) 
=================================================  ==========  =======  =========== 
Derivative assets/(liabilities) held for 
 trading                                           32,624,342  438,270    (438,623) 
 
Derivatives in hedge accounting relationships 
=================================================  ==========  =======  =========== 
Derivatives designated as cash flow hedges            102,698      240         (60) 
Derivatives designated as fair value hedges           162,898    1,379        (590) 
Derivatives designated as hedges of net 
 investments                                            2,852       20         (47) 
=================================================  ==========  =======  =========== 
Derivative assets/(liabilities) designated 
 in hedge accounting relationships                    268,448    1,639        (697) 
 
Total recognised derivative assets/(liabilities)   32,892,790  439,909    (439,320) 
 

Derivative assets decreased by GBP99bn to GBP341bn primarily reflecting an increase in the major interest rate forward curves and continued legacy portfolio run down.

Derivative asset exposures would be GBP308bn (2014: GBP398bn) lower than reported under IFRS if the netting of financial instruments and financial collateral were permitted for all amounts that are covered by enforceable netting arrangements, irrespective of whether the stricter requirements of IAS 32 were met. Similarly, derivative liabilities would be GBP310bn (2014: GBP397bn) lower. Netting posted on the balance sheet under IFRS for derivative assets and liabilities was GBP98bn (2014: GBP182bn) and GBP101bn (2014: GBP184bn) respectively.

   9.           Fair value of financial instruments 

This section should be read in conjunction with Note 18 Fair value of financial instruments of the 2014 Annual Report, which provides more detail about accounting policies adopted, the definitions of the three levels of the fair value hierarchy, valuation methodologies used in calculating fair value and, the valuation control framework which governs oversight of valuations. There have been no changes in the accounting policies adopted or the valuation methodologies used.

Valuation

The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification:

 
                                           Valuation technique using 
                                      =================================== 
                                        Quoted                Significant 
                                        market  Observable   unobservable 
                                        prices      inputs         inputs 
                                        (Level      (Level         (Level 
                                            1)          2)             3)      Total 
As at 30.06.15                            GBPm        GBPm           GBPm       GBPm 
====================================  ========  ==========  =============  ========= 
Trading portfolio assets                39,784      52,580          5,684     98,048 
Financial assets designated at fair 
 value                                   7,101       8,226         18,008     33,335 
Derivative financial assets              7,162     330,543          3,607    341,312 
Available for sale assets               46,821      47,585          1,804     96,210 
Other(1)                                     -           -          4,310      4,310 
====================================  ========  ==========  =============  ========= 
Total assets                           100,868     438,934         33,413    573,215 
 
Trading portfolio liabilities         (24,306)    (17,497)           (15)   (41,818) 
Financial liabilities designated 
 at fair value                             (9)    (49,329)        (1,946)   (51,284) 
Derivative financial liabilities       (7,205)   (332,479)        (3,280)  (342,964) 
Other(1)                                     -           -        (1,909)    (1,909) 
====================================  ========  ==========  =============  ========= 
Total liabilities                     (31,520)   (399,305)        (7,150)  (437,975) 
 
As at 31.12.14                            GBPm        GBPm           GBPm       GBPm 
====================================  ========  ==========  =============  ========= 
Trading portfolio assets                48,962      59,428          6,327    114,717 
Financial assets designated at fair 
 value                                   9,934       8,461         19,905     38,300 
Derivative financial assets              9,863     425,301          4,745    439,909 
Available for sale assets               44,234      40,519          1,313     86,066 
Other(1)                                    33         198         15,550     15,781 
====================================  ========  ==========  =============  ========= 
Total assets                           113,026     533,907         47,840    694,773 
 
Trading portfolio liabilities         (26,840)    (17,935)          (349)   (45,124) 
Financial liabilities designated 
 at fair value                            (15)    (55,141)        (1,816)   (56,972) 
Derivative financial liabilities      (10,313)   (424,687)        (4,320)  (439,320) 
Other(1)                                     -           -       (13,115)   (13,115) 
====================================  ========  ==========  =============  ========= 
Total liabilities                     (37,168)   (497,763)       (19,600)  (554,531) 
 
 
 1   Other includes assets and liabilities held for sale of GBP4,154m 
      (2014: GBP15,574m) and GBP1,909m (2014: GBP13,115m) respectively, 
      which are measured at fair value on a non-recurring basis. This 
      decreased due to the sale of the Spanish business in Q115. It 
      also includes investment property of GBP156m (2014: GBP207m). 
 

The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and product type:

 
                                                Assets                            Liabilities 
                                         Valuation technique                  Valuation technique 
                                                 using                               using 
--------------------------------  ----------------------------------  ----------------------------------- 
                                   Quoted                Significant    Quoted                Significant 
                                   market  Observable   unobservable    market  Observable   unobservable 
                                   prices      inputs         inputs    prices      inputs         inputs 
                                   (Level      (Level         (Level    (Level      (Level         (Level 
                                       1)          2)             3)        1)          2)             3) 
                                     GBPm        GBPm           GBPm      GBPm        GBPm           GBPm 
--------------------------------  -------  ----------  -------------  --------  ----------  ------------- 
As at 30.06.15 
Interest rate derivatives               -     241,954            901         -   (233,622)          (938) 
Foreign exchange derivatives           52      56,635            110      (45)    (61,570)          (106) 
Credit derivatives(1)                   -      16,600          1,743         -    (16,416)          (260) 
Equity derivatives                  4,855       7,931            794   (4,851)    (13,054)        (1,670) 
Commodity derivatives               2,255       7,422             59   (2,309)     (7,816)          (306) 
Government and government 
 sponsored debt                    61,373      60,197            867   (9,957)    (13,361)           (12) 
Corporate debt                        215      12,689          3,071      (22)     (3,189)           (29) 
Certificates of deposit, 
 commercial paper and 
 other money market instruments        88       1,101              -       (5)     (5,182)          (857) 
Reverse repurchase and 
 repurchase agreements                  -       4,571              -         -     (4,785)              - 
Non-asset backed loans                  -       1,964         16,396         -           -              - 
Asset backed securities                 -      16,246          1,202         -       (354)              - 
Commercial real estate 
 loans                                  -           -            613         -           -              - 
Issued debt                             -           -              -         -    (36,715)          (726) 
Equity cash products               32,025       8,044            207  (14,326)     (1,277)              - 
Funds and fund linked 
 products                               -       1,752            562         -     (1,904)          (161) 
Physical commodities                    -         861              -         -        (28)              - 
Other(2)                                5         967          6,888       (5)        (32)        (2,085) 
--------------------------------  -------  ----------  -------------  --------  ----------  ------------- 
Total                             100,868     438,934         33,413  (31,520)   (399,305)        (7,150) 
 
As at 31.12.14 
Interest rate derivatives               -     308,706          1,239       (5)   (299,181)        (1,344) 
Foreign exchange derivatives            4      74,358            108       (3)    (79,188)          (138) 
Credit derivatives(1)                   -      21,541          1,966         -    (21,958)          (409) 
Equity derivatives                  3,847       9,750          1,247   (3,719)    (13,780)        (2,092) 
Commodity derivatives               6,012      10,946            185   (6,586)    (10,580)          (337) 
Government and government 
 sponsored debt                    62,577      48,296          1,014  (11,563)    (14,002)          (346) 
Corporate debt                        151      22,036          3,061         -     (3,572)           (13) 
Certificates of deposit, 
 commercial paper and 
 other money market instruments        78         921              -       (4)     (6,276)          (665) 
Reverse repurchase and 
 repurchase agreements                  -       5,236              -         -     (5,423)              - 
Non-asset backed loans                  1       2,462         17,744         -           -              - 
Asset backed securities                30      16,211          1,631         -        (67)              - 
Commercial real estate 
 loans                                  -           -          1,180         -           -              - 
Issued debt                             -           -              -      (10)    (40,592)          (749) 
Equity cash products               40,252       7,823            171  (15,276)       (699)              - 
Funds and fund linked 
 products                               -       2,644            631         -     (2,060)          (210) 
Physical commodities                    4       1,447              -         -       (363)              - 
Other(2)                               70       1,530         17,663       (2)        (22)       (13,297) 
--------------------------------  -------  ----------  -------------  --------  ----------  ------------- 
Total                             113,026     533,907         47,840  (37,168)   (497,763)       (19,600) 
 

Assets and liabilities reclassified between Level 1 and Level 2

There were no transfers between Level 1 and 2 during the period (2014: nil).

 
 1   Credit derivatives also includes derivative exposure to monoline 
      insurers. 
 2   Other includes non-current assets and liabilities held for sale, 
      private equity investments, asset backed loans, US Lehman acquisition 
      assets and investment property. 
 

Level 3 movement analysis

The following table summarises the movements in the Level 3 balance during the year. The table shows gains and losses and includes amounts for all financial assets and liabilities transferred to and from Level 3 during the year. Transfers have been reflected as if they had taken place at the beginning of the year.

 
                                                                       Total gains 
                                                                        and losses 
                                                                      in the period 
                                                                        recognised 
                                                                      in the income 
                                                                        statement                   Transfers 
                                                                    =================              ============ 
                                                                                         Total 
                                                                                         gains 
                                                                                       or losses 
                    As at                                           Trading     Other  recognised                   As at 
                 01.01.15  Purchases    Sales  Issues  Settlements   income    income    in OCI       In    Out  30.06.15 
                                                                    -------  --------              -----  ----- 
                     GBPm       GBPm     GBPm    GBPm         GBPm     GBPm      GBPm        GBPm   GBPm   GBPm      GBPm 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Government 
 and government 
 sponsored 
 debt                 685         27     (28)       -          (2)     (12)         -           -     15  (142)       543 
Corporate 
 debt               3,026        112     (66)       -            -       53         -           -      2   (91)     3,036 
Asset backed 
 securities         1,610      1,305  (1,274)       -        (549)       60         -           -     56   (24)     1,184 
Non-asset 
 backed loans         273        171    (217)       -          (3)     (12)         -           -      -      -       212 
Funds and 
 fund linked 
 products             589          -      (7)       -         (32)     (50)         -           -     20      -       520 
Other                 144         71     (15)       -          (9)      (2)         -           -      -      -       189 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Trading 
 portfolio 
 assets             6,327      1,686  (1,607)       -        (595)       37         -           -     93  (257)     5,684 
 
Commercial 
 real estate 
 loans              1,179      1,538  (1,916)       -        (185)      (6)         -           -      -      -       610 
Non-asset 
 backed loans      17,471          -        -       -        (364)    (925)         -           -      -      -    16,182 
Asset backed 
 loans                393        470    (444)       -            -        6         -           -      -    (1)       424 
Private equity 
 investments          701         72    (110)       -          (2)        2      (22)           -      -      -       641 
Other                 161          2      (4)       -            -     (10)         2           -      -      -       151 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Financial 
 assets 
 designated 
 at fair value     19,905      2,082  (2,474)       -        (551)    (933)      (20)           -      -    (1)    18,008 
 
Asset backed 
 securities             1          -        -       -            -        -         -           -      -    (1)         - 
Government 
 and government 
 sponsored 
 debt                 327        195    (203)       -            -        -         -           3      -      -       322 
Other                 985         11     (32)       -            -        -       499          17     19   (17)     1,482 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Available 
 for sale 
 investments        1,313        206    (235)       -            -        -       499          20     19   (18)     1,804 
 
Other(1)              207          -     (65)       -            -        -        14           -      -      -       156 
 
Trading 
 portfolio 
 liabilities        (349)          -        -       -            -        -         -           -   (14)    348      (15) 
 
Certificates 
 of deposit, 
 commercial 
 paper and 
 other 
 money market 
 instruments        (666)          -        -    (35)            -        -       (9)           -  (397)    249     (858) 
Issued debt         (748)          -        -     (1)          130       22         -           -  (163)     15     (745) 
Other               (402)          -        -       -            -      (7)        56           -      -     10     (343) 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Financial 
 liabilities 
 designated 
 at fair value    (1,816)          -        -    (36)          130       15        47           -  (560)    274   (1,946) 
 
Interest rate 
 derivatives        (105)          -      (4)       -         (46)       18         -           -   (40)    138      (39) 
Credit 
 derivatives        1,557        276     (12)       -          (6)    (321)         -           -   (11)      -     1,483 
Equity 
 derivatives        (845)        138        -   (352)           96      101         -           -   (30)     18     (874) 
Commodity 
 derivatives        (152)          -        -       -            8       16         -           -  (241)    123     (246) 
Foreign 
 exchange 
 derivatives         (30)          -      (1)     (3)           25        9         -           -   (21)     24         3 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
Net derivative 
 financial 
 instruments(2)       425        414     (17)   (355)           77    (177)         -           -  (343)    303       327 
 
Total              26,012      4,388  (4,398)   (391)        (939)  (1,058)       540          20  (805)    649    24,018 
---------------  --------  ---------  -------  ------  -----------  -------  --------  ----------  -----  -----  -------- 
 
 
 1   Other consists of investment property. Non-current assets held 
      for sale of GBP4,154m (2014: GBP15,574m) and liabilities in a 
      disposal group classified as held for sale of GBP1,909m (2014: 
      GBP13,115m) are not included as these are measured at fair value 
      on a non-recurring basis. 
 2   The derivative financial instruments are represented on a net 
      basis. On a gross basis derivative financial assets as at 30 
      June 2015 totalled GBP3,607m (2014: GBP4,745m) and derivative 
      financial liabilities totalled GBP3,280m (2014: GBP4,320m). 
 
 
                                                                      Total gains 
                                                                       and losses 
                                                                      in the period 
                                                                       recognised 
                                                                      in the income 
                                                                        statement                  Transfers 
                                                                    ================              ============ 
                                                                                           Total 
                                                                                           gains 
                                                                                       or losses 
                    As at                                           Trading    Other  recognised                   As at 
                 01.01.14  Purchases    Sales  Issues  Settlements   income   income      in OCI     In    Out  31.12.14 
                     GBPm       GBPm     GBPm    GBPm         GBPm     GBPm     GBPm        GBPm   GBPm   GBPm      GBPm 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Government 
 and government 
 sponsored 
 debt                 161         96    (198)       -         (46)        5        -           -    676    (9)       685 
Corporate 
 debt               3,039        177    (332)       -        (370)      484        -           -     39   (11)     3,026 
Asset backed 
 securities         2,111      1,037  (1,552)       -        (141)      178        -           -      8   (31)     1,610 
Non-asset 
 backed loans         176        250     (30)       -         (49)        2        -           -     13   (89)       273 
Funds and 
 fund linked 
 products             494          -     (92)       -            -     (17)        -           -    204      -       589 
Other                 440          8    (369)       -           54       22        -           -      -   (11)       144 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Trading 
 portfolio 
 assets             6,421      1,568  (2,573)       -        (552)      674        -           -    940  (151)     6,327 
 
Commercial 
 real estate 
 loans              1,198      2,919  (2,678)       -        (334)       76      (2)           -      -      -     1,179 
Non-asset 
 backed loans      15,956          2    (177)       -         (81)    1,830        9           -      -   (68)    17,471 
Asset backed 
 loans                375        855    (777)       -          (4)       19        -           -      1   (76)       393 
Private equity 
 investments        1,168        173    (500)       -         (11)        4       82           -      -  (215)       701 
Other                  73         75      (1)       -         (35)        9       32           -      2      6       161 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Financial 
 assets 
 designated 
 at fair value     18,770      4,024  (4,133)       -        (465)    1,938      121           -      3  (353)    19,905 
 
Asset backed 
 securities             1          -        -       -            -        -        -           -      -      -         1 
Government 
 and government 
 sponsored 
 debt                  59        281     (12)       -          (1)        -        -           -      -      -       327 
Other               2,085         37     (78)       -      (1,694)        1      586          74      4   (30)       985 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Available 
 for sale 
 investments        2,145        318     (90)       -      (1,695)        1      586          74      4   (30)     1,313 
 
Other(1)              451         47    (238)       -            -        -        5           -      -   (58)       207 
 
Trading 
 portfolio 
 liabilities            -          -        -       -            -      (3)        -           -  (346)      -     (349) 
 
Certificates 
 of deposit, 
 commercial 
 paper and 
 other money 
 market 
 instruments        (409)          -        -   (254)           12        2       88           -  (108)      3     (666) 
Issued debt       (1,164)          -        -    (16)          293       88        -           -   (48)     99     (748) 
Other                (67)          -        -   (341)           10        6       30           -   (40)      -     (402) 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Financial 
 liabilities 
 designated 
 at fair value    (1,640)          -        -   (611)          315       96      118           -  (196)    102   (1,816) 
 
Interest rate 
 derivatives         (15)          5       45     (5)            7    (358)        -           -    103    113     (105) 
Credit 
 derivatives        1,420         11        -       -           42      121        -           -   (81)     44     1,557 
Equity 
 derivatives        (601)         86     (12)   (305)          113    (278)        -           -   (14)    166     (845) 
Commodity 
 derivatives        (141)          -        -     (3)         (10)        4        -           -   (11)      9     (152) 
Foreign 
 exchange 
 derivatives           31          -     (12)     (4)         (71)      (6)        -           -     29      3      (30) 
---------------  --------  ---------  -------  ------  -----------  -------  -------  ----------  -----  -----  -------- 
Net derivative 
 financial 
 instruments(2)       694        102       21   (317)           81    (517)        -           -     26    335       425 
 
Total              26,841      6,059  (7,013)   (928)      (2,316)    2,189      830          74    431  (155)    26,012 
 
 
 1   Other consists of investment property. Non-current 
      assets held for sale of GBP4,154m (2014: GBP15,574m) 
      and liabilities in a disposal group classified 
      as held for sale of GBP1,909m (2014: GBP13,115m) 
      are not included as these are measured at fair 
      value on a non-recurring basis. 
 2   The derivative financial instruments are represented 
      on a net basis. On a gross basis derivative financial 
      assets as at 30 June 2015 totalled GBP3,607m (2014: 
      GBP4,745m) and derivative financial liabilities 
      totalled GBP3,280m (2014: GBP4,320m). 
 

Asset and liability moves between Level 2 and Level 3 are primarily due to i) an increase or decrease in observable market activity related to an input or ii) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant.

Net transfers into Level 3 totalled GBP(805)m (2014: GBP431m). This was primarily due to GBP(397)m of certificates of deposit, commercial paper and other money market instruments and GBP(163)m of issued debt which are designated at fair value driven by less observable inputs for securities with maturities beyond 5 years. A further GBP(241)m of commodity derivatives were transferred into Level 3 due to a decrease in observable pricing for crude oil.

Net transfers out of Level 3 totalled GBP649m (2014: GBP155m). This was primarily due to GBP348m of government and government sponsored debt held as trading portfolio liabilities and GBP249m of certificates of deposit, commercial paper and other money market instruments which are designated at fair value as a result of more observable valuation inputs.

Unrealised gains and losses on Level 3 financial assets and liabilities

The following table discloses the unrealised gains and losses recognised in the year arising on Level 3 financial assets and liabilities held at the period end.

 
Unrealised gains and losses recognised during the period on Level 
 3 financial assets and liabilities held at period end(1) 
=============================================================================================================== 
                                                 As at 30.06.15                       As at 31.12.14 
                                       -----------------------------------  ----------------------------------- 
                                        Income statement                     Income statement 
                                       ==================                   ================== 
                                                            Other                                Other 
                                                            compre-                              compre- 
                                       Trading   Other      hensive         Trading   Other      hensive 
                                        income    income    income   Total   income    income    income   Total 
                                           GBPm      GBPm      GBPm   GBPm      GBPm      GBPm      GBPm   GBPm 
=====================================  ========  ========  ========  =====  ========  ========  ========  ===== 
Trading portfolio assets                   (55)         -         -   (55)       466         -         -    466 
Financial assets designated 
 at fair value                            (763)      (70)         -  (833)     1,849       (9)         -  1,840 
Available for sale assets                     -       470        42    512         -       572        80    652 
Trading portfolio liabilities                 -         -         -      -       (3)         -         -    (3) 
Financial liabilities designated 
 at fair value                               16        50         -     66        98       118         -    216 
Net derivative financial instruments      (267)         -         -  (267)     (238)         -         -  (238) 
Other                                         -       (8)         -    (8)         -         5         -      5 
Total                                   (1,069)       442        42  (585)     2,172       686        80  2,938 
 

Valuation techniques and sensitivity analysis

A sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of reasonably possible alternative valuations. The sensitivity methodologies applied take account of the nature of valuation techniques used, as well as the availability and reliability of observable proxy and historical data and the impact of using alternative models.

Current year valuation and sensitivity methodologies are consistent with those described within Note 18 Fair value of financial instruments in the 2014 Annual Report.

 
 1   Amounts as at 30.06.15 represent six months unrealised gains 
      and losses, whereas as at 31.12.14 represent 12 months. 
 
 
Sensitivity analysis of valuations 
 using unobservable inputs 
=================================================  ============  ======  =============  ======= 
                                 Fair value         Favourable changes    Unfavourable changes 
--------------------------  =====================  ====================  ====================== 
                              Total         Total        Income                 Income 
Product type                 assets   liabilities     statement  Equity      statement   Equity 
                               GBPm          GBPm          GBPm    GBPm           GBPm     GBPm 
==========================  =======  ============  ============  ======  =============  ======= 
As at 30.06.15 
Interest rate derivatives       901         (938)            91       -          (101)        - 
Foreign exchange 
 derivatives                    110         (106)            18       -           (18)        - 
Credit derivatives(1)         1,743         (260)            32       -           (76)        - 
Equity derivatives              794       (1,670)           151       1          (151)      (1) 
Commodity derivatives            59         (306)            24       -           (24)        - 
Government and government 
 sponsored debt                 867          (12)             -       1            (7)        - 
Corporate debt                3,071          (29)            12       -           (10)        - 
Certificates of deposit, 
 commercial paper 
 and other money market 
 instruments                      -         (857)             3       -              3        - 
Non-asset backed 
 loans                       16,396             -         1,124       -          (748)        - 
Asset backed securities       1,202             -            24       -           (16)        - 
Commercial real estate 
 loans                          613             -            15       -            (9)        - 
Issued debt                       -         (726)             -       -              -        - 
Equity cash products            207             -             -       9              -      (9) 
Funds and fund linked 
 products                       562         (161)             2       -            (2)        - 
Physical commodities              -             -             -       -              -        - 
Other(2)                      6,888       (2,085)           151      68          (165)     (57) 
--------------------------  =======  ============  ============  ======  =============  ======= 
Total                        33,413       (7,150)         1,647      79        (1,324)     (67) 
 
As at 31.12.14 
Interest rate derivatives     1,239       (1,344)            70       -           (71)        - 
Foreign exchange 
 derivatives                    108         (138)            36       -           (36)        - 
Credit derivatives(1)         1,966         (409)            81       -          (229)        - 
Equity derivatives            1,247       (2,092)           220       -          (220)        - 
Commodity derivatives           185         (337)            46       -           (46)        - 
Government and government 
 sponsored debt               1,014         (346)             -       -            (2)        - 
Corporate debt                3,061          (13)            26     (1)            (9)      (4) 
Certificates of deposit, 
 commercial paper 
 and other money market 
 instruments                      -         (665)             3       -              3        - 
Non-asset backed 
 loans                       17,744             -         1,164       -          (820)        - 
Asset backed securities       1,631             -            46       1           (72)      (1) 
Commercial real estate 
 loans                        1,180             -            20       -           (19)        - 
Issued debt                       -         (749)             -       -              -        - 
Equity cash products            171             -             -      11              -     (11) 
Funds and fund linked 
 products                       631         (210)            14       -           (14)        - 
Other(2)                     17,663      (13,297)           180      82          (156)     (55) 
==========================  =======  ============  ============  ======  =============  ======= 
Total                        47,840      (19,600)         1,906      93        (1,691)     (71) 
 

The effect of stressing unobservable inputs to a range of reasonably possible alternatives alongside considering the impact of using alternative models would be to increase fair values by up to GBP1,647m (2014: GBP1,906m) or to decrease fair values by up to GBP1,324m (2014: GBP1,691m) with substantially all the potential effect impacting profit and loss rather than equity.

 
 1   Credit derivatives includes derivative exposure to monoline insurers. 
 2   Other includes non-current assets and liabilities held for sale, 
      which are measured at fair value on a non-recurring basis, private 
      equity investments, asset backed loans, US Lehman acquisition 
      assets and investment property. 
 

Significant unobservable inputs

The valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified as Level 3 are consistent with Note 18 Fair value of financial instruments in the 2014 Annual Report. The description of the significant unobservable inputs and the sensitivity of fair value measurement of the instruments categorised as Level 3 assets or liabilities to increases in significant unobservable inputs is also found in Note 18 Fair value of financial instruments of the 2014 Annual Report. Non-current assets held for sale of GBP4,154m (2014: GBP15,574m) and liabilities in a disposal group classified as held for sale of GBP1,909m (2014: GBP13,115m) are not included as these are measured at fair value on a non-recurring basis.

Fair value adjustments

Key balance sheet valuation adjustments that may be of interest from a financial statement user perspective are quantified below:

 
                                                   30.06.15   31.12.14 
                                                       GBPm       GBPm 
------------------------------------------------  ---------  --------- 
 Bid-offer valuation adjustments                      (389)      (396) 
 Other exit adjustments                               (148)      (169) 
 Funding Fair Value Adjustments (FFVA)                 (80)      (100) 
 Derivative credit valuation adjustments (CVA): 
  - Monolines                                           (9)       (24) 
  - Other derivative CVA                              (343)      (394) 
 Derivative debit valuation adjustments (DVA)           239        177 
------------------------------------------------  ---------  --------- 
 

- FFVA decreased by GBP20m to GBP80m as a result of an interest rate sell-off

- CVA decreased by GBP66m to GBP352m as a result of reduced exposures from interest rate moves on both Monolines and other derivative counterparties

- DVA increased by GBP62m to GBP239m as a result of a widening in Barclays' credit spread

Portfolio exemption

The Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of certain groups of financial assets and financial liabilities. Assets and liabilities are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date under current market conditions.

Unrecognised gains as a result of the use of valuation models using unobservable inputs

The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, is GBP105m (2014: GBP96m). There are additions of GBP21m (2014: nil) and GBP12m (2014: GBP41m) of amortisation and releases.

The reserve held for unrecognised gains is predominantly related to derivative financial instruments.

Third party credit enhancements

Structured and brokered certificates of deposit issued by Barclays Group are insured up to $250,000 per depositor, by the Federal Deposit Insurance Corporation (FDIC) in the United States of America. The FDIC is funded by premiums that Barclays and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that are designated under the IAS 39 fair value option includes this third party credit enhancement. At 30 June 2015, the on-balance sheet value of these brokered certificates of deposit was GBP3,428m (2014: GBP3,650m).

Comparison of carrying amounts and fair values for assets and liabilities not held at fair value

Valuation methodologies employed in calculating the fair value of financial assets and liabilities measured at amortised cost are consistent with the 2014 Annual Report disclosure.

The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group's balance sheet where carrying amount is not a reasonable approximation of fair value:

 
                                             As at 30.06.15         As at 31.12.14 
                                          =====================  ===================== 
                                           Carrying               Carrying 
                                             amount  Fair value     amount  Fair value 
Financial assets                               GBPm        GBPm       GBPm        GBPm 
========================================  =========  ==========  =========  ========== 
Loans and advances to banks                  44,548      44,111     42,111      42,088 
Loans and advances to customers: 
- Home loans                                164,341     158,023    166,974     159,602 
- Credit cards, unsecured and other 
 retail lending                              59,480      59,315     63,583      63,759 
- Finance lease receivables                   5,118       5,020      5,439       5,340 
- Corporate loans                           201,780     200,552    191,771     188,805 
Reverse repurchase agreements and 
 other similar secured lending               93,138      93,138    131,753     131,753 
 
Financial liabilities 
Deposits from banks                        (55,978)    (55,974)   (58,390)    (58,388) 
Customer accounts: 
- Current and demand accounts             (134,345)   (134,325)  (143,057)   (143,085) 
- Savings accounts                        (133,294)   (133,340)  (131,163)   (131,287) 
- Other time deposits                     (170,632)   (170,701)  (153,484)   (153,591) 
Debt securities in issue                   (75,525)    (76,609)   (86,099)    (87,522) 
Repurchase agreements and other similar 
 secured borrowing                         (85,092)    (85,092)  (124,479)   (124,479) 
Subordinated liabilities                   (19,664)    (20,944)   (21,153)    (22,718) 
========================================  =========  ==========  =========  ---------- 
 
   10.         Subordinated liabilities 
 
 
 
                                                      As at     As at 
                                                   30.06.15  31.12.14 
                                                       GBPm      GBPm 
=================================================  ========  ======== 
Opening balance as at 1 January                      21,153    21,695 
Issuances                                               144       826 
Redemptions                                           (534)   (1,695) 
Other                                               (1,099)       327 
=================================================  ========  ======== 
Total dated and undated subordinated liabilities 
 as at period end                                    19,664    21,153 
 

Subordinated liabilities decreased 7% to GBP19,664m:

-- There were new issuances of GBP97m Floating Rate Subordinated Notes (ZAR 1,693m) and GBP47m 10.05% Fixed Rate Subordinated Notes (ZAR 807m)

-- Redemptions include GBP265m 6.140% Fixed Rate Guaranteed Perpetual Subordinated Notes, GBP116m 8.1% Subordinated Callable Notes (ZAR 2,000m) and GBP97m 4.75% Fixed Rate Subordinated Notes 2015 (US$ 150m)

-- Other movements of GBP1.1bn include a GBP443m reduction as GBP strengthened against USD, EUR and ZAR and a GBP402m reduction in accrued interest

   11.         Provisions 
 
                                                As at                             As at 
                                             30.06.15                          31.12.14 
                                                 GBPm                              GBPm 
===========================================  ========  ================================ 
UK Customer Redress 
 - Payment Protection Insurance redress         1,268                             1,059 
 - Interest rate hedging product redress          108                               211 
 - Packaged Bank Accounts                         250                                 - 
Other customer redress                            398                               375 
Legal, competition and regulatory matters         484                             1,690 
Redundancy and restructuring                      261                               291 
Undrawn contractually committed facilities 
 and guarantees                                    79                                94 
Onerous contracts                                 164                               205 
Sundry provisions                                 275                               210 
-------------------------------------------  --------  -------------------------------- 
Total                                           3,287                             4,135 
 

Payment Protection Insurance Redress

As at 30 June 2015 Barclays had recognised cumulative provisions totalling GBP6.0bn against the cost of Payment Protection Insurance (PPI) redress and associated processing costs with utilisation of GBP4.7bn leaving a residual provision of GBP1.3bn.

Through to 30 June 2015, 1.4m (31 December 2014: 1.3m) customer initiated claims(1) had been received and processed. The volume of claims received during H115 decreased 14% compared to H214. This rate of decline however was slower than previously expected, due to steady levels of claims from Claims Management Companies in particular.

As a result of the lower than expected decline in claims additional provisions totalling GBP750m have been recognised during H115.

The provision is calculated using a number of key assumptions which continue to involve significant management judgement and modelling:

-- Customer initiated claim volumes - claims received but not yet processed and an estimate of future claims initiated by customers where the volume is anticipated to decline over time

   --     Proactive response rate - volume of claims in response to proactive mailing 
   --     Uphold rate - the percentage of claims that are upheld as being valid upon review 

-- Average claim redress - the expected average payment to customers for upheld claims based on the type and age of the policy/policies

These assumptions remain subjective, in particular due to the uncertainty associated with future claims levels, which include complaints driven by CMC activity.

The current provision represents Barclays' revised best estimate of all future expected costs of PPI redress, however, it is possible the eventual outcome may differ from the current estimate. If this were to be material, the provision will be increased or decreased accordingly. The current forecast indicates that the large majority of costs included in the provision will be incurred during 2015 and 2016.

The following table details by key assumption, actual data through to 30 June 2015, forecast assumptions used in the provision calculation and a sensitivity analysis illustrating the impact on the provision if the future expected assumptions prove too high or too low.

 
 Assumption                            Cumulative                                    Sensitivity 
                                           actual                     Analysis increase/decrease 
                                      to 30.06.15   Future Expected                 in provision 
-----------------------------------  ------------  ----------------  --------------------------- 
Customer initiated claims received 
 and processed(1)                          1,420k              270k                 50k = GBP91m 
Proactive mailing                            680k              133k                 50k = GBP15m 
Response rate to proactive mailing            25%               23%                   1% = GBP4m 
Average uphold rate per claim(2)              84%               87%                   1% = GBP6m 
Average redress per valid claim(3)       GBP1,794          GBP1,781              GBP100 = GBP30m 
 
 
 1   Total claims received to date, including those received via CMCs 
      but excluding those for which no PPI policy exists and excluding 
      responses to proactive mailing. This sensitivity includes the 
      associated costs of FOS referrals and operating costs. 
 2   Average uphold rate per claim excludes those for which no PPI 
      policy exists. 
 3   Average redress stated on a per policy basis. 
 

A 2014 decision of the UK Supreme Court (Plevin) held that, judged on its own facts, non-disclosure of the amount of commissions payable in connection with the sale of single premium PPI to a customer could create an unfair relationship under the provisions of the UK Consumer Credit Act. Barclays is in an active dialogue with the FCA and the FOS to determine any possible wider impact of such decision on its historical sales of PPI. Due to this uncertainty it is not currently practicable to provide an estimate of the financial impact the Plevin decision could have and there can be no assurance that the outcome of this matter will not be material.

Packaged bank account redress

As at 30 June 2015 Barclays holds a provision of GBP250m for customer redress and associated operational costs to be incurred in response to complaints received relating to Packaged Bank Accounts.

The provision has been calculated using a number of assumptions which involve significant management judgment; the most significant assumption being volume of future complaints, together with average complaint uphold rate and average redress per claim.

   12.         Retirement benefits 

As at 30 June 2015, the Group's IAS19 pension deficit across all schemes was GBP1.1bn (2014: GBP1.5bn). The UK Retirement Fund (UKRF), which is the Group's main scheme, had a deficit of GBP0.7bn (2014: GBP1.1bn).

The movement for the UKRF is due to an increase in asset values, the Bank paying GBP150m of deficit contributions during 2015 and a decrease in the liabilities. The decrease in the liabilities can be linked to an increase in the discount rate to 3.79% pa (2014: 3.67% pa) partially offset by an increase in long term expected inflation to 3.25% pa (2014: 3.05% pa). In addition, the assumptions have been updated for current market conditions, and in Q115 the valuation of a component of the defined benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with statutory provisions, resulting in a GBP429m (H114: GBPnil) gain.

The UKRF discount rate assumption at 30 June 2015 is set using a variant of the Towers Watson RATE:Link model where AA spot yields are assumed to remain flat after year 30 and the corporate bond universe includes bonds rated AA by at least one of the four largest rating agencies. This compares to the RATE:Link model previously used which incorporated the slope of the government yield curve in extrapolating corporate spot yields beyond year 30, and only included bonds rated AA by either of the two largest rating agencies. The impact of this change on the UKRF Defined Benefit Obligation at 30 June 2015 was a GBP0.4bn decrease with no impact on current year profit. It is not possible to estimate the effects on profits after 2015.

The latest triennial actuarial valuation of the UKRF was carried out with an effective date of 30 September 2013. This was completed in 2014 and showed a deficit of GBP3.6bn and a funding level of 87.4%. The Bank and the Trustee agreed a scheme-specific funding target, statement of funding principles, a schedule of contributions and a recovery plan to eliminate the deficit of the UKRF. The main differences between the funding and IAS 19 assumptions are a more prudent longevity assumption for funding and a different approach to setting the discount rate.

The recovery plan to eliminate the deficit will result in the Bank paying deficit contributions to the Fund until 2021. Deficit contributions of GBP300m are payable in 2015, and also in 2016. Further deficit contributions of GBP740m pa are payable during 2017 to 2021. Up to GBP500m of the 2021 deficit contributions are payable in 2017 depending on the deficit level at that time. These deficit contributions are in addition to the regular contributions to meet the Group's share of the cost of benefits accruing over each year.

In non-valuation years, the Scheme Actuary prepares an actuarial annual update of the funding position. The latest annual update was carried out as at 30 September 2014 and showed a deficit of GBP4.6bn and a funding level of 85.4%. The increase in funding deficit over the year to 30 September 2014 can be mainly attributed to the fall in real gilt yields over the year.

   13.         Called up share capital 

Called up share capital comprises 16,773m (2014: 16,498m) ordinary shares of 25p each. The increase was largely due to the issuance of shares under employee share schemes and the Barclays PLC Scrip Dividend Programme.

   14.         Other equity instruments 

Other Equity Instruments of GBP4,325m (2014: GBP4,322m) include Additional Tier 1 (AT1) securities issued by Barclays PLC during 2013 and 2014.

The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under CRD IV.

   15.         Other reserves 
 
                                    As at      As at 
                                 30.06.15   31.12.14 
                                     GBPm       GBPm 
==============================  =========  ========= 
 Currency translation reserve     (1,045)      (582) 
 Available for sale reserve           267        562 
 Cash flow hedging reserve          1,183      1,817 
 Other                                929        927 
==============================  =========  ========= 
 Total                              1,334      2,724 
 

Currency translation reserve

As at 30 June 2015 there was a debit balance of GBP1,045m (2014: GBP582m debit) in the currency translation reserve. The increase of GBP463m debit (2014: GBP560m credit) principally reflected the depreciation of ZAR, EUR and USD against GBP. The currency translation reserve associated with non-controlling interests increased by GBP127m debit (2014: GBP74m debit) due to the depreciation of ZAR against GBP.

During the period a GBP87m net loss (2014: GBP91m net gain) from recycling of the currency translation reserve was recognised in the Income Statement. This principally related to the disposal of the Spanish business.

Available for sale reserve

As at 30 June 2015 there was a balance of GBP267m (2014: GBP562m) in the available for sale reserve. The decrease of GBP295m (2014: GBP414m increase) was largely driven by GBP1,014m losses from changes in fair value on Government Bonds offset by GBP853m due to fair value hedging, GBP312m of net gains transferred to net profit and a tax credit of GBP96m.

Cash flow hedging reserve

The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when the hedged transactions affect profit or loss.

As at 30 June 2015 there was a balance of GBP1,183m (2014: GBP1,817m) in the cash flow hedging reserve. The decrease of GBP634m (2014: GBP1,544m increase) principally reflected a GBP697m decrease in the fair value of interest rate swaps held for hedging purposes as interest rate forward curves increased, GBP98m gains transferred to net profit, partially offset by a tax credit of GBP159m.

Treasury shares

During the period GBP568m (2014: GBP909m) net purchases of treasury shares were made, principally reflecting the increase in shares held for the purposes of employee share schemes, and GBP570m (2014: GBP866m) was transferred to retained earnings reflecting the vesting of deferred share based payments.

   16.         Contingent liabilities and commitments 
 
                                                            As at     As at 
                                                         30.06.15  31.12.14 
                                                             GBPm      GBPm 
=======================================================  ========  ======== 
Guarantees and letters of credit pledged as collateral 
 security                                                  15,131    14,547 
Performance guarantees, acceptances and endorsements        5,215     6,777 
=======================================================  ========  ======== 
Contingent liabilities                                     20,346    21,324 
-------------------------------------------------------  --------  -------- 
Documentary credits and other short-term trade related 
 transactions                                               1,163     1,091 
-------------------------------------------------------  --------  -------- 
Forward starting reverse repurchase agreements             15,459    13,856 
=======================================================  ========  ======== 
Standby facilities, credit lines and other commitments    269,404   276,315 
 

Further details on contingent liabilities relating to legal, competition and regulatory matters can be found in Note 17.

   17.         Legal, competition and regulatory matters 

Barclays PLC (BPLC), Barclays Bank PLC (BBPLC) and the Group face legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact on BPLC, BBPLC and the Group of these matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances. The Group has not disclosed an estimate of the potential financial effect on the Group of contingent liabilities where it is not currently practicable to do so.

Investigations into certain agreements

The Financial Conduct Authority (FCA) has alleged that BPLC and BBPLC breached their disclosure obligations in connection with two advisory services agreements entered into by BBPLC. The FCA has imposed a GBP50m fine. BPLC and BBPLC are contesting the findings. The United Kingdom (UK) Serious Fraud Office (SFO) is also investigating these agreements. The US Department of Justice (DOJ) and US Securities and Exchange Commission (SEC) are investigating whether the Group's relationships with third parties who help it to win or retain business are compliant with the US Foreign Corrupt Practices Act.

Background Information

The FCA has investigated certain agreements, including two advisory services agreements entered into by BBPLC with Qatar Holding LLC (Qatar Holding) in June and October 2008 respectively, and whether these may have related to BPLC's capital raisings in June and November 2008.

The FCA issued warning notices (Warning Notices) against BPLC and BBPLC in September 2013.

The existence of the advisory services agreement entered into in June 2008 was disclosed but the entry into the advisory services agreement in October 2008 and the fees payable under both agreements, which amount to a total of GBP322m payable over a period of five years, were not disclosed in the announcements or public documents relating to the capital raisings in June and November 2008. While the Warning Notices consider that BPLC and BBPLC believed at the time that there should be at least some unspecified and undetermined value to be derived from the agreements, they state that the primary purpose of the agreements was not to obtain advisory services but to make additional payments, which would not be disclosed, for the Qatari participation in the capital raisings.

The Warning Notices conclude that BPLC and BBPLC were in breach of certain disclosure-related listing rules and BPLC was also in breach of Listing Principle 3 (the requirement to act with integrity towards holders and potential holders of the Company's shares). In this regard, the FCA considers that BPLC and BBPLC acted recklessly. The financial penalty in the Warning Notices against the Group is GBP50m. BPLC and BBPLC continue to contest the findings.

Other Investigations and Litigation

The FCA has agreed that the FCA enforcement process be temporarily stayed pending progress in the SFO's investigation into the agreements referred to above, including the advisory services agreements, in respect of which the Group has received and has continued to respond to requests for further information. The DOJ and SEC are investigating these same agreements and are also undertaking an investigation into whether the Group's relationships with third parties who assist BPLC to win or retain business are compliant with the US Foreign Corrupt Practices Act. Certain regulators in other jurisdictions have also been briefed on the investigations into certain of the Group's relationships with third parties. It is possible that civil litigation relating to certain of these matters may be brought in the future against BPLC and/or its affiliates.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

Alternative Trading Systems and High-Frequency Trading

The SEC, the New York State Attorney General (NYAG), the FCA and regulators in certain other jurisdictions have been investigating a range of issues associated with alternative trading systems (ATSs), including dark pools, and the activities of high-frequency traders. Barclays Capital Inc. (BCI) has been providing information to the relevant regulatory authorities in response to their enquiries. Various parties, including the NYAG, have filed complaints against BPLC and BCI and certain of the Group's current and former officers in connection with ATS related activities. BPLC and BCI continue to defend against these actions.

Background Information

Civil complaints have been filed in the New York Federal Court on behalf of a putative class of plaintiffs against BPLC and BCI and others generally alleging that the defendants violated the federal securities laws by participating in a scheme in which high-frequency trading firms were given informational and other advantages so that they could manipulate the US securities market to the plaintiffs' detriment. These complaints have been consolidated and BPLC has filed a motion to dismiss this action.

In June 2014, the NYAG filed a complaint (NYAG Complaint) against BPLC and BCI in the Supreme Court of the State of New York (NY Supreme Court) alleging, amongst other things, that BPLC and BCI engaged in fraud and deceptive practices in connection with LX Liquidity Cross, the Group's SEC-registered ATS. BPLC and BCI filed a motion to dismiss the Complaint in July 2014.

BPLC and BCI have also been named in a class action by an institutional investor client under California law based on allegations similar to those in the Complaint. This California class action has been consolidated with the class action filed in the New York Federal Court described above.

Also, following the filing of the NYAG Complaint, BPLC and BCI were named in a shareholder securities class action along with its current and certain of its former CEOs and CFOs and an employee in Equities Electronic Trading on the basis that investors suffered damages when their investments in Barclays American Depository Receipts declined in value as a result of the allegations in the NYAG Complaint. BPLC and BCI have filed a motion to dismiss the complaint, which the court granted in part and denied in part.

It is possible that additional complaints relating to these or similar matters may be brought in the future against BPLC and/or its affiliates.

Recent Developments

In February 2015, the NYAG filed an amended complaint and the NY Supreme Court subsequently granted in part and denied in part BPLC and BCI's motion to dismiss the NYAG Complaint. Proceedings in this matter are continuing.

Claimed Amounts/Financial Impact

The complaints seek unspecified monetary damages and injunctive relief. It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect that these matters might have upon operating results, cash flows or the Group's financial position in any particular period.

FERC

The US Federal Energy Regulatory Commission (FERC) has filed a civil action against BBPLC and certain of its former traders in the US District Court in California seeking to collect on an order assessing a $435m civil penalty and the disgorgement of $34.9m of profits, plus interest, in connection with allegations that BBPLC manipulated the electricity markets in and around California. The US Attorney's Office in the SDNY has informed BBPLC that it is looking into the same conduct at issue in the FERC matter and a civil class action complaint was filed in the US District Court for the SDNY against BBPLC asserting antitrust allegations that mirror those raised in the civil suit filed by FERC.

Background Information

In October 2012, FERC issued an Order to Show Cause and Notice of Proposed Penalties (Order and Notice) against BBPLC and four of its former traders in relation to their power trading in the western US. In the Order and Notice, FERC asserted that BBPLC and its former traders violated FERC's Anti-Manipulation Rule by manipulating the electricity markets in and around California from November 2006 to December 2008, and proposed civil penalties and profit disgorgement to be paid by BBPLC.

In July 2013, FERC issued an Order Assessing Civil Penalties in which it assessed a $435m civil penalty against BBPLC and ordered BBPLC to disgorge an additional $34.9m of profits plus interest (both of which are consistent with the amounts proposed in the Order and Notice).

In October 2013, FERC filed a civil action against BBPLC and its former traders in the US District Court in California seeking to collect the penalty and disgorgement amount. FERC's complaint in the civil action reiterates the allegations previously made by FERC in its October 2012 Order and Notice and its July 2013 Order Assessing Civil Penalties.

In September 2013, BBPLC was contacted by the criminal division of the US Attorney's Office in SDNY and advised that such office is looking at the same conduct at issue in the FERC matter.

In December 2013, BBPLC and its former traders filed a motion to dismiss the action for improper venue or, in the alternative, to transfer it to the SDNY, and a motion to dismiss the complaint for failure to state a claim.

Recent Developments

In May 2015, the US District Court in California denied a motion filed by BBPLC and the former traders to dismiss the action for improper venue or, in the alternative, to transfer it to the SDNY, and a motion to dismiss the complaint for failure to state a claim.

In June 2015, a civil class action complaint was filed in the US District Court for the SDNY against BBPLC by Merced Irrigation District, a California utility company, asserting antitrust allegations in connection with BBPLC's purported manipulation of the electricity markets in and around California. The allegations mirror those raised in the civil suit filed by FERC against BBPLC currently pending in the US District Court in California.

Claimed Amounts/Financial Impact

FERC has made claims against BBPLC and certain of its former traders totalling $469.9m, plus interest, for civil penalties and profit disgorgement. This amount does not necessarily reflect the BBPLC's potential financial exposure if a ruling were to be made against it. The civil class action complaint refers to damages of $139.3m.

Investigations into LIBOR, other Benchmarks, ISDAFIX, Foreign Exchange Rates and Precious Metals

Regulators and law enforcement agencies from a number of governments have been conducting investigations relating to BBPLC's involvement in manipulating Foreign Exchange rates and financial benchmarks. BBPLC, BPLC and BCI have reached settlements with the relevant law enforcement agency or regulator in certain of the investigations, but others, including those set out in more detail below, remain pending.

Background Information

The FCA, the US Commodity Futures Trading Commission (CFTC), the SEC, the DOJ Fraud Section (DOJ-FS) and Antitrust Division (DOJ-AD), the European Commission (Commission), the SFO, the Monetary Authority of Singapore, the Japan Financial Services Agency, the Administrative Council for Economic Defence in Brazil, the South African Competition Commission, the prosecutors' office in Trani, Italy and various US state attorneys general are amongst various authorities that opened investigations in connection with efforts to manipulate Foreign Exchange rates and into submissions made by BBPLC and other financial institutions to the bodies that set or compile various financial benchmarks, such as LIBOR and EURIBOR.

In June 2012, BBPLC announced that it had reached settlements with the Financial Services Authority (FSA) (as predecessor to the FCA), the CFTC and the DOJ-FS in relation to their investigations concerning certain benchmark interest rate submissions, and BBPLC agreed to pay total penalties of GBP290m, which were reflected in operating expenses for 2012. The settlements were made by entry into a Settlement Agreement with the FSA, a Settlement Order with the CFTC (CFTC LIBOR Order) and a Non-Prosecution Agreement (NPA) with the DOJ-FS. In addition, BBPLC was granted conditional leniency from the DOJ-AD in connection with potential US antitrust law violations with respect to financial instruments that reference EURIBOR. Summaries of the NPA and the CFTC LIBOR Order are set out below. The full text of the CFTC LIBOR Order and the NPA are publicly available on the websites of the CFTC and the DOJ, respectively. The terms of the Settlement Agreement with the FSA are confidential, but the Final Notice of the FSA in relation to LIBOR is available on the FCA's website.

CFTC LIBOR Order

In addition to a $200m civil monetary penalty, the CFTC LIBOR Order requires BBPLC to cease and desist from further violations of specified provisions of the US Commodity Exchange Act (CEA) and take specified steps to ensure the integrity and reliability of its benchmark interest rate submissions, including LIBOR and EURIBOR, and improve related internal controls.

Investigations by the US State Attorneys General

Following the settlements announced in June 2012, 31 US State Attorneys General commenced their own investigations into LIBOR, EURIBOR and the Tokyo Interbank Offered Rate. The NYAG, on behalf of this coalition of Attorneys General, issued a subpoena in July 2012 to BBPLC (and subpoenas to a number of other banks) to produce wide-ranging information and has since issued additional information requests to BBPLC for both documents and transactional data. BBPLC is responding to these requests on a rolling basis.

Investigation by the SFO

In addition, following the settlements announced in June 2012, the SFO announced in July 2012 that it had decided to investigate the LIBOR matter, in respect of which BBPLC has received and continues to respond to requests for information.

Investigations by the European Commission

The Commission has also been conducting investigations into the manipulation of, amongst other things, EURIBOR. On 4 December 2013, the Commission announced that it had reached a settlement with the Group and a number of other banks in relation to anti-competitive conduct concerning EURIBOR. The Group had voluntarily reported the EURIBOR conduct to the Commission and cooperated fully with the Commission's investigation. In recognition of this cooperation, the Group was granted full immunity from the financial penalties that would otherwise have applied.

DOJ Non-Prosecution Agreement

As part of the NPA, BBPLC agreed to pay a $160m penalty. In addition, the DOJ agreed not to prosecute BBPLC for any crimes (except for criminal tax violations, as to which the DOJ cannot and did not make any agreement) related to BBPLC's submissions of benchmark interest rates, including LIBOR and EURIBOR, contingent upon BBPLC's satisfaction of specified obligations under the NPA.

In June 2014, BBPLC and DOJ-FS entered into a letter agreement which gave DOJ-FS until 27 June 2015 to make a determination under the NPA solely as to whether any of BBPLC's trading activities in the Foreign Exchange market during the two-year period from 26 June 2012 constituted the commission of a 'United States crime'.

Recent Developments

The Foreign Exchange settlements described below under 'Foreign Exchange Trading Investigations' include a $60m penalty imposed by the DOJ as a consequence of certain practices that continued after entry into the NPA; however, the DOJ exercised its discretion not to declare a breach of the NPA. The NPA and the letter agreement have now expired.

Foreign Exchange Trading Investigations

Various regulatory and enforcement authorities, including the FCA, the Commission, the CFTC, the DOJ-FS, the DOJ-AD, the SEC and the New York State Department of Financial Services (NYDFS) have been investigating a range of issues associated with Foreign Exchange sales and trading, including electronic trading. Certain of these investigations involve multiple market participants in various countries.

Recent Developments

On 20 May 2015, the Group announced that it had reached settlements with the CFTC, the NYDFS, the DOJ, the Board of Governors of the Federal Reserve System (Federal Reserve) and the FCA (together, the Resolving Authorities) in relation to investigations into certain sales and trading practices in the Foreign Exchange market, that it had agreed to pay total penalties of approximately $2.38bn, including a $60m penalty imposed by the DOJ as a consequence of certain practices continuing after entry into the NPA, and that BPLC had agreed to plead guilty to a violation of US anti-trust law.

Under the plea agreement with the DOJ, BPLC agreed to (i) pay a criminal fine of $650m and (ii) a term of probation of three years from the date of the final judgment in respect of the plea agreement. During the term of probation, BPLC must, amongst other things:

   --     Commit no crime whatsoever in violation of the federal laws of the United States; 

-- Notify the probation officer appointed by the court upon learning of the commencement of any federal criminal investigation in which it is a target, or federal criminal prosecution against it;

-- Implement and continue to implement a compliance program designed to prevent and detect the conduct that gave rise to the plea agreement;

-- Strengthen its compliance and internal controls as required by the CFTC, the FCA and any other regulatory or enforcement agencies that have addressed the conduct set forth in the plea agreement; and

-- Bring to the DOJ's attention (i) all credible information regarding criminal violations by BPLC or any of its employees that relates to US anti-trust laws or fraud laws, including securities or commodities markets fraud, as to which BPLC's Board of Directors, management or legal and compliance personnel is aware (ii) all criminal or regulatory investigations, administrative proceedings or civil actions brought by any governmental authority in the US by or against BPLC or its employees that alleges violations of US anti-trust or fraud laws, or including securities or commodities markets fraud.

Pursuant to the settlement with the CFTC, BBPLC consented to the entry of an order requiring it to (i) cease and desist from violating provisions of the US Commodity Exchange Act, (ii) pay a civil monetary penalty of $400m and (iii) undertake certain remediation efforts to the extent not already undertaken, including:

-- Implementing and improving its internal controls and procedures in a manner reasonably designed to ensure the integrity of its participation in the fixing of any Foreign Exchange benchmark rate, including measures to identify and address internal or external conflicts of interest; and

-- Implementing additional remediation improvements will include internal controls and procedures relating to, amongst other things: (i) detection and deterrence of improper communications concerning Foreign Exchange benchmark rates and trading or other conduct potentially intended to manipulate Foreign Exchange benchmark rates, (ii) routine and on-going training of all traders, supervisors and others who are involved in the fixing of any Foreign Exchange benchmark rate and (iii) its system for reporting, handling and investigating any suspected misconduct or questionable, unusual or unlawful activity relating to the fixing of any Foreign Exchange benchmark rate.

Pursuant to its settlement with the Federal Reserve, BBPLC and BBPLC's New York branch consented to an order imposing a civil monetary penalty of $342m and ordering BBPLC and BBPLC's New York branch to submit in writing to the Federal Reserve Bank of New York for its approval (i) an enhanced internal controls and compliance program to comply with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products, (ii) a plan to improve its compliance risk management program regarding BBPLC's and BBPLC's New York branch's compliance with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products and (iii) enhanced internal audit program regarding BBPLC's and BBPLC's New York branch's compliance with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products. Under the Federal Reserve order, BBPLC and its institution-affiliated parties must not in the future directly or indirectly retain any individual as an officer, employee, agent, consultant or contractor of BBPLC or of any subsidiary of BBPLC who, based on the investigative record compiled by US authorities, has done all of the following: (i) participated in the misconduct underlying the order, (ii) been subject to formal disciplinary action as a result of BBPLC's and BBPLC's New York branch's internal disciplinary review or performance review in connection with the conduct described in the order, and (iii) either separated from BBPLC or any subsidiary thereof or had his or her employment terminated in connection with the conduct described in the order.

Pursuant to the settlement with the NYDFS, BBPLC and BBPLC's New York branch consented to an order imposing a civil monetary penalty of $485m and requiring BBPLC and BBPLC's New York branch to take all steps necessary to terminate four identified employees. BBPLC and BBPLC's New York branch must also continue to engage the independent monitor previously selected by the NYDFS to conduct, consistent with applicable law, a comprehensive review of compliance programs, policies, and procedures, with respect to the business activities discussed within the order, in place at BBPLC that pertain to or affect activities conducted by or through BBPLC's New York branch. The monitor will submit to the NYDFS and BBPLC's Board of Directors a preliminary written report of findings, including proposed corrective measures and thereafter BBPLC and BBPLC's New York branch must submit to the NYDFS (i) a written plan designed to improve and enhance current compliance programs that pertain to or affect activities conducted by or through BBPLC's New York branch, incorporating any relevant corrective measures identified in the monitor's report and (ii) a written plan to improve and enhance management oversight of compliance programs, policies, and procedures now in place at BBPLC that pertain to or affect activities conducted by or through BBPLC's New York branch.

The FCA issued a Final Notice and imposed a financial penalty of GBP284m on BBPLC for failing to control business practices in its Foreign Exchange business in London (including G10 and emerging market spot Foreign Exchange trading, Foreign Exchange options and Foreign Exchange sales). As announced in November 2014, the FCA has required an industry-wide remediation programme which Barclays remains committed to completing.

The full text of the DOJ plea agreement, the CFTC, NYDFS and Federal Reserve orders, and the FCA Final Notice referred to above are publicly available on the Resolving Authorities' respective websites.

The settlements reached on 20 May 2015 did not encompass ongoing investigations of electronic trading in the Foreign Exchange market. In addition, certain authorities continue to investigate sales and trading practices of various sales and trading personnel, including Foreign Exchange personnel, among multiple market participants, including BBPLC, in various countries. The Group is continuing to review these and certain other practices relating to Foreign Exchange and continues to cooperate with the relevant authorities.

ISDAFIX Investigation

Regulators and law enforcement agencies, including the CFTC, have conducted separate investigations into historical practices with respect to ISDAFIX, amongst other benchmarks.

On 20 May 2015, the CFTC entered into a settlement order with BPLC, BBPLC and BCI pursuant to which BPLC, BBPLC and BCI agreed to pay a civil monetary penalty of $115m in connection with the CFTC's industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark. In addition, the CFTC order requires BPLC, BBPLC and BCI to cease and desist from violating provisions of the US Commodity Exchange Act, fully cooperate with the CFTC in related investigations and litigation and undertake certain remediation efforts to the extent not already undertaken, including, amongst other things:

-- Continuing to implement and improve its internal controls and procedures in a manner reasonably designed to ensure the integrity of the fixing of any interest-rate swap benchmark; and

-- Implementing additional remediation improvements, including reasonable internal controls and procedures relating to, amongst other things: (i) the detection and deterrence of trading or other conduct potentially intended to manipulate directly or indirectly swap rates, including benchmarks based on interest-rate swaps, (ii) routine and on-going training of all swaps and options desk personnel relating to the trading of any product that references a benchmark based on interest-rate swaps and (iii) a system for reporting, handling and investigating any suspected misconduct or questionable, unusual or unlawful activity relating to the fixing of any benchmark based on interest-rate swaps.

The full text of the CFTC order relating to ISDAFIX is publicly available on the CFTC website.

Certain other regulatory and enforcement authorities have requested information regarding the setting of, and trading intended to influence, the USD ISDAFIX benchmark.

Precious Metals Investigation

BBPLC has been providing information to the DOJ and other authorities in connection with investigations into precious metals and precious metals-based financial instruments.

For a discussion of litigation arising in connection with these investigations see 'LIBOR and other Benchmarks Civil Actions', 'Civil Actions in Respect of ISDAFIX', 'Civil Actions in Respect of Foreign Exchange Trading' and 'Civil Actions in Respect of the Gold Fix' below.

Claimed Amounts/Financial Impact

The fines in connection with the May 2015 settlements with the Resolving Authorities are covered by the Group's existing provisions of GBP2.05bn. It is not currently practicable to provide an estimate of the financial impact of certain of the other matters in this section, or what effect that these matters might have upon the Group's operating results, cash flows or financial position in any particular period.

LIBOR and other Benchmark Civil Actions

Following the settlements of the investigations referred to above in 'Investigations into LIBOR, other Benchmarks, ISDAFIX, Foreign Exchange Rates and Precious Metals', a number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against Group in relation to LIBOR and/or other benchmarks.

Background Information

A number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to manipulation of LIBOR and/or other benchmark rates. While several of such cases have been dismissed and one has settled subject to final approval from the court, others remain pending and their ultimate impact is unclear.

USD LIBOR Cases in MDL Court

The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial purposes before a single judge in the SDNY (MDL Court).

The complaints are substantially similar and allege, amongst other things, that BBPLC and the other banks individually and collectively violated provisions of the US Sherman Antitrust Act, the CEA, the US Racketeer Influenced and Corrupt Organizations Act (RICO) and various state laws by manipulating USD LIBOR rates.

The lawsuits seek unspecified damages with the exception of five lawsuits, in which the plaintiffs are seeking a combined total in excess of $1.25bn in actual damages against all defendants, including BBPLC, plus punitive damages. Some of the lawsuits also seek trebling of damages under the US Sherman Antitrust Act and RICO.

The proposed class actions purport to be brought on behalf of (amongst others) plaintiffs that (i) engaged in USD LIBOR-linked over-the-counter transactions (OTC Class); (ii) purchased USD LIBOR-linked financial instruments on an exchange (Exchange-Based Class); (iii) purchased USD LIBOR-linked debt securities (Debt Securities Class); (iv) purchased adjustable-rate mortgages linked to USD LIBOR (Homeowner Class); or (v) issued loans linked to USD LIBOR (Lender Class).

In August 2012, the MDL Court stayed all newly filed proposed class actions and individual actions (Stayed Actions), so that the MDL Court could address the motions pending in three lead proposed class actions (Lead Class Actions) and three lead individual actions (Lead Individual Actions).

In March 2013, the MDL Court issued a decision dismissing the majority of claims against BBPLC and other panel bank defendants in the Lead Class Actions and Lead Individual Actions.

Following the decision, the plaintiffs in the Lead Class Actions sought permission to either file an amended complaint or appeal an aspect of the March 2013 decision. In August 2013 and June 2014, the MDL Court denied the majority of the motions presented in the Lead Class Actions. As a result, the:

   --     Debt Securities Class has been dismissed entirely; 
   --     The claims of the Exchange-Based Class have been limited to claims under the CEA; and 

-- The claims of the OTC Class have been limited to claims for unjust enrichment and breach of the implied covenant of good faith and fair dealing.

Subsequent to the MDL Court's March 2013 decision, the plaintiffs in the Lead Individual Actions filed a new action in California state court (since moved to the MDL Court) based on the same allegations as those initially alleged in the proposed class action cases discussed above. The Debt Securities Class attempted to appeal the dismissal of their action to the US Court of Appeals for the Second Circuit (Second Circuit), but the Second Circuit dismissed the appeal as untimely on the grounds that the MDL Court had not reached a decision resolving all of the claims in the consolidated actions. In January 2015, the US Supreme Court reversed the Second Circuit's decision, ruling that the Second Circuit must hear the Debt Securities Class' appeal. The OTC Class and the Exchange-Based Class have received permission to join this appeal. Certain other proposed class actions that had previously been stayed by the MDL Court have also received permission to join the appeal as to the dismissal of their antitrust claims.

In December 2014, the MDL Court granted preliminary approval for the settlement of the remaining Exchange-Based Class claims for $19.98m and requested that the plaintiffs present a plan for allocation of the settlement proceeds. In January 2015, plaintiffs filed a motion for an order approving their proposed process of allocation and class notice for the settlement, and that motion is pending before the MDL Court.

Additionally, the MDL Court has begun to address the claims in the Stayed Actions, many of which, including state law fraud and tortious interference claims, were not asserted in the Lead Class Actions. As a result, in October 2014, the direct action plaintiffs (those who have opted out of the class actions) filed their amended complaints and in November 2014, the defendants filed their motions to dismiss. In November 2014, the plaintiffs in the Lender Class and Homeowner Class actions filed their amended complaints. In January 2015, the defendants filed their motions to dismiss.

Until there are further decisions, the ultimate impact of the MDL Court's decisions will be unclear, although it is possible that the decisions will be interpreted by courts to affect other litigation, including the actions described below, some of which concern different benchmark interest rates.

Additional USD LIBOR Case in the SDNY

An additional individual action was commenced in February 2013 in the SDNY against BBPLC and other panel bank defendants. The plaintiff alleged that the panel bank defendants conspired to increase USD LIBOR, which caused the value of bonds pledged as collateral for a loan to decrease, ultimately resulting in the sale of the bonds at a low point in the market. This action is not assigned to the MDL Court; it is proceeding on a different schedule before a different judge in the SDNY. The panel bank defendants moved to dismiss the action, and the motion was granted in April 2015. In June 2015, plaintiff sought leave to file a further amended complaint; that motion is pending.

Sterling LIBOR Case in SDNY

An additional class action was commenced in May 2015 in the SDNY against BBPLC and other Sterling LIBOR panel banks by a plaintiff involved in exchange-traded and over-the-counter derivatives that were linked to Sterling LIBOR. The complaint alleges, among other things, that BBPLC and other panel banks manipulated the Sterling LIBOR rate between 2005 and 2010 and, in so doing, committed CEA, antitrust, and RICO violations.

Securities Fraud Case in the SDNY

BPLC, BBPLC and BCI have also been named as defendants along with four former officers and directors of BBPLC in a proposed securities class action pending in the SDNY in connection with BBPLC's role as a contributor panel bank to LIBOR. The complaint asserted claims under the US Securities Exchange Act of 1934, principally alleging that BBPLC's Annual Reports for the years 2006 to 2011 contained misstatements and omissions concerning (amongst other things) BBPLC's compliance with its operational risk management processes and certain laws and regulations. The complaint also alleged that BBPLC's daily USD LIBOR submissions constituted false statements in violation of US securities law. The complaint was brought on behalf of a proposed class consisting of all persons or entities that purchased BPLC-sponsored American Depositary Receipts on a US securities exchange between 10 July 2007 and 27 June 2012. In May 2013, the district court granted BBPLC's motion to dismiss the complaint in its entirety. The plaintiffs appealed, and, in April 2014, the Second Circuit issued an order upholding the dismissal of certain of the plaintiffs' claims, but reversing the dismissal of the plaintiffs' claims that BBPLC's daily USD LIBOR submissions constituted false statements in violation of US securities law. The action has been remanded back to the district court for further proceedings, and discovery is expected to be substantially complete by the end of 2015. In April 2015, plaintiffs filed a motion to certify the class, and that motion is pending.

Complaint in the US District Court for the Central District of California

In July 2012, a purported class action complaint in the US District Court for the Central District of California was amended to include allegations related to USD LIBOR and name BBPLC as a defendant. The amended complaint was filed on behalf of a purported class that includes holders of adjustable rate mortgages linked to USD LIBOR. In January 2015, the court granted BBPLC's motion for summary judgement and dismissed all of the remaining claims against BBPLC. The plaintiff has appealed the court's decision to the US Court of Appeals for the Ninth Circuit.

Japanese Yen LIBOR Case in SDNY

An additional class action was commenced in April 2012 in the SDNY against BBPLC and other Japanese Yen LIBOR panel banks by a plaintiff involved in exchange-traded derivatives. The complaint also names members of the Japanese Bankers Association's Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel, of which BBPLC is not a member. The complaint alleges, amongst other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA and US Sherman Antitrust Act between 2006 and 2010. The defendants filed a motion to dismiss and, in March 2014, the Court issued a decision granting in part and denying in part that motion. Specifically, the court dismissed the plaintiff's antitrust claims in full, but sustained the plaintiff's CEA claims. The defendants' motion for reconsideration of the decision concerning the CEA claims was denied by the Court in October 2014. The plaintiff moved for leave to file a third amended complaint adding additional claims, including a RICO claim, which was denied in March 2015. Plaintiff has sought an immediate appeal of that decision, and that request is pending. Discovery commenced in May 2015.

EURIBOR Cases

In February 2013, a EURIBOR -related class action was filed against BPLC, BBPLC, BCI and other EURIBOR panel banks. The plaintiffs assert antitrust, CEA, RICO, and unjust enrichment claims. In particular, BBPLC is alleged to have conspired with other EURIBOR panel banks to manipulate EURIBOR. The lawsuit is brought on behalf of purchasers and sellers of NYSE LIFFE EURIBOR futures contracts, purchasers of Euro currency-related futures contracts and purchasers of other derivative contracts (such as interest rate swaps and forward rate agreements that are linked to EURIBOR) during the period 1 June 2005 through 31 March 2011. All proceedings were stayed until May 2015, when the court modified the stay to permit document discovery to proceed.

In addition, BBPLC has been granted conditional leniency from the DOJ-AD in connection with potential US antitrust law violations with respect to financial instruments that reference EURIBOR. As a result of that grant of conditional leniency, BBPLC is eligible for (i) a limit on liability to actual rather than treble damages if damages were to be awarded in any civil antitrust action under US antitrust law based on conduct covered by the conditional leniency and (ii) relief from potential joint-and-several liability in connection with such civil antitrust action, subject to BBPLC satisfying the DOJ-AD and the court presiding over the civil litigation of fulfilment of its cooperation obligations.

Non-US Benchmarks Cases

In addition to US actions, legal proceedings have been brought or threatened against the Group in connection with alleged manipulation of LIBOR and EURIBOR in a number of jurisdictions. The number of such proceedings in non-US jurisdictions, the benchmarks to which they relate, and the jurisdictions in which they may be brought have increased over time.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

Civil Actions in respect of ISDAFIX

Since September 2014, a number of ISDAFIX related civil actions have been filed in the SDNY on behalf of a proposed class of plaintiffs, alleging that BBPLC, a number of other banks and one broker, violated the US Sherman Antitrust Act and several state laws by engaging in a conspiracy to manipulate the USD ISDAFIX. A consolidated amended complaint was filed in February 2015.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

Civil Actions in respect of Foreign Exchange Trading

Since November 2013, a number of civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs alleging manipulation of Foreign Exchange markets under the US Sherman Antitrust Act and New York state law and naming several international banks as defendants, including BBPLC. In February 2014, the SDNY combined all then-pending actions alleging a class of US persons in a single consolidated action.

Recent Developments

In January 2015, the SDNY denied the motion to dismiss the consolidated action but dismissed two actions alleging classes of non-US persons.

Since February 2015, several additional civil actions have been filed in the SDNY, and one civil action has been filed in the Northern District of California, on behalf of proposed classes of plaintiffs alleging injuries related to Barclays' alleged manipulation of Foreign Exchange rates and naming several international banks as defendants, including BPLC, BBPLC and BCI. One of the newly filed actions asserts claims under the US Employee Retirement Income Security Act (ERISA) statute and includes allegations that are duplicative of allegations in the other cases, as well as additional allegations about Foreign Exchange sales practices and ERISA plans. All of the other newly filed actions assert claims under the US Sherman Antitrust Act and/or the US Commodity Exchange Act.

Claimed Amounts/Financial Impact

The financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period is currently uncertain.

Civil Actions in respect of the Gold Fix

Since March 2014, a number of civil complaints have been filed in US federal courts, each on behalf of a proposed class of plaintiffs, alleging that BBPLC and other members of The London Gold Market Fixing Ltd. manipulated the prices of gold and gold derivative contracts in violation of the CEA, the US Sherman Antitrust Act, and state antitrust and consumer protection laws. All of the complaints have been transferred to the SDNY and consolidated for pretrial purposes.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the potential exposure of the actions described or what effect that they might have upon operating results, cash flows or the Group's financial position in any particular period.

US Residential and Commercial Mortgage-related Activity and Litigation

The Group's activities within the US residential mortgage sector during the period from 2005 through 2008 included:

   --     Sponsoring and underwriting of approximately $39bn of private-label securitisations; 

-- Economic underwriting exposure of approximately $34bn for other private-label securitisations;

   --     Sales of approximately $0.2bn of loans to government sponsored enterprises (GSEs); 
   --     Sales of approximately $3bn of loans to others; and 

-- Sales of approximately $19.4bn of loans (net of approximately $500m of loans sold during this period and subsequently repurchased) that were originated and sold to third parties by mortgage originator affiliates of an entity that the Group acquired in 2007 (Acquired Subsidiary).

Throughout this time period affiliates of the Group engaged in secondary market trading of US residential mortgaged-backed securities (RMBS) and US commercial mortgage-backed securities (CMBS), and such trading activity continues today.

In connection with its loan sales and certain private-label securitisations, on 30 June 2015, the Group had unresolved repurchase requests relating to loans with a principal balance of approximately $2.6bn at the time they were sold, and civil actions have been commenced by various parties alleging that the Group must repurchase a substantial number of such loans.

In addition, the Group is party to a number of lawsuits filed by purchasers of RMBS asserting statutory and/or common law claims. The current outstanding face amount of RMBS related to these pending claims against the Group as of 30 June 2015 was approximately $0.8bn.

Regulatory and governmental authorities, including amongst others, the DOJ, SEC, Special Inspector General for the US Troubled Asset Relief Program, the US Attorney's Office for the District of Connecticut and the US Attorney's Office for the Eastern District of New York have initiated wide-ranging investigations into market practices involving mortgage-backed securities, and the Group is co-operating with several of those investigations.

RMBS Repurchase Requests

Background

The Group was the sole provider of various loan-level representations and warranties (R&Ws) with respect to:

   --     Approximately $5bn of Group sponsored securitisations; 
   --     Approximately $0.2bn of sales of loans to GSEs; and 
   --     Approximately $3bn of loans sold to others. 

In addition, the Acquired Subsidiary provided R&Ws on all of the $19.4bn of loans it sold to third parties.

R&Ws on the remaining Group sponsored securitisations were primarily provided by third-party originators directly to the securitisation trusts with a Group subsidiary, such as the depositor for the securitisation, providing more limited R&Ws. There are no stated expiration provisions applicable to most R&Ws made by the Group, the Acquired Subsidiary or these third parties.

Under certain circumstances, the Group and/or the Acquired Subsidiary may be required to repurchase the related loans or make other payments related to such loans if the R&Ws are breached.

The unresolved repurchase requests received on or before 30 June 2015 associated with all R&Ws made by the Group or the Acquired Subsidiary on loans sold to GSEs and others and private-label activities had an original unpaid principal balance of approximately $2.6bn at the time of such sale.

A substantial number (approximately $2.2bn) of the unresolved repurchase requests discussed above relate to civil actions that have been commenced by the trustees for certain RMBS securitisations in which the trustees allege that the Group and/or the Acquired Subsidiary must repurchase loans that violated the operative R&Ws. Such trustees and other parties making repurchase requests have also alleged that the operative R&Ws may have been violated with respect to a greater (but unspecified) amount of loans than the amount of loans previously stated in specific repurchase requests made by such trustees. All of the litigation involving repurchase requests remain at early stages.

In addition, the Acquired Subsidiary is subject to a civil action seeking, among other things, indemnification for losses allegedly suffered by a loan purchaser as a result of alleged breaches of R&Ws provided by the Acquired Subsidiary in connection with loan sales to the purchaser during the period 1997-2007. This litigation is in early stages.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

RMBS Securities Claims

Background

As a result of some of the RMBS activities described above, the Group is party to a number of lawsuits filed by purchasers of RMBS sponsored and/or underwritten by the Group between 2005 and 2008. As a general matter, these lawsuits allege, among other things, that the RMBS offering materials allegedly relied on by such purchasers contained materially false and misleading statements and/or omissions and generally demand rescission and recovery of the consideration paid for the RMBS and recovery of monetary losses arising out of their ownership.

The original face amount of RMBS related to the pending civil actions against the Group total approximately $2.3bn, of which approximately $0.8bn was outstanding as at 30 June 2015.

Cumulative realised losses reported on these RMBS as at 30 June 2015 were approximately $0.2bn.

Claimed Amounts/Financial Impact

If the Group were to lose the pending actions the Group believes it could incur a loss of up to the outstanding amount of the RMBS at the time of judgement (taking into account further principal payments after 30 June 2015), plus any cumulative losses on the RMBS at such time and any interest, fees and costs, less the market value of the RMBS at such time and less any provisions taken to date.

Although the purchasers in these securities actions have generally not identified a specific amount of alleged damages, the Group has estimated the total market value of these RMBS as at 30 June 2015 to be approximately $0.4bn. The Group may be entitled to indemnification for a portion of such losses.

Other Mortgage-related Investigations

In addition to the RMBS Repurchase Requests and RMBS Securities Claims, numerous regulatory and governmental authorities, amongst them the DOJ, SEC, Special Inspector General for the US Troubled Asset Relief Program, the US Attorney's Office for the District of Connecticut and the US Attorney's Office for the Eastern District of New York have been investigating various aspects of the mortgage-related business, including issuance and underwriting practices in primary offerings of RMBS and trading practices in the secondary market for both RMBS and CMBS. The Group continues to respond to requests relating to the RMBS Working Group of the Financial Fraud Enforcement Task Force (RMBS Working Group), which was formed to investigate pre-financial crisis mortgage-related misconduct. In connection with several of the investigations by members of the RMBS Working Group, a number of financial institutions have entered into settlements involving substantial monetary payments.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

Lehman Brothers

Since September 2009, BCI and BBPLC have been engaged in litigation with various entities that have sought to challenge certain aspects of the transaction pursuant to which BCI, BBPLC and other companies in the Group acquired most of the assets of Lehman Brothers Inc. (LBI) in September 2008, as well as the court order (Order) approving the sale (Sale). In May 2015, BCI and BBPLC reached a settlement with the SIPA Trustee for Lehman Brothers Inc. (Trustee) to resolve outstanding litigation between them relating to the Sale. The settlement was approved by the United States Bankruptcy Court for the SDNY (Bankruptcy Court) on 29 June 2015, thereby bringing the litigation challenging the Sale to an end.

Background Information

In September 2009, motions were filed in the Bankruptcy Court by Lehman Brothers Holdings Inc. (LBHI), the Trustee and the Official Committee of Unsecured Creditors of Lehman Brothers Holdings Inc. (Committee) challenging certain aspects of the Sale, as well as the Order. The claimants sought an order voiding the transfer of certain assets to BCI, requiring BCI to return to the LBI estate any excess value BCI allegedly received, and declaring that BCI is not entitled to certain assets that it claims pursuant to the Sale documents and the Order (Rule 60 Claims).

In January 2010, BCI filed its response to the motions and also filed a motion seeking delivery of certain assets that LBHI and LBI had failed to deliver as required by the Sale documents and the Order (together with the Trustee's competing claims to those assets, Contract Claims).

In 2011, the Bankruptcy Court rejected the Rule 60 Claims and decided some of the Contract Claims in the Trustee's favour and some in favour of BCI. BCI and the Trustee each appealed the Bankruptcy Court's adverse rulings on the Contract Claims to the SDNY. LBHI and the Committee did not appeal the Bankruptcy Court's ruling on the Rule 60 Claims.

In July 2012, the SDNY issued an opinion on the Contract Claims stating that BCI and BBPLC were entitled to receive:

-- $1.1bn (GBP0.7bn) from the Trustee in respect of 'clearance box' assets (Clearance Box Assets); and

-- Property held at various institutions in respect of the exchange traded derivatives accounts transferred to BCI in the Sale (ETD Margin).

The Trustee appealed to the Second Circuit. In August 2014, the Second Circuit affirmed the SDNY's decision as to the Clearance Box Assets and the ETD Margin.

In October 2014, the Trustee filed a motion with the SDNY to confirm the scope of the SDNY's judgement regarding the ETD Margin that BCI and BBPLC were entitled to receive. With that motion, the Trustee challenged the entitlement of BCI and BBPLC to approximately $1.1bn of assets that the Trustee asserted did not constitute ETD Margin. In April 2015, the SDNY ruled in favour of BCI and BBPLC, confirming that they were entitled to all of the ETD Margin.

In October 2014, the Trustee made a payment to BBPLC of $1.1bn (GBP0.7bn), fully discharging the Trustee's obligations in respect of the Clearance Box Assets.

Recent Developments

In December 2014, the Trustee requested that the US Supreme Court review the rulings of the SDNY and the Second Circuit regarding the ETD margin. In May 2015, the US Supreme Court published its denial of the Trustee's request.

In May 2015, the parties reached a settlement to resolve outstanding litigation between them relating to the Sale (Settlement). The Settlement was approved by the Bankruptcy Court on 29 June 2015. Pursuant to the Settlement, BBPLC has received all of the assets that the Trustee had asserted did not constitute ETD Margin with the exception of $80m (GBP51m) of assets that the Trustee is entitled to retain and approximately $0.3bn of ETD Margin still owed to BBPLC but expected to be received from third parties.

Financial Impact

As at 30 June 2015, BBPLC recognised as a financial asset on its balance sheet approximately $1.6bn (GBP1.0bn) in respect of assets to which BBPLC is entitled as part of the Sale and the Settlement but which it had not received as of that date. The financial asset reflects an increase of approximately $0.8bn (GBP0.5bn) recognised in profit and loss for the six month period ended 30 June 2015 as a result of the Settlement. Pursuant to the Settlement, the Trustee made a payment to BBPLC on 2 July 2015 of approximately $1.3bn (GBP0.9bn), representing the value of the ETD Margin held by the Trustee less the $80m of ETD Margin that the Trustee is entitled to retain under the terms of the Settlement, thereby fully discharging the Trustee's payment in respect of the ETD Margin or otherwise relating to the Sale. After application of this payment from the Trustee, BBPLC has a financial asset of approximately $0.3bn on its balance sheet in respect of ETD Margin still owed to BBPLC but expected to be received from third parties.

American Depositary Shares

BPLC, BBPLC and various former members of BPLC's Board of Directors have been named as defendants in a securities class action consolidated in the SDNY alleging misstatements and omissions in offering documents for certain American Depositary Shares issued by BBPLC in April 2008 with an original face amount of approximately $2.5 billion (the April 2008 Offering).

Background Information

The plaintiffs have asserted claims under the Securities Act of 1933, alleging that the offering documents for the April 2008 Offering contained misstatements and omissions concerning (amongst other things) BBPLC's portfolio of mortgage-related (including US subprime-related) securities, BBPLC's exposure to mortgage and credit market risk, and BBPLC's financial condition. The plaintiffs have not specifically alleged the amount of their damages.

In June 2014, the SDNY denied defendants' motion to dismiss the claims. The case is in discovery.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the action described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

BDC Finance L.L.C.

BDC Finance L.L.C. (BDC) filed a complaint against BBPLC in the NY Supreme Court alleging breach of contract in connection with a portfolio of total return swaps governed by an ISDA Master Agreement (collectively, the Agreement). A ruling was made against BBPLC, but the New York State Court of Appeals effectively reversed that ruling. Parties related to BDC have also sued BBPLC and BCI in Connecticut State Court in connection with BBPLC's conduct relating to the Agreement.

Background Information

In October 2008, BDC filed a complaint in the NY Supreme Court alleging that BBPLC breached the Agreement when it failed to transfer approximately $40m of alleged excess collateral in response to BDC's October 2008 demand (Demand).

BDC asserts that under the Agreement BBPLC was not entitled to dispute the Demand before transferring the alleged excess collateral and that even if the Agreement entitled BBPLC to dispute the Demand before making the transfer, BBPLC failed to dispute the Demand.

BDC demands damages totalling $298m plus attorneys' fees, expenses, and prejudgement interest.

In August 2012, the NY Supreme Court granted partial summary judgement for BBPLC, ruling that BBPLC was entitled to dispute the Demand before transferring the alleged excess collateral, but determining that a trial was required to determine whether BBPLC actually did so. The parties cross-appealed to the Appellate Division of the NY Supreme Court (NY Appellate Division).

In September 2011, BDC's investment advisor, BDCM Fund Adviser, L.L.C. and its parent company, Black Diamond Capital Holdings, L.L.C. also sued BBPLC and BCI in Connecticut State Court for unspecified damages allegedly resulting from BBPLC's conduct relating to the Agreement, asserting claims for violation of the Connecticut Unfair Trade Practices Act and tortious interference with business and prospective business relations. The parties have agreed to a stay of that case.

In October 2013, the NY Appellate Division reversed the NY Supreme Court's grant of partial summary judgement in favour of BBPLC, and instead granted BDC's motion for partial summary judgement, holding that BBPLC breached the Agreement. The NY Appellate Division did not rule on the amount of BDC's damages, which has not yet been determined by the NY Supreme Court.

Recent Developments

In February 2015, in connection with the BBPLC appeal of the October 2013 decision, the New York Court of Appeals modified the NY Appellate Division's grant of partial summary judgement to BDC, holding that summary judgement in either party's favour cannot be granted because a material issue of fact remains as to whether BBPLC breached the Agreement. The New York Court of Appeals ordered that the matter be referred back to the NY Supreme Court for further proceedings.

Claimed Amounts/Financial Impact

BDC has made claims against the Group totalling $298m plus attorneys' fees, expenses, and pre-judgement interest. This amount does not necessarily reflect the Group's potential financial exposure if a ruling were to be made against it.

Civil Actions in respect of the US Anti-Terrorism Act

In April 2015, an amended civil complaint was filed in the US Federal Court in the Eastern District of New York by a group of approximately 250 plaintiffs, alleging that the Group and a number of other banks engaged in a conspiracy and violated the US Anti-Terrorism Act (ATA) by facilitating US dollar denominated transactions for the Government of Iran and various Iranian banks, which in turn funded Hezbollah attacks that injured the plaintiffs' family members. Plaintiffs seek to recover for pain, suffering and mental anguish pursuant to the provisions of the ATA, which allows for the tripling of any proven damages.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect that these matters might have upon operating results, cash flows or the Group's financial position in any particular period.

Credit Default Swap (CDS) Antitrust Investigations and Civil Actions

The Commission and the DOJ-AD commenced investigations in the CDS market, in 2011 and 2009, respectively. In July 2013 the Commission addressed a Statement of Objections to BBPLC, 12 other banks, Markit Ltd. and ISDA. The case relates to concerns that certain banks took collective action to delay and prevent the emergence of exchange traded credit derivative products.

If the Commission does reach a decision in this matter it has indicated that it intends to impose sanctions. The Commission's sanctions can include fines. The DOJ-AD's investigation is a civil investigation and relates to similar issues. BPLC is also contesting a proposed, consolidated class action alleging similar issues that has been filed in the US. Discovery in the case is ongoing.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.

Portuguese Competition Authority Investigation

The Portuguese Competition Authority is investigating whether competition law was infringed by the exchange of information about retail credit products amongst 15 banks in Portugal, including the Group, over a period of 11 years with particular reference to mortgages, consumer lending and lending to small and medium enterprises. The Group is co-operating with the investigation.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of these matters or what effect that they may have upon operating results, cash flows or the Group's financial position in any particular period.

General

The Group is engaged in various other legal, competition and regulatory matters both in the UK and a number of overseas jurisdictions. It is subject to legal proceedings by and against the Group which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data protection, money laundering, employment, environmental and other statutory and common law issues.

The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged.

At the present time, the Group does not expect the ultimate resolution of any of these other matters to have a material adverse effect on its financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters will not be material to the Group's results of operations or cash flow for a particular period, depending on, amongst other things, the amount of the loss resulting from the matter(s) and the amount of income otherwise reported for the reporting period.

   18.         Related party transactions 

Related party transactions in the period ended 30 June 2015 were similar in nature to those disclosed in the Group's 2014 Annual Report. No related party transactions that have taken place in 2015 have materially affected the financial position or the performance of the Group during this period and there were no changes in the related parties transactions described in the 2014 Annual Report that could have a material effect on the financial position or performance of the Group in the current period.

   19.         Segmental reporting 
 
                                             Personal 
                                        and Corporate                  Africa       Investment 
Analysis of results by business               Banking  Barclaycard    Banking             Bank 
Half year ended 30.06.15                         GBPm         GBPm       GBPm             GBPm 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total income net of insurance claims            4,384        2,357      1,858            4,299 
Credit impairment charges and other 
 provisions                                     (178)        (563)      (193)              (1) 
-------------------------------------  --------------  -----------  ---------  --------------- 
Net operating income                            4,206        1,794      1,665            4,298 
Operating expenses                            (2,491)        (961)    (1,116)          (2,795) 
Costs to achieve                                (139)         (56)       (13)             (63) 
Other net (expense)/income(1)                    (48)           18          4                - 
-------------------------------------  --------------  -----------  ---------  --------------- 
Profit before tax                               1,528          795        540            1,440 
 
                                                GBPbn        GBPbn      GBPbn            GBPbn 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total assets                                    289.9         41.9       54.0            420.1 
-------------------------------------  --------------  -----------  ---------  --------------- 
 
                                                          Barclays   Barclays         Barclays 
Analysis of results by business           Head Office         Core   Non-Core   Group Adjusted 
Half year ended 30.06.15                         GBPm         GBPm       GBPm             GBPm 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total income net of insurance claims               42       12,940         42           12,982 
Credit impairment charges and other 
 provisions                                       (1)        (936)       (37)            (973) 
-------------------------------------  --------------  -----------  ---------  --------------- 
Net operating income                               41       12,004          5           12,009 
Operating expenses                               (85)      (7,448)      (498)          (7,946) 
Costs to achieve                                 (22)        (293)       (23)            (316) 
Other net income/(expense)(1)                       4         (22)          4             (18) 
-------------------------------------  --------------  -----------  ---------  --------------- 
(Loss)/profit before tax                         (62)        4,241      (512)            3,729 
 
                                                GBPbn        GBPbn      GBPbn            GBPbn 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total assets                                     52.6        858.5      338.2          1,196.7 
-------------------------------------  --------------  -----------  ---------  --------------- 
 
 
                                             Personal 
                                        and Corporate                  Africa       Investment 
Analysis of results by business               Banking  Barclaycard    Banking             Bank 
Half year ended 30.06.14                         GBPm         GBPm       GBPm             GBPm 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total income net of insurance claims            4,361        2,124      1,773            4,257 
Credit impairment charges and other 
 provisions                                     (230)        (537)      (196)               26 
-------------------------------------  --------------  -----------  ---------  --------------- 
Net operating income                            4,131        1,587      1,577            4,283 
Operating expenses                            (2,554)        (822)    (1,082)          (2,943) 
Costs to achieve                                (115)         (36)       (17)            (282) 
Other net income(1)                                 6           35          6                - 
-------------------------------------  --------------  -----------  ---------  --------------- 
Profit before tax                               1,468          764        484            1,058 
 
                                                GBPbn        GBPbn      GBPbn            GBPbn 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total assets                                    268.1         36.2       52.4            446.2 
-------------------------------------  --------------  -----------  ---------  --------------- 
 
                                                          Barclays   Barclays         Barclays 
Analysis of results by business           Head Office         Core   Non-Core   Group Adjusted 
Half year ended 30.06.14                         GBPm         GBPm       GBPm             GBPm 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total income net of insurance claims              159       12,674        658           13,332 
Credit impairment charges and other 
 provisions                                         -        (937)      (149)          (1,086) 
-------------------------------------  --------------  -----------  ---------  --------------- 
Net operating income                              159       11,737        509           12,246 
Operating expenses                               (91)      (7,491)      (893)          (8,383) 
Costs to achieve                                  (2)        (453)       (41)            (494) 
Other net income/(expense)(1)                       -           47       (66)             (20) 
-------------------------------------  --------------  -----------  ---------  --------------- 
Profit/(loss) before tax                           66        3,840      (491)            3,349 
 
                                                GBPbn        GBPbn      GBPbn            GBPbn 
-------------------------------------  --------------  -----------  ---------  --------------- 
Total assets                                     43.3        846.2      468.6          1,314.9 
-------------------------------------  --------------  -----------  ---------  --------------- 
 
 
 1   Other income/(expense) represents: share of post-tax results 
      of associates and joint ventures; profit or (loss) on disposal 
      of subsidiaries, associates and joint ventures; and gains on 
      acquisitions. 
 
 
                                                                                                   Gain on 
                                                                    Provisions for               valuation 
                                                                           ongoing                    of a 
                                                                    investigations               component 
                                                                    and litigation     Loss on      of the 
                                            Provision   Gain on US       primarily     sale of     defined 
Reconciliation of    Barclays                  for UK       Lehman     relating to         the  retirement    Barclays 
adjusted basis to       Group                customer  acquisition         Foreign     Spanish     benefit       Group 
statutory basis      adjusted  Own credit     redress       assets        Exchange    business   liability   statutory 
Half year ended 
30.06.15                 GBPm        GBPm        GBPm         GBPm            GBPm        GBPm        GBPm        GBPm 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Total income net 
 of insurance 
 claims                12,982         410           -          496               -           -           -      13,888 
Credit impairment 
 charges and 
 other provisions       (973)           -           -            -               -           -           -       (973) 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Net operating 
 income                12,009         410           -          496               -           -           -      12,915 
Operating 
 expenses             (7,946)           -     (1,032)            -           (800)           -         429     (9,349) 
Costs to achieve        (316)           -           -            -               -           -           -       (316) 
Other net 
 (expense)/income        (18)           -           -            -               -       (118)           -       (136) 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Profit/(loss)           3,729         410     (1,032)          496           (800)       (118)         429       3,114 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
 
Half year ended 
30.06.14                 GBPm        GBPm        GBPm         GBPm            GBPm        GBPm        GBPm        GBPm 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Total income net 
 of insurance 
 claims                13,332          52           -            -               -           -           -      13,384 
Credit impairment 
 charges and 
 other provisions     (1,086)           -           -            -               -           -           -     (1,086) 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Net operating 
 income                12,246          52           -            -               -           -           -      12,298 
Operating 
 expenses             (8,383)           -       (900)            -               -           -           -     (9,283) 
Costs to achieve        (494)           -           -            -               -           -           -       (494) 
Other net 
 (expense)/income        (20)           -           -            -               -           -           -        (20) 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
Profit/(loss)           3,349          52       (900)            -               -           -           -       2,501 
=================  ==========  ==========  ==========  ===========  ==============  ==========  ==========  ========== 
 
   20.         Barclays PLC parent balance sheet 
 
                                                As at     As at 
                                             30.06.15  31.12.14 
Assets                                           GBPm      GBPm 
===========================================  ========  ======== 
Investments in subsidiary                      34,303    33,743 
Loans and advances to subsidiary                5,318     2,866 
Derivative financial instrument                   194       313 
Other assets                                      184       174 
===========================================  ========  ======== 
Total assets                                   39,999    37,096 
 
Liabilities 
===========================================  ========  ======== 
Deposits from banks                               519       528 
Subordinated liabilities                          800       810 
Debt securities in issue                        4,518     2,056 
Other liabilities                                   -        10 
===========================================  ========  ======== 
Total liabilities                               5,837     3,404 
 
Equity 
===========================================  ========  ======== 
Called up share capital                         4,193     4,125 
Share premium account                          17,330    16,684 
Other equity instruments                        4,326     4,326 
Capital redemption reserve                        394       394 
Retained earnings                               7,919     8,163 
===========================================  ========  ======== 
Total shareholders' equity                     34,162    33,692 
===========================================  ========  ======== 
Total liabilities and shareholders' equity     39,999    37,096 
 

Investment in subsidiary

The investment in subsidiary of GBP34,303m (2014: GBP33,743m) represents investments made into Barclays Bank PLC, including GBP4,326m (2014: GBP4,326m) of AT1 securities. The increase of GBP560m during the period was due to a cash contribution made to Barclays Bank PLC.

Loans and advances to subsidiary and debt securities in issue

During H115, Barclays PLC issued $4bn of Fixed Rate Senior Notes, accounted for as debt securities in issue. The proceeds raised through these transactions were used to make $4bn of Fixed Rate Senior Loans to Barclays Bank PLC, with a ranking corresponding to the notes issued by Barclays PLC.

Shareholder Information

 
 
Results timetable(1)                                     Date 
=======================================================  =============  ========  =======  =========  ======== 
Ex-dividend date                                         6 August 2015 
Dividend Record date                                     7 August 2015 
Scrip reference share price set and made available to    13 August 2015 
shareholders 
Cut off time of 4.30 pm (London time) for the receipt    21 August 2015 
of Mandate Forms or Revocation Forms 
(as applicable) 
Dividend Payment date /first day of dealing in New       14 September 2015 
Shares 
Q3 2015 Interim Management Statement                     29 October 2015 
 
For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per 
 ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post 
 the second interim dividend on Monday, 14 September 2015 to ADR holders on the record at close 
 of business on Friday, 7 August 2015. The ex-dividend date will be Wednesday, 5 August 2015. 
 
 
                                                                                                Change(3) 
Exchange rates(2)                                             30.06.15  31.12.14  30.06.14  31.12.14  30.06.14 
===========================================================  =========  ========  ========  ========  ======== 
Period end - US$/GBP                                              1.57      1.56      1.71        1%      (8%) 
6 month average - US$/GBP                                         1.52      1.63      1.67      (7%)      (9%) 
3 month average - US$/GBP                                         1.53      1.58      1.68      (3%)      (9%) 
Period end - EUR/GBP                                              1.41      1.28      1.25       10%       13% 
6 month average - EUR/GBP                                         1.37      1.26      1.22        9%       12% 
3 month average - EUR/GBP                                         1.38      1.27      1.23        9%       12% 
Period end - ZAR/GBP                                             19.12     18.03     18.17        6%        5% 
6 month average - ZAR/GBP                                        18.16     17.85     17.82        2%        2% 
3 month average - ZAR/GBP                                        18.49     17.75     17.76        4%        4% 
 
Share price data                                              30.06.15  31.12.14  30.06.14 
===========================================================  =========  ========  ========  ========  ======== 
Barclays PLC (p)                                                260.50    243.50    212.80 
Barclays PLC number of shares (m)                               16,773    16,498    16,417 
Barclays Africa Group Limited (formerly Absa Group Limited) 
 (ZAR)                                                          182.98    182.00    161.50 
Barclays Africa Group Limited (formerly Absa Group Limited) 
 number of shares (m)                                              848       848       847 
 
 
For further information please contact 
 
Investor relations                                           Media relations 
===========================================================  ================================================= 
Kathryn McLeland +44 (0) 20 7116 4943                        Will Bowen +44 (0) 20 3134 7744 
 
More information on Barclays can be found on our website: 
 Barclays.com 
 
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: 0871 384 2055(4) from the UK or +44 121 415 7004 from 
 overseas. 
 
 
 
 
 1   Note that these announcement dates are provisional and subject 
      to change. Any changes to the Scrip Dividend Programme dates 
      will be made available at Barclays.com/dividends. 
 2   The average rates shown above are derived from daily spot rates 
      during the year. 
 3   The change is the impact to Sterling reported information. 
 4   Calls cost 8p per minute plus network extras. Lines open 8.30am 
      to 5.30pm UK time, Monday to Friday excluding UK public holidays. 
 

Listing

The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Trading on the New York Stock Exchange is in the form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary shares of 25p each and is evidenced by an ADR. The ADR depositary is JP Morgan Chase Bank, whose international telephone number is +1-651-453-2128, domestic telephone number is 1-800-990-1135 and address is JPMorgan Chase Bank, PO Box 64504, St. Paul, MN 55164-0504, USA.

Barclays PLC Scrip Dividend Programme

Shareholders may have their dividends reinvested in Barclays shares by joining the Barclays PLC Scrip Dividend Programme (the Programme). The Programme enables shareholders, if they wish, to receive new fully paid ordinary shares in Barclays PLC instead of a cash dividend, without incurring dealing costs or stamp duty.

For further details, including the full Terms and Conditions and information about how to join or leave the Programme, please visit Barclays.com/dividends. Alternatively contact our Registrar: Equiniti, by telephoning 0871 384 2055(1) from the UK or +44 121 415 7004 from overseas, or write to Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.

 
 1   Calls cost 8p per minute plus network extras. Lines open 8.30am 
      to 5.30pm UK time, Monday to Friday excluding UK public holidays. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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