SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BARCLAYS
PLC
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(Registrant)
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Date:
February 23, 2022
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By: /s/
Garth Wright
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Garth
Wright
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Assistant
Secretary
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Barclays PLC
2021 Results Announcement
31 December
2021
Table of Contents
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Results Announcement
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Page
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Notes
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Performance Highlights
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Group Chief Executive's Review
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Group Finance Director's Review
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Results by Business
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● Barclays
UK
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8
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● Barclays
International
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11
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● Head
Office
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16
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Quarterly Results Summary
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17
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Quarterly Results by Business
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18
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Performance Management
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● Margins
and Balances
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24
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● Remuneration
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26
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Risk Management
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● Risk
Management and Principal Risks
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28
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● Credit
Risk
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29
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● Market
Risk
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44
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● Treasury
and Capital Risk
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45
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Statement of Directors’ Responsibilities
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57
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Condensed Consolidated Financial Statements
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58
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Financial Statement Notes
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63
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Appendix: Non-IFRS Performance Measures
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69
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Shareholder Information
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75
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BARCLAYS PLC, 1
CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44
(0) 20 7116 1000. COMPANY NO. 48839.
This document contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended)
The
terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the year ended 31 December 2021 to the
corresponding 12 months of 2020 and balance sheet analysis as at 31
December 2021 with comparatives relating to 31 December 2020. The
abbreviations ‘£m’ and ‘£bn’
represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations ‘$m’ and
‘$bn’ represent millions and thousands of millions of
US Dollars respectively; and the abbreviations
‘€m’ and ‘€bn’ represent
millions and thousands of millions of Euros
respectively.
There
are a number of key judgement areas, for example impairment
calculations, which are based on models and which are subject to
ongoing adjustment and modifications. Reported numbers reflect best
estimates and judgements at the given point in time.
Relevant terms that are used in this document but are not defined
under applicable regulatory guidance or International Financial
Reporting Standards (IFRS) are explained in the results glossary
that can be accessed at home.barclays/investor-relations/reports-and-events/latest-financial-results.
The
information in this document, which was approved by the Board of
Directors on 22 February 2022, does not comprise statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2021, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These
results will be furnished as a Form 6-K to the US Securities and
Exchange Commission (SEC) as soon as practicable following their
publication. Once furnished with the SEC, a copy of the Form 6-K
will be available from the SEC’s website at www.sec.gov.
Barclays
is a frequent issuer in the debt capital markets and regularly
meets with investors via formal road-shows and other ad hoc
meetings. Consistent with its usual practice, Barclays expects that
from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays’
management believes that the non-IFRS performance measures included
in this document provide valuable information to the readers of the
financial statements as they enable the reader to identify a more
consistent basis for comparing the businesses’ performance
between financial periods and provide more detail concerning the
elements of performance which the managers of these businesses are
most directly able to influence or are relevant for an assessment
of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by
Barclays’ management. However, any non-IFRS performance
measures in this document are not a substitute for IFRS measures
and readers should consider the IFRS measures as well. Refer to the
appendix on pages 69 to 74 for further information and calculations
of non-IFRS performance measures included throughout this document,
and the most directly comparable IFRS measures.
Forward-looking statements
This
document contains certain forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to the Group. Barclays cautions readers that
no forward-looking statement is a guarantee of future performance
and that actual results or other financial condition or performance
measures could differ materially from those contained in the
forward-looking statements. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements sometimes use words
such as ‘may’, ‘will’, ‘seek’,
‘continue’, ‘aim’,
‘anticipate’, ‘target’,
‘projected’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’,
‘goal’, ‘believe’, ‘achieve’ or
other words of similar meaning. Forward-looking statements can be
made in writing but also may be made verbally by members of the
management of the Group (including, without limitation, during
management presentations to financial analysts) in connection with
this document. Examples of forward-looking statements include,
among others, statements or guidance regarding or relating to the
Group’s future financial position, income growth, assets,
impairment charges, provisions, business strategy, capital,
leverage and other regulatory ratios, capital distributions
(including dividend pay-out ratios and expected payment
strategies), projected levels of growth in the banking and
financial markets, projected costs or savings, any commitments and
targets (including, without limitation, environmental, social and
governance (ESG) commitments and targets), estimates of capital
expenditures, plans and objectives for future operations, projected
employee numbers, IFRS impacts and other statements that are not
historical fact. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances. The forward-looking statements speak only as at
the date on which they are made. Forward-looking statements may be
affected by a number of factors, including, without limitation:
changes in legislation, the development of standards and
interpretations under IFRS, including evolving practices with
regard to the interpretation and application of accounting and
regulatory standards, emerging and developing ESG reporting
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,
the Group’s ability along with governments and other
stakeholders to measure, manage and mitigate the impacts of climate
change effectively, environmental, social and geopolitical risks,
and the impact of competition. In addition, factors including (but
not limited to) the following may have an effect: capital, leverage
and other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions; the effects of any volatility in credit markets; market
related risks such as changes in interest rates and foreign
exchange rates; effects of changes in valuation of credit market
exposures; changes in valuation of issued securities; volatility in
capital markets; changes in credit ratings of any entity within the
Group or any securities issued by such entities; direct and
indirect impacts of the coronavirus (COVID-19) pandemic;
instability as a result of the UK’s exit from the European
Union (“EU”), the effects of the EU-UK Trade and
Cooperation Agreement and the disruption that may subsequently
result in the UK and globally; the risk of cyber-attacks,
information or security breaches or technology failures on the
Group’s reputation, business or operations; and the success
of future acquisitions, disposals and other strategic transactions.
A number of these influences and factors are beyond the
Group’s control. As a result, the Group’s actual
financial position, future results, capital distributions, capital,
leverage or other regulatory ratios or other financial and
non-financial metrics or performance measures or ability to meet
commitments and targets may differ materially from the statements
or guidance set forth in the Group’s forward-looking
statements. Additional risks and factors which may impact the
Group’s future financial condition and performance are
identified in Barclays PLC’s filings with the SEC (including,
without limitation, Barclays PLC’s Annual Report on Form 20-F
for the fiscal year ended 31 December 2021), which are available on
the SEC’s website at www.sec.gov.
Subject
to Barclays’ obligations under the applicable laws and
regulations of any relevant jurisdiction, (including, without
limitation, the UK and the US), in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Performance Highlights
Barclays delivered a record Group
profit before tax of £8.4bn, and return on tangible equity
(RoTE) of 13.4%, resulting in a meaningful increase in
distributions equivalent to 15p per share1
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C. S. Venkatakrishnan, Group Chief Executive,
commented
“Barclays demonstrated a clear and sustainable path to growth
over the course of 2021, delivering double-digit RoTE across our
operating businesses, and returning £2.51 billion of excess
capital. Our strategic priorities will continue to develop the
diversified business model that we have established, investing in
advanced technology capabilities in our consumer businesses,
delivering sustainable growth across our global Corporate and
Investment Bank, and reinforcing our commitment to aiding the
transition to a low-carbon economy.”
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Key financial metrics:
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Income
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Cost: income ratio
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Profit before tax
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RoTE
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EPS
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CET1
ratio
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TNAV per share
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Total capital return
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2021
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£21.9bn
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66%
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£8.4bn
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13.4%
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37.5p
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15.1%
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292p
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15p
equivalent per share1
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Q421
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£5.2bn
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72%
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£1.5bn
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9.3%
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6.6p
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Group Finance Director
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Tushar
Morzaria has decided to retire as Group Finance Director and as an
Executive Director of Barclays PLC and Barclays Bank PLC, in each
case with effect from 22 April 2022. He will be succeeded by Anna
Cross, currently Deputy Group Finance Director, who will take up
the role of Group Finance Director subject to regulatory approval,
and join the Boards of Barclays PLC and Barclays Bank PLC as an
Executive Director, in each case with effect from 23 April 2022.
Anna will also join the Group Executive Committee, reporting to
Group Chief Executive C.S. Venkatakrishnan.
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2021 performance highlights:
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All operating divisions delivered double-digit returns:
Barclays UK generated a RoTE of 17.6% (2020: 3.2%) and Barclays
International a RoTE of 14.9% (2020: 7.1%), including a 14.9%
(2020: 9.5%) RoTE in the Corporate and Investment Bank (CIB) and
15.0% (2020: (7.5)%) RoTE in Consumer, Cards and Payments
(CC&P)
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Record CIB profitability: profit before tax of £5.8bn,
including record Investment Banking fees and Equities
income2
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Consumer and payments businesses benefitted from economic
recovery: delivered robust UK mortgage lending and deposit
growth. Experienced positive trends in UK and US consumer spending
and payments volumes
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Cost discipline enabled investment for growth: excluding
structural cost actions and performance costs, Group total
operating expenses were flat at £12.0bn, as efficiency savings
were reinvested to drive income growth
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Net credit impairment release: £0.7bn release (2020:
£4.8bn charge) driven by an improved macroeconomic outlook,
reduced unsecured lending balances and benign credit environment.
Coverage ratios on unsecured lending remain higher than
pre-COVID-19 pandemic levels
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Strong capital: Common equity tier 1 (CET1) ratio of 15.1%
(December 2020: 15.1%) and tangible net asset value (TNAV) per
share increased 9% to 292p
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Increased capital distributions: total dividend for 2021 of
6.0p per share (2020: 1.0p), including a 4.0p per share 2021 full
year dividend. Intend to initiate a share buyback of up to
£1.0bn, bringing the total share buybacks announced in
relation to 2021 to £1.5bn and total capital return equivalent
to 15p per share
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Outlook:
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Income: Barclays’ diversified income streams position
the Group well for the ongoing economic recovery and rising
interest rates
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Impairment: impairment charge is expected to remain below
pre-COVID-19 pandemic levels in coming quarters given reduced
unsecured lending balances and an improved macroeconomic
outlook
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Costs: Barclays will continue to drive efficiency savings,
however, inflationary pressures and planned investment spend are
expected to result in FY22 costs, excluding structural cost actions
and performance costs being modestly higher than
£12.0bn3
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Capital: the CET1 ratio is expected to be impacted by
c.80bps of regulatory changes which took effect from 1 January
2022. The announced share buyback of up to £1.0bn will also
reduce the CET1 ratio by c.30bps
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Capital returns: capital returns policy incorporates a
progressive ordinary dividend, supplemented as appropriate,
including with share buybacks
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1
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Includes total
dividend for 2021 of 6.0p per share and total share buybacks
announced in relation to 2021 of £1.5bn.
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2
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On a comparable
basis, period covering 2014 – 2021. Pre 2014 financials were
not restated following re-segmentation in 2016.
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3
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Group cost
outlook is based on an average rate of 1.35 (USD/GBP) in 2022 and
subject to foreign currency movements.
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Barclays Group results
for the year ended
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31.12.21
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31.12.20
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£m
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£m
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% Change
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Net interest income
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8,073
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8,122
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(1)
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Net fee, commission and other income
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13,867
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13,644
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2
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Total income
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21,940
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21,766
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1
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Credit impairment releases/(charges)
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653
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(4,838)
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Net operating income
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22,593
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16,928
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33
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Operating costs
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(14,092)
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(13,434)
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(5)
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UK bank levy
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(170)
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(299)
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43
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Litigation and conduct
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(177)
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(153)
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(16)
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Total operating expenses
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(14,439)
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(13,886)
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(4)
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Other net income
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260
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23
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Profit before tax
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8,414
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3,065
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Tax charge
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(1,188)
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(604)
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(97)
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Profit after tax
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7,226
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2,461
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Non-controlling interests
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(47)
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(78)
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40
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Other equity instrument holders
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(804)
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(857)
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6
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Attributable profit
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6,375
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1,526
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Performance measures
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Return on average tangible shareholders' equity
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13.4%
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3.2%
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Average tangible shareholders' equity (£bn)
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47.4
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48.3
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Cost: income ratio
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66%
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64%
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Loan loss rate (bps)
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—
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138
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Basic earnings per share
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37.5p
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8.8p
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Dividend per share
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6.0p
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1.0p
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Share
buyback announced1
(£m)
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1,500
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700
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Total payout equivalent per share
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15.0p
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5.0p
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Basic weighted average number of shares (m)
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16,985
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17,300
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(2)
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Period end number of shares (m)
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16,752
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17,359
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(3)
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Balance sheet and capital management2
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£bn
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£bn
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Loans and advances at amortised cost
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361.5
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342.6
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6
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Loans and advances at amortised cost impairment coverage
ratio
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1.6%
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2.4%
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Deposits at amortised cost
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519.4
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481.0
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8
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Tangible net asset value per share
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292p
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269p
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9
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Common equity tier 1 ratio
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15.1%
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15.1%
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Common equity tier 1 capital
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47.5
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46.3
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Risk weighted assets
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314.1
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306.2
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Average UK leverage ratio
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4.9%
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5.0%
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UK leverage ratio
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5.3%
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5.3%
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Funding and liquidity
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Group liquidity pool (£bn)
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291
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266
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9
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Liquidity coverage ratio
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168%
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162%
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Loan: deposit ratio
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70%
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71%
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1
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Barclays
intends to initiate a share buyback of up to £1.0bn, which is
expected to commence in Q122. This brings the total share buybacks
announced in relation to FY21 to £1.5bn.
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2
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Refer to pages
48 to 53 for further information on how capital, Risk Weighted
Assets (RWAs) and leverage are calculated.
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Group Chief Executive Review
“2021 is the year in which Barclays demonstrated the results
of the strategy we set out in 2016. Having set out to build a bank
able to deliver double-digit returns through the cycle, we
delivered a double-digit RoTE of 13.4%, a resilient, growing and
well-capitalised balance sheet with a CET1 ratio of 15.1%, and a
strong profit before tax of £8.4 billion even amidst the
uncertainty of the global COVID-19 pandemic. Barclays UK delivered
a strong double-digit RoTE, as did the Corporate and Investment
Bank (CIB) and our Consumer, Cards and Payments (CC&P)
businesses within Barclays International. The CIB delivered its
strongest ever profit before tax of £5.8 billion, whilst
CC&P and Barclays UK significantly increased their
profitability.
I am proud that we have delivered this resilient performance while
continuing to support our clients and customers through another
year of COVID-19 related challenges. Taken together, our 2021
performance has enabled us meaningfully to increase returns to our
shareholders, with £2.5 billion of excess capital returned via
a total dividend of 6.0 pence per share and £1.5 billion of
announced share buybacks.
Looking ahead into 2022, we are focussed on delivering consistent
performance and returns across our businesses, supported by robust
management of our balance sheet, costs and controls. We recognise
that the economic environment is more than usually uncertain, with
rising inflation rates and tighter monetary policy, while many
parts of society continue to recover from the severe social and
economic effects of the COVID-19 pandemic.
In addition, we seek to manage through, and take advantage of,
three long-term changes taking place in financial services. They
are:
1. Next-generation consumer financial services
Digitisation has liberated finance, providing our customers and
clients with an explosion of cheaper and better products and
services, and a more seamless and efficient user experience. We see
the dominant business challenge for the next decade as continuing
to transform Barclays to deliver services digitally, with ease,
flexibility and adaptability. We will need to compete not just with
other banks for talent and ideas, but with well-funded, superbly
equipped and lightly regulated – therefore more fleet-footed
– technology firms. This is particularly true in our consumer
businesses, where we have set a clear priority to deliver next generation, digitised consumer
financial services. Across Barclays UK and CC&P, we will
continue to invest heavily in our digital capabilities as a means
of delivering better products and services, more efficiently, and
with higher profitability. As an example, we have collaborated with
the world’s largest retailer, Amazon, to bring a digital
‘Buy Now Pay Later’ product to users in Germany and the
UK. We provide customers with accessible financing, backed by the
consumer protection and trustworthiness of engaging with a
regulated lender. This exemplifies for me how we should be
operating: innovation, founded in trust and
responsibility.
In the move to digitise finance, we must make provision for those
who are not using technology to access services. That includes
access to banking and cash in the UK, where our active
participation has helped the Cash Action Group create shared
solutions to this social challenge.
2. Growth of the public and private global capital
markets
Barclays is the sixth largest global investment bank1, and the largest not
domiciled in the US. It is therefore a competitive strength for us
that we are one of the few firms that can afford to offer these
services and also be successful at it. The value of our franchise
depends on the growth and health of the global capital markets.
Combining the total market capitalisation of those securities
around the world, we have seen roughly 50% growth in the value of
equities and bonds outstanding over the last three years alone,
increasing from $123 trillion in 2018 to over $193 trillion
today2.
As the public markets have grown significantly, so too have the
private ones, at a greater pace. Since 2018, total assets under
management in the private markets have grown more than 60% from
$6.0 trillion to $9.8 trillion3. The largest private
equity and credit funds dominate these markets. They are among our
biggest clients, requiring innovative financial structures to
support their own sophisticated needs.
Capital Markets are cyclical and can be volatile. We are focused on
building a business that will deliver sustainable and diversified
performance. Through 2021 we have been able to grow our revenues in
Investment Banking fees and Equities. Our performance has benefited
not just from higher market activity, but by hiring talented
traders and bankers, investment in systems and technology, and a
consistent commitment to Investment Banking, after a period of
wavering a decade ago.
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1
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Top 6 Global
Investment Bank supported by #6 ranking in Investment Banking
(Source: Dealogic) and #6 ranking in Global Markets (Source:
Coalition Greenwich, FY21 Preliminary Competitor
analysis).
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2
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Bonds represent
debt issuance outstanding for Investment grade (Source: Bloomberg
Barclays Global Aggregate Index LEGATRUU) and high yield (Source:
Bloomberg Barclays Global High Yield Index LG30TRUU). Equities
represents the market capitalisation from all shares outstanding
(Source: Bloomberg WCAUWRLD Index).
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3
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Source: Preqin
“Future of Alternatives 2025” data excluding Hedge
Funds, period covering 2018 – H121.
|
Building on our culture of innovation and quality, we want to
sustain and grow our market share and diversify our income to
protect earnings even during weaker periods in the cycle. Our
strategic priority is to deliver
sustainable growth in the Corporate and Investment Bank. As
in the consumer business, broad technological prowess is essential.
We want to be a best-in-class electronic bank to our Global Markets
clients. We will continue to expand in prime financing, to grow our
share in securitised products and take our Investment Banking strength into
growing sectors such as Technology and Healthcare. In the Corporate
Bank, we want to diversify our revenue by growing our market share
in Europe and the US, and by growing Transaction
Banking.
3. Transition to a low-carbon economy
We may now be on the threshold of an era of innovation that aims to
halt and negate the deleterious effects on the earth of greenhouse
gas emissions. This is the drive to net-zero, limiting the use of
fossil fuels, emphasising renewable energy and reversing the
post-industrial growth in greenhouse gas emissions. Financial firms
have a central role to play in this transition, providing credit
and intermediating investment. The scale of the investment needed
is vast, estimated to be over $3-5 trillion1 per year over the
next 30 years, drawing on global capital markets.
Our strategic priority is to capture opportunities as we transition to a
low-carbon economy. Barclays must have a constructive role
in managing the transition. As this fundamental re-organisation of
the global economy takes place, affecting every business in every
sector, we want to capture opportunity for our company in meeting
the demand for climate change related financing. That means being
the trusted partner for our customers and clients as they
transition, advising and supporting them as they adapt their
business models and lifestyles to become more sustainable. It
requires us to use our investment banking and capital markets
expertise to help build low-carbon energy capacity. It necessitates
developing banking products that help consumers and small
businesses make greener choices, and invest our own equity capital
in the young companies that are inventing the low-carbon emission
technologies of tomorrow.
As we look forward, there also remains a continuing need for
Barclays to support inclusion in all its forms, educating and
employing the disadvantaged, improving financial literacy,
protecting the vulnerable from financial exploitation, and
sustaining the economic life of the societies we
serve.
With a clear strategy and demonstrable resilience, we are
well-positioned to take advantage of these changes that will shape
our industry through 2022 and beyond. In doing so we seek to remain
faithful to the principles of our Quaker founders in 1690 -
integrity, community and stewardship.”
C. S. Venkatakrishnan, Group Chief Executive
|
1
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$3-5 trillion
as estimated in the GFMA/BCG (Global Financial Markets Association/
Boston Consulting Group) Climate Finance Markets and the Real
Economy report, December 2020.
|
Group Finance Director’s Review
Group performance1
|
●
|
Barclays’
diversified business model delivered a record profit before tax of
£8,414m (2020: £3,065m), RoTE of 13.4% (2020: 3.2%) and
earnings per share (EPS) of 37.5p (2020: 8.8p)
|
|
●
|
Total
income increased to £21,940m (2020: £21,766m). Barclays
UK income increased 3%. Barclays International income decreased 2%,
with CIB income down 1% and CC&P income down 3%. Excluding the
impact of the 8% depreciation of average USD against GBP, total
income was up, reflecting Barclays’ diversified income
streams
|
|
●
|
Credit
impairment net release of £653m (2020: £4,838m charge).
The net release included a reversal of £1.3bn in non-default
charges, primarily reflecting the improved macroeconomic outlook.
Excluding this reversal, the charge was £0.7bn, reflecting
reduced unsecured lending balances and low delinquency. Economic
uncertainty adjustments have been maintained firstly in respect of
customers and clients who may be more vulnerable to the withdrawal
of support schemes and emerging economic uncertainty, and secondly,
model uncertainty which does not capture certain macroeconomic and
risk parameter uncertainties. The reduction in unsecured lending
balances and growth in secured balances have contributed to a
decrease in the Group’s loan coverage ratio to 1.6% (December
2020: 2.4%). Coverage ratios in unsecured loan portfolios remained
elevated compared to pre-COVID-19 pandemic levels
|
|
●
|
Total
operating expenses increased 4% to £14,439m, due to structural
cost actions of £648m primarily relating to the real estate
review in Q221 and Barclays UK transformation costs in Q421, higher
performance costs that reflect improved returns, and continued
investment and business growth. This was partially offset by the
benefit from the depreciation of average USD against GBP,
efficiency savings and a lower UK bank levy charge, primarily due
to the reduced rate. This resulted in a cost: income ratio of 66%
(2020: 64%). Excluding structural cost actions of £648m (2020:
£368m), operating expenses would have been £13,791m
(2020: £13,518m), resulting in a cost: income ratio of 63%
(2020: 62%)
|
|
●
|
The
effective tax rate was 14.1% (2020: 19.7%). This reflects a
£462m tax benefit recognised for the re-measurement of the
Group’s UK deferred tax assets (DTAs) as a result of the
enactment in 2021 of a UK corporation tax rate increase from 19% to
25% effective from 1 April 2023
|
|
●
|
Attributable
profit was £6,375m (2020: £1,526m)
|
|
●
|
Following
the completion of the £700m share buyback announced with FY20
results and the £500m share buyback announced with H121
results, the period end number of shares was 16,752m (December
2020: 17,359m)
|
|
●
|
Total
assets increased to £1,384bn (December 2020: £1,350bn)
reflecting a £47bn increase in cash at central banks following
strong client deposit growth and a £19bn increase in loans and
advances at amortised cost due to increased customer
lending
|
|
●
|
TNAV
per share increased to 292p (December 2020: 269p) primarily
reflecting 37.5p of EPS, partially offset by negative reserve
movements
|
Group capital and leverage
|
●
|
The
CET1 ratio was stable at 15.1% (December 2020: 15.1%)
|
|
|
–
|
CET1
capital increased by £1.2bn to £47.5bn as profit before
tax of £8.4bn was partially offset by share buybacks, 2021
dividends and equity coupons paid and foreseen as well as pensions
deficit contribution payments
|
|
|
–
|
RWAs
increased £7.9bn to £314.1bn primarily resulting from the
recalibration of the modelled market risk stress period, increased
client and trading activity within CIB and growth in mortgages
within Barclays UK, partially offset by lower unsecured
balances
|
|
●
|
The
average UK leverage ratio decreased to 4.9% (December 2020: 5.0%).
The average leverage exposure increased by £80.2bn to
£1,227.1bn largely driven by an increase in securities
financing transactions (SFTs), potential future exposure (PFE) on
derivatives and trading portfolio assets (TPAs)
|
|
1
|
The 8%
depreciation of average USD against GBP adversely impacted income
and profits and positively impacted total operating
expenses.
|
Group funding and liquidity
|
●
|
The
liquidity pool was £291bn (December 2020: £266bn) and the
liquidity coverage ratio remained significantly above the 100%
regulatory requirement at 168% (December 2020: 162%), equivalent to
a surplus of £116bn (December 2020: £99bn). The increase
in the pool and surplus was driven by deposit growth, borrowing
from the Bank of England’s Term Funding Scheme with
additional incentives for small and medium-sized enterprises (SMEs)
and an increase in wholesale funding, which were partly offset by
an increase in business funding consumption
|
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£167.5bn (December 2020: £145.0bn). The Group issued
£11.0bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year. The Group has a strong MREL
position with a ratio of 8% of CRR leverage exposures which is in
excess of its regulatory requirement of 6.9%
|
Other matters
|
●
|
The UK
Government has announced that the banking surcharge rate will be
reduced from 8% to 3% effective from 1 April 2023. This change has
been substantively enacted in Q122 at which point the Group’s
UK DTAs will be re-measured and decreased with a resulting tax
charge. If this had been enacted by 31 December 2021 it would have
resulted in the Group’s UK DTAs being re-measured and
decreasing with a tax charge in the income statement of £346m
and a tax credit within other comprehensive income of
£87m
|
Capital distributions
|
●
|
Barclays
is committed to maintaining an appropriate balance between
delivering attractive total cash returns to shareholders,
investment in the business and maintaining a strong capital
position. Barclays pays a progressive ordinary dividend, taking
into account these objectives and the earnings outlook of the
Group. The Board will also continue to supplement the ordinary
dividends as appropriate, including with share
buybacks
|
|
●
|
Barclays
announces a total dividend for 2021 of 6.0p per share (2020: 1.0p),
including a 2021 full year dividend of 4.0p per share to be paid on
5 April 2022. Dividends will continue to be paid semi-annually,
with the half year dividend expected to represent, under normal
circumstances, around one-third of the total dividend for the
year
|
|
●
|
Barclays
intends to initiate a share buyback of up to £1.0bn, which is
expected to commence in Q122. This brings the total share buybacks
announced in relation to FY21 to £1.5bn
|
|
●
|
The
6.0p total dividend per share and total share buybacks of
£1.5bn in relation to FY21 bring the total capital return
equivalent to 15p per share
|
Group targets
Barclays
continues to target the following over the medium
term:
|
●
|
Returns: RoTE of greater than 10%
|
|
●
|
Cost efficiency: cost: income ratio below 60%
|
|
●
|
Capital adequacy: CET1 ratio in the range of
13-14%
|
Tushar Morzaria, Group Finance Director
Results by Business
|
Barclays UK
|
Year ended
|
Year ended
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
5,202
|
5,234
|
(1)
|
|
Net fee, commission and other income
|
1,334
|
1,113
|
20
|
|
Total income
|
6,536
|
6,347
|
3
|
|
Credit impairment releases/(charges)
|
365
|
(1,467)
|
|
|
Net operating income
|
6,901
|
4,880
|
41
|
|
Operating costs
|
(4,357)
|
(4,270)
|
(2)
|
|
UK bank levy
|
(36)
|
(50)
|
28
|
|
Litigation and conduct
|
(37)
|
(32)
|
(16)
|
|
Total operating expenses
|
(4,430)
|
(4,352)
|
(2)
|
|
Other net income
|
—
|
18
|
|
|
Profit before tax
|
2,471
|
546
|
|
|
Attributable profit
|
1,756
|
325
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
208.8
|
205.4
|
|
|
Total assets
|
321.2
|
289.1
|
|
|
Customer deposits at amortised cost
|
260.6
|
240.5
|
|
|
Loan: deposit ratio
|
85%
|
89%
|
|
|
Risk weighted assets
|
72.3
|
73.7
|
|
|
Period end allocated tangible equity
|
10.0
|
9.7
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
Average
loan to value of mortgage portfolio1
|
51%
|
51%
|
|
|
Average
loan to value of new mortgage lending1
|
70%
|
68%
|
|
|
Number of branches
|
666
|
859
|
|
|
Mobile banking active customers
|
9.7m
|
9.2m
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
1.0%
|
1.7%
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
17.6%
|
3.2%
|
|
|
Average allocated tangible equity (£bn)
|
10.0
|
10.1
|
|
|
Cost: income ratio
|
68%
|
69%
|
|
|
Loan loss rate (bps)
|
—
|
68
|
|
|
Net interest margin
|
2.52%
|
2.61%
|
|
|
1
|
Average loan to
value (LTV) of mortgages is balance weighted and reflects both
residential and buy-to-let (BTL) mortgage portfolios within the
Home Loans portfolio.
|
|
Analysis of Barclays UK
|
Year ended
|
Year ended
|
|
|
31.12.21
|
31.12.20
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Personal Banking
|
3,883
|
3,522
|
10
|
|
Barclaycard Consumer UK
|
1,250
|
1,519
|
(18)
|
|
Business Banking
|
1,403
|
1,306
|
7
|
|
Total income
|
6,536
|
6,347
|
3
|
|
|
|
|
|
|
Analysis of credit impairment releases/(charges)
|
|
|
|
|
Personal Banking
|
28
|
(380)
|
|
|
Barclaycard Consumer UK
|
404
|
(881)
|
|
|
Business Banking
|
(67)
|
(206)
|
67
|
|
Total credit impairment releases/(charges)
|
365
|
(1,467)
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
|
Personal Banking
|
165.4
|
157.3
|
|
|
Barclaycard Consumer UK
|
8.7
|
9.9
|
|
|
Business Banking
|
34.7
|
38.2
|
|
|
Total loans and advances to customers at amortised
cost
|
208.8
|
205.4
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
Personal Banking
|
196.4
|
179.7
|
|
|
Barclaycard Consumer UK
|
—
|
0.1
|
|
|
Business Banking
|
64.2
|
60.7
|
|
|
Total customer deposits at amortised cost
|
260.6
|
240.5
|
|
Barclays
UK delivered a strong FY21 RoTE of 17.6%, reflecting improved
income performance across Personal Banking and Business Banking,
and a net impairment release following improvements in the UK
macroeconomic outlook. Structural cost actions of £288m (2020:
£150m) have been taken to reduce the cost base over time
through efficiency savings. Balances continued to grow, with
increased mortgage lending of £9.9bn and deposits of
£20.1bn, further adding to a strong liquidity
position.
2021 compared to 2020
Income statement
|
●
|
Profit
before tax increased to £2,471m (2020: £546m). RoTE was
17.6% (2020: 3.2%) reflecting an improving UK operating
environment
|
|
●
|
Total
income increased 3% to £6,536m. Net interest income reduced 1%
to £5,202m with a net interest margin (NIM) of 2.52% (2020:
2.61%) as strong customer retention and improved margins in
mortgages were more than offset by lower unsecured lending
balances. Net fee, commission and other income increased 20% to
£1,334m, returning back towards pre-COVID-19 pandemic
levels
|
|
|
–
|
Personal
Banking income increased 10% to £3,883m, reflecting strong
growth in mortgages, alongside improved margins during the first
three quarters, balance growth in deposits and the non-recurrence
of COVID-19 customer support actions. This was partially offset by
deposit margin compression from lower interest rates and lower
unsecured lending balances
|
|
|
–
|
Barclaycard
Consumer UK income decreased 18% to £1,250m, as repayments by
customers and reduced borrowing resulted in a lower level of
interest earning lending (IEL) balances. However, IEL balances
began to stabilise throughout H221
|
|
|
–
|
Business
Banking income increased 7% to £1,403m due to lending and
deposit balance growth from £12.1bn of government scheme
lending and the non-recurrence of COVID-19 and related customer
support actions, partially offset by deposit margin compression
from lower interest rates
|
|
●
|
Credit
impairment net release of £365m (2020: £1,467m charge)
was driven by an improved macroeconomic outlook and lower unsecured
lending balances due to customer repayments and lower
delinquencies. As at 31 December 2021, 30 and 90 day arrears rates
in UK cards were 1.0% (Q420: 1.7%) and 0.2% (Q420: 0.8%)
respectively
|
|
●
|
Total
operating expenses increased 2% to £4,430m primarily
reflecting increased investment spend, including structural cost
actions of £288m (2020: £150m). Excluding structural cost
actions, operating expenses would have been broadly stable at
£4,142m (2020: £4,202m), with higher operational and
customer service costs, primarily driven by increased volumes,
offset by efficiency savings
|
Balance sheet
|
●
|
Loans
and advances to customers at amortised cost increased 2% to
£208.8bn predominantly from £9.9bn of mortgage growth
following a strong flow of new applications as well as strong
customer retention. This was offset by a £2.2bn decrease in
the Education, Social Housing and Local Authority (ESHLA) portfolio
carrying value as interest rate yield curves steepened, £1.6bn
lower unsecured lending balances and £1.3bn lower Business
Banking balances as repayment of government scheme lending
commences
|
|
●
|
Customer
deposits at amortised cost increased 8% to £260.6bn reflecting
an increase of £16.7bn and £3.5bn in Personal Banking and
Business Banking respectively, further strengthening the liquidity
position and contributing
to a loan: deposit ratio of 85% (December 2020:
89%)
|
|
●
|
RWAs
decreased to £72.3bn (December 2020: £73.7bn) driven by a
reduction in unsecured lending and the value of the ESHLA
portfolio, partially offset by growth in mortgages
|
|
Barclays International
|
Year ended
|
Year ended
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
3,263
|
3,282
|
(1)
|
|
Net trading income
|
5,693
|
6,920
|
(18)
|
|
Net fee, commission and other income
|
6,709
|
5,719
|
17
|
|
Total income
|
15,665
|
15,921
|
(2)
|
|
Credit impairment releases/(charges)
|
288
|
(3,280)
|
|
|
Net operating income
|
15,953
|
12,641
|
26
|
|
Operating costs
|
(9,076)
|
(8,765)
|
(4)
|
|
UK bank levy
|
(134)
|
(240)
|
44
|
|
Litigation and conduct
|
(125)
|
(48)
|
|
|
Total operating expenses
|
(9,335)
|
(9,053)
|
(3)
|
|
Other net income
|
40
|
28
|
43
|
|
Profit before tax
|
6,658
|
3,616
|
84
|
|
Attributable profit
|
4,817
|
2,220
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
133.8
|
122.7
|
|
|
Trading portfolio assets
|
146.9
|
127.7
|
|
|
Derivative financial instrument assets
|
261.5
|
301.8
|
|
|
Financial assets at fair value through the income
statement
|
188.2
|
170.7
|
|
|
Cash collateral and settlement balances
|
88.1
|
97.5
|
|
|
Other assets
|
225.6
|
221.4
|
|
|
Total assets
|
1,044.1
|
1,041.8
|
|
|
Deposits at amortised cost
|
258.8
|
240.5
|
|
|
Derivative financial instrument liabilities
|
256.4
|
300.4
|
|
|
Loan: deposit ratio
|
52%
|
51%
|
|
|
Risk weighted assets
|
230.9
|
222.3
|
|
|
Period end allocated tangible equity
|
33.2
|
30.2
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
14.9%
|
7.1%
|
|
|
Average allocated tangible equity (£bn)
|
32.4
|
31.5
|
|
|
Cost: income ratio
|
60%
|
57%
|
|
|
Loan loss rate (bps)
|
—
|
257
|
|
|
Net interest margin
|
4.01%
|
3.64%
|
|
|
Analysis of Barclays International
|
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
Year ended
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
1,351
|
1,084
|
25
|
|
Net trading income
|
5,652
|
6,975
|
(19)
|
|
Net fee, commission and other income
|
5,331
|
4,417
|
21
|
|
Total income
|
12,334
|
12,476
|
(1)
|
|
Credit impairment releases/(charges)
|
473
|
(1,559)
|
|
|
Net operating income
|
12,807
|
10,917
|
17
|
|
Operating costs
|
(6,818)
|
(6,689)
|
(2)
|
|
UK bank levy
|
(128)
|
(226)
|
43
|
|
Litigation and conduct
|
(17)
|
(4)
|
|
|
Total operating expenses
|
(6,963)
|
(6,919)
|
(1)
|
|
Other net income
|
2
|
6
|
(67)
|
|
Profit before tax
|
5,846
|
4,004
|
46
|
|
Attributable profit
|
4,202
|
2,554
|
65
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
100.0
|
92.4
|
|
|
Trading portfolio assets
|
146.7
|
127.5
|
|
|
Derivative financial instrument assets
|
261.5
|
301.7
|
|
|
Financial assets at fair value through the income
statement
|
188.1
|
170.4
|
|
|
Cash collateral and settlement balances
|
87.2
|
96.7
|
|
|
Other assets
|
195.8
|
194.9
|
|
|
Total assets
|
979.3
|
983.6
|
|
|
Deposits at amortised cost
|
189.4
|
175.2
|
|
|
Derivative financial instrument liabilities
|
256.4
|
300.3
|
|
|
Risk weighted assets
|
200.7
|
192.2
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
14.9%
|
9.5%
|
|
|
Average allocated tangible equity (£bn)
|
28.3
|
27.0
|
|
|
Cost: income ratio
|
56%
|
55%
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
|
|
FICC
|
3,448
|
5,138
|
(33)
|
|
Equities
|
2,967
|
2,471
|
20
|
|
Global Markets
|
6,415
|
7,609
|
(16)
|
|
Advisory
|
921
|
561
|
64
|
|
Equity capital markets
|
813
|
473
|
72
|
|
Debt capital markets
|
1,925
|
1,697
|
13
|
|
Investment Banking fees
|
3,659
|
2,731
|
34
|
|
Corporate lending
|
588
|
590
|
—
|
|
Transaction banking
|
1,672
|
1,546
|
8
|
|
Corporate
|
2,260
|
2,136
|
6
|
|
Total income
|
12,334
|
12,476
|
(1)
|
|
Analysis of Barclays International
|
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
Year ended
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
1,912
|
2,198
|
(13)
|
|
Net fee, commission, trading and other income
|
1,419
|
1,247
|
14
|
|
Total income
|
3,331
|
3,445
|
(3)
|
|
Credit impairment charges
|
(185)
|
(1,721)
|
89
|
|
Net operating income
|
3,146
|
1,724
|
82
|
|
Operating costs
|
(2,258)
|
(2,076)
|
(9)
|
|
UK bank levy
|
(6)
|
(14)
|
57
|
|
Litigation and conduct
|
(108)
|
(44)
|
|
|
Total operating expenses
|
(2,372)
|
(2,134)
|
(11)
|
|
Other net income
|
38
|
22
|
73
|
|
Profit/(loss) before tax
|
812
|
(388)
|
|
|
Attributable profit/(loss)
|
615
|
(334)
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
33.8
|
30.3
|
|
|
Total assets
|
64.8
|
58.2
|
|
|
Deposits at amortised cost
|
69.4
|
65.3
|
|
|
Risk weighted assets
|
30.2
|
30.1
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
30 day arrears rate – Barclaycard US
|
1.6%
|
2.5%
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
<660
|
10%
|
13%
|
|
|
>660
|
90%
|
87%
|
|
|
Total number of Barclaycard payments clients
|
c.380,000
|
c.365,000
|
|
|
Value
of payments processed (£bn)1
|
277
|
274
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
15.0%
|
(7.5)%
|
|
|
Average allocated tangible equity (£bn)
|
4.1
|
4.5
|
|
|
Cost: income ratio
|
71%
|
62%
|
|
|
Loan loss rate (bps)
|
51
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
|
|
International Cards and Consumer Bank
|
2,092
|
2,433
|
(14)
|
|
Private Bank
|
781
|
707
|
10
|
|
Unified Payments
|
458
|
305
|
50
|
|
Total income
|
3,331
|
3,445
|
(3)
|
|
1
|
Includes
£270bn (2020: £268bn) of merchant acquiring
payments.
|
Barclays
International delivered a RoTE of 14.9% reflecting the benefits of
a diversified business. CIB delivered a RoTE of 14.9% reflecting a
strong performance in Investment Banking fees and Equities, offset
by a decrease in FICC against a very strong prior year comparative,
and a net credit impairment release following improvements in the
macroeconomic outlook. CC&P RoTE improved significantly to
15.0% as a decline in income, reflecting lower cards balances, was
more than offset by an improvement in impairment.
2021 compared to 2020
Income statement
|
●
|
Profit
before tax increased 84% to £6,658m with a RoTE of 14.9%
(2020: 7.1%), reflecting a RoTE of 14.9% (2020:9.5%) in CIB and
15.0% (2020: (7.5)%) in CC&P
|
|
●
|
The 8%
depreciation of average USD against GBP adversely impacted income
and profits and positively impacted total operating
expenses
|
|
●
|
Total
income decreased to £15,665m (2020:
£15,921m)
|
|
|
–
|
CIB
income decreased 1% to £12,334m
|
|
|
|
–
|
Global
Markets income decreased 16% to £6,415m as a strong
performance in Equities, representing the best full year on a
comparable basis1, was more than
offset by FICC. Equities income increased 20% to £2,967m
driven by strong client activity in derivatives and increased
client balances in financing. FICC income decreased 33% to
£3,448m due to tighter spreads and the non-recurrence of prior
year client activity levels
|
|
|
|
–
|
Investment
Banking fees income, representing the best full year on a
comparable basis1, increased 34% to
£3,659m driven by a strong performance in Advisory and Equity
capital markets reflecting an increase in the fee pool and an
increased market share2
|
|
|
|
–
|
Within
Corporate, Transaction banking income increased 8% to £1,672m
driven by deposits and higher payments volumes. Corporate lending
income was stable at £588m (2020: £590m) driven by a
current year fair value loan write-off on a single name and
increased cost of hedging, whilst the prior year included net
losses from the mark-to-market of lending and related hedge
positions
|
|
|
–
|
CC&P
income decreased 3% to £3,331m
|
|
|
|
–
|
International
Cards and Consumer Bank income decreased 14% to £2,092m
reflecting lower average cards balances whilst balances increased
during H221
|
|
|
|
–
|
Private
Bank income increased 10% to £781m, reflecting client balance
growth and a gain on a property sale
|
|
|
|
–
|
Unified
Payments income increased 50% to £458m driven by the
non-recurrence of a c.£100m valuation loss on Barclays’
preference shares in Visa Inc. in Q220, which have subsequently
been fully disposed of in FY21, and merchant acquiring turnover
growth following the easing of lockdown restrictions
|
|
●
|
Credit
impairment net release of £288m (2020: £3,280m charge)
was driven by an improved macroeconomic outlook
|
|
|
–
|
CIB
credit impairment net release of £473m (2020: £1,559m
charge) was also supported by net single name wholesale loan
releases and a benign credit environment
|
|
|
–
|
CC&P
credit impairment charge of £185m (2020: £1,721m) was
partially driven by lower delinquencies and higher customer
repayments. As at 31 December 2021, 30 and 90 day arrears in US
cards were 1.6% (Q420: 2.5%) and 0.8% (Q420: 1.4%)
respectively
|
|
●
|
Total
operating expenses increased 3% to £9,335m
|
|
|
–
|
CIB
total operating expenses increased 1% to £6,963m due to higher
performance costs, that reflect an improvement in returns, partly
offset by a lower bank levy charge, primarily due to the reduced
rate
|
|
|
–
|
CC&P
total operating expenses increased 11% to £2,372m driven by
the impact of higher investment spend, including an increase in
marketing and costs for existing and new partnerships, and customer
remediation costs related to a legacy portfolio
|
|
1
|
Period covering
2014 – 2021. Pre 2014 financials were not restated following
re-segmentation in 2016.
|
|
2
|
Data source:
Dealogic for the period covering 1 January to 31 December
2021.
|
Balance sheet
|
●
|
Loans
and advances at amortised cost increased £11.1bn to
£133.8bn due to increased lending across CIB and
CC&P
|
|
●
|
Trading
portfolio assets increased £19.2bn to £146.9bn
predominantly due to increased activity in Equities
|
|
●
|
Derivative
financial instruments assets decreased £40.3bn and liabilities
decreased £44.0bn to £261.5bn and £256.4bn
respectively, driven by an increase in major interest rate curves
and reduced client activity in FICC
|
|
●
|
Financial
assets at fair value through the income statement increased
£17.5bn to £188.2bn driven by increased secured
lending
|
|
●
|
Cash
collateral and settlement balances decreased £9.4bn to
£88.1bn
|
|
●
|
Deposits
at amortised cost increased £18.3bn to £258.8bn due to
clients increasing liquidity
|
|
●
|
RWAs
increased to £230.9bn (December 2020: £222.3bn) primarily
resulting from the recalibration of the modelled market risk stress
period, and increased client and trading activity within
CIB
|
|
Head Office
|
Year ended
|
Year ended
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
(392)
|
(393)
|
—
|
|
Net fee, commission and other income
|
131
|
(109)
|
|
|
Total income
|
(261)
|
(502)
|
48
|
|
Credit impairment charges
|
—
|
(91)
|
|
|
Net operating income
|
(261)
|
(593)
|
56
|
|
Operating costs
|
(659)
|
(399)
|
(65)
|
|
UK bank levy
|
—
|
(9)
|
|
|
Litigation and conduct
|
(15)
|
(73)
|
79
|
|
Total operating expenses
|
(674)
|
(481)
|
(40)
|
|
Other net income/(expenses)
|
220
|
(23)
|
|
|
Loss before tax
|
(715)
|
(1,097)
|
35
|
|
Attributable loss
|
(198)
|
(1,019)
|
81
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Total assets
|
19.0
|
18.6
|
|
|
Risk weighted assets
|
11.0
|
10.2
|
|
|
Period end allocated tangible equity
|
5.7
|
6.8
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Average allocated tangible equity (£bn)
|
5.0
|
6.7
|
|
2021 compared to 2020
Income statement
|
●
|
Loss
before tax was £715m (2020:
£1,097m)
|
|
●
|
Total
income was an expense of £261m (2020: £502m), which
primarily reflected hedge accounting, funding costs on legacy
capital instruments and treasury items, partially offset by
mark-to-market gains on legacy investments and the recognition of
dividends on Barclays’ stake in Absa Group
Limited
|
|
●
|
Total
operating expenses were £674m (2020: £481m), which
included £266m relating to structural cost actions taken as
part of the real estate review in Q221, as well as costs associated
with the discontinued use of software assets
|
|
●
|
Other
net income was £220m (2020: £23m expense) driven by a
fair value gain on investments held by the Business Growth Fund in
which Barclays has an associate interest
|
Balance sheet
|
●
|
RWAs
were £11.0bn (December 2020: £10.2bn)
|
Quarterly Results Summary
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
2,230
|
1,940
|
2,052
|
1,851
|
|
1,845
|
2,055
|
1,892
|
2,331
|
|
Net fee, commission and other income
|
2,930
|
3,525
|
3,363
|
4,049
|
|
3,096
|
3,149
|
3,446
|
3,952
|
|
Total income
|
5,160
|
5,465
|
5,415
|
5,900
|
|
4,941
|
5,204
|
5,338
|
6,283
|
|
Credit impairment releases/(charges)
|
31
|
(120)
|
797
|
(55)
|
|
(492)
|
(608)
|
(1,623)
|
(2,115)
|
|
Net operating income
|
5,191
|
5,345
|
6,212
|
5,845
|
|
4,449
|
4,596
|
3,715
|
4,168
|
|
Operating costs
|
(3,514)
|
(3,446)
|
(3,587)
|
(3,545)
|
|
(3,480)
|
(3,391)
|
(3,310)
|
(3,253)
|
|
UK bank levy
|
(170)
|
—
|
—
|
—
|
|
(299)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(46)
|
(32)
|
(66)
|
(33)
|
|
(47)
|
(76)
|
(20)
|
(10)
|
|
Total operating expenses
|
(3,730)
|
(3,478)
|
(3,653)
|
(3,578)
|
|
(3,826)
|
(3,467)
|
(3,330)
|
(3,263)
|
|
Other net income/(expenses)
|
13
|
94
|
21
|
132
|
|
23
|
18
|
(26)
|
8
|
|
Profit before tax
|
1,474
|
1,961
|
2,580
|
2,399
|
|
646
|
1,147
|
359
|
913
|
|
Tax charge
|
(112)
|
(317)
|
(263)
|
(496)
|
|
(163)
|
(328)
|
(42)
|
(71)
|
|
Profit after tax
|
1,362
|
1,644
|
2,317
|
1,903
|
|
483
|
819
|
317
|
842
|
|
Non-controlling interests
|
(27)
|
(1)
|
(15)
|
(4)
|
|
(37)
|
(4)
|
(21)
|
(16)
|
|
Other equity instrument holders
|
(218)
|
(197)
|
(194)
|
(195)
|
|
(226)
|
(204)
|
(206)
|
(221)
|
|
Attributable profit
|
1,117
|
1,446
|
2,108
|
1,704
|
|
220
|
611
|
90
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
9.3%
|
11.9%
|
18.1%
|
14.7%
|
|
1.8%
|
5.1%
|
0.7%
|
5.1%
|
|
Average tangible shareholders' equity (£bn)
|
48.2
|
48.4
|
46.5
|
46.5
|
|
47.6
|
48.3
|
50.2
|
47.0
|
|
Cost: income ratio
|
72%
|
64%
|
67%
|
61%
|
|
77%
|
67%
|
62%
|
52%
|
|
Loan loss rate (bps)
|
—
|
13
|
—
|
6
|
|
56
|
69
|
179
|
223
|
|
Basic earnings per share
|
6.6p
|
8.5p
|
12.3p
|
9.9p
|
|
1.3p
|
3.5p
|
0.5p
|
3.5p
|
|
Basic weighted average number of shares (m)
|
16,985
|
17,062
|
17,140
|
17,293
|
|
17,300
|
17,298
|
17,294
|
17,278
|
|
Period end number of shares (m)
|
16,752
|
16,851
|
16,998
|
17,223
|
|
17,359
|
17,353
|
17,345
|
17,332
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital management1
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
361.5
|
353.0
|
348.5
|
345.8
|
|
342.6
|
344.4
|
354.9
|
374.1
|
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.6%
|
1.7%
|
1.8%
|
2.2%
|
|
2.4%
|
2.5%
|
2.5%
|
2.1%
|
|
Total assets
|
1,384.3
|
1,406.5
|
1,376.3
|
1,379.7
|
|
1,349.5
|
1,421.7
|
1,385.1
|
1,444.3
|
|
Deposits at amortised cost
|
519.4
|
510.2
|
500.9
|
498.8
|
|
481.0
|
494.6
|
466.9
|
470.7
|
|
Tangible net asset value per share
|
292p
|
287p
|
281p
|
267p
|
|
269p
|
275p
|
284p
|
284p
|
|
Common equity tier 1 ratio
|
15.1%
|
15.4%
|
15.1%
|
14.6%
|
|
15.1%
|
14.6%
|
14.2%
|
13.1%
|
|
Common equity tier 1 capital
|
47.5
|
47.3
|
46.2
|
45.9
|
|
46.3
|
45.5
|
45.4
|
42.5
|
|
Risk weighted assets
|
314.1
|
307.5
|
306.4
|
313.4
|
|
306.2
|
310.7
|
319.0
|
325.6
|
|
Average UK leverage ratio
|
4.9%
|
4.9%
|
4.8%
|
4.9%
|
|
5.0%
|
5.1%
|
4.7%
|
4.5%
|
|
Average UK leverage exposure
|
1,227.1
|
1,199.8
|
1,192.0
|
1,174.9
|
|
1,146.9
|
1,111.1
|
1,148.7
|
1,176.2
|
|
UK leverage ratio
|
5.3%
|
5.1%
|
5.0%
|
5.0%
|
|
5.3%
|
5.2%
|
5.2%
|
4.5%
|
|
UK leverage exposure
|
1,136.0
|
1,161.0
|
1,153.6
|
1,145.4
|
|
1,090.9
|
1,095.1
|
1,071.1
|
1,178.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
291
|
293
|
291
|
290
|
|
266
|
327
|
298
|
237
|
|
Liquidity coverage ratio
|
168%
|
161%
|
162%
|
161%
|
|
162%
|
181%
|
186%
|
155%
|
|
Loan: deposit ratio
|
70%
|
69%
|
70%
|
69%
|
|
71%
|
70%
|
76%
|
79%
|
|
1
|
Refer to pages
48 to 53 for further information on how capital, RWAs and leverage
are calculated.
|
Quarterly Results by Business
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
1,313
|
1,303
|
1,305
|
1,281
|
|
1,317
|
1,280
|
1,225
|
1,412
|
|
Net fee, commission and other income
|
386
|
335
|
318
|
295
|
|
309
|
270
|
242
|
292
|
|
Total income
|
1,699
|
1,638
|
1,623
|
1,576
|
|
1,626
|
1,550
|
1,467
|
1,704
|
|
Credit impairment releases/(charges)
|
59
|
(137)
|
520
|
(77)
|
|
(170)
|
(233)
|
(583)
|
(481)
|
|
Net operating income
|
1,758
|
1,501
|
2,143
|
1,499
|
|
1,456
|
1,317
|
884
|
1,223
|
|
Operating costs
|
(1,202)
|
(1,041)
|
(1,078)
|
(1,036)
|
|
(1,134)
|
(1,095)
|
(1,018)
|
(1,023)
|
|
UK bank levy
|
(36)
|
—
|
—
|
—
|
|
(50)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(5)
|
(10)
|
(19)
|
(3)
|
|
4
|
(25)
|
(6)
|
(5)
|
|
Total operating expenses
|
(1,243)
|
(1,051)
|
(1,097)
|
(1,039)
|
|
(1,180)
|
(1,120)
|
(1,024)
|
(1,028)
|
|
Other net (expenses)/income
|
(1)
|
1
|
—
|
—
|
|
6
|
(1)
|
13
|
—
|
|
Profit/(loss) before tax
|
514
|
451
|
1,046
|
460
|
|
282
|
196
|
(127)
|
195
|
|
Attributable profit/(loss)
|
420
|
317
|
721
|
298
|
|
160
|
113
|
(123)
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
208.8
|
208.6
|
207.8
|
205.7
|
|
205.4
|
203.9
|
202.0
|
195.7
|
|
Total assets
|
321.2
|
312.1
|
311.2
|
309.1
|
|
289.1
|
294.5
|
287.6
|
267.5
|
|
Customer deposits at amortised cost
|
260.6
|
256.8
|
255.5
|
247.5
|
|
240.5
|
232.0
|
225.7
|
207.5
|
|
Loan: deposit ratio
|
85%
|
86%
|
87%
|
88%
|
|
89%
|
91%
|
92%
|
96%
|
|
Risk weighted assets
|
72.3
|
73.2
|
72.2
|
72.7
|
|
73.7
|
76.2
|
77.9
|
77.7
|
|
Period end allocated tangible equity
|
10.0
|
10.0
|
9.9
|
10.0
|
|
9.7
|
10.0
|
10.3
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
16.8%
|
12.7%
|
29.1%
|
12.0%
|
|
6.5%
|
4.5%
|
(4.8)%
|
6.9%
|
|
Average allocated tangible equity (£bn)
|
10.0
|
10.0
|
9.9
|
9.9
|
|
9.8
|
10.1
|
10.3
|
10.1
|
|
Cost: income ratio
|
73%
|
64%
|
68%
|
66%
|
|
73%
|
72%
|
70%
|
60%
|
|
Loan loss rate (bps)
|
—
|
24
|
—
|
14
|
|
31
|
43
|
111
|
96
|
|
Net interest margin
|
2.49%
|
2.49%
|
2.55%
|
2.54%
|
|
2.56%
|
2.51%
|
2.48%
|
2.91%
|
|
Analysis of Barclays UK
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Personal Banking
|
983
|
990
|
987
|
923
|
|
895
|
833
|
826
|
968
|
|
Barclaycard Consumer UK
|
352
|
293
|
290
|
315
|
|
354
|
362
|
367
|
436
|
|
Business Banking
|
364
|
355
|
346
|
338
|
|
377
|
355
|
274
|
300
|
|
Total income
|
1,699
|
1,638
|
1,623
|
1,576
|
|
1,626
|
1,550
|
1,467
|
1,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment releases/(charges)
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
8
|
(30)
|
72
|
(22)
|
|
(68)
|
(48)
|
(130)
|
(134)
|
|
Barclaycard Consumer UK
|
114
|
(108)
|
434
|
(36)
|
|
(78)
|
(106)
|
(396)
|
(301)
|
|
Business Banking
|
(63)
|
1
|
14
|
(19)
|
|
(24)
|
(79)
|
(57)
|
(46)
|
|
Total credit impairment releases/(charges)
|
59
|
(137)
|
520
|
(77)
|
|
(170)
|
(233)
|
(583)
|
(481)
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Personal Banking
|
165.4
|
164.6
|
162.4
|
160.4
|
|
157.3
|
155.7
|
154.9
|
153.4
|
|
Barclaycard Consumer UK
|
8.7
|
8.6
|
8.8
|
8.7
|
|
9.9
|
10.7
|
11.5
|
13.6
|
|
Business Banking
|
34.7
|
35.4
|
36.6
|
36.6
|
|
38.2
|
37.5
|
35.6
|
28.7
|
|
Total loans and advances to customers at amortised
cost
|
208.8
|
208.6
|
207.8
|
205.7
|
|
205.4
|
203.9
|
202.0
|
195.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
196.4
|
193.3
|
191.0
|
186.0
|
|
179.7
|
173.2
|
169.6
|
161.4
|
|
Barclaycard Consumer UK
|
—
|
—
|
0.1
|
0.1
|
|
0.1
|
0.1
|
0.1
|
—
|
|
Business Banking
|
64.2
|
63.5
|
64.4
|
61.4
|
|
60.7
|
58.7
|
56.0
|
46.1
|
|
Total customer deposits at amortised cost
|
260.6
|
256.8
|
255.5
|
247.5
|
|
240.5
|
232.0
|
225.7
|
207.5
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
955
|
749
|
811
|
748
|
|
614
|
823
|
847
|
998
|
|
Net trading income
|
789
|
1,515
|
1,455
|
1,934
|
|
1,372
|
1,528
|
1,660
|
2,360
|
|
Net fee, commission and other income
|
1,766
|
1,673
|
1,553
|
1,717
|
|
1,500
|
1,430
|
1,503
|
1,286
|
|
Total income
|
3,510
|
3,937
|
3,819
|
4,399
|
|
3,486
|
3,781
|
4,010
|
4,644
|
|
Credit impairment (charges)/releases
|
(23)
|
18
|
271
|
22
|
|
(291)
|
(370)
|
(1,010)
|
(1,609)
|
|
Net operating income
|
3,487
|
3,955
|
4,090
|
4,421
|
|
3,195
|
3,411
|
3,000
|
3,035
|
|
Operating costs
|
(2,160)
|
(2,310)
|
(2,168)
|
(2,438)
|
|
(2,133)
|
(2,227)
|
(2,186)
|
(2,219)
|
|
UK bank levy
|
(134)
|
—
|
—
|
—
|
|
(240)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(38)
|
(3)
|
(63)
|
(21)
|
|
(9)
|
(28)
|
(11)
|
—
|
|
Total operating expenses
|
(2,332)
|
(2,313)
|
(2,231)
|
(2,459)
|
|
(2,382)
|
(2,255)
|
(2,197)
|
(2,219)
|
|
Other net income
|
3
|
15
|
13
|
9
|
|
9
|
9
|
4
|
6
|
|
Profit before tax
|
1,158
|
1,657
|
1,872
|
1,971
|
|
822
|
1,165
|
807
|
822
|
|
Attributable profit
|
856
|
1,263
|
1,267
|
1,431
|
|
441
|
782
|
468
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
133.8
|
125.9
|
121.9
|
123.5
|
|
122.7
|
128.0
|
138.1
|
167.0
|
|
Trading portfolio assets
|
146.9
|
144.8
|
147.1
|
131.1
|
|
127.7
|
122.3
|
109.5
|
101.6
|
|
Derivative financial instrument assets
|
261.5
|
257.0
|
255.4
|
269.4
|
|
301.8
|
295.9
|
306.8
|
341.5
|
|
Financial assets at fair value through the income
statement
|
188.2
|
200.5
|
190.4
|
197.5
|
|
170.7
|
178.2
|
154.3
|
188.4
|
|
Cash collateral and settlement balances
|
88.1
|
115.9
|
108.5
|
109.7
|
|
97.5
|
121.8
|
130.8
|
153.2
|
|
Other assets
|
225.6
|
231.8
|
223.5
|
221.7
|
|
221.4
|
261.7
|
236.3
|
201.5
|
|
Total assets
|
1,044.1
|
1,075.9
|
1,046.8
|
1,052.9
|
|
1,041.8
|
1,107.9
|
1,075.8
|
1,153.2
|
|
Deposits at amortised cost
|
258.8
|
253.3
|
245.4
|
251.2
|
|
240.5
|
262.4
|
241.2
|
263.3
|
|
Derivative financial instrument liabilities
|
256.4
|
252.3
|
246.9
|
260.2
|
|
300.4
|
293.3
|
307.6
|
338.8
|
|
Loan: deposit ratio
|
52%
|
50%
|
50%
|
49%
|
|
51%
|
49%
|
57%
|
63%
|
|
Risk weighted assets
|
230.9
|
222.7
|
223.2
|
230.0
|
|
222.3
|
224.7
|
231.2
|
237.9
|
|
Period end allocated tangible equity
|
33.2
|
31.8
|
31.8
|
32.7
|
|
30.2
|
30.5
|
31.6
|
33.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.4%
|
15.9%
|
15.6%
|
17.7%
|
|
5.8%
|
10.2%
|
5.6%
|
6.8%
|
|
Average allocated tangible equity (£bn)
|
32.9
|
31.8
|
32.4
|
32.3
|
|
30.5
|
30.6
|
33.5
|
31.2
|
|
Cost: income ratio
|
66%
|
59%
|
58%
|
56%
|
|
68%
|
60%
|
55%
|
48%
|
|
Loan loss rate (bps)
|
7
|
—
|
—
|
(7)
|
|
90
|
112
|
284
|
377
|
|
Net interest margin
|
4.14%
|
4.02%
|
3.96%
|
3.92%
|
|
3.41%
|
3.79%
|
3.43%
|
3.93%
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
432
|
279
|
370
|
270
|
|
110
|
305
|
334
|
335
|
|
Net trading income
|
774
|
1,467
|
1,494
|
1,917
|
|
1,397
|
1,535
|
1,812
|
2,231
|
|
Net fee, commission and other income
|
1,426
|
1,383
|
1,115
|
1,407
|
|
1,131
|
1,065
|
1,170
|
1,051
|
|
Total income
|
2,632
|
3,129
|
2,979
|
3,594
|
|
2,638
|
2,905
|
3,316
|
3,617
|
|
Credit impairment releases/(charges)
|
73
|
128
|
229
|
43
|
|
(52)
|
(187)
|
(596)
|
(724)
|
|
Net operating income
|
2,705
|
3,257
|
3,208
|
3,637
|
|
2,586
|
2,718
|
2,720
|
2,893
|
|
Operating costs
|
(1,562)
|
(1,747)
|
(1,623)
|
(1,886)
|
|
(1,603)
|
(1,716)
|
(1,680)
|
(1,690)
|
|
UK bank levy
|
(128)
|
—
|
—
|
—
|
|
(226)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(13)
|
(2)
|
(1)
|
(1)
|
|
2
|
(3)
|
(3)
|
—
|
|
Total operating expenses
|
(1,703)
|
(1,749)
|
(1,624)
|
(1,887)
|
|
(1,827)
|
(1,719)
|
(1,683)
|
(1,690)
|
|
Other net income
|
1
|
—
|
—
|
1
|
|
2
|
1
|
3
|
—
|
|
Profit before tax
|
1,003
|
1,508
|
1,584
|
1,751
|
|
761
|
1,000
|
1,040
|
1,203
|
|
Attributable profit
|
733
|
1,157
|
1,049
|
1,263
|
|
413
|
627
|
694
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
100.0
|
93.8
|
91.0
|
94.3
|
|
92.4
|
96.8
|
104.9
|
128.2
|
|
Trading portfolio assets
|
146.7
|
144.7
|
147.0
|
130.9
|
|
127.5
|
122.2
|
109.3
|
101.5
|
|
Derivative financial instruments assets
|
261.5
|
256.9
|
255.3
|
269.4
|
|
301.7
|
295.9
|
306.7
|
341.4
|
|
Financial assets at fair value through the income
statement
|
188.1
|
200.4
|
190.3
|
197.3
|
|
170.4
|
177.9
|
153.7
|
187.8
|
|
Cash collateral and settlement balances
|
87.2
|
115.1
|
107.7
|
108.8
|
|
96.7
|
121.0
|
129.7
|
152.2
|
|
Other assets
|
195.8
|
200.4
|
192.5
|
190.8
|
|
194.9
|
228.9
|
205.5
|
171.4
|
|
Total assets
|
979.3
|
1,011.3
|
983.8
|
991.5
|
|
983.6
|
1,042.7
|
1,009.8
|
1,082.5
|
|
Deposits at amortised cost
|
189.4
|
185.8
|
178.2
|
185.2
|
|
175.2
|
195.6
|
173.9
|
198.4
|
|
Derivative financial instrument liabilities
|
256.4
|
252.2
|
246.8
|
260.2
|
|
300.3
|
293.2
|
307.6
|
338.7
|
|
Risk weighted assets
|
200.7
|
192.5
|
194.3
|
201.3
|
|
192.2
|
193.3
|
198.3
|
201.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.2%
|
16.6%
|
14.8%
|
17.9%
|
|
6.3%
|
9.5%
|
9.6%
|
12.5%
|
|
Average allocated tangible equity (£bn)
|
28.7
|
27.8
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.0
|
26.2
|
|
Cost: income ratio
|
65%
|
56%
|
55%
|
53%
|
|
69%
|
59%
|
51%
|
47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
FICC
|
546
|
803
|
895
|
1,204
|
|
812
|
1,000
|
1,468
|
1,858
|
|
Equities
|
501
|
757
|
777
|
932
|
|
542
|
691
|
674
|
564
|
|
Global Markets
|
1,047
|
1,560
|
1,672
|
2,136
|
|
1,354
|
1,691
|
2,142
|
2,422
|
|
Advisory
|
287
|
253
|
218
|
163
|
|
232
|
90
|
84
|
155
|
|
Equity capital markets
|
158
|
186
|
226
|
243
|
|
104
|
122
|
185
|
62
|
|
Debt capital markets
|
511
|
532
|
429
|
453
|
|
418
|
398
|
463
|
418
|
|
Investment Banking fees
|
956
|
971
|
873
|
859
|
|
754
|
610
|
732
|
635
|
|
Corporate lending
|
176
|
168
|
38
|
206
|
|
186
|
232
|
61
|
111
|
|
Transaction banking
|
453
|
430
|
396
|
393
|
|
344
|
372
|
381
|
449
|
|
Corporate
|
629
|
598
|
434
|
599
|
|
530
|
604
|
442
|
560
|
|
Total income
|
2,632
|
3,129
|
2,979
|
3,594
|
|
2,638
|
2,905
|
3,316
|
3,617
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
522
|
471
|
441
|
478
|
|
504
|
518
|
513
|
663
|
|
Net fee, commission, trading and other income
|
356
|
337
|
399
|
327
|
|
344
|
358
|
181
|
364
|
|
Total income
|
878
|
808
|
840
|
805
|
|
848
|
876
|
694
|
1,027
|
|
Credit impairment (charges)/releases
|
(96)
|
(110)
|
42
|
(21)
|
|
(239)
|
(183)
|
(414)
|
(885)
|
|
Net operating income
|
782
|
698
|
882
|
784
|
|
609
|
693
|
280
|
142
|
|
Operating costs
|
(598)
|
(563)
|
(545)
|
(552)
|
|
(530)
|
(511)
|
(506)
|
(529)
|
|
UK bank levy
|
(6)
|
—
|
—
|
—
|
|
(14)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(25)
|
(1)
|
(62)
|
(20)
|
|
(11)
|
(25)
|
(8)
|
—
|
|
Total operating expenses
|
(629)
|
(564)
|
(607)
|
(572)
|
|
(555)
|
(536)
|
(514)
|
(529)
|
|
Other net income
|
2
|
15
|
13
|
8
|
|
7
|
8
|
1
|
6
|
|
Profit/(loss) before tax
|
155
|
149
|
288
|
220
|
|
61
|
165
|
(233)
|
(381)
|
|
Attributable profit/(loss)
|
123
|
106
|
218
|
168
|
|
28
|
155
|
(226)
|
(291)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
33.8
|
32.1
|
30.9
|
29.2
|
|
30.3
|
31.2
|
33.2
|
38.8
|
|
Total assets
|
64.8
|
64.6
|
63.0
|
61.4
|
|
58.2
|
65.2
|
66.0
|
70.7
|
|
Deposits at amortised cost
|
69.4
|
67.5
|
67.2
|
66.0
|
|
65.3
|
66.8
|
67.3
|
64.9
|
|
Risk weighted assets
|
30.2
|
30.2
|
29.0
|
28.8
|
|
30.1
|
31.4
|
32.9
|
36.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
11.7%
|
10.5%
|
21.8%
|
16.5%
|
|
2.7%
|
14.7%
|
(20.2)%
|
(23.5)%
|
|
Average allocated tangible equity (£bn)
|
4.2
|
4.0
|
4.0
|
4.1
|
|
4.2
|
4.2
|
4.5
|
5.0
|
|
Cost: income ratio
|
72%
|
70%
|
72%
|
71%
|
|
65%
|
61%
|
74%
|
52%
|
|
Loan loss rate (bps)
|
105
|
127
|
—
|
27
|
|
286
|
211
|
455
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
International Cards and Consumer Bank
|
552
|
490
|
517
|
533
|
|
576
|
600
|
567
|
690
|
|
Private Bank
|
200
|
188
|
214
|
179
|
|
174
|
171
|
160
|
202
|
|
Unified Payments
|
126
|
130
|
109
|
93
|
|
98
|
105
|
(33)
|
135
|
|
Total income
|
878
|
808
|
840
|
805
|
|
848
|
876
|
694
|
1,027
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
(38)
|
(112)
|
(64)
|
(178)
|
|
(86)
|
(48)
|
(180)
|
(79)
|
|
Net fee, commission and other income
|
(11)
|
2
|
37
|
103
|
|
(85)
|
(79)
|
41
|
14
|
|
Total income
|
(49)
|
(110)
|
(27)
|
(75)
|
|
(171)
|
(127)
|
(139)
|
(65)
|
|
Credit impairment (charges)/releases
|
(5)
|
(1)
|
6
|
—
|
|
(31)
|
(5)
|
(30)
|
(25)
|
|
Net operating expenses
|
(54)
|
(111)
|
(21)
|
(75)
|
|
(202)
|
(132)
|
(169)
|
(90)
|
|
Operating costs
|
(152)
|
(95)
|
(341)
|
(71)
|
|
(213)
|
(69)
|
(106)
|
(11)
|
|
UK bank levy
|
—
|
—
|
—
|
—
|
|
(9)
|
—
|
—
|
—
|
|
Litigation and conduct
|
(3)
|
(19)
|
16
|
(9)
|
|
(42)
|
(23)
|
(3)
|
(5)
|
|
Total operating expenses
|
(155)
|
(114)
|
(325)
|
(80)
|
|
(264)
|
(92)
|
(109)
|
(16)
|
|
Other net income/(expenses)
|
11
|
78
|
8
|
123
|
|
8
|
10
|
(43)
|
2
|
|
Loss before tax
|
(198)
|
(147)
|
(338)
|
(32)
|
|
(458)
|
(214)
|
(321)
|
(104)
|
|
Attributable (loss)/profit
|
(159)
|
(134)
|
120
|
(25)
|
|
(381)
|
(284)
|
(255)
|
(99)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
19.0
|
18.5
|
18.3
|
17.7
|
|
18.6
|
19.3
|
21.7
|
23.6
|
|
Risk weighted assets
|
11.0
|
11.5
|
11.1
|
10.7
|
|
10.2
|
9.8
|
9.9
|
10.0
|
|
Period end allocated tangible equity
|
5.7
|
6.5
|
5.9
|
3.3
|
|
6.8
|
7.1
|
7.4
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
5.3
|
6.6
|
4.2
|
4.3
|
|
7.3
|
7.6
|
6.4
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
Performance Management
|
Margins and balances
|
|
|
|
|
|
|
|
|
Year ended 31.12.21
|
Year ended 31.12.20
|
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
Barclays UK
|
5,202
|
206,628
|
2.52
|
5,234
|
200,317
|
2.61
|
|
Barclays
International1
|
3,149
|
78,530
|
4.01
|
3,382
|
92,909
|
3.64
|
|
Total Barclays UK and Barclays International
|
8,351
|
285,158
|
2.93
|
8,616
|
293,226
|
2.94
|
|
Other2
|
(278)
|
|
|
(494)
|
|
|
|
Total Barclays Group
|
8,073
|
|
|
8,122
|
|
|
|
1
|
Barclays
International margins include IEL balances within the investment
banking business.
|
|
2
|
Other includes
Head Office and non-lending related investment banking businesses
not included in Barclays International margins.
|
The
Group NIM remained stable with a 1bps decrease to 2.93%. Barclays
UK NIM decreased 9bps to 2.52%, reflecting the impact of lower UK
interest rates as well as the mix impact of strong mortgage growth
and lower unsecured lending balances. Barclays International NIM
increased 37bps to 4.01% reflecting the mix impact of lower average
lending balances in the CIB.
The
Group’s combined product and equity structural hedge notional
as at 31 December 2021 was £228bn (31 December 2020:
£188bn), with an average duration of close to 3 years (2020:
average duration 2.5 to 3 years). Group net interest income
includes gross structural hedge contributions of £1,415m
(2020: £1,650m) and net structural hedge contributions of
£1,187m (2020: £1,246m). Gross structural hedge
contributions represent the absolute interest income earned from
the fixed receipts on the basket of swaps in the structural hedge,
while the net structural hedge contributions represent the net
interest earned on the difference between the structural hedge rate
and prevailing floating rates.
|
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
Three months ended 31.12.21
|
£m
|
£m
|
%
|
|
Barclays UK
|
1,313
|
209,064
|
2.49
|
|
Barclays
International1
|
848
|
81,244
|
4.14
|
|
Total Barclays UK and Barclays International
|
2,161
|
290,308
|
2.95
|
|
|
|
|
|
|
Three months ended 30.09.21
|
|
|
|
|
Barclays UK
|
1,303
|
207,692
|
2.49
|
|
Barclays
International1
|
783
|
77,364
|
4.02
|
|
Total Barclays UK and Barclays International
|
2,086
|
285,056
|
2.90
|
|
|
|
|
|
|
Three months ended 30.06.21
|
|
|
|
|
Barclays UK
|
1,305
|
205,168
|
2.55
|
|
Barclays
International1
|
763
|
77,330
|
3.96
|
|
Total Barclays UK and Barclays International
|
2,068
|
282,498
|
2.94
|
|
|
|
|
|
|
Three months ended 31.03.21
|
|
|
|
|
Barclays UK
|
1,281
|
204,663
|
2.54
|
|
Barclays
International1
|
755
|
78,230
|
3.92
|
|
Total Barclays UK and Barclays International
|
2,036
|
282,893
|
2.92
|
|
|
|
|
|
|
Three months ended 31.12.20
|
|
|
|
|
Barclays UK
|
1,317
|
204,315
|
2.56
|
|
Barclays
International1,2
|
696
|
81,312
|
3.41
|
|
Total Barclays UK and Barclays International
|
2,013
|
285,627
|
2.80
|
|
1
|
Barclays
International margins include IEL balances within the investment
banking business.
|
|
2
|
The
reclassification of expense of the premium paid for purchased
financial guarantees from net investment income to net interest
income was recognised in full in Q420 and resulted in a 0.48%
reduction on the Q420 Barclays International NIM and 0.14%
reduction on the Q420 Total Barclays UK and Barclays International
NIM. Had the equivalent impact been reflected in the respective
quarters, the Barclays International NIM would have been 3.77% in
Q420. Total Barclays UK and Barclays International NIMs would have
been 2.91% in Q420.
|
Remuneration
Deferred
bonuses are payable only once an employee meets certain conditions,
including a specified period of future service. This creates a
timing difference between the communication of the bonus pool and
the charges that are recognised in the income statement which are
reconciled in the table below to show the charge for performance
costs. Refer to the Remuneration Report on pages 162 to 199 of the
Barclays PLC Annual Report 2021 for further detail on remuneration.
The table below includes the other elements of compensation and
staff costs.
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
|
£m
|
£m
|
% Change
|
|
Incentive awards granted:
|
|
|
|
|
Current year bonus
|
1,278
|
1,090
|
(17)
|
|
Deferred bonus
|
667
|
490
|
(36)
|
|
Total incentive awards granted
|
1,945
|
1,580
|
(23)
|
|
|
|
|
|
|
Reconciliation of incentive awards granted to income statement
charge:
|
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(457)
|
(335)
|
(36)
|
|
Add: current year charges for deferred bonuses from previous
years
|
280
|
293
|
4
|
|
Other differences between incentive awards granted and income
statement charge
|
(23)
|
(34)
|
32
|
|
Income statement charge for performance costs
|
1,745
|
1,504
|
(16)
|
|
|
|
|
|
|
Other income statement charges:
|
|
|
|
|
Salaries
|
4,290
|
4,322
|
1
|
|
Social security costs
|
619
|
613
|
(1)
|
|
Post-retirement
benefits1
|
539
|
519
|
(4)
|
|
Other compensation costs
|
431
|
479
|
10
|
|
Total compensation costs2
|
7,624
|
7,437
|
(3)
|
|
|
|
|
|
|
Other resourcing costs
|
|
|
|
|
Outsourcing
|
357
|
342
|
(4)
|
|
Redundancy and restructuring
|
296
|
102
|
|
|
Temporary staff costs
|
109
|
102
|
(7)
|
|
Other
|
125
|
114
|
(10)
|
|
Total other resourcing costs
|
887
|
660
|
(34)
|
|
|
|
|
|
|
Total staff costs
|
8,511
|
8,097
|
(5)
|
|
|
|
|
|
|
Group compensation costs as a % of total income
|
34.7
|
34.2
|
|
|
Group staff costs as a % of total income
|
38.8
|
37.2
|
|
One of
the primary considerations for performance costs are Group and
business level returns, alongside other financial and non-financial
measures including, strategic delivery, risk and conduct, aligning
colleague, shareholder and wider stakeholder
interests.
|
1
|
Post-retirement
benefits charge includes £289m (2020: £279m) in respect
of defined contribution schemes and £250m (2020: £240m)
in respect of defined benefit schemes.
|
|
2
|
£484m
(2020: £451m) of Group compensation was capitalised as
internally generated software and excluded from the Staff cost
disclosed above.
|
Deferred
bonuses have been awarded and are expected to be charged to the
income statement in the years outlined in the table that
follows:
Year in which income statement charge
is expected to be taken for deferred bonuses awarded to
date1
|
|
Actual
|
|
Expected1,
2
|
|
|
Year ended
|
Year ended
|
|
Year ended
|
2023 and
|
|
|
31.12.20
|
31.12.21
|
|
31.12.22
|
beyond
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Deferred bonuses from 2018 and earlier bonus pools
|
158
|
49
|
|
9
|
1
|
|
Deferred bonuses from 2019 bonus pool
|
135
|
92
|
|
43
|
8
|
|
Deferred bonuses from 2020 bonus pool
|
155
|
139
|
|
130
|
67
|
|
Deferred bonuses from 2021 bonus pool
|
—
|
210
|
|
201
|
187
|
|
Income statement charge for deferred bonuses
|
448
|
490
|
|
383
|
263
|
|
1
|
The actual
amount charged depends upon whether conditions have been met and
may vary compared with the above expectation.
|
|
2
|
Does not
include the impact of grants which will be made in 2022 and
beyond.
|
Charging of deferred bonus
profile1
|
Grant date
|
Expected payment
date(s)2
and percentage of the deferred bonus
paid
|
Year
|
Income statement charge % profile of
2021 onwards3,4
|
|
March 2022
|
|
2021
|
35%
|
|
|
|
2022
|
34%
|
|
|
March 2023 (33.3%)
|
2023
|
21%
|
|
|
March 2024 (33.3%)
|
2024
|
9%
|
|
|
March 2025 (33.3%)
|
2025
|
1%
|
|
1
|
Represents a
typical vesting schedule for deferred awards. Certain awards may be
subject to a 4-, 5- or 7-year deferral in line with regulatory
requirements.
|
|
2
|
Share awards
may be subject to an additional holding period.
|
|
3
|
The income
statement charge is based on the period over which conditions are
met.
|
|
4
|
Income
statement charge profile % disclosed as a percentage of the award
excluding lapse.
|
Risk Management
Risk management and principal risks
The
roles and responsibilities of the business groups, Risk and
Compliance, in the management of risk in the Group are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the Group, the
process by which the Group sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking.
The
framework identifies nine principal risks: credit risk, market
risk, treasury and capital risk, climate risk, operational risk,
model risk, conduct risk, reputation risk and legal risk. Climate
risk was added with effect from 1 January 2022. Further detail on
these risks and how they are managed is available in the Barclays
PLC Annual Report 2021 or online at home.barclays/annualreport.
The
following section gives an overview of credit risk, market risk,
and treasury and capital risk for the period.
Credit Risk
Loans and advances at amortised cost by stage
The
table below presents an analysis of loans and advances at amortised
cost by gross exposure, impairment allowance, impairment charge and
coverage ratio by stage allocation and business segment as at 31
December 2021. Also included are off-balance sheet loan commitments
and financial guarantee contracts by gross exposure, impairment
allowance and coverage ratio by stage allocation as at 31 December
2021.
Impairment
allowance under IFRS 9 considers both the drawn and the undrawn
counterparty exposure. For retail portfolios, the total impairment
allowance is allocated to the drawn exposure to the extent that the
allowance does not exceed the exposure, as Expected Credit Losses
(ECL) is not reported separately. Any excess is reported on the
liability side of the balance sheet as a provision. For wholesale
portfolios, the impairment allowance on the undrawn exposure is
reported on the liability side of the balance sheet as a
provision.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
160,695
|
22,779
|
2,915
|
186,389
|
|
261
|
949
|
728
|
1,938
|
184,451
|
|
Barclays International
|
25,981
|
2,691
|
1,566
|
30,238
|
|
603
|
795
|
858
|
2,256
|
27,982
|
|
Head Office
|
3,735
|
429
|
705
|
4,869
|
|
2
|
36
|
347
|
385
|
4,484
|
|
Total Barclays Group retail
|
190,411
|
25,899
|
5,186
|
221,496
|
|
866
|
1,780
|
1,933
|
4,579
|
216,917
|
|
Barclays UK
|
35,571
|
1,917
|
969
|
38,457
|
|
153
|
43
|
111
|
307
|
38,150
|
|
Barclays International
|
92,341
|
13,275
|
1,059
|
106,675
|
|
187
|
192
|
458
|
837
|
105,838
|
|
Head Office
|
542
|
2
|
21
|
565
|
|
—
|
—
|
19
|
19
|
546
|
|
Total Barclays Group wholesale1
|
128,454
|
15,194
|
2,049
|
145,697
|
|
340
|
235
|
588
|
1,163
|
144,534
|
|
Total loans and advances at amortised cost
|
318,865
|
41,093
|
7,235
|
367,193
|
|
1,206
|
2,015
|
2,521
|
5,742
|
361,451
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
312,142
|
34,815
|
1,298
|
348,255
|
|
217
|
302
|
23
|
542
|
347,713
|
|
Total3
|
631,007
|
75,908
|
8,533
|
715,448
|
|
1,423
|
2,317
|
2,544
|
6,284
|
709,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
Year ended 31.12.21
|
|
|
|
Coverage ratio
|
|
Loan impairment charge/(release) and loan loss rate
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge/(release)
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.2
|
4.2
|
25.0
|
1.0
|
|
|
(227)
|
|
—
|
|
|
Barclays International
|
2.3
|
29.5
|
54.8
|
7.5
|
|
|
181
|
|
60
|
|
|
Head Office
|
0.1
|
8.4
|
49.2
|
7.9
|
|
|
—
|
|
—
|
|
|
Total Barclays Group retail
|
0.5
|
6.9
|
37.3
|
2.1
|
|
|
(46)
|
|
—
|
|
|
Barclays UK
|
0.4
|
2.2
|
11.5
|
0.8
|
|
|
122
|
|
32
|
|
|
Barclays International
|
0.2
|
1.4
|
43.2
|
0.8
|
|
|
(197)
|
|
—
|
|
|
Head Office
|
—
|
—
|
90.5
|
3.4
|
|
|
—
|
|
—
|
|
|
Total Barclays Group wholesale1
|
0.3
|
1.5
|
28.7
|
0.8
|
|
|
(75)
|
|
—
|
|
|
Total loans and advances at amortised cost
|
0.4
|
4.9
|
34.8
|
1.6
|
|
|
(121)
|
|
—
|
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
0.1
|
0.9
|
1.8
|
0.2
|
|
|
(514)
|
|
|
|
|
Other
financial assets subject to impairment3
|
|
|
|
|
|
|
(18)
|
|
|
|
|
Total
|
0.2
|
3.1
|
29.8
|
0.9
|
|
|
(653)
|
|
|
|
|
1
|
Includes Wealth and Private Banking exposures
measured on an individual basis, and excludes Business Banking
exposures, including BBLs of £9.4bn that are managed on a collective basis and
reported within BUK Retail. The net impact is a difference in total
exposure of £5,993m of balances reported as wholesale loans on
page 31 in the Loans and advances at amortised cost by product
disclosure.
|
|
2
|
Excludes loan
commitments and financial guarantees of £18.8bn carried at
fair value.
|
|
3
|
Other financial
assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets
at fair value through other comprehensive income and other assets.
These have a total gross exposure of £155.2bn and impairment
allowance of £114m. This comprises £6m ECL on
£154.9bn Stage 1 assets, £1m on £157m Stage 2 fair
value through other comprehensive income assets, cash collateral
and settlement balances and £107m on £110m Stage 3 other
assets.
|
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
153,250
|
23,896
|
2,732
|
179,878
|
|
332
|
1,509
|
1,147
|
2,988
|
176,890
|
|
Barclays
International1
|
21,048
|
5,500
|
1,992
|
28,540
|
|
396
|
1,329
|
1,205
|
2,930
|
25,610
|
|
Head Office
|
4,267
|
720
|
844
|
5,831
|
|
4
|
51
|
380
|
435
|
5,396
|
|
Total Barclays Group retail
|
178,565
|
30,116
|
5,568
|
214,249
|
|
732
|
2,889
|
2,732
|
6,353
|
207,896
|
|
Barclays UK
|
31,918
|
4,325
|
1,126
|
37,369
|
|
13
|
129
|
116
|
258
|
37,111
|
|
Barclays
International1
|
79,911
|
16,565
|
2,270
|
98,746
|
|
288
|
546
|
859
|
1,693
|
97,053
|
|
Head Office
|
570
|
—
|
33
|
603
|
|
—
|
—
|
31
|
31
|
572
|
|
Total Barclays Group wholesale2
|
112,399
|
20,890
|
3,429
|
136,718
|
|
301
|
675
|
1,006
|
1,982
|
134,736
|
|
Total loans and advances at amortised cost
|
290,964
|
51,006
|
8,997
|
350,967
|
|
1,033
|
3,564
|
3,738
|
8,335
|
342,632
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts3
|
289,939
|
52,891
|
2,330
|
345,160
|
|
256
|
758
|
50
|
1,064
|
344,096
|
|
Total4
|
580,903
|
103,897
|
11,327
|
696,127
|
|
1,289
|
4,322
|
3,788
|
9,399
|
686,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
Year ended 31.12.20
|
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss
rate5
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.2
|
6.3
|
42.0
|
1.7
|
|
|
1,070
|
|
59
|
|
|
Barclays
International1
|
1.9
|
24.2
|
60.5
|
10.3
|
|
|
1,680
|
|
589
|
|
|
Head Office
|
0.1
|
7.1
|
45.0
|
7.5
|
|
|
91
|
|
156
|
|
|
Total Barclays Group retail
|
0.4
|
9.6
|
49.1
|
3.0
|
|
|
2,841
|
|
133
|
|
|
Barclays UK
|
—
|
3.0
|
10.3
|
0.7
|
|
|
154
|
|
41
|
|
|
Barclays
International1
|
0.4
|
3.3
|
37.8
|
1.7
|
|
|
914
|
|
93
|
|
|
Head Office
|
—
|
—
|
93.9
|
5.1
|
|
|
—
|
|
—
|
|
|
Total Barclays Group wholesale2
|
0.3
|
3.2
|
29.3
|
1.4
|
|
|
1,068
|
|
78
|
|
|
Total loans and advances at amortised cost
|
0.4
|
7.0
|
41.5
|
2.4
|
|
|
3,909
|
|
111
|
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts3
|
0.1
|
1.4
|
2.1
|
0.3
|
|
|
776
|
|
|
|
|
Other
financial assets subject to impairment4
|
|
|
|
|
|
|
153
|
|
|
|
|
Total5
|
0.2
|
4.2
|
33.4
|
1.4
|
|
|
4,838
|
|
|
|
|
1
|
Private Banking
have refined the methodology to classify £5bn of their
exposure between Wholesale and Retail during the
year.
|
|
2
|
Includes Wealth
and Private Banking exposures measured on an individual basis, and
excludes Business Banking exposures that are managed on a
collective basis. The net impact is a difference in total exposure
of £7,551m of balances reported as wholesale loans on page 31
in the Loans and advances at amortised cost by product
disclosure.
|
|
3
|
Excludes loan
commitments and financial guarantees of £9.5bn carried at fair
value.
|
|
4
|
Other financial
assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets
at fair value through other comprehensive income and other assets.
These have a total gross exposure of £180.3bn and impairment
allowance of £165m. This comprises £11m ECL on
£175.7bn Stage 1 assets, £9m on £4.4bn Stage 2 fair
value through other comprehensive income assets, other assets and
cash collateral and settlement balances and £145m on
£154m Stage 3 other assets.
|
|
5
|
The loan loss
rate is 138 bps after applying the total impairment charge of
£4,838m.
|
Loans and advances at amortised cost by product
The
table below presents a breakdown of loans and advances at amortised
cost and the impairment allowance with stage allocation by asset
classification.
|
|
|
Stage 2
|
|
|
|
As at 31.12.21
|
Stage 1
|
Not past due
|
<=30 days past due
|
>30 days past due
|
Total
|
Stage 3
|
Total
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
148,058
|
17,133
|
1,660
|
707
|
19,500
|
2,122
|
169,680
|
|
Credit cards, unsecured loans and other retail lending
|
37,840
|
5,102
|
300
|
248
|
5,650
|
2,332
|
45,822
|
|
Wholesale loans
|
132,967
|
15,246
|
306
|
391
|
15,943
|
2,781
|
151,691
|
|
Total
|
318,865
|
37,481
|
2,266
|
1,346
|
41,093
|
7,235
|
367,193
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home loans
|
19
|
46
|
6
|
7
|
59
|
397
|
475
|
|
Credit cards, unsecured loans and other retail lending
|
824
|
1,493
|
85
|
123
|
1,701
|
1,504
|
4,029
|
|
Wholesale loans
|
363
|
248
|
4
|
3
|
255
|
620
|
1,238
|
|
Total
|
1,206
|
1,787
|
95
|
133
|
2,015
|
2,521
|
5,742
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
148,039
|
17,087
|
1,654
|
700
|
19,441
|
1,725
|
169,205
|
|
Credit cards, unsecured loans and other retail lending
|
37,016
|
3,609
|
215
|
125
|
3,949
|
828
|
41,793
|
|
Wholesale loans
|
132,604
|
14,998
|
302
|
388
|
15,688
|
2,161
|
150,453
|
|
Total
|
317,659
|
35,694
|
2,171
|
1,213
|
39,078
|
4,714
|
361,451
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
—
|
0.3
|
0.4
|
1.0
|
0.3
|
18.7
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.2
|
29.3
|
28.3
|
49.6
|
30.1
|
64.5
|
8.8
|
|
Wholesale loans
|
0.3
|
1.6
|
1.3
|
0.8
|
1.6
|
22.3
|
0.8
|
|
Total
|
0.4
|
4.8
|
4.2
|
9.9
|
4.9
|
34.8
|
1.6
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
138,639
|
16,651
|
1,785
|
876
|
19,312
|
2,234
|
160,185
|
|
Credit cards, unsecured loans and other retail lending
|
33,021
|
9,470
|
544
|
306
|
10,320
|
3,172
|
46,513
|
|
Wholesale loans
|
119,304
|
19,501
|
1,097
|
776
|
21,374
|
3,591
|
144,269
|
|
Total
|
290,964
|
45,622
|
3,426
|
1,958
|
51,006
|
8,997
|
350,967
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home Loans
|
33
|
57
|
13
|
14
|
84
|
421
|
538
|
|
Credit cards, unsecured loans and other retail lending
|
680
|
2,382
|
180
|
207
|
2,769
|
2,251
|
5,700
|
|
Wholesale Loans
|
320
|
650
|
50
|
11
|
711
|
1,066
|
2,097
|
|
Total
|
1,033
|
3,089
|
243
|
232
|
3,564
|
3,738
|
8,335
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
138,606
|
16,594
|
1,772
|
862
|
19,228
|
1,813
|
159,647
|
|
Credit cards, unsecured loans and other retail lending
|
32,341
|
7,088
|
364
|
99
|
7,551
|
921
|
40,813
|
|
Wholesale loans
|
118,984
|
18,851
|
1,047
|
765
|
20,663
|
2,525
|
142,172
|
|
Total
|
289,931
|
42,533
|
3,183
|
1,726
|
47,442
|
5,259
|
342,632
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
—
|
0.3
|
0.7
|
1.6
|
0.4
|
18.8
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.1
|
25.2
|
33.1
|
67.6
|
26.8
|
71.0
|
12.3
|
|
Wholesale loans
|
0.3
|
3.3
|
4.6
|
1.4
|
3.3
|
29.7
|
1.5
|
|
Total
|
0.4
|
6.8
|
7.1
|
11.8
|
7.0
|
41.5
|
2.4
|
The
increase in coverage on Credit cards, unsecured loans and other
retail lending Stage 2 not past due is driven by a reduction in
balances and the economic uncertainty adjustments held for specific
customers and clients who may be more vulnerable to the full
withdrawal of support and emerging economic
uncertainty.
Loans and advances at amortised cost by selected
sectors
The
table below presents a breakdown of drawn exposure and impairment
allowance for loans and advances at amortised cost, with stage
allocation for selected industry sectors within the wholesale loans
portfolio. The industry sectors have been selected based upon the
level of management focus they have received following the onset of
the COVID-19 pandemic.
The
gross loans and advances to selected sectors have decreased over
the year driven by repayments and lower drawdowns. The reduction in
provisions is informed by the improved macroeconomic outlook over
the course of 2021, partially offset by management judgments to
reflect the risk of uncertainty still prevailing within these
sectors. The wholesale portfolio also benefits from a hedge
protection programme that enables effective risk management against
systemic losses. An additional £0.1bn (2020: £0.1bn)
impairment allowance has been applied to the undrawn exposures not
included in the table below.
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Air travel
|
232
|
201
|
94
|
527
|
|
9
|
5
|
37
|
51
|
|
Hospitality and leisure
|
4,898
|
986
|
377
|
6,261
|
|
26
|
19
|
45
|
90
|
|
Oil and gas
|
1,765
|
576
|
62
|
2,403
|
|
14
|
9
|
21
|
44
|
|
Retail
|
3,901
|
780
|
192
|
4,873
|
|
38
|
14
|
39
|
91
|
|
Shipping
|
382
|
201
|
25
|
608
|
|
9
|
8
|
—
|
17
|
|
Transportation
|
1,166
|
417
|
156
|
1,739
|
|
18
|
9
|
29
|
56
|
|
Total
|
12,344
|
3,161
|
906
|
16,411
|
|
114
|
64
|
171
|
349
|
|
Total of Wholesale exposures
|
9%
|
20%
|
33%
|
11%
|
|
31%
|
25%
|
28%
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Air travel
|
367
|
525
|
56
|
948
|
|
9
|
27
|
23
|
59
|
|
Hospitality and leisure
|
4,440
|
2,387
|
313
|
7,140
|
|
53
|
115
|
61
|
229
|
|
Oil and gas
|
1,754
|
854
|
465
|
3,073
|
|
31
|
27
|
140
|
198
|
|
Retail
|
3,907
|
1,153
|
283
|
5,343
|
|
78
|
51
|
108
|
237
|
|
Shipping
|
308
|
389
|
12
|
709
|
|
2
|
30
|
1
|
33
|
|
Transportation
|
1,148
|
253
|
125
|
1,526
|
|
19
|
10
|
57
|
86
|
|
Total
|
11,924
|
5,561
|
1,254
|
18,739
|
|
192
|
260
|
390
|
842
|
|
Total of Wholesale exposures
|
10%
|
26%
|
35%
|
13%
|
|
60%
|
37%
|
37%
|
40%
|
The
coverage ratio for selected sectors has decreased from 4.5% as at
31 December 2020 to 2.1% as at 31 December 2021 due to improved
macroeconomic outlook. Non Default coverage remains elevated as
compared to pre COVID-19 level.
Exposure
to UK Commercial Real Estate £8.5bn (2020: £9.9bn)
remained stable and is predominantly in Stage 1 82% (2020: 83%).
The loan portfolio is well collateralised, hence a low coverage of
1% (ECL: £0.1bn). Exposure included in Stage 3 4% (2020: 4%)
having a coverage ratio of 17% (2020: 20%).
Movement in gross exposures and impairment allowance including
provisions for loan commitments and financial
guarantees
The
following tables present a reconciliation of the opening to the
closing balance of the exposure and impairment allowance. An
explanation of the methodology used to determine credit impairment
provisions is included in the Barclays PLC Annual Report 2021 on
page 348. Transfers between stages in the table have been reflected
as if they had taken place at the beginning of the year. The
movements are measured over a 12-month period.
|
Loans and advances at amortised cost
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2021
|
138,639
|
33
|
19,312
|
84
|
2,234
|
421
|
160,185
|
538
|
|
Transfers from Stage 1 to Stage 2
|
(7,672)
|
(2)
|
7,672
|
2
|
—
|
—
|
—
|
—
|
|
Transfers from Stage 2 to Stage 1
|
5,336
|
32
|
(5,336)
|
(32)
|
—
|
—
|
—
|
—
|
|
Transfers to Stage 3
|
(282)
|
—
|
(469)
|
(9)
|
751
|
9
|
—
|
—
|
|
Transfers from Stage 3
|
35
|
1
|
203
|
5
|
(238)
|
(6)
|
—
|
—
|
|
Business
activity in the year1
|
32,744
|
7
|
1,243
|
5
|
4
|
—
|
33,991
|
12
|
|
Refinements
to models used for calculation2
|
—
|
—
|
—
|
(4)
|
—
|
38
|
—
|
34
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(8,131)
|
(50)
|
(1,090)
|
12
|
(216)
|
(26)
|
(9,437)
|
(64)
|
|
Final repayments
|
(12,039)
|
(2)
|
(2,009)
|
(4)
|
(392)
|
(18)
|
(14,440)
|
(24)
|
|
Disposals3
|
(572)
|
—
|
(26)
|
—
|
—
|
—
|
(598)
|
—
|
|
Write-offs4
|
—
|
—
|
—
|
—
|
(21)
|
(21)
|
(21)
|
(21)
|
|
As at 31 December 20215
|
148,058
|
19
|
19,500
|
59
|
2,122
|
397
|
169,680
|
475
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2021
|
33,021
|
680
|
10,320
|
2,769
|
3,172
|
2,251
|
46,513
|
5,700
|
|
Transfers from Stage 1 to Stage 2
|
(1,894)
|
(78)
|
1,894
|
78
|
—
|
—
|
—
|
—
|
|
Transfers
from Stage 2 to Stage 1
|
4,717
|
1,174
|
(4,717)
|
(1,174)
|
—
|
—
|
—
|
—
|
|
Transfers to Stage 3
|
(529)
|
(22)
|
(790)
|
(370)
|
1,319
|
392
|
—
|
—
|
|
Transfers from Stage 3
|
55
|
26
|
32
|
19
|
(87)
|
(45)
|
—
|
—
|
|
Business
activity in the year1
|
7,842
|
119
|
257
|
62
|
42
|
19
|
8,141
|
200
|
|
Refinements
to models used for calculation2
|
—
|
(5)
|
—
|
(33)
|
—
|
14
|
—
|
(24)
|
|
Net
drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes6
|
(2,793)
|
(1,030)
|
(848)
|
389
|
(165)
|
620
|
(3,806)
|
(21)
|
|
Final repayments
|
(2,579)
|
(40)
|
(498)
|
(39)
|
(212)
|
(92)
|
(3,289)
|
(171)
|
|
Disposals3
|
—
|
—
|
—
|
—
|
(287)
|
(205)
|
(287)
|
(205)
|
|
Write-offs4
|
—
|
—
|
—
|
—
|
(1,450)
|
(1,450)
|
(1,450)
|
(1,450)
|
|
As at 31 December 20215
|
37,840
|
824
|
5,650
|
1,701
|
2,332
|
1,504
|
45,822
|
4,029
|
|
1
|
Business
activity in the year does not include additional drawdowns on the
existing facility which are reported under “Net drawdowns,
repayments, net re-measurement and movements due to exposure and
risk parameter changes”.
|
|
2
|
Refinements to
models used for calculation include a £34m movement in Home
loans, £24m in Credit cards, unsecured loans and other retail
lending portfolio and £19m in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
review the output of models to determine accuracy of the ECL
calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the
businesses.
|
|
3
|
The £598m disposals reported within Home
loans relate to transfer of UK Mortgage facilities to a non
consolidated special purpose vehicle for the purpose of
securitisation. £287m disposals reported within Credit cards,
unsecured loans and other retail lending portfolio relates to debt
sales undertaken during the year. The £1.7bn disposal reported
within Wholesale loans includes a sale of £1.0bn of Barclays
Asset Finance and a £0.7bn of debt
sales.
|
|
4
|
In 2021, gross
write-offs amounted to £1,836m (2020: £1,964m) and post
write-off recoveries amounted to £66m (2020: £35m). Net
write-offs represent gross write-offs less post write-off
recoveries and amounted to £1,770m (2020:
£1,929m).
|
|
5
|
Other financial
assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets
at fair value through other comprehensive income and other assets.
These have a total gross exposure of £155.2bn (December 2020:
£180.3bn) and impairment allowance of £114m (December
2020: £165m). This comprises £6m ECL (December 2020:
£11m) on £154.9bn stage 1 assets (December 2020:
£175.7bn), £1m (December 2020: £9m) on £157m
stage 2 fair value through other comprehensive income assets, other
assets and cash collateral and settlement balances (December 2020:
£4.4bn) and £107m (December 2020: £145m) on
£110m stage 3 other assets (December 2020:
£154m).
|
|
6
|
Transfers and
risk parameter changes include a £0.3bn (2020: £0.6bn)
net release in ECL arising from a reclassification of £1.9bn
(2020: £2.0bn) gross loans and advances from Stage 2 to Stage
1 in Credit cards, unsecured loans and other retail lending. The
reclassification followed a review of back-testing of results which
indicated that accuracy of origination probability of default
characteristics require management adjustments to correct and was
first established in Q220.
|
|
Loans and advances at amortised cost
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
|
Wholesale loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2021
|
119,304
|
320
|
21,374
|
711
|
3,591
|
1,066
|
144,269
|
2,097
|
|
Transfers from Stage 1 to Stage 2
|
(6,115)
|
(19)
|
6,115
|
19
|
—
|
—
|
—
|
—
|
|
Transfers from Stage 2 to Stage 1
|
9,137
|
257
|
(9,137)
|
(257)
|
—
|
—
|
—
|
—
|
|
Transfers to Stage 3
|
(804)
|
(4)
|
(377)
|
(21)
|
1,181
|
25
|
—
|
—
|
|
Transfers from Stage 3
|
580
|
23
|
410
|
22
|
(990)
|
(45)
|
—
|
—
|
|
Business
activity in the year1
|
34,804
|
95
|
1,774
|
18
|
283
|
50
|
36,861
|
163
|
|
Refinements
to models used for calculation2
|
—
|
8
|
—
|
11
|
—
|
—
|
—
|
19
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(417)
|
(268)
|
721
|
(68)
|
(211)
|
67
|
93
|
(269)
|
|
Final repayments
|
(22,219)
|
(34)
|
(4,734)
|
(174)
|
(545)
|
(131)
|
(27,498)
|
(339)
|
|
Disposals3
|
(1,303)
|
(15)
|
(203)
|
(6)
|
(163)
|
(47)
|
(1,669)
|
(68)
|
|
Write-offs4
|
—
|
—
|
—
|
—
|
(365)
|
(365)
|
(365)
|
(365)
|
|
As at 31 December 20215
|
132,967
|
363
|
15,943
|
255
|
2,781
|
620
|
151,691
|
1,238
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of ECL movement to credit impairment
(release)/charge for the period
|
£m
|
|
Home loans
|
|
|
|
|
|
|
|
(42)
|
|
Credit cards, unsecured loans and other retail lending
|
|
(16)
|
|
Wholesale loans
|
|
(426)
|
|
ECL movement excluding assets derecognised due to disposals and
write-offs
|
|
(484)
|
|
Recoveries
and reimbursements6
|
|
240
|
|
Exchange
and other adjustments7
|
|
123
|
|
Credit impairment release on loan commitments and other financial
guarantees
|
|
(514)
|
|
Credit
impairment release on other financial assets5
|
|
(18)
|
|
Credit impairment release for the year
|
|
|
|
|
|
|
|
(653)
|
|
1
|
Business
activity in the year does not include additional drawdowns on the
existing facility which are reported under “Net drawdowns,
repayments, net re-measurement and movements due to exposure and
risk parameter changes”.
|
|
2
|
Refinements to
models used for calculation include a £34m movement in Home
Loans, £24m in Credit cards, unsecured loans and other retail
lending portfolio and £19m in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
review the output of models to determine accuracy of the ECL
calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the
businesses.
|
|
3
|
The £598m
disposals reported within Home loans relate to transfer of UK
Mortgage facilities to a non consolidated special purpose vehicle
for the purpose of securitisation. The £287m disposals
reported within Credit cards, unsecured loans and other retail
lending portfolio relates to debt sales undertaken during the year.
The £1.7bn disposal reported within Wholesale loans includes a
£1.0bn sale of Barclays Asset Finance and a £0.7bn of
debt sales.
|
|
4
|
In 2021, gross
write-offs amounted to £1,836m (2020: £1,964m) and post
write-off recoveries amounted to £66m (2020: £35m). Net
write-offs represent gross write-offs less post write-off
recoveries and amounted to £1,770m (2020:
£1,929m).
|
|
5
|
Other financial
assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets
at fair value through other comprehensive income and other assets.
These have a total gross exposure of £155.2bn (December 2020:
£180.3bn) and impairment allowance of £114m (December
2020: £165m). This comprises £6m ECL (December 2020:
£11m) on £154.9bn stage 1 assets (December 2020:
£175.7bn), £1m (December 2020: £9m) on £58m
stage 2 fair value through other comprehensive income assets, other
assets and cash collateral and settlement balances (December 2020:
£4.4bn) and £107m (December 2020: £145m) on
£110m stage 3 other assets (December 2020:
£154m).
|
|
6
|
Recoveries and
reimbursements includes a net reduction in amounts recoverable from
financial guarantee contracts held with third parties of £306m
(2020 gain: £364m) and post write off recoveries of £66m
(2020: £35m).
|
|
7
|
Includes
foreign exchange and interest and fees in
suspense.
|
|
Loan commitments and financial guarantees
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2021
|
11,861
|
—
|
516
|
—
|
5
|
—
|
12,382
|
—
|
|
Net transfers between stages
|
(131)
|
—
|
124
|
—
|
7
|
—
|
—
|
—
|
|
Business activity in the year
|
7,034
|
—
|
—
|
—
|
—
|
—
|
7,034
|
—
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(7,556)
|
—
|
(64)
|
—
|
(4)
|
—
|
(7,624)
|
—
|
|
Limit management and final repayments
|
(375)
|
—
|
(44)
|
—
|
(5)
|
—
|
(424)
|
—
|
|
As at 31 December 2021
|
10,833
|
—
|
532
|
—
|
3
|
—
|
11,368
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2021
|
114,371
|
55
|
12,117
|
305
|
229
|
23
|
126,717
|
383
|
|
Net transfers between stages
|
5,769
|
206
|
(6,379)
|
(213)
|
610
|
7
|
—
|
—
|
|
Business activity in the year
|
11,206
|
—
|
430
|
—
|
2
|
—
|
11,638
|
—
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(742)
|
(207)
|
217
|
(24)
|
(526)
|
(10)
|
(1,051)
|
(241)
|
|
Limit management and final repayments
|
(7,785)
|
(4)
|
(667)
|
(7)
|
(97)
|
—
|
(8,549)
|
(11)
|
|
As at 31 December 2021
|
122,819
|
50
|
5,718
|
61
|
218
|
20
|
128,755
|
131
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale loans
|
|
|
|
|
|
|
|
|
|
As at 1 January 2021
|
163,707
|
201
|
40,258
|
453
|
2,096
|
27
|
206,061
|
681
|
|
Net transfers between stages
|
8,227
|
221
|
(7,174)
|
(215)
|
(1,053)
|
(6)
|
—
|
—
|
|
Business activity in the year
|
44,085
|
14
|
4,658
|
102
|
10
|
—
|
48,753
|
116
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
8,819
|
(229)
|
(151)
|
7
|
515
|
(11)
|
9,183
|
(233)
|
|
Limit management and final repayments
|
(46,348)
|
(40)
|
(9,026)
|
(106)
|
(491)
|
(7)
|
(55,865)
|
(153)
|
|
As at 31 December 2021
|
178,490
|
167
|
28,565
|
241
|
1,077
|
3
|
208,132
|
411
|
Management adjustments to models for impairment
Management
adjustments to impairment models are applied in order to factor in
certain conditions or changes in policy that are not fully
incorporated into the impairment models, or to reflect additional
facts and circumstances at the period end. Management adjustments
are reviewed and incorporated into future model development where
applicable.
Total
management adjustments to impairment allowance are presented by
product below:
Overview of management adjustments to
models for impairment allowance1
|
|
As at 31.12.21
|
As at 31.12.20
|
|
|
Management adjustments to impairment allowances
|
Proportion of total impairment allowances
|
Management adjustments to impairment allowances
|
Proportion of total impairment allowances
|
|
|
£m
|
%
|
£m
|
%
|
|
Home loans
|
103
|
21.7
|
131
|
24.3
|
|
Credit cards, unsecured loans and other retail lending
|
1,362
|
32.7
|
1,234
|
20.3
|
|
Wholesale loans
|
21
|
1.3
|
23
|
0.8
|
|
Total
|
1,486
|
23.6
|
1,388
|
14.8
|
|
1
|
Positive values
reflect an increase in impairment allowance and negative values
reflect a reduction in the impairment
allowances.
|
Management adjustments to model are
presented by products below1:
|
|
Impairment allowance pre management
adjustments2
|
Economic uncertainty adjustments (a)
|
Other adjustments (b)
|
Total management adjustments (a+b)
|
Total impairment
allowance3
|
|
|
|
As at 31 December 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
372
|
72
|
31
|
103
|
475
|
|
Credit cards, unsecured loans and other retail lending
|
2,798
|
1,217
|
145
|
1,362
|
4,160
|
|
Wholesale
loans4
|
1,628
|
403
|
(382)
|
21
|
1,649
|
|
Total
|
4,798
|
1,692
|
(206)
|
1,486
|
6,284
|
|
As at 31 December 2020
|
|
|
|
|
|
|
Home loans
|
407
|
21
|
110
|
131
|
538
|
|
Credit cards, unsecured loans and other retail lending
|
4,849
|
1,625
|
(391)
|
1,234
|
6,083
|
|
Wholesale
loans4
|
2,755
|
421
|
(398)
|
23
|
2,778
|
|
Total
|
8,011
|
2,067
|
(679)
|
1,388
|
9,399
|
|
1
|
Positive values
reflect an increase in impairment allowance and negative values
reflect a reduction in the impairment
allowance.
|
|
2
|
Includes
£4.1bn (2020: £6.8bn) of modelled ECL, £0.5bn (2020:
£0.9bn) of individually assessed impairments and £0.2bn
(2020: £0.3bn) ECL from non-modelled
exposures.
|
|
3
|
Total
impairment allowance consists of ECL stock on drawn and undrawn
exposures.
|
|
4
|
Other
adjustments include £(0.4)bn related to Bounce back loan
government guarantee in 2021. In the prior year, the adjustment was
£(0.1)bn and was presented under economic
uncertainty.
|
Economic uncertainty adjustments
Throughout
the COVID-19 pandemic in 2020 and 2021, macroeconomic forecasts
anticipated lasting impacts to unemployment levels and customer and
client stress. More recent macroeconomic forecasts indicated that
the outlook has improved, with measures of government and bank
support having tapered down and no material deterioration in
customer delinquencies observed to date. However, the degree of
economic uncertainty remains relatively high: credit deterioration
may still occur when support measures are fully withdrawn across
geographies; emerging supply chain disruption and inflationary
pressures may challenge economic stability; and economic consensus
may not capture the range of economic uncertainty associated with
fast moving new COVID-19 variants such as Omicron.
Given
this backdrop, management has recognised economic uncertainty
adjustments to modelled outputs to address these sources of
uncertainties and ensure that the potential impacts of stress are
provided for. This uncertainty continues to be captured in two
distinct ways. Firstly, customer uncertainty: the identification of
customers and clients who may be more vulnerable to the withdrawal
of support schemes and emerging economic instability; and secondly,
model uncertainty: to capture the impact from model limitations and
sensitivities to specific macroeconomic parameters which are
applied at a portfolio level.
The
economic uncertainty adjustments of £1.7bn (2020 £2.1bn)
includes customer and client uncertainty provisions of £1.5bn
(2020 £1.7bn) and model uncertainty provisions of £0.2bn
(2020 £0.4bn).
Customer uncertainty provisions comprises:
|
a.
|
An
adjustment of £0.4bn (2020: £0.7bn) to adjust the
probability of default (PDs) to pre-COVID-19 levels to offset the
temporary improvement to PDs in light of reduced customer spend
behaviour and support measures. The decrease of £0.3bn is
primarily driven by some normalisation of customer spending
behaviour during the year resulting in a partial release of the
PMA.
|
|
b.
|
A
vulnerable customer adjustment of £1.1bn (2020: £1.0bn)
has been applied to customers and clients considered potentially
vulnerable to the withdrawal of support schemes and emerging
economic instability against which lifetime coverage is applied.
This is split between credit cards, unsecured loans and other
retail lending of £0.8bn (2020: £0.8bn) and wholesale
loans of £0.3bn (2020: £0.2bn). The latter includes an
adjustment of £0.1bn (2020: £nil) to reflect possible
cross default risk on Barclays lending in respect of clients who
have taken bounce back loans.
|
Model uncertainty provisions reduced by £0.2bn
reflecting an update in adjustment in response to the modelled
provisions following the update in the Q421 scenarios.
Other adjustments
Other
adjustments are operational in nature and are expected to remain in
place until they can be corrected in the underlying models. These
adjustments result from data limitations and model performance
related issues identified through established governance processes.
The quantum of adjustments reduced in response to the Q421
scenarios as well as model enhancements made during the year.
Material adjustments consists of the following:
Home loans: The low average
LTV nature of the UK Home Loans portfolio means that modelled ECL
estimates are low and do not reflect the tail risk with severe
economic stress. An adjustment is made to maintain an appropriate
level of ECL informed by model monitoring.
Credit cards, unsecured loans and other retail
lending: Includes an
adjustment for model inaccuracies informed by model monitoring and
a reclassification of loans and advances from Stage 2 to Stage 1 in
credit cards. The reclassification followed a review of
back-testing results which indicated that accuracy of origination
probability of default characteristics require management adjustments to correct and was first
established in Q220. This adjustment has reduced driven by the
macroeconomic scenarios in Q421 and the reduction in exposure on
this portfolio.
Wholesale loans: Materially comprises of an adjustment
applied on bounce back loans of £(0.4)bn to reverse out the
modelled charge which does not consider the government guarantee
when calculating the ECL.
Management adjustments of £(0.4)bn within wholesale loans in
2020 primarily comprised an adjustment to offset modelled ECL
output in the Investment Bank to limit excessive ECL sensitivity to
the macroeconomic variable for Federal Tax
Receipts.
Measurement uncertainty
Management
has applied economic uncertainty and other adjustments to modelled
ECL outputs. Economic uncertainty adjustments reflect the potential
vulnerability of specific customers and clients who may be more
vulnerable to the full withdrawal of support and emerging economic
instability and the degree to which economic consensus may not have
captured the range of economic uncertainty associated with new
variants of COVID-19. As a result, ECL is higher than would be the
case if it were based on forecast economic scenarios
alone.
The
measurement of modelled ECL involves complexity and judgement,
including estimation of probabilities of default (PD), loss given
default (LGD), a range of unbiased future economic scenarios,
estimation of expected lives, estimation of exposures at default
(EAD) and assessing significant increases in credit risk. The Group
uses a five-scenario model to calculate ECL. An external consensus
forecast is assembled from key sources, including HM Treasury
(short and medium term forecasts), Bloomberg (based on median of
economic forecasts) and the Urban Land Institute (for US House
Prices), which forms the Baseline scenario. In addition, two
adverse scenarios (Downside 1 and Downside 2) and two favourable
scenarios (Upside 1 and Upside 2) are derived, with associated
probability weightings. The adverse scenarios are calibrated to a
broadly similar severity to Barclays’ internal stress tests
and stress scenarios provided by regulators whilst also considering
IFRS 9 specific sensitivities and non-linearity. The favourable
scenarios are designed to reflect plausible upside risks to the
Baseline scenario which are broadly consistent with the economic
narrative approved by the Senior Scenario Review Committee. All
scenarios are regenerated at a minimum semi-annually. The scenarios
include eight key economic variables, (GDP, unemployment, House
Price Index (HPI) and base rates in both the UK and US markets),
and expanded variables using statistical models based on historical
correlations. The upside and downside shocks are designed to evolve
over a five-year stress horizon, with all five scenarios converging
to a steady state after approximately eight years.
Scenarios
used to calculate the Group’s ECL charge were reviewed and
updated regularly throughout 2021, following the continuation of
the COVID-19 pandemic throughout the year, including the emergence
of the Omicron variant and the global vaccination rollout. The
current Baseline scenario reflects the latest consensus economic
forecasts; the steady recovery in GDP in both the UK and US
continues with UK GDP returning to pre-COVID-19 pandemic levels by
Q222. UK unemployment peaks at 5.0% in Q122 and US unemployment
continues to decline. In the Downside 2 scenario, inflation
continues to accelerate and the UK bank rate is increased to 4.0%
and the US federal funds rate is increased to 3.5%, by the end of
2022, leading to a further downturn in GDP until Q322. Unemployment
peaks in Q322 at 9.2% in the UK and 9.5% in the US. In the Upside 2
scenario, inflation expectations and global energy prices stabilise
and GDP growth rises as COVID-19 risks continue to decline helping
to release more of the pent-up demand and accumulated household
savings into the economy. Unemployment rates decline
gradually.
The
methodology for estimating probability weights used in calculating
ECL involves simulating a range of future paths for UK and US GDP
using historical data. The five scenarios are mapped against the
distribution of these future paths, with the median centred around
the Baseline such that scenarios further from the Baseline attract
a lower weighting. A single set of five scenarios is used across
all portfolios and all five weights are normalised to equate to
100%. The same scenarios and weights that are used in the
estimation of expected credit losses are also used for
Barclays’ internal planning purposes. The impacts across the
portfolios are different because of the sensitivities of each of
the portfolios to specific macroeconomic variables, for example,
mortgages are highly sensitive to house prices, credit cards and
unsecured consumer loans are highly sensitive to
unemployment.
The
changes to the scenario weights in 2021 primarily reflect changes
made to the severity of the scenarios. The Downside 2 scenario has
been aligned with the internal stress test, which is informed by a
weaker GDP outlook. The effect of this is to move the Downside 2
scenario further away from the Baseline, resulting in a lower
weighting. For further details see page 39.
Although
the macroeconomic outlook has improved, the level of uncertainty
remains relatively high. A key judgement is the extent to which
economic uncertainty experienced throughout the COVID-19 pandemic
now reflects additional challenges, namely inflationary pressures
and global supply chain disruptions. Inflationary headwinds have
yet to materially impact customer affordability and corporate
profitability data. A balanced approach has therefore been adopted
in the sizing of expert judgements as we move away from a period
characterised by significant customer support.
The
economic uncertainty adjustments of £1.7bn (FY20: £2.1bn)
have been applied as overlays to the modelled ECL output. These
adjustments consist of a customer and client uncertainty provision
of £1.5bn (FY20 £1.7bn) and a model uncertainty provision
of £0.2bn (FY20 £0.4bn). For further details see pages 36
to 37.
The
tables below show the key consensus macroeconomic variables used in
the Baseline scenario (5 year annual paths), the probability
weights applied to each scenario and the macroeconomic variables by
scenario using ‘specific bases’ i.e. the most extreme
position of each variable in the context of the scenario, for
example, the highest unemployment for downside scenarios and the
lowest unemployment for upside scenarios. 5-year average tables
provide additional transparency. Annual paths show quarterly
averages for the year (unemployment and base rate) or change in the
year (GDP and HPI).
|
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
|
As at 31 December 2021
|
%
|
%
|
%
|
%
|
%
|
|
UK
GDP1
|
6.2
|
4.9
|
2.3
|
1.9
|
1.7
|
|
UK
unemployment2
|
4.8
|
4.7
|
4.5
|
4.3
|
4.2
|
|
UK
HPI3
|
4.7
|
1.0
|
1.9
|
1.9
|
2.3
|
|
UK bank rate
|
0.1
|
0.8
|
1.0
|
1.0
|
0.8
|
|
US
GDP1
|
5.5
|
3.9
|
2.6
|
2.4
|
2.4
|
|
US
unemployment4
|
5.5
|
4.2
|
3.6
|
3.6
|
3.6
|
|
US
HPI5
|
11.8
|
4.5
|
5.2
|
4.9
|
5.0
|
|
US
federal funds rate3
|
0.2
|
0.3
|
0.9
|
1.2
|
1.3
|
|
|
|
|
|
|
|
|
|
2020
|
2021
|
2022
|
2023
|
2024
|
|
As at 31 December 2020
|
%
|
%
|
%
|
%
|
%
|
|
UK
GDP1
|
(10.1)
|
6.3
|
3.3
|
2.6
|
2.0
|
|
UK
unemployment2
|
4.5
|
6.7
|
6.4
|
5.8
|
5.1
|
|
UK
HPI3
|
6.1
|
2.4
|
2.3
|
5.0
|
2.4
|
|
UK bank rate
|
0.2
|
—
|
(0.1)
|
—
|
0.1
|
|
US
GDP1
|
(4.4)
|
3.9
|
3.1
|
2.9
|
2.9
|
|
US
unemployment4
|
8.4
|
6.9
|
5.7
|
5.6
|
5.6
|
|
US
HPI5
|
2.3
|
2.8
|
4.7
|
4.7
|
4.7
|
|
US
federal funds rate3
|
0.5
|
0.3
|
0.3
|
0.3
|
0.4
|
|
1
|
Average Real
GDP seasonally adjusted change in year.
|
|
2
|
Average UK
unemployment rate 16-year+.
|
|
3
|
Change in
average yearly UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
|
4
|
Average US
civilian unemployment rate 16-year+.
|
|
5
|
Change in
average yearly US HPI = FHFA House Price Index, relative to prior
year end.
|
|
Scenario probability weighting
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
|
%
|
%
|
%
|
%
|
%
|
|
As at 31 December 2021
|
|
|
|
|
|
|
Scenario probability weighting
|
20.9
|
27.2
|
30.1
|
14.8
|
7.0
|
|
As at 31 December 2020
|
|
|
|
|
|
|
Scenario probability weighting
|
20.2
|
24.2
|
24.7
|
15.5
|
15.4
|
Specific
bases show the most extreme position of each variable in the
context of the scenario, for example, the highest unemployment for
downside scenarios, average unemployment for baseline scenarios and
lowest unemployment for upside scenarios. GDP and HPI downside and
upside scenario data represents the lowest and highest points
relative to the start point in the 20 quarter period.
|
Macroeconomic variables (specific
bases)1
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
As at 31 December 2021
|
%
|
%
|
%
|
%
|
%
|
|
UK
GDP2
|
21.4
|
18.3
|
3.4
|
(1.6)
|
(1.6)
|
|
UK
unemployment3
|
4.0
|
4.1
|
4.5
|
7.0
|
9.2
|
|
UK
HPI4
|
35.7
|
23.8
|
2.4
|
(12.7)
|
(29.9)
|
|
UK bank
rate3
|
0.1
|
0.1
|
0.7
|
2.8
|
4.0
|
|
US
GDP2
|
22.8
|
19.6
|
3.4
|
1.5
|
(1.3)
|
|
US
unemployment3
|
3.3
|
3.5
|
4.1
|
6.8
|
9.5
|
|
US
HPI4
|
53.3
|
45.2
|
6.2
|
2.2
|
(5.0)
|
|
US
federal funds rate3
|
0.1
|
0.1
|
0.8
|
2.3
|
3.5
|
|
|
|
|
|
|
|
|
As at 31 December 2020
|
|
|
|
|
|
|
UK
GDP2
|
14.2
|
8.8
|
0.7
|
(22.1)
|
(22.1)
|
|
UK
unemployment3
|
4.0
|
4.0
|
5.7
|
8.4
|
10.1
|
|
UK
HPI4
|
48.2
|
30.8
|
3.6
|
(4.5)
|
(18.3)
|
|
UK bank
rate3
|
0.1
|
0.1
|
—
|
0.6
|
0.6
|
|
US
GDP2
|
15.7
|
12.8
|
1.6
|
(10.6)
|
(10.6)
|
|
US
unemployment3
|
3.8
|
3.8
|
6.4
|
13.0
|
13.7
|
|
US
HPI4
|
42.2
|
30.9
|
3.8
|
(3.7)
|
(15.9)
|
|
US
federal funds rate3
|
0.1
|
0.1
|
0.3
|
1.3
|
1.3
|
|
1
|
UK GDP = Real
GDP growth seasonally adjusted; UK unemployment = UK unemployment
rate 16-year+; UK HI = Halifax All Houses, All Buyers Index; US GDP
= Real GDP growth seasonally adjusted; US unemployment = US
civilian unemployment rate 16-year+; US HPI = FHFA House Price
Index. 20 quarter period starts from Q121 (2020:
Q120).
|
|
2
|
Maximum growth
relative to Q420 (2020: Q419), based on 20 quarter period in Upside
scenarios; 5-year yearly average Compound Annual Growth Rate (CAGR)
in Baseline; minimum growth relative to Q420 (2020: Q419), based on
20 quarter period in Downside scenarios.
|
|
3
|
Lowest quarter
in 20 quarter period in Upside scenarios; 5-year average in
Baseline; highest quarter in 20 quarter period in Downside
scenarios.
|
|
4
|
Maximum growth
relative to Q420 (2020: Q419), based on 20 quarter period in Upside
scenarios; 5-year quarter end CAGR in Baseline; minimum growth
relative to Q420 (2020: Q419), based on 20 quarter period in
Downside scenarios.
|
Average
basis represents the average quarterly value of variables in the 20
quarter period with GDP and HPI based on yearly average and
quarterly CAGRs respectively.
|
Macroeconomic variables (5 year
averages)1
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
As at 31 December 2021
|
%
|
%
|
%
|
%
|
%
|
|
UK
GDP2
|
4.4
|
3.9
|
3.4
|
2.7
|
1.8
|
|
UK
unemployment3
|
4.3
|
4.4
|
4.5
|
5.8
|
7.0
|
|
UK
HPI4
|
6.3
|
4.4
|
2.4
|
0.3
|
(2.0)
|
|
UK bank
rate3
|
0.3
|
0.5
|
0.7
|
1.7
|
2.3
|
|
US
GDP2
|
4.4
|
3.9
|
3.4
|
2.4
|
1.3
|
|
US
unemployment3
|
3.9
|
4.0
|
4.1
|
5.7
|
7.1
|
|
US
HPI4
|
8.9
|
7.7
|
6.2
|
3.6
|
1.4
|
|
US
federal funds rate3
|
0.5
|
0.6
|
0.8
|
1.5
|
2.1
|
|
|
|
|
|
|
|
|
As at 31 December 2020
|
|
|
|
|
|
|
UK
GDP2
|
2.5
|
1.6
|
0.7
|
0.1
|
(0.9)
|
|
UK
unemployment3
|
5.0
|
5.3
|
5.7
|
6.5
|
7.2
|
|
UK
HPI4
|
8.2
|
5.5
|
3.6
|
(0.2)
|
(3.6)
|
|
UK bank
rate3
|
0.3
|
0.2
|
—
|
—
|
(0.1)
|
|
US
GDP2
|
2.9
|
2.4
|
1.6
|
0.8
|
0.1
|
|
US
unemployment3
|
5.3
|
5.7
|
6.4
|
8.3
|
10.4
|
|
US
HPI4
|
7.3
|
5.5
|
3.8
|
0.8
|
(3.0)
|
|
US
federal funds rate3
|
0.5
|
0.5
|
0.3
|
0.3
|
0.3
|
|
1
|
UK GDP = Real
GDP growth seasonally adjusted; UK unemployment = UK unemployment
rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index; US
GDP Real GDP growth seasonally adjusted; US unemployment = US
civilian unemployment rate 16-year+; US HPI = FHFA House Price
Index.
|
|
2
|
5-year yearly
average CAGR, starting 2020 (2020: 2019).
|
|
3
|
5-year average.
Period based on 20 quarters from Q121 (2020:
Q120).
|
|
4
|
5-year quarter
end CAGR, starting Q420 (2020: Q419).
|
Analysis of specific portfolios and asset types
Secured home loans
The UK
home loan portfolio primarily comprises first lien mortgages and
accounts for 93% (December 2020: 93%) of the Group’s total
home loans balance.
|
Home loans principal portfolios
|
Barclays UK
|
|
|
As at
31.12.21
|
As at
31.12.20
|
|
Gross loans and advances (£m)
|
158,192
|
148,343
|
|
90 day arrears rate, excluding recovery book (%)
|
0.1
|
0.2
|
|
Annualised gross charge-off rates - 180 days past due
(%)
|
0.5
|
0.6
|
|
Recovery book proportion of outstanding balances (%)
|
0.6
|
0.6
|
|
Recovery book impairment coverage ratio (%)
|
4.2
|
3.2
|
|
|
|
|
|
Average marked to market LTV
|
|
|
|
Balance weighted %
|
50.7
|
50.7
|
|
Valuation weighted %
|
37.5
|
37.6
|
|
|
|
|
|
New lending
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
New home loan bookings (£m)
|
33,945
|
22,776
|
|
New home loan proportion > 90% LTV (%)
|
1.9
|
2.6
|
|
Average LTV on new home loans: balance weighted (%)
|
69.5
|
67.5
|
|
Average LTV on new home loans: valuation weighted (%)
|
61.9
|
59.6
|
|
Home loans principal portfolios
– distribution of balances by LTV1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution of balances
|
Distribution of impairment allowance
|
Coverage ratio
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Barclays UK
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
As at 31.12.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
77.2
|
11.3
|
0.7
|
89.2
|
8.3
|
17.7
|
31.9
|
57.9
|
—
|
0.1
|
2.4
|
—
|
|
>75% and <=90%
|
9.3
|
0.6
|
—
|
9.9
|
4.8
|
10.7
|
11.7
|
27.2
|
—
|
1.0
|
22.6
|
0.1
|
|
>90% and <=100%
|
0.9
|
—
|
—
|
0.9
|
0.9
|
1.0
|
2.9
|
4.8
|
0.1
|
1.9
|
87.5
|
0.3
|
|
>100%
|
—
|
—
|
—
|
—
|
0.2
|
1.0
|
8.9
|
10.1
|
0.4
|
6.4
|
100.0
|
14.1
|
|
As at 31.12.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
75.7
|
11.6
|
0.6
|
87.9
|
17.9
|
15.0
|
19.0
|
51.9
|
—
|
0.1
|
1.8
|
—
|
|
>75% and <=90%
|
10.8
|
0.8
|
—
|
11.6
|
9.7
|
14.8
|
7.6
|
32.1
|
0.1
|
1.2
|
16.0
|
0.2
|
|
>90% and <=100%
|
0.4
|
—
|
—
|
0.4
|
0.8
|
1.5
|
2.2
|
4.5
|
0.1
|
2.6
|
35.7
|
0.7
|
|
>100%
|
0.1
|
—
|
—
|
0.1
|
0.7
|
3.4
|
7.4
|
11.5
|
0.7
|
10.3
|
69.1
|
8.0
|
|
1
|
Portfolio
marked to market based on the most updated valuation including
recovery book balances. Updated valuations reflect the application
of the latest HPI available as at 31 December
2021.
|
The
increased level of new business in 2021 was driven by elevated
demand in the house purchase market supported by government
intervention including stamp duty relief. Barclays maintained its
share of the market, supported by re-introduction of high LTV (>
85% LTV) products and reversal of some policy tightening introduced
in 2020.
Head
Office: Italian home loans and advances at amortised cost reduced
to £4.7bn (2020: £5.7bn). The portfolio is secured on
residential property with an average balance weighted mark to
market LTV of 60.4% (2020: 62.1%). 90-day arrears were at 1.3%
(2020: 1.7%) and gross charge-off rates decreased to 0.3% (2020:
1.0%) due to continuous reduction of delinquent
balances.
Credit cards, unsecured loans and other retail lending
The
principal portfolios listed below accounted for 82% (December 2020:
84%) of the Group’s total credit cards, unsecured loans and
other retail lending.
|
Principal portfolios
|
Gross exposure
|
30 day arrears rate, excluding recovery book
|
90 day arrears rate, excluding recovery book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
|
As at 31.12.21
|
£m
|
%
|
%
|
%
|
%
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
|
9,933
|
1.0
|
0.2
|
4.1
|
4.0
|
|
UK personal loans
|
4,011
|
1.5
|
0.7
|
3.5
|
3.2
|
|
Barclays
Partner Finance
|
2,471
|
0.4
|
0.2
|
1.4
|
1.4
|
|
Barclays International
|
|
|
|
|
|
|
US cards
|
17,779
|
1.6
|
0.8
|
4.3
|
4.2
|
|
Germany consumer lending
|
3,559
|
1.5
|
0.7
|
0.9
|
0.8
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
|
11,911
|
1.7
|
0.8
|
2.9
|
2.9
|
|
UK personal loans
|
4,591
|
2.3
|
1.2
|
3.4
|
3.1
|
|
Barclays Partner Finance
|
2,469
|
0.5
|
0.3
|
1.1
|
1.1
|
|
Barclays International
|
|
|
|
|
|
|
US cards
|
16,845
|
2.5
|
1.4
|
5.6
|
5.6
|
|
Germany consumer lending
|
3,458
|
1.9
|
0.8
|
1.2
|
1.1
|
UK cards: 30 and 90 day arrears rates reduced significantly
to 1.0% (2020: 1.7%) and 0.2% (2020: 0.8%) respectively, with
balances reducing by £2.0bn. Whilst performance had been on an
improving trend as a result of reduced spend and increased
repayments due to government support as a response to COVID-19 and
lower flows into delinquency, the main driver was a change in the
point of charge off from 180 days to 120 days past due. Higher
write offs primarily reflected a higher level of debt
sales.
UK personal loans: 30 and 90 day arrears rates reduced
significantly to 1.5% (2020: 2.3%) and 0.7% (2020: 1.2%)
respectively, with balances reducing by £0.6bn. Similar to UK
cards, the main driver was a change in the point of charge off from
180 days to 120 days past due. Higher write offs primarily
reflected a higher level of debt sales.
Barclays Partner Finance: 30 and 90 day arrears rates both
reduced by 0.1% as a result of slightly lower entry rates and flows
through the delinquency cycles.
US cards: 30 and 90 day arrears rates improved and remain
below pre-pandemic levels due to continued benefit from government
support schemes throughout the pandemic and industry payment
deferrals that were made available to consumers.
Germany consumer lending: 30 and 90 day arrears rates
reduced in 2021 due to improved payment behaviour of formerly
high-risk customers as unemployment eased, and the benefit from
government support in the local market continued.
Market Risk
Analysis of management value at risk (VaR)
The
table below shows the total management VaR on a diversified basis
by asset class. Total management VaR includes all trading positions
in CIB and Treasury and it is calculated with a one-day holding
period. VaR limits are applied to total management VaR and by asset
class. Additionally, the market risk management function applies
VaR sub-limits to material businesses and trading
desks.
|
Management VaR (95%) by asset class
|
|
|
|
|
|
|
|
|
|
|
31.12.21
|
31.12.20
|
|
|
Average
|
High
|
Low
|
Average
|
High
|
Low
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Credit risk
|
14
|
30
|
7
|
20
|
38
|
10
|
|
Interest rate risk
|
7
|
15
|
4
|
10
|
17
|
6
|
|
Equity risk
|
9
|
29
|
4
|
13
|
35
|
6
|
|
Basis risk
|
6
|
10
|
3
|
10
|
16
|
7
|
|
Spread risk
|
4
|
6
|
3
|
5
|
9
|
3
|
|
Foreign exchange risk
|
4
|
16
|
1
|
5
|
7
|
2
|
|
Commodity risk
|
—
|
1
|
—
|
1
|
1
|
—
|
|
Inflation risk
|
3
|
5
|
2
|
2
|
3
|
1
|
|
Diversification
effect1
|
(28)
|
n/a
|
n/a
|
(34)
|
n/a
|
n/a
|
|
Total management VaR
|
19
|
36
|
6
|
32
|
57
|
18
|
|
1
|
Diversification
effects recognise that forecast losses from different assets or
businesses are unlikely to occur concurrently, hence the expected
aggregate loss is lower than the sum of the expected losses from
each area. Historical correlations between losses are taken into
account in making these assessments. The high and low VaR figures
reported for each category did not necessarily occur on the same
day as the high and low VaR reported as a whole. Consequently, a
diversification effect balance for the high and low VaR figures
would not be meaningful and is therefore omitted from the above
table.
|
Average
management VaR decreased by 41% to £19m (2020: £32m),
driven by reduced risk taking, lower market volatility and the
impact of a methodology update in March 2021 which changed the
historical lookback period of the VaR model from two years to one
year. The methodology change has increased the responsiveness of
the model to changes over time in volatility levels in the lookback
period.
Treasury and Capital Risk
The
Group has a liquidity risk control framework that meets the
Prudential Regulation Authority (PRA) standards and is designed to
maintain liquidity resources that are sufficient in amount and
quality, and a funding profile that is appropriate to meet the
Group’s Liquidity Risk Appetite (LRA). The liquidity
framework is delivered via a combination of policy formation,
review and governance, analysis, stress testing, limit setting and
monitoring.
Liquidity risk stress testing
The
liquidity risk stress assessment measures the potential contractual
and contingent stress outflows under a range of scenarios, which
are then used to determine the size of the liquidity pool that is
immediately available to meet anticipated outflows if a stress
occurs. The short-term scenarios include a 30 day Barclays-specific
stress event, a 90 day market-wide stress event and a 30 day
combined scenario consisting of both a Barclays specific and
market-wide stress event. The Group also runs a long-term liquidity
stress test, which measures the anticipated outflows over a 12
month market-wide scenario.
The
liquidity coverage ratio (LCR) requirement takes into account the
relative stability of different sources of funding and potential
incremental funding requirements in a stress. The LCR is designed
to promote short-term resilience of a bank’s liquidity risk
profile by holding sufficient high quality liquid assets to survive
an acute stress scenario lasting for 30 days.
As at
31 December 2021, the Group held eligible liquid assets in excess
of 100% of net stress outflows to its internal and external
regulatory requirements.
|
Liquidity coverage ratio
|
|
|
|
|
As at 31.12.21
|
As at 31.12.20
|
|
|
£bn
|
£bn
|
|
Eligible liquidity buffer
|
285
|
258
|
|
Net stress outflows
|
(169)
|
(159)
|
|
Surplus
|
116
|
99
|
|
|
|
|
|
Liquidity coverage ratio
|
168%
|
162%
|
The
Group plans to maintain its surplus to the internal and regulatory
stress requirements at an efficient level, while considering risks
to market funding conditions and its liquidity position. The
continuous reassessment of these risks may lead to execution of
appropriate actions to resize the liquidity pool.
|
Composition of the Group liquidity pool
|
|
|
As at 31.12.21
|
As at 31.12.20
|
|
|
Liquidity pool
|
Liquidity pool of which CRD IV LCR
eligible3
|
Liquidity pool
|
|
|
Cash
|
Level 1
|
Level 2A
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Cash and deposits with central banks1
|
245
|
243
|
—
|
—
|
197
|
|
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
|
AAA to AA-
|
26
|
—
|
23
|
—
|
31
|
|
A+ to A-
|
2
|
—
|
—
|
2
|
13
|
|
BBB+ to BBB-
|
—
|
—
|
—
|
—
|
1
|
|
Total government bonds
|
28
|
—
|
23
|
2
|
45
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Government Guaranteed Issuers, PSEs and GSEs
|
6
|
—
|
5
|
1
|
10
|
|
International Organisations and MDBs
|
5
|
—
|
5
|
—
|
6
|
|
Covered bonds
|
6
|
—
|
4
|
2
|
8
|
|
Other
|
1
|
—
|
—
|
—
|
—
|
|
Total other
|
18
|
—
|
14
|
3
|
24
|
|
|
|
|
|
|
|
|
Total as at 31 December 2021
|
291
|
243
|
37
|
5
|
266
|
|
Total as at 31 December 2020
|
266
|
192
|
55
|
11
|
|
|
1
|
Includes cash
held at central banks and surplus cash at central banks related to
payment schemes. Over 99% (December 2020: over 98%) was placed with
the Bank of England, US Federal Reserve, European Central Bank,
Bank of Japan and Swiss National Bank.
|
|
2
|
Of which over
82% (December 2020: over 78%) comprised UK, US, French, German,
Japanese, Swiss and Dutch securities.
|
|
3
|
The LCR
eligible liquidity pool is adjusted for trapped liquidity and other
regulatory deductions. It also incorporates other CRR (as amended
by CRR II) qualifying assets that are not eligible under
Barclays’ internal risk appetite.
|
The
Group liquidity pool increased to £291bn as at 31 December
2021 (December 2020: £266bn) driven by continued deposit
growth, further borrowing from the Bank of England’s Term
Funding Scheme with additional incentives for SMEs and an increase
in wholesale funding, which were partly offset by an increase in
business funding consumption. During 2021, the month-end liquidity
pool ranged from £290bn to £337bn (2020: £218bn to
£332bn), and the month-end average balance was £303bn
(2020: £287bn). The liquidity pool is held unencumbered and is
not used to support payment or clearing requirements. Such
requirements are treated as part of our regular business funding.
The liquidity pool is intended to offset stress outflows, and
comprises the above cash and unencumbered assets.
As at
31 December 2021, 58% (December 2020: 64%) of the liquidity pool
was located in Barclays Bank PLC, 30% (December 2020: 23%) in
Barclays Bank UK PLC and 7% (December 2020: 7%) in Barclays Bank
Ireland PLC. The residual portion of the liquidity pool is held
outside of these entities, predominantly in US subsidiaries, to
meet entity-specific stress outflows and local regulatory
requirements. To the extent the use of this residual portion of the
liquidity pool is restricted due to local regulatory requirements,
it is assumed to be unavailable to the rest of the Group in
calculating the LCR.
The
composition of the pool is subject to limits set by the Board and
the independent liquidity risk, credit risk and market risk
functions. In addition, the investment of the liquidity pool is
monitored for concentration by issuer, currency and asset type.
Given returns generated by these highly liquid assets, the risk and
reward profile is continuously managed.
|
Deposit funding
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
As at 31.12.20
|
|
|
Loans and advances at amortised cost
|
Deposits at amortised cost
|
Loan: deposit ratio1
|
|
Loan: deposit ratio1
|
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
|
Barclays UK
|
222
|
260
|
85
|
|
89
|
|
Barclays International
|
134
|
259
|
52
|
|
51
|
|
Head Office
|
5
|
|
|
|
|
|
Barclays Group
|
361
|
519
|
70
|
|
71
|
|
1
|
The loan:
deposit ratio is calculated as loans and advances at amortised cost
divided by deposits at amortised cost.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£167.5bn (December 2020: £145.0bn). In 2021, the Group
issued £11.0bn of MREL eligible instruments from Barclays PLC
(the Parent company) in a range of tenors and
currencies.
Our
operating companies also access wholesale funding markets to
maintain their stable and diversified funding bases. Barclays Bank
PLC continued to issue in the shorter-term and medium-term notes
markets. In addition, Barclays Bank UK PLC continued to issue in
the shorter-term markets.
Wholesale
funding of £60.7.bn (December 2020: £42.7bn) matures in
less than one year, representing 36% (December 2020: 29%) of total
wholesale funding outstanding. This includes £18.9bn (December
2020: £20.3bn) related to term funding2.
|
Maturity profile of wholesale
funding1,2
|
|
|
|
|
|
|
|
|
|
<1
|
1-3
|
3-6
|
6-12
|
<1
|
1-2
|
2-3
|
3-4
|
4-5
|
>5
|
|
|
|
month
|
months
|
months
|
months
|
year
|
years
|
years
|
years
|
years
|
years
|
Total
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Barclays PLC (the Parent company)
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured (public benchmark)
|
—
|
0.8
|
—
|
—
|
0.8
|
7.4
|
5.5
|
5.5
|
5.8
|
15.6
|
40.6
|
|
Senior unsecured (privately placed)
|
—
|
—
|
—
|
—
|
—
|
0.1
|
0.1
|
—
|
—
|
1.0
|
1.2
|
|
Subordinated liabilities
|
—
|
—
|
—
|
—
|
—
|
—
|
0.9
|
—
|
1.5
|
6.8
|
9.2
|
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
0.7
|
11.2
|
10.2
|
9.0
|
31.1
|
0.2
|
0.1
|
—
|
—
|
—
|
31.4
|
|
Asset backed commercial paper
|
2.3
|
4.2
|
0.6
|
—
|
7.1
|
—
|
—
|
—
|
—
|
—
|
7.1
|
|
Senior unsecured (public benchmark)
|
—
|
—
|
1.3
|
—
|
1.3
|
—
|
0.9
|
—
|
—
|
0.4
|
2.6
|
|
Senior
unsecured (privately placed)3
|
1.2
|
2.1
|
3.1
|
5.3
|
11.7
|
7.1
|
8.6
|
4.6
|
4.0
|
22.5
|
58.5
|
|
Asset backed securities
|
0.1
|
—
|
—
|
0.5
|
0.6
|
0.1
|
2.0
|
0.1
|
0.3
|
1.4
|
4.5
|
|
Subordinated liabilities
|
—
|
1.0
|
—
|
1.3
|
2.3
|
—
|
0.1
|
—
|
0.4
|
0.8
|
3.6
|
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
2.9
|
0.2
|
0.5
|
—
|
3.6
|
—
|
—
|
—
|
—
|
—
|
3.6
|
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.2
|
0.2
|
|
Covered Bonds
|
—
|
2.2
|
—
|
—
|
2.2
|
1.8
|
—
|
—
|
—
|
1.0
|
5.0
|
|
Total as at 31 December 2021
|
7.2
|
21.7
|
15.7
|
16.1
|
60.7
|
16.7
|
18.2
|
10.2
|
12.0
|
49.7
|
167.5
|
|
Of which secured
|
2.4
|
6.4
|
0.6
|
0.5
|
9.9
|
1.9
|
2.0
|
0.1
|
0.3
|
2.4
|
16.6
|
|
Of which unsecured
|
4.8
|
15.3
|
15.1
|
15.6
|
50.8
|
14.8
|
16.2
|
10.1
|
11.7
|
47.3
|
150.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2020
|
5.7
|
15.4
|
9.5
|
12.1
|
42.7
|
15.6
|
16.7
|
12.3
|
10.2
|
47.5
|
145.0
|
|
Of which secured
|
2.3
|
5.0
|
0.7
|
0.5
|
8.5
|
3.1
|
2.2
|
0.5
|
0.2
|
2.6
|
17.1
|
|
Of which unsecured
|
3.4
|
10.4
|
8.8
|
11.6
|
34.2
|
12.5
|
14.5
|
11.8
|
10.0
|
44.9
|
127.9
|
|
1
|
The composition
of wholesale funds comprises the balance sheet reported financial
liabilities at fair value, debt securities in issue and
subordinated liabilities. It does not include participation in the
central bank facilities reported within repurchase agreements and
other similar secured borrowing.
|
|
2
|
Term funding
comprises public benchmark and privately placed senior unsecured
notes, covered bonds, asset-backed securities and subordinated debt
where the original maturity of the instrument is more than 1
year.
|
|
3
|
Includes
structured notes of £50.1bn, of which £10.9bn matures
within one year.
|
Capital
The
Group’s Overall Capital Requirement for CET1 is 11.1%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.6% Pillar 2A requirement and a 0%
Countercyclical Capital Buffer (CCyB).
The
Group’s CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 11 March 2020,
the Financial Policy Committee (FPC) set the CCyB rate for UK
exposures at 0% with immediate effect. The buffer rates set by
other national authorities for non-UK exposures are not currently
material. Overall, this results in a 0.0% CCyB for the Group. On 13
December 2021, the FPC announced that a CCyB rate of 1% for UK
exposures has been re-introduced and will be applicable from 13
December 2022.
As at
31 December 2021, the Group’s Pillar 2A requirement as per
the PRA’s Individual Capital Requirement was set as a nominal
amount. When expressed as a percentage of RWAs this was 4.6% of
which at least 56.25% needed to be met with CET1 capital, equating
to approximately 2.6% of RWAs. The Pillar 2A requirement is
subject to at least annual review and is based on a point in time
assessment.
Following
the withdrawal of the UK from the EU, any references to CRR as
amended by CRR II mean, unless otherwise specified, CRR as amended
by CRR II, as it forms part of UK law pursuant to the European
Union (Withdrawal) Act 2018 and subject to the temporary
transitional powers (TTP) available to UK regulators to delay or
phase-in on-shoring changes to UK regulatory requirements arising
at the end of the transition period until 31 March 2022, as at the
applicable reporting date.
|
Capital ratios1,2,3
|
As at
31.12.21
|
As at
30.09.21
|
As at
31.12.20
|
|
CET1
|
15.1%
|
15.4%
|
15.1%
|
|
Tier 1 (T1)
|
19.2%
|
19.6%
|
19.0%
|
|
Total regulatory capital
|
22.3%
|
22.9%
|
22.1%
|
|
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
|
Total equity excluding non-controlling interests per the balance
sheet
|
69,222
|
68,697
|
65,797
|
|
Less: other equity instruments (recognised as AT1
capital)
|
(12,259)
|
(12,252)
|
(11,172)
|
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(666)
|
(419)
|
(174)
|
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
—
|
(221)
|
—
|
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(32)
|
(51)
|
(30)
|
|
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
|
Additional value adjustments (PVA)
|
(1,585)
|
(1,427)
|
(1,146)
|
|
Goodwill and intangible assets
|
(6,804)
|
(6,850)
|
(6,914)
|
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(1,028)
|
(662)
|
(595)
|
|
Fair value reserves related to gains or losses on cash flow
hedges
|
852
|
46
|
(1,575)
|
|
Gains or losses on liabilities at fair value resulting from own
credit
|
892
|
940
|
870
|
|
Defined benefit pension fund assets
|
(2,619)
|
(1,925)
|
(1,326)
|
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
|
Adjustment under IFRS 9 transitional arrangements
|
1,229
|
1,332
|
2,556
|
|
Other regulatory adjustments
|
345
|
144
|
55
|
|
CET1 capital
|
47,497
|
47,302
|
46,296
|
|
|
|
|
|
|
AT1 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
12,259
|
12,252
|
11,172
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
637
|
636
|
646
|
|
Other regulatory adjustments and deductions
|
(80)
|
(80)
|
(80)
|
|
AT1 capital
|
12,816
|
12,808
|
11,738
|
|
|
|
|
|
|
T1 capital
|
60,313
|
60,110
|
58,034
|
|
|
|
|
|
|
T2 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
8,713
|
8,927
|
7,836
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1,113
|
1,306
|
1,893
|
|
Credit risk adjustments (excess of impairment over expected
losses)
|
73
|
98
|
57
|
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(160)
|
|
Total regulatory capital
|
70,052
|
70,281
|
67,660
|
|
|
|
|
|
|
Total RWAs
|
314,136
|
307,464
|
306,203
|
|
1
|
CET1, T1 and T2
capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II. This includes IFRS 9
transitional arrangements and the grandfathering of CRR and CRR II
non-compliant capital instruments.
|
|
2
|
The fully
loaded CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays PLC AT1 securities, was 14.7%, with
£46.3bn of CET1 capital and £313.9bn of RWAs calculated
without applying the transitional arrangements of the CRR as
amended by CRR II.
|
|
3
|
The
Group’s CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays Bank PLC 7.625% Contingent Capital
Notes, was 15.1%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR as
amended by CRR II, including the IFRS 9 transitional arrangements.
The benefit of the Financial Services Authority (FSA) October 2012
interpretation of the transitional provisions, relating to the
implementation of CRD IV, expired in December
2017.
|
|
Movement in CET1 capital
|
Three months ended
31.12.21
|
Twelve months ended
31.12.21
|
|
|
£m
|
£m
|
|
Opening CET1 capital
|
47,302
|
46,296
|
|
|
|
|
|
Profit for the period attributable to equity holders
|
1,335
|
7,179
|
|
Own credit relating to derivative liabilities
|
(6)
|
16
|
|
Ordinary share dividends paid and foreseen
|
(247)
|
(1,004)
|
|
Purchased and foreseeable share repurchase
|
—
|
(1,200)
|
|
Other equity coupons paid and foreseen
|
(199)
|
(806)
|
|
Increase in retained regulatory capital generated from
earnings
|
883
|
4,185
|
|
|
|
|
|
Net impact of share schemes
|
60
|
187
|
|
Fair value through other comprehensive income reserve
|
(120)
|
(288)
|
|
Currency translation reserve
|
(68)
|
(131)
|
|
Other reserves
|
5
|
(2)
|
|
Decrease in other qualifying reserves
|
(123)
|
(234)
|
|
|
|
|
|
Pension remeasurements within reserves
|
717
|
643
|
|
Defined benefit pension fund asset deduction
|
(694)
|
(1,293)
|
|
Net impact of pensions
|
23
|
(650)
|
|
|
|
|
|
Additional value adjustments (PVA)
|
(158)
|
(439)
|
|
Goodwill and intangible assets
|
46
|
110
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(366)
|
(433)
|
|
Adjustment under IFRS 9 transitional arrangements
|
(103)
|
(1,327)
|
|
Other regulatory adjustments
|
(7)
|
(11)
|
|
Decrease in regulatory capital due to adjustments and
deductions
|
(588)
|
(2,100)
|
|
|
|
|
|
Closing CET1 capital
|
47,497
|
47,497
|
CET1
capital increased £1.2bn to £47.5bn (December 2020:
£46.3bn).
£7.2bn
of capital generated from profits were partially offset by
distributions of £3bn comprising:
|
●
|
£1bn
of dividends paid and foreseen for ordinary shares, which includes
£0.3bn half year dividend and a £0.7bn accrual towards
the 2021 full year dividend
|
|
●
|
£1.2bn
for share buybacks made up of £0.7bn for the share buyback
announced with FY20 results and £0.5bn for the share buyback
announced with H121 results; and
|
|
●
|
£0.8bn
of equity coupons paid
|
Other
significant movements in the period were:
|
●
|
A
£1.3bn decrease in IFRS 9 transitional relief, after tax,
primarily due to credit impairment releases, impairment migrations
from Stage 2 to Stage 3 and a decrease to the amount of relief
applied to the pre-2020 impairment charge reducing to 50% in 2021
from 70% in 2020
|
|
●
|
A
£0.7bn decrease as a result of movements relating to pensions,
largely due to deficit contribution payments of £0.35bn in
April 2021 and September 2021
|
|
●
|
A
£0.4bn increase in the PVA deduction due to the reversal of
temporary COVID-19 relief measures which increased diversification
factors applied to certain additional valuation adjustments during
2020
|
|
RWAs by risk type and business
|
|
|
Credit risk
|
|
Counterparty credit risk
|
|
Market risk
|
|
Operational risk
|
Total RWAs
|
|
|
STD
|
IRB
|
|
STD
|
IRB
|
Settlement Risk
|
CVA
|
|
STD
|
IMA
|
|
|
As at 31.12.21
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays UK
|
7,195
|
53,408
|
|
426
|
—
|
—
|
138
|
|
100
|
—
|
|
11,022
|
72,289
|
|
Corporate
and Investment Bank
|
29,420
|
64,416
|
|
15,223
|
19,238
|
105
|
2,289
|
|
17,306
|
27,308
|
|
25,359
|
200,664
|
|
Consumer,
Cards and Payments
|
20,770
|
2,749
|
|
215
|
18
|
—
|
21
|
|
—
|
57
|
|
6,391
|
30,221
|
|
Barclays International
|
50,190
|
67,165
|
|
15,438
|
19,256
|
105
|
2,310
|
|
17,306
|
27,365
|
|
31,750
|
230,885
|
|
Head Office
|
4,733
|
7,254
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(1,025)
|
10,962
|
|
Barclays Group
|
62,118
|
127,827
|
|
15,864
|
19,256
|
105
|
2,448
|
|
17,406
|
27,365
|
|
41,747
|
314,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,128
|
53,981
|
|
464
|
—
|
—
|
158
|
|
115
|
—
|
|
11,381
|
73,227
|
|
Corporate
and Investment Bank
|
26,778
|
70,842
|
|
17,063
|
19,477
|
211
|
2,347
|
|
16,399
|
15,934
|
|
23,453
|
192,504
|
|
Consumer,
Cards and Payments
|
20,159
|
2,740
|
|
255
|
30
|
—
|
37
|
|
—
|
44
|
|
6,948
|
30,213
|
|
Barclays International
|
46,937
|
73,582
|
|
17,318
|
19,507
|
211
|
2,384
|
|
16,399
|
15,978
|
|
30,401
|
222,717
|
|
Head Office
|
4,984
|
7,344
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(808)
|
11,520
|
|
Barclays Group
|
59,049
|
134,907
|
|
17,782
|
19,507
|
211
|
2,542
|
|
16,514
|
15,978
|
|
40,974
|
307,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,360
|
54,340
|
|
394
|
—
|
—
|
136
|
|
72
|
—
|
|
11,359
|
73,661
|
|
Corporate
and Investment Bank
|
24,660
|
73,792
|
|
12,047
|
20,280
|
246
|
2,351
|
|
13,123
|
22,363
|
|
23,343
|
192,205
|
|
Consumer,
Cards and Payments
|
19,754
|
3,041
|
|
177
|
45
|
—
|
31
|
|
—
|
71
|
|
6,996
|
30,115
|
|
Barclays International
|
44,414
|
76,833
|
|
12,224
|
20,325
|
246
|
2,382
|
|
13,123
|
22,434
|
|
30,339
|
222,320
|
|
Head Office
|
4,153
|
6,869
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(800)
|
10,222
|
|
Barclays Group
|
55,927
|
138,042
|
|
12,618
|
20,325
|
246
|
2,518
|
|
13,195
|
22,434
|
|
40,898
|
306,203
|
|
Movement analysis of RWAs
|
|
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Opening RWAs (as at 31.12.20)
|
193,969
|
35,707
|
35,629
|
40,898
|
306,203
|
|
Book size
|
(1,106)
|
1,838
|
1,295
|
849
|
2,876
|
|
Acquisitions and disposals
|
(1,095)
|
—
|
—
|
—
|
(1,095)
|
|
Book quality
|
175
|
(102)
|
—
|
—
|
73
|
|
Model updates
|
(950)
|
(186)
|
6,927
|
—
|
5,791
|
|
Methodology and policy
|
(345)
|
416
|
920
|
—
|
991
|
|
Foreign
exchange movements1
|
(703)
|
—
|
—
|
—
|
(703)
|
|
Total RWA movements
|
(4,024)
|
1,966
|
9,142
|
849
|
7,933
|
|
Closing RWAs (as at 31.12.21)
|
189,945
|
37,673
|
44,771
|
41,747
|
314,136
|
|
1
|
Foreign
exchange movements does not include foreign exchange for
counterparty credit risk, market risk or operational
risk.
|
Overall
RWAs increased £7.9bn to £314.1bn (December 2020:
£306.2bn). Significant movements in the period
were:
Credit
risk RWAs decreased £4.0bn:
|
●
|
A
£1.1bn decrease in book size mainly driven by lower lending,
partially offset by growth in mortgages within Barclays
UK
|
|
●
|
A
£1.1bn decrease in acquisitions and disposals mainly driven by
disposal of wholesale loans during the year
|
|
●
|
A
£1.0bn decrease in model updates primarily due to modelled
risk weight recalibrations
|
Counterparty credit
risk RWAs increased £2.0bn:
|
●
|
A
£1.8bn increase in book size primarily due to an increase in
client and trading activities within SFTs, partially offset by a
reduction in derivatives
|
Market
risk RWAs increased £9.1bn:
|
●
|
A
£1.3bn increase in book size primarily due to an increase in
client and trading activities
|
|
●
|
A
£6.9bn increase in model updates driven by an increase in
Stressed Value at Risk (SVaR) due to a model adjustment to reflect
market movements during the COVID-19 stressed period following
recalibration of the period, which was delayed until 2021 as a
result of COVID-19 relief measures afforded by the PRA
|
|
●
|
A
£0.9bn increase in methodology and policy driven by the
application of Pillar 1 Structural FX charge, partially offset by a
change in the historical lookback period of the VaR model from two
years to one year
|
Leverage ratio and exposures
The
Group is subject to a leverage ratio requirement of 3.8% as at 31
December 2021. This comprises the 3.25% minimum requirement, a
G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a
countercyclical leverage ratio buffer of 0.0%. Although the
leverage ratio is expressed in terms of T1 capital, 75% of the
minimum requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was £6.0bn.
The
Group is required to disclose an average UK leverage ratio which is
based on capital on the last day of each month in the quarter and
an exposure measure for each day in the quarter. The Group is also
required to disclose a UK leverage ratio based on capital and
exposure on the last day of the quarter.
|
Leverage ratios1,2
|
As at 31.12.21
|
As at 30.09.21
|
As at 31.12.20
|
|
£m
|
£m
|
£m
|
|
Average UK leverage ratio
|
4.9%
|
4.9%
|
5.0%
|
|
Average
T1 capital3
|
59,796
|
58,580
|
57,069
|
|
Average UK leverage exposure
|
1,227,134
|
1,199,774
|
1,146,919
|
|
|
|
|
|
|
UK leverage ratio
|
5.3%
|
5.1%
|
5.3%
|
|
|
|
|
|
|
CET1 capital
|
47,497
|
47,302
|
46,296
|
|
AT1 capital
|
12,179
|
12,172
|
11,092
|
|
T1 capital3
|
59,676
|
59,474
|
57,388
|
|
|
|
|
|
|
UK leverage exposure
|
1,135,997
|
1,160,983
|
1,090,907
|
|
|
|
|
|
|
UK leverage exposure
|
|
|
|
|
Accounting assets
|
|
|
|
|
Derivative financial instruments
|
262,572
|
258,093
|
302,446
|
|
Derivative cash collateral
|
58,177
|
54,166
|
64,798
|
|
Securities financing transactions
|
170,853
|
190,927
|
164,034
|
|
Loans and advances and other assets
|
892,683
|
903,327
|
818,236
|
|
Total IFRS assets
|
1,384,285
|
1,406,513
|
1,349,514
|
|
|
|
|
|
|
Regulatory consolidation adjustments
|
(3,665)
|
(2,192)
|
(1,144)
|
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
|
Derivatives netting
|
(236,881)
|
(231,559)
|
(272,275)
|
|
Adjustments to collateral
|
(50,929)
|
(47,490)
|
(57,414)
|
|
Net written credit protection
|
15,509
|
15,910
|
14,986
|
|
Potential future exposure on derivatives
|
137,291
|
143,517
|
117,010
|
|
Total derivatives adjustments
|
(135,010)
|
(119,622)
|
(197,693)
|
|
|
|
|
|
|
SFTs adjustments
|
24,544
|
24,579
|
21,114
|
|
|
|
|
|
|
Regulatory deductions and other adjustments
|
(20,219)
|
(19,454)
|
(17,469)
|
|
|
|
|
|
|
Weighted off-balance sheet commitments
|
113,140
|
115,521
|
113,704
|
|
|
|
|
|
|
Qualifying central bank claims
|
(210,134)
|
(198,817)
|
(155,890)
|
|
|
|
|
|
|
Settlement netting
|
(16,944)
|
(45,545)
|
(21,229)
|
|
|
|
|
|
|
UK leverage exposure
|
1,135,997
|
1,160,983
|
1,090,907
|
|
1
|
Fully loaded
average UK leverage ratio was 4.8%, with £58.5bn of T1 capital
and £1,225.8bn of leverage exposure. Fully loaded UK leverage
ratio was 5.2%, with £58.4bn of T1 capital and £1,134.8bn
of leverage exposure. Fully loaded UK leverage ratios are
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
|
2
|
Capital and
leverage measures are calculated applying the transitional
arrangements of the CRR as amended by CRR II.
|
|
3
|
T1 capital is
calculated in line with the PRA Handbook.
|
The
average UK leverage ratio decreased to 4.9% (December 2020: 5.0%).
The average leverage exposure increased by £80.2bn to
£1,227.1bn (December 2020: £1,146.9bn) largely driven by
balance sheet increases in SFTs and TPAs as well as PFE on
derivatives.
The UK
leverage ratio remained stable at 5.3% (December 2020: 5.3%)
primarily driven by a £2.3bn increase in T1 capital offset by
a £45.1bn increase in UK leverage exposure. The UK
leverage exposure increase to £1,136.0bn (December 2020:
£1,090.9bn) was primarily driven by a £20.3bn increase in
PFE on derivatives, a £19.1bn increase in TPAs due to
increased trading activity in CIB, £18.8bn increase in loans
and advances at amortised cost, and a £6.8bn increase in SFTs,
offset by a £16.9bn decrease in assets at fair value through
other comprehensive income due to disposals.
The
Group also discloses a CRR leverage ratio1
within its additional regulatory disclosures prepared in accordance
with EBA guidelines on disclosure under Part Eight of the CRR (see
Barclays PLC Pillar 3 Report 2021, due to be published on 23
February 2022 and which will be available at home.barclays/investor-relations/reports-and-events/annual-reports).
|
1
|
CRR leverage
ratio as amended by CRR II.
|
MREL
As at
31 December 2021, the Group was required to meet the higher of: (i)
the MREL set by the Bank of England (BoE); and (ii) the
requirements in CRR as amended by CRR II, both of which have RWA
and leverage measures.
As at
31 December 2021, Barclays PLC (the Parent company) had
£108.2bn of own funds and eligible liabilities equating to 8%
of CRR leverage exposures. This was in excess of the Group’s
MREL requirement to hold £93.9bn of own funds and eligible
liabilities, equating to 6.9% of CRR leverage
exposures.
CET1
capital cannot be counted towards both MREL and the capital
buffers, meaning that the buffers will effectively be applied above
MREL requirements.
|
MREL requirements including
buffers1,2
|
Requirement (£m):
|
|
Requirement (%):
|
|
|
As at
31.12.2021
|
As at
30.09.2021
|
As at
31.12.2020
|
|
As at
31.12.2021
|
As at
30.09.2021
|
As at
31.12.2020
|
|
Requirement based on RWAs
|
77,302
|
76,174
|
75,918
|
|
24.6%
|
24.8%
|
24.8%
|
|
Requirement based on CRR leverage exposure (minimum
requirement)
|
93,861
|
94,438
|
87,529
|
|
6.9%
|
6.9%
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
Own funds and eligible
liabilities1,2
|
|
|
|
|
£m
|
£m
|
£m
|
|
CET1 capital
|
|
|
|
|
47,497
|
47,302
|
46,296
|
|
AT1
capital instruments and related share premium accounts3
|
|
|
|
12,179
|
12,172
|
11,092
|
|
T2
capital instruments and related share premium accounts3
|
|
|
|
8,626
|
8,865
|
7,733
|
|
Eligible liabilities
|
|
|
|
|
39,889
|
38,787
|
35,086
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
|
|
108,191
|
107,126
|
100,207
|
|
|
|
|
|
|
|
|
|
|
Total RWAs
|
|
|
|
|
314,136
|
307,464
|
306,203
|
|
Total CRR leverage exposure
|
|
|
|
|
1,354,284
|
1,368,259
|
1,254,157
|
|
|
|
|
|
|
|
|
|
|
Own funds and eligible liabilities ratios as a percentage
of:
|
|
|
As at
31.12.2021
|
As at
30.09.2021
|
As at
31.12.2020
|
|
Total RWAs
|
|
|
|
|
34.4%
|
34.8%
|
32.7%
|
|
Total CRR leverage exposure
|
|
|
|
|
8.0%
|
7.8%
|
8.0%
|
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR and CRR II non-compliant capital instruments.
|
|
2
|
As at 31 December 2021, Own funds and eligible liabilities
including instruments issued by subsidiaries was
£109.9bn.
|
|
3
|
Includes other AT1 capital regulatory adjustments and deductions of
£80m (December 2020: £80m), and other T2 credit risk
adjustments and deductions of £87m (December 2020:
£103m).
|
Regulatory changes as implemented by the Prudential Regulation
Authority
The PRA
has implemented several regulatory changes impacting the
calculation of the CET1 ratio within the UK. Changes have also been
implemented following the review of the UK Leverage framework and
the setting of MREL requirements. All changes took effect from 1
January 2022.
Capital and RWAs
On 19
July 2019, the EBA published a report on the implementation of IRB
roadmap changes. These have subsequently been implemented by the
PRA via several Policy Statements. Key changes include revisions to
the criteria for definition of default, PD and LGD estimation to
ensure supervisory consistency and increase transparency of IRB
models.
On 14
October 2021, the PRA finalised their implementation of Basel
standards through Policy Statement 22/21. The finalised
requirements included the introduction of the Standardised Approach
for Counterparty Credit Risk (SA-CCR) which replaces the Current
Exposure Method (CEM) for Standardised derivative exposures as a
more risk sensitive approach. The PRA also confirmed the intention
to revert to the previous treatment of 100% CET1 capital deduction
for qualifying software assets, meaning the c.35bps benefit in the
CET1 ratio will be reversed.
UK Leverage Ratio
Framework
On 8
October 2021, the PRA published its Policy Statement on the UK
leverage ratio framework. The Policy Statement confirms that UK
banks will be subject to a single UK leverage ratio requirement
meaning that the CRR leverage ratio will no longer apply for UK
banks. Whilst largely upholding the existing framework, technical
changes generally align to the Basel III standards with the
exception of the qualifying claims on central banks exemption.
Central bank claims can be excluded from the UK leverage ratio
measure as long as they are matched by qualifying liabilities
(rather than deposits). Minimum requirements for the Group remain
the same with minimum requirements also expected to be applied at
the individual level from 1 January 2023. Individual requirements
may be replaced with a sub-consolidated measure, subject to
permission from the PRA.
MREL requirements
On 3
December 2021 the BoE set new MREL requirements via an updated
Statement of Policy removing the requirements under CRR, meaning
that from 1 January 2022 the Group will be required to meet the
higher of (i) 2 times 8% Pillar 1 and 4.6% Pillar 2A requirement;
and (ii) 6.75% of UK leverage exposure. Using the rebased 1 January
2022 RWAs and UK leverage exposure, the MREL requirement is
expected to be £93.6bn based on RWAs. The Group currently
holds £108.2bn of own funds and eligible liabilities which is
above the expected 2022 minimum requirement. The Statement of
Policy also confirmed that own funds instruments issued by
subsidiaries cannot count towards the Group's MREL from 1 January
2022.
Barclays
has calculated RWAs, Leverage exposures and Capital and Leverage
ratios reflecting our interpretation of the latest rules and
guidance.
|
Impacts due to implementation of regulatory changes - indicative as
at 01.01.22
|
As at
31.12.21
|
Rebased as at
01.01.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
CET1 ratio
|
|
|
|
|
|
15.1%
|
14.3%
|
|
CET1
capital
|
|
|
|
|
47.5
|
45.8
|
|
Total
RWAs1,2
|
|
|
|
|
314.1
|
320.5
|
|
|
|
|
|
|
|
|
|
|
UK leverage ratio
|
|
|
|
|
|
5.3%
|
5.3%
|
|
T1 capital
|
|
|
|
|
|
59.7
|
58.0
|
|
UK leverage exposure
|
|
|
|
|
|
1,136.0
|
1,102.1
|
|
|
|
|
|
|
|
|
|
|
MREL
requirement based on UK leverage exposures3
|
|
|
|
|
87.3
|
|
MREL requirement based on RWAs (minimum requirement)3
|
|
|
|
93.6
|
|
|
|
|
|
|
|
|
|
|
1
|
Includes
expected impact on CVA of roll out of SA-CCR across 60 day average
period.
|
|
2
|
IRB roadmap
impact based on latest available data by portfolio, majority is
based on 31 December 2021.
|
|
3
|
MREL
requirement for 31 December 2021 was £93.9bn based on CRR
leverage exposures which no longer apply for UK banks from 1
January 2022.
|
Barclays
CET1 ratio is expected to decrease by c.80bps as a result of the
regulatory changes which took effect from 1 January 2022, due to
the reversal of the software intangibles benefit, implementation of
IRB roadmap changes, introduction of SA-CCR and amortisation of
IFRS 9 transitional relief.
The UK
Leverage ratio is expected to remain broadly stable following the
introduction of SA-CCR and exclusion of central bank claims matched
by qualifying liabilities, partially offset by the reversal of the
software intangibles benefit.
Statement of Directors’ Responsibilities
Each of
the Directors (the names of whom are set out below) confirm
that:
|
●
|
to the
best of their knowledge, the condensed consolidated financial
statements (set out on pages 58 to 62), which have been prepared in
accordance with (a) UK-adopted international accounting standards;
and (b) International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB),
including interpretations issued by the IFRS Interpretations
Committee, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole. The
condensed consolidated financial statements should be read in
conjunction with the annual financial statements as included in the
Annual Report for the year ended 31 December 2021; and
|
|
●
|
to the
best of their knowledge, the management information (set out on
pages 1 to 56) includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face. This management information should be
read in conjunction with the principal risks and uncertainties
included in the Annual Report for the year ended 31 December
2021.
|
Signed
on 22 February 2022 on behalf of the Board by
|
C. S. Venkatakrishnan
|
|
Tushar Morzaria
|
|
Group Chief Executive
|
|
Group Finance Director
|
Barclays
PLC Board of Directors:
|
Chairman
|
Executive Directors
|
Non-Executive Directors
|
|
Nigel Higgins
|
C. S. Venkatakrishnan
Tushar Morzaria
|
Mike Ashley
Robert Berry
Tim Breedon CBE
Mohamed A. El-Erian
Dawn Fitzpatrick
Mary Francis CBE
Crawford Gillies
Brian Gilvary
Diane Schueneman
Julia Wilson
|
Condensed Consolidated Financial Statements
|
Condensed consolidated income statement
|
|
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
Notes1
|
£m
|
£m
|
|
Interest and similar income
|
|
11,240
|
11,892
|
|
Interest and similar expense
|
|
(3,167)
|
(3,770)
|
|
Net interest income
|
|
8,073
|
8,122
|
|
Fee and commission income
|
|
9,880
|
8,641
|
|
Fee and commission expense
|
|
(2,206)
|
(2,070)
|
|
Net fee and commission income
|
|
7,674
|
6,571
|
|
Net trading income
|
|
5,794
|
7,029
|
|
Net investment income
|
|
311
|
13
|
|
Other income
|
|
88
|
31
|
|
Total income
|
|
21,940
|
21,766
|
|
Credit impairment releases/(charges)
|
|
653
|
(4,838)
|
|
Net operating income
|
|
22,593
|
16,928
|
|
|
|
|
|
|
Staff costs
|
|
(8,511)
|
(8,097)
|
|
Infrastructure, administration and general expenses
|
|
(5,751)
|
(5,636)
|
|
Litigation and conduct
|
|
(177)
|
(153)
|
|
Operating expenses
|
|
(14,439)
|
(13,886)
|
|
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
260
|
6
|
|
Profit on disposal of subsidiaries, associates and joint
ventures
|
|
—
|
17
|
|
Profit before tax
|
|
8,414
|
3,065
|
|
Tax charge
|
1
|
(1,188)
|
(604)
|
|
Profit after tax
|
|
7,226
|
2,461
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
6,375
|
1,526
|
|
Other equity instrument holders
|
|
804
|
857
|
|
Total equity holders of the parent
|
|
7,179
|
2,383
|
|
Non-controlling interests
|
2
|
47
|
78
|
|
Profit after tax
|
|
7,226
|
2,461
|
|
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
3
|
37.5
|
8.8
|
|
Diluted earnings per ordinary share
|
3
|
36.6
|
8.6
|
|
1
|
For notes to
the Financial Statements see pages 63 to 68.
|
|
Condensed consolidated statement of comprehensive
income
|
|
|
|
|
|
|
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
Notes1
|
£m
|
£m
|
|
Profit after tax
|
|
7,226
|
2,461
|
|
|
|
|
|
|
Other comprehensive (loss)/income that may be recycled to profit or
loss:2
|
|
|
|
Currency translation reserve
|
11
|
(131)
|
(473)
|
|
Fair value through other comprehensive income reserve
|
11
|
(429)
|
454
|
|
Cash flow hedging reserve
|
11
|
(2,428)
|
573
|
|
Other
|
11
|
—
|
5
|
|
Other comprehensive (loss)/income that may be recycled to profit or
loss
|
|
(2,988)
|
559
|
|
|
|
|
|
|
Other comprehensive income/(loss) not recycled to profit or
loss:2
|
|
|
|
Retirement benefit remeasurements
|
8
|
643
|
(111)
|
|
Fair value through other comprehensive income reserve
|
11
|
141
|
(262)
|
|
Own credit
|
11
|
(14)
|
(581)
|
|
Other comprehensive income/(loss) not recycled to profit or
loss
|
|
770
|
(954)
|
|
|
|
|
|
|
Other comprehensive loss for the period
|
|
(2,218)
|
(395)
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
5,008
|
2,066
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
4,961
|
1,988
|
|
Non-controlling interests
|
|
47
|
78
|
|
Total comprehensive income for the period
|
|
5,008
|
2,066
|
|
1
|
For notes to
the Financial Statements see pages 63 to 68.
|
|
2
|
Reported net of
tax.
|
|
Condensed consolidated balance sheet
|
|
|
|
As at 31.12.21
|
As at 31.12.20
|
|
Assets
|
Notes1
|
£m
|
£m
|
|
Cash and balances at central banks
|
|
238,574
|
191,127
|
|
Cash collateral and settlement balances
|
|
92,542
|
101,367
|
|
Loans and advances at amortised cost
|
|
361,451
|
342,632
|
|
Reverse repurchase agreements and other similar secured
lending
|
|
3,227
|
9,031
|
|
Trading portfolio assets
|
|
147,035
|
127,950
|
|
Financial assets at fair value through the income
statement
|
|
191,972
|
175,151
|
|
Derivative financial instruments
|
|
262,572
|
302,446
|
|
Financial assets at fair value through other comprehensive
income
|
|
61,753
|
78,688
|
|
Investments in associates and joint ventures
|
|
999
|
781
|
|
Goodwill and intangible assets
|
|
8,061
|
7,948
|
|
Property, plant and equipment
|
|
3,555
|
4,036
|
|
Current tax assets
|
|
261
|
477
|
|
Deferred tax assets
|
1
|
4,619
|
3,444
|
|
Retirement benefit assets
|
8
|
3,879
|
1,814
|
|
Other assets
|
|
3,785
|
2,622
|
|
Total assets
|
|
1,384,285
|
1,349,514
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits at amortised cost
|
|
519,433
|
481,036
|
|
Cash collateral and settlement balances
|
|
79,371
|
85,423
|
|
Repurchase agreements and other similar secured
borrowing
|
|
28,352
|
14,174
|
|
Debt securities in issue
|
|
98,867
|
75,796
|
|
Subordinated Liabilities
|
|
12,759
|
16,341
|
|
Trading portfolio liabilities
|
|
54,169
|
47,405
|
|
Financial liabilities designated at fair value
|
|
250,960
|
249,765
|
|
Derivative financial instruments
|
|
256,883
|
300,775
|
|
Current tax liabilities
|
|
739
|
645
|
|
Deferred tax liabilities
|
1
|
37
|
15
|
|
Retirement benefit liabilities
|
8
|
311
|
291
|
|
Other liabilities
|
|
10,505
|
8,662
|
|
Provisions
|
7
|
1,688
|
2,304
|
|
Total liabilities
|
|
1,314,074
|
1,282,632
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called up share capital and share premium
|
9
|
4,536
|
4,637
|
|
Other reserves
|
11
|
1,770
|
4,461
|
|
Retained earnings
|
|
50,657
|
45,527
|
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
56,963
|
54,625
|
|
Other equity instruments
|
10
|
12,259
|
11,172
|
|
Total equity excluding non-controlling interests
|
|
69,222
|
65,797
|
|
Non-controlling interests
|
2
|
989
|
1,085
|
|
Total equity
|
|
70,211
|
66,882
|
|
|
|
|
|
|
Total liabilities and equity
|
|
1,384,285
|
1,349,514
|
|
1
|
For notes to the Financial Statements see pages 63 to
68.
|
|
Condensed consolidated statement of changes in equity
|
|
|
Called up share capital and share premium
|
Other equity instruments
|
Other reserves
|
Retained earnings
|
Total
|
Non-controlling interests
|
Total equity
|
|
Year ended 31.12.2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Balance as at 1 January 2021
|
4,637
|
11,172
|
4,461
|
45,527
|
65,797
|
1,085
|
66,882
|
|
Profit after tax
|
—
|
804
|
—
|
6,375
|
7,179
|
47
|
7,226
|
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
643
|
643
|
—
|
643
|
|
Other comprehensive profit after tax for the year
|
—
|
—
|
(2,861)
|
—
|
(2,861)
|
—
|
(2,861)
|
|
Total comprehensive income for the period
|
—
|
804
|
(2,861)
|
7,018
|
4,961
|
47
|
5,008
|
|
Employee share schemes and hedging thereof
|
60
|
—
|
—
|
235
|
295
|
—
|
295
|
|
Issue and redemption of other equity instruments
|
—
|
1,078
|
—
|
6
|
1,084
|
(75)
|
1,009
|
|
Other equity instruments coupon paid
|
—
|
(804)
|
—
|
—
|
(804)
|
—
|
(804)
|
|
Vesting of employee share schemes
|
—
|
—
|
1
|
(410)
|
(409)
|
—
|
(409)
|
|
Dividends paid
|
—
|
—
|
—
|
(512)
|
(512)
|
(44)
|
(556)
|
|
Repurchase of shares
|
(161)
|
—
|
161
|
(1,200)
|
(1,200)
|
—
|
(1,200)
|
|
Other movements
|
—
|
9
|
8
|
(7)
|
10
|
(24)
|
(14)
|
|
Balance as at 31 December 2021
|
4,536
|
12,259
|
1,770
|
50,657
|
69,222
|
989
|
70,211
|
|
|
|
|
|
|
|
|
|
|
Year ended 31.12.2020
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2020
|
4,594
|
10,871
|
4,760
|
44,204
|
64,429
|
1,231
|
65,660
|
|
Profit after tax
|
—
|
857
|
—
|
1,526
|
2,383
|
78
|
2,461
|
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(111)
|
(111)
|
—
|
(111)
|
|
Other comprehensive profit after tax for the year
|
—
|
—
|
(289)
|
5
|
(284)
|
—
|
(284)
|
|
Total comprehensive income for the period
|
—
|
857
|
(289)
|
1,420
|
1,988
|
78
|
2,066
|
|
Employee share schemes and hedging thereof
|
43
|
—
|
—
|
303
|
346
|
—
|
346
|
|
Issue and redemption of other equity instruments
|
—
|
311
|
—
|
(55)
|
256
|
(158)
|
98
|
|
Other equity instruments coupon paid
|
—
|
(857)
|
—
|
—
|
(857)
|
—
|
(857)
|
|
Vesting of shares under employee share schemes
|
—
|
—
|
(10)
|
(347)
|
(357)
|
—
|
(357)
|
|
Dividends paid
|
—
|
—
|
—
|
—
|
—
|
(79)
|
(79)
|
|
Other movements
|
—
|
(10)
|
—
|
2
|
(8)
|
13
|
5
|
|
Balance as at 31 December 2020
|
4,637
|
11,172
|
4,461
|
45,527
|
65,797
|
1,085
|
66,882
|
|
Condensed consolidated cash flow statement
|
|
|
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
£m
|
£m
|
|
Profit before tax
|
8,414
|
3,065
|
|
Adjustment for non-cash items
|
4,803
|
5,007
|
|
Net increase in loans and advances at amortised cost
|
(10,728)
|
(4,365)
|
|
Net increase in deposits at amortised cost
|
38,397
|
65,249
|
|
Net increase/(decrease) in debt securities in issue
|
18,131
|
(6,309)
|
|
Changes in other operating assets and liabilities
|
(8,763)
|
(4,459)
|
|
Corporate income tax paid
|
(1,335)
|
(683)
|
|
Net cash from operating activities
|
48,919
|
57,505
|
|
Net cash from investing activities
|
4,270
|
(18,376)
|
|
Net cash from financing activities
|
107
|
2,732
|
|
Effect of exchange rates on cash and cash equivalents
|
(4,232)
|
1,668
|
|
Net increase/(decrease) in cash and cash equivalents
|
49,064
|
43,529
|
|
Cash and cash equivalents at beginning of the period
|
210,142
|
166,613
|
|
Cash and cash equivalents at end of the period
|
259,206
|
210,142
|
Financial Statement Notes
The tax
charge for 2021 was £1,188m (2020: £604m), representing
an effective tax rate of 14.1% (2020: 19.7%). This reflects a
£462m tax benefit, with a £111m tax charge within other
comprehensive income, for the re-measurement of the Group’s
UK deferred tax assets as a result of the enactment in 2021 of a UK
corporation tax rate increase from 19% to 25% effective from 1
April 2023. Absent this re-measurement of deferred tax assets the
effective tax rate would have been 19.6%. Included in the 2021 tax
charge is a credit of £212m (2020: £233m) in respect of
payments made on AT1 instruments that are classified as equity for
accounting purposes.
In its
Budget held in October 2021, the UK Government announced that the
banking surcharge rate will be reduced from 8% to 3% from 1 April
2023. The reduction in the banking surcharge rate was substantively
enacted on 2 February 2022 and is a non-adjusting post balance
sheet event. If the reduction in the banking surcharge rate had
been substantively enacted at the balance sheet date then this
would have resulted in the Group’s UK deferred tax assets
being re-measured and decreasing with a tax charge in the income
statement of £346m and a tax credit within other comprehensive
income of £87m.
In
October 2021, the OECD and G20 Inclusive Framework on Base Erosion
and Profit Shifting announced plans to introduce a global minimum
tax rate of 15% from 2023. The model rules, which set out the scope
of and the mechanism for calculating the global minimum tax, were
released by the OECD on 20 December 2021. The Group is reviewing
the model rules and awaiting the OECD’s anticipated
publication of further guidance, as well as new legislation
expected to be released by governments implementing this new tax
regime, and will assess the potential impact of new legislation
during 2022.
In the
USA, a proposed Build Back Better Act has been passed by the House
of Representatives but has not been passed by the Senate and at
this time it is uncertain whether the Act will progress further.
The proposed Act passed by the House of Representatives included
proposals to implement material changes to international tax
provisions, including amendments to the Base Erosion and Anti-Abuse
Tax and the imposition of an alternative minimum tax based on
accounting profits. It is unclear at this time whether any of these
proposals could have a significant impact on the Group if enacted.
The Group will continue to monitor developments and assess the
potential impact of any future legislative changes ultimately
enacted.
|
|
As at 31.12.21
|
As at 31.12.20
|
|
Deferred tax assets and liabilities
|
£m
|
£m
|
|
UK
|
2,183
|
886
|
|
USA
|
2,006
|
2,049
|
|
Other territories
|
430
|
509
|
|
Deferred tax assets
|
4,619
|
3,444
|
|
Deferred tax liabilities
|
(37)
|
(15)
|
|
|
|
|
|
Analysis of deferred tax assets
|
|
|
|
Temporary differences
|
3,399
|
2,709
|
|
Tax losses
|
1,220
|
735
|
|
Deferred tax assets
|
4,619
|
3,444
|
2.
Non-controlling interests
|
|
Profit attributable to
non-controlling interests
|
|
Equity attributable to
non-controlling interests
|
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
As at 3
1.12.21
|
As at 3
1.12.20
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays Bank PLC issued:
|
|
|
|
|
|
|
- Preference shares
|
27
|
42
|
|
529
|
529
|
|
- Upper T2 instruments
|
17
|
37
|
|
458
|
533
|
|
Other non-controlling interests
|
3
|
(1)
|
|
2
|
23
|
|
Total
|
47
|
78
|
|
989
|
1,085
|
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
£m
|
£m
|
|
Profit attributable to ordinary equity holders of the
parent
|
6,375
|
1,526
|
|
|
|
|
|
|
m
|
m
|
|
Basic weighted average number of shares in issue
|
16,985
|
17,300
|
|
Number of potential ordinary shares
|
435
|
368
|
|
Diluted weighted average number of shares
|
17,420
|
17,668
|
|
|
|
|
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
37.5
|
8.8
|
|
Diluted earnings per ordinary share
|
36.6
|
8.6
|
4.
Dividends on ordinary shares
It is
Barclays’ policy to declare and pay dividends on a
semi-annual basis. The 2021 full year dividend of 4p per ordinary
share will be paid on 5 April 2022 to the shareholders on the Share
Registrar on 4 March 2022. The half year dividend for 2021 of 2.0p
(H120: 0p) per ordinary share was paid on 17 September
2021.
|
|
Year ended 31.12.21
|
Year ended 31.12.20
|
|
|
Per share
|
Total
|
Per share
|
Total
|
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
|
Full year dividend paid during period
|
1.0
|
173
|
—
|
—
|
|
Half year dividend paid during period
|
2.0
|
339
|
—
|
—
|
|
Total dividend
|
3.0
|
512
|
—
|
—
|
The
Directors have confirmed their intention to initiate a share
buyback of up to £1bn after the balance sheet date. The share
buyback is expected to commence in the first quarter of 2022. The
financial statements for the year ended 31 December 2021 do not
reflect the impact of the proposed share buyback, which will be
accounted for as and when shares are repurchased by the
Company.
5.
Fair value of financial instruments
This
section should be read in conjunction with Note 17, Fair value of
financial instruments of the Barclays PLC Annual Report 2021 which
provides more detail about accounting policies adopted, valuation
methodologies used in calculating fair value and the valuation
control framework which governs oversight of valuations. There have
been no changes in the accounting policies adopted or the valuation
methodologies used.
Valuation
The
following table shows the Group’s assets and liabilities that
are held at fair value disaggregated by valuation technique (fair
value hierarchy) and balance sheet classification:
|
|
Valuation technique using
|
|
|
|
Quoted market prices
|
Observable inputs
|
Significant unobservable inputs
|
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
Trading portfolio assets
|
80,926
|
63,828
|
2,281
|
147,035
|
|
Financial assets at fair value through the income
statement
|
5,093
|
177,167
|
9,712
|
191,972
|
|
Derivative financial instruments
|
6,150
|
252,412
|
4,010
|
262,572
|
|
Financial assets at fair value through other comprehensive
income
|
22,009
|
39,706
|
38
|
61,753
|
|
Investment property
|
—
|
—
|
7
|
7
|
|
Total assets
|
114,178
|
533,113
|
16,048
|
663,339
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(27,529)
|
(26,613)
|
(27)
|
(54,169)
|
|
Financial liabilities designated at fair value
|
(174)
|
(250,376)
|
(410)
|
(250,960)
|
|
Derivative financial instruments
|
(6,571)
|
(244,253)
|
(6,059)
|
(256,883)
|
|
Total liabilities
|
(34,274)
|
(521,242)
|
(6,496)
|
(562,012)
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
Trading portfolio assets
|
60,671
|
65,416
|
1,863
|
127,950
|
|
Financial assets at fair value through the income
statement
|
4,503
|
162,142
|
8,506
|
175,151
|
|
Derivative financial instruments
|
9,155
|
288,822
|
4,469
|
302,446
|
|
Financial assets at fair value through other comprehensive
income
|
19,792
|
58,743
|
153
|
78,688
|
|
Investment property
|
—
|
—
|
10
|
10
|
|
Total assets
|
94,121
|
575,123
|
15,001
|
684,245
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(24,391)
|
(22,986)
|
(28)
|
(47,405)
|
|
Financial liabilities designated at fair value
|
(159)
|
(249,251)
|
(355)
|
(249,765)
|
|
Derivative financial instruments
|
(8,762)
|
(285,774)
|
(6,239)
|
(300,775)
|
|
Total liabilities
|
(33,312)
|
(558,011)
|
(6,622)
|
(597,945)
|
6.
Subordinated liabilities
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
16,341
|
18,156
|
|
Issuances
|
1,890
|
1,438
|
|
Redemptions
|
(4,807)
|
(3,464)
|
|
Other
|
(665)
|
211
|
|
Closing balance
|
12,579
|
16,341
|
Issuances
of £1,890m comprise £855m EUR 1.125% Fixed Rate Resetting
Subordinated Callable Notes and £724m USD 3.811% Fixed Rate
Resetting Subordinated Callable Notes, both issued externally by
Barclays PLC and £229m USD Floating Rate Notes and £82m
ZAR Floating Rate Notes issued externally by Barclays
subsidiaries.
Redemptions
of £4,807m comprise £1,961m GBP 10% Fixed Rate
Subordinated Notes, £1,339m EUR 6% Fixed Rate Subordinated
Notes, £1,075m USD 10.179% Fixed Rate Subordinated Notes,
£200m GBP 9.5% Subordinated Bonds and £86m EUR
Subordinated Floating Rate Notes, issued externally by Barclays
Bank PLC and £146m USD Floating Rate Notes issued externally
by a Barclays subsidiary.
Other
movements predominantly comprise foreign exchange movements, fair
value hedge adjustments and reclassification from Debt Securities
in Issue of £67m Undated Subordinated Loan Notes (secured)
issued externally by a Barclays securitisation special purpose
vehicle in 2020.
|
|
As at
31.12.21
|
As at
31.12.20
|
|
|
£m
|
£m
|
|
Customer redress
|
310
|
497
|
|
Legal, competition and regulatory matters
|
226
|
268
|
|
Redundancy and restructuring
|
326
|
158
|
|
Undrawn
contractually committed facilities and guarantees1
|
542
|
1,064
|
|
Onerous contracts
|
5
|
28
|
|
Sundry provisions
|
279
|
289
|
|
Total
|
1,688
|
2,304
|
|
1
|
Undrawn
contractually committed facilities and guarantees provisions are
accounted for under IFRS 9.
|
As at
31 December 2021, the Group’s IAS 19 pension surplus across
all schemes was £3.6bn (December 2020: £1.5bn). The UK
Retirement Fund (UKRF), which is the Group’s main scheme, had
an IAS 19 pension surplus of £3.8bn (December 2020:
£1.8bn). The movement for the UKRF was driven by payment of
deficit reduction contributions, and an increase in the discount
rate, partially offset by higher expected long term price
inflation.
UKRF funding valuations
The
latest annual update as at 30 September 2021 showed the funding
position had improved to a surplus of £0.6bn from a deficit of
£0.9bn shown at 30 September 2020. The improvement was mainly
due to £0.7bn of deficit reduction contributions and
favourable asset returns, partially offset by higher expected long
term price inflation. The deficit recovery plan agreed at the last
triennial valuation requires deficit reduction contributions from
Barclays Bank PLC of £294m in 2022, £286m in 2023 and
£0m in 2024. The deficit reduction contributions are in
addition to the regular contributions to meet the Group’s
share of the cost of benefits accruing over each year. Deficit
reduction contributions amounting to £700m were paid in 2021.
The next triennial actuarial valuation of the UKRF is due to be
completed in 2023 with an effective date of 30 September
2022.
9.
Called up share capital
|
|
Ordinary share capital
|
Share premium
|
Total share capital and share premium
|
|
Year ended 31.12.21
|
£m
|
£m
|
£m
|
|
Opening balance as at 1 January
|
4,340
|
297
|
4,637
|
|
Issue of shares under employee share schemes
|
9
|
51
|
60
|
|
Repurchase of shares
|
(161)
|
—
|
(161)
|
|
Closing balance
|
4,188
|
348
|
4,536
|
Called
up share capital comprised 16,752m (December 2020: 17,359m)
ordinary shares of 25p each. The decrease is mainly due to the
repurchase of 644m shares as part of the share buybacks conducted
in 2021, partially offset by an increase due to the issuance of
shares under employee share schemes.
10.
Other equity instruments
|
|
Year ended
31.12.21
|
Year ended
31.12.20
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
11,172
|
10,871
|
|
Issuances
|
1,078
|
1,142
|
|
Redemptions
|
—
|
(831)
|
|
Securities held by the Group
|
9
|
(10)
|
|
Closing balance
|
12,259
|
11,172
|
Other
equity instruments of £12,259m (December 2020: £11,172m)
include AT1 securities issued by Barclays PLC. There was one
issuance in the period.
The AT1
securities are perpetual securities with no fixed maturity and are
structured to qualify as AT1 instruments under prevailing capital
rules applicable as at the relevant issue date. AT1 securities are
undated and are redeemable, at the option of Barclays PLC, in whole
on (i) the initial reset date, or on any fifth anniversary after
the initial reset date or (ii) any day falling in a named period
ending on the initial reset date, or on any fifth anniversary after
the initial reset date. In addition, the AT1 securities are
redeemable, at the option of Barclays PLC, in whole in the event of
certain changes in the tax or regulatory treatment of the
securities. Any redemptions require the prior consent of the
PRA.
All
Barclays PLC AT1 securities will be converted into ordinary shares
of Barclays PLC, at a pre-determined price, should the fully loaded
CET1 ratio of the Group fall below 7%.
|
|
As at 31.12.21
|
As at 31.12.20
|
|
|
£m
|
£m
|
|
Currency translation reserve
|
2,740
|
2,871
|
|
Fair value through other comprehensive income reserve
|
(283)
|
5
|
|
Cash flow hedging reserve
|
(853)
|
1,575
|
|
Own credit reserve
|
(960)
|
(954)
|
|
Other reserves and treasury shares
|
1,126
|
964
|
|
Total
|
1,770
|
4,461
|
Currency translation reserve
The
currency translation reserve represents the cumulative gains and
losses on the retranslation of the Group’s net investment in
foreign operations, net of the effects of hedging.
As at
31 December 2021, there was a credit balance of £2,740m
(December 2020: £2,871m credit) in the currency translation
reserve. The £131m debit movement principally reflects the
strengthening of GBP against EUR and weakening of GBP against USD
during the period.
Fair value through other comprehensive income reserve
The
fair value through other comprehensive income reserve represents
the unrealised change in the fair value through other comprehensive
income investments since initial recognition.
As at
31 December 2021, there was a debit balance of £283m (December
2020: £5m credit) in the fair value through other
comprehensive income reserve. The loss of £288m is principally
driven by a loss of £313m from the decrease in fair value of
bonds due to increasing bond yields and £305m of net gains
transferred to the income statement. This is partially offset by a
gain of £139m due to an increase in the Absa Group Limited
share price and a tax credit of £198m. £8m release in
impairment was also noted during the period.
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
31 December 2021, there was a debit balance of £853m (December
2020: £1,575m credit) in the cash flow hedging reserve. The
decrease of £2,428m principally reflects a £2,280m
decrease in the fair value of interest rate swaps held for hedging
purposes as major interest rate forward curves increased and
£1,173m of gains transferred to the income statement. This is
partially offset by a tax credit of £1,025m.
Own credit reserve
The own
credit reserve reflects the cumulative own credit gains and losses
on financial liabilities at fair value. Amounts in the own credit
reserve are not recycled to profit or loss in future
periods.
As at
31 December 2021, there was a debit balance of £960m (December
2020: £954m debit) in the own credit reserve. The movement of
£6m principally reflects a £105m loss from the tightening
of Barclays’ funding spreads. This is partially offset by
other activity of £7m and a tax credit of
£92m.
Other reserves and treasury shares
Other
reserves relate to redeemed ordinary and preference shares issued
by the Group. Treasury shares relate to Barclays PLC shares held
principally in relation to the Group’s various share
schemes.
As at
31 December 2021, there was a credit balance of £1,126m
(December 2020: £964m credit) in other reserves and treasury
shares. This is driven by an increase of £161m due to the
repurchase of 644m shares as part of the share buybacks conducted
in 2021 and a £1m increase due to a reduction in treasury
shares held in relation to employee share schemes.
Appendix: Non-IFRS Performance Measures
The
Group’s management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the
businesses’ performance between financial periods, and
provide more detail concerning the elements of performance which
the managers of these businesses are most directly able to
influence or are relevant for an assessment of the Group. They also
reflect an important aspect of the way in which operating targets
are defined and performance is monitored by
management.
However,
any non-IFRS performance measures in this document are not a
substitute for IFRS measures and readers should consider the IFRS
measures as well.
Non-IFRS performance measures glossary
|
Measure
|
Definition
|
|
Loan: deposit ratio
|
Loans
and advances at amortised cost divided by deposits at amortised
cost. The components of the calculation have been included on page
46.
|
|
Period end allocated tangible equity
|
Allocated
tangible equity is calculated as 13.5% (2020: 13.0%) of RWAs for
each business, adjusted for capital deductions, excluding goodwill
and intangible assets, reflecting the assumptions the Group uses
for capital planning purposes. Head Office allocated tangible
equity represents the difference between the Group’s tangible
shareholders’ equity and the amounts allocated to
businesses.
|
|
Average tangible shareholders’ equity
|
Calculated
as the average of the previous month’s period end tangible
equity and the current month’s period end tangible equity.
The average tangible shareholders’ equity for the period is
the average of the monthly averages within that
period.
|
|
Average allocated tangible equity
|
Calculated
as the average of the previous month’s period end allocated
tangible equity and the current month’s period end allocated
tangible equity. The average allocated tangible equity for the
period is the average of the monthly averages within that
period.
|
|
Return on average tangible shareholders’ equity
|
Statutory
profit after tax attributable to ordinary equity holders of the
parent, as a proportion of average shareholders’ equity
excluding non-controlling interests and other equity instruments
adjusted for the deduction of intangible assets and goodwill. The
components of the calculation have been included on pages 70 to
72.
|
|
Return on average allocated tangible equity
|
Statutory
profit after tax attributable to ordinary equity holders of the
parent, as a proportion of average allocated tangible equity. The
components of the calculation have been included on pages 70 to
73.
|
|
Cost: income ratio
|
Total
operating expenses divided by total income.
|
|
Loan loss rate
|
Quoted
in basis points and represents total impairment charges divided by
gross loans and advances held at amortised cost at the balance
sheet date. The components of the calculation have been included on
page 29. Quoted as zero when credit impairment is a net
release.
|
|
Net interest margin
|
Net
interest income divided by the sum of average customer assets. The
components of the calculation have been included on pages 24 to
25.
|
|
Tangible net asset value per share
|
Calculated
by dividing shareholders’ equity, excluding non-controlling
interests and other equity instruments, less goodwill and
intangible assets, by the number of issued ordinary shares. The
components of the calculation have been included on page
74.
|
Returns
Return
on average tangible equity is calculated as profit after tax
attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.5% (2020: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office average allocated tangible
equity represents the difference between the Group’s average
tangible shareholders’ equity and the amounts allocated to
businesses.
|
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
|
For the year ended 31.12.21
|
£m
|
|
£bn
|
|
%
|
|
Barclays UK
|
1,756
|
|
10.0
|
|
17.6
|
|
Corporate and Investment Bank
|
4,202
|
|
28.3
|
|
14.9
|
|
Consumer, Cards and Payments
|
615
|
|
4.1
|
|
15.0
|
|
Barclays International
|
4,817
|
|
32.4
|
|
14.9
|
|
Head Office
|
(198)
|
|
5.0
|
|
n/m
|
|
Barclays Group
|
6,375
|
|
47.4
|
|
13.4
|
|
|
|
|
|
|
|
|
For the year ended 31.12.20
|
|
|
|
|
|
|
Barclays UK
|
325
|
|
10.1
|
|
3.2
|
|
Corporate and Investment Bank
|
2,554
|
|
27.0
|
|
9.5
|
|
Consumer, Cards and Payments
|
(334)
|
|
4.5
|
|
(7.5)
|
|
Barclays International
|
2,220
|
|
31.5
|
|
7.1
|
|
Head Office
|
(1,019)
|
|
6.7
|
|
n/m
|
|
Barclays Group
|
1,526
|
|
48.3
|
|
3.2
|
|
|
Year ended 31.12.21
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit/(loss)
|
1,756
|
4,202
|
615
|
4,817
|
(198)
|
6,375
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.6
|
28.3
|
4.8
|
33.1
|
8.7
|
55.4
|
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.7)
|
(0.7)
|
(3.7)
|
(8.0)
|
|
Average tangible shareholders' equity
|
10.0
|
28.3
|
4.1
|
32.4
|
5.0
|
47.4
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
17.6%
|
14.9%
|
15.0%
|
14.9%
|
n/m
|
13.4%
|
|
|
Year ended 31.12.20
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit/(loss)
|
325
|
2,554
|
(334)
|
2,220
|
(1,019)
|
1,526
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.7
|
27.0
|
5.1
|
32.1
|
10.6
|
56.4
|
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.6)
|
(0.6)
|
(3.9)
|
(8.1)
|
|
Average tangible shareholders' equity
|
10.1
|
27.0
|
4.5
|
31.5
|
6.7
|
48.3
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
3.2%
|
9.5%
|
(7.5)%
|
7.1%
|
n/m
|
3.2%
|
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit
|
1,117
|
1,446
|
2,108
|
1,704
|
|
220
|
611
|
90
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
56.3
|
56.6
|
54.4
|
54.4
|
|
55.7
|
56.4
|
58.4
|
55.2
|
|
Average goodwill and intangibles
|
(8.1)
|
(8.2)
|
(7.9)
|
(7.9)
|
|
(8.1)
|
(8.1)
|
(8.2)
|
(8.2)
|
|
Average tangible shareholders' equity
|
48.2
|
48.4
|
46.5
|
46.5
|
|
47.6
|
48.3
|
50.2
|
47.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
9.3%
|
11.9%
|
18.1%
|
14.7%
|
|
1.8%
|
5.1%
|
0.7%
|
5.1%
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit/(loss)
|
420
|
317
|
721
|
298
|
|
160
|
113
|
(123)
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
13.6
|
13.6
|
13.5
|
13.5
|
|
13.4
|
13.7
|
13.9
|
13.7
|
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
(3.6)
|
(3.6)
|
|
(3.6)
|
(3.6)
|
(3.6)
|
(3.6)
|
|
Average allocated tangible equity
|
10.0
|
10.0
|
9.9
|
9.9
|
|
9.8
|
10.1
|
10.3
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
16.8%
|
12.7%
|
29.1%
|
12.0%
|
|
6.5%
|
4.5%
|
(4.8)%
|
6.9%
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit
|
856
|
1,263
|
1,267
|
1,431
|
|
441
|
782
|
468
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
33.8
|
32.7
|
33.0
|
32.8
|
|
31.1
|
31.2
|
34.2
|
31.9
|
|
Average goodwill and intangibles
|
(0.9)
|
(0.9)
|
(0.6)
|
(0.5)
|
|
(0.6)
|
(0.6)
|
(0.7)
|
(0.7)
|
|
Average allocated tangible equity
|
32.9
|
31.8
|
32.4
|
32.3
|
|
30.5
|
30.6
|
33.5
|
31.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.4%
|
15.9%
|
15.6%
|
17.7%
|
|
5.8%
|
10.2%
|
5.6%
|
6.8%
|
|
Corporate and Investment Bank
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit
|
733
|
1,157
|
1,049
|
1,263
|
|
413
|
627
|
694
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
28.7
|
27.8
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.1
|
26.2
|
|
Average goodwill and intangibles
|
—
|
—
|
—
|
—
|
|
—
|
—
|
(0.1)
|
—
|
|
Average allocated tangible equity
|
28.7
|
27.8
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.0
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.2%
|
16.6%
|
14.8%
|
17.9%
|
|
6.3%
|
9.5%
|
9.6%
|
12.5%
|
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
Q421
|
Q321
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Attributable profit/(loss)
|
123
|
106
|
218
|
168
|
|
28
|
155
|
(226)
|
(291)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
5.1
|
4.9
|
4.6
|
4.6
|
|
4.8
|
4.8
|
5.1
|
5.7
|
|
Average goodwill and intangibles
|
(0.9)
|
(0.9)
|
(0.6)
|
(0.5)
|
|
(0.6)
|
(0.6)
|
(0.6)
|
(0.7)
|
|
Average allocated tangible equity
|
4.2
|
4.0
|
4.0
|
4.1
|
|
4.2
|
4.2
|
4.5
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
11.7%
|
10.5%
|
21.8%
|
16.5%
|
|
2.7%
|
14.7%
|
(20.2)%
|
(23.5)%
|
|
Tangible net asset value per share
|
As at 31.12.21
|
As at 31.12.20
|
|
|
£m
|
£m
|
|
Total equity excluding non-controlling interests
|
69,222
|
65,797
|
|
Other equity instruments
|
(12,259)
|
(11,172)
|
|
Goodwill and intangibles
|
(8,061)
|
(7,948)
|
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
48,902
|
46,677
|
|
|
|
|
|
|
m
|
m
|
|
Shares in issue
|
16,752
|
17,359
|
|
|
|
|
|
|
p
|
p
|
|
Tangible net asset value per share
|
292
|
269
|
|
|
|
|
Shareholder Information
|
Results timetable1
|
|
|
|
Date
|
|
|
Ex-dividend date
|
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3 March 2022
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Dividend record date
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4 March 2022
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Cut off time of 5:00pm (UK time) for the receipt of Dividend
Re-investment Programme (DRIP) Application Form
Mandate
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18 March 2022
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Dividend payment date
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5 April 2022
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Q1 2022 Results Announcement
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28 April 2022
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For qualifying US and Canadian resident ADR holders, the 2021 full
year dividend of 4.0p per ordinary share becomes 16.0p per ADS
(representing four shares). The ex-dividend, dividend record and
dividend payment dates for ADR holders are as shown
above.
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Year ended
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Year ended
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Exchange rates2
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31.12.21
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31.12.20
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% Change3
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Period end - USD/GBP
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1.35
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1.37
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(1)%
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Average - USD/GBP
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1.38
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1.28
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8%
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3 month average - USD/GBP
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1.35
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1.32
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2%
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Period end - EUR/GBP
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1.19
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1.12
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6%
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Average - EUR/GBP
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1.16
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1.13
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3%
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3 month average - EUR/GBP
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1.18
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1.11
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6%
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Share price data
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Barclays PLC (p)
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187.00
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146.68
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Barclays PLC number of shares (m)
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16,752
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17,359
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For further information please contact
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Investor relations
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Media relations
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Chris Manners +44 (0) 20 7773 2136
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Tom Hoskin +44 (0) 20 7116 4755
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More information on Barclays can be found on our website:
home.barclays.
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Registered office
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1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
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Registrar
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Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
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Tel:
0371 384 20554 from the UK or +44
121 415 7004 from overseas.
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American Depositary Receipts (ADRs)
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Shareowner Services
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StockTransfer@equiniti.com
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Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128
(outside the US and Canada)
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Shareowner Services, PO Box 64504, St Paul, MN 55164-0504,
USA.
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Delivery of ADR certificates and overnight mail
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Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota
Heights, MN 55120, USA.
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Qualifying US and Canadian resident ADR holders should contact
Shareowner Services for further details regarding the
DRIP
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1
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Note that these
dates are provisional and subject to change.
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2
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The average
rates shown above are derived from daily spot rates during the
year.
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3
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The change is
the impact to GBP reported information.
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4
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Lines open
8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public
holidays in England and Wales.
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