UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
July 27, 2023
 
Barclays PLC
(Name of Registrant)
 
1 Churchill Place
London E14 5HP
England
(Address of Principal Executive Office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F
 
This Report on Form 6-K is filed by Barclays PLC.
 
This Report comprises:
 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.
 
EXHIBIT INDEX
 
  __________________________________________________________________________________
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
BARCLAYS PLC
 
(Registrant)
  
 
Date: July 27, 2023
 
 
 
By: /s/ Garth Wright
--------------------------------
 
Garth Wright
 
Assistant Secretary
 
 
 
Exhibit No. 1
 
 
 
 
Barclays PLC
 
Interim Results Announcement
 
30 June 2023
 
Results Announcement
Page
 
 
Notes
1
 
 
Performance Highlights
2
 
 
Group Finance Director’s Review
6
 
 
Results by Business
 
 
 
Barclays UK
8
 
 
Barclays International
11
 
 
Head Office
16
 
 
Quarterly Results Summary
17
 
 
Quarterly Results by Business
18
 
 
Performance Management
 
 
 
Margins and Balances
24
 
 
Risk Management
 
 
 
Risk Management and Principal Risks
25
 
 
Credit Risk
26
 
 
Market Risk
48
 
 
Treasury and Capital Risk
49
 
 
Statement of Directors' Responsibilities
59
 
 
Independent Review Report to Barclays PLC
60
 
 
Condensed Consolidated Financial Statements
62
 
 
Financial Statement Notes
68
 
 
Appendix: Non-IFRS Performance Measures
89
 
 
Shareholder Information
96
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.
 
Notes
 
The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the six months ended 30 June 2023 to the corresponding six months of 2022 and balance sheet analysis as at 30 June 2023 with comparatives relating to 31 December 2022 and 30 June 2022. 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, which can be accessed at home.barclays/investor-relations.
 
The information in this announcement, which was approved by the Board of Directors on 26 July 2023, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, 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) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
These results will be furnished on Form 6-K with 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 89 to 95 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. 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 directors, officers and employees of the Group (including during management presentations) 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 levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including dividend policy and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), business strategy, plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. 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, regulation and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; 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 incidents and similar events beyond the Group’s control; the impact of competition; capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the Russia-Ukraine war on European and global macroeconomic conditions, political stability and financial markets; 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 any 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; the Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-financial metrics or performance measures or its 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 financial year ended 31 December 2022), which are available on the SEC’s website at www.sec.gov.
 
Subject to Barclays PLC’s 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 return on tangible equity (RoTE) of 11.4% in Q223 and 13.2% in H123, with a half year dividend of 2.7p per share and intends to initiate a share buyback of up to £750m
 
C. S. Venkatakrishnan, Group Chief Executive, commented
“We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter. Through our diverse sources of income, prudent risk management, and ongoing cost discipline we have again demonstrated the stability and strength of the franchise we have built over many years. This means we are able to distribute increased capital returns to shareholders, while providing targeted support to our customers and clients. Looking forward we are very confident of meeting our targets for the full year.”
 
Q223 RoTE of 11.4% and H123 of 13.2%, with double-digit RoTE across all operating divisions in both periods
Announced H123 dividend of 2.7p per share and a share buyback of up to £750m
Strong balance sheet with Common Equity Tier 1 (CET1) ratio of 13.8% and Liquidity Coverage Ratio (LCR) of 158%
 
Key financial metrics:
 
 
Income
Cost: income ratio
LLR
Profit before tax
Attributable profit
RoTE
EPS
TNAV per share
CET1 ratio
Total capital return1
Q223
£6.3bn
63%
37bps
£2.0bn
£1.3bn
11.4%
8.6p
291p
13.8%
c.7.5p
H123
£13.5bn
60%
44bps
£4.6bn
£3.1bn
13.2%
19.9p
 
Q223 Performance highlights:
 
Group RoTE of 11.4% with profit before tax increased to £2.0bn (Q222: £1.5bn). The prior year includes impacts from the Over-issuance of Securities2; £0.8bn income gain and £1.1bn litigation and conduct charges. Excluding these impacts
 
Group income, up 6% year-on-year to £6.3bn, reflects diverse sources of income across Barclays:
 
 
Barclays UK income increased 14% to £2.0bn, primarily driven by net interest income growth from higher rates, including continued structural hedge income, partially offset by product dynamics in deposits and mortgages
 
 
Corporate and Investment Bank (CIB) income decreased 3% to £3.2bn, reflecting lower client activity in Global Markets and Investment Banking fees, more than offsetting a strong performance in Transaction Banking from higher rates
 
 
Consumer, Cards and Payments (CC&P) increased 18% to £1.3bn reflecting higher balances in US cards (including the Gap portfolio3), growth in client assets and liabilities, and higher rates in Private Bank
 
Group total operating expenses were £4.0bn, up 2% year-on-year, as inflation and business growth were partially offset by efficiency savings and lower litigation and conduct charges
 
 
Cost: income ratio was 63% as the Group delivered positive cost: income jaws
Credit impairment charges were £0.4bn, with a loss loan rate (LLR) of 37bps
CET1 ratio of 13.8%, based on broadly stable risk weighted assets (RWAs) of £336.9bn, and tangible net asset value (TNAV) per share of 291p
 
H123 Performance highlights:
 
Group RoTE was 13.2%, well positioned to achieve our greater than 10% target for 2023
Excluding the impact of Over-issuance of Securities in the prior year4:
 
Group income of £13.5bn, up 9% year-on-year
 
Group total operating expenses were £8.1bn, up 5% year-on-year. Cost: income ratio of 60%, consistent with full year guidance of low 60s in 2023
Credit impairment charges were £0.9bn, reflecting the anticipated normalising of charges, with an LLR of 44bps; maintaining expectation of 50-60bps LLR for 2023
On a statutory basis:
 
Group income was £13.5bn, up 2% year-on-year
 
Group total operating expenses were £8.1bn, down 12% year-on-year
 
1
Includes dividend for H123 of 2.7p per share and share buyback announced in relation to H123 of £750m.
2
Denotes the Over-issuance of Securities under Barclays Bank PLC's US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. See page 5 for reconciliation of ex. Over-issuance of Securities performance.
3
The Gap portfolio refers to the Gap Inc. US credit card portfolio
4
H122 impacts from the Over-Issuance of Securities; £0.8bn income gain and £1.5bn litigation and conduct charges.
 
Group Targets and Outlook:
 
Returns: targeting RoTE of greater than 10% in 2023, consistent with our medium-term target
Income: diversified income streams continue to position the Group well for the current economic and market environment including higher interest rates. In 2023, Barclays UK Net Interest Margin (NIM) is now expected to be less than 3.20%, with a current view of around 3.15%. Guidance remains sensitive to product dynamics including the trajectory of deposit balances and further macroeconomic developments
Costs: targeting a cost: income ratio percentage in the low 60s in 2023, investing for growth whilst progressing towards the Group’s medium-term target of below 60%
Impairment: expect an LLR of 50-60bps in 2023, based on the current macroeconomic outlook
Capital: expect to operate within the CET1 ratio medium-term target range of 13-14%
Capital returns: capital distribution policy incorporates a progressive ordinary dividend, supplemented with share buybacks as appropriate
 
Barclays Group results
 
       Half year ended
 
Three months ended
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
 
£m
£m
% Change
 
£m
£m
% Change
Barclays UK
3,922
3,373
16
 
1,961
1,724
14
Corporate and Investment Bank
7,138
7,971
(10)
 
3,162
4,033
(22)
Consumer, Cards and Payments
2,584
1,969
31
 
1,278
1,083
18
Barclays International
9,722
9,940
(2)
 
4,440
5,116
(13)
Head Office
(122)
(109)
(12)
 
(116)
(132)
12
Total income
13,522
13,204
2
 
6,285
6,708
(6)
Operating costs
(8,030)
(7,270)
(10)
 
(3,919)
(3,682)
(6)
Litigation and conduct
(32)
(1,857)
98
 
(33)
(1,334)
98
Total operating expenses
(8,062)
(9,127)
12
 
(3,952)
(5,016)
21
Other net (expenses)/income
(2)
(3)
33
 
3
7
(57)
Profit before impairment
5,458
4,074
34
 
2,336
1,699
37
Credit impairment charges
(896)
(341)
 
 
(372)
(200)
(86)
Profit before tax
4,562
3,733
22
 
1,964
1,499
31
Tax charge
(914)
(823)
(11)
 
(353)
(209)
(69)
Profit after tax
3,648
2,910
25
 
1,611
1,290
25
Non-controlling interests
(30)
(21)
(43)
 
(22)
(20)
(10)
Other equity instrument holders
(507)
(414)
(22)
 
(261)
(199)
(31)
Attributable profit
3,111
2,475
26
 
1,328
1,071
24
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
13.2%
10.1%
 
 
11.4%
8.7%
 
Average tangible shareholders' equity (£bn)
47.2
48.9
 
 
46.7
49.0
 
Cost: income ratio
60%
69%
 
 
63%
75%
 
Loan loss rate (bps)
44
17
 
 
37
20
 
Basic earnings per share
19.9p
14.8p
 
 
8.6p
6.4p
 
Dividend per share
2.7p
2.25p
 
 
 
 
 
Share buyback announced (£m)
750
500
 
 
 
 
 
Total payout equivalent per share
c.7.5p
c.5.25p
 
 
 
 
 
Basic weighted average number of shares (m)
15,645
16,684
(6)
 
15,523
16,684
(7)
Period end number of shares (m)
15,556
16,531
(6)
 
15,556
16,531
(6)
 
 
As at 30.06.23
As at 31.12.22
As at 30.06.22
Balance sheet and capital management1
£bn
£bn
£bn
Loans and advances at amortised cost
401.4
398.8
395.8
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
1.4%
Total assets
1,549.7
1,513.7
1,589.2
Deposits at amortised cost
554.7
545.8
568.7
Tangible net asset value per share
291p
295p
297p
Common equity tier 1 ratio
13.8%
13.9%
13.6%
Common equity tier 1 capital
46.6
46.9
46.7
Risk weighted assets
336.9
336.5
344.5
UK leverage ratio
5.1%
5.3%
5.1%
UK leverage exposure
1,183.7
1,130.0
1,151.2
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool (£bn)
330.7
318.0
342.5
Liquidity coverage ratio
158%
165%
156%
Net stable funding ratio2
139%
137%
 
Loan: deposit ratio
72%
73%
70%
 
1
Refer to pages 14 to 59 for further information on how capital, RWAs and leverage are calculated.
2
Represents average of the last four spot quarter end positions
 
Reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year
 
 
 
 
 
Three months ended
30.06.23
 
30.06.22
 
 
 
Statutory
 
Statutory
Impact of the Over-issuance
of Securities
Excluding impact of
the Over-issuance
of Securities
 
 
 
£m
 
£m
£m
£m
 
% Change
Barclays UK
1,961
 
1,724
1,724
 
14
Corporate and Investment Bank
3,162
 
4,033
758
3,275
 
(3)
Consumer, Cards and Payments
1,278
 
1,083
1,083
 
18
Barclays International
4,440
 
5,116
758
4,358
 
2
Head Office
(116)
 
(132)
(132)
 
12
Total income
6,285
 
6,708
758
5,950
 
6
Operating costs
(3,919)
 
(3,682)
(3,682)
 
(6)
Litigation and conduct
(33)
 
(1,334)
(1,149)
(185)
 
82
Total operating expenses
(3,952)
 
(5,016)
(1,149)
(3,867)
 
(2)
Other net income
3
 
7
7
 
(57)
Profit before impairment
2,336
 
1,699
(391)
2,090
 
12
Credit impairment charges
(372)
 
(200)
(200)
 
(86)
Profit before tax
1,964
 
1,499
(391)
1,890
 
4
Attributable profit
1,328
 
1,071
(341)
1,412
 
(6)
 
 
 
 
 
 
 
 
Average tangible shareholders' equity (£bn)
46.7
 
49.0
 
49.0
 
 
Return on average tangible shareholders' equity
11.4%
 
8.7%
 
11.5%
 
 
 
 
 
 
 
 
 
 
Half year ended
30.06.23
 
30.06.22
 
 
 
Statutory
 
Statutory
Impact of the Over-issuance
of Securities
Excluding impact of
the Over-issuance of Securities
 
 
 
£m
 
£m
£m
£m
 
% Change
Barclays UK
3,922
 
3,373
3,373
 
16
Corporate and Investment Bank
7,138
 
7,971
758
7,213
 
(1)
Consumer, Cards and Payments
2,584
 
1,969
1,969
 
31
Barclays International
9,722
 
9,940
758
9,182
 
6
Head Office
(122)
 
(109)
(109)
 
(12)
Total income
13,522
 
13,204
758
12,446
 
9
Operating costs
(8,030)
 
(7,270)
(7,270)
 
(10)
Litigation and conduct
(32)
 
(1,857)
(1,469)
(388)
 
92
Total operating expenses
(8,062)
 
(9,127)
(1,469)
(7,658)
 
(5)
Other net expenses
(2)
 
(3)
(3)
 
33
Profit before impairment
5,458
 
4,074
(711)
4,785
 
14
Credit impairment charges
(896)
 
(341)
(341)
 
 
Profit before tax
4,562
 
3,733
(711)
4,444
 
3
Attributable profit
3,111
 
2,475
(581)
3,056
 
2
 
 
 
 
 
 
 
 
Average tangible shareholders' equity (£bn)
47.2
 
48.9
 
48.9
 
 
Return on average tangible shareholders' equity
13.2%
 
10.1%
 
12.5%
 
 
 
 
Group Finance Director’s Review
 
H123 Group performance
 
Barclays delivered a profit before tax of £4,562m (H122: £3,733m), RoTE of 13.2% (H122: 10.1%) and earnings per share (EPS) of 19.9p (H122: 14.8p)
The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses
Group income increased 2% to £13,522m primarily from the higher interest rate environment, including continued structural hedge income, and the benefit of higher balances in US cards, partially offset by the prior year benefit from hedging arrangements related to the Over-issuance of Securities and lower client activity in Global Markets and Investment Banking fees
Group total operating expenses decreased to £8,062m (H122: £9,127m)
 
Group operating expenses excluding litigation and conduct charges increased to £8,030m (H122: £7,270m) reflecting the impact of business growth, including the Gap portfolio acquisition in US cards and the Kensington Mortgage Company (KMC) acquisition in Barclays UK, with the impact of inflation broadly offset by efficiency savings
 
Litigation and conduct charges decreased to £32m (H122: £1,857m). The prior year charges included £1,469m of costs related to the Over-issuance of Securities
Credit impairment charges were £896m (H122: £341m), reflecting higher US cards balances and normalising delinquencies. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)
The effective tax rate (ETR) was 20.0% (H122: 22.0%). The prior year included the tax charge recognised for the re-measurement of the Group’s UK deferred tax assets as a result of the UK banking surcharge rate being reduced from 8% to 3%
Attributable profit was £3,111m (H122: £2,475m)
Total assets increased to £1,549.7bn (December 2022: £1,513.7bn) driven by increased trading and client activity within Global Markets, partially offset by the strengthening of GBP against USD since December 2022. The Group liquidity pool was further strengthened by growth in deposits
TNAV per share was 291p (December 2022: 295p) as EPS of 19.9p was more than offset by the 2022 full year dividend paid on 31 March 2023 and net negative reserve movements driven by currency movements and the interest rate environment
 
Capital distributions
 
Announced a half year dividend of 2.7p per share and intention to initiate a further share buyback of up to £750m
Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. 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 dividend as appropriate, including with share buybacks
 
Group capital and leverage
 
The CET1 ratio decreased by c.10bps to 13.8% (December 2022: 13.9%) as CET1 capital decreased to £46.6bn (December 2022: £46.9bn) whilst RWAs remained broadly stable at £336.9bn:
 
c.90bps increase from attributable profit generated in the period
 
c.40bps aggregate decrease from expected capital impacts in Q123, including the £0.5bn share buyback announced at FY22 results, the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, and the impact of the KMC acquisition
 
c.30bps decrease as a result of a £8.6bn increase in RWAs primarily driven by increased trading and credit risk RWAs within CIB
 
c.30bps decrease primarily due to increased regulatory capital deductions largely driven by an accrual for the FY23 dividend
 
An £8.8bn decrease in RWAs as a result of foreign exchange movements was broadly offset by a £1.2bn decrease in CET1 capital due to a decrease in the currency translation reserve
The UK leverage ratio decreased to 5.1% (December 2022: 5.3%) primarily due to a £53.7bn increase in leverage exposure to £1,183.7bn (December 2022: £1,130.0bn). This is largely driven by increased trading and client activity within Global Markets
 
Group funding and liquidity
 
The liquidity and funding position remains robust and stable in H123. The liquidity pool increased to £330.7bn (December 2022: £318.0bn) driven by deposit growth. The composition of the liquidity pool is conservative, with 80% held in cash and deposits with central banks and the remainder primarily held in high quality government bonds, materially held at fair value or hedged
The strength of the funding and liquidity position is supported by a diverse and stable deposit franchise. Total deposits increased to £554.7bn (December 2022: £545.8bn)
The LCR remained significantly above the 100% regulatory requirement at 158% (December 2022: 165%), equivalent to a surplus of £115.3bn (December 2022: £116.4bn)
Net Stable Funding Ratio (average of last four quarter ends) was 139% (December 2022: 137%), which represents a £166.6bn (December 2022: £155.6bn) surplus above the 100% regulatory requirement
Wholesale funding outstanding, excluding repurchase agreements, was £183.3bn (December 2022: £184.0bn)
The Group issued £7.1bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in H123. The Group has a strong MREL position with a ratio of 32.9%, which is in excess of the regulatory requirement of 29.2% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer
 
Other matters
 
KMC acquisition: on 1 March 2023 Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling £2.2bn with an RWA impact of £0.8bn
Combination of the Private Bank and Barclays UK Wealth business: on 1 May 2023, Wealth Management & Investments (WM&I) was transferred from Barclays UK to CC&P, creating a combined Private Bank and Wealth Management business. The combination seeks to improve customer and client experience and create business synergies:
 
The business transferred includes c.£28bn of invested assets, generating annualised income of c.£0.2bn
 
 
Excluding the transfer, Q223 Barclays UK income would have been c.£35m higher, NIM c.2bps higher and operating costs c.£35m higher, with corresponding impacts to income and operating costs for CC&P
 
 
Anna Cross, Group Finance Director
 
Results by Business
 
Barclays UK
       Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
3,278
2,732
20
 
1,660
1,393
19
Net fee, commission and other income
644
641
 
301
331
(9)
Total income
3,922
3,373
16
 
1,961
1,724
14
Operating costs
(2,182)
(2,083)
(5)
 
(1,090)
(1,085)
Litigation and conduct
3
(25)
 
 
5
(16)
 
Total operating expenses
(2,179)
(2,108)
(3)
 
(1,085)
(1,101)
1
Other net income
 
 
#DIV/0!
Profit before impairment
1,743
1,265
38
 
876
623
41
Credit impairment charges
(208)
(48)
 
 
(95)
 
Profit before tax
1,535
1,217
26
 
781
623
25
Attributable profit
1,049
854
23
 
534
458
17
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
20.4%
17.0%
 
 
20.9%
18.4%
 
Average allocated tangible equity (£bn)
10.3
10.0
 
 
10.2
10.0
 
Cost: income ratio
56%
62%
 
 
55%
64%
 
Loan loss rate (bps)
18
4
 
 
17
 
Net interest margin
3.20%
2.67%
 
 
3.22%
2.71%
 
 
 
 
 
 
 
 
 
Key facts
 
 
 
 
 
 
 
UK mortgage balances (£bn)
163.6
159.6
 
 
 
 
 
Mortgage gross lending flow (£bn)
12.2
13.9
 
 
 
 
 
Average loan to value of mortgage portfolio1
53%
51%
 
 
 
 
 
Average loan to value of new mortgage lending1
63%
69%
 
 
 
 
 
Number of branches
414
593
 
 
 
 
 
Mobile banking active customers (m)
10.8
10.1
 
 
 
 
 
30 day arrears rate - Barclaycard Consumer UK
0.9%
1.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances to customers at amortised cost
206.8
205.1
205.9
 
 
 
 
Total assets
304.8
313.2
318.8
 
 
 
 
Customer deposits at amortised cost
249.8
258.0
261.5
 
 
 
 
Loan: deposit ratio
90%
87%
85%
 
 
 
 
Risk weighted assets
73.0
73.1
72.2
 
 
 
 
Period end allocated tangible equity
10.1
10.1
9.9
 
 
 
 
 
 
 
 
 
 
 
 
 
1
Average loan to value of mortgages is balance weighted and reflects both residential and buy-to-let mortgage portfolios within the Home Loans portfolio.
 
Analysis of Barclays UK
       Half year ended
 
Three months ended
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
Personal Banking
2,497
2,099
19
 
1,244
1,077
16
Barclaycard Consumer UK
484
541
(11)
 
237
265
(11)
Business Banking
941
733
28
 
480
382
26
Total income
3,922
3,373
16
 
1,961
1,724
14
 
 
 
 
 
 
 
 
Analysis of credit impairment (charges)/releases
 
 
 
 
 
 
 
Personal Banking
(120)
(21)
 
 
(92)
(42)
 
Barclaycard Consumer UK
(118)
40
 
 
(35)
84
 
Business Banking
30
(67)
 
 
32
(42)
 
Total credit impairment charges
(208)
(48)
 
 
(95)
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
 
 
 
 
Personal Banking
173.3
169.7
167.1
 
 
 
 
Barclaycard Consumer UK
9.3
9.2
8.8
 
 
 
 
Business Banking
24.2
26.2
30.0
 
 
 
 
Total loans and advances to customers at amortised cost
206.8
205.1
205.9
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
Personal Banking
191.1
195.6
197.0
 
 
 
 
Barclaycard Consumer UK
 
 
 
 
Business Banking
58.7
62.4
64.5
 
 
 
 
Total customer deposits at amortised cost
249.8
258.0
261.5
 
 
 
 
 
Barclays UK delivered a RoTE of 20.4% supported by the higher interest rate environment and the continued investment in our transformation into a next-generation, digitised consumer bank. The challenging environment has persisted with customer behaviour driving a reduction in the NIM outlook.
 
Income statement - H123 compared to H122
 
Profit before tax increased 26% to £1,535m with a RoTE of 20.4% (H122: 17.0%)
Total income increased 16% to £3,922m. Net interest income increased 20% to £3,278m with a NIM of 3.20% (H122: 2.67%), as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure and lower deposit volumes. Net fee, commission and other income was stable at £644m, including the impact of the transfer of WM&I to CC&P
 
Personal Banking income increased 19% to £2,497m, driven by higher interest rates, partially offset by mortgage margin compression and lower current accounts deposit volumes in line with wider market trends and cost of living pressures
 
 
Barclaycard Consumer UK income decreased 11% to £484m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management
 
 
Business Banking income increased 28% to £941m driven by higher interest rates, partially offset by lower government scheme lending as repayments continue and lower deposit volumes in line with wider market trends
 
Total operating expenses increased 3% to £2,179m from the impact of inflation, partially offset by the transfer of WM&I to CC&P. Ongoing efficiency savings continue to be reinvested in digitisation to support further improvements to the cost: income ratio over time
Credit impairment charges increased to £208m (H122: £48m), driven by UK cards and Mortgages. The updated macroeconomic scenarios reflect improvement in GDP and unemployment outlook against a backdrop of higher interest rates and a weaker House Price Index (HPI). UK cards 30 and 90 day arrears remained low at 0.9% (H122: 1.0%) and 0.2% (H122: 0.2%) respectively. The UK cards total coverage ratio was 7.1% (December 2022: 7.6%)
 
Balance sheet - 30 June 2023 compared to 31 December 2022
 
Loans and advances to customers at amortised cost increased 1% to £206.8bn primarily reflecting the acquisition of KMC and continued mortgage lending, which more than offset repayment of government scheme lending in Business Banking
Customer deposits at amortised cost decreased 3% to £249.8bn. Increases in savings product balances were more than offset by reduced current account and Business Banking deposits, reflecting broader market trends. The loan: deposit ratio increased to 90% (December 2022: 87%)
RWAs were broadly stable at £73.0bn (December 2022: £73.1bn) including a capital Loss Given Default (LGD) model update for the mortgages portfolio, partially offset by the acquisition of KMC
 
Barclays International
       Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
3,084
1,965
57
 
1,730
1,029
68
Net trading income
3,697
5,212
(29)
 
1,278
2,766
(54)
Net fee, commission and other income
2,941
2,763
6
 
1,432
1,321
8
Total income
9,722
9,940
(2)
 
4,440
5,116
(13)
Operating costs
(5,703)
(5,042)
(13)
 
(2,747)
(2,537)
(8)
Litigation and conduct
(30)
(1,832)
98
 
(33)
(1,319)
97
Total operating expenses
(5,733)
(6,874)
17
 
(2,780)
(3,856)
28
Other net income
9
13
(31)
 
6
5
20
Profit before impairment
3,998
3,079
30
 
1,666
1,265
32
Credit impairment charges
(679)
(310)
 
 
(275)
(209)
(32)
Profit before tax
3,319
2,769
20
 
1,391
1,056
32
Attributable profit
2,301
2,083
10
 
953
783
22
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
12.4%
11.5%
 
 
10.3%
8.4%
 
Average allocated tangible equity (£bn)
37.1
36.2
 
 
37.1
37.3
 
Cost: income ratio
59%
69%
 
 
63%
75%
 
Loan loss rate (bps)
78
37
 
 
63
49
 
Net interest margin1
5.86%
4.29%
 
 
5.85%
4.41%
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances to customers at amortised cost
126.6
133.7
126.7
 
 
 
 
Loans and advances to banks at amortised cost
9.7
8.7
11.3
 
 
 
 
Debt securities at amortised cost
35.2
27.2
29.3
 
 
 
 
Loans and advances at amortised cost
171.5
169.6
167.3
 
 
 
 
Trading portfolio assets
165.1
133.8
126.9
 
 
 
 
Derivative financial instrument assets
264.9
301.7
343.5
 
 
 
 
Financial assets at fair value through the income statement
232.2
210.5
209.3
 
 
 
 
Cash collateral and settlement balances
123.9
107.7
128.5
 
 
 
 
Other assets
268.8
258.0
275.1
 
 
 
 
Total assets
1,226.4
1,181.3
1,250.6
 
 
 
 
Deposits at amortised cost
305.0
287.6
307.4
 
 
 
 
Derivative financial instrument liabilities
254.5
288.9
321.2
 
 
 
 
Loan: deposit ratio
56%
59%
54%
 
 
 
 
Risk weighted assets
254.6
254.8
263.8
 
 
 
 
Period end allocated tangible equity
36.7
36.8
38.0
 
 
 
 
 
 
 
 
 
 
 
 
 
1
CIB and Barclays International margins include the lending related investment bank business.
 
Analysis of Barclays International
 
 
 
 
 
 
Corporate and Investment Bank
       Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
1,321
795
66
 
856
410
 
Net trading income
3,790
5,188
(27)
 
1,353
2,738
(51)
Net fee, commission and other income
2,027
1,988
2
 
953
885
8
Total income
7,138
7,971
(10)
 
3,162
4,033
(22)
Operating costs
(4,186)
(3,791)
(10)
 
(1,984)
(1,870)
(6)
Litigation and conduct
2
(1,632)
 
 
(1)
(1,314)
100
Total operating expenses
(4,184)
(5,423)
23
 
(1,985)
(3,184)
38
Other net income
1
 
 
1
 
Profit before impairment
2,955
2,548
16
 
1,178
849
39
Credit impairment (charges)/releases
(20)
(32)
38
 
13
(65)
 
Profit before tax
2,935
2,516
17
 
1,191
784
52
Attributable profit
2,007
1,895
6
 
798
579
38
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
12.6%
11.9%
 
 
10.0%
7.1%
 
Average allocated tangible equity (£bn)
31.8
31.8
 
 
31.8
32.7
 
Cost: income ratio
59%
68%
 
 
63%
79%
 
Loan loss rate (bps)
3
5
 
 
(4)
20
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances to customers at amortised cost
84.8
90.5
86.5
 
 
 
 
Loans and advances to banks at amortised cost
9.0
8.1
10.0
 
 
 
 
Debt securities at amortised cost
35.1
27.2
29.3
 
 
 
 
Loans and advances at amortised cost
128.9
125.8
125.8
 
 
 
 
Trading portfolio assets
165.0
133.7
126.7
 
 
 
 
Derivative financial instrument assets
264.8
301.6
343.4
 
 
 
 
Financial assets at fair value through the income statement
232.1
210.5
209.2
 
 
 
 
Cash collateral and settlement balances
122.5
106.9
127.7
 
 
 
 
Other assets
224.6
222.6
237.2
 
 
 
 
Total assets
1,137.9
1,101.1
1,170.0
 
 
 
 
Deposits at amortised cost
225.5
205.8
229.5
 
 
 
 
Derivative financial instrument liabilities
254.5
288.9
321.2
 
 
 
 
Risk weighted assets
216.5
215.9
227.6
 
 
 
 
 
 
 
 
 
 
 
 
 
       Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
FICC
2,974
3,173
(6)
 
1,186
1,529
(22)
Equities
1,267
2,463
(49)
 
563
1,411
(60)
Global Markets
4,241
5,636
(25)
 
1,749
2,940
(41)
Advisory
342
421
(19)
 
130
236
(45)
Equity capital markets
119
84
42
 
69
37
86
Debt capital markets
614
697
(12)
 
273
281
(3)
Investment Banking fees
1,075
1,202
(11)
 
472
554
(15)
Corporate lending
263
78
 
 
168
(47)
 
Transaction banking
1,559
1,055
48
 
773
586
32
Corporate
1,822
1,133
61
 
941
539
75
Total income
7,138
7,971
(10)
 
3,162
4,033
(22)
 
Analysis of Barclays International
 
 
 
 
 
 
Consumer, Cards and Payments
        Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
1,763
1,170
51
 
874
619
41
Net fee, commission, trading and other income
821
799
3
 
404
464
(13)
Total income
2,584
1,969
31
 
1,278
1,083
18
Operating costs
(1,517)
(1,251)
(21)
 
(763)
(667)
(14)
Litigation and conduct
(32)
(200)
84
 
(32)
(5)
 
Total operating expenses
(1,549)
(1,451)
(7)
 
(795)
(672)
(18)
Other net income
8
13
(38)
 
5
5
Profit before impairment
1,043
531
96
 
488
416
17
Credit impairment charges
(659)
(278)
 
 
(288)
(144)
 
Profit before tax
384
253
52
 
200
272
(26)
Attributable profit
294
188
56
 
155
204
(24)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.1%
8.5%
 
 
11.8%
17.8%
 
Average allocated tangible equity (£bn)
5.3
4.4
 
 
5.3
4.6
 
Cost: income ratio
60%
74%
 
 
62%
62%
 
Loan loss rate (bps)
293
128
 
 
255
132
 
 
 
 
 
 
 
 
 
Key facts
 
 
 
 
 
 
 
US cards 30 day arrears rate
2.4%
1.4%
 
 
 
 
 
US cards customer FICO score distribution
 
 
 
 
 
 
 
<660
11%
10%
 
 
 
 
 
>660
89%
90%
 
 
 
 
 
Total number of payments clients
401k
391k
 
 
 
 
 
Value of payments processed (£bn)1,2
161
150
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances to customers at amortised cost
41.7
43.2
40.2
 
 
 
 
Total assets
88.5
80.2
80.6
 
 
 
 
Deposits at amortised cost
79.5
81.8
77.9
 
 
 
 
Risk weighted assets
38.1
38.9
36.2
 
 
 
 
 
 
 
 
 
 
 
 
 
        Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
International Cards and Consumer Bank
1,734
1,229
41
 
835
691
21
Private Bank
554
459
21
 
295
245
20
Payments
296
281
5
 
148
147
1
Total income
2,584
1,969
31
 
1,278
1,083
18
 
1
Includes £155bn (H122: £145bn) of merchant acquiring payments.
2
The H122 comparative has been restated to reflect only the turnover of the Payments business to be consistent with H123
 
Barclays International delivered a RoTE of 12.4%. Despite the reduced banking industry fee pool and lower client activity in Global Markets, CIB delivered a RoTE of 12.6% reflecting the benefits of income diversification and investment in sustainable growth. CC&P RoTE of 11.1% reflected continued investment in the business resulting in balance growth and increased income, partially offset by higher impairment charges.
 
Income statement - H123 compared to H122
 
Profit before tax increased 20% to £3,319m with a RoTE of 12.4% (H122: 11.5%), reflecting a RoTE of 12.6% (H122: 11.9%) in CIB and 11.1% (H122: 8.5%) in CC&P
Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits, and adversely impacted credit impairment charges and total operating expenses
Total income decreased to £9,722m (H122: £9,940m)
 
CIB income decreased 10% to £7,138m. Excluding the impact from prior year hedging arrangements related to the Over-issuance of Securities1, CIB income decreased 1%
 
 
Global Markets income of £4,241m decreased 25%, and 13% excluding the impact from prior year hedging arrangements related to the Over-issuance of Securities. FICC income decreased 6% to £2,974m, driven by macro reflecting lower market volatility and client activity, partially offset by a strong performance in credit. Equities income of £1,267m decreased 49%, and 26% excluding the impact from the Over-issuance of Securities driven by a decline in derivatives income reflecting less volatile equity market conditions
 
 
Investment Banking fees decreased 11% to £1,075m due to the reduced fee pool across Advisory and Debt capital markets2, partially offset by an improvement in Equity capital markets
 
 
Within Corporate, Transaction banking income increased 48% to £1,559m driven by improved deposit margins in the higher rate environment. Corporate lending income increased to £263m (H122: £78m) mainly driven by lower costs of hedging and the non-repeat of fair value losses on leverage finance lending net of mark to market gains on related hedges in H122
 
CC&P income increased 31% to £2,584m
 
 
International Cards and Consumer Bank income increased 41% to £1,734m reflecting higher cards balances and improved margins, including the Gap portfolio acquisition in Q222
 
 
Private Bank income increased 21% to £554m, reflecting client balance growth and improved margins, including the transfer of WM&I from Barclays UK
 
 
Payments income increased 5% to £296m driven by merchant acquiring turnover growth
Total operating expenses decreased 17% to £5,733m and increased 13% to £5,703m excluding litigation and conduct, reflecting investment in the business
 
CIB total operating expenses decreased 23% to £4,184m. Operating expenses excluding litigation and conduct charges increased 10% to £4,186m reflecting investment in talent and technology, and the impact of inflation
 
CC&P total operating expenses increased 7% to £1,549m. Operating expenses excluding litigation and conduct charges increased 21% to £1,517m, driven by higher investment spend to support growth, mainly in marketing and partnership costs, including the Gap portfolio acquisition, the transfer of WM&I from Barclays UK and the impact of inflation
Credit impairment charges were £679m (H122: £310m)
 
CIB credit impairment charges of £20m (H122: £32m) were driven by single name charges partially offset by the benefit of credit protection and the updated macroeconomic scenarios
 
CC&P credit impairment charges increased to £659m (H122: £278m), reflecting higher US cards balances, including the Gap portfolio, and normalising delinquencies. US cards 30 and 90 day arrears were 2.4% (H122: 1.4%) and 1.2% (H122: 0.7%) respectively. The US cards total coverage ratio was 9.0% (December 2022: 8.1%)
 
1
H122 included a £758m of income related to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities.
2
Data source: Dealogic for the period covering 1 January to 30 June 2023.
 
Balance sheet - 30 June 2023 compared to 31 December 2022
 
Loans and advances at amortised cost increased £1.9bn to £171.5bn driven by increased investment in debt securities in Treasury, offset by net loan repayments in CIB and the strengthening of GBP against USD
Trading portfolio assets increased £31.3bn to £165.1bn driven by increased trading activity at the end of the period within Global Markets
Derivative assets and liabilities decreased £36.8bn and £34.4bn respectively to £264.9bn and £254.5bn reflecting lower market volatility and the strengthening of GBP against USD
Financial assets at fair value through the income statement increased £21.7bn to £232.2bn driven by increased secured lending
Deposits at amortised costs increased £17.4bn to £305.0bn driven by increased deposits in Treasury
RWAs decreased to £254.6bn (December 2022: £254.8bn), as a reduction from the strengthening of GBP against USD was partially offset by increased trading and credit risk RWAs within CIB
 
Head Office
        Half year ended
 
Three months ended
 
30.06.23
30.06.22
 
 
30.06.23
30.06.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
(39)
66
 
 
(120)
 
Net fee, commission and other income
(83)
(175)
53
 
4
(132)
 
Total income
(122)
(109)
(12)
 
(116)
(132)
12
Operating costs
(145)
(145)
 
(82)
(60)
(37)
Litigation and conduct
(5)
#DIV/0!
 
(5)
1
 
Total operating expenses
(150)
(145)
(3)
 
(87)
(59)
(47)
Other net (expenses)/income
(11)
(16)
31
 
(3)
2
 
Loss before impairment
(283)
(270)
(5)
 
(206)
(189)
(9)
Credit impairment (charges)/releases
(9)
17
 
 
(2)
9
 
Loss before tax
(292)
(253)
(15)
 
(208)
(180)
(16)
Attributable loss
(239)
(462)
48
 
(159)
(170)
6
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
(0.2)
2.7
 
 
(0.6)
1.7
 
 
 
 
 
 
 
 
 
 
As at
30.06.23
As at
31.12.22
As at
30.06.22
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Total assets
18.5
19.2
19.8
 
 
 
 
Risk weighted assets
9.3
8.6
8.6
 
 
 
 
Period end allocated tangible equity
(1.5)
(0.2)
1.1
 
 
 
 
 
Income statement - H123 compared to H122
 
Loss before tax was £292m (H122: £253m)
Total income was an expense of £122m (H122: £109m expense) primarily reflecting hedge accounting and treasury items. The prior year included a one-off gain of £86m from the sale and leaseback of UK data centres
Total operating expenses were £150m (H122: £145m)
 
Balance sheet - 30 June 2023 compared to 31 December 2022
 
RWAs were £9.3bn (December 2022: £8.6bn)
 
Quarterly Results Summary
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
 
Q223
Q123
 
Q422
Q322
Q222
Q122
 
Q4211
Q3211
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
3,270
3,053
 
2,741
3,068
2,422
2,341
 
2,230
1,940
Net fee, commission and other income
3,015
4,184
 
3,060
2,883
4,286
4,155
 
2,930
3,525
Total income
6,285
7,237
 
5,801
5,951
6,708
6,496
 
5,160
5,465
Operating costs
(3,919)
(4,111)
 
(3,748)
(3,939)
(3,682)
(3,588)
 
(3,514)
(3,446)
UK bank levy
 
(176)
 
(170)
Litigation and conduct
(33)
1
 
(79)
339
(1,334)
(523)
 
(92)
(129)
Total operating expenses
(3,952)
(4,110)
 
(4,003)
(3,600)
(5,016)
(4,111)
 
(3,776)
(3,575)
Other net income/(expenses)
3
(5)
 
10
(1)
7
(10)
 
13
94
Profit before impairment
2,336
3,122
 
1,808
2,350
1,699
2,375
 
1,397
1,984
Credit impairment (charges)/releases
(372)
(524)
 
(498)
(381)
(200)
(141)
 
31
(120)
Profit before tax
1,964
2,598
 
1,310
1,969
1,499
2,234
 
1,428
1,864
Tax (charge)/credit
(353)
(561)
 
33
(249)
(209)
(614)
 
(104)
(292)
Profit after tax
1,611
2,037
 
1,343
1,720
1,290
1,620
 
1,324
1,572
Non-controlling interests
(22)
(8)
 
(22)
(2)
(20)
(1)
 
(27)
(1)
Other equity instrument holders
(261)
(246)
 
(285)
(206)
(199)
(215)
 
(218)
(197)
Attributable profit
1,328
1,783
 
1,036
1,512
1,071
1,404
 
1,079
1,374
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
11.4%
15.0%
 
8.9%
12.5%
8.7%
11.5%
 
9.0%
11.4%
Average tangible shareholders' equity (£bn)
46.7
47.6
 
46.7
48.6
49.0
48.8
 
48.0
48.3
Cost: income ratio
63%
57%
 
69%
60%
75%
63%
 
73%
65%
Loan loss rate (bps)
37
52
 
49
36
20
15
 
(3)
13
Basic earnings per share
8.6p
11.3p
 
6.5p
9.4p
6.4p
8.4p
 
6.4p
8.0p
Basic weighted average number of shares (m)
15,523
15,770
 
15,828
16,148
16,684
16,682
 
16,985
17,062
Period end number of shares (m)
15,556
15,701
 
15,871
15,888
16,531
16,762
 
16,752
16,851
 
 
 
 
 
 
 
 
 
 
 
Balance sheet and capital management2
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances to customers at amortised cost
337.4
343.6
 
343.3
346.3
337.2
325.8
 
319.9
313.5
Loans and advances to banks at amortised cost
10.9
11.0
 
10.0
12.5
12.5
11.4
 
9.7
10.6
Debt securities at amortised cost
53.1
48.9
 
45.5
54.8
46.1
34.5
 
31.8
28.9
Loans and advances at amortised cost
401.4
403.5
 
398.8
413.7
395.8
371.7
 
361.5
353.0
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
 
1.4%
1.4%
1.4%
1.5%
 
1.6%
1.7%
Total assets
1,549.7
1,539.1
 
1,513.7
1,726.9
1,589.2
1,496.1
 
1,384.3
1,406.5
Deposits at amortised cost
554.7
555.7
 
545.8
574.4
568.7
546.5
 
519.4
510.2
Tangible net asset value per share
291p
301p
 
295p
286p
297p
294p
 
291p
286p
Common equity tier 1 ratio
13.8%
13.6%
 
13.9%
13.8%
13.6%
13.8%
 
15.1%
15.3%
Common equity tier 1 capital
46.6
46.0
 
46.9
48.6
46.7
45.3
 
47.3
47.2
Risk weighted assets
336.9
338.4
 
336.5
350.8
344.5
328.8
 
314.1
307.7
UK leverage ratio
5.1%
5.1%
 
5.3%
5.0%
5.1%
5.0%
 
5.2%
5.1%
UK leverage exposure
1,183.7
1,168.9
 
1,130.0
1,232.1
1,151.2
1,123.5
 
1,137.9
1,162.7
 
 
 
 
 
 
 
 
 
 
 
Funding and liquidity
 
 
 
 
 
 
 
 
 
 
Group liquidity pool (£bn)
330.7
333.0
 
318.0
325.8
342.5
319.8
 
291.0
292.8
Liquidity coverage ratio
158%
163%
 
165%
151%
156%
159%
 
168%
161%
Net stable funding ratio3
139%
139%
 
137%
 
 
 
 
 
 
Loan: deposit ratio
72%
73%
 
73%
72%
70%
68%
 
70%
69%
 
1
The comparative capital and financial metrics relating to Q321 and Q421 have been restated to reflect the impact of the Over-issuance of Securities.
2
Refer to pages 54 to 59 for further information on how capital, RWAs and leverage are calculated.
3.
Represents average of the last four spot quarter end positions
 
Quarterly Results by Business
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q223
Q123
 
Q422
Q322
Q222
Q122
 
Q421
Q321
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
1,660
1,618
 
1,600
1,561
1,393
1,339
 
1,313
1,303
Net fee, commission and other income
301
343
 
370
355
331
310
 
386
335
Total income
1,961
1,961
 
1,970
1,916
1,724
1,649
 
1,699
1,638
Operating costs
(1,090)
(1,092)
 
(1,108)
(1,069)
(1,085)
(998)
 
(1,202)
(1,041)
UK bank levy
 
(26)
 
(36)
Litigation and conduct
5
(2)
 
(13)
(3)
(16)
(9)
 
(5)
(10)
Total operating expenses
(1,085)
(1,094)
 
(1,147)
(1,072)
(1,101)
(1,007)
 
(1,243)
(1,051)
Other net income/(expenses)
 
1
(1)
 
(1)
1
Profit before impairment
876
867
 
824
843
623
642
 
455
588
Credit impairment (charges)/releases
(95)
(113)
 
(157)
(81)
(48)
 
59
(137)
Profit before tax
781
754
 
667
762
623
594
 
514
451
Attributable profit
534
515
 
474
549
458
396
 
420
317
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances to customers at amortised cost
206.8
208.2
 
205.1
205.1
205.9
207.3
 
208.8
208.6
Total assets
304.8
308.6
 
313.2
316.8
318.8
317.2
 
321.2
312.1
Customer deposits at amortised cost
249.8
254.3
 
258.0
261.0
261.5
260.3
 
260.6
256.8
Loan: deposit ratio
90%
90%
 
87%
86%
85%
85%
 
85%
86%
Risk weighted assets
73.0
74.6
 
73.1
73.2
72.2
72.7
 
72.3
73.2
Period end allocated tangible equity
10.1
10.3
 
10.1
10.1
9.9
10.1
 
10.0
10.0
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
20.9%
20.0%
 
18.7%
22.1%
18.4%
15.6%
 
16.8%
12.7%
Average allocated tangible equity (£bn)
10.2
10.3
 
10.2
9.9
10.0
10.1
 
10.0
10.0
Cost: income ratio
55%
56%
 
58%
56%
64%
61%
 
73%
64%
Loan loss rate (bps)
17
20
 
27
14
9
 
(10)
24
Net interest margin
3.22%
3.18%
 
3.10%
3.01%
2.71%
2.62%
 
2.49%
2.49%
 
Analysis of Barclays UK
Q223
Q123
 
Q422
Q322
Q222
Q122
 
Q421
Q321
Analysis of total income
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Personal Banking
1,244
1,253
 
1,229
1,212
1,077
1,022
 
983
990
Barclaycard Consumer UK
237
247
 
269
283
265
276
 
352
293
Business Banking
480
461
 
472
421
382
351
 
364
355
Total income
1,961
1,961
 
1,970
1,916
1,724
1,649
 
1,699
1,638
 
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment (charges)/releases
 
 
 
 
 
 
 
 
 
 
Personal Banking
(92)
(28)
 
(120)
(26)
(42)
21
 
8
(30)
Barclaycard Consumer UK
(35)
(83)
 
(12)
2
84
(44)
 
114
(108)
Business Banking
32
(2)
 
(25)
(57)
(42)
(25)
 
(63)
1
Total credit impairment (charges)/releases
(95)
(113)
 
(157)
(81)
(48)
 
59
(137)
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Personal Banking
173.3
173.6
 
169.7
168.7
167.1
166.5
 
165.4
164.6
Barclaycard Consumer UK
9.3
9.0
 
9.2
9.0
8.8
8.4
 
8.7
8.6
Business Banking
24.2
25.6
 
26.2
27.4
30.0
32.4
 
34.7
35.4
Total loans and advances to customers at amortised cost
206.8
208.2
 
205.1
205.1
205.9
207.3
 
208.8
208.6
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
 
 
 
Personal Banking
191.1
194.3
 
195.6
197.3
197.0
196.6
 
196.4
193.3
Barclaycard Consumer UK
 
 
Business Banking
58.7
60.0
 
62.4
63.7
64.5
63.7
 
64.2
63.5
Total customer deposits at amortised cost
249.8
254.3
 
258.0
261.0
261.5
260.3
 
260.6
256.8
 
Barclays International
 
 
 
 
 
 
 
 
 
 
 
Q223
Q123
 
Q422
Q322
Q222
Q122
 
Q4211
Q3211
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
1,730
1,354
 
1,465
1,497
1,029
936
 
955
749
Net trading income
1,278
2,419
 
1,169
1,328
2,766
2,446
 
789
1,515
Net fee, commission and other income
1,432
1,509
 
1,228
1,240
1,321
1,442
 
1,766
1,673
Total income
4,440
5,282
 
3,862
4,065
5,116
4,824
 
3,510
3,937
Operating costs
(2,747)
(2,956)
 
(2,543)
(2,776)
(2,537)
(2,505)
 
(2,160)
(2,310)
UK bank levy
 
(133)
 
(134)
Litigation and conduct
(33)
3
 
(67)
396
(1,319)
(513)
 
(84)
(100)
Total operating expenses
(2,780)
(2,953)
 
(2,743)
(2,380)
(3,856)
(3,018)
 
(2,378)
(2,410)
Other net income
6
3
 
5
10
5
8
 
3
15
Profit before impairment
1,666
2,332
 
1,124
1,695
1,265
1,814
 
1,135
1,542
Credit impairment (charges)/releases
(275)
(404)
 
(328)
(295)
(209)
(101)
 
(23)
18
Profit before tax
1,391
1,928
 
796
1,400
1,056
1,713
 
1,112
1,560
Attributable profit
953
1,348
 
625
1,136
783
1,300
 
818
1,191
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances to customers at amortised cost
126.6
131.0
 
133.7
137.0
126.7
113.9
 
106.4
99.9
Loans and advances to banks at amortised cost
9.7
9.8
 
8.7
11.0
11.3
10.2
 
8.4
9.4
Debt securities at amortised cost
35.2
30.8
 
27.2
36.2
29.3
20.7
 
19.0
16.6
Loans and advances at amortised cost
171.5
171.6
 
169.6
184.2
167.3
144.8
 
133.8
125.9
Trading portfolio assets
165.1
137.7
 
133.8
126.3
126.9
134.1
 
146.9
144.8
Derivative financial instrument assets
264.9
256.6
 
301.7
415.7
343.5
288.8
 
261.5
257.0
Financial assets at fair value through the income statement
232.2
245.0
 
210.5
244.7
209.3
203.8
 
188.2
200.5
Cash collateral and settlement balances
123.9
125.5
 
107.7
163.3
128.5
132.0
 
88.1
115.9
Other assets
268.8
275.0
 
258.0
257.2
275.1
255.5
 
225.6
231.8
Total assets
1,226.4
1,211.4
 
1,181.3
1,391.4
1,250.6
1,159.0
 
1,044.1
1,075.9
Deposits at amortised cost
305.0
301.6
 
287.6
313.2
307.4
286.1
 
258.8
253.3
Derivative financial instrument liabilities
254.5
246.7
 
288.9
394.2
321.2
277.2
 
256.4
252.3
Loan: deposit ratio
56%
57%
 
59%
59%
54%
51%
 
52%
50%
Risk weighted assets
254.6
255.1