TIDMBARC
RNS Number : 0940R
Barclays PLC
25 October 2019
Barclays PLC
Q3 2019 Results Announcement
30 September 2019
Performance Highlights
Resilient performance delivering a year-to-date
Group return on tangible equity of 9.7% (excluding litigation
and conduct)
-- The Group delivered a Q319 return on average tangible equity (RoTE)
of 10.2%, resulting in a Q319 YTD RoTE of 9.7%(1)
-- The Group continues to target a >9% RoTE for 2019 and >10% for
2020(1) . However, given global macroeconomic uncertainty and the
current low interest rate environment, it has become more challenging
to achieve these targets, particularly with respect to 2020
-- Continuing to improve returns on a sustainable basis remains a
key priority for the Group, whilst also delivering attractive capital
returns to shareholders and investing in key business growth initiatives
-- The strengthening of the USD/GBP foreign exchange rate in the third
quarter, whilst increasing costs and impairment, provided a greater
benefit to income and profits
Returns(1) -- Group profit before tax of GBP4.9bn (Q318 YTD: GBP5.3bn)
and earnings per share (EPS) of 19.7p
Group RoTE targets of >9% in 2019 and >10% in 2020 (Q318 YTD: 21.6p)
-- Group Q319 YTD RoTE of 9.7% (Q318 YTD: 11.1%)
---
- Barclays UK RoTE of 17.2% (Q318 YTD: 18.9%)
---
- Barclays International RoTE of 10.4% (Q318 YTD:
11.6%), with a Corporate and Investment Bank
(CIB) RoTE of 9.3% (Q318 YTD: 9.7%) and Consumer,
Cards and Payments (CC&P) RoTE of 15.8%
(Q318 YTD: 21.7%)
--- --- ------------------------------------------------------
Cost efficiency -- Group operating expenses were stable at GBP10.1bn,
resulting in a cost: income ratio of 62%(1)
Cost: income ratio of <60% over time (Q318 YTD: 62%) and positive jaws, reflecting cost
efficiencies offset by continued investment
in the business
-- Cost control remains a priority given the challenging
income environment experienced in the
first three quarters of the year
-- Group cost guidance unchanged; management expects to
reduce 2019 costs below GBP13.6bn(2)
--- -----------------------------------------------------------
Capital and dividends -- Common equity tier 1 (CET1) ratio of 13.4% (December 2018:
13.2%)
CET1 ratio target becomes c.13.5% following
discussions with regulators
on operational risk change
-- Following discussions with regulators, the Group has
removed the operational risk Risk Weighted
Assets (RWAs) floor which it had previously applied,
resulting in a GBP14.2bn reduction in
total RWAs. This increased the CET1 ratio by c.60bps. As a
result, the target CET1 ratio has
been revised to c.13.5%. The total capital requirement for
operational risk remains unchanged
-- The Group paid a half year dividend of 3p which is
expected to represent, under normal circumstances,
around one-third of the total dividend for the year
--- -----------------------------------------------------------
-- Group profit before tax was GBP3.3bn (Q318 YTD: GBP3.1bn) and,
excluding litigation and conduct, was GBP4.9bn (Q318 YTD: GBP5.3bn).
The cost: income ratio was 62% (Q318 YTD: 62%), with Barclays International
income up 4%. Credit impairment charges increased to GBP1.4bn (Q318
YTD: GBP0.8bn), due to the non-recurrence of favourable US macroeconomic
scenario updates and single name recoveries in Q318 YTD. Credit
metrics remained stable across both secured and unsecured lending
-- Barclays UK profit before tax was GBP0.4bn (Q318 YTD: GBP1.6bn).
This included an additional provision for Payment Protection Insurance
(PPI) of GBP1.4bn (Q318 YTD: GBP0.4bn). Excluding litigation and
conduct, profit before tax was GBP1.9bn (Q318 YTD: GBP2.0bn). Income
declined 2%, as ongoing margin pressure was partially offset by
continued growth in mortgages and deposits. Operating expenses
were stable as cost efficiency savings were offset by planned digital
investment and inflation
-- Barclays International profit before tax was GBP3.5bn (Q318 YTD:
GBP3.6bn) driven by 4% increases in both CIB and CC&P income. Operating
expenses increased 1% due to continued investment in the business.
Credit impairment charges increased from GBP0.3bn to GBP0.8bn,
due to the non-recurrence of favourable US macroeconomic scenario
updates and single name recoveries in Q318 YTD
-- Tangible net asset value (TNAV) per share was 274p (December 2018:
262p) as 10.4p of statutory EPS (which included the effect of the
additional provision for PPI of 8p per share in Q319) and positive
net reserve movements, were partially offset by dividend payments
totalling 7p per share
1 Excluding litigation and conduct, with returns targets based on
a Group CET1 ratio of c.13.5%.
2 Excluding litigation and conduct, calculated using a USD/GBP FX
rate of 1.27 and subject to foreign currency movements.
James E Staley, Group Chief Executive Officer, said:
"For the year to September our Group RoTE stands at 9.7%,
including a 10.2% return in the third quarter.
Profit before tax was just under GBP5bn, excluding litigation
and conduct, and earnings per share were 19.7 pence for the nine
months.
These represent another set of consistent and resilient results,
and they show the benefits of our diversified model - one which
allows us to weather today's macro headwinds, and grow our
businesses and profitability over time.
In Barclays UK, the business has delivered a robust year-to-date
RoTE of 17.2%, including 21.2% in the third quarter, through
mortgage and deposit balance growth.
The CIB has produced an RoTE of 9.3% for the first nine months,
including 9.2% in the third quarter. This reflects a strong
performance in Markets, with income up in the quarter by 13%, and
in Banking, where income rose by 33%.
Our CC&P business produced an RoTE of 15.8%, and we are
targeting further growth in US cards, with a particular focus on
capturing new partnership opportunities, a core strength of the
Barclays franchise in the States.
As we continue to invest in our digital capabilities across the
bank, management's focus on cost control remains a priority. Our
cost to income ratio was stable at 62%, and we continue to expect
to see positive jaws across the Group over the remainder of the
year, and for the full year.
These results show we remain on track to achieve our target of a
group return of greater than 9% for 2019. We continue to target an
RoTE of greater than 10% in 2020, though we acknowledge that the
outlook for next year is unquestionably more challenging now than
it appeared a year ago, in particular given the uncertainty around
the UK economy and the interest rate environment.
Despite the impact to profitability of the GBP1.4bn PPI
provision, our CET1 ratio of 13.4% continues to be within our
target, which is revised to c.13.5%, now that our operational risk
RWAs are accounted for more consistently with UK peers."
James E Staley, Group Chief Executive Officer
Barclays Group results
for the nine months ended 30.09.19 30.09.18
GBPm GBPm % Change
========================================================= ============== ============== ==============
Total income 16,331 16,063 2
Credit impairment charges and other provisions (1,389) (825) (68)
========================================================= ============== ============== ==============
Net operating income 14,942 15,238 (2)
Operating expenses (10,051) (10,003) -
Litigation and conduct (1,682) (2,147) 22
Total operating expenses (11,733) (12,150) 3
Other net income 51 32 59
========================================================= ============== ============== ==============
Profit before tax 3,260 3,120 4
Tax charge(1) (814) (836) 3
========================================================= ============== ============== ==============
Profit after tax 2,446 2,284 7
Non-controlling interests (38) (151) 75
Other equity instrument holders (628) (522) (20)
========================================================= ============== ============== ==============
Attributable profit 1,780 1,611 10
Performance measures
========================================================= ============== ============== ==============
Return on average tangible shareholders' equity 5.1% 4.9%
Average tangible shareholders' equity (GBPbn) 46.6 44.1
Cost: income ratio 72% 76%
Loan loss rate (bps) 53 33
Basic earnings per share 10.4p 9.4p
Dividend per share 3.0p 2.5p
Performance measures excluding litigation and conduct(2)
========================================================= ============== ============== ==============
Profit before tax 4,942 5,267 (6)
Attributable profit 3,391 3,685 (8)
Return on average tangible shareholders' equity 9.7% 11.1%
Cost: income ratio 62% 62%
Basic earnings per share 19.7p 21.6p
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet and capital management(3) GBPbn GBPbn GBPbn
========================================================= ============== ============== ==============
Tangible net asset value per share 274p 262p 260p
Common equity tier 1 ratio 13.4% 13.2% 13.2%
Common equity tier 1 capital 41.9 41.1 41.7
Risk weighted assets 313.3 311.9 316.2
Average UK leverage ratio 4.6% 4.5% 4.6%
UK leverage ratio 4.8% 5.1% 4.9%
Funding and liquidity
========================================================= ============== ============== ==============
Group liquidity pool (GBPbn) 226 227 213
Liquidity coverage ratio 151% 169% 161%
Loan: deposit ratio 82% 83% 83%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to Additional Tier 1 (AT1) instruments has been recognised
in the tax charge of the income statement, whereas it was previously
recorded in retained earnings. Comparatives have been restated,
reducing the tax charge for Q318 year to date by GBP141m. This
change does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
3 Capital, RWAs and leverage measures are calculated applying the
transitional arrangements of the Capital Requirements Regulation
(CRR) as amended by the Capital Requirements Regulation II (CRR
II) applicable as at the reporting date. This includes IFRS 9 transitional
arrangements. For more information on the implementation of CRR
II see page 25.
4 The fully loaded CET1 ratio was 13.0%, with GBP40.7bn of CET1 capital
and GBP313.1bn of RWAs, calculated without applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date.
Group Finance Director's Review
Group performance
-- Profit before tax was GBP3,260m (Q318 YTD: GBP3,120m), including
an additional provision for PPI of GBP1,400m (Q318 YTD: GBP400m)
in Q319. Excluding litigation and conduct, profit before tax was
GBP4,942m (Q318 YTD: GBP5,267m), with higher income and stable
operating expenses offset by increased credit impairment charges.
The 6% appreciation of average USD against GBP positively impacted
income and profits and adversely impacted credit impairment charges
and operating expenses
-- Total income increased 2% to GBP16,331m. Barclays UK income decreased
2% as ongoing margin pressure and continued reduced risk appetite
in UK cards were partially offset by mortgage and deposit balance
growth. Barclays International income was up 4%, across both CIB
and CC&P. The higher CIB income was due to positive performance
in FICC, Banking fees and Transaction banking, partially offset
by reduced client activity in Equities and a reduction in Corporate
lending. The higher CC&P income reflected balance growth in US
cards and partnership growth in merchant acquiring
-- Credit impairment charges increased to GBP1,389m (Q318 YTD: GBP825m).
Economic scenarios were updated in Q319, as part of a review which
is conducted at least annually. The prior year benefitted from
favourable US macroeconomic scenario updates and single name recoveries,
whilst Q319 impairment reflects a c.GBP60m net charge from revised
scenarios, impacting primarily the Group's UK and US cards portfolios.
Credit metrics remained stable across both secured and unsecured
lending, reflecting the continued prudent management of credit
risk
-- Operating expenses were stable at GBP10,051m, as cost efficiencies
were offset by continued investment in the business. The cost:
income ratio, excluding litigation and conduct, was stable at 62%
(Q318 YTD: 62%)
-- The effective tax rate was 25.0%. Excluding litigation and conduct,
the underlying effective tax rate was 17.9%
-- Attributable profit was GBP1,780m (Q318 YTD: GBP1,611m). Excluding
litigation and conduct, attributable profit was GBP3,391m (Q318
YTD: GBP3,685m), generating a RoTE of 9.7% (Q318 YTD: 11.1%) and
EPS of 19.7p (Q318 YTD: 21.6p)
Barclays UK
-- Profit before tax, excluding litigation and conduct, decreased
7% to GBP1,899m. RoTE was robust at 17.2% (Q318 YTD: 18.9%), reflecting
the resilience of the Barclays UK business in a challenging income
environment. Including litigation and conduct charges of GBP1,524m
(Q318 YTD: GBP468m), profit before tax was GBP375m (Q318 YTD: GBP1,566m)
-- Total income decreased 2% to GBP5,394m due to a 2% decrease in
net interest income to GBP4,410m
- Personal Banking income decreased 2% to GBP2,945m, reflecting
ongoing mortgage margin pressure, partially offset by mortgage
and deposit balance growth and improved liability margins
- Barclaycard Consumer UK income decreased 8% to GBP1,459m reflecting
a continued reduced risk appetite and reduced borrowing by customers,
which resulted in a lower level of interest earning lending (IEL)
balances
- Business Banking income increased 6% to GBP990m driven by deposit
and lending growth, improved liability margins and the non-recurrence
of client remediation in Q318 YTD
- Net interest margin decreased 14bps to 3.10%, reflecting increased
refinancing activity by mortgage customers, lower IEL balances
in UK cards, and the mix effect from growth in secured lending
-- Credit impairment charges decreased 2% to GBP522m, primarily reflecting
an improved risk profile in UK cards and releases of single name
exposures in Business Banking, partially offset by the impact of
UK macroeconomic scenario updates of c.GBP30m, primarily impacting
the UK cards portfolio. The 30 and 90 day arrears rates in UK cards
decreased to 1.7% (Q318: 1.8%) and 0.8% (Q318: 0.9%) respectively
-- Operating expenses were stable at GBP2,973m (Q318 YTD: GBP2,961m)
as cost efficiencies were offset by planned digital investment
in the business and inflation. The cost: income ratio, excluding
litigation and conduct, was 55% (Q318 YTD: 54%)
-- RWAs increased to GBP76.8bn (December 2018: GBP75.2bn) including
the recognition of property leases following the implementation
of IFRS 16, growth in Mortgages and Business Banking and a change
in the mix of assets in the liquidity pool
Barclays International
-- Profit before tax, excluding litigation and conduct, decreased
4% to GBP3,508m with a RoTE of 10.4% (Q318 YTD: 11.6%), reflecting
returns in the CIB of 9.3% (Q318 YTD: 9.7%) and CC&P of 15.8% (Q318
YTD: 21.7%)
-- The 6% appreciation of average USD against GBP positively impacted
income and profits, and adversely impacted credit impairment charges
and operating expenses
-- Total income increased to GBP11,223m (Q318 YTD: GBP10,805m)
- CIB income increased 4% to GBP7,917m
- Within Markets, FICC income increased 15% to GBP2,638m reflecting
a strong performance in rates and growth in securitised products.
Equities income decreased 11% to GBP1,478m driven by equity
derivatives, which were impacted by reduced client activity.
Included in Markets was a GBP126m gain related to the Tradeweb
position and a net loss of GBP40m due to the impact of treasury
operations and hedging counterparty risk
- Banking fees income increased 3% to GBP1,955m driven by an increase
in advisory fees, partially offset by lower debt underwriting
fees reflecting a reduced Banking fee pool(1) . However, Barclays
share of the global Banking fee pool has increased since FY18,
to 4.4%(1)
- Within Corporate, Transaction banking income increased 6% to
GBP1,283m reflecting growth in deposits. This was offset by
a decrease in Corporate lending income to GBP563m (Q318 YTD:
GBP635m). Excluding mark-to-market movements on loan hedges,
Corporate lending income was broadly stable
- CC&P income increased 4% to GBP3,306m reflecting balance growth
in the US cards business and partnership growth in merchant acquiring
-- Credit impairment charges increased to GBP844m (Q318 YTD: GBP304m)
- CIB credit impairment charges increased to GBP127m (Q318 YTD:
release of GBP185m) due to the non-recurrence of favourable macroeconomic
scenario updates and single name recoveries in Q318 YTD
- CC&P credit impairment charges increased to GBP717m (Q318 YTD:
GBP489m) due to the non-recurrence of favourable US macroeconomic
scenario updates in Q318 YTD. Q319 included the impact of macroeconomic
scenario updates, predominantly in the US, of c.GBP30m. Credit
metrics decreased, with US cards 30 and 90 day arrears of 2.6%
(Q318: 2.7%) and 1.3% (Q318: 1.4%) respectively
-- Operating expenses increased 1% to GBP6,923m
- CIB operating expenses decreased 1% to GBP5,191m as cost efficiencies
were partially offset by continued investment in the business
- CC&P operating expenses increased 7% to GBP1,732m driven by continued
investment across the businesses
-- RWAs increased to GBP223.1bn (December 2018: GBP210.7bn), driven
by an increase in CIB activity and appreciation of USD against
GBP
Head Office
-- Loss before tax of GBP593m (Q318 YTD: GBP2,006m), included litigation
and conduct charges of GBP128m (Q318 YTD: GBP1,585m), reflecting
the non-recurrence of the Residential Mortgage Backed Securities
settlement in Q318 YTD
-- Total income was an expense of GBP286m (Q318 YTD: GBP262m) which
included legacy capital instrument funding costs, treasury items
and hedge accounting expenses, partially offset by the recognition
of dividends on Barclays stake in Absa Group Limited. Income expense
increased reflecting the non-recurrence of a GBP155m one-off gain
from the settlement of receivables relating to the Lehman Brothers
acquisition in Q318 YTD, partially offset by lower net expenses
from treasury operations and hedge accounting
-- Operating expenses, excluding litigation and conduct, were GBP155m
(Q318 YTD: GBP159m)
-- RWAs decreased to GBP13.4bn (December 2018: GBP26.0bn) mainly driven
by the removal of the Group's operational risk RWAs floor, partially
offset by the recognition of property leases following the implementation
of IFRS 16
1 Data Source: Dealogic, for the period covering 1 January to 30
September 2019.
Group capital and leverage
-- The Group's CET1 ratio increased to 13.4% (December 2018: 13.2%).
The increase was primarily driven by a reduction in the Group's
RWAs due to the removal of the operational risk floor effective
from 30 September 2019
- CET1 capital increased by GBP0.8bn to GBP41.9bn. This was
driven by underlying profit generation of GBP4.0bn partially
offset by dividends paid and foreseen of GBP1.8bn, the additional
provision for PPI of GBP1.4bn, pension deficit reduction contribution
payments of GBP0.5bn and a loss on the redemption of Additional
Tier 1 (AT1) securities of GBP0.4bn
- RWAs increased by GBP1.4bn to GBP313.3bn primarily driven
by an increase in CIB, offset by the reduction in the Group's
operational risk RWAs
-- The Group previously applied a floor to its Pillar 1 capital requirements
for operational risk, which was set by reference to the Group's
total operational risk RWAs as at 31 December 2017 of GBP56.7bn.
Following discussions with regulators, the Group has removed this
floor with effect from 30 September 2019, thereby reducing RWAs
by GBP14.2bn and increasing the Group's CET1 ratio by c.60bps
-- Following the removal of the Pillar 1 operational risk floor, the
Group has received a new Pillar 2A requirement (as per the Prudential
Regulation Authority's (PRA's) Individual Capital Requirement)
effective from 24 October 2019. This has increased the Pillar 2A
CET1 requirement by c.35bps to 3.0% and the Group's overall capital
requirement from 11.7% to 12.0%. The total capital requirement
for operational risk remains unchanged. As a result, the Group
is targeting a CET1 ratio of c.13.5% going forward
-- The average UK leverage ratio increased to 4.6% (December 2018:
4.5%) primarily driven by an increase in Tier 1 (T1) capital, which
included the accretion of CET1 capital and a net increase of AT1
capital, partially offset by an increase in exposure to GBP1,171bn
(December 2018: GBP1,110bn). The UK leverage ratio decreased to
4.8% (December 2018: 5.1%)
Group funding and liquidity
-- The liquidity pool was stable at GBP226bn (December 2018: GBP227bn),
reflecting the Group's prudent liquidity management approach. The
liquidity coverage ratio (LCR) remained well above the 100% regulatory
requirement at 151% (December 2018: 169%), equivalent to a surplus
of GBP77bn (December 2018: GBP90bn). The LCR and surplus have been
managed down through the course of the year, supporting increased
business funding requirements while maintaining a conservative
liquidity position
-- Wholesale funding outstanding, excluding repurchase agreements,
was GBP162bn (December 2018: GBP154bn). The Group issued GBP8.2bn
equivalent of minimum requirement for own funds and eligible liabilities
(MREL) instruments year-to-date from Barclays PLC (the Parent company).
The Group is well advanced in its MREL issuance plans, with a Barclays
PLC MREL ratio of 30.4% as at 30 September 2019 relative to an
estimated requirement including requisite buffers of 31.2% by 1
January 2022. This increased from 29.9% as at 30 June 2019 due
to the revision of the Group's Pillar 2A requirement, following
the removal of the Group's operational risk RWAs floor
Other matters
-- The Group called three AT1 instruments eligible for call on 15
September 2019. The redemptions resulted in a decrease of 13bps
to the CET1 ratio due to two of these instruments being held on
the balance sheet at historical FX rates
-- The risks associated with the process of the UK withdrawal from
the European Union continue to be closely monitored. Impairment
stock as at 30 September 2019 includes an adjustment of GBP150m
representing the anticipated impact of economic uncertainty in
the UK
Payment Protection Insurance
-- Following the increase to the provision of GBP1.4bn and provision
utilisation of GBP350m during the third quarter, the Group held
a provision of GBP1.4bn against the cost of PPI redress and associated
processing costs as at 30 September 2019. The Group has recognised
GBP11bn of cumulative provisions to date
The provision increase at Q319 is attributable to the exceptional
level of claims and information requests from customers and Claims
Management Companies (CMCs) ahead of the Financial Conduct Authority
(FCA) complaint deadline of 29 August 2019 and enquiries from the
Official Receiver on behalf of bankrupt individuals
At the end of Q319, there were in excess of 2m claims, enquiries
and information requests at various stages of processing. The increase
in provision has been calculated by applying a number of assumptions
to this population, which are based on limited observations from
processing completed to date, historical experience and management
judgement. These assumptions include the proportion of claims and
information requests expected to be valid. The provision estimate
is more sensitive to this assumption given the volumes
The following table outlines key assumptions regarding the proportion
of valid claims used in the provision calculation as at 30 September
2019 and a sensitivity analysis illustrating the impact on the
provision, if the assumptions prove too high or low
Historically Sensitivity
Observed Current Assumption GBPm
+/- 1% valid
Valid % Valid % rate
============================== ============ ================== ============
Claims Received 30% - 40% 30%(1) 11
Information Requests Received 5% - 11% 8% 76
-- There is additional uncertainty surrounding the legal position
in relation to enquiries received from the Official Receiver. Uphold
rates and average claim redress may differ from that experienced
more generally, given the particular circumstances of this population
-- The Group expects the level of uncertainty to reduce during Q419
as a greater proportion of claims, enquiries and information requests
are processed. Given the degree of sensitivity illustrated above,
it is possible that the eventual cumulative provision may differ
from the current estimate
Outlook and guidance
-- The Group continues to target a >9% RoTE for 2019 and >10% for
2020(2) . However, given global macroeconomic uncertainty and the
current low interest rate environment, it has become more challenging
to achieve these targets, particularly with respect to 2020
-- Continuing to improve returns on a sustainable basis remains a
key priority for the Group, whilst also delivering attractive capital
returns to shareholders and investing in key business growth initiatives
-- Group cost guidance is unchanged, with management expecting to
reduce 2019 costs below GBP13.6bn(3)
-- The Group expects to be at its revised target CET1 ratio of c.13.5%
at year-end
Tushar Morzaria, Group Finance Director
Based on recently observed data, August and September 2019.
1
Excluding litigation and conduct, with returns targets based on
2 a Group CET1 ratio of c.13.5%.
Excluding litigation and conduct, calculated using a USD/GBP FX
3 rate of 1.27 and subject to foreign currency movements.
Results by Business
Barclays UK Nine months Nine months
ended ended
30.09.19 30.09.18
Income statement information GBPm GBPm % Change
============================================= ============== ============== ==============
Net interest income 4,410 4,515 (2)
Net fee, commission and other income 984 1,005 (2)
============================================= ============== ============== ==============
Total income 5,394 5,520 (2)
Credit impairment charges and other
provisions (522) (530) 2
============================================= ============== ============== ==============
Net operating income 4,872 4,990 (2)
Operating expenses (2,973) (2,961) -
Litigation and conduct (1,524) (468)
============================================= ============== ============== ==============
Total operating expenses (4,497) (3,429) (31)
Other net income - 5
============================================= ============== ============== ==============
Profit before tax 375 1,566 (76)
Attributable (loss)/profit(1) (157) 957
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet information GBPbn GBPbn GBPbn
============================================= ============== ============== ==============
Loans and advances to customers at amortised
cost 193.2 187.6 186.7
Total assets 257.9 249.7 252.0
Customer deposits at amortised cost 203.3 197.3 195.8
Loan: deposit ratio 97% 96% 96%
Risk weighted assets 76.8 75.2 74.8
Period end allocated tangible equity 10.4 10.2 10.1
Nine months Nine months
ended ended
Performance measures 30.09.19 30.09.18
============== ==============
Return on average allocated tangible
equity (2.0%) 12.7%
Average allocated tangible equity (GBPbn) 10.4 10.0
Cost: income ratio 83% 62%
Loan loss rate (bps) 35 37
Net interest margin 3.10% 3.24%
Performance measures excluding litigation
and conduct(2) GBPm GBPm % Change
============================================= ============== ============== ==============
Profit before tax 1,899 2,034 (7)
Attributable profit 1,332 1,417 (6)
Return on average allocated tangible
equity 17.2% 18.9%
Cost: income ratio 55% 54%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays UK Nine months Nine months
ended ended
30.09.19 30.09.18
Analysis of total income GBPm GBPm % Change
============================================ ============== ============== ==============
Personal Banking 2,945 3,008 (2)
Barclaycard Consumer UK 1,459 1,582 (8)
Business Banking 990 930 6
============================================ ============== ============== ==============
Total income 5,394 5,520 (2)
Analysis of credit impairment charges
and other provisions
============================================ ============== ============== ==============
Personal Banking (124) (129) 4
Barclaycard Consumer UK (364) (340) (7)
Business Banking (34) (61) 44
============================================ ============== ============== ==============
Total credit impairment charges and
other provisions (522) (530) 2
As at 30.09.19 As at 31.12.18 As at 30.09.18
Analysis of loans and advances to customers
at amortised cost GBPbn GBPbn GBPbn
============================================ ============== ============== ==============
Personal Banking 150.1 146.0 145.4
Barclaycard Consumer UK 14.9 15.3 15.3
Business Banking 28.2 26.3 26.0
============================================ ============== ============== ==============
Total loans and advances to customers
at amortised cost 193.2 187.6 186.7
Analysis of customer deposits at amortised
cost
============================================ ============== ============== ==============
Personal Banking 157.9 154.0 153.4
Barclaycard Consumer UK - - -
Business Banking 45.4 43.3 42.4
============================================ ============== ============== ==============
Total customer deposits at amortised
cost 203.3 197.3 195.8
Barclays International Nine months ended Nine months ended
30.09.19 30.09.18
Income statement information GBPm GBPm % Change
============================================================ ================= ================= ==============
Net interest income 2,976 2,831 5
Net trading income 3,270 3,613 (9)
Net fee, commission and other income 4,977 4,361 14
============================================================ ================= ================= ==============
Total income 11,223 10,805 4
Credit impairment charges and other provisions (844) (304)
============================================================ ================= ================= ==============
Net operating income 10,379 10,501 (1)
Operating expenses (6,923) (6,883) (1)
Litigation and conduct (30) (94) 68
============================================================ ================= ================= ==============
Total operating expenses (6,953) (6,977) -
Other net income 52 36 44
============================================================ ================= ================= ==============
Profit before tax 3,478 3,560 (2)
Attributable profit(1) 2,419 2,620 (8)
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet information GBPbn GBPbn GBPbn
============================================================ ================= ================= ==============
Loans and advances at amortised cost 138.1 127.2 132.4
Trading portfolio assets 119.4 104.0 124.6
Derivative financial instrument assets 286.0 222.1 214.8
Financial assets at fair value through the income statement 158.0 144.7 147.8
Cash collateral and settlement balances 112.5 74.3 94.3
Other assets 195.6 189.8 186.3
============================================================ ================= ================= ==============
Total assets 1,009.6 862.1 900.2
Deposits at amortised cost 217.6 197.2 200.3
Derivative financial instrument liabilities 283.3 219.6 213.7
Loan: deposit ratio 63% 65% 66%
Risk weighted assets 223.1 210.7 214.6
Period end allocated tangible equity 31.4 29.9 30.2
Nine months ended Nine months ended
Performance measures 30.09.19 30.09.18
============================================================ ================= ================= ==============
Return on average allocated tangible equity 10.3% 11.3%
Average allocated tangible equity (GBPbn) 31.2 30.9
Cost: income ratio 62% 65%
Loan loss rate (bps) 80 30
Net interest margin 4.00% 4.15%
Performance measures excluding litigation and conduct(2) GBPm GBPm % Change
============================================================ ================= ================= ==============
Profit before tax 3,508 3,654 (4)
Attributable profit 2,445 2,692 (9)
Return on average allocated tangible equity 10.4% 11.6%
Cost: income ratio 62% 64%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Corporate and Investment Bank Nine months Nine months
ended ended
30.09.19 30.09.18
Income statement information GBPm GBPm % Change
============================================ ============== ============== ==============
FICC 2,638 2,293 15
Equities 1,478 1,662 (11)
============================================ ============== ============== ==============
Markets 4,116 3,955 4
Banking fees 1,955 1,906 3
Corporate lending 563 635 (11)
Transaction banking 1,283 1,215 6
============================================ ============== ============== ==============
Corporate 1,846 1,850 -
Other - (97)
============================================ ============== ============== ==============
Total income 7,917 7,614 4
Credit impairment (charges)/releases
and other provisions (127) 185
============================================ ============== ============== ==============
Net operating income 7,790 7,799 -
Operating expenses (5,191) (5,258) 1
Litigation and conduct (30) (45) 33
============================================ ============== ============== ==============
Total operating expenses (5,221) (5,303) 2
Other net income 27 12
============================================ ============== ============== ==============
Profit before tax 2,596 2,508 4
Attributable profit(1) 1,787 1,865 (4)
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet information GBPbn GBPbn GBPbn
============================================ ============== ============== ==============
Loans and advances at amortised cost 95.8 86.4 93.3
Trading portfolio assets 119.3 104.0 124.5
Derivative financial instrument assets 286.0 222.1 214.8
Financial assets at fair value through
the income statement 157.3 144.2 147.3
Cash collateral and settlement balances 111.6 73.4 93.3
Other assets 171.5 160.4 153.8
============================================ ============== ============== ==============
Total assets 941.5 790.5 827.0
Deposits at amortised cost 152.1 136.3 137.6
Derivative financial instrument liabilities 283.2 219.6 213.7
Risk weighted assets 184.9 170.9 175.9
Nine months Nine months
ended ended
Performance measures 30.09.19 30.09.18
============================================ ============== ============== ==============
Return on average allocated tangible
equity 9.2% 9.6%
Average allocated tangible equity
(GBPbn) 25.9 26.0
Cost: income ratio 66% 70%
Performance measures excluding litigation
and conduct(2) GBPm GBPm % Change
============================================ ============== ============== ==============
Profit before tax 2,626 2,553 3
Attributable profit 1,813 1,901 (5)
Return on average allocated tangible
equity 9.3% 9.7%
Cost: income ratio 66% 69%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for more information and calculations of
performance measures excluding litigation and conduct.
Analysis of Barclays International
Consumer, Cards and Payments Nine months Nine months
ended ended
30.09.19 30.09.18
Income statement information GBPm GBPm % Change
========================================== ============== ============== ==============
Total income 3,306 3,191 4
Credit impairment charges and other
provisions (717) (489) (47)
========================================== ============== ============== ==============
Net operating income 2,589 2,702 (4)
Operating expenses (1,732) (1,625) (7)
Litigation and conduct - (49)
========================================== ============== ============== ==============
Total operating expenses (1,732) (1,674) (3)
Other net income 25 24 4
========================================== ============== ============== ==============
Profit before tax 882 1,052 (16)
Attributable profit(1) 632 755 (16)
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet information GBPbn GBPbn GBPbn
========================================== ============== ============== ==============
Loans and advances at amortised cost 42.3 40.8 39.1
Total assets 68.1 71.6 73.2
Deposits at amortised cost 65.5 60.9 62.7
Risk weighted assets 38.2 39.8 38.7
Nine months Nine months
ended ended
Performance measures 30.09.19 30.09.18
Return on average allocated tangible
equity 15.8% 20.7%
Average allocated tangible equity
(GBPbn) 5.3 4.9
Cost: income ratio 52% 52%
Loan loss rate (bps) 213 156
Performance measures excluding litigation
and conduct(2) GBPm GBPm % Change
========================================== ============== ============== ==============
Profit before tax 882 1,101 (20)
Attributable profit 632 791 (20)
Return on average allocated tangible
equity 15.8% 21.7%
Cost: income ratio 52% 51%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for more information and calculations of
performance measures excluding litigation and conduct.
Head Office Nine months ended Nine months ended
30.09.19 30.09.18
Income statement information GBPm GBPm % Change
========================================================== ================= ================= ==============
Net interest income (323) (580) 44
Net fee, commission and other income 37 318 (88)
========================================================== ================= ================= ==============
Total income (286) (262) (9)
Credit impairment (charges)/releases and other provisions (23) 9
========================================================== ================= ================= ==============
Net operating income (309) (253) (22)
Operating expenses (155) (159) 3
Litigation and conduct (128) (1,585) 92
========================================================== ================= ================= ==============
Total operating expenses (283) (1,744) 84
Other net expenses (1) (9) 89
========================================================== ================= ================= ==============
Loss before tax (593) (2,006) 70
Attributable loss(1) (482) (1,966) 75
As at 30.09.19 As at 31.12.18 As at 30.09.18
Balance sheet information GBPbn GBPbn GBPbn
========================================================== ================= ================= ==============
Total assets 22.9 21.5 18.6
Risk weighted assets 13.4 26.0 26.8
Period end allocated tangible equity 5.5 4.9 4.2
Nine months ended Nine months ended
Performance measures 30.09.19 30.09.18
========================================================== ================= ================= ==============
Average allocated tangible equity (GBPbn) 5.0 3.2
Performance measures excluding litigation and conduct(2) GBPm GBPm % Change
========================================================== ================= ================= ==============
Loss before tax (465) (421) (10)
Attributable loss (386) (424) 9
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Quarterly Results Summary
Barclays Group
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 2,445 2,360 2,258 2,296 2,388 2,190 2,188 2,272
Net fee, commission and other income 3,096 3,178 2,994 2,777 2,741 3,386 3,170 2,750
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 5,541 5,538 5,252 5,073 5,129 5,576 5,358 5,022
Credit impairment charges and other
provisions (461) (480) (448) (643) (254) (283) (288) (573)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 5,080 5,058 4,804 4,430 4,875 5,293 5,070 4,449
Operating costs (3,293) (3,501) (3,257) (3,624) (3,329) (3,310) (3,364) (3,621)
UK bank levy - - - (269) - - - (365)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (3,293) (3,501) (3,257) (3,893) (3,329) (3,310) (3,364) (3,986)
Guaranteed Minimum Pensions (GMP) charge - - - (140) - - - -
Litigation and conduct (1,568) (53) (61) (60) (105) (81) (1,961) (383)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (4,861) (3,554) (3,318) (4,093) (3,434) (3,391) (5,325) (4,369)
Other net income/(expenses) 27 27 (3) 37 20 (7) 19 13
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) before tax 246 1,531 1,483 374 1,461 1,895 (236) 93
Tax charge(1) (269) (297) (248) (83) (192) (386) (258) (1,089)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
(Loss)/profit after tax (23) 1,234 1,235 291 1,269 1,509 (494) (996)
Non-controlling interests (4) (17) (17) (75) (43) (55) (53) (68)
Other equity instrument holders (265) (183) (180) (230) (176) (175) (171) (181)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Attributable (loss)/profit(1) (292) 1,034 1,038 (14) 1,050 1,279 (718) (1,245)
Performance measures
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average tangible shareholders'
equity (2.4%) 9.0% 9.2% (0.1%) 9.4% 11.8% (6.5%) (10.3%)
Average tangible shareholders' equity
(GBPbn) 48.4 46.2 45.2 44.3 44.6 43.5 44.2 48.1
Cost: income ratio 88% 64% 63% 81% 67% 61% 99% 87%
Loan loss rate (bps)(2) 52 56 54 77 30 35 36 56
Basic (loss)/earnings per share (1.7p) 6.0p 6.1p (0.1p) 6.1p 7.5p (4.2p) (7.3p)
Performance measures excluding litigation
and conduct(3) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,814 1,584 1,544 434 1,566 1,976 1,725 476
Attributable profit/(loss) 1,233 1,074 1,084 48 1,135 1,338 1,212 (894)
Return on average tangible shareholders'
equity 10.2% 9.3% 9.6% 0.4% 10.2% 12.3% 11.0% (7.4%)
Cost: income ratio 59% 63% 62% 79% 65% 59% 63% 79%
Basic earnings/(loss) per share 7.2p 6.3p 6.3p 0.3p 6.6p 7.8p 7.1p (5.3p)
Balance sheet and capital management(4) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total assets 1,290.4 1,232.8 1,193.5 1,133.3 1,170.8 1,149.6 1,142.2 1,133.2
Tangible net asset value per share 274p 275p 266p 262p 260p 259p 251p 276p
Common equity tier 1 ratio 13.4% 13.4% 13.0% 13.2% 13.2% 13.0% 12.7% 13.3%
Common equity tier 1 capital 41.9 42.9 41.4 41.1 41.7 41.4 40.2 41.6
Risk weighted assets 313.3 319.1 319.7 311.9 316.2 319.3 317.9 313.0
Average UK leverage ratio 4.6% 4.7% 4.6% 4.5% 4.6% 4.6% 4.6% 4.9%
Average UK leverage exposure 1,171.2 1,134.6 1,105.5 1,110.0 1,119.0 1,081.8 1,089.9 1,044.6
UK leverage ratio 4.8% 5.1% 4.9% 5.1% 4.9% 4.9% 4.8% 5.1%
UK leverage exposure 1,099.8 1,079.4 1,065.0 998.6 1,063.5 1,030.1 1,030.8 984.7
Funding and liquidity
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Group liquidity (GBPbn) 226 238 232 227 213 214 207 220
Liquidity coverage ratio 151% 156% 160% 169% 161% 154% 147% 154%
Loan: deposit ratio 82% 82% 80% 83% 83% 83% 84% 81%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Prior to Q118 comparatives calculated based on gross loans and
advances at amortised cost before the balance sheet presentation
change and IAS 39 impairment charge.
3 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
4 Capital, RWAs and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR II applicable
as at the reporting date. This includes IFRS 9 transitional arrangements.
For more information on the implementation of CRR II see page 25
Quarterly Results by Business
Barclays UK
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Net interest income 1,503 1,438 1,469 1,513 1,529 1,493 1,493 1,540
Net fee, commission and other income 343 333 308 350 367 343 295 330
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Total income 1,846 1,771 1,777 1,863 1,896 1,836 1,788 1,870
Credit impairment charges and other
provisions (101) (230) (191) (296) (115) (214) (201) (184)
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Net operating income 1,745 1,541 1,586 1,567 1,781 1,622 1,587 1,686
Operating costs (952) (1,022) (999) (1,114) (988) (968) (1,005) (1,117)
UK bank levy - - - (46) - - - (59)
Litigation and conduct (1,480) (41) (3) (15) (54) (3) (411) (53)
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Total operating expenses (2,432) (1,063) (1,002) (1,175) (1,042) (971) (1,416) (1,229)
Other net (expenses)/income - (1) 1 (2) 1 5 (1) (5)
============================================ ======= ======= ======= ======= ======= ===== ======= =======
(Loss)/profit before tax (687) 477 585 390 740 656 170 452
Attributable (loss)/profit(1) (907) 328 422 241 510 473 (26) 258
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Loans and advances to customers at amortised
cost 193.2 189.1 187.5 187.6 186.7 185.3 184.3 183.8
Total assets 257.9 259.0 253.1 249.7 252.0 245.9 235.2 237.4
Customer deposits at amortised cost 203.3 200.9 197.3 197.3 195.8 194.3 192.0 193.4
Loan: deposit ratio 97% 97% 96% 96% 96% 96% 96% 95%
Risk weighted assets 76.8 76.2 76.6 75.2 74.8 75.0 72.5 70.9
Period end allocated tangible equity 10.4 10.3 10.5 10.2 10.1 10.2 9.8 9.6
Performance measures
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Return on average allocated tangible equity (34.9%) 12.7% 16.3% 9.6% 20.1% 18.8% (1.1%) 10.7%
Average allocated tangible equity (GBPbn) 10.4 10.3 10.4 10.1 10.1 10.1 9.8 9.6
Cost: income ratio 132% 60% 56% 63% 55% 53% 79% 66%
Loan loss rate (bps)(2) 20 47 40 61 24 45 43 39
Net interest margin 3.10% 3.05% 3.18% 3.20% 3.22% 3.22% 3.27% 3.32%
Performance measures excluding litigation
and conduct(3) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================================ ======= ======= ======= ======= ======= ===== ======= =======
Profit before tax 793 518 588 405 794 659 581 505
Attributable profit 550 358 424 253 558 474 385 295
Return on average allocated tangible equity 21.2% 13.9% 16.4% 10.1% 22.0% 18.8% 15.7% 12.3%
Cost: income ratio 52% 58% 56% 62% 52% 53% 56% 63%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2. Prior to Q118 comparatives calculated based on gross loans and
advances at amortised cost before the balance sheet presentation
change and IAS 39 impairment charge.
3 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays UK Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 1,035 946 964 998 1,021 1,015 972 1,116
Barclaycard Consumer UK 472 497 490 522 551 504 527 445
Business Banking 339 328 323 343 324 317 289 309
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total income 1,846 1,771 1,777 1,863 1,896 1,836 1,788 1,870
Analysis of credit impairment (charges)/releases and other
provisions
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking (36) (36) (52) (44) (8) (49) (72) (56)
Barclaycard Consumer UK (49) (175) (140) (250) (88) (139) (113) (124)
Business Banking (16) (19) 1 (2) (19) (26) (16) (4)
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total credit impairment charges and other provisions (101) (230) (191) (296) (115) (214) (201) (184)
Analysis of loans and advances to customers at amortised
cost GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 150.1 147.3 145.9 146.0 145.4 143.6 142.1 141.3
Barclaycard Consumer UK 14.9 15.1 15.0 15.3 15.3 15.2 15.2 16.4
Business Banking 28.2 26.7 26.6 26.3 26.0 26.5 27.0 26.1
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total loans and advances to customers at amortised cost 193.2 189.1 187.5 187.6 186.7 185.3 184.3 183.8
Analysis of customer deposits at amortised cost
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 157.9 156.3 154.1 154.0 153.4 152.9 151.9 153.1
Barclaycard Consumer UK - - - - - - - -
Business Banking 45.4 44.6 43.2 43.3 42.4 41.4 40.1 40.3
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total customer deposits at amortised cost 203.3 200.9 197.3 197.3 195.8 194.3 192.0 193.4
Barclays International
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 1,059 1,017 900 984 965 853 1,013 987
Net trading income 1,110 1,016 1,144 837 1,103 1,094 1,416 935
Net fee, commission and
other income 1,581 1,870 1,526 1,400 1,222 1,760 1,379 1,397
-------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total income 3,750 3,903 3,570 3,221 3,290 3,707 3,808 3,319
Credit impairment charges
and other provisions (352) (247) (245) (354) (143) (68) (93) (386)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 3,398 3,656 3,325 2,867 3,147 3,639 3,715 2,933
Operating costs (2,282) (2,435) (2,206) (2,441) (2,277) (2,306) (2,300) (2,428)
UK bank levy - - - (210) - - - (265)
Litigation and conduct - (11) (19) (33) (32) (47) (15) (255)
-------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total operating expenses (2,282) (2,446) (2,225) (2,684) (2,309) (2,353) (2,315) (2,948)
Other net income 21 13 18 32 12 11 13 21
================================ ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,137 1,223 1,118 215 850 1,297 1,413 6
Attributable profit/(loss)(1) 799 832 788 (21) 687 926 1,007 (1,134)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
================================ ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised
cost 138.1 134.8 130.9 127.2 132.4 125.5 117.5 126.8
Trading portfolio assets 119.4 120.0 117.2 104.0 124.6 116.5 114.9 113.0
Derivative financial instrument
assets 286.0 243.8 217.3 222.1 214.8 228.2 214.1 236.2
Financial assets at fair
value through the income
statement 158.0 154.7 153.5 144.7 147.8 141.2 150.6 104.1
Cash collateral and settlement
balances 112.5 101.3 97.8 74.3 94.3 91.5 82.6 71.9
Other assets 195.6 196.8 202.3 189.8 186.3 183.6 186.9 204.1
-------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total assets 1,009.6 951.4 919.0 862.1 900.2 886.5 866.6 856.1
Deposits at amortised cost 217.6 212.0 215.5 197.2 200.3 191.0 167.2 187.3
Derivative financial instrument
liabilities 283.3 243.0 213.5 219.6 213.7 224.9 210.8 237.8
Loan: deposit ratio 63% 64% 61% 65% 66% 66% 70% 68%
Risk weighted assets 223.1 214.8 216.1 210.7 214.6 218.0 214.2 210.3
Period end allocated tangible
equity 31.4 30.2 30.6 29.9 30.2 30.5 30.0 27.5
Performance measures
================================ ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated
tangible equity 9.9% 10.7% 10.4% (0.3%) 8.8% 11.8% 13.4% (15.9%)
Average allocated tangible
equity (GBPbn) 32.2 31.1 30.5 31.3 31.1 31.4 30.1 28.5
Cost: income ratio 61% 63% 62% 83% 70% 63% 61% 89%
Loan loss rate (bps)(2) 99 72 73 107 41 22 31 76
Net interest margin 4.10% 3.91% 3.99% 3.98% 3.87% 4.03% 4.57% 4.31%
Performance measures excluding
litigation and conduct(3) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================ ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,137 1,234 1,137 248 882 1,344 1,428 261
Attributable profit/(loss) 801 840 804 13 713 960 1,019 (884)
Return on average allocated
tangible equity 10.0% 10.8% 10.6% 0.2% 9.2% 12.2% 13.6% (12.4%)
Cost: income ratio 61% 62% 62% 82% 69% 62% 60% 81%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Prior to Q118 comparatives calculated based on gross loans and
advances at amortised cost before the balance sheet presentation
change and IAS 39 impairment charge.
3 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Corporate and Investment
Bank Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
FICC 816 920 902 570 688 736 869 607
Equities 494 517 467 375 471 601 590 362
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Markets 1,310 1,437 1,369 945 1,159 1,337 1,459 969
Banking fees 688 698 569 625 519 704 683 605
Corporate lending 195 216 152 243 197 198 240 269
Transaction banking 424 444 415 412 416 385 414 408
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Corporate 619 660 567 655 613 583 654 677
Other - - - (74) (56) (44) 3 1
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 2,617 2,795 2,505 2,151 2,235 2,580 2,799 2,252
Credit impairment (charges)/releases
and other provisions (31) (44) (52) (35) 3 23 159 (127)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 2,586 2,751 2,453 2,116 2,238 2,603 2,958 2,125
Operating costs (1,712) (1,860) (1,619) (1,835) (1,712) (1,773) (1,773) (1,885)
UK bank levy - - - (188) - - - (244)
Litigation and conduct (4) (7) (19) (23) (32) - (13) (255)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (1,716) (1,867) (1,638) (2,046) (1,744) (1,773) (1,786) (2,384)
Other net income 12 3 12 15 4 5 3 7
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) before tax 882 887 827 85 498 835 1,175 (252)
Attributable profit/(loss)(1) 609 596 582 (84) 431 600 834 (1,227)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at
amortised cost 95.8 92.1 90.6 86.4 93.3 87.8 81.3 88.2
Trading portfolio assets 119.3 119.9 117.2 104.0 124.5 116.5 114.9 112.9
Derivative financial instruments
assets 286.0 243.7 217.3 222.1 214.8 228.1 214.2 236.1
Financial assets at fair
value through the income
statement 157.3 154.1 152.9 144.2 147.3 140.7 150.2 103.8
Cash collateral and settlement
balances 111.6 100.4 96.9 73.4 93.3 90.6 81.1 71.9
Other assets 171.5 168.1 163.2 160.4 153.8 151.6 159.8 175.8
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total assets 941.5 878.3 838.1 790.5 827.0 815.3 801.5 788.7
Deposits at amortised
cost 152.1 145.4 151.4 136.3 137.6 130.3 107.6 128.0
Derivative financial instrument
liabilities 283.2 242.9 213.5 219.6 213.7 224.9 210.9 237.7
Risk weighted assets 184.9 175.9 176.6 170.9 175.9 180.4 181.3 176.2
Performance measures
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated
tangible equity 9.1% 9.2% 9.3% (1.3%) 6.6% 9.1% 13.0% (20.2%)
Average allocated tangible
equity (GBPbn) 26.9 25.8 25.1 26.0 25.9 26.4 25.6 24.3
Cost: income ratio 66% 67% 65% 95% 78% 69% 64% 106%
Performance measures excluding
litigation and conduct(2) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 886 894 846 108 530 835 1,188 3
Attributable profit/(loss) 614 601 598 (57) 456 600 844 (977)
Return on average allocated
tangible equity 9.2% 9.3% 9.5% (0.9%) 7.0% 9.1% 13.2% (16.1%)
Cost: income ratio 65% 67% 65% 94% 77% 69% 63% 95%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Consumer, Cards and Payments Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Total income 1,133 1,108 1,065 1,070 1,055 1,127 1,009 1,067
Credit impairment charges and other provisions (321) (203) (193) (319) (146) (91) (252) (259)
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Net operating income 812 905 872 751 909 1,036 757 808
Operating costs (570) (575) (587) (606) (565) (533) (527) (543)
UK bank levy - - - (22) - - - (21)
Litigation and conduct 4 (4) - (10) - (47) (2) -
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Total operating expenses (566) (579) (587) (638) (565) (580) (529) (564)
Other net income 9 10 6 17 8 6 10 14
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Profit before tax 255 336 291 130 352 462 238 258
Attributable profit(1) 190 236 206 63 256 326 173 93
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Loans and advances at amortised cost 42.3 42.7 40.3 40.8 39.1 37.7 36.2 38.6
Total assets 68.1 73.1 80.9 71.6 73.2 71.2 65.1 67.4
Deposits at amortised cost 65.5 66.6 64.1 60.9 62.7 60.7 59.6 59.3
Risk weighted assets 38.2 38.9 39.5 39.8 38.7 37.6 32.9 34.1
Performance measures
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Return on average allocated tangible equity 14.2% 17.8% 15.4% 4.8% 19.8% 26.2% 15.6% 8.9%
Average allocated tangible equity (GBPbn) 5.3 5.3 5.4 5.3 5.2 5.0 4.5 4.2
Cost: income ratio 50% 52% 55% 60% 54% 51% 52% 53%
Loan loss rate (bps)(2) 283 180 182 290 138 90 263 255
Performance measures excluding litigation and conduct(3) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Profit before tax 251 340 291 140 352 509 240 258
Attributable profit 187 239 206 70 257 360 175 93
Return on average allocated tangible equity 14.0% 18.0% 15.4% 5.4% 19.9% 28.9% 15.7% 9.0%
Cost: income ratio 50% 52% 55% 59% 54% 47% 52% 53%
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Prior to Q118 comparatives calculated based on gross loans and
advances at amortised cost before the balance sheet presentation
change and IAS 39 impairment charge.
3 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Head Office
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Net interest income (117) (95) (111) (201) (106) (156) (318) (254)
Net fee, commission and other income 62 (41) 16 190 49 189 80 87
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Total income (55) (136) (95) (11) (57) 33 (238) (167)
Credit impairment (charges)/releases and other
provisions (8) (3) (12) 7 4 (1) 6 (3)
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Net operating (expenses)/income (63) (139) (107) (4) (53) 32 (232) (170)
Operating costs (59) (44) (52) (69) (64) (36) (59) (76)
UK bank levy - - - (13) - - - (41)
GMP charge - - - (140) - - - -
Litigation and conduct (88) (1) (39) (12) (19) (31) (1,535) (75)
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Total operating expenses (147) (45) (91) (234) (83) (67) (1,594) (192)
Other net income/(expenses) 6 15 (22) 7 7 (23) 7 (3)
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Loss before tax (204) (169) (220) (231) (129) (58) (1,819) (365)
Attributable loss(1) (184) (126) (172) (234) (147) (120) (1,699) (369)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Total assets 22.9 22.4 21.4 21.5 18.6 17.2 40.4 39.7
Risk weighted assets 13.4 28.1 27.0 26.0 26.8 26.3 31.2 31.8
Period end allocated tangible equity 5.5 7.0 4.5 4.9 4.2 3.6 3.0 10.0
Performance measures
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Average allocated tangible equity (GBPbn) 5.8 4.8 4.3 2.9 3.4 2.0 4.3 10.0
Performance measures excluding litigation and conduct(2) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
======================================================== ===== ===== ===== ===== ===== ===== ======= =====
Loss before tax (116) (168) (181) (219) (110) (27) (284) (290)
Attributable loss (118) (124) (144) (218) (136) (96) (192) (305)
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated. This change
does not impact EPS or return on average tangible shareholders'
equity.
2 Refer to pages 36 to 45 for further information and calculations
of performance measures excluding litigation and conduct.
Performance Management
Margins and
balances
Nine months ended 30.09.19 Nine months ended 30.09.18(1)
================================================ =================================================
Average
Net interest customer Net interest Net interest Average Net interest
income assets margin income customer assets margin
GBPm GBPm % GBPm GBPm %
================= =============== ============== =============== =============== =============== ===============
Barclays UK 4,410 189,994 3.10 4,515 186,474 3.24
Barclays
International(2) 2,985 99,862 4.00 2,972 95,693 4.15
================= =============== ============== =============== =============== =============== ===============
Total Barclays UK
and Barclays
International 7,395 289,856 3.41 7,487 282,167 3.55
Other(3) (332) (723)
================= =============== ============== =============== =============== =============== ===============
Total Group(4) 7,063 6,764
1 The Group's treasury results are reported directly within Barclays
UK and Barclays International from Q218 following ring-fencing,
resulting in gains and losses made on certain activities being
recognised as Other income, rather than in Net interest income.
2 Barclays International margins include interest earning lending
balances within the investment banking business.
3 Other includes Head Office and non-lending related investment banking
businesses not included in Barclays International margins.
4 The Group's combined product and equity structural hedge notional
as at 30 September 2019 was GBP173bn, with an average duration
of 2.5 to 3 years. Group net interest income includes gross structural
hedge contributions of GBP1.4bn (Q318 YTD: GBP1.3bn) and net structural
hedge contributions of GBP0.4bn (Q318 YTD: GBP0.6bn). Gross structural
hedge contributions represent the absolute level of interest earned
from the fixed receipts on the basket of swaps in the structural
hedge, while the net structural hedge contributions represent the
net interest earned on the difference between the structural hedge
rate and prevailing floating rates.
Quarterly analysis for Barclays UK and Barclays
International Net interest income Average customer assets Net interest margin
Three months ended 30.09.19 GBPm GBPm %
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,503 192,262 3.10
Barclays International(1) 1,038 100,589 4.10
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,541 292,851 3.44
Three months ended 30.06.19
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,438 189,172 3.05
Barclays International(1) 980 100,645 3.91
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,418 289,817 3.35
Three months ended 31.03.19
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,469 187,570 3.18
Barclays International(1) 967 98,313 3.99
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,436 285,883 3.46
Three months ended 31.12.18
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,513 187,813 3.20
Barclays International(1) 994 99,137 3.98
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,507 286,950 3.47
Three months ended 30.09.18
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,529 188,239 3.22
Barclays International(1) 945 96,785 3.87
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,474 285,024 3.44
1 Barclays International margins include interest earning lending
balances within the investment banking business.
Credit Risk
Loans and advances at amortised cost by stage
The table below presents an analysis of loans and advances at
amortised cost by gross exposure, impairment allowance, impairment
charge and coverage ratio by stage allocation and business segment
as at 30 September 2019. Also included are off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio by stage allocation as at
30 September 2019. Barclays does not hold any material purchased or
originated credit impaired assets as at period-end.
Gross exposure Impairment allowance
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 30.09.19 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 142,242 22,362 2,660 167,264 189 1,296 1,118 2,603 164,661
Barclays
International 28,865 4,223 1,969 35,057 360 864 1,420 2,644 32,413
Head Office 5,134 532 874 6,540 7 41 314 362 6,178
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group retail 176,241 27,117 5,503 208,861 556 2,201 2,852 5,609 203,252
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 28,667 3,484 1,201 33,352 13 45 114 172 33,180
Barclays
International 94,613 10,205 1,691 106,509 137 268 439 844 105,665
Head Office 3,025 - 40 3,065 - - 38 38 3,027
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group
wholesale 126,305 13,689 2,932 142,926 150 313 591 1,054 141,872
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total loans and
advances at
amortised cost 302,546 40,806 8,435 351,787 706 2,514 3,443 6,663 345,124
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(1) 335,072 19,774 734 355,580 102 171 50 323 355,257
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total(2) 637,618 60,580 9,169 707,367 808 2,685 3,493 6,986 700,381
As at 30.09.19 Period ended 30.09.19
================================== =================================================
Coverage ratio Loan impairment charge and loan loss rate(3)
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
=============== ======= ====== ======= ====== ============================== =================
Barclays UK 0.1 5.8 42.0 1.6 489 39
Barclays
International 1.2 20.5 72.1 7.5 704 268
Head Office 0.1 7.7 35.9 5.5 23 47
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total Barclays
Group retail 0.3 8.1 51.8 2.7 1,216 78
=============== ======= ======= ======= ======= ============== ============== ========= ======
Barclays UK - 1.3 9.5 0.5 27 11
Barclays
International 0.1 2.6 26.0 0.8 84 11
Head Office - - 95.0 1.2 - -
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total Barclays
Group
wholesale 0.1 2.3 20.2 0.7 111 10
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total loans and
advances at
amortised cost 0.2 6.2 40.8 1.9 1,327 50
=============== ======= ======= ======= ======= ============== ============== ========= ======
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(1) - 0.9 6.8 0.1 57
Other financial
assets subject
to
impairment(2) 5
=============== ======= ======= ======= ======= ==============
Total 0.1 4.4 38.1 1.0 1,389
1 Excludes loan commitments and financial guarantees of GBP14.6bn
carried at fair value.
2 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 GBP192.1bn and impairment
allowance of GBP21m. This comprises GBP12m Expected Credit Loss
(ECL) on GBP192.1bn stage 1 assets, GBP0.2m on GBP18m stage 2 fair
value through other comprehensive income, cash collateral and settlement
assets and GBP9m on GBP9m stage 3 other assets.
3 Q319 loan impairment charge represents nine months of impairment
charge, annualised to calculate the loan loss rate. The loan loss
rate for Q319 is 53bps after applying the total impairment charge
of GBP1,389m.
Gross exposure Impairment allowance
================================== ===============================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 31.12.18 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Barclays UK 134,911 25,279 3,040 163,230 183 1,389 1,152 2,724 160,506
Barclays
International 26,714 4,634 1,830 33,178 352 965 1,315 2,632 30,546
Head Office 6,510 636 938 8,084 9 47 306 362 7,722
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Total Barclays
Group retail 168,135 30,549 5,808 204,492 544 2,401 2,773 5,718 198,774
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Barclays UK 22,824 4,144 1,272 28,240 16 70 117 203 28,037
Barclays
International 87,344 8,754 1,382 97,480 128 244 439 811 96,669
Head Office 2,923 - 41 2,964 - - 38 38 2,926
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Total Barclays
Group wholesale 113,091 12,898 2,695 128,684 144 314 594 1,052 127,632
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Total loans and
advances at
amortised cost 281,226 43,447 8,503 333,176 688 2,715 3,367 6,770 326,406
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Off-balance sheet
loan commitments
and financial
guarantee
contracts(1) 309,989 22,126 684 332,799 99 150 22 271 332,528
================= ======= ======= ======= ======= ============== ============= ======== ====== ============
Total(2) 591,215 65,573 9,187 665,975 787 2,865 3,389 7,041 658,934
As at 31.12.18 Year ended 31.12.18
================================== ===============================================
Coverage ratio Loan impairment charge and loan loss rate
================================== ===============================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
================= ======= ====== ======= ====== ============================= ======== ======
Barclays UK 0.1 5.5 37.9 1.7 830 51
Barclays
International 1.3 20.8 71.9 7.9 844 254
Head Office 0.1 7.4 32.6 4.5 15 19
================= ======= ======= ======= ======= ============== ============= ======== ======
Total Barclays
Group retail 0.3 7.9 47.7 2.8 1,689 83
================= ======= ======= ======= ======= ============== ============= ======== ======
Barclays UK 0.1 1.7 9.2 0.7 74 26
Barclays
International 0.1 2.8 31.8 0.8 (142) -
Head Office -- 92.7 1.3 (31) -
================= ======= ====== ======= ======= ============== ============= ======== ======
Total Barclays
Group wholesale 0.1 2.4 22.0 0.8 (99) -
================= ======= ======= ======= ======= ============== ============= ======== ======
Total loans and
advances at
amortised cost 0.2 6.2 39.6 2.0 1,590 48
================= ======= ======= ======= ======= ============== ============= ======== ======
Off-balance sheet
loan commitments
and financial
guarantee
contracts(1) - 0.7 3.2 0.1 (125)
Other financial
assets subject
to impairment(2) 3
================= ======= ======= ======= ======= =============
Total 0.1 4.4 36.9 1.1 1,468
1 Excludes loan commitments and financial guarantees of GBP11.7bn
carried at fair value.
2 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 GBP129.9bn and impairment
allowance of GBP12m. This comprises GBP10m ECL on GBP129.3bn stage
1 assets and GBP2m on GBP0.6bn stage 2 fair value through other
comprehensive income assets.
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
Stage 2
===========================================================
As at 30.09.19 Stage 1 Not past due <=30 days past due >30 days past due Total Stage 3 Total
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,373 13,687 1,695 733 16,115 2,272 153,760
Credit cards, unsecured loans
and other retail lending 48,442 9,937 502 514 10,953 3,574 62,969
Corporate loans 118,731 12,103 435 1,200 13,738 2,589 135,058
============================== ======= ============ ================== ================= ====== ======= =======
Total 302,546 35,727 2,632 2,447 40,806 8,435 351,787
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 28 50 15 14 79 351 458
Credit cards, unsecured loans
and other retail lending 550 1,692 158 255 2,105 2,551 5,206
Corporate loans 128 310 146 330 541 999
============================== ======= ============ ================== ================ ====== ======= =======
Total 706 2,052 187 275 2,514 3,443 6,663
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,345 13,637 1,680 719 16,036 1,921 153,302
Credit cards, unsecured loans
and other retail lending 47,892 8,245 344 259 8,848 1,023 57,763
Corporate loans 118,603 11,793 421 1,194 13,408 2,048 134,059
============================== ======= ============ ================== ================= ====== ======= =======
Total 301,840 33,675 2,445 2,172 38,292 4,992 345,124
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.4 0.9 1.9 0.5 15.4 0.3
Credit cards, unsecured loans
and other retail lending 1.1 17.0 31.5 49.6 19.2 71.4 8.3
Corporate loans 0.1 2.6 3.2 0.5 2.4 20.9 0.7
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.2 5.7 7.1 11.2 6.2 40.8 1.9
As at 31.12.18
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 130,066 15,672 1,672 862 18,206 2,476 150,748
Credit cards, unsecured loans
and other retail lending 45,785 11,262 530 437 12,229 3,760 61,774
Corporate loans 105,375 12,177 360 475 13,012 2,267 120,654
============================== ======= ============ ================== ================= ====== ======= =======
Total 281,226 39,111 2,562 1,774 43,447 8,503 333,176
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 31 56 13 13 82 351 464
Credit cards, unsecured loans
and other retail lending 528 1,895 169 240 2,304 2,511 5,343
Corporate loans 129 300 16 13 329 505 963
============================== ======= ============ ================== ================= ====== ======= =======
Total 688 2,251 198 266 2,715 3,367 6,770
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 130,035 15,616 1,659 849 18,124 2,125 150,284
Credit cards, unsecured loans
and other retail lending 45,257 9,367 361 197 9,925 1,249 56,431
Corporate loans 105,246 11,877 344 462 12,683 1,762 119,691
============================== ======= ============ ================== ================= ====== ======= =======
Total 280,538 36,860 2,364 1,508 40,732 5,136 326,406
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.4 0.8 1.5 0.5 14.2 0.3
Credit cards, unsecured loans
and other retail lending 1.2 16.8 31.9 54.9 18.8 66.8 8.6
Corporate loans 0.1 2.5 4.4 2.7 2.5 22.3 0.8
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.2 5.8 7.7 15.0 6.2 39.6 2.0
Treasury and Capital Risk
Capital
The Group's CET1 overall capital requirement is 12.0% 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
3.0% Pillar 2A requirement applicable from 24 October 2019 and a
0.5% Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group have exposures. On 28 November
2018, the Financial Policy Committee set the CCyB rate for UK
exposures at 1%. The buffer rates set by other national authorities
for our non-UK exposures are not currently material. Overall, this
results in a 0.5% CCyB for the Group for Q319.
The Group's Pillar 2A requirement as per the PRA's Individual
Capital Requirement applicable from 24 October 2019 has been
revised to 5.3% (September 2019: 4.7%), of which at least 56.25%
needs to be met with CET1 capital, equating to approximately 3.0%
of RWAs (September 2019: 2.6%). The increase follows the removal of
the operational risk RWA floor from Pillar 1, and also reflects the
new requirement that is calibrated at least annually. Certain
elements of the Pillar 2A requirement are a fixed quantum whilst
others are a proportion of RWAs and are based on a point in time
assessment.
On 27 June 2019, as part of the EU Risk Reduction Measure
package, CRR II entered into force amending CRR. As an amending
regulation, the existing provisions of CRR apply unless they are
amended by CRR II. The amendments largely take effect and are
phased in from 28 June 2021 with a number of exceptions which were
implemented with immediate effect.
These exceptions primarily relate to MREL. Amendments within
this section include changes to qualifying criteria for CET1, AT1
and Tier 2 instruments, the inclusion of additional holdings
eligible for deduction, an amendment to the treatment of deferred
tax assets and the introduction of requirements for MREL.
Grandfathering and transitional provisions relating to MREL have
also been introduced.
Certain aspects of CRR II are dependent on final technical
standards to be issued by the European Banking Authority (EBA) and
adopted by the European Commission as well as UK implementation of
the rules. The disclosures in the following section reflect
Barclays' interpretation of the current rules and guidance.
As at As at As at
======================================================================================
Capital ratios(1,2,3) 30.09.19 30.06.19 31.12.18
====================================================================================== ======== ======== ========
CET1 13.4% 13.4% 13.2%
Tier 1 (T1) 17.0% 17.4% 17.0%
Total regulatory capital 21.1% 21.4% 20.7%
Capital resources GBPbn GBPbn GBPbn
====================================================================================== ======== ======== ========
Total equity excluding non-controlling interests per the balance sheet 66.2 67.6 62.6
Less: other equity instruments (recognised as AT1 capital) (10.9) (12.1) (9.6)
Adjustment to retained earnings for foreseeable dividends (0.7) (0.8) (0.7)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1.9) (1.8) (1.7)
Goodwill and intangible assets (8.1) (8.0) (8.0)
Deferred tax assets that rely on future profitability excluding temporary differences (0.3) (0.4) (0.5)
Fair value reserves related to gains or losses on cash flow hedges (1.5) (1.2) (0.7)
Gains or losses on liabilities at fair value resulting from own credit - (0.1) (0.1)
Defined benefit pension fund assets (2.0) (1.4) (1.3)
Direct and indirect holdings by an institution of own CET1 instruments (0.1) (0.1) (0.1)
Adjustment under IFRS 9 transitional arrangements 1.1 1.2 1.3
Other regulatory adjustments (0.1) - -
====================================================================================== ======== ======== ========
CET1 capital 41.9 42.9 41.1
AT1 capital
Capital instruments and related share premium accounts 10.9 12.1 9.6
Qualifying AT1 capital (including minority interests) issued by subsidiaries 0.8 0.7 2.4
Other regulatory adjustments and deductions (0.1) (0.1) (0.1)
====================================================================================== ======== ======== ========
AT1 capital 11.5 12.7 11.9
T1 capital 53.4 55.6 53.0
T2 capital
Capital instruments and related share premium accounts 8.3 8.0 6.6
Qualifying T2 capital (including minority interests) issued by subsidiaries 4.7 5.0 5.3
Other regulatory adjustments and deductions (0.3) (0.3) (0.3)
====================================================================================== ======== ======== ========
Total regulatory capital 66.1 68.3 64.6
Total RWAs 313.3 319.1 311.9
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.0%,
with GBP40.7bn of CET1 capital and GBP313.1bn of RWAs calculated
without applying the transitional arrangements of the CRR as amended
by CRR II applicable as at the reporting date.
3 The Group's CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays Bank PLC T2 Contingent Capital Notes,
was 13.4%. For this calculation CET1 capital and RWAs are calculated
applying the transitional arrangements under the CRR, including
the IFRS 9 transitional arrangements. The benefit of the Financial
Services Authority (FSA) October 2012 interpretation of the transitional
provisions, relating to the implementation of CRD IV, expired in
December 2017.
Movement in CET1 capital Three months Nine months
===========================================================================================
ended ended
===========================================================================================
30.09.19 30.09.19
GBPbn GBPbn
=========================================================================================== ============ ===========
Opening CET1 capital 42.9 41.1
Profit for the period attributable to equity holders - 2.4
Dividends paid and foreseen (0.6) (1.8)
=========================================================================================== ============ ===========
(Decrease)/increase in retained regulatory capital generated from earnings (0.7) 0.6
Net impact of share schemes 0.1 0.2
Fair value through other comprehensive income reserve (0.2) 0.3
Currency translation reserve 0.5 0.7
Other reserves (0.4) (0.4)
=========================================================================================== ============ ===========
Increase in other qualifying reserves - 0.7
Pension remeasurements within reserves 0.4 0.3
Defined benefit pension fund asset deduction (0.6) (0.7)
=========================================================================================== ============ ===========
Net impact of pensions (0.2) (0.4)
Additional value adjustments (PVA) (0.1) (0.1)
Goodwill and intangible assets (0.1) (0.1)
Deferred tax assets that rely on future profitability excluding those arising from
temporary
differences 0.1 0.2
Adjustment under IFRS 9 transitional arrangements (0.1) (0.2)
------------------------------------------------------------------------------------------- ============ ===========
Decrease in regulatory capital due to adjustments and deductions (0.2) (0.2)
Closing CET1 capital 41.9 41.9
Risk weighted assets by risk type and business
Operational
Credit risk Counterparty credit risk Market risk risk Total RWAs
============= ==================================== ============= =============== ==========
Std IRB Std IRB Settlement risk CVA Std IMA
As at 30.09.19 GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
=============== ====== ===== ===== ===== =============== ===== ====== ===== =============== ==========
Barclays UK 4.1 60.4 0.3 - - - 0.2 - 11.8 76.8
Corporate
and
Investment
Bank 27.4 69.3 12.9 17.4 0.1 4.0 15.6 16.6 21.6 184.9
Consumer,
Cards and
Payments 28.3 2.4 0.1 - - - - 0.1 7.3 38.2
=============== ====== ===== ===== ===== =============== ===== ====== ===== =============== ==========
Barclays
International 55.7 71.7 13.0 17.4 0.1 4.0 15.6 16.7 28.9 223.1
Head Office 5.3 6.3 - - - - - - 1.8 13.4
=============== ====== ===== ===== ===== =============== ===== ====== ===== =============== ==========
Barclays Group 65.1 138.4 13.3 17.4 0.1 4.0 15.8 16.7 42.5 313.3
As at 30.06.19
=============== ====== ===== ===== ===== =============== ===== ====== ===== =============== ==========
Barclays UK 3.8 60.2 0.3 - - - 0.1 - 11.8 76.2
Corporate
and
Investment
Bank 24.6 68.2 12.4 16.4 0.2 3.4 15.4 13.7 21.6 175.9
Consumer,
Cards and
Payments 29.3 2.1 0.1 - - - - 0.1 7.3 38.9
===============
Barclays
International 53.9 70.3 12.5 16.4 0.2 3.4 15.4 13.8 28.9 214.8
Head Office 5.7 6.4 - - - - - - 16.0 28.1
===============
Barclays Group 63.4 136.9 12.8 16.4 0.2 3.4 15.5 13.8 56.7 319.1
As at 31.12.18
=============== ====== ===== ===== ===== =============== ===== ====== ===== =============== ==========
Barclays UK 3.3 59.7 0.2 - - 0.1 0.1 - 11.8 75.2
Corporate
and
Investment
Bank 26.1 64.8 9.8 14.9 0.2 3.3 13.9 16.2 21.7 170.9
Consumer,
Cards and
Payments 29.5 2.2 0.1 0.1 - - - 0.6 7.3 39.8
===============
Barclays
International 55.6 67.0 9.9 15.0 0.2 3.3 13.9 16.8 29.0 210.7
Head Office 4.3 5.8 - - - - - - 15.9 26.0
===============
Barclays Group 63.2 132.5 10.1 15.0 0.2 3.4 14.0 16.8 56.7 311.9
Movement analysis of RWAs
Credit risk Counterparty credit risk Market risk Operational risk Total RWAs
GBPbn GBPbn GBPbn GBPbn GBPbn
Opening RWAs (as at 31.12.18) 195.6 28.8 30.8 56.7 311.9
Book size 4.2 6.1 (0.3) - 10.0
Acquisitions and disposals (0.2) - - - (0.2)
Book quality (1.2) (0.2) - - (1.4)
Model updates 0.8 0.5 - - 1.3
Methodology and policy 2.1 (0.4) 2.0 (14.2) (10.5)
Foreign exchange movements(1) 2.2 - - - 2.2
Closing RWAs (as at 30.09.19) 203.5 34.8 32.5 42.5 313.3
1 Foreign exchange movements does not include foreign exchange for
counterparty credit risk or market risk.
RWAs increased GBP1.4bn to GBP313.3bn:
-- 'Book size' increased RWAs by GBP10.0bn primarily driven by increased
CIB activity
-- 'Book quality' decreased RWAs by GBP1.4bn primarily due to changes
in risk profile within Barclays International
-- 'Model updates' increased GBP1.3bn primarily due to the recalibration
of modelled wholesale RWAs
-- 'Methodology and policy' decreased RWAs by GBP10.5bn primarily
due to removal of the operational risk floor
-- 'Foreign exchange movements' increased RWAs by GBP2.2bn primarily
due to the appreciation of period end USD against GBP.
Leverage ratio and exposures
The Group is subject to a leverage ratio requirement of 4.0% as
at 30 September 2019. This comprises the 3.25% minimum requirement,
a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and
a countercyclical leverage ratio buffer (CCLB) of 0.2%. 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 and CCLB must be covered
solely with CET1 capital. The CET1 capital held against the 0.53%
G-SII ALRB was GBP6.1bn and against the 0.2%, CCLB was
GBP2.3bn.
The Group is required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the quarter. The
Group is also required to disclose a UK leverage ratio based on
capital and exposure on the last day of the quarter. Both
approaches exclude qualifying claims on central banks from the
leverage exposures.
As at As at As at
30.09.19 30.06.19 31.12.18
Leverage ratios(1,2) GBPbn GBPbn GBPbn
Average UK leverage ratio 4.6% 4.7% 4.5%
Average T1 capital(3) 53.8 53.8 50.5
Average UK leverage exposure 1,171 1,135 1,110
UK leverage ratio 4.8% 5.1% 5.1%
CET1 capital 41.9 42.9 41.1
AT1 capital 10.7 12.0 9.5
T1 capital(3) 52.6 54.9 50.6
UK leverage exposure 1,100 1,079 999
UK leverage exposure
Accounting assets
Derivative financial instruments 286 244 223
Derivative cash collateral 69 59 48
Securities financing transactions (SFTs)(4) 142 144 130
Loans and advances and other assets(4) 793 786 732
Total IFRS assets 1,290 1,233 1,133
Regulatory consolidation adjustments 1 (1) (2)
Derivatives adjustments
Derivatives netting (263) (223) (202)
Adjustments to cash collateral (61) (51) (42)
Net written credit protection 16 15 19
Potential future exposure (PFE) on derivatives 134 127 123
Total derivatives adjustments (174) (132) (102)
SFTs adjustments 18 17 17
Regulatory deductions and other adjustments (13) (12) (11)
Weighted off-balance sheet commitments 114 110 108
Qualifying central bank claims (136) (136) (144)
UK leverage exposure(2) 1,100 1,079 999
1 Fully loaded average UK leverage ratio was 4.5%, with GBP1,170bn
of leverage exposure. Fully loaded UK leverage ratio was 4.7%,
with GBP51.5bn of T1 capital and GBP1,099bn of leverage exposure.
Fully loaded UK leverage ratios are calculated without applying
the transitional arrangements of the CRR as amended by CRR II applicable
as at the reporting date.
2 Capital and leverage measures are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date.
3 T1 capital is calculated in line with the PRA Handbook.
4 Comparative numbers have been revised to reflect the allocation
of margin lending from Loans and advances and other assets to SFTs.
The average UK leverage ratio increased to 4.6% (December 2018:
4.5%). T1 capital increased GBP3.3bn to GBP53.8bn, which included
the accretion of CET1 capital and a net increase in AT1 capital,
partially offset by an increase in exposure of GBP61bn to
GBP1,171bn primarily driven by SFTs trading activity.
The UK leverage ratio decreased to 4.8% (December 2018: 5.1%).
T1 capital increased GBP2.0bn to GBP52.6bn, which included the
accretion of CET1 capital and a net increase in AT1 capital. The UK
leverage exposure increased GBP101bn to GBP1,100bn primarily driven
Loans and advances and other assets and SFTs.
The Group also discloses a CRR leverage ratio(1) within its
additional regulatory disclosures prepared in accordance with EBA
guidelines on disclosure under Part Eight of the CRR (see Barclays
PLC Pillar 3 Report Q3 2019, due to be published on 25 October 2019
and which is available at
home.barclays/investor-relations/reports-and-events/latest-financial-results).
1 CRR leverage ratio as amended by CRR II applicable as at the reporting
date.
Minimum requirement for own funds and eligible liabilities
The CRR II requirements relating to own funds and eligible
liabilities came into effect from 27 June 2019. Eligible
liabilities have been calculated reflecting our interpretation of
the current rules and guidance. Certain aspects of CRR II are
dependent on final technical standards to be issued by the EBA and
adopted by the European Commission as well as UK implementation of
the rules.
The Group is required to meet the higher of: (i) the MREL set by
the Bank of England; or (ii) the requirements in CRR II, both of
which have RWA and leverage based requirements. MREL is subject to
phased implementation and will be fully implemented by 1 January
2022, at which time the Group's indicative MREL is expected to be
two times the sum of its Pillar 1 and Pillar 2A requirements, as
set by the Bank of England. In addition, CET1 capital cannot be
counted towards both MREL and the capital buffers, meaning that the
buffers will effectively be applied above both the Pillar 1 and
Pillar 2A requirements relating to own funds and eligible
liabilities. The Bank of England will review the MREL calibration
by the end of 2020, including assessing the proposal for Pillar 2A
recapitalisation, which may drive a different 1 January 2022 MREL
than currently proposed.
Following the revision of the Pillar 2A requirement, the Group's
indicative MREL is currently expected to be 31.2% of RWAs from 1
January 2022 comprising:
-- Loss absorption and recapitalisation amounts consisting of two
times the 8% Pillar 1 and 5.3% Pillar 2A requirement
-- Capital buffers including a 1.5% G-SII buffer, 2.5% CCB and 0.5%
CCyB
As at As at As at
Own funds and eligible liabilities ratios(1) 30.09.19 30.06.19 31.12.18(3)
CET1 capital 13.4% 13.4% 13.2%
AT1 capital instruments and related share premium accounts(2) 3.4% 3.8% 3.1%
T2 capital instruments and related share premium accounts(2) 2.6% 2.4% 2.1%
Eligible liabilities 11.0% 10.6% 9.7%
Total Barclays PLC (the Parent company) own funds and eligible liabilities 30.4% 30.2% 28.1%
Qualifying AT1 capital (including minority interests) issued by subsidiaries 0.2% 0.2% 0.7%
Qualifying T2 capital (including minority interests) issued by subsidiaries 1.5% 1.6% 1.6%
Total own funds and eligible liabilities, including eligible Barclays Bank PLC
instruments 32.1% 32.0% 30.5%
Own funds and eligible liabilities(1) GBPbn GBPbn GBPbn(3)
CET1 capital 41.9 42.9 41.1
AT1 capital instruments and related share premium accounts(2) 10.7 12.0 9.6
T2 capital instruments and related share premium accounts(2) 8.1 7.8 6.6
Eligible liabilities 34.5 33.7 30.4
Total Barclays PLC (the Parent company) own funds and eligible liabilities 95.2 96.4 87.7
Qualifying AT1 capital (including minority interests) issued by subsidiaries 0.8 0.7 2.3
Qualifying T2 capital (including minority interests) issued by subsidiaries 4.7 5.0 5.1
Total own funds and eligible liabilities, including eligible Barclays Bank PLC
instruments 100.6 102.0 95.1
Total RWAs(1) 313.3 319.1 311.9
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 Includes other AT1 capital regulatory adjustments and deductions
of GBP0.1bn (included in AT1 issued by subsidiaries in December
2018: GBP0.1bn), and other T2 credit risk adjustments and deductions
of GBP0.2bn (included in T2 issued by subsidiaries in December
2018: GBP0.3bn).
3 The comparatives are based on the Bank of England's statement of
policy on MREL.
Condensed Consolidated Financial Statements
Condensed consolidated income statement
Nine months ended Nine months ended
30.09.19 30.09.18
GBPm GBPm
Total income 16,331 16,063
Credit impairment charges and other provisions (1,389) (825)
Net operating income 14,942 15,238
Operating expenses excluding litigation and conduct (10,051) (10,003)
Litigation and conduct (1,682) (2,147)
Operating expenses (11,733) (12,150)
Other net income 51 32
Profit before tax 3,260 3,120
Tax charge(1) (814) (836)
Profit after tax 2,446 2,284
Attributable to:
Equity holders of the parent(1) 1,780 1,611
Other equity instrument holders 628 522
Total equity holders of the parent 2,408 2,133
Non-controlling interests 38 151
Profit after tax 2,446 2,284
Earnings per share p p
Basic earnings per ordinary share 10.4 9.4
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated, reducing the
tax charge for Q318 YTD by GBP141m. This change does not impact
EPS or return on average tangible shareholders' equity.
Condensed consolidated balance sheet
As at As at
30.09.19(1) 31.12.18
Assets GBPm GBPm
Cash and balances at central banks 156,668 177,069
Cash collateral and settlement balances 116,699 77,222
Loans and advances at amortised cost 345,124 326,406
Reverse repurchase agreements and other similar secured lending 2,653 2,308
Trading portfolio assets 120,491 104,187
Financial assets at fair value through the income statement 162,882 149,648
Derivative financial instruments 286,403 222,538
Financial assets at fair value through other comprehensive income 74,844 52,816
Investments in associates and joint ventures 761 762
Goodwill and intangible assets 8,068 7,973
Current tax assets 603 798
Deferred tax assets 2,879 3,828
Other assets 12,276 7,728
Total assets 1,290,351 1,133,283
Liabilities
Deposits at amortised cost 420,638 394,838
Cash collateral and settlement balances 103,980 67,522
Repurchase agreements and other similar secured borrowing 18,460 18,578
Debt securities in issue 86,588 82,286
Subordinated liabilities 19,435 20,559
Trading portfolio liabilities 43,048 37,882
Financial liabilities designated at fair value 233,734 216,834
Derivative financial instruments 283,529 219,643
Current tax liabilities 722 628
Deferred tax liabilities - 51
Other liabilities 12,799 10,683
Total liabilities 1,222,933 1,069,504
Equity
Called up share capital and share premium 4,527 4,311
Other reserves 6,943 5,153
Retained earnings 43,867 43,460
Shareholders' equity attributable to ordinary shareholders of the parent 55,337 52,924
Other equity instruments 10,860 9,632
Total equity excluding non-controlling interests 66,197 62,556
Non-controlling interests 1,221 1,223
Total equity 67,418 63,779
Total liabilities and equity 1,290,351 1,133,283
1 Barclays adopted the accounting standard IFRS 16 on 1 January 2019.
The impact on adoption was an increase in property, plant and equipment
of GBP1.6bn, an increase in other liabilities of GBP1.6bn, with
no material impact on retained earnings.
Condensed consolidated statement of changes in equity
Called up
share capital
and share Other equity Retained Non-controlling
premium instruments Other reserves earnings Total interests Total equity
Nine months
ended 30.09.19 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance as at
1 January
2019 4,311 9,632 5,153 43,460 62,556 1,223 63,779
Profit after
tax - 628 - 1,780 2,408 38 2,446
Other
comprehensive
profit after
tax for the
period - - 1,793 283 2,076 - 2,076
Total
comprehensive
income for
the period - 628 1,793 2,063 4,484 38 4,522
Issue of new
ordinary
shares 181 - - - 181 - 181
Issue of
shares under
employee
share schemes 35 - - 359 394 - 394
Issue and
exchange of
other equity
instruments - 1,238 - (406) 832 - 832
Other equity
instruments
coupons
paid(1) - (628) - - (628) - (628)
Vesting of
shares under
employee
share schemes - - (3) (389) (392) - (392)
Dividends paid - - - (1,201) (1,201) (38) (1,239)
Other
movements - (10) - (19) (29) (2) (31)
Balance as at
30 September
2019 4,527 10,860 6,943 43,867 66,197 1,221 67,418
Three months
ended 30.09.19
Balance as at
1 July 2019 4,494 12,123 6,403 44,556 67,576 1,221 68,797
Profit after
tax - 265 - (292) (27) 4 (23)
Other
comprehensive
profit after
tax for the
period - - 539 423 962 - 962
Total
comprehensive
income for
the period - 265 539 131 935 4 939
Issue of new
ordinary
shares 22 - - - 22 - 22
Issue of
shares under
employee
share schemes 11 - - 118 129 - 129
Issue and
exchange of
other equity
instruments - (1,266) - (406) (1,672) - (1,672)
Other equity
instruments
coupons
paid(1) - (265) - - (265) - (265)
Vesting of
shares under
employee
share schemes - - 1 (5) (4) - (4)
Dividends paid - - - (517) (517) (4) (521)
Other
movements - 3 - (10) (7) - (7)
Balance as at
30 September
2019 4,527 10,860 6,943 43,867 66,197 1,221 67,418
As at As at
30.09.19 31.12.18
Other reserves GBPm GBPm
Currency translation reserve 4,605 3,888
Fair value through other comprehensive income reserve 8 (258)
Cash flow hedging reserve 1,516 660
Own credit reserve (167) (121)
Other reserves and treasury shares 981 984
Total 6,943 5,153
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. This change does not impact EPS or return on
average tangible shareholders' equity.
Barclays PLC Parent Company
Summary balance sheet
As at As at
30.09.19 31.12.18
Assets GBPm GBPm
Investment in subsidiaries 59,689 57,374
Loans and advances to subsidiaries 30,758 29,374
Financial assets at fair value through the income statement 11,207 6,945
Derivative financial instruments 98 168
Other assets 68 115
Total assets 101,820 93,976
Liabilities
Deposits at amortised cost 537 576
Debt securities in issue 33,090 32,373
Subordinated liabilities 8,191 6,775
Financial liabilities designated at fair value 3,650 -
Other liabilities 121 72
Total liabilities 45,589 39,796
Equity
Called up share capital 4,317 4,283
Share premium account 210 28
Other equity instruments 10,865 9,633
Other reserves 394 394
Retained earnings 40,445 39,842
Total equity 56,231 54,180
Total liabilities and equity 101,820 93,976
Investment in subsidiaries
The investment in subsidiaries of GBP59,689m (December 2018:
GBP57,374m) predominantly relates to investments in Barclays Bank
PLC and Barclays Bank UK PLC, as well as holdings of their AT1
securities of GBP10,986m (December 2018: GBP9,666m). The increase
during the period was driven by capital contributions into Barclays
Bank PLC of GBP995m and additional AT1 holdings of $2,000m,
GBP1,000m and GBP1,000m, partially offset by the redemption of AT1
holdings with principal amounts totalling $1,211m, EUR1,077m and
GBP698m.
Financial assets and liabilities designated at fair value
Financial liabilities designated at fair value of GBP3,650m
(December 2018: GBPnil) comprises issuances during the period
totalling $2,750m Fixed-to-Floating Rate Senior Notes, GBP600m
Fixed Rate Senior Notes, AUD940m Fixed and Floating Rate Senior
Notes and Yen20,000m Fixed-to-Floating Rate Bonds. The proceeds
raised through these transactions were used to invest in
subsidiaries of Barclays PLC and are included within the financial
assets designated at fair value through the income statement
balance of GBP11,207m (December 2018: GBP6,945m).
Subordinated liabilities
During the period, Barclays PLC issued $1,500m of
Fixed-to-Floating Rate Subordinated Notes, which are included
within the subordinated liabilities balance of GBP8,191m (December
2018: GBP6,775m).
Other equity instruments
Other equity instruments comprises AT1 securities issued by
Barclays PLC. There have been three issuances during the period,
with principal amounts totalling $2,000m, GBP1,000m and GBP1,000m,
whilst there were redemptions in Q319 with principal amounts
totalling $1,211m, EUR1,077m and GBP698m.
Management of internal investments, loans and advances
Barclays PLC retains the discretion to manage the nature of its
internal investments in subsidiaries according to their regulatory
and business needs. Barclays PLC may invest capital and funding
into Barclays Bank PLC, Barclays Bank UK PLC and other Group
subsidiaries such as the Group Service Company and the US
Intermediate Holding Company (IHC).
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods, and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by management.
However, any non-IFRS performance measures in this document are
not a substitute for IFRS measures and readers should consider the
IFRS measures as well.
Non-IFRS performance measures glossary
Measure Definition
Loan: deposit ratio Loans and advances at amortised cost divided by deposits at
amortised cost.
Period end allocated tangible equity Allocated tangible equity is calculated as 13.0% (2018: 13.0%)
of RWAs for each business,
adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the
assumptions the Group uses for capital planning purposes. Head
Office allocated tangible equity
represents the difference between the Group's tangible
shareholders' equity and the amounts
allocated to businesses.
Average tangible shareholders' equity Calculated as the average of the previous month's period end
tangible equity and the current
month's period end tangible equity. The average tangible
shareholders' equity for the period
is the average of the monthly averages within that period.
Average allocated tangible equity Calculated as the average of the previous month's period end
allocated tangible equity and
the current month's period end allocated tangible equity. The
average allocated tangible equity
for the period is the average of the monthly averages within
that period.
Return on average tangible shareholders' equity Annualised profit after tax attributable to ordinary equity
holders of the parent, as a proportion
of average shareholders' equity excluding non-controlling
interests and other equity instruments
adjusted for the deduction of intangible assets and goodwill.
The components of the calculation
have been included on page 37.
Return on average allocated tangible equity Annualised profit after tax attributable to ordinary equity
holders of the parent, as a proportion
of average allocated tangible equity. The components of the
calculation have been included
on page 37.
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total annualised
impairment charges divided by gross
loans and advances held at amortised cost at the balance sheet
date. The components of the
calculation have been included on page 22.
Net interest margin Annualised net interest income divided by the sum of average
customer assets. The components
of the calculation have been included on page 21.
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 45.
Performance measures excluding litigation and conduct Calculated by excluding litigation and conduct charges from
performance measures. The components
of the calculations have been included on pages 38 to 45.
Returns
Return on average tangible equity is calculated as profit after
tax attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.0% (2018: 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.
(Loss)/profit attributable
to ordinary equity holders Return on average tangible
of the parent Average tangible equity equity
Nine months ended 30.09.19 GBPm GBPbn %
Barclays UK (157) 10.4 (2.0)
Corporate and Investment
Bank 1,787 25.9 9.2
Consumer, Cards and
Payments 632 5.3 15.8
Barclays International 2,419 31.2 10.3
Head Office (482) 5.0 n/m
Barclays Group 1,780 46.6 5.1
Nine months ended 30.09.18
Barclays UK 957 10.0 12.7
Corporate and Investment
Bank 1,865 26.0 9.6
Consumer, Cards and
Payments 755 4.9 20.7
Barclays International 2,620 30.9 11.3
Head Office (1,966) 3.2 n/m
Barclays Group 1,611 44.1 4.9
Performance measures excluding litigation and conduct
Nine months ended 30.09.19
Corporate and Consumer, Cards Barclays
Barclays UK Investment Bank and Payments International Head Office Barclays Group
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm
Total operating
expenses (4,497) (5,221) (1,732) (6,953) (283) (11,733)
Impact of
litigation and
conduct 1,524 30 - 30 128 1,682
Operating expenses (2,973) (5,191) (1,732) (6,923) (155) (10,051)
Total income 5,394 7,917 3,306 11,223 (286) 16,331
Cost: income ratio
excluding
litigation and
conduct 55% 66% 52% 62% n/m 62%
Profit before tax
Profit/(loss)
before tax 375 2,596 882 3,478 (593) 3,260
Impact of
litigation and
conduct 1,524 30 - 30 128 1,682
Profit/(loss)
before tax
excluding
litigation and
conduct 1,899 2,626 882 3,508 (465) 4,942
Profit
attributable to
ordinary equity
holders of the
parent
Attributable
(loss)/profit (157) 1,787 632 2,419 (482) 1,780
Post-tax impact of
litigation and
conduct 1,489 26 - 26 96 1,611
Profit/(loss)
attributable to
ordinary equity
holders of the
parent excluding
litigation and
conduct 1,332 1,813 632 2,445 (386) 3,391
Return on average
tangible
shareholders'
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average
shareholders'
equity 13.9 25.9 6.4 32.3 8.4 54.6
Average goodwill
and intangibles (3.5) - (1.1) (1.1) (3.4) (8.0)
Average tangible
shareholders'
equity 10.4 25.9 5.3 31.2 5.0 46.6
Return on average
tangible
shareholders'
equity excluding
litigation and
conduct 17.2% 9.3% 15.8% 10.4% n/m 9.7%
Basic earnings per
ordinary share
Basic weighted
average number of
shares (m) 17,192
Basic earnings per
ordinary share
excluding
litigation and
conduct 19.7p
Nine months ended 30.09.18
Corporate and Consumer, Cards Barclays
Barclays UK Investment Bank and Payments International Head Office Barclays Group
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm
Total operating
expenses (3,429) (5,303) (1,674) (6,977) (1,744) (12,150)
Impact of
litigation and
conduct 468 45 49 94 1,585 2,147
Operating expenses (2,961) (5,258) (1,625) (6,883) (159) (10,003)
Total income 5,520 7,614 3,191 10,805 (262) 16,063
Cost: income ratio
excluding
litigation and
conduct 54% 69% 51% 64% n/m 62%
Profit before tax
Profit/(loss)
before tax 1,566 2,508 1,052 3,560 (2,006) 3,120
Impact of
litigation and
conduct 468 45 49 94 1,585 2,147
Profit/(loss)
before tax
excluding
litigation and
conduct 2,034 2,553 1,101 3,654 (421) 5,267
Profit
attributable to
ordinary equity
holders of the
parent
Attributable
profit/(loss) 957 1,865 755 2,620 (1,966) 1,611
Post-tax impact of
litigation and
conduct 460 36 36 72 1,542 2,074
Profit/(loss)
attributable to
ordinary equity
holders of the
parent excluding
litigation and
conduct 1,417 1,901 791 2,692 (424) 3,685
Return on average
tangible
shareholders'
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average
shareholders'
equity 13.5 26.3 5.9 32.2 6.2 51.9
Average goodwill
and intangibles (3.5) (0.3) (1.1) (1.4) (2.9) (7.8)
Average tangible
shareholders'
equity 10.0 26.0 4.9 30.9 3.2 44.1
Return on average
tangible
shareholders'
equity excluding
litigation and
conduct 18.9% 9.7% 21.7% 11.6% n/m 11.1%
Basic earnings per
ordinary share
Basic weighted
average number of
shares (m) 17,074
Basic earnings per
ordinary share
excluding
litigation and
conduct 21.6p
Barclays Group
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (4,861) (3,554) (3,318) (4,093) (3,434) (3,391) (5,325) (4,369)
Impact of litigation and conduct 1,568 53 61 60 105 81 1,961 383
Operating expenses (3,293) (3,501) (3,257) (4,033) (3,329) (3,310) (3,364) (3,986)
Total income 5,541 5,538 5,252 5,073 5,129 5,576 5,358 5,022
Cost: income ratio excluding litigation
and conduct 59% 63% 62% 79% 65% 59% 63% 79%
Profit before tax
Profit/(loss) before tax 246 1,531 1,483 374 1,461 1,895 (236) 93
Impact of litigation and conduct 1,568 53 61 60 105 81 1,961 383
Profit before tax excluding litigation and
conduct 1,814 1,584 1,544 434 1,566 1,976 1,725 476
Profit attributable to ordinary equity
holders of the parent
Attributable (loss)/profit (292) 1,034 1,038 (14) 1,050 1,279 (718) (1,245)
Post-tax impact of litigation and conduct 1,525 40 46 62 85 59 1,930 351
Profit/(loss) attributable to ordinary
equity holders of the parent excluding
litigation and
conduct 1,233 1,074 1,084 48 1,135 1,338 1,212 (894)
Return on average tangible shareholders'
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average shareholders' equity 56.4 54.0 53.2 52.2 52.5 51.3 52.0 55.9
Average goodwill and intangibles (8.0) (7.8) (8.0) (7.9) (7.9) (7.8) (7.8) (7.8)
Average tangible shareholders' equity 48.4 46.2 45.2 44.3 44.6 43.5 44.2 48.1
Return on average tangible shareholders'
equity excluding litigation and conduct 10.2% 9.3% 9.6% 0.4% 10.2% 12.3% 11.0% (7.4%)
Basic earnings per ordinary share
Basic weighted average number of shares
(m) 17,192 17,178 17,111 17,075 17,074 17,067 17,037 16,996
Basic earnings/(loss) per ordinary share
excluding litigation and conduct 7.2p 6.3p 6.3p 0.3p 6.6p 7.8p 7.1p (5.3p)
Barclays UK
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (2,432) (1,063) (1,002) (1,175) (1,042) (971) (1,416) (1,229)
Impact of litigation and conduct 1,480 41 3 15 54 3 411 53
Operating expenses (952) (1,022) (999) (1,160) (988) (968) (1,005) (1,176)
Total income 1,846 1,771 1,777 1,863 1,896 1,836 1,788 1,870
Cost: income ratio excluding litigation and
conduct 52% 58% 56% 62% 52% 53% 56% 63%
Profit before tax
(Loss)/profit before tax (687) 477 585 390 740 656 170 452
Impact of litigation and conduct 1,480 41 3 15 54 3 411 53
Profit before tax excluding litigation and
conduct 793 518 588 405 794 659 581 505
Profit attributable to ordinary equity
holders of the parent
Attributable (loss)/profit (907) 328 422 241 510 473 (26) 258
Post-tax impact of litigation and conduct 1,457 30 2 12 48 1 411 37
Profit attributable to ordinary equity
holders of the parent excluding litigation
and conduct 550 358 424 253 558 474 385 295
Return on average allocated tangible equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 13.9 13.8 13.9 13.6 13.7 13.6 13.4 13.1
Average goodwill and intangibles (3.5) (3.5) (3.5) (3.5) (3.6) (3.5) (3.5) (3.5)
Average allocated tangible equity 10.4 10.3 10.4 10.1 10.1 10.1 9.8 9.6
Return on average allocated tangible equity
excluding litigation and conduct 21.2% 13.9% 16.4% 10.1% 22.0% 18.8% 15.7% 12.3%
Barclays International
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (2,282) (2,446) (2,225) (2,684) (2,309) (2,353) (2,315) (2,948)
Impact of litigation and conduct - 11 19 33 32 47 15 255
Operating expenses (2,282) (2,435) (2,206) (2,651) (2,277) (2,306) (2,300) (2,693)
Total income 3,750 3,903 3,570 3,221 3,290 3,707 3,808 3,319
Cost: income ratio excluding litigation
and conduct 61% 62% 62% 82% 69% 62% 60% 81%
Profit before tax
Profit before tax 1,137 1,223 1,118 215 850 1,297 1,413 6
Impact of litigation and conduct - 11 19 33 32 47 15 255
Profit before tax excluding litigation and
conduct 1,137 1,234 1,137 248 882 1,344 1,428 261
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 799 832 788 (21) 687 926 1,007 (1,134)
Post-tax impact of litigation and conduct 2 8 16 34 26 34 12 250
Profit/(loss) attributable to ordinary
equity holders of the parent excluding
litigation and
conduct 801 840 804 13 713 960 1,019 (884)
Return on average allocated tangible GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
equity
Average allocated equity 33.3 32.1 31.6 32.4 32.5 32.8 31.4 29.9
Average goodwill and intangibles (1.1) (1.0) (1.1) (1.1) (1.3) (1.4) (1.4) (1.4)
Average allocated tangible equity 32.2 31.1 30.5 31.3 31.1 31.4 30.1 28.5
Return on average allocated tangible
equity excluding litigation and conduct 10.0% 10.8% 10.6% 0.2% 9.2% 12.2% 13.6% (12.4%)
Corporate and Investment Bank
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (1,716) (1,867) (1,638) (2,046) (1,744) (1,773) (1,786) (2,384)
Impact of litigation and conduct 4 7 19 23 32 - 13 255
Operating expenses (1,712) (1,860) (1,619) (2,023) (1,712) (1,773) (1,773) (2,129)
Total income 2,617 2,795 2,505 2,151 2,235 2,580 2,799 2,252
Cost: income ratio excluding litigation
and conduct 65% 67% 65% 94% 77% 69% 63% 95%
Profit before tax
Profit/(loss) before tax 882 887 827 85 498 835 1,175 (252)
Impact of litigation and conduct 4 7 19 23 32 - 13 255
Profit before tax excluding litigation and
conduct 886 894 846 108 530 835 1,188 3
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 609 596 582 (84) 431 600 834 (1,227)
Post-tax impact of litigation and conduct 5 5 16 27 25 - 10 250
Profit/(loss) attributable to ordinary
equity holders of the parent excluding
litigation and
conduct 614 601 598 (57) 456 600 844 (977)
Return on average allocated tangible GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
equity
Average allocated equity 26.9 25.8 25.2 26.0 26.2 26.7 25.9 24.7
Average goodwill and intangibles - - (0.1) - (0.2) (0.3) (0.3) (0.4)
Average allocated tangible equity 26.9 25.8 25.1 26.0 25.9 26.4 25.6 24.3
Return on average allocated tangible
equity excluding litigation and conduct 9.2% 9.3% 9.5% (0.9%) 7.0% 9.1% 13.2% (16.1%)
Consumer, Cards and Payments
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (566) (579) (587) (638) (565) (580) (529) (564)
Impact of litigation and conduct (4) 4 - 10 - 47 2 -
Operating expenses (570) (575) (587) (628) (565) (533) (527) (564)
Total income 1,133 1,108 1,065 1,070 1,055 1,127 1,009 1,067
Cost: income ratio excluding litigation and conduct 50% 52% 55% 59% 54% 47% 52% 53%
Profit before tax
Profit before tax 255 336 291 130 352 462 238 258
Impact of litigation and conduct (4) 4 - 10 - 47 2 -
Profit before tax excluding litigation and conduct 251 340 291 140 352 509 240 258
Profit attributable to ordinary equity holders of the
parent
Attributable profit 190 236 206 63 256 326 173 93
Post-tax impact of litigation and conduct (3) 3 - 7 1 34 2 -
Profit attributable to ordinary equity holders of the
parent excluding litigation and conduct 187 239 206 70 257 360 175 93
Return on average allocated tangible equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 6.4 6.3 6.4 6.4 6.3 6.0 5.5 5.3
Average goodwill and intangibles (1.1) (1.0) (1.0) (1.1) (1.1) (1.1) (1.0) (1.1)
Average allocated tangible equity 5.3 5.3 5.4 5.3 5.2 5.0 4.5 4.2
Return on average allocated tangible equity excluding
litigation and conduct 14.0% 18.0% 15.4% 5.4% 19.9% 28.9% 15.7% 9.0%
Head Office
Q319 Q219 Q119 Q418 Q318 Q218 Q118 Q417
Profit before tax GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Loss before tax (204) (169) (220) (231) (129) (58) (1,819) (365)
Impact of litigation and conduct 88 1 39 12 19 31 1,535 75
Loss before tax excluding litigation and conduct (116) (168) (181) (219) (110) (27) (284) (290)
Profit attributable to ordinary equity holders of the
parent
Attributable loss (184) (126) (172) (234) (147) (120) (1,699) (369)
Post-tax impact of litigation and conduct 66 2 28 16 11 24 1,507 64
Attributable loss excluding litigation and conduct (118) (124) (144) (218) (136) (96) (192) (305)
Tangible net asset value
As at 30.09.19 As at 30.06.19 As at 31.12.18
GBPm GBPm GBPm
Total equity excluding non-controlling interests 66,197 67,576 62,556
Other equity instruments (10,860) (12,123) (9,632)
Goodwill and intangibles (8,068) (7,993) (7,973)
Tangible shareholders' equity attributable to ordinary shareholders of
the parent 47,269 47,460 44,951
m m m
Shares in issue 17,269 17,245 17,133
p p p
Tangible net asset value per share 274 275 262
Shareholder Information
Results timetable(1) Date
2019 Full Year Results and Annual Report 13 February 2020
% Change(3)
Exchange rates(2) 30.09.19 30.06.19 30.09.18 30.06.19 30.09.18
Period end - USD/GBP 1.23 1.27 1.30 (3%) (5%)
YTD average - USD/GBP 1.27 1.29 1.35 (2%) (6%)
3 month average - USD/GBP 1.23 1.29 1.30 (5%) (5%)
Period end - EUR/GBP 1.13 1.12 1.12 1% 1%
YTD average - EUR/GBP 1.13 1.15 1.13 (2%) -
3 month average - EUR/GBP 1.11 1.14 1.12 (3%) (1%)
Share price data
Barclays PLC (p) 150.40 149.80 171.78
Barclays PLC number of shares (m) 17,269 17,245 17,127
For further information please contact
Investor relations Media relations
Lisa Bartrip +44 (0) 20 7773 0708 Thomas Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found
on our website: home.barclays.
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company
number:
48839.
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
Tel: 0371 384 2055(4) from the UK or +44 121 415 7004 from overseas.
American Depositary Receipts (ADRs)
J.P.Morgan
jpmorgan.adr@eq-us.com
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 (outside the US and Canada)
or +1 651 453 2133 (for the hearing
impaired).
https://shareowneronline.equiniti.com/Us
erManagement/ContactUs.aspx
J.P.Morgan Chase Bank N.A., Shareholder Services, PO Box 64504, St. Paul, MN 55164-0504,
USA.
1 Note that these dates are provisional and subject to change.
2 The average rates shown above are derived from daily spot rates
during the year.
3 The change is the impact to GBP reported information.
4 Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
Notes
The terms Barclays or Group refer to Barclays PLC together with
its subsidiaries. Unless otherwise stated, the income statement
analysis compares the nine months ended 30 September 2019 to the
corresponding nine months of 2018 and balance sheet analysis as at
30 September 2019 with comparatives relating to 31 December 2018
and 30 September 2018. The abbreviations 'GBPm' and 'GBPbn'
represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations '$m' and '$bn' represent millions
and thousands of millions of US Dollars respectively; and the
abbreviations 'EURm' and 'EURbn' represent millions and thousands
of millions of Euros respectively.
There are a number of key judgement areas, for example
impairment calculations, which are based on models and which are
subject to ongoing adjustment and modifications. Reported numbers
reflect best estimates and judgements at the given point in
time.
Relevant terms that are used in this document but are not
defined under applicable regulatory guidance or International
Financial Reporting Standards (IFRS) are explained in the results
glossary that can be accessed at
home.barclays/investor-relations/reports-and-events/latest-financial-results.
The information in this announcement, which was approved by the
Board of Directors on 24 October 2019, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2018, 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 36 to 45 for further information and
calculations of non-IFRS performance measures included throughout
this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. These forward-looking statements
can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing
but also may be made verbally by members of the management of the
Group (including, without limitation, during management
presentations to financial analysts) in connection with this
document. Examples of forward-looking statements include, among
others, statements or guidance regarding or relating to the Group's
future financial position, income growth, assets, impairment
charges, provisions, business strategy, capital, leverage and other
regulatory ratios, payment of dividends (including dividend payout
ratios and expected payment strategies), projected levels of growth
in the banking and financial markets, projected costs or savings,
any commitments and targets, estimates of capital expenditures,
plans and objectives for future operations, projected employee
numbers, IFRS impacts and other statements that are not historical
fact. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
The forward-looking statements speak only as at the date on which
they are made and such statements may be affected by changes in
legislation, the development of
standards and interpretations under IFRS, including evolving
practices with regard to the interpretation and application of
accounting and regulatory standards, the outcome of current and
future legal proceedings and regulatory investigations, future
levels of conduct provisions, the policies and actions of
governmental and regulatory authorities, geopolitical risks and the
impact of competition. In addition, factors including (but not
limited to) the following may have an effect: capital, leverage and
other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions; the effects of any volatility in credit markets; market
related risks such as changes in interest rates and foreign
exchange rates; effects of changes in valuation of credit market
exposures; changes in valuation of issued securities; volatility in
capital markets; changes in credit ratings of any entity within the
Group or any securities issued by such entities; the potential for
one or more countries exiting the Eurozone; instability as a result
of the exit by the UK from the European Union and the disruption
that may subsequently result in the UK and globally; and the
success of future acquisitions, disposals and other strategic
transactions. A number of these influences and factors are beyond
the Group's control. As a result, the Group's actual financial
position, future results, dividend payments, capital, leverage or
other regulatory ratios or other financial and non-financial
metrics or performance measures may differ materially from the
statements or guidance set forth in the Group's forward-looking
statements. Additional risks and factors which may impact the
Group's future financial condition and performance are identified
in our filings with the SEC (including, without limitation, our
Annual Report on Form 20-F for the fiscal year ended 31 December
2018), which are available on the SEC's website at www.sec.gov.
Subject to our obligations under the applicable laws and
regulations of any relevant jurisdiction, (including, without
limitation, the UK and the US), in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
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