TIDMBARC
RNS Number : 9798C
Barclays PLC
23 October 2020
Barclays PLC
Q3 2020 Results Announcement
30 September 2020
Performance Highlights
Open for business during the COVID-19 pandemic, helping support
the economy
COVID-19 support -- Provided over 6 40k payment holidays to customers,
c.GBP2 5 bn of COVID-19 support to UK businesses
Supporting our customers, clients, communities, and (1) and helped businesses and institutions access
colleagues global capital markets including un derwriting
over GBP1tn of new issuance (2) in Q220 and Q320 .
Also waived c.GBP100m of interest and fees
to customers, and committed to a GBP 10 0m COVID-19
Community Aid Package
Diversified business model delivered a resilient operating
performance Q320 YTD
Despite the pandemic, Barclays delivered a Q320 YTD Group profit
before tax of GBP2.4bn (Q319 YTD: GBP3.3bn, included a Payment
Protection Insurance (PPI) provision of GBP1.4bn), a return on
tangible equity (RoTE) of 3.6% (Q319 YTD: 5.1%), earnings per share
(EPS) of 7.6p (Q319 YTD: 10.4p) and a common equity tier 1 (CET1)
ratio of 14.6% (December 2019: 13.8%)
Income Group income of GBP16.8bn up 3% versus prior year
Diversified income streams with strong Q320 YTD CIB
income offsetting challenges in Barclays
UK and CC&P
-- Barclays International income of GBP12.4bn, up 11%
versus prior year
- Corporate and Investment Bank (CIB) income of
GBP9.8bn, up 24% driven by strong Markets income
reflecting wider spreads and market share gains(3)
- Consumer, Cards and Payments (CC&P) income of
GBP2.6bn, down 21% driven by lower balances,
margin compression and reduced payments activity
-- Barclays UK income of GBP4.7bn down 12% versus prior
year reflecting lower interest rates
and unsecured lending balances, COVID-19 customer
support actions and the removal of certain
fees
--- ---------------------------------------------------------
Credit impairment charges Group credit impairment charges increased to GBP4.3bn (Q319
YTD: GBP1.4bn) reflecting the
Increased impairment provisioning driving higher impact from revised IFRS 9 scenarios and GBP0.7bn in respect
coverage ratios across portfolios of single name wholesale loan
charges
-- Impairment coverage ratio for the unsecured consumer
lending and wholesale portfolios increased
to 12.2% (FY19: 8.1%) and 1.5% (FY19: 0.8%) respectively
--- ---------------------------------------------------------
Costs(4) Group operating expenses of GBP10.0bn down 1% versus prior
year
Improved cost: income ratio
-- Cost efficiencies and cost discipline contributed to
positive cost: income jaws of 4% resulting
in an improved cost: income ratio of 59% (Q319 YTD: 62%)
--- ---------------------------------------------------------
Capital, liquidity and TNAV CET1 ratio of 14.6%, a YTD increase of 80bps
Strong capital and liquidity position
-- The increase over the first nine months of the year
reflects profits, regulatory measures
and cancellation of the full year 2019 dividend payment,
partially offset by a YTD increase
in Risk Weighted Assets (RWAs)
-- Headroom of 3.3% above Maximum Distributable Amount
(MDA) hurdle of 11.3%(5)
-- The Group liquidity pool was GBP327bn (December 2019:
GBP211bn) and the liquidity coverage
ratio (LCR) was 181% (December 2019: 160%)
-- Tangible net asset value (TNAV) per share increased to
275p (December 2019: 262p)
--- ---------------------------------------------------------
Q320 performance
----------------------------------------------------------------------------------------------------------------------
Q320 Group profit before tax of GBP1.1bn (Q319: GBP0.2bn),
resulting in a RoTE of 5.1% (Q319:
(2.4%)) and EPS of 3.5p (Q319: (1.7p))
-- Q320 Group income of GBP5.2bn, down 6% versus prior year
-- Q320 Barclays International income of GBP3.8bn, up 1%
versus prior year
- Q320 CIB income of GBP2.9bn, up 11% versus prior
year driven by a 29% increase in Markets
income, but down 12% versus prior quarter
- Q320 CC&P income of GBP0.9bn, down 23% versus prior
year but up 26% versus prior quarter
improved from the Q220 low point reflecting recovery
in US cards spend, deposit repricing,
UK merchant acquiring volumes, and the
non-recurrence of a GBP100m valuation loss in
Barclays'
preference shares in Visa Inc.
-- Q320 Barclays UK income of GBP1.6bn, down 16% versus
prior year but up 6% versus prior quarter
improved from the Q220 low point with Q320 net interest
margin (NIM) stable at 2.51% (Q220:
2.48%)
-- Q320 Group credit impairment charge of GBP0.6bn, up 32%
versus prior year but down 63% versus
prior quarter
-- Q320 Group operating expenses of GBP3.4bn(4) , up 3%
versus prior year and 2% versus prior
quarter
Q320 Barclays UK and CC&P income improved from Q220, -- CET1 ratio of 14.6%, an increase of 40bps in Q320 mainly
whilst CIB remains strong year on year due to lower RWAs
--- ---------------------------------------------------------
1 Total payment holidays granted as at 30 September 2020, business
lending and commercial paper issuance data as at 19 October 2020.
2 Across Equity and Debt Capital Markets.
3 Data source: Coalition, H120 Competitor Analysis. Market share
represents Barclays share of the total industry Revenue Pool. Analysis
is based on Barclays internal business structure and internal revenues.
4 Excluding litigation and conduct.
5 Barclays' MDA hurdle will fluctuate depending on the total RWAs
at each reporting period and any future regulatory changes.
Group outlook
Outlook remains uncertain and subject to change Income
depending on the evolution and persistence
of the COVID-19 pandemic and the outcome of Brexit
negotiations
-- Certain headwinds to income in Barclays UK are
expected to persist in 2021 including the low
interest rate environment
-- The drivers of CC&P income are showing signs of
recovery but the outlook remains uncertain
-- After a strong Q320 YTD CIB performance driven by
Markets, the franchise is well positioned
for the future
Impairment
-- Provided macroeconomic assumptions remain consistent
with expectations, we expect the H220
impairment charge to be materially below that of H120
and it is likely that the full year
2021 impairment charge will be below that of 2020
Costs
-- The Group expects FY20 costs, excluding litigation and
conduct, to be broadly flat versus
FY19. However, the Group will be evaluating actions to
reduce structural costs, which could
result in additional charges, the timing and size of
which remain to be determined
Capital
-- The Group remains in a strong capital position and is
confident of its capital generation
capacity over time, acknowledging likely headwinds to
the CET1 ratio from procyclical effects
on RWAs and reduced benefit from transitional relief
on IFRS 9 impairment
-- The Board recognises the importance of capital returns
to shareholders and will provide an
update on its policy and dividends at FY20 results
--- -------------------------------------------------------
Barclays Group results
for the nine months ended 30.09.20 30.09.19
GBPm GBPm % Change
========================================================= ============== ============== ==============
Total income 16,825 16,331 3
Credit impairment charges (4,346) (1,389)
========================================================= ============== ============== ==============
Net operating income 12,479 14,942 (16)
Operating expenses (9,954) (10,051) 1
Litigation and conduct (106) (1,682) 94
========================================================= ============== ============== ==============
Total operating expenses (10,060) (11,733) 14
Other net income - 51
========================================================= ============== ============== ==============
Profit before tax 2,419 3,260 (26)
Tax charge (441) (814) 46
========================================================= ============== ============== ==============
Profit after tax 1,978 2,446 (19)
Non-controlling interests (41) (38) (8)
Other equity instrument holders (631) (628) -
========================================================= ============== ============== ==============
Attributable profit 1,306 1,780 (27)
Performance measures
========================================================= ============== ============== ==============
Return on average tangible shareholders' equity 3.6% 5.1%
Average tangible shareholders' equity (GBPbn) 48.5 46.6
Cost: income ratio 60% 72%
Loan loss rate (bps) 164 53
Basic earnings per share 7.6p 10.4p
Dividend per share - 3.0p
Performance measures excluding litigation and conduct(1)
========================================================= ============== ============== ==============
Profit before tax 2,525 4,942 (49)
Attributable profit 1,378 3,391 (59)
Return on average tangible shareholders' equity 3.8% 9.7%
Cost: income ratio 59% 62%
Basic earnings per share 8.0p 19.7p
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet and capital management(2) GBPbn GBPbn GBPbn
========================================================= ============== ============== ==============
Loans and advances at amortised cost 344.4 339.1 345.1
Deposits at amortised cost 494.6 415.8 420.6
Tangible net asset value per share 275p 262p 274p
Common equity tier 1 ratio 14.6% 13.8% 13.4%
Common equity tier 1 capital 45.5 40.8 41.9
Risk weighted assets 310.7 295.1 313.3
Average UK leverage ratio 5.1% 4.5% 4.6%
UK leverage ratio 5.2% 5.1% 4.8%
Funding and liquidity
========================================================= ============== ============== ==============
Group liquidity pool (GBPbn) 327 211 226
Liquidity coverage ratio 181% 160% 151%
Loan: deposit ratio 70% 82% 82%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
2 Refer to pages 29 to 35 for further information on how capital,
RWAs and leverage are calculated.
Group Chief Executive Officer's Review
"In this historically challenging year for our customers and
clients we have continued to provide huge support to help people
through the social and economic impact of the COVID-19 pandemic.
This remains a priority, alongside maintaining the financial
integrity of the firm and keeping our colleagues safe.
For customers, we have provided over 640,000 payment holidays
globally(1) , and this is in addition to some GBP100m of income
foregone in the form of waived overdraft interest and banking
charges for our UK customers and business banking clients.
We have now delivered some GBP25bn through the government
support measures to UK businesses.(1) This includes 296,000 Bounce
Back Loans totalling GBP9.2bn, around GBP3bn under the CBILS
programmes(2) , and GBP12.4bn through the Covid Corporate Financing
Facility.(1) In addition, we have helped businesses and
institutions to access global capital markets, including
underwriting over GBP1tn of new issuance in Q220 and Q320.(3)
Our GBP100m Community Aid Package is making a positive
difference for thousands of people via hundreds of charities we
have supported which are mitigating the impact of COVID-19,
including donations to NHS hospital charities, Age UK and Mind.
This support is made partly possible because we have a resilient
and diversified business model which means we remain profitable as
we weather this crisis, with strong income performance in our CIB
more than offsetting headwinds in our consumer businesses.
In the first nine months Group income increased 3% to GBP16.8bn
with pre-provision profits(4) increasing 9% to GBP6.9bn.
Our impairment charges now total GBP4.3bn, with an additional
GBP608m taken in Q320, a figure down 63% on the previous quarter.
We expect the impairment charge in the second half of the year to
be materially lower than the first half.
Group profit before tax for the first nine months was GBP2.4bn,
with the Group remaining profitable in each quarter so far.
In Barclays International, CIB income increased 24% to GBP9.8bn
with Markets income up 52% mainly reflecting wider spreads and
market share gains.(5) Profit before tax in the CIB increased 25%
to GBP3.2bn.
Our CC&P business returned to profitability in the third
quarter with profit before tax of GBP165m, reducing the year to
date loss before tax to GBP449m, which included impairment charges
of GBP1.5bn.
Barclays UK also returned to profitability in the third quarter,
with profit before tax of GBP196m, as economic activity recovered
from the spring low point and impairment charges reduced. For the
first nine months Barclays UK delivered profit before tax of
GBP264m. Income headwinds in Barclays UK are expected to persist
into 2021 including the low interest rate environment.
Group costs excluding litigation and conduct are down 1% at
GBP10.0bn, resulting in positive cost to income jaws of 4%, and an
improved cost to income ratio of 59%.
Group RoTE was 3.6% including 10.5% for the CIB; and 2.2% for
Barclays UK. The Group generated EPS of 7.6 pence.
In the third quarter Group income was GBP5.2bn and Group profit
before tax increased to GBP1.1bn due to the non-recurrence of the
2019 PPI provision.
Our CET1 ratio increased 40bps in the quarter to 14.6%, more
than 300 basis points above our regulatory minimum. The Board
recognises the importance of capital returns to shareholders and
will provide an update on its policy and dividends at full year
results."
James E Staley, Group Chief Executive Officer
1 Total payment holidays granted as at 30 September 2020, business
lending and commercial paper issuance data as at 19 October 2020.
2 The Coronavirus Business Interruption Loan Scheme (CBILS) and the
Coronavirus Large Business Interruption Loan Scheme programmes
(together the CBILS programmes).
3 Across Equity and Debt Capital Markets.
4 Excluding litigation and conduct.
5 Data source: Coalition, H120 Competitor Analysis Market share represents
Barclays share of the total industry Revenue Pool. Analysis is
based on Barclays internal business structure and internal revenues.
Group Finance Director's Review
Group performance
-- Statutory RoTE was 3.6% (Q319 YTD: 5.1%) and statutory EPS was
7.6p (Q319 YTD: 10.4p)
-- Profit before tax was GBP2,419m (Q319 YTD: GBP3,260m). Excluding
litigation and conduct, profit before tax was GBP2,525m (Q319 YTD:
GBP4,942m), as positive operating leverage from a 3% increase in
income and 1% reduction in operating expenses was offset by materially
higher credit impairment charges
-- Pre-provision profits(1) increased 9% to GBP6,871m, benefitting
from the Group's diversified business model, as strong performance
in CIB more than offset income headwinds in Barclays UK and CC&P
-- Total income increased 3% to GBP16,825m. Barclays UK income decreased
12%. Barclays International income increased 11%, with CIB income
up 24% and CC&P income down 21%
-- Credit impairment charges increased to GBP4,346m (Q319 YTD: GBP1,389m).
This increase was primarily driven by the impact from revised IFRS
9 scenarios (the "COVID-19 scenarios") reflecting forecast deterioration
in macroeconomic variables (including a prolonged period of heightened
UK and US unemployment), partially offset by the estimated impact
of central bank, government and other support measures, and GBP746m
in respect of single name wholesale loan charges in CIB
-- Operating expenses decreased 1% to GBP9,954m reflecting cost efficiencies
and continued cost discipline in the current environment. The Group
delivered positive cost: income jaws of 4% which resulted in the
Group cost: income ratio, excluding litigation and conduct, reducing
to 59% (Q319 YTD: 62%)
-- The effective tax rate was 18.2% (Q319 YTD: 25.0%). This reflects
the tax benefit recognised for a re-measurement of UK deferred
tax assets as a result of the UK corporation tax rate being maintained
at 19%. The Group's effective tax rate for the full year is expected
to be around 20%, excluding litigation and conduct
-- Attributable profit was GBP1,306m (Q319 YTD: GBP1,780m). Excluding
litigation and conduct, attributable profit was GBP1,378m (Q319
YTD: GBP3,391m), generating a RoTE of 3.8% (Q319 YTD: 9.7%) and
EPS of 8.0p (Q319 YTD: 19.7p)
-- Total assets increased to GBP1,422bn (December 2019: GBP1,140bn),
primarily due to a GBP91bn increase in cash and balances at central
banks, GBP67bn increase in derivative assets and GBP50bn increase
in financial assets at fair value through the income statement.
This is due to the low interest rate environment, increased client
activity and the appreciation of period end USD against GBP
-- Loans and advances at amortised cost increased by GBP5bn to GBP344bn,
which reflects the GBP9.7bn of lending under the government backed
Bounce Back Loan Scheme (BBLS) and the CBILS which Barclays UK
has provided to support businesses through the COVID-19 pandemic
and GBP3.2bn of mortgage growth. This was partially offset by lower
card balances
-- Deposits at amortised cost increased by GBP79bn to GBP495bn, primarily
due to CIB clients increasing liquidity, lower consumer spending
levels and precautionary balance build
-- TNAV per share increased to 275p (December 2019: 262p) reflecting
7.6p of statutory EPS and positive reserve movements, including
retirement benefit re-measurements and currency translation reserves
Barclays UK
-- Profit before tax, excluding litigation and conduct, was GBP300m
(Q319 YTD: GBP1,899m). RoTE was 2.5% (Q319 YTD: 17.2%) reflecting
a challenging operating environment and materially higher credit
impairment charges
-- Total income decreased 12% to GBP4,721m. Net interest income reduced
11% to GBP3,917m with a NIM of 2.63% (Q319 YTD: 3.10%). Net fee,
commission and other income decreased 18% to GBP804m
- Personal Banking income decreased 11% to GBP2,627m, reflecting
deposit margin compression, COVID-19 customer support actions,
and lower unsecured lending balances, partially offset by deposit
balance growth and transfer of Barclays Partner Finance (BPF)
from Barclays International in Q220
- Barclaycard Consumer UK income decreased 20% to GBP1,165m as
reduced borrowing and spend levels by customers resulted in a
lower level of interest earning lending (IEL) balances, as well
as planned lower debt sales
- Business Banking income decreased 6% to GBP929m due to deposit
margin compression, lower transactional fee volumes as a result
of COVID-19 and related customer support actions, partially offset
by balance growth
-- Credit impairment charges increased to GBP1,297m (Q319 YTD: GBP522m)
reflecting forecast deterioration in macroeconomic variables in
the COVID-19 scenarios, partially offset by the estimated impact
of central bank, government and other support measures. As at 30
September 2020, 30 and 90 day arrears rates in UK cards were 1.7%
(Q319: 1.7%) and 0.8% (Q319: 0.8%) respectively
-- Operating expenses increased 5% to GBP3,136m as efficiency savings
were more than offset by higher servicing and financial assistance
costs, as well as the transfer of BPF and further investment
-- Loans and advances to customers at amortised cost increased 5%
to GBP203.9bn predominantly through GBP9.7bn of BBLS and CBILS
lending, GBP3.2bn of mortgage growth and the GBP2.2bn transfer
of BPF, partially offset by GBP4.0bn lower UK cards balances
-- Customer deposits at amortised cost increased 13% to GBP232.0bn
due to lower customer spending and precautionary balance build
-- RWAs increased to GBP76.2bn (December 2019: GBP74.9bn) driven by
the transfer of BPF and growth in mortgages, partially offset by
a reduction in consumer loans
1 Excluding litigation and conduct.
Barclays International
-- Profit before tax, excluding litigation and conduct, decreased
19% to GBP2,833m with a RoTE of 7.6% (Q319 YTD: 10.4%), reflecting
a RoTE of 10.5% (Q319 YTD: 9.3%) in CIB and (9.9)% (Q319 YTD: 15.8%)
in CC&P
-- Total income increased to GBP12,435m (Q319 YTD: GBP11,223m)
- CIB income increased 24% to GBP9,838m
- Markets income of GBP6,255m (Q319 YTD: GBP4,116m) was the
best ever Q3 YTD on a comparable basis(1) reflecting an increase
in market share in the first half of the year(2) . FICC income
increased 64% to GBP4,326m driven by strong performances in
macro and credit, mainly reflecting wider spreads. Equities
income increased 31% to GBP1,929m driven by derivatives and
cash due to higher levels of client activity and volatility
- Banking fees income increased 1% to GBP1,977m as a strong
performance in equity and debt capital markets, representing
the best ever Q3 YTD on a comparable basis for these businesses(1)
, was offset by lower fee income in advisory which was impacted
by a reduced fee pool(3)
- Within Corporate, Transaction banking income decreased 6%
to GBP1,202m as deposit balance growth was more than offset
by margin compression. Corporate lending income decreased
by 28% to GBP404m reflecting c.GBP210m of losses on fair value
lending positions and on mark-to-market and carry costs on
related hedges in Q320 YTD
- CC&P income decreased 21% to GBP2,597m as the impacts of the
COVID-19 pandemic resulted in lower balances on co-branded cards,
margin compression and reduced payments activity. Q220 included
a c.GBP100m valuation loss on Barclays' preference shares in
Visa Inc. resulting from the Q220 Supreme Court ruling concerning
charges paid by merchants
-- Credit impairment charges increased to GBP2,989m (Q319 YTD: GBP844m)
- CIB credit impairment charges increased to GBP1,507m (Q319 YTD:
GBP127m), reflecting GBP746m in respect of single name wholesale
loan charges and the impact from updates to forecast macroeconomic
variables, partially offset by the estimated impact of central
bank, government and other support measures
- CC&P credit impairment charges increased to GBP1,482m (Q319 YTD:
GBP717m) reflecting the impact from updates to forecast macroeconomic
variables, partially offset by the estimated impact of central
bank, government and other support measures. As at 30 September
2020, 30 and 90 day arrears in US cards were 2.3% (Q319: 2.6%)
and 1.1% (Q319: 1.3%) respectively
-- Operating expenses decreased 4% to GBP6,632m
- CIB operating expenses decreased 2% to GBP5,086m due to cost
efficiencies and discipline in the current environment
- CC&P operating expenses decreased 11% to GBP1,546m reflecting
cost efficiencies, lower marketing spend due to the impacts of
the COVID-19 pandemic and transfer of BPF to Barclays UK in Q220
-- RWAs increased to GBP224.7bn (December 2019: GBP209.2bn) primarily
due to increased market volatility, client activity and a reduction
in credit quality within CIB, partially offset by lower CC&P balances
1 Period covering Q114 - Q320. Pre 2014 financials were not restated
following re-segmentation in Q116.
2 Data source: Coalition, H120 Competitor Analysis. Market share
represents Barclays share of the total industry Revenue Pool. Analysis
is based on Barclays internal business structure and internal revenues.
3 Data source: Dealogic for the period covering 1 January to 30 September
2020.
Head Office
-- Loss before tax, excluding litigation and conduct, was GBP608m
(Q319 YTD: GBP465m)
-- Total income was an expense of GBP331m (Q319 YTD: GBP286m), which
included treasury items and hedge accounting, mark -to-market losses
on legacy investments and funding costs of legacy capital instruments,
partially offset by the recognition of dividends on Barclays' stake
in Absa Group Limited
-- Credit impairment charges increased to GBP60m (Q319 YTD: GBP23m)
due to impacts from the COVID-19 scenarios on the Italian home
loan portfolio, partially offset by the estimated impact of central
bank, government and other support measures
-- Operating expenses were GBP186m (Q319 YTD: GBP155m), which included
GBP73m of charitable donations from Barclays' COVID-19 Community
Aid Package
-- Other net expenses were GBP31m (Q319 YTD: GBP1m), which included
a fair value loss on an investment in an associate
-- RWAs decreased to GBP9.8bn (December 2019: GBP11.0bn) driven by
the reduction in value of Barclays' stake in Absa Group Limited
Group capital and leverage
-- The CET1 ratio increased to 14.6% (December 2019: 13.8%)
- CET1 capital increased by GBP4.7bn to GBP45.5bn reflecting resilient
capital generation through GBP6.3bn of profits after tax, excluding
credit impairment charges and a GBP1.0bn increase due to the
cancellation of the full year 2019 dividend. The CET1 capital
increase also reflects new regulatory measures implemented in
June 2020 for IFRS 9 transitional relief and prudent valuation
- RWAs increased by GBP15.6bn to GBP310.7bn primarily due to higher
market volatility and client activity within CIB as well as a
reduction in credit quality, partially offset by lower consumer
lending
-- The average UK leverage ratio increased to 5.1% (December 2019:
4.5%) primarily driven by the increase in CET1 capital. The average
leverage exposure decreased by GBP32bn to GBP1,111bn (December
2019: GBP1,143bn) largely driven by the Prudential Regulation Authority's
(PRA) early adoption of CRR II settlement netting
Group funding and liquidity
-- The liquidity pool was GBP327bn (December 2019: GBP211bn) and the
LCR remained significantly above the 100% regulatory requirement
at 181% (December 2019: 160%), equivalent to a surplus of GBP143bn
(December 2019: GBP78bn). The increase in the liquidity pool, LCR
and surplus is driven by a 19% growth in customer deposits and
actions to maintain a prudent funding and liquidity position in
the current environment
-- Wholesale funding outstanding, excluding repurchase agreements,
was GBP175.3bn (December 2019: GBP147.1bn). The Group issued GBP6.6bn
equivalent of minimum requirement for own funds and eligible liabilities
(MREL) instruments from Barclays PLC (the Parent company) during
the year to date. The Group is well advanced in its MREL issuance
plans, with a Barclays PLC MREL ratio of 32.8% as at 30 September
2020 (December 2019: 31.2%) relative to an estimated requirement
(including requisite buffers) of c.29.9% by 1 January 2022
Other matters
-- As at 30 September 2020, the Group held a provision of GBP300m
relating to PPI. Since the provision increase to GBP1.4bn in Q319,
96% of the items outstanding as at 30 September 2019 have been
resolved (including invalid items and claims from the Official
Receiver with whom we reached an agreement in Q320). Observations
from these resolved complaints continue to support the provision
level
Group outlook and targets
Outlook remains uncertain and subject to change depending on the
evolution and persistence of the COVID-19 pandemic and the outcome
of Brexit negotiations
Income
-- Certain headwinds to income in Barclays UK are expected to persist
in 2021 including the low interest rate environment
-- The drivers of CC&P income are showing signs of recovery but the
outlook remains uncertain
-- After a strong Q320 YTD CIB performance driven by Markets, the
franchise is well positioned for the future
Impairment
-- Provided macroeconomic assumptions remain consistent with expectations,
we expect the H220 impairment charge to be materially below that
of H120 and it is likely that the full year 2021 impairment charge
will be below that of 2020
Costs
-- The Group expects FY20 costs, excluding litigation and conduct,
to be broadly flat versus FY19. However, the Group will be evaluating
actions to reduce structural costs, which could result in additional
charges, the timing and size of which remain to be determined
Capital
-- The Group remains in a strong capital position and is confident
of its capital generation capacity over time, acknowledging likely
headwinds to the CET1 ratio from procyclical effects on RWAs and
reduced benefit from transitional relief on IFRS 9 impairment
-- The Board recognises the importance of capital returns to shareholders
and will provide an update on its policy and dividends at FY20
results
Targets
-- The Group continues to target a RoTE of >10%(1) and cost: income
ratio of <60% over time, but targets remain subject to change depending
on the evolution and persistence of the COVID-19 pandemic and the
outcome of Brexit negotiations
Tushar Morzaria , Group Finance Director
1 Excluding litigation and conduct.
Results by Business
Barclays UK Nine months Nine months
ended ended
30.09.20 30.09.19
Income statement information GBPm GBPm % Change
========================================== ============== ============== ==============
Net interest income 3,917 4,410 (11)
Net fee, commission and other income 804 984 (18)
========================================== ============== ============== ==============
Total income 4,721 5,394 (12)
Credit impairment charges (1,297) (522)
========================================== ============== ============== ==============
Net operating income 3,424 4,872 (30)
Operating expenses (3,136) (2,973) (5)
Litigation and conduct (36) (1,524) 98
========================================== ============== ============== ==============
Total operating expenses (3,172) (4,497) 29
Other net income 12 -
========================================== ============== ============== ==============
Profit before tax 264 375 (30)
Attributable profit/(loss) 165 (157)
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet information GBPbn GBPbn GBPbn
========================================== ============== ============== ==============
Loans and advances to customers at
amortised cost 203.9 193.7 193.2
Total assets 294.5 257.8 257.9
Customer deposits at amortised cost 232.0 205.5 203.3
Loan: deposit ratio 91% 96% 97%
Risk weighted assets 76.2 74.9 76.8
Period end allocated tangible equity 10.0 10.3 10.4
Nine months Nine months
ended ended
Performance measures 30.09.20 30.09.19
========================================== ============== ============== ==============
Return on average allocated tangible
equity 2.2% (2.0%)
Average allocated tangible equity (GBPbn) 10.2 10.4
Cost: income ratio 67% 83%
Loan loss rate (bps) 81 35
Net interest margin 2.63% 3.10%
Performance measures excluding litigation
and conduct(1) GBPm GBPm % Change
========================================== ============== ============== ==============
Profit before tax 300 1,899 (84)
Attributable profit 190 1,332 (86)
Return on average allocated tangible
equity 2.5% 17.2%
Cost: income ratio 66% 55%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays UK Nine months Nine months
ended ended
30.09.20 30.09.19
Analysis of total income GBPm GBPm % Change
============================================ ============== ============== ==============
Personal Banking 2,627 2,945 (11)
Barclaycard Consumer UK 1,165 1,459 (20)
Business Banking 929 990 (6)
============================================ ============== ============== ==============
Total income 4,721 5,394 (12)
Analysis of credit impairment charges
============================================ ============== ============== ==============
Personal Banking (312) (124)
Barclaycard Consumer UK (803) (364)
Business Banking (182) (34)
============================================ ============== ============== ==============
Total credit impairment charges (1,297) (522)
As at 30.09.20 As at 31.12.19 As at 30.09.19
Analysis of loans and advances to customers
at amortised cost GBPbn GBPbn GBPbn
============================================ ============== ============== ==============
Personal Banking 155.7 151.9 150.1
Barclaycard Consumer UK 10.7 14.7 14.9
Business Banking 37.5 27.1 28.2
============================================ ============== ============== ==============
Total loans and advances to customers
at amortised cost 203.9 193.7 193.2
Analysis of customer deposits at amortised
cost
============================================ ============== ============== ==============
Personal Banking 173.2 159.2 157.9
Barclaycard Consumer UK 0.1 - -
Business Banking 58.7 46.3 45.4
============================================ ============== ============== ==============
Total customer deposits at amortised
cost 232.0 205.5 203.3
Barclays International Nine months Nine months
ended ended
30.09.20 30.09.19
Income statement information GBPm GBPm % Change
============================================ ============== ============== ==============
Net interest income 2,668 2,976 (10)
Net trading income 5,548 3,270 70
Net fee, commission and other income 4,219 4,977 (15)
============================================ ============== ============== ==============
Total income 12,435 11,223 11
Credit impairment charges (2,989) (844)
============================================ ============== ============== ==============
Net operating income 9,446 10,379 (9)
Operating expenses (6,632) (6,923) 4
Litigation and conduct (39) (30) (30)
============================================ ============== ============== ==============
Total operating expenses (6,671) (6,953) 4
Other net income 19 52 (63)
============================================ ============== ============== ==============
Profit before tax 2,794 3,478 (20)
Attributable profit 1,779 2,419 (26)
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet information GBPbn GBPbn GBPbn
============================================ ============== ============== ==============
Loans and advances at amortised cost 128.0 132.8 138.1
Trading portfolio assets 122.3 113.3 119.4
Derivative financial instrument assets 295.9 228.9 286.0
Financial assets at fair value through
the income statement 178.2 128.4 158.0
Cash collateral and settlement balances 121.8 79.4 112.5
Other assets 261.7 178.6 195.6
============================================ ============== ============== ==============
Total assets 1,107.9 861.4 1,009.6
Deposits at amortised cost 262.4 210.0 217.6
Derivative financial instrument liabilities 293.3 228.9 283.3
Loan: deposit ratio 49% 63% 63%
Risk weighted assets 224.7 209.2 223.1
Period end allocated tangible equity 30.5 29.6 31.4
Nine months Nine months
ended ended
Performance measures 30.09.20 30.09.19
============================================ ============== ============== ==============
Return on average allocated tangible
equity 7.5% 10.3%
Average allocated tangible equity (GBPbn) 31.8 31.2
Cost: income ratio 54% 62%
Loan loss rate (bps) 300 80
Net interest margin 3.71% 4.00%
Performance measures excluding litigation
and conduct(1) GBPm GBPm % Change
============================================ ============== ============== ==============
Profit before tax 2,833 3,508 (19)
Attributable profit 1,808 2,445 (26)
Return on average allocated tangible
equity 7.6% 10.4%
Cost: income ratio 53% 62%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Corporate and Investment Bank Nine months Nine months
ended ended
30.09.20 30.09.19
Income statement information GBPm GBPm % Change
============================================ ============== ============== ==============
FICC 4,326 2,638 64
Equities 1,929 1,478 31
============================================ ============== ============== ==============
Markets 6,255 4,116 52
Advisory 329 574 (43)
Equity capital markets 369 273 35
Debt capital markets 1,279 1,108 15
============================================ ============== ============== ==============
Banking fees 1,977 1,955 1
Corporate lending 404 563 (28)
Transaction banking 1,202 1,283 (6)
============================================ ============== ============== ==============
Corporate 1,606 1,846 (13)
Total income 9,838 7,917 24
Credit impairment charges (1,507) (127)
============================================ ============== ============== ==============
Net operating income 8,331 7,790 7
Operating expenses (5,086) (5,191) 2
Litigation and conduct (6) (30) 80
============================================ ============== ============== ==============
Total operating expenses (5,092) (5,221) 2
Other net income 4 27 (85)
============================================ ============== ============== ==============
Profit before tax 3,243 2,596 25
Attributable profit 2,141 1,787 20
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet information GBPbn GBPbn GBPbn
============================================ ============== ============== ==============
Loans and advances at amortised cost 96.8 92.0 95.8
Trading portfolio assets 122.2 113.3 119.3
Derivative financial instrument assets 295.9 228.8 286.0
Financial assets at fair value through
the income statement 177.9 127.7 157.3
Cash collateral and settlement balances 121.0 78.5 111.6
Other assets 228.9 155.3 171.5
============================================ ============== ============== ==============
Total assets 1,042.7 795.6 941.5
Deposits at amortised cost 195.6 146.2 152.1
Derivative financial instrument liabilities 293.2 228.9 283.2
Risk weighted assets 193.3 171.5 184.9
Nine months Nine months
ended ended
Performance measures 30.09.20 30.09.19
============================================ ============== ============== ==============
Return on average allocated tangible
equity 10.5% 9.2%
Average allocated tangible equity (GBPbn) 27.2 25.9
Cost: income ratio 52% 66%
Performance measures excluding litigation
and conduct(1) GBPm GBPm % Change
============================================ ============== ============== ==============
Profit before tax 3,249 2,626 24
Attributable profit 2,145 1,813 18
Return on average allocated tangible
equity 10.5% 9.3%
Cost: income ratio 52% 66%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Consumer, Cards and Payments Nine months ended Nine months ended
30.09.20 30.09.19
Income statement information GBPm GBPm % Change
========================================================= ================= ================= ==============
Net interest income 1,694 2,105 (20)
Net fee, commission, trading and other income 903 1,201 (25)
========================================================= ================= ================= ==============
Total income 2,597 3,306 (21)
Credit impairment charges (1,482) (717)
========================================================= ================= ================= ==============
Net operating income 1,115 2,589 (57)
Operating expenses (1,546) (1,732) 11
Litigation and conduct (33) -
========================================================= ================= ================= ==============
Total operating expenses (1,579) (1,732) 9
Other net income 15 25 (40)
========================================================= ================= ================= ==============
(Loss)/profit before tax (449) 882
Attributable (loss)/profit (362) 632
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet information GBPbn GBPbn GBPbn
========================================================= ================= ================= ==============
Loans and advances at amortised cost 31.2 40.8 42.3
Total assets 65.2 65.8 68.1
Deposits at amortised cost 66.8 63.8 65.5
Risk weighted assets 31.4 37.7 38.2
Nine months ended Nine months ended
Performance measures 30.09.20 30.09.19
========================================================= ================= ================= ==============
Return on average allocated tangible equity (10.6%) 15.8%
Average allocated tangible equity (GBPbn) 4.6 5.3
Cost: income ratio 61% 52%
Loan loss rate (bps) 577 213
Performance measures excluding litigation and conduct(1) GBPm GBPm % Change
========================================================= ================= ================= ==============
(Loss)/profit before tax (416) 882
Attributable (loss)/profit (337) 632
Return on average allocated tangible equity (9.9%) 15.8%
Cost: income ratio 60% 52%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Head Office Nine months ended Nine months ended
30.09.20 30.09.19
Income statement information GBPm GBPm % Change
========================================================= ================= ================= ==============
Net interest income (307) (323) 5
Net fee, commission and other income (24) 37
========================================================= ================= ================= ==============
Total income (331) (286) (16)
Credit impairment charges (60) (23)
========================================================= ================= ================= ==============
Net operating income (391) (309) (27)
Operating expenses (186) (155) (20)
Litigation and conduct (31) (128) 76
========================================================= ================= ================= ==============
Total operating expenses (217) (283) 23
Other net expenses (31) (1)
========================================================= ================= ================= ==============
Loss before tax (639) (593) (8)
Attributable loss (638) (482) (32)
As at 30.09.20 As at 31.12.19 As at 30.09.19
Balance sheet information GBPbn GBPbn GBPbn
========================================================= ================= ================= ==============
Total assets 19.3 21.0 22.9
Risk weighted assets 9.8 11.0 13.4
Period end allocated tangible equity 7.1 5.6 5.5
Nine months ended Nine months ended
Performance measures 30.09.20 30.09.19
========================================================= ================= ================= ==============
Average allocated tangible equity (GBPbn) 6.5 5.0
Performance measures excluding litigation and conduct(1) GBPm GBPm % Change
========================================================= ================= ================= ==============
Loss before tax (608) (465) (31)
Attributable loss (620) (386) (61)
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Quarterly Results Summary
Barclays Group
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 2,055 1,892 2,331 2,344 2,445 2,360 2,258 2,296
Net fee, commission and other income 3,149 3,446 3,952 2,957 3,096 3,178 2,994 2,777
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 5,204 5,338 6,283 5,301 5,541 5,538 5,252 5,073
Credit impairment charges (608) (1,623) (2,115) (523) (461) (480) (448) (643)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 4,596 3,715 4,168 4,778 5,080 5,058 4,804 4,430
Operating costs (3,391) (3,310) (3,253) (3,308) (3,293) (3,501) (3,257) (3,624)
UK bank levy - - - (226) - - - (269)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (3,391) (3,310) (3,253) (3,534) (3,293) (3,501) (3,257) (3,893)
Guaranteed Minimum Pensions (GMP) charge - - - - - - - (140)
Litigation and conduct (76) (20) (10) (167) (1,568) (53) (61) (60)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (3,467) (3,330) (3,263) (3,701) (4,861) (3,554) (3,318) (4,093)
Other net income/(expenses) 18 (26) 8 20 27 27 (3) 37
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,147 359 913 1,097 246 1,531 1,483 374
Tax charge (328) (42) (71) (189) (269) (297) (248) (75)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) after tax 819 317 842 908 (23) 1,234 1,235 299
Non-controlling interests (4) (21) (16) (42) (4) (17) (17) (83)
Other equity instrument holders (204) (206) (221) (185) (265) (183) (180) (230)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Attributable profit/(loss) 611 90 605 681 (292) 1,034 1,038 (14)
Performance measures
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average tangible shareholders'
equity 5.1% 0.7% 5.1% 5.9% (2.4%) 9.0% 9.2% (0.1%)
Average tangible shareholders' equity
(GBPbn) 48.3 50.2 47.0 46.4 48.4 46.2 45.2 44.3
Cost: income ratio 67% 62% 52% 70% 88% 64% 63% 81%
Loan loss rate (bps) 69 179 223 60 52 56 54 77
Basic earnings/(loss) per share 3.5p 0.5p 3.5p 3.9p (1.7p) 6.0p 6.1p (0.1p)
Performance measures excluding litigation
and conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,223 379 923 1,264 1,814 1,584 1,544 434
Attributable profit 668 106 604 803 1,233 1,074 1,084 48
Return on average tangible shareholders'
equity 5.5% 0.8% 5.1% 6.9% 10.2% 9.3% 9.6% 0.4%
Cost: income ratio 65% 62% 52% 67% 59% 63% 62% 79%
Basic earnings per share 3.9p 0.6p 3.5p 4.7p 7.2p 6.3p 6.3p 0.3p
Balance sheet and capital management(2) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised cost 344.4 354.9 374.1 339.1 345.1 339.3 330.7 326.4
Total assets 1,421.7 1,385.1 1,444.3 1,140.2 1,290.4 1,232.8 1,193.5 1,133.3
Deposits at amortised cost 494.6 466.9 470.7 415.8 420.6 413.6 412.7 394.8
Tangible net asset value per share 275p 284p 284p 262p 274p 275p 266p 262p
Common equity tier 1 ratio 14.6% 14.2% 13.1% 13.8% 13.4% 13.4% 13.0% 13.2%
Common equity tier 1 capital 45.5 45.4 42.5 40.8 41.9 42.9 41.4 41.1
Risk weighted assets 310.7 319.0 325.6 295.1 313.3 319.1 319.7 311.9
Average UK leverage ratio 5.1% 4.7% 4.5% 4.5% 4.6% 4.7% 4.6% 4.5%
Average UK leverage exposure 1,111.1 1,148.7 1,176.2 1,142.8 1,171.2 1,134.6 1,105.5 1,110.0
UK leverage ratio 5.2% 5.2% 4.5% 5.1% 4.8% 5.1% 4.9% 5.1%
UK leverage exposure 1,095.1 1,071.1 1,178.7 1,007.7 1,099.8 1,079.4 1,065.0 998.6
Funding and liquidity
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Group liquidity (GBPbn) 327 298 237 211 226 238 232 227
Liquidity coverage ratio 181% 186% 155% 160% 151% 156% 160% 169%
Loan: deposit ratio 70% 76% 79% 82% 82% 82% 80% 83%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
2 Refer to pages 29 to 35 for further information on how capital,
RWAs and leverage are calculated.
Quarterly Results by Business
Barclays UK
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 1,280 1,225 1,412 1,478 1,503 1,438 1,469 1,513
Net fee, commission and other income 270 242 292 481 343 333 308 350
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 1,550 1,467 1,704 1,959 1,846 1,771 1,777 1,863
Credit impairment charges (233) (583) (481) (190) (101) (230) (191) (296)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 1,317 884 1,223 1,769 1,745 1,541 1,586 1,567
Operating costs (1,095) (1,018) (1,023) (1,023) (952) (1,022) (999) (1,114)
UK bank levy - - - (41) - - - (46)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (1,095) (1,018) (1,023) (1,064) (952) (1,022) (999) (1,160)
Litigation and conduct (25) (6) (5) (58) (1,480) (41) (3) (15)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (1,120) (1,024) (1,028) (1,122) (2,432) (1,063) (1,002) (1,175)
Other net (expenses)/income (1) 13 - - - (1) 1 (2)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) before tax 196 (127) 195 647 (687) 477 585 390
Attributable profit/loss 113 (123) 175 438 (907) 328 422 241
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances to customers at
amortised cost 203.9 202.0 195.7 193.7 193.2 189.1 187.5 187.6
Total assets 294.5 287.6 267.5 257.8 257.9 259.0 253.1 249.7
Customer deposits at amortised cost 232.0 225.7 207.5 205.5 203.3 200.9 197.3 197.3
Loan: deposit ratio 91% 92% 96% 96% 97% 97% 96% 96%
Risk weighted assets 76.2 77.9 77.7 74.9 76.8 76.2 76.6 75.2
Period end allocated tangible equity 10.0 10.3 10.3 10.3 10.4 10.3 10.5 10.2
Performance measures
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated tangible
equity 4.5% (4.8%) 6.9% 17.0% (34.9%) 12.7% 16.3% 9.6%
Average allocated tangible equity (GBPbn) 10.1 10.3 10.1 10.3 10.4 10.3 10.4 10.1
Cost: income ratio 72% 70% 60% 57% 132% 60% 56% 63%
Loan loss rate (bps) 43 111 96 38 20 47 40 61
Net interest margin 2.51% 2.48% 2.91% 3.03% 3.10% 3.05% 3.18% 3.20%
Performance measures excluding litigation
and conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) before tax 221 (121) 200 705 793 518 588 405
Attributable profit/(loss) 130 (118) 178 481 550 358 424 253
Return on average allocated tangible
equity 5.2% (4.6%) 7.0% 18.7% 21.2% 13.9% 16.4% 10.1%
Cost: income ratio 71% 69% 60% 54% 52% 58% 56% 62%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays UK Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 833 826 968 1,064 1,035 946 964 998
Barclaycard Consumer UK 362 367 436 533 472 497 490 522
Business Banking 355 274 300 362 339 328 323 343
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total income 1,550 1,467 1,704 1,959 1,846 1,771 1,777 1,863
Analysis of credit impairment (charges)/releases
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking (48) (130) (134) (71) (36) (36) (52) (44)
Barclaycard Consumer UK (106) (396) (301) (108) (49) (175) (140) (250)
Business Banking (79) (57) (46) (11) (16) (19) 1 (2)
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total credit impairment charges (233) (583) (481) (190) (101) (230) (191) (296)
Analysis of loans and advances to customers at amortised
cost GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 155.7 154.9 153.4 151.9 150.1 147.3 145.9 146.0
Barclaycard Consumer UK 10.7 11.5 13.6 14.7 14.9 15.1 15.0 15.3
Business Banking 37.5 35.6 28.7 27.1 28.2 26.7 26.6 26.3
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total loans and advances to customers at amortised cost 203.9 202.0 195.7 193.7 193.2 189.1 187.5 187.6
Analysis of customer deposits at amortised cost
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 173.2 169.6 161.4 159.2 157.9 156.3 154.1 154.0
Barclaycard Consumer UK 0.1 0.1 - - - - - -
Business Banking 58.7 56.0 46.1 46.3 45.4 44.6 43.2 43.3
========================================================== ===== ===== ===== ===== ===== ===== ===== =====
Total customer deposits at amortised cost 232.0 225.7 207.5 205.5 203.3 200.9 197.3 197.3
Barclays International
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 823 847 998 965 1,059 1,017 900 984
Net trading income 1,528 1,660 2,360 929 1,110 1,016 1,144 837
Net fee, commission and other income 1,430 1,503 1,286 1,558 1,581 1,870 1,526 1,400
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 3,781 4,010 4,644 3,452 3,750 3,903 3,570 3,221
Credit impairment charges (370) (1,010) (1,609) (329) (352) (247) (245) (354)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 3,411 3,000 3,035 3,123 3,398 3,656 3,325 2,867
Operating costs (2,227) (2,186) (2,219) (2,240) (2,282) (2,435) (2,206) (2,441)
UK bank levy - - - (174) - - - (210)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (2,227) (2,186) (2,219) (2,414) (2,282) (2,435) (2,206) (2,651)
Litigation and conduct (28) (11) - (86) - (11) (19) (33)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (2,255) (2,197) (2,219) (2,500) (2,282) (2,446) (2,225) (2,684)
Other net income 9 4 6 17 21 13 18 32
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,165 807 822 640 1,137 1,223 1,118 215
Attributable profit/(loss) 782 468 529 397 799 832 788 (21)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised cost 128.0 138.1 167.0 132.8 138.1 134.8 130.9 127.2
Trading portfolio assets 122.3 109.5 101.6 113.3 119.4 120.0 117.2 104.0
Derivative financial instrument assets 295.9 306.8 341.5 228.9 286.0 243.8 217.3 222.1
Financial assets at fair value through the
income statement 178.2 154.3 188.4 128.4 158.0 154.7 153.5 144.7
Cash collateral and settlement balances 121.8 130.8 153.2 79.4 112.5 101.3 97.8 74.3
Other assets 261.7 236.3 201.5 178.6 195.6 196.8 202.3 189.8
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total assets 1,107.9 1,075.8 1,153.2 861.4 1,009.6 951.4 919.0 862.1
Deposits at amortised cost 262.4 241.2 263.3 210.0 217.6 212.0 215.5 197.2
Derivative financial instrument
liabilities 293.3 307.6 338.8 228.9 283.3 243.0 213.5 219.6
Loan: deposit ratio 49% 57% 63% 63% 63% 64% 61% 65%
Risk weighted assets 224.7 231.2 237.9 209.2 223.1 214.8 216.1 210.7
Period end allocated tangible equity 30.5 31.6 33.1 29.6 31.4 30.2 30.6 29.9
Performance measures
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated tangible
equity 10.2% 5.6% 6.8% 5.1% 9.9% 10.7% 10.4% (0.3%)
Average allocated tangible equity (GBPbn) 30.6 33.5 31.2 30.9 32.2 31.1 30.5 31.3
Cost: income ratio 60% 55% 48% 72% 61% 63% 62% 83%
Loan loss rate (bps) 112 284 377 96 99 72 73 107
Net interest margin 3.79% 3.43% 3.93% 4.29% 4.10% 3.91% 3.99% 3.98%
Performance measures excluding litigation
and conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,193 818 822 726 1,137 1,234 1,137 248
Attributable profit 803 476 529 461 801 840 804 13
Return on average allocated tangible
equity 10.5% 5.7% 6.8% 6.0% 10.0% 10.8% 10.6% 0.2%
Cost: income ratio 59% 55% 48% 70% 61% 62% 62% 82%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Corporate and Investment Bank Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
FICC 1,000 1,468 1,858 726 816 920 902 570
Equities 691 674 564 409 494 517 467 375
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Markets 1,691 2,142 2,422 1,135 1,310 1,437 1,369 945
Advisory 90 84 155 202 221 221 132 242
Equity capital markets 122 185 62 56 86 104 83 53
Debt capital markets 398 463 418 322 381 373 354 330
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Banking fees 610 732 635 580 688 698 569 625
Corporate lending 232 61 111 202 195 216 152 243
Transaction banking 372 381 449 397 424 444 415 412
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Corporate 604 442 560 599 619 660 567 655
Other - - - - - - - (74)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 2,905 3,316 3,617 2,314 2,617 2,795 2,505 2,151
Credit impairment charges (187) (596) (724) (30) (31) (44) (52) (35)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 2,718 2,720 2,893 2,284 2,586 2,751 2,453 2,116
Operating costs (1,716) (1,680) (1,690) (1,691) (1,712) (1,860) (1,619) (1,835)
UK bank levy - - - (156) - - - (188)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (1,716) (1,680) (1,690) (1,847) (1,712) (1,860) (1,619) (2,023)
Litigation and conduct (3) (3) - (79) (4) (7) (19) (23)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (1,719) (1,683) (1,690) (1,926) (1,716) (1,867) (1,638) (2,046)
Other net income 1 3 - 1 12 3 12 15
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,000 1,040 1,203 359 882 887 827 85
Attributable profit/(loss) 627 694 820 193 609 596 582 (84)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised cost 96.8 104.9 128.2 92.0 95.8 92.1 90.6 86.4
Trading portfolio assets 122.2 109.3 101.5 113.3 119.3 119.9 117.2 104.0
Derivative financial instruments assets 295.9 306.7 341.4 228.8 286.0 243.7 217.3 222.1
Financial assets at fair value through the
income statement 177.9 153.7 187.8 127.7 157.3 154.1 152.9 144.2
Cash collateral and settlement balances 121.0 129.7 152.2 78.5 111.6 100.4 96.9 73.4
Other assets 228.9 205.5 171.4 155.3 171.5 168.1 163.2 160.4
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total assets 1,042.7 1,009.8 1,082.5 795.6 941.5 878.3 838.1 790.5
Deposits at amortised cost 195.6 173.9 198.4 146.2 152.1 145.4 151.4 136.3
Derivative financial instrument
liabilities 293.2 307.6 338.7 228.9 283.2 242.9 213.5 219.6
Risk weighted assets 193.3 198.3 201.7 171.5 184.9 175.9 176.6 170.9
Performance measures
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated tangible
equity 9.5% 9.6% 12.5% 3.0% 9.1% 9.2% 9.3% (1.3%)
Average allocated tangible equity (GBPbn) 26.4 29.0 26.2 25.8 26.9 25.8 25.1 26.0
Cost: income ratio 59% 51% 47% 83% 66% 67% 65% 95%
Performance measures excluding litigation
and conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,003 1,043 1,203 438 886 894 846 108
Attributable profit/(loss) 629 696 820 251 614 601 598 (57)
Return on average allocated tangible
equity 9.5% 9.6% 12.5% 3.9% 9.2% 9.3% 9.5% (0.9%)
Cost: income ratio 59% 51% 47% 80% 65% 67% 65% 94%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Analysis of Barclays International
Consumer, Cards and Payments Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Net interest income 518 513 663 717 720 720 665 664
Net fee, commission, trading and other income 358 181 364 421 413 388 400 406
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Total income 876 694 1,027 1,138 1,133 1,108 1,065 1,070
Credit impairment charges (183) (414) (885) (299) (321) (203) (193) (319)
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Net operating income 693 280 142 839 812 905 872 751
Operating costs (511) (506) (529) (549) (570) (575) (587) (606)
UK bank levy - - - (18) - - - (22)
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Operating expenses (511) (506) (529) (567) (570) (575) (587) (628)
Litigation and conduct (25) (8) - (7) 4 (4) - (10)
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Total operating expenses (536) (514) (529) (574) (566) (579) (587) (638)
Other net income 8 1 6 16 9 10 6 17
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Profit/(loss) before tax 165 (233) (381) 281 255 336 291 130
Attributable profit/(loss) 155 (226) (291) 204 190 236 206 63
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Loans and advances at amortised cost 31.2 33.2 38.8 40.8 42.3 42.7 40.3 40.8
Total assets 65.2 66.0 70.7 65.8 68.1 73.1 80.9 71.6
Deposits at amortised cost 66.8 67.3 64.9 63.8 65.5 66.6 64.1 60.9
Risk weighted assets 31.4 32.9 36.2 37.7 38.2 38.9 39.5 39.8
Performance measures
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Return on average allocated tangible equity 14.7% (20.2%) (23.5%) 15.9% 14.2% 17.8% 15.4% 4.8%
Average allocated tangible equity (GBPbn) 4.2 4.5 5.0 5.1 5.3 5.3 5.4 5.3
Cost: income ratio 61% 74% 52% 50% 50% 52% 55% 60%
Loan loss rate (bps) 211 455 846 273 283 180 182 290
Performance measures excluding litigation and
conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
====================================================== ===== ======= ======= ===== ===== ===== ===== =====
Profit/(loss) before tax 190 (225) (381) 288 251 340 291 140
Attributable profit/(loss) 174 (220) (291) 210 187 239 206 70
Return on average allocated tangible equity 16.5% (19.6%) (23.5%) 16.3% 14.0% 18.0% 15.4% 5.4%
Cost: income ratio 58% 73% 52% 50% 50% 52% 55% 59%
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Head Office
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Net interest income (48) (180) (79) (99) (117) (95) (111) (201)
Net fee, commission and other income (79) 41 14 (11) 62 (41) 16 190
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Total income (127) (139) (65) (110) (55) (136) (95) (11)
Credit impairment (charges)/releases (5) (30) (25) (4) (8) (3) (12) 7
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Net operating expenses (132) (169) (90) (114) (63) (139) (107) (4)
Operating costs (69) (106) (11) (45) (59) (44) (52) (69)
UK bank levy - - - (11) - - - (13)
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Operating expenses (69) (106) (11) (56) (59) (44) (52) (82)
GMP charge - - - - - - - (140)
Litigation and conduct (23) (3) (5) (23) (88) (1) (39) (12)
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Total operating expenses (92) (109) (16) (79) (147) (45) (91) (234)
Other net income/(expenses) 10 (43) 2 3 6 15 (22) 7
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Loss before tax (214) (321) (104) (190) (204) (169) (220) (231)
Attributable loss (284) (255) (99) (154) (184) (126) (172) (234)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Total assets 19.3 21.7 23.6 21.0 22.9 22.4 21.4 21.5
Risk weighted assets 9.8 9.9 10.0 11.0 13.4 28.1 27.0 26.0
Period end allocated tangible equity 7.1 7.4 6.0 5.6 5.5 7.0 4.5 4.9
Performance measures
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Average allocated tangible equity (GBPbn) 7.6 6.4 5.6 5.2 5.8 4.8 4.3 2.9
Performance measures excluding litigation and conduct(1) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================================= ===== ===== ===== ===== ===== ===== ===== =====
Loss before tax (191) (318) (99) (167) (116) (168) (181) (219)
Attributable loss (265) (252) (103) (139) (118) (124) (144) (218)
1 Refer to pages 40 to 49 for further information and calculations
of performance measures excluding litigation and conduct.
Performance Management
Margins and
balances
Nine months ended 30.09.20 Nine months ended 30.09.19
================================================ =================================================
Average
Net interest customer Net interest Net interest Average Net interest
income assets margin income customer assets margin
GBPm GBPm % GBPm GBPm %
================= =============== ============== =============== =============== =============== ===============
Barclays UK 3,917 199,048 2.63 4,410 189,994 3.10
Barclays
International(1) 2,686 96,799 3.71 2,985 99,862 4.00
================= =============== ============== =============== =============== =============== ===============
Total Barclays UK
and Barclays
International 6,603 295,847 2.98 7,395 289,856 3.41
Other(2) (325) (332)
================= =============== ============== =============== =============== =============== ===============
Total Barclays
Group 6,278 7,063
1 Barclays International margins include interest earning lending
balances within the investment banking business.
2 Other includes Head Office and non-lending related investment banking
businesses not included in Barclays International margins.
The Group's combined product and equity structural hedge
notional as at 30 September 2020 was GBP181bn, with an average
duration of 2.5 to 3 years. Group net interest income includes
gross structural hedge contributions of GBP1.3bn (Q319 YTD:
GBP1.4bn) and net structural hedge contributions of GBP0.9bn (Q319
YTD: GBP0.4bn). Gross structural hedge contributions represent the
absolute level of interest earned from the fixed receipts on the
basket of swaps in the structural hedge, while the net structural
hedge contributions represent the net interest earned on the
difference between the structural hedge rate and prevailing
floating rates.
Quarterly analysis for Barclays UK and Barclays
International Net interest income Average customer assets Net interest margin
Three months ended 30.09.20 GBPm GBPm %
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,280 203,089 2.51
Barclays International(1) 838 88,032 3.79
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,118 291,121 2.89
Three months ended 30.06.20
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,225 199,039 2.48
Barclays International(1) 868 101,706 3.43
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,093 300,745 2.80
Three months ended 31.03.20
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,412 195,204 2.91
Barclays International(1) 980 100,171 3.93
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,392 295,375 3.26
Three months ended 31.12.19
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,478 193,610 3.03
Barclays International(1) 1,036 95,819 4.29
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,514 289,429 3.45
Three months ended 30.09.19
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,503 192,262 3.10
Barclays International(1) 1,038 100,589 4.10
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,541 292,851 3.44
1 Barclays International margins include interest earning lending
balances within the investment banking business.
Credit Risk
Loans and advances at amortised cost by stage
The table below p resents an analysis of loans and advances at
amortised cost by gross exposure, impairment allowance, impairment
charge and coverage ratio by stage allocation and business segment
as at 30 September 2020. Also included are off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio by stage allocation as at
30 September 2020.
Impairment allowance under IFRS 9 considers both the drawn and
the undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to the drawn exposure to the
extent that the allowance does not exceed the exposure, as ECL is
not reported separately. Any excess is reported on the liability
side of the balance sheet as a provision. For wholesale portfolios,
the impairment allowance on the undrawn exposure is reported on the
liability side of the balance sheet as a provision.
Gross exposure Impairment allowance
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 30.09.20 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 149,393 25,846 2,704 177,943 329 1,563 1,150 3,042 174,901
Barclays
International 16,866 5,366 1,691 23,923 412 1,296 1,275 2,983 20,940
Head Office 4,519 668 871 6,058 8 53 352 413 5,645
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group retail 170,778 31,880 5,266 207,924 749 2,912 2,777 6,438 201,486
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 30,540 3,887 1,138 35,565 58 98 143 299 35,266
Barclays
International 74,789 31,775 2,422 108,986 129 793 1,002 1,924 107,062
Head Office 595 - 34 629 - - 33 33 596
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group
wholesale(1) 105,924 35,662 3,594 145,180 187 891 1,178 2,256 142,924
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total loans and
advances at
amortised cost 276,702 67,542 8,860 353,104 936 3,803 3,955 8,694 344,410
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) 282,551 65,407 1,500 349,458 138 751 46 935 348,523
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total(3) 559,253 132,949 10,360 702,562 1,074 4,554 4,001 9,629 692,933
As at 30.09.20 Period ended 30.09.20
================================== =================================================
Coverage ratio Loan impairment charge and loan loss rate(4)
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
=============== ======= ====== ======= ====== ============================== =================
Barclays UK 0.2 6.0 42.5 1.7 966 73
Barclays
International 2.4 24.2 75.4 12.5 1,423 795
Head Office 0.2 7.9 40.4 6.8 60 132
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total Barclays
Group retail 0.4 9.1 52.7 3.1 2,449 157
=============== ======= ======= ======= ======= ============== ============== ========= ======
Barclays UK 0.2 2.5 12.6 0.8 174 65
Barclays
International 0.2 2.5 41.4 1.8 954 117
Head Office -- 97.1 5.2 - -
=============== ======= ====== ======= ======= ============== ============== ========= ======
Total Barclays
Group
wholesale(1) 0.2 2.5 32.8 1.6 1,128 104
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total loans and
advances at
amortised cost 0.3 5.6 44.6 2.5 3,577 135
=============== ======= ======= ======= ======= ============== ============== ========= ======
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) - 1.1 3.1 0.3 627
Other financial
assets subject
to
impairment(3) 142
=============== ======= ======= ======= ======= ==============
Total(4) 0.2 3.4 38.6 1.4 4,346
1 Includes Wealth and Private Banking exposures measured on an individual
basis, and excludes Business Banking exposures that are managed
on a collective basis. The net impact is a difference in total
exposure of GBP701m of balances reported as wholesale loans on
page 25 in the Loans and advances at amortised cost by product
disclosure.
2 Excludes loan commitments and financial guarantees of GBP8.6bn
carried at fair value.
3 Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances, financial
assets at fair value through other comprehensive income and other
assets. These have a total gross exposure of GBP197.8bn and impairment
allowance of GBP161m. This comprises GBP13m ECL on GBP192.1bn stage
1 assets, GBP38m on GBP5.6bn stage 2 fair value through other comprehensive
income assets, other assets, cash collateral and settlement balances
and GBP110m on GBP112m stage 3 other assets.
4 Q320 YTD loan impairment charge represents nine months of impairment
charge, annualised to calculate the loan loss rate. The loan loss
rate for Q320 YTD is 164bps after applying the total impairment
charge of GBP4,346m.
Gross exposure Impairment allowance
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 31.12.19 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 143,097 23,198 2,446 168,741 198 1,277 974 2,449 166,292
Barclays
International 27,886 4,026 1,875 33,787 352 774 1,359 2,485 31,302
Head Office 4,803 500 826 6,129 5 36 305 346 5,783
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group retail 175,786 27,724 5,147 208,657 555 2,087 2,638 5,280 203,377
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 27,891 2,397 1,124 31,412 16 38 108 162 31,250
Barclays
International 92,615 8,113 1,615 102,343 136 248 447 831 101,512
Head Office 2,974- 37 3,011 - - 35 35 2,976
=============== ======= ====== ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group
wholesale(1) 123,480 10,510 2,776 136,766 152 286 590 1,028 135,738
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total loans and
advances at
amortised cost 299,266 38,234 7,923 345,423 707 2,373 3,228 6,308 339,115
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) 321,140 19,185 935 341,260 97 170 55 322 340,938
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total(3) 620,406 57,419 8,858 686,683 804 2,543 3,283 6,630 680,053
As at 31.12.19 Year ended 31.12.19
================================== =================================================
Coverage ratio Loan impairment charge and loan loss rate(4)
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
=============== ======= ====== ======= ====== ============================== ========= ======
Barclays UK 0.1 5.5 39.8 1.5 661 39
Barclays
International 1.3 19.2 72.5 7.4 999 296
Head Office 0.1 7.2 36.9 5.6 27 44
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total Barclays
Group retail 0.3 7.5 51.3 2.5 1,687 81
=============== ======= ======= ======= ======= ============== ============== ========= ======
Barclays UK 0.1 1.6 9.6 0.5 33 11
Barclays
International 0.1 3.1 27.7 0.8 113 11
Head Office -- 94.6 1.2 - -
=============== ======= ====== ======= ======= ============== ============== ========= ======
Total Barclays
Group
wholesale(1) 0.1 2.7 21.3 0.8 146 11
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total loans and
advances at
amortised cost 0.2 6.2 40.7 1.8 1,833 53
=============== ======= ======= ======= ======= ============== ============== ========= ======
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) - 0.9 5.9 0.1 71
Other financial
assets subject
to
impairment(3) 8
=============== ======= ======= ======= ======= ==============
Total(4) 0.1 4.4 37.1 1.0 1,912
1 Includes Wealth and Private Banking exposures measured on an individual
basis, and excludes Business Banking exposures that are managed
on a collective basis. The net impact is a difference in total
exposure of GBP6,434m of balances reported as wholesale loans on
page 25 in the Loans and advances at amortised cost by product
disclosure.
2 Excludes loan commitments and financial guarantees of GBP17.7bn
carried at fair value.
3 Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances, financial
assets at fair value through other comprehensive income and other
assets. These have a total gross exposure of GBP149.3bn and impairment
allowance of GBP24m. This comprises GBP12m ECL on GBP148.5bn stage
1 assets, GBP2m on GBP0.8bn stage 2 fair value through other comprehensive
income assets, cash collateral and settlement balances and GBP10m
on GBP10m stage 3 other assets.
4 The loan loss rate is 55bps after applying the total impairment
charge of GBP1,912m.
Loans and advances at amortised cost by product
The table below p resents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
Stage 2
===========================================================
As at 30.09.20 Stage 1 Not past due <=30 days past due >30 days past due Total Stage 3 Total
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,995 17,262 1,843 969 20,074 2,234 158,303
Credit cards, unsecured loans
and other retail lending 33,815 11,005 483 273 11,761 3,344 48,920
Wholesale loans 106,892 31,887 3,275 545 35,707 3,282 145,881
============================== ======= ============ ================== ================= ====== ======= =======
Total 276,702 60,154 5,601 1,787 67,542 8,860 353,104
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 20 62 11 12 85 392 497
Credit cards, unsecured loans
and other retail lending 754 2,461 164 173 2,798 2,423 5,975
Wholesale loans 162 821 927 920 1,140 2,222
============================== ======= ============ ================== ================ ====== ======= =======
Total 936 3,344 267 192 3,803 3,955 8,694
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,975 17,200 1,832 957 19,989 1,842 157,806
Credit cards, unsecured loans
and other retail lending 33,061 8,544 319 100 8,963 921 42,945
Wholesale loans 106,730 31,066 3,183 538 34,787 2,142 143,659
============================== ======= ============ ================== ================= ====== ======= =======
Total 275,766 56,810 5,334 1,595 63,739 4,905 344,410
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.4 0.6 1.2 0.4 17.5 0.3
Credit cards, unsecured loans
and other retail lending 2.2 22.4 34.0 63.4 23.8 72.5 12.2
Wholesale loans 0.2 2.6 2.8 1.3 2.6 34.7 1.5
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.3 5.6 4.8 10.7 5.6 44.6 2.5
As at 31.12.19
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,713 14,733 1,585 725 17,043 2,155 154,911
Credit cards, unsecured loans
and other retail lending 46,012 9,759 496 504 10,759 3,409 60,180
Wholesale loans 117,541 9,374 374 684 10,432 2,359 130,332
============================== ======= ============ ================== ================= ====== ======= =======
Total 299,266 33,866 2,455 1,913 38,234 7,923 345,423
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 22 37 14 13 64 346 432
Credit cards, unsecured loans
and other retail lending 542 1,597 159 251 2,007 2,335 4,884
Wholesale loans 143 2849 9 302 547 992
============================== ======= ============ ================= ================ ====== ======= =======
Total 707 1,918 182 273 2,373 3,228 6,308
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 135,691 14,696 1,571 712 16,979 1,809 154,479
Credit cards, unsecured loans
and other retail lending 45,470 8,162 337 253 8,752 1,074 55,296
Wholesale loans 117,398 9,090 365 675 10,130 1,812 129,340
============================== ======= ============ ================== ================= ====== ======= =======
Total 298,559 31,948 2,273 1,640 35,861 4,695 339,115
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.3 0.9 1.8 0.4 16.1 0.3
Credit cards, unsecured loans
and other retail lending 1.2 16.4 32.1 49.8 18.7 68.5 8.1
Wholesale loans 0.1 3.0 2.4 1.3 2.9 23.2 0.8
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.2 5.7 7.4 14.3 6.2 40.7 1.8
The number of customers who remain on payment holidays granted
in response to the pandemic continues to fall. Across the Group's
material portfolios as at 30 September 2020, c.GBP4.4bn of UK
mortgage, c.GBP0.1bn of UK credit card and c.GBP0.1bn of US credit
card lending remained on payment holidays.
Measurement uncertainty
Scenarios used to calculate the Group's ECL charge were reviewed
and updated in September 2020 with the Baseline scenario reflecting
the latest consensus economic forecasts. Changes in the consensus
Baseline forecasts since June 2020 include a more prolonged period
of high unemployment in the UK but faster reduction in US
unemployment levels in the short term. Economic growth in the UK
and the US begins to recover in 2021 in the downside scenarios. In
the upside scenarios, the strong rebound in UK and US GDP continues
into the end of 2020, following the bounce-back in growth in Q320
and, subsequently, the projections stay above the year on year
growth rates seen in the Baseline for a prolonged period of time
before finally reverting to the long term run rate. This reflects
the assumption of a potential vaccine being available in the first
half of 2021 and pent up savings being deployed into a more certain
consumer environment to drive significant growth. Scenario weights
have been updated to reflect the latest economics.
As a result of government and Barclays support measures put in
place to support customers and clients, significant credit
deterioration has not yet occurred. This support is causing a
timing difference between economic drivers such as GDP and
unemployment rates, and the resultant impairment defaults. This is
expected to delay the effects of distress and therefore increases
uncertainty on the timing of the stress and the realisation of
defaults. The Q320 review did not identify any new information to
substantiate a change in the level of expected credit losses on
non-defaulted positions from that recognised at H120. This has led
to the maintenance of coverage levels and staging mix whilst
recognising the associated ECL charge on defaults that have arisen
in the quarter.
The economic environment remains uncertain and future impairment
charges may be subject to further volatility (including from
changes to macroeconomic variable forecasts) depending on the
longevity of the COVID-19 pandemic and related containment
measures, as well as the longer term effectiveness of central bank,
government and other support measures.
The tables below show the key consensus macroeconomic variables
used in the Q320 Baseline scenario and the probability weights
applied to each scenario.
Baseline average macroeconomic variables used in the calculation of ECL
2020 2021 2022 Expected Worst Point
As at 30.09.20 % % % %
============================ ======== ====== ====== ========================
UK GDP(1) (10.3) 6.2 3.3 (59.8)
UK unemployment(2) 5.5 6.9 6.2 8.1
UK HPI(3) 0.4 1.5 1.4 (0.9)
UK bank rate 0.2 (0.1) (0.1) (0.1)
US GDP(1) (4.4) 3.8 3.0 (32.9)
US unemployment(4) 8.4 6.9 5.6 13.0
US HPI(5) 1.8 1.8 2.9 0.7
US federal funds rate 0.5 0.3 0.3 0.1
As at 30.06.20
============================ ======== ====== ====== ========================
UK GDP(1) (8.7) 6.1 2.9 (51.4)
UK unemployment(2) 6.6 6.5 4.4 8.0
UK HPI(3) 0.6 2.0 - (1.5)
UK bank rate 0.2 0.1 0.1 0.1
US GDP(1) (4.2) 4.4 (0.3) (30.4)
US unemployment(4) 9.3 7.6 5.5 13.4
US HPI(5) 1.1 1.8 (0.8) (1.9)
US federal funds rate 0.5 0.3 0.3 0.3
1 Average Real GDP seasonally adjusted change in year; expected worst
point is the minimum seasonally adjusted quarterly annualised rate.
2 Average UK unemployment rate 16-year+.
3 Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end; worst point is based on cumulative
drawdown in year relative to prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in average yearly US HPI = FHFA house price index, relative
to prior year end; worst point is based on cumulative drawdown
in year relative to prior year end.
Scenario probability weighting
Upside 2 Upside 1 Baseline Downside 1 Downside 2
% % % % %
=============================== ======== ======== ======== ========== ==========
As at 30.09.20
Scenario probability weighting 20.1 21.6 23.5 19.2 15.6
=============================== ======== ======== ======== ========== ==========
As at 30.06.20
Scenario probability weighting 20.3 22.4 25.4 17.5 14.4
=============================== ======== ======== ======== ========== ==========
As at 31.12.19
Scenario probability weighting 10.1 23.1 40.8 22.7 3.3
Treasury and Capital Risk
Composition of the Group liquidity pool
As at 30.09.20 As at 31.12.19
=============================================================== ==============
Liquidity pool of which CRR LCR eligible(3)
===============================================
Liquidity pool Cash Level 1 Level 2A Liquidity pool
GBPbn GBPbn GBPbn GBPbn GBPbn
===================================== ============== =========== =============== ================= ==============
Cash and deposits with central
banks(1) 248 243 - - 153
Government bonds(2)
AAA to AA- 32 - 31 1 31
A+ to A- 18 - 11 7 2
BBB+ to BBB- 2 - 2 - 3
===================================== ============== =========== =============== ================= ==============
Total government bonds 52 - 44 8 36
Other
Government guaranteed issuers, PSEs
and GSEs 10 - 8 1 9
International organisations and MDBs 8 - 8 - 7
Covered bonds 8 - 6 2 6
Other 1 - - - -
===================================== ============== =========== =============== ================= ==============
Total other 27 - 22 3 22
Total as at 30 September 2020 327 243 66 11 211
===================================== ============== =========== =============== =================
Total as at 31 December 2019 211 150 50 3
1 Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 99% (December 2019: over
98%) was placed with the Bank of England, US Federal Reserve, European
Central Bank, Bank of Japan and Swiss National Bank.
2 Of which over 77% (December 2019: over 67%) comprised UK, US, French,
German, Japanese, Swiss and Dutch securities.
3 The LCR eligible liquidity pool is adjusted for trapped liquidity
and other regulatory deductions. It also incorporates other CRR
(as amended by CRR II) qualifying assets that are not eligible
under Barclays' internal risk appetite.
The Group liquidity pool increased to GBP327bn as at 30
September 2020 (December 2019: GBP211bn) driven by a 19% growth in
customer deposit and actions to maintain a prudent funding and
liquidity position in the current environment . The liquidity pool
is held unencumbered and is not used to support payment or clearing
requirements. Such requirements are treated as part of our regular
business funding. The liquidity pool is intended to offset stress
outflows, and comprises the above cash and unencumbered assets.
The composition of the pool is subject to limits set by the
Board and the independent liquidity risk, credit risk and market
risk functions. In addition, the investment of the liquidity pool
is monitored for concentration by issuer, currency and asset type.
Given returns generated by these highly liquid assets, the risk and
reward profile is continuously managed.
C apital
The Group's Overall Capital Requirement for CET1 is 11.3%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.8% Pillar 2A requirement and a 0.0%
Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 11 March 2020,
the Financial Policy Committee set the CCyB rate for UK exposures
at 0% with immediate effect. The buffer rates set by other national
authorities for non-UK exposures are not currently material.
Overall, this results in a 0.0% CCyB for the Group.
The Group's Pillar 2A requirement as per the PRA's Individual
Capital Requirement is 5.0% of which at least 56.25% needs to be
met with CET1 capital, equating to approximately 2.8% of RWAs. The
Pillar 2A requirement is subject to at least annual review and has
been set as a nominal capital amount. This is based on a point in
time assessment and the requirement (when expressed as a proportion
of RWAs) will change depending on the total RWAs at each reporting
period.
On 27 June 2019, CRR II came into force amending CRR. As an
amending regulation, the existing provisions of CRR apply unless
they are amended by CRR II. Certain aspects of CRR II are dependent
on final technical standards to be issued by the European Banking
Authority (EBA) and adopted by the European Commission as well as
UK implementation of the rules.
On 27 June 2020, CRR was further amended to accelerate specific
CRR II measures and implement a new IFRS 9 transitional relief
calculation. Previously due to be implemented in June 2021, the
accelerated measures primarily relate to the CRR leverage
calculation to include additional settlement netting and limited
changes to the calculation of RWAs. For UK leverage calculations,
the PRA early adopted the CRR II settlement netting measure in
April 2020.
The IFRS 9 transitional arrangements have been extended by two
years and a new modified calculation has been introduced. 100%
relief will be applied to increases in stage 1 and stage 2
provisions from 1 January 2020 throughout 2020 and 2021; 75% in
2022; 50% in 2023; 25% in 2024 with no relief applied from 2025.
The phasing out of transitional relief on the "day 1" impact of
IFRS 9 as well as increases in stage 1 and stage 2 provisions
between 1 January 2018 and 31 December 2019 under the modified
calculation remain unchanged and continue to be subject to 70%
transitional relief throughout 2020; 50% for 2021; 25% for 2022 and
with no relief applied from 2023.
On 22 April 2020, the regulatory technical standards on prudent
valuation were amended to include an increase to diversification
factors applied to certain additional valuation adjustments. The
amendments will also impact own funds and will apply until 31
December 2020 inclusive.
The disclosures in the following section reflect Barclays'
interpretation of the current rules and guidance.
As at As at As at
======================================================================================
Capital ratios (1,2,3) 30.09.20 30.06.20 31.12.19
====================================================================================== ======== ======== ========
CET1 14.6% 14.2% 13.8%
Tier 1 (T1) 18.7% 17.8% 17.7%
Total regulatory capital 22.5% 21.7% 21.6%
Capital resources GBPm GBPm GBPm
====================================================================================== ======== ======== ========
Total equity excluding non-controlling interests per the balance sheet 67,816 68,304 64,429
Less: other equity instruments (recognised as AT1 capital) (12,012) (10,871) (10,871)
Adjustment to retained earnings for foreseeable dividends (65) (44) (1,096)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,241) (1,517) (1,746)
Goodwill and intangible assets (8,154) (8,154) (8,109)
Deferred tax assets that rely on future profitability excluding temporary differences (422) (444) (479)
Fair value reserves related to gains or losses on cash flow hedges (1,745) (1,914) (1,002)
Gains or losses on liabilities at fair value resulting from own credit 717 (233) 260
Defined benefit pension fund assets (1,785) (2,094) (1,594)
Direct and indirect holdings by an institution of own CET1 instruments (50) (50) (50)
Adjustment under IFRS 9 transitional arrangements 2,512 2,459 1,126
Other regulatory adjustments (62) (62) (55)
====================================================================================== ======== ======== ========
CET1 capital 45,509 45,380 40,813
AT1 capital
Capital instruments and related share premium accounts 12,012 10,871 10,871
Qualifying AT1 capital (including minority interests) issued by subsidiaries 622 691 687
Other regulatory adjustments and deductions (80) (80) (130)
====================================================================================== ======== ======== ========
AT1 capital 12,554 11,482 11,428
T1 capital 58,063 56,862 52,241
T2 capital
Capital instruments and related share premium accounts 9,451 9,028 7,650
Qualifying T2 capital (including minority interests) issued by subsidiaries 2,516 3,396 3,984
Credit risk adjustments (excess of impairment over expected losses) 36 36 16
Other regulatory adjustments and deductions (160) (160) (250)
====================================================================================== ======== ======== ========
Total regulatory capital 69,906 69,162 63,641
Total RWAs 310,727 318,987 295,131
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.9%,
with GBP43.0bn of CET1 capital and GBP309.8bn of RWAs calculated
without applying the transitional arrangements of the CRR as amended
by CRR II applicable as at the reporting date.
3 The Barclays PLC CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays Bank PLC T2 Contingent Capital
Notes, was 14.6%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR,
including the IFRS 9 transitional arrangements. The benefit of
the Financial Services Authority (FSA) October 2012 interpretation
of the transitional provisions, relating to the implementation
of CRD IV, expired in December 2017.
Movement in CET1 capital Three months Nine months
===========================================================================================
ended ended
===========================================================================================
30.09.20 30.09.20
GBPm GBPm
=========================================================================================== ============ ===========
Opening CET1 capital 45,380 40,813
Profit for the period attributable to equity holders 815 1,937
Own credit relating to derivative liabilities 16 19
Dividends paid and foreseen (225) 400
=========================================================================================== ============ ===========
Increase in retained regulatory capital generated from earnings 606 2,356
Net impact of share schemes (268) 20
Fair value through other comprehensive income reserve 173 (205)
Currency translation reserve (716) 504
Other reserves (3) (6)
=========================================================================================== ============ ===========
(Decrease) / increase in other qualifying reserves (814) 313
Pension remeasurements within reserves (323) 322
Defined benefit pension fund asset deduction 309 (191)
=========================================================================================== ============ ===========
Net impact of pensions (14) 131
Additional value adjustments (PVA) 276 505
Goodwill and intangible assets - (45)
Deferred tax assets that rely on future profitability excluding those arising from
temporary
differences 22 57
Adjustment under IFRS 9 transitional arrangements 53 1,386
Other regulatory adjustments - (7)
=========================================================================================== ============ ===========
Increase in regulatory capital due to adjustments and deductions 351 1,896
Closing CET1 capital 45,509 45,509
CET1 capital increased GBP4.7bn to GBP45.5bn (December 2019:
GBP40.8bn).
GBP1.9bn of capital generated from profits, and a GBP1.0bn
increase due to the cancellation of the full year 2019 dividend
were partially offset by GBP0.6bn of AT1 coupons paid. Other
significant movements in the period were:
-- A GBP0.5bn increase in the currency translation reserve mainly
driven by the appreciation of period end USD and EUR against GBP
-- A GBP0.5bn increase due to a reduction in PVA which includes the
temporary increase to diversification factors applied to certain
additional valuation adjustments
-- A GBP1.4bn increase in the IFRS 9 transitional relief after tax,
following new impairment charges and the implementation of new
regulatory measures which allow for 100% relief on increases in
stage 1 and stage 2 impairment throughout 2020 and 2021
RWAs by risk type and business
Operational
Credit risk Counterparty credit risk Market risk risk Total RWAs
=============== ==================================== ============== ============= ==========
Settlement
Std IRB Std IRB risk CVA Std IMA
As at 30.09.20 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays UK 7,350 56,373 369 - - 100 125 - 11,851 76,168
Corporate
and
Investment
Bank 24,800 76,464 11,628 20,645 106 2,545 13,043 22,709 21,388 193,328
Consumer,
Cards and
Payments 20,597 2,921 168 47 - 35 - 75 7,538 31,381
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays
International 45,397 79,385 11,796 20,692 106 2,580 13,043 22,784 28,926 224,709
Head Office 3,701 6,022 - - - - - - 127 9,850
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays Group 56,448 141,780 12,165 20,692 106 2,680 13,168 22,784 40,904 310,727
As at 30.06.20
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays UK 7,428 58,048 359 - - 48 122 - 11,851 77,856
Corporate
and
Investment
Bank 27,032 77,983 11,879 20,472 218 3,871 12,830 22,638 21,387 198,310
Consumer,
Cards and
Payments 21,901 3,168 157 46 - 27 - 95 7,539 32,933
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays
International 48,933 81,151 12,036 20,518 218 3,898 12,830 22,733 28,926 231,243
Head Office 3,578 6,183 - - - - - - 127 9,888
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays Group 59,939 145,382 12,395 20,518 218 3,946 12,952 22,733 40,904 318,987
As at 31.12.19
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays UK 5,189 57,455 235 - - 23 178 - 11,821 74,901
Corporate
and
Investment
Bank 25,749 62,177 12,051 16,875 276 2,470 12,854 17,626 21,475 171,553
Consumer,
Cards and
Payments 27,209 2,706 92 37 - 11 - 103 7,532 37,690
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays
International 52,958 64,883 12,143 16,912 276 2,481 12,854 17,729 29,007 209,243
Head Office 5,104 5,754 - - - - - - 129 10,987
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays Group 63,251 128,092 12,378 16,912 276 2,504 13,032 17,729 40,957 295,131
Movement analysis of RWAs
Credit risk Counterparty credit risk Market risk Operational risk Total RWAs
GBPm GBPm GBPm GBPm GBPm
============================== =========== ======================== =========== ================ ==========
Opening RWAs (as at 31.12.19) 191,343 32,070 30,761 40,957 295,131
Book size (4,793) 1,963 10,031 (53) 7,148
Acquisitions and disposals (119) - - - (119)
Book quality 9,792 1,112 - - 10,904
Model updates 1,933 (50) - - 1,883
Methodology and policy (1,879) 548 (4,840) - (6,171)
Foreign exchange movements(1) 1,951 - - - 1,951
============================== =========== ======================== =========== ================ ==========
Total RWA movements 6,885 3,573 5,191 (53) 15,596
============================== =========== ======================== =========== ================ ==========
Closing RWAs (as at 30.09.20) 198,228 35,643 35,952 40,904 310,727
1 Foreign exchange movements do not include foreign exchange for
counterparty credit risk or market risk.
Overall RWAs increased GBP15.6bn mainly driven by:
Credit risk RWAs increased GBP6.9bn mainly due to:
-- Book size decreased RWAs GBP4.8bn primarily due to a reduction
in lending activities, repayments and lower IEL balances
-- Book quality increased RWAs GBP9.8bn mainly due to a reduction
in credit quality primarily within CIB
-- Model updates increased RWAs GBP1.9bn primarily due to modelled
risk weight recalibrations
-- Methodology and policy decreased RWAs GBP1.9bn primarily due the
application of revised SME discount factors following the early
adoption of specific CRR II measures
-- FX increased RWAs GBP2.0bn due to the appreciation of period end
USD against GBP
Counterparty credit risk RWAs increased GBP3.6bn mainly due to:
-- Book size increased RWAs GBP2.0bn primarily due to an increase
in trading activities across SFTs and derivatives
-- Book quality increased RWAs GBP1.1bn primarily due to a reduction
in credit quality within CIB
Market risk RWAs increased GBP5.2bn mainly due to:
-- Book size increased RWAs GBP10.0bn primarily due to an increase
in trading activities and higher market volatility
-- Methodology and policy decreased RWAs GBP4.8bn primarily due to
the removal of a Risk Not In VaR (RNIV) and a reduction in pre
COVID-19 VaR back testing exceptions
Leverage ratio and exposures
The Group is subject to a leverage ratio requirement of 3.8% as
at 30 September 2020. This comprises the 3.25% minimum requirement,
a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and
a countercyclical leverage ratio buffer (CCLB) of 0.0%. Although
the leverage ratio is expressed in terms of T1 capital, 75% of the
minimum requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was GBP5.8bn.
The Group is required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the quarter. The
Group is also required to disclose a UK leverage ratio based on
capital and exposure on the last day of the quarter. Both
approaches exclude qualifying claims on central banks from the
leverage exposures and include the PRA's early adoption of CRR II
settlement netting.
As at As at As at
30.09.20 30.06.20 31.12.19
===============================================
Leverage ratios (1,2) GBPm GBPm GBPm
=============================================== ========= ========= =========
Average UK leverage ratio 5.1% 4.7% 4.5%
Average T1 capital(3) 56,690 54,548 51,823
Average UK leverage exposure 1,111,052 1,148,720 1,142,819
UK leverage ratio 5.2% 5.2% 5.1%
CET1 capital 45,509 45,380 40,813
AT1 capital 11,932 10,791 10,741
=============================================== ========= ========= =========
T1 capital(3) 57,441 56,171 51,554
UK leverage exposure 1,095,097 1,071,138 1,007,721
UK leverage exposure
=============================================== ========= ========= =========
Accounting assets
Derivative financial instruments 296,551 307,258 229,236
Derivative cash collateral 67,034 77,063 56,589
Securities financing transactions (SFTs) 178,736 160,015 111,307
Loans and advances and other assets 879,348 840,781 743,097
=============================================== ========= ========= =========
Total IFRS assets 1,421,669 1,385,117 1,140,229
Regulatory consolidation adjustments (1,943) (1,982) (1,170)
Derivatives adjustments
Derivatives netting (269,441) (279,151) (207,756)
Adjustments to cash collateral (58,298) (67,718) (48,464)
Net written credit protection 15,890 14,442 13,784
Potential future exposure (PFE) on derivatives 122,426 123,468 119,118
=============================================== ========= ========= =========
Total derivatives adjustments (189,423) (208,959) (123,318)
SFTs adjustments 20,274 21,226 18,339
Regulatory deductions and other adjustments (18,011) (18,297) (11,984)
Weighted off-balance sheet commitments 110,749 108,436 105,289
Qualifying central bank claims (205,451) (173,033) (119,664)
Settlement netting (42,767) (41,370) -
UK leverage exposure(2) 1,095,097 1,071,138 1,007,721
1 Fully loaded average UK leverage ratio was 4.9%, with GBP54.2bn
of T1 capital and GBP1,109bn of leverage exposure. Fully loaded
UK leverage ratio was 5.0%, with GBP54.9bn of T1 capital and GBP1,093bn
of leverage exposure. Fully loaded UK leverage ratios are calculated
without applying the transitional arrangements of the CRR as amended
by CRR II applicable as at the reporting date.
2 Capital and leverage measures are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date.
3 T1 capital is calculated in line with the PRA Handbook.
The average UK leverage ratio increased to 5.1% (December 2019:
4.5%), driven by an increase in T1 capital. The leverage exposure
decreased by GBP32bn to GBP1,111bn, primarily driven by the PRA's
early adoption of CRR II settlement netting.
The UK leverage ratio increased to 5.2% (December 2019: 5.1%),
driven by an increase in T1 capital. The UK leverage exposure
increased by GBP87bn to GBP1,095bn, primarily driven by an increase
in SFTs of GBP67bn. Loans, advances and other assets increase of
GBP136bn was broadly offset by qualifying central bank claims and
the PRA's early adoption of CRR II settlement netting.
The Group also discloses a CRR leverage 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 2020, expected to be published on 23 October
2020 and which will be available at
home.barclays/investor-relations/reports-and-events/latest-financial-results
).
1 CRR leverage ratio as amended by CRR II applicable as at the reporting
date.
MREL
CRR II requirements relating to own funds and eligible
liabilities came into effect from 27 June 2019. Eligible
liabilities have been calculated reflecting the Group's
interpretation of the current rules and guidance. Certain aspects
of CRR II are dependent on final technical standards to be issued
by the EBA and adopted by the European Commission as well as UK
implementation of the rules.
The Group is required to meet the higher of: (i) the MREL set by
the Bank of England; and (ii) the requirements in CRR II, both of
which have RWA and leverage based requirements. MREL is subject to
phased implementation and will be fully implemented by 1 January
2022, at which time the Group's indicative MREL is expected to be
two times the sum of its Pillar 1 and Pillar 2A requirements, as
set by the Bank of England. In addition, CET1 capital cannot be
counted towards both MREL and the capital buffers, meaning that the
buffers will effectively be applied above both the Pillar 1 and
Pillar 2A requirements relating to own funds and eligible
liabilities. The Bank of England will review the MREL calibration
by the end of 2020, including assessing the proposal for Pillar 2A
recapitalisation, which may drive a different 1 January 2022 MREL
than currently proposed.
As at As at As at
Own funds and eligible liabilities ratios (1) 30.09.20 30.06.20 31.12.19
===================================================================================== ========= ========= =========
CET1 capital 14.6% 14.2% 13.8%
AT1 capital instruments and related share premium accounts(2) 3.8% 3.4% 3.6%
T2 capital instruments and related share premium accounts(2) 3.0% 2.8% 2.5%
Eligible liabilities 11.3% 12.0% 11.2%
===================================================================================== ========= ========= =========
Total Barclays PLC (the Parent company) own funds and eligible liabilities 32.8% 32.4% 31.2%
Qualifying AT1 capital (including minority interests) issued by subsidiaries 0.2% 0.2% 0.2%
Qualifying T2 capital (including minority interests) issued by subsidiaries 0.8% 1.1% 1.3%
===================================================================================== ========= ========= =========
Total own funds and eligible liabilities, including eligible Barclays Bank PLC
instruments 33.8% 33.7% 32.8%
Own funds and eligible liabilities (1) GBPm GBPm GBPm
===================================================================================== ========= ========= =========
CET1 capital 45,509 45,380 40,813
AT1 capital instruments and related share premium accounts(2) 11,932 10,791 10,741
T2 capital instruments and related share premium accounts(2) 9,327 8,904 7,416
Eligible liabilities 35,209 38,308 33,025
===================================================================================== ========= ========= =========
Total Barclays PLC (the Parent company) own funds and eligible liabilities 101,977 103,383 91,995
Qualifying AT1 capital (including minority interests) issued by subsidiaries 622 691 687
Qualifying T2 capital (including minority interests) issued by subsidiaries 2,516 3,396 3,984
===================================================================================== ========= ========= =========
Total own funds and eligible liabilities, including eligible Barclays Bank PLC
instruments 105,115 107,470 96,666
Total RWAs(1) 310,727 318,987 295,131
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 Includes other AT1 capital regulatory adjustments and deductions
of GBP80m (December 2019: GBP130m), and other T2 credit risk adjustments
and deductions of GBP124m (December 2019: GBP234m).
Condensed Consolidated Financial Statements
Condensed consolidated income statement
Nine months ended Nine months ended
30.09.20 30.09.19
GBPm GBPm
==================================================== ================= =================
Total income 16,825 16,331
Credit impairment charges (4,346) (1,389)
===================================================== ================= =================
Net operating income 12,479 14,942
Operating expenses excluding litigation and conduct (9,954) (10,051)
Litigation and conduct (106) (1,682)
===================================================== ================= =================
Operating expenses (10,060) (11,733)
Other net income - 51
===================================================== ================= =================
Profit before tax 2,419 3,260
Tax charge (441) (814)
===================================================== ================= =================
Profit after tax 1,978 2,446
Attributable to:
==================================================== ----------------- -----------------
Equity holders of the parent 1,306 1,780
Other equity instrument holders 631 628
===================================================== ================= =================
Total equity holders of the parent 1,937 2,408
Non-controlling interests 41 38
===================================================== ================= =================
Profit after tax 1,978 2,446
Earnings per share p p
==================================================== ----------------- -----------------
Basic earnings per ordinary share 7.6 10.4
Condensed consolidated balance sheet
As at As at
30.09.20 31.12.19
Assets GBPm GBPm
========================================================================= ========= =========
Cash and balances at central banks 240,973 150,258
Cash collateral and settlement balances 125,413 83,256
Loans and advances at amortised cost 344,410 339,115
Reverse repurchase agreements and other similar secured lending 15,436 3,379
Trading portfolio assets 122,741 114,195
Financial assets at fair value through the income statement 182,760 133,086
Derivative financial instruments 296,551 229,236
Financial assets at fair value through other comprehensive income 71,289 65,750
Investments in associates and joint ventures 741 721
Goodwill and intangible assets 8,163 8,119
Current tax assets 630 412
Deferred tax assets 2,929 3,290
Other assets 9,633 9,412
========================================================================== ========= =========
Total assets 1,421,669 1,140,229
Liabilities
========================================================================= ========= =========
Deposits at amortised cost 494,593 415,787
Cash collateral and settlement balances 112,532 67,341
Repurchase agreements and other similar secured borrowing 20,972 14,517
Debt securities in issue 98,688 76,369
Subordinated liabilities 20,259 18,156
Trading portfolio liabilities 51,075 36,916
Financial liabilities designated at fair value 249,322 204,326
Derivative financial instruments 293,446 229,204
Current tax liabilities 454 313
Deferred tax liabilities - 23
Other liabilities 11,271 11,617
========================================================================== ========= =========
Total liabilities 1,352,612 1,074,569
Equity
========================================================================= ========= =========
Called up share capital and share premium 4,630 4,594
Other reserves 5,349 4,760
Retained earnings 45,825 44,204
========================================================================== ========= =========
Shareholders' equity attributable to ordinary shareholders of the parent 55,804 53,558
Other equity instruments 12,012 10,871
========================================================================== ========= =========
Total equity excluding non-controlling interests 67,816 64,429
Non-controlling interests 1,241 1,231
========================================================================== ========= =========
Total equity 69,057 65,660
Total liabilities and equity 1,421,669 1,140,229
Condensed consolidated statement of changes in equity
Called up
share capital
and share Other equity Retained Non-controlling
premium instruments Other reserves earnings Total interests Total equity
Nine months
ended 30.09.20 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at 1
January 2020 4,594 10,871 4,760 44,204 64,429 1,231 65,660
Profit after
tax - 631 - 1,306 1,937 41 1,978
Retirement
benefit
remeasurements - - - 322 322 - 322
Other - - 604 (7) 597 - 597
=============== ============= ============== ============== ============== ======= =============== ============
Total
comprehensive
income for the
period - 631 604 1,621 2,856 41 2,897
Equity settled
share schemes 36 - - 338 374 - 374
Issue and
exchange of
other equity
instruments - 1,142 - - 1,142 - 1,142
Other equity
instruments
coupons paid - (631) - - (631) - (631)
Vesting of
shares under
employee share
schemes - - (15) (339) (354) - (354)
Dividends paid - - - - - (40) (40)
Other movements - (1) - 1 - 9 9
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at
30 September
2020 4,630 12,012 5,349 45,825 67,816 1,241 69,057
Three months
ended 30.09.20
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at 1
July 2020 4,620 10,871 6,996 45,817 68,304 1,237 69,541
Profit after
tax - 204 - 611 815 4 819
Retirement
benefit
remeasurements - - - (323) (323) - (323)
Other - - (1,646) (1) (1,647) - (1,647)
=============== ============= ============== ============== ============== ======= =============== ============
Total
comprehensive
income for the
period - 204 (1,646) 287 (1,155) 4 (1,151)
Equity settled
share schemes 10 - - (265) (255) - (255)
Issue and
exchange of
other equity
instruments - 1,142 - - 1,142 - 1,142
Other equity
instruments
coupons paid - (204) - - (204) - (204)
Vesting of
shares under
employee share
schemes - - (1) (12) (13) - (13)
Dividends paid - - - - - (3) (3)
Other movements - (1) - (2) (3) 3 -
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at
30 September
2020 4,630 12,012 5,349 45,825 67,816 1,241 69,057
As at As at
30.09.20 31.12.19
Other reserves GBPm GBPm
====================================================== ======== ========
Currency translation reserve 3,848 3,344
Fair value through other comprehensive income reserve (392) (187)
Cash flow hedging reserve 1,745 1,002
Own credit reserve (811) (373)
Other reserves and treasury shares 959 974
====================================================== ======== ========
Total 5,349 4,760
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods, and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by management.
However, any non-IFRS performance measures in this document are
not a substitute for IFRS measures and readers should consider the
IFRS measures as well.
Non-IFRS performance measures glossary
Measure Definition
====================================================== ==============================================================
Loan: deposit ratio Loans and advances at amortised cost divided by deposits at
amortised cost.
Period end allocated tangible equity Allocated tangible equity is calculated as 13.0% (2019:
13.0%) of RWAs for each business,
adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the
assumptions the Group uses for capital planning purposes.
Head Office allocated tangible equity
represents the difference between the Group's tangible
shareholders' equity and the amounts
allocated to businesses.
Average tangible shareholders' equity Calculated as the average of the previous month's period end
tangible equity and the current
month's period end tangible equity. The average tangible
shareholders' equity for the period
is the average of the monthly averages within that period.
Average allocated tangible equity Calculated as the average of the previous month's period end
allocated tangible equity and
the current month's period end allocated tangible equity. The
average allocated tangible equity
for the period is the average of the monthly averages within
that period.
Return on average tangible shareholders' equity Annualised profit after tax attributable to ordinary equity
holders of the parent, as a proportion
of average shareholders' equity excluding non-controlling
interests and other equity instruments
adjusted for the deduction of intangible assets and goodwill.
The components of the calculation
have been included on page 41.
Return on average allocated tangible equity Annualised profit after tax attributable to ordinary equity
holders of the parent, as a proportion
of average allocated tangible equity. The components of the
calculation have been included
on page 41 .
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total annualised
impairment charges divided by gross
loans and advances held at amortised cost at the balance
sheet date. The components of the
calculation have been included on page 23.
Net interest margin Annualised net interest income divided by the sum of average
customer assets. The components
of the calculation have been included on page 22.
Tangible net asset value per share Calculated by dividing shareholders' equity, excluding
non-controlling interests and other
equity instruments, less goodwill and intangible assets, by
the number of issued ordinary
shares. The components of the calculation have been included
on page 49.
Performance measures excluding litigation and conduct Calculated by excluding litigation and conduct charges from
performance measures. The components
of the calculations have been included on pages 42 to 49.
Pre-provision profits Calculated by excluding credit impairment charges from profit
before tax. The components of
the calculation have been included on pages 42 to 44.
Pre-provision profits excluding litigation and conduct Calculated by excluding credit impairment charges, and
litigation and conduct charges from
profit before tax. The components of the calculation have
been included on pages 42 to 44.
Returns
Return on average tangible equity is calculated as profit after
tax attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.0% (2019: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office average allocated tangible
equity represents the difference between the Group's average
tangible shareholders' equity and the amounts allocated to
businesses.
Profit/(loss) attributable
to ordinary equity holders Return on average tangible
of the parent Average tangible equity equity
Nine months ended 30.09.20 GBPm GBPbn %
============================= ============================ ======================= ============================
Barclays UK 165 10.2 2.2
Corporate and Investment
Bank 2,141 27.2 10.5
Consumer, Cards and
Payments (362) 4.6 (10.6)
============================= ============================ ======================= ============================
Barclays International 1,779 31.8 7.5
Head Office (638) 6.5 n/m
============================= ============================ ======================= ============================
Barclays Group 1,306 48.5 3.6
Nine months ended 30.09.19
============================= ============================ ======================= ============================
Barclays UK (157) 10.4 (2.0)
Corporate and Investment
Bank 1,787 25.9 9.2
Consumer, Cards and
Payments 632 5.3 15.8
============================= ============================ ======================= ============================
Barclays International 2,419 31.2 10.3
Head Office (482) 5.0 n/m
============================= ============================ ======================= ============================
Barclays Group 1,780 46.6 5.1
Performance measures excluding litigation and conduct
Nine months ended 30.09.20
==================================================================================================
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 (3,172) (5,092) (1,579) (6,671) (217) (10,060)
Impact of
litigation and
conduct 36 6 33 39 31 106
================== =========== ================= ================= ================== =========== ==============
Operating expenses (3,136) (5,086) (1,546) (6,632) (186) (9,954)
Total income 4,721 9,838 2,597 12,435 (331) 16,825
Cost: income ratio
excluding
litigation and
conduct 66% 52% 60% 53% n/m 59%
Profit before tax
================== =========== ================= ================= ================== =========== ==============
Profit/(loss)
before tax 264 3,243 (449) 2,794 (639) 2,419
Impact of
litigation and
conduct 36 6 33 39 31 106
================== =========== ================= ================= ================== =========== ==============
Profit/(loss)
before tax
excluding
litigation and
conduct 300 3,249 (416) 2,833 (608) 2,525
Profit
attributable to
ordinary equity
holders of the
parent
================== =========== ================= ================= ================== =========== ==============
Attributable
profit/(loss) 165 2,141 (362) 1,779 (638) 1,306
Post-tax impact of
litigation and
conduct 25 4 25 29 18 72
================== =========== ================= ================= ================== =========== ==============
Profit/(loss)
attributable to
ordinary equity
holders of the
parent excluding
litigation and
conduct 190 2,145 (337) 1,808 (620) 1,378
Return on average
tangible
shareholders'
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
================== =========== ================= ================= ================== =========== ==============
Average
shareholders'
equity 13.7 27.2 5.2 32.4 10.5 56.6
Average goodwill
and intangibles (3.5) - (0.6) (0.6) (4.0) (8.1)
================== =========== ================= ================= ================== =========== ==============
Average tangible
shareholders'
equity 10.2 27.2 4.6 31.8 6.5 48.5
Return on average
tangible
shareholders'
equity excluding
litigation and
conduct 2.5% 10.5% (9.9%) 7.6% n/m 3.8%
Basic earnings per
ordinary share
================== =========== ================= ================= ================== =========== ==============
Basic weighted
average number of
shares (m) 17,298
Basic earnings per
ordinary share
excluding
litigation and
conduct 8.0p
Pre-provision profits
Profit before tax
excluding credit
impairment charges
and litigation and
conduct GBPm
================== =========== ================= ================= ================== =========== ==============
Profit before tax 2,419
Impact of credit
impairment
charges 4,346
================== =========== ================= ================= ================== =========== ==============
Profit before tax
excluding credit
impairment
charges 6,765
Impact of
litigation and
conduct 106
================== =========== ================= ================= ================== =========== ==============
Profit before tax
excluding credit
impairment
charges and
litigation and
conduct 6,871
Nine months ended 30.09.19
==================================================================================================
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
Pre-provision profits
Profit before tax
excluding credit
impairment charges
and litigation and
conduct GBPm
================== =========== ================= ================= ================== =========== ==============
Profit before tax 3,260
Impact of credit
impairment
charges 1,389
================== =========== ================= ================= ================== =========== ==============
Profit before tax
excluding credit
impairment
charges 4,649
Impact of
litigation and
conduct 1,682
================== =========== ================= ================= ================== =========== ==============
Profit before tax
excluding credit
impairment
charges and
litigation and
conduct 6,331
Barclays Group
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (3,467) (3,330) (3,263) (3,701) (4,861) (3,554) (3,318) (4,093)
Impact of litigation and conduct 76 20 10 167 1,568 53 61 60
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (3,391) (3,310) (3,253) (3,534) (3,293) (3,501) (3,257) (4,033)
Total income 5,204 5,338 6,283 5,301 5,541 5,538 5,252 5,073
Cost: income ratio excluding litigation
and conduct 65% 62% 52% 67% 59% 63% 62% 79%
Profit before tax
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,147 359 913 1,097 246 1,531 1,483 374
Impact of litigation and conduct 76 20 10 167 1,568 53 61 60
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax excluding litigation and
conduct 1,223 379 923 1,264 1,814 1,584 1,544 434
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 611 90 605 681 (292) 1,034 1,038 (14)
Post-tax impact of litigation and conduct 57 16 (1) 122 1,525 40 46 62
Profit attributable to ordinary equity
holders of the parent excluding
litigation and conduct 668 106 604 803 1,233 1,074 1,084 48
Return on average tangible shareholders'
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average shareholders' equity 56.4 58.4 55.2 54.5 56.4 54.0 53.2 52.2
Average goodwill and intangibles (8.1) (8.2) (8.2) (8.1) (8.0) (7.8) (8.0) (7.9)
========================================== ======= ======= ======= ======= ======= ======= ======= =======
Average tangible shareholders' equity 48.3 50.2 47.0 46.4 48.4 46.2 45.2 44.3
Return on average tangible shareholders'
equity excluding litigation and conduct 5.5% 0.8% 5.1% 6.9% 10.2% 9.3% 9.6% 0.4%
Basic earnings per ordinary share
======= ======= ======= ======= ======= ======= ======= =======
Basic weighted average number of shares
(m) 17,298 17,294 17,278 17,200 17,192 17,178 17,111 17,075
Basic earnings per ordinary share
excluding litigation and conduct 3.9p 0.6p 3.5p 4.7p 7.2p 6.3p 6.3p 0.3p
Pre-provision profits
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Profit before tax excluding credit
impairment charges and litigation and
conduct GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Profit before tax 1,147 359 913 1,097 246 1,531 1,483 374
Impact of credit impairment charges 608 1,623 2,115 523 461 480 448 643
Profit before tax excluding credit
impairment charges 1,755 1,982 3,028 1,620 707 2,011 1,931 1,017
Impact of litigation and conduct 76 20 10 167 1,568 53 61 60
Profit before tax excluding credit
impairment charges and litigation and
conduct 1,831 2,002 3,038 1,787 2,275 2,064 1,992 1,077
Barclays UK
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (1,120) (1,024) (1,028) (1,122) (2,432) (1,063) (1,002) (1,175)
Impact of litigation and conduct 25 6 5 58 1,480 41 3 15
Operating expenses (1,095) (1,018) (1,023) (1,064) (952) (1,022) (999) (1,160)
Total income 1,550 1,467 1,704 1,959 1,846 1,771 1,777 1,863
Cost: income ratio excluding litigation
and conduct 71% 69% 60% 54% 52% 58% 56% 62%
Profit before tax
Profit/(loss) before tax 196 (127) 195 647 (687) 477 585 390
Impact of litigation and conduct 25 6 5 58 1,480 41 3 15
Profit/(loss) before tax excluding
litigation and conduct 221 (121) 200 705 793 518 588 405
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 113 (123) 175 438 (907) 328 422 241
Post-tax impact of litigation and conduct 17 5 3 43 1,457 30 2 12
Profit/(loss) attributable to ordinary
equity holders of the parent excluding
litigation and
conduct 130 (118) 178 481 550 358 424 253
Return on average allocated tangible
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 13.7 13.9 13.7 13.8 13.9 13.8 13.9 13.6
Average goodwill and intangibles (3.6) (3.6) (3.6) (3.5) (3.5) (3.5) (3.5) (3.5)
Average allocated tangible equity 10.1 10.3 10.1 10.3 10.4 10.3 10.4 10.1
Return on average allocated tangible
equity excluding litigation and conduct 5.2% (4.6%) 7.0% 18.7% 21.2% 13.9% 16.4% 10.1%
Barclays International
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (2,255) (2,197) (2,219) (2,500) (2,282) (2,446) (2,225) (2,684)
Impact of litigation and conduct 28 11 - 86 - 11 19 33
Operating expenses (2,227) (2,186) (2,219) (2,414) (2,282) (2,435) (2,206) (2,651)
Total income 3,781 4,010 4,644 3,452 3,750 3,903 3,570 3,221
Cost: income ratio excluding litigation
and conduct 59% 55% 48% 70% 61% 62% 62% 82%
Profit before tax
Profit before tax 1,165 807 822 640 1,137 1,223 1,118 215
Impact of litigation and conduct 28 11 - 86 - 11 19 33
Profit before tax excluding litigation and
conduct 1,193 818 822 726 1,137 1,234 1,137 248
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 782 468 529 397 799 832 788 (21)
Post-tax impact of litigation and conduct 21 8 - 64 2 8 16 34
Profit attributable to ordinary equity
holders of the parent excluding
litigation and conduct 803 476 529 461 801 840 804 13
Return on average allocated tangible
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 31.2 34.2 31.9 31.9 33.3 32.1 31.6 32.4
Average goodwill and intangibles (0.6) (0.7) (0.7) (1.0) (1.1) (1.0) (1.1) (1.1)
Average allocated tangible equity 30.6 33.5 31.2 30.9 32.2 31.1 30.5 31.3
Return on average allocated tangible
equity excluding litigation and conduct 10.5% 5.7% 6.8% 6.0% 10.0% 10.8% 10.6% 0.2%
Corporate and Investment Bank
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (1,719) (1,683) (1,690) (1,926) (1,716) (1,867) (1,638) (2,046)
Impact of litigation and conduct 3 3 - 79 4 7 19 23
Operating expenses (1,716) (1,680) (1,690) (1,847) (1,712) (1,860) (1,619) (2,023)
Total income 2,905 3,316 3,617 2,314 2,617 2,795 2,505 2,151
Cost: income ratio excluding litigation
and conduct 59% 51% 47% 80% 65% 67% 65% 94%
Profit before tax
Profit before tax 1,000 1,040 1,203 359 882 887 827 85
Impact of litigation and conduct 3 3 - 79 4 7 19 23
=======
Profit before tax excluding litigation and
conduct 1,003 1,043 1,203 438 886 894 846 108
Profit attributable to ordinary equity
holders of the parent
Attributable profit/(loss) 627 694 820 193 609 596 582 (84)
Post-tax impact of litigation and conduct 2 2 - 58 5 5 16 27
=======
Profit/(loss) attributable to ordinary
equity holders of the parent excluding
litigation and
conduct 629 696 820 251 614 601 598 (57)
Return on average allocated tangible
equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
=======
Average allocated equity 26.4 29.1 26.2 25.9 26.9 25.8 25.2 26.0
Average goodwill and intangibles - (0.1) - (0.1) - - (0.1) -
=======
Average allocated tangible equity 26.4 29.0 26.2 25.8 26.9 25.8 25.1 26.0
Return on average allocated tangible
equity excluding litigation and conduct 9.5% 9.6% 12.5% 3.9% 9.2% 9.3% 9.5% (0.9%)
Consumer, Cards and Payments
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Cost: income ratio GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total operating expenses (536) (514) (529) (574) (566) (579) (587) (638)
Impact of litigation and conduct 25 8 - 7 (4) 4 - 10
Operating expenses (511) (506) (529) (567) (570) (575) (587) (628)
Total income 876 694 1,027 1,138 1,133 1,108 1,065 1,070
Cost: income ratio excluding litigation and conduct 58% 73% 52% 50% 50% 52% 55% 59%
Profit before tax
Profit/(loss) before tax 165 (233) (381) 281 255 336 291 130
Impact of litigation and conduct 25 8 - 7 (4) 4 - 10
=====
Profit/(loss) before tax excluding litigation and
conduct 190 (225) (381) 288 251 340 291 140
Profit attributable to ordinary equity holders of the
parent
Attributable profit/(loss) 155 (226) (291) 204 190 236 206 63
Post-tax impact of litigation and conduct 19 6 - 6 (3) 3 - 7
=====
Profit/(loss) attributable to ordinary equity holders
of the parent excluding litigation and
conduct 174 (220) (291) 210 187 239 206 70
Return on average allocated tangible equity GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
=====
Average allocated equity 4.8 5.1 5.7 6.0 6.4 6.3 6.4 6.4
Average goodwill and intangibles (0.6) (0.6) (0.7) (0.9) (1.1) (1.0) (1.0) (1.1)
=====
Average allocated tangible equity 4.2 4.5 5.0 5.1 5.3 5.3 5.4 5.3
Return on average allocated tangible equity excluding
litigation and conduct 16.5% (19.6%) (23.5%) 16.3% 14.0% 18.0% 15.4% 5.4%
Head Office
Q320 Q220 Q120 Q419 Q319 Q219 Q119 Q418
Profit before tax GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Loss before tax (214) (321) (104) (190) (204) (169) (220) (231)
Impact of litigation and conduct 23 3 5 23 88 1 39 12
Loss before tax excluding litigation and conduct (191) (318) (99) (167) (116) (168) (181) (219)
Profit attributable to ordinary equity holders of the
parent
Attributable loss (284) (255) (99) (154) (184) (126) (172) (234)
Post-tax impact of litigation and conduct 19 3 (4) 15 66 2 28 16
Attributable loss excluding litigation and conduct (265) (252) (103) (139) (118) (124) (144) (218)
Tangible net asset value per share As at As at As at
30.09.20 31.12.19 30.09.19
GBPm GBPm GBPm
Total equity excluding non-controlling interests 67,816 64,429 66,197
Other equity instruments (12,012) (10,871) (10,860)
Goodwill and intangibles (8,163) (8,119) (8,068)
Tangible shareholders' equity attributable to ordinary shareholders of the parent 47,641 45,439 47,269
m m m
Shares in issue 17,353 17,322 17,269
p p p
Tangible net asset value per share 275 262 274
Shareholder Information
Results timetable (1) Date
2020 Full Year Results and Annual Report 25 February 2021
% Change(3)
Exchange rates (2) 30.09.20 30.06.20 30.09.19 30.06.20 30.09.19
Period end - USD/GBP 1.29 1.24 1.23 4% 5%
YTD average - USD/GBP 1.27 1.26 1.27 1% -
3 month average - USD/GBP 1.29 1.24 1.23 4% 5%
Period end - EUR/GBP 1.10 1.10 1.13 - (3%)
YTD average - EUR/GBP 1.13 1.14 1.13 (1%) -
3 month average - EUR/GBP 1.11 1.13 1.11 (2%) -
Share price data
Barclays PLC (p) 97.61 114.42 150.40
Barclays PLC number of shares (m) 17,353 17,345 17,269
For further information please contact
Investor relations Media relations
Chris Manners +44 (0) 20 7773 2136 Tom Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found on our website:
home.barclays .
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number:
48839.
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
Tel: 0371 384 2055(4) from the UK or +44 121 415 7004 from overseas.
American Depositary Receipts (ADRs)
J.P.Morgan Chase Bank, N.A
StockTransfer@equiniti.com
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 (outside the US and Canada)
or +1 866 700 1652 (for the hearing
impaired).
J.P.Morgan Chase Bank N.A., Shareowner Services, PO Box 64504, St Paul, MN 55164-0504, USA.
Delivery of ADR certificates and overnight mail
J.P.Morgan Chase Bank N.A., Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota
Heights, MN 55120, USA.
1 Note that these dates are provisional and subject to change.
2 The average rates shown above are derived from daily spot rates
during the year.
3 The change is the impact to GBP reported information.
4 Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
Notes
The terms Barclays or Group refer to Barclays PLC together with
its subsidiaries. Unless otherwise stated, the income statement
analysis compares the nine months ended 30 September 2020 to the
corresponding nine months of 2019 and balance sheet analysis as at
30 September 2020 with comparatives relating to 31 December 2019
and 30 September 2019. The abbreviations '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 22 October 2020, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2019 ,
which contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These results will be furnished as a Form 6-K to the US
Securities and Exchange Commission ( SEC) as soon as practicable
following their publication. Once furnished with the SEC, a copy of
the Form 6-K will be available from the SEC's website at
www.sec.gov .
Barclays is a frequent issuer in the debt capital markets and
regularly meets with investors via formal road-shows and other ad
hoc meetings. Consistent with its usual practice, Barclays expects
that from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by Barclays management. However, any non-IFRS
performance measures in this document are not a substitute for IFRS
measures and readers should consider the IFRS measures as well.
Refer to the appendix on pages 40 to 49 for further information and
calculations of non-IFRS performance measures included throughout
this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. These forward-looking statements
can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing
but also may be made verbally by members of the management of the
Group (including, without limitation, during management
presentations to financial
analysts) in connection with this document. Examples of
forward-looking statements include, among others, statements or
guidance regarding or relating to the Group's future financial
position, income growth, assets, impairment charges, provisions,
business strategy, capital, leverage and other regulatory ratios,
payment of dividends (including dividend payout ratios and expected
payment strategies), projected levels of growth in the banking and
financial markets, projected costs or savings, any commitments and
targets, estimates of capital expenditures, plans and objectives
for future operations, projected employee numbers, IFRS impacts and
other statements that are not historical fact. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. The forward-looking
statements speak only as at the date on which they are made and
such statements may be affected by changes in legislation, the
development of standards and interpretations under IFRS, including
evolving practices with regard to the interpretation and
application of accounting and regulatory standards, the outcome of
current and future legal proceedings and regulatory investigations,
future levels of conduct provisions, the policies and actions of
governmental and regulatory authorities, geopolitical risks and the
impact of competition. In addition, factors including (but not
limited to) the following may have an effect: capital, leverage and
other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions; the effects of any volatility in credit markets; market
related risks such as changes in interest rates and foreign
exchange rates; effects of changes in valuation of credit market
exposures; changes in valuation of issued securities; volatility in
capital markets; changes in credit ratings of any entity within the
Group or any securities issued by such entities; direct and
indirect impacts of the coronavirus (COVID-19) pandemic;
instability as a result of the exit by the UK from the European
Union (EU) (including the outcome of negotiations concerning the
UK's future trading and security relationship with the EU) and the
disruption that may subsequently result in the UK and globally; and
the success of future acquisitions, disposals and other strategic
transactions. A number of these influences and factors are beyond
the Group's control. As a result, the Group's actual financial
position, future results, dividend payments, capital, leverage or
other regulatory ratios or other financial and non-financial
metrics or performance measures may differ materially from the
statements or guidance set forth in the Group's forward-looking
statements. Additional risks and factors which may impact the
Group's future financial condition and performance are identified
in our filings with the SEC (including, without limitation, our
Annual Report on Form 20-F for the fiscal year ended 31 December
2019 and our 2020 Interim Results Announcement for the six months
ended 30 June 2020 filed on Form 6-K), which are available on the
SEC's website at www.sec.gov .
Subject to our obligations under the applicable laws and
regulations of any relevant jurisdiction, (including, without
limitation, the UK and the US), in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
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contained in this communication, and to share such analysis on an
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For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
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