barc201604276k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
April 27, 2016
 
Barclays PLC and

Barclays Bank PLC
(Names of Registrants)
 
 
 1 Churchill Place

London E14 5HP
England
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

 
Form 20-F x           Form 40-F

 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes           No x

 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):

 
This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.

 
This Report comprises:

 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.


 
 
EXHIBIT INDEX
 
 
1st Quarter Results dated 27 April 2016





 



SIGNATURES

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
BARCLAYS PLC
(Registrant)

 
Date: April 27, 2016
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Deputy Secretary
 
 

 
 
BARCLAYS BANK PLC
(Registrant)


Date: April 27, 2016
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Joint Secretary
 
 
 

Barclays PLC
Q1 2016 Results Announcement


31 March 2016


Table of Contents
 
Results Announcement
Page
 
Performance Highlights
2-5
 
Group Finance Director’s Review
6-8
 
Quarterly Results Summary
9-11
 
Quarterly Core Results by Business
12-15
 
Discontinued Operation
16
 
Performance Management
 
 
· Returns and equity by business
 
17
· Margins and balances
 
18
Condensed Consolidated Financial Statements
19-21
 
Capital
22-23
 
Risk Weighted Assets
24
 
Leverage
25
 
Shareholder Information
26
 

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

Notes
 
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2016 to the corresponding three months of 2015 and balance sheet analysis as at 31 March 2016 with comparatives relating to 31 December 2015. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively.
 
Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at barclays.com/barclays-investor-relations/results-and-reports.
 
Notable items are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Notable items include: the impact of own credit in total income; gains on US Lehman acquisition assets in total income; revision of the Education, Social Housing, and Local Authority (ESHLA) valuation methodology in total income; gain on valuation of a component of the defined retirement benefit liability in operating expenses; impairment of goodwill and other assets relating to businesses being disposed in operating expenses, provisions for UK customer redress in litigation and conduct; provisions for ongoing investigations and litigation including Foreign Exchange in litigation and conduct; and losses on sale relating to the Spanish, Portuguese and Italian businesses in other net income/(expenses).
 
References to underlying performance exclude the impact of notable items.
 
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 barclays.com/results.
 
The information in this announcement, which was approved by the Board of Directors on 26 April 2016, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website barclays.com/investorrelations and 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.
 

Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding the Group’s future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-¢ore, sell down of the Group’s interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, future levels of notable items, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more countries (including the UK) exiting the Eurozone; the implementation of the strategic cost programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group’s control. As a result, the Group’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and 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 2015), which are available on the SEC’s website at www.sec.gov.
 
Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.
 

 
Performance Highlights
 
Chief Executive’s statement
 
“This quarter we have made good early progress against the strategy update we announced on the 1st of March. It is the first set of results as a transatlantic consumer, corporate and investment bank operating under our new configuration of Barclays UK and Barclays Corporate & International, and they show a Core business performing well in a challenging environment.
 
Core RoTE is 9.9%, within which Barclays UK posted an impressive 20.5% return on tangible equity. We can see clear growth opportunities, such as in our Consumer, Cards and Payments business, in which we want to continue to invest. The performance of our Corporate and Investment Bank was relatively resilient in a tough quarter, but there is more we must do to improve returns, and we are focused on management actions to do so.
 
We continue to target cost reductions in the Group and we are on track to meet our 2016 guidance for the Core business of £12.8 billion, and our longer-term target of a Group cost to income ratio under 60%.
 
Our CET1 ratio finished the quarter at 11.3%, with a clear path to reaching our end state target, and I expect the capital ratio to increase through the course of the rest of 2016.
 
On Africa, we continue to explore opportunities to reduce our shareholding to a level that achieves regulatory deconsolidation, including capital market and strategic options, and we are pleased with the level of indicative interest in what is a high quality business. Barclays Africa is an important partner, and we are working closely with local management, including on the planning for the operational separation of the two businesses, in a way that will preserve value for shareholders in both Groups.
 
The performance of the Core today shows the potential power of the Group once it is freed from the drag of Non-Core.  
 
We promised to accelerate the pace of progress in reducing Non-Core so that our Group performance converges with our Core performance within a reasonable timeframe. Since the 1st of January, we have made progress in exiting from Investment Banking in nine countries, completed the sale of our Portuguese retail, wealth and SME banking businesses, and are progressing other announced sales, including the Italian branch network, the Index business and our Asian wealth business, towards completion in 2016.
 
As these deals complete we are reducing RWAs and, crucially, eliminating costs which have a direct impact on our profitability today and mask the true performance of our strong Core business. This is the work we need to complete.”
 
James E Staley, Group Chief Executive Officer
 
 
·
Group return on average tangible shareholders’ equity (RoTE) of 3.8% (Q115: 4.0%). Core RoTE of 9.9% (Q115: 7.1%)
 
·
Group attributable profit decreased 7% to £433m, resulting in a basic earnings per share of 2.7p (Q115: 2.9p). Core attributable profit increased 53% to £950m, resulting in a basic earnings per share contribution of 5.8p (Q115: 3.8p)
 
·
Group profit before tax of £793m (Q115: £1,057m) reflected an 18% increase in Core profit before tax to £1,608m, more than offset by an increased Non-Core loss before tax of £815m (Q115: £310m)
 
·
Barclays UK delivered a strong underlying RoTE of 20.5% (Q115: 24.0%). Underlying profit before tax decreased 2% to £704m as lower income was partially offset by improved impairment, with underlying total operating expenses remaining broadly in line. Net interest margin remained stable at 3.62% (Q115: 3.60%)
 
·
Barclays Corporate & International delivered an underlying RoTE of 9.5% (Q115: 10.9%). Income increased 2% driven by growth in Consumer, Cards and Payments and a resilient income performance in the Corporate and Investment Bank (CIB) despite challenging market conditions
 
·
Momentum in the rundown of Non-Core continued, with risk weighted assets (RWAs) decreasing a further £3bn to £51bn in the quarter. The announced sales of the Portuguese and Italian retail, and Asian wealth businesses are all targeted to complete during the year, and are expected to result in a further £3.4bn reduction in RWAs
 
·
Common equity tier 1 (CET1) ratio declined modestly to 11.3% (December 2015: 11.4%) due to increased regulatory deductions and the acquisition of intangibles in relation to the JetBlue credit card portfolio, within US consumer cards. The leverage ratio decreased marginally to 4.3% (December 2015: 4.5%) due to seasonality. Group RWAs increased £5bn in the quarter to £363bn and leverage exposure increased £54bn to £1,082bn
 
·
Net tangible asset value per share increased to 286p (December 2015: 275p) driven by profit generated in the period and favourable reserve movements

Barclays Group results  
  
for the three months ended 
31.03.16
31.03.15
  
  
£m
£m
% Change 
Total income net of insurance claims 
5,041 
5,650 
(11) 
Credit impairment charges and other provisions 
(443)
(386)
(15) 
Net operating income  
4,598 
5,264 
(13) 
Operating expenses  
(3,747)
(3,067)
(22) 
Litigation and conduct 
(78)
(1,039)
92  
Total operating expenses 
(3,825)
(4,106)
 
Other net income/(expenses)  
20 
(101)
 
Profit before tax  
793 
1,057 
(25) 
Tax charge 
(248)
(528)
53  
Profit after tax in respect of continuing operations 
545 
529 
 
Profit after tax in respect of discontinued operation
166 
196 
(15) 
Non-controlling interests in respect of continuing operations 
(94)
(88)
(7) 
Non-controlling interests in respect of discontinued operation
(80)
(92)
13  
Other equity holders
(104)
(80)
(30) 
Attributable profit  
433 
465 
(7) 
  
   
  
Performance measures 
   
  
Return on average tangible shareholders' equity
3.8%
4.0%
  
Average tangible shareholders' equity (£bn) 
48 
48 
  
Cost: income ratio 
76%
73%
  
Loan loss rate (bps) 
40 
32 
  
  
   
  
Basic earnings per share
2.7p
2.9p
  
Dividend per share  
-
1.0p
  
  
   
  
Balance sheet and capital management 
As at
31.03.16
As at
31.12.15
  
Net tangible asset value per share 
286p
275p
  
Common equity tier 1 ratio 
11.3%
11.4%
  
Common equity tier 1 capital 
£40.9bn
£40.7bn
  
Risk weighted assets  
£363bn
£358bn
  
Leverage ratio 
4.3%
4.5%
  
Tier 1 capital 
£46.3bn
£46.2bn
  
Leverage exposure  
£1,082bn
£1,028bn
  
  
   
  
Funding and liquidity 
   
  
Group liquidity pool 
£132bn
£145bn
  
Estimated CRD IV liquidity coverage ratio 
129%
133%
  
Loan: deposit ratio
84%
86%
  

1
Refer to page 16 for further information on the Africa Banking discontinued operation.
2
The profit after tax attributable to other equity holders of £104m (Q115: £80m) is offset by a tax credit recorded in reserves of £29m (Q115: £16m). The net amount of £75m (Q115: £64m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.
3
Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail.

Barclays Core and Non-Core results  
Barclays Core 
 
Barclays Non-Core 
for the three months ended 
31.03.16
31.03.15 
  
 
31.03.16
31.03.15
  
  
£m
£m 
% Change 
 
£m
£m
% Change 
Total income net of insurance claims 
5,283 
5,428  
(3) 
 
(242)
222 
 
Credit impairment charges and other provisions 
(414)
(345) 
(20) 
 
(29)
(41)
29  
Net operating income/(expenses)  
4,869 
5,083  
(4) 
 
(271)
181 
  
Operating expenses 
(3,258)
(2,618) 
(24) 
 
(489)
(449)
(9) 
Litigation and conduct 
(12)
(1,015) 
99  
 
(66)
(24)
 
Total operating expenses 
(3,270)
(3,633) 
10  
 
(555)
(473)
(17) 
Other net income/(expenses) 
(83) 
   
11 
(18)
 
Profit/(loss) before tax  
1,608 
1,367  
18  
 
(815)
(310)
 
Tax (charge)/credit 
(485)
(614) 
21  
 
237 
86 
 
Profit/(loss) after tax 
1,123 
753  
49  
 
(578)
(224)
 
Non-controlling interests 
(84)
(68) 
(24) 
 
(10)
(20)
50  
Other equity holders 
(89)
(65) 
(37) 
 
(15)
(14)
(7) 
Attributable profit/(loss)
950 
620  
53  
 
(603)
(258)
 
  
 
  
  
     
  
Performance measures 
 
  
  
     
  
Return on average tangible equity 
9.9%
7.1% 
  
     
  
Average allocated tangible equity (£bn)
39 
36  
  
 
12 
  
Period end allocated tangible equity (£bn)
40 
36  
  
 
12 
  
Cost: income ratio 
62%
67% 
  
 
n/m
n/m
  
Loan loss rate (bps) 
42 
35  
  
 
21 
17 
  
Basic earnings/(loss) per share contribution 
5.8p
3.8p 
  
 
(3.6p)
(1.5p)
  
  
 
  
  
     
  
  
As at
As at 
  
 
As at
As at
  
Capital management 
31.03.16
31.12.15 
  
 
31.03.16
31.12.15
  
Risk weighted assets
£312bn
£304bn 
  
 
£51bn
£54bn
  
Leverage exposure
£946bn
£879bn 
  
 
£136bn
£149bn
  
  
 
  
  
     
  
Notable items
for the three months ended 
31.03.16
31.03.15 
  
 
31.03.16
31.03.15
  
Own credit  
(109)
128  
  
 
  
Provisions for ongoing investigations and litigation including Foreign Exchange  
(800) 
  
 
  
Gains on valuation of a component of the defined retirement benefit liability   
429  
  
 
  
Provisions for UK customer redress  
(167) 
  
 
(15)
  
Losses on sale relating to the Spanish business 
(97) 
  
 
(21)
  

Excluding notable items, the Core return on average tangible equity was 10.7% (Q115: 13.4%) and the Core basic earnings per share was 6.3p (Q115: 7.3p).

Excluding notable items, the Non-Core basic loss per share was 3.6p (Q115: 1.3p).

1
Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core.

  
Three months ended
Three months ended
  
  
31.03.16
31.03.15
  
Income by business 
£m
£m
% Change 
Barclays UK 
1,803 
1,831 
(2) 
Barclays Corporate & International 
3,513 
3,454 
 
Head Office 
(33)
142 
 
Barclays Core 
5,283 
5,428 
(3) 
Barclays Non-Core 
(242)
222 
 
Barclays Group 
5,041 
5,650 
(11) 

Profit/(loss) before tax by business 
   
  
Barclays UK 
704 
844 
(17) 
Barclays Corporate & International 
1,027 
510 
 
Head Office 
(123)
12 
 
Barclays Core 
1,608 
1,367 
18  
Barclays Non-Core 
(815)
(310)
 
Barclays Group 
793 
1,057 
(25) 

 
Group Finance Director’s Review
 
Group performance in the quarter was impacted by the Non-Core results, with a loss before tax of £815m (Q115: £310m) driven by negative total income of £242m (Q115: positive income of £222m), including fair value losses on the Education, Social Housing and Local Authority Losses (ESHLA) portfolio of £374m (Q115: £149m). The Non-Core rundown remains on track with continued momentum in the quarter and no change to previous guidance.  

The Core business performed well, with a statutory RoTE of 9.9% (Q115: 7.1%) driven by steady results in Barclays UK across each of the business areas, and solid performance in Barclays Corporate & International. Corporate and Investment Bank results were resilient given the challenging market conditions, particularly in Credit, while strong business growth in Consumer, Cards and Payments drove a significant increase in profit before tax.  

Total Core operating expenses of £3,270m (Q115: £3,633m) were impacted by higher restructuring charges, increased implementation costs associated with the structural reform programme and the appreciation of average USD against GBP. Total Core operating expenses are expected to reduce and the 2016 Core cost guidance of £12.8bn excluding litigation and conduct charges remains unchanged.

Group performance
·
Profit before tax decreased 25% to £793m, including an own credit loss of £109m (Q115: gain of £128m)
·
Total income net of insurance claims decreased 11% to £5,041m as Non-Core income reduced £464m to a net expense of £242m. Core income, including an own credit loss of £109m (Q115: gain of £128m), decreased 3% to £5,283m despite the appreciation of average USD against GBP
·
Credit impairment charges increased 15% to £443m primarily driven by the impairment of a number of single name exposures, largely in respect of clients in the oil and gas sector. Exposures to the sector remain well managed and the increase in impairment is in line with expectations. The loan loss rate increased 8bps to 40bps
·
Total operating expenses reduced 7% to £3,825m following the non-recurrence of a number of notable items in Q115, partially offset by increased restructuring charges relating to strategic initiatives, increased implementation costs associated with the structural reform programme, continued investment in the Consumer, Cards and Payments business and the appreciation of average USD against GBP
·
The effective tax rate on profit before tax decreased to 31.3% (Q115: 50.0%) reflecting the non-recurrence of non-deductible litigation and conduct charges in Q115
·
Profit after tax in respect of continuing operations increased 3% to £545m
·
Underlying profit before tax, which excludes the impact of notable items, decreased 44% to £902m primarily driven by the underlying loss before tax in Non-Core of £815m (Q115: £274m). Total Group underlying income decreased 7% to £5,150m and total operating expenses increased 8% to £3,825m
·
Underlying return on average tangible shareholders’ equity was 4.5% (Q115: 9.0%) and basic earnings per share was 3.2p (Q115: 6.6p)

All performance commentary which follows is on an underlying basis.

Core performance
·
Underlying Core performance generated a RoTE of 10.7% (Q115: 13.4%) driven by the following business performance and reflecting the allocation of Africa Banking average tangible equity to the Core

Barclays UK
·
Underlying profit before tax decreased 2% to £704m with a reduction in income, partially offset by lower credit impairment charges
·
Total income reduced 2% to £1,803m, within which:
 
-
Personal Banking income decreased 1% to £919m driven by a reduction in fee income and mortgage margin pressure, partially offset by improved deposit margins and balance growth
 
-
Barclaycard Consumer UK income decreased 3% to £491m reflecting the impact of the European Interchange Fee Regulation, which came into full effect from December 2015, partially offset by balance growth
 
-
Wealth, Entrepreneurs & Business Banking (WEBB) income decreased 2% to £393m, as the lower equity market drove reduced Wealth income
 
-
Net interest income was broadly flat at £1,501m (Q115: £1,486m). Net interest margin increased to 3.62% (Q115: 3.60%) as increased margins on Personal Banking deposits were partially offset by mortgage margin pressure
·
Credit impairment charges reduced 13% to £146m due to the benign economic environment in the UK resulting in lower default rates and charges. The loan loss rate reduced 6bps to 34bps
·
Underlying total operating expenses were broadly flat at £953m (Q115: £946m) driven by savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, and lower restructuring costs offset by increased implementation costs associated with the structural reform programme
·
Underlying RoTE was 20.5% (Q115: 24.0%)

Barclays Corporate & International
·
Underlying profit before tax decreased 13% to £1,027m driven by a 5% increase in underlying total operating expenses to £2,225m due to increased restructuring charges, appreciation of average USD against GBP and structural reform programme implementation costs and a 51% increase in credit impairment charges to £269m
·
Total income increased 2% to £3,513m, including the appreciation of average USD against GBP, with CIB income decreasing 4% to £2,596m and Consumer, Cards and Payments increasing 24% to £917m
·
Net interest margin increased to 4.61% (Q115: 4.38%) driven by growth in interest earning lending primarily representing the maturation of the US Cards business
·
Underlying RoTE was 9.5% (Q115: 10.9%)

Corporate and Investment Bank (CIB)
·
Underlying profit before tax decreased 31% to £701m primarily driven by a reduction in Banking and Markets income, increased credit impairment charges and higher operating expenses
·
Total income decreased 4% to £2,596m, reflecting the impact of challenging market conditions, partially offset by the appreciation of average USD against GBP
 
-
Markets income decreased 4% to £1,408m, within which:
   
-
Credit income increased 46% to £322m driven by strong performance in the US flow business, which benefited from increased market volatility and client activity
   
-
Equities income decreased 13% to £513m primarily due to declines in equity derivatives reflecting lower client volumes
   
-
Macro income decreased 13% to £573m due to lower income in rates and currency products, reflecting reduced client activity
 
-
Banking income decreased 5% to £1,185m, within which:
   
-
Banking fee income reduced 12% to £481m driven by lower equity underwriting and debt underwriting fees, partially offset by higher financial advisory fees
   
-
Corporate lending income increased 4% to £296m due to strong balance growth and lower losses on fair value hedges
   
-
Transactional banking income was broadly in line at £408m (Q115: £413m) with underlying balance growth and a stable customer margin
·
Credit impairment charges of £95m (Q115: release of £1m) arose primarily from impairment of a number of single name exposures, largely in respect of clients in the oil and gas sector
·
Underlying total operating expenses increased 6% to £1,800m driven by £93m higher restructuring charges relating to strategic initiatives, the appreciation of average USD against GBP and increased implementation costs associated with the structural reform programme
·
Underlying RoTE was 7.3% (Q115: 10.7%)

Consumer, Cards and Payments
·
Underlying profit before tax increased £163m to £326m driven by strong business growth
·
Total income increased 24% to £917m reflecting continued growth in Barclaycard US and Germany and the appreciation of average USD and EUR against GBP
·
Credit impairment charges reduced 3% to £174m despite balance growth
·
Underlying total operating expenses increased 3% to £425m driven by the continued business growth in Barclaycard US and Germany, and Barclaycard Business Solutions, in addition to the appreciation of average USD and EUR against GBP
·
Underlying RoTE was 23.4% (Q115: 11.8%)

Head Office
·
Underlying loss before tax was £14m (Q115: £19m) reflecting the net expense from treasury operations and one-off gains from a liability management exercise

Non-Core performance
·
Underlying loss before tax increased to £815m (Q115: £274m), including fair value losses on the ESHLA portfolio of £374m (Q115: £149m), as gilt swap spreads widened
·
Total income net of insurance claims reduced £464m to a net expense of £242m
 
-
Businesses income reduced £108m to £196m primarily due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas and UK Secured Lending businesses
 
-
Securities and loans income reduced £334m to a net expense of £402m primarily driven by fair value losses on the ESHLA portfolio, the non-recurrence of a £91m provision release relating to a litigation matter in Q115, and the exit of historical investment banking businesses
 
-
Derivatives income reduced £22m to a net expense of £36m primarily reflecting funding costs and the rundown of the portfolio
·
Credit impairment charges improved 29% to £29m due to higher recoveries in Europe
·
Underlying total operating expenses increased 21% to £555m reflecting £182m of restructuring charges in Q116 (Q115: £13m), partially offset by reduced costs following the completion of the sale of the Barclays Wealth Americas
·
RWAs decreased a further £3bn to £51bn in the quarter, driven by a £2bn reduction in Derivatives RWAs. The announced sales of the Portuguese and Italian retail, and Asian wealth businesses are all targeted to complete during the year, and are expected to result in a further £3.4bn reduction in Businesses RWAs

Group capital, leverage and balance sheet
·
Total assets increased 12% to £1,249bn in the quarter, while leverage exposure increased £54bn to £1,082bn
 
-
Total loans and advances, and other assets increased by £48bn to £673bn. This included a £24bn increase in settlement balances, lending growth of £3bn within Barclays Corporate & International as well as a £4bn increase in Africa Banking assets held for sale reflecting the appreciation of ZAR against GBP
 
-
Net derivative leverage exposure, remained broadly flat as an increase in balance sheet assets of £73bn to £401bn, was offset by an increase in regulatory derivative netting of £72bn to £365bn. The derivative assets increase was mainly due to an increase in interest rate derivatives, reflecting a decrease in the major interest rate forward curves
 
-
Non current assets classified as held for sale increased by £56bn due to the proposed disposal of Barclays Africa Group Limited (BAGL), with offsetting amounts across all balance sheet categories
·
Overall, the leverage ratio decreased to 4.3% (December 2015: 4.5%) driven by the leverage exposure increase
·
The fully loaded CRD IV CET1 ratio decreased to 11.3% (December 2015: 11.4%) with RWAs increasing by £5bn to £363bn and CET1 capital increasing £0.1bn to £40.9bn
 
-
The increase in RWAs of £5bn to £363bn was primarily due to the appreciation of ZAR and USD against GBP
 
-
The movement in CET1 capital was largely driven by profits generated in the period of £0.3bn, after absorbing the impact of own credit and dividends paid and foreseen. Increases in other qualifying reserves of £0.6bn were offset by higher regulatory adjustments and deductions of £0.6bn
·
Net tangible asset value per share increased to 286p (December 2015: 275p) driven by profit generated in the period and favourable cash flow hedge and currency translation reserve movements

Group funding and liquidity
·
The Group continued to maintain surpluses to its internal and regulatory requirements in Q116 with a liquidity pool of £132bn (December 2015: £145bn) and Liquidity Coverage Ratio (LCR) of 129% (December 2015: 133%), equivalent to a surplus of £31bn (December 2015: £37bn). The decrease in the liquidity pool was mainly driven by the early repayment of the Bank of England’s Funding for Lending Scheme of £12bn
·
Wholesale funding outstanding excluding repurchase agreements was £141bn (December 2015: £142bn). Over the quarter, the Group made good progress on its commitment to transition to a holding company capital and wholesale funding model. The Group successfully issued £4.1bn in senior debt from the holding company across public and private placements, and also bought back £5.3bn of outstanding operating company senior debt and capital instruments. Proceeds raised by Barclays PLC have been used to subscribe for senior unsecured debt at Barclays Bank PLC, the operating company

Outlook and guidance
·
We remain confident in our core franchises and our ability to continue with the Non-Core rundown, but are cautious as we approach the 23rd June EU referendum
·
The income run-rate within the Corporate and Investment Bank in April is slightly down on Q116, but it is too early to make any specific comment on overall Q216 performance

Tushar Morzaria, Group Finance Director
 

Quarterly Results Summary
 
Barclays Group  
 
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income net of insurance claims 
5,041 
 
4,448 
5,481 
6,461 
5,650 
 
4,097 
5,987 
5,756 
Credit impairment charges and other provisions 
(443)
 
(554)
(429)
(393)
(386)
 
(495)
(435)
(439)
Net operating income 
4,598 
 
3,894 
5,052 
6,068 
5,264 
 
3,602 
5,552 
5,317 
Operating expenses 
(3,747)
 
(3,547)
(3,552)
(3,557)
(3,067)
 
(3,696)
(3,653)
(3,762)
UK bank levy 
 
(426)
 
(418)
Litigation and conduct 
(78)
 
(1,722)
(699)
(927)
(1,039)
 
(1,089)
(607)
(1,046)
Total operating expenses 
(3,825)
 
(5,695)
(4,251)
(4,484)
(4,106)
 
(5,203)
(4,260)
(4,808)
Other net income/(expenses) 
20 
 
(274)
(182)
(39)
(101)
 
(82)
(336)
(48)
Profit/(loss) before tax  
793 
 
(2,075)
619 
1,545 
1,057 
 
(1,683)
956 
461 
Tax (charge)/credit 
(248)
 
(164)
(133)
(324)
(528)
 
134 
(507)
(215)
Profit/(loss) after tax in respect of continuing operations 
545 
 
(2,239)
486 
1,221 
529 
 
(1,549)
449 
246 
Profit after tax in respect of discontinued operation 
166 
 
101 
167 
162 
196 
 
168 
171 
145 
  
                   
Attributable to: 
                   
Ordinary equity holders of the parent 
433 
 
(2,422)
417 
1,146 
465 
 
(1,679)
379 
161 
Other equity holders 
104 
 
107 
79 
79 
80 
 
80 
80 
41 
Non-controlling interests 
174 
 
177 
157 
158 
180 
 
218 
161 
189 
  
                   
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Total assets 
1,248.9 
 
1,120.0 
1,236.5 
1,196.7 
1,416.4 
 
1,357.9 
1,365.7 
1,314.9 
Risk weighted assets  
363.0 
 
358.4 
381.9 
376.7 
395.9 
 
401.9 
412.9 
411.1 
Leverage exposure 
1,082.0 
 
1,027.8 
1,140.7 
1,139.3 
1,254.7 
 
1,233.4 
1,323.9 
1,353.0 
  
                   
Performance measures 
                   
Return on average tangible shareholders' equity  
3.8%
 
(20.1%)
3.6%
9.8%
4.0%
 
(13.8%)
3.4%
1.4%
Average tangible shareholders' equity (£bn) 
48.3 
 
47.8 
47.6 
47.2 
48.1 
 
48.3 
46.8 
46.7 
Cost: income ratio 
76%
 
128%
78%
69%
73%
 
127%
71%
84%
Loan loss rate (bps) 
40 
 
53 
37 
35 
32 
 
45 
39 
39 
Basic earnings/(loss) per share   
2.7p
 
(14.4p)
2.6p
7.0p
2.9p
 
(10.2p)
2.4p
1.0p
  
                   
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Own credit  
(109)
 
(175)
195 
282 
128 
 
(62)
44 
(67)
Gains on US Lehman acquisition assets  
 
496 
 
461 
Revision of ESHLA valuation methodology  
 
 
(935)
Provisions for UK customer redress  
 
(1,450)
(290)
(850)
(182)
 
(200)
(10)
(900)
Provisions for ongoing investigations and litigation including Foreign Exchange 
 
(167)
(270)
(800)
 
(750)
(500)
Gain on valuation of a component of the defined retirement benefit liability  
 
429 
 
Impairment of goodwill and other assets relating to businesses being disposed  
 
(96)
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses 
 
(261)
(201)
(118)
 
(82)
(364)

Excluding notable items, the return on average tangible shareholders’ equity was 4.5% (Q115: 9.0%) and basic earnings per share was 3.2p (Q115: 6.6p).

Barclays Core  
 
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income net of insurance claims 
5,283 
 
4,516 
5,265 
6,219 
5,428 
 
4,791 
5,368 
5,216 
Credit impairment charges and other provisions 
(414)
 
(522)
(388)
(373)
(345)
 
(481)
(393)
(342)
Net operating income 
4,869 
 
3,994 
4,877 
5,846 
5,083 
 
4,310 
4,975 
4,874 
Operating expenses 
(3,258)
 
(2,992)
(3,094)
(3,061)
(2,618)
 
(3,076)
(3,000)
(3,097)
UK bank levy 
 
(338)
 
(316)
Litigation and conduct 
(12)
 
(1,634)
(419)
(819)
(1,015)
 
(1,004)
(507)
(953)
Total operating expenses 
(3,270)
 
(4,964)
(3,513)
(3,880)
(3,633)
 
(4,396)
(3,507)
(4,050)
Other net income/(expenses) 
 
(5)
13 
14 
(83)
 
322 
26 
Profit/(loss) before tax  
1,608 
 
(975)
1,377 
1,980 
1,367 
 
(80)
1,790 
850 
Attributable profit/(loss) 
950 
 
(1,240)
961 
1,381 
620 
 
(417)
1,117 
419 
  
                   
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Total assets 
883.6 
 
794.2 
862.0 
830.5 
919.4 
 
855.5 
867.9 
816.5 
Risk weighted assets 
312.2 
 
304.1 
316.3 
308.1 
318.0 
 
312.8 
318.8 
309.0 
  
                   
Performance measures 
                   
Return on average tangible equity 
9.9%
 
(12.8%)
10.4%
15.5%
7.1%
 
(4.8%)
14.1%
5.5%
Average tangible equity (£bn) 
39.3 
 
38.1 
37.5 
35.9 
35.6 
 
34.0 
32.2 
30.7 
Cost: income ratio 
62%
 
110%
67%
62%
67%
 
92%
65%
78%
Loan loss rate (bps) 
42 
 
57 
39 
38 
35 
 
52 
41 
37 
Basic earnings/(loss) per share 
5.8p
 
(7.3p)
5.8p
8.4p
3.8p
 
(2.5p)
6.9p
2.6p
  
                   
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Own credit  
(109)
 
(175)
195 
282 
128 
 
(62)
44 
(67)
Gains on US Lehman acquisition assets  
 
496 
 
461 
Provisions for UK customer redress  
 
(1,392)
(290)
(800)
(167)
 
(199)
(844)
Provisions for ongoing investigations and litigation including Foreign Exchange 
 
(167)
(69)
(800)
 
(750)
(500)
Gain on valuation of a component of the defined retirement benefit liability  
 
429 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses 
 
(15)
(97)
 
315 

Excluding notable items, the Core return on average tangible equity was 10.7% (Q115: 13.4%) and the Core basic earnings per share was 6.3p (Q115: 7.3p).

Barclays Non-Core  
 
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Businesses  
196 
 
229 
314 
292 
304 
 
361 
379 
376 
Securities and loans  
(402)
 
(195)
(87)
(68)
 
(1,021)
275 
172 
Derivatives  
(36)
 
(102)
(12)
(49)
(14)
 
(35)
(35)
(8)
Total income net of insurance claims 
(242)
 
(68)
215 
243 
222 
 
(695)
619 
540 
Credit impairment charges and other provisions 
(29)
 
(32)
(41)
(20)
(41)
 
(13)
(42)
(98)
Net operating (expenses)/income 
(271)
 
(100)
174 
223
181 
 
(708)
577 
442 
Operating expenses 
(489)
 
(555)
(458)
(496)
(449)
 
(618)
(654)
(666)
UK bank levy 
 
(88)
 
(102)
Litigation and conduct 
(66)
 
(89)
(279)
(108)
(24)
 
(85)
(100)
(93)
Total operating expenses 
(555)
 
(732)
(737)
(604)
(473)
 
(805)
(754)
(759)
Other net income/(expenses) 
11 
 
(268)
(195)
(54)
(18)
 
(90)
(657)
(72)
Loss before tax  
(815)
 
(1,100)
(758)
(435)
(310)
 
(1,603)
(834)
(389)
Attributable loss 
(603)
 
(1,208)
(628)
(324)
(258)
 
(1,347)
(819)
(333)
  
                   
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
55.4 
 
51.8 
57.1 
60.4 
73.1 
 
70.7 
72.4 
83.6 
Derivative financial instrument assets  
249.7 
 
213.7 
243.3 
223.9 
305.6 
 
288.9 
252.6 
229.7 
Derivative financial instrument liabilities  
239.1 
 
202.1 
235.0 
216.7 
299.6 
 
280.6 
243.2 
217.8 
Reverse repurchase agreements and other similar secured lending  
0.7 
 
3.1 
8.5 
16.7 
43.7 
 
50.7 
75.3 
87.8 
Financial assets designated at fair value  
23.4 
 
21.4 
22.8 
22.1 
25.0 
 
25.5 
27.3 
24.9 
Total assets  
365.4 
 
325.8 
374.5 
366.2 
497.0 
 
502.4 
497.8 
498.4 
Customer deposits
19.3 
 
20.9 
25.8 
27.9 
29.9 
 
30.8 
32.2 
41.1 
Risk weighted assets 
50.9 
 
54.3 
65.6 
68.6 
77.9 
 
89.1 
94.1 
102.0 
  
                   
Performance measures 
                   
Average allocated tangible equity (£bn) 
9.0 
 
9.7 
10.2 
11.3 
12.4 
 
14.3 
14.7 
16.0 
Period end allocated tangible equity (£bn) 
8.5 
 
8.5 
10.2 
10.1 
11.7 
 
13.1 
14.1 
14.9 
Loan loss rate (bps) 
21 
 
25 
27 
13 
17 
 
10 
27 
48 
Basic loss per share contribution  
(3.6p)
 
(7.2p)
(3.7p)
(1.9p)
(1.5p)
 
(8.2p)
(5.0p)
(2.0p)
  
                   
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Revision of ESHLA valuation methodology  
 
 
(935)
Provisions for UK customer redress  
 
(58)
(50)
(15)
 
(1)
(18)
(56)
Provisions for ongoing investigations and litigation including Foreign Exchange 
 
(201)
 
Impairment of goodwill and other assets relating to businesses being disposed  
 
(96)
 
Losses on sale relating to the Spanish, Portuguese and Italian business 
 
(246)
(201)
(21)
 
(82)
(679)

Excluding notable items, the Non-Core basic loss per share was 3.6p (Q115: 1.3p).

1
As at 31 March 2016 loans and advances included £42.2bn (December 2015: £40.4bn) of loans and advances to customers (including settlement balances of £0.2bn (December 2015: £0.3bn) and cash collateral of £23.7bn (December 2015: £19.0bn), and £13.2bn (December 2015: £11.4bn) of loans and advances to banks (including settlement balances of £0.1bn (December 2015: £nil) and cash collateral of £11.9bn (December 2015: £10.1bn)).
2
As at 31 March 2016 customer deposits included settlement balances of £0.3bn (December 2015: £0.2bn) and cash collateral of £14.5bn (December 2015: £12.3bn).

 
Barclays UK 
 
 
 
               
  
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income 
1,803 
 
1,834 
1,874 
1,804 
1,831 
 
1,882 
1,898 
1,834 
Credit impairment charges and other provisions 
(146)
 
(219)
(154)
(166)
(167)
 
(264)
(217)
(191)
Net operating income 
1,657 
 
1,615 
1,720 
1,638 
1,664 
 
1,618 
1,681 
1,643 
Operating expenses 
(952)
 
(920)
(925)
(970)
(649)
 
(1,041)
(1,048)
(1,000)
UK bank levy 
 
(77)
 
(59)
Litigation and conduct 
(1)
 
(1,466)
(76)
(801)
(168)
 
(211)
(32)
(850)
Total operating expenses 
(953)
 
(2,463)
(1,001)
(1,771)
(817)
 
(1,311)
(1,080)
(1,850)
Other net income/(expenses) 
 
(3)
 
(3)
(1)
Profit/(loss) before tax   
704 
 
(847)
720 
(132)
844 
 
304 
600 
(206)
Attributable profit/(loss)  
467 
 
(1,078)
541 
(174)
664 
 
208 
442 
(208)
  
 
 
               
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Loans and advances to customers at amortised cost 
166.2 
 
166.1 
166.7 
166.1 
166.0 
 
165.3 
164.3 
163.5 
Total assets 
201.7 
 
202.5 
204.1 
202.2 
199.6 
 
198.0 
190.9 
185.6 
Customer deposits 
179.1 
 
176.8 
173.4 
171.6 
168.7 
 
168.3 
165.9 
166.8 
Risk weighted assets 
69.7 
 
69.5 
71.0 
71.7 
72.3 
 
69.3 
71.3 
69.5 
  
 
 
               
Performance measures 
 
 
               
Return on average tangible equity 
20.5%
 
(46.5%)
23.3%
(7.3%)
28.3%
 
9.3%
19.4%
(9.1%)
Average allocated tangible equity (£bn) 
9.3 
 
9.2 
9.3 
9.4 
9.4 
 
9.2 
9.2 
9.0 
Cost: income ratio 
53%
 
134%
53%
98%
45%
 
70%
57%
101%
Loan loss rate (bps) 
34 
 
51 
36 
40 
40 
 
62 
51 
46 
  
 
 
               
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Provisions for UK customer redress  
 
(1,391)
(73)
(800)
(167)
 
(199)
(24)
(844)
Gain on valuation of a component of the defined retirement benefit liability  
 
296 
 

Excluding notable items, the Barclays UK return on average tangible equity was 20.5% (Q115: 24.0%).

Analysis of Barclays UK 
 
 
       
 
     
Analysis of total income 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Personal Banking 
919 
 
945 
938 
905 
927 
 
955 
968 
935 
Barclaycard Consumer UK 
491 
 
505 
552 
503 
505 
 
518 
530 
519 
Wealth, Entrepreneurs & Business Banking 
393 
 
384 
384 
396 
399 
 
409 
400 
380 
Total income 
1,803 
 
1,834 
1,874 
1,804 
1,831 
 
1,882 
1,898 
1,834 
  
 
 
       
 
     
Analysis of credit impairment charges and other provisions 
 
 
       
 
     
Personal Banking 
(42)
 
(39)
(36)
(50)
(69)
 
(57)
(57)
(40)
Barclaycard Consumer UK 
(105)
 
(176)
(111)
(106)
(95)
 
(185)
(139)
(129)
Wealth, Entrepreneurs & Business Banking 
 
(4)
(7)
(10)
(3)
 
(22)
(21)
(22)
Total credit impairment charges and other provisions 
(146)
 
(219)
(154)
(166)
(167)
 
(264)
(217)
(191)
  
 
 
       
 
     
Analysis of loans and advances to customers at amortised cost 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Personal Banking 
134.7 
 
134.0 
134.5 
134.4 
134.3 
 
133.8 
133.3 
132.6 
Barclaycard Consumer UK 
16.0 
 
16.2 
15.9 
15.8 
15.7 
 
15.8 
15.5 
15.2 
Wealth, Entrepreneurs & Business Banking 
15.5 
 
15.9 
16.3 
15.9 
16.0 
 
15.7 
15.5 
15.7 
Total loans and advances to customers at amortised cost 
166.2 
 
166.1 
166.7 
166.1 
166.0 
 
165.3 
164.3 
163.5 
  
 
 
       
 
     
Analysis of customer deposits 
 
 
       
 
     
Personal Banking 
132.9 
 
131.0 
128.4 
126.7 
123.4 
 
124.5 
122.2 
121.1 
Barclaycard Consumer UK 
 
 
Wealth, Entrepreneurs & Business Banking 
46.2 
 
45.8 
45.0 
44.9 
45.3 
 
43.8 
43.7 
45.7 
Total customer deposits 
179.1 
 
176.8 
173.4 
171.6 
168.7 
 
168.3 
165.9 
166.8 

Barclays Corporate & International 
 
     
 
     
  
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income 
3,513 
 
2,968 
3,223 
4,102 
3,454 
 
2,945 
3,370 
3,367 
Credit impairment charges and other provisions 
(269)
 
(303)
(235)
(206)
(178)
 
(217)
(176)
(151)
Net operating income 
3,244 
 
2,665 
2,988 
3,896 
3,276 
 
2,728 
3,194 
3,216 
Operating expenses 
(2,221)
 
(2,007)
(2,059)
(2,027)
(1,936)
 
(2,014)
(1,943)
(2,068)
UK bank levy 
 
(253)
 
(248)
Litigation and conduct 
(4)
 
(151)
(302)
(12)
(845)
 
(786)
(470)
(62)
Total operating expenses 
(2,225)
 
(2,411)
(2,361)
(2,039)
(2,781)
 
(3,048)
(2,413)
(2,130)
Other net income 
 
13 
15 
 
24 
Profit/(loss) before tax  
1,027 
 
262 
636 
1,870 
510 
 
(313)
790 
1,110 
Attributable profit/(loss) 
575 
 
(24)
422 
1,376 
(16)
 
(673)
449 
594 
  
 
 
       
 
     
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
215.9 
 
184.1 
220.3 
210.5 
224.7 
 
193.6 
206.5 
200.6 
Trading portfolio assets 
64.3 
 
61.9 
72.8 
75.3 
92.7 
 
87.3 
91.5 
92.8 
Derivative financial instrument assets 
150.1 
 
111.5 
133.7 
116.0 
172.8 
 
149.6 
128.7 
101.8 
Derivative financial instrument liabilities 
155.4 
 
119.0 
142.0 
124.8 
182.3 
 
157.3 
134.6 
106.7 
Reverse repurchase agreements and other similar secured lending 
19.1 
 
24.7 
68.0 
57.4 
57.1 
 
62.9 
81.5 
82.1 
Financial assets designated at fair value 
59.6 
 
46.8 
5.6 
5.6 
5.2 
 
5.7 
10.9 
10.9 
Total assets 
618.4 
 
532.2 
596.1 
566.1 
656.2 
 
596.5 
608.5 
561.9 
Customer deposits
213.1 
 
185.6 
207.0 
197.7 
206.2 
 
188.2 
205.0 
198.0 
Risk weighted assets 
202.2 
 
194.8 
204.0 
195.4 
202.6 
 
201.7 
205.9 
198.7 
  
 
 
       
 
     
Performance measures 
 
 
       
 
     
Return on average tangible equity 
9.5%
 
(0.2%)
7.0%
22.5%
(0.1%)
 
(10.4%)
7.4%
9.6%
Average allocated tangible equity (£bn) 
25.1 
 
24.9 
24.7 
24.7 
25.3 
 
25.6 
24.6 
24.8 
Cost: income ratio 
63%
 
81%
73%
50%
81%
 
103%
72%
63%
Loan loss rate (bps) 
50 
 
65 
42 
38 
32 
 
44 
34 
30 
  
 
 
       
 
     
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Gains on US Lehman acquisition assets 
 
496 
 
461 
Provisions for UK customer redress  
 
(218)
 
32 
Provisions for ongoing investigations and litigation including Foreign Exchange 
 
(145)
(39)
(800)
 
(750)
(500)
Gain on valuation of a component of the defined retirement benefit liability 
 
133 
 

Excluding notable items, the Barclays Corporate & International return on average tangible equity was 9.5% (Q115: 10.9%).

1
As at 31 March 2016 loans and advances included £189.8bn (December 2015: £162.6bn) of loans and advances to customers (including settlement balances of £39.7bn (December 2015: £18.5bn) and cash collateral of £27.6bn (December 2015: £24.8bn)), and £26.1bn (December 2015: £21.5bn) of loans and advances to banks (including settlement balances of £4.2bn (December 2015: £1.6bn) and cash collateral of £7.0bn (December 2015: £5.7bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £32.9bn (December 2015: £32.1bn).
2
As at 31 March 2016 customer deposits included settlement balances of £37.7bn (December 2015: £16.3bn) and cash collateral of £17.2bn (December 2015: £15.9bn).

Analysis of Barclays Corporate & International 
     
 
     
  
 
 
       
 
     
Corporate and Investment Bank 
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Analysis of total income 
 
 
       
 
     
Credit 
322 
 
195 
191 
218 
220 
 
117 
189 
221 
Equities 
513 
 
319 
416 
588 
589 
 
418 
370 
597 
Macro 
573 
 
382 
487 
582 
657 
 
436 
472 
510 
Markets 
1,408 
 
896 
1,094 
1,388 
1,466 
 
971 
1,031 
1,328 
Banking fees 
481 
 
458 
501 
580 
548 
 
529 
420 
658 
Corporate lending 
296 
 
312 
377 
387 
285 
 
334 
334 
288 
Transactional banking 
408 
 
415 
419 
416 
413 
 
404 
420 
385 
Banking 
1,185 
 
1,185 
1,297 
1,383 
1,246 
 
1,267 
1,174 
1,331 
Other 
 
16 
(17)
495 
 
(4)
460 
20 
Total income 
2,596 
 
2,097 
2,374 
3,266 
2,713 
 
2,234 
2,665 
2,679 
Credit impairment (charges)/releases and other provisions 
(95)
 
(83)
(75)
(42)
 
(26)
(24)
(13)
Total operating expenses 
(1,800)
 
(1,962)
(1,940)
(1,605)
(2,422)
 
(2,614)
(2,036)
(1,791)
Profit/(loss) before tax  
701 
 
52 
358 
1,620 
292 
 
(408)
606 
876 
  
 
 
       
 
     
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Risk weighted assets  
172.6 
 
167.3 
177.4 
170.0 
177.1 
 
175.2 
180.5 
173.8 
  
 
 
       
 
     
Performance measures 
 
 
       
 
     
Return on average tangible equity 
7.3%
 
(2.5%)
4.5%
22.3%
(2.5%)
 
(12.8%)
6.1%
7.7%
Average allocated tangible equity (£bn) 
21.6 
 
21.8 
21.7 
21.7 
22.3 
 
22.5 
21.6 
21.9 

Excluding notable items, the Corporate and Investment Bank return on average tangible equity was 7.3% (Q115: 10.7%).

Consumer, Cards and Payments 
 
 
       
 
     
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income 
917 
 
871 
849 
836 
741 
 
711 
705 
688 
Credit impairment charges and other provisions 
(174)
 
(219)
(160)
(165)
(179)
 
(190)
(153)
(138)
Total operating expenses 
(425)
 
(449)
(421)
(434)
(359)
 
(434)
(377)
(339)
Profit before tax 
326 
 
210 
278 
250 
218 
 
93 
185 
235 
  
 
 
       
 
     
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost 
32.9 
 
32.1 
30.6 
29.6 
29.8 
 
29.7 
28.4 
27.0 
Customer deposits 
44.2 
 
41.8 
39.8 
38.4 
40.1 
 
37.9 
37.1 
33.1 
  
 
 
       
 
     
Performance measures 
 
 
       
 
     
Return on average tangible equity 
23.4%
 
15.3%
24.7%
23.4%
17.5%
 
6.6%
17.3%
24.4%

Excluding notable items, the Consumer, Cards and Payments return on average tangible equity was 23.4% (Q115: 11.8%).

Head Office 
 
 
 
       
 
     
  
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income 
(33)
 
(285)
169 
312 
142 
 
(36)
100 
15 
Credit impairment releases/(charges) and other provisions   
 
(1)
 
Net operating (expenses)/income 
(32)
 
(285)
170 
311 
142 
 
(36)
100 
15 
Operating expenses 
(85)
 
(64)
(110)
(64)
(34)
 
(21)
(10)
(28)
UK bank levy 
 
(8)
 
(9)
Litigation and conduct 
(7)
 
(17)
(42)
(6)
(1)
 
(7)
(4)
(42)
Total operating expenses 
(92)
 
(89)
(152)
(70)
(35)
 
(37)
(14)
(70)
Other net income/(expenses) 
 
(14)
(95)
 
314 
(Loss)/profit before tax  
(123)
 
(388)
20 
242 
12 
 
(70)
400 
(55)
Attributable (loss)/profit 
(92)
 
(140)
(1)
180 
(28)
 
47 
226 
33 
  
 
 
       
 
     
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Total assets
63.4 
 
59.4 
61.8 
62.2 
63.6 
 
61.0 
68.5 
69.0 
Risk weighted assets
40.3 
 
39.7 
41.3 
41.0 
43.1 
 
41.8 
41.6 
40.9 
  
 
 
       
 
     
Notable items 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Own credit 
(109)
 
(175)
195 
282 
128 
 
(62)
44 
(67)
Provisions for ongoing investigations and litigation including Foreign Exchange 
 
(23)
(29)
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses 
 
(15)
(97)
 
315 

1
Includes Africa Banking assets held for sale and risk weighted assets.

 
Discontinued Operation
 
On 1 March 2016, Barclays announced its intention to sell down the Group’s 62.3% interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required.

The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the market capitalisation of BAGL to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays’ stake in BAGL would also be recognised through these lines.

Africa Banking
 
 
 
       
 
     
  
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Q314
Q214
Income statement information 
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Total income net of insurance claims  
818 
 
814 
822 
870 
908 
 
925 
895 
860 
Credit impairment charges and other provisions 
(111)
 
(93)
(66)
(103)
(91)
 
(79)
(74)
(99)
Net operating income 
707 
 
721 
756 
767 
817 
 
846 
821 
761 
Operating expenses 
(477)
 
(501)
(515)
(536)
(539)
 
(585)
(557)
(534)
UK bank levy 
 
(50)
 
(44)
Litigation and conduct 
 
 
(1)
(1)
Total operating expenses 
(477)
 
(551)
(515)
(536)
(539)
 
(630)
(558)
(534)
Other net income 
 
 
Profit before tax  
231 
 
173 
242 
232 
280 
 
218 
264 
229 
Profit after tax 
166 
 
101 
168 
161 
196 
 
167 
171 
147 
Attributable profit 
86 
 
25 
85 
88 
104 
 
85 
82 
75 
  
 
 
       
 
     
Balance sheet information 
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
Total assets 
52.7 
 
47.9 
50.2 
52.2 
55.9 
 
53.7 
52.9 
50.8 
Risk weighted assets 
33.9 
 
31.7 
33.8 
34.4 
37.3 
 
36.7 
36.2 
34.9 

 
Performance Management

Returns and equity by business