6-K

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

October 24, 2018

 

 

Barclays PLC

Q3 2018 Results Announcement

 

 

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 is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):         

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):         

 

 

 

 

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THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENTS ON FORM S-8 (NO. 333-153723, 333-167232, 333-173899, 333-183110, 333-195098, 333-216361 AND 333-225082) AND FORM F-3 (333-223156) OF BARCLAYS PLC AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED. 

 

 

 

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The Report comprises the following:

 

Exhibit 99.1

  

Results of Barclays PLC Group as of, and for the nine months ended, 30 September 2018.

Exhibit 99.2

  

A table setting forth the issued share capital of Barclays PLC and the Barclays PLC Group’s total shareholders’ equity, indebtedness and contingent liabilities as at 30 June 2018, the most recent reported statement of position, and updated for any significant or material items since that reporting date.

 

 

 

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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 authorised.

 

        BARCLAYS PLC
        (Registrant)

Date: October 24, 2018

 

 

    By:      

/s/ Garth Wright

        Name: Garth Wright
        Title: Assistant Secretary

 

 

 

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Exhibit 99.1

Barclays PLC

This exhibit includes portions from the previously published Results Announcement of Barclays PLC relating to the nine months ended 30 September 2018, as amended in part to comply with the requirements of Regulation G and Item 10(e) of Regulation S-K promulgated by the US Securities and Exchange Commission (SEC), including the reconciliation of certain financial information to comparable measures prepared in accordance with International Financial Reporting Standards (IFRS). The purpose of this document is to provide such additional disclosure as required by Regulation G and Regulation S-K item 10(e), to delete certain information not in compliance with SEC regulations and to include reconciliations of certain non-IFRS figures to the most directly equivalent IFRS figures for the periods presented. This document does not update or otherwise supplement the information contained in the previously published Results Announcement. Any reference to a website in this document is made for informational purposes only, and information found at such websites is not incorporated by reference into this document.

An audit opinion has not been rendered in respect of this document.

 

 

 

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Notes

 

 

The terms Barclays or Barclays Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2018 to the corresponding nine months of 2017 and balance sheet analysis as at 30 September 2018 with comparatives relating to 31 December 2017 and 30 September 2017. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; the abbreviations ‘m’ and ‘bn’ represent millions and thousands of millions of Euros respectively.

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the date these interim results were approved.

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/results.

The information in this announcement, which was approved by the Board of Directors on 23 October 2018, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2017, 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.

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 Barclays 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 Barclays 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 43 to 54 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

– Attributable profit excluding litigation and conduct represents attributable profit excluding litigation and conduct charges. The comparable IFRS measure is attributable profit. A reconciliation is provided on pages 45-51;

– Average allocated equity represents the average shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is average equity. A reconciliation is provided on page 52;

– Average allocated tangible equity is 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. Period end allocated tangible equity is calculated as 13.0% (2017: 12.0%) of risk weighted assets 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 Barclays Group’s tangible shareholders’ equity and the amounts allocated to businesses. The comparable IFRS measure is average equity. A reconciliation is provided on page 52;

– Average tangible shareholders’ equity is 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. The comparable IFRS measure is average equity. A reconciliation is provided on page 52;

– Basic earnings per share excluding litigation and conduct is calculated by dividing statutory profit after tax attributable to ordinary shareholders excluding litigation and conduct charges, including an adjustment for the tax credit in reserves in respect of other equity instruments, by the basic weighted average number of shares. The comparable IFRS measure is basic earnings per share. A reconciliation is provided on pages 45-47;

– Cost: income ratio excluding litigation and conduct represents operating expenses excluding litigation and conduct charges, divided by total income. The comparable IFRS measure is cost: income ratio. A reconciliation is provided on pages 45-49;

– Operating expenses excluding litigation and conduct represents operating expenses excluding litigation and conduct charges. The comparable IFRS measure is operating expenses. A reconciliation is provided on pages 45-49;

– Profit before tax excluding litigation and conduct represents profit before tax excluding litigation and conduct charges. The comparable IFRS measure is profit before tax. A reconciliation is provided on page 45-51;

– Return on average allocated equity represents the return on shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is return on equity. A reconciliation is provided on page 53;

– Return on average allocated tangible equity is calculated as the annualised profit after tax attributable to ordinary equity holders of the parent, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is provided on page 53;

 

 

 

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Notes

 

 

 

– Return on average allocated tangible equity excluding litigation and conduct is calculated as the annualised profit after tax attributable to ordinary equity holders of the parent excluding litigation and conduct charges, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is provided on page 54;

– Return on average tangible shareholders’ equity is calculated as the annualised profit after tax attributable to ordinary equity holders of the parent, including an adjustment for the tax credit in reserves in respect of other equity instruments, 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 comparable IFRS measure is return on equity. A reconciliation is provided on page 53; and

– Tangible net asset value per share is 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 51.

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 Barclays 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 or relating to the Barclays 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 9 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. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards including the implementation of IFRS 9, 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 entities within the Barclays Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; instability as a result of the exit by the United Kingdom from the European Union and the disruption that may subsequently result in the UK and globally; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Barclays Group’s control. As a result, the Barclays 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 Barclays Group’s forward-looking statements. Additional risks and factors which may impact the Barclays 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 2017), 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.

 

 

 

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Performance Highlights

 

 

 

 

Barclays Group profit before tax was £3,120m (Q317 YTD: £3,448m), which included litigation and conduct charges of £2.1bn (Q317 YTD: £0.8bn) principally related to a £1.4bn settlement with the US Department of Justice (DoJ) with regard to Residential Mortgage-Backed Securities (RMBS) and charges of £400m (Q317 YTD: £700m) due to Payment Protection Insurance (PPI) in Q118

 

 

Excluding litigation and conduct charges, Group profit before tax increased 23% to £5,267m despite the adverse effect of the 5% depreciation of average USD against GBP. This increase in profit before tax was driven by a 53% improvement in credit impairment charges, primarily reflecting improved consensus-based macroeconomic forecasts in the UK and US, single name recoveries in wholesale banking and portfolio adjustments as IFRS 9 continues to embed, and a 3% reduction in operating expenses

 

 

Barclays UK profit before tax increased to £1,566m (Q317 YTD: £1,295m). Excluding litigation and conduct, profit before tax increased 2% to £2,034m reflecting a 12% reduction in impairment charges and stable income, partially offset by a 2% increase in operating expenses reflecting continued investment in digitisation. Return on equity (RoE) was 9.4% (Q317 YTD: 6.2%). Return on tangible equity (RoTE) was 18.9% (Q317 YTD: 19.8%) excluding litigation and conduct

 

 

Barclays International profit before tax increased to £3,560m (Q317 YTD: £3,269m), driven by a 73% decrease in credit impairment charges, while income declined 2%, mainly due to prior year one-offs in Consumer, Cards and Payments. RoE was 10.8% (Q317 YTD: 9.1%), Corporate and Investment Bank RoE was 9.5% (Q317 YTD: 8.0%) and Consumer, Cards and Payments RoE was 17.0% (Q317 YTD: 14.1%). RoTE excluding litigation and conduct was 11.6% (Q317 YTD: 10.1%), reflecting improved returns in both the Corporate and Investment Bank (CIB) and Consumer, Cards and Payments of 9.7% and 21.7% (Q317 YTD: 8.4% and 19.4%) respectively

 

 

Attributable profit was £1,470m (Q317 YTD: loss of £628m) and basic earnings per share was 9.4p (Q317 YTD: loss per share of 3.0p). Excluding litigation and conduct, earnings per share was 21.6p (Q317 YTD: 1.7p)

 

 

Net asset value (NAV) per share was 306p (December 2017: 322p)

 

 

Tangible net asset value (TNAV) per share was 260p (December 2017: 276p) as 21.6p of earnings per share, excluding litigation and conduct, was more than offset by 4.5p per share paid in dividends, the impact of the implementation of IFRS 9 and litigation and conduct charges. TNAV per share increased 1p in the quarter

 

 

The CET1 ratio was 13.2% (December 2017: 13.3%), principally reflecting capital generation from profits offset by a c.65bps impact from litigation and conduct charges and c.40bps from dividends paid and foreseen. The CET1 ratio increased 20bps in the quarter from 13.0% at June 2018

 

 

 

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Performance Highlights

 

 

 

Barclays Group results

for the nine months ended

   30.09.18      30.09.17         
       £m        £m        % Change  

Total income

     16,063         16,054          

Credit impairment charges and other provisions

     (825)        (1,763)        53   

Net operating income

     15,238         14,291          
Operating expenses excluding litigation and conduct      (10,003)        (10,263)         

Litigation and conduct1

     (2,147)        (824)           

Operating expenses

     (12,150)        (11,087)        (10)  

Other net income

     32         244         (87)  

Profit before tax

     3,120         3,448         (10)  

Tax charge

     (977)        (1,102)        11   

Profit after tax in respect of continuing operations

     2,143         2,346         (9)  
Loss after tax in respect of discontinued operation             (2,195)     
Non-controlling interests in respect of continuing operations      (151)        (181)        17   
Non-controlling interests in respect of discontinued operation             (140)     

Other equity instrument holders2

     (522)        (458)        (14)  

Attributable profit/(loss)

     1,470         (628)     

Performance measures

                          

Return on average shareholders’ equity2

     4.1%        (1.2%)     

Return on average tangible shareholders’ equity2

     4.9%        (1.4%)     

Average shareholders’ equity (£bn)

     51.9         57.6      

Average tangible shareholders’ equity (£bn)

     44.1         49.2      

Cost: income ratio

     76%        69%     

Loan loss rate (bps)

     33         55      

Basic earnings/(loss) per share2

     9.4p        (3.0p)     

Dividend per share

     2.5p        1.0p     

Performance measures excluding litigation and conduct1

                       % Change  

Profit before tax

     5,267         4,272         23   

Attributable profit

     3,544         171      

Return on average shareholders’ equity2

     9.5%        0.7%     

Return on average tangible shareholders’ equity2

     11.1%        0.8%     

Cost: income ratio

     62%        64%     

Basic earnings per share2

     21.6p        1.7p     

Balance sheet and capital management3

    

As at

30.09.18

£bn


 

 

    

As at

31.12.17

£bn


 

 

    

As at

30.09.17

£bn


 

 

Net asset value per share

     306p        322p        327p  

Tangible net asset value per share

     260p        276p        281p  

Common equity tier 1 ratio4

     13.2%        13.3%        13.1%  

Common equity tier 1 capital

     41.7         41.6         42.3   

Risk weighted assets

     316.2         313.0         324.3   

Average UK leverage ratio

     4.6%        4.9%        4.9%  

Average tier 1 capital

     51.8         51.2         51.2   

Average UK leverage exposure

     1,119         1,045         1,035   
Funding and liquidity                        

Group liquidity pool

     213         220         216   

CRD IV liquidity coverage ratio

     161%        154%        157%  

Loan: deposit ratio

     83%        81%        80%  

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

2

The profit after tax attributable to other equity instrument holders of £522m (Q317 YTD: £458m) is offset by a tax credit recorded in reserves of £141m (Q317 YTD: £125m). The net amount of £381m (Q317 YTD: £333m), along with non-controlling interests, is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.

3

Capital, RWAs and leverage measures are calculated applying the transitional arrangements of the Capital Requirements Regulation (CRR). This includes IFRS 9 transitional arrangements.

4

The fully loaded CET1 ratio was 12.8%, with £40.5bn of CET1 capital and £316bn of RWAs, calculated without applying the transitional arrangements of the CRR.

 

 

 

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Group Performance Review

 

 

Group performance

 

 

Profit before tax was £3,120m (Q317 YTD: £3,448m). Excluding litigation and conduct charges, profit before tax increased 23% to £5,267m driven by a 53% improvement in credit impairment charges and a 3% reduction in operating expenses. The 5% depreciation of average USD against GBP adversely impacted profits and income, and positively impacted credit impairment charges and operating expenses

 

 

Total income was £16,063m (Q317 YTD: £16,054m). Barclays UK income was stable, while Barclays International income declined 2% reflecting stable income in CIB and a 7% reduction in Consumer, Cards and Payments, primarily due to prior year one-off gains as a result of management de-risking actions. Head Office income was a net expense of £262m (Q317 YTD: income of £8m), and the Group benefited from the non-recurrence of negative income associated with the former Non-Core division, which was closed on 1 July 2017

 

 

Credit impairment charges decreased 53% to £825m primarily due to improved consensus-based macroeconomic forecasts in the UK and US, single name recoveries in wholesale banking, portfolio adjustments as IFRS 9 continues to embed, and the impact of repositioning the US cards portfolio towards a lower risk mix. The Barclays Group loan loss rate was 33bps (Q317 YTD: 55bps)

 

 

Barclays adopted IFRS 9, Financial Instruments from 1 January 2018, requiring the recognition of impairment earlier in the lifecycle of a product having considered forward-looking information. As experienced in the year to date, the impairment measurement and resulting charge has been more volatile in response to the impacts from an improved consensus-based macroeconomic outlook, higher than expected seasonality and single name recoveries. These impacts are not expected to repeat in a stable economic and credit environment. In addition, the year to date impairment charge included a non-recurring reduction from portfolio adjustments as IFRS 9 continues to be embedded within our business as usual process and controls including the performance of impairment models

 

 

The cost: income ratio was 76% (Q317 YTD: 69%)

 

 

Operating expenses of £12,150m (Q317 YTD: £11,087m) included litigation and conduct charges of £2,147m (Q317 YTD: £824m), excluding which, operating expenses reduced to £10,003m (Q317 YTD: £10,263m). This 3% reduction reflected the non-recurrence of costs associated with the former Non-Core division, while costs increased 2% in Barclays UK and were stable in Barclays International primarily due to investments in businesses and digitising the bank. The cost: income ratio, excluding litigation and conduct, reduced to 62% (Q317 YTD: 64%)

 

 

Other net income declined to £32m (Q317 YTD: £244m) primarily reflecting the non-recurrence of gains on the sales of Barclays’ share in VocaLink and a joint venture in Japan in Q217

 

 

The effective tax rate was 31.3% (Q317 YTD: 32.0%). Excluding litigation and conduct, the underlying effective tax rate was 20.0% (Q317 YTD: 26.4%), with the year-on-year reduction primarily due to the reduction in the US federal corporate income tax rate under the US Tax Cuts and Jobs Act and the beneficial impact of adjustments to prior periods recognised in 2018. The Group’s underlying effective rate for the full year 2018 and future periods is expected to be in the mid-20 percents

 

 

RoE was 4.1% (Q317 YTD: negative 1.2%) and earnings per share was 9.4p (Q317 YTD: loss per share of 3.0p)

 

 

RoTE was 11.1% (Q317 YTD: 0.8%) and earnings per share was 21.6p (Q317 YTD: 1.7p), excluding litigation and conduct

 

 

NAV per share was 306p (December 2017: 322p)

 

 

TNAV per share was 260p (December 2017: 276p) as 21.6p of earnings per share, excluding litigation and conduct, was more than offset by 4.5p per share paid in dividends, the impact of the implementation of IFRS 9 and litigation and conduct charges in Q118. TNAV per share increased 1p in the quarter

Barclays UK

 

 

RoE was 9.4% (Q317 YTD: 6.2%)

 

 

RoTE excluding litigation and conduct decreased to 18.9% (Q317 YTD: 19.8%). Including PPI charges of £400m (Q317 YTD: £700m) RoTE was 12.7% (Q317 YTD: 9.4%)

 

 

Total income was stable at £5,520m (Q317 YTD: £5,513m)

 

   

Personal Banking income decreased 3% to £3,008m reflecting the non-recurrence of a valuation gain on Barclays’ preference shares in Visa Inc. in Q117 and the realignment of clients from Barclays UK to Barclays International as part of structural reform

 

   

Barclaycard Consumer UK income increased 3% to £1,582m

 

   

Business Banking income increased 5% to £930m driven by the realignment of clients from Barclays International to Barclays UK, as part of structural reform, partially offset by the non-recurrence of the Visa gain

 

   

Net interest margin decreased 31bps to 3.24% reflecting the integration of the Education, Social Housing and Local Authority (ESHLA) portfolio and margin pressure

 

 

 

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Group Performance Review

 

 

 

 

Credit impairment charges decreased 12% to £530m due to improved consensus-based macroeconomic forecasts, partially offset by one-off charges in Business Banking. The 30 and 90 day arrears rates in UK cards remained stable at 1.8% (Q317: 1.8%) and 0.9% (Q317: 0.9%) respectively

 

 

Operating expenses were £3,429m. The cost: income ratio was 62% (Q317 YTD: 66%)

 

 

Operating expenses excluding litigation and conduct increased 2% to £2,961m as continued investment in digitising the bank and inflationary pressures were partially offset by lower costs of setting up the ring-fenced bank and cost efficiencies. The cost: income ratio excluding litigation and conduct was 54% (Q317 YTD: 53%)

 

 

RoTE excluding litigation and conduct decreased to 18.9% (Q317 YTD: 19.8%) driven by the integration of the ESHLA portfolio, partially offset by an increase in profit before tax of 2% to £2,034m

 

 

RWAs increased to £74.8bn (December 2017: £70.9bn) primarily due to regulatory methodology changes for the ESHLA portfolio and growth in the mortgage book

Barclays International

 

 

Profit before tax was £3,560m. RoE was 10.8% (Q317 YTD: 9.1%). CIB RoE was 9.5% (Q317 YTD: 8.0%) and Consumer, Cards and Payments RoE was 17.0% (Q317 YTD: 14.1%)

 

 

Profit before tax excluding litigation and conduct increased 11% to £3,654m resulting in a double digit RoTE of 11.6% (Q317 YTD: 10.1%), reflecting improved returns in both CIB, and Consumer, Cards and Payments of 9.7% and 21.7% (Q317 YTD: 8.4% and 19.4%) respectively

 

 

The 5% depreciation of average USD against GBP adversely impacted profits and income, and positively impacted credit impairment charges and operating expenses

 

 

Total income decreased 2% to £10,805m

 

   

CIB income was stable at £7,614m (Q317 YTD: £7,626m) as a 12% increase in Markets income to £3,955m was offset by a 7% decrease in Banking income to £3,756m

 

   

FICC income increased 1% to £2,293m as continued strong performance in foreign exchange was offset by a decline in credit income

 

   

Equities income increased 31% to £1,662m reflecting an improved performance in derivatives from increased client activity and a continued strong performance in equity financing

 

   

Banking fee income decreased 5% to £1,906m, following a strong Q317 YTD. Banking global fee share for Q318 YTD increased since FY17

 

   

Corporate lending income declined 23% to £635m driven by lower lending balances, including the redeployment of RWAs within CIB, and the realignment of clients between Barclays UK and Barclays International as part of structural reform

 

   

Transaction banking income was stable at £1,215m (Q317 YTD: £1,221m) as growth in deposits and transactions was offset by the impact of the realignment of clients between Barclays UK and Barclays International as part of structural reform

 

   

Consumer, Cards and Payments income decreased 7% to £3,191m driven by the non-recurrence of a £192m gain relating to an asset sale in US cards in Q117, a £74m valuation gain on Barclays’ preference shares in Visa Inc. in Q117 and a negative £41m revaluation of the same shares in Q318, partially offset by continued underlying growth in US cards and a £53m gain on sale of a US cards portfolio in Q218

 

 

Credit impairment charges decreased 73% to £304m including portfolio adjustments as IFRS 9 continues to embed

 

   

CIB credit impairment charges decreased to a release of £185m (Q317 YTD: charge of £86m) primarily due to single name recoveries and improved consensus-based macroeconomic forecasts

 

   

Consumer, Cards and Payments credit impairment charges decreased 53% to £489m reflecting the non-recurrence of a £168m charge in Q317 relating to deferred consideration from the Q117 asset sale in US cards, improved consensus-based macroeconomic forecasts in the US, the impact of repositioning the US cards portfolio towards a lower risk mix and repayment of certain US card balances following higher than expected seasonality in Q218

 

 

Operating expenses increased 1% to £6,977m

 

   

CIB operating expenses decreased 1% to £5,303m reflecting the reduction of structural reform costs, and the reduced impact of the change in compensation awards introduced in Q416, offset by continued investment

 

   

Consumer, Cards and Payments operating expenses increased 8% to £1,674m. Excluding litigation and conduct operating expenses increased 5% to £1,625m including continued growth and investment, primarily within the US cards and merchant acquiring businesses

 

 

Other net income decreased to £36m (Q317 YTD: £233m) due to the non-recurrence of a gain of £109m on the sale of Barclays’ share in VocaLink to MasterCard and a gain of £76m on the sale of a joint venture in Japan in Q217

 

 

RWAs increased to £214.6bn (December 2017: £210.3bn) driven by the appreciation of period end USD against GBP and increased lending in Consumer, Cards and Payments

 

 

 

   Barclays PLC   10   LOGO     


Group Performance Review

 

 

 

Head Office

 

 

Loss before tax was £2,006m (Q317 YTD: £469m) driven by litigation and conduct charges of £1,585m (Q317 YTD: £76m) primarily related to the £1.4bn settlement with the US DoJ relating to RMBS. Excluding litigation and conduct, loss before tax was £421m (Q317 YTD: £393m)

 

 

Total income reduced to an expense of £262m (Q317 YTD: income of £8m) reflecting certain legacy capital instrument funding costs of £263m now charged to Head Office, hedge accounting and an increased net expense from treasury operations. This was partially offset by a one-off gain of £155m from the settlement of receivables relating to the Lehman Brothers acquisition

 

 

Operating expenses were £1,744m (Q317 YTD: £277m)

 

 

Operating expenses excluding litigation and conduct reduced to £159m (Q317 YTD: £201m) driven by lower costs associated with legacy Non-Core assets and businesses, which were integrated on 1 July 2017

 

 

Other net expenses were £9m (Q317 YTD: £186m) due to the non-recurrence of a £180m expense in Q217 on the recycling of the currency translation reserve to the income statement on the sale of Barclays Bank Egypt

 

 

RWAs decreased to £26.8bn (December 2017: £31.8bn) reflecting the net reduction due to Barclays Africa Group Limited (BAGL) regulatory deconsolidation

Group capital and leverage

 

 

Barclays’ CET1 ratio decreased to 13.2% (December 2017: 13.3%) due to an increase in RWAs of £3.2bn to £316.2bn whilst CET1 capital increased by £0.1bn to £41.7bn

 

 

The increase in RWAs reflected appreciation of period end USD against GBP, increased lending in Consumer, Cards and Payments and regulatory methodology changes for the ESHLA portfolio in Barclays UK, offset by the net reduction due to BAGL regulatory deconsolidation

 

 

£2bn of organic capital generation from profits, after absorbing the impacts of litigation and conduct charges, was largely offset by £1.2bn of regulatory deductions for dividends paid and foreseen and £0.5bn of pension deficit contributions

 

 

The average UK leverage ratio decreased to 4.6% (December 2017: 4.9%) primarily driven by increased exposures due to securities financing transactions (SFTs) and trading portfolio assets

Group funding and liquidity

 

 

The Barclays Group continued to maintain surpluses to its internal and regulatory liquidity requirements. The liquidity pool decreased to £213bn (December 2017: £220bn) driven largely by the deployment of funding to support business growth. The liquidity coverage ratio (LCR) increased to 161% (December 2017: 154%), equivalent to a surplus of £80bn (December 2017: £75bn) to the 100% requirement, following a net decline in business stresses

 

 

Wholesale funding outstanding (excluding repurchase agreements) was £151bn (December 2017: £144bn). In the nine months to September 2018, Barclays Group issued £10bn of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in a range of different currencies. Barclays Bank PLC continued to issue in the shorter term markets and Barclays Bank UK PLC issued in the shorter term and secured markets, helping to maintain their stable and diversified funding bases. Notable issuances have included $3bn 3 year senior unsecured notes from Barclays Bank PLC and a £1.25bn 5 year covered bond from Barclays Bank UK PLC. Barclays Group has continued to reduce its reliance on short-term wholesale funding, where the proportion maturing in less than 1 year fell to 29% (December 2017: 31%)

Other matters

 

 

In Q118 Barclays reached a settlement with the US DoJ to resolve the civil complaint brought by the DoJ in December 2016 relating to RMBS sold by Barclays between 2005 and 2007. Barclays paid a civil monetary penalty of $2,000m (£1,420m)

 

 

Additional charges of £400m (Q317 YTD: £700m) relating to PPI were recognised in Q118 mainly as a result of continued higher complaints flow. The remaining PPI provision as at 30 September 2018 was £1.1bn (December 2017: £1.6bn) to cover claims through to the deadline of 29 August 2019. Management views its current PPI provision as appropriate, but will continue to closely monitor complaint trends and the associated provision adequacy

 

 

On 1 April 2018 Barclays successfully established its ring-fenced bank, Barclays Bank UK PLC, after receiving approval from the Prudential Regulation Authority (PRA) and the High Court of Justice of England and Wales to implement the ring-fencing transfer scheme under Part VII of the Financial Services Markets Act 2000

 

 

 

   Barclays PLC   11   LOGO     


Group Performance Review

 

 

 

 

The PRA agreed to Barclays fully deconsolidating BAGL for regulatory reporting purposes effective 30 June 2018. Barclays had been applying proportional consolidation for regulatory purposes since Q217. Barclays’ shareholding in BAGL of 14.9% is now treated as a 250% risk weighted asset

 

 

On 21 May 2018 Barclays announced that the Crown Court had dismissed all of the charges that had been brought by the Serious Fraud Office (SFO) against Barclays PLC and Barclays Bank PLC regarding matters which arose in the context of Barclays’ capital raisings in 2008. On 23 July 2018 the SFO made an application to the High Court seeking to reinstate against Barclays PLC and Barclays Bank PLC all of the charges dismissed by the Crown Court. Barclays is defending the application brought by the SFO before the High Court in late October

 

 

Following regulatory approval, Barclays is proceeding with the redemption of the $2.65bn 8.125% Series 5 Non-Cumulative Callable Dollar Preference Shares and $2bn 8.25% Additional Tier 1 (AT1) securities, to be effected on 15 December 2018. The redemptions will result in an ongoing earnings benefit, and will result in a pro-forma decrease of 33bps to the 30 September 2018 CET1 ratio due to these instruments being held on the balance sheet at historical FX rates

 

 

 

   Barclays PLC   12   LOGO     


Results by Business

 

 

 

Barclays UK

 

     Nine months ended
30.09.18
     Nine months ended
30.09.17
        
Income statement information    £m      £m      % Change  

Net interest income

     4,515         4,546         (1)  

Net fee, commission and other income

     1,005         967          

Total income

     5,520         5,513          

Credit impairment charges and other provisions

     (530)        (599)        12   

Net operating income

     4,990         4,914          

Operating expenses excluding litigation and conduct

     (2,961)        (2,913)        (2)  

Litigation and conduct1

     (468)        (706)        34   

Operating expenses

     (3,429)        (3,619)         

Other net income

                      

Profit before tax

     1,566         1,295         21   

Attributable profit

     926         608         52   
Balance sheet information   

As at 30.09.18

£bn

    

As at 31.12.17

£bn

     As at 30.09.17
£bn
 

Loans and advances to customers at amortised cost

     186.7         183.8         182.2   

Total assets

     252.0         237.4         230.4   

Customer deposits at amortised cost

     195.8         193.4         189.3   

Loan: deposit ratio

     96%        95%        97%  

Risk weighted assets

     74.8         70.9         70.0   
Performance measures    Nine months ended
30.09.18
     Nine months ended
30.09.17
         

Return on average allocated equity

     9.4%        6.2%     

Return on average allocated tangible equity

     12.7%        9.4%     

Average allocated equity (£bn)

     13.5         13.7      

Average allocated tangible equity (£bn)

     10.0         9.0      

Cost: income ratio

     62%        66%     

Loan loss rate (bps)

     37         43      

Net interest margin

     3.24%        3.55%     
Performance measures excluding litigation and conduct1    £m      £m      % Change  

Profit before tax

     2,034         2,001          

Attributable profit

     1,386         1,304          

Return on average allocated equity

     13.9%        13.0%     

Return on average allocated tangible equity

     18.9%        19.8%     

Cost: income ratio

     54%        53%     

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   13   LOGO     


Results by Business

 

 

 

Analysis of Barclays UK

 

    Nine months ended
30.09.18
    Nine months ended
30.09.17
       
Analysis of total income   £m     £m     % Change  

Personal Banking

    3,008        3,098        (3)  

Barclaycard Consumer UK

    1,582        1,532         

Business Banking

    930        883         

Total income

    5,520        5,513         
Analysis of credit impairment charges and other provisions                     

Personal Banking

    (129)       (165)       22   
Barclaycard Consumer UK     (340)       (417)       18   

Business Banking

    (61)       (17)          

Total credit impairment charges and other provisions

    (530)       (599)       12   
Analysis of loans and advances to customers at amortised cost   As at 30.09.18
£bn
    As at 31.12.17
£bn
    As at 30.09.17
£bn
 
Personal Banking     145.4        141.3        140.4   
Barclaycard Consumer UK     15.3        16.4        16.3   

Business Banking

    26.0        26.1        25.5   

Total loans and advances to customers at amortised cost

    186.7        183.8        182.2   
Analysis of customer deposits at amortised cost                     

Personal Banking

    153.4        153.1        152.1   
Barclaycard Consumer UK                  

Business Banking

    42.4        40.3        37.2   

Total customer deposits at amortised cost

    195.8        193.4        189.3   

 

 

 

   Barclays PLC   14   LOGO     


Results by Business

 

 

 

Barclays International

 

     Nine months ended
30.09.18
     Nine months ended
30.09.17
        
Income statement information    £m      £m      % Change  

Net interest income

     2,831         3,320         (15)  

Net trading income

     3,613         3,036         19   

Net fee, commission and other income

     4,361         4,707         (7)  

Total income

     10,805         11,063         (2)  

Credit impairment charges and other provisions

     (304)        (1,120)        73   

Net operating income

     10,501         9,943          
Operating expenses excluding litigation and conduct      (6,883)        (6,893)         

Litigation and conduct1

     (94)        (14)           

Operating expenses

     (6,977)        (6,907)        (1)  

Other net income

     36         233         (85)  

Profit before tax

     3,560         3,269          

Attributable profit

     2,513         2,015         25   
Balance sheet information   

As at 30.09.18

£bn

    

As at 31.12.17

£bn

     As at 30.09.17
£bn
 

Loans and advances at amortised cost

     132.4         126.8         134.4   

Trading portfolio assets

     124.6         113.0         91.2   

Derivative financial instrument assets

     214.8         236.2         242.8   

Derivative financial instrument liabilities

     213.7         237.8         242.9   

Financial assets at fair value through the income statement

     147.8         104.1         103.7   

Total assets

     900.2         856.1         867.1   

Deposits at amortised cost

     200.3         187.3         191.9   

Loan: deposit ratio

     66%        68%        70%  

Risk weighted assets

     214.6         210.3         218.2   
Performance measures    Nine months ended
30.09.18
     Nine months ended
30.09.17
         

Return on average allocated equity

     10.8%        9.1%     

Return on average allocated tangible equity

     11.3%        10.0%     

Average allocated equity (£bn)

     32.2         30.7      

Average allocated tangible equity (£bn)

     30.9         28.0      

Cost: income ratio

     65%        62%     

Loan loss rate (bps)

     30         67      

Net interest margin

     4.15%        4.10%     
Performance measures excluding litigation and conduct1    £m      £m      % Change  

Profit before tax

     3,654         3,283         11   

Attributable profit

     2,585         2,025         28   

Return on average allocated equity

     11.1%        9.2%     

Return on average allocated tangible equity

     11.6%        10.1%     

Cost: income ratio

     64%        62%     

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   15   LOGO     


Results by Business

 

 

 

Analysis of Barclays International

 

Corporate and Investment Bank

   Nine months ended
30.09.18
     Nine months ended
30.09.17
        
Income statement information    £m      £m      % Change  

FICC1

     2,293         2,268          

Equities

     1,662         1,267         31   

Markets

     3,955         3,535         12   

Banking fees

     1,906         2,007         (5)  

Corporate lending

     635         824         (23)  

Transaction banking

     1,215         1,221          

Banking

     3,756         4,052         (7)  

Other

     (97)        39            

Total income

     7,614         7,626          

Credit impairment releases/(charges) and other provisions

     185         (86)           

Net operating income

     7,799         7,540          

Operating expenses excluding litigation and conduct

     (5,258)        (5,346)         

Litigation and conduct2

     (45)        (12)           

Operating expenses

     (5,303)        (5,358)         

Other net income

     12         126         (90)  

Profit before tax

     2,508         2,308          
Balance sheet information   

As at 30.09.18

£bn

    

As at 31.12.17

£bn

     As at 30.09.17
£bn
 

Loans and advances at amortised cost

     93.3         88.2         95.4   
Deposits at amortised cost      137.6         128.0         133.4   

Risk weighted assets

     175.9         176.2         185.2   
Performance measures    Nine months ended
30.09.18
     Nine months ended
30.09.17
         

Return on average allocated equity

     9.5%        8.0%     
Return on average allocated tangible equity      9.6%        8.4%     

Average allocated equity (£bn)

     26.3         25.0      
Average allocated tangible equity (£bn)      26.0         23.8     
Performance measures excluding litigation and conduct2    £m      £m      % Change  

Profit before tax

     2,553         2,320         10   
Return on average allocated equity      9.6%        8.0%     

Return on average allocated tangible equity

     9.7%        8.4%     

 

1

Fixed income, currencies and commodities (FICC) is composed of Credit and Macro income.

2

Refer to pages 43 to 51 for more information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   16   LOGO     


Results by Business

 

 

 

Analysis of Barclays International

 

Consumer, Cards and Payments

   Nine months ended
30.09.18
     Nine months ended
30.09.17
        
Income statement information    £m      £m      % Change  

Total income

     3,191         3,437         (7)  

Credit impairment charges and other provisions

     (489)        (1,034)        53   

Net operating income

     2,702         2,403         12   

Operating expenses excluding litigation and conduct

     (1,625)        (1,547)        (5)  

Litigation and conduct1

     (49)        (2)           

Operating expenses

     (1,674)        (1,549)        (8)  

Other net income

     24         107         (78)  

Profit before tax

     1,052         961          
Balance sheet information   

As at 30.09.18

£bn

    

As at 31.12.17

£bn

     As at 30.09.17
£bn
 

Loans and advances at amortised cost

     39.1         38.6         39.0   

Deposits at amortised cost

     62.7         59.3         58.5   

Risk weighted assets

     38.7         34.1         33.0   
Performance measures    Nine months ended
30.09.18
     Nine months ended
30.09.17
         

Return on average allocated equity

     17.0%        14.1%     

Return on average allocated tangible equity

     20.7%        19.3%     

Average allocated equity (£bn)

     5.9         5.7      

Average allocated tangible equity (£bn)

     4.9         4.2      
Performance measures excluding litigation and conduct1    £m      £m      % Change  

Profit before tax

     1,101         963         14   
Return on average allocated equity      17.8%        14.2%     

Return on average allocated tangible equity

     21.7%        19.4%     

 

1

Refer to pages 43 to 51 for more information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   17   LOGO     


Results by Business

 

 

 

Head Office

 

     Nine months ended
30.09.18
     Nine months ended
30.09.17
        
Income statement information    £m      £m      % Change  

Net interest income

     (580)        (181)     

Net fee, commission and other income

     318         189         68   

Total income

     (262)            

Credit impairment releases/(charges) and other provisions

            (14)           

Net operating expenses

     (253)        (6)     
Operating expenses excluding litigation and conduct      (159)        (201)        21   

Litigation and conduct1

     (1,585)        (76)           

Operating expenses

     (1,744)        (277)     

Other net expenses

     (9)        (186)        95   

Loss before tax

     (2,006)        (469)     

Attributable loss

     (1,969)        (497)     
Balance sheet information   

As at 30.09.18

£bn

    

As at 31.12.17

£bn

     As at 30.09.17
£bn
 

Total assets

     18.6         39.7         51.7   

Risk weighted assets

     26.8         31.8         36.1   
Performance measures    Nine months ended
30.09.18
     Nine months ended
30.09.17
         

Average allocated equity (£bn)

     6.2         9.9      

Average allocated tangible equity (£bn)

     3.2         9.0      
Performance measures excluding litigation and conduct1    £m      £m      % Change  

Loss before tax

     (421)        (393)        (7)  

Attributable loss

     (427)        (424)        (1)  

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   18   LOGO     


Quarterly Results Summary

 

 

 

Barclays Group

 

     Q318      Q218      Q118             Q417      Q317      Q2171      Q1171      Q4161  
Income statement information    £m      £m      £m             £m      £m      £m      £m      £m  

Net interest income

     2,388         2,190         2,188            2,272         2,475         2,579         2,519         2,523   

Net fee, commission and other income

     2,741         3,386         3,170            2,750         2,698         2,479         3,304         2,469   

Total income

     5,129         5,576         5,358            5,022         5,173         5,058         5,823         4,992   

Credit impairment charges and other provisions

     (254)        (283)        (288)           (573)        (709)        (527)        (527)        (653)  

Net operating income

     4,875         5,293         5,070            4,449         4,464         4,531         5,296         4,339   

Operating expenses excluding UK bank levy and litigation and conduct

     (3,329)        (3,310)        (3,364)           (3,621)        (3,274)        (3,398)        (3,591)        (3,812)  

UK bank levy

                             (365)                             (410)  

Litigation and conduct2

     (105)        (81)        (1,961)           (383)        (81)        (715)        (28)        (97)  

Operating expenses

     (3,434)        (3,391)        (5,325)           (4,369)        (3,355)        (4,113)        (3,619)        (4,319)  

Other net income/(expenses)

     20         (7)        19            13         (2)        241                310   

Profit/(loss) before tax

     1,461         1,895         (236)           93         1,107         659         1,682         330   

Tax (charge)/credit

     (240)        (433)        (304)           (1,138)        (324)        (305)        (473)        50   

Profit/(loss) after tax in respect of continuing operations

     1,221         1,462         (540)           (1,045)        783         354         1,209         380   

(Loss)/profit after tax in respect of discontinued operation

                                           (1,537)        (658)        71   
Attributable to:                                                                       

Ordinary equity holders of the parent

     1,002         1,232         (764)           (1,294)        583         (1,401)        190         99   

Other equity instrument holders

     176         175         171            181         157         162         139         139   

Non-controlling interests in respect of continuing operations

     43         55         53            68         43         59         79         90   

Non-controlling interests in respect of discontinued operation

                                           (3)        143         123   
Balance sheet information    £bn      £bn      £bn             £bn      £bn      £bn      £bn      £bn  

Total assets

     1,170.8         1,149.6         1,142.2            1,133.2         1,149.3         1,135.3         1,203.8         1,213.1   

Net asset value per share

     306p         305p         296p            322p         327p         329p         341p         344p   

Tangible net asset value per share

     260p         259p         251p            276p         281p         284p         292p         290p   

Risk weighted assets

     316.2         319.3         317.9            313.0         324.3         327.4         360.9         365.6   

Average UK leverage exposure

     1,119.0         1,081.8         1,089.9            1,044.6         1,035.1         1,092.2         1,130.4         1,137.3   
Performance measures                                                                       

Return on average shareholders’ equity

     8.0%        10.0%        (5.5%)           (8.9%)        4.4%        (9.4%)        1.6%        1.0%  

Return on average tangible shareholders’ equity

     9.4%        11.8%        (6.5%)           (10.3%)        5.1%        (11.0%)        1.8%        1.1%  

Average shareholders’ equity (£bn)

     52.5         51.3         52.0            55.9         56.6         57.5         58.5         58.0   

Average tangible shareholders’ equity (£bn)

     44.6         43.5         44.2            48.1         48.9         49.3         49.4         48.9   

Cost: income ratio

     67%        61%        99%           87%        65%        81%        62%        87%  

Loan loss rate (bps)

     30         35         36            56         66         49         47         58   

Basic earnings/(loss) per share

     6.1p         7.5p         (4.2p)           (7.3p)        3.7p         (8.0p)        1.3p         0.8p   
Performance measures excluding litigation
and conduct2
   £m      £m      £m             £m      £m      £m      £m      £m  

Profit before tax

     1,566         1,976         1,725            476         1,188         1,374         1,710         427   

Attributable profit/(loss)

     1,087         1,291         1,166            (943)        660         (698)        209         151   

Return on average shareholders’ equity

     8.6%        10.4%        9.3%           (6.4%)        5.0%        (4.5%)        1.7%        1.3%  

Return on average tangible shareholders’ equity

     10.2%        12.3%        11.0%           (7.4%)        5.7%        (5.3%)        2.0%        1.6%  

Cost: income ratio

     65%        59%        63%           79%        63%        67%        62%        85%  

Basic earnings/(loss) per share

     6.6p         7.8p         7.1p            (5.3p)        4.1p         (3.8p)        1.5p         1.1p   

 

1

Results included Barclays Non-Core and the Africa Banking discontinued operation; refer to pages 26 to 27 for further detail.

2

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   19   LOGO     


Quarterly Results by Business

 

 

 

Barclays UK

 

     Q318      Q218      Q118             Q417      Q317      Q217      Q117             Q416  
Income statement information    £m      £m      £m             £m      £m      £m      £m             £m  

Net interest income

     1,529         1,493         1,493            1,540         1,501         1,534         1,511            1,502   

Net fee, commission and other income

     367         343         295            330         351         286         330            326   

Total income

     1,896         1,836         1,788            1,870         1,852         1,820         1,841            1,828   

Credit impairment charges and other provisions

     (115)        (214)        (201)           (184)        (201)        (220)        (178)           (180)  

Net operating income

     1,781         1,622         1,587            1,686         1,651         1,600         1,663            1,648   
Operating expenses excluding UK bank levy and litigation and conduct      (988)        (968)        (1,005)           (1,117)        (980)        (974)        (959)           (989)  

UK bank levy

                             (59)                                (48)  

Litigation and conduct1

     (54)        (3)        (411)           (53)        (11)        (699)        4           (28)  

Operating expenses

     (1,042)        (971)        (1,416)           (1,229)        (991)        (1,673)        (955)           (1,065)  

Other net income/(expenses)

                   (1)           (5)               (1)                   

Profit/(loss) before tax

     740         656         170            452         661         (74)        708            583   

Attributable profit/(loss)

     500         464         (38)           245         423         (285)        470            383   
Balance sheet information    £bn      £bn      £bn             £bn      £bn      £bn      £bn             £bn  

Loans and advances to customers at amortised cost

     186.7         185.3         184.3            183.8         182.2         166.6         164.5            166.4   

Total assets

     252.0         245.9         235.2            237.4         230.4         203.4         203.0            209.6   

Customer deposits at amortised cost

     195.8         194.3         192.0            193.4         189.3         187.4         184.4            189.0   

Loan: deposit ratio

     96%        96%        96%           95%        97%        89%        90%           89%  

Risk weighted assets

     74.8         75.0         72.5            70.9         70.0         66.1         66.3            67.5   
Performance measures                                                                              

Return on average allocated equity

     14.9%        13.9%        (0.8%)           7.8%        12.3%        (8.2%)        14.1%           11.8%  

Return on average allocated tangible equity

     20.1%        18.8%        (1.1%)           10.7%        18.4%        (12.7%)        21.6%           18.2%  

Average allocated equity (£bn)

     13.7         13.6         13.4            13.1         14.0         13.5         13.6            13.2   

Average allocated tangible equity (£bn)

     10.1         10.1         9.8            9.6         9.4         8.7         8.9            8.6   

Cost: income ratio

     55%        53%        79%           66%        54%        92%        52%           58%  

Loan loss rate (bps)

     24         45         43            39         43         52         43            42   

Net interest margin

     3.22%        3.22%        3.27%           3.32%        3.28%        3.70%        3.69%           3.56%  
Performance measures excluding litigation and
conduct1
   £m      £m      £m             £m      £m      £m      £m             £m  

Profit before tax

     794         659         581            505         672         625         704            611   

Attributable profit

     548         465         373            282         431         406         467            380   

Return on average allocated equity

     16.3%        13.9%        11.5%           9.0%        12.6%        12.3%        14.0%           11.7%  

Return on average allocated tangible equity

     22.0%        18.8%        15.7%           12.3%        18.7%        19.1%        21.5%           18.0%  

Cost: income ratio

     52%        53%        56%           63%        53%        54%        52%           57%  

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   20   LOGO     


Quarterly Results by Business

 

 

 

Analysis of Barclays UK

 

     Q318      Q218      Q118             Q417      Q317      Q217      Q117             Q416  
Analysis of total income    £m      £m      £m             £m      £m      £m      £m             £m  

Personal Banking

     1,021         1,015         972            1,116         1,022         1,033         1,043            1,045   

Barclaycard Consumer UK

     551         504         527            445         539         495         498            507   

Business Banking

     324         317         289            309         291         292         300            276   

Total income

     1,896         1,836         1,788            1,870         1,852         1,820         1,841            1,828   
Analysis of credit impairment (charges)/releases and other
provisions
                                                                             

Personal Banking

     (8)        (49)        (72)           (56)        (57)        (60)        (48)           (54)  

Barclaycard Consumer UK

     (88)        (139)        (113)           (124)        (145)        (149)        (123)           (118)  

Business Banking

     (19)        (26)        (16)           (4)               (11)        (7)           (8)  

Total credit impairment charges and other provisions

     (115)        (214)        (201)           (184)        (201)        (220)        (178)           (180)  
Analysis of loans and advances to customers at amortised cost    £bn      £bn      £bn             £bn      £bn      £bn      £bn             £bn  

Personal Banking

     145.4         143.6         142.1            141.3         140.4         138.6         136.6            138.5   

Barclaycard Consumer UK

     15.3         15.2         15.2            16.4         16.3         16.2         16.1            16.5   

Business Banking

     26.0         26.5         27.0            26.1         25.5         11.8         11.8            11.4   

Total loans and advances to customers at amortised cost

     186.7         185.3         184.3            183.8         182.2         166.6         164.5            166.4   
Analysis of customer deposits at amortised cost                                                                              

Personal Banking

     153.4         152.9         151.9            153.1         152.1         151.1         149.2            156.3   

Barclaycard Consumer UK

                                                             

Business Banking

     42.4         41.4         40.1            40.3         37.2         36.3         35.2            32.7   

Total customer deposits at amortised cost

     195.8         194.3         192.0            193.4         189.3         187.4         184.4            189.0   

 

 

 

   Barclays PLC   21   LOGO     


Quarterly Results by Business

 

 

 

Barclays International

 

     Q318      Q218      Q118             Q417      Q317      Q217      Q117             Q416  
Income statement information    £m      £m      £m             £m      £m      £m      £m             £m  

Net interest income

     965         853         1,013            987         1,148         1,060         1,112            1,046   

Net trading income

     1,103         1,094         1,416            935         815         1,039         1,182            1,131   

Net fee, commission and other income

     1,222         1,760         1,379            1,397         1,352         1,511         1,844            1,415   

Total income

     3,290         3,707         3,808            3,319         3,315         3,610         4,138            3,592   

Credit impairment charges and other provisions

     (143)        (68)        (93)           (386)        (495)        (279)        (346)           (426)  

Net operating income

     3,147         3,639         3,715            2,933         2,820         3,331         3,792            3,166   
Operating expenses excluding UK bank levy and litigation and conduct      (2,277)        (2,306)        (2,300)           (2,428)        (2,182)        (2,276)        (2,435)           (2,497)  

UK bank levy

                             (265)                                (284)  

Litigation and conduct1

     (32)        (47)        (15)           (255)        (5)               (13)           (17)  

Operating expenses

     (2,309)        (2,353)        (2,315)           (2,948)        (2,187)        (2,272)        (2,448)           (2,798)  

Other net income

     12         11         13            21         19         202         12             

Profit before tax

     850         1,297         1,413                   652         1,261         1,356            373   

Attributable profit/(loss)

     650         890         973            (1,168)        359         819         837            43   
Balance sheet information    £bn      £bn      £bn             £bn      £bn      £bn      £bn             £bn  

Loans and advances at amortised cost

     132.4         125.5         117.5            126.8         134.4         135.2         145.5            153.7   

Trading portfolio assets

     124.6         116.5         114.9            113.0         91.2         83.3         83.0            73.2   

Derivative financial instrument assets

     214.8         228.2         214.1            236.2         242.8         108.4         105.3            156.2   

Derivative financial instrument liabilities

     213.7         224.9         210.8            237.8         242.9         116.8         112.8            160.6   
Financial assets at fair value through the income statement      147.8         141.2         150.6            104.1         103.7         94.1         81.3            62.3   

Total assets

     900.2         886.5         866.6            856.1         867.1         681.6         677.2            648.5   

Deposits at amortised cost

     200.3         191.0         167.2            187.3         191.9         192.0         189.4            184.7   

Loan: deposit ratio

     66%        66%        70%           68%        70%        70%        77%           83%  

Risk weighted assets

     214.6         218.0         214.2            210.3         218.2         212.2         214.3            212.7   
Performance measures                                                                              

Return on average allocated equity

     8.5%        11.3%        12.8%           (15.1%)        5.0%        11.2%        11.3%           0.9%  

Return on average allocated tangible equity

     8.8%        11.8%        13.4%           (15.9%)        5.4%        12.4%        12.5%           1.0%  

Average allocated equity (£bn)

     32.5         32.8         31.4            29.9         31.5         30.1         30.5            29.5   

Average allocated tangible equity (£bn)

     31.1         31.4         30.1            28.5         28.9         27.4         27.7            26.6   

Cost: income ratio

     70%        63%        61%           89%        66%        63%        59%           78%  

Loan loss rate (bps)

     41         22         31            76         88         54         62            78   

Net interest margin

     3.87%        4.03%        4.57%           4.31%        4.21%        4.07%        4.06%           3.91%  
Performance measures excluding litigation and
conduct1
   £m      £m      £m             £m      £m      £m      £m             £m  

Profit before tax

     882         1,344         1,428            261         657         1,257         1,369            390   

Attributable profit/(loss)

     676         924         985            (918)        363         816         846            57   

Return on average allocated equity

     8.8%        11.7%        13.0%           (11.8%)        5.0%        11.2%        11.4%           1.1%  

Return on average allocated tangible equity

     9.2%        12.2%        13.6%           (12.4%)        5.5%        12.3%        12.6%           1.2%  

Cost: income ratio

     69%        62%        60%           81%        66%        63%        59%           77%  

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   22   LOGO     


Quarterly Results by Business

 

 

 

Analysis of Barclays International

 

Corporate and Investment Bank    Q318      Q218      Q118             Q417      Q317      Q217      Q117             Q416  
Income statement information    £m      £m      £m             £m      £m      £m      £m             £m  

FICC

     688         736         869            607         627         752         889            766   

Equities

     471         601         590            362         350         455         462            410   

Markets

     1,159         1,337         1,459            969         977         1,207         1,351            1,176   

Banking fees

     519         704         683            605         607         674         726            650   

Corporate lending

     197         198         240            269         277         278         269            303   

Transaction banking

     416         385         414            408         419         404         398            401   

Banking

     1,132         1,287         1,337            1,282         1,303         1,356         1,393            1,354   

Other

     (56)        (44)                                       38             

Total income

     2,235         2,580         2,799            2,252         2,280         2,564         2,782            2,531   

Credit impairment releases/(charges) and other provisions

            23         159            (127)        (36)               (51)           (90)  

Net operating income

     2,238         2,603         2,958            2,125         2,244         2,565         2,731            2,441   

Operating expenses excluding litigation and conduct

     (1,712)        (1,773)        (1,773)           (2,129)        (1,656)        (1,760)        (1,930)           (2,272)  

Litigation and conduct1

     (32)               (13)           (255)        (5)               (11)           (15)  

Operating expenses

     (1,744)        (1,773)        (1,786)           (2,384)        (1,661)        (1,756)        (1,941)           (2,287)  

Other net income

                                    10         116                    

Profit/(loss) before tax

     498         835         1,175            (252)        593         925         790            155   
Balance sheet information    £bn      £bn      £bn             £bn      £bn      £bn      £bn             £bn  

Loans and advances at amortised cost

     93.3         87.8         81.3            88.2         95.4         96.7         106.8            114.0   

Deposits at amortised cost

     137.6         130.3         107.6            128.0         133.4         134.1         131.0            134.0   

Risk weighted assets

     175.9         180.4         181.3            176.2         185.2         178.9         180.6            178.6   
Performance measures                                                                              

Return on average allocated equity

     6.6%        9.0%        12.9%           (19.9%)        5.7%        10.6%        7.8%           (1.1%)  

Return on average allocated tangible equity

     6.6%        9.1%        13.0%           (20.2%)        5.9%        11.1%        8.2%           (1.2%)  

Average allocated equity (£bn)

     26.2         26.7         25.9            24.7         25.8         24.4         24.8            24.0   

Average allocated tangible equity (£bn)

     25.9         26.4         25.6            24.3         24.8         23.3         23.5            22.6   
Performance measures excluding litigation and
conduct1
   £m      £m      £m             £m      £m      £m      £m             £m  

Profit before tax

     530         835         1,188                   598         921         801            170   

Return on average allocated equity

     7.0%        9.0%        13.0%           (15.8%)        5.8%        10.5%        7.9%           (0.9%)  

Return on average allocated tangible equity

     7.0%        9.1%        13.2%           (16.1%)        6.0%        11.1%        8.3%           (0.9%)  

 

1

Refer to pages 43 to 51 for further information and calculations of performance measures excluding litigation and conduct.

 

 

 

   Barclays PLC   23   LOGO     


Quarterly Results by Business

 

 

 

Analysis of Barclays International

 

Consumer, Cards and Payments    Q318      Q218      Q118             Q417      Q317      Q217      Q117             Q416  
Income statement information    £m      £m      £m             £m      £m      £m      £m             £m  

Total income

     1,055         1,127         1,009            1,067         1,035         1,046         1,356            1,061   

Credit impairment charges and other provisions

     (146)        (91)        (252)           (259)        (459)        (280)        (295)           (336)  

Net operating income

     909         1,036         757            808         576         766         1,061            725   

Operating expenses excluding litigation and conduct

     (565)        (533)        (527)           (564)        (526)        (516)        (505)           (509)  

Litigation and conduct1

            (47)        (2)                                (2)           (2)  

Operating expenses

     (565)        (580)        (529)           (564)        (526)        (516)        (507)           (511)  

Other net income

                   10            14                86         12             

Profit before tax

     352         462         238            258         59         336         566            218   
Balance sheet information    £bn      £bn      £bn             £bn      £bn      £bn      £bn             £bn  

Loans and advances at amortised cost

     39.1         37.7         36.2            38.6         39.0         38.5         38.7            39.7   

Deposits at amortised cost

     62.7         60.7         59.6            59.3         58.5         57.9         58.4            50.7   

Risk weighted assets

     38.7         37.6         32.9            34.1         33.0         33.3         33.7            34.1   
Performance measures                                                                              

Return on average allocated equity

     16.3%        21.6%        12.6%           7.1%        1.6%        14.1%        26.6%           9.6%  

Return on average allocated tangible equity

     19.8%