Blueprint
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
 
August 03, 2018
 
Barclays PLC
(Name of Registrant)
 
1 Churchill Place
London E14 5HP
England
(Address of Principal Executive Office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F
 
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 on Form 6-K is filed by Barclays PLC.
 
This Report comprises:
 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.
 
 
EXHIBIT INDEX
 
 
 
 
Half-year Report dated 02 August 2018
 
 


 
 
SIGNATURES
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
BARCLAYS PLC
 
(Registrant)
 
 
 
Date: August 03, 2018
 
 
 
By: /s/ Garth Wright
--------------------------------
 
Garth Wright
 
Assistant Secretary
 
 






 
 
Barclays PLC
Interim Results Announcement
 
30 June 2018
 
Table of Contents
 
Results Announcement
Page
Notes
1
Performance Highlights
2-3
Group Chief Executive Officer’s Review
4
Group Finance Director’s Review
5-7
Results by Business
 
Barclays UK
8-10
Barclays International
11-14
Head Office
15
Quarterly Results Summary
16
Quarterly Results by Business
17-22
Barclays Non-Core Results
23
Discontinued Operation Results
24
Performance Management
 
Margins and Balances
25
Risk Management
 
Risk Management and Principal Risks
26
Credit Risk
27-33
Market Risk
34
Treasury and Capital Risk
35-46
Statement of Directors’ Responsibilities
47
Independent Review Report to Barclays PLC
48
Condensed Consolidated Financial Statements
49-54
Financial Statement Notes
55-93
Appendix: Non-IFRS Performance Measures
94-102
Shareholder Information
103
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.
 
Notes 
 
The terms Barclays or Barclays Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the six months ended 30 June 2018 to the corresponding six months of 2017 and balance sheet analysis as at 30 June 2018 with comparatives relating to 31 December 2017 and 30 June 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 1 August 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.
 
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 at home.barclays/results 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 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 94 to 102 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.
 
Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the 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; the implications of the exercise by the United Kingdom of Article 50 of the Treaty of Lisbon and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; 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. 
 
 Performance Highlights
 
Strong financial performance with increased profitability, driving an 11.6% return on tangible equity and earnings per share of 14.9p for H118, excluding litigation and conduct charges
 
Returns1:
Barclays Group return on tangible equity (RoTE) of 11.6%, with double digit returns in both Barclays UK and Barclays International
Remain on track to achieve Barclays Group medium term RoTE targets of greater than 9% in 2019 and greater than 10% in 2020
 
Cost efficiency1:
Barclays Group operating expenses decreased 5% to £6.7bn, driving an improved cost: income ratio of 61% (H117: 64%)
Remain on track for guidance on Barclays Group operating expenses of £13.6-13.9bn in 2019
 
Capital and dividends:
Common equity tier 1 (CET1) ratio was 13.0% (December 2017: 13.3%), at the end- state target of c.13%, as organic capital generation from profits was more than offset by a c.60bps impact from litigation and conduct charges in Q118, and a £6.3bn increase in risk weighted assets (RWAs)
 
 
Declared a dividend of 2.5p per share for H118 and reiterate the intention to pay a dividend of 6.5p per share for 2018, subject to regulatory approvals
 
 
Barclays Group profit before tax was £1,659m (H117: £2,341m), which included litigation and conduct charges of £2.0bn (H117: £0.7bn) 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 (H117: £700m) due to Payment Protection Insurance (PPI)
Excluding litigation and conduct charges, Group profit before tax increased 20% to £3,701m despite the adverse effect of the 10% depreciation of average USD against GBP. This increase in profit before tax was driven by a 46% improvement in credit impairment charges, primarily reflecting single name recoveries in wholesale banking, the improved macroeconomic forecasts in the US, and portfolio adjustments as IFRS 9 continues to embed, and a 5% reduction in operating expenses, mainly in the Corporate and Investment Bank (CIB)
Barclays UK profit before tax increased to £826m (H117: £634m). Excluding litigation and conduct, RoTE was 17.3% (H117: 20.3%) as profit before tax declined 7% to £1,240m, reflecting a 2% increase in operating expenses due to continued investment in digitising the bank, a 1% decrease in income and a 4% increase in credit impairment charges
Barclays International profit before tax increased to £2,710m (H117: £2,617m), driving an RoTE of 12.6% (H117: 12.4%), with double digit returns in both CIB and Consumer, Cards and Payments. The 4% increase in profit before tax was driven by a 74% decrease in credit impairment charges and a 1% reduction in operating expenses, while income declined 3%
Attributable profit was £468m (H117: loss of £1,211m) and basic earnings per share was 3.3p (H117: loss per share of 6.6p). Excluding litigation and conduct, earnings per share was 14.9p (H117: loss per share of 2.4p)
Tangible net asset value (TNAV) per share was 259p (December 2017: 276p) as the impact of the implementation of IFRS 9, and litigation and conduct charges in Q118 more than offset profits in the half year
 
1
Excluding litigation and conduct, with returns targets based on a Barclays Group CET1 ratio of c.13%.
 
Barclays Group results 
for the half year ended
 
 
 
30.06.18
30.06.17
 
£m
£m
% Change
Total income
10,934
10,881
-
Credit impairment charges and other provisions
(571)
(1,054)
46
Net operating income 
10,363
9,827
5
Operating expenses excluding litigation and conduct
(6,674)
(6,989)
5
Litigation and conduct1
(2,042)
(743)
 
Operating expenses
(8,716)
(7,732)
(13)
Other net income
12
246
(95)
Profit before tax
1,659
2,341
(29)
Tax charge
(737)
(778)
5
Profit after tax in respect of continuing operations
922
1,563
(41)
Loss after tax in respect of discontinued operation
-
(2,195)
 
Non-controlling interests in respect of continuing operations
(108)
(138)
22
Non-controlling interests in respect of discontinued operation
-
(140)
 
Other equity instrument holders2
(346)
(301)
(15)
Attributable profit/(loss)
468
(1,211)
 
 
 
 
 
Performance measures
 
 
 
Return on average tangible shareholders' equity2
2.6%
(4.6%)
 
Average tangible shareholders' equity (£bn)
 43.8
49.4
 
Cost: income ratio
80%
71%
 
Loan loss rate (bps)
35
49
 
Basic earnings/(loss) per share2
3.3p
(6.6p)
 
Basic earnings per share in respect of continuing operations2
3.3p
7.1p
 
Dividend per share 
2.5p
1.0p
 
 
 
 
 
Performance measures excluding litigation and conduct1
 
 
 
Profit before tax
3,701
3,084
20
Attributable profit/(loss)
2,457
(489)
 
Return on average tangible shareholders' equity2
11.6%
(1.6%)
 
Cost: income ratio
61%
64%
 
Basic earnings/(loss) per share2
14.9p
(2.4p)
 
 
 
 
 
 
As at
As at
As at
 
30.06.18
31.12.17
30.06.17
Balance sheet and capital management3
£bn
£bn
£bn
Tangible net asset value per share
259p
276p
284p
Common equity tier 1 ratio4
13.0%
13.3%
13.1%
Common equity tier 1 capital
41.4
41.6
42.8
Risk weighted assets
319.3
313.0
327.4
Average UK leverage ratio
4.6%
4.9%
4.8%
Average tier 1 capital
49.7
51.2
52.1
Average UK leverage exposure
1,082
1,045
1,092
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool
214
220
201
CRD IV liquidity coverage ratio
154%
154%
149%
Loan: deposit ratio
83%
81%
82%
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
2
The profit after tax attributable to other equity instrument holders of £346m (H117: £301m) is offset by a tax credit recorded in reserves of £93m (H117: £82m). The net amount of £253m (H117: £219m), 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. For more information refer to the Barclays PLC Pillar 3 Report H1 2018, due to be published by 31 August 2018, located at home.barclays/results.
4
The fully loaded CET1 ratio was 12.6%, with £40.1bn of CET1 capital and £319.2bn of RWAs, calculated without applying the transitional arrangements of the CRR.
 
Group Chief Executive Officer’s Review
 
“The first half of 2018 has been characterised by strong financial performance and increased profitability.
 
Our Group return on tangible equity (RoTE) was 11.6% and profit before tax was £3.7bn, excluding litigation and conduct.
 
Barclays’ CET1 capital ratio was 13.0%, driven by strong organic earnings growth and the regulatory deconsolidation of Barclays Africa.
 
Within the Group numbers, Barclays UK produced a RoTE of 17.3% for the half, powered by good performances in Personal Banking and Business Banking. Barclays International delivered a RoTE of 12.9%, with strong profits in Consumer, Cards and Payments, as well as the returns in the Markets division of our Corporate and Investment Bank, being particular highlights.
 
The second quarter, where we generated a Group RoTE of 12.3%, underlines the growing pace of delivery at Barclays. This is a business which is performing well, having addressed the challenges of the last decade.
 
It was the first quarter for some time with no significant litigation or conduct charges, restructuring costs, or other exceptional expenses which hit our profitability. In effect then, it is the first clear sight of the statutory performance of the business which we have re-engineered over the past two and a half years – Barclays’ transatlantic consumer and wholesale bank – and it is a positive sight.
 
We are also pleased to see the burgeoning impact of our Group-wide Service Company’s focus on operational effectiveness, remaining on track for our cost target range for 2019 whilst also creating headroom to invest in growth.
 
This means we can begin to target opportunities to drive even better customer and client service, fuel top line growth and generate further efficiency gains.
 
This first half performance shows a bank beginning to demonstrate its true potential and value. The numbers we have posted strengthen our confidence that Barclays can deliver attractive and sustainable profits, and in our ability to return a greater proportion of those profits to shareholders over time.”
 
James E Staley, Group Chief Executive Officer
 
Group Finance Director’s Review
 
The Barclays Group delivered double digit RoTE of 11.6% in the first half of 2018, driven by returns of 17.3% in Barclays UK and 12.9% in Barclays International, excluding litigation and conduct. Stable income and a reduction in operating expenses, excluding litigation and conduct, drove positive jaws resulting in a Group cost: income ratio of 61% for the first half. Progress was made on resolving significant outstanding legacy litigation and conduct matters, with the settlement with the US DoJ regarding RMBS and charges relating to PPI in Q118, which impacted statutory profits, TNAV and capital.
 
Barclays is now well-positioned to deliver strong earnings going forward, and remains confident of achieving its returns and cost targets. An interim dividend of 2.5p was declared, and Barclays reiterates its intention to pay a total dividend of 6.5p for 2018, subject to regulatory approvals.
 
Group performance
 
Profit before tax was £1,659m (H117: £2,341m). Excluding litigation and conduct charges, profit before tax increased 20% to £3,701m driven by a 46% improvement in credit impairment charges and a 5% reduction in operating expenses. The 10% depreciation of average USD against GBP adversely impacted profits and income, and positively impacted credit impairment charges and operating expenses
Total income was broadly in line at £10,934m (H117: £10,881m). Barclays UK income decreased 1%, while Barclays International income declined 3% as a 1% increase in CIB income was more than offset by an 11% reduction in Consumer, Cards and Payments, primarily as a result of one-off gains in H117 reflecting management de-risking actions. Head Office income was a net expense of £205m (H117: income of £2m), 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 reduced 46% to £571m driven by Barclays International, primarily due to single name recoveries in wholesale banking, improved macroeconomic forecasts in the US, the impact of repositioning the US cards portfolio towards a lower risk mix, repayment of certain US card balances following higher than expected seasonality and portfolio adjustments as IFRS 9 continues to embed. The Barclays Group loan loss rate was 35bps (H117: 49bps)
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 during H118, the impairment measurement and resulting charge has been more volatile in response to the impacts from an improved 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 H118 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
Operating expenses of £8,716m (H117: £7,732m) included litigation and conduct charges of £2,042m (H117: £743m), excluding which, operating expenses reduced 5% to £6,674m, driven by a 2% reduction in Barclays International and the non-recurrence of costs associated with the former Non-Core division. The cost: income ratio, excluding litigation and conduct, reduced to 61% (H117: 64%)
Other net income declined to £12m (H117: £246m) primarily reflecting the non-recurrence of gains on the sales of Barclays’ share in VocaLink and a joint venture in Japan in H117
The effective tax rate increased to 44.4% (H117: 33.2%) mainly due to higher litigation and conduct costs which are non-deductible for tax purposes. Excluding litigation and conduct, the underlying effective tax rate reduced to 21.3% (H117: 25.9%), 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 that have been recognised in H118. The Group’s underlying effective tax rate for the full year 2018 and future periods is expected to be in the mid-20 percents
RoTE was 11.6% (H117: negative 1.6%) and earnings per share was 14.9p (H117: loss per share of 2.4p), excluding litigation and conduct
TNAV per share was 259p (December 2017: 276p) as the impact of the implementation of IFRS 9 and litigation and conduct charges in Q118 more than offset profits in the half year. TNAV per share increased 8p from March 2018, predominantly driven by profits in the quarter
Refer to pages 8 to 15 for further detail on Results by Business
 
Group capital and leverage
 
Barclays’ CET1 ratio decreased to 13.0% (December 2017: 13.3%) due to an increase in RWAs of £6.3bn to £319.3bn and a decrease in CET1 capital of £0.2bn to £41.4bn
The increase in RWAs reflected an increase in both businesses within Barclays International and regulatory methodology changes for the Education, Social Housing and Local Authority (ESHLA) portfolio in Barclays UK, offset by the net reduction due to Barclays Africa Group Limited (BAGL) regulatory deconsolidation
£0.8bn of organic capital generation from profits, after absorbing the impacts of litigation and conduct charges, was offset by £0.8bn of regulatory deductions for dividends paid and foreseen
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 trading activity, as well as a decrease in average tier 1 capital
 
Group funding and liquidity
 
The Barclays Group continued to maintain surpluses to its internal and regulatory liquidity requirements. The liquidity pool decreased to £214bn (December 2017: £220bn) driven largely by the deployment of funding to support business growth. The liquidity coverage ratio (LCR) remained at 154% (December 2017: 154%), equivalent to a surplus of £73bn (December 2017: £75bn) to the 100% requirement
Wholesale funding outstanding (excluding repurchase agreements) was £149bn (December 2017: £144bn). In H118, Barclays Group issued £6.2bn 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 in H118 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 27% (December 2017: 31%)
 
Other matters
 
In H118 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) in H118
Additional charges of £400m (H117: £700m) relating to PPI were recognised in Q118 mainly as a result of continued higher complaints flow. The remaining PPI provision as at 30 June 2018 was £1.4bn (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
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% will now be 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 intends to defend the application brought by the SFO
 
Outlook and guidance
 
Barclays is confident in the execution of its strategy and remains on track to achieve its RoTE1 targets of greater than 9% for 2019 and greater than 10% for 2020 based on a CET1 ratio of c.13%, and operating expenses1 guidance in the range of £13.6–13.9bn for 2019. The Group’s H118 results reflect good progress towards these targets
For H218, which will be subject to seasonal effects as usual, it is too early to provide comments on expected performance, although income in Barclays UK is anticipated to remain steady despite some margin pressures, while Barclays International income will be influenced in part by conditions across investment banking markets, where volatility has been low in July
The impairment charge for H118 demonstrates the volatility that may result under IFRS 9 and Barclays currently expects impairment for H218 to be higher than for H118, subject to changes in actual or forward-looking macroeconomic conditions or material changes to individual portfolios or changes from the continuing embedment of IFRS 9
Operating expenses1 for 2018 are expected to be in the region of £13.9bn including bank levy, subject to exchange rates, reflecting continuing investment in the Group’s businesses    
 
Dividends
 
An interim dividend of 2.5p per share will be paid on 17 September 2018. Barclays reiterates its intention to pay a 6.5p dividend for 2018, subject to regulatory approvals
 
Tushar Morzaria, Group Finance Director
 
1
Excluding litigation and conduct, with returns targets based on a Barclays Group CET1 ratio of c.13.0%.
 
Results by Business
 
Barclays UK
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Income statement information
£m
£m
% Change
Net interest income
2,986
3,045
(2)
Net fee, commission and other income
638
616
4
Total income
3,624
3,661
(1)
Credit impairment charges and other provisions
(415)
(398)
(4)
Net operating income
3,209
3,263
(2)
Operating expenses excluding litigation and conduct
(1,973)
(1,933)
(2)
Litigation and conduct1
(414)
(695)
40
Operating expenses
(2,387)
(2,628)
9
Other net income/(expenses)
4
(1)
 
Profit before tax
826
634
30
Attributable profit
426
185
 
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Balance sheet information
£bn
£bn
£bn
Loans and advances to customers at amortised cost
185.3
183.8
166.6
Total assets
245.9
237.4
203.4
Customer deposits at amortised cost
194.3
193.4
187.4
Loan: deposit ratio
96%
95%
89%
Risk weighted assets
75.0
70.9
66.1
Period end allocated tangible equity
10.2
9.6
8.6
 
 
 
 
 
Half year ended
Half year ended
 
Key facts
30.06.18
30.06.17
 
Average loan to value of mortgage portfolio
50%
47%
 
Average loan to value of new mortgage lending
64%
62%
 
Number of branches
1,155
1,295
 
Mobile banking active customers
6.7m
6.0m
 
30 day arrears rate - Barclaycard Consumer UK
1.9%
2.0%
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
9.0%
4.6%
 
Average allocated tangible equity (£bn)
10.0
8.8
 
Cost: income ratio
66%
72%
 
Loan loss rate (bps)
44
47
 
Net interest margin
3.24%
3.69%
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
 
Profit before tax
1,240
1,329
(7)
Attributable profit
838
873
(4)
Return on average allocated tangible equity
17.3%
20.3%
 
Cost: income ratio
54%
53%
 
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays UK
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Analysis of total income
£m
£m
% Change
Personal Banking1
1,987
2,076
(4)
Barclaycard Consumer UK
1,031
993
4
Business Banking1
606
592
2
Total income
3,624
3,661
(1)
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
Personal Banking1
(121)
(108)
(12)
Barclaycard Consumer UK
(252)
(272)
7
Business Banking1
(42)
(18)
 
Total credit impairment charges and other provisions
(415)
(398)
(4)
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
Personal Banking1
143.6
141.3
138.6
Barclaycard Consumer UK
15.2
16.4
16.2
Business Banking1
26.5
26.1
11.8
Total loans and advances to customers at amortised cost
185.3
183.8
166.6
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
Personal Banking1
152.9
153.1
151.1
Barclaycard Consumer UK
-
-
-
Business Banking1
41.4
40.3
36.3
Total customer deposits at amortised cost
194.3
193.4
187.4
 
1
Wealth has been reclassified from Wealth, Entrepreneurs & Business Banking (now named Business Banking) to Personal Banking. Comparatives have been restated.
 
In H118, Barclays successfully established the UK ring-fenced bank as part of structural reform whilst seamlessly migrating over 600,000 customers onto new sort codes with minimal customer impact. Barclays UK continues to have strong market positions across most products, whilst exercising pricing discipline and a prudent risk appetite. Barclays UK is focused on generating sustainable income growth and the digital evolution of the business.
 
Income statement - H118 compared to H117
 
RoTE was 9.0% (H117: 4.6%) including PPI charges of £400m (H117: £700m). Excluding litigation and conduct, RoTE was 17.3% (H117: 20.3%) as profit before tax decreased 7% to £1,240m, driven by a 2% increase in operating expenses, a 1% decrease in total income, and a 4% increase in credit impairment charges
Total income decreased 1% to £3,624m reflecting the non-recurrence of a valuation gain on Barclays’ preference shares in Visa Inc. in H117 and customer remediation provisions in Q118
 
Personal Banking income decreased 4% to £1,987m driven by the non-recurrence of the Visa gain in H117, a customer remediation provision and the realignment of clients from Barclays UK to Barclays International as part of structural reform
 
Barclaycard Consumer UK income increased 4% to £1,031m
 
Business Banking income increased 2% to £606m 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 and a customer remediation provision
 
Net interest margin decreased 45bps to 3.24% reflecting the integration of the ESHLA portfolio from Non-Core on 1 July 2017 and margin pressure
Credit impairment charges increased 4% to £415m including a one-off charge in Business Banking and increased impairment in Personal Banking, partially offset by a lower charge in UK cards. The 30 and 90 day arrears rates in UK cards remained broadly flat at 1.9% (June 2017: 2.0%) and 0.9% (June 2017: 0.9%), respectively
Operating expenses excluding litigation and conduct increased 2% to £1,973m 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% (H117: 53%)
 
Balance sheet - 30 June 2018 compared to 31 December 2017
 
Loans and advances to customers at amortised cost increased 1% to £185.3bn reflecting £2.6bn of mortgage growth, partially offset by the impact of IFRS 9
Total assets increased 4% to £245.9bn reflecting increases in the liquidity pool and loans and advances to customers
Customer deposits at amortised cost remained broadly flat at £194.3bn (December 2017: £193.4bn) as deposit growth was partially offset by the realignment of clients between Barclays UK and Barclays International as part of structural reform
RWAs increased to £75.0bn (December 2017: £70.9bn) primarily due to regulatory methodology changes for the ESHLA portfolio and growth in the mortgage book
 
Barclays International
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Income statement information
£m
£m
% Change
Net interest income
1,866
2,172
(14)
Net trading income
2,510
2,221
13
Net fee, commission and other income
3,139
3,355
(6)
Total income
7,515
7,748
(3)
Credit impairment charges and other provisions
(161)
(625)
74
Net operating income
7,354
7,123
3
Operating expenses excluding litigation and conduct
(4,606)
(4,711)
2
Litigation and conduct1
(62)
(9)
 
Operating expenses
(4,668)
(4,720)
1
Other net income
24
214
(89)
Profit before tax
2,710
2,617
4
Attributable profit
1,863
1,656
13
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Balance sheet information
£bn
£bn
£bn
Loans and advances at amortised cost
125.5
126.8
135.2
Trading portfolio assets
116.5
113.0
83.3
Derivative financial instrument assets
228.2
236.2
108.4
Derivative financial instrument liabilities
224.9
237.8
116.8
Financial assets at fair value through the income statement
141.2
104.1
94.1
Total assets
886.5
856.1
681.6
Deposits at amortised cost
191.0
187.3
192.0
Loan: deposit ratio
66%
68%
70%
Risk weighted assets
218.0
210.3
212.2
Period end allocated tangible equity
30.5
27.5
26.8
 
 
 
 
 
Half year ended
Half year ended
 
Performance measures
30.06.18
30.06.17
 
Return on average allocated tangible equity
12.6%
12.4%
 
Average allocated tangible equity (£bn)
30.7
27.5
 
Cost: income ratio
62%
61%
 
Loan loss rate (bps)
25
61
 
Net interest margin
4.30%
4.06%
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
% Change
Profit before tax
2,772
2,626
6
Attributable profit
1,909
1,662
15
Return on average allocated tangible equity
12.9%
12.5%
 
Cost: income ratio
61%
61%
 
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays International
 
 
 
Corporate and Investment Bank
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Income statement information
£m
£m
% Change
FICC1
1,605
1,641
(2)
Equities
1,191
917
30
Markets
2,796
2,558
9
Banking fees
1,387
1,400
(1)
Corporate lending
438
547
(20)
Transaction banking
799
802
-
Banking
2,624
2,749
(5)
Other
(41)
39
 
Total income
5,379
5,346
1
Credit impairment releases/(charges) and other provisions
182
(50)
 
Net operating income
5,561
5,296
5
Operating expenses excluding litigation and conduct
(3,546)
(3,690)
4
Litigation and conduct2
(13)
(7)
(86)
Operating expenses
(3,559)
(3,697)
4
Other net income
8
116
(93)
Profit before tax
2,010
1,715
17
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Balance sheet information
£bn
£bn
£bn
Loans and advances at amortised cost
87.8
88.2
96.7
Deposits at amortised cost
130.3
128.0
134.1
Risk weighted assets
180.4
176.2
178.9
 
 
 
 
 
Half year ended
Half year ended
 
Performance measures
30.06.18
30.06.17
 
Return on average allocated tangible equity
11.0%
9.7%
 
Average allocated tangible equity (£bn)
26.0
23.3
 
 
 
 
 
Performance measures excluding litigation and conduct2
£m
£m
% Change
Profit before tax
2,023
1,722
17
Return on average allocated tangible equity
11.1%
9.7%
 
 
1
Fixed income, currencies and commodities (FICC) is composed of Credit and Macro income.
2
Refer to pages 94 to 102 for more information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays International
 
 
 
Consumer, Cards and Payments
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Income statement information
£m
£m
% Change
Total income
2,136
2,402
(11)
Credit impairment charges and other provisions
(343)
(575)
40
Net operating income
1,793
1,827
(2)
Operating expenses excluding litigation and conduct
(1,060)
(1,021)
(4)
Litigation and conduct1
(49)
(2)
 
Operating expenses
(1,109)
(1,023)
(8)
Other net income
16
98
(84)
Profit before tax
700
902
(22)
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Balance sheet information
£bn
£bn
£bn
Loans and advances at amortised cost
37.7
38.6
38.5
Deposits at amortised cost
60.7
59.3
57.9
Risk weighted assets
37.6
34.1
33.3
 
 
 
 
 
Half year ended
Half year ended
 
Key facts
30.06.18
30.06.17
 
30 day arrears rate – Barclaycard US
2.5%
2.2%
 
Total number of Barclaycard business clients
370,000
 364,000
 
Value of payments processed (£bn)
169
157
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
21.2%
28.0%
 
Average allocated tangible equity (£bn)
4.7
4.2
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
% Change
Profit before tax
749
904
(17)
Return on average allocated tangible equity
22.7%
28.0%
 
 
1
Refer to pages 94 to 102 for more information and calculations of performance measures excluding litigation and conduct.
 
In H118, Barclays International delivered double digit returns continuing to build out our capabilities and businesses. The targeted deployment of financial resources, and investments in talent and technology has generated greater customer relevance in all products and regions - underlying growth in Consumer, Cards and Payments, strong performance in Markets, and our second highest quarter in Banking fees – strong evidence of continuing to progress with the strategy. 
 
Income statement - H118 compared to H117 
 
Profit before tax increased 4% to £2,710m resulting in a RoTE of 12.6% (H117: 12.4%), reflecting double digit returns in both CIB, and Consumer, Cards and Payments of 11.0% (H117: 9.7%) and 21.2% (H117: 28.0%), respectively
The 10% depreciation of average USD against GBP adversely impacted profits and income, and positively impacted credit impairment charges and operating expenses
Total income decreased 3% to £7,515m
 
CIB income increased 1% to £5,379m as Markets income increased 9% to £2,796m, partially offset by a decrease in Banking income of 5% to £2,624m
 
 
FICC income decreased 2% to £1,605m driven by continued strong performance in foreign exchange, offset by a decline in credit income
 
 
Equities income increased 30% to £1,191m reflecting an improved performance in derivatives from increased client activity and a continued strong performance in equity financing
 
 
Banking fee income decreased 1% to £1,387m following a strong H117. Global fee share for H118 increased across all products compared to FY17
 
 
Corporate lending income declined 20% to £438m driven by lower lending balances including the ongoing 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 in line at £799m (H117: £802m) 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 11% to £2,136m driven by the non-recurrence of a £192m gain relating to an asset sale in US cards and a £74m valuation gain on Barclays’ preference shares in Visa Inc. in H117, partially offset by continued underlying growth in US cards and a £53m gain on sale of a US cards portfolio in H118
Credit impairment charges decreased 74% to £161m including portfolio adjustments as IFRS 9 continues to embed
 
CIB credit impairment charges decreased to a release of £182m (H117: charge of £50m) primarily due to single name recoveries and updated macroeconomic forecasts
 
Consumer, Cards and Payments credit impairment charges decreased 40% to £343m reflecting improved 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
Operating expenses decreased 1% to £4,668m
 
CIB operating expenses decreased 4% to £3,559m driven by the reduction of restructuring and structural reform costs, and the reduced impact of the change in compensation awards introduced in Q416, partially offset by continued investment
 
Consumer, Cards and Payments operating expenses increased 8% to £1,109m. Excluding litigation and conduct operating expenses increased 4% to £1,060m including continued growth and investment, primarily within the US cards and merchant acquiring businesses
Other net income decreased to £24m (H117: £214m) 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 H117
 
Balance sheet - 30 June 2018 compared to 31 December 2017
 
Loans and advances at amortised cost remained broadly flat at £125.5bn (December 2017: £126.8bn) due to the integration of treasury balances from Head Office offset by the impact of the adoption of IFRS 9
Derivative financial instrument assets and liabilities decreased £8.0bn to £228.2bn and £12.9bn to £224.9bn respectively, due to an increase in major interest rate forward curves and the adoption of daily settlement under the London Clearing House (LCH), partially offset by increased foreign exchange derivative volumes
Financial assets at fair value through the income statement increased £37.1bn to £141.2bn primarily due to the impact of IFRS 9 and increased reverse repurchase agreements activity
Deposits at amortised cost increased £3.7bn to £191.0bn, primarily due to the integration of treasury balances from Head Office and increased deposits in corporate lending, partially offset by the impact of IFRS 9
RWAs increased to £218.0bn (December 2017: £210.3bn) driven by an increase in both Consumer, Cards and Payments and CIB
 
Head Office
Half year ended
Half year ended
 
30.06.18
30.06.17
 
Income statement information
£m
£m
% Change
Net interest income
(474)
(7)
 
Net fee, commission and other income
269
9
 
Total income
(205)
2
 
Credit impairment releases/(charges) and other provisions
5
(1)
 
Net operating (expenses)/income
(200)
1
 
Operating expenses excluding litigation and conduct
(95)
(89)
(7)
Litigation and conduct1
(1,566)
(11)
 
Operating expenses
(1,661)
(100)
 
Other net expenses
(16)
(164)
90
Loss before tax
(1,877)
(263)
 
Attributable loss
(1,821)
(298)
 
 
 
 
 
 
As at 30.06.18
As at 31.12.17
As at 30.06.17
Balance sheet information
£bn
£bn
£bn
Total assets
17.2
39.7
17.3
Risk weighted assets
26.3
31.8
26.2
Period end allocated tangible equity
3.6
10.0
9.0
 
 
 
 
 
Half year ended
Half year ended
 
 
30.06.18
30.06.17
 
Performance measures
£bn
£bn
 
Average allocated tangible equity
3.1
8.2
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
% Change
Loss before tax
(311)
(252)
(23)
Attributable loss
(290)
(290)
-
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Income statement - H118 compared to H117
 
Loss before tax was £1,877m (H117: £263m) driven by litigation and conduct charges of £1,566m (H117: £11m) primarily related to the £1.4bn settlement with the US DoJ relating to RMBS
Total income reduced to an expense of £205m (H117: income of £2m) reflecting certain legacy capital instrument funding costs now charged to Head Office of £176m in H118, 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 excluding litigation and conduct increased 7% to £95m due to costs associated with former Non-Core assets and businesses, which were integrated on 1 July 2017
Other net expenses were £16m (H117: £164m) due to the non-recurrence of a £180m expense in H117 on the recycling of the currency translation reserve to the income statement on the sale of Barclays Bank Egypt
 
Balance sheet - 30 June 2018 compared to 31 December 2017
 
Total assets decreased to £17.2bn (December 2017: £39.7bn) reflecting the transfer of treasury assets to Barclays UK and Barclays International as part of structural reform
RWAs decreased to £26.3bn (December 2017: £31.8bn) reflecting the net reduction due to BAGL regulatory deconsolidation
 
Quarterly Results Summary
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q2171
Q1171
 
Q4161
Q3161
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
2,190
2,188
 
2,272
2,475
2,579
2,519
 
2,523
2,796
Net fee, commission and other income
3,386
3,170
 
2,750
2,698
2,479
3,304
 
2,469
2,650
Total income
5,576
5,358
 
5,022
5,173
5,058
5,823
 
4,992
5,446
Credit impairment charges and other provisions 
(283)
(288)
 
(573)
(709)
(527)
(527)
 
(653)
(789)
Net operating income 
5,293
5,070
 
4,449
4,464
4,531
5,296
 
4,339
4,657
Operating expenses excluding UK bank levy and litigation and conduct
(3,310)
(3,364)
 
(3,621)
(3,274)
(3,398)
(3,591)
 
(3,812)
(3,581)
UK bank levy 
-
-
 
(365)
-
-
-
 
(410)
-
Litigation and conduct2
(81)
(1,961)
 
(383)
(81)
(715)
(28)
 
(97)
(741)
Operating expenses
(3,391)
(5,325)
 
(4,369)
(3,355)
(4,113)
(3,619)
 
(4,319)
(4,322)
Other net (expenses)/income
(7)
19
 
13
(2)
241
5
 
310
502
Profit/(loss) before tax
1,895
(236)
 
93
1,107
659
1,682
 
330
837
Tax (charge)/credit
(433)
(304)
 
(1,138)
(324)
(305)
(473)
 
50
(328)
Profit/(loss) after tax in respect of continuing operations
1,462
(540)
 
(1,045)
783
354
1,209
 
380
509
(Loss)/profit after tax in respect of discontinued operation
-
-
 
-
-
(1,537)
(658)
 
71
209
 
 
 
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
 
 
 
Ordinary equity holders of the parent
1,232
(764)
 
(1,294)
583
(1,401)
190
 
99
414
Other equity instrument holders
175
171
 
181
157
162
139
 
139
110
Non-controlling interests in respect of continuing operations
55
53
 
68
43
59
79
 
90
70
Non-controlling interests in respect of discontinued operation
-
-
 
-
-
(3)
143
 
123
124
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Total assets
1,149.6
1,142.2
 
1,133.2
1,149.3
1,135.3
1,203.8
 
1,213.1
1,324.0
Tangible net asset value per share
259p
251p
 
276p
281p
284p
292p
 
290p
287p
Risk weighted assets
319.3
317.9
 
313.0
324.3
327.4
360.9
 
365.6
373.4
Average UK leverage exposure
1,081.8
1,089.9
 
1,044.6
1,035.1
1,092.2
1,130.4
 
1,137.3
n/a
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
11.8%
(6.5%)
 
(10.3%)
5.1%
(11.0%)
1.8%
 
1.1%
3.6%
Average tangible shareholders' equity
43.5
44.2
 
48.1
48.9
49.3
49.4
 
48.9
49.4
Cost: income ratio 
61%
99%
 
87%
65%
81%
62%
 
87%
79%
Loan loss rate (bps)
35
36
 
56
66
49
47
 
58
66
Basic earnings/(loss) per share
7.5p
(4.2p)
 
(7.3p)
3.7p
(8.0p)
1.3p
 
0.8p
2.6p
Basic earnings/(loss) per share in respect of continuing operations
7.5p
(4.2p)
 
(7.3p)
3.7p
1.0p
6.1p
 
1.1p
2.1p
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct2
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Profit before tax
1,976
1,725
 
476
1,188
1,374
1,710
 
427
1,578
Attributable profit/(loss)
1,291
1,166
 
(943)
660
(698)
209
 
151
1,140
Return on average tangible shareholders' equity
12.3%
11.0%
 
(7.4%)
5.7%
(5.3%)
2.0%
 
1.6%
9.5%
Cost: income ratio
59%
63%
 
79%
63%
67%
62%
 
85%
66%
Basic earnings/(loss) per share
7.8p
7.1p
 
(5.3p)
4.1p
(3.8p)
1.5p
 
1.1p
6.9p
 
1
Results included Barclays Non-Core and the Africa Banking discontinued operation; refer to pages 23 to 24 for further detail.
2
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Quarterly Results by Business
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
1,493
1,493
 
1,540
1,501
1,534
1,511
 
1,502
1,569
Net fee, commission and other income
343
295
 
330
351
286
330
 
326
374
Total income
1,836
1,788
 
1,870
1,852
1,820
1,841
 
1,828
1,943
Credit impairment charges and other provisions 
(214)
(201)
 
(184)
(201)
(220)
(178)
 
(180)
(350)
Net operating income 
1,622
1,587
 
1,686
1,651
1,600
1,663
 
1,648
1,593
Operating expenses excluding UK bank levy and litigation and conduct
(968)
(1,005)
 
(1,117)
(980)
(974)
(959)
 
(989)
(904)
UK bank levy 
-
-
 
(59)
-
-
-
 
(48)
-
Litigation and conduct1
(3)
(411)
 
(53)
(11)
(699)
4
 
(28)
(614)
Operating expenses
(971)
(1,416)
 
(1,229)
(991)
(1,673)
(955)
 
(1,065)
(1,518)
Other net income/(expenses)
5
(1)
 
(5)
1
(1)
-
 
-
-
Profit/(loss) before tax
656
170
 
452
661
(74)
708
 
583
75
Attributable profit/(loss)
464
(38)
 
245
423
(285)
470
 
383
(163)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances to customers at amortised cost
185.3
184.3
 
183.8
182.2
166.6
164.5
 
166.4
166.6
Total assets
245.9
235.2
 
237.4
230.4
203.4
203.0
 
209.6
209.1
Customer deposits at amortised cost
194.3
192.0
 
193.4
189.3
187.4
184.4
 
189.0
185.5
Loan: deposit ratio
96%
96%
 
95%
97%
89%
90%
 
89%
91%
Risk weighted assets
75.0
72.5
 
70.9
70.0
66.1
66.3
 
67.5
67.4
Period end allocated tangible equity
10.2
9.8
 
9.6
9.5
8.6
8.8
 
8.5
8.5
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
18.8%
(1.1%)
 
10.7%
18.4%
(12.7%)
21.6%
 
18.2%
(7.1%)
Average allocated tangible equity
10.1
9.8
 
9.6
9.4
8.7
8.9
 
8.6
8.7
Cost: income ratio 
53%
79%
 
66%
54%
92%
52%
 
58%
78%
Loan loss rate (bps)
45
43
 
39
43
52
43
 
42
82
Net interest margin
3.22%
3.27%
 
3.32%
3.28%
3.70%
3.69%
 
3.56%
3.72%
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Profit before tax
659
581
 
505
672
625
704
 
611
689
Attributable profit
465
373
 
282
431
406
467
 
380
464
Return on average allocated tangible equity
18.8%
15.7%
 
12.3%
18.7%
19.1%
21.5%
 
18.0%
21.6%
Cost: income ratio
53%
56%
 
63%
53%
54%
52%
 
57%
47%
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays UK
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Analysis of total income
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Personal Banking1
1,015
972
 
1,116
1,022
1,033
1,043
 
1,045
1,084
Barclaycard Consumer UK
504
527
 
445
539
495
498
 
507
561
Business Banking1
317
289
 
309
291
292
300
 
276
298
Total income
1,836
1,788
 
1,870
1,852
1,820
1,841
 
1,828
1,943
 
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment (charges)/releases and other provisions
 
 
 
 
 
 
 
 
 
 
Personal Banking1
(49)
(72)
 
(56)
(57)
(60)
(48)
 
(54)
(57)
Barclaycard Consumer UK
(139)
(113)
 
(124)
(145)
(149)
(123)
 
(118)
(291)
Business Banking1
(26)
(16)
 
(4)
1
(11)
(7)
 
(8)
(2)
Total credit impairment charges and other provisions
(214)
(201)
 
(184)
(201)
(220)
(178)
 
(180)
(350)
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Personal Banking1
143.6
142.1
 
141.3
140.4
138.6
136.6
 
138.5
139.0
Barclaycard Consumer UK
15.2
15.2
 
16.4
16.3
16.2
16.1
 
16.5
16.2
Business Banking1
26.5
27.0
 
26.1
25.5
11.8
11.8
 
11.4
11.4
Total loans and advances to customers at amortised cost
185.3
184.3
 
183.8
182.2
166.6
164.5
 
166.4
166.6
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
 
 
 
Personal Banking1
152.9
151.9
 
153.1
152.1
151.1
149.2
 
156.3
154.0
Barclaycard Consumer UK
-
-
 
-
-
-
-
 
-
-
Business Banking1
41.4
40.1
 
40.3
37.2
36.3
35.2
 
32.7
31.5
Total customer deposits at amortised cost
194.3
192.0
 
193.4
189.3
187.4
184.4
 
189.0
185.5
 
1
Wealth has been reclassified from Wealth, Entrepreneurs & Business Banking (now named Business Banking) to Personal Banking. Comparatives have been restated to reflect this.
 
Barclays International
 
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
853
1,013
 
987
1,148
1,060
1,112
 
1,046
1,355
Net trading income
1,094
1,416
 
935
815
1,039
1,182
 
1,131
1,074
Net fee, commission and other income
1,760
1,379
 
1,397
1,352
1,511
1,844
 
1,415
1,422
Total income
3,707
3,808
 
3,319
3,315
3,610
4,138
 
3,592
3,851
Credit impairment charges and other provisions 
(68)
(93)
 
(386)
(495)
(279)
(346)
 
(426)
(420)
Net operating income 
3,639
3,715
 
2,933
2,820
3,331
3,792
 
3,166
3,431
Operating expenses excluding UK bank levy and litigation and conduct
(2,306)
(2,300)
 
(2,428)
(2,182)
(2,276)
(2,435)
 
(2,497)
(2,337)
UK bank levy 
-
-
 
(265)
-
-
-
 
(284)
-
Litigation and conduct1
(47)
(15)
 
(255)
(5)
4
(13)
 
(17)
(17)
Operating expenses
(2,353)
(2,315)
 
(2,948)
(2,187)
(2,272)
(2,448)
 
(2,798)
(2,354)
Other net income
11
13
 
21
19
202
12
 
5
8
Profit before tax
1,297
1,413
 
6
652
1,261
1,356
 
373
1,085
Attributable profit/(loss)
890
973
 
(1,168)
359
819
837
 
43
623
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances at amortised cost
125.5
117.5
 
126.8
134.4
135.2
145.5
 
153.7
152.7
Trading portfolio assets
116.5
114.9
 
113.0
91.2
83.3
83.0
 
73.2
73.8
Derivative financial instrument assets
228.2
214.1
 
236.2
242.8
108.4
105.3
 
156.2
155.6
Derivative financial instrument liabilities
224.9
210.8
 
237.8
242.9
116.8
112.8
 
160.6
160.5
Financial assets at fair value through the income statement
141.2
150.6
 
104.1
103.7
94.1
81.3
 
62.3
72.0
Total assets
886.5
866.6
 
856.1
867.1
681.6
677.2
 
648.5
681.9
Deposits at amortised cost
191.0
167.2
 
187.3
191.9
192.0
189.4
 
184.7
175.7
Loan: deposit ratio
66%
70%
 
68%
70%
70%
77%
 
83%
87%
Risk weighted assets
218.0
214.2
 
210.3
218.2
212.2
214.3
 
212.7
214.6
Period end allocated tangible equity
30.5
30.0
 
27.5
28.0
26.8
27.1
 
25.6
25.9
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.8%
13.4%
 
(15.9%)
5.4%
12.4%
12.5%
 
1.0%
10.0%
Average allocated tangible equity (£bn)
31.4
30.1
 
28.5
28.9
27.4
27.7
 
26.6
25.7
Cost: income ratio 
63%
61%
 
89%
66%
63%
59%
 
78%
61%
Loan loss rate (bps)
22
31
 
76
88
54
62
 
78
71
Net interest margin
4.03%
4.57%
 
4.31%
4.21%
4.07%
4.06%
 
3.91%
4.21%
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Profit before tax
1,344
1,428
 
261
657
1,257
1,369
 
390
1,102
Attributable profit/(loss)
924
985
 
(918)
363
816
846
 
57
640
Return on average allocated tangible equity
12.2%
13.6%
 
(12.4%)
5.5%
12.3%
12.6%
 
1.2%
10.3%
Cost: income ratio
62%
60%
 
81%
66%
63%
59%
 
77%
61%
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays International
 
 
 
 
Corporate and Investment Bank
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
FICC
736
869
 
607
627
752
889
 
766
947
Equities
601
590
 
362
350
455
462
 
410
461
Markets
1,337
1,459
 
969
977
1,207
1,351
 
1,176
1,408
Banking fees
704
683
 
605
607
674
726
 
650
644
Corporate lending
198
240
 
269
277
278
269
 
303
284
Transaction banking
385
414
 
408
419
404
398
 
401
458
Banking
1,287
1,337
 
1,282
1,303
1,356
1,393
 
1,354
1,386
Other
(44)
3
 
1
-
1
38
 
1
1
Total income
2,580
2,799
 
2,252
2,280
2,564
2,782
 
2,531
2,795
Credit impairment releases/(charges) and other provisions
23
159
 
(127)
(36)
1
(51)
 
(90)
(38)
Net operating income
2,603
2,958
 
2,125
2,244
2,565
2,731
 
2,441
2,757
Operating expenses excluding litigation and conduct
(1,773)
(1,773)
 
(2,129)
(1,656)
(1,760)
(1,930)
 
(2,272)
(1,855)
Litigation and conduct1
-
(13)
 
(255)
(5)
4
(11)
 
(15)
(17)
Operating expenses
(1,773)
(1,786)
 
(2,384)
(1,661)
(1,756)
(1,941)
 
(2,287)
(1,872)
Other net income
5
3
 
7
10
116
-
 
1
-
Profit/(loss) before tax
835
1,175
 
(252)
593
925
790
 
155
885
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances at amortised cost
87.8
81.3
 
88.2
95.4
96.7
106.8
 
114.0
115.9
Deposits at amortised cost
130.3
107.6
 
128.0
133.4
134.1
131.0
 
134.0
126.7
Risk weighted assets
180.4
181.3
 
176.2
185.2
178.9
180.6
 
178.6
182.5
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
9.1%
13.0%
 
(20.2%)
5.9%
11.1%
8.2%
 
(1.2%)
9.2%
Average allocated tangible equity
26.4
25.6
 
24.3
24.8
23.3
23.5
 
22.6
21.9
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Profit before tax
835
1,188
 
3
598
921
801
 
170
902
Return on average allocated tangible equity
9.1%
13.2%
 
(16.1%)
6.0%
11.1%
8.3%
 
(0.9%)
9.5%
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Analysis of Barclays International
 
 
 
 
Consumer, Cards and Payments
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Total income
1,127
1,009
 
1,067
1,035
1,046
1,356
 
1,061
1,056
Credit impairment charges and other provisions
(91)
(252)
 
(259)
(459)
(280)
(295)
 
(336)
(382)
Net operating income
1,036
757
 
808
576
766
1,061
 
725
674
Operating expenses excluding litigation and conduct
(533)
(527)
 
(564)
(526)
(516)
(505)
 
(509)
(482)
Litigation and conduct1
(47)
(2)
 
-
-
-
(2)
 
(2)
-
Operating expenses
(580)
(529)
 
(564)
(526)
(516)
(507)
 
(511)
(482)
Other net income
6
10
 
14
9
86
12
 
4
8
Profit before tax
462
238
 
258
59
336
566
 
218
200
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances at amortised cost
37.7
36.2
 
38.6
39.0
38.5
38.7
 
39.7
36.8
Deposits at amortised cost
60.7
59.6
 
59.3
58.5
57.9
58.4
 
50.7
49.0
Risk weighted assets
37.6
32.9
 
34.1
33.0
33.3
33.7
 
34.1
32.1
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
26.2%
15.6%
 
8.9%
2.2%
19.4%
36.4%
 
13.2%
14.8%
Average allocated tangible equity
5.0
4.5
 
4.2
4.2
4.1
4.2
 
4.0
3.7
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct1
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Profit before tax
509
240
 
258
59
336
568
 
220
200
Return on average allocated tangible equity
28.9%
15.7%
 
9.0%
2.2%
19.4%
36.5%
 
13.3%
14.8%
 
1
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Head Office
 
 
 
 
 
 
 
 
 
 
 
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
Income statement information
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
(156)
(318)
 
(254)
(174)
108
(115)
 
29
(206)
Net fee, commission and other income1
189
80
 
87
180
(24)
33
 
(38)
17
Total income
33
(238)
 
(167)
6
84
(82)
 
(9)
(189)
Credit impairment (charges)/releases and other provisions
(1)
6
 
(3)
(13)
(1)
-
 
-
1
Net operating income/(expenses)
32
(232)
 
(170)
(7)
83
(82)
 
(9)
(188)
Operating expenses excluding UK bank levy and litigation and conduct
(36)
(59)
 
(76)
(112)
(40)
(49)
 
15
(29)
UK bank levy 
-
-
 
(41)
-
-
-
 
(2)
-
Litigation and conduct2
(31)
(1,535)
 
(75)
(65)
(1)
(10)
 
(1)
(8)
Operating expenses
(67)
(1,594)
 
(192)
(177)
(41)
(59)
 
12
(37)
Other net (expenses)/income
(23)
7
 
(3)
(22)
(164)
-
 
159
(4)
(Loss)/profit before tax
(58)
(1,819)
 
(365)
(206)
(122)
(141)
 
162
(229)
Attributable (loss)/profit
(122)
(1,699)
 
(371)
(199)
(175)
(123)
 
223
(203)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Total assets
17.2
40.4
 
39.7
51.7
17.3
74.5
 
75.2
73.3
Risk weighted assets
26.3
31.2
 
31.8
36.1
26.2
52.9
 
53.3
47.5
Period end allocated tangible equity
3.6
3.0
 
10.0
10.4
9.0
8.8
 
9.7
6.9
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Average allocated tangible equity
2.0
4.3
 
10.0
10.5
8.8
7.6
 
7.2
7.4
 
 
 
 
 
 
 
 
 
 
 
Performance measures excluding litigation and conduct2
£m
£m
 
£m
£m
£m
£m
 
£m
£m
(Loss)/profit before tax
(27)
(284)
 
(290)
(141)
(121)
(131)
 
163
(221)
Attributable (loss)/profit
(98)
(192)
 
(307)
(134)
(174)
(116)
 
224
(195)
 
1
Following the early adoption of the own credit provisions of IFRS 9, Financial Instruments on 1 January 2017, own credit, which was previously reported in net fee, commission and other income, is recognised within other comprehensive income from Q117.
2
Refer to pages 94 to 102 for further information and calculations of performance measures excluding litigation and conduct.
 
Barclays Non-Core Results
 
The Barclays Non-Core segment was closed on 1 July 2017 with the residual assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Financial results up until 30 June 2017 are reflected in the Non-Core segment within the Barclays Group’s results.
 
Barclays Non-Core
Half year ended
Half year ended
30.06.18
30.06.17
Income statement information
£m
£m
Net interest income
-
(112)
Net trading income
-
(488)
Net fee, commission and other income
-
70
Total income
-
(530)
Credit impairment charges and other provisions
-
(30)
Net operating expenses
-
(560)
Operating expenses excluding litigation and conduct
-
(256)
Litigation and conduct
-
(28)
Operating expenses
-
(284)
Other net income
-
197
Loss before tax
-
(647)
Attributable loss
-
(419)
 
Income statement information
Q218
Q118
 
Q417
Q317
Q217
Q117
 
Q416
Q316
£m
£m
 
£m
£m
£m
£m
 
£m
£m
Net interest income
-
-
 
-
-
(123)
11
 
(54)
78
Net trading income
-
-
 
-
-
(411)
(77)
 
(462)
(288)
Net fee, commission and other income
-
-
 
-
-
78
(8)
 
97
51
Total income
-
-
 
-
-
(456)
(74)
 
(419)
(159)
Credit impairment charges and other provisions 
-
-
 
-
-
(27)
(3)
 
(47)
(20)
Net operating expenses
-
-
 
-
-
(483)
(77)
 
(466)
(179)
Operating expenses excluding UK bank levy and litigation and conduct
-
-
 
-
-
(108)
(148)
 
(341)
(311)
UK bank levy 
-
-
 
-
-
-
-
 
(76)
-
Litigation and conduct
-
-
 
-
-
(19)
(9)
 
(51)
(102)
Operating expenses
-
-
 
-
-
(127)
(157)
 
(468)
(413)
Other net income/(expenses)
-
-
 
-
-
204
(7)
 
146
498
Loss before tax
-
-
 
-
-
(406)
(241)
 
(788)
(94)
Tax credit
-
-
 
-
-
207
75
 
322
194
(Loss)/profit after tax
-
-
 
-
-
(199)
(166)
 
(466)
100
Non-controlling interests
-
-
 
-
-
(8)
(9)
 
(14)
(13)
Other equity instrument holders
-
-
 
-
-
(19)
(18)
 
(18)
(15)
Attributable (loss)/profit
-
-
 
-
-
(226)
(193)
 
(498)
72
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
Loans and advances to banks and customers at amortised cost
-
-
 
-
-
48.3
49.5
 
51.1
58.7
Derivative financial instrument assets
-
-
 
-
-
150.3
164.2
 
188.7
253.2
Derivative financial instrument liabilities
-
-
 
-
-
143.0
155.3
 
178.6
243.0
Reverse repurchase agreements and other similar secured lending
-
-
 
-
-
-
-
 
0.1
0.1
Financial assets designated at fair value
-
-
 
-
-
12.1
13.4
 
14.5
15.5
Total assets
-
-
 
-
-
233.0
249.1
 
279.7
359.8
Customer deposits
-
-
 
-
-
11.8
12.9
 
12.5
16.0
Risk weighted assets
-
-
 
-
-
22.8
27.4
 
32.1
43.9
 
Discontinued Operation Results
 
Following the reduction of the Barclays Group’s interest in BAGL in 2017, Barclays’ remaining holding of 14.9%, as at H118 is reported as a financial asset at fair value through other comprehensive income in the Head Office segment, with Barclays’ share of BAGL’s dividend recognised in the Head Office income statement.
 
Africa Banking
Half year ended
Half year ended
30.06.18
30.06.171
Income statement information
£m
£m
Net interest income`
-
1,024
Net fee, commission and other income
-
762
Total income
-
1,786
Credit impairment charges and other provisions
-
(177)
Net operating income
-
1,609
Operating expenses excluding impairment of Barclays' holding in BAGL
-
(1,130)
Other net income excluding loss on sale of BAGL
-
5
Profit before tax excluding impairment of Barclays' holding in BAGL and loss on sale of BAGL
-
484
Impairment of Barclays' holding in BAGL
-
(1,090)
Loss on sale of BAGL
-
(1,435)
Loss before tax
-
(2,041)
Tax charge
-