3rd Quarter Results

RNS Number : 7867D
Barclays PLC
29 October 2015
 



Barclays PLC

Q3 2015 Results Announcement

 

30 September 2015

 

Table of Contents

Results Announcement

Page

Performance Highlights

2-4

Group Performance Review

5-7

Results by Business

8-12

Quarterly Results Summary

13-15

Quarterly Core Results by Business

16-19

Performance Management

 

•     Returns and equity by business

20-21

•     Margins and balances

22

Condensed Consolidated Financial Statements

23-25

Capital

26-27

Leverage

28

Shareholder Information

29

 

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

 

Notes

 

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months to 30 September 2015 to the corresponding nine months of 2014 and balance sheet analysis as at 30 September 2015 with comparatives relating to 30 June 2015. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; and the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively.

Comparatives pre Q214 have been restated to reflect the implementation of the Group structure changes and the reallocation of elements of the Head Office results under the revised business structure. These restatements were detailed in our announcement on 10 July 2014, accessible at www.barclays.com/barclays-investor-relations/results-and-reports.

References throughout this document to 'provisions for ongoing investigations and litigation including Foreign Exchange' means 'provisions held for certain aspects of ongoing investigations involving certain authorities and litigation including Foreign Exchange.'

Adjusted profit before tax, adjusted attributable profit and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant but not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; goodwill impairment; provisions for UK customer redress; gain on US Lehman acquisition assets; provisions for ongoing investigations and litigation including Foreign Exchange; losses on sale relating to the Spanish and Portuguese businesses; Education, Social Housing, and Local Authority (ESHLA) valuation revision; and gain on valuation of a component of the defined retirement benefit liability. As management reviews adjusting items at a Group level, results by business are presented excluding these items. The reconciliation of adjusted to statutory performance is done at a Group level only.

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 www.barclays.com/results.

The information in this announcement, which was approved by the Board of Directors on 28 October 2015 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014, 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 www.barclays.com/investorrelations and from the SEC's website at www.sec.gov.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implementation of the strategic cost programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2014), 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

Chairman's Review

"Today's results show another quarter of progress in our Core businesses alongside the early effects of some of the changes that we are making.

We are pleased that Jes Staley will join us on 1 December as Group Chief Executive Officer, earlier than expected, and we are in the final stage of appointing a Senior Independent Director and Deputy Chairman to replace Sir Mike Rake on his retirement from the Board in the near future.

As we align Barclays around our three priorities - focus on core (segments and markets), generating shareholder value, and instilling a high performance culture with strong ethical values - we now have a forward agenda that has been discussed and agreed with Mr. Staley.

We will update the market on our plans for structural reform after we have agreed them with the regulator.

Now that we have a new CEO in place, we will provide further updates on future direction at the full year results."

 

John McFarlane, Chairman

 

 

 

 

 

•

4% growth in Group adjusted profit before tax to £5,156m was achieved in the nine months to 30 September 2015, reflecting improvements in all Core operating businesses. Group adjusted return on average shareholders' equity increased to 7.1% (2014: 6.3%)

Profit before tax in the Core business improved 7% to £6,005m with higher income and lower costs. Combined with the increase in average allocated equity of £6bn to £47bn, this resulted in a return on average equity for the Core business of 10.5% (2014: 10.5%)

Rundown of the Non-Core business continued, with risk weighted assets (RWAs) decreasing to £55bn (30 June 2015: £57bn). The announced sale of the Portuguese retail business in Q315, due to be completed in Q116, is expected to result in a further £1.7bn reduction in Non-Core RWAs. Period end allocated equity reduced to £9bn

Group capital and leverage metrics remained above the 2016 targets, with the fully loaded common equity tier 1 (CET1) ratio at 11.1% (30 June 2015: 11.1%) and the leverage ratio increasing to 4.2% (30 June 2015: 4.1%)

Net tangible asset value per share increased to 289p (30 June 2015: 279p) driven by profit generated for the period and favourable reserve movements

Statutory profit before tax increased 7% to £3,975m, which reflected net losses on adjusting items of £1,181m (2014: £1,217m)

Additional provisions of £270m were made in Q315 relating to the settlement of two residential mortgage backed securities claims with the National Credit Union Administration and the settlement of certain legacy benchmark litigation, taking the total additional provisions for ongoing investigations and litigation including Foreign Exchange in 2015 to £1,070m (2014: £500m)

Additional UK customer redress provisions of £290m were made in Q315 as a result of an internal review relating to rates provided to certain customers on foreign exchange transactions between 2005 and 2012, taking the total provisions for UK customer redress in 2015 to £1,322m (2014: £910m). No additional Performance Highlightsprovisions for PPI redress were made in Q315

A loss on sale of £201m was recognised in Q315 relating to the announced sale of the Portuguese retail business within Non-Core, which is due to complete in Q116. This is in addition to the loss of £118m recognised in H115 relating to the sale of the Spanish business

 

Barclays Group results  

Adjusted

 

Statutory

for the nine months ended

30.09.15

30.09.14

 

 

30.09.15

30.09.14

  

 

£m

£m

% Change

 

£m

£m

% Change

Total income net of insurance claims

19,090 

19,710 

(3)

 

20,191 

20,267 

- 

Credit impairment charges and other provisions

(1,468)

(1,595)

8 

 

(1,468)

(1,595)

8 

Net operating income  

17,622 

18,115 

(3)

 

18,723 

18,672 

- 

Operating expenses  

(11,654)

(12,051)

3 

 

(11,228)

(12,051)

7 

Litigation and conduct

(272)

(309)

12 

 

(2,664)

(1,719)

(55)

Operating expenses excluding costs to achieve  

(11,926)

(12,360)

4 

 

(13,892)

(13,770)

(1)

Costs to achieve

(539)

(826)

35 

 

(539)

(826)

35 

Total operating expenses

(12,465)

(13,186)

5 

 

(14,431)

(14,596)

1 

Other net (expenses)/income

(1)

10 

 

 

(317)

(354)

10

Profit before tax  

5,156 

4,939 

4 

 

3,975 

3,722 

7 

Tax charge1 

(1,481)

(1,630)

9 

 

(1,214)

(1,496)

19 

Profit after tax   

3,675 

3,309 

11 

 

2,761 

2,226 

24 

Non-controlling interests

(495)

(551)

10 

 

(495)

(551)

10 

Other equity holders2 

(238)

(170)

(40)

 

(238)

(170)

(40)

Attributable profit

2,942 

2,588 

14 

 

2,028 

1,505 

35 

 

 

 

 

 

 

 

  

Performance measures

 

 

 

 

 

 

 

Return on average tangible shareholders' equity2 

8.3%

7.4%

 

 

5.8%

4.4%

  

Average tangible shareholders' equity (£bn)

48 

47 

 

 

48 

47 

  

Return on average shareholders' equity2 

7.1%

6.3%

 

 

5.0%

3.8%

  

Average shareholders' equity (£bn)

56 

55 

 

 

56 

54 

  

Cost: income ratio

65%

67%

 

 

71%

72%

  

Loan loss rate (bps)

40 

43 

 

 

40 

43 

  

 

 

 

 

 

 

 

  

Basic earnings per share2 

17.9p

16.1p

 

 

12.4p

9.4p

  

Dividend per share  

3.0p

3.0p

 

 

3.0p

3.0p

  

  

 

 

 

 

 

 

 

Balance sheet and leverage

 

 

 

 

30.09.15

30.06.15

  

Net tangible asset value per share

 

 

 

 

289p

279p

  

Net asset value per share

 

 

 

 

337p

328p

  

Leverage exposure

 

 

 

 

£1,141bn

£1,139bn

  

 

 

 

 

 

 

 

 

Capital management

 

 

 

 

30.09.15

30.06.15

  

CRD IV fully loaded

 

 

 

 

 

 

 

Common equity tier 1 ratio

 

 

 

 

11.1%

11.1%

  

Common equity tier 1 capital

 

 

 

 

£42.4bn

£42.0bn

  

Tier 1 capital

 

 

 

 

£47.9bn

£46.5bn

  

Risk weighted assets

 

 

 

 

£382bn

£377bn

  

Leverage ratio

 

  

  


4.2%

4.1%

  

 

 

 

 

 

 

 

 

Funding and liquidity

 

 

 

 

30.09.15

30.06.15

  

Group liquidity pool

 

 

 

 

£142bn

£145bn

  

Estimated CRD IV liquidity coverage ratio

 

 

 

 

118%

121%

  

Loan: deposit ratio3 

 

 

 

 

88%

88%

  

  

 

 

 

 

 

 

  

Adjusted profit reconciliation for the nine months ended

  

 

30.09.15

30.09.14

  

Adjusted profit before tax

 

  

  

 

5,156 

4,939 

  

Own credit

 

 

 

 

605 

96 

  

Gain on US Lehman acquisition assets

 

496 

461 

  

Gain on valuation of a component of the defined retirement benefit liability

 

429 

- 

  

Provisions for UK customer redress

 

(1,322)

(910)

  

Provisions for ongoing investigations and litigation including Foreign Exchange

 

(1,070)

(500)

  

Losses on sale relating to the Spanish and Portuguese businesses


(319)

(364)

  

Statutory profit before tax

 

  

  

 

3,975 

3,722 

  

 

1

The effective tax rate for Q315 YTD is the expected full year rate adjusted for the impact of significant one-off items. The tax impacts of such items, which include adjusting items and the UK bank levy, are recognised in the period in which they occur.

2

The profit after tax attributable to other equity holders of £238m (Q314 YTD: £170m) is offset by a tax credit recorded in reserves of £48m (Q314 YTD: £36m). The net amount of £190m (Q314 YTD: £134m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share, return on average tangible shareholders' equity and return on average shareholders' equity.

3

Loan: deposit ratio for PCB, Barclaycard, Africa Banking and Non-Core retail.

 

Barclays Core and Non-Core results  

Barclays Core

 

Barclays Non-Core

for the nine months ended

30.09.15

30.09.14

 

 

30.09.15

30.09.14

  

 

£m

£m

% Change

 

£m

£m

% Change

Total income net of insurance claims

19,042 

18,682 

2 

 

48 

1,028 

(95)

Credit impairment charges and other provisions

(1,406)

(1,429)

2 

 

(62)

(166)

63 

Net operating income/(expenses)  

17,636 

17,253 

2 

 

(14)

862 

 

Operating expenses

(10,985)

(10,870)

(1)

 

(669)

(1,181)

43 

Litigation and conduct

(153)

(194)

21 

 

(119)

(115)

(3)

Costs to achieve

(494)

(655)

25 

 

(45)

(171)

74 

Total operating expenses

(11,632)

(11,719)

1 

 

(833)

(1,467)

43 

Other net income/(expenses)

1 

53 

(98)

 

(2)

(43)

95 

Profit/(loss) before tax  

6,005 

5,587 

7 

 

(849)

(648)

(31)

Tax (charge)/credit

(1,693)

(1,774)

5 

 

212 

144 

47 

Profit/(loss) after tax   

4,312 

3,813 

13 

 

(637)

(504)

(26)

Non-controlling interests

(448)

(458)

2 

 

(47)

(93)

49 

Other equity holders

(192)

(129)

(49)

 

(46)

(41)

(12)

Attributable profit/(loss)

3,672 

3,226 

14 

 

(730)

(638)

(14)

 

 

 

 

 

 

 

  

Performance measures

 

 

 

 

 

 

 

Return on average tangible equity1 

12.7%

12.8%

 

 

(4.4%)

(5.4%)

  

Average allocated tangible equity (£bn)

39 

34 

 

 

9 

14 

  

Return on average equity1 

10.5%

10.5%

 

 

(3.4%)

(4.2%)

  

Average allocated equity (£bn)

47 

41 

 

 

9 

14 

  

Period end allocated equity (£bn)

48 

44 

 

 

9 

12 

  

Cost: income ratio

61%

63%

 

 

n/m

n/m

  

Loan loss rate (bps)

43 

45 

 

 

13 

40 

  

Basic earnings per share contribution

22.3p

20.0p

 

 

(4.4p)

(3.9p)

  

 

 

 

 

 

 

 

 

Capital management

30.09.15

30.06.15

 

 

30.09.15

30.06.15

  

Risk weighted assets

£327bn

£320bn

 

 

£55bn

£57bn

  

Leverage exposure

£989bn

£973bn

 

 

£152bn

£166bn

  

 

  

Nine months ended

30.09.15

Nine months ended

30.09.14

  

Income by business

£m

£m

% Change

Personal and Corporate Banking

6,564 

6,597 

(1)

Barclaycard

3,649 

3,247 

12 

Africa Banking

2,719 

2,701 

1 

Investment Bank

6,110 

5,922 

3 

Head Office  

- 

215 


Barclays Core

19,042 

18,682 

2 

Barclays Non-Core

48 

1,028 

(95)

Barclays Group adjusted income

19,090 

19,710 

(3)

 

  

Nine months ended

30.09.15

Nine months ended

30.09.14

  

Profit/(loss) before tax by business

£m

£m

% Change

Personal and Corporate Banking

2,383 

2,257 

6 

Barclaycard

1,303 

1,126 

16 

Africa Banking

791 

756 

5 

Investment Bank

1,757 

1,342 

31 

Head Office

(229)

106 


Barclays Core

6,005 

5,587 

7 

Barclays Non-Core

(849)

(648)

(31)

Barclays Group adjusted profit before tax

5,156 

4,939 

4 

 

1

Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on average equity and average tangible equity of the Non-Core business.

 

Group Performance Review

Income statement

 

Group performance

Adjusted profit before tax increased 4% to £5,156m reflecting improvements in all Core operating businesses and positive cost to income jaws

Adjusted income decreased 3% to £19,090m as Non-Core income reduced £980m to £48m. This was partially offset by Core income increasing 2% to £19,042m

Credit impairment charges reduced 8% to £1,468m with the loan loss rate improving 3bps to 40bps

 

-

Credit impairment charges included less than £75m in respect of clients in the commodities sector in the nine months to 30 September 2015

Adjusted total operating expenses were down 5% to £12,465m as a result of savings from strategic cost programmes, particularly in Non-Core, the Investment Bank and Personal and Corporate Banking (PCB), reductions in costs to achieve to £539m (2014: £826m) and litigation and conduct charges to £272m (2014: £309m)

Statutory profit before tax was £3,975m (2014: £3,722m) which also included an own credit gain of £605m (2014: £96m), a £496m (2014: £461m) gain on US Lehman acquisition assets, a £429m (2014: £nil) gain on the valuation of a component of the defined retirement benefit liability, an additional £1,322m (2014: £910m) of provisions for UK customer redress, £1,070m (2014: £500m) of additional provisions for ongoing investigations and litigation including Foreign Exchange, and £319m (2014: £364m) of losses on sale relating to the Spanish and Portuguese businesses

The effective tax rate on adjusted profit before tax decreased to 28.7% (2014: 33.0%) and on statutory profit before tax decreased to 30.5% (2014: 40.2%). The reduction reflects the expected full year rate adjusted for the impact of significant one-off items, including adjusting items and the UK bank levy, which are recognised in the period in which they occur. The reduction in the effective tax rate on statutory profit before tax also reflects the non-deductible impairment of assets on the sale of the Spanish business in 2014

Adjusted attributable profit was £2,942m (2014: £2,588m) resulting in an adjusted return on average shareholders' equity of 7.1% (2014: 6.3%)

 

Core performance

Profit before tax increased 7% to £6,005m with improvements in all Core operating businesses, partially offset by a loss before tax in Head Office of £229m (2014: profit of £106m)

 

-

Growth in profit before tax in the Investment Bank and Barclaycard was particularly strong, increasing 31% to £1,757m and 16% to £1,303m respectively

 

-

PCB profit before tax improved 14% to £2,568m when excluding the impact of the loss on sale of the US Wealth business and US Wealth customer redress

Income increased 2% to £19,042m

 

-

Barclaycard income increased 12% to £3,649m reflecting growth in US cards and Business Solutions through continued focus on profitable asset growth

 

-

Investment Bank income increased 3% to £6,110m reflecting a 9% improvement in Macro due to higher income in rates and currency products, a 6% increase in Banking income driven by higher advisory and debt underwriting fees, and lending income, and a 4% increase in Equities income due to higher income in equity derivatives. Credit income decreased 11% due to lower distressed credit and securitised products income, partially offset by higher revenues in the flow credit business

 

-

Africa Banking income increased 1% to £2,719m. On a constant currency basis1 income increased 6% reflecting solid growth in Retail and Business Banking (RBB) in South Africa, and strong growth outside of South Africa

 

-

PCB income decreased 1% to £6,564m. Excluding the impact of lower income in the US Wealth business, the sale of which is expected to complete in Q415, PCB income increased 1%. Corporate income grew 5% from balance growth and improved deposit margins, while Personal income reduced 3% due to mortgage margin pressure and lower fee income

 

-

Net interest income in PCB, Barclaycard and Africa Banking increased 6% to £8,984m driven by margin improvement in Barclaycard, and volume growth in Barclaycard and PCB. Net interest margin increased 8bps to 4.17%

 

-

Head Office income decreased to £nil (2014: £215m) impacted by the non-recurrence of net gains from foreign exchange recycling arising from the restructure of Group subsidiaries and gains resulting from a liability management exercise in 2014

Credit impairment charges reduced 2% to £1,406m primarily due to a 28% improvement in PCB impairment due to the improving UK economic environment resulting in lower default rates and charges

Total operating expenses reduced 1% to £11,632m, reflecting savings from strategic cost programmes, principally in the Investment Bank and PCB, and lower costs to achieve of £494m (2014: £655m). This was partially offset by Barclaycard total operating expenses which increased 14% primarily due to continued investment in business growth and the impact of non-recurring items, including an asset write-off of £55m and certain marketing costs. Head Office costs also increased £127m to £233m primarily due to costs relating to the implementation of structural reform

Attributable profit increased 14% to £3,672m, while average allocated equity increased £6bn to £47bn as capital was redeployed from Non-Core, resulting in a Core return on average equity of 10.5% (2014: 10.5%)

 

1

Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the nine months ended 30 September 2015.

 

Non-Core performance    

Loss before tax increased 31% to £849m reflecting:

 

-

A reduction in income of £980m to £48m following assets and securities rundown, business sales, including the impact of the sale of the Spanish and UAE businesses, and fair value losses on the Education, Social Housing, and Local Authority (ESHLA) portfolio of £203m (2014: £41m)

 

-

An improvement in credit impairment charges to £62m (2014: £166m) primarily reflecting the sale of the Spanish business and higher recoveries in Europe

 

-

A 43% reduction in total operating expenses to £833m due to savings from strategic cost programmes, the sale of the Spanish and UAE businesses, and reduced costs to achieve

Non-Core return on average equity dilution was 3.4% (2014: 4.2%) reflecting a £5bn reduction in average allocated equity to £9bn. Period end allocated equity reduced to £9bn

 

 

Balance sheet, leverage and capital

Total assets increased 3% to £1,237bn compared to 30 June 2015 while leverage exposure remained stable at £1,141bn

 

-

Net derivative leverage exposure, excluding Potential Future Exposure (PFE), increased £6bn primarily due to an increase in balance sheet assets of £38bn to £379bn (broadly matched by an increase in derivative liabilities), principally reflecting movements in the major interest rate forward curves. This was largely offset by an increase in regulatory derivative netting of £35bn to £343bn

 

-

The PFE on derivatives decreased £5bn to £155bn mainly as a result of continued legacy portfolio rundown and trade compressions and tear-ups

 

-

Securities Financing Transactions leverage exposure decreased £6bn, primarily due to reverse repurchase agreements decreasing £9bn to £84bn, mainly driven by lower matched book trading due to balance sheet deleveraging

 

-

Leverage loans and advances and other assets increased by £7bn to £710bn. This included lending growth of £4bn in PCB and £3bn in Barclaycard, and a £2bn increase in settlement balances. This was partially offset by a £2bn decrease in Africa Banking reflecting the depreciation of ZAR against GBP

The leverage ratio increased to 4.2% (30 June 2015: 4.1%) due to an increase in fully loaded Tier 1 capital to £47.9bn (30 June 2015: £46.5bn), driven by the issuance of £1bn of Additional Tier 1 (AT1) securities

The fully loaded CRD IV CET1 ratio remained stable at 11.1% (30 June 2015: 11.1%) with CET1 capital increasing £0.4bn to £42.4bn offset by RWAs increasing £5bn to £382bn

 

-

The increase in CET1 capital was driven by £0.5bn profits after absorbing adjusting items. After adjusting for the impacts of own credit and dividends paid and foreseen, capital generated from earnings increased CET1 capital by £0.3bn. Net increases in other qualifying reserves, which included currency translation reserve movements and pension valuation adjustments, were offset by increases in regulatory deductions, primarily due to the increase in the firm's prudential valuation adjustment (PVA), reflecting increased valuation uncertainty on the ESHLA portfolio

 

-

The increase in RWAs was driven by a £7bn increase in Core RWAs to £327bn, primarily in the Investment Bank and PCB, partially offset by a £2bn decrease in Non-Core RWAs to £55bn

Net asset value and net tangible asset value per share increased to 337p (30 June 2015: 328p) and 289p (30 June 2015: 279p) respectively driven by profit generated for the period, an increase in the cash flow hedging reserve and other favourable reserve movements as mentioned above

 

Funding and liquidity

 

The Group continued to maintain surpluses to its internal and regulatory requirements in Q315 with a liquidity pool of £142bn as at 30 September 2015 (30 June 2015: £145bn) and Liquidity Coverage Ratio (LCR) of 118% (30 June 2015: 121%), equivalent to a surplus of £22bn (30 June 2015: £26bn). The quarterly reduction in liquidity surpluses reflects the previously anticipated funding impacts due to the reassessment of sovereign support and updated rating methodologies by credit rating agencies in H115

Wholesale funding outstanding excluding repurchase agreements was £147bn (30 June 2015: £157bn). The Group issued £1.2bn of term unsecured funding net of early redemptions during Q315, of which £1.3bn was in public and private senior unsecured debt issued by the holding company, Barclays PLC. During the quarter, Barclays PLC also issued £1bn of AT1 securities. All the capital and debt proceeds raised by Barclays PLC have been used to subscribe for instruments at Barclays Bank PLC, the operating company with a ranking corresponding to the securities issued by Barclays PLC

 

Other matters

Additional provisions of £1,070m (2014: £500m) were recognised in relation to ongoing investigations and litigation including Foreign Exchange. This included provisions of £270m in Q315 relating to the settlement of two residential mortgage backed securities claims with the National Credit Union Administration and the settlement of certain legacy benchmark litigation

Additional UK customer redress provisions of £1,322m (2014: £910m) were recognised. This included:

 

-

A Q315 provision of £290m redress costs as a result of an internal review relating to rates provided to certain customers on foreign exchange transactions between 2005 and 2012

 

-

H115 charges of £282m for Packaged Bank Account redress costs and £750m of PPI redress costs. No additional provisions for PPI redress were made in Q315

Barclays notes the Financial Conduct Authority's (FCA) announcement of its proposed consultation for the introduction of a deadline by which consumers would need to make their PPI complaints or else lose their right to have them assessed. This consultation is also expected to propose rules and guidance concerning the handling of PPI complaints in light of the 2014 Supreme Court decision in Plevin v Paragon Personal Finance Ltd, with Plevin-type complaints also being subject to the same deadline. Barclays will continue to monitor these developments in its assessment of provisioning for PPI related costs and redress

A loss on sale of £201m (2014: £nil) was recognised in Q315 relating to the announced sale of the Portuguese retail business within Non-Core, which is due to complete in Q116. This is in addition to the loss of £118m recognised in H115 relating to the sale of the Spanish business

A £496m (2014: £461m) gain on US Lehman acquisition assets was recognised in Q215. Barclays has reached a settlement with the Securities Investor Protection Act Trustee for Lehman Brothers Inc. (LBI) to resolve outstanding litigation between the parties relating to the acquisition of most of the assets of LBI in September 2008

A £429m (2014: £nil) gain was recognised in H115 as the valuation of a component of the defined retirement benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with statutory provisions

 

Dividends

A third interim dividend for 2015 of 1p will be paid on 11 December 2015

 

Guidance and outlook

2016 Core cost guidance has been increased from the previous level of less than £14.5bn excluding costs to achieve, to incorporate approximately £0.4bn of costs relating to the implementation of structural reform. Together with £0.1bn of structural reform implementation costs in 2015, an estimated £1bn of implementation costs are expected over the life of the programme

The 2016 Core return on equity excluding costs to achieve guidance has been revised to 11% reflecting the impacts of the tax changes set out in the 2015 UK summer budget and increased costs relating to the implementation of structural reform

The accelerated Non-Core RWA target of around £20bn at the end of 2017 is unchanged

Non-Core guidance for 2016 has been revised from the previous return on equity drag of less than 3% and replaced with a quarterly cost run-rate excluding UK bank levy, litigation and conduct charges, and costs to achieve of £125m per quarter from Q416, as the accelerated rundown is implemented

The Investment Bank has seen weaker market conditions in October in comparison to October 2014. However, it is too early to make any specific comment on Q4 performance

 

Tushar Morzaria, Group Finance Director

 

Results by Business

  

Nine months ended

Nine months ended


Personal and Corporate Banking

30.09.15

30.09.14

YoY

Income statement information

£m

£m

% Change

Total income  

6,564 

6,597 

(1)

Credit impairment charges and other provisions  

(260)

(359)

28 

Net operating income

6,304 

6,238 

1 

Operating expenses  

(3,651)

(3,747)

3 

Litigation and conduct  

(31)

(39)

21 

Costs to achieve

(204)

(205)

- 

Total operating expenses

(3,886)

(3,991)

3 

Other net (expenses)/income

(35)

10 


Profit before tax

2,383 

2,257 

6 

Attributable profit

1,748 

1,617 

8 

  

 

 

 

  

As at 30.09.15

As at 30.06.15


Balance sheet information

£bn

£bn


Loans and advances to customers at amortised cost

220.8 

217.5 


Total assets

294.0 

289.9 


Customer deposits

302.5 

298.5 


Risk weighted assets

122.2 

120.6 


  

 

 

 

 

Nine months ended

Nine months ended


Performance measures

30.09.15

30.09.14


Return on average tangible equity

17.3%

16.7%


Average allocated tangible equity (£bn)

13.6 

13.0 


Return on average equity

13.0%

12.5%


Average allocated equity (£bn)

18.1 

17.3 


Cost: income ratio

59%

60%


Loan loss rate (bps)

15 

22 


Net interest margin  

2.99%

2.99%


  

 

 

 

  

 

 

YoY

Analysis of total income  

£m

£m

% Change

Personal  

3,032 

3,114 

(3)

Corporate  

2,812 

2,670 

5 

Wealth  

720 

813 

(11)

Total income  

6,564 

6,597 

(1)

  

 

 

 

  

As at 30.09.15

As at 30.06.15


Analysis of loans and advances to customers at amortised cost

£bn

£bn


Personal  

137.7 

137.8 


Corporate  

69.0 

66.0 


Wealth  

14.1 

13.7 


Total loans and advances to customers at amortised cost

220.8 

217.5 


  

 

 

 

Analysis of customer deposits  

 

 

 

Personal  

148.7 

146.3 


Corporate  

123.2 

120.3 


Wealth  

30.6 

31.9 


Total customer deposits

302.5 

298.5 


 

  

Nine months ended

Nine months ended


Barclaycard

30.09.15

30.09.14

YoY

Income statement information

£m

£m

% Change

Total income

3,649 

3,247 

12 

Credit impairment charges and other provisions

(848)

(821)

(3)

Net operating income

2,801 

2,426 

15 

Operating expenses  

(1,441)

(1,271)

(13)

Costs to achieve  

(83)

(68)

(22)

Total operating expenses

(1,524)

(1,339)

(14)

Other net income

26 

39 

(33)

Profit before tax

1,303 

1,126 

16 

Attributable profit

919 

801 

15 

  

 

 

 

  

As at 30.09.15

As at 30.06.15


Balance sheet information

£bn

£bn


Loans and advances to customers at amortised cost

38.2 

36.9 


Total assets

45.8 

41.9 


Customer deposits

8.3 

7.7 


Risk weighted assets  

40.7 

40.3 


  

 

 

 

 

Nine months ended

Nine months ended


Performance measures

30.09.15

30.09.14


Return on average tangible equity

24.7%

23.0%


Average allocated tangible equity (£bn)

5.0 

4.7 


Return on average equity

19.6%

18.5%


Average allocated equity (£bn)

6.3 

5.8 


Cost: income ratio

42%

41%


Loan loss rate (bps)

271 

301 


Net interest margin  

9.12%

8.98%


 

Africa Banking

 

 

 

Constant currency1 

Nine months ended

Nine months ended

  

Nine months ended

Nine months ended

  

30.09.15

30.09.14

YoY

30.09.15

30.09.14

YoY

Income statement information

£m

£m

% Change

£m

£m

% Change

Total income net of insurance claims

2,719 

2,701 

1 

2,719 

2,568 

6 

Credit impairment charges and other provisions

(262)

(270)

3 

(262)

(256)

(2)

Net operating income

2,457 

2,431 

1 

2,457 

2,312 

6 

Operating expenses  

(1,652)

(1,654)

- 

(1,652)

(1,575)

(5)

Litigation and conduct  

- 

(1)

 

- 

(1)


Costs to achieve

(20)

(28)

29 

(20)

(27)

26 

Total operating expenses

(1,672)

(1,683)

1 

(1,672)

(1,603)

(4)

Other net income

6 

8 

(25)

6 

7 

(14)

Profit before tax

791 

756 

5 

791 

716 

10 

Attributable profit

298 

272 

10 

298 

256 

16 

 

 

 

 

 

 

 

  

As at 30.09.15

As at 30.06.15

  

As at 30.09.15

As at 30.06.15

  

Balance sheet information

£bn

£bn

  

£bn

£bn

  

Loans and advances to customers at amortised cost

31.7 

33.8 

  

31.7 

30.9 

  

Total assets

52.2 

54.0 

  

52.2 

49.5 

  

Customer deposits

31.8 

34.4 

  

31.8 

31.5 

  

Risk weighted assets

36.0 

36.4 

  

36.0 

33.2 

  

  

 

 

  

 

 

  

 

Nine months ended

Nine months ended

  

 

 

 

Performance measures

30.09.15

30.09.14

  

 

 

 

Return on average tangible equity

13.7%

13.2%

  

 

 

 

Average allocated tangible equity (£bn)

2.9 

2.7 

  

 

 

  

Return on average equity

10.1%

9.6%

  

 

 

 

Average allocated equity (£bn)

3.9 

3.8 

  

 

 

  

Cost: income ratio

61%

62%

  

 

 

 

Loan loss rate (bps)

101 

97 

  

 

 

 

Net interest margin  

5.98%

5.96%

  

 

 

 

 

1

Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the nine months ended 30 September 2015 for the income statement and the 30 September 2015 exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the reporting periods.

 

  

Nine months ended

Nine months ended

 

Investment Bank

30.09.15

30.09.14

YoY

Income statement information

£m

£m

% Change

Total income

6,110 

5,922 

3 

Credit impairment (charges)/releases and other provisions

(36)

21 

 

Net operating income

6,074 

5,943 

2 

Operating expenses

(4,059)

(4,153)

2 

Litigation and conduct  

(101)

(96)

(5)

Costs to achieve

(157)

(352)

55 

Total operating expenses

(4,317)

(4,601)

6 

Profit before tax

1,757 

1,342 

31 

Attributable profit

943 

547 

72 

  

 

 

 

  

As at 30.09.15

As at 30.06.15

 

Balance sheet information

£bn

£bn

 

Loans and advances to banks and customers at amortised cost1 

128.9 

123.1 

 

Trading portfolio assets

79.9 

81.8 

 

Derivative financial instrument assets

137.0 

118.5 

 

Derivative financial instrument liabilities  

145.7 

127.7 

 

Reverse repurchase agreements and other similar secured lending

69.3 

58.4 

 

Total assets

452.0 

420.1 

 

Risk weighted assets

120.5 

115.3 

 

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.15

30.09.14

 

Return on average tangible equity

9.1%

5.1%

 

Average allocated tangible equity (£bn)

14.0 

14.6 

 

Return on average equity

8.6%

4.9%

 

Average allocated equity (£bn)

14.9 

15.3 

 

Cost: income ratio

71%

78%

 

 

 

 

 

 

 

  

YoY

Analysis of total income  

£m

£m

% Change

Investment banking fees

1,637 

1,584 

3 

Lending

360 

306 

18 

Banking

1,997 

1,890 

6 

Credit

774 

871 

(11)

Equities

1,676 

1,615 

4 

Macro

1,663 

1,526 

9 

Markets

4,113 

4,012 

3 

Banking & Markets

6,110 

5,902 

4 

Other

- 

20 

 

Total income

6,110 

5,922 

3 

 

1

As at 30 September 2015 loans and advances included £103.9bn (30 June 2015: £99.1bn) of loans and advances to customers (including settlement balances of £44.3bn (30 June 2015: £40.4bn) and cash collateral of £29.5bn (30 June 2015: £28.6bn)) and loans and advances to banks of £25.0bn (30 June 2015: £24.0bn) (including settlement balances of £5.0bn (30 June 2015: £5.9bn) and cash collateral of £6.7bn (30 June 2015: £6.4bn)).

 

  

Nine months ended

Nine months ended

Head Office  

30.09.15

30.09.14

Income statement information

£m

£m

Net operating income

-

215 

Operating expenses

(182)

(46)

Litigation and conduct  

(21)

(58)

Costs to achieve  

(30)

(2)

Total operating expenses

(233)

(106)

Other net income/(expenses)

4 

(3)

(Loss)/profit before tax 

(229)

106 

Attributable loss

(236)

(11)

 

 

 

  

As at 30.09.15

As at 30.06.15

Balance sheet information  

£bn

£bn

Total assets

47.1 

52.6 

Risk weighted assets  

7.6 

7.5 

 

 

 

Nine months ended

 

Nine months ended


Barclays Non-Core

30.09.15

30.09.14

YoY

Income statement information

£m

£m

% Change

Total income net of insurance claims  

48 

1,028 

(95)

Credit impairment charges and other provisions

(62)

(166)

63 

Net operating income

(14)

862 


Operating expenses

(669)

(1,181)

43 

Litigation and conduct  

(119)

(115)

(3)

Costs to achieve  

(45)

(171)

74 

Total operating expenses

(833)

(1,467)

43 

Other net expenses

(2)

(43)

95 

Loss before tax

(849)

(648)

(31)

Attributable loss

(730)

(638)

(14)

  

 

 

 

  

As at 30.09.15

As at 30.06.15


Balance sheet information

£bn

£bn


Loans and advances to banks and customers at amortised cost1 

50.9 

53.9 


Loans and advances to customers at fair value

17.6 

17.0 


Derivative financial instrument assets

239.5 

220.9 


Derivative financial instrument liabilities  

231.0 

213.6 


Reverse repurchase agreements and other similar secured lending

7.1 

15.6 


Total assets

345.4 

338.2 


Customer deposits

17.9 

19.6 


Risk weighted assets

54.8 

56.6 


Leverage exposure  

151.7  

166.3 


  

 

 

 

 

Nine months ended

Nine months ended


Performance measures

30.09.15

30.09.14


Return on average tangible equity2 

(4.4%)

(5.4%)


Average allocated tangible equity (£bn)

9.2 

13.6 


Return on average equity2 

(3.4%)

(4.2%)


Average allocated equity (£bn)

9.3 

13.8 


Period end allocated equity (£bn)

8.5 

12.1 


  

 

 

YoY

Analysis of total income net of insurance claims  

£m

£m

% Change

Businesses  

474 

873 

(46)

Securities and loans  

(253)

259 


Derivatives  

(173)

(104)

(66)

Total income net of insurance claims  

48 

1,028 

(95)

 

1

As at 30 September 2015 loans and advances included £39.0bn (30 June 2015: £42.7bn) of loans and advances to customers (including settlement balances of £0.4bn (30 June 2015: £1.0bn) and cash collateral of £19.4bn (30 June 2015: £18.0bn)) and loans and advances to banks of £11.9bn (30 June 2015: £11.2bn) (including settlement balances of £0.0bn (30 June 2015: £0.2bn) and cash collateral of £11.4bn (30 June 2015: £10.5bn)).

2

Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on average equity and average tangible equity of the Non-Core business.

 

Quarterly Results Summary

Barclays results by quarter

Q315

Q215

Q115

 

Q414

Q314

Q214

Q114


Q4131

£m

£m

£m

 

£m

£m

£m

£m


£m

Adjusted basis 

 

 

 

 

 

 

 

 

 

 

Total income net of insurance claims 

6,108 

6,552 

6,430 

 

6,018 

6,378 

6,682 

6,650 


6,639 

Credit impairment charges and other provisions 

(495)

(496)

(477)

 

(573)

(509)

(538)

(548)


(718)

Net operating income 

5,613 

6,056 

5,953 

 

5,445 

5,869 

6,144 

6,102 


5,921 

Operating expenses

(3,842)

(3,897)

(3,915)

 

(3,942)

(3,879)

(4,042)

(4,130)


(4,500)

Litigation and conduct

(138)

(77)

(57)

 

(140)

(98)

(146)

(65)


(104)

Costs to achieve

(223)

(196)

(120)

 

(339)

(332)

(254)

(240)


(468)

UK bank levy 

- 

- 

- 

 

(462)

- 

- 

- 


(504)

Total operating expenses

(4,203)

(4,170)

(4,092)

 

(4,883)

(4,309)

(4,442)

(4,435)


(5,576)

Other net income/(expenses)

17 

(37)

19 

 

1 

30 

(46)

26 


19 

Adjusted profit before tax

1,427 

1,849 

1,880 

 

563 

1,590 

1,656 

1,693 


364 


 

 

 

 

 

 

 

 

 

 

Adjusting items

 

 

 

 

 

 

 

 

 

 

Own credit

195 

282 

128 

 

(62)

44 

(67)

119 


(95)

Gain on US Lehman acquisition assets

- 

496 

- 

 

- 

461 

- 

- 


- 

ESHLA valuation revision

- 

- 

- 

 

(935)

- 

- 

- 


- 

Gain on valuation of a component of the defined retirement benefit liability

- 

- 

429 

 

- 

- 

- 

- 


- 

Provisions for ongoing investigations and litigation including Foreign Exchange

(270)

- 

(800)

 

(750)

(500)

- 

- 


(173) 

Provisions for UK customer redress

(290)

(850)

(182)

 

(200)

(10)

(900)

- 


- 

Goodwill impairment 

- 

- 

- 

 

- 

- 

- 

- 


(79)

Losses on sale relating to the Spanish and Portuguese businesses

(201)

- 

(118)

 

(82)

(364)

- 

- 


- 

Statutory profit/(loss) before tax

861 

1,777 

1,337 

 

(1,466)

1,221 

689 

1,812 


17 

Tax (charge)/credit

(208)

(394)

(612)

 

85 

(601)

(298)

(597)


(531)

Statutory profit/(loss) after tax

653 

1,383 

725 

 

(1,381)

620 

391 

1,215 


(514)

  

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

Ordinary equity holders of the parent

417 

1,146 

465 

 

(1,679)

379 

161 

965 


(642)

Other equity holders

79 

79 

80 

 

80 

80 

41 

49 


- 

Non-controlling interests

157 

158 

180 

 

218 

161 

189 

201 


128 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn


£bn

Total assets

1,236.5 

1,196.7 

1,416.4 

 

1,357.9 

1,365.7 

1,314.9 

1,362.1 


1,343.6 

Risk weighted assets

381.9 

376.7 

395.9 

 

401.9 

412.9 

411.1 

436.3 


442.5 

  

 

 

 

 

 

 

 

 

 

 

Adjusted performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

6.7%

9.1%

9.0%

 

1.7%

7.1%

7.5%

7.6%


(2.4%)

Average tangible shareholders' equity

47.9 

47.7 

48.7 

 

48.9 

47.6 

47.5 

47.2 


47.1 

Return on average shareholders' equity

5.7%

7.8%

7.7%

 

1.5%

6.1%

6.4%

6.5%


(2.1%)

Average shareholders' equity

56.1 

56.0 

57.0 

 

57.1 

55.6 

55.3 

54.8 


54.9 

Cost: income ratio 

69%

64%

64%

 

81%

68%

66%

67%


84%

Loan loss rate (bps)

40 

41 

37 

 

48 

42 

44 

45 


59 

Basic earnings/(loss) per share 

4.8p

6.5p

6.6p

 

1.3p

5.2p

5.4p

5.5p


(2.0p)

  

 

 

 

 

 

 

 

 

 

 

Statutory performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

3.6%

9.8%

4.0%

 

(13.8%)

3.4%

1.4%

8.4%


(5.5%)

Average tangible shareholders' equity

47.6 

47.2 

48.1 

 

48.3 

46.8 

46.7 

46.4 


46.3 

Return on average shareholders' equity

3.1%

8.4%

3.4%

 

(11.8%)

2.9%

1.2%

7.2%


(4.7%)

Average shareholders' equity

55.8 

55.5 

56.3 

 

56.4 

54.8 

54.5 

54.0 


54.1 

Cost: income ratio 

76%

68%

71%

 

116%

70%

81%

66%


89%

Basic earnings/(loss) per share 

2.6p

7.0p

2.9p

 

(10.2p)

2.4p

1.0p

6.0p


(4.5p)

 

1

Q413 adjusted total operating expenses and profit before tax have been revised to account for the reclassification of £173m of charges, relating to a US residential mortgage-related business settlement with the Federal Housing Finance Agency, to provisions for ongoing investigations and litigation including Foreign Exchange to aid comparability. 

 

Barclays Core

Q315

Q215

Q115

 

Q414

Q314

Q214

Q114


Q413

Income statement information

£m

£m

£m

 

£m

£m

£m

£m


£m

Total income net of insurance claims 

6,102 

6,520 

6,420 

 

5,996 

6,008 

6,397 

6,277 


6,189 

Credit impairment charges and other provisions 

(470)

(488)

(448)

 

(571)

(492)

(456)

(481)


(542)

Net operating income 

5,632 

6,032 

5,972 

 

5,425 

5,516 

5,941 

5,796 


5,647 

Operating expenses

(3,626)

(3,663)

(3,696)

 

(3,614)

(3,557)

(3,602)

(3,710)


(4,045)

Litigation and conduct

(64)

(41)

(48)

 

(56)

(16)

(136)

(43)


(69)

Costs to achieve

(201)

(184)

(109)

 

(298)

(202)

(237)

(216)


(365)

UK bank levy 

- 

- 

- 

 

(371)

- 

- 

- 


(395)

Total operating expenses

(3,891)

(3,888)

(3,853)

 

(4,339)

(3,775)

(3,975)

(3,969)


(4,874)

Other net income/(expenses)

23 

(39)

17 

 

9 

6 

27 

20 


15 

Profit before tax 

1,764 

2,105 

2,136 

 

1,095 

1,747 

1,993 

1,847 


788 

Attributable profit

1,115 

1,273 

1,284 

 

638 

1,002 

1,171 

1,053 


601 

  

 

 

 

 

 

 

 

 

 

  

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn


£bn

Total assets

891.1 

858.5 

949.6 

 

886.5 

899.3 

846.3 

863.7 


832.4 

Risk weighted assets  

327.0 

320.1 

331.1 

 

326.6 

331.9 

323.6 

330.3 


332.6 

 

 

 

 

 

 

 

 

 

 

 

Performance measures  

 

 

 

 

 

 

 

 

 

  

Return on average tangible equity  

11.4%

13.3%

13.5%

 

7.0%

11.5%

13.8%

13.2%


7.6%

Average allocated tangible equity (£bn)

39.6 

38.6 

38.5 

 

37.0 

35.2 

34.0 

32.2 


31.4 

Return on average equity  

9.5%

11.0%

11.1%

 

5.8%

9.5%

11.3%

10.7%


6.2%

Average allocated equity (£bn)

47.7 

46.7 

46.7 

 

45.0 

43.0 

41.6 

39.6 


38.9 

Cost: income ratio

64%

60%

60%

 

72%

63%

62%

63%


79%

Loan loss rate (bps)  

 43 

 45 

 41 

 

 55 

 46 

 44 

 60 


 56 

Basic earnings per share contribution  

6.8p

7.7p

7.8p

 

4.0p

6.2p

7.2p

6.5p


4.2p

 

Barclays Non-Core

Q315

Q215

Q115

 

Q414

Q314

Q214

Q114


Q4131

Income statement information

£m

£m

£m


£m

£m

£m

£m


£m

Businesses

199 

153 

122 


228 

327 

245 

301 


322 

Securities and loans

(138)

(42)

(73)


(142)

106 

66 

87 


121 

Derivatives

(55)

(79)

(39)


(64)

(63)

(26)

(15)


7 

Total income net of insurance claims

6 

32 

10 


22 

370 

285 

373 


450 

Credit impairment charges and other provisions 

(25)

(8)

(29)


(2)

(17)

(82)

(67)


(176)

Net operating (expense)/income

(19)

24 

(19)


20 

353 

203 

306 


274 

Operating expenses

(216)

(234)

(219)


(329)

(321)

(441)

(419)


(456)

Litigation and conduct

(74)

(36)

(9)


(83)

(82)

(10)

(23)


(35)

Costs to achieve  

(22)

(12)

(11)


(41)

(130)

(17)

(24)


(103)

UK bank levy

- 

- 

- 


(91)

- 

- 

- 


(109)

Total operating expenses   

(312)

(282)

(239)


(544)

(533)

(468)

(466)


(703)

Other net (expenses)/income

(6)

2 

2 


(8)

23 

(72)

6 


4 

Loss before tax

(337)

(256)

(256)


(532)

(157)

(337)

(154)


(425)

Attributable loss

(328)

(203)

(199)


(448)

(173)

(294)

(171)


(890)

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn


£bn

Loans and advances to banks and customers at amortised cost

50.9 

53.9 

65.6 


63.9 

64.5 

75.5 

83.4 


81.9 

Loans and advances to customers at fair value

17.6 

17.0 

18.5 


18.7 

18.1 

17.0 

17.5 


17.6 

Derivative financial instrument assets

239.5 

220.9 

301.9 


285.4 

249.6 

227.0 

231.5 


239.3 

Derivative financial instrument liabilities

231.0 

213.6 

295.6 


277.1 

240.0 

215.0 

220.9 


228.3 

Reverse repurchase agreements and other similar secured lending

7.1 

15.6 

42.8 


49.3 

73.9 

86.8 

98.3 


104.7 

Total assets

345.4 

338.2 

466.8 


471.5 

466.5 

468.6 

498.4 


511.2 

Customer deposits

17.9 

19.6 

20.5 


21.6 

22.2 

28.6 

30.7 


29.3 

Risk weighted assets

54.8 

56.6 

64.8 


75.3 

81.0 

87.5 

106.0 


109.9 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity2 

(4.7%)

(4.2%)

(4.5%)


(5.3%)

(4.4%)

(6.3%)

(5.6%)


(10.0%)

Average allocated tangible equity (£bn)

8.3 

9.1 

10.2 


11.9 

12.4 

13.5 

15.0 


15.7 

Return on average equity2 

(3.8%)

(3.2%)

(3.4%)


(4.3%)

(3.4%)

(4.9%)

(4.2%)


(8.3%)

Average allocated equity (£bn)

8.4 

9.3 

10.3 


12.1 

12.6 

13.7 

15.2 


16.0 

Period end allocated equity (£bn)

8.5 

8.3 

9.7 


11.0 

12.1 

12.7 

14.9 


15.1 

Basic earnings per share contribution

(2.0p)

(1.2p)

(1.2p)


(2.7p)

(1.0p)

(1.8p)

(1.0p)


(6.2p)

 

1

Q413 total operating expenses and profit before tax have been revised to account for the reclassification of £173m of charges, relating to a US residential mortgage-related business settlement with the Federal Housing Finance Agency, to provisions for ongoing investigations and litigation including Foreign Exchange to aid comparability.

2

Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on average equity and average tangible equity of the Non-Core business.

 

Quarterly Core Results by Business

Personal and Corporate Banking

Q315

Q215

Q115

 

Q414

Q314

Q214

Q114


Q413

Income statement information

£m

£m

£m

 

£m

£m

£m

£m


£m

Total income  

2,180 

2,210 

2,174 

 

2,231 

2,236 

2,188 

2,173 


2,166 

Credit impairment charges and other provisions 

(82)

(99)

(79)

 

(123)

(129)

(95)

(135)


(169)

Net operating income 

2,098 

2,111 

2,095 

 

2,108 

2,107 

2,093 

2,038 


1,997 

Operating expenses  

(1,185)

(1,232)

(1,234)

 

(1,204)

(1,222)

(1,247)

(1,278)


(1,371)

Litigation and conduct

(6)

(23)

(2)

 

(15)

(10)

(9)

(20)


(17)

Costs to achieve  

(65)

(97)

(42)

 

(195)

(90)

(58)

(57)


(219)

UK bank levy

- 

- 

- 

 

(70)

- 

- 

- 


(66)

Total operating expenses   

(1,256)

(1,352)

(1,278)

 

(1,484)

(1,322)

(1,314)

(1,355)


(1,673)

Other net income/(expenses)

13 

(50)

2 

 

4 

4 

1 

5 


3 

Profit before tax 

855 

709 

819 

 

628 

789 

780 

688 


327 

Attributable profit

646 

500 

602 

 

441 

578 

559 

480 


281 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn


£bn

Loans and advances to customers at amortised cost

220.8 

217.5 

219.0 

 

217.0 

215.7 

216.7 

215.5 


212.2 

Total assets

294.0 

289.9 

294.1 

 

285.0 

275.7 

268.1 

271.5 


278.5 

Customer deposits

302.5 

298.5 

298.1 

 

299.2 

295.9 

298.3 

297.2 


295.9 

Risk weighted assets

122.2 

120.6 

122.5 

 

120.2 

120.0 

117.9 

116.1 


118.3 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

19.2%

14.9%

17.8%

 

13.3%

17.8%

17.5%

14.7%


8.6%

Average allocated tangible equity (£bn)

13.6 

13.6 

13.6 

 

13.4 

13.1 

12.9 

13.1 


13.1 

Return on average equity

14.4%

11.2%

13.4%

 

10.0%

13.4%

13.1%

11.1%


6.5%

Average allocated equity (£bn)

18.1 

18.1 

18.1 

 

17.8 

17.5 

17.2 

17.4 


17.4 

Cost: income ratio

58%

61%

59%

 

67%

59%

60%

62%


77%

Loan loss rate (bps)

14 

18 

14 

 

22 

23 

17 

25 


31 

Net interest margin  

2.97%

2.99%

3.02%

 

3.02%

3.05%

2.93%

2.99%


2.91%

  

 

 

 

 

 

 

 

 

 

 

Analysis of total income

£m

£m

£m

 

£m

£m

£m

£m


£m

Personal

1,018 

1,005 

1,009 

 

1,045 

1,061 

1,027 

1,026 


1,037 

Corporate

935 

970 

907 

 

922 

902 

889 

879 


866 

Wealth

227 

235 

258 

 

264 

273 

272 

268 


263 

Total income  

2,180 

2,210 

2,174 

 

2,231 

2,236 

2,188 

2,173 


2,166 

  

 

 

 

 

 

 

 

 

 

 

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn


£bn

Personal

137.7 

137.8 

137.5 

 

136.8 

136.5 

135.9 

134.9 


133.8 

Corporate

69.0 

66.0 

66.5 

 

65.1 

63.1 

64.8 

64.2 


62.5 

Wealth

14.1 

13.7 

15.0 

 

15.1 

16.1 

16.0 

16.4 


15.9 

Total loans and advances to customers at amortised cost

220.8 

217.5 

219.0 

 

217.0 

215.7 

216.7 

215.5 


212.2 

  

 

 

 

 

 

 

 

 

 

 

Analysis of customer deposits

 

 

 

 

 

 

 

 

 

 

Personal

148.7 

146.3 

145.3 

 

145.8 

143.0 

141.6 

141.3 


140.5 

Corporate

123.2 

120.3 

120.9 

 

122.2 

120.7 

123.7 

120.9 


118.5 

Wealth

30.6 

31.9 

31.9 

 

31.2 

32.2 

33.0 

35.0 


36.9 

Total customer deposits

302.5 

298.5 

298.1 

 

299.2 

295.9 

298.3 

297.2 


295.9 

 

Barclaycard

Q315

Q215

Q115

 

Q414

Q314

Q214

Q114


Q413

Income statement information

£m

£m

£m

 

£m

£m

£m

£m


£m

Total income

1,292 

1,222 

1,135 

 

1,109 

1,123 

1,082 

1,042 


1,034 

Credit impairment charges and other provisions 

(285)

(273)

(290)

 

(362)

(284)

(268)

(269)


(266)

Net operating income 

1,007 

949 

845 

 

747 

839 

814 

773 


768 

Operating expenses  

(480)

(496)

(465)

 

(456)

(449)

(420)

(402)


(446)

Litigation and conduct

- 

- 

- 

 

- 

- 

- 

- 


(11)

Costs to achieve

(27)

(31)

(25)

 

(50)

(32)

(23)

(13)


(38)

UK bank levy

- 

- 

- 

 

(29)

- 

- 

- 


(22)

Total operating expenses   

(507)

(527)

(490)

 

(535)

(481)

(443)

(415)


(517)

Other net income

8 

7 

11 

 

1 

4 

25 

10 


5 

Profit before tax

508 

429 

366 

 

213 

362 

396 

368 


256 

Attributable profit

353 

307 

259 

 

137 

262 

285 

254 


169 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn


£bn

Loans and advances to customers at amortised cost

38.2 

36.9 

36.8 

 

36.6 

34.8 

33.2 

31.9 


31.5 

Total assets

45.8 

41.9 

42.4 

 

41.3 

38.9 

36.2 

35.0 


34.4 

Customer deposits

8.3 

7.7 

8.0 

 

7.3 

6.5 

5.9 

5.8 


5.1 

Risk weighted assets

40.7 

40.3 

39.9 

 

39.9 

38.6 

37.7 

36.4 


35.7 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

28.3%

24.9%

21.0%

 

11.2%

21.8%

24.7%

22.6%


16.1%

Average allocated tangible equity (£bn)

5.0 

5.0 

5.0 

 

4.9 

4.8 

4.6 

4.5 


4.2 

Return on average equity

22.5%

19.7%

16.6%

 

9.0%

17.5%

19.7%

18.2%


12.7%

Average allocated equity (£bn)

6.3 

6.3 

6.3 

 

6.2 

6.0 

5.8 

5.6 


5.3 

Cost: income ratio

39%

43%

43%

 

48%

43%

41%

40%


50%

Loan loss rate (bps)

271 

283 

305 

 

374 

309 

309 

325 


320 

Net interest margin  

9.26%

9.31%

8.78%

 

8.13%

8.84%

8.92%

9.19%


8.85%

 

Africa Banking

Q315

Q215

Q115


Q414

Q314

Q214

Q114


Q413

Income statement information

£m

£m

£m


£m

£m

£m

£m


£m

Total income net of insurance claims 

861 

910 

948 


963 

928 

895 

878 


980 

Credit impairment charges and other provisions 

(69)

(103)

(90)


(79)

(74)

(100)

(96)


(104)

Net operating income 

792 

807 

858 


884 

854 

795 

782 


876 

Operating expenses  

(536)

(557)

(559)


(590)

(572)

(545)

(537)


(616)

Litigation and conduct

- 

- 

- 


(1)

(1)

- 

- 


- 

Costs to achieve  

(7)

(7)

(6)


(23)

(11)

(8)

(9)


(15)

UK bank levy

- 

- 

- 


(45)

- 

- 

- 


(42)

Total operating expenses 

(543)

(564)

(565)


(659)

(584)

(553)

(546)


(673)

Other net income

2 

2 

2 


3 

2 

2 

4 


- 

Profit before tax 

251 

245 

295 


228 

272 

244 

240 


203 

Attributable profit

90 

96 

112 


88 

91 

78 

103 


30 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn


£bn

Loans and advances to customers at amortised cost

31.7 

33.8 

35.7 


35.2 

34.5 

33.8 

35.0 


34.9 

Total assets

52.2 

54.0 

57.8 


55.5 

54.6 

52.4 

54.1 


54.9 

Customer deposits

31.8 

34.4 

35.0 


35.0 

33.4 

33.2 

34.0 


34.6 

Risk weighted assets

36.0 

36.4 

39.3 


38.5 

37.9 

36.5 

36.6 


38.0 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

13.3%

13.2%

14.7%


11.9%

13.1%

11.3%

15.5%


4.2%

Average allocated tangible equity (£bn)

2.7 

2.9 

3.1 


2.9 

2.8 

2.8 

2.7 


2.8 

Return on average equity

9.7%

9.7%

10.8%


8.7%

9.5%

8.1%

11.1%


3.0%

Average allocated equity (£bn)

3.7 

3.9 

4.1 


4.0 

3.8 

3.8 

3.7 


4.0 

Cost: income ratio

63%

62%

60%


68%

63%

62%

62%


69%

Loan loss rate (bps)

79 

112 

94 


83 

79 

111 

104 


105 

Net interest margin

5.96%

5.87%

6.06%


5.94%

6.12%

5.83%

5.91%


5.87%

  

 

 

 

 

 

 

 

 

 

 

Constant currency1 

 

 

 

 

 

 

 

 

 

 

Income statement information

£m

£m

£m


£m

£m

£m

£m



Total income net of insurance claims 

861 

838 

834 


839 

828 

790 

781 



Credit impairment charges and other provisions

(69)

(94)

(79)


(68)

(65)

(88)

(85)



Net operating income

792 

744 

755 


771 

763 

702 

696 



Operating expenses  

(536)

(514)

(495)


(518)

(513)

(484)

(480)



Litigation and conduct

- 

- 

- 


- 

- 

- 

- 



Costs to achieve

(7)

(7)

(5)


(20)

(9)

(8)

(7)



UK bank levy

- 

- 

- 


(45)

- 

- 

- 



Total operating expenses 

(543)

(521)

(500)


(583)

(522)

(492)

(487)



Other net income

2 

2 

2 


3 

1 

2 

4 



Profit before tax 

251 

225 

257 


191 

242 

212 

213 



Attributable profit

90 

88 

96 


73 

78 

73 

91 



  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn



Loans and advances to customers at amortised cost

31.7 

30.9 

30.7 


30.3 

30.2 

29.3 

29.3 



Total assets

52.2 

49.5 

50.0 


48.0 

47.9 

45.6 

45.6 



Customer deposits

31.8 

31.5 

30.2 


30.3 

29.3 

28.9 

28.7 



Risk weighted assets

36.0 

33.2 

33.7 


33.1 

33.1 

31.6 

30.6 



 

1

Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the three months ended 30 September 2015 for the income statement and the 30 September 2015 closing exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the reporting periods.

 

Investment Bank

Q315

Q215

Q115


Q414

Q314

Q214

Q114


Q413

Income statement information

£m

£m

£m


£m

£m

£m

£m


£m

Investment banking fees

502 

586 

549 


527 

410 

661 

513 


571 

Lending

155 

122 

83 


111 

137 

66 

103 


68 

Banking

657 

708 

632 


638 

547 

727 

616 


639 

Credit   

228 

272 

274 


173 

255 

270 

346 


231 

Equities

441 

616 

619 


431 

395 

629 

591 


421 

Macro

485 

554 

624 


424 

470 

504 

552 


494 

Markets

1,154 

1,442 

1,517 


1,028 

1,120 

1,403 

1,489 


1,146 

Banking & Markets

1,811 

2,150 

2,149 


1,666 

1,667 

2,130 

2,105 


1,785 

Other   

- 

- 

- 


- 

(2)

24 

(2)


(3)

Total income

1,811 

2,150 

2,149 


1,666 

1,665 

2,154 

2,103 


1,782 

Credit impairment (charges)/releases and other provisions

(35)

(12)

11 


(7)

(5)

7 

19 


(6)

Net operating income

1,776 

2,138 

2,160 


1,659 

1,660 

2,161 

2,122 


1,776 

Operating expenses  

(1,321)

(1,328)

(1,410)


(1,351)

(1,305)

(1,357)

(1,491)


(1,575)

Litigation and conduct

(44)

(13)

(44)


(33)

(1)

(85)

(10)


(31)

Costs to achieve

(94)

(32)

(31)


(22)

(70)

(152)

(130)


(71)

UK bank levy

- 

- 

- 


(218)

- 

- 

- 


(236)

Total operating expenses 

(1,459)

(1,373)

(1,485)


(1,624)

(1,376)

(1,594)

(1,631)


(1,913)

Profit/(loss) before tax

317 

765 

675 


35 

284 

567 

491 


(137)

Attributable profit/(loss)

182 

417 

344 


(150)

112 

204 

231 


(74)

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn


£bn

Loans and advances to banks and customers at amortised cost

128.9 

123.1 

134.4 


106.3 

123.1 

117.2 

129.7 


104.5 

Trading portfolio assets

79.9 

81.8 

99.1 


94.8 

98.8 

101.2 

101.2 


96.6 

Derivative financial instrument assets

137.0 

118.5 

175.9 


152.6 

131.4 

104.2 

99.9 


108.7 

Derivative financial instrument liabilities

145.7 

127.7 

186.0 


160.6 

137.6 

109.5 

106.7 


116.6 

Reverse repurchase agreements and other similar secured lending

69.3 

58.4 

58.0 


64.3 

82.8 

83.0 

86.6 


78.2 

Total assets

452.0 

420.1 

509.6 


455.7 

488.4 

446.2 

469.4 


438.0 

Risk weighted assets

120.5 

115.3 

123.0 


122.4 

127.9 

123.9 

125.2 


124.4 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

5.5%

12.2%

9.7%


(3.9%)

3.3%

5.6%

6.4%


(2.1%)

Average allocated tangible equity (£bn)

13.7 

13.9 

14.5 


14.7 

14.2 

14.8 

14.7 


14.4 

Return on average equity

5.2%

11.5%

9.1%


(3.7%)

3.1%

5.3%

6.1%


(2.0%)

Average allocated equity (£bn)

14.6 

14.8 

15.4 


15.6 

15.0 

15.5 

15.4 


15.1 

Cost: income ratio

81%

64%

69%


97%

83%

74%

78%


107%

  

 

 

 

 

 

 

 

 

 

 

Head Office

 

 

 

 

 

 

 

 

 

 

Income statement information

£m

£m

£m


£m

£m

£m

£m


£m

Total (expense)/income  

(42)

28 

14 


27 

56 

78 

81 


227 

Credit impairment releases/(charges) and other provisions

1 

(1)

- 


- 

- 

- 

- 


3 

Net operating (expense)/income 

(41)

27 

14 


27 

56 

78 

81 


230 

Operating expenses  

(104)

(50)

(28)


(11)

(9)

(34)

(3)


(37)

Litigation and conduct

(14)

(5)

(2)


(8)

(4)

(42)

(12)


(10)

Costs to achieve  

(8)

(17)

(5)


(8)

- 

5 

(7)


(22)

UK bank levy

- 

- 

- 


(9)

- 

- 

- 


(29)

Total operating expenses   

(126)

(72)

(35)


(36)

(13)

(71)

(22)


(98)

Other net income/(expenses)

- 

2 

2 


- 

(3)

(1)

1 


7 

(Loss)/profit before tax

(167)

(43)

(19)


(9)

40 

6 

60 


139 

Attributable (loss)/profit

(156)

(47)

(33)


122 

(41)

45 

(15)


192 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn


£bn

£bn

£bn

£bn


£bn

Total assets

47.1 

52.6 

45.7 


49.1 

41.5 

43.3 

33.7 


26.6 

Risk weighted assets

7.6 

7.5 

6.3 


5.6 

7.5 

7.6 

16.0 


16.2 

Average allocated tangible equity  

4.6 

3.2 

2.3 


1.1 

0.3 

(1.1)

(2.8)


(3.1)

Average allocated equity  

5.0 

3.6 

2.8 


1.4 

0.7 

(0.7)

(2.5)


(2.9)

 

Performance Management

Returns and equity by business

  

Nine months ended

Nine months ended

 

30.09.15

30.09.14

Return on average tangible equity

%

%

Personal and Corporate Banking

17.3 

16.7 

Barclaycard

24.7 

23.0 

Africa Banking

13.7 

13.2 

Investment Bank

9.1 

5.1 

Barclays Core excluding Head Office

14.8 

12.4 

Head Office impact1 

(2.1)

0.4 

Barclays Core

12.7 

12.8 

Barclays Non-Core impact1 

(4.4)

(5.4)

Barclays Group adjusted total

8.3 

7.4 

 

 

 

 

Nine months ended

Nine months ended

  

30.09.15

30.09.14

Return on average equity

%

%

Personal and Corporate Banking

13.0 

12.5 

Barclaycard

19.6 

18.5 

Africa Banking

10.1 

9.6 

Investment Bank

8.6 

4.9 

Barclays Core excluding Head Office

12.2 

10.3 

Head Office impact1 

(1.7)

0.2 

Barclays Core

10.5 

10.5 

Barclays Non-Core impact1 

(3.4)

(4.2)

Barclays Group adjusted total

7.1 

6.3 

 

 

 

 

Nine months ended

Nine months ended

 

30.09.15

30.09.14

Profit/(loss) attributable to ordinary equity holders of the parent2 

£m

£m

Personal and Corporate Banking

1,765 

1,629   

Barclaycard

925 

805   

Africa Banking

298 

272   

Investment Bank

962 

559   

Head Office

(240)

(11)

Barclays Core

3,710 

3,254   

Barclays Non-Core

(720)

(629)

Barclays Group adjusted total

2,990 

2,625   

 

1

Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents their impact on Barclays Core and the Group respectively. This does not represent the return on average equity and average tangible equity of Head Office or the Non-Core business.

2

Profit for the period attributable to ordinary equity holders of the parent includes the tax credit recorded in reserves in respect of interest payments on other equity instruments.

 

  

Nine months ended

Nine months ended

 

30.09.15

30.09.14

Average allocated tangible equity

£bn

£bn

Personal and Corporate Banking

13.6 

13.0 

Barclaycard

5.0 

4.7 

Africa Banking

2.9 

2.7 

Investment Bank

14.0 

14.6 

Head Office1 

3.4 

(1.2)

Barclays Core

38.9 

33.8 

Barclays Non-Core

9.2 

13.6 

Barclays Group adjusted total

48.1 

47.4 

 

 

 

 

Nine months ended

Nine months ended

 

30.09.15

30.09.14

Average allocated equity

£bn

£bn

Personal and Corporate Banking

18.1 

17.3 

Barclaycard

6.3 

5.8 

Africa Banking

3.9 

3.8 

Investment Bank

14.9 

15.3 

Head Office1 

3.8 

(0.8)

Barclays Core

47.0 

41.4 

Barclays Non-Core

9.3 

13.8 

Barclays Group adjusted total

56.3 

55.2 

 

 

  

 

As at 30.09.15

As at 30.06.15

Period end allocated equity

£bn

£bn

Personal and Corporate Banking

18.2 

17.9 

Barclaycard

6.3 

6.3 

Africa Banking

3.6 

3.9 

Investment Bank

14.4 

13.7 

Head Office1 

5.8 

5.2 

Barclays Core

48.3 

47.0 

Barclays Non-Core

8.5 

8.3 

Barclays Group adjusted total

56.8 

55.3 

 

1

Based on risk weighted assets and capital deductions in Head Office, plus the residual balance of average ordinary shareholders' equity and tangible ordinary shareholders' equity.

 

Margins and balances








Nine months ended 30.09.15

Nine months ended 30.09.14


Net interest income

Average customer assets

Net interest margin

Net interest income

Average customer assets

Net interest margin


£m

£m

%

£m

£m

%

Personal and Corporate Banking

 4,679 

 209,284 

2.99 

Barclaycard

 2,287 

 34,050 

8.98 

Africa Banking

 1,567 

 35,063 

 5.98 

 1,547 

 34,720 

5.96 

Total Personal and Corporate Banking, Barclaycard and Africa Banking

 8,513 

 278,054 

4.09 

Other

 380 



 613 



Total net interest income

 9,126 



 

  

 

 

 

Quarterly analysis for PCB, Barclaycard and Africa Banking

Three months ended 30.09.15

  

Net interest income

Average customer assets

Net interest margin

  

£m

£m

%

Personal and Corporate Banking

 1,606 

 214,505 

2.97 

Barclaycard

 904 

 38,721 

9.26 

Africa Banking

 499 

 33,205 

5.96 

Total Personal and Corporate Banking, Barclaycard and Africa Banking

 3,009 

 286,431 

4.17 

  

 

 

 

 

Three months ended 30.06.15

Personal and Corporate Banking

 1,602 

 215,069 

2.99 

Barclaycard

 883 

 38,025 

9.31 

Africa Banking

 521 

 35,610 

5.87 

Total Personal and Corporate Banking, Barclaycard and Africa Banking

 3,006 

 288,704 

4.18 

  

 

 

 

  

Three months ended 31.03.15

Personal and Corporate Banking

 1,601 

 214,645 

3.02 

Barclaycard

 821 

 37,909 

8.78 

Africa Banking1 

 547 

 36,603 

6.06 

Total Personal and Corporate Banking, Barclaycard and Africa Banking

 2,969 

 289,157 

4.18 

  

 

 

 

  

Three months ended 31.12.14

Personal and Corporate Banking

 1,619 

 212,444 

 3.02 

Barclaycard

 757 

 36,932 

 8.13 

Africa Banking

 546 

 36,465 

 5.94 

Total Personal and Corporate Banking, Barclaycard and Africa Banking

 2,922 

 285,841 

 4.06 

 

1

Q115 net interest income has been revised by £14m to accurately reflect the classification of income across financial statement line items.

 

Condensed Consolidated Financial Statements

Consolidated summary income statement

  

Nine months ended

Nine months ended

Continuing operations

30.09.15

30.09.14

  

£m

£m

Total income net of insurance claims

20,191 

20,267 

Credit impairment charges and other provisions

(1,468)

(1,595)

Net operating income

18,723 

18,672 

  

 

 

Staff costs

(7,394)

(8,377)

Administration and general expenses

(7,037)

(6,219)

Operating expenses

(14,431)

(14,596)

  

 

 

Loss on disposal of undertakings and share of results of associates and joint ventures

(317)

(354)

Profit before tax

3,975 

3,722 

Tax

(1,214)

(1,496)

Profit after tax

2,761 

2,226 

  

 

 

Attributable to:

 

 

Ordinary equity holders of the parent

2,028 

1,505 

Other equity holders

238 

170 

Total equity holders

2,266 

1,675 

Non-controlling interests

495 

551 

Profit after tax

2,761 

2,226 

  

 

 

Earnings per share from continuing operations1 

 

 

Basic earnings per ordinary share1 

12.4p

9.4p

 

1

The profit after tax attributable to other equity holders of £238m (Q314 YTD: £170m) is offset by a tax credit recorded in reserves of £48m (Q314 YTD: £36m). The net amount of £190m (Q314 YTD: £134m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share.

 

Consolidated summary balance sheet

 

 

 

 

As at

As at

As at

 

30.09.15

30.06.15

31.12.14

Assets

£m

£m

£m

Cash, balances at central banks

34,544 

33,341 

39,695 

Items in the course of collection from other banks

1,417 

1,227 

1,210 

Trading portfolio assets

95,356 

98,048 

114,717 

Financial assets designated at fair value

34,413 

33,335 

38,300 

Derivative financial instruments1

378,930 

341,312 

439,909 

Available for sale financial investments

98,901 

96,210 

86,066 

Loans and advances to banks

48,233 

44,548 

42,111 

Loans and advances to customers

434,497 

430,719 

427,767 

Reverse repurchase agreements and other similar secured lending

83,928 

93,138 

131,753 

Other assets

26,310 

24,841 

36,378 

Total assets

1,236,529 

1,196,719 

1,357,906 

 

 

 

 

Liabilities

 

 

 

Deposits from banks

55,832 

55,978 

58,390 

Items in the course of collection due to banks

1,557 

1,539 

1,177 

Customer accounts

443,442 

438,270 

427,704 

Repurchase agreements and other similar secured borrowing

85,158 

85,092 

124,479 

Trading portfolio liabilities

43,887 

41,818 

45,124 

Financial liabilities designated at fair value

46,756 

51,284 

56,972 

Derivative financial instruments1  

379,126 

342,964 

439,320 

Debt securities in issue

72,125 

75,525 

86,099 

Subordinated liabilities

20,644 

19,664 

21,153 

Other liabilities

19,927 

19,010 

31,530 

Total liabilities

1,168,454 

1,131,144 

1,291,948 

 

  

 

 

Equity

  

 

 

Called up share capital and share premium

21,551 

21,523 

20,809 

Other reserves

2,070 

1,334 

2,724 

Retained earnings

33,010 

32,099 

31,712 

Shareholders' equity attributable to ordinary shareholders of the parent

56,631 

54,956 

55,245 

Other equity instruments  

5,314 

4,325 

4,322 

Total equity excluding non-controlling interests

61,945 

59,281 

59,567 

Non-controlling interests

6,130 

6,294 

6,391 

Total equity

68,075 

65,575 

65,958 

 

  

 

 

Total liabilities and equity

1,236,529 

1,196,719 

1,357,906 

 

1

Financial collateral of £45.1bn (June 2015: £40.1bn) was received in respect of derivative assets, including £37.3bn (June 2015: £33.0bn) of cash collateral and £7.8bn (June 2015: £7.1bn) of non-cash collateral.  Financial collateral of £47.7bn (June 2015: £42.2bn) was placed in respect of derivative liabilities, including £39.2bn (June 2015: £35.6bn) of cash collateral and £8.5bn (June 2015: £6.6bn) of non-cash collateral (collateral amounts limited to net balance sheet exposure so as to not include over-collateralisation).

 

Consolidated statement of changes in equity


  

 

 

 

 

 

 

Nine months ended 30.09.15

Called up share capital and share premium

Other equity instruments

Other reserves1

Retained earnings

Total

Non-controlling interests

Total

equity


£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2015

20,809 

4,322 

2,724 

31,712 

59,567 

6,391 

65,958 

Profit after tax

- 

238 

- 

2,028 

2,266 

495 

2,761 

Other comprehensive profit after tax for the period

- 

- 

(679)

450 

(229)

(319)

(548)

Issue of shares

742 

- 

- 

455 

1,197 

- 

1,197 

Issue and exchange of equity instruments

- 

995 

- 

- 

995 

- 

995 

Dividends

- 

- 

- 

(913)

(913)

(445)

(1,358)

Coupons paid on other equity instruments

- 

(238)

- 

48 

(190)

- 

(190)

Treasury shares

- 

- 

25 

(736)

(711)

- 

(711)

Other movements

- 

(3)

- 

(34)

(37)

8 

(29)

Balance as at 30 September 2015

21,551 

5,314 

2,070 

33,010 

61,945 

6,130 

68,075 


  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 30.09.15

Called up share capital and share premium

Other equity instruments

Other reserves1

Retained earnings

Total

Non-controlling interests

Total

equity


£m

£m

£m

£m

£m

£m

£m

Balance as at 1 July 2015

21,523 

4,325 

1,334 

32,099 

59,281 

6,294 

65,575 

Profit after tax

- 

79 

- 

417 

496 

157 

653 

Other comprehensive profit after tax for the period

- 

- 

713 

503 

1,216 

(182)

1,034 

Issue of shares

28 

- 

- 

152 

180 

- 

180 

Issue and exchange of equity instruments

- 

995 

- 

- 

995 

- 

995 

Dividends

- 

- 

- 

(167)

(167)

(144)

(311)

Coupons paid on other equity instruments

- 

(79)

- 

16 

(63)

- 

(63)

Treasury shares

- 

- 

23 

(30)

(7)

- 

(7)

Other movements

- 

(6)

- 

20 

14 

5 

19 

Balance as at 30 September 2015

21,551 

5,314 

2,070 

33,010 

61,945 

6,130 

68,075 

 

1

Other reserves includes currency translation reserve of £0.7bn debit (30 June 2015: £1.0bn debit), available for sale investments of £nil (30 June 2015: £0.3bn), cash flow hedge reserve of £1.8bn (30 June 2015: £1.2bn), other reserves and treasury shares of £1.0bn (30 June 2015: £0.9bn).

 

Capital

CRD IV capital

The Capital Requirements Regulation and Capital Requirements Directive implemented Basel 3 within the EU (collectively known as CRD IV) on 1 January 2014.  The rules are supplemented by Regulatory Technical Standards and the PRA's rulebook, including the implementation of transitional rules. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.

Capital ratios  

As at

As at

As at

30.09.15

30.06.15

31.12.14

Fully loaded Common Equity Tier 1

11.1%

11.1%

10.3%

PRA Transitional Common Equity Tier 11,2

11.1%

11.1%

10.2%

PRA Transitional Tier 13,4

14.2%

14.0%

13.0%

PRA Transitional Total Capital3,4

17.7%

17.4%

16.5%

  




Capital resources  

£m

£m

£m

Shareholders' equity (excluding non controlling interests) per the balance sheet

 61,945 

59,281 

59,567 

 - Less: Other equity instruments (recognised as AT1 capital)

(5,314)

(4,325)

(4,322)

Adjustment to retained earnings for foreseeable dividends

(545)

(731)

(615)

  

 

 

 

Minority interests (amount allowed in consolidated CET1)

1,139 

1,200 

1,227 

  

 

 

 

Other regulatory adjustments and deductions:

 

 

 

Additional value adjustments (PVA)

(2,018)

(1,506)

(2,199)

Goodwill and intangible assets

(8,177)

(8,145)

(8,127)

Deferred tax assets that rely on future profitability excluding temporary differences

(1,012)

(1,132)

(1,080)

Fair value reserves related to gains or losses on cash flow hedges

(1,807)

(1,185)

(1,814)

Excess of expected losses over impairment

(1,568)

(1,536)

(1,772)

Gains or losses on liabilities at fair value resulting from own credit

(53)

127 

658 

Direct and indirect holdings by an institution of own CET1 instruments

(57)

(57)

(25)

Other regulatory adjustments

(128)

1 

(45)

Fully loaded CET1 capital 

42,405 

41,992 

41,453 

Regulatory adjustments relating to unrealised gains1 

- 

- 

(583)

PRA Transitional CET1 capital 

42,405 

41,992 

40,870 

  

 



Additional Tier 1 (AT1) capital  

 



Capital instruments and related share premium accounts

5,314 

4,325 

4,322 

Qualifying AT1 capital (including minority interests) issued by subsidiaries  

6,697 

6,666 

6,870 

Other regulatory adjustments and deductions

(130)

(130)

- 

Transitional Additional Tier 1 capital

11,881 

10,861 

11,192 

PRA Transitional Tier 1 capital

54,286 

52,853 

52,062 

  

 



Tier 2 (T2) capital

 



Capital instruments and related share premium accounts

824 

792 

800 

Qualifying T2 capital (including minority interests) issued by subsidiaries

12,602 

12,268 

13,529 

Other regulatory adjustments and deductions

(254)

(254)

(48)

PRA Transitional total regulatory capital

67,458 

65,659 

66,343 

  

 

 

 

Risk weighted assets

381,851 

376,683 

401,900 

 

1

The transitional regulatory adjustment for unrealised gains is no longer applicable from 1 January 2015 resulting in CET1 capital on a fully loaded basis being equal to that on a transitional basis.

2

The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays' Tier 2 Contingent Capital Notes was 12.7% based on £48.4bn of transitional CRD IV CET1 capital and £381.9bn of RWAs.

3

The PRA transitional capital is based on guidance provided in policy statement PS 7/13 on strengthening capital standards published in December 2013.

4

As at 30 September 2015, Barclays' fully loaded Tier 1 capital was £47,859m, and the fully loaded Tier 1 ratio was 12.5%. Fully loaded total regulatory capital was £62,838m and the fully loaded total capital ratio was 16.5%. The fully loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV.

 

 

Movement in Common Equity Tier 1 (CET1) capital

Three months

Nine

months

ended

ended

30.09.15

30.09.15

£m

£m

Opening CET1 capital

41,992 

41,453 

  

 

 

Profit for the period

496 

2,266 

Movement in own credit

(180)

(711)

Movement in dividends

(44)

(1,033)

Retained regulatory capital generated from earnings

272 

522 

  

 

 

Movement in reserves - net impact of share schemes

173 

486 

Movement in available for sale reserves

(266)

(561)

Movement in currency translation reserves

350 

(113)

Movement in retirement benefits

500 

406 

Other reserves movements

30 

12 

Movement in other qualifying reserves

787 

230 

  

 

 

Minority interests

(61)

(88)

Additional value adjustments (PVA)

(512)

181 

Goodwill and intangible assets

(32)

(50)

Deferred tax assets that rely on future profitability excluding those arising from temporary differences

120 

68 

Excess of expected loss over impairment

(32)

204 

Direct and indirect holdings by an institution of own CET1 instruments

- 

(32)

Other regulatory adjustments

(129)

(83)

Movement in regulatory adjustments and deductions

(646)

200 

  

 

 

Closing CET1 capital

42,405 

42,405 

 

Leverage

Leverage ratio requirements

 

The leverage ratio has been calculated in accordance with the European Union Delegated act which came into force from January 2015. The leverage calculation below uses the end-point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure as adopted by the act.

 

At 30 September 2015 Barclays leverage ratio was 4.2%, which exceeds the expected minimum fully loaded requirement outlined by the Financial Policy Committee (FPC)1 of 3.7%, comprising the 3% minimum requirement, and the fully phased-in G-SII buffer.

 

1

In July 2015 the PRA set out a consultation on how it proposes to implement the FPC recommendations in the UK. The PRA is expected to publish a policy statement, finalised rules and supervisory statements by the end of 2015.

 

Leverage exposure and ratio

  

 

 

 

  

 

 

  

As at

30.09.15

As at

30.06.15

As at 31.12.14

Leverage exposure

£bn

£bn

£bn

 

 

 

 

Accounting assets

 

 

 

Derivative financial instruments

 379 

 341 

 440 

Cash collateral

 64 

 60 

 73 

Reverse repurchase agreements

 84 

 93 

 132 

Loans and advances and other assets

 710 

 703 

 713 

Total IFRS assets

 1,237 

 1,197 

 1,358 

 

 

 

 

Regulatory consolidation adjustments

(6)

(5)

(8)

 

 

 

  

Derivatives adjustments

  

 

 

Derivatives netting  

(343)

(308)

(395)

Adjustments to cash collateral

(50)

(47)

(53)

Net written credit protection

22 

 20 

 27 

Potential Future Exposure (PFE) on derivatives

155 

160 

179 

Total derivatives adjustments

(216)

(175)

(242)

  

  

 

 

Securities financing transactions (SFTs) adjustments

27 

24 

25 

  

  

 

 

Regulatory deductions and other adjustments

(15)

(14)

(15)

Weighted off-balance sheet commitments

114 

112 

115 

  

  

 

 

Total fully loaded leverage exposure

 1,141 

 1,139 

 1,233 

 

 

 

 

Fully loaded CET 1 capital

 42.4 

42.0 

41.5 

Fully loaded AT1 capital

 5.5 

4.5 

4.6 

Fully loaded Tier 1 capital

 47.9 

 46.5 

 46.0 

  

 

 

 

Fully loaded leverage ratio

4.2%

4.1%

3.7%

 

Shareholder Information

  

 

Results timetable1 

Date

Ex-dividend date

5 November 2015

Dividend Record date

6 November 2015

Scrip reference share price set and made available to shareholders

12 November 2015

Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)

20 November 2015

Dividend Payment date /first day of dealing in new shares

11 December 2015

2015 Full Year Results and Audited Annual Report

1 March 2016

  

 

For qualifying US and Canadian resident ADR holders, the third interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the third interim dividend on Friday 11 December 2015 to ADR holders on the record at close of business on Friday 6 November 2015.  The ex-dividend date will be Wednesday 4 November 2015.

 

  

 

 

 

 

 

% Change3 

Exchange rates2

30.09.15

30.06.15

31.12.14

30.09.14


30.06.15

31.12.14

30.09.14

Period end - USD/GBP

1.51 

1.57 

1.56 

1.62 


(4%)

(3%)

(7%)

YTD Average - USD/GBP

1.53 

1.52 

1.65 

1.67 


1%

(7%)

(8%)

3 Month average - USD/GBP

1.55 

1.53 

1.58 

1.67 


1%

(2%)

(7%)

Period end - EUR/GBP

1.36 

1.41 

1.28 

1.28 


(4%)

6%

6%

YTD Average - EUR/GBP

1.37 

1.37 

1.24 

1.23 


-

10%

11%

3 Month average - EUR/GBP

1.39 

1.38 

1.27 

1.26 


1%

9%

10%

Period end - ZAR/GBP

20.97 

19.12 

18.03 

18.32 


10%

16%

14%

YTD Average - ZAR/GBP

18.81 

18.16 

17.84 

17.87 


4%

5%

5%

3 Month average - ZAR/GBP

20.08 

18.49 

17.75 

17.98 


9%

13%

12%

 

 

 

 

 

 

 

 

 

Share price data

30.09.15

30.06.15

31.12.14

30.09.14




  

Barclays PLC (p)

244.15 

260.50 

243.50 

227.45 




  

Barclays PLC number of shares (m)

16,784 

16,773 

16,498 

16,453 




  

Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)

170.20 

182.98 

182.00 

154.13 




  

Barclays Africa Group Limited (formerly Absa Group Limited)

number of shares (m)

848 

848 

848 

848 




  

 

 

 

 

 

 

 

 

 

For further information please contact

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor relations

Media relations




  

Kathryn McLeland +44 (0) 20 7116 4943

Will Bowen +44 (0) 20 3134 7744




  

 

 

 

 

 

 

 

 

 

More information on Barclays can be found on our website: www.home.barclays




  

 

 

 

 

 

 

 

 

 

Registered office

 

 

 

 

 

 

 

 

1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839

  

 

 

 

 

 

 

 

 

Registrar  

 

 

 

 

 

 

 

 

Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.

Tel: 0371 384 20554 from the UK or +44 (0) 121 415 7004 from overseas. 

 

 

 

 

 

 

1

Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available at www.home.barclays/dividends.

2

The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into GBP for accounting purposes.

3

The change is the impact to GBP reported information.

4

Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding UK public holidays.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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