3rd Quarter Results

RNS Number : 7355P
Barclays PLC
21 October 2021
 

 

Barclays PLC

 

Q3 2021 Results Announcement

 

30 September 2021

 

Performance Highlights

 

The Group's diversified business model delivered a record Group profit before tax of £6.9bn (Q320 YTD: £2.4bn), a return on tangible equity (RoTE) of 14.9% (Q320 YTD: 3.6%) and earnings per share (EPS) of 30.8p (Q320 YTD: 7.6p)

 

James E Staley, Chief Executive Officer, commented

"On top of a good first half, a strong third quarter performance means Barclays has delivered its highest Q3 YTD pre-tax profit on record in 2021, demonstrating the benefits of our diversified business model. We continue to support our customers and clients through the COVID-19 pandemic, have achieved a double-digit RoTE in every quarter year to date, and expect to deliver a full year RoTE above 10%. While the CIB performance continues to be an area of strength for the Group, we are also seeing evidence of a consumer recovery and the early signs of a more favourable rate environment. Against that backdrop, we are focused on balancing cost efficiencies with further investment into high-returning growth opportunities. Our CET1 ratio of 15.4% means we are also in a strong position to balance this growth with a key priority of returning excess capital to shareholders."

 

Key financial metrics:

 

 

Income

Cost: income ratio

Profit before  tax

RoTE

EPS

CET1
ratio

Q321 YTD

£16.8bn

64%

£6.9bn

14.9%

30.8p

15.4%

Q321

£5.5bn

64%

£2.0bn

11.9%

8.5p

 

Performance highlights:

 

·

Strong Corporate and Investment Bank (CIB) performance: Investment Banking fees and Equities income had their best Q3 YTD on a comparable basis1 driving a CIB RoTE of 16.4% (Q320 YTD:10.5%)

·

Ongoing consumer recovery and well positioned for a rising rate environment: continue to experience strong UK mortgage and deposit volumes. Although yet to translate into meaningful unsecured balance growth, positive trends in UK and US consumer spending and in payments volumes have been observed following easing of lockdown restrictions

·

Investing for growth: reinvesting efficiency savings to drive income growth. Excluding structural cost actions and performance costs, Group total operating expenses were flat

·

Net credit impairment release: £0.6bn Q321 YTD release driven by an improved macroeconomic outlook and benign credit performance

·

Strong capital: Common equity tier 1 (CET1) ratio of 15.4%, above the target range of 13-14%

 

Summary outlook:

 

·

Returns: expect to deliver a RoTE above 10% in 2021

·

Impairment: the impairment run rate is expected to remain below historical levels in coming quarters

·

Costs: excluding structural cost actions and performance costs, FY21 costs are expected to be c.£12bn2. The Group is evaluating planned structural cost actions for Q421

·

Capital: the CET1 ratio is expected to remain above the target range of 13-14% at 31 December 2021

·

Capital returns: maintaining a progressive ordinary dividend policy and additional cash returns, including share buybacks, as appropriate

 

1

Period covering Q114 - Q321. Pre 2014 financials were not restated following re-segmentation in Q116.

2

Group cost outlook is based on an average rate of 1.38 (USD/GBP) in H221 and subject to foreign currency movements.

 

Barclays Group results

for the nine months ended

 

 

30.09.21

30.09.20

 

 

£m

£m

% Change

Net interest income

5,843

6,278

(7)

Net fee, commission and other income

10,937

10,547

4

Total income

16,780

16,825

-

Credit impairment releases/(charges)

622

(4,346)

 

Net operating income

17,402

12,479

39

Operating expenses

(10,578)

(9,954)

(6)

Litigation and conduct

(131)

(106)

(24)

Total operating expenses

(10,709)

(10,060)

(6)

Other net income

247

-

 

Profit before tax

6,940

2,419

 

Tax charge

(1,076)

(441)

 

Profit after tax

5,864

1,978

 

Non-controlling interests

(20)

(41)

51

Other equity instrument holders

(586)

(631)

7

Attributable profit

5,258

1,306

 

 

 

 

 

Performance measures

 

 

 

Return on average tangible shareholders' equity

14.9%

3.6%

 

Average tangible shareholders' equity (£bn)

47.1

48.5

 

Cost: income ratio

64%

60%

 

Loan loss rate (bps)

-

164

 

Basic earnings per share

30.8p

7.6p

 

Basic weighted average number of shares (m)

17,062

17,298

(1)

Period end number of shares (m)

16,851

17,353

(3)

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet and capital management1

£bn

£bn

£bn

Loans and advances at amortised cost

353.0

342.6

344.4

Loans and advances at amortised cost impairment coverage ratio

1.7%

2.4%

2.5%

Deposits at amortised cost

510.2

481.0

494.6

Tangible net asset value per share

287p

269p

275p

Common equity tier 1 ratio

15.4%

15.1%

14.6%

Common equity tier 1 capital

47.3

46.3

45.5

Risk weighted assets

307.5

306.2

310.7

Average UK leverage ratio

4.9%

5.0%

5.1%

UK leverage ratio

5.1%

5.3%

5.2%

 

 

 

 

Funding and liquidity

 

 

 

Group liquidity pool (£bn)

293

266

327

Liquidity coverage ratio

161%

162%

181%

Loan: deposit ratio

69%

71%

70%

 

1

Refer to pages 27 to 33 for further information on how capital, Risk Weighted Assets (RWAs) and leverage are calculated.

 

Group Finance Director's Review

 

Group performance1

 

·

The Group's diversified business model enabled Barclays to deliver a record profit before tax of £6,940m (Q320 YTD: £2,419m), RoTE of 14.9% (Q320 YTD: 3.6%) and EPS of 30.8p (Q320 YTD: 7.6p)

·

Total income was stable at £16,780m (Q320 YTD: £16,825m). Barclays UK income increased 2%. Barclays International income decreased 2%, with CIB income down 1% and Consumer, Cards and Payments (CC&P) income down 6%. Excluding the impact of the 9% depreciation of average USD against GBP, total income was up, reflecting the Group's diversified income streams

·

Credit impairment net release of £622m (Q320 YTD: £4,346m charge). The net release included a reversal of £1.1bn in non-default charges, primarily reflecting the improved macroeconomic outlook. Excluding this reversal, the charge was £0.5bn, reflecting reduced unsecured lending balances and low delinquency. Management judgements have been maintained in the quarter in respect of customers and clients considered to be potentially more vulnerable as government and other support schemes have started to reduce. The reduction in unsecured lending balances and growth in secured balances have contributed to a decrease in the Group's loan coverage ratio to 1.7% (December 2020: 2.4%). Loan coverage ratios in unsecured and wholesale loan portfolios remained elevated compared to pre-COVID-19 pandemic levels

·

Total operating expenses increased 6% to £10,709m, due to structural cost actions of £392m primarily relating to the real estate review in Q221, higher performance costs that reflect improved returns, and continued investment and business growth, partially offset by the benefit from the depreciation of average USD against GBP and efficiency savings. This resulted in a cost: income ratio of 64% (Q320 YTD: 60%)

·

The effective tax rate was 15.5% (Q320 YTD: 18.2%). This reflects a £402m tax benefit recognised for the re-measurement of the Group's UK deferred tax assets (DTAs) as a result of the UK corporation tax rate increase from 19% to 25% effective from 1 April 2023. The UK Government is reviewing the additional 8% surcharge tax that applies to banks' profits and if the conclusion of that review is that the surcharge is reduced then the Group's UK DTAs would be re-measured again and decreased, the exact timing of an enactment of a reduction in the surcharge is uncertain but would be expected to occur in H122

·

Attributable profit was £5,258m (Q320 YTD: £1,306m)

·

Following the completion of the £700m share buyback announced with FY20 results and the ongoing £500m share buyback announced with H121 results, the period end number of shares was 16,851m (December 2020: 17,359m)

·

Total assets increased to £1,407bn (December 2020: £1,350bn) primarily due to a £37bn increase in cash at central banks, a £29bn increase in financial assets at fair value due to an increase in secured lending, a £18bn increase in cash collateral and settlement balances and a £17bn increase in trading portfolio assets due to increased activity, partially offset by a £44bn decrease in derivative assets driven by an increase in major interest rate curves

·

Deposits at amortised cost increased £29bn to £510bn further strengthening the Group's liquidity position and contributing to a loan: deposit ratio of 69% (December 2020: 71%)

·

Tangible net asset value (TNAV) per share increased to 287p (December 2020: 269p) primarily reflecting 30.8p of EPS, partially offset by negative reserve movements

 

Barclays UK

 

·

Profit before tax increased to £1,957m (Q320 YTD: £264m). RoTE was 17.9% (Q320 YTD: 2.2%) reflecting materially lower credit impairment charges

·

Total income increased 2% to £4,837m. Net interest income reduced 1% to £3,889m with a net interest margin (NIM) of 2.53% (Q320 YTD: 2.63%) as strong customer retention and improved margins in mortgages was more than offset by lower unsecured lending balances. Net fee, commission and other income increased 18% to £948m, returning back towards pre-COVID-19 pandemic levels

 

-

Personal Banking income increased 10% to £2,900m, reflecting strong growth in mortgages alongside improved margins, balance growth in deposits and the non-recurrence of COVID-19 customer support actions, partially offset by deposit margin compression from lower interest rates and lower unsecured lending balances

 

-

Barclaycard Consumer UK income decreased 23% to £898m as reduced borrowing and repayments by customers resulted in a lower level of interest earning lending (IEL) balances

 

-

Business Banking income increased 12% to £1,039m due to lending and deposit balance growth from £12.1bn of government scheme lending and the non-recurrence of COVID-19 and related customer support actions, partially offset by deposit margin compression from lower interest rates

 

1

The 9% depreciation of average USD against GBP adversely impacted income and profits and positively impacted total operating expenses.

 

Barclays UK (continued)

 

·

Credit impairment net release of £306m (Q320 YTD: £1,297m charge) driven by an improved macroeconomic outlook and lower unsecured lending balances due to customer repayments and lower delinquencies. As at 30 September 2021, 30 and 90 day arrears rates in UK cards were 1.0% (Q320: 1.7%) and 0.3% (Q320: 0.8%) respectively

·

Total operating expenses were stable at £3,187m (Q320 YTD: £3,172m) reflecting investment spend and higher operational and customer service costs primarily driven by increased volumes, offset by efficiency savings

·

Loans and advances to customers at amortised cost increased 2% to £208.6bn predominantly from £9.2bn of mortgage growth following a strong flow of new applications as well as strong customer retention, offset by a £2.3bn decrease in the Education, Social Housing and Local Authority (ESHLA) portfolio carrying value as interest rate yield curves have steepened, £1.7bn lower unsecured lending balances and £0.5bn lower Business Banking balances as repayment of government scheme lending takes effect

·

Customer deposits at amortised cost increased 7% to £256.8bn reflecting an increase of £13.6bn and £2.8bn in Personal Banking and Business Banking respectively, further strengthening the liquidity position and contributing to a loan: deposit ratio of 86% (December 2020: 89%)

·

RWAs decreased to £73.2bn (December 2020: £73.7bn) as growth in mortgages was more than offset by a reduction in unsecured lending and the ESHLA portfolio

 

Barclays International

 

·

Profit before tax increased 97% to £5,500m with a RoTE of 16.4% (Q320 YTD: 7.5%), reflecting a RoTE of 16.4% (Q320 YTD: 10.5%) in CIB and 16.2% (Q320 YTD: (10.6)%) in CC&P

 

·

The 9% depreciation of average USD against GBP adversely impacted income and profits and positively impacted total operating expenses

 

·

Total income decreased to £12,155m (Q320 YTD: £12,435m)

 

 

-

CIB income decreased 1% to £9,702m

 

 

 

-

Global Markets income decreased 14% to £5,368m as a strong performance in Equities, representing the best Q3 YTD on a comparable basis1, was more than offset by FICC. Equities income increased 28% to £2,466m driven by strong client activity in derivatives and increased client balances in financing. FICC income decreased 33% to £2,902m due to tighter spreads and the non-recurrence of prior year client activity levels

 

 

-

Investment Banking fees income, representing the best Q3 YTD on a comparable basis1, increased 37% to £2,703m driven by a strong performance in Advisory and Equity capital markets reflecting an increase in the fee pool and an increased market share2

 

 

-

Within Corporate, Transaction banking income increased 1% to £1,219m as deposit balance growth was partially offset by margin compression. Corporate lending income increased 2% to £412m driven by the non-recurrence of losses on the mark-to-market of lending and related hedge positions, partially offset by a current year write-off on a single name

 

-

CC&P income decreased 6% to £2,453m

 

 

 

-

International Cards and Consumer Bank income decreased 17% to £1,540m reflecting lower cards balances

 

 

-

Private Bank income increased 9% to £581m, reflecting client balance growth and a gain on a property sale

 

 

-

Unified Payments income increased 60% to £332m driven by the non-recurrence of a c.£100m valuation loss on Barclays' preference shares in Visa Inc. in Q220 and merchant acquiring turnover growth following easing of lockdown restrictions

·

Credit impairment net release of £311m (Q320 YTD: £2,989m charge) was driven by an improved macroeconomic outlook

 

 

-

CIB credit impairment net release of £400m (Q320 YTD: £1,507m charge) was supported by limited single name wholesale loan charges

 

 

-

CC&P credit impairment charges of £89m (Q320 YTD: £1,482m) was partially driven by lower delinquencies and higher customer repayments. As at 30 September 2021, 30 and 90 day arrears in US cards were 1.5% (Q320: 2.3%) and 0.7% (Q320: 1.1%) respectively

 

·

Total operating expenses increased 5% to £7,003m

 

 

-

CIB total operating expenses increased 3% to £5,260m due to higher performance costs that reflect an improvement in returns

 

 

-

CC&P total operating expenses increased 10% to £1,743m driven by the impact of higher investment spend, including marketing, and customer remediation costs related to a legacy portfolio

 
         

 

1

Period covering Q114 - Q321. Pre 2014 financials were not restated following re-segmentation in Q116.

2

Data source: Dealogic for the period covering 1 January to 30 September 2021.

 

Barclays International (continued)

 

·

Total assets increased to £1,076bn (December 2020: £1,042bn) primarily due to a £30bn increase in financial assets at fair value, due to an increase in secured lending, a £18bn increase in cash collateral and settlements balances, and a £17bn increase in trading portfolio assets, due to increased activity, partially offset by a £45bn decrease in derivative assets driven by an increase in major interest rate curves

·

RWAs increased to £222.7bn (December 2020: £222.3bn)

 

Head Office

 

·

Loss before tax was £517m (Q320 YTD: £639m)

·

Total income was an expense of £212m (Q320 YTD: £331m), which primarily reflected hedge accounting, funding costs on legacy capital instruments and treasury items, partially offset by mark-to-market gains on legacy investments and the recognition of dividends on Barclays' stake in Absa Group Limited

·

Total operating expenses were £519m (Q320 YTD: £217m), which included a charge of £266m relating to structural cost actions taken as part of the real estate review in Q221, as well as costs associated with the discontinued use of software assets

·

Other net income was £209m (Q320 YTD: £31m expense) driven by a fair value gain in Barclays' associate investment holding in the Business Growth Fund

 

Group capital and leverage

 

·

The CET1 ratio increased to 15.4% (December 2020: 15.1%)

 

-

CET1 capital increased by £1.0bn to £47.3bn (December 2020: £46.3bn) as profit before tax of £6.9bn was partially offset by the removal of temporary regulatory supporting measures introduced in 2020, share buybacks, dividends and equity coupons paid and foreseen and pensions deficit contribution payments. The £1.1bn release of non-defaulted credit impairment was more than offset by the related reduction in IFRS 9 transitional relief which also decreased due to impairment migrations from Stage 2 to Stage 3 and the relief on the pre-2020 impairment charge reducing from 70% to 50% in 2021

 

-

RWAs increased £1.3bn to £307.5bn (December 2020: £306.2bn) primarily due to a growth in mortgages within Barclays UK, partially offset by lower consumer lending

·

The average UK leverage ratio decreased to 4.9% (December 2020: 5.0%). The average leverage exposure increased by £52.9bn to £1,199.8bn (December 2020: £1,146.9bn) largely driven by an increase in securities financing transactions (SFTs), potential future exposure (PFE) on derivatives and trading portfolio assets (TPAs)

 

Group funding and liquidity

 

·

The liquidity pool was £293bn (December 2020: £266bn) and the liquidity coverage ratio remained significantly above the 100% regulatory requirement at 161% (December 2020: 162%), equivalent to a surplus of £107bn (December 2020: £99bn). The increase in the pool is driven by deposit growth, borrowing from the Bank of England's Term Funding Scheme with additional incentives for SMEs and a seasonal increase in short-term wholesale funding, which were partly offset by an increase in business funding consumption

·

Wholesale funding outstanding, excluding repurchase agreements, was £165.2bn (December 2020: £145.0bn). The Group issued £8.2bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during the year. The Group is well advanced in its MREL issuance plans relative to the estimated 1 January 2022 requirement

 

Capital distributions

 

·

Barclays understands the importance of delivering attractive total cash returns to shareholders. Barclays is therefore committed to maintaining an appropriate balance between total cash returns to shareholders, investment in the business and maintaining a strong capital position. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. The Board will also continue to supplement the ordinary dividends with additional cash returns, including share buybacks, to shareholders as appropriate

·

Barclays paid a half year dividend of 2.0p per share on 17 September 2021 and initiated the share buyback of up to £500m announced with H121 results in August 2021, of which £279m was completed as at 30 September 2021. This was in addition to the £700m share buyback completed in April 2021

·

Dividends will continue to be paid semi-annually, with the half year dividend expected to represent, under normal circumstances, around one-third of the total dividend for the year

 

Group outlook and targets

 

·

Returns: expect to deliver a RoTE above 10% in 2021

·

Impairment: the impairment run rate is expected to remain below historical levels in coming quarters given reduced unsecured lending balances and the improved macroeconomic outlook, acknowledging the continuing uncertainty

·

Costs: FY21 costs, excluding structural cost actions and performance costs, are expected to be c.£12bn1. The Group will continue to drive efficiencies in its franchises and is evaluating planned structural cost actions in Q421, including in Barclays UK

·

Capital: the CET1 ratio is expected to remain above the target range of 13-14% at 31 December 2021, given the uncertain economic environment and known capital headwinds in 2022 of c.75bps, which includes a c.40bps impact from the reversal of software amortisation benefit from 1 January 2022

·

Capital returns: capital returns policy incorporates a progressive ordinary dividend, supplemented by additional cash returns, including share buybacks as appropriate. Dividends will continue to be paid semi-annually, with the half year dividend expected to represent, under normal circumstances, around one-third of the total dividend for the year

 

Barclays continues to target the following over the medium term:

 

·

Returns: RoTE of greater than 10%

·

Cost efficiency: cost: income ratio below 60%

·

Capital adequacy: CET1 ratio in the range of 13-14%

 

Tushar Morzaria, Group Finance Director

 

1

Group cost outlook is based on an average rate of 1.38 (USD/GBP) in H221 and subject to foreign currency movements

 

Results by Business

 

Barclays UK

Nine months ended

Nine months ended

 

 

30.09.21

30.09.20

 

Income statement information

£m

£m

% Change

Net interest income

3,889

3,917

(1)

Net fee, commission and other income

948

804

18

Total income

4,837

4,721

2

Credit impairment releases/(charges)

306

(1,297)

 

Net operating income

5,143

3,424

50

Operating expenses

(3,155)

(3,136)

(1)

Litigation and conduct

(32)

(36)

11

Total operating expenses

(3,187)

(3,172)

-

Other net income

1

12

(92)

Profit before tax

1,957

264

 

Attributable profit

1,336

165

 

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet information

£bn

£bn

£bn

Loans and advances to customers at amortised cost

208.6

205.4

203.9

Total assets

312.1

289.1

294.5

Customer deposits at amortised cost

256.8

240.5

232.0

Loan: deposit ratio

86%

89%

91%

Risk weighted assets

73.2

73.7

76.2

Period end allocated tangible equity

10.0

9.7

10.0

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.21

30.09.20

 

Return on average allocated tangible equity

17.9%

2.2%

 

Average allocated tangible equity (£bn)

9.9

10.2

 

Cost: income ratio

66%

67%

 

Loan loss rate (bps)

-

81

 

Net interest margin

2.53%

2.63%

 

 

Analysis of Barclays UK

Nine months ended

Nine months ended

 

30.09.21

30.09.20

 

Analysis of total income

£m

£m

% Change

Personal Banking

2,900

2,627

10

Barclaycard Consumer UK

898

1,165

(23)

Business Banking

1,039

929

12

Total income

4,837

4,721

2

 

 

 

 

Analysis of credit impairment releases/(charges)

 

 

 

Personal Banking

20

(312)

 

Barclaycard Consumer UK

290

(803)

 

Business Banking

(4)

(182)

 

Total credit impairment releases/(charges)

306

(1,297)

 

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

Personal Banking

164.6

157.3

155.7

Barclaycard Consumer UK

8.6

9.9

10.7

Business Banking

35.4

38.2

37.5

Total loans and advances to customers at amortised cost

208.6

205.4

203.9

 

 

 

 

Analysis of customer deposits at amortised cost

 

 

 

Personal Banking

193.3

179.7

173.2

Barclaycard Consumer UK

-

0.1

0.1

Business Banking

63.5

60.7

58.7

Total customer deposits at amortised cost

256.8

240.5

232.0

 

Barclays International

Nine months ended

Nine months ended

 

 

30.09.21

30.09.20

 

Income statement information

£m

£m

% Change

Net interest income

2,308

2,668

(13)

Net trading income

4,904

5,548

(12)

Net fee, commission and other income

4,943

4,219

17

Total income

12,155

12,435

(2)

Credit impairment releases/(charges)

311

(2,989)

 

Net operating income

12,466

9,446

32

Operating expenses

(6,916)

(6,632)

(4)

Litigation and conduct

(87)

(39)

 

Total operating expenses

(7,003)

(6,671)

(5)

Other net income

37

19

95

Profit before tax

5,500

2,794

97

Attributable profit

3,961

1,779

 

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

125.9

122.7

128.0

Trading portfolio assets

144.8

127.7

122.3

Derivative financial instrument assets

257.0

301.8

295.9

Financial assets at fair value through the income statement

200.5

170.7

178.2

Cash collateral and settlement balances

115.9

97.5

121.8

Other assets

231.8

221.4

261.7

Total assets

1,075.9

1,041.8

1,107.9

Deposits at amortised cost

253.3

240.5

262.4

Derivative financial instrument liabilities

252.3

300.4

293.3

Loan: deposit ratio

50%

51%

49%

Risk weighted assets

222.7

222.3

224.7

Period end allocated tangible equity

31.8

30.2

30.5

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.21

30.09.20

 

Return on average allocated tangible equity

16.4%

7.5%

 

Average allocated tangible equity (£bn)

32.2

31.8

 

Cost: income ratio

58%

54%

 

Loan loss rate (bps)

-

300

 

Net interest margin

3.96%

3.71%

 

 

Analysis of Barclays International

 

 

 

Corporate and Investment Bank

Nine months ended

Nine months ended

 

 

30.09.21

30.09.20

 

Income statement information

£m

£m

% Change

Net interest income

919

974

(6)

Net trading income

4,878

5,578

(13)

Net fee, commission and other income

3,905

3,286

19

Total income

9,702

9,838

(1)

Credit impairment releases/(charges)

400

(1,507)

 

Net operating income

10,102

8,331

21

Operating expenses

(5,256)

(5,086)

(3)

Litigation and conduct

(4)

(6)

33

Total operating expenses

(5,260)

(5,092)

(3)

Other net income

1

4

(75)

Profit before tax

4,843

3,243

49

Attributable profit

3,469

2,141

62

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

93.8

92.4

96.8

Trading portfolio assets

144.7

127.5

122.2

Derivative financial instrument assets

256.9

301.7

295.9

Financial assets at fair value through the income statement

200.4

170.4

177.9

Cash collateral and settlement balances

115.1

96.7

121.0

Other assets

200.4

194.9

228.9

Total assets

1,011.3

983.6

1,042.7

Deposits at amortised cost

185.8

175.2

195.6

Derivative financial instrument liabilities

252.2

300.3

293.2

Risk weighted assets

192.5

192.2

193.3

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.21

30.09.20

 

Return on average allocated tangible equity

16.4%

10.5%

 

Average allocated tangible equity (£bn)

28.2

27.2

 

Cost: income ratio

54%

52%

 

 

 

 

 

 

 

 

 

Analysis of total income

£m

£m

% Change

FICC

2,902

4,326

(33)

Equities

2,466

1,929

28

Global Markets

5,368

6,255

(14)

Advisory

634

329

93

Equity capital markets

655

369

78

Debt capital markets

1,414

1,279

11

Investment Banking fees

2,703

1,977

37

Corporate lending

412

404

2

Transaction banking

1,219

1,202

1

Corporate

1,631

1,606

2

Total income

9,702

9,838

(1)

 

Analysis of Barclays International

 

 

 

Consumer, Cards and Payments

Nine months ended

Nine months ended

 

 

30.09.21

30.09.20

 

Income statement information

£m

£m

% Change

Net interest income

1,390

1,694

(18)

Net fee, commission, trading and other income

1,063

903

18

Total income

2,453

2,597

(6)

Credit impairment charges

(89)

(1,482)

94

Net operating income

2,364

1,115

 

Operating expenses

(1,660)

(1,546)

(7)

Litigation and conduct

(83)

(33)

 

Total operating expenses

(1,743)

(1,579)

(10)

Other net income

36

15

 

Profit/(loss) before tax

657

(449)

 

Attributable profit/(loss)

492

(362)

 

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

32.1

30.3

31.2

Total assets

64.6

58.2

65.2

Deposits at amortised cost

67.5

65.3

66.8

Risk weighted assets

30.2

30.1

31.4

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.21

30.09.20

 

Return on average allocated tangible equity

16.2%

(10.6)%

 

Average allocated tangible equity (£bn)

4.0

4.6

 

Cost: income ratio

71%

61%

 

Loan loss rate (bps)

35

577

 

 

 

 

 

Analysis of total income

£m

£m

% Change

International Cards and Consumer Bank

1,540

1,857

(17)

Private Bank

581

533

9

Unified Payments

332

207

60

Total income

2,453

2,597

(6)

 

Head Office

Nine months ended

Nine months ended

 

 

30.09.21

30.09.20

 

Income statement information

£m

£m

% Change

Net interest income

(354)

(307)

(15)

Net fee, commission and other income

142

(24)

 

Total income

(212)

(331)

36

Credit impairment releases/(charges)

5

(60)

 

Net operating income

(207)

(391)

47

Operating expenses

(507)

(186)

 

Litigation and conduct

(12)

(31)

61

Total operating expenses

(519)

(217)

 

Other net income/(expenses)

209

(31)

 

Loss before tax

(517)

(639)

19

Attributable loss

(39)

(638)

94

 

 

 

 

 

As at 30.09.21

As at 31.12.20

As at 30.09.20

Balance sheet information

£bn

£bn

£bn

Total assets

18.5

18.6

19.3

Risk weighted assets

11.5

10.2

9.8

Period end allocated tangible equity

6.5

6.8

7.1

 

 

 

 

 

Nine months ended

Nine months ended

 

Performance measures

30.09.21

30.09.20

 

Average allocated tangible equity (£bn)

5.0

6.5

 

 

  Quarterly Results Summary

 

Barclays Group

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

1,940

2,052

1,851

 

1,845

2,055

1,892

2,331

 

2,344

Net fee, commission and other income

3,525

3,363

4,049

 

3,096

3,149

3,446

3,952

 

2,957

Total income

5,465

5,415

5,900

 

4,941

5,204

5,338

6,283

 

5,301

Credit impairment (charges)/releases

(120)

797

(55)

 

(492)

(608)

(1,623)

(2,115)

 

(523)

Net operating income

5,345

6,212

5,845

 

4,449

4,596

3,715

4,168

 

4,778

Operating costs

(3,446)

(3,587)

(3,545)

 

(3,480)

(3,391)

(3,310)

(3,253)

 

(3,308)

UK bank levy

-

-

-

 

(299)

-

-

-

 

(226)

Litigation and conduct

(32)

(66)

(33)

 

(47)

(76)

(20)

(10)

 

(167)

Total operating expenses

(3,478)

(3,653)

(3,578)

 

(3,826)

(3,467)

(3,330)

(3,263)

 

(3,701)

Other net income/(expenses)

94

21

132

 

23

18

(26)

8

 

20

Profit before tax

1,961

2,580

2,399

 

646

1,147

359

913

 

1,097

Tax charge

(317)

(263)

(496)

 

(163)

(328)

(42)

(71)

 

(189)

Profit after tax

1,644

2,317

1,903

 

483

819

317

842

 

908

Non-controlling interests

(1)

(15)

(4)

 

(37)

(4)

(21)

(16)

 

(42)

Other equity instrument holders

(197)

(194)

(195)

 

(226)

(204)

(206)

(221)

 

(185)

Attributable profit

1,446

2,108

1,704

 

220

611

90

605

 

681

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

11.9%

18.1%

14.7%

 

1.8%

5.1%

0.7%

5.1%

 

5.9%

Average tangible shareholders' equity (£bn)

48.4

46.5

46.5

 

47.6

48.3

50.2

47.0

 

46.4

Cost: income ratio

64%

67%

61%

 

77%

67%

62%

52%

 

70%

Loan loss rate (bps)

13

-

6

 

56

69

179

223

 

60

Basic earnings per share

8.5p

12.3p

9.9p

 

1.3p

3.5p

0.5p

3.5p

 

3.9p

Basic weighted average number of shares (m)

17,062

17,140

17,293

 

17,300

17,298

17,294

17,278

 

17,200

Period end number of shares (m)

16,851

16,998

17,223

 

17,359

17,353

17,345

17,332

 

17,322

 

 

 

 

 

 

 

 

 

 

 

Balance sheet and capital management1

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Loans and advances at amortised cost

353.0

348.5

345.8

 

342.6

344.4

354.9

374.1

 

339.1

Loans and advances at amortised cost impairment coverage ratio

1.7%

1.8%

2.2%

 

2.4%

2.5%

2.5%

2.1%

 

1.8%

Total assets

1,406.5

1,376.3

1,379.7

 

1,349.5

1,421.7

1,385.1

1,444.3

 

1,140.2

Deposits at amortised cost

510.2

500.9

498.8

 

481.0

494.6

466.9

470.7

 

415.8

Tangible net asset value per share

287p

281p

267p

 

269p

275p

284p

284p

 

262p

Common equity tier 1 ratio

15.4%

15.1%

14.6%

 

15.1%

14.6%

14.2%

13.1%

 

13.8%

Common equity tier 1 capital

47.3

46.2

45.9

 

46.3

45.5

45.4

42.5

 

40.8

Risk weighted assets

307.5

306.4

313.4

 

306.2

310.7

319.0

325.6

 

295.1

Average UK leverage ratio

4.9%

4.8%

4.9%

 

5.0%

5.1%

4.7%

4.5%

 

4.5%

Average UK leverage exposure

1,199.8

1,192.0

1,174.9

 

1,146.9

1,111.1

1,148.7

1,176.2

 

1,142.8

UK leverage ratio

5.1%

5.0%

5.0%

 

5.3%

5.2%

5.2%

4.5%

 

5.1%

UK leverage exposure

1,161.0

1,153.6

1,145.4

 

1,090.9

1,095.1

1,071.1

1,178.7

 

1,007.7

 

 

 

 

 

 

 

 

 

 

 

Funding and liquidity

 

 

 

 

 

 

 

 

 

 

Group liquidity pool (£bn)

293

291

290

 

266

327

298

237

 

211

Liquidity coverage ratio

161%

162%

161%

 

162%

181%

186%

155%

 

160%

Loan: deposit ratio

69%

70%

69%

 

71%

70%

76%

79%

 

82%

 

1

Refer to pages 27 to 33 for further information on how capital, RWAs and leverage are calculated.

 

v Quarterly Results by Business

 

Barclays UK

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

1,303

1,305

1,281

 

1,317

1,280

1,225

1,412

 

1,478

Net fee, commission and other income

335

318

295

 

309

270

242

292

 

481

Total income

1,638

1,623

1,576

 

1,626

1,550

1,467

1,704

 

1,959

Credit impairment (charges)/releases

(137)

520

(77)

 

(170)

(233)

(583)

(481)

 

(190)

Net operating income

1,501

2,143

1,499

 

1,456

1,317

884

1,223

 

1,769

Operating costs

(1,041)

(1,078)

(1,036)

 

(1,134)

(1,095)

(1,018)

(1,023)

 

(1,023)

UK bank levy

-

-

-

 

(50)

-

-

-

 

(41)

Litigation and conduct

(10)

(19)

(3)

 

4

(25)

(6)

(5)

 

(58)

Total operating expenses

(1,051)

(1,097)

(1,039)

 

(1,180)

(1,120)

(1,024)

(1,028)

 

(1,122)

Other net income/(expenses)

1

-

-

 

6

(1)

13

-

 

-

Profit/(loss) before tax 

451

1,046

460

 

282

196

(127)

195

 

647

Attributable profit/(loss)

317

721

298

 

160

113

(123)

175

 

438

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Loans and advances to customers at amortised cost

208.6

207.8

205.7

 

205.4

203.9

202.0

195.7

 

193.7

Total assets

312.1

311.2

309.1

 

289.1

294.5

287.6

267.5

 

257.8

Customer deposits at amortised cost

256.8

255.5

247.5

 

240.5

232.0

225.7

207.5

 

205.5

Loan: deposit ratio

86%

87%

88%

 

89%

91%

92%

96%

 

96%

Risk weighted assets

73.2

72.2

72.7

 

73.7

76.2

77.9

77.7

 

74.9

Period end allocated tangible equity

10.0

9.9

10.0

 

9.7

10.0

10.3

10.3

 

10.3

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

12.7%

29.1%

12.0%

 

6.5%

4.5%

(4.8)%

6.9%

 

17.0%

Average allocated tangible equity (£bn)

10.0

9.9

9.9

 

9.8

10.1

10.3

10.1

 

10.3

Cost: income ratio

64%

68%

66%

 

73%

72%

70%

60%

 

57%

Loan loss rate (bps)

24

-

14

 

31

43

111

96

 

38

Net interest margin

2.49%

2.55%

2.54%

 

2.56%

2.51%

2.48%

2.91%

 

3.03%

 

Analysis of Barclays UK

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Analysis of total income

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Personal Banking

990

987

923

 

895

833

826

968

 

1,064

Barclaycard Consumer UK

293

290

315

 

354

362

367

436

 

533

Business Banking

355

346

338

 

377

355

274

300

 

362

Total income

1,638

1,623

1,576

 

1,626

1,550

1,467

1,704

 

1,959

 

 

 

 

 

 

 

 

 

 

 

Analysis of credit impairment (charges)/releases

 

 

 

 

 

 

 

 

 

 

Personal Banking

(30)

72

(22)

 

(68)

(48)

(130)

(134)

 

(71)

Barclaycard Consumer UK

(108)

434

(36)

 

(78)

(106)

(396)

(301)

 

(108)

Business Banking

1

14

(19)

 

(24)

(79)

(57)

(46)

 

(11)

Total credit impairment (charges)/releases

(137)

520

(77)

 

(170)

(233)

(583)

(481)

 

(190)

 

 

 

 

 

 

 

 

 

 

 

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Personal Banking

164.6

162.4

160.4

 

157.3

155.7

154.9

153.4

 

151.9

Barclaycard Consumer UK

8.6

8.8

8.7

 

9.9

10.7

11.5

13.6

 

14.7

Business Banking

35.4

36.6

36.6

 

38.2

37.5

35.6

28.7

 

27.1

Total loans and advances to customers at amortised cost

208.6

207.8

205.7

 

205.4

203.9

202.0

195.7

 

193.7

 

 

 

 

 

 

 

 

 

 

 

Analysis of customer deposits at amortised cost

 

 

 

 

 

 

 

 

 

 

Personal Banking

193.3

191.0

186.0

 

179.7

173.2

169.6

161.4

 

159.2

Barclaycard Consumer UK

-

0.1

0.1

 

0.1

0.1

0.1

-

 

-

Business Banking

63.5

64.4

61.4

 

60.7

58.7

56.0

46.1

 

46.3

Total customer deposits at amortised cost

256.8

255.5

247.5

 

240.5

232.0

225.7

207.5

 

205.5

 

Barclays International

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

749

811

748

 

614

823

847

998

 

965

Net trading income

1,515

1,455

1,934

 

1,372

1,528

1,660

2,360

 

929

Net fee, commission and other income

1,673

1,553

1,717

 

1,500

1,430

1,503

1,286

 

1,558

Total income

3,937

3,819

4,399

 

3,486

3,781

4,010

4,644

 

3,452

Credit impairment releases/(charges)

18

271

22

 

(291)

(370)

(1,010)

(1,609)

 

(329)

Net operating income

3,955

4,090

4,421

 

3,195

3,411

3,000

3,035

 

3,123

Operating costs

(2,310)

(2,168)

(2,438)

 

(2,133)

(2,227)

(2,186)

(2,219)

 

(2,240)

UK bank levy

-

-

-

 

(240)

-

-

-

 

(174)

Litigation and conduct

(3)

(63)

(21)

 

(9)

(28)

(11)

-

 

(86)

Total operating expenses

(2,313)

(2,231)

(2,459)

 

(2,382)

(2,255)

(2,197)

(2,219)

 

(2,500)

Other net income

15

13

9

 

9

9

4

6

 

17

Profit before tax

1,657

1,872

1,971

 

822

1,165

807

822

 

640

Attributable profit

1,263

1,267

1,431

 

441

782

468

529

 

397

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Loans and advances at amortised cost

125.9

121.9

123.5

 

122.7

128.0

138.1

167.0

 

132.8

Trading portfolio assets

144.8

147.1

131.1

 

127.7

122.3

109.5

101.6

 

113.3

Derivative financial instrument assets

257.0

255.4

269.4

 

301.8

295.9

306.8

341.5

 

228.9

Financial assets at fair value through the income statement

200.5

190.4

197.5

 

170.7

178.2

154.3

188.4

 

128.4

Cash collateral and settlement balances

115.9

108.5

109.7

 

97.5

121.8

130.8

153.2

 

79.4

Other assets

231.8

223.5

221.7

 

221.4

261.7

236.3

201.5

 

178.6

Total assets

1,075.9

1,046.8

1,052.9

 

1,041.8

1,107.9

1,075.8

1,153.2

 

861.4

Deposits at amortised cost

253.3

245.4

251.2

 

240.5

262.4

241.2

263.3

 

210.0

Derivative financial instrument liabilities

252.3

246.9

260.2

 

300.4

293.3

307.6

338.8

 

228.9

Loan: deposit ratio

50%

50%

49%

 

51%

49%

57%

63%

 

63%

Risk weighted assets

222.7

223.2

230.0

 

222.3

224.7

231.2

237.9

 

209.2

Period end allocated tangible equity

31.8

31.8

32.7

 

30.2

30.5

31.6

33.1

 

29.6

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

15.9%

15.6%

17.7%

 

5.8%

10.2%

5.6%

6.8%

 

5.1%

Average allocated tangible equity (£bn)

31.8

32.4

32.3

 

30.5

30.6

33.5

31.2

 

30.9

Cost: income ratio

59%

58%

56%

 

68%

60%

55%

48%

 

72%

Loan loss rate (bps)

-

-

(7)

 

90

112

284

377

 

96

Net interest margin

4.02%

3.96%

3.92%

 

3.41%

3.79%

3.43%

3.93%

 

4.29%

 

Analysis of Barclays International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Investment Bank

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

279

370

270

 

110

305

334

335

 

248

Net trading income

1,467

1,494

1,917

 

1,397

1,535

1,812

2,231

 

951

Net fee, commission and other income

1,383

1,115

1,407

 

1,131

1,065

1,170

1,051

 

1,115

Total income

3,129

2,979

3,594

 

2,638

2,905

3,316

3,617

 

2,314

Credit impairment releases/(charges)

128

229

43

 

(52)

(187)

(596)

(724)

 

(30)

Net operating income

3,257

3,208

3,637

 

2,586

2,718

2,720

2,893

 

2,284

Operating costs

(1,747)

(1,623)

(1,886)

 

(1,603)

(1,716)

(1,680)

(1,690)

 

(1,691)

UK bank levy

-

-

-

 

(226)

-

-

-

 

(156)

Litigation and conduct

(2)

(1)

(1)

 

2

(3)

(3)

-

 

(79)

Total operating expenses

(1,749)

(1,624)

(1,887)

 

(1,827)

(1,719)

(1,683)

(1,690)

 

(1,926)

Other net income

-

-

1

 

2

1

3

-

 

1

Profit before tax

1,508

1,584

1,751

 

761

1,000

1,040

1,203

 

359

Attributable profit

1,157

1,049

1,263

 

413

627

694

820

 

193

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Loans and advances at amortised cost

93.8

91.0

94.3

 

92.4

96.8

104.9

128.2

 

92.0

Trading portfolio assets

144.7

147.0

130.9

 

127.5

122.2

109.3

101.5

 

113.3

Derivative financial instruments assets

256.9

255.3

269.4

 

301.7

295.9

306.7

341.4

 

228.8

Financial assets at fair value through the income statement

200.4

190.3

197.3

 

170.4

177.9

153.7

187.8

 

127.7

Cash collateral and settlement balances

115.1

107.7

108.8

 

96.7

121.0

129.7

152.2

 

78.5

Other assets

200.4

192.5

190.8

 

194.9

228.9

205.5

171.4

 

155.3

Total assets

1,011.3

983.8

991.5

 

983.6

1,042.7

1,009.8

1,082.5

 

795.6

Deposits at amortised cost

185.8

178.2

185.2

 

175.2

195.6

173.9

198.4

 

146.2

Derivative financial instrument liabilities

252.2

246.8

260.2

 

300.3

293.2

307.6

338.7

 

228.9

Risk weighted assets

192.5

194.3

201.3

 

192.2

193.3

198.3

201.7

 

171.5

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

16.6%

14.8%

17.9%

 

6.3%

9.5%

9.6%

12.5%

 

3.0%

Average allocated tangible equity (£bn)

27.8

28.4

28.2

 

26.3

26.4

29.0

26.2

 

25.8

Cost: income ratio

56%

55%

53%

 

69%

59%

51%

47%

 

83%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of total income

£m

£m

£m

 

£m

£m

£m

£m

 

£m

FICC

803

895

1,204

 

812

1,000

1,468

1,858

 

726

Equities

757

777

932

 

542

691

674

564

 

409

Global Markets

1,560

1,672

2,136

 

1,354

1,691

2,142

2,422

 

1,135

Advisory

253

218

163

 

232

90

84

155

 

202

Equity capital markets

186

226

243

 

104

122

185

62

 

56

Debt capital markets

532

429

453

 

418

398

463

418

 

322

Investment Banking fees

971

873

859

 

754

610

732

635

 

580

Corporate lending

168

38

206

 

186

232

61

111

 

202

Transaction banking

430

396

393

 

344

372

381

449

 

397

Corporate

598

434

599

 

530

604

442

560

 

599

Total income

3,129

2,979

3,594

 

2,638

2,905

3,316

3,617

 

2,314

 

Analysis of Barclays International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer, Cards and Payments

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

471

441

478

 

504

518

513

663

 

717

Net fee, commission, trading and other income

337

399

327

 

344

358

181

364

 

421

Total income

808

840

805

 

848

876

694

1,027

 

1,138

Credit impairment (charges)/releases

(110)

42

(21)

 

(239)

(183)

(414)

(885)

 

(299)

Net operating income

698

882

784

 

609

693

280

142

 

839

Operating costs

(563)

(545)

(552)

 

(530)

(511)

(506)

(529)

 

(549)

UK bank levy

-

-

-

 

(14)

-

-

-

 

(18)

Litigation and conduct

(1)

(62)

(20)

 

(11)

(25)

(8)

-

 

(7)

Total operating expenses

(564)

(607)

(572)

 

(555)

(536)

(514)

(529)

 

(574)

Other net income

15

13

8

 

7

8

1

6

 

16

Profit/(loss) before tax

149

288

220

 

61

165

(233)

(381)

 

281

Attributable profit/(loss)

106

218

168

 

28

155

(226)

(291)

 

204

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Loans and advances at amortised cost

32.1

30.9

29.2

 

30.3

31.2

33.2

38.8

 

40.8

Total assets

64.6

63.0

61.4

 

58.2

65.2

66.0

70.7

 

65.8

Deposits at amortised cost

67.5

67.2

66.0

 

65.3

66.8

67.3

64.9

 

63.8

Risk weighted assets

30.2

29.0

28.8

 

30.1

31.4

32.9

36.2

 

37.7

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

10.5%

21.8%

16.5%

 

2.7%

14.7%

(20.2)%

(23.5)%

 

15.9%

Average allocated tangible equity (£bn)

4.0

4.0

4.1

 

4.2

4.2

4.5

5.0

 

5.1

Cost: income ratio

70%

72%

71%

 

65%

61%

74%

52%

 

50%

Loan loss rate (bps)

127

-

27

 

286

211

455

846

 

273

 

Head Office

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Income statement information

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Net interest income

(112)

(64)

(178)

 

(86)

(48)

(180)

(79)

 

(99)

Net fee, commission and other income

2

37

103

 

(85)

(79)

41

14

 

(11)

Total income

(110)

(27)

(75)

 

(171)

(127)

(139)

(65)

 

(110)

Credit impairment (charges)/releases

(1)

6

-

 

(31)

(5)

(30)

(25)

 

(4)

Net operating expenses

(111)

(21)

(75)

 

(202)

(132)

(169)

(90)

 

(114)

Operating costs

(95)

(341)

(71)

 

(213)

(69)

(106)

(11)

 

(45)

UK bank levy

-

-

-

 

(9)

-

-

-

 

(11)

Litigation and conduct

(19)

16

(9)

 

(42)

(23)

(3)

(5)

 

(23)

Total operating expenses

(114)

(325)

(80)

 

(264)

(92)

(109)

(16)

 

(79)

Other net income/(expenses)

78

8

123

 

8

10

(43)

2

 

3

Loss before tax

(147)

(338)

(32)

 

(458)

(214)

(321)

(104)

 

(190)

Attributable (loss)/profit

(134)

120

(25)

 

(381)

(284)

(255)

(99)

 

(154)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Total assets

18.5

18.3

17.7

 

18.6

19.3

21.7

23.6

 

21.0

Risk weighted assets

11.5

11.1

10.7

 

10.2

9.8

9.9

10.0

 

11.0

Period end allocated tangible equity

6.5

5.9

3.3

 

6.8

7.1

7.4

6.0

 

5.6

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Average allocated tangible equity (£bn)

6.6

4.2

4.3

 

7.3

7.6

6.4

5.6

 

5.2

 

Performance Management

 

 

 

 

 

 

 

 

Nine months ended 30.09.21

Nine months ended 30.09.20

 

Net interest income

Average customer assets

Net interest margin

Net interest income

Average customer assets

Net interest margin

 

£m

£m

%

£m

£m

%

Barclays UK

3,889

205,889

2.53

3,917

199,048

2.63

Barclays International1,2

2,301

77,628

3.96

2,686

96,799

3.71

Total Barclays UK and Barclays International

6,190

283,517

2.92

6,603

295,847

2.98

Other3

(347)

 

 

(325)

 

 

5,843

 

 

6,278

 

 

 

1

Barclays International margins include IEL balances within the investment banking business.

2

Barclays amended the presentation of the premium paid for purchased financial guarantees which are embedded in notes it issues directly to the market in Q420 from net investment income to interest expense within net interest income. Had the equivalent Q320 YTD interest expense been recognised in net interest income, the Barclays International and Total Barclays UK and Barclays International NIMs would have been 3.60% and 2.95% respectively.

3

Other includes Head Office and non-lending related investment banking businesses not included in Barclays International margins.

 

The Group's combined product and equity structural hedge notional as at 30 September 2021 was £224bn (September 2020: £181bn), with an average duration of close to 3 years (2020: average duration 2.5 to 3 years). Group net interest income includes gross structural hedge contributions of £1,042m (Q320 YTD: £1,273m) and net structural hedge contributions of £889m (Q320 YTD: £917m). Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on the basket of swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.

 

Quarterly analysis for Barclays UK and Barclays International

Net interest income

Average customer assets

Net interest margin

Three months ended 30.09.21

£m

£m

%

Barclays UK

1,303

207,692

2.49

Barclays International1

783

77,364

4.02

Total Barclays UK and Barclays International

2,086

285,056

2.90

 

 

 

 

Three months ended 30.06.21

 

 

 

Barclays UK

1,305

205,168

2.55

Barclays International1

763

77,330

3.96

Total Barclays UK and Barclays International

2,068

282,498

2.94

 

 

 

 

Three months ended 31.03.21

 

 

 

Barclays UK

1,281

204,663

2.54

Barclays International1

755

78,230

3.92

Total Barclays UK and Barclays International

2,036

282,893

2.92

 

 

 

 

Three months ended 31.12.20

 

 

 

Barclays UK

1,317

204,315

2.56

Barclays International1,2

696

81,312

3.41

Total Barclays UK and Barclays International

2,013

285,627

2.80

 

 

 

 

Three months ended 30.09.20

 

 

 

Barclays UK

1,280

203,089

2.51

Barclays International1,2

838

88,032

3.79

Total Barclays UK and Barclays International

2,118

291,121

2.89

 

1

Barclays International margins include IEL balances within the investment banking business.

2

The reclassification of expense of the premium paid for purchased financial guarantees from net investment income to net interest income was recognised in full in Q420 and resulted in a 0.48% reduction on the Q420 Barclays International NIM and 0.14% reduction on the Q420 Total Barclays UK and Barclays International NIM. Had the equivalent impact been reflected in the respective quarters, the Barclays International NIM would have been 3.68% in Q320 and 3.77% in Q420. Total Barclays UK and Barclays International NIMs would have been 2.86% in Q320 and 2.91% in Q420 respectively.

 

Credit Risk

 

Loans and advances at amortised cost by stage

 

The table below presents an analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio by stage allocation and business segment as at 30 September 2021. Also included are off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio by stage allocation as at 30 September 2021.

 

Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure, as Expected Credit Losses (ECL) is not reported separately. Any excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios, the impairment allowance on the undrawn exposure is reported on the liability side of the balance sheet as a provision.

 

 

Gross exposure

 

Impairment allowance

Net exposure

 

Stage 1

Stage 2

Stage 3

Total

 

Stage 1

Stage 2

Stage 3

Total

As at 30.09.21

£m

£m

£m

£m

 

£m

£m

£m

£m

£m

Barclays UK

161,520

22,277

2,666

186,463

 

304

1,163

908

2,375

184,088

Barclays International

23,592

4,121

1,647

29,360

 

490

966

858

2,314

27,046

Head Office

3,953

431

742

5,126

 

3

37

356

396

4,730

Total Barclays Group retail

189,065

26,829

5,055

220,949

 

797

2,166

2,122

5,085

215,864

Barclays UK

34,810

1,986

1,067

37,863

 

55

30

25

110

37,753

Barclays International

86,196

12,372

1,273

99,841

 

209

260

515

984

98,857

Head Office

518

3

33

554

 

-

-

31

31

523

Total Barclays Group wholesale1

121,524

14,361

2,373

138,258

 

264

290

571

1,125

137,133

Total loans and advances at amortised cost

310,589

41,190

7,428

359,207

 

1,061

2,456

2,693

6,210

352,997

Off-balance sheet loan commitments and financial guarantee contracts2

306,313

41,766

750

348,829

 

225

298

24

547

348,282

Total3

616,902

82,956

8,178

708,036

 

1,286

2,754

2,717

6,757

701,279

 

 

 

 

 

 

 

 

 

 

 

 

As at 30.09.21

 

Nine months ended 30.09.21

 

 

Coverage ratio

 

Loan impairment (release)/charge and loan loss rate

 

 

Stage 1

Stage 2

Stage 3

Total

 

Loan impairment release

Loan loss rate

 

 

%

%

%

%

 

£m

bps

 

Barclays UK

0.2

5.2

34.1

1.3

 

 

34 

 

2 

 

Barclays International

2.1

23.4

52.1

7.9

 

 

88

 

40 

 

Head Office

0.1

8.6

48.0

7.7

 

 

(5)

 

- 

 

Total Barclays Group retail

0.4

8.1

42.0

2.3

 

 

117 

 

7 

 

Barclays UK

0.2

1.5

2.3

0.3

 

 

(81)

 

- 

 

Barclays International

0.2

2.1

40.5

1.0

 

 

(125)

 

- 

 

Head Office

-

-

93.9

5.6

 

 

- 

 

- 

 

Total Barclays Group wholesale 1

0.2

2.0

24.1

0.8

 

 

(206)

 

- 

 

Total loans and advances at amortised cost

0.3

6.0

36.3

1.7

 

 

(89)

 

- 

 

Off-balance sheet loan commitments and financial guarantee contracts2

0.1

0.7

3.2

0.2

 

 

(513)

 

 

 

Other financial assets subject to impairment3

 

 

 

 

 

 

(20)

 

 

 

Total

0.2

3.3

33.2

1.0

 

 

(622)

 

 

 

 

1

Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures that are managed on a collective basis. The net impact is a difference in total exposure of £7,229m of balances reported as wholesale loans on page 24 in the Loans and advances at amortised cost by product disclosure.

2

Excludes loan commitments and financial guarantees of £20.8bn carried at fair value.

3

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £190.8bn and impairment allowance of £112m. This comprises £5m ECL on £190.6bn Stage 1 assets, Nil on £68m Stage 2 fair value through other comprehensive income assets, cash collateral and settlement balances and £107m on £113m Stage 3 other assets.

 

 

 

Gross exposure

 

Impairment allowance

Net exposure

 

Stage 1

Stage 2

Stage 3

Total

 

Stage 1

Stage 2

Stage 3

Total

As at 31.12.20

£m

£m

£m

£m

 

£m

£m

£m

£m

£m

Barclays UK

153,250

23,896

2,732

179,878

 

332

1,509

1,147

2,988

176,890

Barclays International1

21,048

5,500

1,992

28,540

 

396

1,329

1,205

2,930

25,610

Head Office

4,267

720

844

5,831

 

4

51

380

435

5,396

Total Barclays Group retail

178,565

30,116

5,568

214,249

 

732

2,889

2,732

6,353

207,896

Barclays UK

31,918

4,325

1,126

37,369

 

13

129

116

258

37,111

Barclays International1

79,911

16,565

2,270

98,746

 

288

546

859

1,693

97,053

Head Office

570

-

33

603

 

-

-

31

31

572

Total Barclays Group wholesale2

112,399

20,890

3,429

136,718

 

301

675

1,006

1,982

134,736

Total loans and advances at amortised cost

290,964

51,006

8,997

350,967

 

1,033

3,564

3,738

8,335

342,632

Off-balance sheet loan commitments and financial guarantee contracts3

289,939

52,891

2,330

345,160

 

256

758

50

1,064

344,096

Total4

580,903

103,897

11,327

696,127

 

1,289

4,322

3,788

9,399

686,728

 

 

 

 

 

 

 

 

 

 

 

 

As at 31.12.20

 

Year ended 31.12.20

 

 

Coverage ratio

 

Loan impairment charge and loan loss rate5

 

Stage 1

Stage 2

Stage 3

Total

 

Loan impairment charge

Loan loss rate

 

 

%

%

%

%

 

£m

bps

 

Barclays UK

0.2

6.3

42.0

1.7

 

 

1,070

 

59

 

Barclays International1

1.9

24.2

60.5

10.3

 

 

1,680

 

589

 

Head Office

0.1

7.1

45.0

7.5

 

 

91

 

156

 

Total Barclays Group retail

0.4

9.6

49.1

3.0

 

 

2,841

 

133

 

Barclays UK

-

3.0

10.3

0.7

 

 

154

 

41

 

Barclays International1

0.4

3.3

37.8

1.7

 

 

914

 

93

 

Head Office

-

-

93.9

5.1

 

 

-

 

-

 

Total Barclays Group wholesale2

0.3

3.2

29.3

1.4

 

 

1,068

 

78

 

Total loans and advances at amortised cost

0.4

7.0

41.5

2.4

 

 

3,909

 

111

 

Off-balance sheet loan commitments and financial guarantee contracts3

0.1

1.4

2.1

0.3

 

 

776

 

 

 

Other financial assets subject to impairment4

 

 

 

 

 

 

153

 

 

 

Total5

0.2

4.2

33.4

1.4

 

 

4,838

 

 

 

 

1

Private Banking have refined the methodology to classify £5bn of their exposure between Wholesale and Retail during the year.

2

Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures that are managed on a collective basis. The net impact is a difference in total exposure of £7,551m of balances reported as wholesale loans on page 24 in the Loans and advances at amortised cost by product disclosure.

3

Excludes loan commitments and financial guarantees of £9.5bn carried at fair value.

4

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.3bn and impairment allowance of £165m. This comprises £11m ECL on £175.7bn Stage 1 assets, £9m on £4.4bn Stage 2 fair value through other comprehensive income assets,other assets and cash collateral and settlement balances and £145m on £154m Stage 3 other assets.

5

The loan loss rate is 138 bps after applying the total impairment charge of £4,838m.

 

Loans and advances at amortised cost by product

 

The table below presents a breakdown of loans and advances at amortised cost and the impairment allowance with stage allocation by asset classification.

 

 

 

Stage 2

 

 

As at 30.09.21

Stage 1

Not past due

<=30 days past due

>30 days past due

Total

Stage 3

Total

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

148,033

16,545

1,585

717

18,847

2,201

169,081

Credit cards, unsecured loans and other retail lending

34,565

6,958

292

261

7,511

2,563

44,639

Wholesale loans

127,991

14,062

275

495

14,832

2,664

145,487

Total

310,589

37,565

2,152

1,473

41,190

7,428

359,207

 

 

 

 

 

 

 

 

Impairment allowance

 

 

 

 

 

 

 

Home loans

17

50

6

7

63

404

484

Credit cards, unsecured loans and other retail lending

707

1,861

83

121

2,065

1,610

4,382

Wholesale loans

337

320

5

3

328

679

1,344

Total

1,061

2,231

94

131

2,456

2,693

6,210

 

 

 

 

 

 

 

 

Net exposure

 

 

 

 

 

 

 

Home loans

148,016

16,495

1,579

710

18,784

1,797

168,597

Credit cards, unsecured loans and other retail lending

33,858

5,097

209

140

5,446

953

40,257

Wholesale loans

127,654

13,742

270

492

14,504

1,985

144,143

Total

309,528

35,334

2,058

1,342

38,734

4,735

352,997

 

 

 

 

 

 

 

 

Coverage ratio

%

%

%

%

%

%

%

Home loans

-

0.3

0.4

1.0

0.3

18.4

0.3

Credit cards, unsecured loans and other retail lending

2.0

26.7

28.4

46.4

27.5

62.8

9.8

Wholesale loans

0.3

2.3

1.8

0.6

2.2

25.5

0.9

Total

0.3

5.9

4.4

8.9

6.0

36.3

1.7

 

 

 

 

 

 

 

 

As at 31.12.20

 

 

 

 

 

 

 

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

138,639

16,651

1,785

876

19,312

2,234

160,185

Credit cards, unsecured loans and other retail lending

33,021

9,470

544

306

10,320

3,172

46,513

Wholesale loans

119,304

19,501

1,097

776

21,374

3,591

144,269

Total

290,964

45,622

3,426

1,958

51,006

8,997

350,967

 

 

 

 

 

 

 

 

Impairment allowance

 

 

 

 

 

 

 

Home Loans

33

57

13

14

84

421

538

Credit cards, unsecured loans and other retail lending

680

2,382

180

207

2,769

2,251

5,700

Wholesale Loans

320

650

50

11

711

1,066

2,097

Total

1,033

3,089

243

232

3,564

3,738

8,335

 

 

 

 

 

 

 

 

Net exposure

 

 

 

 

 

 

 

Home loans

138,606

16,594

1,772

862

19,228

1,813

159,647

Credit cards, unsecured loans and other retail lending

32,341

7,088

364

99

7,551

921

40,813

Wholesale loans

118,984

18,851

1,047

765

20,663

2,525

142,172

Total

289,931

42,533

3,183

1,726

47,442

5,259

342,632

 

 

 

 

 

 

 

 

Coverage ratio

%

%

%

%

%

%

%

Home loans

-

0.3

0.7

1.6

0.4

18.8

0.3

Credit cards, unsecured loans and other retail lending

2.1

25.2

33.1

67.6

26.8

71.0

12.3

Wholesale loans

0.3

3.3

4.6

1.4

3.3

29.7

1.5

Total

0.4

6.8

7.1

11.8

7.0

41.5

2.4

 

Measurement uncertainty

 

Forecast Macroeconomic Variables were refreshed in Q321, following on from the Q221 update, with key drivers for the Baseline scenario more optimistic than Q420 and Q221. In the Baseline scenario, UK GDP returns to the pre-COVID-19 pandemic levels by early 2022 with peak UK unemployment of 5.4% in Q122. In the Upside 2 scenario, effective fiscal stimulus measures, including public investments in infrastructure and skills, provide a boost to demand and confidence, which in turn leads to economic activity in almost all advanced economies returning to the pre-COVID-19 pandemic levels by the end of 2021. Unemployment levels decline back to 5% by Q122 in the UK, and to 4% by Q222 in the US. In the Downside 2 scenario, supply and distribution issues slow the vaccination process and the emergence of new virus variants that are not susceptible to the existing vaccines results in full national lockdowns. This leads to significant falls in GDP in Q421 and UK and US unemployment reaching c.10% and 12% respectively in Q122.

 

The Group uses a five-scenario model to calculate ECL. The methodology for estimating probability weights used in calculating ECL involves simulating a range of future paths for UK and US GDP using historical data. The five scenarios are mapped against the distribution of these future paths, with the median centred around the Baseline such that scenarios further from the Baseline attract a lower weighting. The range of future paths generated in the calculation of the weights at 30 September 2021 is narrower than at 30 June 2021 and 31 December 2020 due to continued growth in UK and US GDP and lower levels of uncertainty. The Upside 2 and Downside 2 scenarios are therefore nearer the tails of the distribution than previously resulting in lower weightings.

 

In isolation, the reduction in Baseline unemployment forecast between Q2 and Q3 would lead to a reduction in unsecured ECL. However, the reduction in Downside 2 unemployment forecast between Q2 and Q3 is lower than the movement in the Baseline unemployment forecast; this widening delta between Baseline and Downside 2 unemployment forecast moderates the overall impact.

 

Although the macroeconomic outlook has improved, the level of uncertainty is relatively high. Unemployment remains at elevated levels, with a significant number of jobs at risk of redundancy as measures of support are tapered down in the UK, US and Germany between the end of Q321 and Q122 respectively. To date, limited defaults have been observed in response to the COVID-19 pandemic, but credit deterioration may occur as support is withdrawn. This uncertainty continues to be captured in two distinct ways: firstly, the identification of specific customers and clients who may be more vulnerable to the withdrawal of relief and secondly, macroeconomic and risk parameter uncertainties which are applied at a portfolio level. As a result, economic uncertainty PMAs and total PMAs remained relatively stable at £2.0bn (30 June 2021: £2.1bn) and £2.0bn (30 June 2021: £1.9bn) respectively.

 

The tables below show the key consensus macroeconomic variables used in the Baseline scenario and the probability weights applied to each scenario.

 

Baseline average macroeconomic variables used in the calculation of ECL

 

2021

2022

2023

As at 30.09.21

 %

 %

 %

UK GDP1

6.5

5.2

2.3

UK unemployment2

5.0

5.1

4.7

UK HPI3

3.8

0.8

2.6

UK bank rate

0.1

0.2

0.5

US GDP1

6.8

4.4

2.4

US unemployment4

5.5

4.2

4.0

US HPI5

7.8

4.1

4.0

US federal funds rate

0.2

0.3

0.8

 

 

 

 

As at 30.06.21

 

 

 

UK GDP1

4.9

5.6

2.3

UK unemployment2

5.8

5.7

5.1

UK HPI3

(0.5)

0.3

3.1

UK bank rate

0.1

0.2

0.4

US GDP1

5.7

3.9

1.6

US unemployment4

5.6

4.5

4.4

US HPI5

3.9

3.5

3.5

US federal funds rate

0.3

0.3

0.7

 

 

 

 

As at 31.12.20

 

 

 

UK GDP1

6.3

3.3

2.6

UK unemployment2

6.7

6.4

5.8

UK HPI3

2.4

2.3

5.0

UK bank rate

-

(0.1)

-

US GDP1

3.9

3.1

2.9

US unemployment4

6.9

5.7

5.6

US HPI5

2.8

4.7

4.7

US federal funds rate

0.3

0.3

0.3

 

1

Average Real GDP seasonally adjusted change in year.

2

Average UK unemployment rate 16-year+.

3

Change in average yearly UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.

4

Average US civilian unemployment rate 16-year+.

5

Change in average yearly US HPI = FHFA House Price Index, relative to prior year end.

 

Scenario probability weighting

 

Upside 2

Upside 1

Baseline

Downside 1

Downside 2

 

%

%

%

%

%

As at 30.09.21

 

 

 

 

 

Scenario probability weighting

17.9

25.7

28.9

16.3

11.2

As at 30.06.21

 

 

 

 

 

Scenario probability weighting

19.6

24.5

26.4

16.9

12.6

As at 31.12.20

 

 

 

 

 

Scenario probability weighting

20.2

24.2

24.7

15.5

15.4

 

Treasury and Capital Risk

 

Capital

 

The Group's Overall Capital Requirement for CET1 is 11.2% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.7% Pillar 2A requirement and a 0% Countercyclical Capital Buffer (CCyB).

 

The Group's CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. On 11 March 2020, the Financial Policy Committee (FPC) set the CCyB rate for UK exposures at 0% with immediate effect. The buffer rates set by other national authorities for non-UK exposures are not currently material. Overall, this results in a 0.0% CCyB for the Group.

 

The Group's Pillar 2A requirement as per the PRA's Individual Capital Requirement is 4.8% of which at least 56.25% needs to be met with CET1 capital, equating to approximately 2.7% of RWAs. The Pillar 2A requirement is subject to at least annual review and has been set as a nominal capital amount. This is based on a point in time assessment and the requirement (when expressed as a proportion of RWAs) will change depending on the total RWAs at each reporting period.

 

Following the withdrawal of the UK from the EU, any references to CRR as amended by CRR II mean, unless otherwise specified, CRR as amended by CRR II, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018 and subject to the temporary transitional powers (TTP) available to UK regulators to delay or phase-in on-shoring changes to UK regulatory requirements arising at the end of the transition period until 31 March 2022, as at the applicable reporting date. Throughout the TTP period, the Bank of England (BoE) and PRA will continue to review the UK regulatory framework and the Group disclosures will reflect the amended framework as applicable at the effective reporting date.

 

On 14 October 2021, the PRA published their final Policy Statement on the implementation of Basel III standards. The Policy Statement confirmed the PRA's intention to revert to the previous treatment of 100% CET1 capital deduction for qualifying software assets, meaning the c.40bps benefit in the CET1 ratio will be reversed from 1 January 2022.

 

Capital ratios1,2,3

As at 30.09.21

As at 30.06.21

As at 31.12.20

CET1

15.4%

15.1%

15.1%

Tier 1 (T1)

19.6%

18.9%

19.0%

Total regulatory capital

22.9%

22.3%

22.1%

 

 

 

 

Capital resources

£m

£m

£m

Total equity excluding non-controlling interests per the balance sheet

68,697

67,052

65,797

Less: other equity instruments (recognised as AT1 capital)

(12,252)

(11,167)

(11,172)

Adjustment to retained earnings for foreseeable ordinary share dividends

(419)

(510)

(174)

Adjustment to retained earnings for foreseeable repurchase of shares

(221)

-

-

Adjustment to retained earnings for foreseeable other equity coupons

(51)

(35)

(30)

 

 

 

 

Other regulatory adjustments and deductions

 

 

 

Additional value adjustments (PVA)

(1,427)

(1,447)

(1,146)

Goodwill and intangible assets

(6,850)

(6,814)

(6,914)

Deferred tax assets that rely on future profitability excluding temporary differences

(662)

(664)

(595)

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

46

(665)

(1,575)

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

940

934

870

Defined benefit pension fund assets

(1,925)

(1,828)

(1,326)

Direct and indirect holdings by an institution of own CET1 instruments

(50)

(50)

(50)

Adjustment under IFRS 9 transitional arrangements

1,332

1,331

2,556

Other regulatory adjustments

144

88

55

CET1 capital

47,302

46,225

46,296

 

 

 

 

AT1 capital

 

 

 

Capital instruments and related share premium accounts

12,252

11,167

11,172

Qualifying AT1 capital (including minority interests) issued by subsidiaries

636

648

646

Other regulatory adjustments and deductions

(80)

(80)

(80)

AT1 capital

12,808

11,735

11,738

 

 

 

 

T1 capital

60,110

57,960

58,034

 

 

 

 

T2 capital

 

 

 

Capital instruments and related share premium accounts

8,927

8,969

7,836

Qualifying T2 capital (including minority interests) issued by subsidiaries

1,306

1,401

1,893

Credit risk adjustments (excess of impairment over expected losses)

98

79

57

Other regulatory adjustments and deductions

(160)

(160)

(160)

Total regulatory capital

70,281

68,249

67,660

 

 

 

 

Total RWAs

307,464

306,424

306,203

 

1

CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR and CRR II non-compliant capital instruments.

2

The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 15.0%, with £46.0bn of CET1 capital and £307.2bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II.

3

The Group's CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays Bank PLC 7.625% Contingent Capital Notes, was 15.4%. For this calculation CET1 capital and RWAs are calculated applying the transitional arrangements under the CRR as amended by CRR II, including the IFRS 9 transitional arrangements. The benefit of the Financial Services Authority (FSA) October 2012 interpretation of the transitional provisions, relating to the implementation of CRD IV, expired in December 2017.

 

Movement in CET1 capital

Three months ended 30.09.21

Nine months ended 30.09.21

 

£m

£m

Opening CET1 capital

46,225

46,296

 

 

 

Profit for the period attributable to equity holders

1,643

5,844

Own credit relating to derivative liabilities

5

22

Ordinary share dividends paid and foreseen

(248)

(757)

Purchased and foreseeable share repurchase

(500)

(1,200)

Other equity coupons paid and foreseen

(213)

(607)

Increase in retained regulatory capital generated from earnings

687

3,302

 

 

 

Net impact of share schemes

175

127

Fair value through other comprehensive income reserve

82

(168)

Currency translation reserve

432

(63)

Other reserves

(6)

(7)

Increase / (decrease) in other qualifying reserves

683

(111)

 

 

 

Pension remeasurements within reserves

(177)

(74)

Defined benefit pension fund asset deduction

(97)

(599)

Net impact of pensions

(274)

(673)

 

 

 

Additional value adjustments (PVA)

20

(281)

Goodwill and intangible assets

(36)

64

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

2

(67)

Adjustment under IFRS 9 transitional arrangements

1

(1,224)

Other regulatory adjustments

(6)

(4)

Decrease in regulatory capital due to adjustments and deductions

(19)

(1,512)

 

 

 

Closing CET1 capital

47,302

47,302

 

CET1 capital increased £1.0bn to £47.3bn (December 2020: £46.3bn). £5.8bn of capital generated from profits were partially offset by distributions of £2.6bn comprising:

 

·

£0.8bn of dividends paid and foreseen for ordinary shares, which includes £0.3bn for the 2.0p per share half year dividend and a £0.4bn accrual towards a FY21 dividend

·

£1.2bn for share buybacks made up of £0.7bn for the share buyback announced with FY20 results and £0.5bn for the share buyback announced with H121 results; and

·

£0.6bn of equity coupons paid

 

Other significant movements in the period were:

 

·

A £0.7bn decrease as a result of movements relating to pensions, largely due to deficit contribution payments of £0.35bn in April 2021 and September 2021

·

A £0.3bn increase in the PVA deduction due to the removal of temporary regulatory supporting measures applied to certain additional valuation adjustments

·

A £1.2bn decrease in IFRS 9 transitional relief, after tax, primarily due to a credit impairment net release, impairment migrations from Stage 2 to Stage 3 and a decrease to the amount of relief applied to the pre-2020 impairment charge reducing to 50% in 2021 from 70% in 2020

 

RWAs by risk type and business

 

Credit risk

 

Counterparty credit risk

 

Market Risk

 

Operational risk

Total RWAs

 

STD

IRB

 

STD

IRB

Settlement Risk

CVA

 

STD

IMA

 

As at 30.09.21

£m

£m

 

£m

£m

£m

£m

 

£m

£m

 

£m

£m

Barclays UK

7,128

53,981

 

464

-

-

158

 

115

-

 

11,381

73,227

Corporate and Investment Bank

26,778

70,842

 

17,063

19,477

211

2,347

 

16,399

15,934

 

23,453

192,504

Consumer, Cards and Payments

20,159

2,740

 

255

30

-

37

 

-

44

 

6,948

30,213

Barclays International

46,937

73,582

 

17,318

19,507

211

2,384

 

16,399

15,978

 

30,401

222,717

Head Office

4,984

7,344

 

-

-

-

-

 

-

-

 

(808)

11,520

Barclays Group

59,049

134,907

 

17,782

19,507

211

2,542

 

16,514

15,978

 

40,974

307,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 30.06.21

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays UK

7,151

52,995

 

437

-

-

163

 

33

-

 

11,381

72,160

Corporate and Investment Bank

26,406

71,540

 

15,343

18,973

101

2,668

 

17,761

18,010

 

23,453

194,255

Consumer, Cards and Payments

19,218

2,509

 

158

40

-

29

 

-

55

 

6,948

28,957

Barclays International

45,624

74,049

 

15,501

19,013

101

2,697

 

17,761

18,065

 

30,401

223,212

Head Office

4,591

7,269

 

-

-

-

-

 

-

-

 

(808)

11,052

Barclays Group

57,366

134,313

 

15,938

19,013

101

2,860

 

17,794

18,065

 

40,974

306,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 31.12.20

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays UK

7,360

54,340

 

394

-

-

136

 

72

-

 

11,359

73,661

Corporate and Investment Bank

24,660

73,792

 

12,047

20,280

246

2,351

 

13,123

22,363

 

23,343

192,205

Consumer, Cards and Payments

19,754

3,041

 

177

45

-

31

 

-

71

 

6,996

30,115

Barclays International

44,414

76,833

 

12,224

20,325

246

2,382

 

13,123

22,434

 

30,339

222,320

Head Office

4,153

6,869

 

-

-

-

-

 

-

-

 

(800)

10,222

Barclays Group

55,927

138,042

 

12,618

20,325

246

2,518

 

13,195

22,434

 

40,898

306,203

 

Movement analysis of RWAs

 

Credit risk

Counterparty credit risk

Market risk

Operational risk

Total RWAs

 

£m

£m

£m

£m

£m

Opening RWAs (as at 31.12.20)

193,969

35,707

35,629

40,898

306,203

Book size

1,903

3,904

(1,848)

76

4,035

Acquisitions and disposals

(1,018)

-

-

-

(1,018)

Book quality

563

201

-

-

764

Model updates

(962)

(186)

-

-

(1,148)

Methodology and policy

(115)

416

(1,289)

-

(988)

Foreign exchange movements1

(384)

-

-

-

(384)

Total RWA movements

(13)

4,335

(3,137)

76

1,261

Closing RWAs (as at 30.09.21)

193,956

40,042

32,492

40,974

307,464

 

1

Foreign exchange movements does not include foreign exchange for counterparty credit risk or market risk.

 

Overall RWAs increased £1.3bn to £307.5bn (December 2020: £306.2bn).

 

Credit risk RWAs remained broadly stable:

 

·

A £1.9bn increase in book size mainly driven by growth in mortgages within Barclays UK, partially offset by lower consumer lending and ESHLA

·

A £1.0bn decrease in acquisitions and disposals mainly driven by disposal of wholesale loans during the year

 

Counterparty Credit risk RWAs increased £4.3bn:

 

·

A £3.9bn increase in book size primarily due to an increase in trading activities within SFTs and derivatives

 

Market risk RWAs decreased £3.1bn:

 

·

A £1.8bn decrease in book size primarily due to reduced risk taking in Equities and Counterparty Risk Trading in the period

·

A £1.3bn decrease in methodology and policy is driven by a change in the historical lookback period of the VaR model from two years to one year

 

Leverage ratio and exposures

 

The Group is subject to a leverage ratio requirement of 3.8% as at 30 September 2021. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer of 0.0%. Although the leverage ratio is expressed in terms of T1 capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met with CET1 capital. In addition, the G-SII ALRB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.3bn.

 

The Group is required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. The Group is also required to disclose a UK leverage ratio based on capital and exposure on the last day of the quarter. Both approaches exclude qualifying claims on central banks from the leverage exposures and include the PRA's adoption of CRR II settlement netting.

 

On 8 October 2021, the PRA published its Policy Statement on the UK leverage ratio framework. The Policy Statement confirms that UK banks will be subject to a single UK leverage ratio requirement meaning that the CRR leverage ratio will no longer apply for UK banks from 1 January 2022. Whilst largely upholding the existing framework, technical changes generally align to the Basel III standards with the exception of the qualifying claims on central banks exemption. From 1 January 2022 central bank claims can be excluded from the UK leverage ratio measure as long as they are matched by qualifying liabilities (rather than deposits). Minimum requirements for the Group remain the same with minimum requirements also expected to be applied at the individual level; individual requirements may be replaced with a sub-consolidated measure, subject to permission from the PRA, from 1 January 2023.

 

As at 30.09.21

As at 30.06.21

As at 31.12.20

£m

£m

£m

Average UK leverage ratio

4.9%

4.8%

5.0%

Average T1 capital3

58,580

57,280

57,069

Average UK leverage exposure

1,199,774

1,191,986

1,146,919

 

 

 

 

UK leverage ratio

5.1%

5.0%

5.3%

 

 

 

 

CET1 capital

47,302

46,225

46,296

AT1 capital

12,172

11,087

11,092

T1 capital3

59,474

57,312

57,388

 

 

 

 

UK leverage exposure

1,160,983

1,153,570

1,090,907

 

 

 

 

UK leverage exposure

 

 

 

Accounting assets

 

 

 

Derivative financial instruments

258,093

256,636

302,446

Derivative cash collateral

54,166

54,063

64,798

Securities financing transactions

190,927

182,820

164,034

Loans and advances and other assets

903,327

882,814

818,236

Total IFRS assets

1,406,513

1,376,333

1,349,514

 

 

 

 

Regulatory consolidation adjustments

(2,192)

(1,406)

(1,144)

 

 

 

 

Derivatives adjustments

 

 

 

Derivatives netting

(231,559)

(229,123)

(272,275)

Adjustments to collateral

(47,490)

(42,774)

(57,414)

Net written credit protection

15,910

16,730

14,986

Potential future exposure on derivatives

143,517

135,162

117,010

Total derivatives adjustments

(119,622)

(120,005)

(197,693)

 

 

 

 

SFTs adjustments

24,579

23,511

21,114

 

 

 

 

Regulatory deductions and other adjustments

(19,454)

(22,525)

(17,469)

 

 

 

 

Weighted off-balance sheet commitments

115,521

111,870

113,704

 

 

 

 

Qualifying central bank claims

(198,817)

(172,465)

(155,890)

 

 

 

 

Settlement netting

(45,545)

(41,743)

(21,229)

 

 

 

 

UK leverage exposure

1,160,983

1,153,570

1,090,907

 

1

Fully loaded average UK leverage ratio was 4.8%, with £57.3bn of T1 capital and £1,198.5bn of leverage exposure. Fully loaded UK leverage ratio was 5.0%, with £58.1bn of T1 capital and £1,159.7bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II.

2

Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II.

3

T1 capital is calculated in line with the PRA Handbook.

 

The average UK leverage ratio decreased to 4.9% (December 2020: 5.0%). The average leverage exposure increased by £52.9bn to £1,199.8bn (December 2020: £1,146.9bn) largely driven by an increase in SFTs, PFE on derivatives and TPAs.

 

The UK leverage ratio decreased to 5.1% (December 2020: 5.3%). The UK leverage exposure increased by £70.1bn to £1,161.0bn (December 2020: £1,090.9bn) primarily driven by a £26.9bn increase in SFTs, a £26.5bn increase in PFE on derivatives and a £17.0bn increase in TPAs due to increased trading activity in CIB.

 

The Group also discloses a CRR leverage ratio 1 within its additional regulatory disclosures prepared in accordance with EBA guidelines on disclosure under Part Eight of the CRR (see Barclays PLC Pillar 3 Report Q3 2021, expected to be published on 21 October 2021 and which will be available at home.barclays/investor-relations/reports-and-events/latest-financial-results ).

 

1

CRR leverage ratio as amended by CRR II.

 

MREL

 

The Group is currently required to meet the higher of: (i) the requirements set by the BoE based on RWAs and the higher of average and UK leverage exposures; and (ii) the requirements in CRR as amended by CRR II based on RWAs and CRR leverage exposures. The MREL requirements are subject to phased implementation and will be fully implemented by 1 January 2022. As at 30 September 2021, the Group's MREL requirement was to meet 6.9% of CRR leverage exposures.

 

On 22 July 2021 the BoE published a consultation paper on its approach to setting MREL. Under the proposed changes to their 2018 Statement of Policy, from 1 January 2022, the Group's expected MREL requirements will be to meet the higher of: (i) two times the sum of Pillar 1 and Pillar 2A; and (ii) the higher of two times the applicable leverage ratio requirement or 6.75% of leverage exposures. Given UK banks will be subject to a single UK leverage ratio requirement from 1 January 2022, the CRR leverage exposure requirements in relation to MREL may not apply from that date. Additionally, the proposals clarify that own funds instruments issued by subsidiaries will no longer be eligible to count towards the Group's MREL from 1 January 2022.

 

CET1 capital cannot be counted towards both MREL and the capital buffers, meaning that the buffers will effectively be applied above MREL requirements.

 

Own funds and eligible liabilities ratios1,2

As a percentage of RWAs

 

As a percentage of CRR leverage exposure

 

As at 30.09.21

As at 30.06.21

As at 31.12.20

 

As at 30.09.21

As at 30.06.21

As at 31.12.20

Total Barclays PLC (the Parent company) own funds and eligible liabilities

34.8%

33.7%

32.7%

 

7.8%

7.7%

8.0%

Total own funds and eligible liabilities, including eligible Barclays Bank PLC instruments

35.5%

34.4%

33.6%

 

8.0%

7.9%

8.2%

 

 

 

 

 

 

 

 

Own funds and eligible liabilities1,2

 

 

 

 

As at 30.09.21

As at 30.06.21

As at 31.12.20

 

 

 

 

 

£m

£m

£m

CET1 capital

 

 

 

 

47,302

46,225

46,296

AT1 capital instruments and related share premium accounts3

 

12,172

11,087

11,092

T2 capital instruments and related share premium accounts3

 

 

 

 

8,865

8,888

7,733

Eligible liabilities

 

 

 

 

38,787

37,095

35,086

Total Barclays PLC (the Parent company) own funds and eligible liabilities

 

107,126

103,295

100,207

Qualifying AT1 capital (including minority interests) issued by subsidiaries

 

636

648

646

Qualifying T2 capital (including minority interests) issued by subsidiaries

 

1,306

1,401

1,893

Total own funds and eligible liabilities, including eligible Barclays Bank PLC instruments

 

109,068

105,344

102,746

 

 

 

 

 

 

 

 

Total RWAs

 

 

 

 

307,464

306,424

306,203

Total CRR leverage exposure4

 

 

 

 

1,368,259

1,334,929

1,254,157

 

1

CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR and CRR II non-compliant capital instruments.

2

The BoE has set external MREL based on the higher of RWAs and CRR or UK leverage exposures which could result in the binding measure changing in future periods. The 30 September 2021 Barclays PLC (the Parent company) own funds and eligible liabilities ratio as a percentage of the UK leverage exposure was 9.2% and as a percentage of the average UK leverage exposure was 8.9%.

3

Includes other AT1 capital regulatory adjustments and deductions of £80m (December 2020: £80m), and other T2 credit risk adjustments and deductions of £62m (December 2020: £103m).

4

Fully loaded CRR leverage exposure is calculated without applying the transitional arrangements of the CRR as amended by CRR II.

 

Condensed Consolidated Financial Statements

 

Condensed consolidated income statement (unaudited)

 

Nine months ended 30.09.21

Nine months ended 30.09.20

 

£m

£m

Total income

16,780

16,825

Credit impairment releases/(charges)

622

(4,346)

Net operating income

17,402

12,479

Operating expenses excluding litigation and conduct

(10,578)

(9,954)

Litigation and conduct

(131)

(106)

Operating expenses

(10,709)

(10,060)

Other net income

247

-

Profit before tax

6,940

2,419

Tax charge

(1,076)

(441)

Profit after tax

5,864

1,978

 

 

 

Attributable to:

 

 

Equity holders of the parent

5,258

1,306

Other equity instrument holders

586

631

Total equity holders of the parent

5,844

1,937

Non-controlling interests

20

41

Profit after tax

5,864

1,978

 

 

 

Earnings per share

p

p

Basic earnings per ordinary share

30.8

7.6

 

Condensed consolidated balance sheet (unaudited)

 

As at 30.09.21

As at 31.12.20

Assets

£m

£m

Cash and balances at central banks

227,641

191,127

Cash collateral and settlement balances

119,196

101,367

Loans and advances at amortised cost

352,997

342,632

Reverse repurchase agreements and other similar secured lending

4,608

9,031

Trading portfolio assets

144,946

127,950

Financial assets at fair value through the income statement

204,424

175,151

Derivative financial instruments

258,093

302,446

Financial assets at fair value through other comprehensive income

70,748

78,688

Investments in associates and joint ventures

995

781

Goodwill and intangible assets

8,147

7,948

Current tax assets

212

477

Deferred tax assets

4,189

3,444

Other assets

10,317

8,472

Total assets

1,406,513

1,349,514

 

 

 

Liabilities

 

 

Deposits at amortised cost

510,188

481,036

Cash collateral and settlement balances

106,115

85,423

Repurchase agreements and other similar secured borrowing

22,790

14,174

Debt securities in issue

95,865

75,796

Subordinated liabilities

12,863

16,341

Trading portfolio liabilities

61,863

47,405

Financial liabilities designated at fair value

262,091

249,765

Derivative financial instruments

252,445

300,775

Current tax liabilities

615

645

Deferred tax liabilities

4

15

Other liabilities

11,913

11,257

Total liabilities

1,336,752

1,282,632

 

 

 

Equity

 

 

Called up share capital and share premium

4,542

4,637

Other reserves

2,687

4,461

Retained earnings

49,216

45,527

Shareholders' equity attributable to ordinary shareholders of the parent

56,445

54,625

Other equity instruments

12,252

11,172

Total equity excluding non-controlling interests

68,697

65,797

Non-controlling interests

1,064

1,085

Total equity

69,761

66,882

 

 

 

Total equity and liabilities

1,406,513

1,349,514

 

Condensed consolidated statement of changes in equity (unaudited)

 

Called up share capital and share premium

Other equity instruments

Other reserves

Retained earnings

Total

Non-controlling interests

Total equity

Nine months ended 30.09.21

£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2021

4,637

11,172

4,461

45,527

65,797

1,085

66,882

Profit after tax

-

586

-

5,258

5,844

20

5,864

Retirement benefit remeasurements

-

-

-

(74)

(74)

-

(74)

Other

-

-

(1,904)

-

(1,904)

-

(1,904)

Total comprehensive income for the period

-

586

(1,904)

5,184

3,866

20

3,886

Equity settled share schemes

37

-

-

402

439

-

439

Issue and exchange of other equity instruments

-

1,079

-

-

1,079

-

1,079

Other equity instruments coupon paid

-

(586)

-

-

(586)

-

(586)

Vesting of employee share schemes

-

-

(4)

(401)

(405)

-

(405)

Dividends paid

-

-

-

(512)

(512)

(17)

(529)

Repurchase of shares

(132)

-

132

(980)

(980)

-

(980)

Other movements

-

1

2

(4)

(1)

(24)

(25)

Balance as at 30 September 2021

4,542

12,252

2,687

49,216

68,697

1,064

69,761

 

 

 

 

 

 

 

 

Three months ended 30.09.21

 

 

 

 

 

 

 

Balance as at 1 July 2021

4,568

11,167

2,856

48,461

67,052

1,064

68,116

Profit after tax

-

197

-

1,446

1,643

1

1,644

Retirement benefit remeasurements

-

-

-

(177)

(177)

-

(177)

Other

-

-

(201)

-

(201)

-

(201)

Total comprehensive income for the period

-

197

(201)

1,269

1,265

1

1,266

Equity settled share schemes

12

-

-

113

125

-

125

Issue and exchange of other equity instruments

-

1,079

-

-

1,079

-

1,079

Other equity instruments coupon paid

-

(197)

-

-

(197)

-

(197)

Vesting of employee share schemes

-

-

(8)

(4)

(12)

-

(12)

Dividends paid

-

-

-

(339)

(339)

(1)

(340)

Repurchase of shares

(38)

-

38

(280)

(280)

-

(280)

Other movements

-

6

2

(4)

4

-

4

Balance as at 30 September 2021

4,542

12,252

2,687

49,216

68,697

1,064

69,761

 

 

As at 30.09.21

As at 31.12.20

Other reserves

£m

£m

Currency translation reserve

2,808

2,871

Fair value through other comprehensive income reserve

(163)

5

Cash flow hedging reserve

(48)

1,575

Own credit reserve

(1,002)

(954)

Other reserves and treasury shares

1,092

964

Total

2,687

4,461

 

Appendix: Non-IFRS Performance Measures

 

The Group's management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management.

 

However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.

 

Non-IFRS performance measures glossary

 

Measure

Definition

Loan: deposit ratio

Loans and advances at amortised cost divided by deposits at amortised cost.

Period end allocated tangible equity

Allocated tangible equity is calculated as 13.5% (2020: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Group's tangible shareholders' equity and the amounts allocated to businesses.

Average tangible shareholders' equity

Calculated as the average of the previous month's period end tangible equity and the current month's period end tangible equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period.

Average allocated tangible equity

Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period.

Return on average tangible shareholders' equity

Annualised profit after tax attributable to ordinary equity holders of the parent, as a proportion of average shareholders' equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill. The components of the calculation have been included on pages 39 to 41.

Return on average allocated tangible equity

Annualised profit after tax attributable to ordinary equity holders of the parent, as a proportion of average allocated tangible equity. The components of the calculation have been included on pages 39 to 42.

Cost: income ratio

Total operating expenses divided by total income.

Loan loss rate

Quoted in basis points and represents total annualised impairment charges divided by gross loans and advances held at amortised cost at the balance sheet date. The components of the calculation have been included on page 22. Quoted as zero when credit impairment is a net release.

Net interest margin

Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on pages 20 to 21.

Tangible net asset value per share

Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 43.

 

Returns

 

Return on average tangible equity is calculated as profit after tax attributable to ordinary equity holders of the parent as a proportion of average tangible equity, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.5% (2020: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office average allocated tangible equity represents the difference between the Group's average tangible shareholders' equity and the amounts allocated to businesses.

 

 

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

 

Average tangible equity

 

Return on average tangible equity

Nine months ended 30.09.21

£m

 

£bn

 

%

Barclays UK

1,336

 

9.9

 

17.9

  Corporate and Investment Bank

3,469

 

28.2

 

16.4

  Consumer, Cards and Payments

492

 

4.0

 

16.2

Barclays International

3,961

 

32.2

 

16.4

Head Office

(39)

 

5.0

 

n/m

Barclays Group

5,258

 

47.1

 

14.9

 

 

 

 

 

 

Nine months ended 30.09.20

 

 

 

 

 

Barclays UK

165

 

10.2

 

2.2

  Corporate and Investment Bank

2,141

 

27.2

 

10.5

  Consumer, Cards and Payments

(362)

 

4.6

 

(10.6)

Barclays International

1,779

 

31.8

 

7.5

Head Office

(638)

 

6.5

 

n/m

Barclays Group

1,306

 

48.5

 

3.6

 

 

 

 

 

 

 

 

 

Nine months ended 30.09.21

 

Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group

Return on average tangible shareholders' equity

£m

£m

£m

£m

£m

£m

Attributable profit/(loss)

1,336

3,469

492

3,961

(39)

5,258

 

 

 

 

 

 

 

 

£bn

£bn

£bn

£bn

£bn

£bn

Average shareholders' equity

13.5

28.2

4.7

32.9

8.7

55.1

Average goodwill and intangibles

(3.6)

-

(0.7)

(0.7)

(3.7)

(8.0)

Average tangible shareholders' equity

9.9

28.2

4.0

32.2

5.0

47.1

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

17.9%

16.4%

16.2%

16.4%

n/m

14.9%

 

 

Nine months ended 30.09.20

 

Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group

Return on average tangible shareholders' equity

£m

£m

£m

£m

£m

£m

Attributable profit/(loss)

165

2,141

(362)

1,779

(638)

1,306

 

 

 

 

 

 

 

 

£bn

£bn

£bn

£bn

£bn

£bn

Average shareholders' equity

13.7

27.2

5.2

32.4

10.5

56.6

Average goodwill and intangibles

(3.5)

-

(0.6)

(0.6)

(4.0)

(8.1)

Average tangible shareholders' equity

10.2

27.2

4.6

31.8

6.5

48.5

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

2.2%

10.5%

(10.6)%

7.5%

n/m

3.6%

 

Barclays Group

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Attributable profit

1,446

2,108

1,704

 

220

611

90

605

 

681

 

 

 

 

 

 

 

 

 

 

 

 

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Average shareholders' equity

56.6

54.4

54.4

 

55.7

56.4

58.4

55.2

 

54.5

Average goodwill and intangibles

(8.2)

(7.9)

(7.9)

 

(8.1)

(8.1)

(8.2)

(8.2)

 

(8.1)

Average tangible shareholders' equity

48.4

46.5

46.5

 

47.6

48.3

50.2

47.0

 

46.4

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

11.9%

18.1%

14.7%

 

1.8%

5.1%

0.7%

5.1%

 

5.9%

 

Barclays UK

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Return on average allocated tangible equity

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Attributable profit/(loss)

317

721

298

 

160

113

(123)

175

 

438

 

 

 

 

 

 

 

 

 

 

 

 

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Average allocated equity

13.6

13.5

13.5

 

13.4

13.7

13.9

13.7

 

13.8

Average goodwill and intangibles

(3.6)

(3.6)

(3.6)

 

(3.6)

(3.6)

(3.6)

(3.6)

 

(3.5)

Average allocated tangible equity

10.0

9.9

9.9

 

9.8

10.1

10.3

10.1

 

10.3

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

12.7%

29.1%

12.0%

 

6.5%

4.5%

(4.8)%

6.9%

 

17.0%

 

Barclays International

 

 

 

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Return on average allocated tangible equity

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Attributable profit

1,263

1,267

1,431

 

441

782

468

529

 

397

 

 

 

 

 

 

 

 

 

 

 

 

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Average allocated equity

32.7

33.0

32.8

 

31.1

31.2

34.2

31.9

 

31.9

Average goodwill and intangibles

(0.9)

(0.6)

(0.5)

 

(0.6)

(0.6)

(0.7)

(0.7)

 

(1.0)

Average allocated tangible equity

31.8

32.4

32.3

 

30.5

30.6

33.5

31.2

 

30.9

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

15.9%

15.6%

17.7%

 

5.8%

10.2%

5.6%

6.8%

 

5.1%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Investment Bank

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Return on average allocated tangible equity

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Attributable profit

1,157

1,049

1,263

 

413

627

694

820

 

193

 

 

 

 

 

 

 

 

 

 

 

 

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Average allocated equity

27.8

28.4

28.2

 

26.3

26.4

29.1

26.2

 

25.9

Average goodwill and intangibles

-

-

-

 

-

-

(0.1)

-

 

(0.1)

Average allocated tangible equity

27.8

28.4

28.2

 

26.3

26.4

29.0

26.2

 

25.8

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

16.6%

14.8%

17.9%

 

6.3%

9.5%

9.6%

12.5%

 

3.0%

 

Consumer, Cards and Payments

 

 

 

 

 

 

 

 

Q321

Q221

Q121

 

Q420

Q320

Q220

Q120

 

Q419

Return on average allocated tangible equity

£m

£m

£m

 

£m

£m

£m

£m

 

£m

Attributable profit/(loss)

106

218

168

 

28

155

(226)

(291)

 

204

 

 

 

 

 

 

 

 

 

 

 

 

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

Average allocated equity

4.9

4.6

4.6

 

4.8

4.8

5.1

5.7

 

6.0

Average goodwill and intangibles

(0.9)

(0.6)

(0.5)

 

(0.6)

(0.6)

(0.6)

(0.7)

 

(0.9)

Average allocated tangible equity

4.0

4.0

4.1

 

4.2

4.2

4.5

5.0

 

5.1

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

10.5%

21.8%

16.5%

 

2.7%

14.7%

(20.2)%

(23.5)%

 

15.9%

 

Tangible net asset value per share

As at 30.09.21

As at 31.12.20

As at 30.09.20

 

£m

£m

£m

Total equity excluding non-controlling interests

68,697

65,797

67,816

Other equity instruments

(12,252)

(11,172)

(12,012)

Goodwill and intangibles

(8,147)

(7,948)

(8,163)

Tangible shareholders' equity attributable to ordinary shareholders of the parent

48,298

46,677

47,641

 

 

 

 

 

m

m

m

Shares in issue

16,851

17,359

17,353

 

 

 

 

 

p

p

p

Tangible net asset value per share

287

269

275

 

 

 

 

 

Shareholder Information

 

Results timetable1

 

 

Date

 

 

 

2021 Full Year Results and Annual Report

 

 

23 February 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          % Change3

Exchange rates2

30.09.21

30.06.21

30.09.20

 

30.06.21

30.09.20

Period end - USD/GBP

1.35

1.38

1.29

 

(2)%

5%

YTD average - USD/GBP

1.39

1.39

1.27

 

-

9%

3 month average - USD/GBP

1.38

1.40

1.29

 

(1)%

7%

Period end - EUR/GBP

1.16

1.17

1.10

 

(1)%

5%

YTD average - EUR/GBP

1.16

1.15

1.13

 

1%

3%

3 month average - EUR/GBP

1.17

1.16

1.11

 

1%

5%

 

 

 

 

 

 

 

Share price data

 

 

 

 

 

 

Barclays PLC (p)

189.60

171.12

97.61

 

 

 

Barclays PLC number of shares (m)

16,851

16,998

17,353

 

 

 

 

 

 

 

 

 

 

For further information please contact

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor relations

Media relations

Chris Manners +44 (0) 20 7773 2136

Tom Hoskin +44 (0) 20 7116 4755

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Registered office

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Registrar

 

 

 

 

 

 

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

 

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

 

 

 

 

 

 

 

 

American Depositary Receipts (ADRs)

 

 

 

 

 

 

Shareowner Services

StockTransfer@equiniti.com

Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 (outside the US and Canada)

Shareowner Services, PO Box 64504, St Paul, MN 55164-0504, USA.

 

 

 

 

 

 

 

Delivery of ADR certificates and overnight mail

 

 

 

 

 

 

Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120, USA.

 

1

Note that these dates are provisional and subject to change.

2

The average rates shown above are derived from daily spot rates during the year.

3

The change is the impact to GBP reported information.

4

Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public holidays in England and Wales.

 

Notes

 

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2021 to the corresponding nine months of 2020 and balance sheet analysis as at 30 September 2021 with comparatives relating to 31 December 2020 and 30 September 2020. 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; and 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 given point in time.

 

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/investor-relations/reports-and-events/latest-financial-results .

 

The information in this announcement, which was approved by the Board of Directors on 20 October 2021, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020, which contained an unmodified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

 

These results will be furnished as a Form 6-K to the US Securities and Exchange Commission (SEC) as soon as practicable following their publication. Once furnished with the SEC, a copy of the Form 6-K will be available from the SEC's website at www.sec.gov .

 

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

 

Non-IFRS performance measures

 

Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 38 to 43 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

 

Forward-looking statements

 

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including, without limitation, during management presentations to financial analysts) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, capital distributions (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS impacts and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by changes in legislation, the development of standards and interpretations under IFRS, including evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entity within the Group or any securities issued by such entities; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK's exit from the European Union ("EU"), the effects of the EU-UK Trade and Cooperation Agreement and the disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group's reputation, business or operations; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual financial position, future results, capital distributions, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures may differ materially from the statements or guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in Barclays PLC's filings with the SEC (including, without limitation, Barclays PLC's Annual Report on Form 20-F for the fiscal year ended 31 December 2020 and Interim Results Announcement for the six months ended 30 June 2021 filed on Form 6-K), which are available on the SEC's website at www.sec.gov .

 

Subject to Barclays' obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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