Interim Results - Part 2

Barclays PLC
3 August 2000


PART 2

                                BARCLAYS PLC

Earnings per ordinary share

Earnings per ordinary share is based upon the results after deducting tax,
profit attributable to minority interests and dividends on staff shares.
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                                             
Earnings in period                £1,320m   £1,063m     £696m
                                                             
Earnings in period before                                    
restructuring and exceptional     £1,215m   £1,073m   £1,064m
items
                                                             
Weighted average of ordinary       1,484m    1,490m    1,505m
shares in issue
                                                             
Earnings per ordinary share         88.9p     71.3p     46.2p
                                                             
Earnings per ordinary share                                  
before restructuring and            81.9p     72.1p     70.7p
exceptional items

Diluted earnings per share is not materially different from the basic
earnings per share figure reported above in either 2000 or 1999.

Dividends on ordinary shares

The Board has decided to pay, on 3rd October 2000, an interim dividend for
the year ending 31st December 2000 of 20.0p per ordinary share, for shares
registered in the books of the Company at the close of business on
18th August 2000.

For qualifying US and Canadian resident ADR holders, the interim dividend of
20.0p per ordinary share becomes 80.0p per ADS (representing four shares).
The ADR depositary will mail the dividend on 3rd October 2000 to ADR holders
on the record on 18th August 2000.

For qualifying Japanese shareholders, the interim dividend of 20.0p per
ordinary share will be distributed in mid October to shareholders on the
record on 18th August 2000.

Shareholders may have their dividends reinvested in Barclays PLC shares by
participating in the Barclays Dividend Reinvestment Plan.  The plan is
available to all shareholders provided that they do not live in or are
subject to the jurisdiction of any country where their participation in the
plan would require Barclays or the plan administrator to take action to
comply with local government or regulatory procedures or any similar
formalities.  Any shareholder wishing to obtain details and a form to join
the plan should contact the plan administrator by writing to The Plan
Administrator to Barclays, PO Box 82, The Pavilions, Bridgwater Road,
Bristol, BS99 7NH or by phoning 0870 702 0196.  The completed form should be
returned to the plan administrator on or before 12th September 2000 for it
to be in time for the payment of the interim dividend on 3rd October 2000.
Shareholders who are already in the plan should take no action unless they
wish to change their instructions in which case they should write to the
plan administrator.


Balance sheet
                                      Half-year ended
Capital resources                 30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Shareholders' funds                 9,237     8,483     8,219
Minority interests                    765       352       349
                                   10,002     8,835     8,568
Loan capital                        4,748     4,597     4,117
                                   14,750    13,432    12,685

The Group continues to actively manage both its debt and equity capital.
Total capital resources increased over the half year by £1,081m before
favourable exchange rate translation differences of £237m.

Shareholders' funds increased by £727m before favourable exchange rate
differences of £27m.  Profit retentions of £1,025m were reduced by share
buybacks, including costs, of £311m.

Loan capital and other subordinated liabilities rose by £151m consisting of
exchange movements of £162m offset by repayments of £11m.

The increase in minority interests reflects the issue by Barclays Bank PLC
of Euro 850m (£510m) Reserve Capital Instruments on 3rd May 2000.
17,920,000 outstanding Series C1 and C2 Non-cumulative Dollar Denominated
Preference Shares of $0.01 each were redeemed on 30th June 2000.  The
aggregate redemption cost was $224m (£149m).


Capital ratios

Weighted risk assets and capital resources, as defined for supervisory
purposes by the Financial Services Authority, comprise:
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
Weighted risk assets:                  £m         £m        £m
Banking book                                                  
 on-balance sheet                  89,917     84,535    83,101
 off-balance sheet                 18,132     15,567    16,172
 associated undertakings              929      1,341     1,562
Total banking book                108,978    101,443   100,835
                                                              
Trading book                                                  
 market risks                       5,665      6,015     5,828
 counterparty and settlement        8,840      8,420     7,331
risks
Total trading book                 14,505     14,435    13,159
Total weighted risk assets        123,483    115,878   113,994
                                                              
Capital resources:                                            
 tier 1 capital                     9,841      8,696     8,398
 tier 2 capital                     5,070      4,948     4,539
 tier 3 capital                       343        343       328
Total gross capital resources      15,254     13,987    13,265
Less: supervisory deductions      (1,004)      (853)     (892)
Total net capital resources        14,250     13,134    12,373
                                                              
                                        %          %         %
Tier 1 ratio                          8.0        7.5       7.4
Risk asset ratio                     11.5       11.3      10.9


Total Assets

The Group's balance sheet grew by £32 billion, or 12%, in the first half of
2000 compared to 10% growth in the same period of 1999, and 6% growth in the
second half of 1999.  Weighted risk assets increased by 7% in the first half
of 2000.

Barclays Capital assets increased by 18%, or £26bn, to £171bn in the first
half of 2000.  There was a £10bn increase in the level of reverse repos,
mainly in the collateralised equity financing business which continues to
build customer inventory financing positions.  The other increases were in
debt securities, equity securities and settlement balances.  The weakening
of sterling, primarily against the US dollar, contributed £3bn of the
increase.  Total risk weighted assets increased by only 4% reflecting the
low weightings attached to the reverse repos.

Within Corporate Banking, assets grew by 8% to £51bn in the first half of
2000.  Weighted risk assets increased by 9% during the same period.  UK
middle market lending grew strongly reflecting a concentration of lending
growth towards larger and higher quality customers.  Lending volumes in the
international business continued to grow strongly in Europe and the Middle
East whilst volumes in Latin America reduced.

Retail Financial Services assets grew 3% in the first half of 2000, compared
with 2% growth in the same period last year (adjusted for the impact of the
sale of Merck Finck).  Weighted risk assets were 5% higher at £27.5bn.
Consumer lending balances in the United Kingdom increased by 4% to £6.5bn
during the first half of 2000 and mortgage outstandings grew by 2% to
£17.1bn.  Wealth Management assets have grown steadily across all business
units, with particularly high growth in the Caribbean and UK Premier
Banking.

Barclaycard assets grew by £353m, or 5%, to £7.7bn in the first half of 2000
compared with 3% growth in the first half of 1999.  Weighted risk assets
increased by 7%.

The reduction in retail life-fund assets is as a result of adverse stock
market movements in the first half of the year.
                                      

Repo transactions

Under a repo (sale and repurchase agreement), an asset is sold to a
counterparty with a commitment to repurchase it at a future date at an
agreed price.  The Group engages in repos and also in reverse repos, which
are the same transaction from the opposite viewpoint, the Group buying an
asset with a fixed commitment to resell.  The Group aims to earn spread and
trading income from these activities as well as funding its own holdings of
securities.

The following amounts are included in the balance sheet for repos and
reverse repos:

                                      Half-year ended
                                    30.6.00  31.12.99   30.6.99
Reverse repos (assets)                   £m        £m        £m
Loans and advances to banks          27,774    26,040    18,778
Loans and advances to customers      28,192    19,910    14,744
                                     55,966    45,950    33,522
Repos (liabilities)                                            
Deposits by banks                    18,378    16,631    12,713
Customer accounts                    21,894    17,422    14,071
                                     40,272    34,053    26,784


Analysis of operating profit by business

Retail Financial Services

Retail Financial Services provides a broad range of financial services to
its customers worldwide.  Its purpose is to serve customers by understanding
their needs as individuals and by offering services and products that
anticipate and satisfy their requirements.

Retail Financial Services is organised into two major business groupings:
Retail Customers and Wealth Management.

                                  30.6.00   31.12.99   30.6.99
                                       £m         £m        £m
Net interest income                 1,306      1,249     1,222
Net fees and commissions              694        660       640
Income from long-term assurance        79         26        18
business*
Other operating income                 79         79        64
Total income *                      2,158      2,014     1,944
Total costs                       (1,135)    (1,161)   (1,165)
Provisions for bad and doubtful     (201)      (162)     (158)
debts
Operating profit*                     822        691       621

* Half year ended 30th June 1999 includes a £40m provision (half year ended
31st December 1999: £35m) for possible redress for personal pension
customers.

Retail Financial Services achieved a strong performance with a 32%, or
£201m, increase in operating profit to £822m.  Total income increased by 11%
to £2,158m.  Adjusted for the impact of the personal pension redress
provision of £40m during the half year ended 30th June 1999, operating
profit and total income rose by 24% and 9%, respectively.

Net interest income increased by 7%, to £1,306m (1999: £1,222m), primarily
as a result of growth in average UK consumer lending, average mortgage
lending (particularly in UK Premier Banking) and an increase in average UK
savings balances.  UK lending and deposit margins fell slightly.  The UK
lending margin reduced primarily as a result of pricing decisions in respect
of consumer lending products.  The deposit margin fell primarily as a result
of a change in mix.

Net fees and commissions grew by 8%, or £54m, to £694m.  This increase was
primarily within the Retail Customers business, which improved 9% to £391m.
Increased activity on current accounts and a significant increase in the
number of Additions accounts more than offset the absence of £11m of ATM
commissions received in the first half of 1999.  This followed the abolition
in the final quarter of last year of charges for customers use of non-
affiliated ATM machines.  In Wealth Management, there were good increases in
the contributions from Stockbrokers, Private Banking and Offshore Services.

Total customer funds, which include assets under management and on-balance
sheet deposits, grew by 3% to £122bn (31st December 1999: £118bn).  Assets
under management increased by 2% to £56bn (31st  December 1999: £55bn)
primarily attributable to net new business.  Loans to customers rose by 6%
to £35bn (31st December 1999: £33bn).

Total costs fell by 3% to £1,135m (1999: £1,165m), despite increases in
strategic investment expenditure of £14m and higher revenue related costs.
Total staff costs, excluding restructuring costs, were down 6% compared with
the first half of 1999.

Provisions rose by 27% to £201m (1999: £158m).  Adjusted for a one-off £11m
release of general provision, the underlying increase in provisions was 19%
which was mainly attributable to the volume growth in UK consumer lending.

Retail Customers

This business provides a wide range of services and products to personal and
small business customers throughout the United Kingdom and to personal and
corporate customers in parts of Africa.
                                         Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net interest income                 1,003       971       945
Net fees and commissions              391       377       358
Income from long-term assurance        75        21        11
business *
Other operating income                 67        66        48
Total income *                      1,536     1,435     1,362
Total costs                         (782)     (794)     (794)
Provisions for bad and doubtful     (198)     (157)     (168)
debts
Operating profit *                    556       484       400

* Half year ended 30th June 1999 includes a £40m provision (half year ended
31st December 1999: £35m provision) for possible redress for personal
pension customers.

Operating profit in Retail Customers increased by 39%, or £156m, to £556m.
Adjusted for the impact of the provision for the personal pension redress of
£40m during the half year ended 30th June 1999, operating profit increased
by 26%.  Total income rose by 13% to £1,536m compared with the same period
in 1999.  Costs fell by 2% to £782m (1999: £794m), largely as a result of
centralisation of processing activity.  This was achieved despite the
additional costs associated with increased investment in on-line banking.

Provisions for bad and doubtful debts increased by 18% to £198m (1999:
£168m), mainly as a result of volume growth in UK consumer lending.

Total customer funds, which include assets under management and on-balance
sheet deposits, increased to £49bn (31st December 1999: £48bn). Loans to
customers grew slightly to £24bn (31st December 1999: £23bn).

UK Personal Customers

Average consumer lending balances grew by 8% to £6.4bn (1999: 13% to
£5.9bn).  The reduced growth rate compared with 1999 is a result of a
tightening in the risk assessment criteria reflecting the steady increase in
borrowing as a percentage of household income.

Average UK mortgage lending outstandings increased by 8% to £17.0bn (1999:
£15.7bn).  Gross new lending was £2.2bn (1999: £2.1bn) and market share was
broadly maintained at 3.7% (1999: 3.8%).  Margins in the first half of the
year remained stable.

Average UK savings balances grew by 6% to £20.5bn (1999: £19.4bn), in line
with market growth.  Margins reduced slightly as a result of continued
competition and changes in portfolio mix.

Fees and commissions increased by 11% mainly due to additional current
account and overdraft lending activity and as a result of higher fee income
from the Additions accounts.  The number of Additions account holders
increased by 10% to 958,000 (31st December 1999: 871,000).  Income from
payment protection underwriting benefited in line with improved volumes of
consumer lending, overdraft, mortgages and credit card lending.

Progress continued in long term savings and investment activities with
annual premium income arising on sales of unit trusts, managed portfolios
and pension products remaining strong at £97m (1999: £91m).

Demand for on-line banking continued to grow rapidly with the number of
registered personal and small business internet banking users now 1,110,000
(31st December 1999: 500,000).  Around 1 in 8 personal current account
customers are now registered for on-line banking.

The number of customers registered for telephone banking continued to grow,
increasing by 11% to 1,109,000 (31st December 1999: 1,000,000).

UK Small Business

Total income grew 11% during the first half of 2000 as a result of 12%
growth in average deposits, and growth in average lending balances of 18%.
Fees and commissions remained at similar levels despite increased activity,
reflecting continued pressure on money transmission tariffs.

Total costs fell by 1% compared with the first half of 1999, primarily as a
result of efficiency benefits from the continued centralisation of
activities.

Internet initiatives within Small Business included the launch of a joint e-
commerce development with Freeserve to provide a small business portal in
the UK for services, information and advice needed to start up and run a
successful small business.  The number of Small Business customers
registered for on-line banking continued to grow, up 73% to 116,000 (31st
December 1999: 67,000).

Africa

Operating profit rose by 41%, or £17m, to £58m reflecting strong
performances in Ghana and Mauritius and despite difficult economic
conditions in Zimbabwe and Kenya.  Income across Africa rose by 28% to
£142m.  Overall costs increased £6m to £73m.


Wealth Management

Wealth Management serves affluent and high net worth clients globally with
relationship based services and bespoke products, particularly in the areas
of banking, asset management and long-term financial planning.  Wealth
Management includes Private Banking, Offshore Services, UK Premier Banking,
Stockbrokers, continental European retail businesses and the Caribbean.

                                        Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net interest income                   303       278       277
Net fees and commissions              303       283       282
Income from long-term assurance         4         5         7
business
Other operating income                 12        13        16
Total income                          622       579       582
Total costs                         (353)     (367)     (371)
Provisions for bad and doubtful       (3)       (5)        10
debts
Operating profit                      266       207       221

Operating profit in Wealth Management rose by 20%, or £45m, (27% adjusting
for the sale of Merck Finck in the first half of 1999) to £266m driven by
strong growth across the businesses.  Total income grew by 7%, or £40m, to
£622m (10% adjusting for the sale of Merck Finck) reflecting particularly
good income growth in Stockbrokers, up 15% to £76m, Private Banking by 9% to
£83m and Offshore Services up 13% to £127m.

Total costs fell by 5% (2% adjusting for the sale of Merck Finck) to £353m.

Total customer funds, which include assets under management and on balance
sheet deposits, grew by 4% to £73bn (31st December 1999: £70bn).  Loans to
customers grew by 10% to £11bn (31st December 1999: £10bn).

UK Premier Banking operating profit grew by 20% to £42m benefiting from
increased customer volumes, with customer loans and mortgages increasing 60%
and 43% respectively, compared with the first half of 1999.

Offshore Services operating profit rose 14% to £84m, with overall average
funds under management growing by 3% to £13bn (31st December 1999: £12.6bn).
Asset and liability margins were maintained.

Operating profit in the continental European retail businesses benefited
from the continued application of sophisticated customer knowledge and
behaviour tools.  Operating profit, excluding the contribution from Merck
Finck, was up 38% to £44m (1999: £32m).  Fees and commissions also grew as a
result of a good performance in French mutual fund and unit linked insurance
sales, together with higher stock exchange commissions and increased growth
in mortgage products.

On-line banking facilities are also available to European customers, with
over 17,000 customers in France, Spain and Portugal now registered to bank
on-line.  On-line share dealing facilities are available to customers in
France and Spain.  On-line banking in Offshore Services (with full multi-
currency functionality) was launched in June.

Operating profit for the Caribbean business increased by 50% to £36m, aided
by the strong offshore market and increased lending volumes in the domestic
business, up 24% compared with the first half of 1999.

Private Banking operating profit rose 38% to £29m, reflecting increased
clients' funds which rose 4% to £25.6bn (31st December 1999: £24.7bn).

Stockbrokers' operating profit grew by 52% to £32m as a result of good
growth in investment management income and increased dealing activity.
Average daily deal volumes increased to 8,900 in the first half of this year
(1999: 6,400).  Around 30% of retail private customer deals are now executed
across the internet.


Barclaycard

Barclaycard is the largest credit card business in Europe with a presence in
the United Kingdom, Germany, France and Spain.  It offers a full range of
credit card services to individual customers, together with card payment
facilities to retailers and other businesses.  Barclaycard was the first UK
credit card to offer internet account services and continues to expand its e-
commerce operations.

                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net interest income                   269       247       241
Net fees and commissions              254       249       231
Total income                          523       496       472
Total costs                         (218)     (202)     (195)
Provisions for bad and doubtful     (110)      (88)      (82)
debts
Operating profit                      195       206       195

Operating profit at £195m was at the same level as the first half of 1999.

Net interest income rose 12% to £269m benefiting from a 17% increase in
average UK extended credit balances to £5.2bn, with Barclaycard's share of
the UK credit card market being maintained.  The proportion of interest
earning balances to non-interest earning balances was maintained at more
than 70%.  The interest margin has reduced slightly as a result of a rise in
funding costs and the introduction of a competitive range of customer rates.
During the first half of this year customer recruitment rose 39% to 388,000
(1999: 280,000) and self closure attrition rates reduced by 17%.

Fees and commissions increased 10% to £254m (1999: £231m) as a result of a
12% growth in transaction volumes compared to the first half of 1999.  This
was slightly offset by continued pressure on merchant acquisition fees.

Barclaycard's international business in Germany, France and Spain continued
to grow with average outstanding balances increasing by 59% over the first
half of last year.  The number of cards in issue overseas increased 10% to
1.1 million (31st December 1999: 1.0 million).

Total costs in Barclaycard increased by 12%, or £23m, to £218m mainly as a
result of increased strategic investment costs of £33m (1999: £16m)
including the development of information management capabilities,
international expansion and e-commerce businesses.  Staff costs in the UK
were held at the same level as last year.

Barclaycard continues to build its technology capability.  It was the first
UK credit card company to post products on the web.  Over 235,000 customers
are registered to use the Barclaycard website for on-line account servicing,
growing at a rate of 5,000 per week.  It also has 80,000 active retailers,
with 4,000 already providing shopping facilities on-line.

Provisions for bad and doubtful debts increased by 34%, to £110m (1999:
£82m).  This was primarily attributable to the increased volumes of new
business within UK extended credit balances and relatively stronger growth
in international interest earning balances.


Corporate Banking

Corporate Banking provides relationship banking to the Group's middle
market, large corporate and institutional customers.  Customers are served
by a network of 1,200 specialist relationship managers across the United
Kingdom who provide access to an extensive range of products.  Corporate
Banking also offers its customers access to business centres in the rest of
Europe, the United States and the Middle East.  In addition, an office in
Miami provides finance and correspondent banking services to the Group's
customers in Latin America.

Corporate Banking's close working relationships with Barclays Capital
ensures that large corporate and institutional customers have access to the
capital markets and to specialist investment banking products which
complement Corporate Banking's product and service range.

Corporate Banking has a strong competitive position in the United Kingdom,
where around a quarter of middle market companies bank with Barclays.
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net interest income                   658       642       610
Net fees and commissions              366       362       328
Other operating income                (5)      (17)         5
Total income                        1,019       987       943
Total costs                         (434)     (443)     (420)
Provisions for bad and doubtful      (44)      (55)      (65)
debts
Operating profit                      541       489       458

Corporate Banking operating profit increased by 18%, or £83m, to £541m.

Net interest income rose by 8% to £658m.  Average customer lending balances
increased by 11% to £46bn.  This reflected strong growth in average UK
lending and continued growth in average international business volumes which
increased by 17% to £8bn.

High levels of origination have continued within large corporate banking in
the United Kingdom largely as a result of acquisition linked activity.  UK
middle market lending volumes grew strongly, resulting from the
implementation of the new sales strategy, providing relationship managers
with a more focused sales management approach, together with mobile working
technology.  Lending growth has been concentrated towards larger and higher
quality customers and as a result the overall quality of the portfolio has
improved.  The Sales Financing product range, which includes factoring and
confidential invoice discounting, has seen particularly rapid growth in
total volumes, up 63% to £3.1bn, as a result of an ongoing investment
programme to develop this business.

Growth in customer lending within the rest of Europe has been predominantly
in the established operations in Germany and France, although the new
representative office in the Netherlands has also made encouraging progress.
The Middle East also saw a good flow of new business.  Exposure to Latin
America remains carefully managed and fell 16% compared with the average for
the first half of 1999.

Overall lending margins have eased slightly.  UK lending margins continued
to narrow, reflecting the concentration of growth in the larger and higher
quality customer segment.  Overseas margins fell as stability returned to
Latin American markets.

Average deposit volumes increased by 5% to £36bn albeit at a slower rate
than 1999, reflecting a contraction in corporate liquidity.  Growth has been
stronger in higher margin branch based deposits compared to lower margin
Treasury deposits.  As a result the overall deposit margin has been
maintained, despite competitive pressure in some products and lower margins
on non-interest bearing current accounts.

Net fees and commissions increased by 12% to £366m (1999: £328m).  Lending
related fees rose strongly reflecting a higher volume of arrangement fees in
respect of on and off-balance sheet financing products.  Money transmission
income remained at a similar level as a result of continued pricing
pressure.  Strong growth in electronic products has resulted in over 30% of
UK corporate customers being registered for these services.  Foreign
exchange related income increased as a result of volume growth.

Other operating income fell as a result of increased credit provisions in
the Group's Brazilian associate, Banco Barclays e Galicia SA.  There was no
contribution in the first half of 2000 (1999: £3m) from Cairo Barclays SAE,
which became a subsidiary from June 1999.

Costs increased by £14m, or 3%, to £434m as a result of higher investment in
the business and the impact of the consolidation of Cairo Barclays, which
added £5m to costs in the first half of 2000.  Strategic investment costs
increased to £41m (1999: £16m).  This increase was in respect of the new
business to business e-commerce initiative Barclays B2B.com, the UK's first
secure 'purchase-to-payment' e-procurement system and continued investment
to enhance Corporate Banking's middle market franchise.

Costs (excluding strategic investment costs and the impact of the
consolidation of Cairo Barclays) fell by 4% with staff costs down compared
to the first half of 1999 reflecting continuing efficiency programmes.

The net provisions charge remained at a relatively low level of £44m (1999:
£65m).  Releases and recoveries were £37m (1999: £39m).


Barclays Capital

Barclays Capital conducts the Group's international investment banking
business.  The business focuses on areas where it has a competitive
advantage and which are integral to the Group.  It serves as the Group's
principal point of access to the wholesale markets and also deals in these
markets with governments, supranational organisations, corporates, banks,
insurance companies and other institutional investors.

The activities of Barclays Capital are grouped into two principal areas:
Rates which includes sales, trading and research relating to government
bonds, money markets, foreign exchange, commodities, and their related
derivative instruments and Credit which includes origination, sales, trading
and research relating to loans, securitised assets, corporate bonds and
their related derivative instruments and private equity investment and
equity derivatives.

Barclays Capital is an important component of the overall Group, providing a
variety of complementary services and products to all of the Group's
businesses and customers.  It also provides a counterbalance to
disintermediation of the traditional corporate lending businesses.

Barclays Capital, with its leading European loan business and strong client
franchise, is well positioned to benefit from the continued strong growth in
the European capital markets.  In addition, the globalisation of investment
flows creates significant opportunities for investment banks like Barclays
Capital which have global capability for providing financing solutions to
companies.
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net interest income                   222       199       201
Dealing profits                       415       233       316
Net fees and commissions              105        80        83
Other operating income                 23        19        21
Total income                          765       531       621
Total costs                         (509)     (382)     (423)
Provisions for bad and doubtful      (38)      (13)      (23)
debts
Operating profit                      218       136       175

Operating profit increased by 25% to £218m (1999: £175m) reflecting strong
performances in both the Rates businesses and the Credit businesses despite
a continued challenging trading environment.

Dealing profits rose by 31% to £415m (1999: £316m).  The Rates businesses
continued to perform strongly with good contributions from interest rate
derivatives and government bonds.  In the Credit businesses, there was
strong growth in equity derivatives from increased customer related
activities.  Dealing profits in the second half of 1999 were adversely
affected by widening credit spreads which continued to affect secondary
corporate bonds in the first half of 2000.  The average daily value at risk
level during the period was £17.9m (1999: £13.0m).

Net interest income increased 10% to £222m (1999: £201m) as a result of good
performances from structured capital markets and the money markets business.

Net fees and commissions rose by £22m to £105m (1999: £83m) reflecting the
increased number and size of transactions in the Credit businesses, in
particular from large acquisition related loans.  These included high
profile transactions such as Vodafone AirTouch PLC's purchase of Mannesmann
AG, France Telecom's purchase of Orange PLC, Pacific Century CyberWork
Limited's bid for Cable and Wireless HKT in Asia and Nisource Inc's
acquisition of Columbia Energy Group in the United States.

Other operating income increased by £2m to £23m and includes a profit
arising from further distributions from Long Term Capital Portfolio, which
have now resulted in the full repayment of the original amount invested.
Realisations in the Private Equity business continued to make a good
contribution.

Provisions for bad and doubtful debts increased to £38m and were mainly in
respect of overseas exposures.

Costs rose by 20% to £509m (1999: £423m), reflecting a higher level of
performance-related pay in line with improved profitability.  Other costs
remained at a similar level to the first half of 1999.  This was achieved
while continuing to hire a broad range of staff as part of the strategic
expansion of Barclays Capital's European franchise and despite increased
investment in e-commerce.

Through e-commerce, Barclays Capital supplies electronic research,
analytical, trading and reporting systems to clients in a range of products
including exchange traded futures, commercial paper and foreign exchange.
This e-enablement capability has made a range of initiatives possible, such
as working with the Charles Schwab Corporation to develop automated foreign
exchange facilities which would enable retail investors to buy and sell
multi-currency securities, lead managing the first e-bond issue for the
European Investment Bank and being a founding provider of fixed income
credit products through SWX, an electronic exchange for Swiss retail
clients.


Barclays Global Investors

Barclays Global Investors (BGI) is the largest institutional asset manager
in the world counting some of the world's most sophisticated investing
institutions amongst its 1,600 clients.  BGI offers quantitative active and
indexed asset management services for clients in thirty four countries from
offices located in seven countries around the world.  BGI is also a leading
global lender of securities to qualified financial institutions who borrow
securities on a fully collateralised basis as a financing tool and to
support customer activities.
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Net fees and commissions              196       166       152
Net interest income                     4         3         3
Total income                          200       169       155
Total costs                         (167)     (154)     (127)
Operating profit                       33        15        28

Operating profit has increased by 18% to £33m (1999: £28m).

Fees and commissions increased 29% to £196m (1999: £152m) as a result of
management fees from new business growth in assets under management and
increased sales of higher margin products in advanced active and exchange
traded funds.  New business volumes were particularly strong in the United
States, United Kingdom and Japan, with good growth in Canada and Australia.
Over a third of assets under management are now sourced outside the US.  The
introduction of securities lending in Japan last year and the volume growth
in the US also contributed to the revenue improvements.

Total assets under management grew to £529bn from £486bn at 31st December
1999; £23bn of the increase is attributable to net new business and £20bn is
attributable to market and exchange rate translation movements.  Assets
under management consist of £418bn of indexed funds and £111bn under
quantitative active management.

Costs rose by £40m to £167m partly reflecting continued investment in the
development of the business and increased staff costs.  Staff costs
increased by 28% mainly as a result of an increase in staff by 200 to 1,900
during the first half of 2000 to support the growth in the business and also
increased performance related payments.

In the first half of 2000, BGI launched 28 new ishares (exchange traded
funds) in the US, bringing the total number now listed to 45 and over £5bn
of funds under management globally.  The iFTSE 100, the UK's first exchange
traded fund was launched in April.  BGI's UK Defined Contribution business
grew rapidly, experiencing a 36% and 39% increase in client numbers and
assets under management to 137 and £1.3bn respectively, at 30th June 2000.


Other operations

Property costs include Barclays Group Property Services which is responsible
for the management of the Group's operational premises and property related
services.  Property costs also include the central administration of certain
operational property costs.

Central services includes a variety of activities which support the
operating businesses and Service Provision which provides central
information technology services and recovers the full cost of these by way
of charges to the businesses receiving the service.

Management of Group capital is the balance of earnings on the Group's
capital remaining after allocations to business groups, based generally on
weighted risk assets.  The Group maintains hedges with respect to its
capital and its current account balances, which are designed both to reduce
the impact of short-term interest rate fluctuations on profits and to
increase profitability over the interest rate cycle.  The hedges increase
profitability when average short-term interest rates are lower than average
medium-term interest rates and depress profitability when average short-term
interest rates are higher than average medium-term interest rates.

                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Property costs                          9        11        10
Central services                     (28)      (23)      (29)
Management of Group capital            25        35         9
Operating profit                        6        23      (10)

The surplus reported in Management of Group Capital is attributable to
credits arising in transition businesses that are managed centrally.  This
has been partly offset by a deficit from the central management of Group
capital, compared with a surplus in 1999.  The deficit is mainly
attributable to allocations to business groups, reflecting higher short-term
interest rates.  The basis of allocation to the businesses remains in line
with previous years.  Lower average medium-term rates have had an adverse
effect on the earnings from capital balances as have the costs of share buy
backs.

Head office functions

Head office functions comprise the Group's central executive, Group finance,
corporate communications, human resources and Group risk.

Group finance includes Group general counsel's office, the Group corporate
secretariat and the treasury, financial control, investor relations,
economics and taxation functions.

Group risk includes risk management, Group Credit Policy Unit and internal
audit operations.

                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Operating cost                       (39)      (47)      (30)


Restructuring charge
                                      Half-year ended
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
                                                             
Staff costs                            92      (55)       247
Administrative expenses - other        14        54        98
                                      106       (1)       345

A significant element of the restructuring charge of £106m relates to Retail
Financial Services with the remainder arising primarily in Corporate Banking
and Central services.

The staff costs charge of £92m includes some 1,000 staff reductions in the
first half of 2000.  The charge also includes costs associated with some
3,200 further affected staff.

In the first half of 2000 expenditure of £119m was incurred in respect of
the 1999 provision.  The majority of the remaining element of £71m relates
to property costs.

Expenditure of £33m has been incurred in respect of the restructuring charge
for 2000.


Value Based Management

Barclays is introducing Value Based Management (VBM), the principles of
which are designed to align management decision taking at all levels of the
Group with the interests of its shareholders.  The VBM framework is designed
to identify and reward performance that maximises shareholder return.  The
basic principle is to establish a robust financial framework that provides a
consistent evaluation of the risk and return characteristics that can be
applied to all business activities.  VBM will also have a significant impact
on key processes such as strategy development, management decision taking
and performance-linked incentivisation.

Economic profit

VBM is based on the concept of economic profit - the post-tax attributable
profit generated by a business over and above the cost of capital.  A
business or activity that generates a positive economic profit creates value
for our shareholders, whereas a business that generates a negative economic
profit destroys value.  To avoid the problems of short-term optimisation of
business performance that have sometimes been associated with VBM
frameworks, the strategy and performance of business will be assessed on a
multi-year basis by discounting future projected economic profits.

Economic profit is defined as profit after tax and minority interests less a
charge for the cost of average shareholders' funds.  This is calculated
using a capital asset pricing model.  The assumptions made include estimates
of the future equity market risk premium of 4.5% and the relative risk of
Barclays shares compared to the FTSE, measured by beta.  A forward looking
beta of 1.2 has been used.  The Group's target is to double economic profit
every four years.

                                      Half-year ended
                                   30.6.00   31.12.99   30.6.99
                                        £m        £m        £m
Profit after tax and minority        1,320     1,063       834
interests
                                                              
Average shareholders' funds          8,924     8,307     8,265
Post tax cost of equity                11%       11%       11%
Cost of average shareholders'        (491)     (456)     (455)
funds
Economic profit                        829       607       379

Profit after tax and minority interests excludes the charge for the write-
back of goodwill on disposals of £138m in the first half of 1999.

Economic profit as defined above but risk adjusted (replacing credit risk
provisions with risk tendency (see page 37) was £802m (half year to 31st
December 1999: £556m, half year to 30th June 1999: £355m).

Economic capital

Economic capital, which is distinct from regulatory capital, is a management
tool that estimates risk on the basis of the volatility of earnings around
their predicted level and therefore their contribution to overall Group
risk.  The higher the volatility, and hence risk, the more capital is
required.  Capital is calculated for each business based on its contribution
to the overall risk of the Group.  The major factor affecting profit
volatility is credit risk.  The calculation also reflects market risk and
business and operational risk.

The calculation of economic capital is an integral part of the work to
introduce the VBM principles and is being further developed as part of that
process.

                                      
Risk tendency

The Group uses a corporate grading structure which shows the probability of
future default by the borrower.  This, together with similar risk
calibration of categories of personal sector lendings, is used to estimate
levels of annualised future credit losses from the overall lending portfolio
averaged across the economic cycle (termed risk tendency).  Risk tendency
estimates assist in portfolio management decisions, such as exposure limits
to any single counterparty or borrower, the desired aggregate exposure
levels to individual sectors and pricing policy and also provide a guide to
changes in the underlying credit quality of the lending portfolio over time.

Based upon the composition of the lending portfolio as at 30th June 2000,
the underlying level of risk tendency, averaged across the economic cycle,
is estimated at around £830m (31st December 1999: £750m).

Risk tendency rose by £80m during the first half of the year primarily as a
result of growth in Barclaycard and the consumer loan portfolio within
Retail Financial Services.  There has also been an increase at Barclays
Capital reflecting methodology enhancements and some asset growth.

The growth in UK corporate lending has been concentrated towards large and
high quality customers and this has resulted in Corporate Banking's risk
tendency being maintained at last year's level.

                                         Risk Tendency
                                  30.6.00   31.12.99   30.6.99
                                       £m        £m        £m
Retail Financial Services             360       325       305
Barclaycard                           200       170       165
Corporate Banking                     210       210       210
Barclays Capital                       60        45        45
                                      830       750       725


                                BARCLAYS PLC
                                      
                     ADDITIONAL INFORMATION (UNAUDITED)
                                      
                                  KEY FACTS
                                      
                                      Half-year ended
                                   30.6.00  31.12.99 30.6.99
                                                            
RETAIL FINANCIAL SERVICES                                   
                                                            
Number of UK branches                1,728     1,899   1,945
                                                            
Retail Customers                                            
UK current account customers          8.1m      8.1m    8.0m
UK savings account customers          4.0m      3.8m    3.7m
UK Small Business customers        442,000   440,000 440,000
UK customers registered for       1,109,000 1,000,000 943,000
Barclaycall
UK customers registered for       1,110,000   500,000 342,000
on-line banking
Africa - number of countries            10         9      10
represented
Africa - customer deposits          £1.7bn    £1.6bn  £1.5bn
                                                            
Wealth Management                                           
Customers in continental Europe    311,000   307,000 304,000
Total customer funds               £69.3bn   £66.0bn £61.2bn
Stockbrokers - deal volumes per      8,900     6,600   6,400
day
Caribbean - number of countries         14        14      14
represented
Caribbean - customer deposits       £3.4bn    £3.1bn  £3.0bn
                                                            
BARCLAYCARD                                                 
                                                            
UK Barclaycards in issue             10.1m      9.7m    9.5m
International cards in issue          1.1m      1.0m    0.8m
Number of merchant transactions       560m      600m    500m
processed
Customers registered for internet  235,000   111,000  52,000
account services
                                                            
CORPORATE BANKING                                           
                                                            
Number of UK Corporate Banking     112,000   112,000 112,000
connections
- Mid corporate connections         96,000    96,000  96,000
- Larger business connections       14,000    14,000  14,000
- Large corporate connections        2,400     2,200   2,100
Customers registered for            36,000    29,000  25,000
electronic banking
Number of current accounts         234,000   231,000 226,000
Number of deposit accounts         101,000   102,000 100,000
                                                                            

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