Interim Results - Part 2

RNS Number : 8193A

Barclays PLC

07 August 2008

 



Part 2

Accounting Policies

Basis of Preparation

The condensed consolidated interim financial statements for the half year ended 30th June 2008 on pages 77 to 117 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim Financial Reporting' as published by the International Accounting Standards Board (IASB). They are also in accordance with IAS 34 as adopted by the European Union. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31st December 2007, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) as published by the IASB. The annual financial statements are also prepared in accordance with IFRS as published by the IASB and IFRIC interpretations as adopted by the European Union.

The accounting policies adopted are consistent with those of the accounting policies described in the 2007 Annual report, except IFRS 8 'Operating Segments' has been adopted as at 1st January 2008. The standard was issued in November 2006 and excluding early adoption would first be required to be applied to the Group's accounting period beginning on 1st January 2009. The standard replaces IAS 14 'Segmental Reporting' and aligns operating segmental reporting with segments reported to senior management as well as requiring amendments and additions to the existing segmental reporting disclosures. The standard does not change the recognition, measurement or disclosure of specific transactions in the condensed consolidated interim financial statements but has impacted the segmental reporting as set out in note 34 on page 112.

  Consolidated Interim Income Statement (Unaudited)

Continuing Operations		Half Year Ended
		30.06.08	31.12.07	30.06.07
	Notes	£m	£m	£m
Interest income		13,356	13,271	12,037
Interest expense		(8,186)	(8,250)	(7,448)
Net interest income	1	5,170	5,021	4,589
Fee and commission income		4,461	4,386	4,292
Fee and commission expense		(547)	(490)	(480)
Net fee and commission income	2	3,914	3,896	3,812
Net trading income		1,784	948	2,811
Net investment income		345	820	396
Principal transactions	3	2,129	1,768	3,207
Net premiums from insurance contracts	4	568	569	442
Other income	5	163	88	100
Total income		11,944	11,342	12,150
Net claims and benefits incurred under insurance contracts	6	(101)	(244)	(248)
Total income net of insurance claims		11,843	11,098	11,902
Impairment charges and other credit provisions	7	(2,448)	(1,836)	(959)
Net income		9,395	9,262	10,943
Staff costs	8	(3,888)	(3,824)	(4,581)
Administration and general expenses		(2,408)	(2,189)	(1,952)
Depreciation of property, plant and equipment		(274)	(240)	(227)
Amortisation of intangible assets		(94)	(99)	(87)
Operating expenses	8	(6,664)	(6,352)	(6,847)
Share of post-tax results of associates and joint ventures	9	23	42	-
Profit on disposal of subsidiaries, associates and joint ventures	10	-	23	5
Profit before tax		2,754	2,975	4,101
Tax	11	(620)	(823)	(1,158)
Profit after tax		2,134	2,152	2,943
Attributable To
Minority interests	12	416	369	309
Equity holders of the parent	13	1,718	1,783	2,634
		2,134	2,152	2,943
Basic earnings per ordinary share	13	27.0p	27.5p	41.4p
Diluted earnings per ordinary share	13	26.2p	26.6p	40.1p
Proposed Dividend per Ordinary Share
Interim dividend	14	11.5p	-	11.5p
Final dividend	14	-	22.5p	-

The notes on pages 83 to 117 form an integral part of this condensed consolidated interim financial information.

  Consolidated Interim Balance Sheet (Unaudited)

Assets		As at 30.06.08	As at 31.12.07	As at 30.06.07
	Notes	£m	£m	£m
Cash and balances at central banks		6,432	5,801	4,785
Items in the course of collection from other banks		2,478	1,836	2,533
Trading portfolio assets		177,628	193,691	217,573
Financial assets designated at fair value:
- held on own account		46,697	56,629	46,171
- held in respect of linked liabilities to customers under investment contracts		79,486	90,851	92,194
Derivative financial instruments	15	400,009	248,088	174,225
Loans and advances to banks	18	54,514	40,120	43,191
Loans and advances to customers	19	395,467	345,398	321,243
Available for sale financial investments	21	42,765	43,072	47,764
Reverse repurchase agreements and cash collateral on securities borrowed		139,955	183,075	190,546
Other assets		6,012	5,150	6,289
Current tax assets		808	518	345
Investments in associates and joint ventures		316	377	228
Goodwill		6,932	7,014	6,635
Intangible assets		1,200	1,282	1,228
Property, plant and equipment		2,991	2,996	2,538
Deferred tax assets		1,964	1,463	774
Total assets		1,365,654	1,227,361	1,158,262

The notes on pages 83 to 117 form an integral part of this condensed consolidated interim financial information. 

  Consolidated Interim Balance Sheet (Unaudited)

Liabilities		As at 30.06.08	As at 31.12.07	As at 30.06.07
	Notes	£m	£m	£m
Deposits from banks		89,944	90,546	87,429
Items in the course of collection due to other banks		2,791	1,792	2,206
Customer accounts		319,281	294,987	292,444
Trading portfolio liabilities		56,040	65,402	79,252
Financial liabilities designated at fair value		86,162	74,489	63,490
Liabilities to customers under investment contracts		80,949	92,639	93,735
Derivative financial instruments	15	396,357	248,288	177,774
Debt securities in issue		115,739	120,228	118,745
Repurchase agreements and cash collateral on securities lent		146,895	169,429	181,093
Other liabilities		8,998	10,499	10,908
Current tax liabilities		1,532	1,311	1,003
Insurance contract liabilities, including unit-linked liabilities		3,679	3,903	3,770
Subordinated liabilities	22	21,583	18,150	15,067
Deferred tax liabilities		655	855	258
Provisions	23	624	830	527
Retirement benefit liabilities	24	1,603	1,537	1,840
Total liabilities		1,332,832	1,194,885	1,129,541
Shareholders' equity
Called up share capital	25	1,642	1,651	1,637
Share premium account	25	72	56	5,859
Other reserves		(198)	874	271
Retained earnings		20,965	20,970	13,461
Less: treasury shares		(192)	(260)	(255)
Shareholders' equity excluding minority interests		22,289	23,291	20,973
Minority interests		10,533	9,185	7,748
Total shareholders' equity	26	32,822	32,476	28,721
Total liabilities and shareholders' equity		1,365,654	1,227,361	1,158,262

The notes on pages 83 to 117 form an integral part of this condensed consolidated interim financial information.

  Condensed Consolidated Interim Statement of Recognised Income and Expense (Unaudited)

	Half Year Ended
	30.06.08	31.12.07	30.06.07
Consolidated Statement of Recognised Income and Expense	£m	£m	£m
Net movements in available for sale reserve	(660)	(93)	95
Net movements in cash flow hedging reserve	(573)	639	(280)
Net movements in currency translation reserve	(500)	102	(48)
Tax	381	17	37
Other movements	22	(1)	23
Amounts included directly in equity	(1,330)	664	(173)
Profit after tax	2,134	2,152	2,943
Total recognised income and expense	804	2,816	2,770
Attributable To
Equity holders of the parent	616	2,352	2,502
Minority interests	188	464	268
	804	2,816	2,770

An analysis of the statement of recognised income and expense is provided in note 27.

Notes on pages 83 to 117 form an integral part of this condensed consolidated interim financial information.

  Condensed Consolidated Interim Cash Flow Statement (Unaudited)

	Half Year Ended
	30.06.08	31.12.07	30.06.07
Reconciliation of Profit Before Tax to Net Cash Flows From Operating Activities	£m	£m	£m
Profit before tax	2,754	2,975	4,101
Adjustment for non-cash items	67	1,436	716
Changes in operating assets and liabilities	2,136	(17,264)	(1,128)
Tax Paid	(986)	(623)	(960)
Net cash from operating activities	3,971	(13,476)	2,729
Net cash from investing activities	812	6,074	3,990
Net cash from financing activities	2,588	2,948	410
Effect of exchange rates on cash and cash equivalents	(407)	(354)	(196)
Net increase/(decrease) in cash and cash equivalents	6,964	(4,808)	6,933
Cash and cash equivalents at beginning of period	33,077	37,885	30,952
Cash and cash equivalents at end of period	40,041	33,077	37,885

Notes on pages 83 to 117 form an integral part of this condensed consolidated interim financial information.

  Notes to the Condensed Consolidated Interim Financial Statements

1.    Net Interest Income

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Cash and balances with central banks	76	133	12
Available for sale investments	993	1,136	1,444
Loans and advances to banks	573	808	608
Loans and advances to customers	11,121	10,505	9,054
Other	593	689	919
Interest income	13,356	13,271	12,037
Deposits from banks	(1,069)	(1,249)	(1,471)
Customer accounts	(3,071)	(2,208)	(1,902)
Debt securities in issue	(3,086)	(3,657)	(2,994)
Subordinated liabilities	(573)	(480)	(398)
Other	(387)	(656)	(683)
Interest expense	(8,186)	(8,250)	(7,448)
Net interest income	5,170	5,021	4,589

Group net interest income increased 13% (£581m) to £5,170m (2007: £4,589m) reflecting balance sheet growth across a number of businesses. 

Group net interest income reflects structural hedges which function to reduce the impact of the volatility of short-term interest rate movements on equity and customer balances that do not re-price with market rates. The cost of structural hedges relative to average base rates decreased to £73m (2007: £126m), largely due to the smoothing effect of the structural hedge on changes in interest rates.

2.    Net Fee and Commission Income

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Brokerage fees	43	8	101
Investment management fees	850	925	862
Securities lending	180	129	112
Banking and credit related fees and commissions	3,271	3,242	3,121
Foreign exchange commission	117	82	96
Fee and commission income	4,461	4,386	4,292
Fee and commission expense	(547)	(490)	(480)
Net fee and commission income	3,914	3,896	3,812

Net fee and commission income increased 3% (£102m) to £3,914m (2007: £3,812m).

Fee and commission income increased 4% (£169m) to £4,461m (2007: £4,292m) reflecting increased securities lending fees in Barclays Global Investors and increased volumes in GRCB - Western Europe and GRCB - Emerging Markets.

Fee and commission expense largely comprises brokerage fees.

  Notes to the Condensed Consolidated Interim Financial Statements

3.    Principal Transactions

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Rates related business	2,780	2,160	2,002
Credit related business	(996)	(1,212)	809
Net trading income	1,784	948	2,811
Net gain from disposal of available for sale assets	119	401	159
Dividend income	5	8	18
Net gain from financial instruments designated at fair value	125	191	102
Other investment income	96	220	117
Net investment income	345	820	396
Principal transactions	2,129	1,768	3,207

Principal transactions decreased 34% (£1,078m) to £2,129m (2007: £3,207m).

Net trading income decreased 37% (£1,027m) to £1,784m (2007: £2,811m). The majority of the Group's net trading income arises in Barclays Capital. Growth in the Rates related business reflected growth in fixed income, prime services, foreign exchange, commodities and emerging markets. The Credit related business included net losses from credit market dislocation partially offset by attributable income and the benefits of widening credit spreads on the fair value of issued notes. 

Net investment income decreased 13% (£51m) to £345m (2007: £396m). The cumulative gain from disposal of available for sale assets decreased 25% (£40m) to £119m (2007: £159m) reflecting profits realised on the sale of investments. 

4.    Net Premiums from Insurance Contracts

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Gross premiums from insurance contracts	593	597	465
Premiums ceded to reinsurers	(25)	(28)	(23)
Net premiums from insurance contracts	568	569	442

Net premiums from insurance contracts increased 29% (£126m) to £568m (2007: £442m), primarily due to expansion in GRCB - Western Europe. 

  Notes to the Condensed Consolidated Interim Financial Statements

5.    Other Income

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
(Decrease)/increase in fair value of assets held in respect of linked liabilities to customers under investment contracts	(5,609)	2,782	2,810
Decrease/(increase) in liabilities to customers under investment contracts	5,609	(2,782)	(2,810)
Property rentals	37	26	27
Other income	126	62	73
	163	88	100

Certain asset management products offered to institutional clients by Barclays Global Investors are recognised as investment contracts. Accordingly the invested assets and the related liabilities to investors are held at fair value and changes in those fair values are reported within Other income. Other income in 2008 includes a £42m gain on the re-organisation of Barclays interest in a third party finance operation. This gain was offset by a broadly similar tax charge.

6.    Net Claims and Benefits Incurred under Insurance Contracts

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Gross claims and benefits incurred underinsurance contracts	106	266	254
Reinsurers' share of claims incurred	(5)	(22)	(6)
Net claims and benefits incurred under insurance contracts	101	244	248

Net claims and benefits incurred under insurance contracts decreased 59% (£147m) to £101m (2007: £248m) principally due to a decrease in the value of unit linked insurance contracts and reduced non-linked insurance contract liabilities due to falls in equity markets in Barclays Wealth.

  Notes to the Condensed Consolidated Interim Financial Statements

7.    Impairment Charges and Other Credit Provisions

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Impairment charges on loans and advances	1,933	1,343	963
Charges/(release) in respect of undrawn facilities and guarantees	328	480	(4)
Impairment charges on loans and advances and other credit provisions	2,261	1,823	959
Impairment charges on reverse repurchase agreements	103	-	-
Impairment charges on available for sale assets	84	13	-
Impairment charges and other credit provisions	2,448	1,836	959

Impairment charges and other credit provisions on ABS CDO Super Senior and other credit market exposures included above:

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Impairment charges on loans and advances	663	300	-
Charges in respect of undrawn facilities	322	469	-
Impairment charges on loans and advances and other credit provisions on ABS CDO Super Senior and other credit market exposures	985	769	-
Impairment charges on reverse repurchase agreements	53	-	-
Impairment charges on available for sale assets	70	13	-
Impairment charges and other credit provisions on ABS CDO Super Senior and other credit market exposures	1,108	782	-

  Notes to the Condensed Consolidated Interim Financial Statements

8.    Operating Expenses

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Staff costs	3,888	3,824	4,581
Administrative expenses	2,353	2,085	1,893
Depreciation	274	240	227
Impairment loss - property and equipment and intangible assets	30	14	2
Operating lease rentals	234	210	204
Gain on property disposals	(120)	(120)	(147)
Amortisation of intangible assets	94	99	87
Gain on acquisition	(89)	-	-
Operating expenses	6,664	6,352	6,847

Operating expenses fell 3% (£183m) to £6,664m (2007: £6,847m). The decrease was driven by a 15% fall (£693m) in staff costs to £3,888m (2007: £4,581m). Administrative expenses grew 24% (£460m) to £2,353m (2007: £1,893) reflecting continued expansion and investment in the distribution network and infrastructure of the international businesses within Global Retail and Commercial Banking and the cost of selective support of liquidity products in Barclays Global Investors. 

Operating expenses were reduced by gains from the sale of property of £120m (2007: £147m) as the Group continued the sale and leaseback of some of its freehold portfolio, principally in UK Retail Banking, Barclays Commercial Bank and GRCB - Western Europe.

Amortisation of intangible assets increased 8% (£7m) to £94m (2007: £87m). 

Gain on acquisition represents the excess of fair value of net assets over cost in respect of the purchase of Discover's UK credit card business Goldfish.

Staff Costs	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Salaries and accrued incentive payments	3,193	3,137	3,856
Social security costs	247	207	301
Pension costs
- defined contribution plans	84	70	71
- defined benefit plans	43	73	77
Other post retirement benefits	15	(2)	12
Other	306	339	264
Staff costs	3,888	3,824	4,581

Staff costs decreased 15% (£693m) to £3,888m (2007: £4,581m). Salaries and accrued incentive payments fell 17% (£663m) to £3,193m (2007: £3,856m), reflecting lower performance related costs in Barclays Capital.

Defined benefit plan pension costs decreased 44% (£34m) to £43m (2007: £77m). This was due to recognition of actuarial gains, higher expected return on assets and reduction in past service costs; partially offset by higher interest costs.

  Notes to the Condensed Consolidated Interim Financial Statements

9.    Share of Post-Tax Results of Associates and Joint Ventures

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Profit from associates	23	30	3
Profit/(loss) from joint ventures	-	12	(3)
Share of post-tax results of associates and joint ventures	23	42	-

The overall share of post-tax results of associates and joint ventures increased £23m to £23m (2007: £nil). This mainly relates to an increase in profits generated by the private equity associates.

10.    Profit on Disposal of Subsidiaries, Associates and Joint Ventures

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Profit on disposal of subsidiaries, associates and joint ventures	-	23	5

11.    Tax

The tax charge for the period is based upon a UK corporation tax rate of 28.5% for the calendar year 2008 (2007: 30%). The effective rate of tax for the first half of 2008, based on profit before tax, was 23% (2007: 28%). The effective tax rate differs from 28.5% primarily due to the different tax rates which are applied to the profits earned outside the UK, disallowable expenditure, non-taxable gains and income, and the release of prior year tax provisions and a deferred tax liability no longer required. The effective tax rate for this interim period is lower than the 2007 full year and anticipated 2008 full year rate principally because of the release of prior year tax provisions and a deferred tax liability no longer required.

12.    Profit Attributable to Minority Interests

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Absa Group Limited	149	170	129
Preference shares	167	108	90
Reserve capital instruments	47	43	44
Upper tier 2 instruments	6	8	8
Barclays Global Investors minority interests	8	18	22
Other minority interests	39	22	16
Profit attributable to minority interests	416	369	309

  Notes to the Condensed Consolidated Interim Financial Statements

13.    Earnings Per Share

	Half Year Ended
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Profit attributable to equity holders of the parent	1,718	1,783	2,634
Dilutive impact of convertible options	(2)	(12)	(13)
Profit attributable to equity holders of the parent including dilutive impact of convertible options	1,716	1,771	2,621
Basic weighted average number of shares in issue	6,369m	6,481m	6,356m
Number of potential ordinary shares1	191m	165m	178m
Diluted weighted average number of shares	6,560m	6,646m	6,534m
Basic earnings per ordinary share	27.0p	27.5p	41.4p
Diluted earnings per ordinary share	26.2p	26.6p	40.1p

The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the weighted average number of shares excluding own shares held in employee benefit trusts and shares held for trading.

The basic and diluted weighted average number of shares in issue in the half year ended 31st December 2007 reflected 336.8 million shares issued on 14th August 2007 of which 299.5 million were repurchased by 31st December 2007. The buyback programme was subsequently completed on 31st January 2008. The weighted average number of shares in issue in the half year ended 31st December 2007 was increased by 54 million shares as a result of this temporary increase.

When calculating the diluted earnings per share, the profit attributable to equity holders of the parent is adjusted for the conversion of outstanding options into shares within Absa Group Limited and Barclays Global Investors UK Holdings Limited. The weighted average number of ordinary shares excluding own shares held in employee benefit trusts and shares held for trading, is adjusted for the effects of all dilutive potential ordinary shares, totalling 191 million (2007: 178 million).

14.    Dividends on Ordinary Shares

	Half Year Ended
	30.06.08	31.12.07	30.06.07
Dividends Paid During the Period	£m	£m	£m
Final dividend (paid 25th April 2008, 27th April 2007)	1,438	-	1,311
Interim dividend (paid 1st October 2007)	-	768	-
Final dividend	22.5p	-	20.5p
Interim dividend	-	11.5p	-

Dividend Proposed

The Directors have recommended an interim dividend for the year ended 31st December 2008 of 11.5p per ordinary share. Based on the number of shares outstanding at 30th June 2008 the amount payable in relation to this dividend would be £732m. This amount does not include the effects of the capital raising described in note 33 on page 111. This amount also excludes £23m payable on own shares held by employee benefit trusts. 

1    Potential ordinary shares reflect the dilutive impact of share options outstanding.

  Notes to the Condensed Consolidated Interim Financial Statements

15.    Derivative Financial Instruments

			As at 30.06.08 Fair Value
	Contract Notional Amount		Assets	Liabilities
Derivatives Designated as Held for Trading	£m		£m	£m
Foreign exchange derivatives	2,602,857		40,424	(39,440)
Interest rate derivatives	29,385,311		203,890	(204,137)
Credit derivatives	2,417,896		73,273	(67,675)
Equity and stock index and commodity derivatives	1,261,136		81,577	(83,988)
Total derivative assets/(liabilities) held for trading	35,667,200		399,164	(395,240)
Derivatives Designated in Hedge Accounting Relationships
Derivatives designated as cash flow hedges	45,180		176	(448)
Derivatives designated as fair value hedges	22,623		560	(371)
Derivatives designated as hedges of net investments	8,530		109	(298)
Total derivative assets/(liabilities) designated in hedge accounting relationships	76,333		845	(1,117)
Total recognised derivative assets/(liabilities)	35,743,533		400,009	(396,357)
			As at 31.12.07 Fair Value
	Contract Notional Amount		Assets	Liabilities
Derivatives Designated as Held for Trading	£m		£m	£m
Foreign exchange derivatives	2,208,369		30,348	(30,300)
Interest rate derivatives	23,608,949		139,940	(138,426)
Credit derivatives	2,472,249		38,696	(35,814)
Equity and stock index and commodity derivatives	910,328		37,966	(42,838)
Total derivative assets/(liabilities) held for trading	29,199,895		246,950	(247,378)
Derivatives Designated in Hedge Accounting Relationships
Derivatives designated as cash flow hedges	55,292		458	(437)
Derivatives designated as fair value hedges	23,952		462	(328)
Derivatives designated as hedges of net investments	12,620		218	(145)
Total derivative assets/(liabilities) designated in hedge accounting relationships	91,864		1,138	(910)
Total recognised derivative assets/(liabilities)	29,291,759		248,088	(248,288)

  Notes to the Condensed Consolidated Interim Financial Statements

15.    Derivative Financial Instruments (continued)

			As at 30.06.07 Fair Value
	Contract Notional Amount		Assets	Liabilities
Derivatives Designated as Held for Trading	£m		£m	£m
Foreign exchange derivatives	2,113,080		23,852	(22,325)
Interest rate derivatives	21,671,954		102,959	(103,722)
Credit derivatives	1,755,840		13,430	(12,916)
Equity and stock index and commodity derivatives	620,500		32,254	(37,814)
Total derivative assets/(liabilities) held for trading	26,161,374		172,495	(176,777)
Derivatives Designated in Hedge Accounting Relationships
Derivatives designated as cash flow hedges	42,193		162	(433)
Derivatives designated as fair value hedges	22,246		324	(483)
Derivatives designated as hedges of net investments	16,094		1,244	(81)
Total derivative assets/(liabilities) designated in hedge accounting relationships	80,533		1,730	(997)
Total recognised derivative assets/(liabilities)	26,241,907		174,225	(177,774)

Total derivative notionals have grown primarily due to increases in the volume of fixed income derivatives, reflecting the continued growth in client based activity and increased use of electronic trading platforms in Europe and the US. Commodity derivative values have also increased significantly, largely due to growth in the markets for these products, along with price increases.

Derivative assets and liabilities subject to counterparty netting agreements amounted to £341bn (31st December 2007: £199bn; 30th June 2007: £134bn). 

16.    Fair Value Measurement of Financial Instruments

Where a financial instrument is stated at fair value, this is determined by reference to the quoted price in an active market wherever possible. Where no such active market exists for the particular asset or liability, the Group uses an appropriate valuation technique to arrive at the fair value. 

Fair value amounts can be analysed into the following categories: 

Unadjusted quoted prices in active markets where the quoted price is readily available and the price represents actual and regularly occurring market transactions on an arm's length basis. 

Valuation techniques based on market observable inputs. Such techniques may include:

using recent arm's length market transactions; 

reference to the current fair value of similar instruments; 

discounted cash flow analysis, pricing models or other techniques commonly used by market participants. 

Valuation techniques used above, but which include significant inputs that are not observable. On initial recognition of financial instruments measured using such techniques the transaction price is deemed to provide the best evidence of fair value for accounting purposes.

  Notes to the Condensed Consolidated Interim Financial Statements

16.    Fair Value Measurement of Financial Instruments (continued)

The following tables set out the total financial instruments stated at fair value and those fair values are calculated with valuation techniques using unobservable inputs.

	As at 30.06.08
	Unobservable Inputs		Total
Assets Stated at Fair Value	£m		£m
Trading portfolio assets	3,996		177,628
Financial assets designated at fair value:
- held on own account	15,262		46,697
- held in respect of linked liabilities to customers under investment contracts	-		79,486
Derivative financial instruments	6,909		400,009
Available for sale financial investments	1,213		42,765
Total	27,380		746,585
Liabilities Stated at Fair Value
Trading Portfolio Liabilities	-		56,040
Financial liabilities designated at fair value	7,076		86,162
Liabilities to customers under investment contracts	-		80,949
Derivative financial instruments	3,833		396,357
Total	10,909		619,508

	As at 31.12.07
	Unobservable Inputs		Total
Assets Stated at Fair Value	£m		£m
Trading portfolio assets	4,457		193,691
Financial assets designated at fair value:
- held on own account	16,819		56,629
- held in respect of linked liabilities to customers under investment contracts	-		90,851
Derivative financial instruments	2,707		248,088
Available for sale financial investments	810		43,072
Total	24,793		632,331
Liabilities Stated at Fair Value
Trading portfolio liabilities	42		65,402
Financial liabilities designated at fair value	6,172		74,489
Liabilities to customers under investment contracts	-		92,639
Derivative financial instruments	4,382		248,288
Total	10,596		480,818

  Notes to the Condensed Consolidated Interim Financial Statements

16.    Fair Value Measurement of Financial Instruments (continued)

Unobservable Profit

The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, was as follows:

	Half Year Ended	Year Ended
	30.06.08	31.12.07
	£m	£m
Opening balance	154	534
Additions	79	134
Amortisation and releases	(61)	(514)
Closing balance	172	154

  Notes to the Condensed Consolidated Interim Financial Statements

17.    Barclays Capital Credit Market Exposures

Barclays Capital's credit market exposures resulted in net losses of £1,979m in the first half of 2008, due to continuing dislocation in the credit markets. The net losses, which included £1,108m in impairment charges, comprised: £875m against ABS CDO Super Senior exposures; and £1,956m against other credit market exposures; partially offset by gains of £852m from the general widening of credit spreads on issued notes measured at fair value through the profit and loss account. 

For the purposes of this note, exposures represent the carrying value of assets and commitments (being either fair value or amortised cost less impairment), less hedging and subordination.

	Net Exposures
	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
ABS CDO Super Senior	3,229	4,671	7,432
Net Other US sub-prime	3,258	5,037	6,046
Alt-A	3,510	4,916	3,760
Monoline insurers	2,584	1,335	140
SIVs and SIV -Lites	429	784	1,617
Commercial mortgages	10,988	12,399	8,282
Leveraged Finance	9,217	9,217	8,575

  Notes to the Condensed Consolidated Interim Financial Statements

18.    Loans and Advances to Banks 

	As at 30.06.08	As at 31.12.07	As at 30.06.07
By Geographical Area	£m	£m	£m
United Kingdom	9,840	5,518	8,933
Other European Union	16,175	11,102	13,538
United States	16,346	13,443	12,351
Africa	3,409	2,581	2,252
Rest of the World	8,749	7,479	6,120
	54,519	40,123	43,194
Less: Allowance for impairment	(5)	(3)	(3)
Total loans and advances to banks	54,514	40,120	43,191

Loans and advances to banks includes £9,236m (31st December 2007: £4,210m; 30th June 2007: £10,272m) of settlement balances and £16,430m (31st December 2007: £10,739m; 30th June 2007: £8,376m) of cash collateral balances.

  Notes to the Condensed Consolidated Interim Financial Statements

19.    Loans and Advances to Customers 

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
Retail business	175,397	164,062	147,730
Wholesale and corporate business	224,941	185,105	176,787
	400,338	349,167	324,517
Less: Allowances for impairment	(4,871)	(3,769)	(3,274)
Total loans and advances to customers	395,467	345,398	321,243
By Geographical Area
United Kingdom	211,132	190,347	183,756
Other European Union	72,519	56,533	52,178
United States	50,444	40,300	33,767
Africa	37,991	39,167	34,175
Rest of the World	28,252	22,820	20,641
	400,338	349,167	324,517
Less: Allowance for impairment	(4,871)	(3,769)	(3,274)
Total loans and advances to customers	395,467	345,398	321,243
By Industry
Financial institutions	96,829	71,160	67,125
Agriculture, forestry and fishing	3,332	3,319	3,144
Manufacturing	20,509	16,974	14,086
Construction	6,388	5,423	4,764
Property	18,754	17,018	17,489
Government	3,053	2,036	-
Energy and water	10,602	8,632	8,000
Wholesale and retail distribution and leisure	19,233	17,768	17,209
Transport	6,736	6,258	6,012
Postal and communication	7,414	5,404	3,793
Business and other services	29,660	30,363	36,533
Home loans	120,971	112,087	104,319
Other personal	46,301	41,535	31,713
Finance lease receivables	10,556	11,190	10,330
	400,338	349,167	324,517
Less: Allowance for impairment	(4,871)	(3,769)	(3,274)
Total loans and advances to customers	395,467	345,398	321,243

Loans and advances to customers includes £30,140m (31st December 2007: £18,249m; 30th June 2007: £33,928m) of settlement balances and £17,901m (31st December 2007: £13,441m; 30th June 2007: £8,177m) of cash collateral balances.

The industry classifications have been prepared at the level of the borrowing entity. This means that a loan to the subsidiary of a major corporation is classified by the industry in which that subsidiary operates even though the parent's predominant business may be a different industry.

  Notes to the Condensed Consolidated Interim Financial Statements

20.    Allowance for Impairment on Loans and Advances

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
At beginning of period	3,772	3,277	3,335
Acquisitions and disposals	97	2	(75)
Exchange and other adjustments	(26)	59	(6)
Unwind of discount	(63)	(60)	(53)
Amounts written off	(911)	(952)	(1,011)
Recoveries	74	103	124
Amounts charged against profit	1,933	1,343	963
At end of period	4,876	3,772	3,277

	As at 30.06.08	As at 31.12.07	As at 30.06.07
Allowance	£m	£m	£m
United Kingdom	2,785	2,526	2,396
Other European Union	449	344	334
United States	1,007	356	72
Africa	552	514	452
Rest of the World	83	32	23
At end of period	4,876	3,772	3,277

21.    Available for Sale Financial Instruments

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
Debt securities	38,131	38,673	42,729
Equity securities	1,653	1,676	1,648
Treasury bills and other eligible bills	2,981	2,723	3,387
Available for sale financial investments	42,765	43,072	47,764

  Notes to the Condensed Consolidated Interim Financial Statements

22.    Subordinated Liabilities

	Dated
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Opening balance	11,519	9,371	8,364
Issuances	1,606	1,606	1,900
Redemptions	(195)	(11)	(670)
Other	325	553	(223)
Closing balance	13,255	11,519	9,371
Issuances
Floating Rate Subordinated Step-Up Callable Notes 2017 (US$1.5bn)	-	-	762
Floating Rate Subordinated Step-Up Callable Notes 2017 (€1.5bn)	-	-	1,017
8.8% Subordinated Fixed Rate Callable Notes 2019 (ZAR1,725m)	-	-	121
6.05% Fixed Rate Subordinated Notes 2017 (US$2.25bn)	-	1,098	-
Fixed/Floating Rate Callable Subordinated Floating Rate Notes 2023	-	500	-
Floating Rate Subordinated Notes 2014 (KES1,000m)	-	8	-
6% Fixed Rate Subordinated Notes due 2018 (€1.75bn)	1,303	-	-
CMS-Linked Subordinated Notes due 2018 (€100m)	75	-	-
CMS-Linked Subordinated Notes due 2018 (€135m)	105	-	-
Subordinated Unsecured Fixed Rate Capital Notes 2015 (BWP90m)	8	-	-
Subordinated Callable Notes 2018 (ZAR1,525m)	115	-	-
	1,606	1,606	1,900
Redemptions
Step-up Callable Floating Rate Subord Bonds 2012 (ex-Woolwich PLC)	-	-	(150)
Floating Rate Subordinated Notes 2012	-	-	(300)
Callable Subordinated Floating Rate Notes 2012	-	-	(44)
Callable Subordinated Floating Rate Notes 2012 (US$150m)	-	-	(76)
Floating Rate Subordinated Notes 2012 (US$100m)	-	-	(50)
Capped Floating Rate Subordinated Notes 2012 (US$100m)	-	-	(50)
Subordinated Floating Rate Notes 2011 (€30m)	-	(11)	-
5.5% Subordinated Notes 2013 (DM 500m)	(195)	-	-
	(195)	(11)	(670)

  Notes to the Condensed Consolidated Interim Financial Statements

22.    Subordinated Liabilities (continued)

	Undated
	30.06.08	31.12.07	30.06.07
	£m	£m	£m
Opening balance	6,631	5,696	5,422
Issuances	2,010	618	500
Redemptions	(300)	-	-
Other	(13)	317	(226)
Closing balance	8,328	6,631	5,696
Issuances
6.3688% Step-up Callable Perpetual Reserve Capital Instruments	-	-	500
7.434% Step-up Callable Perpetual Reserve Capital Instruments (US$1.25bn)	-	618	-
8.25% Undated Subordinated Notes	1,000	-	-
7.7% Undated Subordinated Notes (US$2bn)	1,010	-	-
	2,010	618	500
Redemptions
9.875% Undated Subordinated Notes	(300)	-	-
	(300)	-	-

23.    Provisions

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
Redundancy and restructuring	87	82	104
Undrawn contractually committed facilities and guarantees	266	475	38
Onerous contracts	55	64	68
Sundry provisions	216	209	317
	624	830	527

24.    Retirement Benefit Liabilities

The Group's IAS 19 pension surplus across all schemes as at 30th June 2008 was £141m (31st December 2007: £393m; 30th June 2007: £540m). There are net recognised liabilities of £1,567m (31st December 2007: £1,501m; 30th June 2007: £1,804m) and unrecognised actuarial gains of £1,708m (31st December 2007: £1,894m; 30th June 2007: £2,344m). The net recognised liabilities comprised retirement benefit liabilities of £1,603m (31st December 2007: £1,537m; 30th June 2007: £1,840m) and assets of £36m (31st December 2007: £36m; 30th June 2007: £36m).

The Group's IAS 19 pension surplus in respect of the main UK scheme as at 30th June 2008 was £439m (31st December 2007: £668m; 30th June 2007: £867m). This change primarily reflects lower investment returns over the period, following general market movements, which led to a fall in the market value of the scheme assets. This was partially offset by an increase in the real discount rate used to value the scheme liabilities, reflecting an increase in AA corporate bond yields which resulted in a higher discount rate of 6.70% (31st December 2007: 5.82%; 30th June 2007: 5.82%).

  Notes to the Condensed Consolidated Interim Financial Statements

25.    Share Capital and Share Premium

	Number of shares	Called up share capital	Share premium	Total
	m	£m	£m	£m
At 1st January 2008	6,601	1,651	56	1,707
Issued to staff under the Sharesave Share Option Scheme	3	1	13	14
Issued under the Incentive Share Option Plan	1	-	3	3
Repurchase of shares	(37)	(10)	-	(10)
At 30th June 2008	6,568	1,642	72	1,714
At 1st July 2007	6,545	1,637	5,859	7,496
Issued to staff under the Sharesave Share Option Scheme	17	5	55	60
Issued under the Incentive Share Option Plan	2	-	7	7
Issued under the Woolwich Executive Share Option Plan	-	-	1	1
Transfer to retained earnings	-	-	(7,223)	(7,223)
Issue of new ordinary shares	337	84	1,357	1,441
Repurchase of shares	(300)	(75)	-	(75)
At 31st December 2007	6,601	1,651	56	1,707
At 1st January 2007	6,535	1,634	5,818	7,452
Issued to staff under the Sharesave Share Option Scheme	2	1	7	8
Issued under the Incentive Share Option Plan	8	2	33	35
Issued under the Executive Share Option Scheme	-	-	1	1
At 30th June 2007	6,545	1,637	5,859	7,496
		Half Year Ended
		30.06.08	31.12.07	30.06.07
Ordinary Shares		£m	£m	£m
At beginning of period		1,650	1,636	1,633
Issued to staff under the Sharesave Share Option Scheme		1	5	1
Issued under the Incentive Share Option Plan		-	-	2
Issue of new ordinary shares		-	84	-
Repurchase of shares		(9)	(75)	-
At end of period		1,642	1,650	1,636
Staff Shares
At beginning of period		1	1	1
Repurchase		(1)	-	-
At end of period		-	1	1
Total		1,642	1,651	1,637

The authorised share capital of Barclays PLC is £2,540m, $77.5m, €40m and ¥4,000m. (31st December 2007: £2,500m) comprising 9,996 million (31st December 2007: 9,996 million) ordinary shares of 25p each, 0.4 million sterling preference shares of £100 each, 0.4 million US dollar preference shares of $100 each, 150 million US dollar preference shares of $0.25 each, 0.4 million euro preference shares of €100 each, 0.4 million yen preference shares of ¥10,000 each and 1 million (31st December 2007: 1 million) staff shares of £1 each.

  Notes to the Condensed Consolidated Interim Financial Statements

26.    Total Shareholders' Equity

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
Called up share capital	1,642	1,651	1,637
Share premium account	72	56	5,859
Available for sale reserve	(363)	154	238
Cash flow hedging reserve	(419)	26	(407)
Capital redemption reserve	394	384	309
Other capital reserve	617	617	617
Currency translation reserve	(427)	(307)	(486)
Other reserves	(198)	874	271
Retained earnings	20,965	20,970	13,461
Less: treasury shares	(192)	(260)	(255)
Shareholders' equity excluding minority interests	22,289	23,291	20,973
Preference shares	6,198	4,744	3,431
Reserve Capital instruments	1,923	1,906	1,921
Upper tier 2 instruments	586	586	586
Absa minority interests	1,519	1,676	1,541
Other minority interests	307	273	269
Minority interests	10,533	9,185	7,748
Total shareholders' equity	32,822	32,476	28,721

Total shareholders' equity increased £346m to £32,822m (31st December 2007: £32,476m).

Called up share capital comprises 6,568 million ordinary shares of 25p each (2007: 6,600 million ordinary shares of 25p each and 1 million staff shares of £1 each). Called up share capital decreased by £9m reflecting the net impact of share buy-backs over and above new issuances in relation to the exercise of employee share options. Share premium increased by £16m from the exercise of employee options. The capital redemption reserve increased by £10m representing the nominal value of the share buy-backs.

Retained earnings decreased £5m. Reductions primarily arose from external dividends paid of £1,438m, the total cost of share repurchases of £173m and a net share based payments impact of £119m. The reductions were largely offset by profit attributable to equity holders of the parent of £1,718m.

Movements in other reserves, except the capital redemption reserve, reflect the relevant amounts recorded in the consolidated statement of recognised income and expense on page 80.

Minority interests increased £1,348m to £10,533m (2007: £9,185m). The increase primarily reflects a preference share issuance by Barclays Bank PLC of £1,431m.

  Notes to the Condensed Consolidated Interim Financial Statements

27.    Analysis of Statement of Recognised Income and Expense

	Half Year Ended
	30.06.08	31.12.07	30.06.07
Available for Sale Reserve	£m	£m	£m
- Net (losses)/gains from changes in fair value	(629)	284	200
- Losses transferred to net profit due to impairment	84	13	-
- Net gains transferred to net profit on disposal	(120)	(402)	(161)
- Net losses transferred to net profit due to fair value hedging	5	12	56
Net movements in available for sale reserve	(660)	(93)	95
Cash Flow Hedging Reserve
- Net (losses)/gains from changes in fair value	(638)	526	(420)
- Net losses transferred to net profit	65	113	140
Net movements in cash flow hedging reserve	(573)	639	(280)
Net movements in currency translation reserve	(500)	102	(48)
Tax	381	17	37
Other movements	22	(1)	23
Amounts included directly in equity	(1,330)	664	(173)
Profit after tax	2,134	2,152	2,943
Total recognised income and expense	804	2,816	2,770

The consolidated statement of recognised income and expense reflects all items of income and expense for the period, including items taken directly to equity. Movements in individual reserves are shown including amounts which relate to minority interests; the impact of such amounts is then reflected in the amount attributable to such interests. Movements in individual reserves are also shown on a pre-tax basis with any related tax recorded on the separate tax line.

The available for sale reserve reflects gains or losses arising from the change in fair value of available for sale financial assets until disposal. The exceptions to reflect fair value movements through the income statement are impairment losses, gains or losses transferred to the income statement due to fair value hedge accounting and foreign exchange gains or losses on monetary items such as debt securities. When an available for sale asset is impaired or derecognised, the cumulative gain or loss previously recognised in the available for sale reserve is transferred to the income statement. The loss of £629m (2007: gain of £200m) from changes in fair value reflects the downturn across the US sub-prime market and increases in European and Japanese interest rates. The decrease in net gains transferred to net profit is primarily due to the lower levels of disposals.

Cash flow hedging aims to minimise exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss. The fair value gain or loss associated with the effective portion of the hedge is initially recognised in shareholders' equity, and recycled to the income statement in the periods when the hedged item will affect profit or loss. Any ineffective portion of the gain or loss on the hedging instrument is recognised in the income statement immediately. The current period movement in the cash flow hedge reserve relates to a reduction in the fair value of interest rate swaps used in cash flow hedging due to increases in interest rates.

Exchange differences arising on the net investments in foreign operations and effective hedges of net investments are recognised in the currency translation reserve and transferred to the income statement on the disposal of the net investment. The movement in the first half of 2008 primarily reflects the impact of changes in the value of the Rand, Yen, Euro and Swiss Franc against Sterling. These movements reflect both the Group and minority interests in Absa Group Limited, the value of other currency movements on net investments which are hedged on a post-tax basis and net investments which are economically hedged through preference share capital that is not revalued for accounting purposes.

  Notes to the Condensed Consolidated Interim Financial Statements

28.    Contingent Liabilities and Commitments

	As at 30.06.08	As at 31.12.07	As at 30.06.07
	£m	£m	£m
Acceptances and endorsements	473	365	295
Guarantees and letters of credit pledged as collateral security	51,439	35,692	33,445
Other contingent liabilities	9,804	9,717	7,757
Contingent liabilities	61,716	45,774	41,497
Documentary credits and other short-term trade related transactions	843	522	511
Undrawn note issuance and revolving underwriting facilities:
Forward asset purchases and forward deposits placed	204	283	165
Standby facilities, credit lines and other	209,512	191,834	194,134
Commitments	210,559	192,639	194,810

Guarantees and letters of credit pledged as collateral security have increased due to the expansion of Barclays Global Investors business activity and the selected support of liquidity products.

Standby facilities, credit lines and other have increased primarily due to the acquisition of Discover's UK credit card business, Goldfish.

  Notes to the Condensed Consolidated Interim Financial Statements

29.    Legal Proceedings

Barclays has for some time been party to proceedings, including a class action, in the United States against a number of defendants following the collapse of Enron; the class action claim is commonly known as the Newby litigation. On 20th July 2006, Barclays received an Order from the United States District Court for the Southern District of Texas Houston Division which dismissed the claims against Barclays PLC, Barclays Bank PLC and Barclays Capital Inc. in the Newby litigation. On 4th December 2006, the Court stayed Barclays dismissal from the proceedings and allowed the plaintiffs to file a supplemental complaint. On 19th March 2007, the United States Court of Appeals for the Fifth Circuit issued its decision on an appeal by Barclays and two other financial institutions contesting a ruling by the District Court allowing the Newby litigation to proceed as a class action. The Court of Appeals held that because no proper claim against Barclays and the other financial institutions had been alleged by the plaintiffs, the case could not proceed against them. The plaintiffs applied to the United States Supreme Court for a review of this decision. On 22nd January 2008, the United States Supreme Court denied the plaintiffs' request for review. Following the Supreme Court's decision, the District Court ordered a further briefing concerning the status of the plaintiffs' claims. Barclays is seeking the dismissal of the plaintiffs' claims. 

Barclays considers that the Enron related claims against it are without merit and is defending them vigorously. It is not possible to estimate Barclays possible loss in relation to these matters, nor the effect that they might have upon operating results in any particular financial period.

Barclays has been in negotiations with the staff of the US Securities and Exchange Commission with respect to a settlement of the Commission's investigations of transactions between Barclays and Enron. Barclays does not expect that the amount of any settlement with the Commission would have a significant adverse effect on its financial position or operating results.

Like other UK financial services institutions, Barclays faces numerous County Court claims and complaints by customers who allege that its unauthorised overdraft charges either contravene the Unfair Terms in Consumer Contracts Regulations 1999 ('UTCCR') or are unenforceable penalties or both. In July 2007, by agreement with all parties, the OFT commenced proceedings against seven banks and one building society including Barclays, to resolve the matter by way of a 'test case' process (the 'test case'). Preliminary issues hearings took place in January / February and July 2008. In relation to the January / February hearing the Judge found in favour of the banks on the issue of the penalty doctrine, and in favour of the OFT on the issue of the applicability of the UTCCR. The OFT is not pursuing an appeal in relation to the penalty doctrine. The banks have been granted permission to appeal the decision in relation to the applicability of the UTCCR. The Court of Appeal proceedings are likely to be heard in the Autumn of 2008 and this will dictate the further course of the action. There are likely to be further hearings and the proceedings may take a significant period of time to conclude. Pending resolution of the test case process, existing and new claims in the County Courts remain stayed, and there is an FSA waiver of the complaints handling process and a standstill of Financial Ombudsman Service decisions. Barclays is defending the test case vigorously. It is not practicable to estimate Barclays possible loss in relation to these matters, nor the effect that they may have upon operating results in any particular financial period. 

Barclays is engaged in various other litigation proceedings both in the United Kingdom and a number of overseas jurisdictions, including the United States, involving claims by and against it which arise in the ordinary course of business. Barclays does not expect the ultimate resolution of any of the proceedings to which Barclays is party to have a significant adverse effect on the financial position of the Group and Barclays has not disclosed the contingent liabilities associated with these claims either because they cannot reasonably be estimated or because such disclosure could be prejudicial to the conduct of the claims.

  Notes to the Condensed Consolidated Interim Financial Statements

30.    Competition and Regulatory Matters

The scale of regulatory change remains challenging, arising in part from the implementation of some key European Union ('EU') directives. Many changes to financial services legislation and regulation have come into force in recent years and further changes will take place in the near future. Concurrently, there is continuing political and regulatory scrutiny of the operation of the retail banking and consumer credit industries in the UK and elsewhere. The nature and impact of future changes in policies and regulatory action are not predictable and beyond the Group's control but could have an impact on the Group's businesses and earnings. In June 2005, an inquiry into retail banking in all of the then 25 Member States was launched by the European Commission's Directorate General for Competition. The inquiry looked at retail banking in Europe generally. In January 2007, the European Commission announced that the inquiry had identified barriers to competition in certain areas of retail banking, payment cards and payment systems in the EU. The European Commission indicated it will use its powers to address these barriers, and will encourage national competition authorities to enforce European and national competition laws where appropriate. Any action taken by the European Commission and national competition authorities could have an impact on the payment cards and payment systems businesses of the Group and on its retail banking activities in the EU countries in which it operates.

In September 2005, the OFT received a super-complaint from the Citizens Advice Bureau relating to payment protection insurance ('PPI'). As a result, the OFT commenced a market study on PPI in April 2006. In October 2006 the OFT announced the outcome of the market study and the OFT referred the PPI market to the UK Competition Commission for an in-depth inquiry in February 2007. The Competition Commission published its provisional findings on 5th June 2008 in which it indicated that there was a lack of competition in the UK PPI market. The commission will now consult on the provisional findings and remedies and intends to publish its final report at the end of 2008. In October 2006, the FSA also published the outcome of its broad industry thematic review of PPI sales practices in which it concluded that some firms fail to treat customers fairly. The Group has cooperated fully with these investigations and will continue to do so.

The OFT has carried out investigations into Visa and MasterCard credit card interchange rates. The decision by the OFT in the MasterCard interchange case was set aside by the Competition Appeals Tribunal in June 2006. The OFT's investigation in the Visa interchange case is at an earlier stage and a second MasterCard interchange case is ongoing. The outcome is not known but these investigations may have an impact on the consumer credit industry in general and therefore on the Group's business in this sector. In February 2007, the OFT announced that it was expanding its investigation into interchange rates to include debit cards.

In April 2007, the UK consumer interest association known as Which? submitted a super-complaint to the OFT pursuant to the Enterprise Act 2000. The super-complaint criticises the various ways in which credit card companies calculate interest charges on credit card accounts. In June 2007, the OFT announced a new programme of work with the credit card industry and consumer bodies in order to make the costs of credit cards easier for consumers to understand. This OFT decision follows the receipt by the OFT of the super-complaint from Which?. This new work will explore the issues surrounding the costs of credit for credit cards including purchases, cash advances, introductory offers and payment allocation. On 11th February 2008, the OFT announced its recommendations, which include the introduction of an FSA price comparison website, improvements to customer information in summary boxes and the use of standard terminology.

  Notes to the Condensed Consolidated Interim Financial Statements

30.    Competition and Regulatory Matters (continued)

In September 2006, the OFT announced that it had decided to undertake a fact find on the application of its statement on credit card fees to current account unauthorised overdraft fees. The fact find was completed in March 2007. On 29th March 2007, the OFT announced its decision to conduct a formal investigation into the fairness of bank current account charges. The OFT initiated a market study into personal current accounts ('PCAs') in the UK on 26th April 2007. The study's focus was PCAs but it also included an examination of other retail banking products, in particular savings accounts, credit cards, personal loans and mortgages in order to take into account the competitive dynamics of UK retail banking. On 16th July 2008, the OFT published its market study report, in which it concluded that certain features of the UK PCA market were not working well for consumers. The OFT reached the provisional view that some form of regulatory intervention is necessary in the UK PCA market. On 16th July 2008, the OFT also announced a consultation to seek views on the findings and possible measures to address the issues raised in its report. Barclays has participated fully in the market study process and will continue to do so. The consultation period closes on 31st October 2008.

US laws and regulations require compliance with US economic sanctions, administered by the Office of Foreign Assets Control, against designated foreign countries, nationals and others. HM Treasury regulations similarly require compliance with sanctions adopted by the UK government. The Group has been conducting an internal review of its conduct with respect to US dollar payments involving countries, persons and entities subject to these sanctions and has been reporting to governmental authorities about the results of that review. The Group received inquiries relating to these sanctions and certain US dollar payments processed by its New York branch from the New York County District Attorney's Office and the US Department of Justice, which along with other authorities, has been reported to be conducting investigations of sanctions compliance by non-US financial institutions. The Group has responded to those inquiries and is cooperating with the regulators, the Department of Justice and the District Attorney's Office in connection with their investigations of Barclays conduct with respect to sanctions compliance. Barclays has also been keeping the FSA informed of the progress of these investigations and Barclays internal review. Barclays review is ongoing. It is currently not possible to predict the ultimate resolution of the issues covered by Barclays review and the investigations, including the timing and potential financial impact of any resolution, which could be substantial.

31.    Acquisitions and Disposals

Acquisitions

On 31st March 2008, Barclays completed the acquisition of Discover's UK credit card business, Goldfish, for a cash consideration of £38m (including attributable costs of £3m), for fair value of net assets of £127m, which gave rise to a gain on acquisitions of £89m. 

On 7th March 2008, Absa acquired, for a consideration of £5m a further 24% of Meeg Bank Limited, bringing Absa's shareholding up to 74%. Meeg Bank is based in South Africa.

Disposals

On 31st January 2008, Barclays completed the sale of Barclays Global Investors Japan Trust & Banking Co. Ltd, a Japanese trust administration and custody operation.

  Notes to the Condensed Consolidated Interim Financial Statements

32.    Related Party Transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the Group's pension schemes, as well as other persons.

Subsidiaries

Transactions between Barclays PLC and subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Group financial statements. 

Associates, Joint Ventures and Other Entities 

The Group provides banking services to its associates, joint ventures and Group pension funds (principally the UK Retirement Fund), providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Group companies, principally within Barclays Global Investors, also provides investment management and custodian services to the Group pension schemes. The Group also provides banking services for unit trusts and investment funds managed by Group companies and are not individually material.

Key Management Personnel

The Group provides banking services to Directors and other key management personnel and persons connected to them. No related parties transactions have taken place in the first six months of the current financial year that have materially affected the financial position or the performance of the Group during that period; and there were no material changes in the related parties transactions described in the last Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.

  Notes to the Condensed Consolidated Interim Financial Statements

32.    Related Party Transactions (continued)

All of these transactions are conducted on the same terms to third-party transactions and are not individually material.

Amounts included, in aggregate, by category of related party entity are as follows:

Six months ending 30th June 2008	Associates	Joint ventures	Entities under common directorship	Pension funds unit trusts and investment funds	Total
Income Statement	£m	£m	£m	£m	£m
Interest received	-	60	-	-	60
Interest paid	(1)	(22)	-	-	(23)
Fees received for services rendered (including investment management and custody and commissions)	1	9	-	4	14
Fees paid for services provided	(32)	(67)	-	-	(99)
Principal transactions	5	19	(44)	-	(20)
Assets
Loans and advances to banks and customers	129	1,512	67	-	1,708
Derivative transactions	-	4	38	-	42
Other assets	220	124	5	8	357
Liabilities
Deposits from banks	-	-	-	-	-
Customer accounts	-	142	102	11	255
Derivative transactions	-	11	87	-	98
Other liabilities	3	16	-	25	44

The amounts reported in prior periods have been restated to reflect new related parties.

  Notes to the Condensed Consolidated Interim Financial Statements

32.    Related Party Transactions (continued)

Six months ending 31st December 2007	Associates	Joint ventures	Entities under common directorship	Pension funds unit trusts and investment funds	Total
Income Statement	£m	£m	£m	£m	£m
Income statement:
Interest received	4	44	1	-	49
Interest paid	-	(28)	(1)	-	(29)
Fees received for services rendered (including investment management and custody and commissions)	-	26	-	18	44
Fees paid for services provided	(25)	(20)	-	-	(45)
Principal transactions	(24)	47	(10)	-	13
Assets
Loans and advances to banks and customers	142	1,285	40	-	1,467
Derivative transactions	-	4	36	-	40
Other assets	213	106	-	14	333
Liabilities
Deposits from banks	11	-	-	-	11
Customer accounts	-	61	33	12	106
Derivative transactions	-	10	50	-	60
Other liabilities	4	125	-	-	129

The amounts reported in prior periods have been restated to reflect new related parties.

  Notes to the Condensed Consolidated Interim Financial Statements

32.    Related Party Transactions (continued)

Six months ending 30th June 2007	Associates	Joint ventures	Entities under common directorship	Pension funds unit trusts and investment funds	Total
Income Statement	£m	£m	£m	£m	£m
Interest received	1	44	-	-	45
Interest paid	(1)	(30)	-	-	(31)
Fees received for services rendered (including investment management and custody and commissions)	1	8	-	8	17
Fees paid for services provided	(27)	(58)	-	-	(85)
Principal transactions	(3)	(2)	(6)	-	(11)
Assets
Loans and advances to banks and customers	629	461	69	-	1,159
Derivative transactions	-	-	-	484	484
Other assets	90	138	-	12	240
Liabilities
Deposits from banks	6	-	-	-	6
Customer accounts	16	10	2	41	69
Derivative transactions	3	-	8	-	11
Other liabilities	6	16	-	-	22

No guarantees, pledges or commitments have been given or received in respect of these transactions for the periods ending 30th June 2008, 31st December 2007 and 30th June 2007.

There are no leasing transactions between related parties for the periods ending 30th June 2008, 31st December 2007 and 30th June 2007.

Derivatives transacted on behalf of the Pensions Funds Units Trusts and Investment Funds amounted to £nil (2007: £484m).

During the period Barclays paid £1m (2007: £2m) charitable donations through the Charities Aid Foundation, a registered charitable organisation, in which a Director of the Company is a Trustee.

The amounts reported in prior periods have been restated to reflect new related parties.

  Notes to the Condensed Consolidated Interim Financial Statements

33.    Events Occurring after the Balance Sheet Date

In July 2008 Barclays raised capital of approximately £4.5bn through the issue of 1,576 million new ordinary shares.

On 1st July 2008 Barclays acquired 100% of the shares of the Russian Bank, Expobank, for a consideration of approximately $745m (£373m).

On 8th July 2008 Barclays announced it would close its FirstPlus unit to new business in August 2008.

On 5th August 2008 Barclays announced a sale of Barclays Life Assurance Company Limited to Swiss Reinsurance Company for a consideration of approximately £753m. 

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting

The following section analyses the Group's performance by business. For management and reporting purposes, Barclays is organised into the following business groupings:

Global Retail and Commercial Banking

UK Retail Banking 

Barclays Commercial Bank 

Barclaycard

Global Retail and Commercial Banking - Western Europe

Global Retail and Commercial Banking - Emerging Markets

Global Retail and Commercial Banking - Absa

Investment Banking and Investment Management

Barclays Capital 

Barclays Global Investors

Barclays Wealth

Head Office Functions and Other Operations

UK Retail Banking 

UK Retail Banking comprises Personal Customers, Home Finance, Local Business, Consumer Lending and Barclays Financial Planning. This cluster of businesses aims to build broader and deeper relationships with its Personal and Local Business customers through providing a wide range of products and financial services. Personal Customers and Home Finance provide access to current account and savings products, Woolwich branded mortgages and general insurance. Consumer Lending provides unsecured loan and protection products and Barclays Financial Planning provides investment advice and products. Local Business provides banking services, including money transmission, to small businesses. 

Barclays Commercial Bank

Barclays Commercial Bank provides banking services to organisations with an annual turnover of more than £1m. Customers are served via a network of relationship and industry sector specialists, which provides solutions constructed from a comprehensive suite of banking products, support, expertise and services, including specialist asset financing and leasing facilities. Customers are also offered access to the products and expertise of other businesses in the Group, particularly Barclays Capital, Barclaycard and Barclays Wealth.

Barclaycard

Barclaycard is a multi-brand credit card and consumer lending business which also processes card payments for retailers and merchants and issues credit and charge cards to corporate customers and the UK Government. It is one of Europe's leading credit card businesses and has an increasing presence in the United States.

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting (continued)

In the UK, Barclaycard comprises Barclaycard UK Cards, Barclaycard Partnerships (SkyCard, Thomas Cook, Argos and Solution Personal Finance), Barclays Partner Finance and FirstPlus.

Outside the UK, Barclaycard provides credit cards in the United States, Germany, South Africa (through management of the Absa credit card portfolio) and in the Nordic region, where Barclaycard operates through Entercard, a joint venture with Swedbank.

Barclaycard works closely with other parts of the Group, including UK Retail Banking, Barclays Commercial Bank and Global Retail and Commercial Banking - Western Europe and Global Retail and Commercial Banking - Emerging Markets, to leverage their distribution capabilities.

Global Retail and Commercial Banking - Western Europe

GRCB - Western Europe encompasses Barclays Global Retail and Commercial Banking as well as Barclaycard operations in Spain, Italy, Portugal, France and Greece. GRCB - Western Europe serves customers through a variety of distribution channels including more than 980 distribution points and over 880 ATMs. GRCB - Western Europe provides a variety of products including retail mortgages, current and deposit accounts, commercial lending, unsecured lending, credit cards, investments, and insurance serving the needs of Barclays retail, mass affluent, and corporate customers. 

Global Retail and Commercial Banking - Emerging Markets 

GRCB - Emerging Markets encompasses Barclays Global Retail and Commercial Banking, as well as Barclaycard operations, in 14 countries organised in 6 geographic areas: India and Indian Ocean (India, Mauritius and Seychelles); Middle East and North Africa (UAE and Egypt); East and West Africa (Ghana, Tanzania, Uganda and Kenya); Southern Africa (Botswana, Zambia and Zimbabwe); Russia; and Pakistan (from 23rd July 2008). GRCB - Emerging Markets serves its customers through a network of over 870 branches and sales centres, and more than 890 ATMs. GRCB - Emerging Markets provides a variety of traditional retail and commercial products including retail mortgages, current and deposit accounts, commercial lending, unsecured lending, credit cards, treasury and investments. In addition to this, it provides specialist services such as Sharia compliant products and mobile banking.

Global Retail and Commercial Banking - Absa 

GRCB - Absa represents Barclays consolidation of Absa, excluding Absa Capital which is included as part of Barclays Capital and Absa Card which is included as part of Barclaycard. Absa Group Limited is one of South Africa's largest financial services organisations serving personal, commercial and corporate customers predominantly in South Africa. GRCB - Absa serves retail customers through a variety of distribution channels and offers a full range of banking services, including current and deposit accounts, mortgages, instalment finance, credit cards, bancassurance products and wealth management services. It also offers customised business solutions for commercial and large corporate customers. 

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting (continued)

Barclays Capital

Barclays Capital is a leading global investment bank which provides large corporate, institutional and government clients with solutions to their financing and risk management needs.

Barclays Capital services a wide variety of client needs, from capital raising and managing foreign exchange, interest rate, equity and commodity risks, through to providing technical advice and expertise. Activities are organised into three principal areas: Rates, which includes fixed income, foreign exchange, commodities, emerging markets, money markets, prime services and equity products; Credit, which includes primary and secondary activities for loans and bonds for investment grade, high yield and emerging market credit, as well as hybrid capital products, asset based finance, mortgage backed securities, credit derivatives, structured capital markets and large asset leasing; and Private Equity. Barclays Capital includes Absa Capital, the investment banking business of Absa. Barclays Capital works closely with all other parts of the Group to leverage synergies from client relationships and product capabilities.

Barclays Global Investors

Barclays Global Investors (BGI) is one of the world's largest asset managers and a leading global provider of investment management products and services. 

BGI offers structured investment strategies such as indexing, global asset allocation and risk controlled active products including hedge funds and provides related investment services such as securities lending, cash management and portfolio transition services. In addition, BGI is the global leader in assets and products in the exchange traded funds business, with over 335 funds for institutions and individuals trading globally. BGI's investment philosophy is founded on managing all dimensions of performance: a consistent focus on controlling risk, return and cost. BGI collaborates with the other Barclays businesses, particularly Barclays Capital and Barclays Wealth, to develop and market products and leverage capabilities to better serve the client base.

Barclays Wealth

Barclays Wealth serves high net worth, affluent and intermediary clients worldwide, providing private banking, asset management, stockbroking, offshore banking, wealth structuring and financial planning services and manages the closed life assurance activities of Barclays and Woolwich in the UK. 

Barclays Wealth works closely with all other parts of the Group to leverage synergies from client relationships and product capabilities.

Head Office Functions and Other Operations

Head Office Functions and Other Operations comprises head office and central support functions, businesses in transition and consolidation adjustments.

Head office and central support functions comprises the following areas: Executive Management, Finance, Treasury, Corporate Affairs, Human Resources, Strategy and Planning, Internal Audit, Legal, Corporate Secretariat, Property, Tax, Compliance and Risk. Costs incurred wholly on behalf of the businesses are recharged to them.

Businesses in transition principally relate to certain lending portfolios that are centrally managed with the objective of maximising recovery from the assets. Consolidation adjustments largely reflect the elimination of inter-segment transactions.

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting (continued)

Group Reporting Changes In 2008

Barclays announced on 22nd July 2008 the impact of certain changes in Group structure and reporting on the 2007 results. There was no impact on the Group income statement or balance sheet.

The businesses previously managed and reported as International Retail and Commercial Banking - excluding Absa are now reported and managed separately as Global Retail and Commercial Banking - Western Europe and Global Retail and Commercial Banking - Emerging Markets going forward.

Barclays Commercial Bank. The Marine Finance business, previously part of Barclaycard, is now managed and reported within Barclays Commercial Bank.

Barclaycard. The Absa credit card portfolio, previously part of International Retail and Commercial Banking - Absa is now managed and reported within Barclaycard. Certain credit card portfolios previously part of Barclaycard are now managed and reported as part of Global Retail and Commercial Banking - Western Europe. The Marine Finance business, previously part of Barclaycard is now managed and reported within Barclays Commercial Bank.

Global Retail and Commercial Banking - Western Europe. Certain credit card portfolios previously part of Barclaycard are now managed and reported as part of Global Retail and Commercial Banking - Western Europe.

International Retail and Commercial Banking - Absa. This business will be known going forward as Global Retail and Commercial Banking - Absa. The Absa credit card portfolio previously part of Global Retail and Commercial Banking - Absa is now managed and reported within Barclaycard.

Certain expenses, assets and staff previously reported within International Retail and Commercial Banking - excluding Absa have been allocated across UK Retail Banking, Barclays Commercial Bank, Barclaycard, Global Retail and Commercial Banking - Western Europe, Global Retail and Commercial Banking - Emerging Markets and Global Retail and Commercial Banking - Absa.

Certain pension assets and liabilities have been reclassified from Head Office and Other Operations to the other businesses in the Group.

UK Banking which previously reflected UK Retail Banking and Barclays Commercial Bank combined is no longer reported as a separate segment.

The structure remains unchanged for Barclays Capital, Barclays Global Investors, Barclays Wealth and Head Office and Other Operations.

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting (continued)

	UK Retail Banking	Barclays Commercial Bank	Barclaycard	GRCB - Western Europe
Six months ending 30th June 2008	£m	£m	£m	£m
Income from external customers, net of insurance claims	2,204	1,316	1,377	643
Inter-segment income	(28)	33	41	(2)
Total income net of insurance claims	2,176	1,349	1,418	641
Business segment performance before tax	690	702	388	115
	UK Retail Banking	Barclays Commercial Bank	Barclaycard	GRCB - Western Europe
Six months ending 31st December 2007	£m	£m	£m	£m
Income from external customers, net of insurance claims	2,210	1,297	1,211	500
Inter-segment income	(34)	10	64	(3)
Total income net of insurance claims	2,176	1,307	1,275	497
Business segment performance before tax	629	651	304	91
	UK Retail Banking	Barclays Commercial Bank	Barclaycard	GRCB - Western Europe
Six months ending 30th June 2007	£m	£m	£m	£m
Income from external customers, net of insurance claims	2,167	1,249	1,179	446
Inter-segment income	(46)	8	76	(6)
Total income net of insurance claims	2,121	1,257	1,255	440
Business segment performance before tax	646	706	299	105

  Notes to the Condensed Consolidated Interim Financial Statements

34.    Segmental Reporting (continued)

GRCB - Emerging Markets	GRCB - Absa	Barclays Capital	Barclays  Global Investors	Barclays Wealth	Head Office Functions and Other Operations	Total
£m	£m	£m	£m	£m	£m	£m
410	1,032	3,288	984	706	(117)	11,843
-	15	123	3	(38)	(147)	-
410	1,047	3,411	987	668	(264)	11,843
52	298	524	265	182	(462)	2,754
GRCB - Emerging Markets	GRCB - Absa	Barclays Capital	Barclays  Global Investors	Barclays Wealth	Head Office Functions and Other Operations	Total
£m	£m	£m	£m	£m	£m	£m
312	1,031	2,868	978	684	7	11,098
-	11	98	5	(32)	(119)	-
312	1,042	2,966	983	652	(112)	11,098
40	326	675	346	134	(221)	2,975
GRCB - Emerging Markets	GRCB - Absa	Barclays Capital	Barclays  Global Investors	Barclays Wealth	Head Office Functions and Other Operations	Total
£m	£m	£m	£m	£m	£m	£m
221	941	4,066	937	659	37	11,902
-	16	87	6	(24)	(117)	-
221	957	4,153	943	635	(80)	11,902
60	271	1,660	388	173	(207)	4,101

  Other Information

Share Capital

The Group manages its debt and equity capital actively. The Group's authority to buy back ordinary shares (up to 984.9 million ordinary shares) was renewed at the 2008 Annual General Meeting. The Group will seek to renew its authority to buy back ordinary shares at the 2009 Annual General Meeting to provide additional flexibility in the management of the Group's capital resources.

At the 2008 Annual General Meeting, shareholders approved the creation of sterling, dollar, euro and yen preference shares ('Preference Shares') in order to provide the Group with more flexibility in managing its capital resources. No preference shares have been issued.

During the first half of 2008 Barclays repurchased in the market 36,150,000 of its ordinary shares of 25p each at a total cost of £171,923,243. This was the completion of the repurchase programme in order to minimise the dilutive effect on its existing shareholders of the issuance of a total of 336,805,556 Barclays ordinary shares to Temasek Holdings and China Development Bank in 2007.

Barclays purchased all of its staff shares in issue following approval for such purchase being given at the 2008 Annual General Meeting at a total cost of £1,023,054.

Group Share Schemes

The independent trustees of the Group's share schemes may make purchases of Barclays PLC ordinary shares in the market at any time or times following this announcement of the Group's results for the purposes of those schemes' current and future requirements. The total number of ordinary shares purchased would not be material in relation to the issued share capital of Barclays PLC.

Dividend Information

For qualifying US and Canadian resident ADR holders, the interim dividend of 11.5p per ordinary share becomes 46.0p per ADS (representing four shares). The ADR depositary will mail the interim dividend on 1st October 2008 to ADR holders on the record on 22nd August 2008.

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, including members of Barclays Sharestore, provided that they neither live in nor 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, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom, or, by telephoning 0871 384 2055 (calls to this number are charged at 8p per minute if using a BT landline. Other telephony provider costs may vary). The completed form should be returned to The Plan Administrator on or before 10th September 2008 for it to be effective in time for the payment of the dividend on 1st October 2008. Shareholders who are already in the plan need take no action unless they wish to change their instructions in which case they should write to The Plan Administrator.

  Other Information

General Information

The information in this announcement, which was approved by the Board of Directors on 6th August 2008, does not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985 (the 'Act'). Statutory accounts for the year ended 31st December 2007, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 235 of the Act and which did not make any statements under Section 237 of the Act, have been delivered to the Registrar of Companies in accordance with Section 242 of the Act.

Registered Office

1 Churchill Place, London, E14 5HP, United Kingdom. Tel: [phone].

Company number: 48839.

Website

www.barclays.com

Registrar 

The Registrar to Barclays PLC, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom. Tel: [phone] (calls to this number are charged at 8p per minute if using a BT landline. Other telephony provider costs may vary) or [phone] from overseas.

Listing

The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Trading on the New York Stock Exchange is in the form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary shares of 25p each and is evidenced by an ADR. The ADR depositary is The Bank of New York Mellon whose international telephone number is [phone], whose domestic telephone number is 1-888-BNY-ADRS and whose address is The Bank of New York Mellon, Investor Relations, PO Box 11258, Church Street Station, New York, NY 10286-1258. 

On or around 11th August 2008, JPMorgan Chase Bank, N.A will become the ADR depositary. Their international telephone number is [phone], domestic telephone number is 1-800-990-1135 and address is JPMorgan Chase Bank, N.A., PO Box 64504, St. Paul, MN 55164-0504, USA.

Filings with the SEC

The results will be furnished as a Form 6-K to the US Securities and Exchange Commission (SEC) as soon as practicable following the publication of these results.

Statutory accounts for the year ended 31st December 2007, which also include certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the SEC, can be obtained from Corporate Communications, Barclays Bank PLC, 200 Park Avenue, New York, NY 10166, United States of America or from the Director, Investor Relations at Barclays registered office address, shown above. Copies of the form 20-F are also be available from the Barclays Investor Relations website (details below) and from the SEC's website (www.sec.gov).

  Other Information

General Information (continued)

Results Timetable

Item	Date
Ex Dividend Date	Wednesday, 20th August 2008
Dividend Record Date	Friday, 22nd August 2008
Dividend Payment Date	Wednesday, 1st October 2008
Interim Management Statement1	Tuesday, 18th November 2008
2008 Preliminary Results Announcement1	Tuesday, 17th February 2009

Economic Data

	30.06.08	31.12.07	30.06.07
Period end - US$/£	1.99	2.00	2.01
Average - US$/£	1.98	2.00	1.97
Period end - €/£	1.26	1.36	1.49
Average - €/£	1.29	1.46	1.48
Period end - ZAR/£	15.56	13.64	14.12
Average - ZAR/£	15.15	14.11	14.11

For Further Information Please Contact

Investor Relations	Media Relations
Mark Merson/John McIvor	Alistair Smith/Robin Tozer
[phone]/2929	[phone]/6586

More information on Barclays can be found on our website at the following address: 

www.barclays.com/investorrelations

1    Note that these announcement dates are provisional and subject to change

  Other Information

Glossary of Terms

'Income' refers to total income net of insurance claims, unless otherwise specified.

'Cost:income ratio' is defined as operating expenses compared to total income net of insurance claims.

'Cost:net income ratio' is defined as operating expenses compared to total income net of insurance claims less impairment charges.

'Compensation:net income ratio' is defined as staff compensation based costs compared to total income net of insurance claims less impairment charges.

'Return on average economic capital' is defined as attributable profit compared to average economic capital.

'Average net income generated per member of staff' is defined as total operating income compared to the average of staff numbers for the reporting period.

'Risk tendency' is a statistical estimate of the average loss for each loan portfolio for a 12-month period, taking into account the size of the portfolio and its risk characteristics under current economic conditions, and is used to track the change in risk as the portfolio of loans changes over time.

'Economic profit' is defined as profit after tax and minority interests less capital charge (average shareholder's equity excluding minority interests multiplied by the Group cost of capital.)

'Daily Value at Risk (DVaR)' is an estimate of the potential loss which might arise from unfavourable market movements, if the current positions were to be held unchanged for one business day, measured to a confidence level of 98%.

Absa Definitions

'Absa Group Limited' refers to the consolidated results of the South African group of which the parent company is listed on the Johannesburg Stock Exchange (JSE Limited) in which Barclays owns a controlling stake.

'Absa' refers to the results for Absa Group Limited as consolidated into the results of Barclays PLC; translated into Sterling with adjustments for amortisation of intangible assets, certain head office adjustments, transfer pricing and minority interests. 

'Absa Capital' is the portion of Absa's results that is reported by Barclays within Barclays Capital.

'Absa Card' is the portion of Absa's results that is reported by Barclays within Barclaycard.

  Index

Accounting policies	76		Legal proceedings	104
Acquisitions and disposals	106		Loans and advances to banks	95
Allowance for impairment on			Loans and advances to customers	96
loans and advances	54,97		Margins (business)	71
Available for sale financial instruments	97		Market risk	60
Average balances	71		Net claims and benefits incurred on
Balance sheet (consolidated interim)	10, 78		insurance contracts	85
Barclaycard	16		Net fee and commission income	83
Barclays Capital	24		Net interest income	83
Barclays Capital credit market exposures	35, 94		Net premiums from insurance contracts	84
Barclays Commercial Bank	14		Operating expenses	87
Barclays Global Investors	26		Other income	85
Barclays Wealth	28		Other information	118
Business margins	71		Performance highlights	3
Basis of preparation	76		Potential credit risk loans	55
Business net interest income	72		Principal risks and uncertainties	32
Capital ratios	61		Principal transactions	84
Capital resources	61		Profit attributable to minority interests	88
Cash flow statement (condensed consolidated interim)	81		Profit before tax	2
Chief Executive's Review	4		Profit on disposal of subsidiaries,
Competition and regulatory matters	105		associates and joint ventures	88
Contingent liabilities and commitments	103		Provisions	99
Derivative financial instruments	90		Reconciliation of business interest
Dividends on ordinary shares	89		income to group net interest income	72
Daily Value at Risk (DVaR)	60		Reconciliation of regulatory capital	62
Earnings per share	89		Related party transactions	107
Economic capital	65		Results by business	12
Economic capital demand	66		Results timetable	120
Economic capital supply	67		Retirement benefit liabilities	99
Economic data	120		Risk asset ratio	2, 61
Economic profit	68		Risk Tendency	58
- generated by business	69		Risk weighted assets	64
Events occurring after the balance sheet date	111		Segmental reporting	112
Fair value measurement of			Share capital and share premium	100,118
financial instruments	91		Share of post-tax results of associates
Filings with the SEC	119		and joint ventures	88
Finance Director's Review	6		Staff costs	87
Glossary of terms	121		Staff numbers	70
GRCB - Absa	22		Statement of Director's Responsibilities	73
GRCB - Emerging Markets	20		Statement of recognised income and
GRCB - Western Europe	18		expense (consolidated)	80, 102
Group performance	6		Subordinated liabilities	98
Group reporting changes in 2008	115		Summary of key information	2
Group share schemes	118		Tax	88
Head office functions and other			Tier 1 Capital ratio	2, 61
operations	30		Total assets	63
Impairment charges and other credit provisions	52, 86		Total shareholders' equity	101
Income statement (consolidated interim)	9, 77		UK Retail Banking	12
Independent Auditors' Review Report	74		Valuation of financial instruments	46

 

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