Interim Results - Part 3
Barclays PLC
3 August 2000
PART 3
ADDITIONAL INFORMATION (CONTINUED)
CHANGES IN REPORTING OF GROUP STRUCTURE IN 2000
From 1st January 2000, Barclaycard became a separate business unit. Retail
Financial Services now comprises Retail Customers and Wealth Management.
Within Other operations, costs relating to the central administration of
certain operational property costs have been combined with Barclays Group
Property Services under the heading Property Costs.
Comparative figures have been restated for the above changes.
ACQUISITIONS AND DISPOSALS
There have been no significant acquisitions since 31st December 1999.
Details of significant disposals in the period are set out under exceptional
items on page 18.
ACCOUNTING POLICIES
Changes to the Group's accounting policies have occurred following the
adoption in 2000 of Financial Reporting Standard 15 'Tangible Fixed Assets'
(FRS 15) and Financial Reporting Standard 16 'Current Tax' (FRS 16).
The Group has applied the transitional rules available under FRS 15. The
revalued book amounts of fixed assets will be retained without subsequent
revaluation subject to the requirement to test for impairment. This change
has had no impact on reported profit or shareholders' funds.
In accordance with FRS 16 incoming dividends, interest and other income now
exclude taxes, such as attributable tax credits, not payable wholly on
behalf of the Group. This change in policy has resulted in a reduction in
profit before tax for 1999 of £5m of which £3m occurred in the first six
months with a commensurate reduction in the tax charge. Shareholders' funds
are unchanged by this change in policy.
There have been no other significant changes to the accounting policies as
described in the 1999 Annual Report.
CHANGES IN ACCOUNTING PRESENTATION
There have been no changes in accounting presentation from that reflected in
the 1999 Annual report.
ADDITIONAL INFORMATION (CONTINUED)
REVIEW OF FINANCIAL INFORMATION BY AUDITORS
The unaudited financial information for Barclays PLC comprising pages 7, 9
and 55 has been reviewed by PricewaterhouseCoopers and their report relating
to it is included on page 59.
GROUP SHARE SCHEMES
The trustees of the Group's share schemes may make purchases of Barclays PLC
ordinary shares in the market 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.
FILINGS WITH THE SEC
This report is being furnished as a Form 6-K to the Securities and Exchange
Commission in the United States of America.
NOTES (UNAUDITED)
Half-year ended
1. Loans and advances to banks 30.6.00 31.12.99 30.6.99
£m £m £m
Banking business
Loans and advances to banks 9,708 13,095 14,239
Less - provisions (30) (24) (25)
9,678 13,071 14,214
Trading business 30,607 26,555 23,228
Total loans and advances to 40,285 39,626 37,442
banks
Of the total loans and advances to banks, placings with banks were
£36.5bn at 30th June 2000 (31st December 1999: £36.1bn, 30th June 1999:
£32.6bn). Placings with banks include reverse repos of £27.8bn (31st
December 1999: £26.0bn, 30th June 1999: £18.8bn). The majority of the
placings have a residual maturity of less than one year.
Half-year ended
2. Loans and advances to 30.6.00 31.12.99 30.6.99
customers
£m £m £m
Banking business
Loans subject to non-recourse
finance arrangements 316 333 255
Less: non returnable finance (252) (268) (245)
64 65 10
Loans and advances to 97,308 91,320 85,306
customers
Finance lease receivables 4,645 5,660 5,700
102,017 97,045 91,016
Less - provisions (2,039) (1,959) (1,982)
- interest in suspense (85) (80) (82)
99,893 95,006 88,952
Trading business 34,547 21,562 19,671
Total loans and advances to 134,440 116,568 108,623
customers
Of the total loans and advances to customers, reverse repos were £28.2bn
at 30th June 2000 (31st December 1999: £19.9bn, 30th June 1999:
£14.7bn).
Half-year ended
3. Provisions for bad and 30.6.00 31.12.99 30.6.99
doubtful debts
Credit risk provisions £m £m £m
Provisions at beginning of 1,913 1,927 1,862
period
Exchange and other adjustments 6 11 (23)
Amounts written off
United Kingdom (309) (306) (240)
Other European Union (32) (23) (21)
United States - (40) -
Rest of the World (5) (8) (13)
(346) (377) (274)
Recoveries (analysed below) 53 53 40
Sub-total 1,626 1,614 1,605
Provisions charged against
profit:
New and increased specific
provisions
United Kingdom 440 396 372
Other European Union 18 14 13
United States 18 33 12
Rest of the World 21 20 27
497 463 424
Less: Releases of specific
provisions
United Kingdom (20) (65) (49)
Other European Union (10) (11) (10)
United States (2) (1) (6)
Rest of the World (6) (10) (5)
(38) (87) (70)
Less: Recoveries
United Kingdom (45) (50) (35)
Other European Union (3) (2) (2)
United States (4) (2) (2)
Rest of the World (1) 1 (1)
(53) (53) (40)
Net specific provisions charge 406 323 314
General provision - (26) (24) 8
(release)/charge
Net credit risk charge to 380 299 322
profit
Provisions at end of period 2,006 1,913 1,927
Country risk provisions
Provisions at beginning of 70 80 81
period
Exchange and other adjustments - (11) -
Net specific provision release (4) - (2)
to profit
General provision charge to - 2 -
profit
Amounts written-off (3) (1) 1
Provisions at end of period 63 70 80
Total provisions at end of 2,069 1,983 2,007
period
Total provisions charge to 376 301 320
profit
Total provisions for bad and doubtful debts at end of period comprise:
Half-year ended
30.6.00 31.12.99 30.6.99
£m £m £m
United Kingdom 1,183 1,075 1,007
Other European Union 100 126 153
United States 41 23 30
Rest of the World 88 74 75
Specific - credit risk 1,412 1,298 1,265
Specific - country risk 6 13 15
Total specific provisions 1,418 1,311 1,280
General provisions
- credit risk 594 615 662
- country risk 57 57 65
2,069 1,983 2,007
The geographic analysis of provisions shown above is based on location
of office.
Half-year ended
4. Other assets 30.6.00 31.12.99 30.6.99
£m £m £m
Own shares 5 5 48
Balances arising from off-
balance sheet financial 12,763 13,390 12,110
instruments
Shareholders' interest in long-
term assurance fund 607 555 539
London Metal Exchange warrants
and other metals trading 190 331 385
positions
Sundry debtors 1,723 1,629 1,680
Prepayments and accrued income 2,183 2,203 2,130
17,471 18,113 16,892
'Own shares' represent Barclays PLC shares held in employee benefit
trusts that have not yet vested unconditionally with the eligible
employees.
Half-year ended
5. Other liabilities 30.6.00 31.12.99 30.6.99
£m £m £m
Obligations under finance 148 140 145
leases payable
Balances arising from off-
balance sheet financial 13,130 13,619 13,267
instruments
Short positions in securities 21,343 16,813 19,786
Current tax 521 462 537
Cash receipts from 994 1,049 -
securitisation
Sundry creditors 3,188 3,036 2,379
Accruals and deferred income 3,289 3,290 2,894
Provisions for liabilities 1,202 1,247 1,492
and charges
Dividend 295 484 262
44,110 40,140 40,762
Cash receipts from securitisation are in respect of a portfolio of
investment debt securities which did not qualify for linked presentation
under Financial Reporting Standard 5.
6. Potential credit risk lendings
The following table presents an analysis of potential credit risk
lendings in accordance with the US Securities and Exchange Commission
guidelines. Additional categories of disclosure are included, however,
to record lendings where interest continues to be accrued and where
either interest is being suspended or specific provisions have been
raised. Normal US banking practice would be to place such lendings on
non-accrual status.
The amounts, the geographical presentation of which is based on the
location of the office recording the transaction, are stated before
deduction of the value of security held, specific provisions carried or
interest suspended.
Non-performing lendings 30.6.00 31.12.99 30.6.99
£m £m £m
Non-accrual lendings:
United Kingdom 1,143 1,007 1,004
Foreign 260 244 268
Accruing lendings where
interest is being suspended:
United Kingdom 297 326 308
Foreign 103 110 131
Other accruing lendings
against which provisions have
been made:
United Kingdom 336 423 444
Foreign 112 130 124
Sub-totals:
United Kingdom 1,776 1,756 1,756
Foreign 475 484 523
Accruing lendings 90 days
overdue, against which no
provisions have been made:
United Kingdom 330 343 276
Foreign 16 18 19
Reduced rate lendings:
United Kingdom 7 6 6
Foreign - 2 -
Total non-performing lendings
United Kingdom 2,113 2,105 2,038
Foreign 491 504 542
2,604 2,609 2,580
UK non-performing lendings were at a similar level to 31st December 1999
with increases in consumer lending balances (including credit card
receivables) being offset by reductions in other portfolios.
Potential problem lendings: In addition to the above, the following
table shows lendings which are current as to payment of principal and
interest, but where serious doubt exists as to the ability of the
borrower to comply with repayment terms in the near future.
30.6.00 31.12.99 30.6.99
£bn £bn £bn
United Kingdom 0.6 0.6 0.6
Foreign 0.1 0.1 0.1
0.7 0.7 0.7
30.6.00 31.12.99 30.6.99
Credit risk provision % % %
coverage of:
Credit risk non-performing 80.3 76.4 77.9
lendings
Total potential credit risk 63.1 60.0 60.7
lendings
Half-year ended
30.6.00 31.12.99 30.6.99
Interest forgone on non- £m £m £m
performing lendings:
Interest income that would
have been recognised under 103 81 84
original contractual terms
Interest income included in (19) (18) (27)
profit
Interest forgone 84 63 57
7. Exposure to countries subject to International Monetary Fund liquidity
support programmes
Amounts outstanding, net of provisions, and commitments to
counterparties in countries which make significant use of International
Monetary Fund liquidity support programmes were as follows:
30.6.00 31.12.99 30.6.99
Asia £bn £bn £bn
Indonesia 0.1 0.1 0.1
South Korea 0.2 0.4 0.4
Thailand 0.1 0.1 0.1
0.4 0.6 0.6
Latin America
Brazil 0.8 0.8 0.9
Mexico 0.8 0.9 0.8
2.0 2.3 2.3
Of the total of £2.0bn (31st December 1999: £2.3bn, 30th June 1999:
£2.3bn), £1.2bn (31st December 1999: £1.3bn, 30th June 1999: £1.5bn) was
related to banks, £0.2bn (31st December 1999: £0.4bn, 30th June 1999:
£0.3bn) to governments and £0.6bn (31st December 1999: £0.6bn, 30th June
1999: £0.5bn) to other corporate bodies, including project finance
companies, and was mainly in respect of loans, off-balance sheet
financial instruments and debt securities. Off-balance sheet financial
instruments and debt securities are marked to market.
The Group has a Brazilian associate, Banco Barclays e Galicia SA, which
is equity accounted. At 30th June 2000 the 50% holding was included in
the balance sheet at a value of £27m (31st December 1999: £33m, 30th
June 1999: £48m), which is included in the figures above.
During the half year the general provision in respect of country
transfer risk arising from the Group's business world wide, including
exposure in these countries, remained unchanged at £57m at 30th June
2000. This is in addition to £594m of general provision held against
credit risk.
8. Cross-border outstandings
At 30th June 2000, countries where Barclays cross-border outstandings
exceeded 1% of assets were Germany, United States, France and the
Netherlands. In this context, assets comprise total assets as presented
in the consolidated balance sheet and include acceptances. On this
basis total assets amounted to £287,852m at 30th June 2000 (31st
December 1999: £256,308m).
Cross-border outstandings exceeding 1% As % Total
of assets of assets £m
At 30th June 2000
Germany 2.1 6,157
United States 1.8 5,131
France 1.6 4,730
Netherlands 1.2 3,369
At 31st December 1999
Germany 2.5 6,438
United States 2.1 5,281
France 1.6 4,022
Switzerland 1.1 2,756
Netherlands 1.1 2,740
As at 30th June 2000, the countries with aggregate cross-border
outstandings between 0.75% and 1% of total Group assets were, Canada at
£2,320m, Japan at £2,272m and Switzerland at £2,184m. At 31st December
1999 the countries in this category were Canada at £2,166m and Japan at
£2,154m.
9. Costs for 2000 - UK Entry to EMU
Barclays is maintaining a prudent programme to validate and develop
further our existing plans and to conduct feasibility studies with
selected suppliers/partners.
Given the considerable uncertainty that continues to surround whether
and when the UK may enter, it has not been possible to draw any definite
conclusions as to the final overall cost of preparing retail systems and
operations.
10. Legal proceedings
Barclays is party to various legal proceedings, the ultimate resolution
of which is not expected to have a material adverse effect on the
financial position of the Group.
Half-year ended
11. Geographical analysis 30.6.00 31.12.99 30.6.99
£m £m £m
Profit before tax
United Kingdom 1,431 1,250 622
Other European Union 199 139 174
United States 84 28 103
Rest of the World 128 71 68
1,842 1,488 967
30.6.00 31.12.99 30.6.99
Total assets £m £m £m
United Kingdom 195,319 171,772 170,607
Other European Union 17,214 17,017 18,288
United States 47,777 39,536 35,407
Rest of the World 26,075 26,468 16,963
286,385 254,793 241,265
Half-year ended
12. Contingent liabilities and 30.6.00 31.12.99 30.6.99
commitments
Contingent liabilities £m £m £m
Acceptances and 1,494 1,530 1,331
endorsements
Guarantees and assets
pledged as collateral 17,241 12,044 11,011
security
Other contingent 5,953 5,360 5,359
liabilities
24,688 18,934 17,701
Commitments
Standby facilities, credit
lines and other 93,219 82,479 73,376
commitments
13.Off-balance sheet financial instruments, including derivatives
The tables set out below analyse the contract or underlying principal
amounts of derivative financial instruments held for trading purposes
and for the purposes of managing the Group's structural exposures.
Foreign exchange 30.6.00 31.12.99 30.6.99
derivatives
£m £m £m
Contract or underlying
principal amount
Forward foreign exchange 266,155 225,518 233,836
Currency swaps 106,463 88,453 81,025
Other exchange rate related 91,943 65,456 65,460
contracts
464,561 379,427 380,321
Interest rate derivatives
Contract or underlying
principal amount
Interest rate swaps 1,151,077 975,720 900,052
Forward rate agreements 26,963 49,577 69,513
OTC options bought and sold 345,312 266,085 232,236
Other interest rate related 325,777 212,869 191,180
contracts
1,849,129 1,504,251 1,392,981
Equity, stock index and
commodity derivatives
Contract or underlying 354,950 152,072 297,674
principal amount
Other exchange rate related contracts are primarily OTC options. Other
interest rate related contracts are primarily exchange traded options
and futures.
Derivatives entered into as trading transactions, together with any
associated hedging thereof, are measured at fair value and the resultant
profits and losses are included in dealing profits. The tables below
summarise the positive and negative fair values of such derivatives,
including an adjustment for netting where the Group has the ability to
insist on net settlement which is assured beyond doubt, based on a legal
right that would survive the insolvency of the counterparty.
Positive fair values 30.6.00 31.12.99 30.6.99
£m £m £m
Foreign exchange 7,440 7,178 6,090
derivatives
Interest rate derivatives 16,470 16,160 16,573
Equity, stock index and
commodity derivatives 2,066 2,872 2,289
Effect of netting (13,213) (12,820) (12,842)
12,763 13,390 12,110
Negative fair values
Foreign exchange 8,080 7,583 6,836
derivatives
Interest rate derivatives 16,026 15,590 16,517
Equity, stock index and
commodity derivatives 2,237 3,266 2,756
Effect of netting (13,213) (12,820) (12,842)
13,130 13,619 13,267
14.Market risk
Market risk is the risk of loss arising from adverse movements in the
level or volatility of market prices, which can occur in the interest
rate, foreign exchange, equity and commodity markets. It is incurred as
a result of both trading and asset/liability management activities.
The market risk management policies of the Group are determined by the
Group Risk Management Committee, which also determines overall market
risk appetite. The Group's policy is that exposure to market risk
arising from trading activities is concentrated in Barclays Capital.
The Group's banking businesses are also subject to market risk, which
arises in relation to non-trading positions, such as capital balances,
demand deposits and customer originated transactions and flows.
The Group uses a 'value at risk' measure as the primary mechanism for
controlling market risk. Daily Value at Risk (DVAR) is an estimate,
with a confidence level of 98%, of the potential loss which might arise
if the current positions were to be held unchanged for one business day.
Daily losses exceeding the DVAR figure are likely to occur, on average,
only twice in every one hundred business days. Actual outcomes are
monitored regularly to test the validity of the assumptions made in the
calculation of DVAR.
Barclays Capital trading activities
In Barclays Capital, the formal process for the management of risk is
through the Barclays Capital Risk Management Committee. Day-to-day
responsibility for market risk lies with the Chief Executive of Barclays
Capital, supported by a dedicated global market risk management unit
that operates independently of the business areas.
For most of the first quarter, DVAR was maintained at around the 1999
year end level of £20.2m. However, interest rate exposures in the fixed
income markets were significantly reduced by the end of March and
remained low during the second quarter. Total DVAR of £12.7m was
recorded on 30th June 2000. Barclays Capital continues to pursue market
opportunities as they arise, which could result in increased exposures
during the second half of 2000.
Barclays Capital uses the historical simulation method for calculating
DVAR. At the beginning of 2000, the length of the historical sample was
increased from one to two years. This change has not had a material
impact on the reported numbers. The daily average, maximum and minimum
values of DVAR, calculated using a one year sample for 1999 and a two
year sample in 2000 were estimated as below.
DVAR Half-year ended
30.6.00
Average High* Low*
£m £m £m
Interest rate risk 16.1 23.7 10.7
Foreign exchange risk 3.2 4.7 1.9
Equities risk 3.7 6.3 1.4
Commodities risk 1.3 1.7 1.0
Diversification effect (6.4)
Total DVAR 17.9 27.7 11.5
Half-year ended Half-year ended
31.12.99 30.6.99
Average High* Low* Average High* Low*
£m £m £m £m £m £m
Interest rate 17.2 30.2 9.9 10.1 13.1 6.2
risk
Foreign 1.9 4.6 0.8 3.7 11.7 1.0
exchange risk
Equities risk 1.5 3.3 0.7 1.8 3.7 0.6
Commodities 1.5 2.2 1.1 0.8 1.5 0.5
risk
Diversification (3.1) (3.4)
effect
Total DVAR 19.0 32.5 11.3 13.0 20.4 7.7
* The high (and low) DVAR figures reported for each category did not
necessarily occur on the same day as the high (and low) DVAR reported as
a whole. A corresponding diversification effect cannot be calculated
and is therefore omitted from the above table
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
30.6.00 30.6.00 30.6.00 30.6.99 30.6.99 30.6.99
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Assets £m £m % £m £m %
Treasury bills and
other eligible bills:
in offices in the UK 4,839 83 3.4 2,881 73 5.1
in offices outside the 814 44 10.8 967 45 9.3
UK
Loans and advances to
banks:
in offices in the UK 7,745 205 5.3 7,636 196 5.1
in offices outside the 6,703 191 5.7 9,054 198 4.4
UK
Loans and advances to
customers:
in offices in the UK 75,388 3,111 8.3 66,545 2,698 8.1
in offices outside the 18,577 564 6.1 15,065 435 5.8
UK
Lease receivables:
in offices in the UK 4,845 174 7.2 5,058 176 7.0
in offices outside the 510 28 11.0 555 32 11.5
UK
Debt securities:
in offices in the UK 23,737 711 6.0 13,251 406 6.1
in offices outside the 12,743 380 6.0 9,229 238 5.2
UK
Average assets of 155,901 5,491 7.0 130,241 4,497 6.9
banking business
Average assets of 96,014 2,173 4.5 65,017 1,785 5.5
trading business
Total average interest 251,915 7,664 6.1 195,258 6,282 6.4
earning assets
Provisions (2,054) (1,931)
Non-interest earning 44,269 37,228
assets
Total average assets
and interest income 294,130 7,664 5.2 230,555 6,282 5.4
Percentage of total
average assets in 33.3 32.8
offices outside the UK
Average interest
earning assets and net
interest income:
Banking business 155,901 2,473 3.2 130,241 2,281 3.5
Trading business 96,014 (122) (0.3) 65,017 30 0.1
Discount rate
adjustment on - (4) - - (3) -
provisions
Profit on
redemption/repurchase - 2 - - - -
of loan capital
Total average interest
earning assets and net 251,915 2,349 1.9 195,258 2,308 2.4
interest income
Total average interest
earning assets related
to:
Interest income 7,664 6.1 6,282 6.4
Interest expense (5,313) (4.2) (3,971) (4.1)
Discount rate
adjustment on (4) - (3) -
provisions
Profit on
redemption/repurchase 2 - - -
of loan capital
2,349 1.9 2,308 2.4
Notes
(i) Loans and advances to customers and banks include all doubtful
lendings, including non-accrual lendings. Interest receivable on such
lendings has been included to the extent to which either cash payments
have been received or interest has been accrued in accordance with the
income recognition policy of the Group.
(ii) Average balances are based upon daily averages for most UK banking
operations and monthly averages elsewhere.
(iii) The average balance sheet does not include the retail life fund
assets attributable to policyholders nor the related liabilities.
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
30.6.00 30.6.00 30.6.00 30.6.99 30.6.99 30.6.99
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Liabilities and £m £m % £m £m %
shareholders' funds
Deposits by banks:
in offices in the UK 19,153 440 4.6 12,603 255 4.0
in offices outside the 12,877 243 3.8 11,750 216 3.7
UK
Customer accounts -
demand accounts:
in offices in the UK 13,225 89 1.3 12,222 82 1.3
in offices outside the 1,754 24 2.7 1,904 17 1.8
UK
Customer accounts -
savings accounts:
in offices in the UK 25,403 453 3.6 23,977 387 3.2
in offices outside the 1,275 31 4.9 1,278 25 3.9
UK
Customer accounts -
other time deposits -
retail:
in offices in the UK 26,019 754 5.8 23,553 605 5.1
in offices outside the 5,384 144 5.3 4,800 108 4.5
UK
Customer accounts -
other time deposits -
wholesale:
in offices in the UK 23,484 584 5.0 18,911 412 4.4
in offices outside the 8,776 239 5.4 6,744 160 4.7
UK
Debt securities in
issue:
in offices in the UK 15,820 398 5.0 13,440 383 5.7
in offices outside the 7,759 229 5.9 5,866 143 4.9
UK
Dated and undated loan
capital and other
subordinated 4,369 155 7.1 3,969 127 6.4
liabilities principally
in offices in the UK
Internal funding of (29,389) (765) 5.2 (28,710) (704) 4.9
trading business
Average liabilities of 135,909 3,018 4.4 112,307 2,216 3.9
banking business
Average liabilities of 97,058 2,295 4.7 69,517 1,755 5.0
trading business
Total average interest
bearing liabilities 232,967 5,313 4.6 181,824 3,971 4.4
Interest free customer
deposits:
in offices in the UK 9,136 8,464
in offices outside the 1,666 1,514
UK
Other non-interest 40,896 30,160
bearing liabilities
Minority interests and
shareholders' funds 9,465 8,593
Total average
liabilities, 294,130 5,313 3.6 230,555 3,971 3.4
shareholders' funds and
interest expense
Percentage of total
average non-capital
liabilities in offices 31.2 32.1
outside the UK
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' FUNDS (UNAUDITED)
Half-year ended
30.6.00 31.12.99 30.6.99
£m £m £m
Share capital
At beginning of period 1,495 1,503 1,511
Shares issued 2 11 1
Repurchase of shares (20) (19) (9)
At end of period 1,477 1,495 1,503
Share premium account
At beginning of period 1,583 1,401 1,381
Premium arising on shares issued 23 182 20
At end of period 1,606 1,583 1,401
Revaluation reserve
At beginning of period 37 39 36
Exchange rate translation - (1) (2)
differences
Revaluation of interest in - - 5
associated undertakings
Other movements - (1) -
At end of period 37 37 39
Capital redemption reserve
At beginning of period 207 188 179
Repurchase of ordinary shares 20 19 9
At end of period 227 207 188
Other capital reserve
At beginning of period 320 320 320
Redemption of preference shares 149 - -
At end of period 469 320 320
Profit retained
At beginning of period 4,841 4,768 4,415
Profit retained 1,025 579 434
Exchange rate translation 27 (29) (38)
differences
Repurchase of ordinary shares (291) (317) (159)
Transfer to capital redemption (20) (19) (9)
reserve
Goodwill written back on - - 138
disposals
Shares issued to the Quest in
relation to share option schemes (12) (141) (13)
for staff
Transfer to other capital reserve (149) - -
At end of period 5,421 4,841 4,768
Total reserves 7,760 6,988 6,716
Total shareholders' funds 9,237 8,483 8,219
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (UNAUDITED)
Half-year ended
30.6.00 31.12.99 30.6.99
£m £m £m
Profit attributable to the 1,320 1,063 696
members of Barclays PLC
Exchange rate translation 27 (30) (40)
differences
Other items - (1) 5
Total recognised gains relating 1,347 1,032 661
to the period
Prior period adjustment - - (81)
Total gains and losses 1,347 1,032 580
recognised during the period
Historical cost profits and losses
There is no material difference between profit before tax and profit
retained, as reported, and historical cost profits.
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Half-year ended Full year
Note 30.6.00 30.6.00 30.6.99 30.6.99 31.12.99 31.12.99
£m £m £m £m £m £m
Net cash inflow from
operating activities 1 7,766 3,403 8,923
Dividends received
from associated 1 5 5
undertakings
Returns on investments
and servicing of
finance:
Interest paid on loan
capital and other (164) (139) (253)
subordinated
liabilities
Preference dividends
and other
appropriations paid by (16) (13) (28)
subsidiary undertaking
Dividends paid to
minority shareholders (7) (6) (9)
Net cash outflow from
returns on investment (187) (158) (290)
and servicing of
finance
Tax paid (419) (220) (636)
Capital expenditure
and financial
investment:
Capital expenditure (93) (101) (224)
Sale of property and 46 34 58
equipment
Purchase of investment (11,324) (7,031) (13,094)
securities
Redemption of 2,145 2,728 2,476
investment securities
Sale of investment 2,628 1,351 2,894
securities
Net cash outflow from
capital expenditure (6,598) (3,019) (7,890)
and financial
investment
Acquisitions and
disposals:
Acquisition of 2 - 38 60
subsidiary
undertakings
Sale of associated
undertakings and joint - - 8
ventures
Sale of other group 3 283 168 174
undertakings
Net cash inflow from
acquisitions and 283 206 242
disposals
Equity dividend paid (484) (414) (676)
Net cash 362 (197) (322)
inflow/(outflow)
before financing
Financing:
Issue of Reserve 510 - -
Capital Instruments
Issue of loan capital
and other subordinated
liabilities (net of - 363 859
expenses)
Redemption/repurchase
of loan capital and (9) - (15)
other subordinated
liabilities
Repurchase of ordinary (311) (168) (504)
shares
Issue of ordinary
shares (net of 13 8 60
contribution to the
QUEST)
Redemption of (149) - -
preference shares
Net cash inflow from 54 203 400
financing
Increase in cash 4 416 6 78
NOTES TO CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)
1. Reconciliation of operating profit to net operating cashflows
Half-year ended Full year
30.6.00 30.6.99 31.12.99
£m £m £m
Operating profit 1,664 1,086 2,593
Provisions for bad and 376 320 621
doubtful debts
Depreciation and amortisation 127 135 276
Net increase/(decrease) in
accrued expenditure and 93 (312) (149)
prepayments
Provisions for contingent
liabilities and commitments (1) - 1
Other provisions for 143 336 445
liabilities and charges
Interest on dated and undated
loan capital and other 155 127 263
subordinated liabilities
Associated undertakings 10 (5) 14
loss/(profit) included
Increase in shareholders'
interest in the long-term (75) (10) (32)
assurance fund
Profit on (2) - (3)
redemption/repurchase of loan
capital
Net (increase)/decrease in net
interest and commission (50) 561 691
receivable
Net profit on disposal of
investments and fixed assets (31) (30) (51)
Other non-cash movements 21 (13) 7
2,430 2,195 4,676
Net change in items in transit
and items in course of (314) (209) 96
collection
Net increase in other credit 4,256 2,339 516
balances
Net increase in loans and
advances to banks and (16,081) (14,420) (23,862)
customers
Net increase in deposits and
debt securities in issue 22,434 18,368 32,100
Net decrease/(increase) in 536 1,945 (307)
other assets
Net increase in other debt
securities and equity shares (3,356) (3,528) (1,922)
Net increase in treasury and (2,291) (3,513) (2,462)
other eligible bills
Other non-cash movements 152 226 88
Net cash inflow from operating 7,766 3,403 8,923
activities
2. Cash flow in respect of the purchase of subsidiary undertakings during
the period
Half year ended Full year
30.6.00 30.6.99 31.12.99
£m £m £m
Cash consideration - 41 66
Cash at bank and in hand - (79) (126)
acquired
Net cash inflow in respect
of the
purchase of subsidiary - (38) (60)
undertakings
3. Sale of subsidiary and associated undertakings
Half year ended Full year
30.6.00 30.6.99 31.12.99
£m £m £m
Goodwill written off - 138 154
Advances and other accounts 940 1,520 1,549
Deposits and other (870) (1,365) (1,400)
borrowings
Net assets disposed of 70 293 303
Net profit /(loss) on 178 (119) (138)
disposal
248 174 165
Amounts not yet settled
(including deferred 35 (6) 9
consideration)
Settled by net cash 283 168 174
received
4. Analysis of cash balances
30.6.00 1.1.00 Change 30.6.99 1.1.99 Change
£m £m £m £m £m £m
Cash and
balances at 588 1,166 (578) 780 942 (162)
central bank
Loans and
advances to
other banks
repayable on 1,978 967 1,011 1,310 1,174 136
demand
2,566 2,133 433 2,090 2,116 (26)
Half-year ended Full year
30.6.00 30.6.99 31.12.99
£m £m £m
Balance at beginning of 2,133 2,116 2,116
period/year
Net increase in cash before the
effect of exchange rate movements 416 6 78
Effect of exchange rate movements 17 (32) (61)
433 (26) 17
Balance at end of period/year 2,566 2,090 2,133
US GAAP DATA (UNAUDITED)
The following unaudited financial information has been adjusted from data
prepared under UK GAAP to reflect significant differences from US GAAP.
Half-year ended
30.6.00 30.6.00 30.6.99 30.6.99
UK US UK US
GAAP GAAP GAAP GAAP
£m £m £m £m
Profit attributable to
the members of Barclays 1,320 1,082 696 612
PLC - Net income
Shareholders' funds 9,237 8,578 8,219 7,722
Total assets 286,385 300,922 241,265 246,173
PER ORDINARY SHARE Pence Pence Pence pence
Earnings 88.9 72.9 46.2 40.7
Diluted Earnings - US - 72.1 - 40.0
GAAP
Dividend 20.0 32.5 17.5 27.5
Net asset value 626 581 547 514
PERFORMANCE RATIOS % % % %
Net income as a
percentage of
average total assets 0.9 0.7 0.6 0.5
average shareholders' 29.6 25.5 16.8 15.3
funds
Dividends as a 22.3 44.7 37.6 67.7
percentage of net income
Average shareholders'
funds as a percentage of 3.0 2.7 3.6 3.3
average total assets
INDEPENDENT REVIEW REPORT BY THE AUDITORS
Independent review report to the Board of Directors of Barclays PLC
Introduction
We have been instructed by the company to review the financial information
set out on pages 7, 9 and 55 and we have read the other information
contained in the interim report for any apparent misstatements or material
inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein,
is the responsibility of, and has been approved by the directors. The
Listing Rules of the Financial Services Authority require that the
accounting policies and presentation applied to the interim figures should
be consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data, and
based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope
than an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30th June 2000.
PricewaterhouseCoopers
Chartered Accountants 2nd August 2000
London, England
OTHER INFORMATION
Registered office
54 Lombard Street, London, EC3P 3AH, England, United Kingdom.
Tel: 020 7699 5000
Registrar
The Registrar to Barclays PLC, PO Box 82, The Pavilions, Bridgwater Road,
Bristol, BS99 7NH
Tel: 0870 702 0196
Listing
The principal trading market for Barclays PLC ordinary shares is the London
Stock Exchange. Ordinary shares are also listed on the New York Stock
Exchange and the Tokyo 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 £1 and is evidenced by an ADR. The ADR
depositary is Morgan Guaranty Trust Company of New York (tel: (781) 575
4328).
The non-cumulative dollar-denominated preference shares of Barclays Bank PLC
are traded on the New York Stock Exchange in the form of ADSs. Each series
of preference shares is also listed on the London Stock Exchange.
Filings with the SEC
Statutory accounts for the year ended 31st December 1999, which also include
the joint annual report on Form 20-F of Barclays PLC and Barclays Bank PLC
to the Securities and Exchange Commission in the United States of America,
can be obtained from the Vice President, Corporate Communications, Barclays
Bank PLC, 222 Broadway, New York, NY 10265 or from the Head of Investor
Relations at Barclays registered office address shown above.
The interim report for the six months to 30th June 2000, including extracts
from this announcement will be posted to shareholders on 11th August 2000
when copies will be available to the public at Barclays registered office
from the Group Secretary.
For further information, please contact:
David Allvey
Finance Director
020 7699 3564 - Direct Line
020 7699 5000 - Switchboard
Ian Roundell
Head of Investor Relations
020 7699 2961 - Direct Line
Leigh Bruce
Director, Corporate Communications
020 7699 2658 - Direct Line
More information on Barclays, including the 2000 interim results, can be
found on our website at the following address:
http://www.investor.barclays.com
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