Interim Results - Part 3 of 4

Barclays PLC
2 August 2001


PART 3

                                 BARCLAYS PLC

Personal Financial Services

Personal Financial Services (previously UK Personal Customers) provides a wide
range of products and services to personal customers throughout the United
Kingdom, including current accounts, savings, consumer loans and payment
protection insurance.  It is also responsible for the management and
development of the Barclays branch network, telephone banking service and
online banking service.

Personal Financial Services works closely with other businesses in the Group,
in particular Woolwich, Barclays Private Clients, Barclaycard and Business
Banking.

                                                      Half-year ended
                                                30.06.01     31.12.00  30.06.00
                                                      £m           £m        £m
Net interest income                                  576          547       545
Net fees and commissions                             256          248       240
Other operating income                                68           63        63
Total income                                         900          858       848
Total costs                                        (479)        (494)     (516)
Provisions for bad and doubtful debts              (158)        (110)     (167)
Operating profit                                     263          254       165
Restructuring costs                                 (12)         (15)      (36)
Integration costs                                    (2)            -         -
Profit before tax and exceptional items              249          239       129


Personal Financial Services operating profit increased 59%, or £98m, to £263m
as a result of reduced costs and higher levels of net interest income and fees
and commissions.  Operating profit in the second half of 2000 benefited from a
low net provision charge for that period.

Net interest income grew by 6% to £576m.  Average lending balances (which
includes balances held on behalf of Barclays Private Clients) were up 9% to £
6.5bn on the first half of 2000 and average deposit balances (on the same
basis) grew 9% to £32.6bn.  Income derived from these volume increases and the
majority of the gain on the hedge closure were offset by reduced margins as a
result of the introduction of personal pricing in consumer loans and by
stronger growth in lower margin savings products and reduced market rates of
interest.

Average retail consumer lending balances increased to £4.6bn, ahead of the
rate of growth of the market.  Notwithstanding the tightening of credit
scoring criteria in the second half of 2000, the promotion of personal pricing
in the consumer loan market proved successful in attracting higher quality,
lower risk business.

Average savings balances increased to £11.6bn, partly as a result of the
launch of the Regular Savings Account in February 2001 and greater focus on
higher balances including e-savings and bonds.

Net fees and commissions increased 7% to £256m as a result of the increased
number of Additions accounts (2001: 1,141,000, 2000: 958,000) and growth in
overdraft lending activity.

Other operating income increased 8% to £68m as a result of higher payment
protection and other insurance business.  Higher quality lending resulted in
lower penetration of payment protection policy sales in consumer loans.

Total costs fell 7%, or £37m, to £479m.  Business as usual costs fell despite
an increase in fraud costs.  Strategic investment expenditure, at £30m, was
mainly directed at the branch network and online services.

Provisions fell 5%, or £9m, despite the 9% growth in average lending balances.
This reflected continued benefit from the introduction of personal pricing
in consumer loans which has resulted in higher quality lending.  New and
increased provisions, including a £20m charge in respect of interest
previously held in suspense, were £157m (31st December 2000: £121m, 30th June
2000: £166m).

The total number of Barclays registered customers for online banking increased
in the half year by half a million to 2.3m.  Overall online sales and
transaction volumes have continued to increase, with balances on the e-savings
account at £290m.  The total number of personal retail customers registered
for telephone banking increased to 1.3m (31st December 2000: 1.1m).

The total number of Barclays personal current accounts increased to 9.0m and
Barclays personal savings accounts increased to 4.3m (31st December 2000:
4.2m)


Woolwich

The Woolwich business comprises Woolwich plc and Barclays Mortgages, the UK
mortgages and household insurance operations of Barclays.  Woolwich is a
predominantly UK-based financial services business which provides a wide range
of personal financial services, including financial advice through one of the
UK's largest independent financial advisory (IFA) teams.


                                                     Half-year ended
                                           30.06.01 31.12.00**  30.06.00*
                                                 £m         £m         £m
Net interest income                             413        209        109
Net fees and commissions                        157         60         17
Income from long-term assurance business         11          5          -
Other operating income                           10          4          -
Total income                                    591        278        126
Total costs                                   (320)      (138)       (32)
Provisions for bad and doubtful debts          (34)       (12)          8
Profit from joint ventures                        1          -          -
Operating profit                                238        128        102
Restructuring costs                             (1)        (2)        (2)
Integration costs                              (12)        (7)          -
Fair value adjustments                         (16)        (6)          -
Profit before tax and exceptional items         209        113        100

*         Barclays mortgage business only.
**        Barclays mortgage business and operating profit of £70m in
          respect of Woolwich plc business from 25th October 2000 to 31st       
          December 2000.
               

Pro forma profit and loss account for Woolwich

In order to provide a like for like performance of Woolwich's performance, pro
forma tables have been provided below assuming that the acquisition of
Woolwich plc took place on 1st January 2000.

                                                      Half-year ended
                                                30.06.01     31.12.00  30.06.00
                                                   Total        Total     Total
                                                      £m           £m        £m

Net Interest Income                                  413          425       425
Net fees and commissions                             157          161       145
Income from long term assurance business              11           13        21
Other operating income                                10           10         6
Total income                                         591          609       597
Operating costs                                    (320)        (308)     (305)
Provision for bad and doubtful debts                (34)         (24)      (15)
Profit/loss from joint ventures                        1            -       (2)
Operating profit                                     238          277       275
Restructuring costs                                  (1)          (2)       (2)
Integration costs                                   (12)          (7)         -
Profit before tax and exceptional items*             225          268       273


* The fair value adjustments detailed in the footnote on page 9 are not
  reflected in this presentation.

Operating profit before restructuring and integration costs was £238m (2000:
£275m).  Barclays Mortgages operating profit reduced by £39m to £63m reflecting
a net credit to provisions in the first half of 2000 and a fall in lending
margins induced by repricing during the second half of last year.  Adjusting
for an £8m one-off increase in the life fund, Woolwich plc operating profit
increased 6%.

Net interest income fell 3% to £413m.  Woolwich plc net interest income
remained stable at £316m and reflected an improved contribution from mortgage
and other lending activities offset by savings margin compression resulting
from intense market competition for deposits.  Overall, the Woolwich plc
mortgage margin remained stable at 0.8% and the savings margin fell from 1.3%
to 1.0%.  Barclays Mortgages net interest income fell £12m to £97m, reflecting
a high level of redemptions in the book in the second half of 2000.

Average UK mortgage balances increased 6.6% to £48.3bn, (2000: £45.3bn).
Total market share of gross mortgage lending was 10%, higher than the 9%
market share of mortgage stock.  Total net UK mortgage lending was £1.8bn, an
18% increase with market share improving strongly in the second quarter.  From
April, Woolwich branded mortgages were available through the Barclays retail
network.  The total mortgage pipeline ended the period at £3.4bn (2000: £2.2bn).

Net fees and commissions increased 8% to £157m and primarily reflected the
success of the IFA operation and volume driven growth in mortgage related
activities.

Total costs rose 5% to £320m (2000: £305m).  Strategic investment expenditure
increased to £23m (2000: £17m) to support future growth in key business
development areas, such as IFA operations and Open Plan.  Business as usual
costs rose 3%, or £8m, due largely to the greater costs associated with higher
new business volumes.

Provisions for bad and doubtful debts at £34m were £19m higher than in the
first half of 2000, principally reflecting higher levels of Woolwich plc
consumer loan balances and a general provision release in 2000.

At 30th June 2001 the number of Woolwich Open Plan customers had increased to
806,000 (31st December 2000: 544,000), with product penetration increasing to
3.1 products per customer (2000: 3.0).  Woolwich Open Plan customer numbers
are on course to reach 1 million by the end of this year.


Barclays Private Clients

Barclays Private Clients (previously Wealth Management) serves affluent and
high net worth clients globally with bespoke, relationship-based services in
the areas of banking, asset management, stockbroking and long-term financial
planning.  It brings together the existing operations of Premier Banking,
European Retail Banking, Offshore Services, Private Banking, Stockbrokers and
Caribbean into one business.  Barclays Private Clients serves over 1 million
affluent clients across 33 countries worldwide and has extensive geographical
diversity with over a third of clients based outside the UK, mainly in France,
Iberia and the Caribbean.

  
                                                      Half-year ended
                                                30.06.01     31.12.00  30.06.00
                                                      £m           £m        £m
Net interest income                                  427          417       376
Net fees and commissions                             260          278       301
Income from long-term assurance business              83           87        79
Other operating income                                14           22        14
Total income                                         784          804       770
Total costs                                        (440)        (480)     (426)
Provisions for bad and doubtful debts               (13)         (14)       (5)
Operating profit                                     331          310       339
Restructuring costs                                  (6)         (30)      (11)
Profit before tax and exceptional items              325          280       328

Operating profit of Barclays Private Clients reduced 2% to £331m compared to
the first six months of 2000 (2000: £339m) although it increased by 7%
compared to the second half of last year.  This performance was achieved
despite an increase in strategic investment spend of £33m, depressed market
conditions with the average FTSE 100 level down 7% and market retail broking
volumes down 32% compared with the first half of last year.

Net interest income increased by 14% to £427m as average lending volumes
increased 18% and average deposits, primarily of UK affluent clients, grew by
8%.  The benefit was partially offset by margin compression in lendings and
deposits, as a result of reduced interest rates.

Net fees and commissions decreased 14%, or £41m, to £260m primarily due to
lower brokerage and fund management fees resulting from adverse stock market
conditions compared with an exceptionally buoyant first quarter of 2000.
Stockbroking volumes in the UK decreased to 7,000 average deals per day (2000:
8,900), although the leading position in the UK as measured by retail client
orders was maintained.

Income from long term assurance business increased by £4m to £83m (2000: £79m). 
Underlying income was restricted by lower stock market levels, offset
by a one-off benefit of £13m as a result of the Legal & General strategic
alliance.

Following the strategic alliance with Legal & General, a stakeholder pensions
product was launched in April 2001.  Designations to date from company
employers through direct sales totalled over 21,000.

Total customer funds, which include assets under management and administration
and on balance sheet deposits, amounted to £80bn (31st December 2000: £81bn).
In addition, Barclays Private Clients currently accounts for and manages £14bn
of assets under management relating to the retail life and funds businesses
(31st December 2000: £14bn).  Within the total customer funds, assets under
management fell by £1bn from 31st December 2000 as growth in net new funds of
£1bn was more than offset by a £2bn impact of falling stock markets.  Loans to
customers grew 5% to £8.4bn (31st December 2000: £8bn).

Total costs rose 3% to £440m (2000: £426m).  Business as usual costs fell £
25m, or 6% through the continued focus on productivity programmes.  This fall
was offset by an increase in strategic investment expenditure of £33m as a
result of the continuation of a major investment programme focussing on the
development of a single relationship across banking and investment and a
seamless multi-channel distribution service.



Barclaycard

Barclaycard is the leading credit card business in Europe with operations in
the United Kingdom, Germany, France, Spain and Greece.  It offers a full range
of credit card services to individual customers, together with card payment
facilities to retailers and other businesses.  Barclaycard includes the
Masterloan consumer lending business.


                                              Half-year ended
                                          30.06.01   31.12.00    30.06.00
                                                £m         £m          £m
Net interest income                            397        341         344
Net fees and commissions                       284        269         255
Total income                                   681        610         599
Total costs                                  (242)      (210)       (229)
Provisions for bad and doubtful debts        (162)      (168)       (136)
(Loss)/profit from joint ventures              (2)        (2)           -
Operating profit                               275        230         234
Restructuring costs                              -        (4)           -
Integration costs                              (2)
Profit before tax and exceptional items        273        226         234



Barclaycard's operating profit increased 18%, or £41m, to £275m.

Net interest income increased 15% to £397m benefiting from continued strong
growth in average UK extended credit balances which rose 14% during the period
to £6.0bn.  Growth was below market trends reflecting lower recruitment and a
tightening of credit scoring.  Recruitment of UK customers was 275,000 for the
half year.  Barclaycard's recruitment strategy will be focused on the second
half of the year in order to capitalise on the investment in the sponsorship
of the FA Barclaycard Premiership.

The UK net interest margin increased as a result of improved cardholder rate
management and falling interest rates.

Fees and commissions increased 11% to £284m, partly driven by cardholder
turnover growth and account fees.

Barclaycard's international businesses recorded an operating loss of £15m
(2000: loss £17m). Average extended credit balances increased 44% and income
was up 35%.

Total costs increased 6% to £242m primarily reflecting an increase in business
as usual costs.  Business as usual costs rose by 7% largely as a result of an
increase in activity related costs and a continuing rise in fraud costs.
Barclaycard continues to combat fraud through the development of intelligent
fraud identification and monitoring systems, and is developing chip based
technology as a fraud solution.  Strategic investment spend remained in line
with the first six months of last year at £31m but increased 15% on the second
half of 2000.

Provisions for bad and doubtful debts increased 19% to £162m (2000: £136m).
This was attributable to strong lending growth across the UK and international
businesses and reflected high levels of recruitment over the last two years.

Investment in e-enablement continued and a new account service was implemented
on the internet site.  The modular design delivers increased capacity and
improves speed to market.  The UK business now has 512,000 registered users of
its website for online services and over 83,000 active retailer relationships,
of which over 4,600 are registered for Barclaycard's payment systems to
provide shopping facilities online.



Business Banking

Business Banking provides relationship banking to the Group's small, medium
business and large business customers in the United Kingdom.  Customers are
served by a network of specialist relationship managers who provide access to
an extensive range of products.  Customers are also offered access to business
centres in mainland Europe and the United States.

Business Banking offers a range of online and e-commerce based services to
customers.  Barclays B2B, a joint venture with Accenture, was created in 2000
to enable the delivery of business services to companies with a turnover of
between £5m and £250m.  It is one of the UK's first purchase to payment
e-procurement systems and provides a direct channel for the sale and delivery
of a number of business services such as strategic sourcing.
Clearlybusiness.com, a joint venture with Freeserve, is one of the UK's
leading on-line small business service providers.



Around a quarter of small and medium enterprise (SME) businesses in the United
Kingdom bank with Barclays.
                                                 Half-year ended
                                             30.06.01  31.12.00  30.06.00
                                                   £m        £m        £m
Net interest income                               776       760       743
Net fees and commissions                          417       402       385
Other operating income                              -      (12)         5
Total income                                    1,193     1,150     1,133
Total costs                                     (505)     (529)     (526)
Provisions for bad and doubtful debts            (76)      (87)      (33)
(Loss)/income from associated undertakings        (4)         4      (10)
Operating profit                                  608       538       564
Restructuring costs                              (13)      (29)      (30)
Profit before tax and exceptional items           595       509       534


Business Banking operating profit increased 8%, or £44m, to £608m.

Net interest income rose 4% to £776m reflecting increased lending and deposit
balances partly offset by a slight reduction in the overall margin.  Adjusted
for the sale of Dial in 2000 and the consolidation of Banco Barclays e Galicia
SA from January 2001, growth in net interest income was 8%.  Average customer
lending balances increased 8% to £40bn and average customer deposit balances
increased 7% to £42bn.

Lending to large business customers grew strongly.  Lending growth was
concentrated towards higher quality customers and, as a result, the overall
quality of the portfolio improved.  Lending volumes in the medium business and
small business areas grew steadily.  The Sales Financing product range, which
includes factoring and invoice discounting, saw rapid growth in turnover, up
62%, while Barclays Asset Finance direct volumes were up over 40%.

UK lending margins eased in line with the improved quality of the lending
portfolio.

The overall deposit margin reduced slightly as a result of the impact of lower
margins on non-interest bearing current accounts.

Net fees and commissions increased 8% to £417m.  Lending related fees rose as
a result of higher customer use of on and off balance sheet financing products
and strong demand for sales financing products.  UK money transmission income
reduced slightly, with higher volumes offset by lower fee levels as a result
of strong competitive pressure.  Foreign exchange related income increased
strongly as a result of higher volumes.

The use of electronic products continued to increase.  Over 40% of large
business and medium business customers are now registered for BusinessMaster
services.  At the end of June 2001, over 200,000 small business customers were
registered to use online banking.  Barclays B2B's initial offering, the
Barclays B2B exchange, has created a secure marketplace which enables buyers
and sellers to benefit from lower processing costs and increased management
control in their business transactions.  Barclays B2B had 6,400 businesses
registered to trade online as at the end of June 2001.

Total costs fell 4%, to £505m, largely reflecting the continued impact of a
further reduction in headcount and the sale of Dial, the car leasing business,
in June 2000.  Strategic investment expenditure was £39m (2000: £45m).  Costs
included the £24m total operating costs of Barclays B2B and of Banco Barclays
e Galicia SA which was consolidated as a subsidiary from 1st January 2001
having been previously reported as an associate undertaking.

The net provisions charge increased to £76m (2000: £33m) reflecting an
increase in gross new and increased provisions; however the charge remained
below risk tendency.


Barclays Africa

Barclays Africa provides banking services to personal and corporate customers
in North Africa, sub-Saharan Africa and the Indian Ocean.  It operates a
diversified portfolio of banking operations in Botswana, Egypt, Ghana, Kenya,
Mauritius, Seychelles, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.


                                                      Half-year ended
                                                30.06.01     31.12.00  30.06.00
                                                      £m           £m        £m
Net interest income                                   98           92        89
Net fees and commissions                              70           66        60
Other operating income                                 3            5         2
Total income                                         171          163       151
Total costs                                         (87)         (78)      (79)
Provisions for bad and doubtful debts               (16)         (32)      (15)
Operating profit                                      68           53        57
Restructuring costs                                  (5)          (4)      (12)
Profit before tax and exceptional items               63           49        45



Barclays Africa operating profit increased 19%, or £11m, to £68m as a result
of a 13% improvement in total income.  The impact of exchange rate translation
movements reduced profit by £6m.

Net interest income rose 10% to £98m and benefited from good growth in lending
and deposit volumes across the portfolio.  Total average customer lending
balances increased 22% to £1.5bn.  Average customer deposit balances rose 16%
to £2.0bn.  Margins fell slightly during the period due to increased
competitive pressures.

Net fees and commissions increased 17% to £70m as a result of increased
activity levels, together with higher fee levels following the introduction of
new personal product offerings which will provide a comprehensive and
innovative range of banking services to customers across the African market.

Operating costs grew £8m to £87m and reflected costs of £2m to establish new
branch operations in Tanzania and the effect of high levels of inflation in
Zimbabwe.

Provisions for bad and doubtful debts increased slightly to £16m but were
lower than in the second half of 2000.



Barclays Capital

Barclays Capital conducts the Group's investment banking business.  As the
Group's principal point of access to the wholesale markets, it provides
corporate, institutional and government clients with solutions to their
financing and risk management needs.

The Barclays Capital business model is distinctive and client driven.  It
focuses on a broad span of financing and risk management services in the
interest rate, foreign exchange and credit markets combined with capabilities
in commodities and equities.  Activities are split between two areas: Rates
which includes fixed income, foreign exchange, derivatives and money markets
sales, trading and research and prime brokerage; and Credit which includes
origination, sales, trading and research relating to loans, debt capital
markets, structured capital markets and private equity.

Barclays Capital now manages all wholesale client relationships in the UK and
internationally, having integrated the larger corporate and institutional
businesses which previously operated out of Corporate Banking.  This has
extended its client base in Europe, Latin America and the Middle East and is
enabling the delivery of a wider product range across the wholesale markets.

In the first half of the year Barclays Capital was the third (2000: 5th)
largest overall debt arranger* in Europe and eighth (2000: 12th) worldwide.

* Debt arranger includes loan, bond and medium term note activity and is
  regarded as one of the most comprehensive measures of market standing in debt
  capital markets activity.

                                                       Half-year ended
                                                 30.06.01   31.12.00   30.06.00
                                                       £m         £m         £m
Net interest income                                   312        259        253
Dealing profits                                       569        260        420
Net fees and commissions                              163        278        196
Other operating income                                 25         16         23
Total income                                        1,069        813        892
Total costs                                         (643)      (522)      (542)
Provisions for bad and doubtful debts                (49)       (25)       (41)
Operating profit                                      377        266        309
Restructuring costs                                   (1)        (2)          -
Profit before tax and exceptional items               376        264        309


Operating profit increased 22%, or £68m, to £377m (2000: £309m) as a result of
good performances across all activities, and demonstrating the strengths of
the business model.  During the first six months of the year, Barclays Capital
delivered strong organic income growth at 20%, benefiting from the investments
made in technology in prior years and from product and client coverage and
distribution capabilities.

Net interest income increased 23% to £312m (2000: £253m) mainly as a result of
greater activity in the UK and Europe offset by a small decline in the average
margin levels reflecting a higher average asset quality.  The growth in net
interest income was spread across money markets, credit portfolio and
structured capital markets.

Dealing profits rose 35% to £569m (2000: £420m).  Dealing profits have been
strong across all activities with growth driven primarily by government bonds,
foreign exchange, debt capital markets and credit repackaging.  This improved
performance resulted from better market conditions and a balanced contribution
across different activities.

The growth in operating profit was achieved with a 5% lower average daily
value at risk (DVAR) (2001: £17.0m, 2000: £17.9m).  Weighted risk assets grew
12% to £51.2bn, but weighted risk assets in the credit portfolio were kept at
£17.9bn, the same level as June 2000.

Net fees and commissions fell 17% to £163m (2000: £196m) mainly due to reduced
merger and acquisition financing volumes in the syndicated loan market.  Net
fees and commissions include £42m (half year ended 31st December 2000 £46m,
half year ended 30th June 2000 £35m) internal fees for structured capital
markets activities arranged by Barclays Capital.

Provisions for bad and doubtful debts increased to £49m (2000: £41m).
Provisions mainly related to overseas exposures.

Total costs rose 19% to £643m (2000: £542m).  Business as usual costs grew 9%
reflecting the effect of headcount increases and higher trading volumes.
Headcount at the end of the first half of 2001 increased by 15% to 5,300
compared to the same point last year.  Notwithstanding the substantial
investments made in new capability over the last 12 months, staff costs were
50% of total operating income less provisions (2000: 49%).  There was
increased strategic investment expenditure mainly in respect of product,
client coverage and distribution capabilities.  Revenue related costs grew as
a result of higher performance related remuneration.


Barclays Global Investors

Barclays Global Investors (BGI) is one of the world's largest institutional
asset managers and the world's largest provider of structured investment
solutions such as indexing, tactical asset allocation and quantitative active
strategies.  BGI delivers high value investment products and strategies to
clients by managing all dimensions of performance: return, risk and cost.  BGI
also adds value to its product range through value chain extensions such as
securities lending, cash management, securities crossing and portfolio
transition services.  BGI counts some of the most sophisticated investing
institutions in the world among its 2,400 clients, in over 40 countries.

During the first half of 2001 BGI sold its US asset administration unit to
Investors Bank & Trust Company (IBT), which provides asset administration
services for the financial services industry.  The unit provided custody,
accounting, administration and other back office operations functions.  This
alliance will enable BGI to focus on its core competencies of product
development and investment management.


                                                  Half-year ended
                                               30.06.01 31.12.00 30.06.00
                                                     £m       £m       £m
Net interest income                                   3        1        5
Net fees and commissions                            249      239      196
Other operating income                                -      (1)        -
Total income                                        252      239      201
Total costs                                       (219)    (214)    (167)
Operating profit before tax and exceptional items    33       25       34


Operating profit of £33m was at a similar level to the first six months of
2000.

Fees and commissions increased by £53m or 27% to £249m (2000: £196m) despite
lower market levels compared with the same period last year.  Some £20m of the
growth in fees was attributable to exchange rate movements.  Revenue growth
was driven by new client asset levels and cross-selling, strong active
investment performance and new revenues from strategic investment initiatives,
such as global securities lending, transition services and exchange traded
funds.

Total costs increased £52m, or 31%, reflecting an increase in headcount and
compensation costs and an increase in strategic and systems investments.  Some
£17m of the increase in costs was attributable to exchange rate movements.
Costs grew by £5m or 2% over the second half of 2000 as a result of limited
hirings in 2001.  Strategic investment expenditure increased to £24m (2000:
£21m).

Total assets under management fell less than 1% to £548bn (2000: £550bn).
This was the net result of increases of £16bn attributable to net new assets,
£32bn due to exchange rate translation movements and a reduction of £50bn
attributable to adverse market movements.  Assets under management consist of
£455bn of indexed funds and £93bn under advanced active management.


Other operations

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

Central services includes certain activities which support the operating
businesses and Service Provision which provides central information technology
services.

Within management of Group capital are certain central items including
residual balances arising from centrally managed transition businesses.

The Group maintains hedges with respect to its capital and its current account
balances, which are designed both to reduce the impact of short-term interest
rate fluctuations on profits and to increase profitability over the interest
rate cycle.  The hedges increase profitability when average short-term
interest rates are lower than average medium-term interest rates and depress
profitability when average short-term interest rates are higher than average
medium-term interest rates.  Earnings on centrally held Group capital are
allocated to business groups on the basis of economic capital.


                                                      Half-year ended
                                               30.06.01      30.12.00  30.06.00
                                                     £m            £m        £m
Property costs                                       14            27         1
Central services                                   (12)          (16)      (10)
Management of Group capital*                        (9)            17       (2)
Operating (loss)/profit                             (7)            28      (11)
Woolwich integration costs                          (3)             -         -
Restructuring costs                                (23)          (31)      (13)
Loss before tax and exceptional items              (33)           (3)      (24)



*     Management of Group capital is after charging £42m (half year ended 31st
      December 2000 £46m, half year ended 30th June 2000 £35m) internal fees for
      structured capital markets activities arranged by Barclays Capital.

Management of Group capital includes £9m further releases of provisions,
albeit at lower levels than in 2000, offset by increased internal fees.  The
credit to property costs in the second half of 2000 included increased profits
on disposal of properties.


Head office functions

Head office functions comprise all the Group's central costs, including Group
executive, Group finance, corporate communications, human resources, corporate
planning, audit, marketing, legal, corporate secretariat and risk.  Costs
incurred wholly on behalf of the business units are recharged to them.

                                                     Half-year ended
                                          30.06.01         31.12.00   30.06.00
                                                £m               £m         £m
Operating cost                                (46)             (30)       (17)
Restructuring costs                            (2)              (9)        (2)
Total                                         (48)             (39)       (19)


Operating costs in the first half of 2001 include increased expenditure on
strategic initiatives which in total amounted to £19m and are held centrally
on behalf of the Group.


Restructuring charge


                                                      Half-year ended
                                               30.06.01      31.12.00  30.06.00
                                                     £m            £m        £m

Staff costs                                          48            79        92
Administrative expenses - other                      15            47        14
                                                     63           126       106

Of the total restructuring charge for the six months to 30th June 2001 of £63m,
the main elements relate to Service Provision (£22m), Business Banking (£13m)
and Personal Financial Services (£12m).

Expenditure of £10m was incurred in the half year against the provisions
raised for the 1999 programme, a further £38m in respect of the 2000 programme
and £25m in respect of the 2001 programme.  Accrued provision at 30th June
2001 amounted to £122m (31st December 2000: £132m).


                                                      Half-year ended
Woolwich integration costs                     30.06.01      31.12.00  30.06.00
                                                     £m            £m        £m

Staff costs                                           8             1         -
Administrative expenses - other                      11             6         -
                                                     19             7         -


Total integration costs, including those incurred in 2000 in respect of the
acquisition of Woolwich plc, are expected to be in the order of £200m by the
end of 2003.  Integration costs are expected to increase in the second half of
2001.


Woolwich integration synergies

Actual synergies achieved in the six months ended 30th June 2001 were as     £m
follows:
Gross revenue synergies                                                      12
Attributable operating costs                                                (6)
Net revenue synergies                                                         6
Cost savings                                                                 15
Avoided costs                                                                 9
Total pre-tax effect                                                         30


The Group expects to realise pre-tax synergies of more than £400m per annum
from 1st January 2004.  This is represented by pre-tax annual cost savings of
at least £150m and pre-tax revenue synergies, net of attributable costs, of at
least £250m.  It is estimated that pre-tax cost and revenue synergies
totalling at least £80m will be achieved by the end of 2001.

Revenue synergies do not include a one-off gain of £33m arising from the
closure of surplus hedge positions in Personal Financial Services and Barclays
Private Clients which were no longer required following the acquisition of
Woolwich plc.


Shareholder Value

Barclays is focused on delivering superior value creation for shareholders
through creation and delivery of superior products and services to customers.
Barclays uses value-based management (VBM) to align management decision taking
at all levels of the Barclays Group with the interests of its shareholders.

Through VBM, Barclays has a disciplined focus on strategy development and
business planning to realise sustainable competitive advantage.  Group
businesses undertake strategy development based on generation of alternative
business models to enable identification and selection of the value-maximising
alternatives.  The aim is to focus on profitable growth in all our businesses
by systematically looking for opportunities to achieve it.

In order to manage for value, demanding performance goals have been
established which are explicitly linked to shareholder value and are
consistent with being a top-tier performer.  These performance goals are now
specified in terms of three primary measures of shareholder value performance
- total shareholder returns relative to peers, growth in economic value and
economic profits.


Total Shareholder Returns

Total Shareholder Returns (TSRs) are defined as the combination of share price
appreciation and dividend yield realised by investors.  Our goal is to achieve
and sustain top quartile TSRs relative to our peers.

In the year to 31 December 2000, Barclays achieved TSR in the second quartile
relative to our peer group.  In the half year to 30 June 2001, Barclays
achieved TSR in the top quartile relative to our peer group.

The TSR calculations for the six months to 30th June 2001 and the previous
twelve months to 31st December 2000 for Barclays and peer group average are as
follows:


                          Half Year to 30 June 2001    Year to 31 December 2000

Barclays TSR                                   7.2%                       20.6%
Comparator Group* TSR                          1.2%                       21.0%



*    Abbey National, ABN Amro, Bank of Scotland, Citigroup, Halifax, HSBC,
     Lloyds TSB, Prudential, Royal Bank of Scotland, Standard Chartered and UBS.


Economic Value

Our value goal is to double the value of an investment in Barclays shares
every four years.  This corresponds to a 19% increase in value every year, and
includes both dividend payments (treated as if reinvested in Barclays shares)
and share price appreciation.  Our belief is that the goal to double value
every four years is consistent with our goal of sustained top quartile TSR
performance relative to our peers.

An investment of £100 in Barclays shares at the end of 1999, with net
dividends reinvested, grew in value to £129 at the end of June 2001, an
increase of 29% compared with our goal of 30% across the 18 month period
(2000: increase of 21% compared to our goal of 19%).


Economic Capital and Economic Profit

The quantum of economic capital, which is distinct from regulatory capital, is
derived from an estimate of risk based on contribution to overall Group
volatility.  Each business group is charged for its use of economic capital,
which attracts a cost of risk.  The cost of risk is deducted from profit after
tax and minority interests to arrive at economic profit.

Economic profit is the post-tax attributable profit generated by a business
over and above the cost of capital.  Our goal is to double the economic profit
of the Group over four years, consistent with our TSR and value goals.

Economic profit for the Group is defined as profit after tax and minority
interests excluding goodwill amortisation, less a charge for the cost of
average shareholders' funds (which includes purchased goodwill).  This is
calculated using a capital asset pricing model.  The assumptions made include
estimates of the future equity market risk premium of 4.0% and the relative
risk of Barclays shares compared to the FTSE, measures by beta.  A forward
looking beta of 1.2 has been used.  The cost of average shareholders' funds
decreased to 10.5% from 11% last year, primarily as a result of lower overall
interest rates.

The use of economic capital is an integral part of value-based management.

                                                       Half-year ended
                                                     30.06.01 31.12.00 30.06.00
                                                           £m       £m       £m
Profit after tax and minority interests (excluding
goodwill amortisation)
                                                        1,420    1,194    1,326

Average shareholders' funds                            14,090   11,058    9,193
Post tax cost of equity                                 10.5%      11%      11%
                                                
Cost of average shareholders' funds*                    (698)    (584)    (507)
Economic profit                                           722      610      819


*     A post tax cost of equity of 8.5% has been used for Woolwich plc
      goodwill.  The cost includes a charge for purchased goodwill.

Economic capital and economic profit by business are set out below:

                                                 Average economic capital
                                                     Half-year ended
                                             30.06.01 31.12.00 30.06.00
                                                   £m       £m       £m
Personal Financial Services                     1,300    1,200    1,200
Woolwich*                                         900      400      200
Barclays Private Clients                          800      800      800
Barclaycard                                     1,000    1,000      900
Business Banking                                2,200    2,200    2,200
Africa                                            200      200      200
Barclays Capital                                1,800    1,700    1,700
Barclays Global Investors                         100      100      100
Other operations                                  500      600      600
Head office functions                               -        -        -
Average economic capital                        8,800    8,200    7,900
Goodwill **                                     4,600    2,100      500
Variance to average shareholders' funds ***       700      800      800

Total average shareholders' funds              14,100   11,100    9,200



*    Average economic capital for Woolwich includes capital attributable
     to Barclays mortgage business and for Woolwich plc from 25 October 2000.
**   The movement in average goodwill primarily reflects the acquisition of
     Woolwich plc on the 25th October 2000.
***  The variance to average shareholders' funds represents the variance
     between average economic capital by business and average shareholders'     
     funds.


                                                        Economic profit
                                                        Half-year ended
                                                   30.06.01  31.12.00  30.06.00
                                                         £m        £m        £m
Personal Financial Services                             116       107        22
Woolwich                                                100        55        57
Barclays Private Clients                                189       169       189
Barclaycard                                             123       102       112
Business Banking - operating                            284       236       250
                 - sale of subsidiary                     -         -       186
Africa                                                   25        18        10
Barclays Capital                                        138        70       102
Barclays Global Investors                                17         6        15
Other operations                                       (34)      (20)      (52)
Head office functions                                  (12)      (18)      (21)
Economic profit                                         946       725       870
Goodwill ****                                         (201)      (89)      (25)
Variance to average shareholders' funds                (23)      (26)      (26)
Economic profit                                         722       610       819

****   Cost of equity charge on unamortised goodwill.


Risk tendency

The Group uses a grading structure which estimates the probability of default
by different categories.  This, together with similar risk calibration of
categories of personal sector lendings, is used for the overall lending
portfolio averaged across the economic cycle (termed risk tendency).

Risk tendency estimates assist in portfolio management decisions, such as
exposure limits to any single counterparty or borrower, the desired aggregate
exposure levels to individual sectors and pricing policy.  These estimates
also provide a guide to changes in the underlying credit quality of the
lending portfolio over time.

The methodology is continuously refined to provide a better understanding of
the credit risks being taken.


Based upon the composition of the lending portfolio as at 30th June 2001, the
risk tendency is estimated at £1,100m (31st December 2000: £1,030m).  The
increase is primarily a reflection of asset growth across the Group.

                                                Risk Tendency
                                30.06.01      31.12.00           30.06.00
                                      £m            £m                 £m
Personal Financial Services          255           240                205
Woolwich*                            110            95                 25
Barclays Private Clients              45            45                 40
Barclaycard                          310           300                255
Business Banking                     220           215                205
Africa                                25            20                 15
Barclays Capital                     135           115                 85
                                   1,100         1,030                830


*         Includes Barclays Mortgage business only at 30th June 2000.

On a pro forma basis, assuming Woolwich plc was acquired on 1st January 2000,
risk tendency as at 30th June 2000 would have been £900m.



                            ADDITIONAL INFORMATION

CHANGES IN REPORTING OF GROUP STRUCTURE IN 2001


During 2000, significant changes were made to the Group's organisational
structure, moving from five major business groups to an organisation based on
strategic business units (SBUs), which are supported by shared services.  Each
SBU has been tasked with identifying and implementing value-maximising
strategies, and achieving these by creating advantage for customers through
superior products and services.

From 1st January 2001, for reporting purposes, the SBUs have been organised
into the following business groups:


-      Personal Financial Services (previously UK Personal Customers)
-      Woolwich
-      Barclays Private Clients (previously Wealth Management)
-      Barclaycard
-      Business Banking
-      Africa
-      Barclays Capital
-      Barclays Global Investors


Group structure changes from 2000

The figures in the business group analyses have been restated to take account
of the following changes relative to 2000:

Retail Financial Services is presented as three separate business groups for
reporting purposes - Personal Financial Services, Woolwich and Barclays
Private Clients.

The Masterloan consumer lending business, the Investment Management business,
Barclays mortgage business (which were all part of UK Personal Customers), UK
Small Business and Africa are no longer reported within Retail Customers.  The
Masterloan business is now part of Barclaycard, the Investment Management
business is now part of Barclays Private Clients and the Barclays mortgage
business is now part of Woolwich.  UK Small Business is now reported within
Business Banking and Africa (including Egypt) is reported separately.

The wholesale clients within the UK and international large commercial banking
businesses previously reported within Corporate Banking are now managed by and
reported within Barclays Capital.

The majority of central and head office costs have been re-allocated to the
business groups based on the utilisation of the services supplied.

Operating profit for business groups includes allocations of notional interest
based on economic capital.  This was previously allocated on the basis of
regulatory capital.


ACQUISITIONS AND DISPOSALS

The Group has a 50% shareholding in Banco Barclays e Galicia, which since 1st
January 2001 has been consolidated as a subsidiary undertaking.  Barclays is
seeking to acquire the balance of shares through a tender offer in Brazil.

Details of significant disposals are set out under exceptional items on page 24.


ACCOUNTING POLICIES

There have been no significant changes to the Group's accounting policies
following the adoption in 2001 of Financial Reporting Standard 18 'Accounting
Policies'.

Financial Reporting Standard 19 'Deferred Tax' and Financial Reporting
Standard 17 'Retirement Benefits' will be fully effective for the years ending
31 December 2002 and 2003 respectively.

There have been no other significant changes to the accounting policies as
described in the 2000 Annual Report.



CHANGES IN ACCOUNTING PRESENTATION

Barclays Capital operating profit now includes internal fees received from
management of Group capital in relation to structured capital market
activities.

Operating profit for business groups includes allocations of notional interest
based on economic capital.  For geographic analysis of the profit before tax,
earnings on capital are allocated on the basis of the geographic location of
capital.  Previously earnings on capital was allocated on the basis of
regulatory capital.

Credit risk and country risk provisions for bad and doubtful debts are now
reported in total having previously been shown separately.  Country risk
provisions are now included in the coverage ratios for potential credit risk
lendings.

There have been no other changes in accounting presentation from that
reflected in the 2000 Annual Report.

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 U.S. Securities and
Exchange Commission.



OTHER INFORMATION

The interim report for the six months to 30th June 2001, including extracts
from this announcement and the independent review report by the auditors, will
be advertised in The Times, the Daily Mail and The Scotsman on 3rd August
2001.  Copies will be available to the public at Barclays registered office.



RECENT DEVELOPMENTS

On 23rd July 2001 Barclays announced that it was in advanced discussions with
Canadian Imperial Bank of Commerce, with the intention of combining their
Caribbean retail, corporate and offshore banking operations to create
FirstCaribbean International BankTM.  Barclays Private Banking and CIBC Wealth
Management businesses and their clients are not included in the scope of the
discussions and would remain under their respective Barclays and CIBC
ownership.

From 30th July 2001 Securitas Cash Management Limited, a subsidiary of
Securitas UK Limited, will be providing wholesale sterling cash services to
Barclays Bank PLC.  Previously, similar activities had been performed
in-house.


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