1st Quarter Results

RNS Number : 0167X
Barclays PLC
25 April 2019
 

 

Barclays PLC

Results Announcement

 

31 March 2019

 

 

Performance Highlights

 

Resilient performance with Group return on tangible equity of 9.6%1

 

·

Barclays has continued to implement its strategy in pursuit of improved returns for shareholders

·

Financial targets remain unchanged. Barclays is focused on achieving the 2019 and 2020 Group return on tangible equity (RoTE) targets of >9% and >10% respectively

·

The income environment in the quarter was challenging and if this were to persist for the remainder of the year Barclays expects to reduce costs below the Group cost guidance of £13.6-13.9bn for 2019

 

 

Returns1

 

Group RoTE targets of >9% in 2019 and >10% in 2020

·

Profit before tax of £1.5bn (Q118: £1.7bn) and earnings per share (EPS) of 6.3p (Q118: 7.1p)

·

Group RoTE of 9.6% (Q118: 11.0%)
-

Barclays UK RoTE of 16.4% (Q118: 15.7%)
-

Barclays International RoTE of 10.6% (Q118: 13.6%), with the Corporate and Investment Bank (CIB) RoTE of 9.5% (Q118: 13.2%), in the challenging income environment, and Consumer, Cards and Payments of 15.4% (Q118: 15.7%)

Cost efficiency

 

Group cost guidance of £13.6-13.9bn1 in 2019

Cost: income ratio of <60% over time

·

Group operating expenses1 decreased 3% to £3.3bn, resulting in a cost: income ratio of 62% (Q118: 63%) and positive cost: income jaws for the Group

·

2019 Group cost guidance remains unchanged at £13.6-13.9bn. However, should the challenging income environment experienced in Q119 continue, management expect to reduce 2019 costs below £13.6bn

Capital and dividends

 

At end-state CET1 ratio target of c.13%

·

Common equity tier 1 (CET1) ratio of 13.0% (December 2018: 13.2%), as 39bps of organic capital generation from profits was offset by a £7.8bn increase in Risk Weighted Assets (RWAs) primarily due to seasonality, 14bps from dividends paid and foreseen, and 8bps relating to employee share awards

·

Maintain our capital returns policy, incorporating a progressive ordinary dividend, supplemented by share buybacks as and when appropriate

 

·

Barclays Group profit before tax was £1.5bn (Q118: loss of £0.2bn). Excluding litigation and conduct, Group profit before tax was £1.5bn (Q118: £1.7bn). Income was down 2% and operating expenses were reduced by 3%. The cost: income ratio was 62% (Q118: 63%). Credit impairment charges increased to £0.4bn (Q118: £0.3bn) and were £0.2bn lower than in Q418, which included a £150m specific charge for the impact of the anticipated economic uncertainty in the UK

·

Barclays UK profit before tax increased to £0.6bn (Q118: £0.2bn). Excluding litigation and conduct, profit before tax increased 1% to £0.6bn reflecting a 5% reduction in credit impairment charges due to a reduced risk appetite and continued benign economic environment. Operating expenses decreased 1% reflecting improved operating efficiency, partially offset by continued investment in digital. Income declined 1%, as continuing margin pressures were partially offset by sustainable growth in mortgages and deposits

·

Barclays International profit before tax decreased to £1.1bn (Q118: £1.4bn), reflecting challenging markets for the CIB. Income was down 6%, as growth in Consumer, Cards and Payments was more than offset by the reduction in CIB, reflecting reduced client activity, lower volatility and a smaller banking fee pool across the industry2. Operating expenses reduced by 4% as variable compensation accruals were reduced, reflecting income performance in the CIB. Credit impairment charges increased by £0.2bn, due to the non-recurrence of a favourable US macroeconomic forecast update in Q118

·

Attributable profit was £1.0bn (Q118: loss of £0.8bn). This reflected the non-recurrence of Q118 litigation and conduct charges of £2.0bn, principally relating to the Residential Mortgage Backed Securities settlement and Payment Protection Insurance (PPI). Basic earnings per share was 6.3p (Q118: 7.1p) excluding litigation and conduct

·

Tangible net asset value (TNAV) per share increased 4p in Q119 to 266p as 6.3p of EPS, excluding litigation and conduct, was partially offset by reserve movements, including the impact of changes in FX, the pension re-measurement and employee share awards

 

1

Excluding litigation and conduct, with returns targets based on a Barclays Group CET1 ratio of c.13%.

2

Source: Dealogic.

 

James E Staley, Group Chief Executive Officer, said:

 

"Today we have announced that Barclays earned just over £1bn of attributable profit in the first quarter of 2019, or 6.1 pence per share.

 

Group RoTE was 9.2% in spite of a mixed environment for global banks. TNAV increased 4p to 266p, which has now grown in each of the last four quarters.

 

Group profits before tax were £1.5bn, with positive jaws driven by a 3% reduction in costs, excluding litigation and conduct, versus a 2% reduction in revenues.

 

Barclays UK produced a strong RoTE of 16.4%, excluding litigation and conduct - an improvement on an increased equity base compared to Q1 of 2018, which included a 12% increase in Business Banking income.

 

Barclays International also delivered a double digit RoTE of 10.6%, excluding litigation and conduct, though this was down from a very profitable comparable period last year.

 

Within Barclays International, our Consumer Cards & Payments business had another good quarter, with improved performance in our US franchise in particular, driving a RoTE of 15.4%.

 

Our Corporate and Investment Bank achieved a RoTE of 9.5%, compared to 13.2% in Q1 of 2018. From a revenue perspective, we had a weak quarter in investment banking fees.

 

Our Markets business outperformed US peer average for the sixth consecutive quarter, and like Q1 last year, generated a double-digit return on tangible equity.

 

Our total operating expenses in the first quarter were £3.3bn. Three years ago, we took a charge of just under £400m to allow us to better align variable compensation accruals with the firm's revenues.

 

What you see in the first quarter is Barclays using this discretion around variable compensation to manage our costs and deliver expected profitability.

 

A 9.6% RoTE, excluding litigation and conduct, in the first quarter of this year is a good step towards our objective of delivering a RoTE of greater than 9% in 2019 and greater than 10% in 2020."

 

James E Staley, Group Chief Executive Officer

 

Barclays Group results

 

for the three months ended

31.03.19

31.03.18

 

 

£m

£m

% Change

Total income

5,252

5,358

(2)

Credit impairment charges and other provisions

(448)

(288)

(56)

Net operating income

4,804

5,070

(5)

Operating expenses

(3,257)

(3,364)

3

Litigation and conduct

(61)

(1,961)

97

Total operating expenses

(3,318)

(5,325)

38

Other net (expenses)/ income

(3)

19

 

Profit/(loss) before tax

1,483

(236)

 

Tax charge1

(248)

(304)

18

Profit/(loss) after tax

1,235

(540)

 

Non-controlling interests

(17)

(53)

68

Other equity instrument holders1

(180)

(171)

(5)

Attributable profit/(loss)

1,038

(764)

 

 

 

 

 

Performance measures

 

 

 

Return on average tangible shareholders' equity1

9.2%

(6.5%)

 

Average tangible shareholders' equity (£bn)

45.2

44.2

 

Cost: income ratio

63%

99%

 

Loan loss rate (bps)

54

36

 

Basic earnings/(loss) per share1

6.1p

(4.2p)

 

  

 

 

 

Performance measures excluding litigation and conduct2

 

 

 

Profit before tax

1,544

1,725

(10)

Attributable profit

1,084

1,166

(7)

Return on average tangible shareholders' equity1

9.6%

11.0%

 

Cost: income ratio

62%

63%

 

Basic earnings per share1

6.3p

7.1p

 

 

 

 

 

 

As at 31.03.19

As at 31.12.18

 As at 31.03.18

Balance sheet and capital management3

£bn

£bn

£bn

Tangible net asset value per share

266p

262p

251p

Common equity tier 1 ratio

13.0%

13.2%

12.7%

Common equity tier 1 capital

41.4

41.1

40.2

Risk weighted assets

319.7

311.9

317.9

UK leverage ratio

4.9%

5.1%

4.8%

UK leverage exposure

1,065

999

1,031

Average UK leverage ratio

4.6%

4.5%

4.6%

Average UK leverage exposure

1,106

1,110

1,090

 

 

 

 

Funding and liquidity

 

 

 

Group liquidity pool (£bn)

232

227

207

Liquidity coverage ratio

160%

169%

147%

Loan: deposit ratio

80%

83%

84%

 

 

 

 

 

1

From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.

2

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

3

Capital, RWAs and leverage measures are calculated applying the transitional arrangements of the Capital Requirements Regulation (CRR). This includes IFRS 9 transitional arrangements.

4

The fully loaded CET1 ratio was 12.6%, with £40.3bn of CET1 capital and £319.6bn of RWAs, calculated without applying the transitional arrangements of the CRR.

 

Group Finance Director's Review

 

The Group return on tangible equity, excluding litigation and conduct, was 9.6% with earnings per share of 6.3p. Income decreased 2% and operating expenses were reduced by 3% resulting in positive jaws and an improved cost: income ratio of 62%.

 

Group performance

 

·

Profit before tax was £1,483m (Q118: loss of £236m). Excluding litigation and conduct, profit before tax was £1,544m (Q118: £1,725m), reflecting the challenging income environment for the CIB, and an increase in impairment due to the non-recurrence of a favourable US macroeconomic forecast update in Q118. The 6% appreciation of average USD against GBP positively impacted profits

·

Total income decreased 2% to £5,252m. Barclays UK income decreased 1% reflecting margin pressures partially offset by continued balance sheet growth. Barclays International income decreased 6%, as the impact of the challenging income environment for the CIB were partially offset by 6% growth in Consumer Cards and Payments

·

Credit impairment charges increased to £448m (Q118: £288m) primarily driven by the non-recurrence of a favourable US macroeconomic forecast update in Q118. There were no significant changes in the macroeconomic variables used in impairment modelling during the quarter. Delinquencies in unsecured lending remained stable, reflecting the continued prudent management of credit risk. The Barclays Group loan loss rate was 54bps (Q118: 36bps)

·

Operating expenses of £3,257m reduced by 3% driven by lower variable compensation accruals in CIB, reflecting reduced income, whilst investment to grow the business and improve future operating efficiency continued. The cost: income ratio, excluding litigation and conduct, reduced to 62% (Q118: 63%)

·

The effective tax rate was 16.7%, which reflected a change in accounting standards from 2019 requiring tax relief on payments made under Additional Tier 1 (AT1) instruments, which in prior periods was recognised in retained earnings but taken into account for RoTE and EPS calculations, to be recognised in the income statement

·

Attributable profit was £1,038m (Q118: loss of £764m). Excluding litigation and conduct, attributable profit was £1,084m (Q118: £1,166m), generating a RoTE of 9.6% (Q118: 11.0%) and EPS of 6.3p (Q118: 7.1p)

·

TNAV per share increased 4p in Q119 to 266p as 6.3p of EPS, excluding litigation and conduct, was partially offset by reserve movements, including the impact of changes in FX, the pension re-measurement and employee share awards

 

Barclays UK

 

·

RoTE excluding litigation and conduct was 16.4% (Q118: 15.7%) reflecting the continuing strength of the Barclays UK business

·

Total income decreased 1% to £1,777m as lower lending margins were partially offset by continuing mortgage and deposit growth

 

-

Personal Banking income decreased 1% to £964m, reflecting continuing mortgage margin pressure, partially offset by mortgage and deposit balance growth and improved liability margins

 

-

Barclaycard Consumer UK income decreased 7% to £490m reflecting the continued reduced risk appetite in light of economic uncertainty

 

-

Business Banking income increased 12% to £323m driven by strong deposit growth and the non-recurrence of a client remediation provision in Q118

 

-

Net interest margin decreased 2bps in Q119 to 3.18% driven by continuing pressure on mortgage margins and the mix effect from the focus on growing secured over unsecured lending

·

Credit impairment charges decreased 5% to £191m reflecting the continued reduced credit risk appetite and benign UK economic environment as reflected in the stable 30 and 90 day arrears rates in UK cards of 1.9% (Q118: 2.0%) and 0.9% (Q118: 0.9%) respectively

·

Operating expenses, excluding litigation and conduct, decreased 1% to £999m as continued investment to grow the business, including digitisation, was offset by the non-recurrence of Q118 ring-fencing set-up costs and cost efficiencies. The cost: income ratio, excluding litigation and conduct, was 56% (Q118: 56%)

·

RWAs increased to £76.6bn (December 2018: £75.2bn) including the recognition of property leases following IFRS 16 implementation and change in mix of the liquidity pool

 

Barclays International

 

·

Profit before tax, excluding litigation and conduct, decreased 20% to £1,137m resulting in a RoTE of 10.6% (Q118: 13.6%), reflecting reduced returns in the CIB of 9.5% (Q118: 13.2%) and Consumer, Cards and Payments of 15.4% (Q118: 15.7%)

·

The 6% appreciation of average USD against GBP positively impacted profits and income, and adversely impacted credit impairment charges and operating expenses

·

Total income decreased 6% to £3,570m

 

-

CIB income of £2,505m decreased 11% reflecting reduced client activity, lower volatility and a smaller banking fee pool across the industry1. Markets income decreased 6% to £1,369m, Banking fees income decreased 17% to £569m, and Corporate income decreased 13% to £567m

 

 

-

Within Markets, FICC income increased 4% to £902m driven by a strong performance in Rates. Equities income decreased 21% to £467m driven by equity derivatives which was impacted by reduced client activity and subdued volumes, compared to a strong Q118 that saw higher levels of volatility

 

 

-

Banking fees income decreased 17% to £569m reflecting the reduced fee pool across the industry and a strong Q118. Barclays share of the global fee pool has increased since FY181

 

 

-

Within Corporate, Corporate lending income reduced to £152m (Q118: £240m). Excluding mark-to-market movements on loan hedges, Corporate lending income was stable at c.£200m. Transaction banking income was stable at £415m (Q118: £414m)

 

-

Consumer, Cards and Payments income increased 6% to £1,065m reflecting growth in US cards partnership portfolio business and FX

·

Credit impairment charges increased to £245m (Q118: £93m)

 

-

CIB credit impairment charges increased to £52m (Q118: release of £159m) primarily due to the non-recurrence of a favourable US macroeconomic forecast update in Q118

 

-

Consumer, Cards and Payments credit impairment charges decreased 23% reflecting less pronounced seasonal effects. Credit metrics were stable, with US cards 30 and 90 day arrears of 2.6% (Q118: 2.6%) and 1.4% (Q118: 1.4%) respectively

·

Total operating expenses decreased 4% to £2,225m as variable compensation accruals were reduced in response to the income performance in the quarter

·

RWAs increased to £216.1bn (December 2018: £210.7bn), driven by increased CIB seasonal activity

 

Head Office

 

·

Loss before tax, excluding litigation and conduct, was £181m (Q118: £284m). Including litigation and conduct charges of £39m (Q118: £1,535m), loss before tax was £220m (Q118: £1,819m)

·

Total income was an expense of £95m (Q118: £238m) which included legacy capital instrument funding costs and hedge accounting expenses partially offset by the recognition of dividends on Barclays stake in Absa Group Limited. The reduction on prior year reflects lower net expenses from treasury operations

·

Operating expenses, excluding litigation and conduct, decreased to £52m (Q118: £59m)

·

RWAs increased to £27.0bn (December 2018: £26.0bn) driven by recognition of property leases following IFRS 16 implementation

 

1

Source: Dealogic.

 

Group capital and leverage

 

·

The CET1 ratio remained at the end-state target of c.13% having decreased to 13.0% in the quarter (December 2018: 13.2%), primarily due to an increase in RWAs of £7.8bn partially offset by a £0.3bn increase in CET1 capital

 

-

The increase in RWAs was principally due to seasonality in the CIB and the implementation of IFRS 16 within Barclays UK and Head Office

 

-

CET1 capital increased by £0.3bn to £41.4bn as underlying profit generation of £1.2bn, was partially offset by £0.5bn for dividends paid and foreseen and £0.3bn from share awards

·

The average UK leverage ratio increased to 4.6% (December 2018: 4.5%) primarily driven by the issuance of AT1 securities, and was flat year-on-year. The average UK leverage exposure was stable at £1,106bn (December 2018: £1,110bn). The UK leverage ratio decreased to 4.9% (December 2018: 5.1%) primarily driven by a seasonal increase in balances, partially offset by an increase in capital, including the issuance of AT1 securities

 

Group funding and liquidity

 

·

The liquidity pool increased to £232bn (December 2018: £227bn) reflecting the Group's prudent liquidity management approach, given the prevailing macroeconomic uncertainty, while continuing to support seasonal business activity. The liquidity coverage ratio (LCR) remained well above the 100% regulatory requirement at 160% (December 2018: 169%), equivalent to a surplus of £84bn (December 2018: £90bn). The LCR declined in the quarter reflecting the seasonal increase in business activity. The Group also continued to maintain surpluses to its internal liquidity requirements

·

Wholesale funding outstanding, excluding repurchase agreements, was £158bn (December 2018: £154bn). The Group issued £2.2bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments year-to-date from Barclays PLC (the Parent company). The Group is well advanced in its MREL issuance plans, with a Barclays PLC MREL ratio of 27.7% as at 31 March 2019 relative to an estimated requirement including requisite buffers of 29.9% by 1 January 2022

 

Other matters

 

·

The remaining PPI provision as at 31 March 2019 was £0.6bn (December 2018: £0.9bn) to cover claims through to the deadline of 29 August 2019

·

Following regulatory approval, Barclays intends to redeem its £3bn 14% Reserve Capital Instruments to be effected on 15 June 2019, which will result in an ongoing earnings benefit

 

Outlook

 

·

The Group continues to target 2019 and 2020 RoTE of >9% and >10% respectively. The Group cost guidance for 2019 remains £13.6-13.9bn. However, should the challenging income environment experienced in Q119 persist, management expect to reduce 2019 costs below £13.6bn

 

Tushar Morzaria, Group Finance Director

 

Quarterly Results Summary

 

Barclays Group

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q2171

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

2,258

 

2,296

2,388

2,190

2,188

 

2,272

2,475

2,579

Net fee, commission and other income

2,994

 

2,777

2,741

3,386

3,170

 

2,750

2,698

2,479

Total income

5,252

 

5,073

5,129

5,576

5,358

 

5,022

5,173

5,058

Credit impairment charges and other provisions

(448)

 

(643)

(254)

(283)

(288)

 

(573)

(709)

(527)

Net operating income

4,804

 

4,430

4,875

5,293

5,070

 

4,449

4,464

4,531

Operating costs

(3,257)

 

(3,624)

(3,329)

(3,310)

(3,364)

 

(3,621)

(3,274)

(3,398)

UK bank levy

-

 

(269)

-

-

-

 

(365)

-

-

Operating expenses

(3,257)

 

(3,893)

(3,329)

(3,310)

(3,364)

 

(3,986)

(3,274)

(3,398)

Guaranteed Minimum Pensions (GMP) charge

-

 

(140)

-

-

-

 

-

-

-

Litigation and conduct

(61)

 

(60)

(105)

(81)

(1,961)

 

(383)

(81)

(715)

Total operating expenses

(3,318)

 

(4,093)

(3,434)

(3,391)

(5,325)

 

(4,369)

(3,355)

(4,113)

Other net (expenses)/income

(3)

 

37

20

(7)

19

 

13

(2)

241

Profit/(loss) before tax

1,483

 

374

1,461

1,895

(236)

 

93

1,107

659

Tax charge

(248)

 

(145)

(240)

(433)

(304)

 

(1,138)

(324)

(305)

Profit/(loss) after tax in respect of continuing operations

1,235

 

229

1,221

1,462

(540)

 

(1,045)

783

354

Loss after tax in respect of discontinued operation

-

 

-

-

-

-

 

-

-

(1,537)

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

Ordinary equity holders of the parent

1,038

 

(76)

1,002

1,232

(764)

 

(1,294)

583

(1,401)

Other equity instrument holders

180

 

230

176

175

171

 

181

157

162

Non-controlling interests in respect of continuing operations

17

 

75

43

55

53

 

68

43

59

Non-controlling interests in respect of discontinued operation

-

 

-

-

-

-

 

-

-

(3)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Total assets

1,193.5

 

1,133.3

1,170.8

1,149.6

1,142.2

 

1,133.2

1,149.3

1,135.3

Tangible net asset value per share

266p

 

262p

260p

259p

251p

 

276p

281p

284p

Risk weighted assets

319.7

 

311.9

316.2

319.3

317.9

 

313.0

324.3

327.4

Average UK leverage exposure

1,105.5

 

1,110.0

1,119.0

1,081.8

1,089.9

 

1,044.6

1,035.1

1,092.2

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

9.2%

 

(0.1%)

9.4%

11.8%

(6.5%)

 

(10.3%)

5.1%

(11.0%)

Average tangible shareholders' equity (£bn)

45.2

 

44.3

44.6

43.5

44.2

 

48.1

48.9

49.3

Cost: income ratio

63%

 

81%

67%

61%

99%

 

87%

65%

81%

Loan loss rate (bps)2

54

 

77

30

35

36

 

56

66

49

Basic earnings/(loss) per share

6.1p

 

(0.1p)

6.1p

7.5p

(4.2p)

 

(7.3p)

3.7p

(8.0p)

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct3

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

1,544

 

434

1,566

1,976

1,725

 

476

1,188

1,374

Attributable profit/(loss)

1,084

 

(14)

1,087

1,291

1,166

 

(943)

660

(698)

Return on average tangible shareholders' equity

9.6%

 

0.4%

10.2%

12.3%

11.0%

 

(7.4%)

5.7%

(5.3%)

Cost: income ratio

62%

 

79%

65%

59%

63%

 

79%

63%

67%

Basic earnings/(loss) per share

6.3p

 

0.3p

6.6p

7.8p

7.1p

 

(5.3p)

4.1p

(3.8p)

 

1

Results included Barclays Non-Core and the Africa Banking discontinued operation; refer to pages 36 to 37 for further detail.

2

Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.

3

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Quarterly Results by Business

 

Barclays UK

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

1,469

 

1,513

1,529

1,493

1,493

 

1,540

1,501

1,534

Net fee, commission and other income

308

 

350

367

343

295

 

330

351

286

Total income

1,777

 

1,863

1,896

1,836

1,788

 

1,870

1,852

1,820

Credit impairment charges and other provisions

(191)

 

(296)

(115)

(214)

(201)

 

(184)

(201)

(220)

Net operating income

1,586

 

1,567

1,781

1,622

1,587

 

1,686

1,651

1,600

Operating costs

(999)

 

(1,114)

(988)

(968)

(1,005)

 

(1,117)

(980)

(974)

UK bank levy

-

 

(46)

-

-

-

 

(59)

-

-

Litigation and conduct

(3)

 

(15)

(54)

(3)

(411)

 

(53)

(11)

(699)

Total operating expenses

(1,002)

 

(1,175)

(1,042)

(971)

(1,416)

 

(1,229)

(991)

(1,673)

Other net income/(expenses)

1

 

(2)

1

5

(1)

 

(5)

1

(1)

Profit/(loss) before tax

585

 

390

740

656

170

 

452

661

(74)

Attributable profit/(loss)

422

 

232

500

464

(38)

 

245

423

(285)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Loans and advances to customers at amortised cost

187.5

 

187.6

186.7

185.3

184.3

 

183.8

182.2

166.6

Total assets

253.1

 

249.7

252.0

245.9

235.2

 

237.4

230.4

203.4

Customer deposits at amortised cost

197.3

 

197.3

195.8

194.3

192.0

 

193.4

189.3

187.4

Loan: deposit ratio

96%

 

96%

96%

96%

96%

 

95%

97%

89%

Risk weighted assets

76.6

 

75.2

74.8

75.0

72.5

 

70.9

70.0

66.1

Period end allocated tangible equity

10.5

 

10.2

10.1

10.2

9.8

 

9.6

9.5

8.6

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

16.3%

 

9.6%

20.1%

18.8%

(1.1%)

 

10.7%

18.4%

(12.7%)

Average allocated tangible equity (£bn)

10.4

 

10.1

10.1

10.1

9.8

 

9.6

9.4

8.7

Cost: income ratio

56%

 

63%

55%

53%

79%

 

66%

54%

92%

Loan loss rate (bps)1

40

 

61

24

45

43

 

39

43

52

Net interest margin

3.18%

 

3.20%

3.22%

3.22%

3.27%

 

3.32%

3.28%

3.70%

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct2

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

588

 

405

794

659

581

 

505

672

625

Attributable profit

424

 

244

548

465

373

 

282

431

406

Return on average allocated tangible equity

16.4%

 

10.1%

22.0%

18.8%

15.7%

 

12.3%

18.7%

19.1%

Cost: income ratio

56%

 

62%

52%

53%

56%

 

63%

53%

54%

 

1

Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.

2

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays UK

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Analysis of total income

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Personal Banking

964

 

998

1,021

1,015

972

 

1,116

1,022

1,033

Barclaycard Consumer UK

490

 

522

551

504

527

 

445

539

495

Business Banking

323

 

343

324

317

289

 

309

291

292

Total income

1,777

 

1,863

1,896

1,836

1,788

 

1,870

1,852

1,820

 

 

 

 

 

 

 

 

 

 

 

Analysis of credit impairment (charges)/releases and other provisions

 

 

 

 

 

 

 

 

 

 

Personal Banking

(52)

 

(44)

(8)

(49)

(72)

 

(56)

(57)

(60)

Barclaycard Consumer UK

(140)

 

(250)

(88)

(139)

(113)

 

(124)

(145)

(149)

Business Banking

1

 

(2)

(19)

(26)

(16)

 

(4)

1

(11)

Total credit impairment charges and other provisions

(191)

 

(296)

(115)

(214)

(201)

 

(184)

(201)

(220)

 

 

 

 

 

 

 

 

 

 

 

Analysis of loans and advances to customers at amortised cost

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Personal Banking

145.9

 

146.0

145.4

143.6

142.1

 

141.3

140.4

138.6

Barclaycard Consumer UK

15.0

 

15.3

15.3

15.2

15.2

 

16.4

16.3

16.2

Business Banking

26.6

 

26.3

26.0

26.5

27.0

 

26.1

25.5

11.8

Total loans and advances to customers at amortised cost

187.5

 

187.6

186.7

185.3

184.3

 

183.8

182.2

166.6

 

 

 

 

 

 

 

 

 

 

 

Analysis of customer deposits at amortised cost

 

 

 

 

 

 

 

 

 

 

Personal Banking

154.1

 

154.0

153.4

152.9

151.9

 

153.1

152.1

151.1

Barclaycard Consumer UK

-

 

-

-

-

-

 

-

-

-

Business Banking

43.2

 

43.3

42.4

41.4

40.1

 

40.3

37.2

36.3

Total customer deposits at amortised cost

197.3

 

197.3

195.8

194.3

192.0

 

193.4

189.3

187.4

 

Barclays International

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

900

 

984

965

853

1,013

 

987

1,148

1,060

Net trading income

1,144

 

837

1,103

1,094

1,416

 

935

815

1,039

Net fee, commission and other income

1,526

 

1,400

1,222

1,760

1,379

 

1,397

1,352

1,511

Total income

3,570

 

3,221

3,290

3,707

3,808

 

3,319

3,315

3,610

Credit impairment charges and other provisions

(245)

 

(354)

(143)

(68)

(93)

 

(386)

(495)

(279)

Net operating income

3,325

 

2,867

3,147

3,639

3,715

 

2,933

2,820

3,331

Operating costs

(2,206)

 

(2,441)

(2,277)

(2,306)

(2,300)

 

(2,428)

(2,182)

(2,276)

UK bank levy

-

 

(210)

-

-

-

 

(265)

-

-

Litigation and conduct

(19)

 

(33)

(32)

(47)

(15)

 

(255)

(5)

4

Total operating expenses

(2,225)

 

(2,684)

(2,309)

(2,353)

(2,315)

 

(2,948)

(2,187)

(2,272)

Other net income

18

 

32

12

11

13

 

21

19

202

Profit before tax

1,118

 

215

850

1,297

1,413

 

6

652

1,261

Attributable profit/(loss)

788

 

(72)

650

890

973

 

(1,168)

359

819

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Loans and advances at amortised cost

130.9

 

127.2

132.4

125.5

117.5

 

126.8

134.4

135.2

Trading portfolio assets

117.2

 

104.0

124.6

116.5

114.9

 

113.0

91.2

83.3

Derivative financial instrument assets

217.3

 

222.1

214.8

228.2

214.1

 

236.2

242.8

108.4

Derivative financial instrument liabilities

213.5

 

219.6

213.7

224.9

210.8

 

237.8

242.9

116.8

Financial assets at fair value through the income statement

153.5

 

144.7

147.8

141.2

150.6

 

104.1

103.7

94.1

Total assets

919.0

 

862.1

900.2

886.5

866.6

 

856.1

867.1

681.6

Deposits at amortised cost

215.5

 

197.2

200.3

191.0

167.2

 

187.3

191.9

192.0

Loan: deposit ratio

61%

 

65%

66%

66%

70%

 

68%

70%

70%

Risk weighted assets

216.1

 

210.7

214.6

218.0

214.2

 

210.3

218.2

212.2

Period end allocated tangible equity

30.6

 

29.9

30.2

30.5

30.0

 

27.5

28.0

26.8

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

10.4%

 

(0.3%)

8.8%

11.8%

13.4%

 

(15.9%)

5.4%

12.4%

Average allocated tangible equity (£bn)

30.5

 

31.3

31.1

31.4

30.1

 

28.5

28.9

27.4

Cost: income ratio

62%

 

83%

70%

63%

61%

 

89%

66%

63%

Loan loss rate (bps)1

73

 

107

41

22

31

 

76

88

54

Net interest margin

3.99%

 

3.98%

3.87%

4.03%

4.57%

 

4.31%

4.21%

4.07%

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct2

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

1,137

 

248

882

1,344

1,428

 

261

657

1,257

Attributable profit/(loss)

804

 

(38)

676

924

985

 

(918)

363

816

Return on average allocated tangible equity

10.6%

 

0.2%

9.2%

12.2%

13.6%

 

(12.4%)

5.5%

12.3%

Cost: income ratio

62%

 

82%

69%

62%

60%

 

81%

66%

63%

 

1

Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.

2

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays International

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Investment Bank

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

FICC

902

 

570

688

736

869

 

607

627

752

Equities

467

 

375

471

601

590

 

362

350

455

Markets

1,369

 

945

1,159

1,337

1,459

 

969

977

1,207

Banking fees

569

 

625

519

704

683

 

605

607

674

Corporate lending

152

 

243

197

198

240

 

269

277

278

Transaction banking

415

 

412

416

385

414

 

408

419

404

Corporate

567

 

655

613

583

654

 

677

696

682

Other1

-

 

(74)

(56)

(44)

3

 

1

-

1

Total income

2,505

 

2,151

2,235

2,580

2,799

 

2,252

2,280

2,564

Credit impairment (charges)/releases and other

provisions

(52)

 

(35)

3

23

159

 

(127)

(36)

1

Net operating income

2,453

 

2,116

2,238

2,603

2,958

 

2,125

2,244

2,565

Operating expenses

(1,619)

 

(2,023)

(1,712)

(1,773)

(1,773)

 

(2,129)

(1,656)

(1,760)

Litigation and conduct

(19)

 

(23)

(32)

-

(13)

 

(255)

(5)

4

Total operating expenses

(1,638)

 

(2,046)

(1,744)

(1,773)

(1,786)

 

(2,384)

(1,661)

(1,756)

Other net income

12

 

15

4

5

3

 

7

10

116

Profit/(loss) before tax

827

 

85

498

835

1,175

 

(252)

593

925

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Loans and advances at amortised cost

90.6

 

86.4

93.3

87.8

81.3

 

88.2

95.4

96.7

Deposits at amortised cost

151.4

 

136.3

137.6

130.3

107.6

 

128.0

133.4

134.1

Risk weighted assets

176.6

 

170.9

175.9

180.4

181.3

 

176.2

185.2

178.9

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

9.3%

 

(1.3%)

6.6%

9.1%

13.0%

 

(20.2%)

5.9%

11.1%

Average allocated tangible equity (£bn)

25.1

 

26.0

25.9

26.4

25.6

 

24.3

24.8

23.3

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct2

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

846

 

108

530

835

1,188

 

3

598

921

Return on average allocated tangible equity

9.5%

 

(0.9%)

7.0%

9.1%

13.2%

 

(16.1%)

6.0%

11.1%

 

1

From Q119, treasury items previously included in Other have been allocated to businesses.

2

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays International

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer, Cards and Payments

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Total income

1,065

 

1,070

1,055

1,127

1,009

 

1,067

1,035

1,046

Credit impairment charges and other provisions

(193)

 

(319)

(146)

(91)

(252)

 

(259)

(459)

(280)

Net operating income

872

 

751

909

1,036

757

 

808

576

766

Operating expenses

(587)

 

(628)

(565)

(533)

(527)

 

(564)

(526)

(516)

Litigation and conduct

-

 

(10)

-

(47)

(2)

 

-

-

-

Total operating expenses

(587)

 

(638)

(565)

(580)

(529)

 

(564)

(526)

(516)

Other net income

6

 

17

8

6

10

 

14

9

86

Profit before tax

291

 

130

352

462

238

 

258

59

336

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Loans and advances at amortised cost

40.3

 

40.8

39.1

37.7

36.2

 

38.6

39.0

38.5

Deposits at amortised cost

64.1

 

60.9

62.7

60.7

59.6

 

59.3

58.5

57.9

Risk weighted assets

39.5

 

39.8

38.7

37.6

32.9

 

34.1

33.0

33.3

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

15.4%

 

4.8%

19.8%

26.2%

15.6%

 

8.9%

2.2%

19.4%

Average allocated tangible equity (£bn)

5.4

 

5.3

5.2

5.0

4.5

 

4.2

4.2

4.1

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct1

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

291

 

140

352

509

240

 

258

59

336

Return on average allocated tangible equity

15.4%

 

5.4%

19.9%

28.9%

15.7%

 

9.0%

2.2%

19.4%

 

1

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Head Office

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

(111)

 

(201)

(106)

(156)

(318)

 

(254)

(174)

108

Net fee, commission and other income

16

 

190

49

189

80

 

87

180

(24)

Total income

(95)

 

(11)

(57)

33

(238)

 

(167)

6

84

Credit impairment (charges)/releases and other provisions

(12)

 

7

4

(1)

6

 

(3)

(13)

(1)

Net operating (expenses)/income

(107)

 

(4)

(53)

32

(232)

 

(170)

(7)

83

Operating costs

(52)

 

(69)

(64)

(36)

(59)

 

(76)

(112)

(40)

UK bank levy

-

 

(13)

-

-

-

 

(41)

-

-

GMP charge

-

 

(140)

-

-

-

 

-

-

-

Litigation and conduct

(39)

 

(12)

(19)

(31)

(1,535)

 

(75)

(65)

(1)

Total operating expenses

(91)

 

(234)

(83)

(67)

(1,594)

 

(192)

(177)

(41)

Other net (expenses)/income

(22)

 

7

7

(23)

7

 

(3)

(22)

(164)

Loss before tax

(220)

 

(231)

(129)

(58)

(1,819)

 

(365)

(206)

(122)

Attributable loss

(172)

 

(236)

(148)

(122)

(1,699)

 

(371)

(199)

(175)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Total assets

21.4

 

21.5

18.6

17.2

40.4

 

39.7

51.7

17.3

Risk weighted assets

27.0

 

26.0

26.8

26.3

31.2

 

31.8

36.1

26.2

Period end allocated tangible equity

4.5

 

4.9

4.2

3.6

3.0

 

10.0

10.4

9.0

 

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Average allocated tangible equity (£bn)

4.3

 

2.9

3.4

2.0

4.3

 

10.0

10.5

8.8

 

 

 

 

 

 

 

 

 

 

 

Performance measures excluding litigation and conduct1

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Loss before tax

(181)

 

(219)

(110)

(27)

(284)

 

(290)

(141)

(121)

Attributable loss

(144)

 

(220)

(137)

(98)

(192)

 

(307)

(134)

(174)

 

1

Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.

 

Performance Management

 

Margins and balances

 

 

 

 

 

 

 

Three months ended 31.03.19

Three months ended 31.03.181

 

Net interest income

Average customer assets

Net interest margin

Net interest income

Average customer assets

Net interest margin

 

£m

£m

%

£m

£m

%

Barclays UK

1,469

187,570

3.18

1,493

185,351

3.27

Barclays International2

967

98,313

3.99

1,065

94,530

4.57

Total Barclays UK and Barclays International

2,436

285,883

3.46

2,558

279,881

3.71

Other3

(178)

 

 

(370)

 

 

Total Barclays Group4

2,258

 

 

2,188

 

 

 

1

The Group's treasury results are reported directly within Barclays UK and Barclays International following ring-fencing, resulting in gains and losses made on certain activities being recognised as Other income. These amounts had previously been included in Net interest income and the Net interest margin through transfer pricing.

2

Barclays International margins include interest earning lending balances within the investment banking business.

3

Other includes Head Office and investment banking businesses not included in Barclays International margins.

4

Group Net interest income includes gross structural hedge contributions of £0.4bn (Q118: £0.4bn).

 

Quarterly analysis for Barclays UK and Barclays International

Net interest income

Average customer assets

Net interest margin

Three months ended 31.12.18

£m

£m

%

Barclays UK

1,513

187,813

3.20

Barclays International1

994

99,137

3.98

Total Barclays UK and Barclays International

2,507

286,950

3.47

 

 

 

 

Three months ended 30.09.18

 

 

 

Barclays UK

1,529

188,239

3.22

Barclays International1

945

96,785

3.87

Total Barclays UK and Barclays International

2,474

285,024

3.44

 

 

 

 

Three months ended 30.06.18

 

 

 

Barclays UK

1,493

186,053

3.22

Barclays International1

962

95,728

4.03

Total Barclays UK and Barclays International

2,455

281,781

3.49

 

1

Barclays International margins include interest earning lending balances within the investment banking business.

 

Credit Risk

 

Loans and advances at amortised cost by stage

 

The table below presents an analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio by stage allocation and business segment as at 31 March 2019. Also included are off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio by stage allocation as at 31 March 2019. Barclays does not hold any material purchased or originated credit impaired assets as at period-end.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross exposure

 

Impairment allowance

Net exposure

 

Stage 1

Stage 2

Stage 3

Total

 

Stage 1

Stage 2

Stage 3

Total

As at 31.03.19

£m

£m

£m

£m

 

£m

£m

£m

£m

£m

Barclays UK

134,661

25,504

2,886

163,051

 

180

1,377

1,069

2,626

160,425

Barclays International

26,099

4,724

1,823

32,646

 

309

898

1,294

2,501

30,145

Head Office

6,064

605

872

7,541

 

8

46

297

351

7,190

Total Barclays Group retail

166,824

30,833

5,581

203,238

 

497

2,321

2,660

5,478

197,760

Barclays UK

24,137

3,937

1,329

29,403

 

17

55

114

186

29,217

Barclays International

91,215

8,800

1,612

101,627

 

135

259

446

840

100,787

Head Office

2,922

-

38

2,960

 

1

-

38

39

2,921

Total Barclays Group wholesale

118,274

12,737

2,979

133,990

 

153

314

598

1,065

132,925

Total loans and advances at amortised cost

285,098

43,570

8,560

337,228

 

650

2,635

3,258

6,543

330,685

Off-balance sheet loan commitments and financial guarantee contracts1

312,363

22,891

512

335,766

 

104

151

24

279

335,487

Total2

597,461

66,461

9,072

672,994

 

754

2,786

3,282

6,822

666,172

 

 

 

 

 

 

 

 

 

 

 

 

As at 31.03.19

 

Three months ended 31.03.19

 

 

Coverage ratio

 

Loan impairment charge and loan loss rate3

 

 

Stage 1

Stage 2

Stage 3

Total

 

Loan impairment charge

Loan loss rate

 

 

%

%

%

%

 

£m

bps

 

Barclays UK

0.1

5.4

37.0

1.6

 

195

49

 

Barclays International

1.2

19.0

71.0

7.7

 

199

247

 

Head Office

0.1

7.6

34.1

4.7

 

12

65

 

Total Barclays Group retail

0.3

7.5

47.7

2.7

 

406

81

 

Barclays UK

0.1

1.4

8.6

0.6

 

(6)

-

 

Barclays International

0.1

2.9

27.7

0.8

 

33

13

 

Head Office

-

-

100.0

1.3

 

-

-

 

Total Barclays Group wholesale

0.1

2.5

20.1

0.8

 

27

8

 

Total loans and advances at amortised cost

0.2

6.0

38.1

1.9

 

433

52

 

Off-balance sheet loan commitments and financial guarantee contracts1

-

0.7

4.7

0.1

 

 

13

 

 

 

Other financial assets subject to impairment

 

 

 

 

 

 

2

 

 

 

Total

0.1

4.2

36.2

1.0

 

 

448

 

 

 

 

1

Excludes loan commitments and financial guarantees of £20.3bn carried at fair value.

2

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £170.5bn and impairment allowance of £16m. This comprises £13m Expected Credit Losses (ECL) on £170.0bn stage 1 assets and £3m on £0.5bn stage 2 fair value through other comprehensive income assets.

3

Q119 loan impairment charge represents three months of impairment charge, annualised to calculate the loan loss rate. The loan loss rate for Q119 is 54bps after applying the total impairment charge of £448m.

 

 

Gross exposure

 

Impairment allowance

Net exposure

 

Stage 1

Stage 2

Stage 3

Total

 

Stage 1

Stage 2

Stage 3

Total

As at 31.12.18

£m

£m

£m

£m

 

£m

£m

£m

£m

£m

Barclays UK

134,911

25,279

3,040

163,230

 

183

1,389

1,152

2,724

160,506

Barclays International

26,714

4,634

1,830

33,178

 

352

965

1,315

2,632

30,546

Head Office

6,510

636

938

8,084

 

9

47

306

362

7,722

Total Barclays Group retail

168,135

30,549

5,808

204,492

 

544

2,401

2,773

5,718

198,774

Barclays UK

22,824

4,144

1,272

28,240

 

16

70

117

203

28,037

Barclays International

87,344

8,754

1,382

97,480

 

128

244

439

811

96,669

Head Office

2,923

-

41

2,964

 

-

-

38

38

2,926

Total Barclays Group wholesale

113,091

12,898

2,695

128,684

 

144

314

594

1,052

127,632

Total loans and advances at amortised cost

281,226

43,447

8,503

333,176

 

688

2,715

3,367

6,770

326,406

Off-balance sheet loan commitments and financial guarantee contracts1

309,989

22,126

684

332,799

 

99

150

22

271

332,528

Total2

591,215

65,573

9,187

665,975

 

787

2,865

3,389

7,041

658,934

 

 

 

 

 

 

 

 

 

 

 

 

As at 31.12.18

 

Year ended 31.12.18

 

 

Coverage ratio

 

Loan impairment charge and loan loss rate

 

 

Stage 1

Stage 2

Stage 3

Total

 

Loan impairment charge

Loan loss rate

 

 

%

%

%

%

 

 

£m

 

bps

 

Barclays UK

0.1

5.5

37.9

1.7

 

 

830

 

51

 

Barclays International

1.3

20.8

71.9

7.9

 

 

844

 

254

 

Head Office

0.1

7.4

32.6

4.5

 

 

15

 

19

 

Total Barclays Group retail

0.3

7.9

47.7

2.8

 

 

1,689

 

83

 

Barclays UK

0.1

1.7

9.2

0.7

 

 

74

 

26

 

Barclays International

0.1

2.8

31.8

0.8

 

 

(142)

 

-

 

Head Office

-

-

92.7

1.3

 

 

(31)

 

-

 

Total Barclays Group wholesale

0.1

2.4

22.0

0.8

 

 

(99)

 

-

 

Total loans and advances at amortised cost

0.2

6.2

39.6

2.0

 

 

1,590

 

48

 

Off-balance sheet loan commitments and financial guarantee contracts1

-

0.7

3.2

0.1

 

 

(125)

 

 

 

Other financial assets subject to impairment

 

 

 

 

 

 

3

 

 

 

Total

0.1

4.4

36.9

1.1

 

 

1,468

 

 

 

 

1

Excludes loan commitments and financial guarantees of £11.7bn carried at fair value.

2

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £129.9bn and impairment allowance of £12m. This comprises £10m ECL on £129.3bn stage 1 assets and £2m on £0.6bn stage 2 fair value through other comprehensive income assets.

 

Loans and advances at amortised cost by product

 

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

 

 

 

Stage 2

 

 

As at 31.03.19

Stage 1

Not past due

<=30 days past due

>30 days past due

Total

Stage 3

Total

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

129,625

15,959

1,694

809

18,462

2,367

150,454

Credit cards, unsecured loans and other retail lending

45,138

11,243

591

429

12,263

3,645

61,046

Corporate loans

110,335

11,916

511

418

12,845

2,548

125,728

Total

285,098

39,118

2,796

1,656

43,570

8,560

337,228

 

 

 

 

 

 

 

 

Impairment allowance

 

 

 

 

 

 

 

Home loans

32

54

15

15

84

339

455

Credit cards, unsecured loans and other retail lending

478

1,821

174

226

2,221

2,400

5,099

Corporate loans

140

304

20

6

330

519

989

Total

650

2,179

209

247

2,635

3,258

6,543

 

 

 

 

 

 

 

 

Net exposure

 

 

 

 

 

 

 

Home loans

129,593

15,905

1,679

794

18,378

2,028

149,999

Credit cards, unsecured loans and other retail lending

44,660

9,422

417

203

10,042

1,245

55,947

Corporate loans

110,195

11,612

491

412

12,515

2,029

124,739

Total

284,448

36,939

2,587

1,409

40,935

5,302

330,685

 

 

 

 

 

 

 

 

Coverage ratio

%

%

%

%

%

%

%

Home loans

-

0.3

0.9

1.9

0.5

14.3

0.3

Credit cards, unsecured loans and other retail lending

1.1

16.2

29.4

52.7

18.1

65.8

8.4

Corporate loans

0.1

2.6

3.9

1.4

2.6

20.4

0.8

Total

0.2

5.6

7.5

14.9

6.0

38.1

1.9

 

 

 

 

 

 

 

 

As at 31.12.18

 

 

 

 

 

 

 

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

130,066

15,672

1,672

862

18,206

2,476

150,748

Credit cards, unsecured loans and other retail lending

45,785

11,262

530

437

12,229

3,760

61,774

Corporate loans

105,375

12,177

360

475

13,012

2,267

120,654

Total

281,226

39,111

2,562

1,774

43,447

8,503

333,176

 

 

 

 

 

 

 

 

Impairment allowance

 

 

 

 

 

 

 

Home loans

31

56

13

13

82

351

464

Credit cards, unsecured loans and other retail lending

528

1,895

169

240

2,304

2,511

5,343

Corporate loans

129

300

16

13

329

505

963

Total

688

2,251

198

266

2,715

3,367

6,770

 

 

 

 

 

 

 

 

Net exposure

 

 

 

 

 

 

 

Home loans

130,035

15,616

1,659

849

18,124

2,125

150,284

Credit cards, unsecured loans and other retail lending

45,257

9,367

361

197

9,925

1,249

56,431

Corporate loans

105,246

11,877

344

462

12,683

1,762

119,691

Total

280,538

36,860

2,364

1,508

40,732

5,136

326,406

 

 

 

 

 

 

 

 

Coverage ratio

%

%

%

%

%

%

%

Home loans

-

0.4

0.8

1.5

0.5

14.2

0.3

Credit cards, unsecured loans and other retail lending

1.2

16.8

31.9

54.9

18.8

66.8

8.6

Corporate loans

0.1

2.5

4.4

2.7

2.5

22.3

0.8

Total

0.2

5.8

7.7

15.0

6.2

39.6

2.0

 

Treasury and Capital Risk

 

Capital

 

Barclays CET1 regulatory requirement is 11.7% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.6% Pillar 2A requirement and a 0.5% Countercyclical Capital Buffer (CCyB).

 

The Barclays CCyB is based on the buffer rate applicable for each jurisdiction in which Barclays have exposures. On 28 November 2018, the Financial Policy Committee set the CCyB rate for UK exposures at 1%. The buffer rates set by other national authorities for our non-UK exposures are not currently material. Overall, this results in a 0.5% CCyB for Barclays for Q119.

 

Barclays Pillar 2A requirement as per the PRA's Individual Capital Requirement for 2019 is 4.7%, of which at least 56.25% needs to be met in CET1 form, equating to approximately 2.6% of RWAs. Certain elements of the Pillar 2A requirement are a fixed quantum whilst others are a proportion of RWAs and are based on a point in time assessment. The Pillar 2A requirement is subject to at least annual review.

 

Capital ratios 1,2,3

 

 

 

 

As at 31.03.19

As at 31.12.18

CET1

 

13.0%

13.2%

Tier 1 (T1)

 

17.1%

17.0%

Total regulatory capital

 

20.8%

20.7%

  

 

 

 

Capital resources

 

£bn

£bn

Total equity excluding non-controlling interests per the balance sheet

 

64.7

62.6

Less: other equity instruments (recognised as AT1 capital)

 

(11.1)

(9.6)

Adjustment to retained earnings for foreseeable dividends

 

(1.0)

(0.7)

 

 

 

 

Other regulatory adjustments and deductions

 

 

 

Additional value adjustments (PVA)

 

(1.7)

(1.7)

Goodwill and intangible assets

 

(7.9)

(8.0)

Deferred tax assets that rely on future profitability excluding temporary differences

 

(0.4)

(0.5)

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

 

(1.0)

(0.7)

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

 

(0.2)

(0.1)

Defined benefit pension fund assets

 

(0.9)

(1.3)

Direct and indirect holdings by an institution of own CET1 instruments

 

(0.1)

(0.1)

Adjustment under IFRS 9 transitional arrangements

 

1.2

1.3

CET1 capital

 

41.4

41.1

  

 

 

 

AT1 capital

 

 

 

Capital instruments and related share premium accounts

 

11.1

9.6

Qualifying AT1 capital (including minority interests) issued by subsidiaries

 

2.3

2.4

Other regulatory adjustments and deductions

 

(0.1)

(0.1)

AT1 capital

 

13.3

11.9

 

 

 

 

T1 capital

 

54.7

53.0

  

 

 

 

T2 capital

 

 

 

Capital instruments and related share premium accounts

 

6.5

6.6

Qualifying T2 capital (including minority interests) issued by subsidiaries

 

5.5

5.3

Credit risk adjustments (excess of impairment over expected losses)

 

0.1

-

Other regulatory adjustments and deductions

 

(0.3)

(0.3)

Total regulatory capital

 

66.6

64.6

 

 

 

 

Total RWAs

 

319.7

311.9

 

1

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

2

The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC additional tier 1 (AT1) securities, was 12.6%, with £40.3bn of CET1 capital and £319.6bn of RWAs calculated without applying the transitional arrangements of the CRR.

3

The Barclays PLC CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays Bank PLC T2 Contingent Capital Notes, was 13.0%. For this calculation CET1 capital and RWAs are calculated applying the transitional arrangements under the CRR, including the IFRS 9 transitional arrangements. The benefit of the Financial Services Authority October 2012 interpretation of the transitional provisions, relating to the implementation of CRD IV, expired in December 2017.

 

Movement in CET1 capital

 

 

 

Three months ended

 

31.03.19

 

£bn

Opening CET1 capital

 

41.1

 

 

 

Profit for the period attributable to equity holders

 

1.2

Dividends paid and foreseen

 

(0.5)

Increase in retained regulatory capital generated from earnings

 

0.8

 

 

 

Net impact of share schemes

 

(0.3)

Fair value through other comprehensive income reserve

 

0.1

Currency translation reserve

 

(0.4)

Decrease in other qualifying reserves

 

(0.5)

 

 

 

Pension remeasurements within reserves

 

(0.4)

Defined benefit pension fund asset deduction

 

0.4

Net impact of pensions

 

-

 

 

 

Goodwill and intangible assets

 

0.1

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

 

0.1

Adjustment under IFRS 9 transitional arrangements1

 

(0.1)

Increase in regulatory capital due to adjustments and deductions

 

0.1

 

 

 

Closing CET1 capital

 

41.4

 

 

 

 

1

The IFRS 9 transitional add back decreased £0.1bn primarily due to the change in the phasing of transitional relief from 95% in 2018 to 85% in 2019.

 

Risk weighted assets (RWAs) by risk type and business

 

Credit risk

 

Counterparty credit risk

 

Market risk

 

Operational risk

Total RWAs

 

Std

IRB

 

Std

IRB

Settlement risk

CVA

 

Std

IMA

 

 

 

As at 31.03.19

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

 

£bn

£bn

Barclays UK

3.8

60.7

 

0.2

-

-

-

 

0.1

-

 

11.8

76.6

Barclays International

56.2

68.5

 

10.3

15.9

0.1

4.1

 

16.5

15.6

 

28.9

216.1

Head Office

5.2

5.8

 

-

-

-

-

 

-

-

 

16.0

27.0

Barclays Group

65.2

135.0

 

10.5

15.9

0.1

4.1

 

16.6

15.6

 

56.7

319.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 31.12.18

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays UK

3.3

59.7

 

0.2

-

-

0.1

 

0.1

-

 

11.8

75.2

Barclays International

55.6

67.0

 

9.9

15.0

0.2

3.3

 

13.9

16.8

 

29.0

210.7

Head Office

4.3

5.8

 

-

-

-

-

 

-

-

 

15.9

26.0

Barclays Group

63.2

132.5

 

10.1

15.0

0.2

3.4

 

14.0

16.8

 

56.7

311.9

 

Movement analysis of RWAs

 

Credit risk

Counterparty credit risk

Market risk

Operational risk

Total RWAs

As at 31.03.19

£bn

£bn

£bn

£bn

£bn

Opening RWAs

195.6

28.8

30.8

56.7

311.9

Book size

4.2

1.4

-

-

5.6

Acquisitions and disposals

-

-

-

-

-

Book quality

0.6

(0.1)

-

-

0.5

Model updates

-

-

-

-

-

Methodology and policy

1.6

0.5

1.4

-

3.5

Foreign exchange movements1

(1.8)

-

-

-

(1.8)

Closing RWAs

200.2

30.6

32.2

56.7

319.7

 

1

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

 

RWAs increased £7.8bn to £319.7bn:

 

·

Book size increased RWAs £5.6bn primarily due to increased CIB seasonal activity

·

Methodology and policy increased RWAs £3.5bn reflecting the implementation of IFRS 16 in credit risk RWAs

·

Foreign exchange movements decreased for credit risk RWAs by £1.8bn primarily due to the depreciation of period end USD against GBP

 

Leverage ratio and exposures

 

Barclays is subject to a leverage ratio requirement of 4.0% as at 31 March 2019. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer (CCLB) of 0.2%. Although the leverage ratio is expressed in terms of T1 capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met with CET1 capital. In addition, the G-SII ALRB and CCLB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £5.8bn and the 0.2% CCLB was £2.2bn.

 

Barclays is required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. Barclays is also required to disclose a UK leverage ratio based on capital and exposure on the last day of the quarter. Both approaches exclude qualifying claims on central banks from the leverage exposures.

 

 

As at 31.03.19

As at 31.12.18

Leverage ratios1,2

£bn

£bn

UK leverage ratio

4.9%

5.1%

 

 

 

CET1 capital

41.4

 41.1

AT1 capital

11.0

 9.5

T1 capital3

52.4

 50.6

 

 

 

UK leverage exposure

1,065

999

 

 

 

Average UK leverage ratio

4.6%

4.5%

Average T1 capital3

51.2

 50.5

Average UK leverage exposure

1,106

 1,110

 

 

 

UK leverage exposure

 

 

Accounting assets

 

 

Derivative financial instruments

218

223

Derivative cash collateral

53

48

Securities financing transactions (SFTs)

135

121

Loans and advances and other assets

788

741

Total IFRS assets

1,194

1,133

 

 

 

Regulatory consolidation adjustments

(2)

(2)

 

 

 

Derivatives adjustments

 

 

Derivatives netting

(198)

(202)

Adjustments to cash collateral

(43)

(42)

Net written credit protection

16

19

Potential future exposure (PFE) on derivatives

125

123

Total derivatives adjustments

(100)

(102)

 

 

 

SFTs adjustments

17

17

 

 

 

Regulatory deductions and other adjustments

(11)

(11)

 

 

 

Weighted off-balance sheet commitments

108

108

 

 

 

Qualifying central bank claims

(141)

(144)

 

 

 

UK leverage exposure2

1,065

999

 

1

The fully loaded UK leverage ratio was 4.8%, with £51.3bn of T1 capital and £1,064bn of leverage exposure calculated without applying the transitional arrangements of the CRR.

2

Capital and leverage measures are calculated applying the transitional arrangements of the CRR.

3

The T1 capital is calculated in line with the PRA Handbook, which excludes grandfathered AT1 instruments allowed under the CRR.

 

The UK leverage ratio decreased to 4.9% (December 2018: 5.1%) driven by a seasonal increase in UK leverage exposure of £66bn to £1,065bn (December 2018: £999bn), partially offset by an increase in T1 capital primarily due to the issuance of $2bn AT1 securities. Leverage exposure movements included a seasonal increase in settlement balances, securities financing transactions (SFTs) and trading portfolio assets.

 

The average UK leverage ratio increased to 4.6% (December 2018: 4.5%) driven by £0.7bn increase in T1 capital primarily driven by the issuance of $2bn AT1 securities. The average UK leverage exposure was stable at £1,106bn (December 2018: £1,110bn).

 

The difference between the average UK leverage ratio and the UK leverage ratio was primarily driven by the issuance of AT1 securities in March 2019 and lower SFT exposures at quarter end.

 

Barclays is required to disclose a CRR leverage ratio. This is included in the additional Barclays regulatory disclosures, prepared in accordance with European Banking Authority (EBA) guidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (see Barclays PLC Pillar 3 Report Q1 2019), due to be published by 25 April 2019, available at home.barclays/investor-relations/reports-and-events/latest-financial-results.

 

Minimum requirement for own funds and eligible liabilities (MREL)

 

Under the Bank of England's statement of policy on MREL, the Bank of England will set MREL for UK Global Systemically Important Banks (G-SIBs) as necessary to implement the total loss-absorbing capacity (TLAC) standard.

 

MREL is subject to phased implementation from 1 January 2019 and will be fully implemented by 1 January 2022, at which time G-SIBs with resolution entities incorporated in the UK, including Barclays, will be required to meet the higher of: (i) two times the sum of its Pillar 1 and Pillar 2A requirements or; (ii) the higher of two times its leverage ratio requirement or 6.75% of leverage exposures. However, the PRA will review the MREL calibration by the end of 2020, including assessing the proposal for Pillar 2A recapitalisation which may drive a different 1 January 2022 MREL than currently proposed. In addition, it is proposed that CET1 capital cannot be counted towards both MREL and the capital buffers, meaning that the buffers will effectively be applied above both the Pillar 1 and Pillar 2A requirements relating to own funds and MREL.

 

Barclays indicative MREL is currently expected to be 29.9% of RWAs from 1 January 2022 comprising:

 

·

Loss absorption and recapitalisation amounts consisting of two times the 8% Pillar 1 and 4.7% Pillar 2A requirement

·

Capital buffers including a 1.5% G-SII buffer, 2.5% CCB and 0.5% CCyB.

 

MREL ratios and position

 

 

 

 

 

MREL ratios1

As at 31.03.19

As at 31.12.18

CET1 capital

13.0%

13.2%

AT1 capital instruments and related share premium accounts2

3.4%

3.1%

T2 capital instruments and related share premium accounts2

2.0%

2.1%

Term senior unsecured funding

9.4%

9.7%

Total Barclays PLC (the Parent company) MREL ratio

27.7%

28.1%

Qualifying AT1 capital (including minority interests) issued by subsidiaries

0.7%

0.7%

Qualifying T2 capital (including minority interests) issued by subsidiaries

1.7%

1.6%

Total MREL ratio, including eligible Barclays Bank PLC instruments

30.2%

30.5%

 

 

 

MREL position1

£bn

£bn

CET1 capital

41.4

41.1

AT1 capital instruments and related share premium accounts2

11.0

9.6

T2 capital instruments and related share premium accounts2

6.3

6.6

Term senior unsecured funding

29.9

30.4

Total Barclays PLC (the Parent company) MREL position

88.7

87.7

Qualifying AT1 capital (including minority interests) issued by subsidiaries

2.3

2.3

Qualifying T2 capital (including minority interests) issued by subsidiaries

5.5

5.1

Total MREL position, including eligible Barclays Bank PLC instruments

96.5

95.1

 

 

 

Total RWAs1

319.7

311.9

 

1

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

2

Includes other AT1 capital regulatory adjustments and deductions of £0.1bn (included in AT1 issued by subsidiaries in December 2018: £0.1bn), and other T2 credit risk adjustments and deductions of £0.2bn (included in T2 issued by subsidiaries in December 2018: £0.3bn).

 

Condensed Consolidated Financial Statements

 

Condensed consolidated income statement

 

Three months ended

Three months ended

 

31.03.19

31.03.18

 

£m

£m

Total income

5,252

5,358

Credit impairment charges and other provisions

(448)

(288)

Net operating income

4,804

5,070

Operating expenses excluding litigation and conduct

(3,257)

(3,364)

Litigation and conduct

(61)

(1,961)

Operating expenses

(3,318)

(5,325)

Other net (expenses)/income

(3)

19

Profit/(loss) before tax

1,483

(236)

Tax charge

(248)

(304)

Profit/(loss) after tax

1,235

(540)

 

 

 

Attributable to:

 

 

Equity holders of the parent

1,038

(764)

Other equity instrument holders1

180

171

Total equity holders of the parent

1,218

(593)

Non-controlling interests

17

53

Profit/(loss) after tax

1,235

(540)

 

 

 

Earnings per share

 

 

Basic earnings/(loss) per ordinary share1

6.1p

(4.2p)

 

1

From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.

 

Condensed consolidated balance sheet

 

 

 

 

 

 

As at 31.03.191

As at 31.12.18

Assets

 

£m

£m

Cash and balances at central banks

 

166,020

177,069

Cash collateral and settlement balances

 

101,551

77,222

Loans and advances at amortised cost

 

330,685

326,406

Reverse repurchase agreements and other similar secured lending

 

10,910

2,308

Trading portfolio assets

 

117,490

104,187

Financial assets at fair value through the income statement

 

158,386

149,648

Derivative financial instruments

 

217,703

222,538

Financial assets at fair value through other comprehensive income

 

66,715

52,816

Investments in associates and joint ventures

 

725

762

Goodwill and intangible assets

 

7,921

7,973

Current tax assets

 

799

798

Deferred tax assets

 

3,528

3,828

Other assets

 

11,110

7,728

Total assets

 

1,193,543

1,133,283

 

 

 

 

Liabilities

 

 

 

Deposits at amortised cost

 

412,710

394,838

Cash collateral and settlement balances

 

90,188

67,522

Repurchase agreements and other similar secured borrowing

 

20,832

18,578

Debt securities in issue

 

86,982

82,286

Subordinated liabilities

 

20,549

20,559

Trading portfolio liabilities

 

46,324

37,882

Financial liabilities designated at fair value

 

222,277

216,834

Derivative financial instruments

 

213,558

219,643

Current tax liabilities

 

600

628

Deferred tax liabilities

 

33

51

Other liabilities

 

13,606

10,683

Total liabilities

 

1,127,659

1,069,504

 

 

 

 

Equity

 

 

 

Called up share capital and share premium

 

4,320

4,311

Other reserves

 

5,408

5,153

Retained earnings

 

43,814

43,460

Shareholders' equity attributable to ordinary shareholders of the parent

 

53,542

52,924

Other equity instruments

 

11,119

9,632

Total equity excluding non-controlling interests

 

64,661

62,556

Non-controlling interests

 

1,223

1,223

Total equity

 

65,884

63,779

 

 

 

 

Total liabilities and equity

 

1,193,543

1,133,283

 

1

Barclays adopted the accounting standard IFRS 16 on 1 January 2019. The impact on adoption was an increase in other assets of £1.6bn, an increase in other liabilities of £1.6bn, with no material impact on retained earnings.

 

Condensed consolidated statement of changes in equity

 

Called up share capital and share premium

Other equity instruments

Other reserves

Retained earnings

Total

Non-controlling interests

Total equity

Three months ended 31.03.19

£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2019

4,311

9,632

5,153

43,460

62,556

1,223

63,779

Profit after tax

-

180

-

1,038

1,218

17

1,235

Other comprehensive profit after tax for the period

-

-

255

(408)

(153)

(153)

Total comprehensive income for the period

-

180

255

630

1,065

17

1,082

Issue of new ordinary shares

-

-

-

-

-

-

-

Issue of shares under employee share schemes

9

-

-

112

121

-

121

Issue and exchange of other equity instruments

-

1,509

-

-

1,509

-

1,509

Other equity instruments coupons paid1

-

(180)

-

-

(180)

-

(180)

Vesting of shares under employee share schemes

-

-

-

(384)

(384)

-

(384)

Dividends paid

-

-

-

-

-

(17)

(17)

Other movements

-

(22)

-

(4)

(26)

-

(26)

Balance as at 31 March 2019

4,320

11,119

5,408

43,814

64,661

1,223

65,884

 

 

As at 31.03.19

As at 31.12.18

Other reserves

£m

£m

Currency translation reserve

3,508

3,888

Fair value through other comprehensive income reserve

(116)

(258)

Cash flow hedging reserve

969

660

Own credit reserve

63

(121)

Other reserves and treasury shares

984

984

Total

5,408

5,153

 

1

From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.

 

Barclays PLC Parent Company

 

Summary balance sheet

 

 

 

As at 31.03.19

As at 31.12.18

Assets

£m

£m

Investment in subsidiaries

59,374

57,374

Loans and advances to subsidiaries

28,702

29,374

Financial assets at fair value through the income statement

7,212

6,945

Derivative financial instruments

126

168

Other assets

175

115

Total assets

95,589

93,976

 

 

 

Liabilities

 

 

Deposits at amortised cost

508

576

Debt securities in issue

31,587

32,373

Subordinated liabilities

6,616

6,775

Financial liabilities designated at fair value

140

-

Other liabilities

125

72

Total liabilities

38,976

39,796

 

 

 

Equity

 

 

Called up share capital and share premium

4,320

4,311

Other equity instruments

11,142

9,633

Other reserves

394

394

Retained earnings

40,757

39,842

Total equity

56,613

54,180

 

 

 

Total liabilities and equity

95,589

93,976

 

Investment in subsidiaries

 

The investment in subsidiaries of £59,374m (December 2018: £57,374m) predominantly relates to investments in Barclays Bank PLC and Barclays Bank UK PLC, as well as holdings of their AT1 securities of £11,163m (December 2018: £9,666m). The increase of £2,000m in the quarter was predominantly driven by a £504m capital contribution into Barclays Bank PLC and an additional $2,000m AT1 holding.

 

Subordinated liabilities and financial liabilities designated at fair value

 

In the three months ended 31 March 2019, Barclays PLC issued ¥20,000m Fixed-to-floating Rate Bonds, which are included within the financial liabilities designated at fair value balance of £140m (December 2018: £nil). Barclays PLC did not issue any subordinated liabilities in the period.

 

Other equity instruments

 

Other equity instruments comprises AT1 securities issued by Barclays PLC. In the quarter, Barclays PLC issued a $2,000m AT1 security.

 

Management of internal investments, loans and advances

 

Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. Barclays PLC may invest capital and funding into Barclays Bank PLC, Barclays Bank UK PLC and other Barclays Group subsidiaries such as the Group Service Company and the US Intermediate Holding Company (IHC). In June 2018, the Bank of England published its updated statement of policy on 'The Bank of England's approach to setting a minimum requirement for own funds and eligible liabilities (MREL)'. Accordingly, during the course of December 2018 Barclays restructured certain investments in subsidiaries, including subordinating internal MREL instruments beneath operating liabilities, to the extent required to achieve compliance with internal MREL requirements which came in to effect on 1 January 2019.

 

Appendix: Non-IFRS Performance Measures

 

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

 

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

 

Non-IFRS performance measures glossary

 

Measure

Definition

Loan: deposit ratio

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

Period end allocated tangible equity

Allocated tangible equity is calculated as 13.0% (2018: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Barclays Group's tangible shareholders' equity and the amounts allocated to businesses.

Average tangible shareholders' equity

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

Average allocated tangible equity

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

Return on average tangible shareholders' equity

Annualised profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments), as a proportion of average shareholders' equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill. The components of the calculation have been included on page 30.

Return on average allocated tangible equity

Annualised profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments), as a proportion of average allocated tangible equity. The components of the calculation have been included on page 30.

Cost: income ratio

Total operating expenses divided by total income.

Loan loss rate

Quoted in basis points and represents total annualised impairment charges divided by gross loans and advances held at amortised cost at the balance sheet date. The components of the calculation have been included on page 15.

Net interest margin

Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 14.

Tangible net asset value per share

Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 35.

Performance measures excluding litigation and conduct

Calculated by excluding litigation and conduct charges from performance measures. The components of the calculations have been included on pages 31 to 35.

 

Returns

 

Return on average tangible equity is calculated as profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments) as a proportion of average tangible equity, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.0% (2018: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office average allocated tangible equity represents the difference between the Barclays Group's average tangible shareholders' equity and the amounts allocated to businesses.

 

 

Attributable profit/(loss)

Tax credit in respect of interest payments on other equity instruments1

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

 

Average tangible equity

 

Return on average tangible equity

Three months ended 31.03.19

£m

£m

£m

 

£bn

 

%

Barclays UK

422

 

422

 

10.4

 

16.3

    Corporate and Investment Bank

582

 

582

 

25.1

 

9.3

    Consumer, Cards and Payments

206

 

206

 

5.4

 

15.4

Barclays International

788

 

788

 

30.5

 

10.4

Head Office

(172)

 

(172)

 

4.3

 

n/m

Barclays Group

1,038

 

1,038

 

45.2

 

9.2

 

 

 

 

 

 

 

 

Three months ended 31.03.18

 

 

 

 

 

 

 

Barclays UK

(38)

12

(26)

 

9.8

 

(1.1)

    Corporate and Investment Bank

805

29

834

 

25.6

 

13.0

    Consumer, Cards and Payments

168

5

173

 

4.5

 

15.6

Barclays International

973

34

1,007

 

30.1

 

13.4

Head Office

(1,699)

-

(1,699)

 

4.3

 

n/m

Barclays Group

(764)

46

(718)

 

44.2

 

(6.5)

 

1

From 2019, the tax credit is recorded in the income statement tax charge, whereas it was previously recorded in reserves. As a result the tax credit is no longer adjusted for to calculate return on average tangible equity.

 

Performance measures excluding litigation and conduct

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays Group

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Cost: income ratio

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Total operating expenses

(3,318)

 

(4,093)

(3,434)

(3,391)

(5,325)

 

(4,369)

(3,355)

(4,113)

Impact of litigation and conduct

61

 

60

105

81

1,961

 

383

81

715

Operating expenses

(3,257)

 

(4,033)

(3,329)

(3,310)

(3,364)

 

(3,986)

(3,274)

(3,398)

 

 

 

 

 

 

 

 

 

 

 

Total income

5,252

 

5,073

5,129

5,576

5,358

 

5,022

5,173

5,058

 

 

 

 

 

 

 

 

 

 

 

Cost: income ratio excluding litigation and conduct

62%

 

79%

65%

59%

63%

 

79%

63%

67%

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before tax

1,483

 

374

1,461

1,895

(236)

 

93

1,107

659

Impact of litigation and conduct

61

 

60

105

81

1,961

 

383

81

715

Profit before tax excluding litigation and conduct

1,544

 

434

1,566

1,976

1,725

 

476

1,188

1,374

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable profit/(loss)

1,038

 

(76)

1,002

1,232

(764)

 

(1,294)

583

(1,401)

Post-tax impact of litigation and conduct

46

 

62

85

59

1,930

 

351

77

703

Attributable profit/(loss) excluding litigation and conduct

1,084

 

(14)

1,087

1,291

1,166

 

(943)

660

(698)

Tax credit in respect of interest payments on other equity instruments

-

 

62

48

47

46

 

49

43

44

Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct

1,084

 

48

1,135

1,338

1,212

 

(894)

703

(654)

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Average shareholders' equity

53.2

 

52.2

52.5

51.3

52.0

 

55.9

56.6

57.5

Average goodwill and intangibles

(8.0)

 

(7.9)

(7.9)

(7.8)

(7.8)

 

(7.8)

(7.8)

(8.2)

Average tangible shareholders' equity

45.2

 

44.3

44.6

43.5

44.2

 

48.1

48.9

49.3

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity excluding litigation and conduct

9.6%

 

0.4%

10.2%

12.3%

11.0%

 

(7.4%)

5.7%

(5.3%)

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of shares (m)

17,111

 

17,075

17,074

17,067

17,037

 

16,996

16,994

16,989

 

 

 

 

 

 

 

 

 

 

 

Basic earnings/(loss) per ordinary share excluding litigation and conduct

6.3p

 

0.3p

6.6p

7.8p

7.1p

 

(5.3p)

4.1p

(3.8p)

 

Barclays UK

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Cost: income ratio

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Total operating expenses

(1,002)

 

(1,175)

(1,042)

(971)

(1,416)

 

(1,229)

(991)

(1,673)

Impact of litigation and conduct

3

 

15

54

3

411

 

53

11

699

Operating expenses

(999)

 

(1,160)

(988)

(968)

(1,005)

 

(1,176)

(980)

(974)

 

 

 

 

 

 

 

 

 

 

 

Total income

1,777

 

1,863

1,896

1,836

1,788

 

1,870

1,852

1,820

 

 

 

 

 

 

 

 

 

 

 

Cost: income ratio excluding litigation and conduct

56%

 

62%

52%

53%

56%

 

63%

53%

54%

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before tax

585

 

390

740

656

170

 

452

661

(74)

Impact of litigation and conduct

3

 

15

54

3

411

 

53

11

699

Profit before tax excluding litigation and conduct

588

 

405

794

659

581

 

505

672

625

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable profit/(loss)

422

 

232

500

464

(38)

 

245

423

(285)

Post-tax impact of litigation and conduct

2

 

12

48

1

411

 

37

8

691

Attributable profit excluding litigation and conduct

424

 

244

548

465

373

 

282

431

406

Tax credit in respect of interest payments on other equity instruments

-

 

9

10

9

12

 

13

9

9

Profit attributable to ordinary equity holders of the parent excluding litigation and conduct

424

 

253

558

474

385

 

295

440

415

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Average allocated equity

13.9

 

13.6

13.7

13.6

13.4

 

13.1

14.0

13.5

Average goodwill and intangibles

(3.5)

 

(3.5)

(3.6)

(3.5)

(3.5)

 

(3.5)

(4.6)

(4.8)

Average allocated tangible equity

10.4

 

10.1

10.1

10.1

9.8

 

9.6

9.4

8.7

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity excluding litigation and conduct

16.4%

 

10.1%

22.0%

18.8%

15.7%

 

12.3%

18.7%

19.1%

 

Barclays International

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Cost: income ratio

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Total operating expenses

(2,225)

 

(2,684)

(2,309)

(2,353)

(2,315)

 

(2,948)

(2,187)

(2,272)

Impact of litigation and conduct

19

 

33

32

47

15

 

255

5

(4)

Operating expenses

(2,206)

 

(2,651)

(2,277)

(2,306)

(2,300)

 

(2,693)

(2,182)

(2,276)

 

 

 

 

 

 

 

 

 

 

 

Total income

3,570

 

3,221

3,290

3,707

3,808

 

3,319

3,315

3,610

 

 

 

 

 

 

 

 

 

 

 

Cost: income ratio excluding litigation and conduct

62%

 

82%

69%

62%

60%

 

81%

66%

63%

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

 

 

 

 

 

 

 

 

 

Profit before tax

1,118

 

215

850

1,297

1,413

 

6

652

1,261

Impact of litigation and conduct

19

 

33

32

47

15

 

255

5

(4)

Profit before tax excluding litigation and conduct

1,137

 

248

882

1,344

1,428

 

261

657

1,257

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable profit/(loss)

788

 

(72)

650

890

973

 

(1,168)

359

819

Post-tax impact of litigation and conduct

16

 

34

26

34

12

 

250

4

(3)

Attributable profit/(loss) excluding litigation and conduct

804

 

(38)

676

924

985

 

(918)

363

816

Tax credit in respect of interest payments on other equity instruments

-

 

51

37

36

34

 

34

32

27

Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct

804

 

13

713

960

1,019

 

(884)

395

843

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Average allocated equity

31.6

 

32.4

32.5

32.8

31.4

 

29.9

31.5

30.1

Average goodwill and intangibles

(1.1)

 

(1.1)

(1.3)

(1.4)

(1.4)

 

(1.4)

(2.6)

(2.8)

Average allocated tangible equity

30.5

 

31.3

31.1

31.4

30.1

 

28.5

28.9

27.4

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity excluding litigation and conduct

10.6%

 

0.2%

9.2%

12.2%

13.6%

 

(12.4%)

5.5%

12.3%

 

Corporate and Investment Bank

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Profit before tax

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit/(loss) before tax

827

 

85

498

835

1,175

 

(252)

593

925

Impact of litigation and conduct

19

 

23

32

-

13

 

255

5

(4)

Profit before tax excluding litigation and conduct

846

 

108

530

835

1,188

 

3

598

921

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable profit/(loss)

582

 

(128)

397

567

805

 

(1,256)

340

623

Post-tax impact of litigation and conduct

16

 

27

25

-

10

 

250

4

(3)

Attributable profit/(loss) excluding litigation and conduct

598

 

(101)

422

567

815

 

(1,006)

344

620

Tax credit in respect of interest payments on other equity instruments

-

 

44

34

33

29

 

29

28

22

Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct

598

 

(57)

456

600

844

 

(977)

372

642

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Average allocated equity

25.2

 

26.0

26.2

26.7

25.9

 

24.7

25.8

24.4

Average goodwill and intangibles

(0.1)

 

-

(0.2)

(0.3)

(0.3)

 

(0.4)

(1.1)

(1.2)

Average allocated tangible equity

25.1

 

26.0

25.9

26.4

25.6

 

24.3

24.8

23.3

 

 

 

 

 

 

 

 

Return on average allocated tangible equity excluding litigation and conduct

9.5%

 

(0.9%)

7.0%

9.1%

13.2%

 

(16.1%)

6.0%

11.1%

 

Consumer, Cards and Payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Profit before tax

291

 

130

352

462

238

 

258

59

336

Impact of litigation and conduct

-

 

10

-

47

2

 

-

-

-

Profit before tax excluding litigation and conduct

291

 

140

352

509

240

 

258

59

336

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable profit

206

 

56

253

323

168

 

88

19

196

Post-tax impact of litigation and conduct

-

 

7

1

34

2

 

-

-

-

Attributable profit excluding litigation and conduct

206

 

63

254

357

170

 

88

19

196

Tax credit in respect of interest payments on other equity instruments

-

 

7

3

3

5

 

5

4

5

Profit attributable to ordinary equity holders of the parent excluding litigation and conduct

206

 

70

257

360

175

 

93

23

201

 

 

 

 

 

 

 

 

 

 

 

Return on average allocated tangible equity

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Average allocated equity

6.4

 

6.4

6.3

6.0

5.5

 

5.3

5.7

5.7

Average goodwill and intangibles

(1.0)

 

(1.1)

(1.1)

(1.1)

(1.0)

 

(1.1)

(1.5)

(1.6)

Average allocated tangible equity

5.4

 

5.3

5.2

5.0

4.5

 

4.2

4.2

4.1

 

 

 

 

 

 

 

 

Return on average allocated tangible equity excluding litigation and conduct

15.4%

 

5.4%

19.9%

28.9%

15.7%

 

9.0%

2.2%

19.4%

 

Head Office

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Profit before tax

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Loss before tax

(220)

 

(231)

(129)

(58)

(1,819)

 

(365)

(206)

(122)

Impact of litigation and conduct

39

 

12

19

31

1,535

 

75

65

1

Loss before tax excluding litigation and conduct

(181)

 

(219)

(110)

(27)

(284)

 

(290)

(141)

(121)

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Attributable loss

(172)

 

(236)

(148)

(122)

(1,699)

 

(371)

(199)

(175)

Post-tax impact of litigation and conduct

28

 

16

11

24

1,507

 

64

65

1

Attributable loss excluding litigation and conduct

(144)

 

(220)

(137)

(98)

(192)

 

(307)

(134)

(174)

 

Tangible net asset value

 

 

 

 

As at 31.03.19

As at 31.12.18

As at 31.03.18

 

£m

£m

£m

Total equity excluding non-controlling interests

64,661

62,556

59,519

Other equity instruments

(11,119)

(9,632)

(8,941)

Goodwill and intangibles

(7,921)

(7,973)

(7,806)

Tangible shareholders' equity attributable to ordinary shareholders of the parent

45,621

44,951

42,772

 

 

 

 

 

m

m

m

Shares in issue

17,139

17,133

17,069

 

 

 

 

 

p

p

p

Tangible net asset value per share

266

262

251

 

Appendix: Barclays Non-Core Results

 

The Barclays Non-Core segment was closed on 1 July 2017 with the residual assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Financial results up until 30 June 2017 are reflected in the Non-Core segment within the Barclays Group's results.

 

Barclays Non-Core

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q217

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

-

 

-

-

-

-

 

-

-

(123)

Net trading income

-

 

-

-

-

-

 

-

-

(411)

Net fee, commission and other income

-

 

-

-

-

-

 

-

-

78

Total income

-

 

-

-

-

-

 

-

-

(456)

Credit impairment charges and other provisions

-

 

-

-

-

-

 

-

-

(27)

Net operating expenses

-

 

-

-

-

-

 

-

-

(483)

Operating expenses

-

 

-

-

-

-

 

-

-

(108)

Litigation and conduct

-

 

-

-

-

-

 

-

-

(19)

Total operating expenses

-

 

-

-

-

-

 

-

-

(127)

Other net income

-

 

-

-

-

-

 

-

-

204

Loss before tax

-

 

-

-

-

-

 

-

-

(406)

Tax credit

-

 

-

-

-

-

 

-

-

207

Loss after tax

-

 

-

-

-

-

 

-

-

(199)

Non-controlling interests

-

 

-

-

-

-

 

-

-

(8)

Other equity instrument holders

-

 

-

-

-

-

 

-

-

(19)

Attributable loss

-

 

-

-

-

-

 

-

-

(226)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

-

 

-

-

-

-

 

-

-

48.3

Derivative financial instrument assets

-

 

-

-

-

-

 

-

-

150.3

Derivative financial instrument liabilities

-

 

-

-

-

-

 

-

-

143.0

Financial assets designated at fair value

-

 

-

-

-

-

 

-

-

12.1

Total assets

-

 

-

-

-

-

 

-

-

233.0

Customer deposits

-

 

-

-

-

-

 

-

-

11.8

Risk weighted assets

-

 

-

-

-

-

 

-

-

22.8

 

Appendix: Discontinued Operation Results

 

Following the reduction of the Barclays Group's interest in BAGL in 2017, Barclays remaining holding of 14.9%, as at Q119, is reported as a financial asset at fair value through other comprehensive income in the Head Office segment, with Barclays share of Absa Group Limited's dividend recognised in the Head Office income statement.

 

Africa Banking

 

 

 

 

 

 

 

 

 

 

 

Q119

 

Q418

Q318

Q218

Q118

 

Q417

Q317

Q2171

Income statement information

£m

 

£m

£m

£m

£m

 

£m

£m

£m

Net interest income

-

 

-

-

-

-

 

-

-

407

Net fee, commission and other income

-

 

-

-

-

-

 

-

-

297

Total income

-

 

-

-

-

-

 

-

-

704

Credit impairment charges and other provisions

-

 

-

-

-

-

 

-

-

(71)

Net operating income

-

 

-

-

-

-

 

-

-

633

Operating expenses excluding impairment of Barclays holding in BAGL

-

 

-

-

-

-

 

-

-

(477)

Other net income excluding loss on sale of BAGL

-

 

-

-

-

-

 

-

-

3

Profit before tax excluding impairment of Barclays holding in BAGL and loss on sale of BAGL

-

 

-

-

-

-

 

-

-

159

Impairment of Barclays holding in BAGL

-

 

-

-

-

-

 

-

-

(206)

Loss on sale of BAGL

-

 

-

-

-

-

 

-

-

(1,435)

Loss before tax

-

 

-

-

-

-

 

-

-

(1,482)

Loss after tax

-

 

-

-

-

-

 

-

-

(1,537)

Attributable loss

-

 

-

-

-

-

 

-

-

(1,534)

 

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

Total assets

-

 

-

-

-

-

 

-

-

-

Risk weighted assets

-

 

-

-

-

-

 

-

-

9.8

 

1

The Africa Banking income statement represents two months of results as a discontinued operation to 31 May 2017.

 

Shareholder Information

 

 

 

 

 

 

 

 

Results timetable1

 

Date

 

 

 

 

2019 Interim Results Announcement

 

1 August 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change3

Exchange rates2

31.03.19

31.12.18

31.03.18

 

31.12.18

31.03.18

Period end - USD/GBP

1.30

1.28

1.40

 

2%

(7%)

3 month average - USD/GBP

1.30

1.29

1.39

 

1%

(6%)

Period end - EUR/GBP

1.16

1.12

1.14

 

4%

2%

3 month average - EUR/GBP

1.15

1.13

1.13

 

2%

2%

 

 

 

 

 

 

 

Share price data

 

 

 

 

 

 

Barclays PLC (p)

154.68

150.52

206.50

 

 

 

Barclays PLC number of shares (m)

17,139

17,133

17,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For further information please contact

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor relations

Media relations

 

 

 

Lisa Bartrip +44 (0) 20 7773 0708

Thomas Hoskin +44 (0) 20 7116 4755

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Registered office

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Registrar

 

 

 

 

 

 

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

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

 

1

Note that these dates are provisional and subject to change.

2

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

3

The change is the impact to GBP reported information.

4

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

 

Notes

 

The terms Barclays or Barclays Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2019 to the corresponding three months of 2018 and balance sheet analysis as at 31 March 2019 with comparatives relating to 31 December 2018 and 31 March 2018. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; the abbreviations '€m' and '€bn' represent millions and thousands of millions of Euros respectively.

 

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time

 

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

 

The information in this announcement, which was approved by the Board of Directors on 24 April 2019, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2018, which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

 

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

 

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

 

Non-IFRS performance measures

 

Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Barclays Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 29 to 37 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

 

Forward-looking statements

 

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Barclays Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend payout ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS impacts and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards including evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Barclays Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; instability as a result of the exit by the United Kingdom from the European Union and the disruption that may subsequently result in the UK and globally; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Barclays Group's control. As a result, the Barclays Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the Barclays Group's forward-looking statements. Additional risks and factors which may impact the Barclays Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2018), which are available on the SEC's website at www.sec.gov.

 

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 


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