SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, each of
the registrants has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BARCLAYS
PLC
(Registrant)
Date:
February 22, 2018
By: /s/
Garth Wright
----------------------
Garth
Wright
Assistant
Secretary
BARCLAYS
BANK PLC
(Registrant)
Date:
February 22, 2018
By: /s/
Garth Wright
----------------------
Garth
Wright
Assistant
Secretary
Barclays PLC
Results Announcement
31
December 2017
Table of Contents
Results Announcement
|
Page
|
Notes
|
1
|
Performance
Highlights
|
2-3
|
Group
Chief Executive Officer's Review
|
4
|
Group
Finance Director's Review
|
5-7
|
Results by Business
|
|
●
Barclays
UK
|
8-10
|
●
Barclays
International
|
11-13
|
●
Head
Office
|
14
|
Barclays
Non-Core Results
|
15
|
Discontinued
Operation Results
|
16
|
Quarterly
Results Summary
|
17
|
Quarterly
Results by Business
|
18-21
|
Performance Management
|
|
●
Margins and
Balances
|
22
|
●
Remuneration
|
23-24
|
Risk Management
|
|
●
Overview
|
25
|
●
Credit
Risk
|
26-28
|
●
Treasury and
Capital Risk
|
29-40
|
Statement
of Directors' Responsibilities
|
41
|
Condensed
Consolidated Financial Statements
|
42-46
|
Financial
Statement Notes
|
47-54
|
Appendix: Non-IFRS
Performance Measures
|
55-57
|
Shareholder
Information
|
58
|
BARCLAYS
PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE:
+44 (0) 20 7116 1000. COMPANY NO. 48839.
Notes
The
terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the year ended 31 December 2017 to the
corresponding twelve months of 2016 and balance sheet analysis as
at 31 December 2017 with comparatives relating to 31 December 2016.
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; and 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/results.
The
information in this announcement, which was approved by the Board
of Directors on 21 February 2018, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2017, which
includes certain information required for the Joint Annual Report
on Form 20-F of Barclays PLC and Barclays Bank PLC to the US
Securities and Exchange Commission (SEC) and which contain an
unqualified audit report under Section 495 of the Companies Act
2006 (which does not make any statements under Section 498 of the
Companies Act 2006) will be delivered to the Registrar of Companies
in accordance with Section 441 of the Companies Act
2006.
These
results will be furnished as a Form 20-F to the SEC as soon as
practicable following their publication. Once furnished with the
SEC, copies of the Form 20-F will also be available from the
Barclays Investor Relations website at home.barclays/results and
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 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 business' 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
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 55-57 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 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 Group's future
financial position, income growth, assets, impairment charges,
provisions, business strategy, structural reform, 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 and the impact of any
regulatory deconsolidation resulting from the sell down of the
Group's interest in Barclays Africa Group Limited, estimates of
capital expenditures and plans and objectives for future
operations, projected employee numbers, IFRS 9 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 the implementation of IFRS 9, 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 (including with regard to the future
structure of the Group) applicable to past, current and future
periods; UK, US, Africa, Eurozone and global macroeconomic and
business conditions; the effects of continued 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 Group or any securities issued by such
entities; the potential for one or more countries exiting the
Eurozone; the implications of the exercise by the United Kingdom of
Article 50 of the Treaty of Lisbon and the disruption that may
result in the UK and globally from the withdrawal of the United
Kingdom from the European Union and the success of future
acquisitions, disposals and other strategic transactions. A number
of these influences and factors are beyond the Group's control. As
a result, the 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 Group's
forward-looking statements. Additional risks and factors which may
impact the 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 2017), which will be 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.
Performance Highlights
Transatlantic Consumer and Wholesale Bank with Global
Reach
Significant strategic progress was made in 2017, as profit before
tax improved and the CET1 ratio strengthened further, enabling a
reset of the dividend in 2018 and enhanced focus
Composition of the Group liquidity pool
on driving improved
returns
●
Returns:
|
●
Group profit
before tax increased 10% to £3.5bn. The attributable loss of
£1.9bn (2016: profit of £1.6bn) and Return on Tangible
Equity (RoTE) of negative 3.6% (2016: positive 3.6%)
included:
- litigation
and conduct of £1.2bn, including charges for Payment
Protection Insurance (PPI) of £0.7bn,
-
losses related to the sell down of Barclays Africa Group Limited
(BAGL) of £2.5bn, and
-
a one-off net tax charge of £0.9bn due to the re-measurement
of US deferred tax assets (DTAs) in Q417
●
Group
RoTE, excluding the material items listed above, was
5.6%
●
Group
RoTE target, excluding litigation and conduct, of greater than 9%
in 2019 and greater than 10% in 2020, based on a Group Common
Equity Tier 1 (CET1) ratio of c.13%
|
●
Cost
efficiency:
|
●
Group
operating expenses were £15.5bn (2016: £16.3bn),
including litigation and conduct charges of £1.2bn (2016:
£1.4bn), resulting in a cost: income ratio of 73% (2016:
76%)
●
Excluding
litigation and conduct charges, Group operating expenses were
£14.2bn, in line with 2017 guidance
●
Guidance
for Group operating expenses of £13.6-13.9bn in 2019,
excluding litigation and conduct
|
●
Capital and
dividends:
|
●
CET1 ratio
increased to 13.3% (December 2016: 12.4%), within the end-state
target range of c.13%
●
Improvement
driven by organic capital generation from continuing operations,
and the benefit of the proportional consolidation of BAGL and the
rundown of Non-Core, partially offset by adverse movements in
reserves and the net impact of the re-measurement of US
DTAs
●
Declared
dividend of 3.0p per share for 2017 and the intention to pay 6.5p
in 2018
|
●
|
Group profit before tax increased 10% to £3,541m
driven
by positive operating jaws as operating expenses reduced 5%,
primarily reflecting lower Non-Core related costs. Income decreased
2%, primarily driven by lower revenue in Barclays International and
Head Office, whilst impairment was broadly stable
|
|
-
|
Barclays UK profit before tax increased to £1,747m (2016:
£1,738m)
reflecting 2% lower income, a 13% reduction in
impairment and a cost: income ratio of 66% (2016: 65%), including
charges for PPI of £700m (2016: £1,000m)
|
|
-
|
Barclays International profit before tax declined to £3,275m
(2016: £4,211m)
driven by a 4% decrease in income,
largely as a result of weak market conditions impacting the
Corporate and Investment Bank (CIB) in H217, while operating
expenses increased 4% and credit impairment charges increased
11%
|
●
|
Group attributable loss of £1,922m (2016: profit of
£1,623m)
included losses of £2,525m related to the
sell down of BAGL and the one-off net tax charge of £901m due
to the re-measurement of US DTAs
|
●
|
Group basic loss per share was 10.3p (2016: earnings per share of
10.4p)
. Excluding litigation and conduct, losses related to
the sell down of BAGL and the net charge due to the re-measurement
of US DTAs, earnings per share was 16.2p
|
●
|
Tangible net asset value per share decreased to 276p (December
2016: 290p)
as profit before tax was more than offset by the
net impact of the re-measurement of US DTAs in Q417 and adverse
movements across reserves
|
Barclays Group results
|
|
for the year ended
|
31.12.17
|
31.12.16
|
|
|
£m
|
£m
|
% Change
|
Total income
|
21,076
|
21,451
|
(2)
|
Credit impairment charges and other provisions
|
(2,336)
|
(2,373)
|
2
|
Net operating income
|
18,740
|
19,078
|
(2)
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(13,884)
|
(14,565)
|
5
|
UK bank levy
|
(365)
|
(410)
|
11
|
Litigation and conduct
|
(1,207)
|
(1,363)
|
11
|
Operating expenses
|
(15,456)
|
(16,338)
|
5
|
Other net income
|
257
|
490
|
(48)
|
Profit before tax
|
3,541
|
3,230
|
10
|
Tax charge
|
(2,240)
|
(993)
|
|
Profit after tax in respect of continuing
operations
|
1,301
|
2,237
|
(42)
|
(Loss)/profit after tax in respect of discontinued
operation
|
(2,195)
|
591
|
|
Non-controlling interests in respect of continuing
operations
|
(249)
|
(346)
|
28
|
Non-controlling interests in respect of discontinued
operation
|
(140)
|
(402)
|
65
|
Other equity instrument holders
1
|
(639)
|
(457)
|
(40)
|
Attributable (loss)/profit
|
(1,922)
|
1,623
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average tangible shareholders' equity
1
|
(3.6%)
|
3.6%
|
|
Average tangible shareholders' equity (£bn)
|
48.9
|
48.7
|
|
Cost: income ratio
|
73%
|
76%
|
|
Loan loss rate (bps)
|
57
|
53
|
|
|
|
|
|
Basic (loss)/earnings per share
1
|
(10.3p)
|
10.4p
|
|
Basic earnings per share in respect of continuing
operations
1
|
3.5p
|
9.3p
|
|
Dividend per share
|
3.0p
|
3.0p
|
|
|
|
|
|
Balance sheet and capital management
|
|
|
|
Tangible net asset value per share
|
276p
|
290p
|
|
Common equity tier 1 ratio
|
13.3%
|
12.4%
|
|
Common equity tier 1 capital (£bn)
|
41.6
|
45.2
|
|
Risk weighted assets (£bn)
|
313
|
366
|
|
Average UK leverage ratio
2
|
4.9%
|
4.5%
|
|
Average fully loaded tier 1 capital
2
(£bn)
|
51.2
|
51.6
|
|
Average UK leverage exposure
2
(£bn)
|
1,045
|
1,137
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool (£bn)
|
220
|
165
|
|
CRD IV liquidity coverage ratio
|
154%
|
131%
|
|
Loan: deposit ratio
3
|
80%
|
89%
|
|
1
|
The profit after tax attributable to other equity instrument
holders of £639m (2016: £457m) is offset by a tax credit
recorded in reserves of £174m (2016: £128m). The net
amount of £465m (2016: £329m), along with non-controlling
interests, is deducted from profit after tax in order to calculate
earnings per share and return on average tangible shareholders'
equity.
|
2
|
The average UK leverage ratio uses capital and exposure measures
based on the last day of each month in the quarter; additionally
the average exposure measure excludes qualifying central bank
claims.
|
3
|
Loan: deposit ratio excludes Head Office and investment banking
balances other than interest earning lending. Comparative has been
restated to include interest earning lending balances within the
investment banking business.
|
Group Chief Executive Officer's Review
"2017 was a year of considerable strategic progress for Barclays.
The sell down of our shareholding in Barclays Africa, closure of
our Non-Core unit, the establishment of our Service Company, and
the creation of our UK ring-fenced bank, mean that, in terms of
size and structure, we are now the diversified Transatlantic
Consumer and Wholesale bank we set out in our strategy in March
2016.
We have a portfolio of profitable businesses, producing significant
earnings, and have plans and investments in place to grow those
earnings over time.
We have already started to see some of the benefits of our work in
2017. Group profit before tax increased 10% year-on-year as a
result of our team's focus on execution. Barclays UK navigated the
year well, reaching a digital banking milestone with our ten
millionth customer. Within Barclays International, we increased
Banking fee share in our Corporate and Investment Bank in 2017, and
our Consumer, Cards and Payments business continued to produce very
strong income while managing risk effectively.
Although we are only seven weeks into the first quarter, and it is
too early to offer formal guidance, we are pleased with the start
to the year, and in particular in the markets businesses in CIB,
where income is tracking above the level for the corresponding
period in 2017 in dollars, and also in sterling, despite the weaker
dollar we are currently experiencing.
Critically, as we have carried out the work to reshape the
business, we have continued to generate capital organically. Our
CET1 ratio today stands at 13.3%, comfortably within our end-state
target range.
While we still have a number of legacy conduct issues to address, I
am confident in the capacity of this business to generate excess
capital going forward, and it remains our intention over time to
return a greater proportion of that excess capital to shareholders
through dividends, and other means of capital distribution,
including share buybacks.
As a first demonstration of that intent, we are pleased to be able
to announce today the restoration of the dividend to six and a half
pence for 2018."
James E Staley, Group Chief Executive Officer
Group Finance Director's Review
Financial
performance in 2017 was encouraging, with increased profit before
tax, a reduced cost: income ratio and strong capital ratio
progression. Significant progress was also made on strategic
objectives in the year, with the closure of Barclays Non-Core and
the sale of a stake in, and consequent accounting deconsolidation
of, BAGL. New Group returns targets were set: to achieve RoTE of
greater than 9% in 2019 and greater than 10% in 2020, excluding
litigation and conduct, based on a CET1 ratio of c.13%. The 2017
financial results provide a firm platform on which to build towards
these.
Following
the closure of Barclays Non-Core on 1 July 2017, Group results for
2017 included a Barclays Non-Core loss before tax for the six
months ended 30 June 2017 of £647m, compared to a loss before
tax of £2,786m for the full year in 2016. From 1 July 2017,
residual Barclays Non-Core assets and liabilities were reintegrated
into, and associated financial performance subsequently reported
in, Barclays UK, Barclays International and Head
Office.
Group performance
●
|
Profit
before tax increased 10% to £3,541m driven by a 5% reduction
in operating expenses, partially offset by a 2% reduction in income
and lower other net income. Results were impacted by the
appreciation of average USD and EUR against GBP of 5% and 7%
respectively, compared to 2016, which positively impacted income
and adversely affected impairment and operating
expenses
|
●
|
Total
income decreased to £21,076m (2016: £21,451m) reflecting
a £613m decrease in Barclays International and a £262m
reduction in Head Office, partially offset by a reduction in losses
related to Non-Core
|
●
|
Credit
impairment charges were broadly stable at £2,336m (2016:
£2,373m) and reflected a charge of £168m in 2017 relating
to deferred consideration from an asset sale in US Cards and the
non-recurrence of a £320m charge in 2016 following the
management review of the UK and US cards portfolio impairment
modelling. Impairment increased in Barclays International driven by
an increase in underlying delinquency trends and business growth in
US Cards. The Group loan loss rate increased 4bps to
57bps
|
●
|
Operating
expenses reduced 5% to £15,456m driven primarily by lower
Non-Core related operating expenses. The cost: income ratio reduced
to 73% (2016: 76%)
|
●
|
Other
net income of £257m (2016: £490m) primarily reflected a
gain of £109m on the sale of Barclays' share in VocaLink to
MasterCard and a gain of £76m on the sale of a joint venture
in Japan
|
●
|
Profit after tax in respect of continuing operations was
£1,301m (2016: £2,237m). The tax charge of £2,240m
included a
one-off tax charge of £1,177m due to the
re-measurement of US DTAs as a result of the US Tax Cuts and Jobs
Act, partially offset by an unrelated £276m increase in US
DTAs due to a re-measurement of Barclays Bank PLC's (BBPLC) US
branch DTAs
|
●
|
Loss
after tax in respect of the Africa Banking discontinued operation
of £2,195m included a £1,090m impairment of Barclays'
holding in BAGL and a £1,435m loss on the sale of 33.7% of
BAGL's issued share capital, primarily due to recycling of currency
translation reserve losses to the income statement on accounting
deconsolidation
|
●
|
RoTE
was negative 3.6% (2016: positive 3.6%) and basic loss per share
was 10.3p (2016: earnings per share of 10.4p). Excluding litigation
and conduct, losses related to the sell down of BAGL and the
one-off net charge due to the re-measurement of US DTAs, RoTE was
5.6% and earnings per share was 16.2p
|
●
|
Refer
to pages 8-14 for further detail on Results by
Business
|
Group capital and leverage
●
|
The
fully loaded CET1 ratio increased to 13.3% (December 2016: 12.4%)
principally due to a reduction in risk weighted assets (RWAs) of
£52.6bn to £313.0bn. CET1 capital decreased £3.6bn
to £41.6bn
|
|
-
|
The
sell down of Barclays' holding in BAGL to 14.9%, resulting in
regulatory proportional consolidation, increased the CET1 ratio by
c.60bps with a £31.1bn reduction in RWAs, offset by a
£1.8bn reduction due to BAGL minority interests no longer
being included in CET1 capital
|
|
-
|
Losses
in respect of the discontinued operation due to the impairment of
Barclays' holding in BAGL allocated to goodwill, and the recycling
of the BAGL currency translation reserve losses to the income
statement, had no impact on CET1
|
|
-
|
The
CET1 ratio increased by a further c.50bps as a result of other RWA
reductions, excluding the impact of foreign currency movements,
including reductions in Non-Core
|
|
-
|
Excluding
the impacts of BAGL and foreign currency movements, CET1 capital
decreased further, as profits relating to continuing operations,
after absorbing the net impact of the re-measurement of US DTAs,
were offset by the redemption of USD preference shares and the
payment of pension deficit reduction contributions in the
year
|
●
|
The
average UK leverage ratio increased to 4.9% (December 2016: 4.5%)
primarily driven by the issuance of additional tier 1 (AT1)
securities, the reduction in Non-Core related exposures and due to
regulatory proportional consolidation of BAGL
|
●
|
Tangible
net asset value per share decreased to 276p (December 2016: 290p)
as profit before tax was more than offset by the net impact of the
re-measurement of US DTAs in Q417 and adverse movements across
reserves
|
Group funding and liquidity
●
|
The
Group continued to maintain surpluses to its internal and
regulatory requirements. The liquidity pool increased to
£220bn (December 2016: £165bn) reflecting the approach of
holding a conservative liquidity position and through net deposit
growth, the unwind of legacy Non-Core portfolios, money market
borrowing and drawdown from the Bank of England Term Funding
Scheme. The liquidity coverage ratio (LCR) increased to 154%
(December 2016: 131%), equivalent to a surplus of £75bn
(December 2016: £39bn) to 100%
|
●
|
Wholesale
funding outstanding excluding repurchase agreements was £157bn
(December 2016: £158bn). The Group issued £11.5bn
equivalent of capital and term senior unsecured debt from Barclays
PLC (the Parent company) of which £6.1bn was in public senior
unsecured debt and £5.4bn in capital instruments. In the same
period, £6.1bn of BBPLC capital and senior public term
instruments either matured or were redeemed, including the $1.375bn
7.1% Series 3 USD preference shares
|
Other matters
●
|
On 1
June 2017, Barclays sold 286 million ordinary shares of BAGL,
representing 33.7% of BAGL's issued share capital. The sale
resulted in the accounting deconsolidation of BAGL from the
Barclays Group. Following the sale, BAGL was no longer reported as
a discontinued operation, with the retained investment accounted
for as an Available for Sale (AFS) asset in Barclays' financial
statements. The contribution of a further 1.5% of BAGL's ordinary
shares to a Black Economic Empowerment scheme in Q317 resulted in
Barclays accounting for 126 million ordinary shares in BAGL,
representing 14.9% of BAGL's issued share capital. For regulatory
reporting purposes, BAGL is treated on a proportional consolidated
basis
|
●
|
Barclays'
measurement of its US DTAs reduced £0.9bn in Q417, as a
£1.2bn decrease as result of the US Tax Cuts and Jobs Act,
enacted on 22 December 2017, was partially offset by an unrelated
£0.3bn increase due to a re-measurement of BBPLC's US branch
DTAs, as a result of BBPLC making a tax election in the period to
exclude the future profits and losses of its overseas branches from
UK taxation. The net reduction in the measurement of US DTAs
resulted in a one-off net charge of £0.9bn to Group profit
after tax, a c.20bps reduction to the Group CET1 ratio and a
decrease in tangible net asset value of 5p per share
|
●
|
Additional
charges of £700m (2016: £1,000m) relating to PPI were
recognised in Q217. The remaining PPI provision as at 31 December
2017 was £1.6bn (December 2016: £2.0bn). Management views
its current PPI provision as appropriate, however, will continue to
closely monitor complaint trends and the associated provision
adequacy
|
●
|
A
provision of £240m in respect of Foreign Exchange matters was
recognised in Q417
|
●
|
In June
2017, the Serious Fraud Office (SFO) brought certain charges
against Barclays PLC in relation to matters that arose in the
context of Barclays' capital raisings in 2008. Further to that
development, in February 2018, the SFO has also charged BBPLC in
respect of this matter
|
●
|
Certain
legal proceedings and investigations relating to legacy issues
remain outstanding. Resolving outstanding legacy issues in an
appropriate timeframe and manner will continue to be a
priority
|
IFRS 9 Financial
Instruments
1
●
|
IFRS 9
Financial Instruments is effective for periods beginning on or
after 1 January 2018
.
Barclays'
estimated IFRS 9 impact is a decrease in shareholders' equity of
approximately £2.2bn post-tax. The estimated reduction in
shareholders' equity equates to a decrease in tangible net asset
value of approximately 13p per share
|
●
|
The
Group's CET1 ratio will be impacted by IFRS 9 primarily from an
increase in credit impairment provisions net of tax, offset by a
reduction in the regulatory deduction where expected loss is
greater than impairment
|
●
|
As at 1
January 2018, the expected fully loaded CET1 ratio impact without
transitional arrangements would be an estimated reduction of
approximately 34bps. The Group intends to use transitional
arrangements, under which the impact is negligible as at 1 January
2018 and is expected to remain immaterial during 2018
|
1
|
Note:
|
|
-
|
The estimated decrease in shareholders' equity includes the impact
of both balance sheet classification and measurement changes, and
the increase to credit impairment provisions compared to those at
31 December 2017 under IAS 39.
|
|
-
|
This impact assessment has been estimated under an interim control
environment with models that continue to undergo validation. The
implementation of the comprehensive end state control environment
will continue as Barclays introduces business-as-usual controls
throughout 2018.
|
Structural reform
●
|
Barclays'
plans for UK ring-fencing remain on track. The relevant court
processes began in November 2017 with the Sanction Hearing to be
held on 26 and 27 February 2018 at which the Court will be
requested to sanction Barclays' ring-fencing transfer scheme. We
intend to complete the reorganisation and establish the UK
ring-fenced bank in April 2018, ahead of the 1 January 2019
legislative deadline for implementation
|
●
|
Barclays
Services Limited (the "Group Service Company") was established in
September 2017 as a direct subsidiary of Barclays PLC to deliver
operational continuity and to drive operational efficiencies across
the Group
|
●
|
Illustrative,
unaudited pro-forma financials for Barclays Bank UK PLC (BBUKPLC)
and BBPLC will be available at
home.barclays/annualreport
|
Dividends
●
|
A final
dividend for 2017 of 2.0p per share will be paid on 5 April 2018,
resulting in a total 3.0p dividend per share for the
year
|
●
|
Barclays
understands the importance of the ordinary dividend for our
shareholders. Barclays is therefore committed to maintaining an
appropriate balance between total cash returns to shareholders,
investment in the business and maintaining a strong capital
position. Going forward, Barclays intends to pay an annual
ordinary dividend that takes into account these objectives and the
medium-term earnings outlook of the Group. It is also the
Board's intention to supplement the ordinary dividends with
additional returns to shareholders as and when
appropriate
|
●
|
For
2018, Barclays anticipates resuming a total cash dividend of 6.5p
per share, subject to regulatory approvals
|
Outlook and financial targets
●
|
The
Group is targeting RoTE, excluding litigation and conduct, of
greater than 9% in 2019 and greater than 10% in 2020, based on a
Group CET1 ratio of c.13%
|
●
|
Guidance
for Group operating expenses, excluding litigation and conduct, is
£13.6-13.9bn in 2019
|
●
|
As part
of the US Tax Cuts and Jobs Act, the US federal corporate income
tax rate has been reduced from 35% to 21% with effect from 1
January 2018. Given the Group's substantial US operations, this is
expected to result in a reduction of the Group's effective tax rate
in 2018 and future periods to mid-20 percent. Some of the
provisions introduced into US tax law by the Act are complex and
present uncertainties, in particular the new US Base Erosion and
Anti-Abuse Tax (BEAT). Our current expectation is that in the event
that BEAT liabilities are incurred by the Group these should not be
sufficiently material to cause the Group's effective tax rate to
exceed mid-20 percent
|
Tushar Morzaria, Group
Finance
Director
Results by Business
Barclays UK
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
6,086
|
6,048
|
1
|
Net fee, commission and other income
|
1,297
|
1,469
|
(12)
|
Total income
|
7,383
|
7,517
|
(2)
|
Credit impairment charges and other provisions
|
(783)
|
(896)
|
13
|
Net operating income
|
6,600
|
6,621
|
-
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(4,030)
|
(3,792)
|
(6)
|
UK bank levy
|
(59)
|
(48)
|
(23)
|
Litigation and conduct
|
(759)
|
(1,042)
|
27
|
Operating expenses
|
(4,848)
|
(4,882)
|
1
|
Other net expenses
|
(5)
|
(1)
|
|
Profit before tax
|
1,747
|
1,738
|
1
|
Attributable profit
|
853
|
828
|
3
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
183.8
|
166.4
|
|
Total assets
|
237.4
|
209.6
|
|
Customer deposits
|
193.4
|
189.0
|
|
Loan: deposit ratio
|
95%
|
88%
|
|
Risk weighted assets
|
70.9
|
67.5
|
|
Period end allocated tangible equity
|
9.6
|
8.5
|
|
|
|
|
|
Key facts
|
|
|
|
Average LTV of mortgage portfolio
1
|
48%
|
48%
|
|
Average LTV of new mortgage lending
1
|
64%
|
63%
|
|
Number of branches
|
1,208
|
1,305
|
|
Mobile banking active customers
|
6.4m
|
5.4m
|
|
30 day arrears rate - Barclaycard Consumer UK
|
1.8%
|
1.9%
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
9.8%
|
9.6%
|
|
Average allocated tangible equity (£bn)
|
9.1
|
8.9
|
|
Cost: income ratio
|
66%
|
65%
|
|
Loan loss rate (bps)
|
42
|
52
|
|
Net interest margin
|
3.49%
|
3.62%
|
|
1
|
Average loan to value (LTV) of mortgage portfolio and new mortgage
lending calculated on the balance weighted basis.
|
Analysis of Barclays UK
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
Personal Banking
|
3,823
|
3,891
|
(2)
|
Barclaycard Consumer UK
|
1,977
|
2,022
|
(2)
|
Wealth, Entrepreneurs & Business Banking
|
1,583
|
1,604
|
(1)
|
Total income
|
7,383
|
7,517
|
(2)
|
|
|
|
|
Analysis of credit impairment charges and other
provisions
|
|
|
|
Personal Banking
|
(222)
|
(183)
|
(21)
|
Barclaycard Consumer UK
|
(541)
|
(683)
|
21
|
Wealth, Entrepreneurs & Business Banking
|
(20)
|
(30)
|
33
|
Total credit impairment charges and other provisions
|
(783)
|
(896)
|
13
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
Personal Banking
|
139.8
|
135.0
|
|
Barclaycard Consumer UK
|
16.4
|
16.5
|
|
Wealth, Entrepreneurs & Business Banking
1
|
27.6
|
14.9
|
|
Total loans and advances to customers at amortised
cost
|
183.8
|
166.4
|
|
|
|
|
|
Analysis of customer deposits
|
|
|
|
Personal Banking
|
141.1
|
139.3
|
|
Barclaycard Consumer UK
|
-
|
-
|
|
Wealth, Entrepreneurs & Business Banking
|
52.3
|
49.7
|
|
Total customer deposits
|
193.4
|
189.0
|
|
1
|
Includes the integration of the ESHLA portfolio at amortised cost
from Barclays Non-Core.
|
2017 compared to 2016
Income statement
●
|
Profit
before tax increased 1% to £1,747m as lower PPI charges of
£700m (2016: £1,000m) and a reduction in credit
impairment charges were partially offset by the non-recurrence of
the gain on disposal of Barclays' share of Visa Europe Limited in
2016, higher costs of setting up the ring-fenced bank and increased
investment, primarily in cyber resilience, digital and
technology
|
●
|
Total
income decreased 2% to £7,383m, of which £151m reflected
the non-recurrence of the gain on disposal of Barclays' share of
Visa Europe Limited in 2016
|
|
-
|
Personal
Banking income decreased 2% to £3,823m driven by the
non-recurrence of the Visa gain and the impact of the UK base rate
reduction in 2016, partially offset by deposit pricing initiatives,
growth in balances and an update to effective interest rate (EIR)
modelling
|
|
-
|
Barclaycard
Consumer UK income decreased 2% to £1,977m reflecting a
provision for remediation in H217
|
|
-
|
Wealth,
Entrepreneurs & Business Banking (WEBB) income decreased 1% to
£1,583m driven by the non-recurrence of the Visa gain,
partially offset by growth in balances
|
|
-
|
Net
interest income increased 1% to £6,086m due to deposit pricing
initiatives and growth in loans and advances to customers and
deposits, partially offset by the impact of the UK base rate
reduction in 2016
|
|
|
-
|
Net
interest margin decreased 13bps to 3.49% reflecting the integration
of the Education, Social Housing and Local Authority (ESHLA)
portfolio from Non-Core on 1 July 2017
|
|
-
|
Net
fee, commission and other income decreased 12% to £1,297m
driven by the non-recurrence of the Visa gain
|
●
|
Credit
impairment charges decreased 13% to £783m principally
reflecting the non-recurrence of a £200m charge in 2016
following the management
review of the
cards portfolio impairment modelling, partially offset by higher
charges in Barclaycard Consumer UK and Personal
Banking
|
●
|
Operating
expenses decreased 1% to £4,848m due to lower charges for PPI
of £700m (2016: £1,000m), partially offset by the costs
of setting up the ring-fenced bank and increased investment,
primarily in cyber resilience, digital and technology. The cost:
income ratio was 66% (2016: 65%)
|
Balance sheet
●
|
Loans
and advances to customers increased 10% to £183.8bn and total
assets increased 13% to £237.4bn, reflecting the integration
of the ESHLA portfolio from Non-Core into WEBB on 1 July 2017 and
mortgage growth in Personal Banking in H217
|
●
|
Customer
deposits increased 2% to £193.4bn due to deposit growth,
partially offset by the realignment of certain clients between
Barclays UK and Barclays International in preparation for
structural reform
|
●
|
RWAs
increased to £70.9bn (December 2016: £67.5bn) reflecting
the integration of the ESHLA portfolio
|
Barclays International
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
4,307
|
4,512
|
(5)
|
Net trading income
|
3,971
|
4,580
|
(13)
|
Net fee, commission and other income
|
6,104
|
5,903
|
3
|
Total income
|
14,382
|
14,995
|
(4)
|
Credit impairment charges and other provisions
|
(1,506)
|
(1,355)
|
(11)
|
Net operating income
|
12,876
|
13,640
|
(6)
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(9,321)
|
(9,129)
|
(2)
|
UK bank levy
|
(265)
|
(284)
|
7
|
Litigation and conduct
|
(269)
|
(48)
|
|
Operating expenses
|
(9,855)
|
(9,461)
|
(4)
|
Other net income
|
254
|
32
|
|
Profit before tax
|
3,275
|
4,211
|
(22)
|
Attributable profit
|
847
|
2,412
|
(65)
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances to banks and customers at amortised
cost
1
|
198.7
|
211.3
|
|
Trading portfolio assets
|
113.0
|
73.2
|
|
Derivative financial instrument assets
|
236.2
|
156.2
|
|
Derivative financial instrument liabilities
|
237.8
|
160.6
|
|
Reverse repurchase agreements and other similar secured
lending
|
12.4
|
13.4
|
|
Financial assets designated at fair value
|
104.1
|
62.3
|
|
Total assets
|
856.1
|
648.5
|
|
Customer deposits
2
|
225.1
|
216.2
|
|
Loan: deposit ratio
3
|
62%
|
78%
|
|
Risk weighted assets
|
210.3
|
212.7
|
|
Period end allocated tangible equity
|
27.5
|
25.6
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
3.4%
|
9.8%
|
|
Average allocated tangible equity (£bn)
|
28.1
|
25.5
|
|
Cost: income ratio
|
69%
|
63%
|
|
Loan loss rate (bps)
|
75
|
63
|
|
Net interest margin
|
4.16%
|
3.98%
|
|
1
|
As at 31 December 2017 loans and advances included £170.4bn
(December 2016: £185.9bn) of loans and advances to customers
(including settlement balances of £15.7bn (December 2016:
£19.5bn) and cash collateral of £35.9bn (December 2016:
£30.1bn)), and £28.3bn (December 2016: £25.4bn) of
loans and advances to banks (including settlement balances of
£2.3bn (December 2016: £1.7bn) and cash collateral of
£18.0bn (December 2016: £6.3bn)). Loans and advances
to banks and customers in respect of Consumer, Cards and Payments
were £38.6bn (December 2016: £39.7bn).
|
2
|
As at 31 December 2017 customer deposits included settlement
balances of £15.2bn (December 2016: £16.6bn) and cash
collateral of £27.3bn (December 2016:
£20.8bn).
|
3
|
Loan: deposit ratio excludes investment banking balances other than
interest earning lending. Comparative has been restated to include
interest earning lending balances within the investment banking
business.
|
Analysis of Barclays International
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
Year ended
|
|
31.12.17
|
31.12.16
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Macro
|
1,634
|
2,304
|
(29)
|
Credit
|
1,241
|
1,185
|
5
|
Equities
|
1,629
|
1,790
|
(9)
|
Markets
|
4,504
|
5,279
|
(15)
|
Banking fees
|
2,612
|
2,397
|
9
|
Corporate lending
|
1,093
|
1,195
|
(9)
|
Transaction banking
|
1,629
|
1,657
|
(2)
|
Banking
|
5,334
|
5,249
|
2
|
Other
|
40
|
5
|
|
Total income
|
9,878
|
10,533
|
(6)
|
Credit impairment charges and other provisions
|
(213)
|
(260)
|
18
|
Operating expenses
|
(7,742)
|
(7,624)
|
(2)
|
Other net income
|
133
|
1
|
|
Profit before tax
|
2,056
|
2,650
|
(22)
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances to banks and customers at amortised
cost
|
160.1
|
171.6
|
|
Customer deposits
|
165.9
|
166.2
|
|
Risk weighted assets
|
176.2
|
178.6
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
1.1%
|
6.1%
|
|
Average allocated tangible equity (£bn)
|
24.0
|
21.9
|
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Total income
|
4,504
|
4,462
|
1
|
Credit impairment charges and other provisions
|
(1,293)
|
(1,095)
|
(18)
|
Operating expenses
|
(2,113)
|
(1,837)
|
(15)
|
Other net income
|
121
|
31
|
|
Profit before tax
|
1,219
|
1,561
|
(22)
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Loans and advances to banks and customers at amortised
cost
|
38.6
|
39.7
|
|
Customer deposits
|
59.2
|
50.0
|
|
Risk weighted assets
|
34.1
|
34.1
|
|
|
|
|
|
Key facts
|
|
|
|
30 day arrears rate - Barclaycard US
|
2.6%
|
2.6%
|
|
Total number of Barclaycard business clients
|
366,000
|
355,000
|
|
Value of payments processed (£bn)
|
322
|
296
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
16.7%
|
31.4%
|
|
Average allocated tangible equity (£bn)
|
4.2
|
3.6
|
|
2017 compared to 2016
Income statement
●
|
Profit
before tax decreased 22% to £3,275m
driven by a 4% decrease in total
income, an 11% increase in credit impairment charges and a 4%
increase in operating expenses
|
●
|
Total
income decreased 4% to £14,382m, including the 5% appreciation
of average USD and the 7% appreciation of average EUR against GBP,
as CIB income decreased 6% to £9,878m, partially offset by a
1% increase in Consumer, Cards and Payments income to
£4,504m
|
|
-
|
Markets
income decreased 15% to £4,504m
|
|
|
-
|
Macro
income decreased 29% to £1,634m driven by lower market
volatility in rates, the exit of the energy-related commodities
business and the integration of Non-Core assets on 1 July
2017
|
|
|
-
|
Credit
income increased 5% to £1,241m due to improved performance in
municipals
|
|
|
-
|
Equities
income decreased 9% to £1,629m driven by US equity derivatives
as a result of lower market volatility, partially offset by
improved performance in equity financing
|
|
-
|
Banking
income increased 2% to £5,334m
|
|
|
-
|
Banking
fee income increased 9% to £2,612m due to higher debt and
equity underwriting fees, with fee share gains in banking overall
and debt underwriting
|
|
|
-
|
Corporate
lending declined 9% to £1,093m driven by lower lending
balances due to the realignment of certain clients between Barclays
UK and Barclays International in preparation for structural reform
and the reallocation of RWAs within CIB, as well as the
non-recurrence of prior year treasury gains and lower work-out
gains
|
|
|
-
|
Transaction
banking declined 2% to £1,629m driven by lower trade balances
and the non-recurrence of prior year treasury gains, partially
offset by higher average deposit balances
|
|
-
|
Consumer,
Cards and Payments income increased 1% to £4,504m driven by
continued business growth, a gain of £192m relating to the
Q117 asset sale in US Cards and a valuation gain on Barclays'
preference shares in Visa Inc. of £74m, partially offset by
the non-recurrence of the £464m gain on the disposal of
Barclays' share of Visa Europe Limited in 2016
|
●
|
Credit
impairment charges increased 11% to £1,506m, including the
appreciation of average USD and EUR against GBP
|
|
-
|
CIB
credit impairment charges decreased 18% to £213m primarily due
to the non-recurrence of oil and gas single name charges in 2016,
offset by a single name charge in 2017
|
|
-
|
Consumer,
Cards and Payments credit impairment charges increased 18% to
£1,293m primarily due to a £168m charge in Q317 relating
to deferred consideration from the Q117 asset sale in US Cards, an
increase in underlying delinquency trends and business growth in US
Cards. This was partially offset by the non-recurrence of a
£120m charge in 2016 following the management review of the
cards portfolio impairment modelling. The 30 and 90 day arrears
rates within US Cards were stable at 2.6% (December 2016: 2.6%) and
1.3% (December 2016: 1.3%) respectively, including a benefit from
the Q117 asset sale in US Cards
|
●
|
Operating
expenses increased 4% to £9,855m, including the appreciation
of average USD and EUR against GBP
|
|
-
|
CIB
operating expenses increased 2% to £7,742m reflecting a
provision of £240m in respect of Foreign Exchange matters
recognised in Q417, continued investment in technology, partially
offset by lower restructuring charges and the reduced impact of the
change in compensation awards introduced in Q416
|
|
-
|
Consumer,
Cards and Payments increased 15% to £2,113m including
continued growth and investment, primarily within the US Cards and
merchant acquiring businesses
|
●
|
Other
net income increased to £254m (2016: £32m) due to a gain
of £109m on the sale of Barclays' share in VocaLink to
MasterCard and a gain of £76m on the sale of a joint venture
in Japan
|
●
|
Attributable
profit reduced to £847m (2016: £2,412m) including the net
tax charge due to the re-measurement of US DTAs in
Q417
|
Balance sheet
●
|
Loans
and advances to banks and customers at amortised cost decreased
£12.6bn to £198.7bn with CIB decreasing £11.5bn to
£160.1bn due to a reduction in lending. Consumer, Cards and
Payments decreased £1.1bn to £38.6bn due to the
depreciation of period end USD against GBP, partially offset by the
realignment of certain clients from Barclays UK to Barclays
International in preparation for structural reform
|
●
|
Trading
portfolio assets increased £39.8bn to £113.0bn due to
increased activity
|
●
|
Derivative
financial instrument assets and liabilities increased £80.0bn
to £236.2bn and £77.2bn to £237.8bn respectively,
reflecting the integration of balances from Non-Core on 1 July
2017, partially offset by adoption of daily settlements under the
Chicago Mercantile Exchange (CME), an increase in major interest
rate forward curves and the depreciation of period end USD against
GBP
|
●
|
Financial
assets designated at fair value increased £41.8bn to
£104.1bn primarily due to increased reverse repurchase
agreements activity
|
●
|
Customer
deposits increased £8.9bn to £225.1bn, with Consumer,
Cards and Payments increasing £9.2bn to £59.2bn driven by
the realignment of certain clients from Barclays UK to Barclays
International in preparation for structural reform
|
●
|
RWAs
decreased £2.4bn to £210.3bn due to the net impact of the
re-measurement of US DTAs and the depreciation of period end USD
against GBP, partially offset by increased trading portfolio and
securities financing transaction volumes
|
Head Office
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
(435)
|
(183)
|
|
Net fee, commission and other income
1
|
276
|
286
|
(3)
|
Total income
|
(159)
|
103
|
|
Credit impairment charges and other provisions
|
(17)
|
-
|
|
Net operating (expenses)/income
|
(176)
|
103
|
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(277)
|
(135)
|
|
UK bank levy
|
(41)
|
(2)
|
|
Litigation and conduct
|
(151)
|
(27)
|
|
Operating expenses
|
(469)
|
(164)
|
|
Other net (expenses)/income
|
(189)
|
128
|
|
(Loss)/profit before tax
|
(834)
|
67
|
|
Attributable (loss)/profit
|
(868)
|
110
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Total assets
|
39.7
|
75.2
|
|
Risk weighted assets
2
|
31.8
|
53.3
|
|
Period end allocated tangible equity
|
10.0
|
9.7
|
|
|
|
|
|
Performance measures
|
|
|
|
Average allocated tangible equity (£bn)
|
9.3
|
6.5
|
|
1
|
Following the early adoption of the own credit provisions of IFRS 9
on 1 January 2017, own credit, which was previously reported in net
fee, commission and other income, is now recognised in other
comprehensive income. The comparative figure for net fee,
commission and other income included own credit.
|
2
|
Includes Africa Banking RWAs of £6.4bn (December 2016:
£42.3bn).
|
2017 compared to 2016
Income statement
●
|
Loss
before tax was £834m (2016: profit of £67m)
|
●
|
Total
income reduced to an expense of £159m (2016: income of
£103m) primarily due to lower net income from treasury
operations
|
●
|
Operating
expenses increased to £469m (2016: £164m) due to costs
associated with Non-Core assets and businesses, which were
integrated on 1 July 2017, and increased litigation and conduct
costs, including a settlement to resolve the civil action brought
by the US Federal Energy Regulatory Commission's Office of
Enforcement and provisions for other legacy redress
|
●
|
Other
net expenses were £189m (2016: income of £128m) driven by
an expense of £180m on the recycling of the currency
translation reserve to the income statement on the sale of Barclays
Bank Egypt. 2016 included a gain due to recycling of the currency
translation reserve on disposal of the Southern European cards
business
|
Balance sheet
●
|
Total
assets decreased to £39.7bn (December 2016: £75.2bn)
primarily due to the accounting deconsolidation of BAGL, which
accounted for £65bn of total assets on deconsolidation from
the Barclays Group. This was partially offset by the integration of
Non-Core assets on 1 July 2017, of which c.£9bn related to
Italian mortgages
|
●
|
RWAs
decreased to £31.8bn (December 2016: £53.3bn) reflecting
a £31.1bn reduction as a result of the proportional
consolidation of BAGL, partially offset by the integration of
Non-Core assets
|
Barclays Non-Core Results
The
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 Group's
results for the year ended 31 December 2017.
Barclays Non-Core
|
Six months ended
|
Year ended
|
|
30.06.17
|
31.12.16
|
Income statement information
|
£m
|
£m
|
Net interest income
|
(112)
|
160
|
Net trading income
|
(488)
|
(1,703)
|
Net fee, commission and other income
|
70
|
379
|
Total income
|
(530)
|
(1,164)
|
Credit impairment charges and other provisions
|
(30)
|
(122)
|
Net operating expenses
|
(560)
|
(1,286)
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(256)
|
(1,509)
|
UK bank levy
|
-
|
(76)
|
Litigation and conduct
|
(28)
|
(246)
|
Operating expenses
|
(284)
|
(1,831)
|
Other net income
|
197
|
331
|
Loss before tax
|
(647)
|
(2,786)
|
Attributable loss
|
(419)
|
(1,916)
|
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
-
|
-
|
(123)
|
11
|
|
(54)
|
78
|
40
|
96
|
Net trading income
|
-
|
-
|
(411)
|
(77)
|
|
(462)
|
(288)
|
(463)
|
(490)
|
Net fee, commission and other income
|
-
|
-
|
78
|
(8)
|
|
97
|
51
|
79
|
152
|
Total income
|
-
|
-
|
(456)
|
(74)
|
|
(419)
|
(159)
|
(344)
|
(242)
|
Credit impairment charges and other provisions
|
-
|
-
|
(27)
|
(3)
|
|
(47)
|
(20)
|
(26)
|
(29)
|
Net operating expenses
|
-
|
-
|
(483)
|
(77)
|
|
(466)
|
(179)
|
(370)
|
(271)
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
-
|
-
|
(108)
|
(148)
|
|
(341)
|
(311)
|
(368)
|
(489)
|
UK bank levy
|
-
|
-
|
-
|
-
|
|
(76)
|
-
|
-
|
-
|
Litigation and conduct
|
-
|
-
|
(19)
|
(9)
|
|
(51)
|
(102)
|
(27)
|
(66)
|
Operating expenses
|
-
|
-
|
(127)
|
(157)
|
|
(468)
|
(413)
|
(395)
|
(555)
|
Other net income/(expenses)
|
-
|
-
|
204
|
(7)
|
|
146
|
498
|
(324)
|
11
|
Loss before tax
|
-
|
-
|
(406)
|
(241)
|
|
(788)
|
(94)
|
(1,089)
|
(815)
|
Tax credit
|
-
|
-
|
207
|
75
|
|
322
|
194
|
229
|
237
|
(Loss)/profit after tax
|
-
|
-
|
(199)
|
(166)
|
|
(466)
|
100
|
(860)
|
(578)
|
Non-controlling interests
|
-
|
-
|
(8)
|
(9)
|
|
(14)
|
(13)
|
(12)
|
(10)
|
Other equity instrument holders
|
-
|
-
|
(19)
|
(18)
|
|
(18)
|
(15)
|
(15)
|
(15)
|
Attributable (loss)/profit
|
-
|
-
|
(226)
|
(193)
|
|
(498)
|
72
|
(887)
|
(603)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to banks and customers at amortised
cost
|
-
|
-
|
48.3
|
49.5
|
|
51.1
|
58.7
|
68.5
|
55.4
|
Derivative financial instrument assets
|
-
|
-
|
150.3
|
164.2
|
|
188.7
|
253.2
|
262.8
|
249.7
|
Derivative financial instrument liabilities
|
-
|
-
|
143.0
|
155.3
|
|
178.6
|
243.0
|
253.4
|
239.1
|
Reverse repurchase agreements and other similar secured
lending
|
-
|
-
|
-
|
-
|
|
0.1
|
0.1
|
0.1
|
0.7
|
Financial assets designated at fair value
|
-
|
-
|
12.1
|
13.4
|
|
14.5
|
15.5
|
15.4
|
23.4
|
Total assets
|
-
|
-
|
233.0
|
249.1
|
|
279.7
|
359.8
|
379.1
|
365.4
|
Customer deposits
|
-
|
-
|
11.8
|
12.9
|
|
12.5
|
16.0
|
17.4
|
19.3
|
Risk weighted assets
|
-
|
-
|
22.8
|
27.4
|
|
32.1
|
43.9
|
46.7
|
50.9
|
Discontinued Operation Results
On 1
March 2016, Barclays announced its intention to reduce the Group's
62.3% interest in BAGL to a level which would permit Barclays to
deconsolidate BAGL from a regulatory perspective and, prior to
that, from an accounting perspective. From this date, BAGL was
treated as a discontinued operation. On 5 May 2016, Barclays sold
12.2% of the Group's interest in BAGL and on 1 June 2017 Barclays
sold a further 33.7% of BAGL's issued share capital, resulting in
the accounting deconsolidation of BAGL from the Barclays Group. At
this time, Barclays' holding in BAGL technically met the
requirements to be treated as an Associate. However, following a
revision of its governance rights in July 2017 and the difference
being immaterial, the holding was treated as an AFS asset from the
transaction date.
In Q317
Barclays contributed 1.5% of BAGL's ordinary shares to a Black
Economic Empowerment scheme, resulting in Barclays accounting for
126 million ordinary shares in BAGL, representing 14.9% of BAGL's
issued share capital. The retained investment is reported as an AFS
asset in the Head Office segment, with Barclays' share of BAGL's
dividend recognised in the Head Office income
statement.
For
regulatory reporting purposes, BAGL is treated on a proportional
consolidated basis based on a holding of 14.9% as at Q417. Subject
to regulatory approval, Barclays expects to fully deconsolidate
BAGL from a regulatory perspective by the end of 2018.
Africa Banking
|
Year ended
|
Year ended
|
31.12.17
1
|
31.12.16
|
Income statement information
|
£m
|
£m
|
Net interest income
|
1,024
|
2,169
|
Net fee, commission and other income
|
762
|
1,577
|
Total income
|
1,786
|
3,746
|
Credit impairment charges and other provisions
|
(177)
|
(445)
|
Net operating income
|
1,609
|
3,301
|
Operating expenses excluding UK bank levy and impairment of
Barclays' holding in BAGL
|
(1,130)
|
(2,345)
|
UK bank levy
|
-
|
(65)
|
Other net income excluding loss on sale of BAGL
|
5
|
6
|
Profit before tax excluding impairment of Barclays' holding in BAGL
and loss on sale of BAGL
|
484
|
897
|
Impairment of Barclays' holding in BAGL
|
(1,090)
|
-
|
Loss on sale of BAGL
|
(1,435)
|
-
|
(Loss)/profit before tax
|
(2,041)
|
897
|
Tax charge
|
(154)
|
(306)
|
(Loss)/profit after tax
|
(2,195)
|
591
|
Attributable (loss)/profit
|
(2,335)
|
189
|
1
|
The Africa Banking income statement represents five months of
results as a discontinued operation to 31 May 2017.
|
|
Q417
|
Q317
|
Q217
1
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
-
|
-
|
407
|
617
|
|
626
|
561
|
502
|
480
|
Net fee, commission and other income
|
-
|
-
|
297
|
465
|
|
441
|
421
|
377
|
338
|
Total income
|
-
|
-
|
704
|
1,082
|
|
1,067
|
982
|
879
|
818
|
Credit impairment charges and other provisions
|
-
|
-
|
(71)
|
(106)
|
|
(105)
|
(96)
|
(133)
|
(111)
|
Net operating income
|
-
|
-
|
633
|
976
|
|
962
|
886
|
746
|
707
|
Operating expenses excluding UK bank levy and impairment of
Barclays' holding in BAGL
|
-
|
-
|
(477)
|
(653)
|
|
(727)
|
(598)
|
(543)
|
(477)
|
UK bank levy
|
-
|
-
|
-
|
-
|
|
(65)
|
-
|
-
|
-
|
Other net income excluding loss on sale of BAGL
|
-
|
-
|
3
|
2
|
|
2
|
2
|
1
|
1
|
Profit before tax excluding impairment of Barclays' holding in BAGL
and loss on sale of BAGL
|
-
|
-
|
159
|
325
|
|
172
|
290
|
204
|
231
|
Impairment of Barclays' holding in BAGL
|
-
|
-
|
(206)
|
(884)
|
|
-
|
-
|
-
|
-
|
Loss on sale of BAGL
|
-
|
-
|
(1,435)
|
-
|
|
-
|
-
|
-
|
-
|
(Loss)/profit before tax
|
-
|
-
|
(1,482)
|
(559)
|
|
172
|
290
|
204
|
231
|
(Loss)/profit after tax
|
-
|
-
|
(1,537)
|
(658)
|
|
71
|
209
|
145
|
166
|
Attributable (loss)/profit
|
-
|
-
|
(1,534)
|
(801)
|
|
(52)
|
85
|
70
|
86
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
-
|
-
|
-
|
66.0
|
|
65.1
|
61.1
|
56.0
|
52.7
|
Risk weighted assets
2
|
-
|
-
|
9.8
|
41.3
|
|
42.3
|
39.9
|
36.1
|
33.9
|
1
|
The Q217 Africa Banking income statement represents two months of
results as a discontinued operation to 31 May 2017.
|
2
|
RWAs at 31 December 2017 of £6.4bn (September 2017:
£8.6bn) are reported in Head Office.
|
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
2,272
|
2,475
|
2,579
|
2,519
|
|
2,523
|
2,796
|
2,530
|
2,688
|
Net fee, commission and other income
|
2,750
|
2,698
|
2,479
|
3,304
|
|
2,469
|
2,650
|
3,442
|
2,353
|
Total income
|
5,022
|
5,173
|
5,058
|
5,823
|
|
4,992
|
5,446
|
5,972
|
5,041
|
Credit impairment charges and other provisions
|
(573)
|
(709)
|
(527)
|
(527)
|
|
(653)
|
(789)
|
(488)
|
(443)
|
Net operating income
|
4,449
|
4,464
|
4,531
|
5,296
|
|
4,339
|
4,657
|
5,484
|
4,598
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(3,621)
|
(3,274)
|
(3,398)
|
(3,591)
|
|
(3,812)
|
(3,581)
|
(3,425)
|
(3,747)
|
UK bank levy
|
(365)
|
-
|
-
|
-
|
|
(410)
|
-
|
-
|
-
|
Litigation and conduct
|
(383)
|
(81)
|
(715)
|
(28)
|
|
(97)
|
(741)
|
(447)
|
(78)
|
Operating expenses
|
(4,369)
|
(3,355)
|
(4,113)
|
(3,619)
|
|
(4,319)
|
(4,322)
|
(3,872)
|
(3,825)
|
Other net income/(expenses)
|
13
|
(2)
|
241
|
5
|
|
310
|
502
|
(342)
|
20
|
Profit before tax
|
93
|
1,107
|
659
|
1,682
|
|
330
|
837
|
1,270
|
793
|
Tax (charge)/credit
|
(1,138)
|
(324)
|
(305)
|
(473)
|
|
50
|
(328)
|
(467)
|
(248)
|
(Loss)/profit after tax in respect of continuing
operations
|
(1,045)
|
783
|
354
|
1,209
|
|
380
|
509
|
803
|
545
|
(Loss)/profit after tax in respect of discontinued
operation
|
-
|
-
|
(1,537)
|
(658)
|
|
71
|
209
|
145
|
166
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Ordinary equity holders of the parent
|
(1,294)
|
583
|
(1,401)
|
190
|
|
99
|
414
|
677
|
433
|
Other equity instrument holders
|
181
|
157
|
162
|
139
|
|
139
|
110
|
104
|
104
|
Non-controlling interests
|
68
|
43
|
56
|
222
|
|
213
|
194
|
167
|
174
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
1,133.2
|
1,149.3
|
1,135.3
|
1,203.8
|
|
1,213.1
|
1,324.0
|
1,351.3
|
1,248.9
|
Risk weighted assets
|
313.0
|
324.3
|
327.4
|
360.9
|
|
365.6
|
373.4
|
366.3
|
363.0
|
CRR leverage exposure
|
1,124.5
|
1,150.6
|
1,122.1
|
1,196.9
|
|
1,125.5
|
1,185.1
|
1,155.4
|
1,082.0
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
(10.3%)
|
5.1%
|
(11.0%)
|
1.8%
|
|
1.1%
|
3.6%
|
5.8%
|
3.8%
|
Average tangible shareholders' equity (£bn)
|
48.1
|
48.9
|
49.3
|
49.4
|
|
48.9
|
49.4
|
48.3
|
48.3
|
Cost: income ratio
|
87%
|
65%
|
81%
|
62%
|
|
87%
|
79%
|
65%
|
76%
|
Loan loss rate (bps)
|
56
|
66
|
49
|
47
|
|
58
|
66
|
41
|
40
|
Basic (loss)/earnings per share
|
(7.3p)
|
3.7p
|
(8.0p)
|
1.3p
|
|
0.8p
|
2.6p
|
4.2p
|
2.7p
|
Basic (loss)/earnings per share in respect of continuing
operations
|
(7.3p)
|
3.7p
|
1.0p
|
6.1p
|
|
1.1p
|
2.1p
|
3.8p
|
2.2p
|
Quarterly Results by Business
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,540
|
1,501
|
1,534
|
1,511
|
|
1,502
|
1,569
|
1,476
|
1,501
|
Net fee, commission and other income
|
330
|
351
|
286
|
330
|
|
326
|
374
|
467
|
302
|
Total income
|
1,870
|
1,852
|
1,820
|
1,841
|
|
1,828
|
1,943
|
1,943
|
1,803
|
Credit impairment charges and other provisions
|
(184)
|
(201)
|
(220)
|
(178)
|
|
(180)
|
(350)
|
(220)
|
(146)
|
Net operating income
|
1,686
|
1,651
|
1,600
|
1,663
|
|
1,648
|
1,593
|
1,723
|
1,657
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(1,117)
|
(980)
|
(974)
|
(959)
|
|
(989)
|
(904)
|
(947)
|
(952)
|
UK bank levy
|
(59)
|
-
|
-
|
-
|
|
(48)
|
-
|
-
|
-
|
Litigation and conduct
|
(53)
|
(11)
|
(699)
|
4
|
|
(28)
|
(614)
|
(399)
|
(1)
|
Operating expenses
|
(1,229)
|
(991)
|
(1,673)
|
(955)
|
|
(1,065)
|
(1,518)
|
(1,346)
|
(953)
|
Other net (expenses)/income
|
(5)
|
1
|
(1)
|
-
|
|
-
|
-
|
(1)
|
-
|
Profit/(loss) before tax
|
452
|
661
|
(74)
|
708
|
|
583
|
75
|
376
|
704
|
Attributable profit/(loss)
|
245
|
423
|
(285)
|
470
|
|
383
|
(163)
|
141
|
467
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
183.8
|
182.2
|
166.6
|
164.5
|
|
166.4
|
166.6
|
166.0
|
166.2
|
Total assets
|
237.4
|
230.4
|
203.4
|
203.0
|
|
209.6
|
209.1
|
204.6
|
201.7
|
Customer deposits
|
193.4
|
189.3
|
187.4
|
184.4
|
|
189.0
|
185.5
|
181.7
|
179.1
|
Risk weighted assets
|
70.9
|
70.0
|
66.1
|
66.3
|
|
67.5
|
67.4
|
67.1
|
69.7
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.7%
|
18.4%
|
(12.7%)
|
21.6%
|
|
18.2%
|
(7.1%)
|
6.6%
|
20.5%
|
Average allocated tangible equity (£bn)
|
9.6
|
9.4
|
8.7
|
8.9
|
|
8.6
|
8.7
|
9.0
|
9.3
|
Cost: income ratio
|
66%
|
54%
|
92%
|
52%
|
|
58%
|
78%
|
69%
|
53%
|
Loan loss rate (bps)
|
39
|
43
|
52
|
43
|
|
42
|
82
|
52
|
34
|
Net interest margin
|
3.32%
|
3.28%
|
3.70%
|
3.69%
|
|
3.56%
|
3.72%
|
3.56%
|
3.62%
|
Analysis of Barclays UK
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal Banking
|
1,020
|
926
|
933
|
944
|
|
934
|
970
|
1,068
|
919
|
Barclaycard Consumer UK
|
445
|
539
|
495
|
498
|
|
507
|
561
|
463
|
491
|
Wealth, Entrepreneurs & Business Banking
|
405
|
387
|
392
|
399
|
|
387
|
412
|
412
|
393
|
Total income
|
1,870
|
1,852
|
1,820
|
1,841
|
|
1,828
|
1,943
|
1,943
|
1,803
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases and other
provisions
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(56)
|
(60)
|
(56)
|
(50)
|
|
(50)
|
(47)
|
(44)
|
(42)
|
Barclaycard Consumer UK
|
(124)
|
(145)
|
(149)
|
(123)
|
|
(118)
|
(291)
|
(169)
|
(105)
|
Wealth, Entrepreneurs & Business Banking
|
(4)
|
4
|
(15)
|
(5)
|
|
(12)
|
(12)
|
(7)
|
1
|
Total credit impairment charges and other provisions
|
(184)
|
(201)
|
(220)
|
(178)
|
|
(180)
|
(350)
|
(220)
|
(146)
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
139.8
|
138.4
|
136.5
|
134.4
|
|
135.0
|
135.3
|
134.7
|
134.7
|
Barclaycard Consumer UK
|
16.4
|
16.3
|
16.2
|
16.1
|
|
16.5
|
16.2
|
16.2
|
16.0
|
Wealth, Entrepreneurs & Business Banking
|
27.6
|
27.5
|
13.9
|
14.0
|
|
14.9
|
15.1
|
15.1
|
15.5
|
Total loans and advances to customers at amortised
cost
|
183.8
|
182.2
|
166.6
|
164.5
|
|
166.4
|
166.6
|
166.0
|
166.2
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
141.1
|
140.1
|
138.5
|
137.3
|
|
139.3
|
137.2
|
134.8
|
132.9
|
Barclaycard Consumer UK
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
Wealth, Entrepreneurs & Business Banking
|
52.3
|
49.2
|
48.9
|
47.1
|
|
49.7
|
48.3
|
46.9
|
46.2
|
Total customer deposits
|
193.4
|
189.3
|
187.4
|
184.4
|
|
189.0
|
185.5
|
181.7
|
179.1
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
987
|
1,148
|
1,060
|
1,112
|
|
1,046
|
1,355
|
1,001
|
1,110
|
Net trading income
|
935
|
815
|
1,039
|
1,182
|
|
1,131
|
1,074
|
1,130
|
1,245
|
Net fee, commission and other income
|
1,397
|
1,352
|
1,511
|
1,844
|
|
1,415
|
1,422
|
1,908
|
1,158
|
Total income
|
3,319
|
3,315
|
3,610
|
4,138
|
|
3,592
|
3,851
|
4,039
|
3,513
|
Credit impairment charges and other provisions
|
(386)
|
(495)
|
(279)
|
(346)
|
|
(426)
|
(420)
|
(240)
|
(269)
|
Net operating income
|
2,933
|
2,820
|
3,331
|
3,792
|
|
3,166
|
3,431
|
3,799
|
3,244
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(2,428)
|
(2,182)
|
(2,276)
|
(2,435)
|
|
(2,497)
|
(2,337)
|
(2,074)
|
(2,221)
|
UK bank levy
|
(265)
|
-
|
-
|
-
|
|
(284)
|
-
|
-
|
-
|
Litigation and conduct
|
(255)
|
(5)
|
4
|
(13)
|
|
(17)
|
(17)
|
(10)
|
(4)
|
Operating expenses
|
(2,948)
|
(2,187)
|
(2,272)
|
(2,448)
|
|
(2,798)
|
(2,354)
|
(2,084)
|
(2,225)
|
Other net income
|
21
|
19
|
202
|
12
|
|
5
|
8
|
11
|
8
|
Profit before tax
|
6
|
652
|
1,261
|
1,356
|
|
373
|
1,085
|
1,726
|
1,027
|
Attributable (loss)/profit
|
(1,168)
|
359
|
819
|
837
|
|
43
|
623
|
1,171
|
575
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to banks and customers at amortised
cost
|
198.7
|
220.7
|
204.8
|
226.1
|
|
211.3
|
233.7
|
230.6
|
215.9
|
Trading portfolio assets
|
113.0
|
91.2
|
83.3
|
83.0
|
|
73.2
|
73.8
|
68.1
|
64.3
|
Derivative financial instrument assets
|
236.2
|
242.8
|
108.4
|
105.3
|
|
156.2
|
155.6
|
181.4
|
150.1
|
Derivative financial instrument liabilities
|
237.8
|
242.9
|
116.8
|
112.8
|
|
160.6
|
160.5
|
187.5
|
155.4
|
Reverse repurchase agreements and other similar secured
lending
|
12.4
|
15.5
|
17.2
|
17.6
|
|
13.4
|
17.3
|
19.7
|
19.1
|
Financial assets designated at fair value
|
104.1
|
103.7
|
94.1
|
81.3
|
|
62.3
|
72.0
|
68.3
|
59.6
|
Total assets
|
856.1
|
867.1
|
681.6
|
677.2
|
|
648.5
|
681.9
|
679.9
|
618.4
|
Customer deposits
|
225.1
|
241.0
|
230.3
|
241.0
|
|
216.2
|
224.1
|
226.5
|
213.1
|
Risk weighted assets
|
210.3
|
218.2
|
212.2
|
214.3
|
|
212.7
|
214.6
|
209.3
|
202.2
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(15.9%)
|
5.4%
|
12.4%
|
12.5%
|
|
1.0%
|
10.0%
|
19.2%
|
9.5%
|
Average allocated tangible equity (£bn)
|
28.5
|
28.9
|
27.4
|
27.7
|
|
26.6
|
25.7
|
24.8
|
25.1
|
Cost: income ratio
|
89%
|
66%
|
63%
|
59%
|
|
78%
|
61%
|
52%
|
63%
|
Loan loss rate (bps)
|
76
|
88
|
54
|
62
|
|
78
|
71
|
41
|
50
|
Net interest margin
|
4.31%
|
4.21%
|
4.07%
|
4.06%
|
|
3.91%
|
4.21%
|
3.92%
|
3.78%
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Macro
|
320
|
368
|
456
|
490
|
|
505
|
614
|
612
|
573
|
Credit
|
287
|
259
|
296
|
399
|
|
261
|
333
|
269
|
322
|
Equities
|
362
|
350
|
455
|
462
|
|
410
|
461
|
406
|
513
|
Markets
|
969
|
977
|
1,207
|
1,351
|
|
1,176
|
1,408
|
1,287
|
1,408
|
Banking fees
|
605
|
607
|
674
|
726
|
|
650
|
644
|
622
|
481
|
Corporate lending
|
269
|
277
|
278
|
269
|
|
303
|
284
|
312
|
296
|
Transaction banking
|
408
|
419
|
404
|
398
|
|
401
|
458
|
390
|
408
|
Banking
|
1,282
|
1,303
|
1,356
|
1,393
|
|
1,354
|
1,386
|
1,324
|
1,185
|
Other
|
1
|
-
|
1
|
38
|
|
1
|
1
|
-
|
3
|
Total income
|
2,252
|
2,280
|
2,564
|
2,782
|
|
2,531
|
2,795
|
2,611
|
2,596
|
Credit impairment (charges)/releases and other
provisions
|
(127)
|
(36)
|
1
|
(51)
|
|
(90)
|
(38)
|
(37)
|
(95)
|
Operating expenses
|
(2,384)
|
(1,661)
|
(1,756)
|
(1,941)
|
|
(2,287)
|
(1,872)
|
(1,665)
|
(1,800)
|
Other net income
|
7
|
10
|
116
|
-
|
|
1
|
-
|
-
|
-
|
(Loss)/profit before tax
|
(252)
|
593
|
925
|
790
|
|
155
|
885
|
909
|
701
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to banks and customers at amortised
cost
|
160.1
|
181.7
|
166.3
|
187.4
|
|
171.6
|
196.9
|
195.2
|
183.0
|
Customer deposits
|
165.9
|
182.7
|
173.0
|
183.4
|
|
166.2
|
175.8
|
179.6
|
168.9
|
Risk weighted assets
|
176.2
|
185.2
|
178.9
|
180.6
|
|
178.6
|
182.5
|
178.4
|
172.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(20.2%)
|
5.9%
|
11.1%
|
8.2%
|
|
(1.2%)
|
9.2%
|
9.5%
|
7.3%
|
Average allocated tangible equity (£bn)
|
24.3
|
24.8
|
23.3
|
23.5
|
|
22.6
|
21.9
|
21.3
|
21.6
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Total income
|
1,067
|
1,035
|
1,046
|
1,356
|
|
1,061
|
1,056
|
1,428
|
917
|
Credit impairment charges and other provisions
|
(259)
|
(459)
|
(280)
|
(295)
|
|
(336)
|
(382)
|
(203)
|
(174)
|
Operating expenses
|
(564)
|
(526)
|
(516)
|
(507)
|
|
(511)
|
(482)
|
(419)
|
(425)
|
Other net income
|
14
|
9
|
86
|
12
|
|
4
|
8
|
11
|
8
|
Profit before tax
|
258
|
59
|
336
|
566
|
|
218
|
200
|
817
|
326
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to banks and customers at amortised
cost
|
38.6
|
39.0
|
38.5
|
38.7
|
|
39.7
|
36.8
|
35.4
|
32.9
|
Customer deposits
|
59.2
|
58.3
|
57.3
|
57.6
|
|
50.0
|
48.3
|
46.9
|
44.2
|
Risk weighted assets
|
34.1
|
33.0
|
33.3
|
33.7
|
|
34.1
|
32.1
|
30.9
|
29.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
8.9%
|
2.2%
|
19.4%
|
36.4%
|
|
13.2%
|
14.8%
|
77.9%
|
23.4%
|
Average allocated tangible equity (£bn)
|
4.2
|
4.2
|
4.1
|
4.2
|
|
4.0
|
3.7
|
3.5
|
3.4
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
Q417
|
Q317
|
Q217
|
Q117
|
|
Q416
|
Q316
|
Q216
|
Q116
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
(254)
|
(174)
|
108
|
(115)
|
|
29
|
(206)
|
14
|
(20)
|
Net fee, commission and other income
1
|
87
|
180
|
(24)
|
33
|
|
(38)
|
17
|
320
|
(13)
|
Total income
|
(167)
|
6
|
84
|
(82)
|
|
(9)
|
(189)
|
334
|
(33)
|
Credit impairment (charges)/releases and other
provisions
|
(3)
|
(13)
|
(1)
|
-
|
|
-
|
1
|
(2)
|
1
|
Net operating (expenses)/income
|
(170)
|
(7)
|
83
|
(82)
|
|
(9)
|
(188)
|
332
|
(32)
|
Operating expenses excluding UK bank levy and litigation and
conduct
|
(76)
|
(112)
|
(40)
|
(49)
|
|
15
|
(29)
|
(36)
|
(85)
|
UK bank levy
|
(41)
|
-
|
-
|
-
|
|
(2)
|
-
|
-
|
-
|
Litigation and conduct
|
(75)
|
(65)
|
(1)
|
(10)
|
|
(1)
|
(8)
|
(11)
|
(7)
|
Operating expenses
|
(192)
|
(177)
|
(41)
|
(59)
|
|
12
|
(37)
|
(47)
|
(92)
|
Other net (expenses)/income
|
(3)
|
(22)
|
(164)
|
-
|
|
159
|
(4)
|
(28)
|
1
|
(Loss)/profit before tax
|
(365)
|
(206)
|
(122)
|
(141)
|
|
162
|
(229)
|
257
|
(123)
|
Attributable (loss)/profit
|
(371)
|
(199)
|
(175)
|
(123)
|
|
223
|
(203)
|
182
|
(92)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
39.7
|
51.7
|
17.3
|
74.5
|
|
75.2
|
73.3
|
87.7
|
63.4
|
Risk weighted assets
2
|
31.8
|
36.1
|
26.2
|
52.9
|
|
53.3
|
47.5
|
43.2
|
40.3
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
10.0
|
10.5
|
8.8
|
7.6
|
|
7.2
|
7.4
|
6.6
|
5.0
|
1
|
Following the early adoption of the own credit provisions of IFRS 9
on 1 January 2017, own credit, which was previously reported in net
fee, commission and other income, is now recognised in other
comprehensive income from Q117.
|
2
|
Includes Africa Banking RWAs.
|
Performance Management
Margins and balances
|
|
|
|
|
|
|
|
Year ended 31.12.17
|
Year ended 31.12.16
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
6,086
|
174,484
|
3.49
|
6,048
|
167,233
|
3.62
|
Barclays International
1
|
4,326
|
104,039
|
4.16
|
4,275
|
107,333
|
3.98
|
Total Barclays UK and Barclays International
|
10,412
|
278,523
|
3.74
|
10,323
|
274,566
|
3.76
|
Other
2
|
(567)
|
|
|
214
|
|
|
Total net interest income
|
9,845
|
|
|
10,537
|
|
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
2
|
Other includes Head Office and non-lending related investment
banking balances. Barclays Non-Core is included for the full
comparative period and the first six months of the current
period.
|
Total
Barclays UK and Barclays International net interest
income increased 1% to £10.4bn due to an increase in
average customer assets to £278.5bn (2016: £274.6bn) with
growth in Barclays UK partially offset by a reduction in Barclays
International.
Net
interest margin decreased 2bps to 3.74% primarily reflecting the
integration of ESHLA loans from Non-Core on 1 July 2017 into
Barclays UK, partially offset by broadly stable net interest income
in Barclays International, despite reducing average customer
assets. Group net interest income decreased to £9.8bn (2016:
£10.5bn) including net structural hedge contributions of
£1.3bn (2016: £1.5bn).
Net
interest margin by business reflects movements in the Group's
internal funding rates which are based on the cost to the Group of
alternative funding in wholesale markets. The internal funding rate
prices intra-group funding and liquidity to appropriately give
credit to businesses with net surplus liquidity and to charge those
businesses in need of alternative funding at a rate that is driven
by prevailing market rates and includes a term
premium.
Quarterly analysis for Barclays UK and Barclays
International
|
|
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Three months ended 31.12.17
|
£m
|
£m
|
%
|
Barclays UK
|
1,540
|
184,058
|
3.32
|
Barclays International
1
|
1,071
|
98,500
|
4.31
|
Total Barclays UK and Barclays International
|
2,611
|
282,558
|
3.67
|
|
|
|
|
Three months ended 30.09.17
|
|
|
|
Barclays UK
|
1,501
|
181,419
|
3.28
|
Barclays International
1
|
1,070
|
100,828
|
4.21
|
Total Barclays UK and Barclays International
|
2,571
|
282,247
|
3.61
|
|
|
|
|
Three months ended 30.06.17
|
|
|
|
Barclays UK
|
1,534
|
166,345
|
3.70
|
Barclays International
1
|
1,064
|
104,899
|
4.07
|
Total Barclays UK and Barclays International
|
2,598
|
271,244
|
3.84
|
|
|
|
|
Three months ended 31.03.17
|
|
|
|
Barclays UK
|
1,511
|
166,065
|
3.69
|
Barclays International
1
|
1,121
|
112,060
|
4.06
|
Total Barclays UK and Barclays International
|
2,632
|
278,125
|
3.84
|
|
|
|
|
Three months ended 31.12.16
|
|
|
|
Barclays UK
|
1,502
|
167,935
|
3.56
|
Barclays International
1
|
1,110
|
112,936
|
3.91
|
Total Barclays UK and Barclays International
|
2,612
|
280,871
|
3.70
|
1
|
Barclays International margins include interest earning lending
balances within the investment banking business.
|
Remuneration
Deferred
bonuses are payable only once an employee meets certain conditions,
including a specified period of service. This creates a timing
difference between the communication of the bonus pool and the
charges that are recognised in the income statement which are
reconciled in the table below to show the charge for performance
costs. In 2016, there was a change in the proportion of bonuses
which were deferred, to harmonise deferral structures across the
Group, and amendments to the deferred bonuses, which accelerated
the rate at which these are charged in the income statement, as
illustrated on page 24. The combined effect of these changes was to
increase the charge for 2016 by £395m, with lesser effects in
2017 and 2018. The changes were designed to more closely align the
incentive awards granted with the income statement
charge. Refer to the Remuneration Report on pages 93-116 of
the Annual Report for further detail on remuneration. The
table below includes the other elements of compensation and staff
costs.
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
|
£m
|
£m
|
% Change
|
Incentive awards granted:
|
|
|
|
Current year bonus
|
990
|
1,018
|
3
|
Deferred bonus
|
442
|
441
|
-
|
Commissions and other incentives
1
|
74
|
74
|
-
|
Total incentive awards granted
|
1,506
|
1,533
|
2
|
|
|
|
|
Reconciliation of incentive awards granted to income
statement
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(302)
|
(300)
|
(1)
|
Add: current year charges for deferred bonuses from previous
years
|
457
|
690
|
34
|
Other differences between incentive awards granted and
income
|
29
|
(26)
|
|
Income statement charge for performance costs
|
1,690
|
1,897
|
11
|
|
|
|
|
Other income statement charges:
|
|
|
|
Salaries
|
3,982
|
4,121
|
3
|
Social security costs
|
580
|
589
|
2
|
Post-retirement benefits
|
493
|
486
|
(2)
|
Other compensation costs
|
378
|
352
|
(7)
|
Total compensation
costs
2
|
7,123
|
7,445
|
4
|
|
|
|
|
Other resourcing costs
3
|
1,437
|
1,978
|
27
|
|
|
|
|
Total staff costs
|
8,560
|
9,423
|
9
|
|
|
|
|
Group compensation as % of total
income
4
|
33.8
|
34.7
|
|
1
|
Represents the difference between incentive awards granted and the
income statement charge for commissions, commitments and other
long-term incentives.
|
2
|
In addition, Group compensation of £312m (2016: £212m)
was capitalised as internally generated software.
|
3
|
Other resourcing costs include outsourcing, redundancy and
restructuring costs, and other temporary staff costs.
|
4
|
Within the Corporate and Investment Bank, front office compensation
as a percentage of total income was 25.5% (2016:
26.0%).
|
Deferred
bonuses have been awarded and are expected to be charged to the
income statement in the years outlined in the table that
follows:
Year in which income statement charge
is expected to be taken for deferred bonuses awarded to
date
1
|
|
Actual
|
|
Expected
2
|
|
Year ended
|
Year ended
|
|
Year ended
|
2019 and
|
|
31.12.16
|
31.12.17
|
|
31.12.18
|
beyond
|
Barclays Group
|
£m
|
£m
|
|
£m
|
£m
|
Deferred bonuses from 2014 and earlier bonus pools
|
301
|
96
|
|
12
|
-
|
Deferred bonuses from 2015 bonus pool
|
389
|
202
|
|
81
|
12
|
Deferred bonuses from 2016 bonus pool
|
141
|
159
|
|
86
|
56
|
Deferred bonuses from 2017 bonus pool
|
-
|
140
|
|
124
|
120
|
Income statement charge for deferred bonuses
|
831
|
597
|
|
303
|
188
|
1
|
The actual amount charged depends upon whether conditions have been
met and will vary compared with the above
expectation.
|
2
|
Does not include the impact of grants which will be made in 2018
and beyond.
|
Charging of deferred bonus profile
|
|
|
|
|
|
|
|
|
Income statement
charge profile
2
|
Grant date
|
Expected payment
date(s)
1
|
Year
|
Post-2016 awards
|
Pre-2016 awards
|
March 2018
|
|
2017
|
33%
|
0%
|
|
|
2018
|
33%
|
48%
|
|
March 2019 (33.3%)
|
2019
|
22%
|
35%
|
|
March 2020 (33.3%)
|
2020
|
10%
|
15%
|
|
March 2021 (33.3%)
|
2021
|
2%
|
2%
|
1
|
Share awards may be subject to an additional holding
period.
|
2
|
The income statement charge is based on the period over which
conditions are met.
|
Risk Management
Risk management and principal risks
The roles and responsibilities of the business groups, Risk and
Compliance, in the management of risk in the firm are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the firm, the
process by which the firm sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking. The framework identifies eight principal
risks: Credit Risk; Market Risk; Treasury and Capital Risk;
Operational Risk; Conduct Risk; Reputation Risk; Model Risk; and
Legal Risk. Further detail on these risks and how they are managed
is available in the 2017 Annual Report or online at:
home.barclays/annualreport.
The following section gives an overview of Credit Risk and Treasury
and Capital Risk for the period.
Credit Risk
Analysis of retail and wholesale loans and advances and
impairment
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loans and advances
|
Impairment allowance
|
Loans and advances net of
impairment
|
Credit
risk loans (CRL)
|
CRLs % of gross loans and advances
|
Loan impairment
charges
1
|
Loan loss rate
|
As at 31.12.17
|
£m
|
£m
|
£m
|
£m
|
%
|
£m
|
bps
|
Barclays UK
|
159,397
|
1,649
|
157,748
|
1,950
|
1.2
|
764
|
48
|
Barclays International
|
30,775
|
1,542
|
29,233
|
1,275
|
4.1
|
1,285
|
418
|
Head Office
|
9,333
|
296
|
9,037
|
710
|
7.6
|
16
|
17
|
Barclays Non-Core
2
|
-
|
-
|
-
|
-
|
-
|
30
|
n/a
|
Total Group retail
|
199,505
|
3,487
|
196,018
|
3,935
|
2.0
|
2,095
|
105
|
|
|
|
|
|
|
|
|
Barclays UK
|
28,960
|
190
|
28,770
|
432
|
1.5
|
19
|
7
|
Barclays International
|
170,299
|
862
|
169,437
|
1,421
|
0.8
|
219
|
13
|
Head Office
|
7,103
|
113
|
6,990
|
206
|
2.9
|
1
|
1
|
Barclays Non-Core
2
|
-
|
-
|
-
|
-
|
-
|
(1)
|
n/a
|
Total Group wholesale
|
206,362
|
1,165
|
205,197
|
2,059
|
1.0
|
238
|
12
|
|
|
|
|
|
|
|
|
Group total
|
405,867
|
4,652
|
401,215
|
5,994
|
1.5
|
2,333
|
57
|
|
|
|
|
|
|
|
|
Traded loans
|
3,140
|
n/a
|
3,140
|
n/a
|
|
|
|
Loans and advances designated at fair value
|
11,037
|
n/a
|
11,037
|
n/a
|
|
|
|
Loans and advances held at fair value
|
14,177
|
n/a
|
14,177
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and advances
|
420,044
|
4,652
|
415,392
|
5,994
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.16
|
|
|
|
|
|
|
|
Barclays UK
|
155,729
|
1,519
|
154,210
|
2,044
|
1.3
|
866
|
56
|
Barclays International
|
33,485
|
1,492
|
31,993
|
1,249
|
3.7
|
1,085
|
324
|
Barclays Non-Core
|
10,319
|
385
|
9,934
|
838
|
8.1
|
102
|
99
|
Total Group retail
|
199,533
|
3,396
|
196,137
|
4,131
|
2.1
|
2,053
|
103
|
|
|
|
|
|
|
|
|
Barclays UK
|
15,204
|
282
|
14,922
|
591
|
3.9
|
30
|
20
|
Barclays International
|
180,102
|
748
|
179,354
|
1,470
|
0.8
|
258
|
14
|
Head Office
|
4,410
|
-
|
4,410
|
-
|
-
|
-
|
-
|
Barclays Non-Core
|
41,406
|
194
|
41,212
|
299
|
0.7
|
11
|
3
|
Total Group wholesale
|
241,122
|
1,224
|
239,898
|
2,360
|
1.0
|
299
|
12
|
|
|
|
|
|
|
|
|
Group total
|
440,655
|
4,620
|
436,035
|
6,491
|
1.5
|
2,352
|
53
|
|
|
|
|
|
|
|
|
Traded loans
|
2,975
|
n/a
|
2,975
|
n/a
|
|
|
|
Loans and advances designated at fair value
|
10,519
|
n/a
|
10,519
|
n/a
|
|
|
|
Loans and advances held at fair value
|
13,494
|
n/a
|
13,494
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and advances
|
454,149
|
4,620
|
449,529
|
6,491
|
|
|
|
1
|
Excludes impairment charges on available for sale investments and
reverse repurchase agreements.
|
2
|
Barclays Non-Core represents charges for the six months ended 30
June 2017, primarily relating to Italian mortgages transferred into
Head Office on 1 July 2017.
|
Total
loans and advances decreased £34.1bn to £415.4bn,
including a £12.7bn decrease in net settlements and cash
collateral and a £21.4bn decrease in other lending, primarily
in Barclays International.
Credit
risk loans (CRL) decreased to £6.0bn (December 2016:
£6.5bn) and the ratio of CRLs to gross loans and advances
remained stable at 1.5% (December 2016: 1.5%). Loan impairment
charges decreased £19m to £2,333m. Overall, this resulted
in a 4bps increase in the loan loss rate to 57bps.
Analysis of specific portfolios and asset types
This
section provides an analysis of principal portfolios and businesses
in the retail and wholesale segments. In particular, home loans,
credit cards, overdrafts and unsecured loans are covered for retail
segments.
Secured home loans
The UK
home loans portfolio comprises first lien home loans and accounts
for 90% (December 2016: 89%) of the Group's total home loans
balance.
Home loans principal portfolios
|
|
|
|
Barclays UK
|
|
As at
31.12.17
|
As at
31.12.16
|
Gross loans and advances (£m)
|
132,132
|
129,136
|
90 day arrears rate, excluding recovery book (%)
|
0.1
|
0.2
|
Non-performing proportion of outstanding balances (%)
|
0.4
|
0.6
|
Annualised gross charge-off rate (%)
|
0.2
|
0.3
|
Recovery book proportion of outstanding balances (%)
|
0.3
|
0.4
|
Recovery book impairment coverage ratio (%)
|
11.2
|
9.1
|
|
|
|
Average LTV on home loans: balance weighted (%)
|
47.6
|
47.7
|
Average LTV on home loans: valuation weighted (%)
|
35.2
|
35.6
|
|
|
|
Average LTV on new mortgages: balance weighted (%)
|
63.8
|
63.4
|
Average LTV on new mortgages: valuation weighted (%)
|
56.0
|
54.4
|
Portfolio
performance remained steady reflecting the continuing low base rate
environment and stable economic conditions. The non-performing
proportion of outstanding balances decreased due to improved
performance and a reduction in repossession stock. The recovery
book impairment coverage ratio increased driven by a reduction in
the number of customers entering recoveries, reflecting lower
entries into collections and better customer payment rates from
those in collections.
Within
the UK home loans portfolio:
●
|
owner-occupied
interest-only home loans comprised 28% (December 2016: 31%) of
total balances. The decrease was driven by a greater attrition rate
compared to new business flow. The average balance weighted LTV on
these loans reduced to 39.7% (December 2016: 41.7%), primarily
driven by increases in the house price index across core regions,
while the 90 day arrears rate excluding the recovery book remained
steady at 0.3% (December 2016: 0.2%)
|
●
|
buy-to-let
home loans comprised 11% (December 2016: 9%) of total balances. The
average balance weighted LTV increased to 53.7% (December 2016:
52.6%), and the 90 day arrears rate excluding recovery book
remained steady at 0.1% (December 2016: 0.1%)
|
Italian
home loans of £9.2bn (December 2016: £10.0bn) are secured
on residential property with an average balance weighted marked to
market LTV of 61.0% (December 2016: 61.8%) and CRL coverage of 41%
(December 2016: 36%). 90 day arrears and gross charge-off rates
remained stable at 1.4% (December 2016: 1.2%) and 0.8% (December
2016: 0.8%) respectively, while the CRL book coverage ratio
increased due to an update in the collateral valuation for accounts
in the recovery book.
Credit cards, unsecured loans and other retail lending
The principal portfolios listed below accounted for 87% (December
2016: 88%) of the Group's total credit
cards, unsecured loans and other retail lending.
Credit cards, unsecured loans and other retail lending principal
portfolios
|
|
Gross loans and
advances
1
|
30 day arrears rate, excluding recovery book
|
90 day arrears rate, excluding recovery book
|
Annualised gross charge-off rate
|
Recovery book proportion of outstanding balances
|
Recovery book impairment coverage ratio
|
As at 31.12.17
|
£m
|
%
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
|
UK cards
2
|
17,686
|
1.8
|
0.8
|
5.0
|
3.4
|
80.5
|
UK personal loans
|
6,255
|
2.5
|
1.2
|
3.3
|
4.7
|
77.2
|
Barclays International
|
|
|
|
|
|
|
US cards
2
|
21,350
|
2.6
|
1.3
|
5.0
|
2.8
|
82.9
|
Barclays Partner Finance
|
3,814
|
1.3
|
0.5
|
2.6
|
2.4
|
78.1
|
Germany cards
|
1,976
|
2.5
|
1.0
|
3.8
|
2.7
|
78.0
|
|
|
|
|
|
|
|
As at 31.12.16
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
2
|
17,833
|
1.9
|
0.9
|
5.5
|
3.0
|
83.8
|
UK personal loans
|
6,076
|
2.1
|
0.9
|
3.1
|
4.7
|
77.2
|
Barclays International
|
|
|
|
|
|
|
US cards
2
|
23,915
|
2.6
|
1.3
|
4.5
|
2.4
|
83.6
|
Barclays Partner Finance
|
4,041
|
1.5
|
0.6
|
2.5
|
2.6
|
81.5
|
Germany cards
|
1,812
|
2.6
|
1.0
|
3.7
|
2.7
|
79.0
|
1
|
Gross loans and advances includes loans and advances to banks and
customers. Risk metrics are based on exposures to
customers.
|
2
|
For UK and US cards, outstanding recovery book balances for
acquired portfolios recognised at fair value (which have no related
impairment allowance) have been excluded from the recovery book
impairment coverage ratio. Losses have been recognised where
related to additional spend from acquired accounts in the period
post-acquisition.
|
UK cards
: The annualised gross charge-off rate, which was
higher in 2016 due to accelerated asset sales, normalised in 2017
to 5.0% (2016: 5.5%) and was in line with expectations. The
recovery book proportion of outstanding balances increased
reflecting accelerated charge-off of non-compliant forbearance
plans. However, the recovery book impairment coverage ratio
decreased, reflecting the one-time debt sale impact of accounts
with lower recovery expectations.
UK personal loans
: The 30 day arrears rate increased to 2.5%
(December 2016: 2.1%) and the 90 day arrears rate increased to 1.2%
(December 2016: 0.9%) reflecting increased flow into delinquency
from 2016 bookings due to higher incidences of fraud and poorer
performance in customers with multiple loans, coupled with a weaker
performance in collections operations. Both the recovery book
proportion of outstanding balances ratio of 4.7% (December 2016:
4.7%) and the recovery book impairment coverage ratio of 77.2%
(December 2016: 77.2%) remained stable.
US cards
: The annualised gross charge-off rate increased to
5.0% (December 2016: 4.5%) broadly in line with trends across the
industry and also reflecting a one-off asset sale contributing to a
reduction in outstanding balances. As a result, recovery as a
proportion of total outstanding balances increased to 2.8%
(December 2016: 2.4%).
Barclays Partner Finance
: Portfolio arrears and the
annualised gross charge-off rates remained broadly stable during
2017.
Germany cards
: 90 day arrears and the annualised gross
charge-off rates remained stable, while the recovery book coverage
ratio improved reflecting better recoveries. In addition, Germany
consumer loan balances increased to £1.4bn (December 2016:
£1.2bn).
Treasury and Capital Risk
The
Group has a comprehensive Key Risk Control Framework for managing
the Group's liquidity risk. The Liquidity Framework meets the
Prudential Regulation Authority's (PRA) standards and is designed
to maintain that the Group has liquidity resources that are
sufficient in amount and quality, and a funding profile that is
appropriate to meet the liquidity risk appetite (LRA). The
Liquidity Framework is delivered via a combination of policy
formation, review and governance, analysis, stress testing, limit
setting and monitoring.
Liquidity risk stress testing
As at
31 December 2017, the Group held eligible liquid assets well in
excess of 100% of net stress outflows for both the 30 day combined
market-wide and Barclays specific LRA scenario, and the LCR. During
the year, the combined LRA scenario has been enhanced and improved
to capture a Barclays specific stress coinciding with a market
stress over the full stress horizon.
Compliance with internal and regulatory stress tests
|
Barclays'
short-term LRA
(30 day combined stress
requirement)
1
|
CRD IV LCR
|
|
£bn
|
£bn
|
Eligible liquidity buffer
|
220
|
215
|
Net stress outflows
|
(175)
|
(140)
|
Surplus
|
45
|
75
|
|
|
|
Liquidity pool as a percentage of anticipated net outflows as at 31
December 2017
|
126%
|
154%
|
Liquidity pool as a percentage of
anticipated net outflows as at 31 December 2016
2
|
120%
|
131%
|
1
|
Of the three stress scenarios monitored as part of the short-term
LRA, the 30 day combined stress scenario results in the lowest
ratio at 126% (2016: 144%). This compared to 139% (2016: 134%)
under the 90 day market-wide scenario and 131% (2016: 120%) under
the 30 day Barclays specific scenario.
|
2
|
31 December 2016 reflected the Barclays specific scenario ratio of
120%, being the lowest ratio of the three scenarios. LCR and LRA
included BAGL in 2016.
|
The
Group plans to maintain its surplus to the internal and regulatory
stress requirements at an efficient level, while considering risks
to market funding conditions and its liquidity position. The
continuous reassessment of these risks may lead to appropriate
actions being taken with respect to sizing of the liquidity
pool.
Composition of the Group liquidity pool
|
|
Liquidity pool
|
Liquidity pool of which
CRD IV LCR-eligible
|
Liquidity pool
|
|
As at 31.12.17
|
Cash
|
Level 1
|
Level 2A
|
As at 31.12.16
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Cash and deposits with central
banks
1
|
173
|
169
|
-
|
-
|
103
|
|
|
|
|
|
|
Government bonds
2
|
|
|
|
|
|
AAA to AA-
|
31
|
-
|
29
|
-
|
|
BBB+ to BBB-
|
2
|
-
|
2
|
-
|
|
Other LCR ineligible government bonds
|
1
|
-
|
-
|
-
|
|
Total government bonds
|
34
|
-
|
31
|
-
|
39
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Government guaranteed issuers, PSEs and GSEs
|
6
|
-
|
5
|
2
|
|
International organisations and MDBs
|
4
|
-
|
4
|
-
|
|
Covered bonds
|
2
|
-
|
2
|
-
|
|
Other
|
1
|
-
|
1
|
-
|
|
Total other
|
13
|
-
|
12
|
2
|
23
|
|
|
|
|
|
|
Total as at 31 December 2017
|
220
|
169
|
43
|
2
|
|
Total as at 31 December 2016
|
165
|
101
|
55
|
3
|
|
1
|
Of which over 99% (2016: over 98%) was placed with the Bank of
England, US Federal Reserve, European Central Bank, Bank of Japan
and Swiss National Bank.
|
2
|
Of which over 84% (2016: over 90%) are comprised of UK, US,
Japanese, French, German, Danish, Swiss and Dutch
securities.
|
The
Group liquidity pool was £220bn as at 31 December 2017
(December 2016: £165bn). During 2017, the month end liquidity
pool ranged from £165bn to £232bn (December 2016:
£132bn to £175bn), and the month end average balance was
£202bn (December 2016: £153bn). The liquidity pool is
held unencumbered and is not used to support payment or clearing
requirements. Such requirements are treated as part of our regular
business funding. The liquidity pool is intended to offset stress
outflows, and comprises the above cash and unencumbered
assets.
As at
31 December 2017, 93% (December 2016: 91%) of the liquidity pool
was located in BBPLC and was available to meet liquidity needs
across the Barclays Group. The residual liquidity pool is held
predominantly within Barclays Capital Inc., a subsidiary of BBPLC.
The portion of the liquidity pool outside of BBPLC is held against
entity-specific stressed outflows and regulatory requirements. To
the extent that the use of this portion of the liquidity pool is
restricted due to regulatory requirements, it is assumed to be
unavailable to the rest of the Group.
Deposit funding
|
As at 31.12.17
|
As at 31.12.16
|
|
Loans and advances to customers
|
Customer deposits
|
Loan: deposit ratio
|
Loan: deposit ratio
|
Funding of loans and advances to customers
|
£bn
|
£bn
|
%
|
%
|
Barclays UK
|
184
|
193
|
|
|
Barclays International
|
101
|
162
|
|
|
Total retail and corporate
funding
1
|
285
|
355
|
80%
|
89%
|
|
|
|
|
|
Barclays International and Head Office
2
|
81
|
74
|
|
|
|
|
|
|
|
Total Barclays Group
|
366
|
429
|
85%
|
93%
|
1
|
Loan: deposit ratio excludes investment banking balances other than
interest earning lending. Comparative has been restated to include
interest earning lending balances within the investment banking
business.
|
2
|
Includes investment banking balances other than interest earning
lending.
|
Retail
and corporate loans and advances are largely funded by customer
deposits. As at 31 December 2017, the loan: deposit ratio for these
businesses was 80% (December 2016: 89%). The customer deposits in
excess of loans and advances are primarily used to fund liquidity
buffer requirements for these businesses. The loan: deposit ratio
for the Group was
85%
(December 2016: 93%).
As at
31 December 2017, £153bn (December 2016: £139bn) of total
customer deposits were insured through the UK Financial Services
Compensation Scheme and other similar schemes. In addition to these
customer deposits, there were £4bn (December 2016: £4bn)
of other liabilities insured or guaranteed by
governments.
Wholesale funding
Composition of wholesale
funding
1
The
Group's total wholesale funding outstanding (excluding repurchase
agreements) was £157.4bn (December 2016: £157.8bn).
Wholesale funding of £57.2bn (December 2016: £70.3bn)
matures in less than one year, of which £13.8bn (December
2016: £21.5bn) relates to term funding.
As at
31 December 2017, outstanding wholesale funding comprised of
£20.4bn (December 2016: £25.8bn) secured funding and
£137.0bn (December 2016: £132.0bn) unsecured
funding.
In
2017, the Group issued £11.5bn equivalent of capital and
senior unsecured term debt from Barclays PLC (the Parent company)
of which £6.1bn was in public senior unsecured debt and
£5.4bn in capital instruments. In the same period, £6.1bn
of BBPLC capital and senior public term instruments either matured
or were redeemed, including the $1.375bn 7.1% Series 3 USD
preference shares.
The
Group expects to continue to issue public wholesale debt in 2018
from Barclays PLC (the Parent company), in order to maintain
compliance with indicative MREL requirements and maintain a stable
and diverse funding base by type, currency and market.
Maturity profile of wholesale
funding
2
|
|
|
|
|
|
|
|
|
|
|
|
|
<1
month
|
1-3 months
|
3-6 months
|
6-12 months
|
<1
year
|
1-2 years
|
2-3 years
|
3-4 years
|
4-5 years
|
>5
years
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Barclays PLC (the Parent company)
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured (public benchmark)
|
-
|
0.7
|
-
|
0.1
|
0.8
|
1.5
|
1.0
|
4.2
|
4.0
|
9.6
|
21.1
|
Senior unsecured (privately placed)
|
-
|
-
|
-
|
0.1
|
0.1
|
-
|
-
|
0.2
|
-
|
0.5
|
0.8
|
Subordinated liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
1.1
|
-
|
-
|
5.4
|
6.5
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Deposits from banks
|
5.4
|
4.7
|
0.7
|
0.6
|
11.4
|
0.1
|
0.1
|
0.3
|
-
|
-
|
11.9
|
Certificates of deposit and commercial paper
|
2.4
|
8.1
|
7.1
|
7.0
|
24.6
|
1.2
|
0.8
|
0.6
|
0.4
|
0.1
|
27.7
|
Asset backed commercial paper
|
1.9
|
4.1
|
0.4
|
-
|
6.4
|
-
|
-
|
-
|
-
|
-
|
6.4
|
Senior unsecured (public benchmark)
|
-
|
-
|
-
|
-
|
-
|
2.5
|
0.6
|
0.6
|
-
|
1.1
|
4.8
|
Senior unsecured (privately placed)
3
|
0.5
|
0.9
|
3.6
|
2.9
|
7.9
|
9.9
|
6.7
|
1.8
|
3.1
|
14.6
|
44.0
|
Covered bonds
|
-
|
1.0
|
-
|
-
|
1.0
|
1.8
|
1.0
|
1.0
|
2.4
|
1.3
|
8.5
|
Asset backed securities
|
-
|
-
|
0.6
|
0.2
|
0.8
|
1.7
|
1.0
|
-
|
0.1
|
1.8
|
5.4
|
Subordinated liabilities
|
2.3
|
0.1
|
0.8
|
-
|
3.2
|
0.1
|
0.8
|
5.2
|
3.5
|
4.5
|
17.3
|
Other
4
|
0.5
|
-
|
0.1
|
0.4
|
1.0
|
0.2
|
0.2
|
0.3
|
-
|
1.3
|
3.0
|
Total as at 31 December 2017
|
13.0
|
19.6
|
13.3
|
11.3
|
57.2
|
19.0
|
13.3
|
14.2
|
13.5
|
40.2
|
157.4
|
Of which secured
|
1.9
|
5.1
|
1.1
|
0.2
|
8.3
|
3.5
|
2.0
|
1.0
|
2.5
|
3.1
|
20.4
|
Of which unsecured
|
11.1
|
14.5
|
12.2
|
11.1
|
48.9
|
15.5
|
11.3
|
13.2
|
11.0
|
37.1
|
137.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2016
|
16.6
|
17.3
|
16.4
|
20.0
|
70.3
|
14.3
|
14.4
|
8.6
|
14.1
|
36.1
|
157.8
|
Of which secured
|
3.7
|
5.6
|
3.4
|
2.3
|
15.0
|
1.8
|
3.2
|
0.4
|
1.0
|
4.4
|
25.8
|
Of which unsecured
|
12.9
|
11.7
|
13.0
|
17.7
|
55.3
|
12.5
|
11.2
|
8.2
|
13.1
|
31.7
|
132.0
|
1
|
The composition of wholesale funds comprised the balance sheet
reported deposits from banks, financial liabilities at fair value,
debt securities in issue and subordinated liabilities, excluding
cash collateral and settlement balances. It does not include
participation in the central bank facilities reported within
repurchase agreements and other similar secured
borrowing.
|
2
|
Term funding comprised of public benchmark and privately placed
senior unsecured notes, covered bonds, asset-backed securities
(ABS) and subordinated debt where the original maturity of the
instrument was more than 1 year.
|
3
|
Included structured notes of £33.4bn, £7.2bn of which
matures within 1 year.
|
4
|
Primarily comprised of fair value deposits of
£1.7bn.
|
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. Institution or group-specific MREL
requirements will depend on the preferred resolution strategy for
that institution or group.
The
MREL requirements will be phased in 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 an MREL equivalent to the higher of
either: (i) two times the sum of its Pillar 1 and Pillar 2A
requirements; or (ii) the higher of two times its leverage ratio,
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 requirement than currently proposed. In
addition, it is proposed that CET1 capital cannot be counted
towards both MREL and the combined buffer requirement (CBR),
meaning that the CBR will effectively be applied above both the
Pillar 1 and Pillar 2A requirements relating to own funds and
MREL.
Barclays'
indicative MREL requirement is currently expected to be 29.1% of
RWAs from 1 January 2022 consisting of the following
components:
●
|
Loss
absorption and recapitalisation amounts consisting of 8% Pillar 1
and 4.3% Pillar 2A buffers, respectively;
|
●
|
Regulatory
buffers including a 1.5% Global Systemically Important Institution
(G-SII) buffer, 2.5% Capital Conservation Buffer (CCB) and 0.5%
from the planned introduction of a 1% Countercyclical Capital
Buffer (CCyB) for the UK
1
|
MREL ratios and position
|
|
|
|
|
|
MREL ratios
|
As at
31.12.17
|
As at
31.12.16
|
Fully loaded CET1 capital
|
13.3%
|
12.4%
|
AT1 capital instruments and related share premium
accounts
|
2.9%
|
1.8%
|
Tier 2 (T2) capital instruments and related share premium
accounts
|
2.1%
|
1.0%
|
Term senior unsecured funding
|
6.8%
|
4.6%
|
Total Barclays PLC (the Parent company) MREL ratio
|
25.0%
|
19.8%
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
2
|
1.1%
|
1.5%
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
2
|
2.2%
|
3.0%
|
Total MREL ratio on a transitional basis, including eligible BBPLC
instruments
|
28.2%
|
24.2%
|
|
|
|
MREL position
|
£m
|
£m
|
Fully loaded CET1 capital
|
41,565
|
45,204
|
AT1 capital instruments and related share premium
accounts
|
8,941
|
6,449
|
T2 capital instruments and related share premium
accounts
|
6,472
|
3,769
|
Term senior unsecured funding
|
21,166
|
16,785
|
Total Barclays PLC (the Parent company) MREL position
|
78,144
|
72,207
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
2
|
3,408
|
5,315
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
2
|
6,789
|
11,109
|
Total MREL position on a transitional basis, including eligible
BBPLC instruments
|
88,341
|
88,631
|
|
|
|
Total RWAs
|
313,033
|
365,649
|
1
|
2022 requirements subject to Bank of England review by the end of
2020.
|
2
|
Included other AT1 capital regulatory adjustments and deductions of
£130m (December 2016: £130m) and other T2 capital
regulatory adjustments and deductions of £251m (December 2016:
£257m).
|
Credit ratings
In
addition to monitoring and managing key metrics related to the
financial strength of the Group, Barclays also solicits independent
credit ratings from Standard & Poor's Global (S&P),
Moody's, Fitch, and Rating and Investment Information (R&I).
These ratings assess the creditworthiness of the Group, its
subsidiaries and its branches, and are based on reviews of a broad
range of business and financial attributes including capital
strength, profitability, funding, liquidity, asset quality,
strategy and governance.
Barclays Bank PLC
|
Standard & Poor's
|
Moody's
|
Fitch
|
Long-term
|
A
|
A1
|
A
|
Short-term
|
A-1
|
P-1
|
F1
|
Outlook
|
Stable
|
Negative
|
Rating watch positive
|
|
|
|
|
Barclays Bank UK PLC
|
|
|
|
Long-term
|
A (prelim)
|
(P) A1
|
A+ (EXP)
|
Short-term
|
A-1 (prelim)
|
(P) P-1
|
F1 (EXP)
|
Outlook
|
Stable
|
Unassigned
|
Stable
|
|
|
|
|
Barclays PLC
|
|
|
|
Long-term
|
BBB
|
Baa2
|
A
|
Short-term
|
A-2
|
P-3
|
F1
|
Outlook
|
Stable
|
Negative
|
Stable
|
All
credit rating agencies took rating actions during the year to
assign initial ratings to BBUKPLC in anticipation of the
establishment of this entity as the UK ring-fenced bank in April
2018. There were also rating actions on the existing entities of
BBPLC and Barclays PLC by some of the credit rating agencies as
detailed below.
In
September 2017, Fitch assigned an expected rating to BBUKPLC of A+,
reflecting a one notch uplift from the expected stand-alone rating
of A. This is due to the sufficient amount of junior debt they
expect to be outstanding in BBUKPLC, referred to as qualifying
junior debt (QJD). In the same rating action, Fitch revised the
outlook of BBPLC from stable to rating watch positive in
anticipation of assigning QJD uplift of one notch during
2018.
In
October 2017, S&P upgraded long and short-term ratings of BBPLC
by one notch to A/A-1 from A-/A-2 as S&P finalised their view
of the status of BBPLC. They determined that BBPLC would remain
core to the Group revising their previous expectation of a highly
strategic status. Simultaneously, BBUKPLC was assigned a
preliminary rating of A in anticipation that it too would be core
to the Group. In November 2017, S&P also revised their view of
UK economic risk for the UK banking sector, which led to outlooks
for Barclays PLC, BBPLC and BBUKPLC being revised from negative to
stable.
Moody's
assigned a provisional rating to BBUKPLC in October 2017 of (P)A1.
The negative outlooks for Barclays PLC and BBPLC have remained in
place since the outcome of the EU referendum in June 2016. Since
October 2017, the implementation of ring-fencing has been included
in the rationale for the maintenance of BBPLC's negative
outlook.
Barclays
also solicits issuer ratings from R&I and the ratings of A- for
Barclays PLC and A for BBPLC were affirmed in July 2017 with stable
outlooks.
CRD IV capital
Barclays'
end point CET1 regulatory requirement is expected to be 11.4%
comprising of a 4.5% Pillar 1 minimum, a 2.5% CCB, a 1.5% G-SII
buffer, a 2.4% Pillar 2A requirement and an expected 0.5%
CCyB.
The CCB
and the G-SII buffer, determined by the PRA in line with guidance
from the Financial Stability Board (FSB), are subject to phased
implementation at 25% per annum from 2016 with full effect from
2019. The CCB has been set at 2.5% with 1.25% applicable for 2017.
The G-SII buffer was set at 2% with 1% applicable for 2017. On 21
November 2016 the FSB confirmed that the G-SII buffer has been set
at 1.5% with 1.1% applicable for 2018. On 21 November 2017 the FSB
confirmed that the G-SII buffer will remain at 1.5% applicable for
2019.
On 25
September 2017 the Financial Policy Committee (FPC) reaffirmed that
it expects to increase the UK CCyB rate from 0% to 0.5% applicable
from 27 June 2018 and to 1% applicable from 28 November 2018. Based
on current UK exposures, Barclays' CCyB is expected to be
approximately 0.5% from November 2018. Other national authorities
also determine the appropriate CCyBs that should be applied to
exposures in their jurisdiction, however based on current exposures
these are not material.
Barclays'
Pillar 2A requirement as per the PRA's Individual Capital Guidance
(ICG) for Q417 and 2018 is 4.3% of which at least 56.25% needs to
be met in CET1 form, equating to approximately 2.4% 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.
For
regulatory reporting purposes, BAGL is treated on a proportional
consolidation basis based on Barclays' holding in BAGL of
14.9%.
As at
31 December 2017, Barclays' CET1 ratio was 13.3% which exceeded the
2017 transitional minimum requirement of 9.2%, which comprised of a
4.5% Pillar 1 minimum, a 2.4% Pillar 2A requirement, a 1.25% CCB, a
1% G-SII buffer and a 0% CCyB.
Capital ratios
|
As at
|
As at
|
As at
|
31.12.17
|
30.09.17
|
31.12.16
|
Fully loaded CET1
1,2
|
13.3%
|
13.1%
|
12.4%
|
PRA transitional tier 1
3,4
|
17.2%
|
16.9%
|
15.6%
|
PRA transitional total capital
3,4
|
21.5%
|
21.2%
|
19.6%
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
Total equity (excluding non-controlling interests) per the balance
sheet
|
63,905
|
64,649
|
64,873
|
Less: other equity instruments (recognised as AT1
capital)
|
(8,941)
|
(8,940)
|
(6,449)
|
Adjustment to retained earnings for foreseeable
dividends
|
(392)
|
(284)
|
(388)
|
|
|
|
|
Minority interests (amount allowed in consolidated
CET1)
|
-
|
-
|
1,825
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,385)
|
(1,462)
|
(1,571)
|
Goodwill and intangible assets
|
(7,908)
|
(7,787)
|
(9,054)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(593)
|
(482)
|
(494)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(1,161)
|
(1,195)
|
(2,104)
|
Excess of expected losses over impairment
|
(1,239)
|
(1,423)
|
(1,294)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
83
|
28
|
86
|
Defined benefit pension fund assets
|
(732)
|
(683)
|
(38)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
Deferred tax assets arising from temporary differences (amount
above 10% threshold)
|
-
|
-
|
(183)
|
Other regulatory adjustments
|
(22)
|
(42)
|
45
|
Fully loaded CET1 capital
|
41,565
|
42,329
|
45,204
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
8,941
|
8,940
|
6,449
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
3,538
|
3,802
|
5,445
|
Other regulatory adjustments and deductions
|
(130)
|
(130)
|
(130)
|
Transitional AT1 capital
5
|
12,349
|
12,612
|
11,764
|
|
|
|
|
PRA transitional tier 1 capital
|
53,914
|
54,941
|
56,968
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
6,472
|
6,371
|
3,769
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
7,040
|
7,839
|
11,366
|
Other regulatory adjustments and deductions
|
(251)
|
(251)
|
(257)
|
PRA transitional total regulatory capital
|
67,175
|
68,900
|
71,846
|
|
|
|
|
Total RWAs
|
313,033
|
324,296
|
365,649
|
1
|
The transitional regulatory adjustments to CET1 capital are no
longer applicable resulting in CET1 capital on a fully loaded basis
being equal to that on a transitional basis.
|
2
|
The CRD IV CET1 ratio (FSA October 2012 transitional statement) as
applicable to Barclays' tier 2 Contingent Capital Notes was 13.9%
based on £43.5bn of transitional CRD IV CET1 capital and
£313bn of RWAs.
|
3
|
The PRA transitional capital is based on the PRA Rulebook and
accompanying supervisory statements.
|
4
|
As at 31 December 2017, Barclays' fully loaded tier 1 capital was
£50,376m, and the fully loaded tier 1 ratio was 16.1%. Fully
loaded total regulatory capital was £64,646m and the fully
loaded total capital ratio was 20.7%. The fully loaded tier 1
capital and total capital measures are calculated without applying
the transitional provisions set out in CRD IV and assessing
compliance of AT1 and T2 instruments against the relevant criteria
in CRD IV.
|
5
|
Of the £12.3bn transitional AT1 capital, fully loaded AT1
capital comprised the £8.9bn of contingent convertible
instruments issued by Barclays PLC (the Parent company) and related
share premium accounts, and £0.1bn capital deductions. It
excludes £3.5bn legacy tier 1 capital instruments issued by
subsidiaries that are subject to grandfathering. For the leverage
ratio, only the AT1 capital on a fully loaded basis is
applicable.
|
Movement in CET1 capital
|
Three months ended
|
Year ended
|
|
31.12.17
|
31.12.17
|
|
£m
|
£m
|
Opening CET1 capital
|
42,329
|
45,204
|
|
|
|
Loss for the period attributable to equity holders
|
(1,113)
|
(1,283)
|
Own credit relating to derivative liabilities
|
9
|
78
|
Dividends paid and foreseen
|
(240)
|
(978)
|
Decrease in retained regulatory capital generated from
earnings
|
(1,344)
|
(2,183)
|
|
|
|
Net impact of share schemes
|
133
|
86
|
Available for sale reserve
|
477
|
438
|
Currency translation reserve
|
(86)
|
3
|
Other reserves
|
27
|
(920)
|
Increase/(decrease) in other qualifying reserves
|
551
|
(393)
|
|
|
|
Pension re-measurements within reserves
|
30
|
53
|
Defined benefit pension fund asset deduction
|
(49)
|
(694)
|
Net impact of pensions
|
(19)
|
(641)
|
|
|
|
Minority interests
|
-
|
(1,825)
|
Additional value adjustments (PVA)
|
77
|
186
|
Goodwill and intangible assets
|
(121)
|
1,146
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(111)
|
(99)
|
Excess of expected loss over impairment
|
184
|
55
|
Deferred tax assets arising from temporary differences (amount
above 10% threshold)
|
-
|
183
|
Other regulatory adjustments
|
19
|
(68)
|
Increase/(decrease) in regulatory capital due to adjustments and
deductions
|
48
|
(422)
|
|
|
|
Closing CET1 capital
|
41,565
|
41,565
|
CET1
capital decreased to £41.6bn (December 2016: £45.2bn) due
to the following:
●
|
A
£1.3bn loss for the period attributable to equity holders
reflecting profit after tax of £1.1bn, including the net tax
charge of £0.9bn due to the re-measurement of US DTAs in Q417,
offset by £2.3bn of losses in respect of the discontinued
operation. The discontinued operation losses, resulting from the
impairment of Barclays' holding in BAGL allocated to goodwill and
the recycling of BAGL currency translation reserve losses to the
income statement, had no impact on CET1 capital with offsetting
movements in the goodwill and intangible assets deduction and other
qualifying reserves
|
●
|
A
£1.0bn decrease for dividends paid and foreseen
|
●
|
A
£0.4bn increase in the available for sale reserve primarily
due to gains from changes in fair value on BAGL's remaining shares
held as available for sale
|
●
|
The
currency translation reserve remained in line largely due to the
£1.4bn recycling of BAGL losses to the income statement which
were offset by a £1.3bn decrease driven by the depreciation of
period end USD against GBP
|
●
|
A
£0.9bn decrease in other reserves which included a £0.5bn
decrease as a result of USD preference share redemptions and
£0.4bn of separation payments in relation to the sale of
Barclays' holding in BAGL
|
●
|
A
£0.6bn decrease net of tax as a result of movements relating
to pensions. The pension asset capital deduction increase relates
to the UK Retirement Fund (UKRF) which is the Group's main pension
scheme, moving from a small deficit in December 2016 to a
£1.0bn surplus, largely due to payment of deficit
contributions
|
●
|
A
£1.8bn decrease due to BAGL minority interests which are no
longer eligible as a result of proportional consolidation of
BAGL
|
●
|
A
£1.1bn increase due to a reduced goodwill and intangible
assets deduction largely as a result of the impairment of Barclays'
holding in BAGL allocated to goodwill
|
Risk weighted assets 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 31.12.17
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays UK
|
3,811
|
54,955
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
12,167
|
70,933
|
Barclays International
|
49,058
|
69,520
|
|
17,000
|
17,243
|
101
|
2,776
|
|
13,313
|
13,547
|
|
27,708
|
210,266
|
Head Office
1
|
2,907
|
9,766
|
|
65
|
633
|
-
|
225
|
|
88
|
1,365
|
|
16,785
|
31,834
|
Barclays Group
|
55,776
|
134,241
|
|
17,065
|
17,876
|
101
|
3,001
|
|
13,401
|
14,912
|
|
56,660
|
313,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
4,278
|
53,364
|
|
3
|
-
|
-
|
31
|
|
-
|
-
|
|
12,338
|
70,014
|
Barclays International
|
47,775
|
79,013
|
|
17,830
|
17,387
|
68
|
2,847
|
|
12,985
|
12,774
|
|
27,537
|
218,216
|
Head Office
1
|
4,241
|
12,274
|
|
89
|
585
|
-
|
151
|
|
114
|
1,827
|
|
16,785
|
36,066
|
Barclays Group
|
56,294
|
144,651
|
|
17,922
|
17,972
|
68
|
3,029
|
|
13,099
|
14,601
|
|
56,660
|
324,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
5,592
|
49,591
|
|
47
|
-
|
-
|
-
|
|
-
|
-
|
|
12,293
|
67,523
|
Barclays International
|
53,201
|
82,327
|
|
13,515
|
13,706
|
30
|
3,581
|
|
9,343
|
9,460
|
|
27,538
|
212,701
|
Head Office
1
|
9,048
|
27,122
|
|
77
|
1,157
|
-
|
927
|
|
482
|
2,323
|
|
12,156
|
53,292
|
Barclays Non-Core
|
4,714
|
9,945
|
|
1,043
|
6,081
|
37
|
2,235
|
|
477
|
2,928
|
|
4,673
|
32,133
|
Barclays Group
|
72,555
|
168,985
|
|
14,682
|
20,944
|
67
|
6,743
|
|
10,302
|
14,711
|
|
56,660
|
365,649
|
1
|
Includes Africa Banking RWAs.
|
Movement analysis of RWAs
|
|
Credit risk
|
Counterparty
credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
As at 01.01.17
|
241.5
|
42.4
|
25.0
|
56.7
|
365.6
|
Book size
|
(11.0)
|
(1.2)
|
5.4
|
-
|
(6.8)
|
Acquisitions and disposals
|
(31.7)
|
(1.5)
|
(1.6)
|
-
|
(34.8)
|
Book quality
|
(3.5)
|
0.5
|
0.1
|
-
|
(2.9)
|
Model updates
|
(1.4)
|
-
|
-
|
-
|
(1.4)
|
Methodology and policy
|
0.6
|
(2.2)
|
(0.6)
|
-
|
(2.2)
|
Foreign exchange movements
1
|
(4.5)
|
-
|
-
|
-
|
(4.5)
|
As at 31.12.17
|
190.0
|
38.0
|
28.3
|
56.7
|
313.0
|
1
|
Foreign exchange movements do not include foreign exchange
for counterparty credit risk or market risk.
|
RWAs
decreased £52.6bn to £313.0bn:
●
|
Book
size decreased RWAs £6.8bn primarily due to portfolio rundowns
related to Barclays Non-Core, the re-measurement of US DTAs as a
result of the US Tax Cuts and Jobs Act, and securitisation
transactions, partially offset by increased trading activity in the
investment banking business
|
●
|
Acquisitions
and disposals decreased RWAs £34.8bn primarily as a result of
the proportional consolidation of BAGL
|
●
|
Book
quality decreased RWAs £2.9bn primarily due to changes in risk
profile in CIB
|
●
|
Model
updates decreased RWAs £1.4bn primarily due to model changes
in Africa Banking prior to the sell down of Barclays' holding in
BAGL
|
●
|
Methodology
and policy decreased RWAs £2.2bn primarily due to a revised
calculation basis for modelled derivative exposures
|
●
|
Foreign
exchange movements decreased RWAs £4.5bn primarily due to the
depreciation of period end USD against GBP
|
Leverage ratios and exposures
In
October 2017, following the FPC recommendation, the PRA increased
the minimum requirement for the UK leverage ratio from 3% to 3.25%.
Barclays is subject to a leverage ratio requirement that is
implemented on a phased basis, with a transitional requirement of
3.6% as at 31 December 2017; this comprises the 3.25% minimum
requirement, a transitional G-SII additional leverage ratio buffer
(G-SII ALRB) of 0.35% and a countercyclical leverage ratio buffer
(CCLB) which is currently nil. Although the leverage ratio is
expressed in terms of tier 1 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 0.35%
transitional G-SII ALRB was £3.4bn. The fully loaded expected
end point UK leverage requirement is 4.0%.
Barclays
is required to disclose an average UK leverage ratio which is based
on capital and exposure measures on the last day of each month in
the quarter; as well as a UK leverage ratio which is based on the
last day of the quarter. Both approaches exclude qualifying claims
on central banks from the leverage exposures. Barclays is also
required to disclose a Capital Requirements Regulation (CRR)
leverage ratio, which is based on the end point CRR definition of
tier 1 capital and the CRR definition of leverage
exposure.
Leverage ratios
|
As at
31.12.17
|
As at
30.09.17
|
As at
31.12.16
|
£bn
|
£bn
|
£bn
|
Average UK leverage exposure
|
1,045
|
1,035
|
1,137
|
Average fully loaded tier 1 capital
|
51.2
|
51.2
|
51.6
|
Average UK leverage ratio
|
4.9%
|
4.9%
|
4.5%
|
UK leverage ratio
|
5.1%
|
5.1%
|
5.0%
|
CRR leverage ratio
|
4.5%
|
4.4%
|
4.6%
|
|
|
|
|
UK leverage exposure
|
|
|
|
Accounting assets
|
|
|
|
Derivative financial instruments
|
238
|
244
|
347
|
Cash collateral
|
53
|
56
|
67
|
Reverse repurchase agreements and other similar secured
lending
|
12
|
15
|
13
|
Financial assets designated at fair value
1
|
116
|
116
|
79
|
Loans and advances and other assets
|
714
|
718
|
707
|
Total IFRS assets
|
1,133
|
1,149
|
1,213
|
|
|
|
|
Regulatory consolidation adjustments
|
8
|
13
|
(6)
|
|
|
|
|
Derivatives adjustments
|
|
|
|
Derivatives netting
|
(217)
|
(222)
|
(313)
|
Adjustments to cash collateral
|
(42)
|
(42)
|
(50)
|
Net written credit protection
|
14
|
15
|
12
|
Potential future exposure (PFE) on derivatives
|
120
|
124
|
136
|
Total derivatives adjustments
|
(125)
|
(125)
|
(215)
|
|
|
|
|
Securities financing transactions (SFTs) adjustments
|
19
|
23
|
29
|
|
|
|
|
Regulatory deductions and other adjustments
|
(13)
|
(13)
|
(15)
|
Weighted off-balance sheet commitments
|
103
|
104
|
119
|
CRR leverage exposure
|
1,125
|
1,151
|
1,125
|
|
|
|
|
Qualifying central bank claims
|
(140)
|
(148)
|
(75)
|
UK leverage exposure
|
985
|
1,002
|
1,050
|
|
|
|
|
Fully loaded CET1 capital
|
41.6
|
42.3
|
45.2
|
Fully loaded AT1 capital
|
8.8
|
8.8
|
6.8
|
Fully loaded tier 1 capital
|
50.4
|
51.1
|
52.0
|
1
|
Included within financial assets designated at fair value are
reverse repurchase agreements designated at fair value of
£100bn (December 2016: £63bn).
|
The
average UK leverage ratio increased to 4.9% (December 2016: 4.5%)
primarily driven by the issuance of AT1 securities, the reduction
in Non-Core related exposures and due to regulatory proportional
consolidation of BAGL.
The CRR
leverage ratio decreased to 4.5% (December 2016: 4.6%). The
difference between the average UK leverage ratio and the CRR
leverage ratio movement is primarily driven by an increase in cash
at central banks, which are excluded from the UK leverage ratio
calculation. Additionally, the year end fully loaded tier 1 capital
is lower than the average due to the re-measurement of US DTAs as a
result of the US Tax Cuts and Jobs Act.
●
|
Loans
and advances and other assets increased £7bn to £714bn.
This was primarily due to a £69bn increase in cash and
balances at central banks largely driven by an increase in the cash
contribution to the Group liquidity pool mainly exempt under UK
leverage rules and a £70bn decrease in assets held for sale
driven by the sell down of Barclays' holding in BAGL
|
●
|
Reverse
repurchase agreements increased £36bn to £112bn primarily
due to an increase in matched book trading
|
●
|
Net
derivative leverage exposures decreased £33bn to £166bn
due to a reduction in interest rate and foreign exchange
derivatives, the rundown of Non-Core related assets, a decrease in
cash collateral and the depreciation of period end USD and JPY
against GBP
|
●
|
Regulatory
consolidation adjustments increased £14bn to £8bn
primarily due to the proportional consolidation of BAGL following
the sell down of Barclays' holding
|
●
|
Weighted
off balance sheet commitments decreased £16bn to £103bn
primarily due to the proportional consolidation of BAGL following
the sell down of Barclays' holding
|
Additional
Barclays regulatory disclosures are prepared in accordance with the
European Banking Authority (EBA) Guidelines on disclosure
requirements under Part Eight of Regulation (EU) No 575/2013 (refer
to the Barclays Pillar 3 Report) and will be disclosed on 22
February 2018, available at home.barclays/results.
Net interest income sensitivity (AEaR) by business
unit
The
table below shows a sensitivity analysis on pre-tax net interest
income for non-trading financial assets and financial liabilities,
including the effect of any hedging. The sensitivity has been
measured using the Annual Earnings at Risk (AEaR) methodology as
described on page 168 of the Barclays Pillar 3 Report. Note that
this metric assumes an instantaneous parallel change to interest
rate forward curves. The model floors shocked market rates at zero;
changes in net interest income sensitivity are only observed where
forward rates are greater than zero. The main model assumptions
are: (i) one year time horizon; (ii) balance sheet is held
constant; (iii) balances are adjusted for assumed behavioural
profiles (e.g. considers that customers may remortgage before the
contractual maturity); and (iv) behavioural assumptions are kept
unchanged in all rate scenarios.
|
Barclays UK
|
Barclays International
|
Barclays Non-Core
|
Total
|
As at 31.12.17
1,2,3
|
£m
|
£m
|
£m
|
£m
|
+100bps
|
45
|
31
|
-
|
76
|
+25bps
|
11
|
9
|
-
|
20
|
-25bps
|
(61)
|
(22)
|
-
|
(83)
|
|
|
|
|
|
As at 31.12.16
1,2,3
|
|
|
|
|
+100bps
|
19
|
46
|
6
|
71
|
+25bps
|
5
|
16
|
1
|
22
|
-25bps
|
(130)
|
(90)
|
-
|
(220)
|
1
|
Excludes the investment banking business.
|
2
|
Excludes treasury operations, which are driven by the firm's
investments in the liquidity pool, which are risk managed using
value-based risk measures described on pages 168-169 of the
Barclays Pillar 3 Report. Treasury's net interest income (AEaR)
sensitivity to a +25/-25bps move is £13m/£(2)m
respectively.
|
3
|
Expected fixed rate mortgage pipeline completions in Barclays UK
assumed to be consistent with level and timing of pipeline
hedging.
|
Net
interest income asymmetry arises due to the current low level of
interest rates. Modelled net interest income sensitivity to a -25bp
shock to rates has however reduced year-on-year as a result of the
change in UK base rate increasing from 0.25% to 0.5% in November
2017.
Both
Barclays UK and Barclays International exposures to falling rates
have reduced as a result of the higher base rate environment and
the movement of customer savings rates away from the implicit
customer savings market 0% floor.
Net interest income
sensitivity (AEaR) by currency
1
|
As at 31.12.17
|
As at 31.12.16
|
|
+25 basis
points
|
-25 basis
points
|
+25 basis
points
|
-25 basis
points
|
|
£m
|
£m
|
£m
|
£m
|
GBP
|
12
|
(76)
|
9
|
(215)
|
USD
|
1
|
(1)
|
3
|
(5)
|
EUR
|
4
|
(1)
|
7
|
1
|
Other currencies
|
3
|
(5)
|
3
|
(1)
|
Total
|
20
|
(83)
|
22
|
(220)
|
As a percentage of net interest income
|
0.20%
|
(0.84%)
|
0.21%
|
(2.09%)
|
1
|
Excludes the investment banking business and treasury
operations.
|
Statement of Directors' Responsibilities
Each of
the Directors (the names of whom are set out below) confirm
that:
●
|
to the
best of their knowledge, the condensed consolidated financial
statements (set out on pages 42 to 46), which have been prepared in
accordance with the IFRSs as adopted by the European Union, give a
true and fair view of the assets, liabilities, financial position
and profit or loss of the Company and the undertakings included in
the consolidation taken as a whole. The condensed consolidated
financial statements should be read in conjunction with the annual
financial statements as included in the Annual Report for the year
ended 31 December 2017; and
|
●
|
to the
best of their knowledge, the management information (set out on
pages 1 to 40) includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face. This management information should be
read in conjunction with the principal risks and uncertainties
included in the Annual Report for the year ended 31 December
2017.
|
Signed on behalf of the Board by
James E
Staley Tushar
Morzaria
Group
Chief Executive
Group Finance Director
Barclays
PLC Board of Directors:
Chairman
John McFarlane
|
Executive Directors
James E Staley (Group Chief Executive)
Tushar Morzaria (Group Finance Director)
|
Non-executive Directors
Mike Ashley
Tim Breedon CBE
Sir Ian Cheshire
Mary Francis CBE
Crawford Gillies
Sir Gerry Grimstone
Reuben Jeffery III
Matthew Lester
Dambisa Moyo
Diane Schueneman
Mike Turner CBE
|
Condensed Consolidated Financial Statements
Condensed consolidated income statement
|
|
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
Continuing operations
|
Notes
1
|
£m
|
£m
|
Net interest income
|
|
9,845
|
10,537
|
Net fee and commission income
|
|
6,814
|
6,768
|
Net trading income
|
|
3,500
|
2,768
|
Net investment income
|
|
861
|
1,324
|
Other income
|
|
56
|
54
|
Total income
|
|
21,076
|
21,451
|
Credit impairment charges and other provisions
|
|
(2,336)
|
(2,373)
|
Net operating income
|
|
18,740
|
19,078
|
|
|
|
|
Staff costs
|
|
(8,560)
|
(9,423)
|
Administration and general expenses
|
|
(6,896)
|
(6,915)
|
Operating expenses
|
|
(15,456)
|
(16,338)
|
|
|
|
|
Profit on disposal of undertakings and share of results of
associates and joint ventures
|
|
257
|
490
|
Profit before tax
|
|
3,541
|
3,230
|
Tax charge
|
1
|
(2,240)
|
(993)
|
Profit after tax in respect of continuing operations
|
|
1,301
|
2,237
|
(Loss)/profit after tax in respect of discontinued
operation
|
12
|
(2,195)
|
591
|
(Loss)/profit after tax
|
|
(894)
|
2,828
|
|
|
|
|
Attributable to:
|
|
|
|
Ordinary equity holders of the parent
|
|
(1,922)
|
1,623
|
Other equity instrument holders
2
|
10
|
639
|
457
|
Total equity holders
|
|
(1,283)
|
2,080
|
Profit attributable to non-controlling interests in respect of
continuing operations
|
2
|
249
|
346
|
Profit attributable to non-controlling interests in respect of
discontinued operation
|
2
|
140
|
402
|
(Loss)/profit after tax
|
|
(894)
|
2,828
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
Basic (loss)/earnings per ordinary share
2
|
3
|
(10.3)
|
10.4
|
Basic earnings per ordinary share in respect of continuing
operations
|
3
|
3.5
|
9.3
|
Basic (loss)/earnings per ordinary share in respect of discontinued
operation
|
3
|
(13.8)
|
1.1
|
Diluted (loss)/earnings per ordinary share
2
|
3
|
(10.1)
|
10.3
|
Diluted earnings per ordinary share in respect of continuing
operations
|
3
|
3.4
|
9.2
|
Diluted (loss)/earnings per ordinary share in respect of
discontinued operation
|
3
|
(13.5)
|
1.1
|
1
|
For notes to the Financial Statements see pages 47 to
54.
|
2
|
The profit after tax attributable to other equity instrument
holders of £639m (2016: £457m) is offset by a tax credit
recorded in reserves of £174m (2016: £128m). The net
amount of £465m (2016: £329m), along with non-controlling
interests, is deducted from profit after tax in order to calculate
earnings per share and return on average tangible shareholders'
equity.
|
Condensed consolidated statement of comprehensive
income
|
|
|
|
|
|
Year ended
|
Year ended
|
|
|
31.12.17
|
31.12.16
|
|
Notes
1
|
£m
|
£m
|
(Loss)/profit after tax
|
|
(894)
|
2,828
|
Profit after tax in respect of continuing operations
|
|
1,301
|
2,237
|
(Loss)/profit after tax in respect of discontinued
operation
|
|
(2,195)
|
591
|
|
|
|
|
Other comprehensive (loss)/income that may be recycled to profit or
loss from continuing operations:
|
|
|
|
Currency translation reserve
2
|
11
|
(1,337)
|
3,024
|
Available for sale reserve
|
11
|
449
|
(387)
|
Cash flow hedge reserve
|
11
|
(948)
|
798
|
Other
|
|
(5)
|
13
|
Other comprehensive (loss)/income that may be recycled to profit or
loss from continuing operations
|
|
(1,841)
|
3,448
|
|
|
|
|
Other comprehensive income/(loss) not recycled to profit or loss
from continuing operations:
|
|
|
|
Retirement benefit re-measurements
|
|
53
|
(980)
|
Own credit
3
|
11
|
(11)
|
-
|
Other comprehensive income/(loss) not recycled to profit or loss
from continuing operations
|
|
42
|
(980)
|
|
|
|
|
Other comprehensive (loss)/income from continuing
operations
|
|
(1,799)
|
2,468
|
|
|
|
|
Other comprehensive income from discontinued operation
|
|
1,301
|
1,520
|
|
|
|
|
Total comprehensive (loss)/income:
|
|
|
|
Total comprehensive (loss)/income, net of tax from continuing
operations
|
|
(498)
|
4,705
|
Total comprehensive (loss)/income, net of tax from discontinued
operation
|
|
(894)
|
2,111
|
Total comprehensive (loss)/income
|
|
(1,392)
|
6,816
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
(1,749)
|
5,233
|
Non-controlling interests
|
2
|
357
|
1,583
|
Total comprehensive (loss)/income for the period
|
|
(1,392)
|
6,816
|
1
|
For notes to the Financial Statements see pages 47 to
54.
|
2
|
Included a £189m loss (2016: £101m gain) on recycling of
currency translation differences.
|
3
|
As a result of the early adoption of the own credit provisions of
IFRS 9 on 1 January 2017, own credit, which was previously recorded
in the income statement, is now recognised within other
comprehensive income. The cumulative unrealised own credit net loss
of £175m has therefore been reclassified from retained
earnings to a separate own credit reserve, within other reserves.
During the year ended 31 December 2017, a £4m loss (net of
tax) on own credit has been booked in the reserve.
|
Condensed consolidated balance sheet
|
|
|
|
|
|
As at
|
As at
|
|
|
31.12.17
|
31.12.16
|
Assets
|
Notes
1
|
£m
|
£m
|
Cash and balances at central banks
|
|
171,082
|
102,353
|
Items in the course of collection from other banks
|
|
2,153
|
1,467
|
Trading portfolio assets
|
|
113,760
|
80,240
|
Financial assets designated at fair value
|
|
116,281
|
78,608
|
Derivative financial instruments
|
|
237,669
|
346,626
|
Financial investments
|
|
58,916
|
63,317
|
Loans and advances to banks
|
|
35,663
|
43,251
|
Loans and advances to customers
|
|
365,552
|
392,784
|
Reverse repurchase agreements and other similar secured
lending
|
|
12,546
|
13,454
|
Current and deferred tax assets
|
|
3,939
|
5,430
|
Prepayments, accrued income and other assets
|
|
2,389
|
2,893
|
Investments in associates and joint ventures
|
|
718
|
684
|
Goodwill and intangible assets
|
|
7,849
|
7,726
|
Property, plant and equipment
|
|
2,572
|
2,825
|
Retirement benefit assets
|
8
|
966
|
14
|
Assets included in disposal groups classified as held for
sale
|
12
|
1,193
|
71,454
|
Total assets
|
|
1,133,248
|
1,213,126
|
|
|
|
|
Liabilities
|
|
|
|
Deposits from banks
|
|
37,723
|
48,214
|
Items in the course of collection due to other banks
|
|
446
|
636
|
Customer accounts
|
|
429,121
|
423,178
|
Repurchase agreements and other similar secured
borrowing
|
|
40,338
|
19,760
|
Trading portfolio liabilities
|
|
37,351
|
34,687
|
Financial liabilities designated at fair value
|
|
173,718
|
96,031
|
Derivative financial instruments
|
|
238,345
|
340,487
|
Debt securities in issue
2
|
|
73,314
|
75,932
|
Subordinated liabilities
|
6
|
23,826
|
23,383
|
Accruals, deferred income and other liabilities
|
|
8,565
|
8,871
|
Current and deferred tax liabilities
|
|
630
|
766
|
Provisions
|
7
|
3,543
|
4,134
|
Retirement benefit liabilities
|
8
|
312
|
390
|
Liabilities included in disposal groups classified as held for
sale
|
12
|
-
|
65,292
|
Total liabilities
|
|
1,067,232
|
1,141,761
|
|
|
|
|
Equity
|
|
|
|
Called up share capital and share premium
|
9
|
22,045
|
21,842
|
Other reserves
|
11
|
5,383
|
6,051
|
Retained earnings
|
|
27,536
|
30,531
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
54,964
|
58,424
|
Other equity instruments
|
10
|
8,941
|
6,449
|
Total equity excluding non-controlling interests
|
|
63,905
|
64,873
|
Non-controlling interests
|
2
|
2,111
|
6,492
|
Total equity
|
|
66,016
|
71,365
|
1
|
For notes to the Financial Statements see pages 47 to
54.
|
2
|
Debt securities in issue included covered bonds of £8.5bn
(December 2016: £12.4bn).
|
Condensed consolidated statement of changes in equity
|
|
|
|
|
|
|
|
|
|
Called up share capital and share
premium
1
|
Other equity
instruments
1
|
Other reserves
1
|
Retained earnings
|
Total
|
Non-controlling
interests
2
|
Total
equity
|
Year ended 31.12.17
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 31 December 2016
|
21,842
|
6,449
|
6,051
|
30,531
|
64,873
|
6,492
|
71,365
|
Effects of changes in accounting policies
3
|
-
|
-
|
(175)
|
175
|
-
|
-
|
-
|
Balance as at 1 January 2017
|
21,842
|
6,449
|
5,876
|
30,706
|
64,873
|
6,492
|
71,365
|
Profit after tax
|
-
|
639
|
-
|
413
|
1,052
|
249
|
1,301
|
Other comprehensive profit after tax for the period
|
-
|
-
|
(1,846)
|
48
|
(1,798)
|
(1)
|
(1,799)
|
Total comprehensive income net of tax from continuing
operations
|
-
|
639
|
(1,846)
|
461
|
(746)
|
248
|
(498)
|
Total comprehensive income net of tax from discontinued
operation
|
-
|
-
|
1,332
|
(2,335)
|
(1,003)
|
109
|
(894)
|
Total comprehensive income for the year
|
-
|
639
|
(514)
|
(1,874)
|
(1,749)
|
357
|
(1,392)
|
Issue of new ordinary shares
|
117
|
-
|
-
|
-
|
117
|
-
|
117
|
Issue of shares under employee share schemes
|
86
|
-
|
-
|
505
|
591
|
-
|
591
|
Issue and exchange of other equity instruments
|
-
|
2,490
|
-
|
-
|
2,490
|
-
|
2,490
|
Dividends paid
|
-
|
-
|
-
|
(509)
|
(509)
|
(415)
|
(924)
|
Coupons paid on other equity instruments
|
-
|
(639)
|
-
|
174
|
(465)
|
-
|
(465)
|
Redemption of preference shares
|
-
|
-
|
-
|
(479)
|
(479)
|
(860)
|
(1,339)
|
Treasury shares
|
-
|
-
|
14
|
(636)
|
(622)
|
-
|
(622)
|
Net equity impact of partial BAGL disposal
|
-
|
-
|
-
|
(359)
|
(359)
|
(3,462)
|
(3,821)
|
Other movements
|
-
|
2
|
7
|
8
|
17
|
(1)
|
16
|
Balance as at 31 December 2017
|
22,045
|
8,941
|
5,383
|
27,536
|
63,905
|
2,111
|
66,016
|
|
|
|
|
|
|
|
|
Year ended 31.12.16
|
|
|
|
|
|
|
|
Balance as at 1 January 2016
|
21,586
|
5,305
|
1,898
|
31,021
|
59,810
|
6,054
|
65,864
|
Profit after tax
|
-
|
457
|
-
|
1,434
|
1,891
|
346
|
2,237
|
Other comprehensive profit after tax for the period
|
-
|
-
|
3,433
|
(968)
|
2,465
|
3
|
2,468
|
Total comprehensive income net of tax from continuing
operations
|
-
|
457
|
3,433
|
466
|
4,356
|
349
|
4,705
|
Total comprehensive income net of tax from discontinued
operation
|
-
|
-
|
694
|
183
|
877
|
1,234
|
2,111
|
Total comprehensive income for the year
|
-
|
457
|
4,127
|
649
|
5,233
|
1,583
|
6,816
|
Issue of new ordinary shares
|
68
|
-
|
-
|
-
|
68
|
-
|
68
|
Issue of shares under employee share schemes
|
188
|
-
|
-
|
668
|
856
|
-
|
856
|
Issue and exchange of other equity instruments
|
-
|
1,132
|
-
|
-
|
1,132
|
-
|
1,132
|
Dividends paid
|
-
|
-
|
-
|
(757)
|
(757)
|
(575)
|
(1,332)
|
Coupons paid on other equity instruments
|
-
|
(457)
|
-
|
128
|
(329)
|
-
|
(329)
|
Redemption of preference shares
|
-
|
-
|
-
|
(417)
|
(417)
|
(1,170)
|
(1,587)
|
Treasury shares
|
-
|
-
|
26
|
(415)
|
(389)
|
-
|
(389)
|
Net equity impact of partial BAGL disposal
|
-
|
-
|
-
|
(349)
|
(349)
|
601
|
252
|
Other movements
|
-
|
12
|
-
|
3
|
15
|
(1)
|
14
|
Balance as at 31 December 2016
|
21,842
|
6,449
|
6,051
|
30,531
|
64,873
|
6,492
|
71,365
|
1
|
Details of called up share capital and share premium, other equity
instruments and other reserves are shown on pages
51-52.
|
2
|
Details of non-controlling interests are shown on page
47.
|
3
|
As a result of the early adoption of the own credit provisions of
IFRS 9 on 1 January 2017, own credit, which was previously recorded
in the income statement, is now recognised within other
comprehensive income. The cumulative unrealised own credit net loss
of £175m has therefore been reclassified from retained
earnings to a separate own credit reserve, within other reserves.
During the year ended 31 December 2017, a £4m loss (net of
tax) on own credit has been booked in the reserve.
|
Condensed consolidated cash flow statement
|
|
Year ended
|
Year ended
|
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Profit before tax
|
3,541
|
3,230
|
Adjustment for non-cash items
|
6,023
|
(15,355)
|
Changes in operating assets and liabilities
|
51,855
|
24,191
|
Corporate income tax paid
|
(708)
|
(780)
|
Net cash from operating activities
|
60,711
|
11,286
|
Net cash from investing activities
|
3,502
|
36,707
|
Net cash from financing activities
|
961
|
(1,317)
|
Effect of exchange rates on cash and cash equivalents
|
(4,773)
|
10,473
|
Net increase in cash and cash equivalents from continuing
operations
|
60,401
|
57,149
|
Net cash from discontinued operation
|
101
|
405
|
Net increase in cash and cash equivalents
|
60,502
|
57,554
|
Cash and cash equivalents at beginning of the period
|
144,110
|
86,556
|
Cash and cash equivalents at end of the period
|
204,612
|
144,110
|
Financial Statement Notes
1. Tax
The
effective tax rate of 63.3% is higher than the UK corporation tax
rate of 19.25% and higher than the effective tax rate for 2016 of
30.7%, primarily due to the impact of the Tax Cuts and Jobs Act
("US Tax Reform"), enacted on 22 December 2017, which reduced the
US federal corporate income tax rate from 35% to 21%. This has
resulted in a one-off tax charge as a result of the re-measurement
of the Group's US deferred tax assets in 2017. This downward
re-measurement of the Group's US DTAs as a result of the rate
reduction is partially offset by the increase in the value of
BBPLC's US branch DTAs as a result of BBPLC making a tax election
in the period to exclude the future profits and losses of its
overseas branches from UK taxation.
|
Assets
|
|
Liabilities
|
|
As at
31.12.17
|
As at
31.12.16
|
|
As at
31.12.17
|
As at
31.12.16
|
Current and deferred tax assets and liabilities
|
£m
|
£m
|
|
£m
|
£m
|
Current tax
|
482
|
561
|
|
(586)
|
(737)
|
Deferred tax
|
3,457
|
4,869
|
|
(44)
|
(29)
|
Total
|
3,939
|
5,430
|
|
(630)
|
(766)
|
|
As at
31.12.17
|
As at
31.12.16
|
Deferred tax assets and liabilities
|
£m
|
£m
|
Intermediate Holding Company (IHC) - US tax group
|
1,413
|
2,207
|
Barclays Bank PLC (US branch) - US tax group
|
1,234
|
1,766
|
Barclays PLC - UK tax group
|
492
|
575
|
Other
|
318
|
321
|
Deferred tax assets
|
3,457
|
4,869
|
Deferred tax liabilities
|
(44)
|
(29)
|
Net deferred tax
|
3,413
|
4,840
|
|
|
|
Analysis of net deferred tax
|
|
|
Temporary differences
|
2,817
|
4,337
|
Tax losses
|
596
|
503
|
Net deferred tax
|
3,413
|
4,840
|
2. Non-controlling interests
|
Profit attributable to
non-controlling interests
|
|
Equity attributable to
non-controlling interests
|
|
Year ended 31.12.17
|
Year ended 31.12.16
|
|
As at
31.12.17
|
As at
31.12.16
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays Bank PLC issued:
|
|
|
|
|
|
- Preference shares
|
242
|
340
|
|
1,838
|
2,698
|
- Upper tier 2 instruments
|
3
|
3
|
|
272
|
272
|
Barclays Africa Group Limited
|
140
|
402
|
|
-
|
3,507
|
Other non-controlling interests
|
4
|
3
|
|
1
|
15
|
Total
|
389
|
748
|
|
2,111
|
6,492
|
Equity
attributable to non-controlling interests decreased £4,381m to
£2,111m in 2017 driven by the sale of 33.7% of BAGL's issued
share capital and the redemption of preference shares issued by
BBPLC.
3. Earnings per share
|
Year ended
|
Year ended
|
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
(Loss)/profit attributable to ordinary equity holders of the parent
in respect of continuing and discontinued operations
|
(1,922)
|
1,623
|
Tax credit on profit after tax attributable to other equity
instrument holders
|
174
|
128
|
Total (loss)/profit attributable to
ordinary equity holders of the parent in respect of continuing and
discontinued operations
1
|
(1,748)
|
1,751
|
|
|
|
Continuing operations
|
|
|
Profit attributable to ordinary equity holders of the parent in
respect of continuing operations
|
413
|
1,434
|
Tax credit on profit after tax attributable to other equity
instrument holders
|
174
|
128
|
Profit attributable to equity holders of the parent in respect of
continuing operations
|
587
|
1,562
|
|
|
|
Discontinued operation
|
|
|
(Loss)/profit attributable to ordinary equity holders of the parent
in respect of discontinued operation
|
(2,335)
|
189
|
Dilutive impact of convertible options in respect of discontinued
operation
|
-
|
(1)
|
(Loss)/profit attributable to equity holders of the parent in
respect of discontinued operation including dilutive impact on
convertible options
|
(2,335)
|
188
|
|
|
|
(Loss)/profit attributable to equity holders of the parent in
respect of continuing and discontinued operations including
dilutive impact on convertible options
|
(1,748)
|
1,750
|
|
|
|
|
m
|
m
|
Basic weighted average number of shares in issue
|
16,996
|
16,860
|
Number of potential ordinary shares
|
288
|
184
|
Diluted weighted average number of shares
|
17,284
|
17,044
|
|
|
|
|
p
|
p
|
Basic (loss)/earnings per ordinary share
1
|
(10.3)
|
10.4
|
Basic earnings per ordinary share in respect of continuing
operations
1
|
3.5
|
9.3
|
Basic (loss)/earnings per ordinary share in respect of discontinued
operation
|
(13.8)
|
1.1
|
Diluted (loss)/earnings per ordinary share
1
|
(10.1)
|
10.3
|
Diluted earnings per ordinary share in respect of continuing
operations
1
|
3.4
|
9.2
|
Diluted (loss)/earnings per ordinary share in respect of
discontinued operation
|
(13.5)
|
1.1
|
1
|
The profit after tax attributable to other equity instrument
holders of £639m (2016: £457m) is offset by a tax credit
recorded in reserves of £174m (2016: £128m). The net
amount of £465m (2016: £329m), along with non-controlling
interests, is deducted from profit after tax in order to calculate
earnings per share and return on average tangible shareholders'
equity.
|
4. Dividends on ordinary shares
It is
Barclays' policy to declare and pay dividends on a semi-annual
basis. A final dividend in respect of 2017 of 2.0p per ordinary
share will be paid on 5 April 2018 to shareholders on the Share
Register on 2 March 2018 and accounted for as a distribution of
retained earnings in the year ending 31 December 2018. The
financial statements for 2017 include the following dividends paid
during the year:
|
Year ended 31.12.17
|
|
Year ended 31.12.16
|
|
Per share
|
Total
|
|
Per share
|
Total
|
Dividends paid during the period
|
p
|
£m
|
|
p
|
£m
|
Final dividend paid during period
|
2.0
|
339
|
|
3.5
|
588
|
Interim dividend paid during period
|
1.0
|
170
|
|
1.0
|
169
|
Total
|
3.0
|
509
|
|
4.5
|
757
|
5. Fair value of assets and liabilities
The
following table shows the Group's assets and liabilities that are
held at fair value disaggregated by valuation technique (fair value
hierarchy) and balance sheet classification:
Assets and liabilities held at fair value
|
Valuation technique using
|
|
Quoted market prices (Level 1)
|
Observable inputs
(Level 2)
|
Significant unobservable inputs
(Level 3)
|
Total
|
As at 31.12.17
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
63,925
|
47,858
|
1,977
|
113,760
|
Financial assets designated at fair value
|
4,347
|
104,187
|
7,747
|
116,281
|
Derivative financial instruments
|
3,786
|
228,549
|
5,334
|
237,669
|
Available for sale investments
|
22,841
|
30,571
|
395
|
53,807
|
Investment property
|
-
|
-
|
116
|
116
|
Assets included in disposal groups classified as held for
sale
1
|
-
|
-
|
29
|
29
|
Total assets
|
94,899
|
411,165
|
15,598
|
521,662
|
|
|
|
|
|
Trading portfolio liabilities
|
(20,905)
|
(16,442)
|
(4)
|
(37,351)
|
Financial liabilities designated at fair value
|
|
(173,238)
|
(480)
|
(173,718)
|
Derivative financial liabilities
|
(3,631)
|
(229,517)
|
(5,197)
|
(238,345)
|
Liabilities included in disposal groups classified as held for
sale
1
|
-
|
-
|
-
|
-
|
Total liabilities
|
(24,536)
|
(419,197)
|
(5,681)
|
(449,414)
|
|
|
|
|
|
As at 31.12.16
|
|
|
|
|
Trading portfolio assets
|
41,550
|
36,625
|
2,065
|
80,240
|
Financial assets designated at fair value
|
4,031
|
64,630
|
9,947
|
78,608
|
Derivative financial assets
|
5,261
|
332,819
|
8,546
|
346,626
|
Available for sale investments
|
21,218
|
36,551
|
372
|
58,141
|
Investment property
|
-
|
-
|
81
|
81
|
Assets included in disposal groups classified as held for
sale
1
|
6,754
|
8,511
|
6,009
|
21,274
|
Total assets
|
78,814
|
479,136
|
27,020
|
584,970
|
|
|
|
|
|
Trading portfolio liabilities
|
(20,205)
|
(14,475)
|
(7)
|
(34,687)
|
Financial liabilities designated at fair value
|
(70)
|
(95,121)
|
(840)
|
(96,031)
|
Derivative financial liabilities
|
(5,051)
|
(328,265)
|
(7,171)
|
(340,487)
|
Liabilities included in disposal groups classified as held for
sale
1
|
(397)
|
(5,224)
|
(6,201)
|
(11,822)
|
Total liabilities
|
(25,723)
|
(443,085)
|
(14,219)
|
(483,027)
|
1
|
Disposal groups held for sale and measured at fair value less cost
to sell are included in the fair value table.
|
6. Subordinated liabilities
|
Year ended
31.12.17
|
Year ended
31.12.16
|
Dated and undated subordinated liabilities
|
£m
|
£m
|
Balance as at 1 January
|
23,383
|
21,467
|
Issuances
|
3,041
|
1,457
|
Redemptions
|
(1,378)
|
(1,143)
|
Other
|
(1,220)
|
1,602
|
Balance as at 31 December
|
23,826
|
23,383
|
Issuances
totalling £3,041m were made up of $2,000m 4.836% Fixed Rate
Subordinated Callable Notes (£1,547m),
€
1,500m 2%
Fixed Rate Subordinated Callable Notes (£1,384m) and SGD 200m
3.75% Fixed Rate Resetting Subordinated Callable Notes
(£110m). Redemptions totalling £1,378m included
£133m 6.375% Undated Subordinated Notes, $1,556m 6.05% Fixed
Rate Subordinated Notes (£1,151m), $117m 7.434% Step-up
Callable Perpetual Reserve Capital Instruments (£87m) and
instruments issued by other subsidiaries (£7m). Other
movements included a decrease of £1,220m largely due to the
depreciation of period end USD against GBP.
7.
Provisions
|
As at
|
As at
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
UK customer redress:
|
|
|
- Payment Protection Insurance redress
|
1,606
|
1,979
|
- Other customer redress
|
639
|
712
|
Legal, competition and regulatory matters
|
435
|
455
|
Redundancy and restructuring
|
159
|
206
|
Undrawn contractually committed facilities and
guarantees
|
79
|
67
|
Onerous contracts
|
225
|
385
|
Sundry provisions
|
400
|
330
|
Total
|
3,543
|
4,134
|
Payment Protection Insurance (PPI) redress
As at
31 December 2017, Barclays had recognised cumulative provisions
totalling £9.2bn (December 2016: £8.4bn) against the cost
of PPI redress and associated processing costs, with utilisation of
£7.6bn (December 2016: £6.4bn), leaving a residual
provision of £1.6bn (December 2016: £2.0bn).
Through to 31 December 2017, 2.1m (December 2016: 1.8m) customer
initiated claims
1
had been received and processed. The volume of
claims received during 2017 increased 16% from 2016. This increase
was impacted by a Financial Conduct Authority (FCA) advertising
campaign launched in H217.
The
current provision reflects the estimate of costs of PPI redress
primarily relating to customer initiated complaints and on-going
remediation programmes, based on information at year end. This also
includes liabilities managed by third parties arising from
portfolios previously sold where Barclays remains liable, based on
information at year end.
As at
31 December 2017, the provision of £1.6bn represents Barclays'
best estimate of expected PPI redress reflecting the complaints
deadline implemented by the FCA of 29 August 2019. However, it is
possible the eventual outcome may differ from the current estimate.
We will continue to review the adequacy of provision level in
respect of the future impacts.
The PPI
provision is calculated using a number of key assumptions which
continue to involve significant modelling and management
judgement:
●
|
Customer
initiated claim volumes - claims received but not yet processed
plus an estimate of future claims initiated by customers, where the
volume is anticipated to cease after the PPI deadline
|
●
|
Average
claim redress - the expected average payment to customers for
upheld claims based on the type and age of the
policy/policies
|
●
|
Processing
cost per claim - the cost to Barclays of assessing and processing
each valid claim
|
These
assumptions remain subjective, mainly due to the uncertainty
associated with future claims levels, which include complaints
driven by claims management company (CMC) activity and the FCA
advertising campaigns.
The
following table details actual data through to 31 December 2017,
key forecast assumptions used in the provision calculation and a
sensitivity analysis illustrating the impact on the provision if
the future expected assumptions prove too high or too
low.
|
Cumulative actual
|
|
Sensitivity analysis increase/decrease
|
Assumption
|
to 31.12.17
|
Future expected
|
in provision
|
Customer initiated claims received and processed
1
|
2,130k
|
570k
|
50k = £104m
|
Average uphold rate per claim
2
|
87%
|
87%
|
1% = £11m
|
Average redress per valid claim
3
|
£2,036
|
£1,989
|
£100 = £50m
|
1
|
Total claims received directly by Barclays to date, including those
received via CMCs but excluding those for which no PPI policy
exists, and excluding responses to proactive mailing. The
sensitivity analysis has been calculated to show the impact a
50,000 increase or decrease in the number of customer initiated
claims would have on the provision level.
|
2
|
Average uphold rate per customer initiated claim received directly
by Barclays and proactive mailings, excluding those for which no
PPI policy exists. The sensitivity analysis has been calculated to
show the impact a 1% change in the average uphold rate per claim
would have on the provision level.
|
3
|
Average redress stated on a per policy basis for future customer
initiated complaints received directly by Barclays. The sensitivity
analysis has been calculated to show the impact a £100
increase or decrease in the average redress per claim would have on
the provision level.
|
8. Retirement benefits
As at
31 December 2017, the Group's IAS 19 pension surplus across all
schemes was £0.7bn (2016: £0.4bn deficit). The UK
Retirement Fund (UKRF), which is the Group's main scheme, had a
surplus of £1.0bn (2016: £27m deficit). The movement for
the UKRF was driven by payment of deficit contributions, higher
than assumed asset returns, updated mortality assumptions and lower
expected future price inflation, offset by a decrease in the
discount rate, transfers out of the scheme and the introduction of
an assumption for future transfers out.
UKRF funding valuations
The
scheme actuary prepares an annual update of the UKRF funding
position in addition to the full triennial actuarial valuation. The
latest annual update was carried out as at 30 September 2017 and
showed a deficit of £4.8bn and a funding level of
86.8%.
The
last triennial actuarial valuation of the UKRF had an effective
date of 30 September 2016 and was completed in July 2017. This
valuation showed a funding deficit of £7.9bn and a funding
level of 81.5%.
The
improvement in funding position between 30 September 2016 and 30
September 2017 was largely due to payment of deficit contributions,
higher than assumed asset returns, higher government bond yields
and transfers out of the scheme.
The
recovery plan agreed as part of the 2016 triennial actuarial
valuation requires BBPLC to pay deficit contributions of
£0.5bn per annum between 2018 and 2020, followed by
£1.0bn per annum between 2021 and 2026. The deficit reduction
contributions are in addition to the regular contributions to meet
the Group's share of the cost of benefits accruing over each year.
The agreement with the UKRF Trustee also takes into account the
changes to the Group structure that will be implemented as a result
of ring-fencing
1
. BBPLC will remain
as the principal employer of the UKRF. Additional support measures
agreed include a collateral arrangement, joint participation of
BBUKPLC until 2025, and support from Barclays PLC should BBPLC not
pay the deficit contributions to the UKRF.
The
next triennial actuarial valuation of the UKRF is due to be
completed in 2020 with an effective date of 30 September
2019.
1
|
Refer to page 204 of the Annual Report for further information on
structural reform.
|
9. Called up share capital
Called
up share capital comprised of 17,060m (2016: 16,963m) ordinary
shares of 25p each. The increase was due to the issuance of 46m
(2016: 116m) shares under employee share schemes and a further 51m
(2016: 42m) issued as part of the Barclays PLC Scrip Dividend
Programme.
10. Other equity instruments
Other
equity instruments of £8,941m (2016: £6,449m) included
AT1 securities issued by Barclays PLC. The increase was primarily
due to two issuances of GBP AT1 securities (December 2016: one
issuance of USD AT1 securities), with a principal amount of
£2.5bn (December 2016: £1.1bn).
The AT1
securities are perpetual securities with no fixed maturity and are
structured to qualify as AT1 instruments under CRD IV.
All AT1
securities will be converted into ordinary shares of Barclays PLC,
at a pre-determined price, should the fully loaded CET1 ratio of
Barclays PLC fall below 7.0%.
11. Other reserves
|
As at
|
As at
|
31.12.17
|
31.12.16
|
£m
|
£m
|
Currency translation reserve
|
3,054
|
3,051
|
Available for sale reserve
|
364
|
(74)
|
Cash flow hedging reserve
|
1,161
|
2,105
|
Own credit reserve
|
(179)
|
-
|
Other reserves and treasury shares
|
983
|
969
|
Total
|
5,383
|
6,051
|
Currency translation reserve
As at
31 December 2017 there was a credit balance of £3,054m (2016:
£3,051m credit) in the currency translation reserve. The
movement in the credit balance of £3m (2016: £3,674m
credit) principally reflected the depreciation of period end USD
against GBP, offset by a £1,566m net loss (2016: £101m
net gain) from recycling of the currency translation reserve to the
income statement. This included a £1,377m loss on the
recycling of the currency translation reserve associated with the
disposal of BAGL.
Available for sale reserve
As at
31 December 2017 there was a credit balance of £364m (2016:
£74m debit) in the available for sale reserve. The
increase of £438m (2016: £391m decrease) was primarily
due to £340m of gains from changes in fair value on BAGL's
remaining shares held as AFS. The remaining movements mostly relate
to changes in fair value of government bonds predominantly held in
the liquidity pool and related hedging. There was also £291m
of net gains transferred to the income statement. A tax charge of
£27m was recognised in the period relating to these
items.
Cash flow hedging reserve
As at
31 December 2017, there was a credit balance of £1,161m (2016:
£2,105m credit) in the cash flow hedging reserve. The decrease
of £944m (2016: £844m increase) principally reflected a
£621m decrease in the fair value of interest rate swaps held
for hedging purposes as interest rate forward curves increased,
£632m of gains recycled to the income statement in line with
when the hedged item affects profit or loss and a tax credit of
£321m.
Own credit reserve
Changes
in own credit in respect of debt instruments recognised at fair
value through the income statement under the fair value option are
recognised in the Group's other comprehensive income from 1 January
2017 upon the early adoption of the own credit provisions of IFRS
9.
As at
31 December 2017, the amount of own credit recognised in the
Group's other comprehensive income was a debit balance of
£179m. Upon adoption of IFRS 9, an opening debit balance of
£175m was recognised, with a further £4m loss (net of
tax) recorded during 2017.
Other reserves and treasury shares
As at 31 December 2017 there was a credit balance of £983m
(2016: £969m credit) in other reserves and treasury
shares.
The increase principally
reflected £329m (2016: £166m)
transferred from treasury shares reflecting the vesting of deferred
share based payments, partially offset by £315m (2016:
£140m) net purchases of treasury shares held for the purposes
of employee share schemes.
12. Non-current assets held for sale and associated
liabilities
|
As at
|
As at
|
|
31.12.17
|
31.12.16
|
Assets included in disposal groups classified as held for
sale
|
£m
|
£m
|
Cash and balances at central banks
|
-
|
2,930
|
Items in the course of collection from other banks
|
-
|
570
|
Trading portfolio assets
|
-
|
3,084
|
Financial assets designated at fair value
|
3
|
6,984
|
Derivative financial instruments
|
-
|
1,992
|
Financial investments
|
-
|
7,737
|
Loans and advances to banks
|
-
|
1,666
|
Loans and advances to customers
|
1,164
|
43,504
|
Prepayments, accrued income and other assets
|
-
|
696
|
Investments in associates and joint ventures
|
-
|
87
|
Property, plant and equipment
|
26
|
954
|
Goodwill
|
-
|
997
|
Intangible assets
|
-
|
570
|
Current and deferred tax assets
|
-
|
149
|
Retirement benefit assets
|
-
|
33
|
Total
|
1,193
|
71,953
|
Balance of impairment unallocated under IFRS 5
|
-
|
(499)
|
Total assets classified as held for sale
|
1,193
|
71,454
|
|
|
|
Liabilities included in disposal groups classified as held for
sale
|
|
|
Deposits from banks
|
-
|
2,149
|
Items in the course of collection due to banks
|
-
|
373
|
Customer accounts
|
-
|
42,431
|
Repurchase agreements and other similar secured
borrowing
|
-
|
597
|
Trading portfolio liabilities
|
-
|
388
|
Financial liabilities designated at fair value
|
-
|
7,325
|
Derivative financial instruments
|
-
|
1,611
|
Debt securities in issue
|
-
|
7,997
|
Subordinated liabilities
|
-
|
934
|
Accruals, deferred income and other liabilities
|
-
|
1,180
|
Provisions
|
-
|
103
|
Current and deferred tax liabilities
|
-
|
162
|
Retirement benefit liabilities
|
-
|
42
|
Total liabilities classified as held for sale
|
-
|
65,292
|
|
|
|
Net assets classified as held for sale
|
1,193
|
6,162
|
Expected contributions to BAGL
|
-
|
866
|
Disposal group post contribution
|
1,193
|
7,028
|
During the year, a number of disposal groups classified as held for
sale were disposed of. The £70.3bn decrease in assets was
driven by the disposals of BAGL (£65.1bn), the French retail
business (£4.0bn), the Egypt business (£1.0bn), Barclays
Vida Pensiones (£0.7bn) and the Zimbabwe business
(£0.4bn). The associated liabilities of the above disposal
groups were also sold in the year.
Discontinued Operation
On 1 March 2016, Barclays announced its intention to reduce the
Group's 62.3% interest in BAGL to a level which would permit
Barclays to deconsolidate BAGL from a regulatory perspective and,
prior to that, from an accounting perspective. From this date, BAGL
was treated as a discontinued operation. On 5 May 2016, Barclays
sold 12.2% of the Group's interest in BAGL and on 1 June 2017
Barclays sold a further 33.7% of BAGL's issued share capital,
resulting in the accounting deconsolidation of BAGL from the
Barclays Group. At this time, Barclays' holding in BAGL technically
met the requirements to be treated as an Associate. However,
following a revision of its governance rights in July 2017 and the
difference being immaterial, the holding was treated as an AFS
asset from the transaction date.
In Q317 Barclays contributed 1.5% of BAGL's ordinary shares to a
Black Economic Empowerment scheme, resulting in Barclays accounting
for 126 million ordinary shares in BAGL, representing 14.9% of
BAGL's issued share capital. The retained investment is reported as
an AFS asset, in the Head Office segment, with Barclays' share of
BAGL's dividend recognised in the Head Office income
statement.
Prior
to the disposal of shares on 1 June 2017, BAGL met the requirements
for presentation as a discontinued operation. As such, the results,
which have been presented as the profit after tax and
non-controlling interest in respect of the discontinued operation
on the face of the Group income statement, are analysed in the
income statement below. The income statement, statement of other
comprehensive income and cash flow statement below represent five
months of results as a discontinued operation to 31 May 2017,
compared to the full year ended 31 December 2016.
Barclays Africa disposal group income statement
|
Year ended
|
Year ended
|
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Net interest income
|
1,024
|
2,169
|
Net fee and commission income
|
522
|
1,072
|
Net trading income
|
149
|
281
|
Net investment income
|
30
|
45
|
Net premiums from insurance contracts
|
161
|
362
|
Other (expenses)/income
|
(16)
|
8
|
Total income
|
1,870
|
3,937
|
Net claims and benefits incurred on insurance
contracts
|
(84)
|
(191)
|
Total income net of insurance claims
|
1,786
|
3,746
|
Credit impairment charges and other provisions
|
(177)
|
(445)
|
Net operating income
|
1,609
|
3,301
|
Staff costs
|
(586)
|
(1,186)
|
Administration and general expenses
1
|
(1,634)
|
(1,224)
|
Operating expenses
|
(2,220)
|
(2,410)
|
Share of post-tax results of associates and joint
ventures
|
5
|
6
|
(Loss)/profit before tax
|
(606)
|
897
|
Tax charge
|
(154)
|
(306)
|
(Loss)/profit after tax
|
(760)
|
591
|
|
|
|
Attributable to:
|
|
|
Equity holders of the parent
|
(900)
|
189
|
Non-controlling interests
|
140
|
402
|
(Loss)/profit after
tax
2
|
(760)
|
591
|
1
|
Included impairment of £1,090m (2016: £nil).
|
2
|
Total loss in respect of the discontinued operation was
£2,195m which included the £60m loss on sale and the
£1,375m loss on recycling of other comprehensive loss on
reserves.
|
Statement of other comprehensive income from discontinued
operation
|
Year ended
|
Year ended
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Available for sale assets
|
(3)
|
(9)
|
Currency translation reserves
|
(38)
|
1,451
|
Cash flow hedge reserves
|
19
|
89
|
Other comprehensive (loss)/income, net of tax from discontinued
operation
|
(22)
|
1,531
|
Cash flow statement from discontinued operation
|
Year ended
|
Year ended
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Net cash flows from operating activities
|
540
|
1,164
|
Net cash flows from investing activities
|
(245)
|
(691)
|
Net cash flows from financing activities
|
(165)
|
(105)
|
Effect of exchange rates on cash and cash equivalents
|
(29)
|
37
|
Net increase in cash and cash equivalents
|
101
|
405
|
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 business' 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
Barclays PLC and its subsidiaries (the Group). They also reflect an
important aspect of the way in which operating targets are defined
and performance is monitored by Barclays' management.
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 divided by customer accounts calculated for Barclays
UK and Barclays International, excluding investment banking
balances other than interest earning lending. This excludes
particular liabilities issued by the retail businesses that have
characteristics comparable to retail deposits (for example
structured Certificates of Deposit and retail bonds), which are
included within debt securities in issue. The components of the
calculation have been included on page 30.
|
Period
end allocated tangible equity
|
Allocated tangible
equity is calculated as 12.0% (2016: 11.5%) of CRD IV fully loaded
risk weighted assets for each business, adjusted for CRD IV fully
loaded capital deductions, excluding goodwill and intangible
assets, reflecting the assumptions the Group uses for capital
planning purposes. Head Office allocated tangible equity represents
the difference between the 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
|
Statutory profit
after tax attributable to ordinary shareholders, including 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 pages
56-57.
|
Return
on average allocated tangible equity
|
Statutory profit
after tax attributable to ordinary shareholders, including 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
pages 56-57.
|
Cost:
income ratio
|
Operating expenses
divided by total income.
|
Operating expenses
excluding litigation and conduct
|
Operating expenses
excluding charges for litigation and conduct. The components of the
calculation have been included on page 57.
|
Loan
loss rate
|
Quoted
in basis points and represents total loan impairment divided by
gross loans and advances to banks and customers held at amortised
cost at the balance sheet date. The components of the calculation
have been included on page 26.
|
Net
interest margin
|
Net
interest income divided by the sum of average customer assets. The
components of the calculation have been included on page
22.
|
Tangible net asset
valueper 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 57.
|
Returns
Return
on average tangible equity is calculated as profit for the period
attributable to ordinary equity holders of the parent (adjusted for
the tax credit recorded in reserves in respect of interest payments
on other equity instruments) divided by average tangible equity for
the period, excluding non-controlling and other equity interests
for businesses. Allocated tangible equity has been calculated as
12.0% (2016: 11.5%) of CRD IV fully loaded RWAs for each business,
adjusted for CRD IV fully loaded capital deductions, excluding
goodwill and intangible assets, reflecting the assumptions the
Group uses for capital planning purposes. Head Office average
allocated tangible equity represents the difference between the
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
instruments
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
For the year ended 31.12.17
|
£m
|
£m
|
£m
|
|
£bn
|
|
%
|
Barclays UK
|
853
|
40
|
893
|
|
9.1
|
|
9.8
|
Corporate and Investment Bank
|
167
|
102
|
269
|
|
24.0
|
|
1.1
|
Consumer, Cards and Payments
|
680
|
18
|
698
|
|
4.2
|
|
16.7
|
Barclays International
|
847
|
120
|
967
|
|
28.1
|
|
3.4
|
Head Office
1
|
(868)
|
4
|
(864)
|
|
9.3
|
|
n/m
|
Barclays Non-Core
|
(419)
|
10
|
(409)
|
|
2.4
|
|
n/m
|
Africa Banking discontinued operation
1
|
(2,335)
|
-
|
(2,335)
|
|
n/m
|
|
n/m
|
Barclays Group
|
(1,922)
|
174
|
(1,748)
|
|
48.9
|
|
(3.6)
|
|
|
|
|
|
|
|
|
For the year ended 31.12.16
|
|
|
|
|
|
|
|
Barclays UK
|
828
|
29
|
857
|
|
8.9
|
|
9.6
|
Corporate and Investment Bank
|
1,270
|
72
|
1,342
|
|
21.9
|
|
6.1
|
Consumer, Cards and Payments
|
1,142
|
11
|
1,153
|
|
3.6
|
|
31.4
|
Barclays International
|
2,412
|
83
|
2,495
|
|
25.5
|
|
9.8
|
Head Office
1
|
110
|
(1)
|
109
|
|
6.5
|
|
n/m
|
Barclays Non-Core
|
(1,916)
|
17
|
(1,899)
|
|
7.8
|
|
n/m
|
Africa Banking discontinued operation
1
|
189
|
-
|
189
|
|
n/m
|
|
n/m
|
Barclays Group
|
1,623
|
128
|
1,751
|
|
48.7
|
|
3.6
|
1
|
Average allocated tangible equity for Africa Banking is included
within Head Office.
|
Performance measures excluding litigation and conduct, losses
related to Barclays' sell down of BAGL and the re-measurement of US
DTAs
|
|
Year ended
31.12.17
£m
|
Barclays Group profit attributable to
ordinary equity holders of the parent
1
|
|
Barclays Group profit attributable to ordinary equity
holders
|
(1,748)
|
Impact of litigation and conduct
|
1,150
|
Impact of impairment of Barclays' holding in BAGL
|
1,008
|
Impact of loss on the sale of BAGL
|
1,435
|
Net impact of the re-measurement of US DTAs
|
901
|
Barclays Group profit attributable to ordinary equity holders of
the parent excluding litigation and conduct, losses related to
Barclays' sell down of BAGL and the re-measurement of US
DTAs
|
2,746
|
|
|
Barclays Group return on average tangible shareholders'
equity
|
|
Barclays Group average tangible shareholders' equity
(£bn)
|
48.9
|
|
|
Barclays Group return on average tangible shareholders' equity
excluding litigation and conduct, losses related to Barclays' sell
down of BAGL and the re-measurement of US DTAs
|
5.6%
|
|
|
Barclays Group basic earnings per ordinary share
|
|
Basic weighted average number of shares (m)
|
16,996
|
|
|
Barclays Group basic earnings per ordinary share excluding
litigation and conduct, losses related to Barclays' sell down of
BAGL and the re-measurement of US DTAs
|
16.2p
|
1
|
The profit after tax attributable to other equity instrument
holders of £639m (2016: £457m) is offset by a tax credit
recorded in reserves of £174m (2016: £128m). The net
amount of £465m (2016: £329m), along with non-controlling
interests, is deducted from profit after tax in order to calculate
earnings per share and return on average tangible shareholders'
equity.
|
Operating expenses excluding litigation and conduct
|
|
|
|
|
Year ended
|
Year ended
|
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Barclays Group operating expenses
|
(15,456)
|
(16,338)
|
Impact of litigation and conduct
|
1,207
|
1,363
|
Barclays Group operating expenses excluding litigation and
conduct
|
(14,249)
|
(14,975)
|
Tangible net asset value
|
As at
|
As at
|
|
31.12.17
|
31.12.16
|
|
£m
|
£m
|
Total equity excluding non-controlling interests
|
63,905
|
64,873
|
Other equity instruments
|
(8,941)
|
(6,449)
|
Goodwill and intangibles
1
|
(7,849)
|
(9,245)
|
Tangible shareholders' equity excluding non-controlling interests
attributable to ordinary shareholders of the parent
|
47,115
|
49,179
|
|
|
|
|
m
|
m
|
Shares in issue
|
17,060
|
16,963
|
|
|
|
|
p
|
p
|
Tangible net asset value per share
|
276
|
290
|
1
|
Comparative figure for 2016 included goodwill and intangibles in
relation to Africa Banking.
|
Shareholder Information
Results timetable
1
|
Date
|
Ex-dividend date
|
1 March 2018
|
Dividend record date
|
2 March 2018
|
Scrip reference share price set and made available to
shareholders
|
8 March 2018
|
Cut off time of 4.30pm (UK time) for the receipt of Mandate Forms
or Revocation Forms (as applicable)
|
16 March 2018
|
Dividend payment date/first day of dealing in new
shares
|
5 April 2018
|
Q1 2018 Results Announcement
|
26 April 2018
|
|
|
For qualifying US and Canadian resident ADR holders, the final
dividend of 2.0p per ordinary share becomes 8.0p per ADS
(representing four shares). The ex-dividend, dividend record and
dividend payment dates for ADR holders are as shown
above.
|
|
Year ended
|
Year ended
|
|
Exchange rates
2
|
31.12.17
|
31.12.16
|
% Change
3
|
Period end - USD/GBP
|
1.35
|
1.23
|
10
|
Average - USD/GBP
|
1.29
|
1.36
|
(5)
|
3 month average - USD/GBP
|
1.33
|
1.24
|
7
|
Period end - EUR/GBP
|
1.13
|
1.17
|
(3)
|
Average - EUR/GBP
|
1.14
|
1.23
|
(7)
|
3 month average - EUR/GBP
|
1.13
|
1.15
|
(2)
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Share price data
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Barclays PLC (p)
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203.10
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223.45
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Barclays PLC number of shares (m)
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17,060
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16,963
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For further information please contact
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Investor relations
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Media relations
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Kathryn McLeland +44 (0) 20 7116 4943
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Thomas Hoskin +44 (0) 20 7116 4755
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More information on Barclays can be found on our website:
home.barclays.
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Registered office
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1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
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Registrar
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Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
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Tel: 0371 384 2055
4
from the UK or +44 121 415 7004 from
overseas.
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1
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Note that these dates are provisional and subject to change. Any
changes to the Scrip Dividend Programme dates will be made
available at home.barclays/dividends.
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2
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The average rates shown above are derived from daily spot rates
during the year.
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3
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The change is the impact to GBP reported information.
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4
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Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding UK
public holidays in England and Wales.
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