SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BARCLAYS
PLC
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(Registrant)
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Date:
April 28, 2022
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By: /s/
Garth Wright
--------------------------------
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Garth
Wright
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Assistant
Secretary
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Barclays PLC
Q1 2022 Results Announcement
31 March 2022
Notes
This document contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended).
The terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the three months ended 31 March 2022 to the
corresponding three months of 2021 and balance sheet analysis as at
31 March 2022 with comparatives relating to 31 December 2021 and 31
March 2021. 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.
The information in this announcement, which was approved by the
Board of Directors on 27 April 2022, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2021, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These results will be furnished on Form 6-K with the US Securities
and Exchange Commission (SEC) as soon as practicable following
their publication. Once furnished with the SEC, a copy of the Form
6-K will be available from the SEC's website
at www.sec.gov.
Barclays is a frequent issuer in the debt capital markets and
regularly meets with investors via formal road-shows and other ad
hoc meetings. Consistent with its usual practice, Barclays expects
that from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the 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 32 to 36 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. Forward-looking statements can be made in writing
but also may be made verbally by members of the management of the
Group (including, without limitation, during management
presentations to financial analysts) in connection with this
document. 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, capital, leverage and other
regulatory ratios, capital distributions (including dividend
pay-out ratios and expected payment strategies), projected levels
of growth in the banking and financial markets, projected costs or
savings, any commitments and targets (including, without
limitation, environmental, social and governance (ESG) commitments
and targets), estimates of capital expenditures, plans and
objectives for future operations, projected employee numbers, IFRS
impacts and other statements that are not historical fact. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. The
forward-looking statements speak only as at the date on which they
are made. Forward-looking statements may be affected by a number of
factors, including, without limitation: changes in legislation, the
development of standards and interpretations under IFRS, including
evolving practices with regard to the interpretation and
application of accounting and regulatory standards, emerging and
developing ESG reporting 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, the Group's ability along
with governments and other stakeholders to measure, manage and
mitigate the impacts of climate change effectively, environmental,
social and geopolitical risks, and the impact of competition. In
addition, factors including (but not limited to) the following may
have an effect: capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions; the effects of
any volatility in credit markets; market related risks such as
changes in interest rates and foreign exchange rates; effects of
changes in valuation of credit market exposures; changes in
valuation of issued securities; volatility in capital markets;
changes in credit ratings of any entity within the Group or any
securities issued by such entities; the direct and indirect
consequences of the Russia-Ukraine War on European and global
macroeconomic conditions, political stability and financial
markets; direct and indirect impacts of the coronavirus (COVID-19)
pandemic; instability as a result of the UK's exit from the
European Union (EU), the effects of the EU-UK Trade and Cooperation
Agreement and the disruption that may subsequently result in the UK
and globally; the risk of cyber-attacks, information or security
breaches or technology failures on the Group's reputation, business
or operations; 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 financial position, future results, capital distributions,
capital, leverage or other regulatory ratios or other financial and
non-financial metrics or performance measures or ability to meet
commitments and targets may differ materially from the statements
or 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 Barclays
PLC's filings with the SEC (including, without limitation, Barclays
PLC's Annual Report on Form 20-F for the fiscal year ended 31
December 2021), which are available on the SEC's website
at www.sec.gov.
Subject to Barclays' obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without
limitation, the UK and the US), 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
Barclays delivered a profit before tax of £2.2bn including
£0.5bn of litigation and conduct charges, and a return on
tangible equity (RoTE) of 11.5%
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C. S. Venkatakrishnan, Group Chief Executive,
commented
"A strong Q1 performance demonstrated
Barclays' ability to deliver broad-based income growth across all
operating businesses. Group income was up 10% to £6.5bn,
alongside profit before tax of £2.2bn and a RoTE of 11.5%. Our
performance includes the relevant costs1 relating
to the over-issuance of securities in the US and customer
remediation of a legacy loan portfolio. Our income growth was
driven partly by Global Markets, which has been helping clients
navigate ongoing market volatility caused by geopolitical and
economic challenges including the devastating war in Ukraine, and
by the impact of higher interest rates in the US and
UK.
We remain focused on the impact higher prices are having on our
customers and our small business and corporate clients, all of whom
are facing far harder conditions this year as a result of
inflation, supply chain issues and higher energy costs. We will
support them through this difficult period wherever we can, and
support the wider economy just as we did through the COVID-19
pandemic.
Our diversified income streams, focus on costs and a Common Equity
Tier 1 (CET1) ratio of 13.8% provide a strong platform to deliver
our target of a greater than 10% RoTE for 2022. We remain focused
on our three strategic priorities as the year progresses:
delivering next-generation, digitised consumer financial services,
producing sustainable growth in the Corporate and Investment Bank
(CIB), and capturing opportunities as we transition to a low-carbon
economy."
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Key financial metrics:
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Income
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Cost: income ratio
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Profit before tax
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RoTE
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EPS
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CET1
ratio
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TNAV per share
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Q122
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£6.5bn
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63%
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£2.2bn
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11.5%
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8.4p
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13.8%
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294p
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Q122 performance1:
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Attributable profit was £1.4bn (Q121:
£1.7bn) including
litigation and conduct charges net of tax of
£0.4bn
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Group income was £6.5bn (Q121: £5.9bn) up 10%
year-on-year
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-
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Strong CIB income: strong
FICC and Equities performance with higher levels of activity as we
supported our clients through a period of market volatility, more
than offsetting weaker Investment Banking fees driven by a reduced
fee pool2
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Consumer and payments businesses recovering: robust UK mortgage lending, positive trends
in UK and US consumer spending and payments volumes, and tailwind
from rising rates
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Costs impacted by litigation and conduct
charges: total operating
expenses of £4.1bn (Q121: £3.6bn) included litigation and
conduct charges of £0.5bn relating to the over-issuance of
securities by Barclays Bank PLC in the US and customer remediation
costs relating to a legacy loan portfolio
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Group costs excluding litigation and conduct were £3.6bn, up
1% year-on-year
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Credit impairment charges: £0.1bn charge (Q121: £0.1bn)
driven by low delinquencies and a benign credit environment, with
unsecured lending provision levels remaining appropriate in light
of inflationary headwinds
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Capital: CET1 ratio of 13.8%
(December 2021: 15.1%) and tangible net asset value (TNAV) per
share of 294p (December 2021: 291p)
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Outlook:
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Returns: Barclays
continues to target a RoTE of greater than 10% in
2022
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Income: Barclays'
diversified income streams position the Group well for the current
economic and market environment and rising interest
rates
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Costs: given £0.5bn
of litigation and conduct charges in Q122 and current expectations
for inflation and performance costs, Barclays now expects FY22
total operating expenses to be around
£15.0bn3
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Impairment: acknowledging
geopolitical uncertainty and cost of living pressures, the
impairment charge is expected to remain below pre-pandemic levels
in coming quarters given reduced unsecured lending balances and
appropriate coverage ratios
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Capital: Barclays
continues to target a CET1 ratio within the range of
13-14%
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Capital returns: Barclays'
capital distribution policy incorporates a progressive ordinary
dividend, supplemented as appropriate, including with share
buybacks. Barclays remains committed to the share buyback programme
and the intention would be to launch it as soon as practicable
following resolution of filing requirements being reached with the
SEC and the appropriate 20-F filings having been made. See
Supplementary Information on pages 30 to 31 for further
details
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1
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To reflect the over-issuance of US securities under the Barclays
Bank PLC US Shelf, 2021 comparatives have been restated. See Basis
of preparation on page 31 for further details.
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2
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Data source: Dealogic for the period covering 1 January to 31 March
2022.
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3
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Group cost outlook is based on an average USD/GBP FX rate of 1.31
during 2022 and subject to foreign currency movements.
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Barclays Group results
for the three months ended
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31.03.22
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31.03.211
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£m
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£m
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% Change
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Net interest income
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2,341
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1,851
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26
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Net fee, commission and other income
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4,155
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4,049
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3
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Total income
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6,496
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5,900
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10
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Credit impairment charges
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(141)
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(55)
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Net operating income
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6,355
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5,845
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9
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Operating costs
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(3,588)
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(3,545)
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(1)
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Litigation and conduct
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(523)
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(33)
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Total operating expenses
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(4,111)
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(3,578)
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(15)
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Other net (expenses)/income
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(10)
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132
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Profit before tax]
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2,234
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2,399
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(7)
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Tax charge
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(614)
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(496)
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(24)
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Profit after tax
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1,620
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1,903
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(15)
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Non-controlling interests
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(1)
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(4)
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75
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Other equity instrument holders
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(215)
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(195)
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(10)
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Attributable profit
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1,404
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1,704
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(18)
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Performance measures
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Return on average tangible shareholders' equity
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11.5%
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14.7%
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Average tangible shareholders' equity (£bn)
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48.8
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46.5
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Cost: income ratio
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63%
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61%
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Loan loss rate (bps)
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15
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6
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Basic earnings per share
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8.4p
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9.9p
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Basic weighted average number of shares (m)
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16,682
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17,293
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(4)
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Period end number of shares (m)
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16,762
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17,223
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(3)
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As at 31.03.22
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Restated2
As at 31.12.21
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As at 31.03.21
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Balance sheet and capital management
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£bn
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£bn
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£bn
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Loans and advances at amortised cost
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371.7
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361.5
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345.8
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Loans and advances at amortised cost impairment coverage
ratio
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1.5%
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1.6%
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2.2%
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Total assets
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1,496.1
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1,384.3
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1,379.7
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Deposits at amortised cost
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546.5
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519.4
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498.8
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Tangible net asset value per share
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294p
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291p
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267p
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Common equity tier 1 ratio
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13.8%
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15.1%
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14.6%
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Common equity tier 1 capital
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45.3
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47.3
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45.9
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Risk weighted assets
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328.8
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314.1
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313.4
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UK leverage ratio
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5.0%
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5.2%
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5.0%
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UK leverage exposure
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1,123.5
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1,137.9
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1,145.4
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Average UK leverage ratio
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4.8%
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4.9%
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4.9%
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Average UK leverage exposure
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1,179.4
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1,229.0
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1,174.9
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Funding and liquidity
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Group liquidity pool (£bn)
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320
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291
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290
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Liquidity coverage ratio
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159%
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168%
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161%
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Loan: deposit ratio
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68%
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70%
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69%
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1
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The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
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2
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31 December 2021 financial and capital metrics have been restated
to reflect the over-issuance of US securities under the Barclays
Bank PLC US Shelf. See Basis of preparation on page 31 for further
details.
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Group Finance Director's Review
Over-issuance of US securities under the Barclays Bank PLC US
Shelf: Barclays has a
provision of £540m at Q122 relating to this matter, £320m
(post-tax impact of £240m) of which was recognised in Q122 and
£220m (post-tax impact of £170m) recognised in 2021, see
Basis of preparation on page 31 for further
details.
Group performance
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Barclays' diversified model delivered a profit before tax of
£2,234m (Q121: £2,399m), RoTE of 11.5% (Q121: 14.7%), and
earnings per share (EPS) of 8.4p (Q121: 9.9p)
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●
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Total income increased to £6,496m (Q121: £5,900m).
Barclays UK income increased 5%. Barclays International income
increased 10%, with CIB income up 10% and Consumer, Cards and
Payments (CC&P) income up 10%
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●
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Credit impairment charges of £141m (Q121: £55m) were
driven by ongoing flows to delinquency in unsecured lending.
Coverage levels remained materially in line with Q421 and were
considered appropriate having been assessed against rising
inflation and affordability headwinds
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●
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Total operating expenses increased to £4,111m (Q121:
£3,578m) due to litigation and conduct charges of £523m
including a provision in CIB of £320m (post-tax impact of
£240m) relating to the over-issuance of securities by Barclays
Bank PLC in the US and higher customer remediation costs relating
to a legacy loan portfolio in CC&P. This resulted in a cost:
income ratio of 63% (Q121: 61%). Costs excluding litigation and
conduct increased 1% to £3,588m, reflecting continued
investment and business growth, partially offset by lower
performance costs and efficiency savings
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●
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The effective tax rate (ETR) was 27.5% (Q121: 20.7%). The tax
charge included a £346m charge recognised for the
re-measurement of the Group's UK deferred tax assets (DTAs) due to
the enactment of legislation in Q122 which will result in the UK
banking surcharge rate being reduced from 8% to 3% effective from 1
April 2023 (the ETR excluding the impact of this downward
re-measurement of UK DTAs was 12.0%). Tax credits relating to
adjustments in respect of prior years partially offset the impact
of the downward UK DTA re-measurement
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●
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Attributable profit was £1,404m (Q121: £1,704m) including
litigation and conduct charges net of tax of
£405m
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●
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Total assets increased to £1,496bn (December 2021:
£1,384bn) primarily due to an increase in client and trading
activity, and growth in the liquidity pool
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●
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TNAV per share increased to 294p (December 2021:
291p1)
primarily reflecting 8.4p of EPS, partially offset by net negative
reserve movements driven by higher interest
rates
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Barclays UK
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●
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Profit before tax increased to £594m (Q121: £460m). RoTE
was 15.6% (Q121: 12.0%) reflecting the resilience of the business
which is well positioned within the current UK operating
environment
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●
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Total income increased 5% to £1,649m. Net interest income
increased 5% to £1,339m with a net interest margin of 2.62%
(Q121: 2.54%) primarily driven by the rising interest rate
environment in the UK. Net fee, commission and other income
increased 5% to £310m
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|
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-
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Personal Banking income increased 11% to £1,022m, driven by
rising interest rates and supported by the benefit of strong 2021
mortgage origination
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|
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-
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Barclaycard Consumer UK income decreased 12% to £276m as
higher transaction based revenues from improved customer spend
volumes were more than offset by lower interest earning lending
(IEL) balances. Lower IEL balances were impacted by higher customer
repayments and reduced borrowing
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-
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Business Banking income increased 4% to £351m driven by rising
interest rates alongside improved transaction based revenues,
partially offset by lower government scheme lending income as
repayments continue
|
|
●
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Credit impairment charges decreased 38% to £48m reflecting
lower unsecured lending balances and lower delinquency rates. As at
31 March 2022, 30 and 90 day arrears rates in UK cards were 1.0%
(Q121: 1.6%) and 0.3% (Q121: 0.8%) respectively. The credit card
and consumer loan businesses maintain appropriate provision levels
in light of emerging affordability headwinds, as reflected in a
total coverage ratio of 10.6% (December 2021: 10.9%)
|
|
●
|
Total operating expenses decreased 3% to £1,007m driven by
lower operational costs and efficiency savings, partially offset by
increased investment spend
|
|
●
|
Loans and advances to customers at amortised cost decreased 1% in
the quarter to £207.3bn as £1.0bn of mortgage growth was
more than offset by a £2.3bn decrease in Business Banking
balances due to the repayment of government scheme lending and the
yield curve impact from rising interest rates on the Education,
Social Housing and Local Authority portfolio carrying
value
|
|
●
|
Customer deposits at amortised cost remained broadly stable at
£260.3bn, maintaining a strong loan: deposit ratio of 85%
(December 2021: 85%)
|
|
●
|
RWAs remained stable at £72.7bn (December 2021:
£72.3bn)
|
|
1
|
31 December 2021 financial and capital metrics have been restated
to reflect the over-issuance of US securities under the Barclays
Bank PLC US Shelf. See Basis of preparation on page 31 for further
details.
|
Barclays International
|
●
|
Profit before tax decreased 13% to £1,713m with a RoTE of
14.8% (Q121: 17.7%), reflecting a RoTE of 17.1% (Q121: 17.9%) in
CIB and (1.5)% (Q121: 16.5%) in CC&P
|
|
|
●
|
Total income increased to £4,824m (Q121:
£4,399m)
|
|
|
|
-
|
CIB income increased 10% to £3,938m reflecting the benefit of
a diversified business model
|
|
|
|
-
|
Global Markets income increased 26% to £2,696m driven by
strong performances in FICC and Equities, reflecting higher levels
of activity as we supported our clients through a period of market
volatility. FICC income increased 37% to £1,644m, mainly in
macro, and Equities income increased 13% to £1,052m driven by
derivatives
|
|
|
|
|
-
|
Investment Banking fees income decreased 25% to £648m due to
the reduced fee pool, particularly in Equity capital
markets1,
and a strong prior year comparative
|
|
|
|
|
-
|
Within Corporate, Transaction banking income increased 19% to
£469m driven by deposit balance growth, improved margins and
higher payments volumes. Corporate lending income decreased 39% to
£125m due to higher costs of hedging and credit
protection
|
|
|
|
-
|
CC&P income increased 10% to £886m
|
|
|
|
-
|
International Cards and Consumer Bank income was stable at
£538m as higher average cards balances were offset by higher
customer acquisition costs
|
|
|
|
|
-
|
Private Bank income increased 20% to £214m, reflecting client
balance growth and improved margins
|
|
|
|
|
-
|
Unified Payments income increased 44% to £134m driven by
turnover growth following the easing of lockdown restrictions in
the past year
|
|
|
●
|
Credit impairment charges were £101m (Q121: £22m net
release) reflecting a continued benign credit
environment
|
|
|
|
-
|
CIB credit impairment net release of £33m (Q121: £43m net
release) was driven by improvements in the portfolio and limited
material single name wholesale loan charges
|
|
|
-
|
CC&P credit impairment charges increased to £134m (Q121:
£21m charge) driven by higher unsecured lending balances in US
cards. As at 31 March 2022, 30 and 90 day arrears in US cards were
1.6% (Q121: 2.1%) and 0.8% (Q121: 1.2%) respectively. The US cards
business continues to maintain appropriate provision levels in
light of potential emerging affordability headwinds, as reflected
in a total coverage ratio of 10.4% (December 2021:
10.6%)
|
|
●
|
Total operating expenses increased 23% to £3,018m
|
|
|
|
-
|
CIB total operating expenses increased 19% to £2,239m
primarily driven by a £320m provision relating to the expected
losses resulting from a rescission offer to repurchase certain
securities issuances identified as being in excess of the
registered amount. Operating costs increased 2% to £1,921m as
investment in talent, systems and technology were partially offset
by lower performance costs
|
|
|
-
|
CC&P total operating expenses increased 36% to £779m
driven by £195m of litigation and conduct costs, including a
provision for higher customer remediation costs relating to a
legacy loan portfolio, and higher investment spend reflecting an
increase in marketing and costs for existing and new
partnerships
|
|
●
|
RWAs increased to £245.1bn (December 2021: £230.9bn)
resulting from regulatory changes that took effect from 1 January
2022, increased client and trading activity within CIB and an
increase in respect of short-term hedging arrangements designed to
manage the risks of the rescission offer
|
|
Head Office
|
●
|
Loss before tax was £73m (Q121: £32m)
|
|
●
|
Total income was £23m (Q121: £75m expense) which included
a one-off gain of £86m from the sale and leaseback of UK data
centres, partially offset by hedge accounting, funding costs on
legacy capital instruments and treasury items
|
|
●
|
Total operating expenses were £86m (Q121:
£80m)
|
|
●
|
Other net income was an expense of £18m (Q121: £123m
income) driven by a fair value loss in Barclays associate
investment holding in the Business Growth Fund
|
|
●
|
RWAs were £11.0bn (December 2021: £11.0bn)
|
|
1
|
Data source: Dealogic for the period covering 1 January to 31 March
2022.
|
Group capital and
leverage1
|
●
|
The CET1 ratio decreased by 130bps to 13.8% (December 2021: 15.1%)
as capital decreased by £2.1bn to £45.3bn and RWAs
increased by £14.7bn to £328.8bn
|
|
|
-
|
The expected impact of regulatory change on 1 January 2022 reduced
the CET1 ratio by c80bps as CET1 capital decreased £1.7bn and
RWAs increased £6.6bn with a further c30bps reduction due to
the £1bn buyback announced with FY21 results
|
|
|
-
|
The impact of the over-issuance of securities in the US reduced the
CET1 ratio by c20bps due to a £0.2bn (post-tax) increase to
the provision reducing CET1 capital and a £2.8bn increase in
RWAs reflecting the short-term hedging arrangements designed to
manage the risk of the rescission offer
|
|
|
-
|
Excluding the above impacts there was an increase to the CET1 ratio
as CET1 capital increased by £0.9bn reflecting profits
(excluding the increase in provision for the over-issuance of
securities in the US), an accrual toward a FY22 dividend, equity
coupons paid, and an increased deduction for prudent valuation
adjustments (PVA). This was largely offset by an RWA increase of
£5.3bn primarily due to increased client and trading activity
within the CIB
|
|
●
|
The UK leverage ratio decreased to 5.0% (December 2021: 5.2%)
primarily due to the decrease in CET1 capital and the £1bn
redemption of Additional Tier 1 (AT1) instruments partially offset
by a decrease in the leverage exposure of £14.4bn to
£1,123.5bn (December 2021: £1,137.9bn)
|
Group funding and liquidity
|
●
|
The liquidity pool was £320bn (December 2021: £291bn) and
the liquidity coverage ratio remained significantly above the 100%
regulatory requirement at 159% (December 2021: 168%), equivalent to
a surplus of £115bn (December 2021: £116bn). The increase
in the pool was driven by deposit growth and an increase in
wholesale funding, which were partly offset by an increase in
business funding consumption
|
|
●
|
Wholesale funding outstanding, excluding repurchase agreements, was
£178.1bn (December 2021: £167.5bn). The Group issued
£1.4bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year. The Group has a strong MREL
position with a ratio of 31.2% of RWAs which is in excess of its
regulatory requirement of 28.9%
|
Other matters
|
●
|
Over-issuance of US securities under the Barclays Bank PLC US
Shelf: as per Barclays'
RNS announcement on 28 March 2022, Barclays has commissioned a
review by external counsel of the facts and circumstances relating
to the matter and is assisting regulators with their inquiries and
requests for information. Barclays Bank PLC has elected to make a
rescission offer to certain purchasers of the affected securities
issued in excess of the registered amount, which is expected to
commence during the second quarter of 2022. Barclays remains
committed to its structured products business in the US and expects
Barclays Bank PLC to file a new shelf registration statement with
the SEC, and resume issuance of structured notes, during the second
quarter of 2022. The final cost of any rescission offer will be
impacted by prevailing market conditions at the date of that offer.
Hedges have been put in place to minimise this volatility, but the
final impact may differ from the provision reflected at Q122. For
further details, please refer to Supplementary Information on pages
30 to 31
|
|
●
|
Legacy loan portfolio: a
customer remediation provision of £181m has been recognised in
relation to a legacy timeshare loan portfolio brokered by Azure
Services Limited (ASL). The provision represents the best estimate
as at Q122. Barclays continues to review complaints regarding
legacy partner finance loans, however it is not currently possible
to predict the outcome of this review
|
|
●
|
Absa sale: on 21 April
2022, Barclays sold 63m ordinary shares in Absa Group Limited (7.4%
of Absa's issued share capital) at a price of ZAR 164.0 per share,
raising aggregate gross sale proceeds of ZAR 10.3bn
(£516m2).
The sale is expected to result in an increase of approximately 10
basis points to Barclays' CET1 ratio in the second quarter of 2022
primarily due to reduced capital deductions and RWAs, partially
offset by a loss on sale of £42m through the income
statement
|
|
●
|
Pensions: during 2019 and
2020, the UK Retirement Fund (UKRF), the Group's main pension
scheme, subscribed for non-transferable listed senior fixed rate
notes for £1.25bn. As a result of these transactions, the CET1
impact of the UKRF was deferred until 2023, 2024 and 2025 upon
maturity of the notes. Following the PRA's statement on 13 April
2022, Barclays is planning to unwind these transactions and to
agree the terms and timing of this unwind with the UKRF Trustee as
part of the next triennial actuarial valuation as at 30 September
2022. Upon unwind, this would result in a c30bps reduction to the
CET1 ratio potentially being accelerated to Q422 from 2023, 2024
and 2025. As at 31 March 2022, the UKRF was in an accounting
surplus of £4.4bn on an IAS 19 basis and as at 30 September
2021 was in a funding surplus of £0.6bn. There may also be a
pension related reduction in Pillar 2A requirements in 2022 which
could partially mitigate the impact of the unwind on the Group
surplus capital position
|
|
1
|
31 December 2021 financial and capital metrics have been restated
to reflect the over-issuance of US securities under the Barclays
Bank PLC US Shelf. See Basis of preparation on page 31 for further
details.
|
|
2
|
Exchange rate GBP/ZAR 20.04 as of 21 April 2022.
|
Capital distributions
|
●
|
Barclays is committed to maintaining an appropriate balance between
delivering attractive total cash returns to shareholders,
investment in the business and maintaining a strong capital
position. Barclays pays a progressive ordinary dividend, taking
into account these objectives and the earnings outlook of the
Group. The Board will also continue to supplement the ordinary
dividends as appropriate, including with share
buybacks
|
|
●
|
In its 28 March 2022 announcement, Barclays indicated that its
previously announced £1bn share buyback programme was expected
to commence in Q222 following the publication of Q1 results.
Barclays' Q1 performance, including a profit before tax of
£2.2bn, a RoTE of 11.5% and a CET1 ratio of 13.8% continues to
provide a strong platform for returning capital through the
previously announced buyback programme. Due to the ongoing
discussions with the SEC regarding the potential restatement of the
2021 financial statements included in Barclays PLC's Form 20-F
filed with the SEC, Barclays believes that it is prudent to delay
the commencement of the buyback programme until those discussions
have been concluded. Barclays remains committed to the share
buyback programme and the intention would be to launch it as soon
as practicable following resolution of filing requirements being
reached with the SEC and the appropriate 20-F filings having been
made. For further details regarding discussions with the SEC, see
Supplementary Information on pages 30 to 31
|
Group targets
Barclays continues to target the following over the medium
term:
|
●
|
Returns: RoTE of greater than 10%
|
|
●
|
Cost efficiency: cost: income ratio below 60%
|
|
●
|
Capital adequacy: CET1 ratio in the range of 13-14%
|
Anna Cross, Group Finance Director
Results by Business
|
Barclays UK
|
Three months ended
|
Three months ended
|
|
|
|
31.03.22
|
31.03.21
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
1,339
|
1,281
|
5
|
|
Net fee, commission and other income
|
310
|
295
|
5
|
|
Total income
|
1,649
|
1,576
|
5
|
|
Credit impairment charges
|
(48)
|
(77)
|
38
|
|
Net operating income
|
1,601
|
1,499
|
7
|
|
Operating costs
|
(998)
|
(1,036)
|
4
|
|
Litigation and conduct
|
(9)
|
(3)
|
|
|
Total operating expenses
|
(1,007)
|
(1,039)
|
3
|
|
Other net income
|
-
|
-
|
|
|
Profit before tax
|
594
|
460
|
29
|
|
Attributable profit
|
396
|
298
|
33
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
207.3
|
208.8
|
205.7
|
|
Total assets
|
317.2
|
321.2
|
309.1
|
|
Customer deposits at amortised cost
|
260.3
|
260.6
|
247.5
|
|
Loan: deposit ratio
|
85%
|
85%
|
88%
|
|
Risk weighted assets
|
72.7
|
72.3
|
72.7
|
|
Period end allocated tangible equity
|
10.1
|
10.0
|
10.0
|
|
|
|
|
|
|
|
Three months ended
|
Three months ended
|
|
|
Performance measures
|
31.03.22
|
31.03.21
|
|
|
Return on average allocated tangible equity
|
15.6%
|
12.0%
|
|
|
Average allocated tangible equity (£bn)
|
10.1
|
9.9
|
|
|
Cost: income ratio
|
61%
|
66%
|
|
|
Loan loss rate (bps)
|
9
|
14
|
|
|
Net interest margin
|
2.62%
|
2.54%
|
|
|
Analysis of Barclays UK
|
Three months ended
|
Three months ended
|
|
|
31.03.22
|
31.03.21
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Personal Banking
|
1,022
|
923
|
11
|
|
Barclaycard Consumer UK
|
276
|
315
|
(12)
|
|
Business Banking
|
351
|
338
|
4
|
|
Total income
|
1,649
|
1,576
|
5
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
Personal Banking
|
21
|
(22)
|
|
|
Barclaycard Consumer UK
|
(44)
|
(36)
|
(22)
|
|
Business Banking
|
(25)
|
(19)
|
(32)
|
|
Total credit impairment charges
|
(48)
|
(77)
|
38
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
|
Personal Banking
|
166.5
|
165.4
|
160.4
|
|
Barclaycard Consumer UK
|
8.4
|
8.7
|
8.7
|
|
Business Banking
|
32.4
|
34.7
|
36.6
|
|
Total loans and advances to customers at amortised
cost
|
207.3
|
208.8
|
205.7
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
Personal Banking
|
196.6
|
196.4
|
186.0
|
|
Barclaycard Consumer UK
|
-
|
-
|
0.1
|
|
Business Banking
|
63.7
|
64.2
|
61.4
|
|
Total customer deposits at amortised cost
|
260.3
|
260.6
|
247.5
|
|
Barclays International
|
Three months ended
|
Three months ended1
|
|
|
|
31.03.22
|
31.03.21
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
936
|
748
|
25
|
|
Net trading income
|
2,446
|
1,934
|
26
|
|
Net fee, commission and other income
|
1,442
|
1,717
|
(16)
|
|
Total income
|
4,824
|
4,399
|
10
|
|
Credit impairment (charges)/releases
|
(101)
|
22
|
|
|
Net operating income
|
4,723
|
4,421
|
7
|
|
Operating costs
|
(2,505)
|
(2,438)
|
(3)
|
|
Litigation and conduct
|
(513)
|
(21)
|
|
|
Total operating expenses
|
(3,018)
|
(2,459)
|
(23)
|
|
Other net income
|
8
|
9
|
(11)
|
|
Profit before tax
|
1,713
|
1,971
|
(13)
|
|
Attributable profit
|
1,300
|
1,431
|
(9)
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
144.8
|
133.8
|
123.5
|
|
Trading portfolio assets
|
134.1
|
146.9
|
131.1
|
|
Derivative financial instrument assets
|
288.8
|
261.5
|
269.4
|
|
Financial assets at fair value through the income
statement
|
203.8
|
188.2
|
197.5
|
|
Cash collateral and settlement balances
|
132.0
|
88.1
|
109.7
|
|
Other assets
|
255.5
|
225.6
|
221.7
|
|
Total assets
|
1,159.0
|
1,044.1
|
1,052.9
|
|
Deposits at amortised cost
|
286.1
|
258.8
|
251.2
|
|
Derivative financial instrument liabilities
|
277.2
|
256.4
|
260.2
|
|
Loan: deposit ratio
|
51%
|
52%
|
49%
|
|
Risk weighted assets
|
245.1
|
230.9
|
230.0
|
|
Period end allocated tangible equity
|
35.6
|
33.2
|
32.7
|
|
|
|
|
|
|
|
Three months ended
|
Three months ended
|
|
|
Performance measures
|
31.03.22
|
31.03.21
|
|
|
Return on average allocated tangible equity
|
14.8%
|
17.7%
|
|
|
Average allocated tangible equity (£bn)
|
35.1
|
32.3
|
|
|
Cost: income ratio
|
63%
|
56%
|
|
|
Loan loss rate (bps)
|
28
|
(7)
|
|
|
Net interest margin
|
4.15%
|
3.92%
|
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Analysis of Barclays International
|
|
|
|
|
Corporate and Investment Bank
|
Three months ended
|
Three months ended1
|
|
|
|
31.03.22
|
31.03.21
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
385
|
270
|
43
|
|
Net trading income
|
2,450
|
1,917
|
28
|
|
Net fee, commission and other income
|
1,103
|
1,407
|
(22)
|
|
Total income
|
3,938
|
3,594
|
10
|
|
Credit impairment releases
|
33
|
43
|
(23)
|
|
Net operating income
|
3,971
|
3,637
|
9
|
|
Operating costs
|
(1,921)
|
(1,886)
|
(2)
|
|
Litigation and conduct
|
(318)
|
(1)
|
|
|
Total operating expenses
|
(2,239)
|
(1,887)
|
(19)
|
|
Other net income
|
-
|
1
|
|
|
Profit before tax
|
1,732
|
1,751
|
(1)
|
|
Attributable profit
|
1,316
|
1,263
|
4
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
109.6
|
100.0
|
94.3
|
|
Trading portfolio assets
|
134.0
|
146.7
|
130.9
|
|
Derivative financial instrument assets
|
288.7
|
261.5
|
269.4
|
|
Financial assets at fair value through the income
statement
|
203.8
|
188.1
|
197.3
|
|
Cash collateral and settlement balances
|
131.2
|
87.2
|
108.8
|
|
Other assets
|
222.5
|
195.8
|
190.8
|
|
Total assets
|
1,089.8
|
979.3
|
991.5
|
|
Deposits at amortised cost
|
214.7
|
189.4
|
185.2
|
|
Derivative financial instrument liabilities
|
277.1
|
256.4
|
260.2
|
|
Risk weighted assets
|
213.5
|
200.7
|
201.3
|
|
|
|
|
|
|
|
Three months ended
|
Three months ended
|
|
|
Performance measures
|
31.03.22
|
31.03.21
|
|
|
Return on average allocated tangible equity
|
17.1%
|
17.9%
|
|
|
Average allocated tangible equity (£bn)
|
30.8
|
28.2
|
|
|
Cost: income ratio
|
57%
|
53%
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
FICC
|
1,644
|
1,204
|
37
|
|
Equities
|
1,052
|
932
|
13
|
|
Global Markets
|
2,696
|
2,136
|
26
|
|
Advisory
|
185
|
163
|
13
|
|
Equity capital markets
|
47
|
243
|
(81)
|
|
Debt capital markets
|
416
|
453
|
(8)
|
|
Investment Banking fees
|
648
|
859
|
(25)
|
|
Corporate lending
|
125
|
206
|
(39)
|
|
Transaction banking
|
469
|
393
|
19
|
|
Corporate
|
594
|
599
|
(1)
|
|
Total income
|
3,938
|
3,594
|
10
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Analysis of Barclays International
|
|
|
|
|
Consumer, Cards and Payments
|
Three months ended
|
Three months ended
|
|
|
|
31.03.22
|
31.03.21
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
551
|
478
|
15
|
|
Net fee, commission, trading and other income
|
335
|
327
|
2
|
|
Total income
|
886
|
805
|
10
|
|
Credit impairment charges
|
(134)
|
(21)
|
|
|
Net operating income
|
752
|
784
|
(4)
|
|
Operating costs
|
(584)
|
(552)
|
(6)
|
|
Litigation and conduct
|
(195)
|
(20)
|
|
|
Total operating expenses
|
(779)
|
(572)
|
(36)
|
|
Other net income
|
8
|
8
|
-
|
|
(Loss)/profit before tax
|
(19)
|
220
|
|
|
Attributable (loss)/profit
|
(16)
|
168
|
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
35.2
|
33.8
|
29.2
|
|
Total assets
|
69.2
|
64.8
|
61.4
|
|
Deposits at amortised cost
|
71.4
|
69.4
|
66.0
|
|
Risk weighted assets
|
31.6
|
30.2
|
28.8
|
|
|
|
|
|
|
|
Three months ended
|
Three months ended
|
|
|
Performance measures
|
31.03.22
|
31.03.21
|
|
|
Return on average allocated tangible equity
|
(1.5)%
|
16.5%
|
|
|
Average allocated tangible equity (£bn)
|
4.3
|
4.1
|
|
|
Cost: income ratio
|
88%
|
71%
|
|
|
Loan loss rate (bps)
|
145
|
27
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
International Cards and Consumer Bank
|
538
|
533
|
1
|
|
Private Bank
|
214
|
179
|
20
|
|
Unified Payments
|
134
|
93
|
44
|
|
Total income
|
886
|
805
|
10
|
|
Head Office
|
Three months ended
|
Three months ended
|
|
|
|
31.03.22
|
31.03.21
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
66
|
(178)
|
|
|
Net fee, commission and other income
|
(43)
|
103
|
|
|
Total income
|
23
|
(75)
|
|
|
Credit impairment releases
|
8
|
-
|
|
|
Net operating income
|
31
|
(75)
|
|
|
Operating costs
|
(85)
|
(71)
|
(20)
|
|
Litigation and conduct
|
(1)
|
(9)
|
89
|
|
Total operating expenses
|
(86)
|
(80)
|
(8)
|
|
Other net (expenses)/income
|
(18)
|
123
|
|
|
Loss before tax
|
(73)
|
(32)
|
|
|
Attributable loss
|
(292)
|
(25)
|
|
|
|
|
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
As at 31.03.21
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
19.9
|
19.0
|
17.7
|
|
Risk weighted assets
|
11.0
|
11.0
|
10.7
|
|
Period end allocated tangible equity
|
3.6
|
5.7
|
3.3
|
|
|
|
|
|
|
|
Three months ended
|
Three months ended
|
|
|
Performance measures
|
31.03.22
|
31.03.21
|
|
|
Average allocated tangible equity (£bn)
|
3.6
|
4.3
|
|
Performance Management
|
Margins and balances
|
|
|
Three months ended 31.03.22
|
Three months ended 31.03.21
|
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
Barclays UK
|
1,339
|
207,607
|
2.62
|
1,281
|
204,663
|
2.54
|
|
Barclays International1
|
867
|
84,838
|
4.15
|
755
|
78,230
|
3.92
|
|
Total Barclays UK and Barclays International
|
2,206
|
292,445
|
3.06
|
2,036
|
282,893
|
2.92
|
|
Other2
|
135
|
|
|
(185)
|
|
|
|
Total Barclays Group
|
2,341
|
|
|
1,851
|
|
|
|
1
|
Barclays International margins include the lending related
investment bank business.
|
|
2
|
Other includes Head Office and the non-lending related investment
bank businesses not included in Barclays International
margins.
|
The Group's combined product and equity structural hedge notional
as at 31 March 2022 was £238bn (31 March 2021:
£192bn), with an average duration of close to 3 years (2021:
average duration 2.5 to 3 years). Group net interest income
includes gross structural hedge contributions of £378m (Q121:
£350m) and net structural hedge contributions of £141m
(Q121: £301m). Gross structural hedge contributions represent
the absolute level of interest earned from the fixed receipts on
the basket of swaps in the structural hedge, while the net
structural hedge contributions represent the net interest earned on
the difference between the structural hedge rate and prevailing
floating rates.
|
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
Three months ended 31.12.21
|
£m
|
£m
|
%
|
|
Barclays UK
|
1,313
|
209,064
|
2.49
|
|
Barclays International1
|
848
|
81,244
|
4.14
|
|
Total Barclays UK and Barclays International
|
2,161
|
290,308
|
2.95
|
|
|
|
|
|
|
Three months ended 30.09.21
|
|
|
|
|
Barclays UK
|
1,303
|
207,692
|
2.49
|
|
Barclays International1
|
783
|
77,364
|
4.02
|
|
Total Barclays UK and Barclays International
|
2,086
|
285,056
|
2.90
|
|
|
|
|
|
|
Three months ended 30.06.21
|
|
|
|
|
Barclays UK
|
1,305
|
205,168
|
2.55
|
|
Barclays International1
|
763
|
77,330
|
3.96
|
|
Total Barclays UK and Barclays International
|
2,068
|
282,498
|
2.94
|
|
|
|
|
|
|
Three months ended 31.03.21
|
|
|
|
|
Barclays UK
|
1,281
|
204,663
|
2.54
|
|
Barclays International1
|
755
|
78,230
|
3.92
|
|
Total Barclays UK and Barclays International
|
2,036
|
282,893
|
2.92
|
|
1
|
Barclays International margins include the lending related
investment bank business.
|
Credit Risk
Loans and advances at amortised cost by stage
The table below presents an analysis of loans and advances at
amortised cost by gross exposure, impairment allowance, impairment
charge and coverage ratio by stage allocation and business segment
as at 31 March 2022. Also included are off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio by stage allocation as at
31 March 2022.
Impairment allowance under IFRS 9 considers both the drawn and the
undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to the drawn exposure to the
extent that the allowance does not exceed the exposure, as expected
credit loss (ECL) is not reported separately. Any excess is
reported on the liability side of the balance sheet as a provision.
For wholesale portfolios, the impairment allowance on the undrawn
exposure is reported on the liability side of the balance sheet as
a provision.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.03.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
158,707
|
25,003
|
3,049
|
186,759
|
|
221
|
943
|
704
|
1,868
|
184,891
|
|
Barclays International
|
26,627
|
2,792
|
1,574
|
30,993
|
|
575
|
873
|
795
|
2,243
|
28,750
|
|
Head Office
|
3,688
|
380
|
691
|
4,759
|
|
1
|
27
|
347
|
375
|
4,384
|
|
Total Barclays Group retail
|
189,022
|
28,175
|
5,314
|
222,511
|
|
797
|
1,843
|
1,846
|
4,486
|
218,025
|
|
Barclays UK
|
35,052
|
1,848
|
914
|
37,814
|
|
142
|
48
|
103
|
293
|
37,521
|
|
Barclays International
|
102,476
|
13,271
|
1,014
|
116,761
|
|
195
|
177
|
364
|
736
|
116,025
|
|
Head Office
|
124
|
1
|
22
|
147
|
|
-
|
-
|
20
|
20
|
127
|
|
Total Barclays Group
wholesale1
|
137,652
|
15,120
|
1,950
|
154,722
|
|
337
|
225
|
487
|
1,049
|
153,673
|
|
Total loans and advances at amortised cost
|
326,674
|
43,295
|
7,264
|
377,233
|
|
1,134
|
2,068
|
2,333
|
5,535
|
371,698
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
330,717
|
27,886
|
1,724
|
360,327
|
|
207
|
275
|
21
|
503
|
359,824
|
|
Total3
|
657,391
|
71,181
|
8,988
|
737,560
|
|
1,341
|
2,343
|
2,354
|
6,038
|
731,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.03.22
|
|
Three months ended 31.03.22
|
|
|
|
Coverage ratio
|
|
Loan impairment charge/(release) and loan loss rate
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge/(release)
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.1
|
3.8
|
23.1
|
1.0
|
|
|
43
|
|
9
|
|
|
Barclays International
|
2.2
|
31.3
|
50.5
|
7.2
|
|
|
128
|
|
167
|
|
|
Head Office
|
-
|
7.1
|
50.2
|
7.9
|
|
|
(7)
|
|
-
|
|
|
Total Barclays Group retail
|
0.4
|
6.5
|
34.7
|
2.0
|
|
|
164
|
|
30
|
|
|
Barclays UK
|
0.4
|
2.6
|
11.3
|
0.8
|
|
|
8
|
|
9
|
|
|
Barclays International
|
0.2
|
1.3
|
35.9
|
0.6
|
|
|
(7)
|
|
-
|
|
|
Head Office
|
-
|
-
|
90.9
|
13.6
|
|
|
(1)
|
|
-
|
|
|
Total Barclays Group
wholesale1
|
0.2
|
1.5
|
25.0
|
0.7
|
|
|
-
|
|
-
|
|
|
Total loans and advances at amortised cost
|
0.3
|
4.8
|
32.1
|
1.5
|
|
|
164
|
|
18
|
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
0.1
|
1.0
|
1.2
|
0.1
|
|
|
(42)
|
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
19
|
|
|
|
|
Total4
|
0.2
|
3.3
|
26.2
|
0.8
|
|
|
141
|
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures,
including lending under the government backed Bounce Back Loan
Scheme (BBLs) of £9.0bn that are managed on a collective basis
and reported within Barclays UK Retail. The net impact is a
difference in total exposure of £5,199m of balances reported
as wholesale loans on page 17 in the Loans and advances at
amortised cost by product disclosure.
|
|
2
|
Excludes loan commitments and financial guarantees of £14bn
carried at fair value.
|
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£198.8bn and impairment allowance of £135m. This
comprises £7m ECL on £198.5bn Stage 1 assets, £0m on
£130m Stage 2 fair value through other comprehensive income
assets, cash collateral and settlement balances and £128m on
£135m Stage 3 other assets.
|
|
4
|
The loan loss rate is 15bps after applying the total impairment
charge of £141m.
|
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
160,695
|
22,779
|
2,915
|
186,389
|
|
261
|
949
|
728
|
1,938
|
184,451
|
|
Barclays International
|
25,981
|
2,691
|
1,566
|
30,238
|
|
603
|
795
|
858
|
2,256
|
27,982
|
|
Head Office
|
3,735
|
429
|
705
|
4,869
|
|
2
|
36
|
347
|
385
|
4,484
|
|
Total Barclays Group retail
|
190,411
|
25,899
|
5,186
|
221,496
|
|
866
|
1,780
|
1,933
|
4,579
|
216,917
|
|
Barclays UK
|
35,571
|
1,917
|
969
|
38,457
|
|
153
|
43
|
111
|
307
|
38,150
|
|
Barclays International
|
92,341
|
13,275
|
1,059
|
106,675
|
|
187
|
192
|
458
|
837
|
105,838
|
|
Head Office
|
542
|
2
|
21
|
565
|
|
-
|
-
|
19
|
19
|
546
|
|
Total Barclays Group
wholesale1
|
128,454
|
15,194
|
2,049
|
145,697
|
|
340
|
235
|
588
|
1,163
|
144,534
|
|
Total loans and advances at amortised cost
|
318,865
|
41,093
|
7,235
|
367,193
|
|
1,206
|
2,015
|
2,521
|
5,742
|
361,451
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
312,142
|
34,815
|
1,298
|
348,255
|
|
217
|
302
|
23
|
542
|
347,713
|
|
Total3
|
631,007
|
75,908
|
8,533
|
715,448
|
|
1,423
|
2,317
|
2,544
|
6,284
|
709,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
Year ended 31.12.21
|
|
|
|
Coverage ratio
|
|
Loan impairment charge/(release) and loan loss rate
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge/(release)
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.2
|
4.2
|
25.0
|
1.0
|
|
|
(227)
|
|
-
|
|
|
Barclays International
|
2.3
|
29.5
|
54.8
|
7.5
|
|
|
181
|
|
60
|
|
|
Head Office
|
0.1
|
8.4
|
49.2
|
7.9
|
|
|
-
|
|
-
|
|
|
Total Barclays Group retail
|
0.5
|
6.9
|
37.3
|
2.1
|
|
|
(46)
|
|
-
|
|
|
Barclays UK
|
0.4
|
2.2
|
11.5
|
0.8
|
|
|
122
|
|
32
|
|
|
Barclays International
|
0.2
|
1.4
|
43.2
|
0.8
|
|
|
(197)
|
|
-
|
|
|
Head Office
|
-
|
-
|
90.5
|
3.4
|
|
|
-
|
|
-
|
|
|
Total Barclays Group
wholesale1
|
0.3
|
1.5
|
28.7
|
0.8
|
|
|
(75)
|
|
-
|
|
|
Total loans and advances at amortised cost
|
0.4
|
4.9
|
34.8
|
1.6
|
|
|
(121)
|
|
-
|
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
0.1
|
0.9
|
1.8
|
0.2
|
|
|
(514)
|
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
(18)
|
|
|
|
|
Total
|
0.2
|
3.1
|
29.8
|
0.9
|
|
|
(653)
|
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures,
including BBLs of £9.4bn that are managed on a collective
basis and reported within Barclays UK Retail. The net impact is a
difference in total exposure of £5,994m of balances reported
as wholesale loans on page 17 in the Loans and advances at
amortised cost by product disclosure.
|
|
2
|
Excludes loan commitments and financial guarantees of £18.8bn
carried at fair value.
|
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£155.2bn and impairment allowance of £114m. This
comprises £6m ECL on £154.9bn Stage 1 assets, £1m on
£157.0bn Stage 2 fair value through other comprehensive income
assets, other assets and cash collateral and settlement balances
and £107m on £110m Stage 3 other assets.
|
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
|
|
|
Stage 2
|
|
|
|
As at 31.03.22
|
Stage 1
|
Not past due
|
<=30 days past due
|
>30 days past due
|
Total
|
Stage 3
|
Total
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
147,839
|
18,815
|
1,370
|
805
|
20,990
|
2,148
|
170,977
|
|
Credit cards, unsecured loans and other retail lending
|
37,963
|
5,259
|
318
|
454
|
6,031
|
2,341
|
46,335
|
|
Wholesale loans
|
140,872
|
15,057
|
948
|
269
|
16,274
|
2,775
|
159,921
|
|
Total
|
326,674
|
39,131
|
2,636
|
1,528
|
43,295
|
7,264
|
377,233
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home loans
|
18
|
43
|
3
|
7
|
53
|
397
|
468
|
|
Credit cards, unsecured loans and other retail lending
|
759
|
1,526
|
116
|
133
|
1,775
|
1,393
|
3,927
|
|
Wholesale loans
|
357
|
235
|
3
|
2
|
240
|
543
|
1,140
|
|
Total
|
1,134
|
1,804
|
122
|
142
|
2,068
|
2,333
|
5,535
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
147,821
|
18,772
|
1,367
|
798
|
20,937
|
1,751
|
170,509
|
|
Credit cards, unsecured loans and other retail lending
|
37,204
|
3,733
|
202
|
321
|
4,256
|
948
|
42,408
|
|
Wholesale loans
|
140,515
|
14,822
|
945
|
267
|
16,034
|
2,232
|
158,781
|
|
Total
|
325,540
|
37,327
|
2,514
|
1,386
|
41,227
|
4,931
|
371,698
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
-
|
0.2
|
0.2
|
0.9
|
0.3
|
18.5
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.0
|
29.0
|
36.5
|
29.3
|
29.4
|
59.5
|
8.5
|
|
Wholesale loans
|
0.3
|
1.6
|
0.3
|
0.7
|
1.5
|
19.6
|
0.7
|
|
Total
|
0.3
|
4.6
|
4.6
|
9.3
|
4.8
|
32.1
|
1.5
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
148,058
|
17,133
|
1,660
|
707
|
19,500
|
2,122
|
169,680
|
|
Credit cards, unsecured loans and other retail lending
|
37,840
|
5,102
|
300
|
248
|
5,650
|
2,332
|
45,822
|
|
Wholesale loans
|
132,967
|
15,246
|
306
|
391
|
15,943
|
2,781
|
151,691
|
|
Total
|
318,865
|
37,481
|
2,266
|
1,346
|
41,093
|
7,235
|
367,193
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home Loans
|
19
|
46
|
6
|
7
|
59
|
397
|
475
|
|
Credit cards, unsecured loans and other retail lending
|
824
|
1,493
|
85
|
123
|
1,701
|
1,504
|
4,029
|
|
Wholesale Loans
|
363
|
248
|
4
|
3
|
255
|
620
|
1,238
|
|
Total
|
1,206
|
1,787
|
95
|
133
|
2,015
|
2,521
|
5,742
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
148,039
|
17,087
|
1,654
|
700
|
19,441
|
1,725
|
169,205
|
|
Credit cards, unsecured loans and other retail lending
|
37,016
|
3,609
|
215
|
125
|
3,949
|
828
|
41,793
|
|
Wholesale loans
|
132,604
|
14,998
|
302
|
388
|
15,688
|
2,161
|
150,453
|
|
Total
|
317,659
|
35,694
|
2,171
|
1,213
|
39,078
|
4,714
|
361,451
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
-
|
0.3
|
0.4
|
1.0
|
0.3
|
18.7
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.2
|
29.3
|
28.3
|
49.6
|
30.1
|
64.5
|
8.8
|
|
Wholesale loans
|
0.3
|
1.6
|
1.3
|
0.8
|
1.6
|
22.3
|
0.8
|
|
Total
|
0.4
|
4.8
|
4.2
|
9.9
|
4.9
|
34.8
|
1.6
|
Measurement uncertainty
The Q122 ECL provision has been based on macroeconomic indicators
used in the Q421 ECL scenario, rolled forward by one quarter, and
updated to reflect changes in balances, risk parameters and
individually assessed impaired names during the quarter. Management
has applied economic uncertainty and other adjustments to modelled
ECL outputs.
Uncertainty persists. The ongoing geopolitical situation could put
further pressure on already high levels of inflation which may
weigh on corporate profitability and consumer affordability levels.
In addition, COVID-19 infection rates have started to increase
across the globe which could result in (among other things) labour
shortages and supply chain constraints.
In response to the changing economic environment, key baseline
macroeconomic indicators have been tracked against consensus
updates to March 2022. These latest updates reflect improved UK
unemployment expectations but also higher inflationary
expectations. However, because the macroeconomic outlook remains
uncertain and has only recently changed, these updates have not
been reflected in the Q122 ECL modelled provision
level.
Furthermore, sensitivity analysis has been completed to estimate
the impact of applying the refreshed UK unemployment baseline
improvement to the UK Credit Cards portfolio. This high level
analysis indicated that, all other things being equal, this would
result in an immaterial release to modelled ECL. In addition,
coverage levels have been assessed in light of the potential impact
of higher inflation on customer affordability and expert judgements
updated accordingly with the resulting adjustments included within
total post model adjustments of £1.3bn (31 December 2021:
£1.5bn).
The tables below show the key consensus macroeconomic variables
used in the Baseline scenario and the probability weights applied
to each scenario.
|
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
|
As at 31.03.22
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP1
|
5.7
|
2.5
|
2.0
|
1.8
|
1.7
|
|
UK unemployment2
|
4.8
|
4.5
|
4.4
|
4.2
|
4.2
|
|
UK HPI3
|
1.1
|
1.7
|
1.9
|
2.2
|
2.2
|
|
UK bank rate
|
0.6
|
1.0
|
1.0
|
0.8
|
0.8
|
|
US GDP1
|
4.3
|
2.9
|
2.4
|
2.4
|
2.4
|
|
US unemployment4
|
4.3
|
3.7
|
3.6
|
3.6
|
3.6
|
|
US HPI5
|
4.8
|
5.3
|
4.9
|
5.0
|
5.0
|
|
US federal funds rate
|
0.3
|
0.8
|
1.1
|
1.3
|
1.3
|
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP1
|
6.2
|
4.9
|
2.3
|
1.9
|
1.7
|
|
UK unemployment2
|
4.8
|
4.7
|
4.5
|
4.3
|
4.2
|
|
UK HPI3
|
4.7
|
1.0
|
1.9
|
1.9
|
2.3
|
|
UK bank rate
|
0.1
|
0.8
|
1.0
|
1.0
|
0.8
|
|
US GDP1
|
5.5
|
3.9
|
2.6
|
2.4
|
2.4
|
|
US unemployment4
|
5.5
|
4.2
|
3.6
|
3.6
|
3.6
|
|
US HPI5
|
11.8
|
4.5
|
5.2
|
4.9
|
5.0
|
|
US federal funds rate
|
0.2
|
0.3
|
0.9
|
1.2
|
1.3
|
|
1
|
Average Real GDP seasonally adjusted change in year.
|
|
2
|
Average UK unemployment rate 16-year+.
|
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
|
4
|
Average US civilian unemployment rate 16-year+.
|
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
|
Scenario probability weighting
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
|
%
|
%
|
%
|
%
|
%
|
|
As at 31.03.22
|
|
|
|
|
|
|
Scenario probability weighting
|
20.9
|
27.2
|
30.1
|
14.8
|
7.0
|
|
As at 31.12.21
|
|
|
|
|
|
|
Scenario probability weighting
|
20.9
|
27.2
|
30.1
|
14.8
|
7.0
|
Treasury and Capital Risk
Regulatory minimum requirements
Capital
The Group's Overall Capital Requirement for CET1 is 11.0%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.5% Pillar 2A requirement and a 0%
Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 11 March 2020,
the Financial Policy Committee (FPC) set the CCyB rate for UK
exposures at 0% with immediate effect. The buffer rates set by
other national authorities for non-UK exposures are not currently
material. Overall, this results in a 0.0% CCyB for the Group. On 13
December 2021, the FPC announced that a CCyB rate of 1% for UK
exposures has been re-introduced and will be applicable from 13
December 2022.
The Group's Pillar 2A requirement as per the PRA's Individual
Capital Requirement was set as a nominal amount. When expressed as
a percentage of RWAs this was 4.4% of which at least 56.25% needed
to be met with CET1 capital, equating to approximately 2.5% of
RWAs. The Pillar 2A requirement is subject to at least annual
review and is based on a point in time assessment.
Leverage
The Group is subject to a UK leverage ratio requirement of 3.8%.
This comprises the 3.25% minimum requirement, a G-SII additional
leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical
leverage ratio buffer of 0.0%. Although the leverage ratio is
expressed in terms of Tier 1 (T1) capital, 75% of the minimum
requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was £5.9bn.
The Group is also required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the
quarter.
MREL
The Group is required to meet the higher of: (i) two times the sum
of 8% Pillar 1 and 4.4% Pillar 2A; and (ii) 6.75% of leverage
exposures. CET1 capital cannot be counted towards both MREL
and the capital buffers, meaning that the buffers will effectively
be applied above MREL requirements.
Significant regulatory updates in the period
Capital and RWAs
On 1 January 2022 the PRA's implementation of Basel III standards
took effect including the re-introduction of the 100% CET1 capital
deduction for qualifying software intangible assets and the
introduction of the Standardised Approach for Counterparty Credit
Risk (SA-CCR) which replaces the Current Exposure Method (CEM) for
Standardised derivative exposures as a more risk sensitive
approach. In addition, the PRA also implemented IRB roadmap changes
which includes revisions to the criteria for definition of default,
probability of default (PD) and loss given default (LGD) estimation
to ensure supervisory consistency and increase transparency of IRB
models.
Leverage
From 1 January 2022, UK banks are subject to a single UK leverage
ratio requirement meaning that the CRR leverage ratio no longer
applies. Central bank claims can be excluded from the UK leverage
ratio measure as long as they are matched by qualifying liabilities
(rather than deposits).
References to CRR, as amended by CRR II mean, unless otherwise
specified, CRR as amended by CRR II, as it forms part of UK law
pursuant to the European Union (Withdrawal) Act 2018. On 31
March 2022, the temporary transitional powers (TTP) available to UK
regulators to delay or phase in on-shoring of European Union
legislation into UK law ended with full compliance of the on-shored
regulations required from 1 April 2022.
|
|
|
Restated1
|
|
Capital
ratios2,3,4
|
As at 31.03.22
|
As at 31.12.21
|
|
CET1
|
13.8%
|
15.1%
|
|
T1
|
17.1%
|
19.1%
|
|
Total regulatory capital
|
20.1%
|
22.2%
|
|
|
|
|
|
Capital resources
|
£m
|
£m
|
|
Total equity excluding non-controlling interests per the balance
sheet
|
68,465
|
69,052
|
|
Less: other equity instruments (recognised as AT1
capital)
|
(11,119)
|
(12,259)
|
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(968)
|
(666)
|
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
(1,000)
|
-
|
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(39)
|
(32)
|
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,864)
|
(1,585)
|
|
Goodwill and intangible assets
|
(8,035)
|
(6,804)
|
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(938)
|
(1,028)
|
|
Fair value reserves related to gains or losses on cash flow
hedges
|
3,343
|
852
|
|
Gains or losses on liabilities at fair value resulting from own
credit
|
4
|
892
|
|
Defined benefit pension fund assets
|
(3,225)
|
(2,619)
|
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(20)
|
(50)
|
|
Adjustment under IFRS 9 transitional arrangements
|
601
|
1,229
|
|
Other regulatory adjustments
|
64
|
345
|
|
CET1 capital
|
45,269
|
47,327
|
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
11,119
|
12,259
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
-
|
637
|
|
Other regulatory adjustments and deductions
|
(60)
|
(80)
|
|
AT1 capital
|
11,059
|
12,816
|
|
|
|
|
|
T1 capital
|
56,328
|
60,143
|
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
8,334
|
8,713
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1,540
|
1,113
|
|
Credit risk adjustments (excess of impairment over expected
losses)
|
98
|
73
|
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
|
Total regulatory capital
|
66,140
|
69,882
|
|
|
|
|
|
Total RWAs
|
328,830
|
314,136
|
|
1
|
Capital metrics as at 31 December 2021 have been restated. See
Basis of preparation on page 31 for further details. The
transitional CET1 ratio remains unchanged at 15.1%.
|
|
2
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR II non-compliant capital instruments. Prior period comparatives
include the grandfathering of CRR non-compliant capital
instruments.
|
|
3
|
The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.6%,
with £44.7bn of CET1 capital and £328.6bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
|
4
|
The Group's CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays Bank PLC 7.625% Contingent Capital
Notes, was 13.8%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR as
amended by CRR II, including the IFRS 9 transitional arrangements.
The benefit of the Financial Services Authority (FSA) October 2012
interpretation of the transitional provisions, relating to the
implementation of CRD IV, expired in December 2017.
|
|
|
Restated1
|
|
Movement in CET1 capital
|
Three months ended 31.03.22
|
|
|
£m
|
|
Opening CET1 capital
|
47,327
|
|
|
|
|
Profit for the period attributable to equity holders
|
1,619
|
|
Own credit relating to derivative liabilities
|
(21)
|
|
Ordinary share dividends paid and foreseen
|
(302)
|
|
Purchased and foreseeable share repurchase
|
(1,000)
|
|
Other equity coupons paid and foreseen
|
(222)
|
|
Increase in retained regulatory capital generated from
earnings
|
74
|
|
|
|
|
Net impact of share schemes
|
(268)
|
|
Fair value through other comprehensive income reserve
|
(209)
|
|
Currency translation reserve
|
370
|
|
Other reserves
|
24
|
|
Decrease in other qualifying reserves
|
(83)
|
|
|
|
|
Pension remeasurements within reserves
|
667
|
|
Defined benefit pension fund asset deduction
|
(606)
|
|
Net impact of pensions
|
61
|
|
|
|
|
Additional value adjustments (PVA)
|
(279)
|
|
Goodwill and intangible assets
|
(1,231)
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
90
|
|
Direct and indirect holdings by an institution of own CET1
instruments
|
30
|
|
Adjustment under IFRS 9 transitional arrangements
|
(628)
|
|
Other regulatory adjustments
|
(92)
|
|
Decrease in regulatory capital due to adjustments and
deductions
|
(2,110)
|
|
|
|
|
Closing CET1 capital
|
45,269
|
|
1
|
Opening balance as at 31 December 2021 has been restated. See Basis
of preparation on page 31 for further details.
|
CET1 capital decreased £2.1bn to £45.3bn (December 2021:
£47.3bn).
CET1 capital decreased by £1.7bn as a result of regulatory
changes that took effect from 1 January 2022 including the
re-introduction of the 100% CET1 capital deduction for qualifying
software intangible assets and a reduction in IFRS9 transitional
relief due to the relief applied to the pre-2020 impairment charge
reducing to 25% in 2022 from 50% in 2021 and the relief applied to
the post-2020 impairment charge reducing to 75% in 2022 from 100%
in 2021.
£1.6bn of capital generated from profits, after absorbing the
£0.2bn (post-tax) additional impact of the over-issuance of
securities in the US, was more than offset by distributions of
£1.5bn comprising:
|
●
|
£1bn for share buybacks announced with FY21
results
|
|
●
|
£0.3bn accrual towards a FY22 dividend
|
|
●
|
£0.2bn of equity coupons paid
|
Other significant decreases in the period were:
|
●
|
£0.3bn increase in the PVA deduction as a result of increased
volatility and uncertainty in the market
|
|
●
|
£0.2bn decrease in the Fair value through other comprehensive
income reserve primarily due to losses on bonds as a result of an
increase in yields, partially offset by gains in value of the Absa
investment
|
|
RWAs by risk type and business
|
|
|
Credit risk
|
|
Counterparty credit risk
|
|
Market Risk
|
|
Operational risk
|
Total RWAs
|
|
|
STD
|
IRB
|
|
STD
|
IRB
|
Settlement Risk
|
CVA
|
|
STD
|
IMA
|
|
|
|
|
As at 31.03.22
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays UK
|
6,989
|
54,241
|
|
229
|
-
|
-
|
57
|
|
155
|
-
|
|
11,047
|
72,718
|
|
Corporate and Investment Bank
|
35,325
|
70,831
|
|
16,422
|
21,047
|
268
|
3,675
|
|
17,068
|
23,551
|
|
25,296
|
213,483
|
|
Consumer, Cards and Payments
|
21,289
|
3,459
|
|
242
|
12
|
-
|
37
|
|
110
|
34
|
|
6,424
|
31,607
|
|
Barclays International
|
56,614
|
74,290
|
|
16,664
|
21,059
|
268
|
3,712
|
|
17,178
|
23,585
|
|
31,720
|
245,090
|
|
Head Office
|
5,532
|
6,486
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(996)
|
11,022
|
|
Barclays Group
|
69,135
|
135,017
|
|
16,893
|
21,059
|
268
|
3,769
|
|
17,333
|
23,585
|
|
41,771
|
328,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,195
|
53,408
|
|
426
|
-
|
-
|
138
|
|
100
|
-
|
|
11,022
|
72,289
|
|
Corporate and Investment Bank
|
29,420
|
64,416
|
|
15,223
|
19,238
|
105
|
2,289
|
|
17,306
|
27,308
|
|
25,359
|
200,664
|
|
Consumer, Cards and Payments
|
20,770
|
2,749
|
|
215
|
18
|
-
|
21
|
|
-
|
57
|
|
6,391
|
30,221
|
|
Barclays International
|
50,190
|
67,165
|
|
15,438
|
19,256
|
105
|
2,310
|
|
17,306
|
27,365
|
|
31,750
|
230,885
|
|
Head Office
|
4,733
|
7,254
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(1,025)
|
10,962
|
|
Barclays Group
|
62,118
|
127,827
|
|
15,864
|
19,256
|
105
|
2,448
|
|
17,406
|
27,365
|
|
41,747
|
314,136
|
|
Movement analysis of RWAs
|
|
|
|
|
|
|
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Opening RWAs (as at 31.12.21)
|
189,945
|
37,673
|
44,771
|
41,747
|
314,136
|
|
Book size
|
10,139
|
290
|
(4,236)
|
24
|
6,217
|
|
Acquisitions and disposals
|
(70)
|
-
|
-
|
-
|
(70)
|
|
Book quality
|
(1,239)
|
(154)
|
-
|
-
|
(1,393)
|
|
Model updates
|
-
|
-
|
-
|
-
|
-
|
|
Methodology and policy
|
3,278
|
3,349
|
-
|
-
|
6,627
|
|
Foreign exchange movements1
|
2,099
|
831
|
383
|
-
|
3,313
|
|
Total RWA movements
|
14,207
|
4,316
|
(3,853)
|
24
|
14,694
|
|
Closing RWAs (as at 31.03.22)
|
204,152
|
41,989
|
40,918
|
41,771
|
328,830
|
|
1
|
Foreign exchange movements does not include foreign exchange for
modelled market risk or operational risk.
|
Overall RWAs increased £14.7bn to £328.8bn (December
2021: £314.1bn)
Credit risk RWAs increased £14.2bn:
|
●
|
A £10.1bn increase in book size primarily driven by lending
activities within CIB and an increase in short-term hedging
arrangements designed to manage the risks of the rescission offer,
expected to unwind after completion of such rescission
offer
|
|
●
|
A £1.2bn decrease in book quality primarily driven by the
benefit in mortgages from an increase in the House Price Index
(HPI)
|
|
●
|
A £3.3bn increase in methodology and policy as a result of
regulatory changes that took effect from 1 January 2022, relating
to implementation of IRB roadmap changes partially offset by the
reversal of the software intangibles benefit
|
|
●
|
A £2.1bn increase in FX due to appreciation of period end USD
and EUR against GBP
|
Counterparty Credit risk RWAs increased £4.3bn:
|
●
|
A £3.3bn increase in methodology and policy as a result of
regulatory changes that took effect from 1 January 2022, relating
to the introduction of SA-CCR
|
Market risk RWAs decreased £3.9bn:
|
●
|
A £4.2bn decrease in book size primarily due to a decrease in
Stressed Value at Risk (SVaR) model adjustment as a result of
changes in portfolio composition and a reduction in Structural FX.
This was partially offset by increased client and trading
activities.
|
|
|
|
Restated1
|
|
Leverage
ratios2,3
|
As at 31.03.22
|
As at 31.12.21
|
|
£m
|
£m
|
|
Average UK leverage ratio
|
4.8%
|
4.9%
|
|
Average T1 capital
|
56,701
|
59,739
|
|
Average UK leverage exposure
|
1,179,381
|
1,229,041
|
|
|
|
|
|
UK leverage ratio
|
5.0%
|
5.2%
|
|
|
|
|
|
CET1 capital
|
45,269
|
47,327
|
|
AT1 capital
|
11,059
|
12,179
|
|
T1 capital
|
56,328
|
59,506
|
|
|
|
|
|
UK leverage exposure
|
1,123,531
|
1,137,904
|
|
|
|
|
|
UK leverage exposure
|
|
|
|
Accounting assets
|
|
|
|
Derivative financial instruments
|
289,822
|
262,572
|
|
Derivative cash collateral
|
64,836
|
58,177
|
|
Securities financing transactions (SFTs)
|
186,417
|
170,853
|
|
Loans and advances and other assets
|
955,020
|
892,683
|
|
Total IFRS assets
|
1,496,095
|
1,384,285
|
|
|
|
|
|
Regulatory consolidation adjustments
|
(3,605)
|
(3,665)
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
Derivatives netting
|
(235,071)
|
(236,881)
|
|
Adjustments to collateral
|
(52,181)
|
(50,929)
|
|
Net written credit protection
|
19,729
|
15,509
|
|
Potential future exposure (PFE) on derivatives
|
85,619
|
137,291
|
|
Total derivatives adjustments
|
(181,904)
|
(135,010)
|
|
|
|
|
|
SFTs adjustments
|
29,095
|
24,544
|
|
|
|
|
|
Regulatory deductions and other adjustments
|
(22,332)
|
(20,219)
|
|
|
|
|
|
Weighted off-balance sheet commitments
|
119,933
|
115,047
|
|
|
|
|
|
Qualifying central bank claims
|
(260,196)
|
(210,134)
|
|
|
|
|
|
Settlement netting
|
(53,555)
|
(16,944)
|
|
|
|
|
|
UK leverage exposure
|
1,123,531
|
1,137,904
|
|
1
|
Capital and leverage metrics as at 31 December 2021 have been
restated. See Basis of preparation on page 31 for further
details.
|
|
2
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
|
3
|
Fully loaded average UK leverage ratio was 4.8%, with £56.1bn
of T1 capital and £1,178.8bn of leverage exposure. Fully
loaded UK leverage ratio was 5.0%, with £55.7bn of T1 capital
and £1,122.9bn of leverage exposure. Fully loaded UK leverage
ratios are calculated without applying the transitional
arrangements of the CRR as amended by CRR II.
|
The UK leverage ratio decreased to 5.0% (December 2021: 5.2%)
primarily due to a £3.2bn decrease in T1 capital partially
offset by a £14.4bn decrease in the leverage
exposure. The UK leverage exposure decreased to
£1,123.5bn (December 2021: £1,137.9bn), due to the
following movements:
|
●
|
£51.7bn decrease in PFE on derivatives primarily driven by
increased netting eligibility due to the introduction of
SA-CCR
|
|
●
|
£23.7bn decrease due to a £50.1bn increase in qualifying
central bank claims exemption due to the matching of allowable
liabilities rather than deposits introduced under the UK leverage
framework review, partially offset by a £26.3bn increase in
cash
|
|
●
|
£34.5bn increase in derivative financial instruments post
additional regulatory netting and adjustments for cash collateral
primarily driven by client and trading activity in CIB and the
application of a 1.4 multiplier introduced under
SA-CCR
|
|
●
|
£20.1bn increase in SFTs primarily driven by client activity
in CIB
|
The average UK leverage ratio decreased to 4.8% (December 2021:
4.9%) primarily due to a £3.0bn decrease in average T1 capital
driven by the redemption of AT1 capital instruments and the
reduction of IFRS9 transitional relief. This was partially offset
by a £49.7bn decrease in the leverage exposure to
£1,179.4bn (December 2021: £1,229.0bn) due to movements
broadly in line with UK leverage as well as an increase in net
written credit derivatives due to the inclusion of credit default
swap options from 1 January 2022.
MREL
|
MREL requirements including
buffers1,2,3
|
Total requirement (£m) based on
|
|
Requirement as a percentage of:
|
|
|
|
Restated1
|
|
|
Restated1
|
|
|
As at 31.03.22
|
As at 31.12.21
|
|
As at 31.03.22
|
As at 31.12.21
|
|
Requirement based on RWAs (minimum requirement)
|
94,947
|
77,302
|
|
28.9%
|
24.6%
|
|
Requirement based on UK leverage exposure3
|
89,025
|
93,975
|
|
7.9%
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated1
|
|
Own funds and eligible
liabilities1,2
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
|
|
|
|
|
£m
|
£m
|
|
CET1 capital
|
|
|
|
45,269
|
47,327
|
|
AT1 capital instruments and related share premium
accounts4
|
|
|
|
11,059
|
12,179
|
|
T2 capital instruments and related share premium
accounts4
|
|
|
|
8,272
|
8,626
|
|
Eligible liabilities
|
|
|
|
37,886
|
39,889
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
|
|
|
102,486
|
108,021
|
|
|
|
|
|
|
|
|
Total RWAs
|
|
|
|
328,830
|
314,136
|
|
Total UK leverage
exposure3
|
|
|
|
1,123,531
|
1,356,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated1
|
|
Own funds and eligible liabilities
ratios as a percentage of:1
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
|
Total RWAs
|
|
|
|
31.2%
|
34.4%
|
|
Total UK leverage
exposure3
|
|
|
|
9.1%
|
8.0%
|
As at 31 March 2022, Barclays PLC (the Parent company) held
£102.5bn of own funds and eligible liabilities equating to
31.2% of RWAs. This was in excess of the Group's MREL requirement
to hold £94.9bn of own funds and eligible liabilities equating
to 28.9% of RWAs.
|
1
|
Capital and leverage metrics as at 31 December 2021 have been
restated. See Basis of preparation on page 31 for further
details.
|
|
2
|
CET1, T1 and T2 capital, and RWAs are calculated applying IFRS 9
transitional arrangements.
|
|
3
|
As at 31 December 2021, MREL requirements were on a CRR leverage
basis which, from 1 January 2022, was no longer applicable for UK
banks.
|
|
4
|
Includes other AT1 capital regulatory adjustments and deductions of
£60m (December 2021: £80m), and other T2 credit risk
adjustments and deductions of £62m (December 2021:
£81m).
|
Condensed Consolidated Financial Statements
|
Condensed consolidated income statement (unaudited)
|
|
|
|
Three months ended 31.03.22
|
Three months ended
31.03.211
|
|
|
|
£m
|
£m
|
|
Total income
|
|
6,496
|
5,900
|
|
Credit impairment charges
|
|
(141)
|
(55)
|
|
Net operating income
|
|
6,355
|
5,845
|
|
Operating expenses excluding litigation and conduct
|
|
(3,588)
|
(3,545)
|
|
Litigation and conduct
|
|
(523)
|
(33)
|
|
Operating expenses
|
|
(4,111)
|
(3,578)
|
|
Other net (expenses)/income
|
|
(10)
|
132
|
|
Profit before tax
|
|
2,234
|
2,399
|
|
Tax charge
|
|
(614)
|
(496)
|
|
Profit after tax
|
|
1,620
|
1,903
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
1,404
|
1,704
|
|
Other equity instrument holders
|
|
215
|
195
|
|
Total equity holders of the parent
|
|
1,619
|
1,899
|
|
Non-controlling interests
|
|
1
|
4
|
|
Profit after tax
|
|
1,620
|
1,903
|
|
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
|
8.4
|
9.9
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Condensed consolidated balance sheet (unaudited)
|
|
|
|
|
Restated1
|
|
|
|
As at 31.03.22
|
As at 31.12.21
|
|
Assets
|
|
£m
|
£m
|
|
Cash and balances at central banks
|
|
264,916
|
238,574
|
|
Cash collateral and settlement balances
|
|
136,289
|
92,542
|
|
Loans and advances at amortised cost
|
|
371,698
|
361,451
|
|
Reverse repurchase agreements and other similar secured
lending
|
|
2,999
|
3,227
|
|
Trading portfolio assets
|
|
134,208
|
147,035
|
|
Financial assets at fair value through the income
statement
|
|
207,392
|
191,972
|
|
Derivative financial instruments
|
|
289,822
|
262,572
|
|
Financial assets at fair value through other comprehensive
income
|
|
61,858
|
61,753
|
|
Investments in associates and joint ventures
|
|
988
|
999
|
|
Goodwill and intangible assets
|
|
8,046
|
8,061
|
|
Current tax assets
|
|
342
|
261
|
|
Deferred tax assets
|
|
5,171
|
4,619
|
|
Other assets
|
|
12,366
|
11,219
|
|
Total assets
|
|
1,496,095
|
1,384,285
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits at amortised cost
|
|
546,482
|
519,433
|
|
Cash collateral and settlement balances
|
|
121,299
|
79,371
|
|
Repurchase agreements and other similar secured
borrowing
|
|
29,013
|
28,352
|
|
Debt securities in issue
|
|
110,658
|
98,867
|
|
Subordinated Liabilities
|
|
11,630
|
12,759
|
|
Trading portfolio liabilities
|
|
78,092
|
54,169
|
|
Financial liabilities designated at fair value
|
|
238,913
|
250,960
|
|
Derivative financial instruments
|
|
277,466
|
256,883
|
|
Current tax liabilities
|
|
1,050
|
689
|
|
Deferred tax liabilities
|
|
37
|
37
|
|
Other liabilities
|
|
12,021
|
12,724
|
|
Total liabilities
|
|
1,426,661
|
1,314,244
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called up share capital and share premium
|
|
4,551
|
4,536
|
|
Other reserves
|
|
317
|
1,770
|
|
Retained earnings
|
|
52,478
|
50,487
|
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
57,346
|
56,793
|
|
Other equity instruments
|
|
11,119
|
12,259
|
|
Total equity excluding non-controlling interests
|
|
68,465
|
69,052
|
|
Non-controlling interests
|
|
969
|
989
|
|
Total equity
|
|
69,434
|
70,041
|
|
|
|
|
|
|
Total equity and liabilities
|
|
1,496,095
|
1,384,285
|
|
1
|
See Basis of preparation on page 31 for further details on
restatement of prior period comparatives.
|
|
Condensed consolidated statement of changes in equity
(unaudited)
|
|
|
|
|
|
Restated1
|
Restated1
|
|
Restated1
|
|
|
Called up
share capital
and share
premium
|
Other equity
instruments
|
Other
reserves
|
Retained
earnings
|
Total
|
Non-
controlling
interests
|
Total
equity
|
|
Three months ended 31.03.22
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Balance as at 01 January 2022
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
|
Profit after tax
|
-
|
215
|
-
|
1,404
|
1,619
|
1
|
1,620
|
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
667
|
667
|
-
|
667
|
|
Other
|
-
|
-
|
(1,462)
|
-
|
(1,462)
|
-
|
(1,462)
|
|
Total comprehensive income for the period
|
-
|
215
|
(1,462)
|
2,071
|
824
|
1
|
825
|
|
Employee share schemes and hedging thereof
|
15
|
-
|
-
|
351
|
366
|
-
|
366
|
|
Issue and redemption of other equity instruments
|
-
|
(1,132)
|
-
|
25
|
(1,107)
|
(20)
|
(1,127)
|
|
Other equity instruments coupon paid
|
-
|
(215)
|
-
|
-
|
(215)
|
-
|
(215)
|
|
Vesting of employee share schemes
|
-
|
-
|
9
|
(454)
|
(445)
|
-
|
(445)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(1)
|
(1)
|
|
Other movements
|
-
|
(8)
|
-
|
(2)
|
(10)
|
-
|
(10)
|
|
Balance as at 31 March 2022
|
4,551
|
11,119
|
317
|
52,478
|
68,465
|
969
|
69,434
|
|
1
|
See Basis of preparation on page 31 for further details on
restatement of opening balances.
|
|
|
As at 31.03.2022
|
As at 31.12.2021
|
|
Other reserves
|
£m
|
£m
|
|
Currency translation reserve
|
3,110
|
2,740
|
|
Fair value through other comprehensive income reserve
|
(492)
|
(283)
|
|
Cash flow hedging reserve
|
(3,343)
|
(853)
|
|
Own credit reserve
|
(93)
|
(960)
|
|
Other reserves and treasury shares
|
1,135
|
1,126
|
|
Total
|
317
|
1,770
|
Financial Statement Notes
1. Contingent liabilities and
commitments
Contingent liabilities are possible obligations whose existence
will be confirmed only by uncertain future events and present
obligations where the transfer of economic resources is uncertain
or cannot be reliably measured. Contingent liabilities are not
recognised on the balance sheet but are disclosed unless the
likelihood of an outflow of economic resources is
remote.
Over Issuance of Securities in the US
Barclays Bank PLC maintains a US Shelf registration statement with
the SEC in order to issue securities to US investors. The current
shelf registration statement was declared effective by the SEC and
was valid for three years from 1 August 2019. At the time this
shelf registration statement was filed, Barclays Bank PLC was not
eligible to be a "well-known seasoned issuer" (or WKSI) due to an
historic SEC settlement order and was required to pre-register a
set amount of securities to be issued under the US Shelf with the
SEC.
On 10 March 2022, executive management became aware that Barclays
Bank PLC had issued securities in excess of the set amount. It has
been estimated that the BBPLC US shelf limit was exceeded on or
around 18 February 2021, with issuances through to 10 March 2022
exceeding the limit by c.US$15bn. The securities that have been
over issued in this period comprise structured notes and exchange
traded notes (ETNs). Securities issued in excess of the limit are
considered to be "unregistered securities" for the purposes of US
securities law with the certain purchasers of those securities
having the right to require Barclays Bank PLC to repurchase those
securities at their original purchase price with compensatory
interest and the potential for the certain purchasers to bring
civil claims and the SEC and other regulators to take enforcement
actions against Barclays Bank PLC.
Barclays has a provision of £540m at Q122 relating to this
matter, £320m (post-tax impact of £240m) of which was
recognised in Q122 and £220m (post-tax of £170m)
recognised in 2021 in relation to the c.US$13bn over issuance of
structured notes which represents the best estimate of the
rescission right investors have for these securities. A contingent
liability exists in relation to the c.US$2bn over issuance of ETNs
due to evidentiary challenges and the high level of trading in the
securities. A contingent liability also exists in relation to any
potential claims or enforcement actions taken against Barclays Bank
PLC but there is currently no indication of the timetable for
resolution and it is not practicable to provide an estimate of the
financial effects. Barclays Bank PLC is unable to assess the
likelihood of liabilities that may arise out of any civil claims or
enforcement actions. Any such liabilities, claims or actions could
have an adverse effect on Barclays Bank PLC's and the Group's
business, financial condition, results of operations and reputation
as a frequent issuer in the securities markets.
Supplementary Information
Over-issuance of US securities under the Barclays Bank PLC US
Shelf
In its announcement on 28 March 2022 relating to the impact of
over-issuance under the US shelf registration statement (US Shelf)
of Barclays Bank PLC (BBPLC), Barclays indicated that (i) it was
assessing the impact of these matters on prior period financial
statements of BBPLC and (ii) it had commissioned a review by
external counsel (the Review) of the facts and circumstances
relating to these matters, including, among other things, the
control environment related to such over-issuance. In addition, it
disclosed that BBPLC would make a rescission offer to certain
purchasers of the affected securities issued in excess of the
registered amount under the US Shelf. Since the announcement,
Barclays has continued to engage with, and respond to inquiries and
requests for information from, various regulators, including the US
Securities and Exchange Commission (SEC).
Developments since the announcement:
|
●
|
Financial Statements in BPLC 2021 ARA: The directors do not believe
it is appropriate under UK company law and financial reporting
standards to revise the financial statements of Barclays PLC (BPLC)
included in its 2021 Annual Report and Accounts (BPLC 2021 ARA) to
reflect the impact of the over-issuance, but Barclays will instead
record a pre-tax provision of £220m (£170m post-tax) as
at 31 December 2021 as a prior year adjustment in the financial
statements of BPLC for the year ended 31 December 2022 in relation
to these matters. This and subsequent results announcements will
therefore also reflect the impact of this adjustment in the
appropriate prior year quarters.
|
|
●
|
Financial Statements in BPLC 2021 Form 20-F: Barclays is currently
in discussions with the SEC regarding whether the fact that the
financial statements of BPLC included in its Annual Report on Form
20-F for the year ended 31 December 2021 (the BPLC 2021 Form 20-F)
do not reflect the £220m provision at 31 December 2021 for the
over-issuance of structured notes and a contingent liability
disclosure in respect of the over-issuance of exchange traded notes
(ETNs) and related potential claims and enforcement actions against
BBPLC and its affiliates constitutes a material accounting error
under US securities laws. Depending on the outcome of those
discussions, Barclays may be required to withdraw and refile
(Restate or Restatement) the financial statements included in the
BPLC 2021 Form 20-F to reflect these matters. In any event,
Barclays will be required to reflect the financial impact of these
matters by adjusting the comparative financial periods in its
subsequent financial filings until the error has been fully
corrected.
|
|
●
|
BBPLC Financial Statements: Similarly, the directors of BBPLC do
not believe it is appropriate under UK company law and financial
reporting standards, to revise the financial statements of BBPLC
included in its 2021 Annual Report and Accounts (BBPLC 2021 ARA),
but Barclays will instead record the pre-tax provision of
£220m as a prior year adjustment in the financial statements
of BBPLC for the year ended 31 December 2022. However, due to the
lower applicable materiality threshold for BBPLC, on 27 April 2022
the directors of BBPLC determined that BBPLC would Restate the
financial statements included in its Annual Report on Form 20-F for
the year ended 31 December 2021 (the BBPLC 2021 20-F) previously
filed with the SEC. BBPLC intends to Restate such financial
statements to reflect both the provision and the contingent
liability referred to above. There will therefore be differences
between the 2021 financial statements included in the BBPLC 2021
Form 20-F once amended and the BBPLC 2021 ARA, and investors are
therefore cautioned to exercise care in using these financial
statements during the course of 2022.
|
|
●
|
Assessment of Control Environment: In light of the ongoing Review,
management has concluded that, by virtue of the fact that the
over-issuance occurred and was not immediately identified, both
BPLC and BBPLC had a material weakness in relation to certain
aspects of their internal control environment and, as a
consequence, their internal control over financial reporting for
the year ended 31 December 2021 was not effective under the
applicable Committee of Sponsoring Organizations (COSO) Framework.
The material weakness that has been identified relates to a failure
to monitor issuances of structured notes and ETNs under BBPLC's US
Shelf during the period in which BBPLC's status changed from a
"well-known seasoned issuer" to an "ineligible issuer" for US
securities law purposes, and BBPLC was required to pre-register a
set amount of securities to be issued under its US Shelf with the
SEC. As a result of this failure, BBPLC issued securities in excess
of that set amount.
|
|
●
|
Amendments to Forms 20-F: BPLC is preparing an amendment to the
BPLC 2021 Form 20-F to reflect the change in management's
assessment of BPLC's internal control over financial reporting and
KPMG's auditor attestation thereon as well as its disclosure
controls and procedures. BBPLC is preparing an amendment to the
BBPLC 2021 Form 20-F to include its Restated 2021 financial
statements and to reflect the change in management's assessment of
internal control over financial reporting and disclosure controls
and procedures. These amendments will be filed as soon as
practicable. Until the BPLC 2021 Form 20-F has been amended to
disclose that its internal controls were not effective, KPMG's
audit report should not be relied upon by users of BPLC's financial
statements. Until BBPLC has Restated its financial statements for
the year ended 31 December 2021 and amended the BBPLC 2021 Form
20-F, investors and other users of BBPLC's filings with the SEC are
cautioned not to rely on the financial statements included in the
BBPLC 2021 Form 20-F.
|
|
●
|
Remediation Plans: Following a review of other issuance programmes
utilised by members of the Group, management have determined that
the Group is not in excess of any limit applicable to such
programmes. Barclays is nonetheless enhancing the internal controls
relating to its debt securities issuance activity in all relevant
jurisdictions.
|
Barclays remains committed to its structured products business in
the US and expects BBPLC to file a new shelf registration statement
with the SEC as soon as practicable following the amendment of the
BBPLC 2021 Form 20-F. For further details, please refer to the
notes to the condensed consolidated financial statements
accompanying this Q122 results announcement.
Notwithstanding any Restatement of the financial statements
included in the BPLC 2021 Form 20-F that may ultimately be required
in accordance with the applicable SEC rules, as mentioned above, it
is not intended that the financial statements in the BPLC 2021 ARA
for the financial year ended 31 December 2021 would be revised and
the BPLC 2021 ARA, which has been circulated to shareholders ahead
of the BPLC AGM to be held on 4 May 2022, will be laid before
shareholders at that meeting in the usual way.
Basis of preparation
In March 2022, Barclays management became aware that Barclays Bank
PLC, a subsidiary undertaking had issued securities in the US in
excess of the amount it had registered with the SEC. The securities
issued in excess of the registered amount were structured and
exchange traded notes. As the securities were not issued in
compliance with the Securities Act of 1933, as amended (the
"Securities Act"), this gives rise to a right of rescission for
certain purchasers of the securities. A proportion of these costs
associated with the right of rescission are attributable to the
financial statements for the year ended 31 December 2021. This
omission in the financial statements has resulted in the
restatement of the prior period comparatives with the following
impact:
|
-
|
Litigation and conduct charges in the income statement in relation
to 2021 were under reported by £220m increasing total
operating expenses from a reported £14,439m to £14,659m.
Provisions on the balance sheet have increased from a reported
£1,688m to £1,908m.
|
|
-
|
Taxation charge in the income statement has reduced by £50m
from a reported £1,188m to £1,138m with a corresponding
decrease in current tax liabilities on the balance sheet from
£739m to £689m.
|
|
-
|
CET1 capital decreased £0.2bn from £47.5bn to
£47.3bn with the CET1 ratio remaining unchanged at 15.1%. The
T1 ratio moved from 19.2% to 19.1% and Total capital ratio moved
from 22.3% to 22.2%
|
|
-
|
Leverage exposure increased £1.9bn with the UK leverage ratio
decreasing from 5.3% to 5.2% and the average UK leverage ratio
remaining unchanged at 4.9%
|
|
-
|
Total own funds and eligible liabilities decreased £0.2bn to
£108bn, which was in excess of a restated requirement to hold
£94bn of own funds and eligible liabilities.
|
The overall impact of the restatement on the 2021 comparatives has
been to reduce the reported profit after tax from £7,226m to
£7,056m for the full financial year. This reduction in profit
after tax was incurred after Q121 and as such, no adjustments have
been made to the Q121 reported income statement
figures.
Reflecting this adjustment in this Q122 results announcement
results in a pre-tax provision of £220m (£170m post-tax)
being reflected as at 31 December 2021. This reduces the 2022
impact of the provision previously communicated on 28 March 2022
and results in a pre-tax provision of £320m (£240m
post-tax) being recognised in Q122. Had such adjustment not been
made the impact on the key performance ratios for Q122 would have
been to reduce the return on average tangible shareholders equity
to 10.1% and increase the cost:income ratio to 67%.
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods, and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by management.
However, any non-IFRS performance measures in this document are not
a substitute for IFRS measures and readers should consider the IFRS
measures as well.
Non-IFRS performance measures glossary
|
Measure
|
Definition
|
|
Loan: deposit ratio
|
Loans and advances at amortised cost divided by deposits at
amortised cost.
|
|
Period end allocated tangible equity
|
Allocated tangible equity is calculated as 13.5% (2021: 13.5%) of
RWAs for each business, adjusted for 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
|
Annualised profit after tax attributable to ordinary equity holders
of the parent, 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 33 to
34.
|
|
Return on average allocated tangible equity
|
Annualised profit after tax attributable to ordinary equity holders
of the parent, as a proportion of average allocated tangible
equity. The components of the calculation have been included on
pages 33 to 35.
|
|
Cost: income ratio
|
Total operating expenses divided by total income.
|
|
Loan loss rate
|
Quoted in basis points and represents total annualised impairment
charges divided by gross loans and advances held at amortised cost
at the balance sheet date. The components of the calculation have
been included on page 15. Quoted as zero when credit impairment is
a net release.
|
|
Net interest margin
|
Annualised net interest income divided by the sum of average
customer assets. The components of the calculation have been
included on page 14.
|
|
Tangible net asset value per share
|
Calculated by dividing shareholders' equity, excluding
non-controlling interests and other equity instruments, less
goodwill and intangible assets, by the number of issued ordinary
shares. The components of the calculation have been included on
page 36.
|
Returns
Return on average tangible equity is calculated as profit after tax
attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.5% (2021: 13.5%) of RWAs for each
business, adjusted for 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.
|
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
|
Three months ended 31.03.22
|
£m
|
|
£bn
|
|
%
|
|
Barclays UK
|
396
|
|
10.1
|
|
15.6
|
|
Corporate and Investment Bank
|
1,316
|
|
30.8
|
|
17.1
|
|
Consumer, Cards and Payments
|
(16)
|
|
4.3
|
|
(1.5)
|
|
Barclays International
|
1,300
|
|
35.1
|
|
14.8
|
|
Head Office
|
(292)
|
|
3.6
|
|
n/m
|
|
Barclays Group
|
1,404
|
|
48.8
|
|
11.5
|
|
|
|
|
|
|
|
|
Three months ended
31.03.211
|
|
|
|
|
|
|
Barclays UK
|
298
|
|
9.9
|
|
12.0
|
|
Corporate and Investment Bank
|
1,263
|
|
28.2
|
|
17.9
|
|
Consumer, Cards and Payments
|
168
|
|
4.1
|
|
16.5
|
|
Barclays International
|
1,431
|
|
32.3
|
|
17.7
|
|
Head Office
|
(25)
|
|
4.3
|
|
n/m
|
|
Barclays Group
|
1,704
|
|
46.5
|
|
14.7
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Barclays Group
|
|
|
|
Return on average tangible shareholders' equity
|
Q122
|
Q1211
|
|
£m
|
£m
|
|
Attributable profit
|
1,404
|
1,704
|
|
|
|
|
|
|
£bn
|
£bn
|
|
Average shareholders' equity
|
56.9
|
54.4
|
|
Average goodwill and intangibles
|
(8.1)
|
(7.9)
|
|
Average tangible shareholders' equity
|
48.8
|
46.5
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
11.5%
|
14.7%
|
|
Barclays UK
|
|
|
|
|
Q122
|
Q121
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
Attributable profit
|
396
|
298
|
|
|
|
|
|
|
£bn
|
£bn
|
|
Average allocated equity
|
13.7
|
13.5
|
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
|
Average allocated tangible equity
|
10.1
|
9.9
|
|
|
|
|
|
Return on average allocated tangible equity
|
15.6%
|
12.0%
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Barclays International
|
|
|
|
|
Q122
|
Q1211
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
Attributable profit
|
1,300
|
1,431
|
|
|
|
|
|
|
£bn
|
£bn
|
|
Average allocated equity
|
36.0
|
32.8
|
|
Average goodwill and intangibles
|
(0.9)
|
(0.5)
|
|
Average allocated tangible equity
|
35.1
|
32.3
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.8%
|
17.7%
|
|
|
|
|
|
Corporate and Investment Bank
|
|
|
|
Q122
|
Q1211
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
Attributable profit
|
1,316
|
1,263
|
|
|
|
|
|
|
£bn
|
£bn
|
|
Average allocated equity
|
30.8
|
28.2
|
|
Average goodwill and intangibles
|
-
|
-
|
|
Average allocated tangible equity
|
30.8
|
28.2
|
|
|
|
|
|
Return on average allocated tangible equity
|
17.1%
|
17.9%
|
|
Consumer, Cards and Payments
|
|
|
|
Q122
|
Q121
|
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
Attributable (loss)/profit
|
(16)
|
168
|
|
|
|
|
|
|
£bn
|
£bn
|
|
Average allocated equity
|
5.2
|
4.6
|
|
Average goodwill and intangibles
|
(0.9)
|
(0.5)
|
|
Average allocated tangible equity
|
4.3
|
4.1
|
|
|
|
|
|
Return on average allocated tangible equity
|
(1.5)%
|
16.5%
|
|
1
|
The income statement comparatives for Q121 are not impacted by the
over-issuance of US securities under the Barclays Bank PLC US
Shelf. See Basis of preparation on page 31 for further
details.
|
|
Tangible net asset value per share
|
As at 31.03.22
|
Restated1
As at 31.12.21
|
As at 31.03.21
|
|
|
£m
|
£m
|
£m
|
|
Total equity excluding non-controlling interests
|
68,465
|
69,052
|
65,105
|
|
Other equity instruments
|
(11,119)
|
(12,259)
|
(11,179)
|
|
Goodwill and intangibles
|
(8,046)
|
(8,061)
|
(7,867)
|
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
49,300
|
48,732
|
46,059
|
|
|
|
|
|
|
|
m
|
m
|
m
|
|
Shares in issue
|
16,762
|
16,752
|
17,223
|
|
|
|
|
|
|
|
p
|
p
|
p
|
|
Tangible net asset value per share
|
294
|
291
|
267
|
|
1
|
To reflect the over-issuance of US securities under the Barclays
Bank PLC US Shelf, 2021 comparatives have been restated. See Basis
of preparation on page 31 for further details.
|
Shareholder Information
|
Results timetable1
|
|
|
Date
|
|
|
|
|
2022 Interim Results Announcement
|
|
|
28 July 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change3
|
|
Exchange rates2
|
31.03.22
|
31.12.21
|
31.03.21
|
|
31.12.21
|
31.03.21
|
|
Period end - USD/GBP
|
1.31
|
1.35
|
1.38
|
|
(3)%
|
(5)%
|
|
3 month average - USD/GBP
|
1.34
|
1.35
|
1.38
|
|
(1)%
|
(3)%
|
|
Period end - EUR/GBP
|
1.19
|
1.19
|
1.18
|
|
-
|
1%
|
|
3 month average - EUR/GBP
|
1.20
|
1.18
|
1.14
|
|
2%
|
5%
|
|
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
|
|
Barclays PLC (p)
|
148.30
|
187.00
|
185.92
|
|
|
|
|
Barclays PLC number of shares (m)
|
16,762
|
16,752
|
17,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
|
Chris Manners +44 (0) 20 7773 2136
|
Tom Hoskin +44 (0) 20 7116 4755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More information on Barclays can be found on our
website: home.barclays.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered office
|
|
|
|
|
|
|
|
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
|
|
|
|
|
|
|
|
|
|
|
Registrar
|
|
|
|
|
|
|
|
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
|
|
|
Tel: 0371 384 20554 from
the UK or +44 121 415 7004 from overseas.
|
|
|
|
|
|
|
|
|
|
|
American Depositary Receipts (ADRs)
|
|
|
|
|
|
|
|
EQ Shareowner Services
|
|
P.O. Box 64504
|
|
St. Paul, MN 55164-0504
|
|
United States of America
|
|
https://www.shareowneronline.com
|
|
|
|
|
|
|
|
Toll Free Number: +1 800-233-5601
|
|
|
|
|
|
|
|
Outside the U.S. +1 651-453-2128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivery of ADR certificates and overnight mail
|
|
|
|
|
|
|
|
Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota
Heights, MN 55120, USA.
|
|
1
|
Note that this date is provisional and subject to
change.
|
|
2
|
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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